We're in the midst of a challenging home-sale market in many areas. However, soft markets can provide opportunities for some home sellers. The trick is to price your home right for today's market.
The most difficult reality for most sellers to face is that prices in their neighborhood may have dropped during the last year or two. Some sellers will find that it may not make sense to sell if the probable sale price is too low.
If you have the luxury of waiting for a better market, stay put for now. Be sure to check with a knowledgeable real estate agent before you make a decision to move forward -- one who knows the local market well.
HOUSE HUNTING TIP: It is an advantageous time for move-up buyers, who may have to sell for less than they would have a few years ago. But, they may also pay a lot less for the home they buy.
A seller usually has an advantage selling when there isn't much competition from other listings. Even though the listing inventory was low in some areas at the end of 2007 and the beginning of 2008, anticipate that there will be more listings coming on the market in April and May -- the traditional home-selling season.
Today's home buyers are extremely price-conscious. If there is a lot to choose from, price will certainly be a big factor. A price that's too high for the market won't bring the desired result.
Homes don't necessarily lose value at the same rate in a soft market. In the current environment, buyers are more cautious about what they buy because they know that the property they buy might drop in value before it starts appreciating. They buy for the long term and are less prone to make compromises.
The homes that have what most buyers want tend to hold their value better in a down market than do homes that have an incurable defect. Here a few examples of defects that can't be cured: an awkward floor plan that can't be fixed, a location next to a noisy freeway or a house that is either up or down a lot of stairs.
Homes with defects that can't be corrected are easier to sell if there's low inventory, and it's a seller's market. We are now in a buyer's market. This doesn't mean you can't sell your home if it has an incurable defect. However, you will need to account for the deficiency in the price. Keep this in mind when you compare your home with one that sold recently that had level-in access, a livable floor plan, and wasn't on a busy street or next to a freeway.
The condition of your property will also be scrutinized more carefully in the current market than it would have been a few years ago. You can sell a property that has deferred maintenance. But, you will sell it more quickly and for a better price if you can repair defects and have the property looking great when it hits the market. If this is not possible, take this into consideration in your list price.
It's difficult to hit the market price for a property if there haven't been many recent sales in the neighborhood. If you miss the target and find that you're home is priced too high, lower it as soon as possible. A price reduction is no longer a stigma in this market.
THE CLOSING: Letting a listing sit on the market too long at a high price sends the wrong message to buyers and could result in a lower sale price if market prices in your area continue to decline.
By Dian Hymer
Saturday, September 19, 2009
Timing is key to making a fortune in real estate
Knowing when to buy, hold and sell property is the key to making a fortune in real estate. For homeowners, however, making a home purchase or sale decision is complicated by the fact that the investment involved is also the place you will call home.
To further complicate matters, timing your real estate transaction may be governed by factors beyond your control. Your boss could issue transfer orders at a time when the market is soft. It might not be the best time to sell. Or you could be expecting and discover that you're going to have twins. Before you know it, your two-bedroom home is too small so you decide to move. Perhaps the market is hot and you'll have no trouble selling. But, because the market is hot, you'll pay a premium for your replacement home.
The real estate market, like any market, tends to be cyclical. Ideally, you want to buy when the market is low and sell when the market is high. Recently, the real estate market in many areas around the country has been on an upward trend, with record sales volumes and appreciation rates running in the double digits in some areas. But, the market won't go up indefinitely. At some point, it will cool off.
It's usually recommended to plan on holding real estate for 5-10 years. This way you can ride out a dip in the market and sell when the market is on an upswing. However, after a couple of years of appreciation in the 10 to 20 percent range, it's tempting to sell and take the profit.
Before you make such a move, consider the following. Currently, the federal law governing capital gains on primary residences is a boon to homeowners who experience a lot of appreciation in a short time period. Once every two years, a homeowner who sells a primary residence is entitled to claim up to $250,000 of tax-fee gain. The exemption amount jumps to $500,000 for a married couple filing jointly. That is, providing that the homeowner has claimed the property as his primary residence for two of the last five years.
