Commonly, spring is thought of as the best home buying season. It turns out that this is not the case.
After reading data collected from a report done by ATTOM Data Solutions, there are only three days out of the year, all of which fall in December, where homes are sold under market value.
“Closing on a home purchase the day after Christmas or on New Year’s Eve can be one of the most financially beneficial holiday-season gifts you can get,” said Todd Teta, chief product officer of ATTOM Data Solutions.
The report was conducted among 23 million single family home and condo sales over the past six years. It shows buyers willing to close on a home the day after Christmas encounter discounts of .3% over expected price and a discount of .1% on both New Years and December 4.
Clearly, December is the best month to buy but you can still expect premiums of about 1.2% above market value. Thats great, in comparison to months like June, experiencing premiums as high as 7.1% above market price.
Further, the data is broken down by state. Particular months discounts were substantial. In Ohio homebuyers saw discounts as low as 7.4% under expected value in January; Tennessee, with prices down 6.2% in January; Michigan, with prices down 7.2% in February; New Jersey, with prices down 5.8% in December and Delaware, with prices down 6.3% in February.
Despite such drastic changes in premiums, buyers can expect homes to average between $197,500 – $198,000 throughout the holiday months.
“While lots of folks are shopping the day-after Christmas sales or getting ready to ring in the New Year, our data shows that buyers and investors are buying homes on those days at a discount,” Teta said. “That’s a far cry from buying during June, when they are likely paying about a 7% premium.”
Clearly, Black Friday is not the best time to look for a discount on the housing market.
The moment you’re just getting started with a new business venture, especially those that revolve around skilled financial investments such as real estate, you tend to make a lot of errors.
Most individuals who develop an interest in real estate investment end up looping from one mistake to another for many years, even after devouring tons of ebooks, videos, and training courses on the subject.
What is the missing link preventing most wannabe real estate investors from attaining financial freedom with real estate investments? Why do some folks achieve huge financial success whereas others see not even an iota of success?
Reasons Why Ebooks And Courses Only Serve To Confuse You
Some weariless investors have been able to get started on their own and make lots of money, but they are the exception. When you find yourself failing constantly, what you need is a real estate mentor.
E-books and training courses drag you in various directions, but a real estate mentor sets you on the right path to success. You gain extensive information from their expertise, and through their training, you are able to focus on one goal at a time, which is paramount to success.
They can also notice mistakes you’ve neglected and guide you on what to do instead. It’s like they’re an instructor, gripping your hand and telling you exactly what to do. With that type of support, your chances of success increase significantly.
The Only Real Estate Coaching Program I Recommend
You’ll discover numerous real estate coaching programs online, all with similar claims of helping you become a six-figure realtor in as little time as feasible.
Every one of these programs are obviously costly, so selecting the right one is of vital importance. Select the bad one and you’ll likely end up regretting wasting time and cash you simply cannot ever recover.
I’m a successful realtor, and I obtained my education from my coach, Phil Pustejovsky. Phil Pustejovsky runs the Freedom Mentor Apprentice Program – a program that explains to you the ropes on how to accomplish financial freedom in real estate. Here are some Freedom Mentor Apprentice Program reviews to help you guage the effectiveness of the program.
The Freedom Mentor coaching program is not really a program you can just buy any time you want. You have to put in an application first, and you’ll only be accepted to the program if your application is accepted.
The very fact that Phil Pustejovsky screens applicants goes to show how much he wants you to succeed. He’ll only accept coachable, action-oriented, and positive thinking applicants.
Phil was once an apprentice as well. He began from rock bottom and only started to attain success right after he met his mentor, Tom.
Ever since, he has been able to finalize 10s of millions of dollars worth of transactions while netting millions of dollars in proceeds during the process.
If you think Phil’s expertise would have a positive effect on your real estate journey, then you have to give special attention to the following paragraphs as I talk about his Freedom Mentor program in even more detail.
Why Freedom Mentor?
Through subscribing to the Freedom Mentor coaching program, you’ll gain access to premium tools and resources to assist you finalize your very first real estate deal.
These consist of access to a lender list, an instruction/lead-generating program to help you find deals quicker, and a customized investing plan.
That’s not all, though. You’ll also get 3 live mentoring calls monthly with Freedom Mentor’s coaches, 2 conference calls weekly, and the ability to ask questions and immediately obtain responses from the coaches through an instant message platform.
There are a couple of really good features of this mentoring program that help it stand apart from the competition. The first feature is the array of helpful mentors and coaches it incorporates.
