<!– /* Font Definitions */ @font-face {font-family:”Cambria Math”; panose-1:2 4 5 3 5 4 6 3 2 4; mso-font-charset:1; mso-generic-font-family:roman; mso-font-format:other; mso-font-pitch:variable; mso-font-signature:0 0 0 0 0 0;} @font-face {font-family:Verdana; panose-1:2 11 6 4 3 5 4 4 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:-1593833729 1073750107 16 0 415 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-unhide:no; mso-style-qformat:yes; mso-style-parent:”"; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:”Times New Roman”,”serif”; mso-fareast-font-family:”Times New Roman”;} h1 {mso-style-unhide:no; mso-style-qformat:yes; mso-style-link:”Heading 1 Char”; mso-style-next:Normal; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; page-break-after:avoid; mso-outline-level:1; font-size:11.0pt; mso-bidi-font-size:12.0pt; font-family:”Verdana”,”sans-serif”; mso-font-kerning:0pt;} p.MsoBodyText, li.MsoBodyText, div.MsoBodyText {mso-style-noshow:yes; mso-style-unhide:no; mso-style-link:”Body Text Char”; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; mso-bidi-font-size:12.0pt; font-family:”Verdana”,”sans-serif”; mso-fareast-font-family:”Times New Roman”; mso-bidi-font-family:”Times New Roman”;} span.Heading1Char {mso-style-name:”Heading 1 Char”; mso-style-unhide:no; mso-style-locked:yes; mso-style-link:”Heading 1″; mso-ansi-font-size:11.0pt; mso-bidi-font-size:12.0pt; font-family:”Verdana”,”sans-serif”; mso-ascii-font-family:Verdana; mso-hansi-font-family:Verdana; font-weight:bold;} span.BodyTextChar {mso-style-name:”Body Text Char”; mso-style-noshow:yes; mso-style-unhide:no; mso-style-locked:yes; mso-style-link:”Body Text”; mso-ansi-font-size:11.0pt; mso-bidi-font-size:12.0pt; font-family:”Verdana”,”sans-serif”; mso-ascii-font-family:Verdana; mso-hansi-font-family:Verdana;} .MsoChpDefault {mso-style-type:export-only; mso-default-props:yes; font-size:10.0pt; mso-ansi-font-size:10.0pt; mso-bidi-font-size:10.0pt;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} –> The real estate market is ideally suited for computerized technology. Purchasers can use multiple listing services and other real estate marketing practices to have their home viewed by potential purchasers from all over the world. Likewise, buyers from Australia can get a good glimpse inside the Poughkeepsie New York real estate market by locating the mls in that area.

Brokers and their agents all have web logs or websites explaining their services and opening their doors to the public. Prospective buyers or homeowners looking to refinance can gather mortgage information by a simple search. The computer and the real estate market were made for each other. A 2008 survey indicated that 70 percent of homebuyers first saw the property they acquired over the Internet.

Of course, the real estate market today is not what it was in 2007. So the industry’s use of the technology has also changed. Now, viewers can learn about foreclosure, the short sale, the REO and the distressed homeowner by using the computer as a reference center.

One way to locate investment worthy residential properties is by scouring the pre-foreclosure marketplace. There are three stages of the foreclosure process. Pre-foreclosure is the least invasive of the three.

At this stage, the homeowner has received a Notice of Default and the lender has served notice that foreclosure will take place unless the loan is brought current or retired. In pre-foreclosure, the homeowner still owns the house and has the right to sell the house.

At this point, it is to the owner’s advantage to finalize a sale. Today, there are websites that display properties in pre-foreclosure. An interested investor can locate a pre-foreclosure property on the Internet and contact the owner directly, without the use of a broker.

For a troubled homeowner, the difference between selling and not selling can often be the commission. If there is no broker, there is no commission, so the chances of a sale increase dramatically.

If you are a real estate investor, your computer can be very beneficial. Spend a little time locating relevant sites for your investment plan and you will be ahead of the game.

