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Answer Upon - Factors Contributing to the Down Real Estate Market
Fixing up houses to ready them for sale includes a design plan for needed changes. Save money on transformation costs by choosing design details right the first time. Make more money from your home sale by choosing design details that catch the attention of buyers in your price range.Design Psychology helps you net more money, faster, in today's competitive real estate market. Your buyers won't even realize that you're using Design Psychology, but they'll want to buy your home, even if it costs more than similar houses.Whether your target market is first-timers, move-uppers, empty nesters, or mover-downers, keep their needs and desires in mind when developing your sales and transformation plans, always keeping your bottom line in mind.Budget ConcernsWeigh the cost of an upgrade against its ultimate benefit, and only spend money on those changes that improve your profit margin. Of all upgrades for selling houses, fresh paint is the best investment, dollar for dollar. New kitchen appliances, upgraded bathroom features, and updated lighting fixtures also provide a good return on your money, as a general rule.Also consider the cost benefits of doing the work yourself vs. hiring professionals. The time saved and superior quality of workmanship often makes hiring pros a better option than doing repairs yourself.Color Psychology for the ExteriorChoosing the right colors for your home's exterior makes a huge difference in your paycheck at closing. Look at the other homes near yours and choose complementary colors. It's worthwhile to use three, or even four, colors, to add visual interest or to emphasize interesting design details. Limiting your exteri
People who used to live paycheck to paycheck are now one to two paychecks behind. If you want proof, go to an Amscot or any paycheck advance place and see the working people lined up. Higher Interest Rates Limit the Number of Buyers.
One of the contributing factors to our recent hot market was low interest rates. People who could never before afford a house were becoming homeowners, creating a whole new pool of buyers. Lower interest rates also meant that people could buy more house for the
Want to learn a vital lesson in donor retention? Here’s a tactic from Sunday School to avoid.I know a Christian church in the United States that uses all sorts of tricks to attract neighbourhood children to its evangelistic Sunday School programs. One trick is to attach a ten-dollar bill to the underside of a chair in the classroom. The child who happens to pick that chair gets to keep the $10 Cool. Naturally, this trick leads to plenty of free word-of-mouth advertising in the neighbourhood on Monday. Another trick is to give a toy to every child who brings a friend to Sunday School. Naturally, this means the church receives a steady influx of new students each Sunday.But this church has a problem. And so do you, if you use similar tricks to attract new donors or members. Simply put, this church attracts children who care more about mammon than they care about God. Which is to be expected. A carnal incentive attracts a carnal student.In direct mail donor acquisition, the equivalent of the ten-dollar note taped to the underside of the chair is the lottery or sweepstakes. The equivalent of the free toy is the free sheet of address labels.The problem with lotteries and premiums, of course, is that they attract many donors. Of the wrong kind. Premiums boost response rates, even triple them on occasion, but usually at the expense of reducing the size of the average gift. And usually by attracting donors who will not renew their support and mail another gift unless they receive another lottery ticket or premium in return.In the evangelical church circle that I run in, we say, “What you win them with is what you win them
The buying opportunities in this market are huge and self-evident. We are in a buyers’ market. The problem for most investors is that they are afraid of getting stuck in a property, either not being able to sell or ending up upside down because of a drop in price or both.
There are several components that contribute to a down market and knowing what those components are can help you to find a way around them. Some common components of down markets are:
Too many houses on the market
Higher interest rates which limits the number of buyers
House prices over-inflated due to past hot market
Economic turmoil in an area
Media projecting continued down market/bubble burst
Let’s tackle them one by one. Too many houses on the market.
Too many houses on the market can be caused by either having too many people jumping on the bandwagon at the end of a hot market or it could be caused by an actual slowdown in sales. In today’s market in Tampa, FL, for example, houses are selling at about the same rate that they were selling last year at this time. However, because Tampa had such a hot market, people were motivated by the outrageous prices that they saw other people getting for their houses and everyone decided that this was the time to sell. Unfortunately, most “civilians” missed the hot market and got in too late. They put top of the market prices on their homes and have watched the houses sit on the market for three, six, even up to nine months. Unfortunately, over the past nine months, prices have corrected in the Tampa Bay market (and many other areas of the country) and have declined by an average of 10%. Sellers have been slow to lower their prices to meet with this new reality. Buyers are waiting for the other shoe to drop.
