When buying a property, a home buyer generally has a set budget based on a pre-approved mortgage loan limit.
The vendor will attract home buyers trying to find homes for sale in the a set price range. There is no point in the vendor overpricing the property and missing out on attracting buyers in the correct price range.
Read the full article about how to find homes for sale in your price range.
Whenever you are trying to buy a house in a particular price bracket, you'll find overpriced houses for sale. Optimistic home owners, who have set house prices based on wishful thinking rather than reality, own them.
Read the full article about Finding A House For Sale That's Not Overpriced
Sometimes, homes for sale by owner FSBO are priced low to get a quick sale. A owner may have health problems, marital problems, or financial problems and need to sell quickly.
If you are willing to take the time to hunt out homes for sale by owner, you can often get a bargain.
Read the full article about Finding Homes For Sale By Owner
Price is usually the most critical factor in an house sale. Just as you want the best value for your money, the buyer of your home will want the best value for his or her money too.
A home buyer doesn’t care about how much money you might want or need. The home buyer only cares what the home is worth to them. What you want or need has no bearing on the current market value of the home. Your home is only worth what someone is prepared to pay for it.
Read the full article about Pricing Your Home For Sale
When buying a property, a home buyer generally has a set budget based on a pre-approved mortgage loan limit.
The vendor will attract home buyers trying to find homes for sale in the a set price range. There is no point in the vendor overpricing the property and missing out on attracting buyers in the correct price range.
Read the full article about how to find homes for sale in your price range.
When buying a house, not only compare house prices based on what houses recently sold for, but also find out average house prices and real estate trends in the area.
It is not just a case of comparing house prices, it important to compare the recent sale prices of similar houses in the same area. The emphasis is the word 'similar', as there is no point comparing a 1 bedroom apartment with a four bedroom family home.
The more you know about the market before you make an offer, be the better chance you have of buying well and not getting ripped off.
Click the following link to read the full article about comparing house prices.
Several factors can affect the price of housing and housing affordability: the national and global economy, the local economy, mortgage interest rates, employment levels, income levels, tax rates, consumer confidence and inflationary pressures etc.
When interest rates rise, at the same time as the economy goes into a downturn, problems can develop for homeowners. They can face both the problem of high mortgage costs and falling house selling prices. This can have a positive and negative effect on housing affordability.
Read the full article on housing affordability here.
When selling a home, the buyer needs to be able to imagine they are living there. If the home is filled with personal memorabilia belonging to the current owner, it can be off-putting for a new owner.
When presenting your home for sale, think of who a potential buyer might be. A buyer will need to feel comfortable in your home, rather than as if they are invading your personal space.
A potential buyer will need to feel as though he or she is looking through their future home as opposed to just visiting your home.
Too many family photos, or many personal items can make a buyer feel uncomfortable, and just want to leave.
An increase in house prices is an increase in consumer wealth. This is because; a rise in housing sales and home values generally has a positive affect on consumer spending, and economic growth.
An increase in house prices makes homeowners feel richer and they eventually start to spend more money. This can be inflationary.
An increase in homeowner wealth can increase the demand for home loan restructuring. When the property value increases, the homeowner can often access a bigger loan against the value of the house.
Click here to read the full article on house sale prices.
The first thing to clearly understand when signing a real estate sales contract, is that IT IS A CONTRACT, and not just an offer to buy. You are signing a a legal contract.
Most sales contracts will have some paraphrase of the following: "This is a legally binding contract. If not understood, seek competent advice before signing."
IMPORTANT: This real estate blog does NOT purport to give any kind of legal or financial advice. So, tread carefully and seek your own professional legal and/or financial advice.
There are common things to look for in a real estate sales contract although they may vary depending on where you live. Generally however, most real estate contracts will include some of the following aspects:
1. A legal description of the property as well as the street address.
2. The selling price.
3. Deposit details. How much money accompanies the contract and who will hold it.
4. Acceptance. How long the sellers have to respond to the offer by either declining, accepting or returning with a counter-offer.
5. Possession Date. The exact time and date when the buyers take possession of the property either before, at or after closing.
6. A mortgage contingency. The contract being subject to the purchaser obtaining a mortgage (if applicable). It could include specifics of the mortgage such as the amount, rate and term. The specified number of days in which the application is to be made.
7. Inclusions and exclusions. A list of what is and is not included in the sale of the property.
8. Provision for a home inspection. Contingency for and to be done in a specified number of days.
9. Warranties Details of any warranties that are included with the house.
10. Provision for a termite and pest inspection being undertaken along with details on who will pay and if there is infestation or damage and who will arrange the repair.
11. Arbitration provisions in case of disputes.
12. Closing details. When and where.
13. Insurance. Who is responsible for insuring the property up until the closing date.
14. Property Disclosures. Notices of any property disclosures concerning the house.
The contract could also include other clauses like special provisions relating to condominiums etc.
