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 | Is now a good time to sell your home? |
 Hacked By rock_841 bildirdi: "If you own a home in a real estate boom market, you are probably richer now
than you ever thought you could be–on paper. Even if your house is in a real
estate market that's rising more modestly, you may still be feeling pretty
flush–on paper. But is it possible to "cash out" your paper wealth?
Assuming you're living in the home you own (if you own investment properties,
stop reading this article now and just go talk with a real estate broker or
investment advisor), you'll have to find new housing if you sell. That's the
point where most people stop thinking about "cashing out" their home's equity.
After all, if you'll just end up spending all that money on another house, why
bother?
The reality is that most homeowners can, in fact, "cash out." For many
homeowners, selling property really will be quite a windfall. Not selling now
might be the biggest financial mistake of their lives. For some, selling would
be an equally bad idea. How do you know which came you fall into?
Selling Your Home: Three Options
If you sell your home then buy a comparable home in the same market, you'll
simply be losing money on the costs involved in real estate transactions. There
are, logically, only three scenarios in which it would be possible to actually
sell your home and not lose your big money on buying another home–and all of
them are better ideas than you might assume:
- selling then renting new housing
- selling then buying more modestly priced housing
- selling then moving to a less expensive market
1. Selling then Renting New Housing
Have you checked what rents are like in your community? According to a recent
New York Times article, in the most price-inflated housing markets–most
prominently, the Bay Area of California, Boston, New York City, and Miami–
renting is now an indisputably better deal, at least in the immediate future.
When you add to the cost of buying a house such "hidden" costs as property
taxes, interest on a mortgage, real estate transaction costs, and maintenance,
owning can easily cost twice as much as renting.
In terms of investment value, housing prices would have to rise far faster
than they are rising now for buying a home in an overheated market to be
anything but a money-loser for about the next ten years, and possibly far
longer. Given that buyers are now stretching themselves thin to buy homes in the
current market, you have to ask: who will be left to buy homes if prices
actually do double? In the long term, San Francisco, Boston, and Manhattan may
compete directly with Hong Kong, London, and other highly desirable cities in a
virtually limitless price war. For now, there aren't enough multi-millionaires
in any of these cities to keep prices going skyward forever.
Of course, some markets are still good for buying your own home. According to
the New York Times, the cutoff point when buying is more expensive than renting
is roughly when it would take more than twenty years' worth of rent to equal the
sales price. Chicago is the biggest market in which the Times says it still
makes sense to own rather than rent, at least if you're staying longer than a
few years. Meanwhile, if you're buying the property as a long-term investment
and will be renting it out, the rent may very well be enough to make up for the
costs of owning.
2. Selling then Buying More Moderately-priced Housing
In the stock markets, you can manage your risk by selling some of a
high-performing stock in case it drops and keeping some of it in case it goes
higher. With housing, the closest thing to hedging your bets is to trade down
for a less expensive property. Housing prices don't always follow people's
tastes exactly, so a less expensive house might actually be more to your liking
than your current home. A "less convenient" street may also be less busy and
therefore more quiet. Or, your home might owe part of its market value to its
proximity to public transportation that you don't use anyway.
3. Selling then Moving to a Less Expensive Market
Moving to a less expensive market might seem like the least practical way to
cash out your home's equity. But don't rule it out completely: you don't have to
move to Nebraska, just to a nearby market. Particularly if your job isn't close
to home now anyway, it might be easy to move from San Francisco to Sacramento or
from Boston to Providence.
Depending on your lifestyle, you could even combine some of the options
above. For instance, if you're retiring, you might sell your home, spend
extended stays in faraway cities you always wanted to visit, and then return to
rent or buy a smaller "empty nest" apartment.
Of course, there are intrinsic benefits to home ownership, such as the
freedom to change the paint or have guests over whenever you wish without
checking your lease. Just don't confuse those intangible benefits with economic
ones. After all, you can't pay the mortgage with intangibles.
Joel Walsh writes for http://www.bayarearealestateadvisor.com about Bay Area real estate:
bay area real estate: http://www.bayarearealestateadvisor.com "
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Gönderen: rock_841 Tarih: 13.06.2006 Saat: 22:07 (47 okuma)
(yorumlar? | Puan: 0)
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| San Francisco Real Estate: Buyer's Market? Seller's Market? Both? |
Hacked By rock_841 bildirdi: "San Francisco real estate, one of the USA's supposedly "frothiest" real
estate markets, is no longer an instant jackpot for sellers–now it's just a
jackpot. Buyers, though still facing high prices, now have enough time to
actually think an offer over before making it.
