Homefinding Book

If you are considering buying property today it’s unlikely that you haven’t heard a great amount about buying foreclosures. News about this type of home purchase seems to be all the rage these days. The only problem is, no one really bothers to explain what a foreclosed property really is or where to find them.

When you consider foreclosures for your next property investment or the place you and your family will call home there are some things that are important to know. The first thing you need to know is that there are some places that are better than others for finding great foreclosures almost anywhere. Three of the best are: Bargain.com, Foreclosure.com, and RealtyTrac.com . Be sure to check them out today for some amazing prices on stunning homes in your area.

Make Banks Take Your Bid Seriously

When it comes down to it, banks prefer to make foreclosure sales as quick and painless as possible. There is often a great amount of interest in exceptional bargains so you need to have every edge you can manage in order to stand out among the other offers without paying extra for the privilege. The goal, after all, is to buy a home for a bargain rate.

How do you get noticed? The first step would be to have either cash in hand and a statement saying as much when you make the offer or a letter of pre approval from a lending institution.  Banks tend to lend more weight to offers they are confident have the financial means to deliver. The reason for this is simple. The closing process can take months with inspections, repairs, and appraisals.

Every month that the house is owned by the lending institution is a month that they are paying expenses on that property. In other words, it is costing them money that can’t be recovered so the quicker the property sales the better. Those who have guaranteed funding are less likely to have delays for the purpose of financing making them better candidates. Even better, in some instances, than those who offer a higher price without preapproved loans to go along with their offer.

Look for the Other Shoe

The other thing you need to know when buying a foreclosed property is that there is no such thing as a guaranteed deal. It is up to you to do a little research on the area, the value of the property, the structural integrity of the property, and whether or not you are getting a good deal. Only you can decide if you are willing to pay the asking price. In addition to that no one other than you can determine if the estimated cost of repairs is going to be significant enough to make you think twice.

It is always best to enter into negotiations with both eyes wide open. Make sure that you have a proper inspection and appraisal so that there are no rude surprises when you are trying to move in and so that you have a good idea of what lies ahead as far as construction projects.

Prepare to Walk Away

Perhaps the most difficult thing about bidding on foreclosures is the necessity of being willing to walk away if the deal goes south. Chances are you are making an offer on a house that you feel some sort of emotional attachment to. No one wants to call a house home if there isn’t some sort of connection in place.

This is where so many would be buyers get locked into bad deals. Don’t become a victim of a deal gone wrong and pay more than you should for a foreclosed property. Be willing to walk away if you aren’t getting the deal you need to in order to be comfortable and confident about your purchase.

When you are buying foreclosed properties there are many bits and pieces of advice that will be extremely helpful. You need to know the information mentioned above though in order to insure that you get the best possible deal for your efforts.

Whether you use Bargain.com, Foreclosure.com, and RealtyTrac.com you should feel confident that you are working with the best in the business to find foreclosures in your area that are up to date and accurate, fast.

Buying a new home is something that most people do very rarely. One reason is that the price of the average home is somewhat prohibitive to the average budget. With this in mind, it is often helpful to get a little inside advice when it comes to finding great deals or exceptional values so that you can get a great deal on your new home.

Check out Foreclosures

Foreclosures are homes that have been reclaimed by a lending agency. The main reason for this is that the borrower fell significantly behind on payments and was unable to make satisfactory arrangements with the lender to pay the debt. Some states allow foreclosures after one missed payments though most allow some latitude.

Foreclosures are generally sold for the amount that was owed to the bank rather than how much the home was worth. This means that you can find significant bargains by purchasing foreclosures if you find the right home at the right time.

These homes are often good homes in nice neighborhoods that have been well loved and cared for by owners that have fallen upon hard times. They may need minor cosmetic repairs or might possibly require some serious work in order to get in tip top shape. The bottom line though is that the money you save on the home and in interest over the years is well worth a little extra elbow grease to make it pretty.

Where Can You Find Foreclosures?

There are plenty of excellent websites such as: Bargain.com, Foreclosure.com, and RealtyTrac.com that will point you in the right direction when seeking foreclosures in your community. You can also find excellent foreclosures by working hand in hand with a local Realtor. Wherever you turn for direction while looking for bargain homes, it is a good idea to always follow through with the basics of home buying.

If you fail to do so, you may discover all too late that your bargain home isn’t the bargain you believed it to be. Not all foreclosures or homes that are selling below market value are money pits. They are common enough though that it is a good idea to be prepared and rule out the potential ahead of time whenever possible. This means that you should have qualified inspections and appraisals made before making your bid or at the very least make your bid on a foreclosure contingent upon the outcome of any inspections.

