Home Buyers Attracted to Lower Home Prices, Not Incentives

Home Buyers Attracted to Lower Home Prices, Not Incentives
The Realtor® Magazine published an article in March about real estate purchaser preference.
They claim that although incentives are attractive, lower home prices draw more interest.

Many Las Vegas real estate agents don’t oppose incentives and have found success with them.
However, one major factor that affects buyer interest is that fact that buyers who work with
Realtors® typically use the MLS home search. There is no search criteria for “incentives” or
similar terms. Potential buyers have to stumble upon incentives as they peruse and the odds
of being found are lower. However, most buyers do use price as a criteria and if a seller’s
house priced better than its competition it will draw more views. The important thing in a
tough selling market is to get as much attention as possible.

According to the article:
“The single thing that’ll drive buyers and salespeople to a property is that it must be
priced at today’s market value. If that happens, you’ll get buyers at the property, and
you’ll get practitioners there, too, because they believe buyers will buy.”

 


 

 

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Home Refinancing Attempts Increase

Home Refinancing Attempts Increase…

Recent interest rates cuts have motivated many to attempt to refinance their property.
However, many may be unable to do it successfully. Mortgage lenders are looking for
considerable qualifications. The house must have equity, the borrower must have good credit
and work history, and the house needs to appraise well in the real estate market they live
in.

Many have tried to lock in better rates and a better term for their home but are unable to
because of the previous loan they acquired. To find out if you qualify contact your lender
or your real estate agent who can refer you.

 

 


 

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Consider This When Investing

Consider This When Investing in Real Estate

 

The real estate market is improving in many parts of the country. So if you’re thinking about investing in real estate, now might be the time to get your feet wet.

Real estate investing can be quite profitable. Some investors make a comfortable living buying and flipping properties — putting tens of thousands of dollars in their pockets in only a few weeks. Meanwhile, other investors take a different approach and move into a home they’re fixing up with plans to sell for a profit in two or three years.

No matter the approach you take, investing in real estate generates cash that can go toward the purchase of your new residence, or you can use this money to build your savings account or prepare for retirement. It doesn’t take special skills to start investing in real estate, but there are several factors to consider before making your first purchase.

1. What are your plans for the property?

Determine your plans for the property before investing in real estate. Will you live in the home, fix up the property and sell a few years later? Will you get tenants and make the home a rental property? Then again, maybe you’re more interested in buying and flipping real estate for a quick profit.

There are different ways to proceed with investing your money, time and energy into a property. Weigh the pros and cons of different types of real estate investments and choose the one that best fits your situation.

2. Which mortgage option is right for you?

Real estate investors can choose from different types of mortgages depending on their plans for a property. For example, an adjustable-­rate mortgage might work if you’re buying and flipping real estate, or if you plan on living in an investment property short-­term.

Adjustable-­rate mortgages have an initial fixed­-rate period up to five years followed by annual rate adjustments. A rate adjustment means the mortgage interest rate increases or decreases based on the market.

Typically, adjustable-rate mortgages start out with a rate lower than most fixed­-rate mortgages. If you’re keeping an investment property for a short span of time, there’s the option of getting an adjustable-­rate mortgage and selling the property before your first rate adjustment.

On the other hand, if you’re keeping an investment property long-­term, consider a fixed-­rate mortgage so your interest rate and monthly payment will remain the same for the duration of the term.

3. How much cash do you need to fix up the place?

Investing in real estate can require sizable cash, especially since properties you purchase might need renovations or improvements. If you’re buying a foreclosure that will be your primary residence and a future investment property, you might qualify for the FHA 203(k) loan.

This loan provides funds to purchase the property, plus funds to improve the condition of the property. On the other hand, if you’re buying and flipping a property, the bank can help with investment property loans.

Make sure you schedule a home inspection before buying real estate so you’ll know what to expect cost-­wise with fixing up the property.

4. Is the property is an ideal location?

You can have a lovely property, but if it’s located in an undesirable part of town, it might take longer to find a buyer or tenant. Location matters in real estate. Some people only look for properties in good school districts, and others prefer buying or renting homes near an interstate or major highway for easier access to work.

When looking for properties to buy, pay attention to school ratings, nearby amenities, and consider whether the property’s in a safe, quiet neighborhood.