Back in 2004 a piece of San Francisco real estate might spark a bidding war
among prospective buyers as soon as it hit the market. Today, a property might
actually–gasp!–sit on the market long enough for buyers and sellers to
negotiate.
San Francisco Real Estate: Good Time to Buy, Sell, or Both?
To recap the San Francisco real estate market 2004-2005
2004: prices high, seller's market;
2005, spring: prices even higher, all-out seller's market; 10 offers on a
new listing common
2005, fall: prices only slightly higher or same; 1-2 offers on a new
listing more common
In short, while average selling prices haven't dropped, now might still be a
better time for prospective buyers–and even sellers–who prefer a calmer
market.
True, there are those who have been saying for five years now that you should
sell as fast possible and not even think of buying. Now that the market for real
estate in San Francisco more closely resembles a real estate market than an art
auction, those same people are talking of a "slow-down" and even the bursting of
the often-alleged Bay Area real estate bubble.
But after accelerating head-long for years, it was hard for the market to do
anything but slow down. Meanwhile, with multi-million-dollar houses, apartments,
and offices selling for no less than before, it's hard to feel like anything is
bursting except sellers' bank accounts. Of course, there's never any telling
what the future might bring.
Tom Hageman, a licensed California realtor with a blog at
ziprealty.typepad.com, notes that the market is still strong, but properties
will sit on the market longer starting in fall 2005, for a variety of
reasons:
More properties entering the market, since realtors traditionally advise
clients to list properties after Labor Day, when everyone's back from vacation
and the Bay Area's radiant autumn casts an attractive glow over
properties.
Buyers getting nervous at the media talk of a real estate bubble.
Some sellers have overpriced their properties significantly.
Ideas for Buyers and Sellers of Real Estate in San Francisco
"When prices fall or rise is very hard to predict," notes Tom Hageman. "If
anyone truly knew what was going to happen next, they would be a very rich
person."
Still, Hageman's blog offers some advice that seems to make a lot of
sense.
For buyers, Hageman thinks that now is a relatively good time to buy, with
fewer sellers setting unrealistic prices, the bidding war of Spring 2005 long
over with, and interest rates still relatively low.
For sellers, Hageman thinks that except for properties in high-demand areas,
"it will be unlikely that you will receive record breaking multiple offers. I
believe that the old saying of 'your first offer is usually the best' is often
true."
Important disclaimer: the above article is provided for your reading pleasure
only and is not intended to provide investment advice. All examples are
hypothetical and intended as illustrations, not guidelines. Opinions expressed
in this article are not necessarily those of the owners.
About the author: Joel Walsh is a freelance writer who advises that none of
the preceding should be taken as investment or real estate advice, and hopes you
get real estate advice from qualified professionals. You can go here for more
news on San Francisco real estate: real estate: http://www.bayarearealestateadvisor.com "
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Gönderen: rock_841 Tarih: 13.06.2006 Saat: 22:06 (28 okuma)
(yorumlar? | Puan: 0)
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| San Francisco Real Estate: Buyer's Market? Seller's Market? Both? |
Hacked By rock_841 bildirdi: "San Francisco real estate, one of the USA's supposedly "frothiest" real
estate markets, is no longer an instant jackpot for sellers–now it's just a
jackpot. Buyers, though still facing high prices, now have enough time to
actually think an offer over before making it.
Back in 2004 a piece of San Francisco real estate might spark a bidding war
among prospective buyers as soon as it hit the market. Today, a property might
actually–gasp!–sit on the market long enough for buyers and sellers to
negotiate.
San Francisco Real Estate: Good Time to Buy, Sell, or Both?
To recap the San Francisco real estate market 2004-2005
2004: prices high, seller's market;
2005, spring: prices even higher, all-out seller's market; 10 offers on a
new listing common
2005, fall: prices only slightly higher or same; 1-2 offers on a new
listing more common
In short, while average selling prices haven't dropped, now might still be a
better time for prospective buyers–and even sellers–who prefer a calmer
market.
True, there are those who have been saying for five years now that you should
sell as fast possible and not even think of buying. Now that the market for real
estate in San Francisco more closely resembles a real estate market than an art
auction, those same people are talking of a "slow-down" and even the bursting of
the often-alleged Bay Area real estate bubble.
But after accelerating head-long for years, it was hard for the market to do
anything but slow down. Meanwhile, with multi-million-dollar houses, apartments,
and offices selling for no less than before, it's hard to feel like anything is
bursting except sellers' bank accounts. Of course, there's never any telling
what the future might bring.
Tom Hageman, a licensed California realtor with a blog at
ziprealty.typepad.com, notes that the market is still strong, but properties
will sit on the market longer starting in fall 2005, for a variety of
reasons:
More properties entering the market, since realtors traditionally advise
clients to list properties after Labor Day, when everyone's back from vacation
and the Bay Area's radiant autumn casts an attractive glow over
properties.
