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Cost to rent is rising over home buying

If you thought now is the time to buy, you couldn’t be more right. While mortgage rates are down, rental prices are rising, and not just in Florida. Rents are rising all over the U.S. Here’s an article from the Tampa Tribune that sets the recored straight: Rent prices continue to surge like a red tide in the Tampa Bay area — something few welcome. And while many home prices are more affordable than rent right now, people aren’t lining up to buy. Florida’s housing crash during the recession forced out hundreds of homeowners and is still keeping some out due to tightened loan restrictions. Some suffered credit setbacks and are afraid to jump back in, experts say. Still others are steering clear of home buying out of fear of a future crash. That means there are a lot more renters these days dealing with those rising monthly lease payments. A robust rental market means rents will continue to go up with the demand. Eventually, experts say, it will get to the point that the average consumer looking to rent won’t be able to afford a decent house in a decent neighborhood. It’s not just happening here. Rent has gone up in all of the nation’s 11 largest cities, according to a New York University Furman Center study commissioned by Capital One and released in draft form this week. Rental costs have swelled faster than income for most. Low-income renters in all 11 cities studied “were overwhelmingly rent burdened and became only more so” between 2006 and 2013, according to the NYU report. The study found that the growth in the rental stock in all of the cities was due to a shift in homes previously owner-occupied. “There are a couple of other takeaways as well,” said Sean Capperis, one of the study’s authors. “With increased demand for renting in many cities and supply not keeping up, vacancy rates fall, rents rise and more struggle with the cost of housing.” Of the 906 homes sold in Hills­borough County in November, 45 percent were purchased for either second homes or rental income. In Pinellas County, of 1,697 homes sold, 54 percent were purchased for second homes or investment, according to RealtyTrac, one of the nation’s leading sources for housing data. A portion of the purchases most certainly is due to the flock of snowbirds that make their way to the Sunshine State each year and purchase second homes, said Daren Blomquist, vice president of RealtyTrac. But most of it is due to what are known as institutional investors, he said. “I refer to the recovery we are seeing as an investor-driven recovery,” Blomquist said. “Wall Street and private equity firms that created massive funds to purchase single- family homes as rentals play a big role. They’ve seen Florida as a great place because it has homes at good price points, typically $150,000 to $200,000, that they can turn around and rent. And there’s strong rental demand. “In general, we’ve seen investor purchases pick up nationwide and even more so in Florida.” And while cash investors appear to have backed off a bit here as housing prices have begun to recover, most of the homes they’ve already purchased are not for sale, Blomquist said. They’re for rent. The good news is you can now get a home cheaper than it costs you rent a comparable home in most parts of the U.S. Really, now is the time to start looking for that new home before higher interest rates raises its ugly head.

Survey reveals do's and don'ts when buying or

selling home

Here’s a great way to save thousands of dollars when you in the market for a home -- look for a real estate agent who charges less than the norm. This can literally save you thousands of your hard earned dollars. The other way, of course, is to bargain like crazy. According to the National Association of Realtors, consumers will buy or sell an estimated 5 million houses this year – an increase of about 30 percent since the depths of the recession. Based on a recent survey of more than 300 real estate agents, Consumer Reports is offering some advice for those in the market to get the best deal. About 86 percent said they have seen other real estate agents engage in poor business practices. At the top of that list is steering buyers toward a home that would result in higher commissions. Twenty-seven percent said they have seen other real estate agents persuade a client to sell a home for less than it is worth.   "We think you shouldn't hire the first agent you meet," Consumer Reports' Mandy Walker said. "Interview at least three, and check references. Also, see if they're a member of the National Association of Realtors. Their members have to adhere to a strict code of ethics." For those selling a house, Walker advises not to overpay the agent's commission. The survey found more than 60 percent are willing to negotiate at least half the time.   "A lot of people think 6 percent is the standard commission," Walker said. "But over half the realtors we asked said they typically charge around 4 percent." Extracted from WRL.com Never be afraid, or ashamed to bargain with a home seller to get the absolure best price you can on a home. I’ve been in real estate for many years and I’ve found that very few house sell at their listed price. So if the real estate mantra is “location, location, location,” then the buyer’s mantra should be “bargain, bargain, bargain.”

