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Overpriced Homes – How to identify them

 

Overpriced homes are common in the real estate sale. Most probably because, the seller thinks that their home is worth more compare to the other homes in the market. For first time home buyers, how would you know that the home you would like to buy is overpriced?

Today I will give you some tips that will definitely help you to determine an overpriced home.

Look at Comparable Sales

This is the easiest way to identify if the home is overpriced or not. If you have chosen a home in a particular area and you already have in mind as to what kind of requirements you are looking for. Let us say, you are looking for a home with 2 bedrooms and 2 bathrooms. You can check the other homes for sale in that area to figure it out if the home is overpriced or not. With just a little research you can get the idea of the average price, for the type of home you are looking for within that area.

The home is listed in the market for a long period of time.

There are a lot of listings that you will find in the market. Believe it or not were seeing multiple offers on some and limited to no activity for others. If a home sat on the market for a long period of time and has a very limited offer to no activity then think again. There must be something wrong with that home. Most common reasons as to why a lot of homes don’t sell on the market, simply because the price was too high.

Repairs and renovations

If there are some repairs, improvements or renovations that have been made, it might be added to the principal amount because of the updates. Adding value for the minor repairs does not apply, so you have to be aware of this.

Check the condition of the home

You have to know the condition of the property that you would like to buy. If the condition of the house is well maintained then it’s worth the slightly higher in price. However, if the home is an old house or it’s not properly maintained by the owner then you will just find yourself, spending a lot on repairs and renovating the property. A slightly high price home is better than spending a lot of money for the home repairs.

Foreclosures / Real Estate Owned Properties

The way bank price foreclosure property is very simple. They’re going to ask the local agent whose going to sell the property to do a BPO. The agent will tell how much the worth of the property and usually price the home much lower. However this doesn’t really matter to the bank. They do this because they are expecting for a multiple offers. So the price will push it upward. When this happens, home buyers used to pay much more without even noticing it.

 

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Factors that may influence your home’s resale value

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Credit to: Mark Moz

The largest investment that most people have is buying a home. Aside from this is an excellent investment, this is also our common necessity as a human being. When you are planning to buy a new home you have to consider a lot of things, so that the money that you will spend will not get wasted rather it will grow its value. In order to get a high resale value of your property, you have to think not only your needs but the future as well and what will be the home’s possible value may be.

Below are some of the factors that may influence your home’s resale value.

Location of the Property

This is the number one factor that could affect the value of your property. So when you are buying a home you have to consider a location that is accessible to most common places. A home that is located near the school district, hospitals, shopping malls, restaurants, groceries and drugstores is a great investment. Since, it is accessible to most places the resale value of the home increases rapidly especially if the property is highly maintained.

Upgrades

Renovating your property could also be tricky. It is very rewarding if this will helps to improve the resale value of your property. However, if the renovation was not done properly this could have the opposite effect. So, I would highly recommend that you should hire an expert before doing some renovations to your home. I would also suggest that you hire a BPO, to will determine the possible sales price of the property.

Age and Condition

Historic home that is well maintained are typically have high resale value. Generally, as a home gets older, it becomes less valuable “Humphries says. Also new homes are more valuable compare to the homes that was built somewhere in the middle. Aside from age the condition of the home also matters. You don’t want to end up spending lots of money for a poorly maintained house.

Unpleasant neighbor

Having an unpleasant neighborhood could also have a big effect on the re-sale value of the home. For example: If the home owners of the house, in a particular area does not know how to maintain the appearance of the property. Though the property that you want to purchase is well maintained this could still have a big effect on the resale value of the home. Especially, if majority the homes located in that area are poorly maintained. When the appraiser will come to assess the property this will lower the value of the property.

Views can add value 

Typically, homes that have a nice looking view sell for a higher price compare to those homes that has an appealing view. I would highly suggest that you should also consider this when buying a new home. If the home is worth the extra money, then pay for it because this could add up to the resale value of the property. However, in some locations home buyer does not consider the view as an investment for the property. They might as well consider the location, size, and the accessibility of the property.

