DEAN GRAZIOSI: DEAN GRAZIOSI REVIEW – REAL ESTATE FEED BY DEAN GRAZIOSI

In recent months the real estate market has been steadily improving, while that is a great sign for those looking to sell their home, it means that there is more competition for buyers.  With more buyers ready to purchase a home, buyers should be prepared for the chance that they may become involved in a bidding war.  A bidding war takes place when more than one party is interested in a particular home.  While it is eventually up to the seller which offer they are willing to accept, there are some things you can do to help tip the odds in your favor.

• Be Pre-approved – Sellers are more likely to take an offer from someone who has already been approved by a lender.  They would rather be guaranteed that the buyer they choose has the money to back up their offer over one that still has to be approved by a lender for the amount that they offered.
• Cash On Hand – If you have made the seller a cash offer, it is important that you have that cash ready to hand over should the buyer choose your offer over another.  Anytime you make a cash offer, you should only do so if you already have the cash on hand.  If the cash amount is not the full price of the home, but rather a down payment, you should always have those funds available.
• Act Fast – In order for you to compete against other buyers looking at the same home, it is important that you make an offer as soon as possible.  This is especially true if the home has recently been listed.  Some sellers will often take the first offer that they receive over another; this is why you shouldn’t hesitate when it comes to making an offer on a home that you are interested in.
• Have An Inspector Ready – Once you submit an offer on a home and it is accepted, you should contact a reputable home inspector and schedule a time for them to look at the property.  Having the home inspected will ensure that there are no major problems with the foundation or other areas of the home that you may have missed during the walk through.  An inspection can save you a lot of time and stress if these problems aren’t found until after the closing has taken place.

These are only a few of the ways that you can help influence sellers to choose your offer over another.  Bidding wars can be stressful, by using some of these negotiating tactics, you may be able to ensure that your offer is the winning offer and you end up with the home of your dreams.

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When you finally find a property that you have truly fallen in love with, it’s easy for anyone to waive the need for a home inspection. However, by doing so you may end up with repairs or issues you are not financially prepared for.

When setting up a home inspection it is importation to know what the inspector will be looking at.

When an inspector takes a look at the exterior of a property they will take a look at the condition of the roof. A roof can be a very expensive repair, and the inspector will make sure that there are no loose shingles, cracks or damage to the vents, as well as the condition of the gutter system.

The inspector will take a look at the conditions of both the foundation and grading of the slope. The foundation is checked for any evidence of cracks or settling and the slope is checked to make sure that it will allow water to flow away from the home’s foundation.

The exterior walls are inspected for any problems such as missing siding, or cracks as well as any signs of termite damage. They may make a recommendation to have a pest inspection performed if any signs of damage are found to be caused by insects.

The exterior inspection will also include the condition of the garage, by checking the garage door opener; and making sure that it is well ventilated.

If the inspector does find a condition that is of concern they will advise you of what will be necessary to repair the problem or make a further recommendation to obtain further information or more in depth inspections by a specialist.

When it comes to checking the interior of the property an inspector will take a look at the electrical wiring system by testing the outlets and the electrical panel for any safety issues that could be a fire hazard.

They will also perform a check of the hot water heater as well as the HVAC system to make sure that they are working properly and if necessary they will recommend any needed repairs or maintenance. They also will advise you of how many years are left on their life expectancy as to the overall condition.

Something not always thought of by a homeowner when it comes to an inspection is the condition of the appliances that may be included in the sale of the property. You may need to ask an inspector to check on the condition of your stove and refrigerator or other appliances so that you can plan for the replacement when it becomes necessary.

Another interior inspection that is done is to the plumbing system to make sure that there are no visible signs of leaking from under sinks or pipes that are visible. They may also suggest a second inspection be done if a house is older to find out if the pipes are in need of replacement. That secondary inspection will be able to tell you whether they are to code and if they will need to be replaced as well as to the estimated cost to replace them.

