Staging Your Home How to Sell Fast
Author: admin07 7th, 2010
It seems as though it does not matter where I am, people are saying the same thing. “How do I sell my houses?’ I was just in St. Louis last week and as I was giving a one day seminar, the biggest concern was the increasing days on market, currently up to 180!
Nearly every investor in the room was sitting on properties and you could almost feel the pain in the room.
Last week I had an investor from New England call about 2 investment properties in Florida and he was upside down by $40,000-$60,000 on both!
My heart bleeds for these people. Not just the investors, but everyone that bought too late and is trying or needing to sell too early. Real estate is not for the faint of heart and you should definitely make sure that you can lose before you begin.
I think so many people see others out there making large profits on real estate investing. What they don’t see are the times they experienced large losses. I have only lost twice, one time it was just a few thousand, which did not hurt too badly, but the second time, it was nearly $100,000 which I could definitely feel in my pocket book. That one is a long story but, you can be sure that I made multiple mistakes, trusted all the wrong people, and eventually, when I decided to get out, felt as though it was the best $100,000 I ever lost. Don’t get me started. The money did not hurt nearly as bad as the loss of the relationships involved.
My point that I am trying to make is that real estate is not a sure thing and many people are losing right now. You should not be buying above 70% LTV period. Real estate is going down, not up and it is not even staying flat. As a matter of fact, it went down 8.5% last quarter which averages out to be $19,600 per house! So, each day you hold on to your house, you are losing money. On average that amounts to $91.65 a day. If this does not frighten you, it should. Days can add up fast and if you are in the national average of DOM that means you will sit on your house for 163.7 days. That totals to just under $15,400 in holding costs alone! Are you willing to lose that much? Plus, while you are holding, your house is going down again.
The chances of you selling at full market value right now are very slim because no one can really define what that is. With a market that is dropping on a daily basis, you must make sure you are accounting for the right price in the beginning or you will hold in the end.
The sexiness of the big payoff with a fast sale is, at least for awhile, gone. Now, you have to really pay attention to your numbers. As I said, I would look at a maximum purchase price as an investor of 70% LTV and then I still want to make sure it can be made unforgettable so I can sell it fast.
So when you are out there now, getting ready to list, sell or even buy, make sure you run the numbers. You must buy low enough to hold for at least six months if needed. Make sure you account for the prices dropping on the property and that you are solid in having multiple exit strategies in case it just does not sell or rent.
One of the biggest mistakes made by most investors is the lack of multiple exit strategies. One of the biggest mistakes made by brokers and agents is over pricing in the beginning.
Both of these mistakes can be deadly in the final sale of the home for the investor, agent and seller.
One of the only few appreciating markets left is Seattle and of course small pockets in various other locations throughout the country. For the most part, the market has stopped or is declining.
So what is the solution? Buy right and learn to sell. All the best paperwork in the world does not help you if you can’t get someone to fall in love with the property.
Remember, according to nearly every financial expert, the markets will decline steadily for the next 2 years. So, if you decide to hold, get the best possible tenant buyer or renter by giving them a property they love…hopefully they will keep it that way. If you decide to sell, buy low and make each property unforgettable.
Nearly every investor in the room was sitting on properties and you could almost feel the pain in the room.
Last week I had an investor from New England call about 2 investment properties in Florida and he was upside down by $40,000-$60,000 on both!
My heart bleeds for these people. Not just the investors, but everyone that bought too late and is trying or needing to sell too early. Real estate is not for the faint of heart and you should definitely make sure that you can lose before you begin.
I think so many people see others out there making large profits on real estate investing. What they don’t see are the times they experienced large losses. I have only lost twice, one time it was just a few thousand, which did not hurt too badly, but the second time, it was nearly $100,000 which I could definitely feel in my pocket book. That one is a long story but, you can be sure that I made multiple mistakes, trusted all the wrong people, and eventually, when I decided to get out, felt as though it was the best $100,000 I ever lost. Don’t get me started. The money did not hurt nearly as bad as the loss of the relationships involved.
My point that I am trying to make is that real estate is not a sure thing and many people are losing right now. You should not be buying above 70% LTV period. Real estate is going down, not up and it is not even staying flat. As a matter of fact, it went down 8.5% last quarter which averages out to be $19,600 per house! So, each day you hold on to your house, you are losing money. On average that amounts to $91.65 a day. If this does not frighten you, it should. Days can add up fast and if you are in the national average of DOM that means you will sit on your house for 163.7 days. That totals to just under $15,400 in holding costs alone! Are you willing to lose that much? Plus, while you are holding, your house is going down again.
The chances of you selling at full market value right now are very slim because no one can really define what that is. With a market that is dropping on a daily basis, you must make sure you are accounting for the right price in the beginning or you will hold in the end.
The sexiness of the big payoff with a fast sale is, at least for awhile, gone. Now, you have to really pay attention to your numbers. As I said, I would look at a maximum purchase price as an investor of 70% LTV and then I still want to make sure it can be made unforgettable so I can sell it fast.
So when you are out there now, getting ready to list, sell or even buy, make sure you run the numbers. You must buy low enough to hold for at least six months if needed. Make sure you account for the prices dropping on the property and that you are solid in having multiple exit strategies in case it just does not sell or rent.
One of the biggest mistakes made by most investors is the lack of multiple exit strategies. One of the biggest mistakes made by brokers and agents is over pricing in the beginning.
Both of these mistakes can be deadly in the final sale of the home for the investor, agent and seller.
One of the only few appreciating markets left is Seattle and of course small pockets in various other locations throughout the country. For the most part, the market has stopped or is declining.
So what is the solution? Buy right and learn to sell. All the best paperwork in the world does not help you if you can’t get someone to fall in love with the property.