Add Bookmark

<!– /* Font Definitions */ @font-face {font-family:”Cambria Math”; panose-1:2 4 5 3 5 4 6 3 2 4; mso-font-charset:1; mso-generic-font-family:roman; mso-font-format:other; mso-font-pitch:variable; mso-font-signature:0 0 0 0 0 0;} @font-face {font-family:Verdana; panose-1:2 11 6 4 3 5 4 4 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:-1593833729 1073750107 16 0 415 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-unhide:no; mso-style-qformat:yes; mso-style-parent:”"; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:”Times New Roman”,”serif”; mso-fareast-font-family:”Times New Roman”;} .MsoChpDefault {mso-style-type:export-only; mso-default-props:yes; font-size:10.0pt; mso-ansi-font-size:10.0pt; mso-bidi-font-size:10.0pt;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} –> Commercial and residential short sale opportunities await every qualified investor. However, completing a short sale takes experience, patience and incredible drive. It is a difficult process to bring the primary lender, the secondary lien holders and the seller together to consummate the sale. Surprisingly, the most difficult component can often be keeping the seller in the game.

Experienced investors perform their due diligence. Part of that due diligence should include an assessment, including as much financial background as is available, of the seller. If the short sale seller is not truly motivated, the investor and the investor’s team can go through many hours of effort for naught.

Investors can benefit from a frank interview with the seller before arriving at an agreement. Sellers can be bitter about a short sale and can sometimes actually be benefiting from their hardship. Many sellers are collecting rental income and not making mortgage payments. Be weary of these sellers as their motivation is lacking.

The ideal short seller has assets and very possibly other real estate holdings that are worth protecting or is facing an unexpected hardship such as unemployment and does not want their credit destroyed for an extended period. The investor should seek proof of the hardship.

In conventional acquisitions, the buyer is evaluated by their “ready, willing and able” disposition. This is a good formula to apply to short sellers. If the shirt seller is not ready, willing and able, you could be wasting your time.

Sellers need to know that delays and unexpected events can surround hardship sales. Sellers may need to perform repairs, pay outstanding utility bills and a host of other stressful possibilities. These sellers need to know and often be reminded that concluding the short sale is to their advantage.

To protect themselves, many investors have had their attorneys insert clauses in the contract. If the seller backs out of the agreement without just cause, they must reimburse the seller for lost time. This can raise issues but protecting one’s self is always worth a try.

Add Bookmark

<!– /* Font Definitions */ @font-face {font-family:”Cambria Math”; panose-1:2 4 5 3 5 4 6 3 2 4; mso-font-charset:1; mso-generic-font-family:roman; mso-font-format:other; mso-font-pitch:variable; mso-font-signature:0 0 0 0 0 0;} @font-face {font-family:Verdana; panose-1:2 11 6 4 3 5 4 4 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:-1593833729 1073750107 16 0 415 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-unhide:no; mso-style-qformat:yes; mso-style-parent:”"; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:”Times New Roman”,”serif”; mso-fareast-font-family:”Times New Roman”;} h1 {mso-style-unhide:no; mso-style-qformat:yes; mso-style-link:”Heading 1 Char”; mso-style-next:Normal; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; page-break-after:avoid; mso-outline-level:1; font-size:11.0pt; mso-bidi-font-size:12.0pt; font-family:”Verdana”,”sans-serif”; mso-font-kerning:0pt;} span.Heading1Char {mso-style-name:”Heading 1 Char”; mso-style-unhide:no; mso-style-locked:yes; mso-style-link:”Heading 1″; mso-ansi-font-size:11.0pt; mso-bidi-font-size:12.0pt; font-family:”Verdana”,”sans-serif”; mso-ascii-font-family:Verdana; mso-hansi-font-family:Verdana; font-weight:bold;} .MsoChpDefault {mso-style-type:export-only; mso-default-props:yes; font-size:10.0pt; mso-ansi-font-size:10.0pt; mso-bidi-font-size:10.0pt;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} –> Much like the equity markets, real estate investors are constantly digesting real estate trends, mortgage trends, community development trends and attempting to read the trajectory of the real estate recovery. It seems like everywhere you turn, there is one more piece of insightful feedback supporting one more theory.

The shape of the recovery may well influence your investment strategy. The most common debate evolves around whether the recovery will be V-shaped or W-shaped. The V shape would indicate that 2009 and 2010 will be good times to invest. A W-shaped recovery suggests a prolonged period of opportunity and a buy and hold pattern of investment.

