It’s a difficult market selling property in Los Angeles. Property values have fallen in on themselves, saturating the market with real estate far below its market worth of a few short years ago.
Not only can it take considerable time, but it’s difficult finding a fair market price for real estate in Los Angeles. Real estate auctions, however, feature a competitive bidding process that can often escalate, often beating out the market value in this difficult economy.
Auctions present a viable way to accelerate the selling process. You could end up waiting years to sell property for a decent value in Los Angeles. (more…)
Auctions are a great way to buy a home no matter if it is your first, second or investment property. There are so many advantages that I only have time to name a few but keep checking out our website for more information on when our next auction will be held and what properties will be available.
There are three basic types of auctions any of which can be done at our auctions. The most popular type of auctionswith customers is the absolute. This means the home will absolutely sell that day, no matter the price, highest bid wins. The sellers brought the home to auction to sell and are ready to do so no matter the price. You may think this is a distressed sale but many times an absolute bid is higher than the seller ever thought possible. The reason for this is the excitement the auction generates with bidders getting caught up in the process hoping to buy at a great price. Buyers and sellers benefit from this type of auction. Buyers know they are going to pay only what they want for the property and the sellers know their property will be sold by the end of the day. The second kind of auction is minimum bid. In a minimum bid auction the prices is set below the list price, rock bottom of what the seller is willing to take. The minimum bid is published in the auction catalog, on the website and announced by the auctioneer at the start of the bidding for this particular property. As long as someone bids that price the property will sell that day. If no minimum bid is offered the property is not sold and may be help over to the next auction. The last type of auction is the reserve auction. The seller has set a price he is willing to take but it is unpublished. Bidding will start with an opening bid and progress normally. A couple of things can happen at this point which is what makes many auctions exciting. Once a particular price is reached the seller can notify the auctioneer that the property is now an absolute bid property. In other words, when the final bid is called out and the gavel goes down the property is sold.
Auctions can be a great way to buy property. In today’s real estate market auctions are becoming more and more an attractive way to buy and sell properties.
There are many resources available for first time homebuyers. It is very overwhelming to purchase a big investment let alone your first large investment. The government has devised plans to assist with home buyers who are purchasing for the first time. A couple of the programs include the Illinois grant and also the first time homebuyer tax credit. Understanding what programs apply to you and how much you qualify for is important when making your purchase.
The state of Illinois provides free money for its residents who are buying a home for the first time and need help with the down payment and closing costs. This money comes in the form of grants. There is currently one first time home buyer grant program available in Illinois. Low-income families can receive a grant of up to $3,000 to help with both the down payment and closing costs. If you have very low income, you may be eligible for a $5,000 grant. Not only is there a state grant but there are also federal grants available to first time homebuyers in Illinois as well. This grant is available through the Homes and Communities program of the United States Department of Housing and Urban Development.
The other resource that first time homebuyers can take advantage of is the first time homebuyer tax credit. This credit has now been extended through March. For this tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase. The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase. The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
Every first time home buyer should research what programs the state and government have to offer. There are many benefits that come with being a first time homebuyer and free money is one of them. It is very important to see what you qualify for before purchasing your first home. Take some time to investigate these offers before making the big purchase. The government is encouraging homebuyers to make the investment and to allow for a recovery. If you are looking to purchase take advantage of the system and save some money.
As the Real Estate market continues to decline, many people are wondering, what is the market going to look like in 2010? In terms of a full market recovery, this is highly unlikely during 2010. In order to fully understand where the world sits in terms of position, it is important to understand the issues related to the lead up to the world real estate market downtown. How these issues have affected the market will help in understanding the next year’s strategies most suitable for optimum returns.
The first important issue is the mortgage market. The mortgage market is hugely responsible for the downturn of the economy. The lack of control in this sector resulted in many borrowers defaulting on their loans. Many borrowers that took out a loan should have never qualified in the first place. The government has responded to this issue by reducing interest rates and having stricter control over credit checks.
Supply and demand is a movement that has also affected the real estate market. Many builders had too high of inventory. They kept building, in hopes of selling and what happened instead was a large amount of inventory just sitting on the market. In order to combat this, construction companies are slowing down on the construction of new homes to help bridge the supply and demand gap.
2010 will continue to be a buyer’s market, where those who are in a position to buy will still receive great bargains. Investors are taking advantage of this and purchasing for long term investments. This will in turn help shape up the economy. Purchasers and investors need to understand that if you are looking to purchase for investment purposes, then plan on staying in the home or holding onto it for a long period of time. Real Estate is no longer a short term investment where one can purchase a home, flip it and then sell it. Understanding this will control who is purchasing and what reason he/she is purchasing.
By gaining more knowledge on these sectors of the real estate market, it is easier to understand not only what needs to be improved but also what action needs to be taken to bring the market back to where it used to be or at least better than the previous years. Changing the real estate market will take many years but the good news is that we are on the upswing of turning this market around!
