The most important way to try to stop repossession is to stay in contact with your lender. Explaining your financial situation to your lender can allow them to work with you in finding ways to help you including deferral of payments or refinancing for better loan terms. However, sometimes even with these options available, you’ll still find yourself facing repossession. Options you may want to consider to stop repossession is the sell and rent back or the sell and buy back option. Although this process may seem unfamiliar to many, it’s becoming a widely used practice with many advantages, the most obvious being able to stay in their home.

Sell and rent back involves selling your home to a cash buyer. When you’re facing repossession, you usually don’t often have much time from when the foreclosure process begins to when the actual repossession takes place. Keep in mind, however, that you can also stop repossession at any time by paying the arrears on your mortgage. Arrears are the amount that you are past due plus any late fees and fines. Once the repossession takes place, the bank will usually sell your home at public auction to the highest bidder. Many times the home is sold for less than you owe, leaving you still owing the bank money for many years. The best way to stop repossession is to sell your home quickly for cash. This enables you to pay off your mortgage and, often, have leftover cash to do with what you want.

Many sell and rent back companies are available today to help you. They purchase your home at less than the market value and rent it back to you. Although you will be losing equity by selling your home at less than market value, you’ll be able to stay in your home. With the sell and buy back option; you have the option to buy your home back when your financial situation improves. In most sell and buy back options; you can buy your home back below market value. Although this is the most common method used, each company may have a slightly different principle involved. For instance, one company may allow you to buy back your home at the same price they purchased it from you, while another may use a certain percentage such as 85% of market value. Whichever method they use, make sure you get this in writing.

It’s important to always have a contract in sell and rent back or sell and buy back options. Check out the companies you’re considering doing business with. Many unscrupulous companies will offer you full price on your home and a very low rent on your home. They’re not making any money this way so they’d have no reason to offer you this other than to rip you off. What they do is offer you a high price for your home, but any profit after paying off the mortgage will be kept for a few years while you’re renting from them. However, after a year or, possibly less, they evict you for some reason. Because you’re no longer their tenant, you’ve lost the rights to the profit from your home sale as well as the rights to buy back your home. Therefore, be sure of whom you enter into a sell and rent back or sell and buy back offer. Always, insist on a contract and insist they pay any legal fees. If they’re a trustworthy company, they’ll agree to this. One method of determining if you want to do business with this person or company is to ask yourself if this is someone you would want as your landlord for a few years.

If possible, you may want to check with other people that have been involved with this company or person in a sell and buy back or sell and rent back procedure. The internet is a great source of information. Use it to your advantage and do some checking.

There are advantages and disadvantages to sell and rent back or sell and buy back options, so you may want to speak with an attorney for legal advice. In some situations, these options may be your only way to stop repossession and preserve your credit rating. With a good credit rating, you may be able to get a mortgage in the future to buy back your home.

Beese Properties offers all of this to their customers and more. They offer advice on ways to stop repossession. They base their rents on the current rental market, so they do not overcharge their tenants. They work with their tenants to find a solution which meets their needs and offer the buy back solution to them once back on their financial feet. For more information, visit them online at http://www.beeseproperties.com.

About the Author:
Beese Properties is a reputable company with a dedicated team around the country that will buy your home. Be assured there will be no fees, no HIPs needed, a quick offer, a fast completion time and cash on completion. For more information on sell and rent back visit http://www.beeseproperties.com.

Keyword tags: Sell And Rent Back

A classic example of being able to focus in the correct way is when a person is training to be a racing driver. The first thing they are taught is, ‘if you ever lose control of the vehicle, don’t focus on any walls or trees, just focus on the empty space’. The reason is very simple. Focussing on the problem – the wall or tree – will inevitably cause the driver to hit it.

Procrastination is the greatest enemy to people in times where quick decisions need to be made. This is especially true for homeowners with financial problems who are trying to hold back the bitter flavour of repossession from knocking on their doors. Most struggling homeowners pass up an opportunity which will help them simply because they believe a better solution will turn up later. Unfortunately for them, this very rarely happens and what can be even harder to swallow is that in the time it has taken them looking for a better solution, the original one is no longer available.

Focussing on finding a solution is imperative in times of crisis. Taking action must be decisive in order to stop repossession and gain control over the situation. There are numerous property companies which offer a very good solution for people to avoid losing their home and this is known as ‘Sell, Rent and Buy Back’. The idea of this scheme is to offer the homeowners an alternative exit rather than repossession or bankruptcy.

The concept of this scheme is very simple. The house is purchased at a trade price and then rented back to the previous owners at the local market rent. In addition to renting the property back there is also the option to buy it back in the future at a pre-agreed price. Some concerns can arise such as does this scheme really offer the security to the homeowner over the long term?