Steve Horne, CEO of the loan modification firm Wingspan Portfolio Advisors, says; “I am a firm prophet of the W-shaped recovery. Housing is going top go down again in the first quarter of 2010. The healing won’t begin until all these non-performing loans start trading in earnest, until we get borrowers back on their feet.”

Horne just may be right. “A lot depends on how long the government keeps its buying up. Rates are still at all-time lows, but once the buying stops, we’re going to come to a pretty hard stop. We are likely to see a much smaller mortgage market after the second quarter and later in 2010.”

As the economy shows signs of stabilization, the government is expected to pull back from the infusion of more funding. The continued government investment in toxic assets is considered inflationary. This will mean that banks must dispose of the assets and incur substantial losses. The result is likely to be further setbacks to market values.

Only when this shadow inventory is cleared out can investors expect to see prices begin to rise. However, equity markets have performed similarly. And, equities have surged more than 40% in 2009. Thus, the appearance of the W-shaped recovery gains credence. No one has ever doubted that successful investing includes being in the right place at the right time.

Add Bookmark

Full time worker’s unemployment has risen to 11.1 percent this month; this has moved upwards from the 9.8 percent in the last month. Full time workers are individuals who have consented to work for at least 35 hours per week. The number of full time unemployed people stood at 15.2 million, which is the highest in the last 40 years.

Increase in the unemployment rates has adversely impacted the loan repayment of many homeowners. Due to this trouble in loan repayment, many homeowners have been forced into delinquency due to repeated defaults. The net result has been increased foreclosure rates and more people losing homes. This has further reduced the demand.

The good news for some is that there are many choices, good ones, for homes at a price that they could never have imagined. The foreclosed properties are getting the prices down for the resale homes. It is believed that many financial institutions and banks have not enforced foreclosure on a large segment of their customers since these people are some type of loan modification program. When these programs end and there is no change in the repayment pattern of the individuals, the foreclosures will shoot up. The home loan interest rates have plummeted over the last few months reaching 5 percent in the previous week for a 30-year fixed term plan.

Most of the states have shown reduction in inventories over the past few months and this month the sales are up considering the above factors. Mortgage interest rates and availability of resale homes at less than the fair prices have prompted many to take the plunge. Adding to the spurt in buying is the fact that the first time buyers were given a tax incentive of $8000, which now ends on April 30, 2009.

Whatever your plan may be, to hold back or to take the gamble, you should be absolutely sure of your financials. Your current financial situation and the future cash inflows are both to be considered whilst making a decision. Once your finances are settled, this might be a good time to look at the option of buying your family the home that you have been waiting for. In case you are not too sure of your future cash flows, even though your current situation looks comfortable, you might just think about waiting a little bit more.

Add Bookmark

<!– /* Font Definitions */ @font-face {font-family:Wingdings; panose-1:5 0 0 0 0 0 0 0 0 0; mso-font-charset:2; mso-generic-font-family:auto; mso-font-pitch:variable; mso-font-signature:0 268435456 0 0 -2147483648 0;} @font-face {font-family:”Cambria Math”; panose-1:2 4 5 3 5 4 6 3 2 4; mso-font-charset:1; mso-generic-font-family:roman; mso-font-format:other; mso-font-pitch:variable; mso-font-signature:0 0 0 0 0 0;} @font-face {font-family:Verdana; panose-1:2 11 6 4 3 5 4 4 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:-1593833729 1073750107 16 0 415 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-unhide:no; mso-style-qformat:yes; mso-style-parent:”"; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:”Times New Roman”,”serif”; mso-fareast-font-family:”Times New Roman”;} h1 {mso-style-unhide:no; mso-style-qformat:yes; mso-style-link:”Heading 1 Char”; mso-style-next:Normal; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; page-break-after:avoid; mso-outline-level:1; font-size:11.0pt; mso-bidi-font-size:12.0pt; font-family:”Verdana”,”sans-serif”; mso-font-kerning:0pt;} p.MsoBodyText, li.MsoBodyText, div.MsoBodyText {mso-style-noshow:yes; mso-style-unhide:no; mso-style-link:”Body Text Char”; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; mso-bidi-font-size:12.0pt; font-family:”Verdana”,”sans-serif”; mso-fareast-font-family:”Times New Roman”; mso-bidi-font-family:”Times New Roman”;} span.Heading1Char {mso-style-name:”Heading 1 Char”; mso-style-unhide:no; mso-style-locked:yes; mso-style-link:”Heading 1″; mso-ansi-font-size:11.0pt; mso-bidi-font-size:12.0pt; font-family:”Verdana”,”sans-serif”; mso-ascii-font-family:Verdana; mso-hansi-font-family:Verdana; font-weight:bold;} span.BodyTextChar {mso-style-name:”Body Text Char”; mso-style-noshow:yes; mso-style-unhide:no; mso-style-locked:yes; mso-style-link:”Body Text”; mso-ansi-font-size:11.0pt; mso-bidi-font-size:12.0pt; font-family:”Verdana”,”sans-serif”; mso-ascii-font-family:Verdana; mso-hansi-font-family:Verdana;} .MsoChpDefault {mso-style-type:export-only; mso-default-props:yes; font-size:10.0pt; mso-ansi-font-size:10.0pt; mso-bidi-font-size:10.0pt;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} /* List Definitions */ @list l0 {mso-list-id:346179765; mso-list-type:hybrid; mso-list-template-ids:268051868 791953350 67698691 67698693 67698689 67698691 67698693 67698689 67698691 67698693;} @list l0:level1 {mso-level-start-at:0; mso-level-number-format:bullet; mso-level-text:; mso-level-tab-stop:1.0in; mso-level-number-position:left; margin-left:1.0in; text-indent:-.5in; font-family:Symbol; mso-fareast-font-family:”Times New Roman”; mso-bidi-font-family:”Times New Roman”;} ol {margin-bottom:0in;} ul {margin-bottom:0in;} –>

