Archive for the ‘Home Selling’ Category

• Mar 26

  Foreclosures on the Fast Track: Are You Next?

  It isn’t just the banks speeding up foreclosures in the last couple of months, now the government wants your home foreclosed on and fast!

  The general counsel for FHFA (Federal Financing Housing Agency) testified last week, complaining that individual states and cities where getting in the way of Fannie Mae and Freddie Mac foreclosures by extending mediation services and putting other policies in effect which slow down foreclosures according to Realtor Mag.

  The number of new foreclosure filings has been skyrocketing over the last couple months. Perhaps more importantly so has the number of actually possessions. In fact, in Florida saw a 90% increase in possessions by mortgage lenders in February alone!

  This gets even worse for you out there if your mortgage is less than $250,000. According to a report in the Wall Street Journal those with loans under this amount are evicted 6 months faster than their ‘wealthier’ counterparts.

  Perhaps you aren’t motivated enough to sell your home fast for cash yet but that doesn’t mean you can sit by and do nothing. If you aren’t interested in being proactive to save your home or completing a short sale so that you can perhaps walk away debt free and with a few thousand dollars in your hand that is entirely up to you. However, it is clear that if you are behind on your home loan the day will come that you have to move out and it may not be far away.

  That’s OK because you have been stashing the money into savings every month instead of mailing it into the bank for your mortgage payment right?

  The problem is that there are now millions more people in your same situation which are going through foreclosure and now need to rent too. This is perfect for landlords who can take their sweet time to select from the best tenants who are willing to pay the highest price. Unfortunately this also means rental agents are so busy it could take you over a month to get into a rental. This is not an attractive time to be stuck in a hotel in many parts of the country, that’s if you can even find a room in many coastal cities. Oh, then there is the fact that rental rates have already been rising and in places like San Diego they are expected to soar by over 30% in the next 3 years according to a CNN Money report.

  Tags: foreclosuure
  Posted in Home Selling | No Comments »

• Mar 22

  Fighting Back Against Low Appraisal Reviews

  Appraisals have long been the source of much frustration for home buyers, sellers and real estate investors, a situation which has only gotten worse since the housing market meltdown. The question is if there is anything you can do if a mortgage lender performs an appraisal review and comes back with a lower value, is there anything you can do to fight back?

  Of course the more homework buyers, sellers and investors do upfront the less likely there is to be any issues with appraisal reviews later. Though of course this is never any guarantee you won’t find yourself at odds with the bank’s underwriting department.

  Home value estimator tools like Zillow’s are exactly that ‘estimators’ which can often easily be 25-50% off. Using a seller’s appraisal is no good either and often a big waste of money for home sellers. A buyer will have to get a new appraisal completed anyway and the truth is that while almost any number can be put on an appraisal it doesn’t mean it will pass review.

  If possible appraisals should be ordered through an appraisal service which also frequently provides appraisal reviews for major banks and lenders. They’ll know exactly what could be an issue with your lender before it even comes up. Plus they’ll have a lot more weight to help you fight back if there are disagreements about a home’s value.

  Should a lender come back with appraisal review issues all is not lost. Well, in some cases it could be a case of the lender finding an excuse to deny the loan in which case you’ll need to shop for a loan elsewhere. However, if the value is justifiable your options include having the original appraiser provide a rebuttal and additional comparables to support their findings or ordering a second appraisal from a new appraiser. A low appraisal review may be an opportunity to ask for a price cut but it also doesn’t mean you should just give up on your transaction without a fight.

  Tags: home appraisal, Home Buying, home selling, property value
  Posted in Home Buying, Home Selling | No Comments »

• Mar 16

  The Pros and Cons of Rehabbing Properties

  Rehabbing properties has become an even hotter trend over the last few years, especially thanks to reality TV shows like ‘Flip This House’ but is it for you? What are the real pros and cons of rehabbing properties compared to other forms of real estate investment?

  The Pros of Rehabbing Properties

  1. It’s Fun & Therapeutic

  Even when it isn’t fun, it is at least exciting and until you have put in a little elbow grease yourself you won’t realize just how great it can feel to create and renovate. Plus it means getting to decorate dozens of homes in different styles for those who just can’t choose one thing when they go to Home Depot.

