Wouldn't it be great if you could get all of the information you need to buy and sell your home on one free Web site?
Don't get me wrong -- there's a lot more useful real-estate-listing information floating around in cyberspace than there was even two years ago. But much of it is controlled by Realtors, who, as you have pointed out, seemingly don't want anything but "happy news" getting out -- and don't really want consumers to be empowered.
At first glance, it looks like there are dozens of multiple-listing services advertising on the Web. But most of these sites are thinly disguised referral tools for real-estate agents. For instance, go to MLS.com and click on your state, and you'll be transferred to HomeGain.com; try Multiplelisting.com and you'll be sent to HomeRoute.com. Both of these sites won't give you the information you seek outright without sending you to a real-estate agent. Same with other Web sites that purport to give home-price indexes or valuations, including TheHomeValueCenter.com, PriceAHomeOnline, and HomeInsight.com.
Getting an agent's name can be helpful if you want information like inventory levels and the number of days homes are on the market, and the comparative market analysis these sites advertise. You need direct access to a multiple-listing service to know these statistics, and until this information becomes public (and hell starts offering ice-skating lessons), or your local newspaper happens to include it in a business story, that's about the only way most people can get it.
Meanwhile, the best Web site available to get pricing information is Zilllow.com. Using public records, the site shows you recorded nearby sales superimposed on aerial or street maps, so you can see just how far away the homes are from the one you want to buy or sell. The problem with Zillow, however, is that public records are often wrong -- my house was shown to have two and a half baths, for instance, when it actually has three and a half. You can correct such information for the house you want to buy or sell using a "refine this estimate" tool, but you really can't be sure if the data on comparable properties is correct or not, too. (On the other hand, unless real-estate agents are very familiar with the homes they've included in their comparative market analysis, they'll probably have the same errors in their reports, too.)
So what to do? My suggestion is to use Internet Web sites like Realtor.com, Owners.com and ForSaleByOwner.com to find houses you'd like to buy. Take the virtual tours to see which ones really turn you on. Interview real-estate agents, and select one as your buyer's agent if you're not comfortable going it alone. Once you have narrowed your choices to three or four professionals, get the agents' comparable market analyses, read the local newspapers, and check area master plans and zoning.
And then…go to the neighborhood and walk around, preferably right around the time school is let out for the day. Talk with the neighbors standing on the corners waiting for their kids. Tell them you're thinking about buying in the neighborhood, and ask them about any recent home sales. Were the homes fixed up? Did the properties have any recent additions or improvements? Did the sales price seem reasonable or wacky? What are the good and bad aspects of living in the community? Do any of the neighbors act as if they belong on "Desperate Housewives?"
No statistic, no Web site can replace the personal touch your Realtor can provide. Drop me a line via email or comment here and I'd be happy to assist you in making your buying/selling experience a reality.
Tuesday, May 22, 2007
Wednesday, April 11, 2007
How to Pick the Next Big Real Estate Boom Area
Everyone's looking for the next real estate rush -- the place where people will be able to buy at $100,000 and sell for $200,000 in six months. So I get emails about whether one town is a better place to buy over another. Is it time to buy or sell waterfront property? Is land the next boom market for real estate?
The answer, simply, to all the above is "yes." Yes, if all the parameters that support a growing economy are in place and about to move forward. Yes, if the investment meets your goals on your budget at this time. Yes, if you have the proper financing in place to create a positive cash flow or find a property that is moving up in value at a clip higher than inflation.
Real estate, unlike stocks or bonds, is a good investment any time … you just have to know where to buy. Like the old adage goes: location, location, location. The location is key and depends on the economic picture of that location at the time. Wouldn't you have loved to have bought a house in the D.C. market, for instance, seven years ago? Any property would have done you proud. The whole market grew at 153 percent in that period of time. Thus, location and timing were key, all based on the advent of the latest economic boom, coupled with an affordable, but low supply of adequate housing.
So where can you find that formula now? Start looking at smaller markets where federal spending or private investing is moving upward. For the start-up investor, look around your state first. And then use the following points as a guide on whether it's a good time to buy:
Low housing prices. Where do the prices stand as compared to the potential for rental income? If a rental unit can be purchased so that the monthly rent covers the mortgage and tax payments, then this makes for a good start on the investment road. While many would-be investors look at the asset growth of an investment, they should really be looking at the net rental income instead. If you can make 8 to 12 percent annual return on the value of a home in rental income, that is a good investment indeed. To find housing prices, start with a web search such as, "jonesboro, arkansas housing prices," or whatever community you're researching.
Stable economy. What's happening on the state and local basis. Again, begin your search by finding the state/local economic development authority. You'll be looking for economic growth as compared to the U.S. economy and how it's headed as compared to the past few years. Look for economic forecasts, charts, employment/unemployment data, etc. Pour over these with a fine tooth comb to find out if the community where you want to invest is moving upward, headed down, etc.
New jobs/plants/federal spending planned. In the above searches for the current economic picture, look for what's happening as far as growth. Are new corporations moving in to the market? Are current companies expanding their facilities? Are there job cuts or job growth? If you see indications that growth is on the way, get your check book out and start looking for an investor mortgage. But make sure you check one more thing.