Most foreclosed properties are sold as is. Lending agencies want these homes to sell as quickly as possible with as little bargaining as possible. You will need to decide once the inspections have been made whether you are interested in continuing with your original bid or wish to walk away from the house. If you have the skills needed to make the repairs yourself or want to make changes that will compensate for the needed repairs you just might find that they aren’t worth walking over. If you do not know the difference between a drill bit and a drill press it is in your best interest to make sure you budget professionals in you monthly payment plans.

Regardless, of where you find your bargain homes, you should make sure you get your money’s worth from your home in the end. Negotiate the best deal possible on your home with the lending agency and you should have a true bargain to call home sweet home. Before you buy anywhere though it’s a great idea to see what’s available through RealtyTrac.com, Foreclosure.com, and Bargain.com. You never know what gems are waiting for you on these sites or hen you may find the home you’ve been searching for.

Working with a Realtor can be intimidating if you’ve never purchased a home before. It is important to have a qualified Realtor as he or she has vital experience taking the steps and making the contacts that the average home buyer is never likely to have.

You need to know how to work with your Realtor in order to make the relationship a mutually beneficial relationship and to save yourself a few headaches throughout the home buying process. When you make the things below a priority you will enjoy a much more pleasant overall home buying experience.

Establish a Budget

You need to know how much house you can afford. This step goes beyond simply getting preapproval for your home loan but extends to establishing a monthly budget that you are comfortable spending month after month. There are more expenses that go into purchasing a home than principle and interest.

Some of the additional expenses you need to include in your budgeting include private mortgage insurance -unless you have a significant down payment, home owner’s insurance, property taxes, and money set aside to cover emergency repairs that are often needed as well as improvements you’d like to make to the home you purchase.

Your budget needs to also allow a little breathing room when considering other expenses such as medical insurance, auto insurance, automobile payments, groceries, and utilities.

You will also want to include additional utilities in your budgeting that you may not pay when rental. Common utility expense that are covered in rent are water, gas, sewage services, and garbage collection. Be sure that you plan for these or you may find yourself in over your head all too soon.

Know What You Want in a House

When you are working with a Realtor it is a good idea to remember that there time is valuable, as is your own. Know what you want before bringing them into the picture. In addition to a firm budget you need to know what features are absolutely necessary for you and your family as well as those you’d like.

If you are upfront about the non-negotiable things as well as the features that have a little wiggle room you will save yourself and your Realtor a good deal of time looking at houses that will not work for you and your family. There are many things in life that you can be extremely flexible with, your home needs to be a place where you and your family are comfortable and content.

Stick to Your Guns

An honest Realtor will tell you up front if you are going to have difficulty meeting all your wants and needs in your price range. It is one thing for a Realtor to be honest about what is available in the area and trying to convince you that you want something else in order to sell a difficult piece of property. It helps if you educate yourself to some degree about the local market before deciding to buy a home so that you are aware of the price ranges in the area you wish to buy your home.

If you know that you will not be content without two bathrooms and three bedrooms there is no reason at all to look at homes that offer less than either. Be firm when discussing these things with your Realtor and make sure that he or she understands that a two car garage is preferable but not required and that two bathrooms is not up for debate.

Find an excellent Realtor to help you with your home search today by logging on to HomeGain.com. You will find excellent resources for buying your property as well as a listing of qualified Realtors ready to help you find the home your family has been dreaming of in your area today when you visit HomeGain.com.

Real estate investing has made and broken many millionaires over the past two decades. There are few methods of investing that can match real estate for growth potential and income earning possibilities. You have plenty of options to explore when it comes to real estate investing, which makes it appealing to a wide range of investors.

Research

The first step in a successful real estate investment is research. You need to begin by researching the different types of real estate investment types so that you can decide if you are interested in rental properties, flipping properties, commercial real estate, or countless other types of real estate investments. Get a head start on your research by checking out this free special report on creating wealth by Robert G. Allen.

Once you’ve decided on your investment type it is time to move on to researching property listings. No matter what type of investment real estate you are interested in there are likely to be plenty of opportunities available in your community or the community in which you are buying. The key is in finding the right property at the right price to bring you the greatest possible profit potential.

Take the time to learn about specific properties, pros and cons of that property, growth in and around the property, rental history of the property -if you plan to rent, and property values of other comparable properties in the area. This information is what will help you make the right decision about whether a property is a wise investment, but remember there is always risk involved in real estate investing no matter how much research you do.