You won’t get access to just Phil Pustejovsky’s mentoring once you become a registered member. Freedom Mentor is composed of a team of mentors and coaches personally taught and mentored by Phil.
These are the coaches you’ll be receiving help from. You’ll have access to a combined pool of knowledge and experience from some of the leading coaches in the industry.
The second attribute that makes this program so remarkably good at assisting ambitious realtors gain success is its 50/50 split.
This essentially implies Phil shares every one of his valuable real estate tricks with you, and you share 50% of the profits from your first few deals with him.
Once you’ve finalized your first couple of deals, you can then proceed to become an independent property investor, equipped with all the insights you’ve acquired from the mentorship program.
If you have a knack for teaching or coaching, you can even establish your own mentoring program and teach your apprentices the steps required for success exactly like Phil does.
A few of Phil’s past students are presently managing their own mentoring programs after turning into successful real estate investors.
Note: I know the program offering improvements every now and then as they continue to refine it and improve it. Nevertheless, this is current as of this writing.
Summary – Action Takers Wanted
The Freedom Mentor coaching program is tailored towards folks who are 100% committed to becoming successful real estate investors. If you aren’t ready to handle real estate investing just like a business, this specific program may not be for you.
The tools, resources, and mentoring provided in the program are more than enough to set you on the right path to financial freedom.
Considering that you’re splitting your first few returns with Phil, it’s in his best interest to help you succeed, and you have as much determination to do just that. It’s a jointly beneficial arrangement, therefore you practically can’t go wrong if you put in the energy and time to make this work.
Generally, the Freedom Mentor program is the best way to get started in real estate investing. You’re getting all the support you want from a professional in the field. There’s really nothing more you need to make your real estate dreams come true.
Real estate investing can be very risky, but it can also be highly lucrative. Everybody believes that location, location, location is what matters the most, but it is actually more important to know who you are dealing with. The reality is that there are some seriously shady characters in the world of real estate. Consider those late night advertisements on television, where realtors promise to make you a millionaire, for instance.
First of all, you want to get a return on your investment. Real estate is an illiquid asset that require you to take money out of your liquid assets. You need to strive to get a return rate that is the same as what it was on your liquid assets. This means that you should find a true cash flow property, and not a money pit.
You also have to make sure that you don’t take too many risks. Real estate is always risky, but some more so than others. You might want to stay away from fixer uppers, private real estate funds, tenant-in-common options and real estate development. Indeed, with these options, so much can go wrong that you are likely to never see a return on your investment. Instead, choose to have titles that are totally yours, on properties that are interesting. Of course, this takes a lot of research, analysis and due diligence. Try to find a property that you don’t have to manage intensively and that doesn’t take up too much of your time. Avoid short term rental properties like vacation homes or student accommodation, or properties in bad areas for instance. Try to find a property that someone with a good credit profile will want to rent for a long period of time. Naturally, this means you also have to be committed to being a respectful and good landlord. It is impossible to never have a problem with your property, but so long as you deal with issues quickly, this shouldn’t be anything to really worry about.
You can also decide to look into a real estate investment trust (REIT). Through a REIT, you can get started in investing with less capital behind you, although your returns will be smaller too. REITs are popular because you are essentially investing in real estate corporations. Through a REIT, you can invest in anything ranging from an industrial park to a shopping mall. You can keep track with the performance of a REIT through the NASDAQ and stock exchange. A REIT can be best compared to a mutual fund, although the REIT invests solely in real estate. Before you start, however, you need to think about a few things. Consider the key holdings’ economic conditions for starters. Also, you should look into how the REIT has performed historically. Also look into their future plans. Also, you need to look into who manages the REIT and how they have performed. Last but not least, consider what the real estate market looks like and how this could affect how your REIT will perform.
A lot of folks are investing in real estate because they want to bring in more cash later on. If you can buy a house for a certain price today, it’s going to be more pricey in the next couple of yours if the real estate market will be stable. However, you should also think about how hard it’s to sell a house. You’ll see tons of articles saying that selling a property is extremely easy or there are some ads informing you that they can sell your house in just a few months. You could bring the price down, but this is not an advisable thing to do.
Today in the real estate market, the supply totally surpasses the demand, but you can find different methods to sell your house efficiently. Here are some of the recommendations on how to do this.
Think about Curb Appeal
First impression lasts so your home should have a certain punch when a customer sees it for the first time. You should put yourself in the shoes of a customer and appraise the curb appeal of your house.
Go out into the streets and look at your home to see all of its weak points. You have to see if it is appealing enough for the potential buyers and you should also check all of the things that should be maintained.
