Property Buy and Sell Tips

In 2008, there will be an increase in inventory before it makes a sharp dip.  Sellers whose listings expired in 2007 will be placing their properties back on the market and label it as a new listing.  But anyone who watches the market closely will not be fooled.  This will continue until summer, and sellers will realize that they have no choice but to remove their property listing from the market.  This is when the inventory falls.

Banks will refuse to pay closing costs.  They’ll demand discount rates from escrow companies, and they will also stop playing ordinary closing costs like state documentary transfer taxes and city taxes.

Flood insurance rates wlil rise.  Due to new assemsments of flood risks, home owners will be getting flood insurance policies.  As a result, the insurance rates might double, while those who do not have flood insurance might end up paying rates that are ten times higher than they would have paid before.

More investors will be joining the market.  Since investors have different criteria than the average home buyer, they will return to the market as they realize that this is the best time to purchase real estate.  First time home buyers will compete with investors, and it’s more likely that the investor will win.

Related businesses will be shutting down.  Businesses like mortgage companies, builders, appraisers, title companies, and construction-related companies will either shut down or consolidate to make up for the slowing real estate market.  Those who do survive will lower costs by reducing staff.

Buyers will make low offers.  First-time buyers might think that this is the best time for a buyer to make a purchase and will write very low offers.  Some won’t even bother looking at the homes when they make ridiculously low offers.  If you intend to sell this year, expect a number buyers who will throw lowballs at you.

Advertising will move to the internet.  With print advertising slowly losing its effectiveness today, real estate agents will move their listings online – it costs less and gets better results.

As the real estate market continued to decline from the summer of 2005 to mid 2007, financial experts claim that the real estate bubble had burst. Many buyers are sitting on the fence, wondering if it’s a good time to buy and if it’s possible to predict the real estate market.  Here are some predictions of the 2008 market based on trends and facts from 2007.

Home prices will flatten and decline.  Although the prices for homes won’t take a nose dive, they will slowly decline like a feather, swinging left to right until it reaches a landing spot.

Foreclosures will increase.  Interest rates on 3-year and 5-year loans will increase and many buyers who opted for 100% financing in 2005 are likely to lose their homes.

Interest rates will be more stable.  Although the rates will move backwards and forwards, buyers will be choosing fixed-rate mortgages.  Those who do not qualify for commercial loans will gravitate to seller-financed instruments like lease option purchases.

If you price your property too low, you’re going to get far less money than you would have if you had done your research to find out how much your property is really worth. If you price your property too high, it might stay on the market for months and you’ll keep on paying the mortgage, tax, and insurance while it sits there.

Buyers are not interested in the personal circumstances in which you are selling your property. What you are selling is only worth what people are prepared to pay for, which is its current market value. The right price for your house should be based on what similar properties in the area sold for. The prices are generally recorded and published for public viewing. Make sure you avail of this information from your real estate broker before you set a price on your property.

You can find many mortgage lenders online, but not all of them are reliable or reputable. To find the right mortgage lender, make sure you do your careful research and ask for recommendations from people you know.

Usually a mortgage broker works with many other lenders to find you the best financing option when you buy a house. Even if you have bad credit, he or she can find you the right mortgage rate.

Look at the lender’s site and get the location of their office so you can visit them personally later on. Watch out for too good to be true offers in their website.

Mortgage brokers online make getting quotes easy because they list everything down in one page. However, make sure you take time to compare rates. The mortgage rate should be based on current interest rate, your credit source, the property’s location, and your employment history. Make sure your provide this information or all you will get is a rough estimate of your loan.
look at both the rates and fees to determine the actual cost of the loan.

If you’re selling your house, chances are your prospective buyer will want to bring his or her own home inspector to see if your house is worth the asking price. Here’s how you can prepare for the visit.

Cleaning your home sounds so simple but you’d be surprised at how many home owners overlook this. Home inspectors are people too and as people, they’ll have their own ideas about how a well-maintained home should look like. A clean house indicates that you take good care of the rest of the property.

Get the house ready way ahead of the home inspector’s arrival because some home inspectors like to start early.

Leave the utilities connected because the home inspector will check the faucets, airconditioning, the stove, etc. Without the utilities, the inspector cannot make a full assessment and you’ll have to reschedule.