How to Buy a Cheap Foreclosure

Looking to buy a cheap Home? Here are some tips on how to do just that. It may be a waiting game, and you don’t always get exactly what you want, but in the long run, it’s well worth it when you see the money you’ll save. There is often a huge disconnect between the way a buyer views an opportunity to buy a foreclosure and the real world of bank-owned homes. If a home buyer or an investor wants to buy a cheap foreclosure, it's easy to assume that all foreclosures sell for pennies on the dollar. However, that impression is false. It is not how foreclosures work . When buyers watch TV news reports that sensationalize foreclosures or read headlines that foreclosure filings are increasing, it's normal for buyers to automatically jump to the conclusion that banks are desperate. Buyers tend to believe that banks will do anything to unload foreclosures, including letting the buyer buy that foreclosure for 50% of its value or less. Why the Price of a Foreclosure Can Appear Cheap You can buy a foreclosure generally for much less than its original loan balance, especially in a declining market. But that doesn't mean the bank will sell the foreclosure for less than market value. Market value might be 50% less than the last time the home sold, but that foreclosure price will generally reflect the value of the homes around it. Where to Find a Cheap Foreclosure to Buy I often receive calls from investors asking me about buying a foreclosure very cheaply, and the truth is it's rare to find such a listing in MLS . Every so often, if you're very lucky and very fast to write an offer, you might be able to buy a foreclosure for a little bit under the comparable sales. But bargain-basement steals are typically not listed in MLS. That's because banks, like any other seller, want to make as much money as possible on the sale of a home. They hire real estate agents to do an appraisal and tell them how much they can get. The agent takes the condition of the home into consideration and names a price. Then other agents in MLS compete to buy that home for their buyers. When buyers compete, multiple offers are the result. Multiple offers tend to drive up the price. To find a cheap foreclosure, buyers need to reduce the competition for that foreclosure. Here are 3 places to look for a cheap foreclosure: Buy a cheap foreclosure at a trustee's or sheriff's auction. Buyers can find notices of auctions online and in a newspaper of general circulation in the community where they live. There are a number of websites that post information on auctions, and some such as foreclosure radar might offer a free 30- day trial. Buyers typically pay cash at the public auction and buy the home in its "as is" condition. Smart buyers pay a title company to do a preliminary search prior to bidding. If there are liens such as taxes, delinquent HOA dues or superior loans, those encumbrances stay with the home. Buy a cheap foreclosure through a private auction. Auction houses generally advertise in newspapers and online. They might travel around the country holding auctions at hotels. A private auction house often will let a buyer obtain financing to buy a cheap foreclosure. Buyers can also bring a buyer's agent to represent them. Some auction companies will let buyers inspect their foreclosures prior to bidding. But buyers should be prepared to set a limit and be careful to not get carried away by the excitement created during the bidding process. Otherwise, a buyer can overpay for that cheap foreclosure. So there you have it. It’s really not that hard, I’ve done it before and it’s really just a matter of making multiple offers and being patient. You can use this avise to buy your own home, or buy homes to flip and sell. Even in today’s market there are bargains to be had. Compliments of About.com 1
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© 2010 Home Buyer
Blog

Cost to rent is rising over home buying

If you thought now is the time to buy, you couldn’t be more right. While mortgage rates are down, rental prices are rising, and not just in Florida. Rents are rising all over the U.S. Here’s an article from the Tampa Tribune that sets the recored straight: Rent prices continue to surge like a red tide in the Tampa Bay area — something few welcome. And while many home prices are more affordable than rent right now, people aren’t lining up to buy. Florida’s housing crash during the recession forced out hundreds of homeowners and is still keeping some out due to tightened loan restrictions. Some suffered credit setbacks and are afraid to jump back in, experts say. Still others are steering clear of home buying out of fear of a future crash. That means there are a lot more renters these days dealing with those rising monthly lease payments. A robust rental market means rents will continue to go up with the demand. Eventually, experts say, it will get to the point that the average consumer looking to rent won’t be able to afford a decent house in a decent neighborhood. It’s not just happening here. Rent has gone up in all of the nation’s 11 largest cities, according to a New York University Furman Center study commissioned by Capital One and released in draft form this week. Rental costs have swelled faster than income for most. Low-income renters in all 11 cities studied “were overwhelmingly rent burdened and became only more so” between 2006 and 2013, according to the NYU report. The study found that the growth in the rental stock in all of the cities was due to a shift in homes previously owner-occupied. “There are a couple of other takeaways as well,” said Sean Capperis, one of the study’s authors. “With increased demand for renting in many cities and supply not keeping up, vacancy rates fall, rents rise and more struggle with the cost of housing.” Of the 906 homes sold in Hills­borough County in November, 45 percent were purchased for either second homes or rental income. In Pinellas County, of 1,697 homes sold, 54 percent were purchased for second homes or investment, according to RealtyTrac, one of the nation’s leading sources for housing data. A portion of the purchases most certainly is due to the flock of snowbirds that make their way to the Sunshine State each year and purchase second homes, said Daren Blomquist, vice president of RealtyTrac. But most of it is due to what are known as institutional investors, he said. “I refer to the recovery we are seeing as an investor-driven recovery,” Blomquist said. “Wall Street and private equity firms that created massive funds to purchase single-family homes as rentals play a big role. They’ve seen Florida as a great place because it has homes at good price points, typically $150,000 to $200,000, that they can turn around and rent. And there’s strong rental demand. “In general, we’ve seen investor purchases pick up nationwide and even more so in Florida.” And while cash investors appear to have backed off a bit here as housing prices have begun to recover, most of the homes they’ve already purchased are not for sale, Blomquist said. They’re for rent. The good news is you can now get a home cheaper than it costs you rent a comparable home in most parts of the U.S. Really, now is the time to start looking for that new home before higher interest rates raises its ugly head.