The prospective buyers always see the exterior of house firsthand and most of them are always paying attention on how their new home would look like in the outside. Make the necessary preparations and fix anything that needs fixing.
Make Enhancements to Your home
You need to make the necessary enhancements outside and inside of your house to make certain that you can attract the customers. They always want a complete package when buying a house so you should make certain repairs. In case you’re the seller, you should make sure that everything is fixed. Nevertheless, you should never over improve the house since there are some upgrades that will not really make a huge difference to the value of your property. Improvements can definitely raise the value of your property and its odds to be sold, but you can’t make an improvement that will not pay in the long run. You must do your homework and only invest on things that can offer the best return.
Eliminate The Clutter
Some of you might claim that adding a bit more design to your house would make it more appealing, but the truth is that any personal items, collectibles and art works that you’ve got in your house will not help you sell your house.
The best thing that one could actually do is to remove all of them and only leave the essential furniture to help make the rooms a bit larger. The aim is to enable the buyers to visualize or picture themselves in your house.
Most buyers will start pointing at every part of your property while visualizing what they really want to put there if they will buy your house so if there are unnecessary and personal items in the space, it will probably be hard for them to visualize what they really want.
Place a Realistic Value
If you’re going to sell a home in Charlottesville, Virginia, you must be certain that you’ll put a competitive price for the house. If you put a lower price, it’ll be similar to leaving money on the table and if you put a high price, the buyers will ignore it. When you’re speaking about home buying, the buyers will be looking at the houses which are similar with yours and compare the prices. If your home is too costly, they won’t buy it.
You should keep in mind that the majority of the customers are relying on home financing so they will not really think about a house that is too costly. If the price is low, you could certainly sell the house faster, but your investments will not be returned.
Find a Real Estate Agent
You’re making a big mistake if you believe that you can sell your house on your own. If you’re not a professional real estate agent, it’ll be very difficult as you don’t have the experience and knowledge to do it. If you’ll do this by yourself, it’s possible that you will not be able to sell the house or you will not obtain a great deal. You might get lucky and get a good deal for the house, but you can’t depend on luck when you are selling a property because we’re talking about a huge amount of money. You could always employ an agent and let them do everything. You will absolutely need to pay them, but this is better than getting a bad deal as you do not know anything.
Before you opt to sell your house, you have to think about all of these simple suggestions so you will not make an error. It’s quite difficult to sell a property so you need to know anything and everything about the real estate market.
If You Want To Sell Your Home In a Timely Manner, Read On
Home-buying is an emotional process. Ideally, you should set aside all your emotions when evaluating a house. Practically, that is impossible. Instead, make a checklist of your must-haves, nice-to-haves and other essentials. See: Top Ten Tips for First-Time Homebuyers. Then print copies of this checklist. Every time you visit a house, take the checklist along with you; take photographs so you can cross each item off your list. If you fall in love with the house and your checklist shows that the house has none of your must-haves, it will at least make you pause and think.
When budgeting for the house, don’t stop with principal, interest, taxes and insurance; add in utilities, cost of commuting and upgrades. Call the utility companies that service the house you are considering and ask for an estimate of what the cost will be, whether there are any budget plans available, etc. Will the gas budget for your car go up if you are moving further away from the places you frequently visit? Budget all of these expenses and see if you can still afford the house. Read: First-Time Homebuyer’s Checklist.
If your long term plan is to rent out the house when you move away; keep in mind, once you identify the neighborhood you like, ask for a copy of the HOA contract after going to an open house in the area. It may be that none of the houses in your area can be rented out. If you are buying a house that is part of an HOA, it is absolutely essential to read the HOA contract before you do anything else. For further reading, see: What Do I Need to Know as a First-Time Housebuyer?
There are many different options based on profession (grants for teachers, farmers, etc.) as well as the area of the potential house (whether it’s in a rural area, high-poverty area, etc.) Research all the grants and funding options you are eligible for before you automatically decide you won’t qualify for anything.
A house is probably the largest purchase you will ever make in your life, so make sure you understand the terms of your contract. If you don’t understand any of the terms, ask your mortgage broker and your real estate agent. If they won’t explain the terms clearly to you, fire them; there are enough people who will be more than happy to help you and work for your business.
If you are buying a house in a neighborhood full of renters, it only takes a few bad renters or bad landlords to drive the neighborhood down fast. If the neighborhood is full of single people, will you be happy there if you have very young kids?