Remember, according to nearly every financial expert, the markets will decline steadily for the next 2 years. So, if you decide to hold, get the best possible tenant buyer or renter by giving them a property they love…hopefully they will keep it that way. If you decide to sell, buy low and make each property unforgettable.
read comments (0)Bank Foreclosures at Bargain Prices
Author: admin07 4th, 2010
The interest in buying foreclosure real estate, especially bank foreclosures, has always been high. People want to buy foreclosures, because this is one of the most profitable investments in real estate one can make. Foreclosure homes are real estate properties securing a loan that has not been paid for. Bank foreclosures are owned by the bank who has made the loan and who tries to sell the property in order to recover their money. Foreclosure investments are considered among the safest, because the prices of foreclosure real estate are usually below the market. Potential buyers of bank owned foreclosed properties deal directly with the lender when negotiating the price of the home they want to buy.
Banks that own foreclosure real estate properties sell them to recover the money they have lent to the original owners. Those interested in investing in bank foreclosures can find offers for foreclosure homes in lists of foreclosed properties made available for anyone who wants to buy foreclosures. Both real estate investors with a large portfolio and individual first-time buyers are interested in making foreclosure investments, because the properties categorized as foreclosure real estate come with lower prices than average on the real estate market. Getting significant discounts for bank foreclosures means the buyers are sure to make a profit if they sell the properties later on.
Foreclosure real estate is also on high demand with first-time buyers who look for the home of their dreams. Because they can only make a small investment in real estate, bank foreclosures are an ideal option for such buyers. Initial prices for foreclosure homes owned by the lender are usually negotiable, so those who want to buy foreclosures can close even better deals than they expect for the bank foreclosures they are interested in. When banks sell foreclosed properties, they finance a new mortgage for the new owner. With foreclosure investments, there are several contractual provisions that can be negotiated. Clever negotiation on foreclosure real estate can get the potential buyers lower interest rates or a low down payment.
Although the initial prices of certain bank foreclosures may seem higher than you expect, you should bear in mind that you can still save significantly by purchasing such properties. Prices for foreclosure homes are always below the market value of the respective properties, and this is why foreclosure investments cannot fail to bring you good profit. Moreover, the prices of foreclosed properties are negotiable, and lenders can prove fairly flexible when it comes to selling their foreclosure real estate. Being able to negotiate is essential for anyone who wants to buy foreclosures, as they can get better deals than they might expect for bank foreclosures.
By resorting to a listing service, both real estate investors and first-time individual buyers can locate attractive offers for bank foreclosures. Listings of foreclosure real estate include descriptive details about foreclosure homes, such as location, condition and number of bedrooms, and also information about prices and how to contact the banks who own the foreclosed properties. Staying up-to-date with the information included in listings of foreclosure real estate is essential for those who want to make profitable foreclosure investments. For those who want to buy foreclosures, the main advantage of accessing available lists of bank foreclosures is that they are extremely convenient and can help save a lot of time.
Bank foreclosures are definitely one of the best options for those who want to buy a home. The prices on the real estate market may scare potential buyers away, and this is why foreclosure real estate is a good investment. The prices for foreclosure homes are always below the market, and this makes them very attractive for both real estate investing companies and individual buyers. Foreclosed properties owned by banks are among the safest foreclosure investments. The whole process of locating and closing a deal for such foreclosure real estate is not complicated at all, as many people who have decided to buy foreclosures can testify.
Locating the best offers of bank foreclosures can result in closing a very good deal for any potential buyer. Foreclosure real estate is always available at bargain prices. Moreover, your ability to negotiate with owners of foreclosure homes can bring you even lower prices. This is why you should always be on the lookout for attractive foreclosed properties. Once you have decided to buy foreclosures, you should subscribe to a specialized listing service. Up-to-date lists of foreclosure real estate will certainly help you locate the best bank foreclosures and make very profitable foreclosure investments.
07 1st, 2010
In the current economic crunch, it is no surprise that home-sellers from all over the country are experiencing the same crisis in the real estate market. With the number of buyer’s market emerging left and right, sellers are faced with the problem of losing leverage during the transactions. What’s more is that plenty of markets are getting tight. The competition is surely rough and if you’re selling your own Miami real estate property don’t be surprised if you see your neighbors putting up their own for-sale signs.
Selling your Miami real estate property doesn’t have to be painfully difficult though. Even in an immensely competitive market, there are several ways that home-sellers can do to successfully get some offers. Cooperation is the key and here are some ways to do so.
1. Joint open house
If you’re not the only one selling Miami real estate property in your neighborhood, the best way for each property to get fair attention and lessen competition (and quite possible contention) between the sellers is to host a joint open house. Whenever one property is holding an open house, ask the owner if you and other sellers can contribute to the event and obtain the same amount of attention.
Showcasing plenty of Miami real estate properties at the same time can attract plenty of buyers. This also lessens the buyers’ natural wariness to neighborhood laden with for-sale signs. Deciding to take turns in putting up signs is a healthy way to invite buyers.
2. Sell the neighborhood as well
Another way to get buyers interested in your property is to sell your neighborhood along with your house. Ask other sellers in your area to include fine points of your neighborhood in the brochures that they hand out to the buyers. This way, all of you are increasing the buyers’ interest in living in your neighborhood. Plus if they see that sellers and homeowners are working together for a common goal, this will reflect greatly on you and your neighbors.
3. Always be ready
This is one of the most important parts of selling a property alongside other home-sellers. If buyers are coming in to check out properties in your area, it’s likely for them to check others as well. Because of this always ready your Miami real estate property for an impromptu visit from buyers. Provide easy entrance and make sure your home is always presentable for the unexpected visits from buyers. If your agent is not present, be ready to take the helm on the walkthrough.
Mark Michael Ferrer
Miami Real Estate