One-way to rebuild a healthy real estate market is to decrease the amount of homes available for sale. Most of our recent efforts have been geared towards increasing the demand to buy homes. It's pretty obvious that several experts, and the media, aren't going to stop highlighting every negative aspect in the real estate market, so it might be a little difficult to increase demand. It's their job to report the news, but why can't they report positive news as well? When you want to know about something don't you turn to the news or a well known expert?
What if a program, or several programs, were developed that encouraged owning a rental property or keeping your home off the market? If there were a few programs, homeowners could choose which works best for their situation.
The government could give tax incentives to sellers that agreed to keep their property off the market for X-amount of years? This might entice investors or homeowners because their payoff from the sale of their home, if they agreed to hold onto their investment, would be greater because of the tax incentives.
The government, or lenders, could offer an annuity type of loan to homeowners. The loan would slowly tack onto the principle of the home loan each month. Homeowners wouldn't receive a large lump sum of money, but their mortgage payment would decrease by X-amount each month and would slowly increase over the years. The lender and borrower would determine how much of a loan was suitable based on the homeowner's needs and the lenders ability. The lender could stop paying the annuity at anytime if a borrower failed to meet their payment obligations.
Lenders could offer locked or lower interest rates to homeowners that agree not to refinance or sell their homes for X-amount of years (same concept as a pre-payment penalty). They could set the homeowners up on steadily increasing payment plan giving them lower payments initially, similar to an ARM, but instead of giving these incentives to new customers, lenders will be trying to avoid costly foreclosures.
Hopefully, these programs would keep homes off the market and help regulate when homes are placed back on the market. Programs like these would interest some sellers because many of them can't sell their homes right now; in many cases, if they do, they'll take a loss. I think most sellers would love to hold if they could cover or minimize their negative monthly cash-flow and others will be happy with keeping more of their money from the eventual sale of their home(s). Not everyone would qualify or benefit from programs like these but it could be a nice way to decrease the supply of homes for sale and improve the health of the real estate market.
I'm pretty sure that we'll need to develop several solutions to fix some of the mistakes or oversights that helped fuel this "over" correction. I know real estate is cyclical, but feel that some decisions have lead to a rougher market. There are some possible downsides to this solution such as the probable increase in new home cancellations, possibility of homeowners defaulting on new agreements and difficulty in implementing these plans, but there definitely could be a viable solution found in focusing on our supply of homes for sale as opposed to trying to increase the demand. Many of our markets have great potential and with a little help, we could be back on track!
Search New Homes Arizona, Arizona Home Builders and Arizona Real Estate today!
Article Source: http://EzineArticles.com/?expert=Jayson_Gibson
Thursday, November 1, 2007
Home Real Estate Warranties
Home warranties are a great way of adding a little more security to the Dallas home buying experience. When unexpected problems occur with major systems or appliances, a home warranty can save you thousands in repairs and replacements. Be sure to ask for a "seller provided" warranty when purchasing a new home, and save yourself some headaches down the road.
The average home warranty covers most major systems and appliances that come with a home. These include the water heater, heating system, dishwasher, garbage disposal, electrical system, plumbing system, a range oven, cook tops, and even things like built in microwaves or door bell wiring. In other words, basic home warranties cover the built-in systems and appliances if they were to break from normal use. You might have noticed that it does not cover the roof, doors and walls, or any items not built into the structure. Don't be fooled by thinking these things will be covered in a basic home warranty if you do not see them in writing. You can of course add these things to an optional, or additional, warranty but these warranties are not always paid for by the seller. Optional warranties might also include the washer and dryer, well pumps, air conditioning, swimming pools and hot tubs, as well as a variety of other valuable home amenities.
Like most warranties, they do not usually cover preexisting conditions. This is why it is important to have the real estate property professionally inspected. An inspection will help you to determine what preexisting problems the home might have so that you can address them in negotiations with the seller. Perhaps it is necessary that the seller make some repairs prior to your move-in date. Do not assume that you will be able to fall back on a home warranty after purchasing the home.
Warranties are offered by many Dallas real estate companies or agents, and are often provided by the seller of the property. As part of the transaction, the seller might pay for a basic home warranty. This is attractive to buyers and provides much after sale liability coverage for the seller as well as providing buyers with the protection they need from unforeseen problems. The cost of a one-year home warranty ranges from $250 to $500 with a deductible payment of $25 to $50. Optional warranties are added on at an additional cost individually. This is a very low cost in comparison to the sale of the home, and can even be paid through escrow at closing by the seller.
