Effects of Recession in the US Real Estate Market 2010
December 17, 2010
The credit crunch and the great depression of 2007 has played a negative role in the US real estate market. The housing market is still on its way to recovery from the recession.
Effect of recession in real estate market
From the very past the US real estate market has played a very important role in giving a shape to the usage of urban land. According to the principles adopted, it gave the owners the opportunity to earn maximum value for his land.
But the recession of 2007 has led to unemployment, and as a result, the demand for house has lessened and new constructions have also become very few in number. Though many first time home buyers are there in the market, but, the fewer number of sellers could not meet the buyer’s demand. As a result, the profit decreased, price of inventories increased, sales went down and the US real estate market has faced an incredible number of foreclosures. According to the National Association of Realtors (NAR), the number of homes that received foreclosure notices in 2009 is 3 million.
Recent situation in the real estate market
To make up for the loss, the government has introduced option ARM, by which the home buyers can choose how much they want to pay each month during the ’start period’ of the loan. They have the choice of paying from the following options:
•a 30-ear fully amortizing rate
•a 15-year self amortizing rate
•interest-only payment
•a base rate ( which does not cover the monthly interest costs)
This offer, along with unemployment rate of 10.5% in 2010, will make more and more homeowners unable to repay their mortgage.
The loan modification program of the government has can also cause home prices to fall by 5% to 10%, prior to the stabilization of the real estate market. It is predicted that the market will have a noticeable rebound by 2013.
The government’s offer to extend $8,000 for first time home buyer tax credit till the middle of 2010 and expansion of the program to include $6,500 credit for non-first time home buyers will attract more home shoppers into the market.
Already the US real estate market is showing signs of stabilization in demand and price. For the last 6 consecutive months, the home prices are on a rise. The market has already started to recover from the effects of recession, but, it will need some more time for full recovery. According to a recent survey, 77% of the richest people in the US feel that now is the right time to buy real estate properties, as the price of home is low. Though the market has suffered a great loss, but the initiative taken by the US government to reduce the loss is to be appreciated.
Belinda Dawson is a contributory writer associated with http://www.realestateisp.com/ and has written several articles for various financial websites. She holds her expertise in the Real Estate industry and has made significant contribution through her various articles on Real Estate and topics related to it.
Article Source: http://EzineArticles.com/?expert=Belinda_Dawson
Things to Avoid when Buying Homes for Sale in Grand Tower, Illinois
October 26, 2010
Grand Tower is a very idyllic little town situated in Jackson City, Illinois. This has a population of more than 600 people, per the Census obtained in 2000, and over 50% of them are married with a family income of about $40,000 per year.
Although Grand Tower is a somewhat small town, it offers a very beautiful scenery that you will surely love. Plus, this town is also the perfect place if you want a quiet and peaceful location where you can raise your family or move to after you retired from your work. There are some quaint homes for sale in Grand Tower that you can look over, and if the house fits your preferences, then it could be yours in a matter of a few days.
Purchasing a home in Grand Tower may be so easy; however, there are some things that you have to take into consideration and avoid if you want to make it worth your money.
The very first thing that you have to take a look at is the taxes of the property. You have to make sure that the taxes of the house for sale are up to date. If the current owner did not pay and/or will not pay for the taxes of the property, then it will not do you good to pursue the property. It will be a lot better for you to choose another one because the government may seize the property if the taxes remained unpaid.
Another thing that you have to take into consideration is the bills of the property. This includes water and electricity bills, phone bills, cable bills (if any), and most especially water and sewage bills, and any other bills related to the property. If there are any unpaid bills, then it is the obligation of the current owner to pay for them. Furthermore, you would not want to purchase a house with unpaid bills because this could potentially become a bit of a headache for you in the future.
Lastly, be sure that the price of the house for sale in Grand Tower is just right. There are many real estate agencies and companies that will charge too much for the property in the hopes of gaining more from the sale, and if you are from another state and are looking for a property in Grand Tower, then you can fall for a scam like this. For this reason, you have to choose a property that is below market value. This way, you can still earn some money if you decide to sell your property in the future.
A Look at Grand Tower, Illinois
October 5, 2010
Grand Tower can be found in Illinois’ Jackson County. Its name came from Tower Rock, which is a distinguishing landmark island that can be found in the Mississippi River. Grand Tower is a little town with a land area if only about 3 km2, and its population, per the 2000 census, only comes up to about 624, comprising of about 268 households as well as 169 families.
This sleepy little town has once been an ironworks town, but the industry slowly died down that what remains is a peaceful landmark town, perfect for couples who are just starting their own little family as well as those couples who are looking for a very peaceful yet beautiful town that they can call home during their retirement years.
So, what are the perks of choosing Grand Tower as your home?
