Posted in
Home Buyers
The housing market is currently involved in a significant correction, but that doesn’t mean it isn’t a good time to buy. The state of the current market may be abysmal, but the advantage of property is that it is and will always be a stable long term investment. Just because the situation has lead to a decrease in prices does not mean that purchasing a house now is going to lose you money. Onto the list:
1. Interest rates are low. Interest rates have been lowered substantially over the last year, making it easier for you to finance your purchase at a lower price, assuming you have a good credit score.
2. The surplus in houses is short-lived. Population grows, its just unavoidable, so the short term surplus of houses can be seen as a temporary sale that will end as soon as demand returns to its earlier levels.
3. Foreclosures will bring down prices in neighborhoods. While this problem may hurt those whose neighbors’ homes are foreclosed, it means that you will get a much better deal for your purchases. You can even purchase foreclosures if you want a little more risk and the potential for a lot more reward.
4. You can rent it out. A home is an asset that will keep giving back, so even if you purchase it as an investment the rent should help cover the long term costs. Rent has continued to go up even as the housing market has become depressed, this means money in your pocket!
5. You may get tax relief. The Congress is currently debating bills that would attempt to stimulate the housing economy, meaning you might get a tax break when purchasing a new home, making it an even better deal.
6. Property is always a reliable investment. Property will always earn back its value, making it a great way to safely invest.
7. You can start building equity. Equity means you will get lower interest rates on future loans and are generally considered a safe investment compared to others.
8. Home improvement is cheap. Or cheaper than it used to be, the turnaround on the housing market has shrunk the market of jobs for contractors, meaning you will likely be able to get them for cheaper and get more done.
9. You will have a greater voice in community affairs. Because home owners are more trusted to be sticking around and thus are listened to more. This is a great way to get involved.
10. You can decorate the house however you want. Having the freedom to decorate your house with a garden or a new paint job will allow you to live in exactly the space you want, instead of what someone finds acceptable to rent out every year.
Posted: May 16th, 2008 at 3:36 pm
|
Email Post
|
Help others find this article at:
del.icio.us Digg Furl Reddit Google Technorati
Posted in
Home Buyers
You may have heard that the housing market is undergoing a correction, but what you may not realize is that means the housing market is now saturated. This process of correction has been an adjustment due to the deflating of the housing bubble. Housing prices had risen at unprecedented rates, so buying was an expensive task. Well, with the number of the homes on the market the highest it has been in memory, suddenly the prices are coming back down. This means that the average person is more capable than ever of affording a home. And, because the market is simply undergoing a correction, long term investments in real estate are still completely viable and safe. This means now is a better time than ever to make a home purchase.
You want to be careful, however, as the situation of each house should be evaluated before a purchase. Don’t buy a foreclosure unless you are willing to shell out money to fix it up, because they usually fall into disrepair. Watch out for blocks with a large number of foreclosures, those are somewhat riskier areas to buy in, because a large number of foreclosures all at once can permanently harm a neighborhood. It is a good idea to be thinking at least ten years ahead when buying in a market like this, as it is almost impossible to know how the market will fluctuate in the short term.
Posted: April 9th, 2008 at 11:40 am
|
Email Post
|
Help others find this article at:
del.icio.us Digg Furl Reddit Google Technorati
Posted in
Home Buyers,
Home Sellers
Realtors can be a major advantage to a home buyer, and because the commission for the Realtor is covered by the seller, there isn’t a good reason NOT to hire one. This is because realtors know what to look for when it comes to getting process down, and how to manage all the problems that can arise while buying a home. The purchase is likely to be the largest of your lifetime, so you should always have an expert working for you when going into a sale.
Realtors also provide access to listings that may not be available publicly. They have information on the area, zoning laws, school districts, and other pertinent information that should factor into any home purchase. Realtors know more about financing options and can help you get the lowest rates and best plans for payment. The realtor is experienced at closing and knows how to manage all the paperwork. Because of their knowledge and experience, a realtor is an invaluable resource, so don’t go into your home search without one if you can avoid it!
As a home seller, you also benefit from the resources available to a realtor. Realtors are experienced at bargaining, and can easily discover extra value in your home and market it in such a way as to get you more for your property. This is a great benefit, as it allows you to focus on your move, fixing up your house, and getting ready for the sale, while they take care of buyers. They can handle themselves until the negotiating process begins, and that’s when their talents really shine. Of course the best assurance that this process goes well is to make sure you get a realtor who’s going to work hard for you, so shop around and look into who you are hiring before hand.
Posted: April 9th, 2008 at 11:31 am
|
Email Post
|
Help others find this article at:
del.icio.us Digg Furl Reddit Google Technorati
Posted in
Home Buyers
It’s good to know what your next step is after finding the house of your dreams.
With your agent’s help, you submit a signed real estate offer to purchase, with the type of financing you’re comfortable with. Read it carefully and make sure you understand every detail prior to signing. This will be the sales contract once the seller accepts and signs the offer. All agreements should be in writing. If you plan to have a lawyer represent or advise you, retain one as early as possible.
Offers and Counter Offers
After your agent takes your written offer and presents it to the seller, the seller will accept it as written, make counter offers on unacceptable aspects, or reject it. This will then place you I apposition to accept it, counter-the-counter offer, or reject the seller’s counter. The offer to buy becomes a contract when all parties have initialed every counter and signed the offer.
When you sign the offer to buy, you will also have to show that you are sincere about the purchase by presenting a deposit, or also known as earnest money. Contracts are different
Deposit Deposit amount should be stated clear, also including the amount you will pay at time of settlement and your sources of financing. A general purchase deposit in several areas is 1-2% of the purchase price, deposited in escrow.
Financing Contingency - The total loan amount, the date a second or third mortgage is due, and the exact financing terms need to be specifically stated. Many contracts have an alternative financing clause. This allows buyers to accept different financing, as long as it does not have an effect on the seller’s net income.
Inspection Contingency - You can make the contract conditional on a building inspection report. You will most likely have to pay for this inspection.
Repair Work - Typical contracts of sale require sellers to verify that utilities are in working condition at the time of settlement. You should conduct a pre-settlement walk-through inspection several days before or no later than the settlement date.
Personal Property - Specify in writing if items not physically attached to the house are to be included in the sale. These items can include light fixtures, drapery rods, appliances, accessories, and various other pieces of property.
Termites - Depending on the area, the contract may require the seller or buyer to pay for a termite inspection. The results of this inspection may require payment to remove the infestation and repair any resulting damages. You should get a written statement at settlement indicating that the property is free and clear of any active termite infestation. In some areas, well and septic certificates are also required.
Title Attorney or Insurance Company When buying property, you have the right to select the title attorney or insurance company who will carry out your purchasing arrangements. Furthermore, be sure to clear the title company with the lender, whose interests are also concerned.
Closing and Occupancy Date - Include documentation for an arrangement with the seller, such as a daily rent-back agreement, in case they stay in the house past the settlement date. Without a rent-back, the sellers might have to make a double move, first to interim housing and then to a new home. It can be costly to store belongings, and moving twice can be a huge inconvenience.
Posted: May 11th, 2007 at 1:28 pm
|
Email Post
|
Help others find this article at:
del.icio.us Digg Furl Reddit Google Technorati