If the inspector locates any signs of moisture or water damage they should also recommend a further inspection to obtain a mold test. This also could be due to poor ventilation issues in the bathroom or other areas requiring ventilation. 

The cost of having a home inspection is insignificant to actually finding any damages that you are not able to repair or replace immediately. It will also give you the opportunity to be able to decide if the issues found need to be addressed prior to actually closing on the property. If something comes up at the time of the inspection, it can also be the perfect time for a buyer to negotiate a reasonable cost that could be split between both buyer and seller.

The most important thing to remember, even though you have fallen in love with a property, is that there may be hidden problems that can be revealed by obtaining a home inspection report. It’s better to know now then to know later that you should have walked away from buying the house of your dreams.

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Mortgage interest rates are the lowest they have been in 60 years, and there are plenty of affordable homes available, so why hasn’t the market improved more than it has.  It could be because the market is still burdened by the high unemployment rates, tight credit and more foreclosures that continue to drag the already struggling market even lower. 

Since the bubble burst in 2006, we have witnessed median prices of existing homes fall by 27%, with homeowners in California being hit the hardest.  During this time many homeowners discovered that they were now underwater on their mortgages.  This leaves them stuck in their situation, because they are not able to sell their home and walk away with enough money to purchase another one.  This forces them to remain in their home, virtually stuck and unable to move forward unless they ask their lender to approve a short sale.

There is good news for homeowners who are underwater on their mortgage, prices and home values are steadily on the rise.  Median home prices have increased 3.6% last year, and in the harder hit state of California they experienced an increase of 5%.  While these numbers and the amount of homes that were sold are still lower than they were in 2009, they are steadily increasing.  What this means for homeowners is that if they continue to remain patient, their homes will likely increase in value allowing them to sell or simply be worth what the owner believes they should be.

The recovery process may seem like it is taking an unbelievably long time, it is said that a true recovery will take between five to seven years.  It may take longer for some areas to recover fully compared to others, but it is happening.  The driving force behind the current upswing in the market is the sales of foreclosures and short sales.  These types of homes have accounted for approximately 1/3 of home sales. 

While the market may not have improved as quickly as many had hoped, it is continuing to make strides in the right direction.  We can expect to see more increases in home values as well as more people buying homes as it improves.  The improvement in the market that many have been hoping for is within our grasp.  We will soon begin to notice that our homes are once again increasing in value and that homes are selling for more than they were a year ago.  This is all good news, but there is still more on the way.

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Unless you are an unusually calm person, there may be times during the sale of your home when the process has you a little on edge. In fact, there may be times when you are completely panicked by the thought that the sale will not go as you want it to. It is a mistake to let yourself become desperate, but how can you avoid the panic? Here are a few tips.

1. Plan Ahead But Do Not Live Ahead

There are so many details in selling a home, that it is definitely wise to make plans all along the way. You may need to set up appointments with certain professionals like inspectors, appraisers and remodelers. What you should not do is get so engrossed in what is going to happen that you lose your way in what is happening today. Make your plans, and then follow them one step at a time. Only revisit your decisions when events or situations have changed things.

2. Do Not Bet the Farm on Any One Buyer

Sometimes the first potential buyer to approach a seller will actually end up purchasing the house. More often, there will be several people look at and consider buying your home. If you have your heart set on selling to the first person who comes along, you may find yourself obsessing about everything the potential buyer says and does. When you come to the realization that each potential buyer is just one fish in the sea, you will find yourself relaxing more because you will no longer feel dependent on one particular person to buy your house.

3. Take Time Off from Thinking About the Sale

Too often, it is easy to get so wrapped up in the sale of your home that you can think of nothing else. If you go out to a restaurant for a meal, steer the dinner conversation away from the home sale. Take in a movie, a sports event or a concert. The sale of your home will certainly be a large part of your life, but it does not have to be everything. Thinking of other things regularly will help you remain fresh and focused when it is truly time to deal with the details of the sale.

