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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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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Our nation continues to feel the pressure of an intense recession, and the housing market and the number of home foreclosures are seeing an ever increasing rise. Our government has made some concessions from both a national as well as state wide level to assist homeowner’s who are facing the threat of foreclosure on their home.

If you are feeling the pressure of the possibility of having your home go under foreclosure, know that there are now many programs are now in place to assist homeowners who are struggling with their mortgage payments. The U.S. Treasury Department and HUD are administrating programs that are designed to assist those facing a decision about their circumstances.

Now is the time not to panic, it is a time for you as a homeowner to become knowledgeable about the laws that are governed and how the process of foreclosure works within your state. Do your homework, find out the timelines as well as the rules that your state follows when it comes to foreclosures. The average foreclosure timeline will be in 6 stages and it is a very fast process

1.     The first stage is Pre-lien which happens within 30 days of default

2.     Lien which then happens within the next 30 days following the Pre-lien

3.     The next stage is when you receive what is known as receiving a Notice of Default

This stage will usually happen within 90 days of the foreclosure process

4.     After receiving your Notice of Default within 21-25 days you will then receive a notice of sale

5.     The property then goes into what is known as a Trustee Sale

6.     If the property is unsold due to an unsuccessful foreclosure auction it then becomes what is known as an REO property which is a Real Estate Owned or REO property. This is when the bank or mortgage company is now retains full ownership of the property.

The good news is that there are options available to you, and there are steps you should take to work through any decision you will need to make before you are in the full foreclosure process.

-       Understand what happened and how you got to the point of struggling to make your mortgage payments and then come up with your solution. Your solution should be attainable.

-       Review your income and budget, as well as your original load document. Go through your expenses and consider how your monthly spending may be affecting your ability to make your mortgage payment. Be realistic about your situation as well as your total financial situation. 

-       Consider consulting with a housing counselor, but choose one that is reputable. They should be vetted by the U.S. Department of Housing and Urban Development. A counselor may be able to save you some very valuable time by guiding you through the necessary steps you will need to take to prevent your home from going into foreclosure.

-       Contact your lender; the sooner you do so the better off you will be. They will be able to assess your situation and offer you a payment solution. You should discuss whether your situation is only temporary or if they may be long term with your lender. Your lender will then give you either a deadline to make up your missed payments or they could possibly be able to freeze your mortgage payments until you can resume payments. They can also tell you if you will qualify for a loan modification by extending your payments or even change your interest rate which is a good thing if you are going from an adjustable to a fixed rate loan. The key to working with your lender directly is to make sure that the solution is manageable. Often a mortgagor is in a panic and will agree to anything that sounds good to save their home. However, keep in mind that if you agree to a repayment you may be agreeing to an increase in your monthly loan payment which will only intensify the problem.

-       If your lender is unwilling to work with you or they are unable to find the best solution that both can live with, you will then need to hire a lawyer. If you are unable to afford hiring your own lawyer, many communities offer local homeowners some form of free legal assistance. If your community does not offer any of these services contact the National Association of Consumer Advocates which will have a list of consumer lawyers. Another agency you may want to consider is the The National Association of Consumer Bankruptcy Attorneys.

-       If you simply can’t justify continuing with your mortgage you may just be in a home that is wrong for you. It is a tough decision to make but in the long run it may be better for you to simply sell your home. At this point your lender may specify a date for you to find a buyer and then pay off your mortgage. However, if you find that your home is not going to sell for the full amount of the loan, your lender may be willing to accept a lessor amount. You will need to contact a real estate professional that is very knowledgeable about foreclosures in your area. They can offer your some good strong and valuable advice. The sooner you choose a qualified real estate broker the better your chances will be in meeting any timeframe given to you by your lender.

Don’t be despondent, that is the worse action you can take when it comes to stopping your foreclosure. You need to be able to educate yourself, and reach out to those that are knowledgeable in order to come up with a resolution to your struggles.

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When you consider buying a home or putting yours up for sale, you may want to plan your timing carefully. Did you know there are actually certain times of the year that are better for both buying and selling?

Have you ever noticed an abundance of for-sale signs in the spring? There’s reason for this. Springtime signals new beginnings. It’s a season of warmth and pleasantness, and a time when people love to be out and about. It also signals the end of school is approaching for children and parents, and there’s no better time to make a major change.

Buying and selling a home falls into the category of major change, and people often feel invigorated and ready to do this in the spring. This buying and selling season transitions into early summer. Once the kids are out of school, it’s easier to pack up and move house. Parents who planned on taking a bit of vacation time from work can leave for a few days to move and get settled into a new environment. This gives the entire family a chance to grow accustomed to new surroundings and neighbors, and make friends.

The real estate season usually lasts from April through July, but this isn’t the only time you can buy or sell successfully. buy and sell. During the “season”, other prospective home buyers are moving quickly, and you have to move fast as well if you’re going to get the home you want. Great properties are often snapped up before you can even make an offer. If this fast-paced approach doesn’t suit you, or if you just want a bit more time to look and make decisions, consider buying and selling at a different time of year. The process may take a bit longer, but the slower pace may make it easier all around.

So why is spring a great time to buy a home? Income tax refunds have usually come in and can be applied to down payments. The weather is nice, thus making it easier to go home hunting. People sometimes have more free time on their hands during spring and summer which also contributes the rush of the real estate season. There are many reasons for it, and the season usually peaks sometime in June.

Summertime works well for buying and selling a home because it enables parents to take care of school changes for their children if necessary. This helps parents avoid pulling their kids out of one school and enrolling them in another during the actual school year.