So, regardless of the recent appreciation rate, it usually makes sense to postpone a move until you've passed the two-year holding period. Check with your accountant if you're transferred before you reach the two-year deadline. You may be entitled to a portion of the tax-free gain exemption.
Another factor to consider if you're thinking of selling relatively soon after buying is the costs of sale. There are costs going in and costs when you sell. You may have earned good appreciation in a short time period. But, when you factor in the costs of sale, you may find that you barely break even. Unless you've found a great property that better suits your long-term needs, or you're paying a discounted price on the new place, you may be better off staying put.
Market value issues can affect the feasibility of a profitable sale for owners who bought relatively recently. After only a short period of ownership, the market may not support a price that's high enough to pay off your mortgage and cover closing costs. In a down market, you may have to dip into savings to make up the difference between the selling price and your costs of sale.
THE CLOSING: Even if you find a buyer who's willing to pay a high price for your home, you may have trouble getting it appraised for the price. The sale could be in jeopardy if there aren't any comparable sales in the neighborhood to support your high selling price.
To further complicate matters, timing your real estate transaction may be governed by factors beyond your control. Your boss could issue transfer orders at a time when the market is soft. It might not be the best time to sell. Or you could be expecting and discover that you're going to have twins. Before you know it, your two-bedroom home is too small so you decide to move. Perhaps the market is hot and you'll have no trouble selling. But, because the market is hot, you'll pay a premium for your replacement home.
The real estate market, like any market, tends to be cyclical. Ideally, you want to buy when the market is low and sell when the market is high. Recently, the real estate market in many areas around the country has been on an upward trend, with record sales volumes and appreciation rates running in the double digits in some areas. But, the market won't go up indefinitely. At some point, it will cool off.
It's usually recommended to plan on holding real estate for 5-10 years. This way you can ride out a dip in the market and sell when the market is on an upswing. However, after a couple of years of appreciation in the 10 to 20 percent range, it's tempting to sell and take the profit.
Before you make such a move, consider the following. Currently, the federal law governing capital gains on primary residences is a boon to homeowners who experience a lot of appreciation in a short time period. Once every two years, a homeowner who sells a primary residence is entitled to claim up to $250,000 of tax-fee gain. The exemption amount jumps to $500,000 for a married couple filing jointly. That is, providing that the homeowner has claimed the property as his primary residence for two of the last five years.
So, regardless of the recent appreciation rate, it usually makes sense to postpone a move until you've passed the two-year holding period. Check with your accountant if you're transferred before you reach the two-year deadline. You may be entitled to a portion of the tax-free gain exemption.
Another factor to consider if you're thinking of selling relatively soon after buying is the costs of sale. There are costs going in and costs when you sell. You may have earned good appreciation in a short time period. But, when you factor in the costs of sale, you may find that you barely break even. Unless you've found a great property that better suits your long-term needs, or you're paying a discounted price on the new place, you may be better off staying put.
Market value issues can affect the feasibility of a profitable sale for owners who bought relatively recently. After only a short period of ownership, the market may not support a price that's high enough to pay off your mortgage and cover closing costs. In a down market, you may have to dip into savings to make up the difference between the selling price and your costs of sale.
THE CLOSING: Even if you find a buyer who's willing to pay a high price for your home, you may have trouble getting it appraised for the price. The sale could be in jeopardy if there aren't any comparable sales in the neighborhood to support your high selling price.
Wednesday, September 9, 2009
For Immediate Release
Dwayne Wyatt
Wyatt Real Estate
323-718-8953
323-588-2181
wyattre@juno.com
www.dwaynewyatt.com
New Los Angeles Real Estate Website Features Listings, Rental Property, & Vacation Properties
Los Angeles, California - September, 9 2009 - Los Angeles, CA Real Estate Website Features Homes & Information for First Time Buyers, Sellers & Investors. Residential and Commercial Rental Property, & Vacation Properties Serving the Southern California cities of Los Angeles, Carson, Compton, Torrance, Watts, Bell, Bell Gardens, Gardena, and the surrounding area this Los Angeles real estate website offers unique features, full service and a perspective on the Los Angeles, California Real Estate market.
