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It’s Mostly About the Asking Price

June 23, 2015 by admin

Supply and demand is a powerful economic force that has many dynamic variables that affect consumers and suppliers.

When it comes to selling a home, ultimately, it comes down to the price. There’s a supply of homes on the market, each supplied by a single owner (for the most part) and represented by a myriad of brokerages competing to be the best at what they do.

It’s different than a company that produces the same product over and over again. Create a widget, and the number of widgets compared to the number of widgets demanded plays a huge role in determining market value of that widget. Please go and read stockpair review at gobinaryoptions.net.

Real estate is different, however. In a widget store, the location of the widget doesn’t affect the retail price of the widget. In real estate, one builder could build the same house in two different locations and the demand will be for the location before the house itself.

This is not always true, but is for the most part.

When you ask more than the market will bear, in consideration of the competing properties and their show quality, you’ll have a hard time selling.  When you price a property just right, you tend to sell it much faster than the competition.  Often it doesn’t matter what you’re buying so much as it matters where you’re buying it. Any home can be remodeled to maximize its value in its location.  Tear it down, re-build.

 

 

Filed Under: Phoenix Real Estate Market Tagged With: market, price, time, value

How Do I Know if I’m a Millionaire?

February 26, 2013 by admin

Let’s first define the term Millionaire.  The term millionaire defines someone who has a net worth of at least one million dollars.  To understand this further, one needs to know how to calculate personal net worth.  This is a simple calculation.  Add up everything you owe (liabilities) and subtract it from the value of everything you own (assets) and you have your personal net worth.

If this number is $1 Million, then some would say you are a Millionaire.

Let’s say your net worth is $1 Million dollars based on the following.  You own a home, for example, that would sell today for $4 Million and you only owe $3 Million on the mortgage.  After it sells, you would have $1 Million left over.  Many wouldn’t consider this being a true millionaire because you can’t get to the money without either selling your house, or borrowing against it.

You could have a net worth of $1 Million dollars and hardly have any cash in the bank.  This is not what is meant by being a millionaire.  Many also define being a millionaire as someone who is a “cash millionaire.”

A cash millionaire, after all debts and assets are calculated, has at least $1 Million in CASH in the bank that they could get to today.  If you’re a cash millionaire, then you know that you’re really a millionaire.

Now, get out there, kill it, and drag it home.

Filed Under: Personal Finances Tagged With: baby steps, CASH, dave ramsey, debt free, how to, millionaire, mortgage, value

What Do We Do? There’s a Notice On Our Door!

March 11, 2010 by admin

Yikes.  That’s probably the first thing you’re thinking.  We just received this thing called a “Notice of Trustee’s Sale” and we have no idea what went wrong (“except that we stopped paying our mortgage a few months ago.”)

AHA!  That’s the problem.  What’s happened is the bank has taken action to recover the home to cover the note.  The fact that the note is greater than the value of your home, most likely, is irrelevant at this point.  The bank is going to take your house back.

The good news for you is that the bank doesn’t really want the house.  They want as much money out of the house as possible, but they don’t want the house because it costs tens of thousands of dollars for them to auction it, take it back, maintain it, re-market it, and sell it.

The real error in the entire situation was the fact that you didn’t recognize that you needed to have this house on the market a long time ago.  The banks will tell you that you need to miss payments in order to put your house on the market and have a short sale approved, but this is not true.  With a true hardship, whether or not you can pay your mortgage today or not isn’t important.  What’s important is whether or not you are headed for the dreaded foreclosure in the near future.

If you are, then you don’t need to miss payments.  In fact, if you are able to keep up with the payments, you are more likely to be able to down-size by buying another home after this process.  The key is whether or not you are keeping up to date on all of your payments.

So, what do you do now?

You’re headed for foreclosure.

  • You can re-instate and get caught up, which will cost you more than the amount you’re behind
  • You can walk away from the house and experience turmoil, have a larger than required deficiency, and potentially face future law-suits and high tax liabilities;
  • or you can attempt to buffer the losses and have your lender release you from your note by selling the house!

But we owe more than the house is worth!  Right, that’s why it’s a short sale.  You’re going to bring a market value offer to the lender, and you’re going to get them to approve it and allow the sale.

It happens all day long in this market, and it’s going to keep happening for years to come.  Short Selling your home is the best preventative measure you can take now that you KNOW you’re being kicked out.

Filed Under: Short Sales Tagged With: lender, market, short sale, value

9 Ways to Prevent Foreclosure

January 30, 2010 by admin

Reinstatement

Bring your loan current.  Contact your lender, let them know you’re going to get caught up, and you’ll be able to remove the Notice of Trustee’s Sale and your home won’t go to auction.  Make sure you and your lender are on the same page, and that you get everything in writing.

