Good morning, this is a guest post from Jack Crew, who is the owner and editor at finance updates today– a leading daily finance news blog. In this article he describes more about us property market & real estate investment. Let me know if you would like to guest post on RFI.
The economy of United States has slightly recovered. Even though it’s not fully recovered, investors have started to pour their money into the real estate market. But before jumping into the bandwagon, they should look at the market trends of 2014 and based on those trends, create a roadmap for investment.
Some of the noticeable trends of the housing market are below;
- Price of homes is on the rising side like 2013. However, the rate of increase is not as much as it was last year.
- From 2000, mortgage properties have mostly been refinanced. But this year, those properties will be purchased.
- As home prices are rising, more and more homeowners who are currently underwater, will be able to buy and sell property.
The aforementioned points indicate 2014 could be a great year for property buying and selling. However, the mortgage rate could increase this year and cause the number of property sales to go down. Thus, homeowners need to check the mortgage rate in their area.
In general, both buyers and sellers need to follow some effective tips which are mentioned below;
Home Repairing to Keep Pace with the Market
This tip is for sellers. They need to have the repair works done as that would increase the chances of the property being sold. If possible, add a loft room or remove unnecessary furniture so that the house doesn’t look clumsy. Another very important thing to keep in mind is that the cycle could be for a short period of time, so don’t wait for home price to rise even more.
Buyers Should have Strong Credit
Bad credit could be a roadblock for an interested buyer to purchase a stunning house. That’s why, potential buyers should get their credit reports at the earliest and start fixing the holes. For example, a score that is below 600, would make it difficult to get a loan. A buyer should manage pre approval letter to show the seller that he can offer him the best deal.
The importance of negotiation often goes unnoticed. A buyer needs to understand stiff competition is out there. To make his standing firm, he should target 3 or 4 properties at a time so that if he couldn’t negotiate on one, he could do so on the other. There are less lowball offers due to the rise in home price and a prospective buyer couldn’t make an offer that is unattractive in monetary terms.
Dealing with Foreclosure
Many homeowners have given up after foreclosure. But they need to understand they don’t necessarily have to wait for seven long years. There are lenders, who can make it three year waiting period if he could put a sizable down payment on the table with attractive interest rate. Another way out for him is to lease-purchase a property and pay the homeowner a fixed sum of interest every month.
In short, the property buying and selling market has improved a bit and this is the high time to cash in on it. Following the solutions mentioned above could help both sellers and buyers to reap the benefit.