Real Estate Lawyers

Real estate industry is booming and with that the business of real estate attorneys seems to be booming too. Well it doesn’t so much affect the real estate attorneys whether the real estate industry is booming or not. Since shelter is one of the prime requirements of man, there would be property buyers and property sellers in any case at all times (and real estate attorneys would always be in demand). There are many different ways in which people utilize the services of real estate attorneys. Let’s have a look at what these different ways are:
1. Property dispute: This is one scenario where real estate attorneys are obviously the most involved. Not only do they try to get these property disputes resolved (by litigation or otherwise) but also help to get rid of the property (in certain cases) by selling it off and using the amount received for settlement.2. Tenancy disputes: A real estate attorney also helps in resolving the disputes between tenants and landlords.3. Settlement of property on account of death: Sometimes real estate attorneys also handle the property of the deceased. Here they sell off the property for settling it among the heirs.4. Divorce settlements: Again real estate attorneys help in the settling of the jointly owned properties and the divorce settlement in general.5. Don’t want a broker: Some people are just not comfortable with hiring a broker to sell their property, and hence they entrust this with real estate attorneys (some real estate attorneys do take this up).6. As advisors/consultants: A lot of attorneys also work for real estate investors. In fact, hiring a real estate attorney is a very good option for a real estate investor. A real estate attorney can really make the transactions smooth for the investor. A real estate attorney will not only get it done correctly, but also quickly. And for a real estate investor time is very important since he can spend the time saved due to hiring a real estate attorney, into looking for really good deals.7. Information provider: Some real estate investors use real estate attorneys as a rich source of information especially for getting the information about the properties that are up on sale due to disputes or settlement procedures. Here the real estate investors try to gain advantage by getting the information earlier than others (and they do sometimes get very good deals in this way).
So whether the real estate business booms or not, real estate attorneys are always going to be in job (booming job).

All About Real Estate Agents

Real estate agents are professionals who help in connecting the buyer to the seller. A lot of real estate agents also do rentals wherein they connect tenants to landlords and even maintain the property on the behalf of the landlords. The real estate agents work by linking together the two interested parties and charging a commission for their services. For sales, they charge commission only to the seller but for rentals (i.e. agent managed rentals) the commission is charged to both parties involved in the transaction. Real estate agents generally calculate their fee as a percentage of the selling price (in case of sales) and as part of the rent (for rentals). People, who want to sell/let their property, leave the details of their property with the real estate agent (and in fact, even leave the keys of the house so that the real estate agent can arrange for viewings without them getting into any hassle). The other interested party (i.e. the buyer/tenant), gets access to this information by contacting the real estate agent. That’s how the real estate agents become a hub of information.
A lot of home seekers (including real estate investors) use the services of real estate agents not just for getting good deals but also getting them quick. Since real estate agents are probably most familiar with the market situation in their region of operation, it makes sense to approach them to get an idea of the going rate for properties in that region. Real estate agents would generally know the prices of various properties of different types and at various locations in the region.
A property seller can possibly get a few thousands more for his/her property by using the advice received from a good real estate agent. A good real estate agent will also analyse the needs of a home buyer/tenant and provide suggestions on what kind of home could be available to them within their budget. So a good real estate agent will not just throw a list of available properties to the buyer/ tenant but will actually discuss their needs and make a suggestion. This, in fact, works in the favour of real estate agent in two ways. Firstly, if the real estate agent is able to sell the house they get their commission and secondly, if they make the buyer happy too they earn a good reputation (and hence more business).
However, it is worth noting that real estate agents work on seller’s behalf. So, beware if they are trying too hard to sell a property.

Real Estate Appraisal--Is That The Real Value?

Real estate appraisal or property valuation is the process of determining the value of the property on the basis of the highest and the best use of real property (which basically translates into determining the fair market value of the property). The person who performs this real estate appraisal exercise is called the real estate appraiser or property valuation surveyor. The value as determined by real estate appraisal is the fair market value. The real estate appraisal is done using various methods and the real estate appraisal values the property as different for difference purposes e.g. the real estate appraisal might assign 2 different values to the same property (Improved value and vacant value) and again the same/similar property might be assigned different values in a residential zone and a commercial zone. However, the value assigned as a result of real estate appraisal might not be the value that a real estate investor would consider when evaluating the property for investment. In fact, a real estate investor might completely ignore the value that comes out of real estate appraisal process. A good real estate investor would evaluate the property on the basis of the developments going on in the region. So real estate appraisal as done by a real estate investor would come up with the value that the real estate investor can get out of the property by buying it at a low price and selling it at a much higher price (as in the present). Similarly, real estate investor could do his own real estate appraisal for the expected value of the property in, say 2 years time or in 5 years time. Again, a real estate investor might conduct his real estate appraisal based on what value he/she can create by investing some amount of money in the property i.e. a real estate investor might decide on buying a dirty/scary kind of property (which no one likes) and get some minor repairs, painting etc done in order to increase the value of the property (the value that the real estate investor would get by selling it in the market). So, here the meaning of real estate appraisal changes completely (and can be very different from the value that real estate appraiser would come out with if the real estate appraiser conducted a real estate appraisal exercise on the property).A real estate investor will generally base his investment decision on this real estate appraisal that he does by himself (or gets done through someone). So, can we then term real estate appraisal as a really real ‘real estate appraisal’?

The Land Of Disney--Orlando Florida Real Estate

Yes, getting a piece of Orlando real estate is indeed a very attractive proposition. For a lot of people, buying Orlando real estate is like becoming a part of Disney or Universal Studios or just any theme park. Some others are attracted to Orlando real estate due to the moderate climatic conditions. So owning Orlando real estate speaks both of comfort and fun. Some treat Orlando real estate as an investment for their retirement. In fact a lot of people buy Orlando real estate just so that they can settle in Orlando later in their lives. When it comes to investing in Orlando real estate, vacation homes also seem a popular thing. A number of people go for properties that are in Disney’s proximity. Renting out vacation homes is a popular thing and some people invest in Orlando real estate so that they can earn rental income till the time there decide to actually live in that property. With some tour operators offering rental guarantee, the vacation homes are gaining a lot of popularity in Orlando. Sometimes people are even able to pay their monthly mortgage payments using the monthly rental income from the vacation homes. However, if you go looking for Orlando real estate (for getting rental income), you must make sure that you buy it as close to the theme parks as possible. That is where you will get the most in terms of rental income from your Orlando real estate investment. So, even though you might have to pay a bit more for that piece of Orlando real estate, you should also consider the fact that the rental income will also increase in the same proportion. Moreover, going for a vacation home that is cheaper but much farther from Disney and other attractions, might not get rented out at all. So that cheaper piece of Orlando real estate might actually turn out more expensive for you. However, if you are looking to live in by yourself, then the proximity to theme parks might not be your priority. Instead you should be looking for convenience, in terms of comfort and in terms of availability of necessary amenities (and if you have kids then you would also be looking for schools etc). Of course, other/general criteria for selection of real estate would be applicable to Orlando real estate too. So, Orlando real estate investment does seem to make a lot of sense. The only important thing is to evaluate the reason for going for Orlando real estate and then make a good decision.

