| Help Buying Or Selling Your Home In The New Market (real estate)
|
| ACS provides free articles on credit counseling, debt consolidation loans and refinance mortgage. |
Help Buying Or Selling Your Home In The New Market
[ Bookmark this page! ] [ get HTML Version ]
Real Estate Financing
The majority of buyers use a loan to purchase a property, then they base their offer to purchase contingent upon obtaining a loan commitment from a lender. Until the financing is secure, the sale of a property is still pending. Your choice of lenders is endless, but don't allow the variety to intimidate you.
Your purchase agreement should specify all financing contingencies such as the ... Read real estate article
Fixer-Uppers - How to Create Instant Gains In A Flat Real Estate Market
Is it still possible to make a profit now that the boom has cooled off?
Yes, it is possible to still make money in real estate, even when the market is flat. You just have to know what you are doing. Basically, the idea is to create your own extra value on the property, rather than waiting for the 'market value' to push the price up. How do you do this in reality?
The short a... Read real estate article
Help Buying Or Selling Your Home In The New Market
Since the latter part of 2005, it seems like Real Estate signs are popping up in yards like weeds. As of July 31, 2006 there were 15,743 listings on the market for Pinellas County (9,549 Single Family Homes and 6,194 Condos). With this many homes on the market, it begs the question - Why Do You Need Help Buying Or Selling Your Home In The New Market?
As anyone who has been in the market for a home recently knows, there are A LOT of homes to choose from. If a buyer is not specific with their criteria the number of possibilities can be overwhelming. By sitting down with an agent, the homebuyer can discover what is truly important to them and only look at homes that meet their exact requirements, including location, price or features.
Once a property has been selected, the buyer's agent can also help negotiate the best possible price for that home and also make sure that the buyers financing needs are all met. Most agents have a good working relationship with a lender who can facilitate a smooth financial transaction for the buyer. In addition, more buyers are able to take advantage of seller assisted closing costs and other creative financing options which their agent will help them to negotiate during the offer.
Having an agent on their side in this market is also vital for home sellers. With all of the local competition it is not enough to just put a house in the MLS system and hope it sells. Agents are now utilizing every avenue available to market their listings including direct mail, the internet, homes magazines and on-site events like Broker's Open Houses and Public Open Houses. Additional ideas like increasing the buyer's agent commission, offering bonuses and assisting with buyer's closing costs are also methods that can generate buyer interest.
The current absorption rate (the percentage of the homes on the market that sold in any given month) is a good indicator of the challenges faced when working to getting a home sold. The rate has dropped from 51.5% in July of 2005 to 8.6% in July of 2006 for Single Family Homes and from 43.6% in July of 2005 to 4.8% in July of 2006 (meaning that less than 10% of the Single Family homes and less than 5% of the Condos on the market sold last month). Having a dedicated RealtorŪ working full time to get your home in front of any available buyers is imperative!
Once an offer is received, the challenge is to negotiate an offer that is win-win for BOTH the seller and the buyer. Because of the tight market, buyers are more savvy when negotiating a deal and so having an agent on your side can ensure that you get the highest price possible for your home.
Bookmark this page | Search this site | E-mail to a Friend
Finance Real Estate Properties
If you had enough money to pay off your mortgage right now, would you?
Many people would. In fact the American Dream is to own a home - and to own it outright, with no mortgage. Imagine owning your home without having to send a cheque to the bank every month, the feeling one will enjoy when - after thirty long years - the moment finally comes to make one last payment so that the house is paid off, at last. Being so fortunate must evoke a sense of security, gratification and well-being that anyone only can dream of.
But if in fact the American Dream is so wonderful, how come thousand of financially successful people - folks who have more than enough money to pay off their mortgages right now - refuse to do so? Why is it that a small group of Americans and Canadians, who are invariably among the wealthiest five percent of the population, insist on carrying on a mortgage even if they can afford to wipe it out entirely today? Because they are aware of the biggest untold secret of homeownership: a mortgage is primarily a loan against the borrower's income, not primarily against the value of the house. It this was not the case, then naturally anyone with a $30,000 annual income would qualify to purchase a multi-million dollar mansion.
All of which, then, makes the whole difference in the world when it comes to a process known in Economics as the accumulation of wealth. Prosperity in any society and at any given time is the epitome of financial stability, reliability, and security. Specifically in Capitalism, additional capital value (commonly referred to as ''surplus value') is what drives the accumulation of wealth. Although capital accumulation does not necessarily require production, ultimately the basis for it is value-adding production which makes net additions to the stock of wealth. Capital can accumulate by shifting the ownership of assets from one place to another, but ultimately the total stock of assets must increase. Other things being equal, if surplus value fails to grow sufficiently, the level of debt will increase, ultimately causing a breakdown of the wealth accumulation process.
This is exactly the reason why saving money has never made anyone rich. For some obscure logic people generally tend to equate the concept of saving money with that of making money, yet the two are not synonymous. As people want to save money in interest payments, they will go the extra length to pay off their mortgages. With that issue out of the way after a considerable number of years, they then start focusing on saving for retirement and do their best to save regularly. As a result, they fail to accumulate wealth and cannot figure out why.