The Sell and Rent Back scheme is relatively new to the property market and like everything new and unknown there is always a fear factor associated with it. It is very important to think about each individual situation and make the right choice at the time.

A very famous example of the fear factor of the new and unknown is the statement made by Ken Olson founder of Digital Equipment Corporation in 1977: “There is no reason why anyone would want a computer in their homes”.

A combination of current events such as: the ghost of recession haunting the UK, house prices falling faster than the last recession in the early ’90’s and the banks being overly cautious about lending makes the act of selling a house on the open market an heroic attempt worthy of a prize.

According to the Council of Mortgage Lenders over 120 houses will be repossessed in the U.K each day in 2008. The Sell and Rent Back scheme is contributing to decrease these rising numbers with the extra advantage of the Buy Back Agreement. It allows the homeowner to buy the house back when the crisis is finished and they are back on their financial feet.

Entering the Sell and Rent Back Scheme enables the homeowner to stop repossession immediately even if a court order has already been received. However, it is not wise to wait until the very last minute when a court date is looming. This will generally cause more stress and unnecessary heartache which can easily be avoided. Waiting until the last minute to speak to someone about the sell and rent back scheme usually puts the homeowner in an even tougher situation as there is less room for negotiation due to time constraints.

Bear in mind that the best time to start looking into this scheme and possible solution is at the first signs of a financial struggle. Knowing that there will be serious trouble ahead if nothing is done to prevent it will give the homeowner more time to research the companies that are operating the Sell, Rent Back and Buy Back option.

Some very clear signs leading to a financial struggle which has a direct path to repossession are credit card debts, unsecured loans and expenditure larger than income.

For more information on the scheme please visit http://www.beeseproperties.com

About the Author:
Beese Properties is a reputable company with a dedicated team around the country that will buy your home. For more information on how to stop home repossession visit http://www.beeseproperties.com.

Keyword tags: Stop Home Repossession

The Strata:

• Monthly and annual dues – It is essential to consider that bigger strata dues are not entirely a bad thing. A condo complex with a good budget for security and maintenance can give you lots of benefits and it may entail you savings. Strata’s that have lower maintenance fees have limited capacity to secure and maintain the premises. This could result in costly repairs down the road.

• Find out if the complex is self-managed or professionally-managed. Professionally managed condo units are generally a wiser option. Owner handled complexes may not have the proficiency to correctly project maintenance expenditure and resources accordingly. Higher maintenance dues will normally turn out to be more cost efficient in the long run. In this way you can avoid more costly repairs that result from inadequate maintenance

• It would also be to your advantage if you could make sure that they have sufficient contingency account. Having ample financial buffer is advantageous as it can protect you from unforeseen problems. This can also shield you from the shock of large financial levies in the event of such problems.

• Check if the condominium association has any outstanding legal concerns. It is always wise to do a little investigation so that you know what you are getting into.

• Ask for a copy the minutes of past board meetings. Look for signs of forthcoming expenditures. See if there are recurring issues or controversies. Assess the issues and determine if these have a direct impact on you.

The regulations:

• Find out the rules and regulations that govern your home. Are you amenable with them? Will your lifestyle fit well with their rules and regulations?

• Are pets allowed? If so, what types, what size and how many? If you have pets, make sure to clear this up before purchasing your new home.

• Are there limitations about particular activities or noise levels? If you are a car enthusiast you might want to make sure your new home doesn’t have rules that restrict you from working on your car outside your unit.

• Are there restrictions about long term guests? If you expect frequent guests that stay for long periods you might want to check if the strata have rules covering this.

• What areas of your unit is your responsibility and what areas are common responsibilities? If you plan to do major interior renovation work you should check with your strata first. It’s always best to make sure before buying than to assume that everything will be alright.

• Find out if the unit can be leased. If so, check the number of units currently owner occupied as opposed to the number that are being rented. This is a vital concern that can affect the resale value of your home. It can also possibly affect your quality of living. It is usually better to have owner residents as neighbors.

Not considering these factors carefully might lead you to end up with a less than ideal home purchase.

About the Author:
Andrew Szalontai is a Langley realtor who has spent years buying and selling condos and real estate in Langley and Surrey.
Visit http://www.mylangleyrealestate.com to get your insider guide to buying property in Langley BC.

Keyword tags: langley condominium, townhome, langley condo

But now for many people who do not have investment experience the question is which investment option is right for you? Will your investment monies be better served by buying stocks or investing in real estate? If you were to ask your friends they may tell you to buy real estate. But how accurate is this advice?

