Real Estate Sales

Does Inflation Affects Real Estate Prices?

For those studying the current decrease in real estate market prices these days, inflation is most commonly observed in relation to these very decreases. Inflation consistently affects the price of real estate across the United States. To first understand what inflation is, proves important in grasping why it can have so much affect on the cost of housing.

So, what exactly is inflation? Generally speaking, inflation is the increase in services and goods, that makes your United States dollar worth less. This can affect the purchase of groceries, travel, vehicles, and especially the housing market.

There are many theories on inflation that have been studied over many years. Authors and business persons write books on the topic every day, whiles others read the books and try to create their very own theories on the subject. At this point in time, there are two types of inflation changes that can drastically affect the status of the economy – therefore, real estate. The first, and most significant in relation to housing, is cost-push inflation.

Cost-push inflation is when price of goods and services go up to the consumer, as the costs to own and operate the companies that create these goods and services, begins to increase. In a sense, the companies ‘push’ their increase in operating costs onto the consumers of their goods and services.

In relation to the housing market, companies that may build homes, give or broker loans, sell construction materials, etc. must also then push their costs onto the consumer. This making the real estate market prices rise for those looking to buy. In which case, market researchers would deem this point in time a ‘sellers-market’ in real estate.

So, how does inflation relate to the decrease in housing costs? When inflation hits its peak, or as market researchers define it, when the cost of living becomes too high for the consumer to handle, the cost of housing decreases. We as the United State are currently in this market, which we know as, a ‘buyer’s market’. As the cost of goods have hit an irregular high, the cost of real estate across the globe has become outrageously affordable for all.

Real estate investors wait for moments in time, like now, to invest in rental properties, home upgrades, and other investments they can hold onto until the market turns. For the average family, the cost of buying a new house, or constructing a new house is also at an all-time low.

So, whether you have been waiting for the right time to invest, inflation has temporarily made this cost-effective pricing window available. Inflation will make a change again, soon enough, so why not take advantage of the low prices the real estate market currently has to offer? Invest in your dream home today.

Article Source: Ezine Articles Michael Liebrum

Donna Sanford

Phone: 888 381 8654
Email: donna@yoursolution4re.com

Real Estate Investor | Short Sale Professional
Real Estate Transaction Negotiator | Real Estate Investing Services

Your Solution 4 Real Estate, Inc.
Bauer Hill & Associates, LLC
Area Short Sale Pros, LLC
Tri-County Capital Partners, LLC

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Area Short Sale Pros, LLC negotiates short sales on behalf of homeowners, Realtors and buyers/investors and we act as a neutral third party in the transaction. We have partnered with the best short sale negotiators who have over 50 years of combined industry experience and focus specifically on Short Sales. What makes us unique is our extensive contacts with lenders who know we are working for both buyer and seller as a third party negotiator and this gives us the “edge” over others. We service customers in all 50 states and work with all lenders and mortgage servicers. We are professionals with a proven track record for achieving positive outcomes for our clients. Call us now at 888-381-8654.

Categories: Blog, Business Connections, Commerical Real Estate, Investing in Real Estate, Real Estate Investing, Real Estate Negotiating, Real Estate Sales, Reviews, Short Sale Pro, Short Sales

Tags: Business Connections, Real Estate Investing, Real Estate Investor, Real Estate Networking, Real Estate Transaction Negotiator, Residential Real Estate, short sales

15 APR 0

Income Property – What Is It And How Can You Become Financially Free?

Income property is an exciting way to invest in property. Traditionally property investing costs you money every month. This is because there is a short fall between your expenses (e.g. your mortgage, maintenance, insurance payments etc.) and your rental income. You have to make up this shortfall with your own cash.

Income property is property that generates MORE income than you have to pay in expenses. This is exciting because at the end of each month you have money left over that you can either use to reinvest or you can spend it on your lifestyle…awesome!

