Real Estate is cyclical....what goes up must come down, and what is down will come up. Be smart in your Real Estate dealings, look at the Big Picture. In these tough economic times people are getting scammed, losing their jobs, not being able to make the mortgage, or trying to figure out how to buy a home for the best deal possible.
Not only is Real Estate cyclical, but it is also local. Every area is different, and listening to news reports, or Marketing by Realtor Sue or Broker Bob in Texas won't help you in California. Nor will the advice of Aunt Sally or your moms best friend Hilda if they don't know the area, and are not available full time to help you with your Real Estate needs, especially if you are trying to buy or sell a Foreclosure or short sale.
This is a sign I was pleased to place in the window of one of my listings. And no matter what type of property it is, look for a good Real Estate Agent to help you.....and believe me not all of us work the same. Figure out what your needs are and be willing to work as a team with the Agent you choose. Teamwork is a win-win for everyone.
I have compiled a list of 10 Quick Facts about Real Estate in California. Below are 5 of them, and the other 5 can be found by clicking here
1) Commercial Properties weren't hit as hard as Residential Real Estate, but are forecast to take a hit this year with Commercial "office vacancy rates climbing as much as 300 to 400 basis points with many markets expected to experience severe negative net absorption." according to Andrew Florance, founder and CEO of CoStar Group Inc., Be prepared that many companies will be closing, but then again many will be opening. Don't just listen to the news....check out the area, and do your homework.
2) Some areas qualify for Government loans that are geared for low to very low income buyers offering 100% financing. The Government has certain rural areas that qualify for these loans, and if you and the area qualify it can be well worth your effort.
3) Appraisals are still important to get a loan. If you are trying to get a loan for a 200,000 house, but it only appraises at 180,000 you more than likely will have to come up with the difference. In CA many people were getting their homes reappraised during this downturn, and many didn't. So it's important to know the current appraised value if you need a loan.
4) The information in many of the MLS's is not totally accurate. Some of the MLS's don't update as fast as they should, and many of the properties on syndicated sites aren't updated. Also did you know that the properties on the largest Real Estate sites are not just their listings but everyone's? They have listings that belong to Joe Blow Realty as well as their own Franchise, they get them from a computer program. So don't assume that only the large Franchises are the best.
5) DOM ( days on Market), is one of the considerations buyers look at when deciding how much to offer. If someone was selling their home for over what the Market would absorb, then that home would end up being on the Market longer.....and buyers would feel the Seller would negotiate more. So it's important to have a local Real Estate Agent, not just Uncle Freddie or Aunt Sally who have a license, but someone that knows the area. And LISTEN to them when they tell you what your home can sell for.
Also beware of Scams where someone wants you to pay them upfront for negotiating with Lenders on your behalf. Check these people out...get a phone number, fax, address, License number. Don't let a bad situation turn worse.
By: Kathy McGraw- Broker of CELLing Realty - Real Estate Consulting in Riverside County, CA
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