Real estate investing can be profitable, but you shouldn’t jump into investing without doing your homework. Buying and financing properties is easier when you know what to expect, and when you can build a relationship with a knowledgeable mortgage officer and realtor.

Source: Evan Potter – Total Mortgage


 

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Investment Properties In Todays Market

 

This Holiday season, think about decking the halls of a new investment property!  As the economy continues to improve, many people will feel more confident about their finances and prospects for the future.  Real Estate can be a good addition to your investment portfolios as you build wealth for the future.

Investors need to think about all aspects of real estate investment, including rental income, expenses, home price, appreciation and taxes.  At Red Rock Management we have written about the top markets for rental cash flow and trends in single family rental investment by the largest institutuions.


 

 

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Red Rock Management
www.RedRockManagementLV.com
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Mistakes to Avoid When Buying a Foreclosure

 

 

Foreclosure filings were reported on more than 1 million U.S. properties during the first half of 2012, which means there are plenty of opportunities for those who want to invest in the foreclosure market.

Be aware, though, that purchasing a foreclosure can be complicated; costly mistakes sit in wait for would-be buyers who have not done their homework.

Zillow polled some real estate agents to learn about the most common mistakes they see when it comes to buying foreclosure properties.  Here are their tips to help you avoid costly blunders:

1. Don’t limit yourselfIt’s OK to go into your property search with the intent to purchase a foreclosure, but don’t wear blinders and assume those are the only homes you should check out. Yes, there are some competitively priced foreclosures on the market, but the same can be said of traditional listings.

Foreclosures often come with baggage – liens against the property, repairs that need to be made, and so forth. A traditional seller might be more flexible about taking care of repairs or negotiating price. Additionally, if you limit your search to foreclosed properties, you may not end up in your desired neighborhood or with the style of home you’ve always dreamed of.

Don’t rule anything out. Keep an open mind so you end up with the best house for your money.

2. Don’t go it aloneFind a real estate agent versed in the complexities of the foreclosure market. Whether you’re looking at a pre-foreclosure, short sale or bank-owned properties, you’re going to need the guidance of a professional who has a background in buying and selling these types of properties in your local market.

Similarly, you must remember that real estate agents are not lawyers. Foreclosure laws and regulations are tricky, and they vary from state to state. Don’t rely on your real estate agent for legal advice; be prepared to consult with a local real estate attorney who understands how these purchases work.

3. Know your stuffKnow how much you can spend. Know the neighborhood where you want to buy. Know the process. Securing early financing is important because it will ensure that you are qualified to purchase the property. Being pre-approved will give you greater bargaining power when the time comes to make an offer.

Target a specific neighborhood or two to avoid becoming overwhelmed by listings. Ask your agent to notify you of listings within these neighborhoods that meet your other criteria, such as size and cost. Check comparable recent sales to get a good feel for the market.

Even though you’re working with a qualified agent and lender, you need to do some work upfront to become familiar with the basics of the foreclosure process.  Learning the lingo will give you credibility, which will help others realize you’re serious about this buying endeavor. Basic know-how may give you the added bargaining power you need to negotiate a better price.

4. Don’t skip the inspectionSure, the house looks good, but what’s going on inside the walls and under the floor boards?

A 2011 survey conducted by Harris Interactive found that 72 percent of U.S. homeowners agree the home inspection they had when they purchased their current residence helped them avoid potential problems; 64 percent of respondents reported that their home inspection saved them money.

The American Society of Home Inspectors website (www.ashi.org) includes a searchable database of certified inspectors.

Tag along while the inspector is looking at the property. Ask questions. Take notes. Most inspectors charge $300 to $500 for their services; it’s up to you to figure out how much it’s going to cost to rectify deficiencies.

5. Look beyond todayBecause a foreclosed home may decline further in value, it’s smart to approach the transaction with a long-term perspective. Sure, you may be hoping to flip the property and quickly resell, but what if you can’t? Are you prepared for the long haul? What will the property cost if you hold onto it for five or 10 years? Pencil out the numbers, or you may suffer long-term financial repercussions.

Source – Zillow Foreclosure center


 

 

Red Rock Management
www.RedRockManagementLV.com
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