Negative Media and Real Estate - Pay Attention to What Gets You Paid

Despite what you may hear, the housing news isn't all negative. In fact, with all the negative media you see sometimes with regards to real estate and the "real estate bust", it's sometimes difficult for novice (and even some advanced) investors to know what to listen to and what to discard. I say you pay attention to what gets you paid- and leave the rest of the negative media to the Chicken Littles of the world who won't learn to calculate and take measured risks...and thus won't ever accomplish anything anyway, in investing or otherwise.

As much as professionals in the real estate and mortgage industries as well as professional investors harp on the point that there is no one "real estate market" and that this is a localized investment, people still give credence to sensationalist media claims again and again that the "market is down" or that the "market is bust"-- despite evidence to the contrary in cities all across the United States.

Even as median prices decline and appreciate at a slower rate nationwide, even when people who don't know what they're talking about are still talking about it (i.e. talking about a bust), there are numerous cities in the country where home values are still climbing at a nice clip.

This is pretty much always the case. That's how market cycles work. Seasoned investors know this and they use this knowledge to their advantage.

Again, real estate is LOCAL.

Check out the federal website http://www.ofheo.gov to find the cities bucking the national trend recently.

Homes' appreciation in some of these places during the fourth quarter of last year far exceeded the national average, according to the Office of Federal Housing Enterprise Oversight (OFHEO calculates appreciation based on repeat sales or refinancings of the same single-family properties) .

In fact, in some markets, the appreciation jumped well into the double digits even in today's market.

The growth of these cities despite a "national downturn"...why?

In part due to an influx of moving-out Californians and people opting out of slumping Las Vegas or Phoenix (cities that jumped sharply in value during the "boom" of recent years before contracting in value), these trends have created smaller booms in these cities. There's other reasons but this should get you thinking and on the road to a quick start to making money!

While some worry that a new group of cities could face a boom-and-bust transition, they clearly don't understand how the real estate market cycles work-- or how a professional real estate investor can use these trends to minimize risk and maximize wealth-building.

So don't pay attention to any overly negative media attention about real estate or "busts", or negative housing news. Instead, do as professional investors do and put your energy instead to work on finding where and how to invest for maximum profit and income. Trust me, plenty of people are making plenty of money. Check out the OFHEO for a quick start to making money when you see where your investing dollars will go the furthest TODAY.

Wholesale Buyers and Real Estate Investors

Wholesale Buyers. (We Buy Homes etc). Like any business, there and good and bad players. Most of these Wholesale Buyers are either part timers and or they just finished reading a few books and are ready for the "first big deal".

First, if you are trying to get a retail price, these are NOT the Buyers for you. Reason being that they have to buy at 50% of value less any improvements needed so that they have a margin to fix and resale for a profit. Again, many Sellers think they have a gem when in reality...it really needs lots of work and improvements, so please don't be insulted when you get their offer.

If the property is over priced based on the amounts owed, the difference can be made up with a short sale as outlined within. Buy low, fix and sell higher. You can contact some Real Estate Investors who know what they are doing and or your Real Estate Agent may have some contacts.

Even though it may be embarrassing, you need to advertise the property as in pre-foreclosure or desperate Seller. Time is ticking and if you are not able to strike a good deal, the lender(s) will own the property sooner than you think, and the borrower(s) with a big judgment.

Also, in a short sale situation, the Seller cannot get any money out of the sale and the best that they can hope for is that the lender(s) will show the loan as paid off for less than what was owed, no deficiency judgment and all other associated items are paid off. Some Buyer(s) may agree to pay cash to the Seller(s) for personal items as a bill of sale.

Buying Your Own Home Or Real Estate

Consider the following points:

o    You would like your children to grow up in a quiet peaceful place which they can call their own home

o    You are tired of shifting from place to place and deal with landlords all the time

o    A sizeable chunk of your earnings goes as rent and enriches the pockets of other people who are getting returns on their own property investments.

o    You want your own place, a space that reflects your taste and personality

o    You want to invest money in something that will appreciate over the years

If this is something that strikes a chord in your heart, something that you often feel, you might want to purchase your own home.  For that you need to enter the real estate market. However it is an expensive investment to make, so you should exercise caution.  Here are some tips you can follow and you will own your own home and benefit over the years to come.