As every investor knows, the closing costs can impact the project. When you apply for the mortgage, the lender is obligated to provide a good faith estimate of the closing costs within three days after accepting the application. However, these are only estimates and often the lender will raise fess at the last minute. Like every other aspect of the purchase process, some closing costs are negotiable and there are steps the buyer can take to control those fees.

Remember that there are certain expenses not listed on the good faith estimate. Those expenses include the state mortgage tax, homeowners insurance and the property taxes which may be required to be held in escrow at the closing. Buyers should inquire about these rates and the lender’s policy regarding these expenses.

Closing cost irregularities do occur. The U.S. Department of Housing and Urban Development has acknowledged this and is working on a plan to limit the buyer’s exposure. Still in the formulative stages, the plan would save consumers as much as $1000 in closing costs.

Typically, the closing costs include out-of-pocket expenses like credit report fees, appraisal fees, document preparation fees, title fees, recording fees and underwriting fees. The good faith estimate may not be exact figures but at least it provides a breakdown of the closing costs.

To stabilize the closing costs and to help negotiate better fees there are four recommended practices.

· If you have credit relationship with a lender, talk to that lender. If your credit history with that lender is strong, you may qualify for reduced rates. Additionally, the relationship may pave the way to a streamlines process that is bound to save you money.

· Title insurance rates are not set by the lender. But, the lender can help. Don’t be afraid to ask for their help in reducing this expense. You may save as much as 50%.

· Before going to an outside lender, talk to your existing lender first. If they are happy with your business, they may give you the best terms.

· Negotiate, negotiate. There is plenty of money on the table. Don’t be afraid to negotiate with the lender.

Add Bookmark

<!– /* Font Definitions */ @font-face {font-family:”Cambria Math”; panose-1:2 4 5 3 5 4 6 3 2 4; mso-font-charset:1; mso-generic-font-family:roman; mso-font-format:other; mso-font-pitch:variable; mso-font-signature:0 0 0 0 0 0;} @font-face {font-family:Verdana; panose-1:2 11 6 4 3 5 4 4 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:-1593833729 1073750107 16 0 415 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-unhide:no; mso-style-qformat:yes; mso-style-parent:”"; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:”Times New Roman”,”serif”; mso-fareast-font-family:”Times New Roman”;} h1 {mso-style-unhide:no; mso-style-qformat:yes; mso-style-link:”Heading 1 Char”; mso-style-next:Normal; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; page-break-after:avoid; mso-outline-level:1; font-size:11.0pt; mso-bidi-font-size:12.0pt; font-family:”Verdana”,”sans-serif”; mso-font-kerning:0pt;} span.Heading1Char {mso-style-name:”Heading 1 Char”; mso-style-unhide:no; mso-style-locked:yes; mso-style-link:”Heading 1″; mso-ansi-font-size:11.0pt; mso-bidi-font-size:12.0pt; font-family:”Verdana”,”sans-serif”; mso-ascii-font-family:Verdana; mso-hansi-font-family:Verdana; font-weight:bold;} .MsoChpDefault {mso-style-type:export-only; mso-default-props:yes; font-size:10.0pt; mso-ansi-font-size:10.0pt; mso-bidi-font-size:10.0pt;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} –>