A symptom of a glut of houses on the market is an increased length of time that a house takes to sell. Why? There are more houses to buy than there are buyers to buy them. Simple supply and demand. When the supply is large, demand drops. Prices drop after demand drops. When prices drop, demand usually goes up. We are not yet at the slack tide point where prices bottom out and before demand goes up. Right now, prices are still dropping. It will be many more months before demand goes up again.
The interesting thing about the length of time on market is how quickly investors have forgotten what a normal market looks like. Three years ago, 90 days on the market was the average for home sales in the Tampa area. We are back to that point again today. Check with your local Board of Realtors to see what the average length of time on market is today compared to three or four years ago. The down market you are experiencing may be more of a return to a normal market when you look at the numbers.
Unfortunately, what we are about to see is a second wave of houses coming on the market due to foreclosure. There are many factors that are causing the foreclosure rate to double, even quadruple in some areas: rising taxes and insurance, adjustable rates rising, gas prices, even credit card minimum payments. We will talk about rising taxes and insurance rates in more detail, but don’t discount the drastic effect of rising gasoline prices and increased credit card minimum payments have had on homeowners.
The U.S. is a paycheck to paycheck society. A year ago, most families were one or two paychecks away from financial disaster. Many made up the shortfall by using credit cards and made the minimum monthly payment. When credit card companies increased the minimum payment, in some cases doubling the minimum due, people were not able to make the payment. Missing a payment or being late on a payment resulted in the credit card issuers upping the interest rate on the cards. If someone is having difficulty making a minimum payment on a card with a 10% interest rate, they certainly are not going to be able to make the minimum payment on a card that has risen to 19% or higher.
The effect of gasoline price increases is transparent at the pump. A tank that used to cost $20 to fill up now costs $40 or more. If you are filling your tank just once a week, that extra $80 a month is causing a pinch. Since most U.S. families are two-car households, there is now an extra $160 going out the door per month. That is close to $2,000 a year. Less apparent is the increase in the cost of consumer goods across the boards. Think about how goods are shipped in the U.S. The cost of trucking goods, from groceries to building supplies to clothing, has gone up due to rising gasoline prices. And that cost is passed on to the consumer.
People who used to live paycheck to paycheck are now one to two paychecks behind. If you want proof, go to an Amscot or any paycheck advance place and see the working people lined up. Higher Interest Rates Limit the Number of Buyers.
One of the contributing factors to our recent hot market was low interest rates. People who could never before afford a house were becoming homeowners, creating a whole new pool of buyers. Lower interest rates also meant that people could buy more house for thei
Cheap insurance? Auto insurance, life insurance, health insurance, liability insurance - whatever type of insurance you need, you can buy it for less. Try the following:1. Raise you deductible. Why have a $100 deductible if a $1000 deductible won't break you? It may hurt to pay the first thousand someday, but what if meanwhile you saved several thousand? High deductibles mean lower rates. Of course, get quotes with various deductibles, to be sure you're saving enough for the higher risk.2. Lower your coverage. Insurance agents secretly admit that people usually get sued according to policy limits. You'll be sued for more if your limit is a million than if it's a hundred thousand. A judgement beyond the policy limits is a scary thought, but this can happen no matter what your limits are. If you don't have many assets or much money in the bank, consider lowering your coverage to save money. Get quotes first, of course, to see how much you'll save.3. Lower the insurance company's risk. Using seatbelts, not smoking, and having alarm systems can mean cheap insurance. Ask your agent about any discounts that are available.4. Use an independent agent. Why limit yourself to one insurance company? Independents can show you the cheapest policy regardless of which company it's from. Just check a rating service to see if the issuing company is financially solid, especially when buying life insurance.5. Drop your insurance. The insurance companies will hate me for this one, but consider eliminating some coverages. You need liability coverage on your car, but collision coverage on a $2000 car doesn't make sense. Invest the money elsewhere, and take the $2000 loss once or twice in your
Media projecting continued down market/bubble burst
Let’s tackle them one by one. Too many houses on the market.
Too many houses on the market can be caused by either having too many people jumping on the bandwagon at the end of a hot market or it could be caused by an actual slowdown in sales. In today’s market in Tampa, FL, for example, houses are selling at about the same rate that they were selling last year at this time. However, because Tampa had such a hot market, people were motivated by the outrageous prices that they saw other people getting for their houses and everyone decided that this was the time to sell. Unfortunately, most “civilians” missed the hot market and got in too late. They put top of the market prices on their homes and have watched the houses sit on the market for three, six, even up to nine months. Unfortunately, over the past nine months, prices have corrected in the Tampa Bay market (and many other areas of the country) and have declined by an average of 10%. Sellers have been slow to lower their prices to meet with this new reality. Buyers are waiting for the other shoe to drop.