Do your homework well

o    Be very sure what you want.  Property is expensive and you need to pay huge installments every month.  Be prepared for that.  Of course there are hidden costs like moving expense, daily commute to your place of work and cost of refurnishing and repairs

o    Find a good real estate agent.  There are so many in the market and you need to find one you can work with and who is really good.  A realtor who is pro-active and can help not only find the best real estate for you, and also help you negotiate the shifting and repairs would be a big help.  Most real estate agents have contacts that can make your move easy.  Moreover his expertise in closing the deal can be handy once you have made your selection

o    Start talking to banks for your mortgage.  Do not be scared if you have a bad credit score.  You can start repairing it immediately.

o    Build a tidy down payment.  The bigger the down payment, the smaller the mortgage.  Plus you save on interest rates too.  Remember you need every single penny, since you need to purchase your home, furnish it and repair it.

o    Get a financial advisor.  Discuss bank rates, interest options etc.  Be prepared to learn all that you can about making your dollar last longer.

o    Select your home very carefully.  Check if it needs repairs, and how much you may have to pay to get it in order after buying it.  Ask yourself if it will be suited for your needs in five years.  Generally homes in which you could add rooms is the best option.  Check the zoning laws.  If you run your office from home, are there laws forbidding it? 

o    Do not be over confident about your ability to repair and improve your home.  Many times we think we can do a lot, but ultimately have to call in experts who are expensive.

Beavercreek, Ohio - An Outstanding Choice for Home Buyers Seeking Houses and Real Estate

Beavercreek not only offers outstanding quality to both residents and visitors, but also host to excellent shopping and dining venues. Beavercreek, just minutes from scores of parks with miles of walking and biking trails, volleyball, basketball, soccer, golf parks and more makes it popular with outdoor enthusiasts. The city of Beavercreek takes great pride in maintaining this Alpine community which comes alive at night with fun and festivities.

A major shopping complex Beavercreek residents frequent is "The Greene" with not only scores of boutiques and shops, but also hosts requalr events such as live music and other entertaining performances. Another famous shopping mall is The Mall at Fairfield Commons and offers shopping enthusiasts five national brand stores, and over 130 specialty shops, boutiques, and eateries. Something for everyone.

For dining out, you will find something to suit just about any taste. 5 star review Quarter Steak and Lube features juicy steak and their own home-made variety of award winning sauces in a fun, upbeat atmosphere. If you have a taste for something spicy and more exotic, you may stop in and enjoy a repast at the Maharaja Indian Restaurant, also highly rated by patrons. Another highly touted restaurant if you're partial to oriental flavors is the House of Thai with daily lunch specials that are sure to please. Their nearby Miamisburg location also offers Sushi.

Beavercreek's close proximity to Dayton provides tremendous variety of activities, fun, shopping and recreation. Beavercreek boasts a bustling and thriving business economy for its growing community and very accessible to Wright Patterson Air Force Base which in turn fosters local markets and various businesses. This area is also highly desirable to our military men and women, and a prime area for VA loans and no money down opportunities. Beavercreek, known for quality, being fun and friendly is an excellent choice for those seeking houses, condos or property.

Beavercreek's location also provides easy access to major transportation arteries, and though right next to Dayton, it's also a reasonable distance from Cincinnati as well, which offers no end of dining experiences, arts and entertainment, the Cincinnati Reds games, theatre and night clubs. Dance the night away or take in a movie at anyone of many theatres.

Beavercreek houses and real estate range in price from under $100,000 to over one million, and provides opportunities to home buyers of every need and taste; luxury homes, condos, townhomes, cottages, and even investment property. There's never been a better time to buy Beaver creek houses or real estate.

Top Tips for You When You Are Dealing in Property and Real Estate

Dealing in property or real estate is one of the most important decisions in your life. For many of the people this may be once in a life time decision when they want to own a new home for their family. It is therefore important that you keep you every step safe when you are dealing in real estate or any property.

In the time of financial crisis it is very much crucial for everyone to keep themselves on the safe side before they plan to invest in property. There are many of the things that you should keep in mind before going further.

• First of all it is very important for you that you look and examine the property carefully before buying it out. You should never pay any money before visiting the property you are purchasing. You should know what you are getting and what it is worth for.

• Then you should get an idea about the cost of the property. Different real estate properties are available at different rates which mainly depend on various factors. The location is one of the most important factors which decide the value of any property. You should get the idea about it.

• Many of the sellers may increase the cost of the property simply because it's an old one. But the old property does not necessarily mean that it is right for you and you should look carefully about the advantage of getting it at the right price.