Buying a home is usually the largest purchase most people will even make and is their largest asset. But investing in real estate, traditionally, only happens through inheritance or after retirement using money that has been saved through their life. Today’s relatively easy accessibility of home loans with attractive interest rates have made the entry in real estate investment a little easier. And as most financial planners will tell you, investing in real estate is an essential part of a well-diversified portfolio and a valued part in financial planning.

Being able to invest in real estate can help you in hedging inflation, diversification and yield enhancement. And for those who are able to withstand a little interest rate fluctuation, now may be the perfect time to invest in either your own home or an investment property.

Although the markets are a little volatile at the moment, real estate prices are at reasonable levels. And as the old saying goes “.. they aren’t making anyone land” so as city population increase the price of real estate in the long term can only go up.

But all this depends on you purchasing a piece of property and for many this is just not financially possible. What if you could invest in just a small portion of a property for a fraction of the price.

This is exactly where real estate trusts and mutual funds come into play. Through these investment vehicle you can own a portion of a luxury apartment, a commercial space or a shopping complex. And all of the responsibility of maintaining the property, collectiong rents and payment of taxes is done by the fund manager.’

As with any type of investment, whether it be stocks, bonds or real estate, volatility is just part of game. But those who invest regularly and with a long term vision and goal in mind you can take advantage of compounding and beat the markets. Mutual funds are a good option for those who are uncomfortable with idea of investing in the stock markets themselves.

Seeking advise from an investment professional can help you avoid some of the turbulence in the market or from making poor buying decisions such as purchasing a stock simply because it has hit rock bottom. For those who are patience and who can make rational decisions, they will benefit greatly when the markets rebound in the future.

About the Author:
As a real estate professional Sean Morris is an expert when it comes to buying a house in Toronto and the local market. Feel free to visit his site for information on Lawrence Park real estate or to search for available properties. http://www.luxurytorontorealestate.com/

Keyword tags: real estate, investing

With its rich history of passion filled warfare and unquestionable beauty; the island of Cyprus lays claim to being one of the most desired locations in the world. Even today, so many thousands of years after the battles, Cypriot culture is vibrant and interesting. Whether you consider the signature Cypriot halloumi cheese and calamari or the violin and lute folk music experienced at the ever enjoyable festivals, it’s a fact that Cyprus has kept its ancient traditions going strong.

It is partly these factors which attract so much of the retired population to invest in Cyprus properties, but there are other factors which sway the decision making process towards the east of the Mediterranean Sea as well. Take the sub tropical temperatures for example; in summer they are usually between 25°C and 35°C, so it’s rarely uncomfortably warm. Winter temperatures never drop below 7 degrees and there isn’t much rainfall either. All in all Cyprus’ climate is a pleasant one, especially when you have the middle of the day to enjoy.

The landscape in Cyprus is certainly something to be mentioned. There is the perfect balance between scenic mountainous ranges on the Northern edge of the island, fertile flat land in the center of the island and coved beaches all along the Cyprus coast. It takes no more than two and a half hours to drive from the eastern tip of the island to the west when travelling at 60mph, so residents and visitors are never too far from anything. UK drivers who relocate to Cyprus are usually very pleased at how Cypriots also drive on the left hand side of the road. It is the little things like this which make retired life on this Greek island so much more enjoyable.

The average price of living in Cyprus is also a big deciding factor. Cypriot residents can live on almost half the sum of money that they would need to be comfortable in the rest of Europe and for a far better quality of life. Not only does that mean less stress and budgeting in the wait until retirement but also that the wait is shorter; people can afford to retire early when they plan to move to Cyprus.

Of course not all people coming up to retirement age want to leave the family they have in the UK. Thankfully flights to and from Cyprus are frequent, reliable and affordable. There are four airports on the island; Nicosia (NIC), Larnaca (LCA), Paphos (PFO) and Lefkosa (ECN) and with flights leaving from both Gatwick and Heathrow in England too there should be minimal travelling required. While relatives may not be just around the corner, they are given the perfect excuse to hop on a plane and have a great holiday away from their stresses in the UK. In fact, a lot of people who retire to Cyprus like the fact that they can provide a ‘home away from home’ for their loved ones.

Another concern when retiring to a foreign country is having to get used to a very different way of life or having to learn another language. When UK citizens move to Cyprus they are usually surprised at how much the island has in common with Western Europe, particularly the way that 90% or Cypriots speak English as well as Greek so there are very few language barriers to be struggled through. Couple this element with the top quality and affordable, easily accessed health service and duty free shopping and there’s little to complain about!

Last but not least there are of course different areas and types of neighbourhoods in which to move in Cyprus. There are those near the town in the cooler areas with lots to do and see, or there are much quieter and more rural areas towards the mountains which tend to be a little warmer in summer. Whichever area an individual, couple or group choose to relocate to, they are bound to be greeted with fellow UK retired citizens who have had the same, well informed idea.

