Dean Graziosi | Dean Graziosi Real Estate | Dean Graziosi Investment

Knowing what the real estate market has done in the past is an important piece of knowledge that buyers and sellers should be aware of. Being aware of how the market has behaved in certain neighborhoods and locations where you are looking at properties can be an indicator of what to expect once the home has been purchased. Past market trends can and do have an effect on the current value of a property and how the value of the property can change in the future. Market trends have been in a constant state of change lately and knowing what the past trends were will better prepare you for the future.

Looking at how the area you’re interested in has changed in past three or four months will show what to expect in the future. Banks and lenders typically use this same information when determining comparable prices of homes recently sold in the area. This is an important tool to use while you are looking at properties. Once you find a property that you are interested in, you should also look at what the past property trends have been. This will prepare you for what to expect when the market becomes more stable. These numbers will show if the neighborhood you’re looking at has a high turnover rate, meaning that people purchase homes but do not tend to stay.

You will also want to look at the rate of foreclosures in the neighborhood, this can affect the purchase price of your home and can also affect the selling price should you decide to sell later. Experts suggest that when you look at past trends you go as far back as three years. This will tell you how many homes were sold and what the average sale price was. It also allows you to notice any trends either up or down in property values. Doing some research into past trends may seem like a lot of extra work, but it can help you make a better informed decision when purchasing a home.

Every neighborhood will have property sales throughout the years, some are for the typical reasons of families relocating to a larger home, downsizing or a change in their living situations. But researching the trends will show you if there is an abnormally large amount of activity in the area. Market trends are changing all the time, and doing some research now can help you in the long run. Finding a neighborhood you like is critical to being happy in the home you buy; but doing the proper research before purchasing that home will ensure that you are getting the most for your money and you will not be likely to lose more down the line.

Properties that have been vacant for a long time can be a great bargain for anyone looking to invest in real estate. However, there are a few things you should watch for in properties that have stood vacant for some time. The longer a property is vacant, the more chances that these problems will arise. This is due to the fact that since no one is living there, and most of these properties are rarely checked on. Certain problems may arise and become worse due to lack of attention. To protect yourself, watch for these three things in properties that have been vacant for a year or more.

1.      Have the roof checked for any need of repair. When you walk through the house, look carefully at the ceilings for signs of leaks. It is very common for a house that is standing vacant to develop problems with the roof that go unnoticed. When roofing problems are left to their own devices, they become much worse very quickly. It is important to have this inspected before you buy the home.

If you believe that the roof needs to be repaired, do not be afraid to ask that such repairs be taken into consideration as part of the negotiations on the property. Make certain that the repair cost is deducted from the sale price, or that the repairs will be made before the sale is completed.

2.      Have the foundation checked out by an experienced appraiser. The foundation of a house can be the reason that it has stood vacant for so long. You want to make sure that the house is on a firm foundation, otherwise it could have serious problems later on down the road. Even if the foundation is not causing problems right now, it could cause issues in the future if it is going bad. This is one of the biggest reasons older homes don’t sell, and it should be taken into careful consideration before you buy.

If the house has a bad foundation, this is likely the reason it has stood vacant. You should not buy such a house. It can cost thousands of dollars to repair a foundation. It is typically not worth the investment.

3.      Electrical systems should also be checked thoroughly. It is common for houses that have been vacant for some time to have an invasion of rodents or other pests. These intruders generally go unchecked for some time, because the house is left empty with no one entering it for months at a time. They can chew on wiring, and cause other problems with the house. Just make sure that you check for any signs of any rodents or animals being in the property, and have the wiring checked thoroughly to ensure that no damage has been done.

Here is a list of the five best places you can buy hot real estate now. With the market currently a buyer’s market and sellers unable to move houses as much, this real estate list can help you choose a great place to live.

The first hot area to buy real estate is Austin, Texas. Why is this a hot real estate area?

Austin is a beautiful place to live. If you have lost your job you will be happy to know that Austin, Texas, had a 14.1% of job growth in the year 2010. You may want to apply ahead of time to find a job before moving. If you are into a tech career there are more then 2000 tech companies in the capital of Texas. The national USA average of unemployment is 9.8% whereas Austin, TX is 7.1%. When looking to buy a home the average median price is $122,921. If you currently own a home, sell it and you may already be ahead with the low cost of homes here. All of these benefits make Austin a great place to live!

Another one of the hot areas to buy real estate is Broomfield County, Colorado which is located between breathtaking Denver and Boulder. In this area you will find jobs galore including high tech jobs. In the last ten years jobs increased by 50%. Average median home price is $239, 000. Get skiing and hiking in Colorado now!

Looking for someplace warm to buy hot real estate? Check out Deerfield Beach, Florida. The median home price is only $89,400. Enjoy a home with a view of the beach. Imagine waking up every morning, grabbing a cup of coffee and relaxing by the beach.

If you are looking to retire and find a new piece of real estate check out Durham, North Carolina. The median home price is $174,900. Enjoy as many of the one hundred plus activities the Duke University has to offer seniors. You can also enjoy your golden years playing golf, seeing Broadway hit shows as well as concerts and stay young hiking.

On the opposite spectrum if you are looking for a hot piece of real estate to buy and raise your children check out Woodbury, Minnesota. In this area of Minnesota the schools are phenomenal. Plenty of jobs await at 3M and the state government. Enjoy the wonderful lakes for swimming, fishing and boating. Other fun activities include winter activities such as snowmobiling, snowshoeing, making snowmen with your kids, sledding, ice skating, etc. You and your family can hike, enjoy the grassy parks and biking. There is never a dull moment. Median home price in this hot real estate area is $245,000.