• Then it is ms for you that you hire a professional and expert in the field. It is important that you do all the necessary paper work and other legal work after consulting a real estate agent. With their help you will reduce the chances of being scammed and you can get the best deal you are looking for.

Earnest Money and Real Estate Transactions

First-time homebuyers and those that haven't purchased a home for many years are often surprised at how important earnest money in negotiating the purchase or sale of a home. What changed is the prices of today's homes and the old saying give us a thousand dollars and see you at closing is really outdated. Would you take a home you've been actively marketing for ninety days off market for four hundred thousand dollars, for a thousand? No, and you shouldn't. Here are the ins and outs of earnest money and a couple of related experiences.

-Earnest money deposit: The money given to the seller at the time the offer is made as a sign of the buyer's good faith.

-Earnest money amounts vary, but here are some guidelines. 5-10% of contract price is typical. Flat amounts like $5,00 or $10,000 also work.

-Most states require that real estate brokerages now pay interest on earnest monies over a certain amount, here it's $5,000. You will have to fill out a W-9 though to receive interest. Brokers can't co-mingle earnest monies funds with their business, it needs to go into an escrow account.

-Escrow accounts. Require all deposits you make go into an escrow account. Research state brokerage laws to discover what regulations brokerages must follow with buyers funds.

-All earnest money checks should be made out to a real estate brokerage, not a person.

-Require that you receive a receipt for all earnest monies delivered to a real estate agent or brokerage. This should include a copy of the check on the brokerage letterhead and a signature of person accepting delivery, date and location check was received.

-If the earnest money system is a two-step, with an initial deposit and than a balance, make sure the second one is not delivered until after the attorney and inspection approval period have come to a successful conclusion.

-A quick closing date requires certified checks for earnest money. Many a delay in closing has occurred when buyers earnest money checks bounced. If you're closing soon, utilize certified funds.

-The buyer ripped to shreds inches from my face his earnest money check. We looked at over a hundred and fifty homes, it was grueling. I couldn't screw up, this relocating CEO was bringing another two hundred employees, and our firm would be finding them homes too. The problem was that the husband wanted traditional and the wife wanted contemporary, and eventually as their feud escalated, I counseled that it wasn't the inventory, it was their relationship that was creating the barrier to agreeing on a home. So finally he gave in and we put together an offer, including his $100.000 earnest money deposit, except he sabotaged it with an unusually low price and wouldn't move off of it. We lost the house and I met them in my office to return their check. As I was delivering the check back to him, I said that maybe they needed a fresh perspective in their home search and that I would find them a new agent. He got up and took the check and inches from my face tore it up dramatically, with the pieces falling down to the conference room table.

-The huge but lost earnest money check. I was representing young, wealthy newlyweds in the purchase of a very, very, very upper-bracket home. The husband was a principal in a investment banking firm, and audited his money market accounts hourly, 24/7. After negotiating a successful contract on their dream home, the husband delivered an earnest money check for a half-a-million-dollars. I in turn delivered it to the listing agent, as is the custom. A week went by and my banker-buyer called and said the check had not been presented against his account. I queried the whereabouts of the check with the selling agent. She said that it should go through any day, sit tight. Three weeks went by and my buyer called again, still no check had been presented. I called again, um, yes she found the check, I never new it was lost. Don't tell anyone, but my cleaning lady found it behind the sofa in my family room.

Economy and Real Estate Conditions in the Richmond Virginia Area

It has been the best time ever to buy real estate. Mortgage interest rates have been lower than 5%, real home prices are low, and sellers are motivated. To make things better, the government has offered huge incentives to buy a home. First time buyers get $8,000 in tax credits when buying a house.

The government incentives have had an influence. First time home buyers include about 45% of real estate transactions. In Virginia, we've also seen a large increase in the purchase of new construction homes.

Despite these favorable buying conditions, Richmond home sales have been down. Last month, Chester (a Richmond suburb) home sales were down considerably compared with May of last year. Powhatan trends also show a remarkable decline from last year.

Why is it that home sales are down even though purchasing real estate is so advantageous? People can't buy because they can't sell their current homes, they have no equity, no down payment, and can't get mortgage financing, or they just don't feel certain with their job stability.

Some of the government incentives have concluded. The sub 5% interest rates have increased to around the 6% range. A one percent increase in interest rates is a huge deal for housing affordability. A $150,000 home loan at 6% is around $100 a month more than at 5%.

What will happen when the government incentives end? It's difficult to say. The economy and housing market do show signs of recovery, but it looks like the Richmond Real Estate market won't greatly improve in the near-distant future.