What's Up With Las Vegas Real Estate?

Is Las Vegas real estate really a wonderful real estate investment option? Well, probably yes. With the population on the rise and the economic indicators signalling growth, one would assume that Las Vegas real estate should be on the cards of any real estate investor. A lot of businesses are getting setup in Las Vegas. So all those developments combined with the fact that Las Vegas is what Las Vegas is, have made Las Vegas real estate investment a really attractive option. The uptrend in Las Vegas real estate can also be judged by the fact that the rents in Las Vegas have moved up quite a bit in last couple of years. With new facilities being added and with more businesses getting setup, you would expect the unemployment rate to go down for Las Vegas (which actually is the case). Moreover, as there is more influx of people and businesses, Las Vegas real estate would be expected to be in demand (both for business purposes and residential purposes). The appreciation of Las Vegas real estate can also be contributed to the avenues for enjoyment that exist in Las Vegas. A lot of people have made a lot of money by investing in Las Vegas real estate and a lot of people have started investing in Las Vegas real estate. However, as is the case with any real estate investment, you must evaluate your options carefully before you actually go for Las Vegas real estate investment. If you are full time into real estate investment business in and around Las Vegas, then you must already be looking at various investment avenues in Las Vegas real estate not just from the perspective of new developments but also from the perceptive of existing/ evergreen Las Vegas real estate investment opportunities (i.e. in terms of distress sales, public auctions of property etc). However, if you do not live in Las Vegas or anywhere near Las Vegas, but want to invest in Las Vegas real estate, then your best bet would be to find a Las Vegas real estate broker or maybe just look for the Las Vegas real estate listings over the internet. If you are unable to find other avenues easily, you might consider investing in new Las Vegas real estate developments i.e. new constructions. However, you need to pay heed to the growth indicators before you make the move to invest in Las Vegas real estate.

Hunting With A Real Estate Agent In Georgia

Georgia is a wonderful place to live in. No wonder you have decided on picking up Georgia real estate for living-in or investing. Your Georgia real estate hunt can quite easily start with looking for the real estate prices (i.e. average prices) so as to gauge what kind of house and location will fit your budget. This is assuming that you have already estimated how much you can afford to spend on that Georgia real estate piece that you are so much after. With little effort you can easily find out the Georgia real estate prices. You can do this in a lot of different ways. One way is to directly give a call to a Georgia real estate agent and ask him about what kind of house you can get within your budget (if you are looking for Georgia real estate for investment purposes). In fact, a lot of people find it easier to just make a call to the real estate agent and get a grasp of the going prices for properties in any place let alone Georgia. Now, as mentioned above, if you are looking for Georgia real estate piece as an investment option, then you would start with checking out what you can get for your budget. However, if you are looking for Georgia real estate because you actually want to live in Georgia (and enjoy your life), then you would be better off starting with your most basic requirements from a house e.g. you could specify a 1 bedroom house or a condo or whatever, if that is the minimum space you would need to be able to live in comfortably with your partner or your family etc. If you cannot get that basic house in the location of your choice in Georgia, you might have to rethink and figure out other options (e.g. not going for Georgia real estate at all, or picking up a house at another location in Georgia, or waiting for some more time before you can actually own a Georgia real estate piece etc). So evaluation of affordability is important. Here, we are not saying that you should not evaluate the affordability factor if you are looking for Georgia real estate for living in and not investing. It’s just that you will need to pose the question differently to that Georgia real estate agent. In any case, you should never reveal your real budget to that Georgia real estate agent. Mention an amount that is lower than your real budget by 10-20% even if your Georgia real estate insists on what maximum you can spend. For a person who is looking at Georgia real estate as an investment avenue, the Georgia real estate agent is just a way to find out the going rate, he will have to use other real estate investing techniques to find the best deal. So your Georgia real estate hunt can easily start with just calling up a real estate broker.

Florida Real Estate

“Florida is where the sun shines”- you must have heard this several times. Moderate/warm climate, famous beaches and entertainment venues really make Florida real estate very attractive. So that means Florida real estate or buying a house in Florida is really good for someone who wants to escape the vagaries of weather elsewhere in America and also add to his/her enjoyment through the Miami beach and Orlando theme parks. However, Florida real estate is also attractive for real estate investors i.e. people who would like to treat Florida real estate as an investment avenue for making profits. With the property prices rising as much as 25%, Florida real estate makes investment sense too. That is one reason why Florida real estate is so sought after. If you wanted to look for a really good deal in Florida real estate, you should start with looking for places that are still in their development phase i.e. places where the real estate prices are not so high but are expected to go up in the years to come. This is generally a good option for people who are looking to pick up Florida real estate as an investment option. This is also good for people who are looking for Florida real estate or a house in Florida to live in by themselves but don’t mind a bit of inconvenience that is generally associated with a newly developed (rather developing) area. As far as looking for Florida real estate listings is concerned, you first need to decide on what location in Florida is suitable for you. Again, this will depend on your reason behind going for Florida real estate. If you are going for Florida real estate purely for investment purposes (i.e. you don’t actually want to live in there), then you should really be looking for places where the prices are significantly low but are rising or expected to rise in near future. One indication for expected price rise is the influx of a lot of businesses in the area. Industry/business generally propels development in the area and hence causes the real estate prices to go up (and that would be true for Florida real estate too). Of course, distress sales, public auctions, bank foreclosures are like evergreen opportunities that are available in any place at any time and you should always explore them. If you are going for Florida real estate for personal use, then you would be looking at a number of different factors which would basically be related to your convenience and quality of life. So Florida is where the sun shines and that is also making Florida real estate shine.

The Big Profits Are In Commercial Real Estate

Real estate is often termed as the safest investment avenue. In fact, real estate investments done with proper evaluation of the property (and its true value), can lead to good profits. This is one reason why some people pursue real estate investment as their full time job. The talks of real estate are generally focussed towards residential real estate; commercial real estate seems to take a back seat. However, commercial real estate too is a good option for investing in real estate.
Commercial real estate includes a lot of different kinds of properties. Most people relate commercial real estate with only office complexes or factories/ industrial units. However, that is not all of commercial real estate. There is more to commercial real estate. Health care centers, retail structures and warehouse are all good examples of commercial real estate. Even residential properties like apartments (or any property that consists of more than four residential units) are considered commercial real estate. In fact, such commercial real estate is much in demand.
So, is commercial real estate really profitable? Well, if it were not profitable I would not have been writing about commercial real estate at all. So, commercial real estate is profitable for sure. The only thing with commercial real estate is that recognising the opportunity is a bit difficult as compared to residential real estate. But commercial real estate profits can be real big (in fact, much bigger than you would expect from residential real estate of the same proportion). You could take up commercial real estate for either reselling after appreciation or for renting out to, say, retailers. The commercial real estate development is in fact treated as the first sign for growth of residential real estate. Once you know of the possibility of significant commercial growth in the region (either due to tax breaks or whatever), you should start evaluating the potential for appreciation in the prices of commercial real estate and then go for it quickly (as soon as you find a good deal). And you must really work towards getting a good deal. If you find that commercial real estate, e.g. land, is available in big chunks which are too expensive for you to buy, you could look at forming a small investor group (with your friends) and buy it together (and split the profits later). In some cases e.g. when a retail boom is expected in a region, you might find it profitable to buy a property that you can convert into a warehouse for the purpose of renting to small businesses.
So commercial real estate presents a whole plethora of investing opportunities, you just need to grab it.