Survey reveals do's and don'ts when buying

or selling home

Here’s a great way to save thousands of dollars when you in the market for a home -- look for a real estate agent who charges less than the norm. This can literally save you thousands of your hard earned dollars. The other way, of course, is to bargain like crazy. According to the National Association of Realtors, consumers will buy or sell an estimated 5 million houses this year – an increase of about 30 percent since the depths of the recession. Based on a recent survey of more than 300 real estate agents, Consumer Reports is offering some advice for those in the market to get the best deal. About 86 percent said they have seen other real estate agents engage in poor business practices. At the top of that list is steering buyers toward a home that would result in higher commissions. Twenty-seven percent said they have seen other real estate agents persuade a client to sell a home for less than it is worth.   "We think you shouldn't hire the first agent you meet," Consumer Reports' Mandy Walker said. "Interview at least three, and check references. Also, see if they're a member of the National Association of Realtors. Their members have to adhere to a strict code of ethics." For those selling a house, Walker advises not to overpay the agent's commission. The survey found more than 60 percent are willing to negotiate at least half the time.   "A lot of people think 6 percent is the standard commission," Walker said. "But over half the realtors we asked said they typically charge around 4 percent." Extracted from WRL.com Never be afraid, or ashamed to bargain with a home seller to get the absolure best price you can on a home. I’ve been in real estate for many years and I’ve found that very few house sell at their listed price. So if the real estate mantra is “location, location, location,” then the buyer’s mantra should be “bargain, bargain, bargain.”

How to Buy a Cheap Foreclosure

Looking to buy a cheap Home? Here are some tips on how to do just that. It may be a waiting game, and you don’t always get exactly what you want, but in the long run, it’s well worth it when you see the money you’ll save. There is often a huge disconnect between the way a buyer views an opportunity to buy a foreclosure and the real world of bank-owned homes. If a home buyer or an investor wants to buy a cheap foreclosure, it's easy to assume that all foreclosures sell for pennies on the dollar. However, that impression is false. It is not how foreclosures work . When buyers watch TV news reports that sensationalize foreclosures or read headlines that foreclosure filings are increasing, it's normal for buyers to automatically jump to the conclusion that banks are desperate. Buyers tend to believe that banks will do anything to unload foreclosures, including letting the buyer buy that foreclosure for 50% of its value or less. Why the Price of a Foreclosure Can Appear Cheap You can buy a foreclosure generally for much less than its original loan balance, especially in a declining market. But that doesn't mean the bank will sell the foreclosure for less than market value. Market value might be 50% less than the last time the home sold, but that foreclosure price will generally reflect the value of the homes around it. Where to Find a Cheap Foreclosure to Buy I often receive calls from investors asking me about buying a foreclosure very cheaply, and the truth is it's rare to find such a listing in MLS . Every so often, if you're very lucky and very fast to write an offer, you might be able to buy a foreclosure for a little bit under the comparable sales. But bargain-basement steals are typically not listed in MLS. That's because banks, like any other seller, want to make as much money as possible on the sale of a home. They hire real estate agents to do an appraisal and tell them how much they can get. The agent takes the condition of the home into consideration and names a price. Then other agents in MLS compete to buy that home for their buyers. When buyers compete, multiple offers are the result. Multiple offers tend to drive up the price. To find a cheap foreclosure, buyers need to reduce the competition for that foreclosure. Here are 3 places to look for a cheap foreclosure: Buy a cheap foreclosure at a trustee's or sheriff's auction. Buyers can find notices of auctions online and in a newspaper of general circulation in the community where they live. There are a number of websites that post information on auctions, and some such as foreclosure radar might offer a free 30-day trial. Buyers typically pay cash at the public auction and buy the home in its "as is" condition. Smart buyers pay a title company to do a preliminary search prior to bidding. If there are liens such as taxes, delinquent HOA dues or superior loans, those encumbrances stay with the home. Buy a cheap foreclosure through a private auction. Auction houses generally advertise in newspapers and online. They might travel around the country holding auctions at hotels. A private auction house often will let a buyer obtain financing to buy a cheap foreclosure. Buyers can also bring a buyer's agent to represent them. Some auction companies will let buyers inspect their foreclosures prior to bidding. But buyers should be prepared to set a limit and be careful to not get carried away by the excitement created during the bidding process. Otherwise, a buyer can overpay for that cheap foreclosure. So there you have it. It’s really not that hard, I’ve done it before and it’s really just a matter of making multiple offers and being patient. You can use this avise to buy your own home, or buy homes to flip and sell. Even in today’s market there are bargains to be had. Compliments of About.com
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