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What You Should Know About Home Inspection

Buying a home can be both overwhelming and stressful. After your offer was accepted, there are a lot of things that you should do. One of the things that you should first consider is, hiring a home inspector. At this stage of the process, you will figure out what are the repairs should be make. At some point, having a home inspection is a great idea. They will give you an awareness of a home’s problems before purchasing it. This would also allow you to negotiate with the seller to cover the cost of some repairs. Basically, this will give you an idea whether you pursue buying the home or you will just move onto another that better suits your needs. The following article tells you everything you need to know about home inspection.

Finding a Home Inspector

 You should be aware that a home inspector and a contractor are not the same. A contractor, may have know how to fix the existing home problems, while the home inspector are specifically trained on how to identify the problems of the home, even if they are slightly enough to be seen by others. In finding a home inspector, you have to make sure that you hire a certified professional. This may cost you more than hiring a contractor, but this will give you a complete report of the home inspection.

You may also ask your agent in finding a home inspector. He or she probably has a few reliable contacts from the past transactions. You can also find a good home inspector through the internet. Whichever way, make sure to ask the inspector if they are certified.

Ask for Disclosure Prior the Inspection

Before you start the inspection, make sure that you already have the disclosure form from the seller. Do not start the inspection without the disclosure form. This will give you an idea what are areas your inspector should examine.

What you should do during the inspection? 

First, you should review the seller’s disclosure form and inform the inspector about the disclosures. Make sure to check if the seller’s disclosure form matches the inspector investigation. Follow the inspector during his evaluation, and take down notes. As I have said, homes inspection will give you an idea, whether you will continue to buy the home or walk away from the deal. Having an idea of what you are getting into will get rid of the stress of home buying, and this will also help you to make a good decision.

Obtain a copy of Inspection Report

Once the inspection was done, the home inspector will send the inspection report directly to your real estate agent, but it is a good idea to obtain a copy for yourself. This inspection report will be the summary of potential problems that was identified in the inspection and make sure that the pictures are provided for the damage areas. By obtaining a copy of inspection report, will help you to negotiate with the seller to cover the cost of some repairs.  

 

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What Everyone Ought To Know About Choosing A Listing Agent

Selling a home is not an easy process like putting a for-sale-sign in front of your yard or by just simply listing it on a free websites like craigslist and watch it sell. You might be successful in doing the first step but the process that you will go through is even more difficult. Having knowledge in selling a property is not enough in order for you to be successful in selling your home. This may take a lot of process and it will consume loads of your time. So, if you are planning to sell a home I would highly recommend that you hire a professional real estate agent so that they can assist you with your needs.

Here are the things that you should know when hiring a listing agent.

Better Access and Convenience   

Real estate agents have an easy access to all other properties that are listed on the MLS by other agent. They know what to do and what needs to be done. Agents know where to look for a home that meets your criteria, negotiate with the client and set up an appointment for viewing the property. This will be difficult if you will be doing all of these. Potential home buyers might lose their interest if you don’t respond to them quickly. There are also some instances that you may find yourself setting up an appointment and rushing to go home finding out that no one shows up.

Excellent Communication Skills

In selecting a real estate agent one of the important skills that you should look is his or her communication skills. A professional real estate agent must have the ability to communicate effectively with all the parties involved in the real estate transaction process. You will also know that an agent has excellent communication skills if he or she knows how to listen. Yes, communication involves not only how effectively they transmit the information but most importantly knows how to receive the information given.

Negotiating Skills

Aside from excellent communication skills negotiating skills is one of the most important qualifications that a buyer and a seller are looking for. Both buyers and sellers are looking for an agent who does not only carry the message from one party to the other. But also  wants an agent who can strategize and knows how to bridge the gap between the two sides while making sure that both parties appear equally rewarding.

Neighbourhood Expertise

One of the important factors that you should also consider in choosing a professional listing agent is someone who is familiar with the neighbourhood that you would like to live in. If an agent has knowledge about the neighbourhood he can explain it to you the crime rates to that area, flooding information, job opportunities, nearby school districts, public services, hospitals etc.

Marketing Plan

If you’re a home seller you have to choose an agent who has a clear marketing plan. Agent with clear marketing plan can help you generate more leads. Generating more lead means getting multiple offers and therefore, you have possibility getting the highest bid for your home.