Does Colorado Real Estate Rock?

We know that Colorado is known for Rocky Mountains. But does the Colorado real estate rock as well? Though Colorado real estate doesn’t rock that much, as per the statistics (and when we compare Colorado real estate to others like Florida real estate or California real estate). However, there are people with contrarian views as well. And believe me, contrarian views do sometimes get huge profits for you, because in such circumstances you will generally face lesser competition from other real estate investors and you can probably get a Colorado real estate piece for much lesser than it actually is worth. However, we are not saying that Colorado real estate has performed badly. Though I don’t remember the exact statistics but Colorado real estate appreciation was about 5-7% only which is much lower to 25% or so for Florida real estate. Again, when we say 5-7% appreciation in Colorado real estate, we are talking about the state in general. So, it’s quite possible that there be regions in the state where the real estate appreciation is say 25% and there could be places where there has been no appreciation in real estate. The opportunity is always there, the only thing you need is the art of finding the Golden deal in this Colorado real estate market. When assessing Colorado real estate you must take into consideration various factors e.g. you must assess the overall economic indicators and check what effect it can have on Colorado real estate (both in the near term and in the longer term). You don’t need to be a financial analyst or a real estate guru for doing this assessment, you just need to keep track of various news items and analysis reports on Colorado real estate. Also keep track of the mortgage rates and laws on tax breaks (as applicable to Colorado real estate). All these factors influence the trend of real estate anywhere (not in just Colorado). Moreover, you will need to hunt for Colorado real estate opportunities by going to public auctions, foreclosures, teaming up with attorneys for information etc. Again, remember that a not-so-good news about any real estate (be it Colorado real estate or Florida real estate), doesn’t mean that real estate investment won’t make sense at that place; in fact, it might cut down the number of competitors you have.So, if you feel that Colorado real estate doesn’t rock; you can probably make it rock for you. There always are plenty of opportunities.

Investing In California Real Estate

California is one of those states where you find all kinds of properties and where the climatic conditions vary hugely from place to place. You have places with moderate temperatures and you have places which experience all four seasons in their full glory. Traffic Jams, beaches and mild earthquakes are all characteristics of California. So there are a number of things to consider before you actually go for investing in California real estate.
The first thing to consider for investing in California real estate is to select the place/area for your California real estate investment. This is more applicable to people who are looking at California real estate more as an option for leading their life (rather than an investment option). That said, even if you have chosen the region for investing in California real estate, you need to be careful with selecting the location in that region i.e. the California real estate piece that will fetch you good profit. Generally, growth of business (e.g. big companies acquiring land for establishing their offices) is an indicator of appreciation in real estate (whether California real estate or any other). That is the consideration with regards to new developments in California real estate or with respect to significant changes in the economic situation of a particular place in California. However, there are always opportunities and they are there everywhere. You just have to hunt those opportunities in order to profitably invest in California real estate. Post cards, phone call, public auctions, foreclosures etc are all possible opportunities/ways of getting a good deal for California real estate investment. You could also partner with the local attorneys in the region i.e. attorneys who handle property matters in case of death, divorce, defaults etc. These people can give you good leads on California real estate investments. In such cases, whoever gets the information first gets the advantage. You can really lay your hands on some good California real estate deals in this way.
Yes, that does take effort and if you were to think that money can be earned without putting-in even that much effort, I would tend to disagree with you. A small amount of effort can really make a difference of thousands of dollars in terms of the California real estate deal that you get. Another good idea is to inform your friends in California that you are looking to buy a piece of California real estate and, in fact, let everyone know that you are looking for a piece of California real estate. A very good California real estate deal might come to you through one of your contacts, you never know.
So with the California real estate prices rising (as always), investing in California real estate does seem like a great idea.

Arizona Real Estate: The Buyers Motivation

Arizona real estate market is really hot. The centre of a lot of action in Arizona is Phoenix metropolitan area. However, when it comes to real estate investing, every area is hot. Based on whether you are looking for Arizona real estate just as an investment avenue or whether you are looking for Arizona real estate to actually live in, your preferences would change a bit. However, one thing which you would always want is a low price. And that is something that would require some effort. If you are looking to get a piece of Arizona real estate for yourself and your family, then you need to consider a lot of different things which will also influence your perception of the lowest (or the best price) for that Arizona real estate piece. Note that the best price for the same Arizona real estate piece might be different for different people (because their level of motivation to buy a particular Arizona real estate piece might vary). So, if you have a lot of friends living in a particular area in Arizona, then Arizona real estate in that area might become your preference and hence increase your motivation level. Similarly your buying motivation will be higher if you are planning to move into the place on account of a new job that you are taking up in that place or if you have been transferred to that place in your current job itself. If you have children, you would have to look around for Arizona real estate which has good schools around it. Again, you would like to evaluate your lifestyle and see if there is place that is in particular suited to your lifestyle. So, there are a lot of factors that could lead to increased motivation levels. Generally, more the motivation of either side (buyer-seller), lesser is their negotiation power. So even if you are much motivated to buy a particular Arizona real estate piece, do not show it in front of the seller. Though hiding your motivation will be a bit difficult, nonetheless give it a good try. If you are looking for Arizona real estate just for investment purposes then you would probably have a lot more time on hand to evaluate various properties before you actually go ahead with one. So your buying motivation will not (and should not) be too high. Remember that if you have time on hand, you can always get better deals (and there are lot of Arizona real estate deals out there, if you were to look properly).

