This article was written and I found it very helpful to today's market.
I hope you take the time to read it and understand how and why Buyer's have their pick. 

 The Art of Contrarian Investing - Buy Real Estate Now!

Motivated Sellers, Low Interest Rates, Wide Selection Good News for Buyers
Article Written by:  Fred Eckert from California

Many real estate pundits and investors say that they are waiting for prices to come down, before they purchase an investment property.  That may make sense for investors, because they want the property to have a positive cash flow right away (be profitable as a rental).  If, however, you are a buyer wishing to own a home to live in, it makes tremendous sense to buy now, when others aren’t buying. This technique is called contrarian investing, in other words, buying when others are selling instead of buying when everyone is trying to buy. 

Here are the major benefits to buying now…

• Lots of sellers (including banks and owners who are upside down), are highly motivated to sell.
• Sellers are offering incentives, like paying for closing costs, interest rate buy downs (to help the buyers get better financing), seller financing, price reductions, paying for HOA dues or club memberships, parking fees, etc., in order to get buyers to bite.
• Lenders now have to operate in this more restrictive and competitive market and are offering incentives to get buyers to use their services.  Some lenders are offering to pay for appraisals, waive fees, waive prepayment penalties and give other cost saving considerations.
• Little competition from other buyers means less chance of paying too much(this competition caused buyers to probably overpay during the last rising market frenzy).
• Historically low interest rates are here-now, but they may be higher in the future (Fed  Governor, Frederick Mishkin, was quoted in USA Today on November 6th as saying, “the rate cut could be reversed, if the economy performs well or inflation intensifies “).
• Buyers will be living in their own home, benefiting from pride of ownership, future appreciation, and will probably experience a better quality of life.  They will not be paying rent (for something that will not appreciate for them, as renters).
• Buyers may receive mortgage interest writeoffs… for income tax savings.
• Market downturns affecting value, would be on paper only.   The lower value of property, in a flat market, has minimal  or no adverse impact, unless the buyer decides to sell during that time. 
• You will get the inviting prospect of significant gains when a rising real estate market returns (as it has done multiple times in the past).  Buyers should plan on holding property bought now, for at least five to ten years to further ensure profitability (the more time the home is held, usually means more equity and profit when selling).
• Though stock and real estate investments are both good , the stock market is likely to have more frequent and unpredictable changes. (An article by Jason Hartman in Broker Agent News, 2007, had this: “That's because the stock market is a fickle thing, unpredictable, intangible asset that has little, if any, tax benefits. Real estate, on the other hand, is far less volatile, has superior tax benefits, significant cash flow and a high degree of leverage”).

Additional considerations for buyers are:

• Use a licensed REALTOR, to help protect you and find listings suitable for your needs.
• Get pre-approved(not just pre-qualified), by a couple of professional and experienced lenders.
• Review the statistics from the Multiple Listing Service (MLS), to help you determine market time and average/median list and sold prices.  
• Ask your REALTOR to find the homes that have been listed the longest (these sellers are most likely very motivated).
• Try to buy without emotional attachment to a particular home…you can always turn one that isn’t your first choice, into your dream home.
• Get a home inspection done, to see needed work.
• If repairs are needed, get a licensed contractor to give you an estimate, in writing, to submit with your offer.
• Get your own buyer appraisal …a headline in The Washington Post by Kenneth Harney, February 3, 2007  said that  … 90% of appraisers were pressured to inflate prices.  It makes sense then, to have an appraiser working for you, not the seller, before you buy.
• Use a cover letter, summarizing your market trend statistics, appraisal information, loan approval, home inspection results, contractors estimate etc., with your offer, to show the seller that your offer is sound.  (A sample cover letter follows.)

Cover Letter for Buying Property.

We are very interested in buying the property at________________________________________________________________. 

Our offer is based on our own appraisal (attachment A), a home inspector’s report (attachment B) and a contractor’s estimate of necessary repairs (attachment C).  In addition, an analysis of the market trend in the subject property’s zip code (attachment D) is included.