How Can Income Property Make You Financially Free?
Income property can make you financially free because it generates you passive income. Passive income is income that you don’t have to work for. Because you don’t have to work hard to get money out of your property (you just rent it out and receive money every week) this means that any income you receive above your expenses is passive income.

If you can build up enough passive income from your properties that you can completely cover all of your living expenses then you are considered to be financially free. This is an amazing achievement because it means that you can live indefinitely (until you die) without ever having to work again. Your investments will pay for your food, your rent/mortgage, your entertainment, your holidays etc etc.

Income property generates more rental income than you pay in expenses. This is passive income because you don’t have to work for it, you simply rent out your property. Over time you may have to do a little work but most of the work will be done by your rental manager (for a small fee).

Over time the income from your property is very likely to increase. This is because your rental income goes up over time while your major expenses (your mortgage) stays the same or even gets smaller. Eventually you can completely pay off your mortgage using NONE of your own money and you can earn even more money. This means that every year as rents go up you become wealthier and receive more passive income?

Income property has the added bonus of generating you extra money through capital gains. As the value of your property goes up your equity goes up. You can realize this equity by selling your property or by borrowing against it. This can be very beneficial as it can help you to purchase more income property that will generate you even more passive income.

Article Source: Ryan Mclean

Categories: Blog, Investing in Real Estate, Real Estate Investing, Real Estate Negotiating, Real Estate Purchasing, Real Estate Sales, Residential Real Estate

Tags: Business Connections, Buying Forclosures, Market Analysis, Real Estate Investing, Real Estate Investor, Real Estate Sales, Real Estate Transaction Negotiator, Residential Real Estate, short sales

10 APR 0

Tips to Help You Get Your Home Sold

Once the crash of the real estate market occurred in 2008, the market around the country was hit hard. Prices fell to 50% from the height of the market, which left home prices spiraling out of control. So it’s no surprise that the home values suffered just like everyone else in the United States.

Even though home prices have fallen significantly, there is still good news around the corner. The values have been pretty steady since the beginning of 2011, and the market is becoming stronger every day. So it’s possible that things are moving in the right direction. Keep in mind; it’s still a buyer’s market out there, so sellers in the area need to work hard to show the amount of value that is still there. In order to get the best price we want to provide you with a few tips that will definitely help.

Tip 1: Studying the Local Housing Market – It’s very important to have a good knowledge base around the local housing market. When you have a better feel for what the real estate prices are averaging you will have a good idea about how much you can get out of your home.

Tip 2: Hiring a Home Inspector – Another beneficial tip is making sure you hire a home inspector. These individuals will help you find any type of problems that need repaired before the buyer actually hires one. This approach will allow you to command a higher price and even sell your home faster.

Tip 3: Cleaning the Home – We also recommend getting the house as clean as possible if you want to get the best home price. If everything looks cluttered and dirty you can expect that buyers will be turned off. Even if they are interested they probably won’t want to pay your listing price. The best thing to do is make your house gleam before it’s presented to the market. Everything from the windows to the bathroom should be sparkling. Sure it’s hard work, but it’s going to pay off in the end.

Tip 4: Paint the Walls – While this isn’t mandatory it can make a big difference. The cost to paint is pretty inexpensive when you consider the type of money you are going to get from the sale. In fact, sometimes this allows you to get a higher price when selling the home.

Tip 5: Curb Appeal – One of the best ways to get good home prices is by offering plenty of curb appeal. This means when buyers are driving by the home they look at everything from afar. If you need to add lighting, landscaping, or even repaint the front door it can be a big help.

If you utilize some of the tips we’ve given you here today you won’t have to settle for the sales price that other properties are receiving. It will actually help you get the top value for your house, even when the market is a little tough.

Article Source: Lance Mohr

Categories: Blog, Real Estate Negotiating, Real Estate Sales, Residential Real Estate, Short Sales

Tags: housing market, Market Analysis, Real Estate Sales, residential foreclosure, Residential Real Estate, Short Sale Pro, short sales

2 APR 0

What Makes Your House LEED-Certified?