Buyers getting nervous at the media talk of a real estate bubble.
Some sellers have overpriced their properties significantly.
Ideas for Buyers and Sellers of Real Estate in San Francisco
"When prices fall or rise is very hard to predict," notes Tom Hageman. "If
anyone truly knew what was going to happen next, they would be a very rich
person."
Still, Hageman's blog offers some advice that seems to make a lot of
sense.
For buyers, Hageman thinks that now is a relatively good time to buy, with
fewer sellers setting unrealistic prices, the bidding war of Spring 2005 long
over with, and interest rates still relatively low.
For sellers, Hageman thinks that except for properties in high-demand areas,
"it will be unlikely that you will receive record breaking multiple offers. I
believe that the old saying of 'your first offer is usually the best' is often
true."
Important disclaimer: the above article is provided for your reading pleasure
only and is not intended to provide investment advice. All examples are
hypothetical and intended as illustrations, not guidelines. Opinions expressed
in this article are not necessarily those of the owners.
About the author: Joel Walsh is a freelance writer who advises that none of
the preceding should be taken as investment or real estate advice, and hopes you
get real estate advice from qualified professionals. You can go here for more
news on San Francisco real estate: real estate: http://www.bayarearealestateadvisor.com "
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Gönderen: rock_841 Tarih: 13.06.2006 Saat: 22:06 (29 okuma)
(yorumlar? | Puan: 0)
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| Residential Property Flipping and Real Estate Today |
Hacked By rock_841 bildirdi: "The twenty-first century has given real estate a whole bunch of new household words, from ARM to interest-only mortgage (OK, that's three words, but you get the idea). Increasingly, one of the most-mentioned words in real estate is "flipping." No longer just something Marcia Brady does with her hair, flipping is now a driving force in the real estate market.
What Is Real Estate Flipping?
Flipping, a.k.a. "house flipping," "home flipping," "property flipping," or "real estate flipping," is the rapid buying and selling of a single property. For instance, someone buys a house, building, or apartment, for $500,000, and then sells it six months later for $550,000.
Yes, people are actually doing this--people, as in private individuals of no particular wealth, leveraging their retirement savings or even buying using interest-only mortgages or other easy financing. Large real estate investors have been doing essentially the same thing for a long time, particularly in commercial real estate. But what's gotten the real estate world talking about flipping now is precisely that it is in the residential real estate, and involving private individuals as buyers and sellers. Flipping has transformed the residential real estate market, at least in some regions. What was primarily a series of transactions between current and prospective residents has become a speculative market driven by small investors, much like the stock or bond markets.
As you can see, the phenomenon of flipping real estate is made possible by constantly rising real estate sale prices. Not only that, the phenomenon may very well be feeding into higher property sale prices. Once upon a time, residential real estate demand depended on home buyers looking for a place to live. Flippers add a whole new layer of demand to the mix. A real estate flipper will typically be flipping more than one home at a time, so their impact is magnified even beyond their numbers. In some markets, up to a quarter of all residential real estate sales are estimated to be "flips."
Real Estate Flipping Scares Some Experts
Many observers, including many economists and seasoned real estate professionals, are feeling anxious about flipping. Their biggest concern is that real estate flipping may lead to instability in the market. Why?
- As already noted, flippers are adding a speculative force to the housing market, causing houses to be valued over and above their perceived intrinsic worth. Indeed, in a number of high-flying markets such as Boston, the Bay Area of California, and Miami, rents have not risen anywhere near as fast as prices. Rent is usually considered to be a good indicator of the real value of real estate. To critics of rising real estate prices, stable rents mean that any rise in housing prices must be due to speculation--not necessarily just flipping, but also people who imagine their homes will increase in value.
- Large numbers of flippers are amateur investors. Like amateur investors in the stock market, they may try to cash out of their investments quickly if there are signs of a serious downturn. As in the stock market, lots of amateur investors all trying to cash out quickly may lead to a crash or at least a downward pressure on prices.
- Many flippers are stretching themselves financially to buy properties. If the market goes down a little bit, it may mean a lot of properties in foreclosure or sold at fire-sale prices. This is on top of the already large number of buyers who seem to be stretching to buy their houses with adjustable rate mortgages and interest-only mortgages.
- Many economists and observers generally believe that the US economy is not doing so great. If the economy took a sudden turn for the worse, it might affect the real estate markets in a very bad way. This would magnify troubles for the flippers, who would in turn pass their troubles onto the real estate markets, compounding a bad situation.
Is Real Estate Flipping Really So Bad?