Warranties can make everyone sleep a little better at night. Sellers can worry less about "after sale" liability, and buyers can feel secure that they are protected from certain potential system or appliance disasters. If you are a homebuyer, consider asking the seller about a basic warranty program, it could save you a bundle.
About the Author: A true innovator, Von Sutten founded Ready Real Estate in order to put more money back into the pocket of the Dallas real estate buyer. Ready Real Estate has since grown to become a top Dallas real estate company.
Article Source: http://EzineArticles.com/?expert=Von_Sutten
The average home warranty covers most major systems and appliances that come with a home. These include the water heater, heating system, dishwasher, garbage disposal, electrical system, plumbing system, a range oven, cook tops, and even things like built in microwaves or door bell wiring. In other words, basic home warranties cover the built-in systems and appliances if they were to break from normal use. You might have noticed that it does not cover the roof, doors and walls, or any items not built into the structure. Don't be fooled by thinking these things will be covered in a basic home warranty if you do not see them in writing. You can of course add these things to an optional, or additional, warranty but these warranties are not always paid for by the seller. Optional warranties might also include the washer and dryer, well pumps, air conditioning, swimming pools and hot tubs, as well as a variety of other valuable home amenities.
Like most warranties, they do not usually cover preexisting conditions. This is why it is important to have the real estate property professionally inspected. An inspection will help you to determine what preexisting problems the home might have so that you can address them in negotiations with the seller. Perhaps it is necessary that the seller make some repairs prior to your move-in date. Do not assume that you will be able to fall back on a home warranty after purchasing the home.
Warranties are offered by many Dallas real estate companies or agents, and are often provided by the seller of the property. As part of the transaction, the seller might pay for a basic home warranty. This is attractive to buyers and provides much after sale liability coverage for the seller as well as providing buyers with the protection they need from unforeseen problems. The cost of a one-year home warranty ranges from $250 to $500 with a deductible payment of $25 to $50. Optional warranties are added on at an additional cost individually. This is a very low cost in comparison to the sale of the home, and can even be paid through escrow at closing by the seller.
Warranties can make everyone sleep a little better at night. Sellers can worry less about "after sale" liability, and buyers can feel secure that they are protected from certain potential system or appliance disasters. If you are a homebuyer, consider asking the seller about a basic warranty program, it could save you a bundle.
About the Author: A true innovator, Von Sutten founded Ready Real Estate in order to put more money back into the pocket of the Dallas real estate buyer. Ready Real Estate has since grown to become a top Dallas real estate company.
Article Source: http://EzineArticles.com/?expert=Von_Sutten
House Buying for the Expecting Couple
Few things are as fulfilling as becoming a parent. To watch as your bundle of joy wriggles his tiny toes and smiles his toothless smile is sheer bliss. Other more experienced parents and loved ones come up with all kinds of advice for the young parents. The baby gets heaps of presents even before it is born. Shopping for the baby is a thrilling time as you choose from among hordes of things that the baby could use, wear, or play with.
However, even as you enjoy the process of becoming parents, there are some serious questions that need to be answered. One of the first of these is regarding the size of your house. The first house that you moved into may have been perfect for you as a couple. But will it be all right for a couple and a child who is growing up? As anyone who has ever thought about expanding their families already knows, one invariably has to move to a bigger house when one is ready to have children. Even if you do not make the move before the baby is born, in a few years time, you may be compelled to do so.
But shifting from one house to another is not the easiest thing in the world. Moreover, now that you have a family, it would make sense to go in for an ownership house. Yes, many young couples decide to buy their first house when they come into the family way. At the same time, one need not iterate that this is expensive business. With a baby on the way, it may not seem like the best idea to decide to buy a house. Yet, you should be aware that expenses will only keep increasing. If you are hoping to shift to a better house some day, there is no time like the present.
Once you have made the decision to make that shift, you will have to look at a number of houses. Ideally, you should be looking for houses that will fit your budget. This is not to say that you will be paying the entire amount from your savings account. Most of us do not have the savings to purchase a house at any time. The affordability problem is further compounded in the case of a young couple. But that should not deter you from getting a house of your own. You could always avail of a mortgage plan to help you out.
Every lender offers a number of great mortgage deals. But you will have to sift through them to find the best one. Make sure you take into account factors such as the rate of interest and the term of the loan. A fixed, low rate of interest coupled with a period of say twenty years could be an affordable choice for a young couple. A variable rate of interest might turn out to be a great bargain when the market rates are low. Discounted mortgages are also full and plenty. But there are many other permutations and combinations that you could come up with.
