Archive for the ‘LIBRARY’ Category
By Marion Brooks - NBCChicago.com
We’ve been hearing for months that the housing market is lousy. There’s 18 months worth of inventory out there and houses, depending on where they are, can sit on the market for as long as 8 months to a year, experts said.
Here’s what some real estate agents identify as the five worst mistakes you can make in a declining market:
5: Not hiring a professional real estate agent. "Ninety-five percent of the people that are purchasing are working with a buyer’s agent. If you do for sale by owner, by yourself you are eliminating that 95 percent of the market," said Artrice Clark, of Keller Williams Gold Coast. Citicondo.com’s Patrick Schell said that only 2 percent of successful home sales are For Sale By Owner. "It’s a numbers game," he said.
4: Not maximizing your marketing — particularly on the Internet. Eighty to 90 percent of buyers start their search online, according to Roger Lautt, of WeSellChicago.com. Lautt — a 25-year real
estate veteran — also stressed the use and quality of photos. "I will not put something on the MLS (Multiple Listing Service) until I have all the photos … people love photos and a number of those people may not go back to look it up again because it has no photos."
3: Not making your home accessible. When a seller has trouble making appointments, "there is so much more inventory we can look at," Schell said. "If a property isn’t accessible and somebody makes a request to see it, and you aren’t able to show it to them, it’s quite likely that they aren’t going to come back," Lautt added.
2: Not considering your home’s condition. Declutter, depersonalize and fix any problems. A stager can be a big help, too. Frank Riordan, whose town home is at 2501 N. Wayne in Lincoln Park, didn’t believe in staging at first, but changed his mind. "It shows wonderfully, and the staging does help make it look better," he said. Rita Rodgers, at 2825 N. Mozart in Logan Square, focused on the decluttering project her agent Roger Lautt recommended. She boxed her personal items and stored them in her basement. She also spent $15,000 on fix-ups including a major overhaul to her hallway entry. "Roger said to me you have a real problem with your hallway. People make up their minds in the first 30 seconds, and I was stunned! So I had the whole hallway re-done," Rodgers said.
1: Not making sure the price is right. If your property is overpriced, you’ll drive away buyers — some may not even come and take a look, realtors said. "The market is determined by what people have paid for similar houses like yours within that last 3- to 6- month period," Artrice Clark said. Frank Riordan thought he’d priced his townhouse correctly, but it’s been on the market now since last March. Now, after several price reductions, he feels he’s really learned a real estate lesson the hard way. "I really wish that we had dropped the price quicker, " he said. "I hope that we are at the point where it is aggressive enough for the market to sell."
As an incentive, Riordon is including a 50-inch flat screen TV with the purchase price. His agent Patrick Schell is offering the buyer’s agents a cruise.
It’s a great time to be a buyer.
by BJ LeGrand Cockrell
I’m often asked, "BJ, what’s happening with the real estate market in Jacksonville and North Florida?" It’s a common question among homeowners nationwide.
Unless you’ve been hibernating, you’re aware of the crazy real estate market we’ve experienced in the last 7 to 10 years. Profits soared, people made lots of money on their homes and life was riding on a cloud in the residential market. But, with the help of the media, you bet the proverbial "bubble has burst" and not a moment too soon. For way too long our real estate market has been an over-inflated hot air balloon with prices soaring out of sight, waiting to exhaust itself.
We have seen a steady decline in pricing since the end of the summer in 2006, and our inventory in Jacksonville has significantly increased. So much of the public’s perception of the market has been media driven. People perceive this as a bad market, but it’s a more normal market, self-correcting, and pricing is more reasonable. The time for a home to be on the market now is much more in line with the early ’90s when real estate moved at a slower pace. This allows buyers the time to make better decisions.
Pricing is surely one of the most important pieces of the puzzle for sellers today. The media’s hype about the market had scared many buyers out of the market but this is interesting because the interest rates on money have remained historically low, and we have seen little change nationally in the median home price. Buyers had been on the fence for so long waiting to see what’s happening in the market so 2008 has seen an increase in activity.
Without a doubt, this is a great time to buy property. How many times have you said to someone…"I wish I had bought property back years ago when I could have gotten a great deal"? Well, if you wait too long you’ll be kicking yourself again for not acting on that hindsight. So, what are you waiting for? Buy now so you don’t regret it later!