Forebearance

Contact your lender and work with them to come to a temporary repayment plan.  Keep in mind that this also needs to be in writing.  Bank collectors are not friendly people and what comes out of their mouths is usually not true.  Forbearance is a temporary solution, and it will ultimately benefit the lender over you, but for now, it may relieve a cash-flow problem.

Refinance

Find a better deal.  The ability to do this hinges on your ability to qualify, and the value of your property.  If you owe more than it’s worth, you won’t be able to refinance without bringing the new loan to value ratio within an acceptable range.  This will mean coming out of pocket to bridge the gap.  Not many people can do this, so it may not be an option for you.

Loan Modification

It’s possible, but not likely.  Over 60% of those who attempt to modify don’t even qualify.  The rest manage to arrange something with the lender, but rest assured, it will be in the banks best interest, not yours.  Loan modification doesn’t usually solve the long term problem.  Prinicpal modification is extremely rare.  Don’t bet on it.

Sell the Property

If your payments are too high, sell the house.  If the home is worth more than you owe, you’re going to solve a huge financial burden in your life and you’ll have some cash left over.  Most people in this situation don’t think to down-size, but if you have equity in your home, and your income is such that you’re headed towards financial difficulty, sell the house.  Downsize and live within your means.

Rent the Property

Renting out your property may be a good option for you, but I would encourage you not to carry unnecessary risk in your life.  Renting out, while you’re renting, is a risky proposition because there are costs associated with being a landlord.  If you’re in foreclosure, you still need to be current with your lender to stop the auction process.

Short Sale

Even if you owe more than the property is worth, you can sell the home.  Most lenders will allow this to avoid the extensive costs of foreclosure.  It’s in their best interest to do so, and if you haven’t caught the tone of this message, I’ve been quite clear about the banks.  They typically only do what’s in their best interest.

Deed in Lieu

This is when you voluntarily hand over the keys to your house, much like when you voluntarily hand over the keys to your car.  The problem with this is that it doesn’t solve the problem.  When you hand it over, the bank, who is not in the real estate business, will have to pay the associated costs of selling the house, and that means that every penny that doesn’t cover your loan is a penny they’ll chase after legally.

Bankruptcy

Stupid.  Bankruptcy is something that you should only consider if you’re forced into it. It will slow the process down, but it will not prevent foreclosure.

Filed Under: Foreclosure, Question and Answer Tagged With: Foreclosure, interest, lender, prevention, property, value

What Does It Mean: Upside Down In Your Home

December 10, 2009 by admin

03upside-down-houseNo, it doesn’t literally mean that you’re upside-down.  It’s a financial term that describes the relationship between the value of your home and what you still owe on your home mortgage.

When you borrow money, you usually have to have something to secure that money against, so the bank has a way to recover their money if you don’t pay your payments on time.  Usually, it’s the item you’re purchasing.

When the bank loans you money on a house, they do so based on the current value of the house, with the assumption that you will pay back the loan in full, over time, regardless of the value of the home at the time you sell it.

Sometimes your home appreciates (increases) in value, and sometimes, such as in recent years, your house depreciates (decreases) in value.

If your home’s value is less than what you owe the bank, then it is said that you are “upside-down.”  There are only a few remedies for this situation, and they depend upon your future plans, and your current financial circumstances.

It’s okay to be upside-down in your home if you plan on staying there long enough to ride out the ups and downs of real estate values.  Don’t panic if your home is worth less than you owe.  If you can afford your payments and you have a relatively secure job, you can stay.

But, if you are in a financial situation where your income has decreased, your payments have increased, or any other circumstance has caused undue stress on the wallet, it may be time to take a look at your housing options, and perhaps find a less expensive place to live.

If you’re upside-down and you are faced with this situation where you must sell to make the right changes in your life, you are considered a short-sale candidate.

Don’t be overwhelmed, there are thousands of people in your position.  You are not alone.  Selling homes that are upside-down happens every day.  I know, I’ve done it, and it’s called a Short Sale.

It is nothing to be ashamed of.  I recently spoke with a client who said that she “felt like white trash,” just because she couldn’t afford her mortgage payments any more.  This is so far from the truth.

Whether your home is under $100,000 in value, or over 1,000,000.00 in value, if you’re upside-down and you’re facing financial troubles that will eventually lead to you losing the house, then it’s time to put your ducks in a row and hire a Certified Distressed Property Expert to help you prevent this from happening.

Upside-down simply means it’s going to be a bit more challenging, and will take a bit longer than normal to sell your home.  It also means that it will most likely cost you nothing out of pocket in the end.