Article Source: http://EzineArticles.com/?expert=Ajeet_Khurana
However, even as you enjoy the process of becoming parents, there are some serious questions that need to be answered. One of the first of these is regarding the size of your house. The first house that you moved into may have been perfect for you as a couple. But will it be all right for a couple and a child who is growing up? As anyone who has ever thought about expanding their families already knows, one invariably has to move to a bigger house when one is ready to have children. Even if you do not make the move before the baby is born, in a few years time, you may be compelled to do so.
But shifting from one house to another is not the easiest thing in the world. Moreover, now that you have a family, it would make sense to go in for an ownership house. Yes, many young couples decide to buy their first house when they come into the family way. At the same time, one need not iterate that this is expensive business. With a baby on the way, it may not seem like the best idea to decide to buy a house. Yet, you should be aware that expenses will only keep increasing. If you are hoping to shift to a better house some day, there is no time like the present.
Once you have made the decision to make that shift, you will have to look at a number of houses. Ideally, you should be looking for houses that will fit your budget. This is not to say that you will be paying the entire amount from your savings account. Most of us do not have the savings to purchase a house at any time. The affordability problem is further compounded in the case of a young couple. But that should not deter you from getting a house of your own. You could always avail of a mortgage plan to help you out.
Every lender offers a number of great mortgage deals. But you will have to sift through them to find the best one. Make sure you take into account factors such as the rate of interest and the term of the loan. A fixed, low rate of interest coupled with a period of say twenty years could be an affordable choice for a young couple. A variable rate of interest might turn out to be a great bargain when the market rates are low. Discounted mortgages are also full and plenty. But there are many other permutations and combinations that you could come up with.
Article Source: http://EzineArticles.com/?expert=Ajeet_Khurana
Buying Home
Buying a home is one of the most exciting and stressful experiences in most people's lifetimes. Because the interest rates were lower, and there were more financing options, more Americans than ever have been able to buy homes since the year 2000. The word "home" has deep meaning to most people, so it seems only natural that this should be a well-considered endeavor. Question number one is whether or not you really can afford on-going monthly payments for the size / location home you desire. If, for example, you're having trouble with rent, you're probably going to struggle with mortgage payments too. Similarly if you have a bad credit history or if you're not working a dependable job, it's going to be hard to secure a reasonable mortgage.
Having said that, if you feel confident about buying, many websites offer online mortgage calculations. So if you find a few listings that sound like they're perfect, in an area you want to live, plug in the purchase price listed. Note that most mortgage calculators will allow you to figure by various lengths (10, 20, 30 year), fixed or variable rates, and some will even help you calculate annual taxes! Based on this information you can shop smarter. Do remember, however, that the mortgage is just the beginning - all your utilities including water get added on to that.
Next make your wish list - all the things you want in a home. Siding or not? Driveway or not? Fenced yard or not? Think long term, including potential family growth. For example, you might love big, old homes but these houses require more upkeep and maintenance that gets difficult as one gets older. Remember you're buying for 30 years, not just today. On the other hand, older homes typically reside in well-established communities and may have lower property taxes. Then there's location. Where you live determines school district, taxes, building regulations etc. Know your potential neighborhood. How easy is it to get where you want, when you want to get there? How well are the roads maintained? All of these little things affect how happy you will be in your home for the years ahead.
After all this minutia you're ready to find a real estate agent. In this case, networking and word of mouth really does help. You want an agent who knows your area, who listens to what you want, and provides you with information in a timely manner. For example, a good agent will know what homes are selling for in a specific neighborhood, and can therefore tell you if a specific house is overpriced. Additionally a good agent walks you through the whole process of home buying from pre-qualification to signing final paperwork, professionally, checking each step of the way that the buyer understands any issues or concerns.
As you look at houses with your agent, try everything. Check the water pressure, look for cracks and watermarks, think about the layout and your lifestyle (does your furniture fit?). Overall, try to see yourself in this space for a long time and see how you feel after pondering that. It's recommended that you review at least 15 homes before buying, and even then getting a home inspection before making an offer final.
Having said that, if you feel confident about buying, many websites offer online mortgage calculations. So if you find a few listings that sound like they're perfect, in an area you want to live, plug in the purchase price listed. Note that most mortgage calculators will allow you to figure by various lengths (10, 20, 30 year), fixed or variable rates, and some will even help you calculate annual taxes! Based on this information you can shop smarter. Do remember, however, that the mortgage is just the beginning - all your utilities including water get added on to that.