Create a Plan

Real estate investing is a business and all businesses need a plan in order to become successful. Take a little time to create a business plan before you get started. Some things you will want to include in your business plan for your real estate investments are your long and short-term goals. Are you planning on only buying one property or one type of property? Are you looking for a little cushion for retirement or do you want to make a livable income from your real estate investment? How do you plan to reach those goals?

Remember Rome wasn’t built in a day. It took years of consistent and concentrated effort to create an empire and to manage that empire. You need to have a plan not only for obtaining the real estate you are investing in but also for managing it once it is yours. Are you going to pay property managers to handle the day to day or are you going to be a “hands on” real estate investor?

Having a plan is more than simply having a road map for success. It is part of the process of creating a mind set for success. Whether your goal is a Fortune 500 worthy real estate investing enterprise or to create a little cushioning for your nest egg you are more likely to realize your goal when you have a well throughout out plan of action for doing so.

Take Action

All the planning in the world will not amount to anything if you never venture out and do the things you’ve been planning. Once you’ve done the research and created a plan the next step is to take action. You need to either arrange the financing, find a partner, or gather your own resources to invest and make your very first real estate investment.

One thing you need to keep in mind during various ups and downs of real estate investing is that the “how” of real estate investing is rarely as important as the “why”. If you focus on why you are doing it, you will find that an excellent foundation for success has been made. Don’t forget to visit Robert Allen’s website for a special report to help you learn the secrets of being prosperous.

Retirees today have a lot of living left to do. In the past they have gravitated to areas where they can settle down to enjoy their golden years. Today retirees are looking for places to hang their hats while they get out and about and kick up their heels. There are several things to consider when deciding on a great community for retirement living. Some of the cities listed below are excellent choices or might inspire you to find similar cities that are appealing to you.

Prescott, Arizona

This city isn’t in the middle of the desert. This city is a little above it all, which means it isn’t recommended for every retiree. Those who have lung and/or heart conditions may want to seek lower elevations for their retirement living. The benefits of Prescott are the small town atmosphere, the close community ties, and the access to modern conveniences along with the temperate climate that is enjoyable year round for most residents.

Venice, FL

It would simply be wrong to mention great retirement communities without bringing up the great state of Florida at least once. Venice, FL is a small Florida town on the Gulf of Mexico that hasn’t become lost in high rise condos and new housing developments. While the population is only around 20,000 there are still plenty to do to keep retirees busy. Among the great activities to enjoy in Venice are golf, social clubs, and active community center, weekly jazz concerts, and an impressive community theater.

San Francisco, CA

This is a town that isn’t often thought of as an ideal retirement community and yet it consistently ranks near the top of countless retirement community top 10 lists. Frisco has much to offer those who are enjoying their golden years. The public transportation is excellent, there is a strong arts community, there are community organizations to join throughout the city, and plenty of excellent shopping, cultural activities, and events throughout the year. The mild climate is another joy to many retirees though it may be a little wet for some. You should also keep in mind that there are plenty of world class medical facilities in San Francisco to keep you in good health to match the good spirits you are sure to enjoy living in this amazing city.

Indianapolis, IN

This is another city that isn’t given nearly enough credit but has much to offer retirees that aren’t ready to relegate themselves to the retirement home. There are excellent community groups and organizations for retirees, plenty of volunteer opportunities, an impressive arts community, museums, and sporting events to keep retirees quite active in their retirement. More importantly, Indianapolis promises a taste of all four seasons but hits on the milder side of them all.

Whichever city you decide to call home when you retire is sure to have much to offer. The one thing that is important to remember is that retirement is what you make of it. If you want to spend your golden years deep sea fishing you will never be happy in the middle of a cornfield. If these retirement cities aren’t interesting to you then perhaps they will plant the seeds for a city that is.

A short sale happens when a property is sold and the lender agrees to accept a discounted payoff, meaning the lender will release the lien that is secured to the property upon receipt of less money than is actually owed.

Many home buyers think there was no way they could stop their home from becoming a short sale. However, there are many steps to prevent this result.

First of all, buyers have to understand his loan fully, and what it requires to get into it and to manage it.  A mortgage broker is only as reliable as the information given to him or her - wrong information can only bring about disaster!

Once into the loan, it is up to the buyer to make normal payments and to understand when the loan would adjust to the newer and higher rate.  Generally, the home buyer has two years before this happens, more than ample time to change his lifestyle to being an owner of property, and this usually involves a sacrifice.  Home buyers give up many dinners out and buying that shiny new car!  Look at the cars in the driveways of the nicer homes on the block - most have older vehicles, not new ones. This is part of the sacrifice to owning a home.