Don’t give up!  There is a solution to being upside-down in your home.

Filed Under: Uncategorized Tagged With: distressed, Foreclosure, money, mortgage, short sale, time, upside down, value

Blog Because They Do, Epic Fail

November 12, 2009 by admin

My first experience with a blog was sometime around 2002 when I discovered Oblivio.com by Michael Barrish. If you choose to visit the site, you’ll have to Google it, as the content is rather raw. It’s also outdated. It doesn’t look like he’s posted anything since December of 2007.Lemmings.jpg

I was intrigued by the fact that he had managed to chew his fingernails off to the point of not being able to grow back. Not sure how this happens, but I saw pictures and had an in depth e-mail exchange with him regarding the topic.

I was immediately intrigued by this world of blogging. The platform of the day? MoveableType. I don’t use it anymore because WordPress has taken over as the world’s leading platform. I was so intrigued that I learned how to install the software and utilize it for my own benefit. The problem was that I was more interested in spouting off or ranting about things that nobody cared about than I was in providing valuable content, and it really didn’t turn out to be a benefit.

I looked at starting a blog as a way to move my personal journal online so I would never lose it. Not a whole lot of people care about what we have to say about ourselves as much as they care about us listening to what they have to say. People care about what we have to say that will help them do what they want to do.

I posted, and posted, and posted, not knowing a whole lot about why I was posting. I was in the middle of a pretty heavy breakup and I found it quite therapeutic to rant about my broken heart. I have since read some of those posts, many of which are basically cries of help to get me out of the emotional pit I was in, and they are radically pathetic, and very personal. It’s like those letters you write to a lost love that you need to write just to get the information out; not something you want to re-read, nor have others read, nor have her read. That’s a pending disaster.

So, my cleansing period ended, and so did my desire to blog. My desire to write, however, did not end. I have always been a creative writer. it was one of my chosen electives in high school and I’ve always enjoyed the writing assignments…the creative ones. The topics that require research bore me to death. So, I write about what I’m feeling, but I try to put an informative spin on it so it doesn’t sound too much like I’m talking about myself. This article could be an exception…I’ll let you decide if you want to keep reading.

Fast forward to 2005, New Valley Church, pre-Facebook. There was a period of time where everyone who was anyone had to have a blog because it was the cool thing to do. He starts a blog, so she starts a blog, and they start a blog, and blog blog blog. Vomit. Blogs about everything that nobody wanted to read. Family news blogs, personal journal blogs, “look at me” blogs; blogs that the blog-owner would write because they told themselves that they would write at least once a day but never did because they didn’t really want to do it.

And so…

First Rule of Not Blogging: If you don’t like to write, you will not like to blog. I don’t care how dedicated you think you are to keeping a “journal,” you will not write with the frequency you expect of yourself and you will let it slide, and it won’t matter, because you don’t have a passion for writing.

Second Rule of Not Blogging: If you don’t like to write, you will not like to blog.

Need I list anymore rules? Blogging needs to have purpose, and if you spend time writing, you need to spend time telling people about it, otherwise it’s sitting out there in the blogosphere with nobody watching.

Don’t start a blog just because you’ve been told that you should start a blog. If you intend to provide value through experience, and perhaps promote a product or solution to someone else’s problem, then publishing your expertise online is definitely a must in today’s world. But if you don’t really have anything to say, or share that is truly worth at least someone’s time then blogging about it isn’t something you would want to waste your time doing.

One of my closest friends expressed how discouraged he was because nobody interacted with him on his blog about Turkey Hunting. Now, I don’t profess to be a hunter, and although I would enjoy it thoroughly, I don’t have the time to get into hunting right now. Chad Taylor knows about Turkey Hunting, extensively. He knows so much about it that he could actually make a difference in the hunting world with the information his brain is carrying, and he could do it through a blog, and he could make money doing so. That is where the true value of his knowledge lies. When you publish your passion online, thoughtfully, intelligently, and with purpose, and you promote it with hours of hard work (big secret), you will find your audience, and you will be able to monetize the interested parties.Spr+Hunt+06+-+Chad.jpg

The difference between the published content that the gate-keepers control, and the content that the individual controls, is measured by the quality and relevance to the intended audience. We’re in a world where anyone can publish anything online, and I’ll remind you that we’re also in a world where some people are good at writing, and some are not. Those who have a knack for telling a story, or conveying an idea, or providing a solution or tutorial in a clear, concise, intelligent way will be the ones who draw an eye and establish an authoritative presence.

If you simply blog because they do, you will fail. But hey, failure is how you learn, right?

I’d love to know what you think about this article. Please leave a comment below.

Filed Under: Tips for Success Tagged With: blogging, spend, time, value

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