Interested in buying a condo? Real estate auctions feature affordable options you wouldn’t expect. The current housing market has created some remarkable conditions in the auction market. No longer are auctions the range of forgotten about, foreclosed on properties that might land up in a Sheriff’s sale.
These properties aren’t being sold because someone forgot to pay the taxes. Often, it’s simply sellers that want to move the property quickly in a challenging real estate market. It offers a quick solution that’s advantageous to all parties involved, whether you are the buyer or the seller.
In this market, it’s an ideal time to buy a condo. Real estate auctions can get you better deals than you’d even get in this buyer’s market. (more…)
Is now a good time to buy a home in today’s real estate market? That is a question many people are asking themselves with the volatility in all kinds of markets today. What is a good investment? When should I make that investment? When should I get out of the market? When should I get in? Too many questions and not enough good answers and everyone have their own opinion about what has happened and what will happen. One thing for sure the experts don’t really know much more than the well informed customer. The old standby indicators no longer work as seen by the bubbles that have burst over the past couple of years and the swings in the housing and stock markets.
With today’s real estate market let me pose a few questions for you if you are thinking of buying a home or condo in the near future. How long are you going to stay? There is a rule of thumb out there that if you are only staying 2 years or less now may not be a good time to buy. The reasons are simple. It costs money to not only buy but to sell and most times you are not going to recoup your costs in less than 2 years. Everyone knows of sales commissions but that is only a part of the overall costs. Costs are not the only thing to think about as well. Most people rely on appreciation when they buy a home and move on to the next. How much appreciation have you seen in the last couple of years? Are you staying longer than the national average of seven years? If you are then buying is a good investment for you in almost any market. You will have time to accumulate equity and realize all the tax benefits from owning your own home, not to mention the pride of ownership which has been a staple of American life since this country was founded.
The real estate market today is possibly the easiest way for most people to accumulate wealth. Three out of four people today have more equity in their home than they have in retirement plans, stocks, mutual funds and savings. No one can guarantee appreciation but given time it generally does so think about how long you plan to stay and what is important to you and your family. Home ownership is a part of the American dream and sometimes dreams take precedence over everything else.
You are ready to buy a home! How exciting is that! An auction may be a great way to get your price and reduce the time and red tape of a traditional home purchase. Can you imagine moving into your new home in as little as 30 days. It can happen and we are going to give you a road map on how to do it.
I know your first question. How does an auction work? You have seen auctions on TV or may have even participated in an Ebay auction for smaller items but auctions all work basically the same way. The properties we make available to you are obtained from private sellers, banks or developers and most importantly to you are free and clear to close the day of the auction. That’s how you can close in so little time!
Picture this! You are in a room filled with people and the excitement is like an electric charge throughout the room. The auctioneer calls up the first property to be sold. Everyone is on the edge of their seats waiting to see what is about to happen. It is an absolute bid property which means no matter the final price the property is sold when the gavel goes down. Everyone is in anticipation of what the property will sell for and who walks away as the winning bidder. Only registered bidders with paddles can bid so don’t worry about scratching you ear or blinking – that only happens in the movies. If you want to bid, raise your paddle and the bid assistants in the room will help you through the process, making certain you know the current bid and that the auctioneer has acknowledged your price. But the auction is not over by any means because the auctioneer has not declared the item sold until the gavel goes down and bidding is closed. The auctioneer calls for the final bid, there is a silence in the room, finally the gavel goes down and applause and congratulations fill the room. You are now the proud ownerof your new home!!!
Auctions are thrilling! There is anticipation, excitement and reward for the winner bidders. They got a great deal on the home they want and best of all you will know in just a few minutes the home is yours and you will be moving in less than a month.
Selling your home can be a stressful process. Many people do not realize the work that goes into putting your home on the market. The reality usually sets in after the seller has met with a real estate agent and the agent has given them a different perspective on what the seller thought was the perfect home. It is very important to know some tips for selling your home.
Make sure to hire a reliable real estate agent. This means, someone who will work hard for you and be available to you when you need him/her. Also, see if you can get an agent through a referral. Start asking around and see what people have to say. This will give you confidence when choosing the right realtor.
You also want to make sure that you are not wasting any time on buyers who are just looking or are not interested. Too many times, sellers and agents spend many hours and a lot of energy trying to convince people to purchase when they are just not ready. Focus on the motivated buyers. Work with your agent to determine who the motivated buyers are. Maybe the buyer is on a deadline, this includes people who are relocating for a job, investors who are on tax deadlines, college students and staff who need to get in before the school year, etc. I think you get the point. Find out more about the buyers who are viewing your property and see what their situation is.
When putting your home on the market, it is a good idea to make sure that you price it to sell. A home that is priced too high for the market, will almost never sell! Make sure to price it low right off the bat. If you start high and do small price increases, you are just wasting time. Price it low, get some activity. If you do it right, you will price low and sell high!
