Another important consideration is the market. To be safe you want to allow yourself enough wiggle room to come down in negotiations, but if it’s a buyers’ market you will have to do more to make your home stand out. Pricing your home below the competition should ensure multiple offers, thus driving up the selling price. Other tactics include being flexible around financing options and offering incentives. In any case, you want to price your home low enough that you will get traffic through – the first three weeks are important. If the house sits longer than three weeks perspective buyers may assume something’s wrong with it.
In a seller’s market it’s safe to add 10 per cent to the last comparable sale in your neighborhood and in a balanced market you may aim to add an amount based on the last comparable sale plus the average market increase calculated over the time since that sale.
Remember, pricing your house is as much an art as it is a science. In the end the price is important, but marketing and staging your home plays a vital role as well. A good realtor can guide you through this process and help you get the best price for your house.
Aug
23Investing In Foreclosure And Reo Properties
Posted By: Ramon Rivas on August 23, 2010 at 1:56 pmInvesting In Foreclosure And Reo Properties
The investment quandary as to the best method for acquiring foreclosed property at heavily discounted prices inevitably surfaces at the same stage in the real estate cycle every ten to twenty years. After housing booms and home prices correct back to affordable levels, real estate investors are suddenly inundated with an almost overwhelming supply of potential homes to choose from. These prospective buyers peruse city blocks searching for evidence of distressed properties that might lead to investment opportunity by taking dead lawns, unpaid utility notices, and default notices all into account. They investigate “For Sale” signs with “Bank Owned” or “Foreclosure” riders attached. Technologically savvy bargain hunters browse websites online to identify properties in default. These opportunists also compare notes with one another at various social functions, water coolers, chat rooms, and anywhere else real estate is spoken. Here they may learn that in order to obtain the most lucrative price, investors are best served to purchase property directly at a foreclosure sale on the court house steps. Regardless of the preferred method for locating distressed properties, it is imperative to thoroughly comprehend the different foreclosure processes in order to develop and implement a successful investment strategy.
If a homeowner fails to make prescribed loan payments to the bank, the borrower is deemed to have defaulted on the loan. If the delinquent payments are not cured in a timely fashion, the lender is permitted to foreclose on the property to acquire title to the home as security for the unpaid debt. For national investors it is important to understand that lending practices and foreclosure procedures vary from state to state. For example, some states are considered “mortgage” states while other states prefer the “deed of trust” method of lending and holding title as security for the loan.
MORTGAGES
Mortgage states utilize a two party security system where a mortgagor (or borrower) provides a promissory note to a mortgagee (or lender), along with a voluntary lien called a mortgage that serves as security for the borrower’s promise to make the loan payments described in the promissory note. Since title to the property resides with the borrower when the mortgage is created, foreclosures in mortgage states can be relatively lengthy and costly for banks to pursue. Further, mortgages also provide borrowers redemption rights that allow borrowers a specified period of time after the foreclosure and ultimate sale to a third party to pay off the original loan amount and regain title to the property. As a result, buyers at foreclosure sales in mortgage states must be aware that they will often be unable to obtain clear title to foreclosed homes as the previous owner will likely be afforded the opportunity to pay off the original promissory note and reclaim the property.
DEEDS OF TRUST
A minority of states that include California favor the three party deed of trust system due to the relative cost efficiency and expediency provided to lenders in the foreclosure process. Additionally, lenders are often able to provide buyers of foreclosed property clear title as no right of redemption exists for borrowers. The Deed of Trust process involves a trustor (or borrower) that gives a promissory note to the beneficiary (or lender), and the trustor also gives title through a trust deed to a trustee (neutral third party) as security for the note. The important difference here is that title to the property is held by the trustee rather than the borrower. The trustee is typically a neutral third party designated by the lender to hold the deed of trust during the loan period with the power to more easily administer a foreclosure sale in case of default by the borrower.