Los Angeles, California - Los Angeles real estate agent, Dwayne Wyatt is pleased to announce the launch of his new Los Angeles real estate website: www.DwayneWyatt.com The newly designed website is designed to bring those interested in Los Angeles, California real estate a wealth of information through a single online point of access. The user-friendly website provides information, insights and listings for prospective property owners and real estate investors covering all aspects of Los Angeles, CA real estate including, homes for sale, buyer’s, sellers, first time home buyers, bank owned properties, condos for sale in Los Angeles and foreclosure properties in the Los Angeles California area.
The interactive real estate website features on www.DwayneWyatt.com include complete and searchable Los Angeles real estate listings for Los Angeles, California real estate, Gardena California real estate, Carson California and Compton California, and all of the Los Angeles California area. There are also unique articles on www.DwayneWyatt.com that help and give advice on all the steps on the selling, moving and the home purchase process. Wyatt Real Estate is a full service company that deals with first time home buyers, home sellers, investors, bank owned properties, foreclosures, condos and town houses. Wyatt Real Estate continuously strives for excellence and the satisfaction of their clients. The enhancements to www.DwayneWyatt.com reflect their continued commitment to finding better ways to serve clients and prospects.
Wyatt Real Estate is a family owned firm that was originally started by Mable L Wyatt. Wyatt Real Estate has been a fixture in the Los Angeles community for over 40 years. Located just south of downtown Los Angeles and currently operated by Dwayne Wyatt, Wyatt Real Estate offers assistance with the purchase and/or sale of residential and commercial property. Our full service website, www.DwayneWyatt.com offers free helpful information and advice for sellers and buyers. There is also information for first time buyers, foreclosures and general articles of interest. It also features a fully searchable database of homes for sale.
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Wyatt Real Estate
323-718-8953
323-588-2181
wyattre@juno.com
www.dwaynewyatt.com
New Los Angeles Real Estate Website Features Listings, Rental Property, & Vacation Properties
Los Angeles, California - September, 9 2009 - Los Angeles, CA Real Estate Website Features Homes & Information for First Time Buyers, Sellers & Investors. Residential and Commercial Rental Property, & Vacation Properties Serving the Southern California cities of Los Angeles, Carson, Compton, Torrance, Watts, Bell, Bell Gardens, Gardena, and the surrounding area this Los Angeles real estate website offers unique features, full service and a perspective on the Los Angeles, California Real Estate market.
Los Angeles, California - Los Angeles real estate agent, Dwayne Wyatt is pleased to announce the launch of his new Los Angeles real estate website: www.DwayneWyatt.com The newly designed website is designed to bring those interested in Los Angeles, California real estate a wealth of information through a single online point of access. The user-friendly website provides information, insights and listings for prospective property owners and real estate investors covering all aspects of Los Angeles, CA real estate including, homes for sale, buyer’s, sellers, first time home buyers, bank owned properties, condos for sale in Los Angeles and foreclosure properties in the Los Angeles California area.
The interactive real estate website features on www.DwayneWyatt.com include complete and searchable Los Angeles real estate listings for Los Angeles, California real estate, Gardena California real estate, Carson California and Compton California, and all of the Los Angeles California area. There are also unique articles on www.DwayneWyatt.com that help and give advice on all the steps on the selling, moving and the home purchase process. Wyatt Real Estate is a full service company that deals with first time home buyers, home sellers, investors, bank owned properties, foreclosures, condos and town houses. Wyatt Real Estate continuously strives for excellence and the satisfaction of their clients. The enhancements to www.DwayneWyatt.com reflect their continued commitment to finding better ways to serve clients and prospects.
Wyatt Real Estate is a family owned firm that was originally started by Mable L Wyatt. Wyatt Real Estate has been a fixture in the Los Angeles community for over 40 years. Located just south of downtown Los Angeles and currently operated by Dwayne Wyatt, Wyatt Real Estate offers assistance with the purchase and/or sale of residential and commercial property. Our full service website, www.DwayneWyatt.com offers free helpful information and advice for sellers and buyers. There is also information for first time buyers, foreclosures and general articles of interest. It also features a fully searchable database of homes for sale.
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