Posts Tagged with buyers
By Megan Gates
Buying a home is an important decision and that step should not be taken without doing your research. An educated buyer is in the best position to make the right decision about this major purchase. If you are knowledgeable about the housing market and procedures your transaction will go much smoother.
The best advice for prospective homebuyers is to hire a real estatebroker. Again, research the brokers in your area. Talk to several and go with one you feel has a grasp of what you are really looking for in a home. Three items to look for are; an understanding of the market, knowing their client’s needs and finding properties that are great investments. A good broker will take the guesswork out of purchasing a home.
One item your broker can do for you is to help you understand property evaluation. A recent broadcast of “Eye on Real Estate with Dottie Herman” discussed the three most important aspects to buying a home. Herman is the CEO and President of Prudential Douglas Elliman.
The value of a home is different for each buyer based on how they are planning to use it. Herman states that lifestyle, transportation needs and schools. This value will be different for a family with children or a family with no children. The value in their eyes will be different.
Herman states that many sellers believe the cost of the house is what they paid for it plus improvements and renovations made during their tenure. By improving the home they are increasing the value of the home even though the cost of the home may remain the same. Herman emphasizes, “Cost and value are not what the price of the home should be or shouldn’t be.”
Price/Fair Market Value
The fair market value price is what the property is worth at today’s financial level.
By Steve Cook
It’s still a buyer’s market for properties selling for more than half a million. Tight inventories driven by negative equity and slow foreclosure processing and rising prices are having much less impact on luxury homes than on less expensive homes.
According to the Institute for Luxury Home Marketing’s weekly market report, the average days on market were 186 for luxury homes. Inventories for the luxury segment are about the same as they were in November. Median prices in the 31 markets that ILHM tracks have stayed fairly stable. Days on market range from a low of 111 days in Silicon Valley to 268 in New York.
By contrast, the national median age of all homes in the June REALTOR.com® inventory dropped to 84 days in June, down -9.67 percent on an annual basis. The size of REALTOR.com’s ® inventory of homes for sale was 19.35 percent below a year ago. Prices are up 2.68 percent on a year-over-year basis, according to the Realtor.com Trend Data released today. List prices increased in 101 markets of the 146 markets covered by REALTOR.com®, held steady in 26 markets, and declined in just 19 markets.
Several factors are causing the inventory drawn down among lower price properties. Negative equity is keeping many potential sellers out of the market, which keeps a lid on inventory and complied with the reduced flow of REO properties has led to much tighter market conditions for lower priced properties, particularly in the hardest hit markets, according to CoreLogic Economist Sam Khater. Khater estimates that lower tier properties are appreciating three times faster than expensive homes as a result of tighter inventories.
Luxury brokers around the nation report little change in their markets in recent months, unlike the tight inventories and rising prices among entry-level homes found in almost market in the country.
Hey guys, is there a buyer out there that you know of that likes to play the "real estate game" and make really low offers? Or are you the "culprit"? This article may help you rethink that strategy when it comes to putting in bids for homes. Check it out:
Your home is the largest purchase you’ll ever make. So it might seem that emotional side effects like panic and fear are inevitable. But they’re not. You do have the power to manage your emotions and have a relatively blissed-out homebuying experience. And you should seize that power; doing so will not only minimize the discomfort, it will also keep panic and fear from fouling up your decision-making.
Let me hand you some keys - the keys to having a Zen home buying experience:
1. We fear what we don’t understand. Buying a computer, a TV, even a car – these things aren’t super scary, in part, because we do them repeatedly. But we buy homes much less frequently, and the transactions are much more complex and filled with jargon that is essentially unintelligible to all but those who practice real estate for a living. On top of all that, the mistakes we stand to make when buying a home, from buying a lemon to taking the wrong mortgage, hold the potential to devastate our lives and our finances for years to come.