Why The Real Estate market may Turn Around Next Year

Without a doubt, 2007 was one of the worst real estate years many had seen in quite some time. In fact, many people have begun to compare the current real estate market crash to the crash of the 1980s. While it does not appear that prices will improve this year, there are indications that the market may begin to experience some recovery next year. This could mean an improvement in prices which have appeared to be in free fall for the last few months. One of the reasons that it is anticipated that prices will begin to improve in 2009 is the fact that many experts have anticipated the market will bottom out in 2008. At first glance, this can certainly seem to be frightening news; however, it is important to keep in mind that the market really cannot begin to recover until it does bottom out.
In understanding the recovery of the market it is important to look at the factors that resulted in the current real estate market slump. There are actually several factors that led to the current slump. One of the most important factors is the fact that prices in several areas throughout the country doubled between 2000 and 2005. In some cases, those prices even tripled. As a result, there were a record number of people who were unable to afford homes, especially first-time home buyers. As the number of buyers able to purchase real estate began to dwindle, resulting in price and sales declines throughout the country.
As headlines have proclaimed recently, subprime loans also contributed to the recent debacle. During the last few years, a large percentage of the number of loans that were made were issued to buyers with credit scores that were below average. Additionally, a large number of loans were made to buyers with minimal down payments. Approximately two years ago real estate prices stopped rising. At this time, a number of buyers who had snapped up houses in red hot markets suddenly discovered that the balance of their mortgage exceeded their home’s values.
The rate of defaults began to escalate at this point. Before long, foreclosures also began to increase as a direct result. As more and more foreclosures hit the market, the inventory in many markets began to spiral out of control. As more homes hit the market, prices began to drop even more. To make matters even worse, economic growth began to stall and massive layoffs in many areas further fueled defaults and foreclosures.
While it has taken some time, assistance is now being provided to homeowners; which is anticipated will help to stave off the increasing rate of foreclosures. Overall, this is anticipated to help stabilize the rapidly rising inventory of homes for sale throughout the nation.
It is important to keep in mind that while headlines appear to be constantly blasting news about the softening real estate market, there are actually some markets in the country where prices have continued to rise rather than decline. On average, real estate prices nationwide are approximately 5% less than they were last year; however, many of the metro areas in the nation are still experiencing price increases. This is largely due to first-time home buyers who can still afford to purchase properties and retiring homeowners who are selling their home sand then either moving into a retirement community or purchasing smaller properties. These markets include Salt Lake City, Utah; Charlotte, North Carolina; Beaumont, Texas and Bismarck, North Dakota.

What You Can Do In The Current Real Estate Market

As real estate markets continue to decline around the country, many homeowners are wondering what they can do to protect themselves and the investment they have made in their home. There are actually many different steps you can take to make sure you stay ahead of the softening real estate market.
One of the first steps that should be taken is to check with either your city or county property tax office to research your current tax assessment. This will tell you what the county or city states your home is actually worth. You should then compare this rate to what your home is currently worth based on current market conditions. It is not uncommon for homeowners in several states, such as in California, to discover that they are paying more money in property taxes than they should be based on the value of their home in the current market.
In some states, homeowners are actually paying up to 40% more than they should be. If you are not sure of your home’s current value in the existing real estate market, it is also a good idea to have your home appraised to determine its current value. Taking both of these steps will give you a realistic idea of the value of your home in the current market and ensure that you are not paying more money in taxes than you should be.
If you do have an adjustable rate mortgage it is certainly worth it to consider refinancing your mortgage to a fixed rate mortgage. Before you actually refinance; however, there are several steps which you should take first. Begin by inspecting your existing mortgage documents to determine whether you will be penalized for paying off the existing loan early. While you will be taking on a new loan, your existing loan will be paid off when you refinance it and this could subject you to penalties is such a clause exists in your mortgage documents.
In some cases, you may discover that you actually owe more on your home than it is worth. This is actually quite common now among homeowners who took out exotic mortgage loans a few years ago when prices were rising rapidly and the market was red hot. Today; however, this can cause quite a bit of dismay among homeowners who are facing large mortgage payments on homes that have dropped rapidly in value. While it is anticipated that the market will begin to stabilize sometime next year, you will need to give some careful thought to whether it would be in your best financial interest to simply walk away from such a situation and try to start fresh.
Additionally, you need to consider how long you plan to remain in the home and balance out that time in comparison to the amount of closing costs you will need to pay when you refinance your home. While a number of mortgage companies advertise ‘no cost’ refinance loans you should be aware that such loans rarely, if ever, exist. The costs for refinancing your loan are typically financed in with the loan under this type of arrangement. This means that instead of paying the costs for the loan up front you will be paying interest on them throughout the duration of the loan. In addition, it is important to research any mortgage company you consider to ensure there have been no complaints filed against them before you refinance your mortgage.
If you plan to remain in your home, it is also a good idea to check your homeowner’s insurance policy to be certain that it is up to date. This can prove to be critical in the event you suffer any type of loss on your home in the future. If you live in an area that is susceptible to hurricane or storm damage it is especially important to make sure that your policy accurately reflects your home in its current state.

Using Seller Concessions To Fight The Real Estate Market Crash

During the last few years before the market started to turn downward, it was virtually a guarantee that you would be able to sell your home if you put it on the market. In fact, there were many markets that were a virtual hot bed of activity, with bidding wars inciting prices well above the asking price. The low interest rates at the time were all the encouragement buyers needed to start snatching properties at a historic rate. As a result, numerous investors were able to double the investment they had made in short period of time.
As many predicted would happen; however, the real estate bubble did indeed burst and many are predicting that the market of 2008 will make the preceding two years seem like a cakewalk. Once hot markets have declined rather rapidly, leaving investors and homeowners alike wondering what they can do to sell their properties as loan underwriting guidelines tighten and the market floods with inventory.
If you find that you absolutely cannot wait until the market turns around to sell your property and must sell it now, your best hope may be creative marketing tactics.
The first thing that must be understood about the current market is the fact that the market is rife with choices. A few years ago buyers felt a decided pressure to move and move quickly when searching for a property. Choices were few and the best properties were likely to be snatched up as soon as they hit the market. Today that is not the case. There are far many more properties on the market, prices are lower and buyers know they have the advantage of being able to take their time looking. This means if you are going to be competitive in selling your property, you will need come up with something that will set your property apart and entice buyers.
In the last few years before the market crashed, sellers had no need to use seller concessions. In areas where the inventory is high; however, seller concessions are becoming far more common. Basically, a seller concession is anything that a property owner uses to curry favor with buyers. The range of possible seller concessions varies quite a bit. For example, you might provide a decorating allowance if your carpet is outdated or even provide a contribution toward closing costs in order to encourage first-time home buyers to consider your property.
In the past these types of concessions were not usually offered until buyers and sellers were in the process of negotiating. In most cases, such concessions would not even be offered until something turned up in the inspection. That does not mean that they cannot be offered during marketing; however, in order to attract prospective buyers.
The key is to recognize that the balance of power has definitely shifted. Buyers hold the upper hand right now and sellers must be prepared to do what they can to attract them. If you have already taken certain steps to move your property such as pricing it aggressively then you may wish to consider making some concessions to increase the interest of buyers.
One option would be to pay points for the buyer. This is actually a situation that provides a win for both buyers and sellers. Let us say you have a property listed at $150,000. If you slashed the price 3% then you would be taking $4,500 off the price. You could use that same amount of money; however, to purchase mortgage points for the buyers. In fact, you might even find that you can purchase a substantial amount of points for a bit less money. This strategy would allow buyers to obtain a much lower interest rate and as a result a far lower monthly payment. This would make your home more affordable than similar homes in the neighborhood and may just provide the incentive buyers need to snatch up your home.