It is clearly important to determine whether one is bidding on a property that was subject to a mortgage or a trust deed at a foreclosure sale. This differentiation can often be confusing as many real estate professionals and experts in deed of trust states will often casually refer to home loans as mortgages. Many lenders in these states will refer to themselves as mortgage brokers or mortgage companies when they actually originate promissory notes secured by deeds of trust. Deed of Trust states also refer to foreclosure sales as trustee’s sales, where the highest bidder purchases the property in an auction setting. However, purchasing a home at a trustee’s sale can be a risky proposition as the buyer has little or no opportunity to inspect the home prior to purchase. Further, the buyer must pay with all cash as financing is typically not permitted at trustee’s sales. There is also no guarantee that the property is not currently occupied by tenants or a previous owner. Finally, purchasers at a trustee’s sale are not protected against clouds on the property’s title like tax liens from a previous owner’s unpaid property taxes, so title insurance is often unattainable for buyers at trustee’s sales.
REAL ESTATE OWNED (REO)
If a home is not sold to a new buyer through the foreclosure process, the lender holding the promissory note will often acquire the property and attempt to sell it on the open market to a new buyer. Once title to the home that once served as security for the unpaid promissory note is transferred to the bank, the property is deemed real estate owned (REO) by the bank. The bank will then typically retain a REALTOR® to market the property for sale at a price below market value, remedy any defects on title, remove any tenants or squatters occupying the property, and often retain contractors to repair any major physical defects in existence on the property. Although the typical price paid for an REO property may in theory be slightly higher than buying at a foreclosure sale, purchasing an REO property is clearly a much less risky proposition. REO sales also provide investors adequate opportunity to inspect homes prior to making offers to purchase, and buyers are permitted to utilize financing when purchasing these bank-owned properties.
Whether purchasing foreclosed or REO properties, the various risks and rewards associated with an investment may not only depend on the characteristics of the home itself, but also the type of security the home provided to the previous owner’s lender. In order to avoid the displeasure of telling foreclosure horror stories in real estate investment circles, an ounce of diligent research into a property’s financial history can prevent a pound of investment headaches.
About the Author
Brian S. Icenhower, Esq., BS, JD, CRB, CRS, ABR, a California Association of Realtors Director, practicing real estate attorney, a real estate expert witness and litigation consultant, a prosecution consultant of Tulare County District Attorney Real Estate Fraud. He may be contacted at bicenhower@icenhowerrealestate.com, or www.icenhowerrealestate.com
(ArticlesBase SC #774513)
Article Source: http://www.articlesbase.com/ – Investing In Foreclosure And Reo Properties
Aug
12Costa Rica: An Exciting Real Estate Investment Prospect
Posted By: Ramon Rivas on August 12, 2010 at 9:17 pmTo this end they are actively encouraging international real estate investors and those looking for a retirement or second home overseas to come to Costa Rica and explore its exciting and affordable property market.
The Costa Rican real estate market is one of the most exciting in Central and South America right now as a direct result of the Costa Rican government’s commitment to promoting the property sector. With the implementation of a series of tax breaks and investment incentives available to overseas real estate buyers the success of the Costa Rican property market is practically guaranteed.
For those looking purely for real estate investment opportunity, Costa Rica offers two main angles for property investors to explore: -
Firstly as the natural beauty of Costa Rica proves an irresistible draw for more and more travelers and those in search of the perfect getaway, so the demand for rental and hotel accommodation in Costa Rica is on the increase. The supply of quality accommodation in Costa Rica cannot meet current demand and this situation is likely to deteriorate as the popularity of the country increases. The government is well aware of this fact and is keen to attract those wishing to develop specifically for the tourism market.
Secondly Costa Rica is becoming increasingly popular with the soon to retire US baby boomers who are actively seeking an affordable and attractive location in which to retire. Because Costa Rica enjoys relatively low crime, is neutral, has a relatively high standard and low cost of living it is gaining a reputation among pre-retirees as a must-consider destination. There is therefore room for the development of real estate to suit this particular market or for the purchase and long term lease of real estate to this market. This particular group of people also represents a strong resale demand for those who buy now, improve property and intend to resell in the medium term to release gains accrued.
The real estate investment climate in Costa Rica is hot right now with the government working flat out to attract sustainable foreign direct investment – those interested in making a move should consider committing to the market sooner rather than later while it remains a buyer’s market and before opportunities for the strongest investment gains are eroded by increased levels of investor awareness and interest.