  2. Bigger Profits

  Rehabbing properties often offers much bigger profits than fast and furious wholesaling and definitely bigger chunks of change than rentals.

  3. Rebuilding Neighborhoods

  Some of you may only be considering rehabbing properties for the money but being able to make a real difference and help improve other’s lives feels a lot better than a $100 bill.

  4. Can Be Done in any Market

  This type of real estate investing works in any market, up or down. Rehabbing properties means being able to add value, not just buy and hope the market goes up one day.

  The Cons of Rehabbing Properties

  1. More Risk

  There are many ways to minimize risk but rehabbing properties is definitely more risky than some other options if for no other reason than you often don’t know what you are going to find wrong until you get dug in.

  2. Money

  Rehabbing properties costs money. Get to know what types of rehab loans are available and if you qualify or make sure you have a big reserve fund because things always cost more than you planned.

  3. More Time

  Rehabbing obviously takes a little longer than just flipping properties on a wholesale basis or assigning contracts. That’s why you get paid more for it, just make sure that you have enough cash to hold you over.

  Tags: pros cons, real estate investing, rehabbing properties
  Posted in Home Buying, Home Selling | No Comments »

• Mar 15

  4 Pitfalls Facing New Real Estate Investors

  There may never have been a better time to invest in real estate in most of our lifetimes than right now but that doesn’t mean it is without its pitfalls.

  What obstacles face new real estate investors today?

  1. Real Estate Education

  While real estate investing and flipping houses is often portrayed as incredibly easy to do, getting into it and actually great making money can be two completely different things. While the basics aren’t so sexy they are essential like learning the various cycles, terms, laws and paperwork if real estate investors want to avoid going broke. This is a necessary investment which will pay off many times.

  2. Strategy and Planning

  There may be a lot to learn about the technicalities of doing individual deals but real estate investors need to also recognize the need to have a longer term strategy and a real roadmap or plan if they expect to achieve financial freedom through real estate.

  3. Up-to-Date Marketing Knowledge

  What most new real estate investors don’t know is that much of their success is going to come down to marketing. While they should certainly be real estate professionals first those who mastering marketing the best will come out far ahead. Hire someone to do it for you if you can afford it or when you can but make sure that you are promoting your properties and personal brand on the web.

  4. Distractions

  Real estate is a huge field with many niches and components. This can often become a black-hole sucking up time and resources. Put your blinders on and cut through the junk in the news, being pulled into too many marketing ideas and different types of investing, at least until you have a good system and rhythm down.

  Tags: new investors, real estate investing
  Posted in Home Buying, Home Selling | No Comments »

• Mar 14

  Selling a Home for Cash? Read This First!

  Need to sell your home quickly but not sure about signing a deal with that shady guy in the beat up 1980 pickup truck with the magnetic ‘We buy houses cash’ sign on the back?

  He might be loaded and just be on the way back from remodeling another home or he may really not have a penny to his name and just be hoping to lock you into a contract which he can sell for a profit to someone else like CT Homes who really does have the cash. Nothing wrong with this but you should never sign over a deed to your home until you see the green. You shouldn’t even enter a contract with someone these days for selling a home for cash unless you know who you are dealing with and that they are qualified to buy your home.

  If you are in a hurry the last thing you can afford is wasting months with a buyer who is scrambling to find financing and doesn’t have more in their pocket than a dollar menu burger.

  If you are in foreclosure or at least falling behind on mortgage payments or it is going to cost you more money to fix up your home or travel back to try and sell one you have already vacated then selling a home for quick cash may certainly be the smartest option if not your only one.

  Of course, if you only have days to close, your home needs some fixing up and you aren’t inundated with other qualified offers selling a home for cash can mean needing to accept a discount. It is risky for buyers and investors to take on homes without the proper time for due diligence and they are going to have to put more money into it to upgrade it and market it for rent. You probably aren’t going to get what your neighbor down the street is ‘asking’ nor the brand new development a few blocks away but they probably aren’t going to get that figure either. There is a big difference between ‘asking price’ and ‘selling price’.