For one, there are quaint camping grounds where you and your family can enjoy some quality time with each other away from the hustle and bustle of life. There are also beautiful picnic grounds in the area where you can have a relaxing and peaceful picnic with your loved ones. Aside from this, there are also a lot of intriguing and exciting places that you can enjoy in the area. There is the Devils Bake Oven which is said to be a haunted place. This is a great place to visit if you are after some history of Grand Tower.
Other places that will make Grand Tower an interesting home include Cape Antoine which offers you a splendid view of the landscape. Aside from this, there is also the Brazeau Creek where you will get to enjoy not only a refreshing scenery but an excellent activity as well like whitewater paddling. You could also go swimming in its cool waters or go fishing with your loved ones.
Really, Grand Tower is one of the best towns where you can raise a family, enjoy a great landscape, do exciting and interesting things, and feel peaceful and comfortable at the same time. This little town offers a lot of big things, so if you are looking for homes for sale or houses for sale in a very idyllic and peaceful community, then Grand Tower is the right place for you. There is a very good real estate market in the area, so be sure to check out what is in store for you.
Tips To Follow When Buying New Construction Real Estate
August 15, 2010
New home communities offer beautiful homes, open-floor plans, new appliances, and much more. Plus, new homes often offer easy purchasing through an on-site sales agent. The problem is that they can also tally up to significant losses. To buy your new construction home the smart way, follow these tips:
1) Use a Realtor Who Has New Home Sales Experience
New homebuilders will sometimes put pressure on you to use an on-site agent plus a pre-approved lender, insurer and title company. It’s a mistake not to get your own realtor. A realtor can protect your interests and can ensure that all costs and interest rates are within industry standards. Realtors with new home experience know the homebuilder community and this can ensure that homebuilders are very cooperative – after all, they don’t want to tarnish their reputation.
2) Don’t Sign ANYTHING Until You’ve Negotiated Every Detail
Always assume that nothing is agreed upon until it is in writing. Once it’s in writing, don’t assume that it can be changed or negotiated. Don’t fall for the “write up the contract so that no one else can get your house” ploy. Instead, make sure that the contract you sign has everything you negotiated in writing before you sign.
3) GET A HOME INSPECTION!!!
Many people assume that home inspections are for older homes that may have asbestos, structural problems, and other liabilities. This is not true! While many new constructions come with full warranties, those warranties usually only last 12 months and many problems surface only after that first year. An independent, professional inspector can help you avoid very costly repairs a few years down the line.
4) Don’t Use Their Lender
Many builders who build entire communities are now publicly traded corporations. These companies make a lot of money by financing – not just building and selling – homes. As a result, many builders will offer you enormous incentives or pressure you to use their lenders. The problem is that the builder’s lender will usually have higher interest rates and higher closing costs than a traditional lender. In most cases, you can have the stipulations removed so that you can choose your own lender and enjoy some incentives. After all, the builder will not make any money if you refuse to buy a home. If a builder insists that you use their lender, walk away and find another builder. It makes no sense to pay many thousands of dollars extra.
5) Research the Builder
Most builders are responsible and take care to protect their built neighborhoods. Still, make sure that you research your builder. Specifically, make sure that your builder has a reputation for good quality homes. Make sure that the company limits investor purchases – these can result in rental properties that depreciate neighborhood value. Also, determine whether the builder will build equal or greater value homes in the surrounding area. If they do not, the new homes will instantly devalue.
6) Choose An Appraiser
Lenders require you have an appraisal anyway, so you may as well research a good appraiser yourself. Ask for a copy of the appraiser’s findings as well – it can contain information that will give you better insight into what you are buying.
7) Research City Plans
New neighborhoods are often built on the outskirts of town, where land is available at a lower cost. Be sure to ask your realtor or do your own research into what the city has in mind for the area. Research roads, zoning, public transportation, parks, and schools – all will determine the future value of your new home.
New homes are very appealing to buyers. If they’re appealing to you, be sure to hire professionals and do your research so that your new home remains a positive experience for years to come!
Eric Bramlett
http://www.articlesbase.com/real-estate-articles/tips-to-follow-when-buying-new-construction-real-estate-138929.html
The Art Of Buying Free And Clear Real Estate Properties
July 31, 2010
What does free and clear in real estate mean? It means that there are no liens on file at the country recorder office and the owner owns the home or property, free and clear of any liabilities or liens. In short it means that the property is debt free.
According to realtors, 35% of the properties owned by Americans are without any encumbrances and liabilities. This is very important from the investors point of view as they can safely invest in such properties, which are free and clear.
The biggest factor to be kept in mind while interacting with a seller holding free and clear property is that most clear and free properties are owned by people in their late sixties or even older. Hence, the investors have to think about the sudden developments when dealing with older people.
Let us analyze what an investor should avoid, to prevent the seller from turning down the offer.