Suffice it to say, there's a lot of hand-wringing over the practice of flipping houses. After all, even if it were a sure-fire investment, there would likely be more than a little resentment at the thought of people who need housing having to compete with people who are out to make a fast a buck. But is it really that bad?
Here are some somewhat-good things that can be said about flipping:
- Rentals. Some home flippers are taking the more traditional real estate investment route of renting properties--at least for a little while. With the most optimistic flippers hoping a property will continue building value for another year or more, it only makes sense to get some rental income on it while it’s building property value. So, at least in those cases, a tight housing market won't be losing space.
- Improvements. Even before "flipping" was a word, handy home buyers would take fixer-uppers and convert them into something more valuable. While there are fewer and fewer fixer-uppers these days, it's still an important way in which flippers have helped give something back to the community.
- Distressed properties and foreclosures. Enterprising flippers are always looking for housing that's below-market value. This can be a god-send for anyone who needs to unload a property quickly before it's on the foreclosure auction block.
In short, love it or hate it, house flipping has become an important part of many US real estate markets at the dawn of the twenty-first century.
About the author: Joel Walsh writes extensively on real estate: http://www.ziprealty.com
"
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Gönderen: rock_841 Tarih: 13.06.2006 Saat: 22:06 (33 okuma)
(yorumlar? | Puan: 0)
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| An Irresistible Home Starts at the Curb |
 Hacked By rock_841 bildirdi: "The old saying about making a good first impression couldn't be truer than when you are selling your home. That first impression has to create interest from the moment a buyer drives up to your home. Curb appeal is that subjective, intangible quality that entices buyers to think emotionally rather than logically. Perhaps it's the way the home sits on the property, or the mix of clapboard and fieldstone. It may be the expanse of grass carpeting, the stately columns, or the boisterous symphony of greenery and brilliantly colored flowers. In any case, it's love at first sight.
How can you tell where your home registers on the curb appeal scale? One way to find out is to take pictures of your property from various angles. Show them to friends, family, colleagues, anyone known for providing painfully objective feedback. Find out what's appealing about the home and grounds, and what needs improvement. Take the photos to a nursery for a professional landscaper's opinion. Even more important, consult your real estate professional. A local real estate professional has experience selling homes in your area and can be a great resource. Ask the agent to walk around the property with you and view it from across the street. Develop a "to do" list to bring your home up to show condition, then brainstorm easy, cost-effective solutions.
Surprisingly, even small enhancements can make a big difference. Building on your home's curb appeal might be as easy as replacing a broken screen and planting a few flowers near the front door.
Here are some ideas to get you going.
1. Paint and polish. A fresh coat of paint breathes new life into a tired-looking home. If your home looks dull or suffers from peeling, cracked or chipped surfaces, a paint job is a great investment. Many real estate professionals suggest using neutral colors such as white or gray. Whether or not you paint, you'll want to polish the doorknocker and mail slot on the front door, as well as any light fixtures by the entry.
2. Go over the grounds. Mow and edge the grass, and trim the trees and bushes. Also, clear away dead leaves and flowers, and mulch and weed the beds. Check to see that tree branches are not touching the home's roof or outer walls. You can spruce up the property by hanging flowering baskets and placing planters of flowers in strategic spots. Don't forget the side and back yards. Add some flowering plants to the back as well.
3. Make needed repairs. See if anything is unhinged, loose or just an eyesore. Fix everything including broken fencing, windows and screens. Try the doorbell. Check stairs and railings. Test doors for squeaks and rusted hinges. Don't forget to take a critical look at the property at night. Make sure the lights work, and replace dim and burned-out bulbs.
4. Unclutter. Tidy up the deck, patio and back yard. Rearrange the outdoor furniture to look inviting. Put away gardening tools. Clean up the barbecue area. Eliminate any "evidence" of Fido, and restrict him to the back yard when showing the home. Move extra vehicles from the view of passersby.
5. Clean. You want buyers to think the home has been well maintained. To make a bright impression, clean the windows, inside and out, wash down the walks and driveway, and hose down the siding. Clean outdoor furniture and cushions. Check for oil spots on cement surfaces, especially the garage floor.
Remember, a sale can be made or lost as a direct result of your home's curb appeal. Exert a little elbow grease now and you'll captivate buyers at the curb. It's a sure way to a quicker sale.
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Gönderen: rock_841 Tarih: 13.06.2006 Saat: 22:05 (19 okuma)
(yorumlar? | Puan: 0)
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| Contact | |
The Call Hugh Team
Prudential Kelstrup
315 Lakeway Dr.
Bellingham, WA 98225
o: 800-213-6050
c: 360-220-0429
email: sung@callhugh.com | |
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