Using Creative Tactics To Your Advantage While Szelling In A Down Market

The real estate crash of 2008 appears poised to make the downtown of the last couple of years look like nothing at all. While the market crash is certainly disturbing, real estate market crashes are really not anything new. The real estate crash of the late 1980s certainly caused plenty of concern. During that time; however, many investors learned to use creative marketing strategies in order to survive the crash. Whether you currently have a property in a market where sales have slowed down or you need to move your property off the market quickly, there are strategies you can employ in order to avoid becoming a victim of current market conditions.
During the market crash of the 1980s many sellers found it helpful to offer to pay some or even all of the closing costs for the buyer. In many situations this can be a highly successful tactic; however, it does not work in all situations. In some cases, the lender may place limits on the concessions the seller is allowed to make. This is often the case if the buyer is purchasing the property using a Fannie Mae or Freddie Mac loan.
These loans are often attractive to many buyers because they are able to make a lower down payment. In return; however, sellers are frequently limited to concessions of 3% of the total amount of the sales price if the buyer is making a down payment of 10% or less.
In this case, you may need to come up with an even more creative strategy in order to sell your property. One option that many used during the real estate market crash of the 1980s was to raise the price of their property. At first glance, this strategy may certainly seem as though it would be counter-productive. In reality; however, it is a very creative way for you to provide assistance to the buyer with their closing costs.
Here is how this strategy works. Basically, you agree on a price with the buyer and then raise the price by a certain percentage. That money is then given back to the buyer during the closing. On a $150,000 home with a 3% price increase that would amount to $4,500. This money would go directly to the buyer and help them in paying their closing costs. In return, the buyer would obtain a loan for $154,500 and essentially be able to cover their closing costs using their mortgage.
For this tactic to work the home must be appraised for the higher price in order for the buyers to be able to obtain the mortgage loan. Of course, the buyer must also be willing to pay the higher asking price and understand that their monthly mortgage payment will also be slightly higher as a result.
Many sellers are reluctant to make any concessions at all, preferring to try to obtain as much money as they can from the asking price for their property. In a down real estate market; however, it is important to keep in mind that basically every month the property sits on the market is costing money. Over a period of several months this could ultimately amount to far more money out of your pocket than you would give up by making concessions early on in order to sell your property as quickly as possible.

Tips For Selling Your Property During The Real Estate Market Crash

Many experts are advising that it may be best to wait before you try to sell your home in the current market. There are certainly many reasons for this type of advice. The real estate market in most areas remains rife with inventory. Prices have not yet stabilized and as a result many markets are continuing to experience price declines. This is not expected to change at least for several months. In some cases it could be next year before markets begin to stabilize. Thus, the theory exists that it does not make sense to sell at the moment when markets could likely stabilize soon. In some situations; however, sellers may not be able to wait before they sell. If they are facing a foreclosure, medical situation or must relocate for work; there simply may not be any other alternative but to attempt to sell their home in the current market.
If you find yourself in this type of situation, then it is important to know what you can do to sell your home in the current environment despite the real estate crash. The first thing of which you should be aware when selling in this climate is that caution should be exercised with home improvements. Just a few years ago sellers could expect to recoup quite a bit of money for making home improvements when they sold their properties.
This is no longer the case. In fact, many experts are now pointing out that buyers are more interested in homes that are clean, neat and presentable than homes that are high-end. The most common mistake that many sellers make when selling their home in the current real estate market is adding the cost of the remodeling to the sales price. Essentially, these sellers are asking the buyers to pay for the cost of the remodeling. While this might have worked in some markets a few years ago, it simply will not today.
Therefore, before you make any improvements to your home for the purpose of selling it, it is a good idea to seek professional advice. Ideally, this should be done a few months before you plan to put the home on the market. By seeking professional advice, you can learn where to spend your money to get the most bang for your buck. In most cases this will be paint and flooring; however, this can vary from market to market.
Another area that can be worth it to spend the money is obtaining a home inspection before the property goes on the market. In the past, home inspections were not performed until a contract was actually on the market and then it was paid for by the buyer. In today’s market; however, buyers have the luxury of being more selective. Obtaining a home inspection can set your home apart from the rest and provide peace of mind to buyers.
In addition, you should make sure you pay attention to the exterior of your home as well as your lawn. Siding and windows, in particular, are an important area on which to focus.
While in the past, kitchens were a major area on which to focus for home improvements because most sellers could expert to recoup most if not all of the cost, this has also changed in light of the existing real estate market. Unless you cannot avoid it, replacing dishwasher, stoves and refrigerators is not advisable.

Tips For Real Estate Agents To Survive The Current Market

Like homeowners, real estate agents are suffering as well. Inventories have continued to rise and as a result many agents are not closing as many transactions as they have in the past. In order to remain competitive, many agents have discovered that they must become quite creative in order to keep their offices open.
As budgets tighten, advertising dollars have become limited and yet agents know they must advertise in order to get beyond the current slump. While print and television advertising can be quite expensive, advertising online remains quite cost effective. In fact, many agents are turning toward blogs in order to offer weekly market advice that is specific to their location. This technique is quite inexpensive and works well to keep local residents apprised of the existing market conditions.
Real estate agents are also recognizing that buyers as well as sellers are more interested in value today than ever before. As the average home price continues to drop, an increasing number of sellers are turning toward the idea of selling their home on their own in order to avoid real estate commissions. To combat this problem, more and more offices are reducing their fees. Other creative efforts can also be quite effective. For example, some agents are springing for the cost to have properties professionally staged or even professionally cleaned.
The current market is definitely challenging; however, it is critical that you take action rather than simply sitting around bemoaning the fact. While making an effort in the existing market will take some effort, it will also set you apart from the competition. One of the ways you can go about doing this is to consider each property separately and think about what you can do to make that property stand out. In battling the current real estate market, you may simply find that you need to fight it out one property at a time. You do not need to spend a lot of money on these efforts; however, there are many things you can do to market your listings in order to increase their exposure.
Consider how much online exposure your listings are currently given. If you do not have much of an online presence at the moment now could be the time to make that change. Statistics indicate that more than 83% of all buyers begin their property search online. If you are going to nab those buyers, you need to be advertising in the same medium in which they are searching or you run the risk of missing out on them.
In addition, it is a good idea to think about what you can do to improve the quality of your advertising. For example, you might give some thought tow hat you can do to improve the quality of your photographs.
Finally, use the time you have on your hands to your advantage. It very well could be that business is out there, you simply need to do some mining to find it. Use the power of your database to unearth warm leads which could provide you with excellent resources for buyers. Set a goal to contact at least 10 people ach week. You just never know where those phone calls may lead you, especially if you provided them with great customer service in the past.