The issue is relatively simple, though not necessarily transparent. By prioritizing mortgage repayments, they fail to consider the role that mortgages play in their wealth building process. The battle to reduce interest expenses is won, but the wealth accumulation war is lost. The reason is that every dollar they have returned to the bank is a dollar they have not invested.
Mortgages today cost anywhere between 5.5 percent to 6 percent annually. Over the next thirty years, on an annual basis, will alternative investments earn at least that much? Of course they will. Even government bonds pay nearly that amount, and stocks have been averaging 10 percent a year since 1926. Thus giving money back to the banks to save 6 percent denies people the opportunity to invest that money where it might earn 10 percent. Which means that, rather than actually saving money, those who opt to pay off mortgages factually lose money. And which, furthermore, goes to explain why bi-weekly mortgage payment plans are not a great idea - because they speed up the process of mortgage repayments.
Specifically as it relates to real estate, furthermore, the irony is that people somehow feel they are making a ''good investment' by paying off their home loans. In fact, all they are doing is burying money under a mattress - they are not investing at all. Consumers, and a great deal of them, strive to pay off their mortgages as quickly as possible so they will be able to borrow later on against their equity to pay, among other things, for their kids' tuition bills. But isn't that refinancing? Talk about bizarre strategy! Consumers struggle to give banks their money back now, so they can borrow it again in the future. Why don't they just invest their cash, so that it earns competitive returns and, at the same time, remains available whenever needed?
Their homes will grow in value over the next thirty years whether they have a mortgage or not. When it comes to selling a home, does any Buyer care about what the Seller's mortgage outstanding balance is? Of course not. And neither does the IRS (Internal Revenue Service) or the CCRA (Canada Customs and Revenue Agency) when it comes to calculating taxable capital gains, losses or recaptures.
The simple truth is that mortgages do not affect home values. But being primarily financial instruments anchored to income, they do affect the wealth maximizing process of investors and market participants by opening up a host of possibilities to invest liquid money derived by consumers' own income elsewhere, for higher rates of return. Which is what the wealth accumulation process is all about.
Luigi Frascati is a Real Estate Agent based in Vancouver, British Columbia. He holds a Bachelor Degree in Economics and maintains a weblog entitled the Real Estate Chronicle where you can find the full collection of his articles on Real Estate Economics and Finance. Luigi is associated with the Sutton Group, the largest real estate organization in Canada, and is based with Sutton-Centre Realty in Burnaby, BC.
Top rated articles for real estate
1. Real Estate Investing - Do Adequate Research
These days, a whole lot of people in America are investing money in real estate. Unless all these people have very poor judgment, there must be a good reason for it. Perhaps it's because real estate c... Read real estate article
2. Bidding At Public Foreclosure Auctions
If you are wanting to own your own home or dreaming of investing in commercial real estate but are unable to do so because all the properties that you have been seen advertised are way beyond your bud... Read real estate article
3. Should I Hold Real Estate or Sell
This is something that depends on your own circumstances. Remember that we are not now in the sort of market where you will naturally see a price rise after holding for a while. This is a flat market ... Read real estate article
4. Ask The Home Seller For Help With Your Financing
Finding enough cash to make a solid down payment on the home of your dreams is often a difficult task. With home prices at all time highs, coming up with 10 or 20 percent equates to a large amount of ... Read real estate article
5. Build Your Dream Home
Not everyone can buy the dream home they want, maybe if you win the lottery. So how do you realize that dream?
Well one way is to build your own, and to do that you are more than likely goi... Read real estate article
6. Commercial Real Estate
Eastern Connecticut leads the State in job growth and likely will continue for the next tens years. Economic growth in Eastern Connecticut is booming with major projects underway or proposed. Half way... Read real estate article
7. New Real Estate Purchase Secrets
As the real estate market swings away from sellers, buyers are in position to makes financially advantageous purchases. This is no more so the case than with builders.
For the last five yea... Read real estate article
8. Real Estate - Getting Results
Everywhere you go, you hear the same sad things: "The rich are getting richer while the poor are getting poorer." "There just isn't enough to go around." "It takes money to make money." This can lead ... Read real estate article
9. Real Estate - Untold Secrets to Making Money
The term real estate can be attached to any home, dwelling, land, or other property. The area of real estate has many faces including those who sell it, those who buy it, lenders, agents, and investor... Read real estate article
10. Factors That etermine the Appraisal of Your Home
So, after careful consideration of the time, expense, and energy involved in selling your own home, you have decided to go the For Sale By Owner route. You have taken care of all necessary inspections... Read real estate article
Credit Counseling and Debt consolidation services in Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi,
Help Buying Or Selling Your Home In The New Market
Debt consolidation services in Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania,
Debt consolidation services in Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin and Wyoming.
Add website or submit URL link of your site to 1000 free directory