About the Author:
Lucy Wallace writes for Homes Abroad Group who are an established real estate agent with offices in Northern Cyprus and London and can help you with every step of the buying process in Northern Cyprus. Please visit http://www.homesabroadgroup.com for further information.

Keyword tags: northern cyprus property, property in northern cyprus, retiring to northern cyprus, retiring abroad

The key factor to consider when you want to sell your property is how to make your property as attractive as possible to as many potential buyers as possible. You must see your property from their point of view. This is not as easy as it sounds as it requires you to depersonalise your own much-loved space. However, you need to try to recreate your property as a blank canvas so that the potential buyer can more easily imagine themselves living in your property.

For the wall colour plain, neutral colours are recommended. However, avoid brilliant whites as they generally appear to be too clinical and technical and lack the softness which a homes wants. Light colours will create an illusion of space and calmness and they will reflect the natural light whereas dark colours will absorb the light and make the room feel smaller. Also they won’t clash with any furniture that the buyer will be wanting with them – if they like your property they will imagine where their furniture will sit and how it would look. Some house stagers recommend that the whole house is decorated in the same colour to create a feeling of more space. However, if the shades are all light and neutral then it may be beneficial to demark the different rooms subtlety by a slight variation in colour.

Preparation is the key. Remove all curtains, blinds and cover all furnishings. Fill in any cracks or holes with appropriate polyfiller. You can use a knife to do this but sometimes just a finger is the easiest way so that you can fill in the smallest holes. Try not to add too much filler as sanding down to create a flat surface afterwards can be tricky. Dust the walls lightly to remove dust, grime and cobwebs. If you are painting straight onto plaster you will need a primer coat first.

Buy good quality paint. Cheap paint will mean that you have to do more than two coats of paint. It could drip and spoil other spotless parts of the room. Use masking tape to make an easy straight line and remember to peel it off before the paint has properly dried but not too soon after fresh paint. If you peel it straight away it would scratch and mark the new paint. If you wait too long it could bring the paint off as you peel the masking tape away. For the ceiling line use a small brush to get a neat finish. Remember to paint along the edges with a brush first to make a border so that the roller will go over the border and the finish will be more uniform. This avoids a thick border of brush strokes.

Talking of brushes, again use good quality brushes. The cheap brushes will lose their bristles and you need to stop painting to remove the unsightly bristles from the wet paint. The whole job will take much longer and will be frustrating. One useful tip is if you’re having a break from painting and you have paint on the brush seal the brush in a plastic bag to prevent it from drying. This even works overnight so in effect you can just stop working at night and start again in the morning without having to clean the brushes.

Likewise for rollers – buy good quality. They will have a thicker pile and so will be able to hold more paint. As a result they are less likely to drip paint down your walls.

You need to paint at the right temperature. If you paint and it’s too cold the paint will take longer to dry and will collect dust. If it’s too hot it will dry too quickly and may crack. There should be guidelines on each tin.

After the paint has dried be ruthless in your inspection and touch up as necessary with a small art painting brush. This extra attention to detail will create a professional look and will create a very clean finish.

And remember to wear clothes that can get paint on. In the ads the happy young couple always wear spotless, trendy clothes but be realistic - you will get some spots of paint on you and you don’t want to have to stop painting to quickly clear it up. Wear old clothes or overalls and wear your normal clothes whilst you have a glass of wine to celebrate a job well done.

About the Author:
Susy Copus writes about all aspects of the property market. Her work has featured the UK Property Search Engine, http://www.wheresmyproperty.com, http://www.renovatealerts.com who find property to renovate and http://www.propertymoneymaker.com.

Keyword tags: selling property,property to renovate,property to buy,renovate property,property for sale

The dot-com bubble and decline of the stock market helped push investors into other markets where money was cheap and regulations loose. Because of lax oversight and inaction, the housing bubble was allowed to form. The oil market represents a bubble to many as the cost of a barrel of Brent crude went from $100 per barrel in February 2008, to a high of $145 per barrel by July 2008. Brent crude is now trading under $60 per barrel.

Going forward, there are two very real concerns for investors. First, many may be looking at the performance of stock investments over the past eight years and calculating what their true return from those investments has been. Second, many will be asking if their investments can sustain another severe market imbalance in the future. In effect, they are wondering as to where the ‘Fourth Bubble” will come from.

All of this gives credence again to having an even broader diversification of investment portfolios. As a result, real estate should once again be seriously looked at as part of an investor’s diversification strategy for several reasons.

First, property valuations have fallen considerably from market highs. Prices in some markets have dipped to 2004 levels. In some instances, prices have dipped to 2003 levels.

