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

When you find a realtor to list your home, you will be given a document called the comparative market analysis, or the CMA. Here you are being shown what your competition will be in the market. You and your agent will use this tool to figure out where yours stands when compared to those around it.

Your property will be compared to those already on the market along with homes that have recently sold. This will allow you to determine the best asking price. Interested buyers will then use this same document to reduce their offers.

The CMA will contain relevant information buyers need to know. This will include: the square footage of your home, the number of bedrooms and bathrooms it contains, and when the property was built. Other details such as property tax information, existing amenities, and how to contact the listing agent will also be found here.

So how does this affect you the most? Knowing what your home is worth and where you stand within the current market will give you an idea of what you may be likely to make from the sale of your house.

Once you have this information, you can make important decisions like when to sell, what repairs need to be made before putting your home on the market, and the amount you plan to pay for a new home. The CMA can be quite valuable to you both as a seller and buyer because it provides necessary and relevant information.

There’s more to knowing the worth of your home than just the CMA. Have you ever looked at two homes containing the same features but that have two totally different asking prices? There are many reasons why one home might sell more than another with identical features. One reason for this is perception. How a home is perceived makes a huge difference when it comes to selling it. A house that is well-maintained and visually appealing to prospective buyers will have a much better chance of selling.

Buyers base a lot of decisions on emotion. Important factors that affect emotions are: curb appeal, interior decor, and window views. All of these factors play a key role in how your home will be perceived.

Home staging can make a significant difference when it comes to buyer perception. It’s all about the strategic placement of items in each room. For example, a particular room can look larger simply by the way it is arranged. Color schemes and proper use of space also have an impact on how a home is viewed.

You can influence the worth of your home simply by making necessary improvements and paying close attention to details. Talk to your agent about steps you can take to increase your property value.

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When selling your home, you may want to consider having it appraised first as this can place you ahead of others in your market. If your home is priced incorrectly, it could wind up staying on the market for much longer than is necessary. You might also sell your property for less than it is actually worth. You can avoid this by having it appraised. Below are five useful appraisal tips to help you get started and keep both situations from occurring.

Tip One: Be willing to spend between $300 and $400 for an appraisal. Yes it is an additional cost, but you will reap the benefits of knowing the worth of your home before ever putting it on the market. This information will be quite valuable when figuring out an asking price.

Tip Two: Go with a reputable appraiser. This is essential. Knowing you are working with a company or person who has a stellar reputation makes all the difference in the world. The company you choose should know the market well and have been in business for quite some time. Your local real estate agent may be able to provide a recommendation. Family and friends who have had their homes appraised may also know who you can call.

Tip Three: If you have had your home appraised but aren’t getting any lookers, consider having it done again. A second pricing may provide valuable information that will help you reprice the house. If you find the second appraisal amount matches the first, it may be time to investigate other reasons why the property simply isn’t attracting attention. It will, at the very least, aid you in identifying problems so you may fix them.

Tip Four: Pay attention to what the appraiser finds. There may be reasons why your home most likely won’t sell at the price you imagined it would. For example, the appraiser may say it would be worth more if some repairs were made. If this is the case, make them and try again. The home should be worth more if the repairs were substantial, and it may have a better chance of selling.

Tip Five: Understand the appraisal report. It can range from 2 to over 100 pages in length depending on what it actually contains. There you’ll find details of the home, a neighborhood description, and comparisons of properties similar to yours. You should also receive an evaluation of the current market for your area, information about problems with your property that will most likely affect the value, and an estimate of how long it may take before your home sells. Review all the information carefully and ask any questions you may have before placing your property on the market.

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As we move through the first quarter of 2013 and all the dust is finally settling from the fiscal cliff negations, it seems as though there is a little bounce on the commercial real estate world.  The bounce is happening in both the property sales arena and the property leasing arena which is good news for all those involved in the commercial real estate game.

One of the reasons we are seeing the bounce is because many larger companies are starting to loosen their purse strings a bit and allowing for expansion.  And as we all know when the larger companies start to expand that gives rise to the smaller mom and pop style businesses as well.  All of these businesses then start the up-tick of the overall economy and before we know it, the great recession will seem a distant memory.