There is a lot to like about Tampa, Florida. It is not just the weather and the spectacular views or even Derek Jeter’s exciting new 33,000 square foot house. Tampa has cultural centers, a university atmosphere, a terrific hospital, great college and professional sports and panoramic big water vistas. It just plain feels healthy.

Tampa is also a city caught up in the Florida real estate crisis. Tampa has a few features that make it appealing for investors. The city has an unusually strong rental market. In November, 4500 rental units, including houses, condos and apartments came on the market. And, they are renting, not for as much as two years ago, but at acceptable rates considering purchase prices and today’s interest rates. Additionally, Tampa has a very favorable tax base.

In fact, rents, like property values are at the lowest levels in three years. So many investors purchased during the boom that the recession has encouraged many to simply walk away from the receding values attached to their homes. In November, 4200 homeowners were sued for foreclosure by lenders.

For many of these owners, foreclosure is a choice. They can afford to stay but are unwilling to continue pouring money into investments that have lost 30 – 40 % of the original purchase price. Many of these owners do not even attempt to capitalize on government-backed modification plans.

Local investors and northern neighbors are moving onto the scene. Recognizing the relative strength of the rental market and the bargain basement purchasing opportunities, blocks of homes are moving at pretty amazing prices.

The experienced investors are connecting with agents who understand the REO and foreclosure marketplace. The have their paperwork ready, their tentative financing in place and are approaching lenders with strong purchase offers.

This scenario is typical of what is happening throughout Florida, Nevada and Arizona. Investors, who are patient, understand the foreclosure and REO marketplace and those investors who have presentations ready to go, can buy low, rent and sell higher as the market recovers.

Add Bookmark

Americans have learned a lot about the real estate business and about the mortgage industry in this recession. In some cases, it is more than they care to know. Now, some homeowners know their loans were the result of predatory lending practices that have nearly destroyed our financial institutions.

Post recession credit markets, real estate markets and mortgage practices have changed. The American homeowner proceeds with caution and for the first time in a very long time, Americans are beginning to save money.

Before the ship is righted, there will be more suffering. But when the Oracle of Omaha, Warren Buffett, speaks, people listen. Buffett believes there are too many homes on the market. Supply outweighs the demand. This drives prices down and sends a buy signal to able investors.

The two factors driving this market are the first time homebuyers who are anxious to beat the November 30^th cutoff date and the expanding floor of distressed properties. These two components are driving the market.

The 2009 first time homebuyer tax credit has created more than 1 million transactions. Despite this activity, 35 percent of existing home sales are distressed, either foreclosed or short sales.

There is no disputing the difficulty of the current market. Basically homeowners and lenders are trying to work through a treacherous predicament that is wrought with disappointment and disillusionment. One symptom that has become increasingly evident is that more distressed sales will continue to occur. Between July and September 2009, more than 1 million homes were engaged in the foreclosure process. This trend will continue through 2010 and into 2011.

In areas like Nevada, once a booming real estate industry, one of every 23 households was in foreclosure. Real estate price have plunged 50-60% below market highs. Investors who can afford to buy low and hold are well positioned to capitalize.

Add Bookmark

In early 2009, the Appraisal Industry and Profession underwent a strong attack. The result was passage of the Home Valuation Code of Conduct (HVCC). The New York State Attorney General’s office participated in formulating the new appraisal standards in efforts to resolve discrepancies with Fannie Mae and Freddie Mac. The objective of the new appraisal guidelines was to put an end to the “old boy network” that the Attorney General’s office felt had contributed to the housing collapse.

If there was ever a question that highlighted the fact that politics and business do not mix, HVCC provides ample evidence. One of the stipulations of this new code called for the selection of an appraiser by an independent third party. The idea is that the appraisal must be an arms length transaction.