Tips For Investors To Get Through A Real Estate Market Crash

There is little doubt about the fact that a real estate market crash can be frightening for everyone; especially investors. When the market is good, it’s great; however, when it starts to slide it can be more than a little stressful. Many new investors often look to veteran investors and wonder how they are able to make it through the ups and downs of the real estate market year after year and come out relatively unscathed.
The truth of the matter, of course, is that many investors do not come out unscathed. Many become frightened at the first sign that the market may be about to slide and quickly exit before they become burned. The real secret to being a successful real estate investor lies in sticking it out through the bad times as well as the good times.
So, what do you do when the market does experience a downturn? How do you make it through it in order to take advantage of all the benefits when the market finally goes back up again?
First, try to avoid selling in a down market. Suppose the property that you have purchased for investment does go down in value. The best approach is to try to hold onto it until the market returns and your property goes back up in value. This can certainly be frightening and stressful at the time; however, if you examine the cyclical nature of the real estate market you will discover that it always comes back. The amount of time it takes for it to return can vary; however, real estate always bounces back.
One of the most common reasons that many investors sell when the real estate market is in a downturn is that they are afraid the market will worsen. Of course, there is always that possibility. It has to hit the bottom before it can begin the climb back to the top.
Selling during this particular phase of the market is often an emotional decision and one that is frequently not well thought out. There are even some cases in which investors who sell during a down market find they must scramble to come up with the costs necessary to close the deal. Stop and consider for a moment the anatomy of such a decision.
The market has turned down and you are concerned it will get worse before it gets better. So, you sell the property at a price that is far below what you paid for it and perhaps even what you have it mortgaged for. The person who buys the property waits it out and once the market returns, which it will, they are able to take advantage of the great deal they made and ultimately turn a great profit.
Instead of selling, an alternative option would be to hold onto the property and rent it out. Historically, there are always more renters during a down market than buyers. Why? Simply put, when the market is down many first-time homebuyers find they are frozen out of the market because lenders are more conservative and write fewer loans due to more restrictive underwriting guidelines. Since everyone still needs a place to live, many of these people wait out the market by renting. If you do sell during a down market, make sure that it is because you have given it plenty of thought and not because you are reacting to emotion.
Beyond waiting out the market downturn it is also a good idea to make sure that you put aside some cash when possible. When you are already in the middle of a slump that can be difficult to do; however, when the market turns around again make sure that you put aside a little extra money in the event you experience a turn in the market. The extra money can provide you with a cushion until the market settles as well as ensure that when the real estate market does turn around you have options available to you.

Great Tips For Homeowners And Buyers To Protect Themselves

The first signs of the impending real estate crash were noticed in 2005. In 2007, the market began to tumble and since that time literally thousands of brokers and bankers involved in the mortgage industry have gone out of business. Despite the dire conditions of 2007; however, signs indicate that the national market could fare even worse during 2008. Many experts in the industry are specifically concerned that the number of home foreclosures will rise dramatically and commercial real estate will become pinched even worse than in the preceding months.
While this news is certainly disturbing, it is important for homeowners as well as home buyers to understand that there are steps they can take to help protect themselves from the impending real estate crash in 2008.
First, make sure you understand exactly what kind of mortgage loan you have and the implications of your mortgage type. While adjustable rate mortgages were certainly attractive a few years ago because they allowed homeowners the benefit of lower interest rates, today they are a disaster waiting to happen. If you have an adjustable rate mortgage, it is essential that you consider obtaining a fixed rate mortgage.
If you have your house on the market and are experiencing difficulty selling it, as is the case with many sellers, recognize the fact that you may need to make some concessions on the terms and/or the selling price. The real estate market is rife with inventory right now and buyers are able to choose what they want and on their own terms. If you want to be one of the sellers that is successful in selling their home, you will need to lower the price and possibly even toss in a few extras to move your house off the market. If you cannot lower the price, think about whether you might be better off financially to rent the home over the course of the next two to three years.
The impending real estate crash will also most certainly impact prospective buyers as well. While there is a tremendous amount of inventory currently available and prices are lower than they have been in several years, it certainly appears as though there will be even more price reductions throughout the remainder of 2008. In some areas, prices could go drastically lower. This means that if you can wait awhile longer to buy a home you may be able to take advantage of even lower prices.
As a buyer, you also need to make sure you give careful thought and consideration to the type of mortgage loan you take out to ensure you do not become caught up in the real estate crash. If you are a first-time homebuyer and/or you have a credit rating that is less than favorable, it is a good idea to consider taking out a FHA mortgage. If you are a veteran, a VA mortgage is also a good option. Both of these types of mortgage products offer terms that can be more attractive in the current market than other types of mortgage products.
Keep in mind that while there are still numerous ‘no cost’ mortgage loans being advertised, it is imperative that you research such mortgage offers carefully before you try to take advantage of one. In most cases, there is really no such thing as a ‘no cost’ loan. The costs are usually added back into the mortgage and that means you will be paying them off at a greater cost over the term of your loan.

The Mortgage Slump Takes it's Toll On Home Renovations And Home Equity Loans

Back when the housing market was still booming, many homeowners took advantage of the opportunity to renovate their homes. At the time it certainly seemed to make sense. Interest rates were low; loans were usually easy to obtain and homes were selling like hotcakes. Therefore, many homeowners easily made the connection that it was the ideal time to renovate their homes to include higher-end features. These homeowners reasoned that if they decided to sell their homes they would be able to easily recoup the cost of the home improvement.
In most cases, home-equity loans were used to finance these home improvement projects. A home-equity loan is a special type of loan which allows homeowners to take out a form of second mortgage on their home against the equity they have built up in their homes. Due to the fact that home values were skyrocketing in many areas, homeowners suddenly found themselves awash in rapidly rising equity. That, combined with low interest rates, made it quite easy to borrow thousands of dollars to put toward home renovations. In fact, many homeowners found no trouble at all in borrowing up to $100,000 or even more to fund various home improvement projects.
During this time kitchen renovations and upgrades wee particularly popular. Granite countertops became the standard for the day and all high-end homes and even those that bordered on the fringe of being high-end were suddenly being renovated with granite countertops. High-end appliances, especially those produced by Viking, also became quite popular. Homeowners speculated that adding such high-end features to their homes would raise the value even higher.
In many cases, homeowners were able to recoup at least 80% of the cost of those renovations. In other areas, it was not unheard of for homeowners to recoup almost 100% of the cost of the renovation. Taking into consideration a couple of years of use of the renovations and all together, most of these homeowners found it was quite a good deal.
Today; however, the boom has finally ended and many homeowners are finding that those home improvements are more expensive than they ever dared dream. There is suddenly so much inventory on the market from which buyers can choose; however, that they are no longer as impressed with such features as they once were. As a result, even upscale improvements and additions are now recouping less than 70% of their actual cost. There is no doubt that the return for higher-end renovations has certainly declined quite quickly.
This provides critical advice for homeowners who are thinking of renovating their homes in the current real estate market. This message is that if you are planning to renovate your home, you should not go over the top; especially if you think you will be selling in the next three to four years. In most cases you simply will not be able to get the money back when you sell.
You should also take into consideration the fact that home-equity loans for the purpose of renovating homes are not easy to come by as they once were. Just a few years ago it almost seemed as if lenders were begging to give away money. Interest rates were so low, most homeowners felt as though they were being foolish if they did not borrow money against the equity in their homes. Like the rest of the mortgage industry; however, the default rate for home-equity loans has increased sharply. As a direct result, lenders are being far more cautious today about making home-equity loans.

