Here are another 10 Real Estate Tips that home buyers, home sellers, real estate licensees, mortgage licensees and miscellaneous servicing company personnel involved in the entire home buying, home selling and lending processes can benefit from.
Never in U.S. history have home values decreased and maintenance costs like property taxes, fuel, utilities and insurance increased by as much as they have since the year 2007.
The amount of a buyer’s deposit is not set by law. It is negotiable between buyers and sellers the same way that price, settlement date, extras, negotiable items, removable items, replaceable items, repairs and deficiencies are.
Excellent but reasonable “staging” of the exterior and interior of a home can statistically increase buyer and real estate agent inquiries. Accomplishing this can result in more showings, more offers, a faster sale and selling at the highest price in the shortest period of time.
To be on the safe side financially and psychologically, most real estate buyers should anticipate a decrease, or little or no appreciation, on the properties they purchase. They should also anticipate an increase in maintenance costs like property taxes, fuel, utilities and insurance as well as other day to day living expenses.
If many housing reports were really true indicating that all U.S. home values have increased and all sellers now have equity then short sales as well as advertisements offering refinancing assistance to property owners who owe a lot more on their properties than what they are worth would not be skyrocketing.
Financially struggling sellers who are thinking about doing a short sale because they owe more on their property than what it is worth should seek excellent legal and financial advice to determine 1) if the amount of debt forgiveness is nontaxable income, 2) whether their credit will be affected and 3) if there will be any financial liability to the lender.
A real estate short sale simply means that a financially struggling property owner’s lender(s) agrees to reduce principal balances so that the owner can sell their property for less than what they owe. There are pros and cons to short sales and that’s exactly why property owners should obtain excellent legal and financial advice before signing any agreements of sale.
The days of 10 people living in 2 and 3 bedroom U.S. apartments and homes is not coming ?? They are already here !!
Without a substantial increase in real estate values, disposable income and consumer purchasing power, most of today’s generation of U.S. home buyers will not be able to buy several homes during their life time the way former generations were able to do.
When housing reports say that all U.S. home values have increased by 6% and all sellers now have positive equity, they simply do not represent the truth and here is why. If a home was worth $300,000 in 2005, $150,000 in 2012 and $159,000 in 2014, then yes, the home’s value has increased 6% of $150,000 or $9,000. But there is still one big problem. The home is still worth $141, 000 less than what it was in 2005. By the way, if these reports were true, then short sales as well as advertisements offering refinancing assistance to property owners who owe a lot more on their properties than what they are worth would not be skyrocketing.
Remember to look for my Real Estate Tips For September 2014 article in about four weeks.
Agents’ Note: Phil Mitsch is the world's #1 economic recovery, real estate, financial and motivation trainer. He is also the real estate industry’s all time, top producing residential resale Realtor, who did not use personal assistants. His 1) biography, 2) testimonials, 3) seminar topics, 4) books, 5) videos, 6) audios, 7) economic recovery tips, 8) real estate tips, 9) financial tips and 10) motivation tips can be found at www.PhilMitschForAmerica.com. His tips can also be found online at www.examiner.com/real-estate-in-national/phil-mitsch and @PhilMitsch on Twitter. For further information, contact Phil Mitsch Enterprises in Cherry Hill, New Jersey at 856-665-6569 or by email to firstname.lastname@example.org.