If you are looking to buy and sell a home quickly, spring and early summer is the time to do it. You will probably receive more offers and may find it easier to sell at or near your asking price.

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Great staging can help potential buyers see themselves living in your home. Once they can imagine that, it may only be a few steps to completing the sale. Staging, then, is important, but it needn’t cost a fortune. Here are some cheap tricks for staging your home to sell.

Keep It Clean

Keep the home clean so that buyers can get an idea of how the home will look at its best. A dirty home may look lived-in, but not in any desirable way. It is better to help potential buyers forget about the duties of housework and maintenance. Keep them focused on the beauty of their surroundings by cleaning up and dusting every day.

Keep Walkways Clear

Cluttered walkways make moving around the house difficult. Besides that, when the potential buyer has to squeeze through a crowded doorway, it will destroy the sense of open space. Home décor is fine, but make sure it does not interfere with free movement from room to room.

Raid Your Closets, Attic and Basement

You might need some extra items to stage an empty home while it is on the market. There is no need to go out and buy new home furnishings. Some people rent furniture for this purpose, but you may not even have to do that. Look through the treasures you have socked away in your closets, attic or basement. You might find interesting pieces of furniture and décor that will benefit the appearance of the home without costing you any additional expense. Do choose wisely.

Create Two Functional Areas from One Large Space

Rearranging the furniture can make a big difference in the look of a room. One trick you can try is breaking up a large, open area. Create conversation areas by making furniture groups that simulate a room. This adds interest and helps the potential buyer envision ways to use the room. This is only a good idea if you do have a very large space. Do not overcrowd an average-sized space with several furniture groupings.

Draw Attention to Corners

When the potential buyer looks at an empty room, her eyes are drawn to the shape of the room. If two walls are longer than the other two walls, the buyer might think more about the narrower walls being too narrow rather than focusing on the fact that the space overall is plenty roomy. Avoid this trap by drawing attention to the corners. You can place a potted plant or a small table in the corner, and the potential buyer will be less likely to dwell on the comparative lengths of the walls.

Be Careful about What Daily Living Items You Leave Around

Some daily living items make the house look lived in and help the potential buyer think about how much they would enjoy living in the house. Other items call to mind work and disorder. Place items that focus on order and neatness and avoid items that make clutter. For example, do put simple place settings around the table. Placemats are a nice touch. However, do not leave dishes just anywhere. Make sure everything contributes to the feeling of comfort, relaxation and home.

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In September, the FHA relaxed some of their burdensome condominium financing rules.  Condominium owners, sellers and buyers have been struggling with the previous rules which caused thousands of buildings across the country to lose their eligibility for FHA financing.

The new relaxed rules should make it easier for large numbers of homeowner associations to seek certification for FHA financing.  This certification process provides detailed project ownership and management information to the FHA to allow decisions on whether to guarantee purchase loans.  Without approval for the entire project, no individual unit can get FHA financing approval.

Previously, if 25% or more of the project’s floor space was used commercially instead of for living units, the project could not qualify.  This significantly impacted buildings that leased out space to commercial businesses, as this helped to fund the projects and pay expenses.  This rule has been modified to certify projects with up to 35% commercial space usage, and with individual case-by-case exceptions, this could move up to 50%.

Another very significant change to the rules involves personal legal liability for condo association boards and officers.  The previous rules required that officers attest that they had “no knowledge of circumstances or conditions that might have an adverse effect on the project or cause a mortgage secured by a unit” to become delinquent, or of “dissatisfaction among unit owners about the operation of the project or owners association,” or of “disputes concerning unit owners.”  Depending on whether violations were “knowing” or “willful,” penalties could be fines up to $1 million and 30 years in prison.  The new rules changed the language to be much less scary and more clear that penalties would be for intentional frauds.

Another key rules change now allows one or more investors to own up to 50% of the total units provided that at least half of the units are owner-occupied.

The relaxation of rules is estimated to be freeing up four times as many units for future FHA certification.

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Investing in land can be somewhat of a risky investment.  Investing in land is a purely speculative investment that may or may not pay off in the end.  When you make the investment you are hoping that the value of the land will increase and provide you with a substantial profit when you decide to sell it.  In some cases this does happen, but will you make enough of a profit to provide you with a fair return on the risk involved in buying and holding onto that land.

When you purchase a parcel of land your out of pocket expenses do not end once the deal is closed.  You will be required to pay money each month to cover property taxes and insurance.  Purchasing the land may have required you to take the purchase price for the land out of a mutual fund or other investment where it was earning interest.  When you used that money to purchase the land, it is no longer earning you money but rather causing you to spend more.  In order for you to break even and begin noticing a profit on the land you purchased you need that land to increase by at least five percent each year in order to cover your out of pocket expenses.

Before you invest in land it is suggested that you have the land tested for any contamination.  Land that contains any contamination will not be easy to sell at a later date.  This is why experts suggest having any land you are considering purchasing tested to avoid this from happening.  You should also look into any restrictions that may not allow any development to take place on the land.  Finding out all of this information before you make the investment can be very helpful when choosing a parcel of land to invest in.

Investing in land may be a good investment for home building companies or long-term corporate investors who have experience in development and entitlement skills.  But for small investors, land can be a high-risk investment with a small chance of earning you a fair rate of return.  You may be better off investing your money in stocks or bonds.  Instead of investing in land, you may also want to consider investing in a rental property.  A rental property will ensure that you are making some amount of money each month.  All investments can be risky, but if you are inexperienced in real estate you may be better off avoiding investing in land.

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