Archive for the ‘Questions and Answers’ Category
Successful Real Estate Tips
May 7th, 2011 | 
Author: In the real estate business there is a lot of options available for people that would like to buy or either sale homes. If you’ve never done the real estate business before or might not know a lot about it doing some research on it and getting tips is a must. After learning these tips you’ll need to put them into practice because that way you will become very successful with the real estate business and that’s what counts.
One thing to remember is that in time your work should be automated and you should have a system done in such a way that you won’t have to worry about things. The best way to go about doing this is to get help from a virtual assistant that can check emails, voice mails and receive the calls when you are very busy. You can hire this kind of assistant online or either find one in your local area. Some people make the mistake with thinking they can go into this field and not need any help, that’s when they usually don’t succeed.
A lot of beginners in the real estate business often times try buying property that is cheap and then sell that property for a higher price. This strategy is excellent but it can cause some problems. The trick with doing this is to make sure that you keep all of the costs as low as possible and that’s easier said than done. Homes sometimes have repairs that need fixing. These repairs can cost a lot but if you’re looking into making some money one way to do the minor repairs is just to fix it yourself. However, if you cannot make the repairs look professional then try finding a company that can get it done before selling the home.
When it comes time to sell the home be firm with the potential buyer. While being firm with him try to remain flexible. There are times that some people might be on a tight budget and under a lot of stress when they are looking for a home. Consider all of that when talking with them but don’t sell it at such a price that it might put you at risk with losing money. Be patient with talking to the possible buyer and never walk out of the room upset or angry. Try and be as calm as possible and polite. Some buyers might be difficult to get along with but remember, you don’t know what’s happening in their life and they might just have a lot going on at the moment.
Always listen to what the buyer is saying. Never act like you’re not interested even if they repeat the same sentence a few times. Sometimes people get nervous when it comes to buying a home. Don’t try and take advantage of this to make a quick buck. Make sure that they are happy with the home and let them feel as if they can talk with you about anything. Once you’ve established some kind of trust between them you will have a higher chance of making profit or either they might spread your name around and you could get more business just with word of mouth by being polite to them.
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What Will Your Home Be Worth In 5 Years?
If you’re like most Americans, the value of your home has already dropped significantly. And, home prices have continued to decline so far this year. There’s no real recovery in sight as attested by a recent poll showing just 15% of homeowners believing their house will be worth more next year. A look inside the numbers indicates the future is troubling.
First consider the short-term market attitudes. Following a survey conducted in mid-April by Rasmussen it was reported that 15% of homeowners thought their homes would go up in value next year, 33% expected they would be worth less and 50% said they would retain their current value.
Of course, by maintaining a home’s market value today means it may sell for 20% less than just a couple of years ago. That’s a big loss of potential income for anyone, especially new seniors who expected their homes would help finance retirement expenses. Many of these 65+ homeowners hoped to sell the house and move to smaller quarters. Some wanted stay put and get a reverse mortgage. Others planned to wait until it was time to go into a retirement community before placing their homes on the market.
In the meantime, those who are decades away from retirement continue to worry about making monthly payments and hope things will eventually turn around. However, their attitudes suggest a bleak picture going forward. In April 2009, 55 % of respondents said the value of their home would increase in the next 5 years. In April 2011 the number dropped to 39%. This is down by 5 points in a single month and represents the highest negatives in a 2 year period.
Men have a more positive attitude toward home values increasing over the next half-decade (45%) compared to women (33%). For prices remaining the same, 31% of men said they would as did 42% of the women. Among those believing prices will continue to fall, men and women were about equal at 18% and 19% respectively. And, attitudes tended to become more negative with age; nearly half (49%) of those 30 to 39 saying prices will go up in the next 5 years while only 37% of those 65+ shared this belief.
Waiting for the market to get healthy can be an expensive proposition. Energy costs are on the rise as are the prices for building materials needed to keep a home looking good. All the while, many homeowners are faced with rising property taxes. So owning a home has become less attractive to some. This makes the potential buyers pool even smaller.
Nonetheless, most Americans dream of owning a home and still consider it a good investment. This means saving for a down payment rather than getting into a place for nothing down and interest only for several years. Smaller homes at lower prices are growing in popularity. Multi-generational families (grandparents living with their adult children and the grandkids) may influence marketplace dynamics. One thing is certain; there will always be a real estate market in this country. We just don’t know what it will look like as changes occur in the months and years ahead.
Residential Real Estate Outlook
One of the most startling statistics regarding real estate in this country, and a fact few people even realize, is that eighty percent of land in the United States is held either by the Government or is being used for agricultural purposes. What this means is that only one-fifth of the country is available to support all residential and commercial uses. This equates to nearly 400 people per square mile of land. By 2020, Census projections show an increase of more than 40 million Americans which will increase density to 450 people per square mile. Despite the mortgage crisis and resulting financial meltdown of the last several years, these statistics seem to indicate that owning real estate in America will continue to be a wise investment. In the very basic economic sense, there is no more land being created (limited supply) and more population density every day (increased demand). As any college freshman will tell you, this most certainly will result in price appreciation over the long term.
Up until 2007 and the bursting of the proverbial real estate bubble, U.S. homeownership had accelerated at an unprecedented rate. This increase was undoubtedly brought on by low mortgage interest rates from the Fed, lenient underwriting guidelines by lenders, poor government oversight, Wall Street greed, and “irrational exuberance” by the American consumer. But, the demographics tell us even more about the extraordinary rise of the housing sector. The last 20 years was the period of time when the Baby Boom generation, ages 40 to 54 years of age, was in its economic prime. Earnings were at their peak for this age group and families were being raised which resulted in the increased demand of large suburban homes.
By 2020, however, the Baby Boom generation transfers into another phase of their life – empty nesters and active retirees. What this means for real estate investors is that housing demand will shift from single family homes in the suburbs to multi-housing rental units and/or condominiums. These units will give Baby Boomers a smaller space and less individual maintenance responsibility. Sunbelt locations and higher density urban areas with strong entertainment sectors and cultural attractions will generally benefit most of all.
At the same time, younger Americans from ages 25 to 34 years, will be growing from 39 million (the baby bust) to 45 million (the echo boom). This will significantly add to the pool of potential apartment renters and condo owners and increase density further in large cities with a strong job market.
The final component of housing demand will come from immigration, which account for nearly 40 percent of total population growth in the U.S. Most immigrants are of working age when they arrive in the U.S. and will certainly look for urban areas where they can take advantage of public transportation and large job markets. Although most assimilate into the mainstream, and ultimately become homeowners, the great majority are renters during their first decade in the country.
In conclusion, between now and 2020, trends indicate that a minimum of 5.3 million housing units, primarily in urban areas, will be needed to accommodate population growth. This does not account for older units in need of repair. Therefore, although the real estate market has been struggling for the past several years, all macro indicators point to long term price appreciation and positive earnings for residential real estate investors and developers.