A symptom of a glut of houses on the market is an increased length of time that a house takes to sell. Why? There are more houses to buy than there are buyers to buy them. Simple supply and demand. When the supply is large, demand drops. Prices drop after demand drops. When prices drop, demand usually goes up. We are not yet at the slack tide point where prices bottom out and before demand goes up. Right now, prices are still dropping. It will be many more months before demand goes up again.
The interesting thing about the length of time on market is how quickly investors have forgotten what a normal market looks like. Three years ago, 90 days on the market was the average for home sales in the Tampa area. We are back to that point again today. Check with your local Board of Realtors to see what the average length of time on market is today compared to three or four years ago. The down market you are experiencing may be more of a return to a normal market when you look at the numbers.
Unfortunately, what we are about to see is a second wave of houses coming on the market due to foreclosure. There are many factors that are causing the foreclosure rate to double, even quadruple in some areas: rising taxes and insurance, adjustable rates rising, gas prices, even credit card minimum payments. We will talk about rising taxes and insurance rates in more detail, but don’t discount the drastic effect of rising gasoline prices and increased credit card minimum payments have had on homeowners.
The U.S. is a paycheck to paycheck society. A year ago, most families were one or two paychecks away from financial disaster. Many made up the shortfall by using credit cards and made the minimum monthly payment. When credit card companies increased the minimum payment, in some cases doubling the minimum due, people were not able to make the payment. Missing a payment or being late on a payment resulted in the credit card issuers upping the interest rate on the cards. If someone is having difficulty making a minimum payment on a card with a 10% interest rate, they certainly are not going to be able to make the minimum payment on a card that has risen to 19% or higher.
The effect of gasoline price increases is transparent at the pump. A tank that used to cost $20 to fill up now costs $40 or more. If you are filling your tank just once a week, that extra $80 a month is causing a pinch. Since most U.S. families are two-car households, there is now an extra $160 going out the door per month. That is close to $2,000 a year. Less apparent is the increase in the cost of consumer goods across the boards. Think about how goods are shipped in the U.S. The cost of trucking goods, from groceries to building supplies to clothing, has gone up due to rising gasoline prices. And that cost is passed on to the consumer.
People who used to live paycheck to paycheck are now one to two paychecks behind. If you want proof, go to an Amscot or any paycheck advance place and see the working people lined up. Higher Interest Rates Limit the Number of Buyers.
One of the contributing factors to our recent hot market was low interest rates. People who could never before afford a house were becoming homeowners, creating a whole new pool of buyers. Lower interest rates also meant that people could buy more house for the
Ever since the Internet became available to any household with a dial-up connection, there has been the dream of easy wealth. The long-standing stereotype is the easy-going character who sits at home in his bathrobe and slippers, doing a few minutes work at his kitchen table, and spending the rest of the day out windsurfing while a river of cash pours steadily into his bank account - making him a millionaire by the time he's twenty.How much of this is truth? How much is myth? While it's definitely not all true, some of it is quite achievable. In fact, you can get quite rich on the Internet, but it's not as easy as the hucksters and biz op sellers will try to convince you it is.You Can Become A Millionaire On The InternetThere are many Internet marketers who have made millions of dollars selling everything from vitamins to porn to information. The Internet is a vast market, with large amounts of money changing hands over it every day.If you can divert a large stream of that money, you can indeed become a millionaire. And yes, you can be a millionaire by the time you're twenty, but realize that this is the exception - not the rule.It Doesn't Happen With No Work And No MoneyNothing good comes for free. Although it's true that you can start a business for a minimal amount of money, you will have to put something into your business - either money or sweat equity. You will actually have to do some work.Of course, the nice thing is - once you've done the work of setting up your business and producing a product, in many cases you really can sit back and watch the money pour in. You still have to spend some time working on your business, but the work y
A symptom of a glut of houses on the market is an increased length of time that a house takes to sell. Why? There are more houses to buy than there are buyers to buy them. Simple supply and demand. When the supply is large, demand drops. Prices drop after demand drops. When prices drop, demand usually goes up. We are not yet at the slack tide point where prices bottom out and before demand goes up. Right now, prices are still dropping. It will be many more months before demand goes up again.