  However, you may be quite pleasantly surprised at what you do get offered and you’ll never know unless you ask…

  Tags: home selling, selling a home, selling for cash, selling your home
  Posted in Home Selling | No Comments »

• Mar 12

  How to Find Accurate Property Values

  Trying to make sense of property values today can be incredibly confusing. You know what you paid for your home or what homes like you rent used to cost a few years ago, the news talks about 10% or $20,000 drops in value across the country but you have heard of foreclosures selling for a fraction of what they were once worth. So how do you figure out how much your home is worth or figure out accurate property values for homes you are interested in buying?

  Of course Zillow and similar online home value tools are often the first step in most people’s hunt for property values. While these neat little tools can be fun to play with they are also unfortunately notoriously inaccurate. They are often based on unreliable or out dated information which creates for endless frustration between buyers and sellers. How much they are off varies widely between different parts of the country but 30-50% is not uncommon!

  Getting a referral to a Realtor who has a deeper knowledge of the local market and individual sales can be better. However, you must take into account most real estate agent’s lack of real knowledge about how official appraisals are calculated and factor in their motivations. They may just tell you what you want to hear.

  Of course the most accurate way to determine property values is to turn to a state licensed real estate appraiser. However, the one draw back here is price. For sellers it means paying several hundred dollars for some paper and a figure that will have no further use. Any potential buyers will need to obtain and pay for their own appraisal. For buyers it is clearly far too expensive to have a full blown appraisal done on every property you may be interested in.

  For real estate investors who need to screen many homes, quickly often the best option is an AVM which is an automated property value based upon comparable homes without a physical inspection. These are normally very inexpensive and pretty accurate and can offer the best of all worlds.

  Tags: buying a home, home value, property value, selling your home
  Posted in Home Buying, Home Selling | No Comments »

• Mar 9

  Tips for a Successful Open House in Connecticut

  Trying to sell your home or flip an investment property and haven’t had any luck with an open house in Connecticut yet?

  There could be many reasons your property hasn’t sold yet but don’t give up. Open houses in Connecticut have proven to be very successful for others, so why not you too?

  Just sticking an open house or for sale by owner sign in your yard and sitting around all weekend hoping someone will just show up probably isn’t the answer though.

  Take a few minutes to actually think about it. After all there are at least tens of thousands if not hundreds or millions on the line. Who are the most likely buyers for your property? What to they do for money, what do they do for fun, when do they look for homes, where do they look for homes, what is the best way to let them know about your open house in Connecticut?

  Packing out your open house in Connecticut and actually generating a desire to buy it is probably going to take some creativity. Why should they come to your open house? Once they are there how are you going to instill the emotion and eagerness it will require for them to take action.

  Try turning your open house into a full event that will get Connecticut home buyers excited about showing up and making an offer on your home. This could be in the form of an auction event, an upscale cocktail party, catered charity dinner or a BBQ and pool party.

  Besides just advertising your Connecticut open house make sure to actually extend invitations to those who may know others interested in buying a home in your neighborhood. This can include neighbors and their relatives, your extended family, friends on Facebook and local real estate agents.

  Whatever you do, make sure you have a solid way of capturing and recording all attendees’ contact information.

  If you still aren’t having any luck after all this or your simply don’t have the money to invest in a great open house event considering selling for cash to CT homes.

  Tags: open house, selling your home
  Posted in Home Selling | No Comments »

• Mar 7

  Is This the Best Time for Real Estate Investing?

  Debates rage every week about whether it is a good time to buy a home or not but perhaps this was best settled last week by billionaire Warren Buffett who said the outlook was bright and he would buy a “couple hundred thousand single-family homes”.

  As usual most of the herd got into real estate investing at the top of the market when homes were over priced and mortgage rates were sky high. Anyone who would of listened to their grandparents who have been through these cycles before and was interested in buy and hold real estate investing would have perhaps waited until rates and prices dropped.

  Of course for those with the right system there is never a bad time for flipping houses. For those interested in real estate investing through rental properties the current discounts on housing prices and record low rates clearly make for the opportunity of a lifetime to lock into great wealth building assets and fat cash flow spreads.

  You could wait to start real estate investing. You may see conditions this good again in another 40 years as the cycles turn but why would you want to stay broke, working too hard for 4 more decades? Plus, miss out on the millions in wealth you could have built up in the meantime?

  There will always be ways for investors who invest in their real estate education and who are creative to make money, regardless of what the market is doing. Though why anyone would want to miss out on some of the most profitable and easy times for real estate investing is a mystery. There will always be excuses, you probably have half a dozen yourself but they are just that.