How To Ride Out The Real Estate Market Crash Of 2008

Real estate has been regarded as one of the safest investments for quite some time. Despite the relative safety of real estate investments; however, there remains the possibility that the real estate market can fall like any other investment. Over the long term, real estate still remains relatively safe simply due to the fact that the population of the world continues to increase while land is a limited resource. When there is an occasional downturn in the real estate market, it is important to recognize certain strategies which can be used in order to keep a real estate investment from becoming a complete loss.
The first thought many people have when they realize the market has experienced a downtown is to attempt to sell the property as quickly as possible before the market grows worse. In reality, many investors have found that it is often better if they can manage to hold onto the property and ride out the downtown in the market. While the market might certainly dip lower before it rebounds, historically it always does come back.
By selling the property during a down market, you position yourself to take a certain loss. If you are able to keep the property afloat you stand a much better position of being able to make a profit on it when the real estate market turns back around. Of course, holding onto a property during a down market sounds fine in theory but it can often be much more difficult in practice. One possibility is to rent out the property in order to attain a positive cash flow while you wait for the market to turn around.
In addition, it is important to make sure that all of your account is correct. Many investors find they are not taking full advantage of all the tax benefits offered to them. Consulting a professional tax advisor in order to locate legitimate tax advantages you may have missed could certainly be well worth it financially. You may well find that the write-offs that are available to you could provide the assistance you need to hold onto the property until the market swings back around.
If you find that you are facing a foreclosure on the property, then the best option would obviously be to go ahead and sell it in order to attain as much profit as possible rather than take a complete loss. In this type of drastic situation, the key is to look for ways that you can make the property as valuable as possible. Selling real estate is really not much different than selling any other type of product. In this case, the product is a home or building. If you have had the property on the market for awhile, it is important to look at why it has proven difficult to sell the property. You might consider making some changes in order to make it more desirable.
Ultimately, holding out during a market crash or downtown involves remaining calm and avoiding acting on emotional impulses. Making hasty decisions based on fear will often cause you to take an action you would likely regret once the market turns back around. Before you take any action, make sure you have carefully considered all of the options available to you. By doing so, you may well be able to turn a dip in the market into a big return once the market starts the climb back to the top.

Renters Are Affected By Depressed Housing Market

In some areas renters are also experiencing problems as a result of the housing market crash. This has been quite a surprise for many people because they thought they were immune to the housing crash because they had not taken out a mortgage. At the time, this seemed to be a safe strategy. Many people assumed they were doing the safe thing by waiting to purchase a home until the housing market stabilized.
Many renters in some areas are quickly discovering they are not immune to housing problems after all. One of the most common problems is the fact that while renters do not have a mortgage on their property, their landlords do have a mortgage. If the landlord is not able to make their monthly mortgage payments due to rising interest rates and adjustable rate mortgages, the rental property could very well go into foreclosure.
When that happens, renters could find themselves facing eviction. In some cases, renters have discovered they had only 30 days to leave properties they had rented for quite some time. This has placed a tremendous amount of stress of many renters as they struggle to suddenly not only locate a new place to rent but also to come up with the cash necessary to make rental deposits.
In other cases renters have been affected by rapidly rising rental prices. Nationally, rental prices have begun to rise. Currently, the worse places to rent because of rising rental prices are San Francisco and New York. Seattle, San Jose and Cleveland are also showing signs of rising rental rates. San Bernardino and San Diego are not far behind, either.
One of the reasons that rents are rising in these locations is the fact that developers have not been able to construct as many new apartment buildings. In highly populous areas this has resulted in a large demand with little supply. When supply is not able to keep up with the demand, the natural result is rising prices. To make matters worse, rapidly increasing numbers of former homeowners are either selling their homes as a result of the housing crash or being forced out of their homes due to foreclosures. They must have someplace to go and renting is often the only viable option for these individuals and families, further increasing the demand for rentals.
Overall, the national vacancy rate for rentals has declined more than 10% in the last four years, clearly indicating that more people are renting properties today than they were right before the housing boom of 2005. Nationally, rents have also risen 14% over the same time period, as reported by the Census Bureau.
A number of factors have contributed to the rising rate of rental prices. One of the most important factors that have contributed to rising rental rates is the fact that more and more renters are waiting for the prices of homes to drop before they make the decision to purchase. Many renters are assuming that home prices have not yet hit the bottom. For these renters, it just simply does not make sense to buy right now. Quite simply, most renters do not want to find themselves in the same financial troubles that many homeowners have been subjected to in the last two years.
There is also the fact that even buyers who would be willing to buy right now are simply not able to do so because of difficulty in qualify for affordable mortgages. Following the collapse of the subprime market, many lenders have tightened restrictions and now requesting not only good credit but excellent credit. Requirements for larger down payments have also increased, making it increasingly difficult for first-time home buyers to realize their dreams of home ownership.
The health of the rental market is being eyed with some concern due to the fact that the rental market actually has a strong impact on other sectors. The construction of apartment buildings, for example, is frequently affected by the health of the rental market.

The Real Estate Market Crash Rasies The Divorce Rate

Pick up any newspaper today and you are likely to see at least one article or sidebar discussing the mortgage crisis. While there are still a few markets that have remained relatively untouched by the crash of the subprime market, most areas throughout the country have felt the impact in some way or another. As a result, there are few homeowners that have not felt the pinch of the crash. The ability to move on with life is being greatly impacted by the souring market for many consumers. Divorcing couples, in particular are finding that real estate market problems are preventing them from moving on with their lives.
It is not uncommon for many couples who are divorcing to sell the family home so they can take the proceeds of the home and then go their separate ways. As the number of homes sitting on the market in most areas continue to climb; however, most couples are finding it difficult if not impossible to sell their home. When the home does not sell, this has a direct correlation on the cash flow for the couple. A number of areas are impacted as a result including child support. Quite surprisingly, this problem is even impacting where divorced couples are able to live once the divorce becomes final.
As a result of these problems, there has been a significant rise in a trend known as post-marital cohabitation. While in the past it was practically unheard of for couples to continue to live together following their divorce, many people today are finding they have little choice when they are not able to sell the family home. Quite simply, they cannot afford to live anywhere else until the family home is sold.
As the average sell time for most homes increases, this means that many divorced couples may find they must continue to live together for several months; in some cases a year or more. Older couples who are living on a fixed income are finding this to be a particular problem as are couples with young children. In the case of the latter, the only options they can afford are simply too small for the size of the families.
In situations where couples simply can no longer abide living with another, they find themselves forced to live elsewhere even if it means moving in with family members.
Regardless of the situation, couples in such situations find they have limited options available to them. In situations where the couple is upside down because the value of their home fell after the housing boom ended, they must decide whether it is better to remain in the home until the market improves or try get out with a short sale. Other families are finding themselves facing foreclosure when they simply are no longer able to make mortgage payments.
The arguments over what to do with the family home have escalated to the point that in many cases judges are being put in the middle to sort matters out. This is particularly common in situations where one person wants to remain in the home until the market improves while the other wants to go ahead and sell the home even if it means doing so at a loss. In most situations judges are hesitant to issue orders to sell the home, assuming that the real estate market will eventually rebound.