Second, real estate has intrinsic value. Unlike stocks and financial-related investments that can see depreciation in their worth down to zero, real estate has inherent value down to the land and will not experience a wholesale collapse in its value to zero.

Third, real estate is real. It can be seen and touched, and managed closely by the owner.

Fourth, real estate has certain tax benefits that can contribute to the overall performance of the property as an investment.

Fifth, a successful rental property as an investment presents an opportunity to create a revenue stream and/or create equity in the home as the renter indirectly is contributing to payment of the principal over time. Regardless of the market and whether appreciation or positive-cash flow rental income is preferred by the investor, the principal is being paid down on the property.

Lastly, based on proposals floated by President-elect Obama, we should expect additional legislation that puts guidelines, regulations and accountability in this industry that ensures proper lending practices and reduces the risk for rampant speculation that has battered the markets in recent times.

Of course, there are certainly risks to holding real estate as an investment in your portfolio. For instance, there may be unexpected property repairs, assessments, or other extraordinary costs that the investor has to incur. So, an investor has to look at real estate also as a business with income and regular and extraordinary expenses.

For those investors that are looking for a simpler way to be diversify without the additional headache, a REIT may be a logical avenue to investigate. A Real Estate Investment Trust is a company that invests in income-generating properties to drive returns for its investors. The income-generating properties may be apartment buildings, industrial and commercial properties. REITs allow smaller investors the ability to invest in larger real estate operations that they wouldn’t be able to otherwise. REITs also should be able to show their overall historical performance to investors.

Again, investors are faced with the question of how to protect and grow their assets in the future. The stock market’s high level of volatility in recent years has many investors questioning the percentage concentration of their portfolios in stocks and similar investments. As a result, the pressure to further diversify those portfolios will mean that other asset categories will have increasingly greater appeal and should be considered for investment.

Overall, real estate presents a great opportunity once again for the long-term investor as outlined above. In addition, the incoming administration has put forth numerous proposals to improve transparency, implement sound business and ethical practices to the industry with the singular purpose to eliminate the probability of a similar crisis ever occurring in the future. All of this will work to give investors options once again for a safer, more consistent and calculable return in the coming years.

About the Author:
David Lorti is a professional Realtor for RE/MAX Elite in the Phoenix area and his real estate insights have been quoted in several news outlets. His website, http://www.LortiHomesArizona.com, and blog, http://www.LortiHomesBlog.com, offer market updates and other information on the Phoenix real estate market.

Keyword tags: Real estate investing, real estate investment, housing market, credit crisis, remax real estate

By now, the reality has sunk in with most people - the stock market’s decline has hit 401K and other retirement investments hard. As a result, this is a critical time to for individuals, families, and investors to rethink diversification of their portfolios again. Portfolios need to be more highly diversified than ever before.

And it’s time to rethink real estate as one component of your diversification in the future in addition to stocks, bonds, commodities, international investment, and low-risk savings instruments, to name a few.

Wall Street, Main Street, and My Street, and Real Estate

There is no doubt that the goings-on in the real estate industry are intermingled with the market challenges that Wall Street is facing, which in turn impacts Main Street and “My Street.” But the issues with real estate largely emanated from the many corporations that make up Wall Street combined with lack of government oversight and inaction. Lack of personal discretion also contributed to the problem.

Having said that, here is why real estate should be a component in your investment portfolio once again, and why the Phoenix real estate market is an excellent choice for investment to help you diversify that portfolio.

First, due to the wave of foreclosure-related properties, prices have declined to 2004 and even 2003 pricing levels. This is pricing that is pre-run up. Though there is a risk that prices may drop further, the extent of a further decline may be limited in the short term while the long term outlook gradually gets stronger.

Second, real estate can prove to be a more reliable investment in a normal market environment. Prior to the run-up in home valuations in the second half of 2004 through 2005, annual home appreciation in the Phoenix residential real estate market averaged 5%-6% . Playing the long game as investors should, holding a property for 5-20 years could yield a solid return.

Long term is key here. The investor has to be committed to a lower but steady return on their investment when it comes to real estate. The Phoenix housing market will not likely experience a meteoric rise in valuations like it did again. That’s not to say that there won’t be some opportunities to turn properties fast (whether through acquisition at a foreclosure auction or wholesale, or a flip), but this model will have the high risk that most investors will and should shy away from.

One note here. At least in the Phoenix area, investors have to weigh the merits of investments in homes and real estate by several components to get a true picture of the return on a property. These factors are growth in appreciation, rental income and offsets, tax benefits, and equity paydown and buildup.