Real estate investment is a complex affair. There are many factors that affect the profitability of the investment.
Profitability is mostly dependent upon your ability to find the best possible deal in the market.
You must be able to identify the real estate deals that have the best potential that will allow you to maximize your profits.
Let us discuss some types of real estate investments that would top the list.
Big City Vacant Land: Land in big cities is understandably more expensive than that in small towns.
Although buying land in a big city would pay richer dividends, it would also involve a higher investment.
It is important to understand when to make that investment.
Experts suggest that boom time would be good time to invest, as the property value will appreciate rapidly
giving a higher ROI (Return On Investment). Or, you could buy land in low cost outlying areas,
where the population is still expanding. With a little patience, this would give you excellent returns.
Land with Ocean Frontage: Scout around for ocean front land in areas that are yet to be developed.
Make sure that the land is residential, and can be built upon, with no legal impediments.
This kind of a deal would be one of the soundest investments to make in real estate.
You just have to wait for development to take off, and reap a huge profit on the investment.
Ocean front properties are the most sought after in real estate.
Land with Lake Frontage: This is similar to land that has an ocean frontage, but on a smaller scale.
However, you have more options, because, in general,
there are more numbers of lakes. Properties like this are of optimum value,
because most people like to live in the vicinity of water, enjoying lakeside walks.
So take advantage of this to invest in lake front land if you are unable to get ocean front land.
Land with a view of a Lake: Dont confuse this with lake front land.
This is land that has a lake nearby. People who are unable to buy land right on the lakeshore prefer
a place that may be a few blocks from there, which would give them access to it. But be cautious,
and invest in such land only if there is ongoing expansion and development in the area.
Golf Course Land: Golf is a great sport, enjoyed by multitudes of people nowadays.
Lately, there has been a growing trend of buying property on or near a popular golf course.
The greater the popularity of the golf course, the better the chances of a higher return on the investment.
To a golfer, walking a few minutes to the course and returning home again everyday would sound like paradise,
especially to retirees. Try to invest in such land for assured high returns.
Ranch Property: This requires heavy investment, but if you have the resources,
it can be a long-term project that would give bumper returns.
Big lots, say one hundred acres, that may be in a remote location,
but are next to some other developing lots of similar size, can be a sound investment.
But it needs to be within your investment limits and other required capacities.
Miami real estate offers great opportunity for investors or homebuyers. But there are lots of factors to look up when you desire to invest.
There are two kinds of investment, the short term and long term investment. So it really depends on your investment plans and which you prefer that you believe can give you better benefits.
So due to all of these, it is better to have the necessary information and knowledge about real estate investing before entering to this kind of venture. You also have to be aware of the market trends.
If you prefer to make short-term investment in Miami real estate, you have to make sure to take time in finding the right property hat you can sell in the minimum period of six months. You have to look for a property that has great potential for appreciation. Do not be caught with the cheapest property, it is better to analyze the market trends and verify the future demands of the properties in that specific place.
Hiring a real estate agent can be an option. But if it is your first time in Miami real estate, you have to work will the right real estate agent, make sure to allocate time in finding the one that has he proper abilities, skills, expertise and experiences.
If you plant for a long-term investment in Miami real estate, you have to look for properties that are cheaper now but will have huge growth in the future. You can have an option of renting the property if you to not intend to stay in that property in order to bring profits or income to your future investment.
Of course, if you want to make Miami real estate investing you needs to secure the best mortgage, but how to secure the best one? The preparation that you need when you plan to invest is 2 years before the purchase. You have to keep an eye to your savings. It is better to reduce withdrawals and make sure that you have enough balance in issuing checks. Since bounced checks can make a bad mark to your credit history.
It is better not to switch for a job while looking for a mortgage, since most lenders will feel uncertain about your earning potential if you switch job. A switch for a job can be done if only you will be on a better company and having a better salary.
These are few of the tips that you need to consider in order to help you out in your plan to invest in Miami real estate. Investing requires lots of work so in order for you to gain success, you need to be extra careful and consider all the factors that need to be look up and accomplish.