Next make your wish list - all the things you want in a home. Siding or not? Driveway or not? Fenced yard or not? Think long term, including potential family growth. For example, you might love big, old homes but these houses require more upkeep and maintenance that gets difficult as one gets older. Remember you're buying for 30 years, not just today. On the other hand, older homes typically reside in well-established communities and may have lower property taxes. Then there's location. Where you live determines school district, taxes, building regulations etc. Know your potential neighborhood. How easy is it to get where you want, when you want to get there? How well are the roads maintained? All of these little things affect how happy you will be in your home for the years ahead.
After all this minutia you're ready to find a real estate agent. In this case, networking and word of mouth really does help. You want an agent who knows your area, who listens to what you want, and provides you with information in a timely manner. For example, a good agent will know what homes are selling for in a specific neighborhood, and can therefore tell you if a specific house is overpriced. Additionally a good agent walks you through the whole process of home buying from pre-qualification to signing final paperwork, professionally, checking each step of the way that the buyer understands any issues or concerns.
As you look at houses with your agent, try everything. Check the water pressure, look for cracks and watermarks, think about the layout and your lifestyle (does your furniture fit?). Overall, try to see yourself in this space for a long time and see how you feel after pondering that. It's recommended that you review at least 15 homes before buying, and even then getting a home inspection before making an offer final.
Article Source: http://EzineArticles.com/?expert=Hayi_Mansoor
Buying Sheriff Sale Homes
You ever wonder what sheriff sale auctions are all about? Well, it's a great way to find a good and sturdy investment at a price considerably less than market value. When a homeowner no longer makes payments to their mortgage, the lender will foreclose on the property. The home is then put in an auction for sale to the highest bidder so that the lender or government agency can recoup their money. If you're thinking about taking advantage of a sheriff auction in your neck of the woods, there are some quick things to keep in mind.
One very important thing to know about sheriff auctions is that whatever you buy at one of these auctions is "as is". The property you purchase comes as it is which means that it may be a bad idea to purchase a home without actually seeing it first. It is very important to view and research the property before opening your checkbook and bidding on something that could be a bad idea. So get prepared and find out what kind of investment you are willing to bid on before you actually do it.
Also, it can be really easy to miss one of these sheriff sale auctions. They never seem to have a specific time or date set when holding these public sales. You can usually find information about them in newspapers and public postings that you have in your local area. Sometimes, places such as county libraries and other state offices post this type of information for people that are interested.
Finally, be prepared with your highest bid offer. People don't understand what is a good deal versus what they can afford. At a time, when the market isn't at its best, it would be a good idea to remember that you won't be able to resell for sometime if you're wanting to flip the property. So along with your home research you should research your own financial resources and make sure that you're covered no matter what kind of investment you get into. Sheriff sales can be a great way to get a good investment that will turn very profitable in the future; you just have to go about it the right way.
For Sale Owner Homes is the largest free FSBO website. Find or post homes for sale by owner to be viewed nationwide absolutely free. ForSaleOwnerHomes.com is the one service that helps you save when finding or selling a your next home.
Article Source: http://EzineArticles.com/?expert=Karim_El_Sheikh
One very important thing to know about sheriff auctions is that whatever you buy at one of these auctions is "as is". The property you purchase comes as it is which means that it may be a bad idea to purchase a home without actually seeing it first. It is very important to view and research the property before opening your checkbook and bidding on something that could be a bad idea. So get prepared and find out what kind of investment you are willing to bid on before you actually do it.
Also, it can be really easy to miss one of these sheriff sale auctions. They never seem to have a specific time or date set when holding these public sales. You can usually find information about them in newspapers and public postings that you have in your local area. Sometimes, places such as county libraries and other state offices post this type of information for people that are interested.
Finally, be prepared with your highest bid offer. People don't understand what is a good deal versus what they can afford. At a time, when the market isn't at its best, it would be a good idea to remember that you won't be able to resell for sometime if you're wanting to flip the property. So along with your home research you should research your own financial resources and make sure that you're covered no matter what kind of investment you get into. Sheriff sales can be a great way to get a good investment that will turn very profitable in the future; you just have to go about it the right way.
For Sale Owner Homes is the largest free FSBO website. Find or post homes for sale by owner to be viewed nationwide absolutely free. ForSaleOwnerHomes.com is the one service that helps you save when finding or selling a your next home.
Article Source: http://EzineArticles.com/?expert=Karim_El_Sheikh
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