Two years is available to learn how to manage finances and set up a liveable budget with careful analysis.  It doesn’t take a Master’s degree to know you can only spend what you make and to remember that the government collects a part of it.

Six months before the loan readjusts to the higher rate is when the homeowner needs to evaluate if he can make it financially or not. If he cannot make it, he does NOT have to immediately sell his home, as there are a number of steps to take, contrary to popular belief.

If a senior, find out if your city/county has any special programs as far as programs that will hold penalties for non-payment of property taxes .  California has many propositions to help out Seniors and Disabled.  Over 62?  Consider a reverse mortgage through an FHA lender.

How hard is it to rent out a spare room?  Got too much junk?  That junk is costing you the ability to receive rent from another person to share housing with you.  It is doable.  Fair Housing will allow you to discriminate against a different sex in the home so long as you are willing to share the kitchen and other areas, and not just rent the room.  There are many on-line sources to do share housing, check with your church,  even people where you work.  Someone is always looking to save up by renting out a room and storing their furniture.

While you at it, start looking around for rental housing.  It will be much easier to get into an apartment if you maintain a decent credit score.  Many places will deny persons who have bankrupcy or foreclosure on their credit report. Don’t let this happen!

Consider taking an extra job to make a little more money as you wait for the sale to happen. You may only need this during the term of selling your home. You’ll get a better price for it, and it will salvage your credit since you’re avoiding a short sale.

Parents who have children still living at home, 16 years or older will benefit financially if their child can help pay their expenses, whether college or high school.  There are many jobs available that young people can learn good skills such as paper routes and childcare.  Teach your children not to be lazy, and that they will be rewarded by holding a job.

Cut back on spending and only buy the most critical items.  Buy used or second-hand instead of brand new cars, furniture and even clothes.  How badly do you need that cell phone?  You can even do without cable TV if you buy up tapes and listen to the radio.  The radio is still free!

Food prices are escalating, but many people save going to the huge discount stores.  Don’t be shy about checking out the food banks in your area.  They will fill your cupboards with peanut butter and tuna, dried goods, that will maintain nutritional standards and cut back on some expenses that will still allow you to buy the fresh fruits and veggies you pay with whatever earnings you have.

Medical care can generally be managed by going to the County Hospital.  Here you may pay a small fee for visits, but prescriptions are free!   Everyone knows that COBRA is expensive if you lose your job, and the biggest loss is not just the income, but medical benefits.  You must be sure you are covered for any and all emergencies if they occur.  Get registered, and know that during this stressful time, you have a source in case of medical needs with only paying a minimal amount.

Find a means to get exercise since it pays to be healthy at this challenging point.  And nothing is cheaper than a walk around the block but beware of shopping for exercise or recreation - there are many vendors who want your buck!  Discipline  yourself not to pick up this or that that is only a dollar or two since it all adds up!

Hopefully the house you bought is near a bus or train route, good options if the car needs repairs or tires replaced. Its much cheaper than gasoline too.

There’s generally no reason for a short sale to happen if your smart.  If you are already down to your last dime, then immediately list your property and get it sold.  The longer you wait, the further behind you will become in house payments.  Start listing early. You can be a renter again, recoup your loses, save your credit, and be a survivor.

Today’s real estate market is one of the toughest that we’ve seen in decades. At least it is for sellers. We are currently experiencing what is known as a buyer’s market. Some locations are experience less of a real estate downturn than others but the current slump does appear to be across the board. So, what can you do to make your house more attractive to buyers in the current market?

Make them an Offer they Can’t Refuse

Buyers love bonuses. Offer a nice television or a home owner’s warranty to boost the odds of a sale. Offer to pay closing costs. There are all kinds of things you can throw in to sweeten the pot and entice potential buyers to wheel and deal. Be creative and see what other sellers are offering. The one thing you want to do is offer something better than the competition is offering at the moment.

Consider an Auction

The current trend is that homes will remain on the market for at least 9 months. If you aren’t interested or can’t afford to wait that long to sell your home. You might be interested in auctioning your home. This is something you will want to carefully consider since it is a risky maneuver but if you want your house sold right now, this could very well be an option.

Price it to Sell

While some Realtors will encourage you to start high and negotiate a better price it may be better, with the market as tight as it is, to start out with a very competitive price and offer incentives (mentioned above) to buyers who make a full price offer. Whatever you do, you can’t price your house what it went for 5 years ago and expect it to sell for that price today. It isn’t going to happen when the market is saturated with homes that sellers are desperate to get out of. You need to understand the dynamics of supply and demand and not expect to make a huge profit from the deal.