Third, real estate is real. You can see it. You can touch it. You can check up on it (if you buy locally). And it will always hold some intrinsic value no matter what happens. If you have a home in Chandler, it is easy to get across the Phoenix area, to check up on an investment property in Glendale. Or, perhaps the investment property you choose is right next door to your home in Tempe.

Fourth, under certain circumstances, real estate taxation on capital gains growth can be minimal. The same cannot be said of many other investment vehicles.

Fifth, an investor has much more control in determining the value of the property. Smart improvements and renovations combined with effective property management can increase the value of the property substantially.

Sixth, the Phoenix area continues to grow. The Valley saw a 2.8% increase in the number of residents here last year. This trend will continue as Phoenix and surrounding areas are perceived as a stable, optimum climate to live and to work. With the decline in real estate prices, this perception will also be reinforced by a sense that Phoenix and surrounding areas are once again affordable.

Finally, real estate can serve a dual investment/personal objective. For instance, an investment in real estate can serve as a later gift for children. Or, it can be utilized as a sort of savings plan for children’s college tuition as a complement to 529s and Coverdell plans. The investment could be a retirement property for later in life. Real estate investments can also be used to create income streams to live off of (when rents and equity buildup eventually turn the property cash-flow positive).

There are numerous reasons to invest in real estate even beyond this list.

Real Estate Has A Role to Play in Your Investment Portfolio

The difficult truth about the stock market is that over the past eight years, the U.S. economy has seen two major disruptions or recessions that were severe enough to have rippling effects for all Americans as seen by the decline in 401K and other retirement savings values. As a result, further diversification of investment portfolios is needed across many different asset classes with a regional focus as well.

Real estate should be one of those classes. Given real estate has seen real substantial pricing declines over the last three years to levels seen before the run-up period, one has to consider that there are real deals in the marketplace for real estate. Coupled with the right long-term outlook and commitment to investment fundamentals, real estate can have a more effectual, countervailing purpose in investment portfolios that can help Americans better weather substantial market disruptions in the future. For investors looking for specific markets that may be worthwhile to investigate, real estate in the Phoenix area is a compelling choice.

About the Author:
David Lorti is a professional Realtor for RE/MAX Elite in the Phoenix area. His real estate insights have been quoted in several news outlets. His website, http://www.LortiHomesArizona.com, and blog, http://www.LortiHomesBlog.com, offer market updates and other information pertinent to Phoenix real estate.

Keyword tags: Phoenix real estate market, phoenix real estate, phoenix arizona real estate, chandler real estate

Before purchasing a house, it is essential that you familiarize how things go first. Knowing the process will help you in various ways but you should not push yourself if you cannot handle it. Ask help from a professional as you do your homework. You have to know the basic know-how’s of purchasing a house.

A mortgage broker can help you a great deal. He will find the best lending option for you. It will be easier for him to do this because he has access to various lists of banks and lending firms. He has information regarding their interest rates as well. He will use this to compare rates and find the best deal for you basing on the information you handed him.

Before you choose any house from Gilbert Homes, look for a mortgage broker first. Here are some tips on how to find one:

1. Ask friends or relatives if they know one. It is better if someone can refer you to a certified mortgage broker. Ask anyone you know who purchased a house. Check if they hired a mortgage broker so that you can get hold of the one they hired. However, you have to make your own assessment as well. Always check if the broker is certified and ask him questions that will reveal his capacity as a broker.

2. Ask someone who is in the real estate industry like a realtor, if he knows a certified mortgage broker. They usually know a network of professional so they will most likely refer you to a quite a few brokers.

3. When you have a list of brokers, screen them out. You would want to know the lenders and banks they are associated with. Ask the range of the rates of those lending firms. Choosing a wrong broker will cost you more.

When you talk to the brokers, you have to know what questions to ask them. This will help you to screen them. You can ask them about their previous clients, what were the programs they found suitable for them.

Keep in mind that you are not obliged to hire them when you ask those questions. You do it to find out their ability to help you find the best mortgage terms. It is also important that you take note of their name, contact details, and the information they provided. Compare those details before choosing one.

Mortgage brokers will help you find the best mortgage arrangement before you purchase your dream house from Gilbert Homes. Remember, finding the best lending institution will be a major factor in your long-term debt. A mortgage broker will help you choose the right one.

About the Author:
Chris Turley is an expert and professional real estate agent that will help you to find the perfect home that better fits your needs. For more information on Gilbert homes, please go to http://www.ourbestrealestate.com

Keyword tags: Gilbert Homes,mortgages,mortgage broker fees,mortgage broker income,mortgage rate,subprime mortgage

Numerous challenges including an onslaught of short sales and foreclosed properties, deteriorating home values, and the onset of a global recession have rocked the Phoenix real estate market to its core. Indeed, recessionary concerns are large on people’s minds and add much uncertainty to the market. These challenges have yet to fully play out in the marketplace so that their full impact is felt and measured.