Rental vacancy rate. Okay, the housing prices are within your budget and the economy is stable; heck, it's even about to grow. Great. How's the rental inventory? Is there a lot of it? Is there too much of it? The vacancy rate let's you know how long your property will be on the market and how much rental income you'll be able to pull in each month. Will you have a positive or negative cash flow each month?
Once you have these points in your plan covered, you're now ready to start looking at property. Get together your real estate team (agent, lender, insurance agent, contractor, etc.) and hit the road to building wealth.
The answer, simply, to all the above is "yes." Yes, if all the parameters that support a growing economy are in place and about to move forward. Yes, if the investment meets your goals on your budget at this time. Yes, if you have the proper financing in place to create a positive cash flow or find a property that is moving up in value at a clip higher than inflation.
Real estate, unlike stocks or bonds, is a good investment any time … you just have to know where to buy. Like the old adage goes: location, location, location. The location is key and depends on the economic picture of that location at the time. Wouldn't you have loved to have bought a house in the D.C. market, for instance, seven years ago? Any property would have done you proud. The whole market grew at 153 percent in that period of time. Thus, location and timing were key, all based on the advent of the latest economic boom, coupled with an affordable, but low supply of adequate housing.
So where can you find that formula now? Start looking at smaller markets where federal spending or private investing is moving upward. For the start-up investor, look around your state first. And then use the following points as a guide on whether it's a good time to buy:
Low housing prices. Where do the prices stand as compared to the potential for rental income? If a rental unit can be purchased so that the monthly rent covers the mortgage and tax payments, then this makes for a good start on the investment road. While many would-be investors look at the asset growth of an investment, they should really be looking at the net rental income instead. If you can make 8 to 12 percent annual return on the value of a home in rental income, that is a good investment indeed. To find housing prices, start with a web search such as, "jonesboro, arkansas housing prices," or whatever community you're researching.
Stable economy. What's happening on the state and local basis. Again, begin your search by finding the state/local economic development authority. You'll be looking for economic growth as compared to the U.S. economy and how it's headed as compared to the past few years. Look for economic forecasts, charts, employment/unemployment data, etc. Pour over these with a fine tooth comb to find out if the community where you want to invest is moving upward, headed down, etc.
New jobs/plants/federal spending planned. In the above searches for the current economic picture, look for what's happening as far as growth. Are new corporations moving in to the market? Are current companies expanding their facilities? Are there job cuts or job growth? If you see indications that growth is on the way, get your check book out and start looking for an investor mortgage. But make sure you check one more thing.
Rental vacancy rate. Okay, the housing prices are within your budget and the economy is stable; heck, it's even about to grow. Great. How's the rental inventory? Is there a lot of it? Is there too much of it? The vacancy rate let's you know how long your property will be on the market and how much rental income you'll be able to pull in each month. Will you have a positive or negative cash flow each month?
Once you have these points in your plan covered, you're now ready to start looking at property. Get together your real estate team (agent, lender, insurance agent, contractor, etc.) and hit the road to building wealth.
Thursday, April 5, 2007
Tips for a Successful Summer Move
Planning to move this summer? You're not alone -- summer is the busiest time of year for professional movers, according to the American Moving and Storage Association. It's an arduous process, but these tips will make your transition much smoother.
If you're planning to use a moving company, call now. As busy as they are, they usually need plenty of notice -- often at least six weeks or much more if you're moving a long distance.
Be sure to build in some overlap between the closing/possession date of your new home and the last day of the lease on your rental (or closing date of your current home). Moving always takes much longer than you think. If you want to make any changes to your new home -- for instance, paint some walls, put in new carpeting or refinish wood floors -- plan enough time to do it BEFORE you move in so your furniture and belongings are not in the way.
Pare down your belongings. There's no sense moving things you don't need or want. Look through your house for rarely used items. Discard anything that's beyond repair, have a yard sale to get rid of the rest, and plan to load unsold merchandise into your car right away so you can take it to the charity of your choice.
Make notes about your new house -- room measurements, door measurements, location of electric/cable/phone outlets -- so you can determine exactly where your belongings will go. Measure appliances to make sure they fit the space available. When I moved last I hadn't taken my new kitchen's floor plan into consideration, and my fridge stuck out so far that I couldn't open the dishwasher. I've also had friends who bought wonderful overstuffed furniture, only to find they couldn't get it through the doorways of their new house.
If the previous homeowners are taking their curtains and blinds, you'll want to measure windows in places you want privacy immediately (like bedrooms and bathrooms) and buy curtains or blinds before you arrive.
Start arranging now for phone and utility hookups. Phone companies, especially, now need a few days (or even a week or more) to get you connected. Arrange now for the type of internet connection you want (if it's DSL or broadband rather than dial-up), and order extra phone jacks or cable outlets if you need them. Fill out a change of address form with the Post Office. If you have automatic debits on your bank account, alert your creditors if you're changing banks.