The problem with this selection mechanism is that appraisers who are unfamiliar with certain areas were requested to furnish appraisals. As real estate investors and agents know, location can greatly influence the value of a home. Very often the selected appraiser did not reside in the area where the appraisal was to be performed. Hence, there was great confusion. The net result was that thousands of transactions failed to close.

To complicate the process further, real estate appraisers were hesitant to approach local real estate agents for comparable analysis reports. The appraisers were intimidated by language relative to the arms length component of the HVCC.

In reality, the HVCC does not prohibit the real estate agent and the appraiser from discussing the subject property and the local market. Agents should be prepared to offer comparables to appraisers. Agents should have this analysis ready prior to the appraisal.

The primary complaint with the HVCC is that too often the selected appraiser was not local and had no knowledge of the local market and tendencies in that market. Real estate is, after all, about local values. At first the marketplace was in chaos. As local real estate agents presented their cases to HVCC, some modifications were made and local appraisers are used more regularly. However, agents should protect their clients and furnish appraisers with as much comparable data as possible.

Add Bookmark

A series of factors are contributing to the recent upswing in national real estate sales and rising prices. The National Association of Realtors released the association’s monthly pending sales report stating that for the sixth consecutive month pending home sales have increased. This is the first time such a trend has emerged since the pending home sales index was initiated in 2001.

July pending sales rose 3.2% over pending sales recorded in June. Year-over-year comparisons show a 12.0% increase in July 2009. The current pending home sales reading is 94.6 as compared to the highest rating ever recorded of 100.7 in June 2007. Much of the credit for the recent upsurge is accredited to first homebuyers who are rushing to capitalize on the 2009 first time homebuyers tax credit.

However, as Lawrence Yun, NAR chief economist, reports; “Other buyers are taking advantage of low home values before prices turn higher. Nationally, the typical mortgage payment now takes less than 25 percent of a middle-income family’s monthly income to buy a median priced home, with payment percentages so far in 2009 being the lowest on record dating back to 1970. As long as homebuyers stay within their budget, mortgage payments will be very manageable.”

Yun refers to the fact that home values have decreased and interest rates remain very favorable for purchasers. With an abundance of distressed housing and foreclosed properties on the market, conditions for investors have never been better. Values are low but are beginning to show signs of recovery. It is an excellent time to buy low and sell high.

If Congress follows the NAR’s recommendations and passes the 2010 tax bill suggested by the association, all homebuyers will be eligible for a $15,000 tax credit, a percentage of which can be used toward the down payment. If this bill passes, investors can expect a flurry of buying activity and increasing property values.

With favorable purchasing terms and the prospect for rising demand and values, the time is right for real estate investing. Contact an experienced real estate agent and capitalize on the market trends.

Add Bookmark

In today’s real estate market, houses are selling.  It takes some marketing and an understanding of market conditions but it also takes some good old-fashioned ingenuity.  Today’s successful real estate sellers know their market, know their market is on the Internet and deliver an exciting photo shoot to that market.

Sellers today acknowledge the importance of the Internet and embrace the venue as a great way to familiarize buyers with the property before an actual showing.  Buyers who have screened the house have found something they like and have opted to physically inspect the property.  That can only be interpreted as good news.

To maximize your online photography or virtual tour takes a bit of planning.  The process begins by establishing the sale of the property as the family’s common goal.  Every family member must do his or her part.

Prior to listing the home, remove all clutter.  Clean and re-organize closets, basements, garages and attics.  The only items that remain must be absolutely necessary or positively impact the photo-ability of the property.

Never underestimate the importance of the entryways and exits when it comes to real estate.  If you need to dress up the walkway, put fresh plantings in place or repair the doorbell, do not hesitate.  Go for it.  In fact, make sure every light switch, doorknob, faucet and toilet are working well.  Buyers will test everything, including your patience, but that is their job.  Yours is to make it easy for them

Once the house is free of clutter, organized and running efficiently, come up with a lighting plan.  Make sure all family members are familiar with the plan and can activate it for showings.

Before actual videoing or photo shooting the property, do a walk through and try to see what the camera will see.  For most buyers, this photo-op will be their first look at your property.  Give them something to think about.

When the photo shoot is complete, review the results.  If you are not satisfied, re-do the shoot.  It really is that important.  One picture says a thousand words.  Make sure they are the right words and you will be on your way.

Add Bookmark