When it comes to commercial property sales and purchases, now is a great time to jump in and purchase a property because the interest rates are still very favorable which makes owning a property a very good proposition for people looking to become landlords or for businesses looking to get out of leases and into ownership. 

On the leasing side of the game, it is a great time to already be a property owner because the overall open inventory level is shrinking everyday which means good spots are in demand and are garnering premium rent levels.   When property owners are making good money that is also good for their tenants because they tend to be a little less tight with the upkeep and renovation money.  And as any business owners know, a well-kept property often leads to more business for them.

Businesses looking for a new home would be wise to find something as quickly as possible before all the great spaces are gone.  While rents will most likely remain at favorable levels, many of the best properties will be snatched up quickly and those who are left behind will be stuck in less than desirable spaces. 

The forecast for the next few years seems to be positive across the board as long as nothing major happens in the markets to scare the public into thinking we are sinking back into a double dip recession.  Most major economists are predicting that we should see continued growth over the next three to five years which should give business owners the confidence they need to sign longer leases or purchase properties outright.

Commercial real estate brokers can look forward to a lot of busy days ahead searching for properties, working out offers, negotiating leases, and helping their clients close deals all across the area.  It has been a long time since the commercial market has been this good and with hard work and a little luck, it will stay good for many years to come.  

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We’ve all heard the stories about how demanding and outlandish some HOA’s can be.  While some of the demands and regulations put in place by HOA’s are designed to help maintain home values in the neighborhood, they may seem as a bit intrusive to some homeowners.  What many homeowners fail to take into consideration when looking for a new home is how living in an HOA residential neighborhood can impact their lives. 

This is why it is important for prospective homeowners to take into consideration the demands that living in an HOA residence involve.  If you are not familiar with the regulations and rules associated with the HOA in the area you are looking to purchase a home, you should become familiar with what you can expect.  If you feel that you will have trouble living up to the expectations put in place by an HOA, you should consider looking at homes outside of the neighborhood.  However, if you fall in love with a home that falls under HOA regulations, we are going to provide you with some helpful ways in which you can peacefully coexist with your HOA.

One of the first things that any homeowner should do is to completely read through all of the house rules and regulations enforced by your HOA.  These rules and guidelines will explain in detail any restrictions on how your home should look from the street.  This includes the color of the paint that you choose for your home, lawn and garden decorations, and in some cases the types of trees that you can plant in your yard.  The more familiar you become with these rules and regulations, the easier it will be for you to make decisions that will not require the HOA to contact you.  There is nothing worse than pulling into your driveway and seeing a notice from the HOA taped to your door.

The next thing that any prospective home buyer should review, are the financials of the HOA.  You should be skeptical of any HOA that has trouble covering their monthly expenses.  Because of the recent housing crisis, many HOA’s have been forced to foreclose on homeowners who were behind on their HOA fees.  With so many vacant homes in the neighborhood, the HOA may be experiencing financial problems of their own.  If you are not comfortable with the financial state of the HOA in the neighborhood you’re interested in, you may be wise to begin searching for homes elsewhere.  HOA’s were designed to protect and maintain the dignity of a neighborhood, but if you are not comfortable with all of the rules and requirements associated with HOA properties, you may be better off viewing homes in neighborhoods without an HOA.

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When you are planning on purchasing a home one of the most important decisions is the neighborhood where the home is located.  You may ask your real estate agent for advice, but they are prohibited from giving you an answer due to the fair housing laws.  They can simply provide you with a standard suggestion that you perform your own research into the safety of a neighborhood.  Okay, so you may have heard this statement and are wondering how you can research the safety of a neighborhood. 

One of the best indicators you have access to are your instincts.  If you tour a neighborhood and develop feelings of uneasiness or something strikes you as out of place, you can then conduct further research into crime statistics and other data that can provide you with a clearer idea as to the nature and safety of a particular area you are interested in.  Another way to get a feel for a neighborhood is to drive through it at various time of the day.  This will provide you with an idea as to what types of people hang out after dark and how much traffic specific streets experience.  You can gain a lot of valuable information by performing these simple tasks.

Another great resource that can help you determine the safety of a neighborhood is to speak with neighbors.  Neighbors are one of the best resources you can have when it comes to deciding on purchasing a home in a particular area.  They can share whether they believe the streets are safe or if there are any reasons why you should avoid moving into the neighborhood.  These people have spent many years living in the area you are considering; they have developed the knowledge to help you make an informed decision.