It is always a good idea to have good curb appeal. This includes, sprucing up the landscaping, cleaning the gutters and touching up the paint. You want to keep the buyers safety in mind by making sure the stairs and walkways are clear and free of clutter. Speaking of free of clutter, always remember less is more. The less furniture and décor you have, the bigger the space feels. Having just the right amount, will give any place a cozy and spacious feel! Again consulting with a realtor when putting your home on the market would be a good first step as they will assist you with letting you know how to prepare before selling your home. Go to OwnACondo.com to learn more about putting your home on the market!
Virtual staging is a new innovative idea for all of the vacant homes on the market. Short sales and forecloses are slowly dominating the market, and most of these types of properties are vacant. Every property needs to look its best, even vacant properties. It is to no surprise that staging can actually sell a home faster than it normally would had it been a clean slate or even over cluttered; however, not everyone can afford to stage their home. To professionally stage a home, it can cost anywhere from a few hundred dollars to more than one thousand dollars. It is even more expensive to stage vacant properties because of the expense of the furniture rentals.
This is the reason why many Realtors are turning to virtual staging. What is virtual staging you may ask? Virtual staging is using computer technology to add furniture and other decor to the photos of their listings. This is an economical, inexpensive way to really show the potential of a vacant property. The average cost for virtual staging is approximately $225.00. In today’s market, because of the high amount of inventory, many people narrow their choices based on the online photos they see, so this small amount of money is well worth it.
Now there are different programs that are better than others, so it is very important to do your research to see which software offers the best product at the best cost. You can also use this product for your own home if you looking to remodel. There are programs that allow you to change wall colors, countertop textures, and type of flooring!
If you are going to use a virtual staging program, than it is important to make sure that you keep it ethical. The whole idea of virtual staging is not to deceive prospects but rather to help them envision what the home can look like if there were furniture in the space. Each agent needs to clearly state that the images are computer generated. In other words, where the virtually staged photos appear, you should include a small blub that the property has been virtually staged and that the property is actually vacant. Otherwise you risk violating the code of ethics, which states that you need to portray a true picture. As long as you set the right expectation for the prospective buyers then they will know what to expect when they walk in the home… a vacant unfurnished home!
Existing home sales in the Chicago area skyrocketed 33.3 percent in October 2009 over the same period last year, and year-over-year home sales were positive for the fourth consecutive month, in the Chicagoland Primary Metropolitan Statistical Area (PMSA), which takes in nine counties around Chicago.
In Illinois, the numbers were also very good, with a 24.2 percent increase over the previous year, and existing home sales were up 10.1 percent nationally as well.
In the Chicagoland PMSA, which includes Cook and eight collar counties, 7,286 single-family homes and condominiums sold in October, compared to 5,467 sold in October 2008. The median home sale price for the area was $190,000 in October 2009, down 15.6 percent from $225,000 in October 2008.
In Chicago alone, October totals for sales of single-family homes and condos were up 28.5 percent to 2,012, from 1,566 sold in October 2008. The city’s median home price in October was $215,000, down 18 percent from $262,250 the year before.
“We are seeing increased movement in both the single-family unattached homes, as well as in Chicago’s condo market,” said Genie Birch, president of the Chicago Association of Realtors®. “The first-time homebuyer tax credit has created a great incentive for buyers on the fence who are ready to invest in real estate. We are hopeful that the remainder of 2009 with the expanded and extended credits will continue to positively increase home sales in our market.”
“However,” she added, “continued review of lending policies is also necessary, in order to assist credit-worthy homebuyers in their investments.”
According to the Illinois Association of Realtors®, single-family home and condo sales in October 2009 reached 10,986 statewide, up from 8,846 the year before. The median price of the homes sold was down 7.6 percent from $170,000 in October 2008.
A major factor contributing to increased existing home sales is the $8,000 tax credit for first-time homebuyers, defined as people who have not owned in the past three years. Condos, townhomes and single-family houses are eligible. The tax credit was going to expire on Nov. 30 but industry officials hope the recent extension through April 30, 2010, and the addition of a $6,500 tax credit for existing homeowners, will continue the positive trend, and counteract rising foreclosure and unemployment rates.
“October’s extraordinary sales totals reflect home purchases by many buyers who were sitting on the sidelines of the housing market waiting out the economic downturn as well as more home sellers coming to terms with accurate pricing given the market conditions,” said Mike Onorato, president of the Illinois Association of Realtors®. “The first-time homebuyer tax credit clearly was a motivating factor and an effective market stimulus to reduce inventories and help stabilize prices. The good news is that the credit has been extended through April 2010 and expanded to now include potential move-up buyers.”
Contact OwnACondo.com today for more information about existing home sales, the tax credit, condo financing options and more.