- Pursue the deal slowly: Mostly, elders look out for security and they fear making a mistake or getting ripped off. As an investor, you should make every move slowly while dealing with elderly people and give them time to know you first, without pushing an offer. Slowly does not mean weeks, it simply implies that when you meet the seller, spend more time with him and make him comfortable. Be friendly and even be willing to accept tea or coffee offered and the moment you find them settled, you can relax and start negotiating.
- Use age as an advantage factor: If you are younger than the seller, you can help him to identify you as a younger version of himself or remind him of his children or grandchildren. If you belong to the same age group, then you can build a rapport of friendship with them.
There are many investors who click best deals during this kind of transaction because they understand the seller mind and behave accordingly. The biggest desires of such sellers are:-
1. Security: No matter what you offer, the primary fact is that once the seller is comfortable in the deal and feels safe with you, he will definitely consider selling the property to you. If you are dealing in cash, then stress on how this deal could be the safest path for him, since there is cash involved, which would avoid risk. You can even highlight your history of on-payments to other sellers.
2. Positive attention: Always remember that people sell houses and properties to people they like and sellers like people who make them feel good about themselves. Be a good listener and listen to their stories and even encourage them to tell you about their past. This is the best way to build a rapport with an elderly person.
3. Hassle free income: Many older sellers look out for a stable income. If you are negotiating the payment, stress on an easy way in which they can convert their house equity into a monthly income for themselves, without much tax involvement.
Kris Koonar
http://www.articlesbase.com/non-fiction-articles/the-art-of-buying-free-and-clear-real-estate-properties-134014.html
Choosing Grand Tower Real Estate Agents
January 13, 2010
Finding a Grand Tower real estate agent that fits one’s needs will require that they have both business savvy and the right customer service philosophy. A bit of personal chemistry with the agent goes a long way, as well. There are a few tips that consumers can follow which will enable them to find the best possible realtor and to enjoy the benefits that come with working with a competent and capable real estate agent. Remember that this market is very competitive and that not all realtors will be up to the task of working in this area!
You can save yourself a considerable amount of time by partnering with a locally based Grand Tower real estate agent. Your agent’s job is to know what’s on the market now, so you don’t have to waste your precious time clicking on listing links. With around 1500 homes for sale at any given moment, it pay to go with someone who already knows the property market well rather than wasting days trying to give yourself an insiders edge.
Your Grand Tower real estate agent can also save you time by pre-screening properties on your behalf. You can give your agent a list of questions to ask about any property you are seriously interest in buying, and your agent can do the research you need to be sure about your final purchase. This saves you time on the selection process, and it can shave hours off of a visitation trip as you will not be looking at properties that can’t match your criteria based on your questions.
Grand Tower real estate agent services are very much tied into technology. The good realtors use technology to their client’s advantage, making certain that they are informed of the latest houses that come available and that the agent can work market trends to their client’s favor. This blend of the personal and the professional is what makes a relationship with any service provider work. Where real estate is concerned, there are few more important relationships than a good one between an agent and their client. With the right agent, a client can rest assured that they are getting the best deals.
3530 Magnolia Walkthrough
January 4, 2010
This updated, multi-level, historical property in the Saint Louis, Missouri neighborhood of Tower Grove East is ready for an occupant. It’s the perfect choice for anyone that appreciates a home with character and space. It could be 3 or 4 bedrooms, 1 bathroom downstairs. Lots of updates! Check out these great features: * Super spacious Kitchen w/tons of counter/cabinet space * Hardwood flooring * Balcony and deck * Tons of closet space * Separate living and dining * Chandelier lighting on dimmer switches and ceiling fans through out * 2 non-working fireplaces * Extra room perfect for office or study * Fenced yard * Parking in the rear * W/D hookups in basement * Walk to South Grand/Tower Grove Park * Pets allowed with $300 non-refundable deposit For more information check out our website at thresholdstl.com or contact us at 314-865-0405 or via email at mkastner@thresholdstl.com- Duration : 0:4:18
Grand Tower Apartments For Rent – Los Angeles, CA
December 23, 2009
Los Angeles apartments – Grand Tower apartments for rent in Los Angeles, CA. Get into the swing of things! Call 866.605.8079 or Visit http://www.apartments.com/search/oasis.dll?page=summary&property=102566.4&p=AptHL&partner=AptHL&cmp=ssv for apartment prices, pictures, videos, floorplans, availability. Grand Tower’s sensuous granite exterior distinguishes this landmark development as the address that reflects success. The 24-hour manned lobby provides impressive passage to spacious apartment homes with balconies and a rooftop pool, spa, and fitness center overlooking beautiful mountain and city views. Adjacent to the renowned California Plaza, entertainment can be found virtually at your doorstep. From the faithful climb of the renowned cars of Angels Flight to the fantastic urban spectacle of California Plaza, daily living in the Tower’s neighborhood remains unsurpassed. Extraordinary fountains, garden alcove retreats, gourmet dining, and first-run entertainment provide the perfect setting for a lifetime of enjoyment. Downtown holds all the essentials to fulfill the most demanding lifestyles. Daytime, you are located moments from the business district, minimizing or even eliminating a commute. Evenings become immersed in a flood of nightlife, movies, and culture suspended beneath the brilliant lights of the city. Day and night, Grand Tower places residents among all the excitement downtown offers.