4. Do Your Homework

Even though it is good to avoid obsessing about the sale of your home, it is important to know what you are doing. Too little information can make you as nervous as letting the sale take over your life. Strike a balance. When you have the opportunity, learn as much as you can about home sales and your own case in particular. Then, after you have studied the situation thoroughly, sit back, relax and trust that the knowledge will be there when you need it.

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Replacing windows can be a bit confusing to homeowners, should they just replace the one that needs attention or should all of the windows be replaced at the same time.  This is also the time that many homeowners may decide to expand the size of their existing windows.  Whatever the case may be, we are going to present you with some helpful advice about replacing the windows in your home.  From window glazing to tints we are going to explain all of your options when it comes to window replacements.

If you are concerned with energy efficiency, one of the first things you should be concerned with is the type of window glazing that was used.  Energy efficient windows often have two layers of glass and are known as dual-pane or double-pane windows.  The small area between the two layers of glass create a barrier to heat flow.  If you would like more to improve this area you may want to choose a triple-glazed window.  When these windows are constructed the area between the glass layers are often filled with a gas that reduces the amount of heat that flows through the windows. 

The next thing that you should take into consideration when choosing windows is the type of tint, if any, is applied.  A reflective film applied to the window will block a lot of the radiant energy that hits the window.  This will also help keep the interior of your home cooler than if you use a window that doesn’t have this film applied.  While this film reduces heat, it also blocks most of the visible light that is allowed to come in through the window.  This may end up causing you to use more electric lights to make up for the amount of natural light that is lost by the tint.

The final thing to consider when purchasing new windows is how it is constructed.  The material used to create the window frame can affect how efficient the window will be.  Windows that feature insulation filled vinyl frames and fiberglass frames are often the better choice.  They tend to perform better than wood or wood-clad vinyl windows that are not as well insulated.  Windows that use an aluminum or steel frame are often the worst choices when it comes to windows.

There are many things to take into consideration when choosing windows, but if you keep some of the information we have provided you with, you are likely to make a better educated choice when choosing your next set of windows.

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If you are considering the purchase of a home, it may be to your advantage to look at foreclosure properties. While they aren’t always found easily, there are ways to track them down. Below are a few ideas that might prove helpful when beginning your search.

There are most likely local real estate agents who specialize in selling foreclosure properties in your area. Finding such an agent  is the first step to tracking them down quickly. The agent will be able to provide all the information you need to know about the available properties. Some agents have become experts in foreclosed properties and advertise this skill in local real estate publications. Such agents often work regularly with banks and seek buyers who wish to purchase a foreclosed property.

If you have never purchased a foreclosed property before, an experienced agent will also be able to guide you through the process. Talking to one is a very good idea because the process of buying a foreclosed property can be quite complicated. The purchase of such properties is highly competitive in some markets, so seeking advice will serve you very well.

Learn all you can about how foreclosures work. This is also a very important step in the home buying process if this is the type of property you wish to purchase. Again, if you’ve never bought a foreclosed home before, you would be best to seek out advice. This will keep you from making a bad decision you can’t reverse and winding up with a property you can’t get rid of on down the line.

Talk to others who have purchased foreclosure properties in the past. Before making such a decision, it may be a good idea to find out what experiences those around you have had in your particular real estate market.

Consider all foreclosure properties you find carefully. If you don’t have the money to sink into fixing up a home, the purchase of a foreclosure property might not be for you. This is not to say all foreclosures need remodeling, but some will and it’s important to consider this before making any decisions.

Look at foreclosure properties in your area online. Often times, people who really need to get rid of a home very quickly will post ads via the Internet. Be careful when searching. Write down a list of properties and ask your agent about them. It’s always better to have someone who knows the process and market research them. This will help you weed through the bad and find the good. Knowing what you are getting yourself into will enable you to make a good decision in the end and will help the process go a lot smoother.

