Real Estate Cycles - Learning How To Handle Clients Who Want To Buy Or Sell In A Steep Market

Real estate always goes in cycles. If you ask anyone who has been involved in buying, selling, investing or any other aspect of real estate for ten years or more, they will tell you that it is all related to cycles. There is a scientific way to look at these cycles, but they are sometimes affected by politics, the economy, or natural disasters.

If you are a realtor or real estate agent, you can use these cycles to predict what the market will do next. For example, when prices go down and the number of transactions that close declines, watch and see what happens next. Inventory will begin to rise dramatically as people rush to sell homes that are no longer valued at what they paid for them ever six months earlier. These people are in panic mode and usually cannot be dealt with in a rational manner. They need time to figure out how they are going to deal with their own situation.

Other people are more calm and level-headed. They know that the real estate values will go again within a few years and are happy to just wait it out. If they do not need to sell their home they are content to stay put and observe what is going on around them.

The people you want to reach out to are those who are stuck somewhere in the middle. These people must sell their home due to illness, job transfer, or other circumstance, and will know that they must offer their property at a reasonable price. Buyers during this time need to be ready to make a good faith offer and not negotiate too much. If they can accept the fact that the property they buy will probably go down in value before it goes back up again, they will be satisfied to complete the transaction.

Marketing to these people can be difficult, but when you learn how to do it correctly you will have more listings and sales than you can handle. Find out more about getting new prospects and clients for your real estate business at http://www.NewMilenniumMarketingforRealEstateProfessionals.com

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Real Estate News - Mixed Economic News Bodes Well For Real Estate Market

Some "mixed" news was announced by the National Associations for Realtors today. But I think the news is FAR more positive than negative.

First, the "bad" news: In February, median home prices took a sharp dip of 8.2% nationally. Clearly, the carnage in the real estate market continued last month with a vengeance, as that drop is the sharpest in history.

But the silver lining is this: Buyers are returning to the market. Existing home sales increased 2.9% in February. That's the first time in six months that there's been any positive movement in existing home sales. This suggests to me that the prices are becoming too good for buyers to overlook. And that's a very positive thing for the U.S. (and world) economy.

You may recall from my previous articles that I have a gut-level optimism that things are going to get better in our economy pretty soon. I think this report is a good indication of that.

In any market scenario, an increase in buying that intersects with a drastic price decline can be explained in one (or both) of two ways: (1) The market decline has begun to slow and will soon be at a bottom or (2) The market has hit bottom and already beginning a rebound.

I suspect the second alternative. I don't expect we'll see a screaming real estate market like we did earlier this decade, but I do expect the market will begin a new uptrend of rational growth. Again, this is mostly my gut-feeling conjecture, but it's what I believe. And it's the assumption upon which my money is being invested.

Bryan Ellis is a real estate investment strategist in Atlanta, Georgia. Take a look at Bryan Ellis' Blog for a very unique look at the economics of the current real estate market.

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Real Estate Broker Reveals the Insiders' Secrets to Making Money in This Market

Real estate has challenges today, but those challenges do not have to stop you from making money in real estate. A ten year veteran real estate broker reveals insider secrets on how to make money in any real estate market.

To keep expenses low you must be aware of your expenses. Your expenses may be:

1. Property taxes
2. Insurance
3. Maintenance
4. Mortgage

Despite the fact that an investor is not eligible for exemptions on income property, there are other ways to decrease the property taxes.

The investor must first understand how property taxes are calculated by the treasurer. To calculate the property taxes, the tax rate is multiplied by the assessed value. The tax rate consists of:

1. Police
2. Fire
3. Schools
4. Library
5. Trash removal
6. Health
The assessed value in most states including Indiana is some variation of the market value for the property.

The investor can lower his or her property taxes his or her property taxes by examining what the property is assessed at. Filing an appeal is recommended when the property is assessed for more than the investor paid for it or when the property is assessed more than the current market will bear. If successful with the appeal, the investor can save a lot of money.

The investor can save money on insurance, as well. The investor can have a higher deductible. The deductible is deducted from the claim with landlord or homeowner's policy whereas with auto insurance the consumer must pay the deductible before the claim is paid.

The investor can also reduce his or her replacement cost to 80% of the value; therefore, the investor will reduce the premium for the insurance. This tactic is only advised if there will be enough available after the deduction to pay the property's mortgage and/or money available to start on replacement of the property.