Please review the attachments and our offer.  Let us know your decision by ______________________.  We hope you will respond favorably or make a counter offer.  With the market in its current downward trend, we believe our offer is fair and reasonable.  Please call us if you have any questions.

Sincerely,

• Ask your REALTOR to deliver your offer, in person, to the listing agent, to improve your chance of getting it accepted. 
• Remember to compare lender financing options and pricing, on an “apples to apples basis”, not just on the rate quoted.

Remember this quote…”Be willing to do today what others won’t do, so you’ll have what others won’t have tomorrow”.

Good House Buying!

Angie Romero

angie@fir.com

Remember to visit www.primeglobalsolutions.com for a list current properties, or subscribe to receive a weekly list of short-sales and wholesale specials!

I do try to consciously practice gratitude every day, but certainly Thanksgiving is a reminder to us all.  I am thankful for the people in my life, both personal and professional.  I grateful and happy for so many different reasons and for the moments these people walked into my life.

I wish you all, the very best that this world has to offer and that you too may find the gratefulness within your life.

Angie Romero, Realtor,   angie@fir.com or Karina Romero, Realtor, karina@fir.com

Times are tough.  Almost every where we look we see homes for sale, and more than not, they are distressed sales.  A distressed sale is when a home owner (or even developer) can’t afford to maintain it financially.  Yes, the subprime market took its hit and crashed, leaving many homeowners with a harsh payment. 

However, we as professionals can assist homeowners.  Losing a home to a bank isn’t a pretty thing.  However, people are some what afraid of lenders.  Don’t be.  They are in the business of lending money.  The banks aren’t really interested in “getting” your house. They have no emotional value to it… but they do want the money that was lent out to come back in.  Again, a bank’s business is to lend money and now they too have found themselves seeking ways to regain their money, even if it’s just part of it.  Something is always better than nothing!

That is what a short sale is.  The owner can’t afford to keep their monthly payments.  The homeowner is in Financial Distress, yet they still have the property.  If the homeowner has entered a pre-foreclosure status, they are probably better off trying to atleast sell it to another person before actually letting it go to court and lose it as a Foreclosure.  Once the property has reached foreclosure, it is completely out of the hands of the owner, and now the bank is stuck with a property they need to liquidate.

As you know, credit in this country is crucial.  A short sale doesn’t harm your credit as bad as a foreclosure.  If you are able to find a buyer and the bank agrees to a “short sale” price, your credit will show that you paid off your loan to the lender “as agreed” and will probably show only late payments in your credit.

If you lose your home through a court and it is declared foreclosure, that is the word that will appear in your credit for 7 years. 

As mentioned earlier, times are tough and this is nationwide!  Talk to your lender. See if there is something that you can arrange.  If not, put it up for sale.  You don’t really have anything to lose.  However, you could find someone to purchase your home, make a deal with the bank, and walk away with out being hit so hard. 

If you are interested in assistance or would like more information please contact me at angie@fir.com

Angie Romero

Realtor

Remember to visit www.primeglobalsolutions.com for a list current properties, or subscribe to receive a weekly list of short-sales and wholesale specials!

The last couple of years Sellers were running the Real Estate market.  Buyers were outbidding one another for the properties. As within all fields and industries Real Estate also has it's ups-and-downs, and we all well know right now that it’s at a dangerously low turn.  However, people still need places to live, relocations to consider, and Investments to be made!

The financial economic hardship for some is now the Investment Opportunities for those seeking to take a stake at Real Estate.  And why shouldn't they?  With Sellers trying to sell, and the majority of the Buyers struggling with the Mortgage Fall outs as well, the Real Estate Market is now left to the Investors.

Those who have the will and economic power to take their future into their own hands.  Many Investors today are purchasing Resale’s and Foreclosures (Short Sales) at amazingly low prices, and are renting them out easily to Tenants that are in the need of making that Rental Contract.  As the market stabilizes once again, these Investors are making wise decisions... now!.

Today's Real Estate Market is:  for the WISE INVESTORS!

Visit www.PrimeGlobalSolutions.com for more information or to view current listings and opportunities.

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