Foreclosure….The best Real Estate bargain on earth. Is it actually a favorable time to buy ? Repossessions, Short Sale’s, Refinancing, a new mortgage, all to confusing. The National Association of Realtors say ” it’s a good time to buy ” I agree ! But wait, is it a good investment ?
For years, I have helped many people make a lot of money in Real Estate. Those day’s are gone ! I remember when your home was your savings account, your retirement. Yes, you can find a bargain but will it appreciate ? Most likely, very slowly at least for the next ten year’s.
Lawrence Yun, Chef Economist for The National Association of Realtors stated ” Housing seams to be taking two steps forward and one step back to recovery ” and added ” The low mortgage rate is keeping the market moving “.
It’s pretty simple, Supply and Demand the supply is huge with all the foreclosure’s and new home’s are moving at a slow pace. Now I am not saying, ” do not buy a home ” there is a lot of pride in the American Dream. Owning a home just makes you ” feel good ! ” and that is what life is all about. Keep in mind what I share with all my clients ” do not fall in love with your Real Estate,( which is not easy ) just like it a lot “,
Now here are some tips when considering buying a home.
Should I sell my home even if it’s at a loss…..This may not be as bad as it sounds. First find a good Realtor, ask them to do amarket study on what your home could sell for. Try to come up with a price that would be below market value, be realistic. Do not go into shock if the price is lower then you paid for it. Try to think of what the end result will be. What you will end up with ? Will it be your dream home ? Will the cost-payments be less ? Is the value their ? A new mortgage may mean lower interest rates. Most important will you be happier in your new home ?
Foreclosure……This can be a gold mine. First you must find out the right person in charge of foreclosures at the different bank’s. Do not talk to the sectary you must find the decision maker. Now, do not even try to do this on the Internet, no email inquiries, that is what everyone does. It must be in person at least for your first contact. They ( in a round about way ) can tell you about the homes that they are desperate to sell. Study up on short sales. That is when they have foreclosed on ( or are about to ) a home and the mortgage are higher then the value. They have the power to sell it for less then the balance owed and write off the loss. Buying them lunch can be the best investment you will ever make.
Buyer Broker……..Few people even know about this. When you work with a Real Estate Agent normally they represent the seller, that is who pays them. They have a contract with the seller. They have a responsibility to you but their allegiance is the seller. A Buyer Broker ( or salesperson ) represents you. Their job is to get the best deal for you. You pay them on a predetermined amount or part of the sale price. In today’s market this can be a good choice.
You pay them to get the lowest price with the best terms. They negotiate for you. Plus many times they know the banker’s and the bargains that you would never know. Make sure they are registered, not someone with a sign out front saying ” I can find you a Real Estate Bargain “. The National Association of Buyer Agents… NAEBA can help you find a Agent in your area.
Foreign Investment……I am a retired Real Estate Broker living in Cancun Mexico. There are awesome investment opportunities here. Now an American can safely own Real Estate. Some home’s you can actually rent out and can pay for itself in five to ten years. You can’t do that back in the U.S. But that is for another story…. JIM KASZYNSKI……..” THE IDEA MAN “