This is a guide only and the list is by no means complete. Contracts will vary depending on where you are located and on the nature of the transaction, which is precisely why you should always seek professional legal advice before signing any legally binding real estate contract.
Click here before your signing a real estate contract.
The National Association of Home Builders (NAHB) survey for the three months ended June 30, 2007 showed Midwest cities to have the most affordable housing.
Indianapolis was the most affordable of the major housing markets, where $122,000 was needed to purchase the median home. Indianapolis scored a rating of 86.8 in the survey meaning that approximately 14 percent of homes purchased were unobtainable by an average family.
By contrast, only 3 percent of the Los Angeles homes that sold were considered affordable for a typical family. In Los Angeles $530,000 was needed to buy the medium home.
The survey considered housing affordable when the housing expenses were no more than 28 percent of income. These expenses would have included insurance, property taxes and mortgage payments.
Buying a residential property is usually the biggest investment most people make, so it is important to be on the lookout for potential problems. These could cost you big money or make the property difficult to resell.
If you are selling your home, then look out for problems that could become a potential deal killer. An astute home buyer may walk away from a deal, or demand a lower price, if the property has structural or maintenance issues.
3 areas that can be picked up on a home inspection report are:
1. GUTTER AND DOWNSPOUT'S INSPECTION
2. LOT AREA INSPECTION
3. BASEMENT INSPECTION
These are just some of the points to look for when buying or selling a home.
Here is a link to a helpful article about home inspections
ELECTRO-MECHANICAL CONSIDERATIONS
The quality and reliability of electrical services is an important consideration when buying a house. Unfortunately this is something that homebuyers often don't take a lot of notice of...and it can end up costing them thousands in repairs and maintenence.
So, before putting in an offer to buy a house carefully consider the style type and age of heating & cooling systems. Try and establish when they were last inspected or serviced (or even if they have ever been serviced)? If in doubt get an professional inspection report from an electrical contractor or a registered home inspection company.
When buying a house it is important to ascertain the age of electrical services. Is the visible wiring in good condition? Are the outlets grounded? Have there been any upgrades to electrical services?
Here is a handy 14-point indoor home inspection checklist.
Yes, many real estate agents will have a list of professional you can consult with.
When arranging any legal or financial transaction you may already have a list of professionals who can help you. You may be best to consult with the professionals that you have previously had dealings with as opposed to finding new contacts.
If you don't already have a list of professionals to call on, your real estate agent should be able to supply you with a list of professionals including: property attorneys, mortgage brokers, home inspectors, accountants and title companies.
If you see the term "affiliated" it could mean that the real estate agent, or his/her broker, is receiving a commission from one or all of professionals. Although this is not necessarily a bad thing, you need to determine whether or not you are paying a premium for the service in order for the agent to be compensated. You also need reassuance that the professional is competitive, independent of the other party and capable.
Ask the real estate agent to explain why he or she recommends these professionals.
Find Out How Your Real Estate Attorney Can Guide You Through A Mine Field Of Legal Traps When Buying Or Selling Property.
Watch out for the real estate agent who has dozens of listings and two or even three office assistants. Is he or she just playing the numbers game? Does this agent work on percentages, knowing a volume of listings will result in a certain percent sales? Is it a case of quantity v's quality?
If the real estate agent is just looking for another listing to add to the volume, how can you be sure your listing won't get neglected? Don't get me wrong, there is nothing wrong with an agent having several listings, it is really a matter of being reassured that your property will be a priority.
As an example, the most successful listing agent in town might employ 6 assistants. This could explain why he or she is the top sales agent in the entire county.
Before deciding on a particular real estate agent ask, "What percentage of houses listed by the agent sold in the last 12 months?"
Read 'Why Over-Priced Real Estate Listings Can Result In Unsold Properties'
FACT: Many people are inexperienced when it comes to buying or selling a property, so rely greatly on the 'perceived' ability of the real estate agent they are dealing with.
If you are a seller and are considering putting your home on the market, then shop around for the real estate agent that will best meet your needs. Observe real estate agent marketing trechniques, talk with friends and people who have recently bought or sold a property. Then draw up a list of agent's you might consider and then narrow it down to about three and schedule an interview with each real estate agent.
Ask some of the questions we have already suggested (see earlier blogs Part 1 to 5) and also ask these questions:
Why should I list with you rather than any other real estate agent?
Listen carefully to the substance of the answer. Look for honesty and genuine commitment.
Also ask the real estate agent:
Talk to several real estate agents before picking the one you want to work with. To help select the a good real estate agent, there are several key issues you should discuss with any agents you are considering including:
What is Your Best Marketing Plan or Strategy for My Needs?
As a seller, you will need to know:
Don’t sign with an agent just because he or she suggests the highest asking price. When listing a property for sale, agents and brokers should compare the listed property with similar properties that recently sold, in order to determine a competitive market price for the property.
As a buyer, you will need to know:Ask the agent how he or she will protect your interests and why you should hire them rather than another real estate agent?
Click this link to read an informative article about real estate commissions.
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