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Everyone knows that real estate can be a wise investment, especially with so many available properties on the market.  But there are some things you should know before purchasing your first investment property.  What we are going to do is explain why some types of properties make better investments than others.  In order for you to make any profit when investing in real estate it is important that you choose properties that are less risky than others.  Below we are listing some of the best types of investment properties that you should definitely consider.

• Properties That Require Little Work – With so many vacant homes on the market many people are choosing to purchase homes that need some work.  While this may save you some money on the purchase price, it may end up costing you more later on.  If you are constantly putting money into the property, your level of profit drops.  This is why when purchasing an investment property you should choose one that is in relatively good shape.
• Properties Already Occupied – Many landlords have experienced the same type of real estate problems as many home owners.  They may find that they are currently underwater on their rental home and they may choose to sell it simply to be rid of the headache.  In many of these cases the homes for sale are already occupied by tenants.  Purchasing a home that is already occupied will save you a lot of time and money prepping the home and then listing it for rent.  Coming into this type of situation allows for you to start making money on your investment immediately.
• Choose A Moderately Priced Home – When purchasing your first investment property you should begin with a property that is at a price you can afford.  Do not go into the situation thinking that if you purchase a more expensive home you will automatically make more profit.  Choosing a home in an in demand area will offer you the ability to rent it quickly and make enough money to cover the house payment in addition to a small profit for you each month.
• Plan Ahead – When purchasing investment properties do not go into the situation thinking that you are going to hold on to it for a while and then sell it for a profit.  The best way to make a profit on your investment is to hold on to that property for a long time.  Holding onto your investment properties is a great way to plan a secure future.  Do not invest in properties that you are not planning on owning for years.  The longer you own a property, the better your chances are of making a large profit when it comes time to sell.

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When it comes to finding a new home, the neighborhood is a crucial factor. You want to feel safe in your new environment and live in a place that truly feels like home.

The type of neighborhood you choose will depend on your specific needs and desires. For example, if you wish to be involved in the city life, you might choose a neighborhood with plenty of shopping and restaurant options. If, on the other hand, you wish to start a family, you will most likely choose a neighborhood where other families live: an area with yards, garages, and maybe even a community swimming pool. No matter what type of neighborhood you are looking for, here are some tips that will help you find it.

Explore the neighborhoods in the areas where you want to live. You’ve probably given some thought to area. Maybe you want to be closer to work so as to shorten the commute. Perhaps you want to live in a quiet neighborhood located in a certain school district. No matter the specifics, chances are you have a few areas already picked out. Drive around these areas and make a note of the neighborhoods that would meet your needs. Then you will be able to view homes for sale in those neighborhoods.

Walk around in different neighborhoods. This will enable you to explore them on foot. You can see the community areas, parks, and general landscaping and exterior of the homes. Talk to people who live in the neighborhoods. Ask them how long they’ve lived there and find out how they feel about the place they call home. You’ll learn all sorts of information this way.

Other factors when choosing a neighborhood will include: the crime rate, the surrounding schools, how much a home is likely to appreciate, and your specific needs. .

The crime rate information can be obtained by calling the police department in that area. You can learn more about the surrounding schools by talking to other families in the area and by contacting the local school district or education department. Your realtor can point you in the right direction where home appreciation is concerned.

List your specific needs on paper. You’ll be able to get your questions answered more quickly by making a list because you won’t forget anything.

A good realtor should be familiar with all the area neighborhoods. He or she can tell you about all their strengths and weaknesses.

Even if you don’t have school-age children, you will do well to buy a home in an area with a good school district. If you ever do have children this will be a distinct advantage because you won’t be forced to move to find good schools. Even if you won’t have children, the great schools in your area may help you sell your home when it comes time to do so. Families with school-age children will be more likely to look at your home if it is in a neighborhood with good schools. In fact, this will probably be a top priority. Neighborhoods with good schools usually attract a lot of buyers.

Consider the neighborhood carefully. Write down your preferences and begin looking there.