When Hot Markets Begin To Cool Off

As the housing crunch affects numerous markets around the country, there have been some markets that have been able to blissfully continue with rising home values and rather quick sales. There is some evidence that the housing market crash is finally beginning to penetrate those markets; however. That is certainly the case in cities like Provo, Utah. Even homes that would seem as though they would be rapidly snatched up are sitting on the market with no takers. This has been quite a surprise for homeowners in such markets.
Most homeowners were impacted by the sliding market in 2006. Other markets; however, continued to experience price increases. In Provo, for example, average home prices rose a staggering 14% within a short period of time, compared to preceding home values.
Homeowners in previously hot markets are discovering that they must now resort to creative selling tactics and offering concessions to attempt to move their homes off the market. Just a year ago these homes would have been sold within a matter of weeks. Today these homes are sitting on the market for months at a time. In desperate bids to sell their homes, sellers are slashing prices by thousands of dollars and even offering discounts to buyers who can close quickly or who are willing to work without an agent; providing sellers the opportunity to save on commission fees.
The message is certainly clear. While these markets were once hot, no market is immune to the housing bust. Even markets that are still experiencing price increases are finding that prices are not rising as much as they were in the past. Clearly these markets are beginning to lose steam. In addition, the rapid pace of sales that once marked these areas is beginning to slow down as well. Tighter loan restrictions as a result of the subprime mortgage crisis are likely affecting many of these markets. It is simply difficult to sell homes when buyers are unable to obtain loans.
In most cases, the economy is the one factor that is not affecting these markets. This is certainly the case in Utah, where the economy has managed to remain strong. Despite this fact, the housing market is stalling.
Seattle is another previously red hot market that appears to be stalling as well. While Seattle is certainly still nowhere near the frantic freefall of many other markets, prices are simply not rising as rapidly as they once did. Like many other markets, homes are not selling as quickly as they did last year either. Foreclosure rates have also begun to increase in Seattle in the last few months.
Despite this fact, experts are quick to point out that Seattle should be able to miss the collapse that has affected many other markets throughout the country. The apartment market in Seattle, in particular, looks as though it will continue to remain strong in Seattle even while home prices begin to settle somewhere closer to reality. Overall, inventory amounts are higher than they were last year; however, sales volumes continue to outpace other states.
One of the reasons that Seattle and the bulk of Washington state has been able to avoid the real estate market collapse that has affected the rest of the country is the Growth Management Act the state enacted. This act prevented the development of construction projects in the state as the same rate that occurred in many other states. While other states were building at a rapid rate, Washington was being reigned in.
This turned out to be an advantage for Seattle and other areas in Washington. In markets that experienced a sudden rash of construction, once those projects were completed the market had already begun to crash. As a result, newly completed construction projects were suddenly left vacant with no buyers in sight. Construction loans suddenly began to join the throng of defaulted loans clogging the market.

Market Conditions Continue To Widely Vary From Area To Area

While there are few markets in the country that have managed to survive the current housing market without any battle scars there are some markets that have experienced more serious issues than others. Two of the worst markets in the United States at the moment are Cleveland and Detroit; however, they are definitely not alone when it comes to markets that are falling with no end in sight any time soon.
By and large, the riskiest markets at the moment are those that are experiencing the highest rates of foreclosures. Other factors that are contributing to problem areas include high rates of job loss and slow job growth. Markets in which the number of homes for sale is rapidly rising are also experiencing significant problems. Rapidly rising property values just a few short years ago is also proving to be a stumbling block for many markets.
During the housing boom these markets commonly experienced property value increases of two-fold and even three-fold in many cases. Once the boom ended; however, these markets began to fall and as of yet, they have not hit the bottom. These markets are also at greater risk for problems due to the large presence of adjustable rate mortgages.
During the housing boom, as prices were escalating quickly, buyers frequently took advantage of adjustable rate mortgages to obtain even lower interest rates to make their housing payments more affordable. This was quite common in areas where first-time home buyers were struggling to afford the rapidly rising prices of homes.
The subprime mortgage market is also more highly concentrated in these areas of the country. Lower interest rates at the time prompted many people to rush out and buy homes. Unfortunately, the credit profile of many of these buyers was less than sterling. Mortgage loans made in these markets during this time frequently involved subprime, adjustable rate mortgages. As the market began to fall, interest rates began to increase. Today, those same homeowners are finding they can no longer afford their mortgage payments. The result? Foreclosures have risen sharply in market areas where the boom once allowed housing values to double and even triple practically overnight.
Economic conditions in many areas have further fueled the crisis. As the number of layoffs increase, the number of foreclosures and homes for sale seem to increase as well.
At the moment, the ten worst housing markets in the country are Sacramento, New Orleans, Detroit, Riverside-San Bernardino, Las Vegas, Tampa, Miami, Cleveland, Phoenix and Jacksonville, Florida.
Sacramento, considered to be among the top ten of the worst housing markets, has experienced a drop in homes prices that is well above the national average. Like many other housing markets in similar situations, Sacramento fell victim to a fast paced market and subsequent plummeting pricing. Today the median home price for homes in Sacramento remains far above other markets in the country, despite the worsening situation. Given the large number of houses on the market; however, this is far from good news.
In spite of the situation in Sacramento; however, it is definitely not the worst case scenario at the moment. That honor goes to Detroit, where market prices have experienced a drop of more than 7%. The key factor in Detroit is the massive amounts of layoffs stemming from the auto industry. Matters are not much better in Cleveland where median prices have also dropped by several percent and inventory continues to rise.
While these markets are not showing any signs they will rebound in the near future; there are some markets; however, which are actually posting increases. Seattle is one such market. Median home prices in Seattle have actually risen almost 9% in the last year. Other cities on the rise include Raleigh and Charlotte in North Carolina as well as San Jose, California. San Francisco is not far behind, garnering an increase of more than 7% in the last year.