Before we discuss the makings of LEED-certified home, let us first understand what LEED certification is and why it is important. This rating system stands for Leadership in Energy and Environmental Design, formed by the US Green Building Council. This system measures the construction practices followed during the building of a structure or home. This allows the buyers to purchase or build a home that is environmentally friendly.

Its importance:

With the deteriorating state of our environment, having a certifying body that will look into how homes and buildings are built is greatly needed. This will aid homeowners and contractors in monitoring their usage of natural resources. The waste produced and its implication to the environment.

On top of the monitoring, the LEED certification team works hard to promote a better alternative of building structures, an option that will not include hurting the environment. It is admirable how many professionals have worked hard to ensure that the quality is not compromised while following the principles of eco-friendly building. Such principles include the use of sustainable and eco-friendly materials, conservation of water, efficient use of energy and preserving the quality of air that will be circulating inside the property.

Better understanding of the LEED certification:

Note that there are four levels of LEED. Corresponding points are given to the properties. The number of points will determine the level of certification from the LEED. There is certified, silver, gold and platinum. Each level has a set of requirements. To be certified, the building project has to apply for it and submit the essential documents. If the certification body is satisfied with, the requirements submitted, then a certificate will be issued.

In order to be certified, the construction of the property should embody the eco-friendly practices. This includes the use of recycled materials, reducing or eliminating the waste generated because of the construction and using materials that do not emit harmful substances to the environment.

The LEED for homes is a great way to guide homeowners who want to purchase or renovate their existing homes and make it more environmentally friendly. To be certified is not easy. Aside from the guidelines to be followed, a third party will be assessing the property. They will validate any claims you have made. They will also ensure that you earn the certification by following eco-friendly standards in building or renovating homes.

Following the LEED guidelines is crucial even if you are not aiming to be certified. Following such guidelines will help you conserve energy, which means lowering your utility bills. This will also help you conserve water and provide you with a better quality of air at home.

It is time to pay attention to the real condition of our environment. Through this, we will be able to make the necessary changes and help improve its state. The LEED certification is one way of making our world a better place. Builders will be more careful with the materials and processes they use for the construction. This will also give a better option for homebuyers. Now, they will be properly guided when purchasing an eco-friendly property or renovating their exiting home

Article Source:Ezine Articles Roby Hicks

Categories: Blog, Business Connections, Investing in Real Estate, Real Estate Investing, Real Estate Negotiating, Real Estate Sales, Residential Real Estate, Reviews, Short Sale Pro, Short Sales

Tags: foreclosed homes, housing market, Market Analysis, Real Estate Coaching, Real Estate Investing, residential foreclosure, Residential Real Estate

29 MAR 0

Best Time to Buy is Now

When is the best time to buy? When everyone else is selling. The biggest fortunes have always been made during economic downturns by forward-looking individuals who buy when the market it at the lowest point. As Warren Buffet said, “be fearful when others are greedy and to be greedy only when others are fearful.” Buy low, sell high. No commodity demonstrates this contrarian market strategy better than purchase of real estate.

Right now there is around a 12 month supply of homes for sale in many markets, and in many cases at least a third of those homes are distressed. The next two to three years are expected to see near record high housing supply on the market and depressed prices. Many sellers continue to be desperate to get out from under over-valued mortgages and many are forced to sell because of unemployment and underemployment. When people are selling low, that is the best time to buy.

Many of the major lenders are gearing up to do more business with Short Sales over the next year or two because they realize that they can maintain better value in the distressed property if they do not take the owner all the way to foreclosure. Again, with lenders ready to deal, that’s the ideal time to buy.

Investors who are a little hesitant to jump in ask, “If everyone is selling, will I find a buyer?” That’s a good question, and it can simply be answered this way: If you buy it right and put it back on the market at an attractive price, then there will always be a buyer. There are some things you can do to hedge your bets:

Target your “farming” area to neighborhoods and price ranges that are attractive to all cash buyers. If you don’t have a feel for which areas are highly desirable to cash buyers have your buyer’s agent check recently solds in several target areas to determine who is buying, whether they are buying for cash or are financing, and what the recently sold prices were in the area. This will tell you three things: which areas to target for Short Sales, the price range of properties to target, and the price you can expect to get for the properties you tie up in a transactional Short Sale. Additionally, you should be able to see what lenders have been accepting for Short Sales in the area. You’ll then know what your average profit is going to be.