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Real Estate: Buying Smart
December 4, 2009
This has definitely become the era of the consumer. Buyers are expecting and getting more for their dollar than ever before. This is a trend that has become extremely evident in the real estate industry. Now, more than ever you will need to educate yourself on exactly what it is that you are purchasing when you decide to break into the housing market. Not only will this help you in getting the best deal possible in a home but it will also enable you to avoid some of the pitfalls, and help you to buy with confidence.
Really, enough cannot be said about becoming an educated buyer. A home is likely the single largest purchase that you will ever make so it only makes good sense that you should spend more time investigating your options on a purchase of such magnitude. So, what can you do to improve your knowledge of the real estate market and increase your chances of getting a home that is perfect for you and makes sense financially? Well, start by examining the financial requirements of home ownership. This goes far beyond the mortgage, also take into account and fixes that can crop up as well as monthly bills and expenditures. Let’s face it, a home is a huge financial commitment and you need to be ready for all aspects of it.
Next, try to become familiar with problems that commonly occur with homes. This refers to structural problems, liens and easements, leaks, mold, and any other small problems that can cause problems with a home. One way of doing this is educating yourself on the process of the home inspection that all homes must pass during the sale process. This will, of course be conducted by a certified professional but that doesn’t stop you from learning as much about the process as possible. If you can identify potential problems right off the bat you may save yourself a lot of time and money.
Simon Conway
http://www.articlesbase.com/real-estate-articles/real-estate-buying-smart-132398.html
Buying Real Estate – How To Be Smart When Attending Open Houses
December 2, 2009
If you’re planning on buying a new home, attending open houses can be a good way to find a home you want or pick up useful ideas from what you find. Visiting open houses should be an enjoyable and fun experience, but you also have to keep focused on the reason why you are there. Primarily you’re trying to get home buying information and maybe even find that special house that you have been looking for.
With that in mind, you need to approach visiting open houses with an organized mindset. Very often, you’ll be visiting several open houses in the same day. And over the course of a few weeks, it can add up to quite a few homes that you have visited. As a result, it can be very easy to forget important points from one house to the next. So to ovoid this problem, it’s a good idea to take very good notes on each home that you visit and perhaps even take along a digital camera to get a few snapshots if you wish. Of course, make sure that it is agreeable with the householder before taking photos of the inside of their home.
Whenever you visit an open house, jot down a few things that you like and dislike about it as soon as you arrive. What is its overall appearance from the outside? Is it close to nearby schools if that is a necessity? How about shopping malls? And how far away would it be from your job? Sometimes these are questions that home buyers fail to take into account early in the buying process.
When inside the home, be sure to check everything and take plenty of notes as you go. A few things to watch for are the condition of the cabinets, the carpet, the walls, the ceilings, and so on. Take good notes on any items if you feel may need repair.
Consider the size of all the rooms in the home, and determine if they will meet the needs of you and your family. If necessary, even take a tape rule with you to be able to measure out individual rooms and see what kind of space is available. Pay particular attention to storage and closet space, as this is an area that is quite often overlooked by new home buyers, but will become very important if you should decide to buy.
It’s also a good practice to spend a few minutes outside the home and listen for noises that could be bothersome. Perhaps there is a train that passes nearby, or freeway noise that seems excessive. Just taking the time to listen can sometimes be very illuminating, and can help you ovoid moving into a home where noises could be constantly irritating.
Of course at most open houses, a real estate agent or broker is likely to be present. If so, feel free to ask plenty of questions, but keep in mind that the answers may not always be straightforward. If you try to make notes though as the questions are answered, there is a good chance that you’ll get more honest answers. Don’t be shy about asking questions either, as the purchase of a new home is a very large investment, and you want to be sure that you are well informed about all aspects of the home before you even consider it as a purchase.
Sometimes you may even find some mortgage lenders attending certain open houses as well. But just be sure to stick to your original schedule, and not fall for any special deals that they offer you if you buy right away. Remember, open houses are just for looking, not for buying.
Sometimes you can find the home you want within a short period of time, and other times you may have to visit several open houses before you find anything that seems to appeal to you. Just be sure to take your time and be patient as you go through the process of visiting local open houses.
Jim Johnson
http://www.articlesbase.com/non-fiction-articles/buying-real-estate-how-to-be-smart-when-attending-open-houses-26970.html