16
Jul
By First Rate Financial Group
Real Estate

How To Find Hot Real Estate Markets

How To Find Hot Real Estate MarketsA hot market in real estate is identified by a few things, which include higher prices, lower amounts of unsold inventory, and desirable neighborhoods. Neighborhoods can increase in value because of having an excellent location, high-paying jobs, quality schools, and a variety of attractive amenities.

Hot Markets Are After The Fact

Properties in a hot market may sell faster, for higher prices, and without needing to be in perfect condition or staged for sale. Real estate investors do not necessarily benefit from learning about a hot market unless they already own property in that market area.

It is nice to be an owner with a property for sale in a hot market. However, more success may come from identifying a market as potentially valuable before it becomes a hot market.

Hot Market Trends Before The Fact

Gentrification is a pattern that may start out slowly and then build until a market goes from cold to hot. With gentrification, renovation of rundown neighborhoods attracts new, wealthier residents. Many cities encourage the gentrification of deteriorating urban areas.

Streets with abandoned storefronts may convert into pedestrian-only shopping promenades. Old wharf warehouses may turn into a riverfront boardwalk. Artist types may move into a bad neighborhood because of the low rent and then turn it into an eclectic, hip area with art galleries, coffee shops, boutiques, and street murals.

One way to benefit from gentrification possibilities is to follow the long-term development plans of a community and be an early investor in those plans. Invest in property just on the outskirts of a planned gentrification zone.

Be careful to note any physical barricades, such as a wide street, which may stop gentrification from progressing further. A wide street may prevent gentrification from moving across it to the rundown area on the other side.

A similar pattern shows up when investing in real estate that is on the outskirts of a growing area or adjacent to a desirable neighborhood. Over time, if the growth continues, these outlying areas may become a nicely profitable investment for those who are patient.

Getting Out Of A Hot Market At The Right Time

It is important to know when to sell properties in a hot market and move on to find a different one. Continuing to re-invest in a hot market may ultimately disappoint when there is a market correction to the downside. Try to avoid this if possible.

Market indicators to watch include:

  • Year-over-year increases in listing prices compared to historical figures for the same area.
  • The percentage of listings showing a price reduction.
  • The average time a property is listed before being sold.
  • A comparison between the listing price and the sales price for sold properties.

Conclusion

Studying market growth and guessing the direction of growth helps identify a potentially strong market before it gets hot.

It is time to sell and move on, if the listing prices are not increasing each year or if price reductions are increasing. Other strong indicators that a market is cooling down are when the average listing time is increasing and the average difference between the listing price and sale price is widening.

If you’re in the market for a new home or interested in refinancing your current property, be sure to set up a consult with your trusted home mortgage professional.

12
Jul
By First Rate Financial Group
Real Estate

4 Times When Laminate Flooring Is Better Than Hardwood

4 Times When Laminate Flooring Is Better Than HardwoodHardwood flooring is considered a premium flooring material. It’s natural, long-lasting, durable and comes in a wide assortment of colors, wood, stains and plank widths. But hardwood flooring isn’t always the best choice. If you’re looking at homes to buy and eliminating the ones with laminate flooring, you could be overlooking some important considerations.

Following are four times when laminate flooring is a better option than hardwood.

1. You Live In A Very Humid Climate

Excess humidity isn’t kind to hardwood floors. Wood is hygroscopic, which means it absorbs moisture from the surroundings. Too much moisture in the air can make hardwood floor planks “cup,” which is when the lateral sides curl up. Wood swells when it gets wet, which can cause displacement of individual planks. Remember too, that you can live in a temperate climate, but if the house is lakeside or within 10 miles from the shoreline, that will increase the humidity levels in the home.

2. You Live In A Very Dry Climate

Hardwood floors don’t respond well to dry climates, either. In times of very low humidity, wood contracts. This can lead to cracking and the development of cracks in between planks. While the gaps can be temporary, if grime gets in there, they can become permanent. Cracking is permanent and needs to be repaired and then sealed. 

3. Your Family Is Hard On Floors

If you have youngsters, a big dog, or other factors, those can be hard on floors. In some cases like this, it can be damaging to hardwood floors, which are expensive to buy and maintain. Laminate flooring is much more accepting of wear and tear, and if you need to replace it, the cost isn’t exorbitant.

4. You Have Special Hobbies

If you have certain activities you engage in, such as painting, fishing, wood carving or other special hobbies, you might want to reconsider the value of laminate flooring. Laminate flooring is a lot easier to clean up when it comes to paint splatters, muddy boots and wood shavings. With laminate flooring, instead of worrying about protecting your hardwood floors, you can focus on enjoying your hobby.

If your real estate agent wants you to see a house with laminate flooring, give it a chance. You might just discover that there are times when laminate flooring is better than hardwood. 

If you are in the market for a new home or interested in refinancing your current property, be sure to contact your trusted home mortgage professional.

11
Jul
By First Rate Financial Group
Real Estate

Making Money Buying Homes And More From Estate Sales

Making Money Buying Homes And More From Estate SalesAn estate sale is the sale of the property owned by a person after a person dies. This sale may include real property, such as a home, and personal property, such as the home’s contents.

There are two ways to buy property through an estate sale. One way is to buy it from the person who inherited the property. The other way is to buy it from the estate through the executor of the estate. The executor is the person with the legal authority to dispose of the estate’s assets according to the last will and testament of the person who died.

The executor of the estate may be working with the state authorities in a probate court if the estate is in probate. Probate is an action by law that occurs automatically if the person died without leaving a will. Probate legal proceedings may also happen if the beneficiaries of an estate dispute a will that exists.

Opportunities In Estate Sales

Usually, the property purchased from an estate sale is available at a discount from its market value. Sometimes, this discount may be significant. When a person buys a home sold this way, the purchase is usually on an “as-is” basis. That means the buyer takes all the risk when acquiring the property. The buyer may have to make significant repairs to the property if it needs them.

For this reason, the price of these estate homes is often much less than their market value. Moreover, when buying the contents of the home, it is possible to find treasures in the contents. Unfortunately, it is also possible to find only trash and junk that costs more to remove and throw out than it is worth.

Disadvantages Of Property Acquisition Through Estate Sales

The main disadvantage is buying something without really knowing what it is worth or having a complete evaluation of its condition.

Other disadvantages are that if the sale goes through probate, it may take a very long time to close, perhaps up to a year or more. There is a need to check all the familial circumstances, the legal title, and the will carefully. Otherwise, there may be legal complications and claims of ownership even after the property is acquired.

This is why having competent legal counsel to review a deal before making the purchase is critical. Nobody wants to buy a property that brings them into a lawsuit.

Finding Estate Sales

If a disputed will, or the lack thereof, puts a property through a legal probate process, then this is part of the public records. These records are available to anyone who wants to look at the information. Properties may be put up for public auction as part of the probate process.

For properties sold through the executor for the purpose of dividing up the proceeds among the heirs, they can be found by reading the obituaries and making contact with the executor after a person died.

Summary

Buying property through an estate sale may be very profitable. Many specialists make their careers in real estate investing based on these opportunities. To be successful in this effort requires patience and careful attention to details with competent legal support.

Whether you are interested in buying a home through an estate sale or a more traditional sale, be sure to get your pre-approval for financing in place with your trusted home mortgage professional well before you place an offer.