Commercial Property

Second home sales have been increasing over the last few years with more people becoming second home owners. In 2005 alone, 40 percent of the homes sold were second homes. Demographics, all time low mortgage rates, and healthy rise in home prices have contributed to this development in the second home market. Besides these, a major factor that has helped augment the buying and selling of second homes is the real estate professional.

The National Association of Realtors conducted research on the profile of second-home owners in 2006. According to the NAR report entitled ‘2006 Profile of Second-Home Owners’, a majority of second home sales transactions are conducted using the services of real estate agents.

The statistics are remarkable; 64 % of vacation home buyers purchased their home using the services of a real estate agent by the end of 2005 – a marked increase from less than 50 % of vacation-home buyers in 2003. Also, 65 % of investment-home buyers purchased their home with the help of a real estate agent – an increase from 53 % of pre-2003. In comparison, only 14 % of vacation-home buyers and 7 % of investment-home buyers purchased directly from builders from 2003 to 2005.

The growing role of the real estate professional is evident from the following figures:

1. Of vacation home sales made, 71 % of them were second homes and 74 % of the sales were made using the services of a real estate agent.

2. Of the investment properties sold, 85 % of them were previously owned and 62 % of the sales were made using the services of a real estate agent.

The use of real estate agents in second home sales transactions varied according to the home’ location.

1. Buyers used a real estate agent more frequently while purchasing a vacation home located in a suburb/subdivision (56 %) or a rural area (57 %) than for homes in other locations.

2. About 66 % of buyers who purchased an investment property in an urban/central city area or in a suburb/subdivision, used the services of a real estate agent more frequently than those who purchased a home in other locations.

Real estate professionals continue to be the first source of information to second-home buyers (38 % of vacation-home buyers and 34 % of investment-home buyers). The real estate professional also plays a major role when second-home owners plan to buy additional properties. If you are thinking of buying a second home or vacation home, seek out the services of a real estate agent to guide you through your next home purchase.

1. The percentage of second home owners who are more likely to use a real estate agent in their next home purchase is quite high. Among vacation-home owners it is 79 % and investment-home owners 73 %.

2. Among second home owners, 65 % of vacation-home owners and 64% of investment-property owners are more likely to use a real estate agent in their next home sales.

Given these statistics, it is no wonder that the real estate agent plays a pivotal role in helping people buy and sell second homes. So whether you are a second-home buyer or seller, enlist the services of an agent for a smooth, hassle free real estate transaction.

Many first time home buyers struggle with the decision between purchasing a new or pre-owned home.  A common factor in the decision process is the price of the home.  The fact is, many new homes in Northern California can be purchased for almost the same price as pre-owned homes in the area.

There are many advantages to buying new homes in Northern California or even building one yourself.  The feeling of buying a home that has never been lived in is amazing.  And by building your own home, it’s even a greater reward knowing that it was built to your exact specifications.

By choosing to build your own home, the first step is to find a builder whose work you appreciate and can work well with.  It’s essentially an interview process to find the best match for you and your needs.

Do lots of research and view the model homes of builders that you are interested in.  If no model homes are available to view, you can contact the homeowner’s of houses they have built and speak with them directly.  The owner’s of these homes will usually be glad to speak with you about the experience they had with that particular builder and give you advice as you move forward with the construction process.

By choosing to build the home yourself you have control over what every detail of the home will look like.  You will choose everything from the floor plan to the lighting fixtures.  Deciding to go this route is for the new home buyer that is thinking of their home as a long term residence and wants everything done to their liking.

New homes in Northern California that are custom built have the added advantage of being a “green” home.  Of course this is a personal choice that may or may not be utilized, but using eco-friendly methods will not only utilize environmentally friendly materials, but can also have the long term effect of saving on such things as utility costs, forever.

Another benefit of building your own home is that most new homes will come with a warranty from the builder.  The terms vary, but it’s great peace of mind knowing if anything goes structurally wrong with your home it will be covered by the builder.  Also, having that relationship with the builder will allow you to speak with them directly if you ever decide to do any sort of remodel or just have any general questions about your home.  All the answers are just a phone call away.

All of this and the sense of community are what comes with purchasing new homes in Northern California.  When all is said and done, it’s a great sense of accomplishment and satisfaction knowing you put together the home of your dreams and it is a place you and your family can be comfortable in for the rest of your lives.

Now is the time to take advantage of low interest rates, prices and the federal tax benefits that are available to new home buyers.  Build the custom home that you’ve always wanted, today.

How many times have you gone for a drive and caught nothing but green lights from one end of town to the other? Unless you live in a very small town, the chances of that happening are miniscule, and in most cases you’re doing well if you can get through half of them without stopping or at least slowing down. Real estate investing is the same way.

The chances of an investment deal going exactly as you map it out are next to impossible because there are so many variables involved over which you have absolutely no control. Sellers can sometimes throw a monkey wrench in the best laid plans, and you’ll have to use your creativity and ingenuity to think on your feet and come up with an alternative that is acceptable to the seller and still profitable for you.

In addition, a typical real estate deal has so many steps, stages, and other opportunities for stumbles or miscommunications that you almost have to be a magician, a juggler, or a comedian in order to make them work. Whether it’s finding out at the last minute that a property has liens against it that you didn’t know about when you made your offer, learning that the property didn’t appraise for the figure you thought it would, or finding out an hour before closing that your lender made a mistake on some aspect of your Good-Faith Estimate, most real estate deals will require you to have the ability to not only think on your feet, but to dance to the beat of an unfamiliar drum.

So what do you do when you’re driving and the light turns red in front of you? Unless you’re in the mood to take your chances at being seen by a police officer or one of those candid cameras that are hidden in so many intersection stop lights, you apply your brakes like a good law abiding citizen and wait for a green light. If you’re impatient by nature, you might quickly glance both ways and make a fast right hand turn and go another way. Again, that’s the sort of decision you’ll have to make in order to be a real estate investing success.

Today’s investing environment has challenges that didn’t exist as recently as a year or two ago, and these challenges make it somewhat more difficult to put together profitable deals that will please you and be acceptable to the seller. One of the best ways of being ready for the unexpected is to have a thorough knowledge of multiple investing techniques. In addition, many of the strategies that real estate investors employ can be modified or altered in a way that could make a borderline deal a home run. So don’t be afraid to think outside the box and make a quick right turn if you don’t feel like waiting for a red light to turn green.

If your investing playbook is a little thinner than you would like, you should consider turning to a reliable, knowledgeable source for practical advice, information, education, and tips that you can’t get anywhere else. REI Conferences has a proven track record of teaching rookies and experienced investors alike cutting-edge techniques that could make the difference between being a wannabe investor and a runaway success.

Instead of having the expectation that every light you come to will be green when you get to it, be prepared to make adjustments on the fly and be open to changing your thinking and strategies at any stage of the property acquisition process in order to maximize your profitability and gain as much value as possible out of each and every deal you work.

By being prepared for any and all situations, you can make adjustments as necessary, and find a better way of reaching your destination even when every light isn’t green.  This will make it all that much sweeter when you drive up on that one in 1 million deal that doesn’t have any slowdowns or stoppages along the way.

And if you happen to see me sitting at a red light don’t forget to wave.