You can buy boxes and packing material from a moving company or other sources, but that can be expensive. Instead, ask grocery stores, electronics stores and office supply stores for their discarded boxes. They usually large enough, sturdy enough -- and free. Invest in a tape gun, and start saving up newspapers (ask your friends for theirs, too) so you'll have plenty of packing material if you don't want to buy bubble wrap.
Be sure to pack a box of essentials -- a telephone, a couple of changes of clothes, a few pots/pans/dishes/utensils, toiletries, medications -- to get you through the first few days. Also, if your mover is late and there are items you couldn't live without for a few days (like a computer, if you work from your home), consider taking that in your own car.
If using a mover, be sure to pack any small, nonbreakable, valuable items (such as jewelry) separately so you can take it with you in your own car. Large valuable items, such as artwork or electronics, should be clearly noted on the mover's inventory form in case of damage during transit. Do buy insurance to cover any damage that may occur. (Note: movers generally will not insure anything that you pack yourself unless the box itself is missing.)
Take the time to record the makes, models and serial numbers of your electronics and other items in a notebook or on a sheet of paper. Put this information, along with owners' manuals, extra keys, birth certificates, car titles, wills, insurance information, and other vital documents, in a special folder that you'll keep with you. In your new home, find a place for this folder (or put it in a safety deposit box), so you'll always know where these important papers are (and can easily grab it in case of a fire).
Clean as you pack. Unpacking is hard enough work without the added effort.
If you're renting right now, be sure to clean your apartment or rental house so you don't risk losing your security deposit.
Before you unpack, get a clean start by wiping out drawers and cupboards, sweeping out closets and solid-surface floors and vacuuming the carpets. Next, make up the beds and put towels in the bathrooms. Then you can take your time with the rest of the unpacking.
Enjoy your new home!
If you're planning to use a moving company, call now. As busy as they are, they usually need plenty of notice -- often at least six weeks or much more if you're moving a long distance.
Be sure to build in some overlap between the closing/possession date of your new home and the last day of the lease on your rental (or closing date of your current home). Moving always takes much longer than you think. If you want to make any changes to your new home -- for instance, paint some walls, put in new carpeting or refinish wood floors -- plan enough time to do it BEFORE you move in so your furniture and belongings are not in the way.
Pare down your belongings. There's no sense moving things you don't need or want. Look through your house for rarely used items. Discard anything that's beyond repair, have a yard sale to get rid of the rest, and plan to load unsold merchandise into your car right away so you can take it to the charity of your choice.
Make notes about your new house -- room measurements, door measurements, location of electric/cable/phone outlets -- so you can determine exactly where your belongings will go. Measure appliances to make sure they fit the space available. When I moved last I hadn't taken my new kitchen's floor plan into consideration, and my fridge stuck out so far that I couldn't open the dishwasher. I've also had friends who bought wonderful overstuffed furniture, only to find they couldn't get it through the doorways of their new house.
If the previous homeowners are taking their curtains and blinds, you'll want to measure windows in places you want privacy immediately (like bedrooms and bathrooms) and buy curtains or blinds before you arrive.
Start arranging now for phone and utility hookups. Phone companies, especially, now need a few days (or even a week or more) to get you connected. Arrange now for the type of internet connection you want (if it's DSL or broadband rather than dial-up), and order extra phone jacks or cable outlets if you need them. Fill out a change of address form with the Post Office. If you have automatic debits on your bank account, alert your creditors if you're changing banks.
You can buy boxes and packing material from a moving company or other sources, but that can be expensive. Instead, ask grocery stores, electronics stores and office supply stores for their discarded boxes. They usually large enough, sturdy enough -- and free. Invest in a tape gun, and start saving up newspapers (ask your friends for theirs, too) so you'll have plenty of packing material if you don't want to buy bubble wrap.
Be sure to pack a box of essentials -- a telephone, a couple of changes of clothes, a few pots/pans/dishes/utensils, toiletries, medications -- to get you through the first few days. Also, if your mover is late and there are items you couldn't live without for a few days (like a computer, if you work from your home), consider taking that in your own car.
If using a mover, be sure to pack any small, nonbreakable, valuable items (such as jewelry) separately so you can take it with you in your own car. Large valuable items, such as artwork or electronics, should be clearly noted on the mover's inventory form in case of damage during transit. Do buy insurance to cover any damage that may occur. (Note: movers generally will not insure anything that you pack yourself unless the box itself is missing.)
Take the time to record the makes, models and serial numbers of your electronics and other items in a notebook or on a sheet of paper. Put this information, along with owners' manuals, extra keys, birth certificates, car titles, wills, insurance information, and other vital documents, in a special folder that you'll keep with you. In your new home, find a place for this folder (or put it in a safety deposit box), so you'll always know where these important papers are (and can easily grab it in case of a fire).
Clean as you pack. Unpacking is hard enough work without the added effort.
If you're renting right now, be sure to clean your apartment or rental house so you don't risk losing your security deposit.
Before you unpack, get a clean start by wiping out drawers and cupboards, sweeping out closets and solid-surface floors and vacuuming the carpets. Next, make up the beds and put towels in the bathrooms. Then you can take your time with the rest of the unpacking.
Enjoy your new home!
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