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Buying a home can be a great adventure. It is a time to explore all options and find the location that is best suited to the lifestyle you desire. Making the choice between city real estate and suburban real estate is a decision best made early to save on house-hunting time. Here are eight features to consider when making your choice.

1.     Amenities

The city provides a wealth of exciting entertainment and handy conveniences. There is a wider variety of restaurants, bars, shopping and a long list of readily available services. Many people who love the idea of going to different places frequently will enjoy the variety found in the city. However, suburbs have at least most of these amenities on a limited scale. Would you rather go to a different restaurant every time you go out, or do you enjoy the intimacy of a local eating establishment? The choice is yours when you choose city or suburb.

2.     Elbow Room

Some people find it more relaxing and enjoyable to live in a spacious house with a big yard. These buyers may be happiest living in the suburbs. The city has many advantages, but plenty of elbow room is rarely one of them.

3.     Transportation

Cities offer a variety of transportation opportunities. Take the bus, a cab or a train, and you can cut down on fuel costs. Take a limo for the ultimate in luxury. However, many people prefer to drive their own cars anyway, and suburban real estate is a viable option for those people.

4.     Cultural Venues

Do you like to surround yourself with cultural venues? Perhaps you would like to live in the city where you can attend concerts, ballet performances, operas, theatrical productions and movies. Of course, living in the suburbs does not mean you cannot make a trip into the city for special events; it is just more time-consuming and inconvenient.

5.     Social Life

Choosing between city and suburbs does not have to be a choice between having a social life or not. It simply determines what type of social life is available to you. In city life, socializing may consist of meeting friends for drinks or coffee, attending block parties, exchanging pleasantries with other apartment or condo dwellers, or having friends to your place. Suburban neighborhoods may be more conducive to church activities, family time or casual get-togethers on the back patio.

6.     Employment

Employment is a major consideration for most homebuyers. They want to be where the jobs are. Before you make your decision between city real estate or suburban real estate, look at the job situation in your field and in your area.

7.     Family

Large families generally prefer to live in the suburbs. There is more room for children to play, the streets are safer, and schools may be better. Couples, individuals and small families often like the excitement of the city more.

8.     Price

The choice between city real estate and suburban real estate does not necessarily limit your price range. There are both upscale and inexpensive homes in both types of locations. Before you make your selection, learn about the city neighborhoods and suburban areas.

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When you are buying a property as an investment rather than as a place to live there are many things you should consider. First, you have to decide how you are going to get a return on that investment. Are you going to sell it for a profit? Or rent it out? In this economy, it is best to plan on renting the property, at least until the housing markets go back up and you can get a decent return on your investment.

The first thing to look at is the price of the property. If your mortgage payments are going to be more than you can rent the house for, it is not a good investment. If the price of the property is as much or more than the current market value, you should also avoid the property. This is basically common sense. You want an immediate return on your investment if at all possible. Making sure the price is reasonable or very good will also make it easier to get financing for your real estate investment.

If the property you are buying needs some work, you might want to bring a contractor with you to look at the house before you make a commitment to an offer. The price might seem good, but you don’t really know how good it is until you have an estimate of how much it is going to cost you to repair the house and get it ready to sell or rent. You want to make sure that the total cost of the property is going to be worth the investment. You may also need to consider whether or not you can get financing to get the work done in a timely manner. Sometimes it is difficult to get a mortgage for an amount above and beyond the price of the house.

Location is also a big factor in choosing a real estate investment. Even if you get the property for well below market value, if you cannot find a buyer or renter for the property it will profit you nothing. Avoid poor neighborhoods or those with high crime rates. Look for good neighborhoods with good school districts.

You also want to make sure that you are choosing a property that will appeal to the masses. Just because you think a home is unique and has sales appeal doesn’t mean that someone else will think the same thing and be willing to give you money for it when the time comes. It is recommended that you get the opinion of trusted friends and family or business partners before making a purchase decision. After all, if you can’t unload the house later, it is not much of an investment.

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