Still yet another way the investor can save money on insurance is by changing insurance companies. Yes, shopping around is another way to save money on your premium. Use caution here make sure you are getting similar or better coverage than you had before when changing insurance companies for a lower premium.

By setting aside a certain amount from each rental payment, the investor can reduce the cost of major repairs. By setting aside a little of the rent, the investor can be prepare for major maintenance issues.

Another way an investor can save money on maintenance is by having a home warranty. To cover most major components in the investment property, it is recommended to have a home warranty.

Shopping around is always the best way to save money on a mortgage.

Making and saving money in real estate is done by researching and shopping around for the best rates and values.

Serena Brown has been serving her community with her real estate expertise for over 10 years. She owns and operates Taylor-Brown Real Estate.

She has authored several blogs and books on the subject of real estate.

She has degrees in Electronic Engineering Technology and Business Administration.'

You can read more of her writings at http://www.taylorbrownrealestatetalks.com

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Real Estate Ethics Needed For a Better Market Scenario

In the aftermath of the U.S. housing bust, one California woman recently sued her real estate agent for fraud, blaming him for getting her into a home with an inflated price. The woman claimed that other comparable homes in the area were selling for much less, but the agent concealed the information from her in order to collect a hefty commission on the higher sale price.

Unfortunately, this is not an exceptional tale from the now-past housing boom. With home prices appreciating at light speed in many areas of the country, greed took over for not only real estate agents, but homebuyers, speculators, mortgage lenders, home appraisers, and Wall Street investors. The traditional rules that guided the home-buying process were tossed out the window as people on all sides of the deal saw ways to get rich quick.

So whose fault is it? Who created the mortgage mess and is there still a place for ethics in the real estate market? The answer is varied and complicated, but two things are clear. One is that many different participants share the blame for the housing crash. The other is that the real estate scene can only properly function with the ethical cooperation of all involved.

Where does the guilt start? Let's begin with speculators. Several years ago, investors across the country started pouring money into homes in order to fix them up, rent them out, or sell them for greater profits. This led to a buying frenzy as people heard tales of the financial killing that was to be made from flipping houses. The result was an abundance of homebuyers. Homebuilders stepped up to the plate by overbuilding in many areas to capitalize on the housing frenzy.

As homes were being bought up after only minutes and hours of being on the market, the prices started to increase. Increased demand equals scarcity and higher prices, right? At that point average homebuyers started to have difficulty getting into the market as their incomes were not growing as quickly as were home prices. In order to get around this, many lied to their mortgage lenders, claiming higher salaries and greater assets.

Banks and mortgage lenders were willing to go along with the fraud because home prices were escalating so quickly that most buyers would be able to refinance or take out home equity loans with ease if they needed more cash to pay for the mortgage. Largely forgotten were the time-honored requirements of 20 percent down payments and good credit reports. Lenders created and pushed creative financing programs that included little or no down payments, risky adjustable interest rate plans, and plenty of no-income documentation loans.

Borrowers gobbled up these loans like crazy, barely pausing to read the fine print or find out how much they would be paying for their mortgage after the initial low interest period.

And of course real estate agents and housing appraisers got in on the act. They inflated appraisals to make more commission money and steered buyers into homes that were not worth as much as they were selling for.

Don't forget Wall Street. Investors across the country and the world invested billions into these risky loans because they seemed like a sure bet with the housing market on fire. With more investors, demand for these loans increased, causing many lenders to guide borrowers into exotic mortgages even when they were not a good fit.

The result is that millions of homeowners are facing high resetting interest rates and payments, hundreds and thousands of homes are in foreclosure and default, and the stock market has plummeted with the related losses.

Rebalancing has already begun in the real estate market with lenders reverting back to strict standards of good credit and large down payments. Borrowers now have to wait and save instead of diving into huge purchases and stock investors have started looking elsewhere for safer ventures. The process will likely take several years to complete and many have suffered and will suffer financial ruin in the mean time. Only ethical and wise behavior on the part of all involved can save the market from another devastating crash.

Recently experienced phases in the real estate market have created a need for strict standards of good credit and ethics to be followed. Real estate Asheville NC helps you understand the real estate scenario better. You can visit http://www.preferredrealestatecenter.com for more information.

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