Seller or Buyer Market?

If you listen to the media you will never know which way is up when it comes to the state of the real estate market. It’s not just the market that determines how a house will sell but also location, price, and condition of the home.

Like they say real estate is local. Just like you wouldn’t expect the weather to be the same in one place vs. another – the same is true about the real estate market. There are a few things you can look at to determine the type of market in your area.

1. Contact a real estate professional.

2. If you are a seller ask for a comparable market analysis on your home.

3. If you are a buyer determine the average number of days on the market in your desired area and price range.

4. Ask your agent what the absorption rate is the market your are looking to buy or sell. Absorption rate is the rate at which homes are selling.

Whether you are buying a home or selling it’s important to understand the market conditions.

What you Need to Know about Investing

Buying property can definitely be a very lucrative investment. However, before you decide on buying and selling real estate, you have to have a good understanding of the markets. In other words, if you are looking to buy so that you can sell down the road to make a profit on your real estate, then you are better off achieving this when the housing market is slow, as there is less demand for buying houses, thus forcing sellers to lower their prices. This in turn will allow you to get a home at the lowest price possible, and then being able to sell it at a higher price once the markets begin to move again.

Of course, investing in real estate is not only about the current conditions of the housing market. In addition, you also have to look at other factors such as the location the real estate will be in, the condition of the real estate, and the reason why the owner is looking to sell. In the end, buying and selling real estate carries the same risks as any other type of investment, and the only way to avoid these risks is through proper research. More importantly, you will be spending a good amount of money on real estate compared to other types of investments, and so you want to make sure that your money is well spent. By keeping these valuable points in mind, you will be able to find the right property to invest in.

How NOT to Negotiate a Home Purchase

When you are looking at buying a home there are don’ts you should be aware of. Many times the handling of the negotiation can mean the difference in huge amounts of money. This is why it is vital to have an experienced agent on your side. Here are just a few common pitfalls to avoid.

 

Not doing your homework

Doing your homework is important in such a large purchase. Ask your agent for a list of comparable homes recent sale prices. Look to see how long comparable listings have been on the market and what the average sale to list price ratio is. This will give you the information you need when making an offer and negotiating a final sale price.

Not understanding the seller

Try to look at the deal from the opposite side of the table. A sale is typically emotional for a seller. When making an offer try not to insult the seller, offering a fair and realistic offer to purchase will typically get you further in the negotiations. If you know the seller’s motivations for selling you may also be able to offer terms that might be more attractive like a quick close or inspection.

Showing your cards

While you want to know as much about the seller as possible divulge as little about yourself in the negotiation as possible. Any knowledge the seller has about your motivation can be used as leverage in the negotiation.

Getting your heart set

Buying a home can often be an emotional process. Identify several properties you’d be happy with as well. Be careful not to get your heart in the way of your head as it can sometimes hinder the deal.

Trying to win

In a sale there needs to be two ingredients: a seller who wants to sell and a buyer who wants to buy. Try not to getting caught up in the game. Ultimately it is about buying a home and not winning a negotiation.

Money Saving Tips on Moving

Moving can be an expensive endeavor. Even if you decide to rent a truck and move your belongings yourself there are lots of other expenses that can add up. Luckily, there are a few simple ways consumers can save money hauling their belongings from their current home to the next one.

Purge your things. Instead of moving things that you don’t use sell or donate them. If you decide to donate items to charity, you could save lots of time and even get a tax deduction.

Move on a less popular day. The most popular time to move is at the end of the month. Since most closings happen and leases are up at the end of the month there’s more competition for the trucks and moving crews. Moving at the end of the month will also cost you more. Choose your moving date midweek, closer to the middle of the month.

Packing materials like bubble wrap and foam peanuts are costly. If you are packing your own items use things you have around the house like bed linens, towels and clothing to pad your items. You can also use newspapers and tissue paper from gift bags. Be careful when using newspaper as the newsprint will smudge on dishes and other items.

Don’t buy moving boxes check Freecycle and Craigslist for free ones first. Ask around, your friends may have boxes suitable for moving.