Government efforts are underway to resolve the current credit crisis though their target and implementation vary by the week. Some efforts are specific and being done by departments whose sole purpose has always been associated with the housing market while larger departments work on grander problems with much less clear and intentional aim. For these, it is too difficult to ascertain their net benefit to the Phoenix residential real estate market.

But there are bright spots in the local marketplace. Prices have adjusted substantially downward since the downturn began, buyer activity for 2008 showed strength, and the market shows some inclination that market forces are working to slowly evolve this housing market to a better state. In addition, the Phoenix real estate market is becoming more affordable once again, as affordability was the first casualty of the price appreciation the area experienced several years ago. Many buyers sense that there are deals in the marketplace whether a purchase is to be their primary residence, a second residence, or an investment property. And the Phoenix area’s population continues to grow as more out-of-state residents and companies decide to call the Valley of the Sun home.

In summary, the Phoenix housing market has been “beaten down but is not to be beaten” and holds hope for improvement in the coming year.

Times Have Been Difficult for the Phoenix Housing Market

The Phoenix housing market is moving into its fourth year of the downturn. As such, it is important to look back on its causes briefly in order to look forward.

The Phoenix housing market was victim to excessive speculation and false assumptions that fueled a frenzied pitch in home and real estate demand. This demand spurred rapid appreciation of homes in the greater Phoenix metropolitan area and in other parts of Arizona. This rapid appreciation culminated in as much as a 47% rise in home property values over a 12-month period.

The acceleration of appreciation took hold in the latter half of 2004 though the necessary drop in inventory to support this market change could be seen as early as March 2004. Pricing likely peaked in September 2005. By that time, inventory had begun to swing the other way again but how far it would rise was not known. Though sales prices peaked in 2005, by no means had prices declined substantially until well into 2006.

Inventory rose dramatically with more than 50,000 properties available for sale by 2007, a staggering figure. Arizona was designated a “Declining Market” by Fannie Mae in 2007 as well. This designation had the near-immediate impact that borrowers using conventional loan products would have be required to put significantly more money down (typically, from 5% to at least 10%) to purchase a new home. Due to this increase, borrowers quickly moved to take advantage of FHA loans whereby borrowers only had to put 3% down on a new home. As for foreclosures and short sales, these finally took full hold in the market toward the end of 2007.

In 2008, FHA loans have been a significant lending source for activity in the housing market here. Down Payment Assistance usage took off as well though this program was eliminated October 1st. Sales activity has shown some strength with a peak in activity in September (likely due to the rush to use down payment assistance before the cutoff). In addition, the sales activity has been weighted more heavily at the lower bands of the market consistent with the raised FHA limit of $346,250.

Since September, activity has been slowing. This is due to that month being a peak associated with down payment assistance usage, due to broader economic concerns, and due to the onset of the holiday season.

The Extremes of the Local Market

Parts of the Valley are experiencing the worst-case scenario in terms of the impact from the downturn.

Short sales and foreclosures have hit towns on the outskirts of the Valley the hardest. These are towns such as Queen Creek, Buckeye, Surprise, and Maricopa to name a few. These areas share a common thread – high speculative investor activity concentrated in new build communities.

These towns grew exponentially as homebuilders sold homes as quickly as they could produce them. In fact, new build development saw such prolific investor activity so that many areas that were largely built in the 2004-2006 timeframe have been subjected to a heavy turnover activity and a heavy decline in valuations.

Today, in some communities such as Maricopa, foreclosures and short sales fuel more foreclosures and short sales. Because home values have dropped to 40-55% of their 2006 values, any homeowner who is suddenly faced with a need to move, i.e. a job relocation or loss, medical hardship or other reason, there is no choice but to pursue a short sale or walk away from the property altogether. Of course, these actions will have a severe consequence to the homeowner’s credit.

Separately, Scottsdale, known as a favorite destination for its resorts, golfing, and shopping among out-of-state visitors, is trending at a low 7% of listed properties being under contract for purchase. This is likely due to average home prices in Scottsdale being much higher in general while much of the current buyer activity is taking place well below this point.

From a different point of view, properties priced above $400,000 in value account for just 12% of the closed transactions in 2008, though they make up 23% of available properties. From a “Pending” or under contract status perspective, only 4.2% of properties priced above $400,000 are currently in escrow to be purchased. Drilling lower into the market, available properties priced below $200,000 account for 51% of closed transactions in 2008.