  You don’t have to try to launch a multi-million dollar real estate empire tomorrow. Maybe just buying your first property as a duplex which you can rent out half of is right for you. Just do it.

  Tags: Flipping houses, real estate, real estate investing
  Posted in Home Buying, Home Selling | No Comments »

• Mar 1

  Do You Need a Real Estate Agent to Buy or Sell a Home?

  Do you really need a real estate agent to buy or sell a home? Is it too risky not to use one or too expensive to use one?

  Real estate agents used to be used in virtually all transactions, then for sale buy owner services started cropping up, promising to save homeowners money but which often ended up being more expensive, then the boom and bust came along, followed by incredible advances in technology. Now even some real estate agents are calling themselves dinosaurs and are realizing their days are numbered.

  So what’s right for you?

  The Pros of Using a Real Estate Agent

  Real estate agents remain a great source of knowledge and free information. They can be a nice buffer in negotiations and certainly make buyers and sellers feel better about their decisions. Though perhaps most importantly they offer access to the MLS. However, today buyers can search for properties online for free and sellers can list their homes in the MLS for a few hundred dollars. Know that you don’t have to use a real estate agent, besides many simply can’t afford to use one today.

  The Cons of Using a Real Estate Agent

  Being overpaid is perhaps the biggest complaint about real estate agents today. Paying, 5, 6 or 10% to use an agent today certainly seems like way too much. If you can find one who will work on a seriously discounted rate that may be worth considering, depending on how much time you have.

  Unfortunately many real estate agents are very inexperienced or for those who have been in the business for decades, seriously out of touch. This is often especially true of those old, semi-retired Realtors who you know through a friend of the family. While it is great to be loyal and you may feel you can trust these people more, when it goes wrong are you going to sue them? You may have to.

  There are some great, honest and caring real estate agents out there. Sadly there are many who are simply chasing the highest possible commissions and who don’t put their clients interests firsts.

  Remember, you can always have an attorney or the attorney from the title company you are using look over your contract and help keep the deal together if things get difficult for a lot less than 6%.

  If you are not under any time pressure, money isn’t a big issue and you don’t want to do anything yourself then a real estate agent can be a great help.

  However, if time and money are tight and you do want to be involved and make sure you are getting the best deal you may want to look at your other options.

  Tags: buying a home, real estate agent, selling a home
  Posted in Home Buying, Home Selling | No Comments »

• Feb 29

  5 Ways to Stop Foreclosure Now

  Need to stop foreclosure on your home fast? Check out your 5 options now…

  1. Loan Modification
  If keeping your home is really what you want to do even if you are deep underwater and far behind on your mortgage payments apply for a loan modification. Be careful about who you choose to do business with and don’t fall prey to programs which try to get you to borrow more on already upside down home equity. Plus, you must recognize that no matter what your lender says, applying for a loan modification does not stop foreclosure. Many borrowers have lost their homes while waiting for an answer.

  2. Bankruptcy
  Attorneys have been cashing in big by recommending borrowers fie for bankruptcy to stop forecosure. Note that this doesn’t mean you will be able to keep your home and can have disastrous long term consequences, plus it costs money. It may be right for some but it can be far more devastating than most understand. Make sure you weigh all of your options first.

  3. Deed in Lieu of Foreclosure
  This basically means just handing over the keys to your lender and giving up. Things may seem hopeless but there are likely more attractive options on the table.

  4. Short Sales
  For those underwater on their home loans short sales can be a great way to stop foreclosure and get a fresh start. A real estate professional or investor can help you negotiate the best terms with your lender and you could even receive a healthy check for relocating to the tune of several thousand dollars.

  5. Quick Sale for Cash
  If you are running out of time to stop foreclosure on your home and are ready for a fresh start, free of debt and stress there are home buyers and investors out there with cash who can close on your home quickly. You should at least find out what they are willing to offer you before heading down any of the paths outlined above.

  One thing is for sure – foreclosures are speeding up and you may have a lot less time than you think. Having the sheriff show up to evict you and your family is far from a pleasant experience. Know your options and take action today.

  Tags: short sale, stop foreclosure
  Posted in Financing, Home Selling | No Comments »