The psychology does work; staged houses look far better than houses that are still being occupied. When you are considering a house, mentally try to remove the staging. Pay more attention to the layout of the house and the structure itself. Ugly wallpaper and paint can be easily fixed later.
While it may be tempting to describe your family room as “a dream come true with more space than you could possibly imagine” in order to entice prospective buyers, you’ve got to remember that once a buyer arrives and discovers the room is “fine” but nothing special, they’ll wonder what else you might be exaggerating about.
Don’t describe the kitchen as “completely renovated with stainless steel appliances,” but yet you really just added a stainless steel refrigerator and left the other appliances outdated, buyers will notice this was exaggerated and be turned off. Honesty is always the way to go. See: Unenforceable Contracts: What to Watch Out For.
Other sellers tend to list their homes at the wrong time of year. Many studies have been done to determine when the right, and most effective time to sell your home is. However, there are times where you really do need to move on a whim and don’t have an option to wait for the better times, or season. If you do have the luxury of waiting to sell your home until the right time, there are important things to keep in mind. Read on: If You Want to Sell Your House, Start Doing These Things Now.
The most obvious (yet highly debatable) plan is to wait until after the holidays to sell your home. The reason this point is argued is that most buyers are not looking for a home during the holidays. Instead, they are spending time with their family and friends. Some sellers won’t agree to a fair contract. They want everything their way.
When sitting down with an agent make sure you are comfortable with the leng
th of the listing contract, as it is hard and sometimes impossible to change after the contact is signed. Therefore, both parties (the realtor and the seller) should come to a solid agreement on this matter. The number of days will usually be determined by the area of your home, and how fast other homes in the area are selling.
One of the worst mistakes to make is not having a sales strategy. Any home up for sale should be listed pin the MLS, as well as open houses, classifieds, Trulia, and many other outlets. There is no excuse in this day and age, to not be able to properly advertise your home. Make sure the realtor you have is well experienced in utilizing the Internet.
All sellers get excited when their realtor calls and tells them they have an offer on the home. However, if you don’t negotiate the deal properly, many things could go wrong. Some owners absolutely refuse to be flexible in a buyer’s demands or requests, as the seller often feels that they are selling their home for lower than it is worth. Sellers have emotional attachments to their home, and their judgment and assessment of the value of their home is skewed. Instead of going on hard numbers and facts, they let their emotions get in the way.
How To Get The Lowest Price For The House Possible
Buying a home is very complex, as negotiations are required. The can be tricky, because you could lose out on details you could have gained, or maybe even skipped over a loss. Here are the biggest mistakes you can make when negotiating the purchase of a house. Read on: Four Critical Real Estate Negotiating Pressure Points.
You must try to understand the seller, as each seller is different. Every person is different and unique; all of us have our own set of fears. Sellers are human, after all. They are people who happen to be selling their home. You must question what the current pressures on the seller is regarding this house. Has it been on the market for a year? Have the other homes in the neighborhood also been slow to sell?
Find out how long a listing has been in the MLS, the current temperature of the surrounding market, and other things in that nature. See: Three Negotiating Mistakes That Sellers Make. This is where your realtor comes in; if they are a good realtor, they should know many of these facts. However, with the availability of this type of information readily available online, there is no reason that you shouldn’t be looking up all of the information as well and then collaborating with your realtor on the research. You can never have enough information.
Never show all of your cards! It is probably the worst mistake you can make in any negotiation whether it is for a dress at a retail store, purchasing a card, and playing poker. A good rule of thumb not just in buying a home, but in every aspect of your daily life, divulge as little about yourself as possible. For example, if you want to pay all-cash for the house, the sellers don’t need to know this. If they know, they will keep firm on the asking price, as they know you can more than well afford it. See: Rules to Boost Your Negotiating Skills.
Don’t put all your eggs in one basket. With any glittery thing we see in life, we tend to grab onto it thinking “But this is the only one I’ll ever want.” In reality, if you have multiple options to begin with, you don’t immediately become attached to this “one perfect home.”
You will be able to take emotions out of the equation, which is essential when purchasing a house. The seller automatically wins when you’ve decided to will take their home no matter what the cost. You should be willing to walk away, and this will be easier for you if you actually are. The way to do this is by having a couple other options that you love, and would be upset, but o.k. if you missed out on this one.
Do not just communicate through outlets such as phone, fax, and e-mail. The most effective way to influence or persuade a seller is face-to-face. Again, this is true for anything in life. This is because when negotiating in person, you get to see the sellers body language, and pick up on cues such as their voice tone.