If you buy to flip rather than to hold you minimize the risk of losing any money if your Purchase and Sale Agreement is structured correctly. If you concentrate on putting many deals in the pipeline the deals that fall through will pale in comparison with the profit that comes in from the regular closings that your pipeline creates.

There are tons of ways to make money in real estate, but all of them are useless unless you have a steady flow of motivated sellers and qualified buyers coming into your business. When you have a solid pipeline of prospects, you pick and choose the best of the best and finally take control of your financial future.

Article Source: Ezine Articles Bob Massey

Categories: Blog, Business Connections, Commerical Real Estate, Foreclosure, Investing in Real Estate, Real Estate Investing, Real Estate Sales, Reviews, Short Sale Pro

Tags: Business Connections, Buying Forclosures, housing market, Investing, Real Estate Transaction Negotiator, Residential Real Estate

26 MAR 0

Short Sale Over a Foreclosure Might Save Your Financial Future

Losing your home due to the inability to meet the monthly payment obligations is perhaps the worst financial situation you could ever find yourself facing. In fact, a foreclosure puts a huge blemish on your credit report, where improving it could take years. Moreover, a mortgage lender may file a legal case against you as part of the foreclosure action. All this would then hinder your ability to obtain any kind of credit, leaving you completely helpless.

Consider a Short Sale as a Better Credit Position

The pitfalls of a foreclosure are frightening and sometimes irreparable. Hence, any option that promises a way out of the situation is a better alternative. This process is one option for homeowners who are mired in financial woes. Simply put, a short sale involves selling your home at a price that is lower than the amount you owe the mortgage lender.

The best part about short sales is that they create a win-win-win situation for all parties involved in the transactions:

The seller is able to evade foreclosure and payoff their mortgage liability.
The lender is able to recover his dues without going through a lengthy legal procedure, and fees, of foreclosure and marketing the repossessed property.
The buyer is able to purchase the home at a reduced price.

Considering a Short Sale? Keep the Following Factors in Mind

The first safeguard measure you must take when settling your mortgage through this process is to get a written acknowledgment from the lender, stating that all your debts are absolved. Other considerations to bear in mind to avoid any potential negative consequences of the process are:

Protect your credit rating: Do not forget that a short sale is mentioned on your credit report. Therefore, get the lender to report it favorably. For instance, if your report merely states that the debt is satisfied, your score will not be impacted. On the other hand, if your lender reports ‘settled for less than the full balance,’ your score will drop automatically.
Get tax advice: A tax liability on a short sale arises when the lender claims that the debt forgiven should be treated as an income. A tax professional can help you find alternatives to limit this liability.

While a short sale is certainly a superior alternative to foreclosure on several grounds, a homeowner often struggles to convince the lender to agree to them right away. This is because the lender has to agree to forgo a part of the mortgage claim that they want to recover. Therefore, when faced with a financial crunch, a short sale must be pursued as soon as possible. The longer you wait, the greater the amount of arrears, and the less likely that the lender will be to agree to the process. With that said, I have seen people live in their homes for many months without paying their mortgage and still complete a success transaction. Of course this is a bit risky and I would never recommend this strategy to anyone.

If you, or someone you know is facing a foreclosure scenario you will want to have a seasoned professional assist you in examining your options. Having an expert work with you could protect you, your home, and your financial future.

Article Source: Jenifer Wehner @ Ezine Articles

Categories: Blog, Foreclosure, Real Estate Sales, Reviews, Short Sale Pro, Short Sales

Tags: Business Connections, Commercial Real Estate, Foreclosure, Real Estate Investing, Real Estate Sales, short sale, short sales

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