Barbara "BJ" LeGrand Cockrell attended her first training in real estate in 1982 and holds a masters degree in real estate investing, is a licensed real estate agent with Integrity Realty, and markets information products about real estate. A native of Northeast Florida, she is passionate about helping people find solutions for their real estate needs.
Real Estate – The Hidden Investment
by Clinton Douglas IV
With REITs and 1031 Exchanges, real estate investing can be confusing landscape. But It’s also a fun and challenging opportunity. What exactly is it, and why has it made so many millionaires in this latest boom?
Anytime you purchase real estate for a profit, you’re participating in real estate investing. Many individuals have made it a full-time career, though anyone can become an investor and still keep their day job. But like any investment, be that stocks, bonds or business ventures, you’re taking a risk. Real Estate being such a costly investment, your risk can be substantially greater. Those willing to ride the tide and stay calm through the industry’s ups and downs have been known to earn substantial profits.
Real Estate investors typically fall into two categories:
1.) Those who buy property at low or below market prices, fix this property up and sell it for a profit 2.) Those who buy property to lease for ongoing revenue
The first group of investors tend to seek out foreclosures or fixer-uppers, urgent sales due to death, divorce or job transfers, spending between six months to a year making necessary repairs and high-yielding cosmetic improvements from curb appeal to completely new bathrooms and kitchens, porches and paint. When the property hits the market again, these investors strive to not only recoup the expense of the purchase and renovation expense, but also reap a sizable profit for their time and effort. The second type of investors often find themselves in the role of property manager, collecting rents, ensuring property maintenance and ongoing tenancy. This may include residential or commercial property leasing.
The real estate industry tends to be a relatively safe, long-term investment with predictable profitability potential. If you’re looking to cash in, watch the market and do your homework. Then give it a try.
Clinton Douglas IV, a young savvy entrepreneur who writes articles about his love with real estate. Clinton acquired his first single family home in 2002, which launched his current real estate career after leaving the US Army as a Staff Sergeant in 2008. Clinton served two tours of duty in Iraq and has over 14 years of honorable service.
When it comes to investing, everybody has certain goals and aspirations. However, we have found that there are certain guidelines every aspiring real estate investor needs to know:
1. Compare Property Values and Rents
Financial statistics only go so far; the best measure of a property’s market value is often the sale 
prices of nearby properties. The same holds true for area rents. A low price can often be justified by a reasonable rent; renters who can afford a high rent can afford to buy instead, so reasonably priced rent is a need.
2. Be careful - Tax laws may change
Don’t base your tax investment on current tax laws. The tax code is constantly changing, and a good investment is a good investment regardless of the tax code. The right property with the right financing is what you should look for as an investor.
3. Specialize in something you Know
Start in a market segment you know. Whether you focus on fixer-uppers, foreclosures, starter homes, low-down payment properties, condominiums, or small apartment buildings, you’ll benefit from experience by specializing in one aspect of investment real estate properties.
4. Know the Costs going in!
Know the financial statements inside out. What are operating expenses? What are loan payments? Vacancy costs? Taxes? What does the cash flow statement look like? These are key issues that must be addressed before making a solid investment.
5. Know where your tenants are coming from
If the last rent increase was recent, your tenants may be considering a move. If tenants have a short-term lease, they may be living there simply to attract unsuspecting buyers. It is also important to collect the tenants’ security deposits at closing.
6. Assess the tax situation
Taxes are an integral part of successful real estate investing, and they often make the difference between a positive cash flow and a negative one. Know the tax situation, and see how it can be manipulated to your advantage. It may be a good idea to consult a tax advisor.
7. Investigate insurance coverage
If seller’s coverage is based on lower-than-current replacement value, your insurance cost may increase when you pay a higher purchase price.
8. Confirm Utility Costs
Ask the local utilities to verify recent utility expenses, especially
if any of these costs are included in your tenant’s rent.
9. Consult Your Accountant
Taxation is a key element of successful real estate investing, so be sure to find an accountant who is well-versed with the constantly evolving tax code.
10. Inspect!
Make sure that you always perform a thorough inspection of the property before buying it. Never, ever buy any property without at least examining the site. In some cases, hiring professional inspectors to examine the structural mechanical system may be a sound investment.