 

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Top Mistakes “For Sale by Owner” FSBO Make

Do you have plans of selling your home without hiring a professional real estate agent? If you do, then think again. I tell you, it is not going to be an easy process. You might be successful in listing your property on the MLS but that doesn’t mean it will all goes smoothly because there are still a lot of process that you need to go through and a lot of things that you need to consider before making a decision to sell your home.

Many people believed that they can save lots of money because they don’t need to pay for the real estate agent’s commission. This is partially true, only if they knew how to do it right. However this is also the common mistakes of a “for sale by owner” make because; they do not have enough idea and don’t know the process of selling their homes. In addition to that, if you decided to sell your home by yourself you’ll have to be well prepared because it will consume a lot of your time to take care of everything including, the legal process, other forms and disclosures you needed and the financial risk might cost you the money you are trying to save. That is why a lot of “for sale by owner” end up losing their money by not hiring a professional real estate agent.

Here are some of the Top common mistakes a ‘for sale by owner” FSBO make.

Not Pricing It Correctly

This could definitely cost you a lot of money if you did not do it right. Overpricing your home might lose the interest of the buyers and might cause competing homes look like having a better values compare to your property. This might also lead to mortgage rejection once they’ve found out that you overpriced your home. This is the absolute mistake of “for sale by owner”. That is why their property does not sell successfully.

Lack of Exposure

Having an access to MLS websites is a huge advantage because; lots of home buyers are looking on the internet to look for their dream home. You need to list your property on the MLS, in order to generate potential buyers and get a good offer. It will also be easy for you to market your property. You might also use craigslist to list your property since it’s a free website.

Not Arranging an Inspection Before Showing the Property

Many homeowners do not see the defects that buyers might see in their homes. This could be one of the common mistake that a “for sale by owner” make. Let’s put it this way. Let say you are the home buyer and you are looking for a home that you like. If you will see a home that has a lot of defects or flaws on it, most probably you might lose your interest in buying that home. So as a home owner, if you don’t want to lose that opportunity, then you have to prepare for you home.

 

 

 

 

 

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What you need to know about Buying Foreclosures

There are several foreclosure houses that can found on the market today.  Foreclosures are back owned properties and are usually cheaper. That is why lots of home buyers and investors are giving in, in buying a foreclosure house.  If you’re planning to buy an REO property, be sure to educate yourself first, for you to know the process of buying a foreclosure. You should also be very patient in looking for a home with a good condition. Why am I saying this? Because, bank owned properties are generally in poor condition. Foreclosure owners have never step a foot on to the house so they have no idea what’s going on and what it looks like. Since, foreclosed homes are being neglected for months; there will be lots of maintenance issues, like dead lawns, clear the debris off the roof, and some minor repairs needed in the property. So you have to make sure that before getting into a deal you have to check the home first. Never, buy a foreclosure house if you haven’t seen it inside because you won’t know the shape of the home unless you have seen it personally.

Next beware of the previous owners of the property. If the previous homeowner is still occupying the home when the auction is taking place you might encounter two major problems: evicting the former owner and there’s a possibility of destruction. Previous homeowners might feel bad about losing their home so they might have destroyed the electrical systems, or removed the appliances and fixture and even vandalize on the wall.

Maintenance and cleanliness is also a common problem in foreclosure properties. Homeowners might not able to maintain the house properly because of having a difficulty in paying for their home loan. So, you might as well be prepared financially when you buy foreclosure properties because, it will cost you to make some repairs.

In acquiring a foreclosure property it is also important that you seek out information on the house history. You should know the things that had happened in the property so that there might be no issues that may arise in the future. Be sure to investigate the right of redemption law in your state, because this will give the right for previous homeowners to reclaim the property for a certain period of time if they were able to pay all their outstanding debts. Of course you don’t want that to happen so you have to be very careful

In spite the fact that you could encounter these problems when buying a foreclosure property. If you are willing to solve all of these complications that other people do not want to deal with, you can buy a home at that can offer you a great deal. You can make money by getting an investment for foreclosure properties, but you should also be wise in choosing the right home and in making a decision to buy. Don’t overlook the details that makes the property desirable simply just because the price offer price is cheap. Invest like you’re an expert!