Clearly, the heavy concentration of sales is at the lower bands of the market which means that home owners with homes priced above $400,000 will require different selling strategies than those priced well below $400,000. Based on this, one can see why the more affluent communities like Scottsdale and Fountain Hills are struggling in comparison to other parts of the Phoenix area.

The Bright Spots

Ironically, some of the most active sub-markets of the Phoenix housing market is in those very areas where short sales and foreclosures are the most prominent. The precipitous drop in prices is fueling stronger buyer activity in places like Queen Creek and Maricopa.

Queen Creek currently has nearly 23% of listed homes under contract which is the highest rate for the Valley. Maricopa currently has 19% of listed homes under contract. Avondale, in the West Valley, currently has 18.5% of listed homes under contract.

In terms of the more central Valley areas, Chandler and Gilbert are doing relatively well also. Chandler, located between Tempe and Gilbert in the Southeast Valley, is currently at 16% of available properties being under contract. Gilbert is trending at 17.7% of listed homes currently being under contract.

Where the Deals Are and How They Are Won

The deals in the Phoenix marketplace come from three different sources: foreclosures, short sales, and well-positioned sellers.

Foreclosures currently make up approximately 38% of homes currently under contract in the Phoenix area. These properties are often priced very low from the start as the lender that owns them is truly trying to liquidate these properties from their books.

Foreclosures are easier than short sales in that the buyer is dealing with a single owner that has ready decision-making power to approve or reject an offer to purchase. The downside is that the lenders can be harder to deal with than a common homeowner, can’t be emotionally negotiated with and are in fact single-mindedly focused on the bottom line, and will require ‘As-Is’ and other contract documentation that tries to eliminate any future liability.

Short sales likely account for 10-18% of properties currently under contract for purchase in the housing market here. Short sales are the most difficult transactions as often they involve the buyer, the homeowner, the first mortgage lender, a second mortgage lender or other lien holder on the property. There could also be HOA liens and tax liens associated with the property. Though the homeowner may sign off on an offer, it is really the lender(s) that have to approve the transaction and provide lien releases as they will be shorted some amount of money through the process.

Like foreclosures, there are great deals that can be obtained, but a short sale has additional downside risks. Namely, the process could take several months before any approval from the lender(s) is obtained if it is obtained at all. As a result, many home buyers will be left disappointed through this scenario.

Lastly, the deals in the Phoenix area are found with the traditional committed seller who has appropriately positioned their property based on its condition, location, and competition. These represent the best transactions in that the buyer often has more power to negotiate, full property disclosures are often made available, and sellers may be more reasonable to cover the cost of repairs or other items that come up during the inspection process.

An adage in the Phoenix market for sellers is this,”There are reasonable buyers for reasonable sellers,” meaning that a seller can find a buyer if they position their property well and treat the transaction flexibly and earnestly.

To win a strong value, the name of the game isn’t the lowball. The right strategy is knowing what makes a “great deal” and positioning accordingly to get it. That positioning may include the low ball but not necessarily. Buyers who expect to lop off an additional 10%+ off the price for any property and win the home will find this strategy doesn’t work well and they will often lose out on great values as other buyers step in to purchase them.

Separately, for the pure investor who has a strong cash reserve, the Trustee’s Sale or Maricopa County foreclosure auction could present an excellent opportunity to obtain properties more cheaply than on the open market.

Market Outlook for 2009

The Phoenix residential real estate market will continue to see serious challenges and changes moving into 2009. Indeed, properties that do not compose one of the three areas mentioned above – foreclosures, short sales, and well-positioned sellers - can expect to experience additional price declines as their positioning is not in keeping with current market conditions. Foreclosures and short sales will continue though many will be watching for some level of abatement and how this may spread across the Phoenix real estate market. The current recessionary climate poses additional risks and its influence could dampen real estate activity.

Property owners for homes priced above $400,000 will carry additional risk and may experience sharper price declines to adjust to the changing market. All home sellers will continue to face stiff competition to sell their homes. Opportunities for buyers to obtain strong values in the marketplace will continue.

Finally, the impact and potential benefit of the current federal government bailout will be more visible over the next six months. If successful, these programs could help to stabilize credit markets, ease economic concerns, which in turn would benefit the housing markets.

Overall, the Phoenix housing market will continue to slowly work through the issues it currently faces.

The Phoenix residential real estate market is “weary but hopeful” for the coming year.

About the Author:
David Lorti is a professional Realtor for RE/MAX Elite in the Phoenix area and his real estate insights have been quoted in several news outlets. His website, http://www.LortiHomesArizona.com, and blog, http://www.LortiHomesBlog.com, offer market updates and other information on the Phoenix real estate market.

Keyword tags: Phoenix real estate market, phoenix real estate, phoenix arizona real estate, chandler real estate