The fifth best place to buy a home is Madison, Wisconsin. You can choose to live in Madison or buy a hot piece of real estate rental. There is so much to do in Wisconsin’s capital including many sports, cultural events, affordable housing, one of the top rated colleges, shopping, variety of restaurants, four season activities and so much more. The average median home price is $199,900.

With a little research and help from a real estate agent you can find the best place to live for your current situation. Start living the dream now.

Consumer confidence is one of the key indicators that investors always track.  For the past two years, consumer confidence has risen to surprising highs and fallen to desperate lows.  Every time there is a shift there is a reason why.

That’s the scary part.  Consumers are human.  They react to headlines, media and world events that really have very little affect on the overall marketplace.  Savvy investors not only watch consumer confidence but they analyze it.  In fact, the consumer confidence index published by the Department of Commerce affects every market from equities to currencies to commodities to real estate.  If you fancy yourself a real estate investor stay on top of this important index.  You will make many smart moves by staying on top of consumer confidence.

In July, the Certified Financial Planning Board of Standards released a survey through June 30^th, 2010.  The study revealed that consumers are worried about equity markets and currency markets.  The survey, which included more than 1,000 residences from all areas of the country and from all economic levels, indicated that 83 percent of those polled believed their finances would improve over the next six months.

These consumers believe that many sectors of the economy, including residential and commercial real estate, will also improve in the next twelve months.  Progress will be slow and delayed, but progress will be made.

Certain aspects of the June real estate market activity are surprising.  In Southern California’s six biggest counties, real estate sales increased by 7.2 percent in June compared to May.  In fact, activity in these counties was the highest since June 2006.

California trails Arizona and Florida in short sales and foreclosure activity.  Facts are facts.  More money was invested in Southern California last month than in the pat two years.  Additionally, more mortgages were written than in the last two years.

While this is not a complete endorsement, it certainly marks a trend worth watching.  Pick your investment area and follow the consumer confidence trail to short sale success. 

When the homeowner calls and has decided a short sale is the only alternative, the listing agent must move rapidly.  Time is of the essence.  The listing homeowner has agonized over this dilemma.  Either the house is headed for foreclosure or the seller has already received a Notice of Default.

Ensuring the success of a short sale is often about price.  Unfortunately for the seller, the short sale listing price is rarely reason for celebration.  After all, the short sale is predicated on financial hardship and shrinking market value.  The purpose of the short sale is to conclude a transaction that is acceptable to the lender before foreclosure becomes necessary.  The homeowner is attempting to sell the property for less than is owed and get out of the transaction with a semblance of credit and credibility.  Short sales are tough on the sellers and tough on the lender.

Pricing the short sale is about bringing five parties together in a compromise.  Shirt sale listing prices are not based upon fair market value.  The truth is that short sale prices are generally below market value.  The short sale listing price must appeal to five interested parties.

·                     The short sale bank – in explaining the listing price to the bank, the agent should use pending sales comparables.  By the time this transaction closes, those will be relevant.

·                     The buyer – short sale buyers do not expect to pay market value.  Short sale buyers are valued commodities.  They are also going to have to wait 90 days or more to close.  The price must motivate them.

·                     The buyer’s agent – short sales take longer than a conventional sale and the agents generally make less money.  The buyer’s agent will need to see this listing is a goof offer and a viable transaction.

·                     The buyer’s lender – the buyer’s lender will be using an appraiser.  Today’s lenders need appraiser that meet stringent lending requirements.  The price cannot be too low for the buyer’s lender.

·                     The seller - the seller will not be receiving any equity from this transaction.  However, the listing price must assure the seller that all obligations are satisfied and retired.

Experienced short sale agents know how to perform and how to arrive at the best price to achieve the seller’s goals.  It is a hard process but one that is saving many of today’s homeowners.

The real estate investor’s ability to bring the pieces of the short sale puzzle together can create big profits and windfalls for real estate balance sheets.  What investors are finding out is that short sales work.  In the midst of the world’s deepest recession and with more than 1,000,000 American homeowners suffering foreclosure in 2008, mortgage holders have changed their stance on previously unwelcome short sales.

The new climate is wide open for short sale acquisitions.  Banks have come to realize that foreclosure is the resolution of last resort.  The cost of maintaining foreclosed properties in a down market loaded with excessive supply and dwindling demand has led banks to negotiate with qualified investors.

These investors can reap big profits by buying low and turning properties over in a relatively short time or by renting the properties until market conditions improve.  The possibilities for profit are many.

The key to a successful short sale is to bring the vested parties together.  With more and more homeowners with secured debt exceeding the value of the property and with rising unemployment placing more and more Americans in default, short sale opportunities are abundant.

Banks are allowing these “underwater” homeowners more flexibility than ever before.  Today, banks are allowing short sales, often accepting less than they are owed in order to avoid ongoing maintenance.  The investor who works with the mortgage holder will usually find a ready, willing and able lender.

Meanwhile, the owner avoids foreclosure and is generally forgiven for the remaining indebtedness.  The homeowner’s credit may suffer but the damage is less than would result from foreclosure.  With the unemployment uncertainty plaguing the nation, short sales are often the lesser of necessary problems and can often provide win-win-win scenarios.