Make the Package a Little More Attractive

This is a market that is filled with attractive homes in attractive neighborhoods. You need to make sure that the house you are selling can stand up to the competition. Clean out the gutters, touch up the landscaping, clean the cobwebs from the basement corners. Making small cosmetic repairs can have a huge impact on the value of your home to potential buyers. It can even change the way you view your home making it more attractive to you. Curb appeal though is an absolute necessity. No one is going to buy if you can’t entice them to take a peak inside.

While this is not by any means an ideal time to sell your home it is far from impossible to sell a home in the current market. Keep the things mentioned above in mind and have a positive attitude. You’ll be amazed how far these things will take your home when it is time to sell.

It seems like such a simple process until you are faced with the first time purchase of a home. There is much more involved than boy and girl meet house. Boy and girl buy house. Boy and Girl move in. It would be nice if it were always that simple. In truth there are many steps that go on behind the scenes in order to make the sale of a house go smoothly. The problem is that buying a house isn’t something that the average person has the opportunity to practice on before the time arrives. If you follow this guide though you can save yourself a bit of heartache and several really large headaches throughout the home buying experience.

Pre-Qualify for a Loan

Do this before you ever look at a house that you are interested in buying. This helps you avoid looking at homes you can’t get approval for, gives you a guideline to follow as a potential budget, and saves your from finding out after making an offer and paying earnest money that you can’t get approval for a loan. You aren’t married to a company when you get pre approval but sellers will add more weight to your offer if you are pre approved for the amount you offer than if you are not.

Establish a Budget

After you’ve been pre qualified sit down with pen and paper and figure out how much you can really afford to take on each month as far as the total package goes. Keep in mind that there will be private mortgage insurance (assuming you don’t have 20% or more for a down payment), home owner’s insurance, property taxes, maintenance fees, and additional utilities related to home ownership that you aren’t accustomed to paying each month in addition to the principle and interest payments that will be due. Make sure you aren’t setting yourself up for failure and taking on more house than you can really afford. Once you’ve established your budget you have a clear view of the price range you can handle.

Find a Realtor and View Houses

Make sure that the houses you are checking out work within your price range. If your Realtor consistently shows you houses that are outside of your price range or do not match with your requirements (number of bedrooms and bathrooms, special features, etc.) then you may want to find one that will. Once you find a house that you are interested in plan another visit. Never make an offer on the first visit.

Make an Offer

Expect a counter offer but make an offer on the house you are interested in purchasing. Some sellers require earnest money to go along with the offer so be sure you have budget for this possibility. It is important to make your offer contingent upon the results of an appraisal and inspection. You also need to schedule them both as soon as the offer is accepted.

Buying a house is rarely a one step process. These steps are only the beginning. There is a lot of negotiations involved in the typical real estate transaction and there are times when a deal falls through at the last minute. If that happens to you begin the process over again and keep the things you learned during the last transaction in mind for the next one.

You can sell your home in any market. That is a fact that I have proven this over and over again in our slow declining market. To sell your home in any market you have to create value in the eyes of the buyer. In an up market even if you are slightly overpriced you will sell your home, because the market will come to you. In a down market, you must price your home 3-5% below the market value to create that value and overcome the buyers fears of the declining market.

Most of the time you will get more for your home if you price it right than if you over price and have to bring the price down latter, usually below where you should have started to begin with. The key is, don’t be greedy. Put yourself in the shoes of the buyer. Would you pay more for a house just because someone told you that they need that much? If you don’t let your emotions get involved with the sales price, and think logically you will sell your home quickly and many times for at or near full price.

Happy selling!

Lexington KY continues to beat the national real estate market in sales and amount of inventory.

While there was less activity in the market in terms of sales — 732 pending sales this July compared to 893 pending sales in July 2007 — there were also significantly fewer listings coming on the market, helping to decrease the total number of homes in the Lexington Area MLS.

There is an 8.3 month inventory available in the Lexington KY MLS, but the total number of new listings added to the system during the first half of 2008 is down from 12,118 in 2007 to 10,798 in 2008. The number of new listings coming on the market in July of this year is 1629 compared to 1673 in July of last year.

Average time on market increased marginally, from 87 days in 2007 to 90 days in 2008 for single family homes. Townhouses and condos continue to take slightly longer to sell, averaging 95 days on the market in 2008, up marginally from 94 days in 2007.

While median sales price for single family houses dropped 3% from $177,612 in 2007 to $172,105 in 2008, median prices for townhomes/condos rose slightly from $123,750 in 2007 to $124,500 in 2008.