If the neighborhood that you are interested in features any playgrounds or parks you may want to look closely at the condition that they are in.  If you notice that the playground equipment is not in the best condition and the park is littered with trash it is likely because the park is not properly maintained.  This is a good indication as to how well and regular maintenance is performed in the neighborhood.  If a playground is in good shape, it is an indication that the neighborhood is actively being monitored and any conditions are taken care of relatively efficiently.

There are a number of ways in which you can ensure the safety of a neighborhood before you purchase a home in the area.  It is recommended that you conduct this research prior to placing an offer on a home.  This is also a great way to narrow down your search once you locate a neighborhood that you find to be appealing to both you and your family.

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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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A home loan can be quite stressful to secure. Acquiring a new property brings with it a lot of responsibility and sometimes finding the finances to cover it can seem impossible. There are many options where home loans are concerned and it’s a good idea to do your homework carefully before making any final decisions.

The best way to secure a home loan in 2013 is to make the necessary preparations ahead of time. While it isn’t necessary to make a down payment on a property, it’s always a great idea to consider. Making a down payment will decrease the amount of your monthly house payments. You’ll also own that much less on your home once you have paid down on it.

Save all the money you can. Buying a home isn’t a decision you make quickly. You’ve probably been considering it for quite some time. The first step is to make a list of all the projected expenses you think might be relevant. There are, of course, always some you didn’t think of or even know about, but you’ll be able to get the basics down on paper.

Know your finances. Consider any debts you currently have and figure out what it would take to pay them back. Remember, you will need to have enough money left over each month to pay on your debts so this should factor into the home buying decision.

Figure out how much you may have to spend on your new home. If you already own property you plan to sell in the near future, you will be able to use the money made from that sale to pay down on your new home, or perhaps to buy it outright if you are extremely fortunate. If not, a lot of saving is in store.

Get pre-approved. Before viewing properties, it is a good idea to talk to a mortgage company to find out around how much you’ll have to spend. They can review all your credit information and amount of debt you have incurred and give you a figure. This will make the process of viewing homes much easier. If you already know how much you’ll be able to spend, you can look at properties that fall only within that price range.

Think conservatively. Don’t spend at the top of your price range. Instead, make sure you still have some money left over at the end of it all. Save this money for the next property venture or to pay off debt. If your monthly house payments are at the top of your range, you may run into difficulty in the future when attempting to make them. Planning for financial issues that may or may not occur will serve you well should the need for money ever arise.

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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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Many parts of the country have begun to experience an improvement in their real estate markets.  Many people have begun purchasing homes again and have determined that it is now cheaper to own a home than it is to rent.  Sellers have also started noticing that values are increasing and their once low valued home is increasing in value.  In order for these sellers to have the opportunity to get their asking price, and in some cases more is to understand today’s buyers.

The recent real estate crisis has had an impact on buyers searching for a home today.  Many of them are experienced and had the foresight to get out of the market when the crisis was just hitting.  Now that the dust has started to settle, they are once again looking at available homes.  These types of sellers saw what was happening in the market and were reluctant to purchase a home just to find out in six months that it has a lower value than the day they purchased it.  They didn’t want to purchase  home at a great price simply to find out that they too, were now underwater on their loan.

No matter where these buyers are located, there is one common thread shared among them all.  They believe the time is right to buy.  These are the buyers who have been carefully paying attention to the market and have done their research.  They know that the market is on the upswing and that if they are going to buy a home they should do so now.  These potential buyers may have been renting during the housing crisis and have come to realize that it may be cheaper for them to purchase a home instead of renewing their lease.  These types of buyers are more educated and knowledgeable about the current state of the market and how lower interest rates can keep their payments at a level they can easily manage.

Many of the homebuyers who are looking at homes today are willing to pay a bit more in order to guarantee that they end up with the home they love.  They are commonly overlooking small defects in the property in order to have their offer accepted by the owner.  This mentality combined with low interest rates that are still being offered and the abundance of available homes on the market is the beginning of a seller’s market.  This is the ideal time for sellers to consider listing their home.

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