The interesting thing about the length of time on market is how quickly investors have forgotten what a normal market looks like. Three years ago, 90 days on the market was the average for home sales in the Tampa area. We are back to that point again today. Check with your local Board of Realtors to see what the average length of time on market is today compared to three or four years ago. The down market you are experiencing may be more of a return to a normal market when you look at the numbers.
Unfortunately, what we are about to see is a second wave of houses coming on the market due to foreclosure. There are many factors that are causing the foreclosure rate to double, even quadruple in some areas: rising taxes and insurance, adjustable rates rising, gas prices, even credit card minimum payments. We will talk about rising taxes and insurance rates in more detail, but don’t discount the drastic effect of rising gasoline prices and increased credit card minimum payments have had on homeowners.
The U.S. is a paycheck to paycheck society. A year ago, most families were one or two paychecks away from financial disaster. Many made up the shortfall by using credit cards and made the minimum monthly payment. When credit card companies increased the minimum payment, in some cases doubling the minimum due, people were not able to make the payment. Missing a payment or being late on a payment resulted in the credit card issuers upping the interest rate on the cards. If someone is having difficulty making a minimum payment on a card with a 10% interest rate, they certainly are not going to be able to make the minimum payment on a card that has risen to 19% or higher.
The effect of gasoline price increases is transparent at the pump. A tank that used to cost $20 to fill up now costs $40 or more. If you are filling your tank just once a week, that extra $80 a month is causing a pinch. Since most U.S. families are two-car households, there is now an extra $160 going out the door per month. That is close to $2,000 a year. Less apparent is the increase in the cost of consumer goods across the boards. Think about how goods are shipped in the U.S. The cost of trucking goods, from groceries to building supplies to clothing, has gone up due to rising gasoline prices. And that cost is passed on to the consumer.
People who used to live paycheck to paycheck are now one to two paychecks behind. If you want proof, go to an Amscot or any paycheck advance place and see the working people lined up. Higher Interest Rates Limit the Number of Buyers.
One of the contributing factors to our recent hot market was low interest rates. People who could never before afford a house were becoming homeowners, creating a whole new pool of buyers. Lower interest rates also meant that people could buy more house for the
Very few online article submission websites have an option of future entering of the directories, but it could be a good play. Most Public Relations and Press Release websites do. If an article website which specializes in Ezines, RSS feeding, syndication or news has a future posting submission option they may find themselves with more authors and writers submitting and that means more articles and better width of topics.Let me explain, you see I believe if it is not too much trouble for a web development team or database programmers then it could be worthy, as many people write about stuff which is not quite ready yet. For instance if a writer has a product and is an expert in a certain industry then they would have the option of submitting all their articles for the upcoming season. This would be a blessing in that they would not have to submit all the articles into the system one day at a time at the specific time needed to time the season.So if an author wrote about GPS Systems for your car, Gifts or school topics and that is something people buy for Christmas, certain times of the year or other occasions they could have 20 articles about all sorts of GPS stuff, gifts or school issues and have them post every three days once the particular season started.If an article directory website had an extra set of boxes on the submission page. The little box would always be checked Submit now, unless you put the dot into the “submit later” and then it would highlight the box for the date you wish; I.E. Box, box, box, representing; Month-date-year.Many authors would appreciate this and they would think it a very good strategy. Speaking as a want-a-be author; I have a few articles I w
The U.S. is a paycheck to paycheck society. A year ago, most families were one or two paychecks away from financial disaster. Many made up the shortfall by using credit cards and made the minimum monthly payment. When credit card companies increased the minimum payment, in some cases doubling the minimum due, people were not able to make the payment. Missing a payment or being late on a payment resulted in the credit card issuers upping the interest rate on the cards. If someone is having difficulty making a minimum payment on a card with a 10% interest rate, they certainly are not going to be able to make the minimum payment on a card that has risen to 19% or higher.
The effect of gasoline price increases is transparent at the pump. A tank that used to cost $20 to fill up now costs $40 or more. If you are filling your tank just once a week, that extra $80 a month is causing a pinch. Since most U.S. families are two-car households, there is now an extra $160 going out the door per month. That is close to $2,000 a year. Less apparent is the increase in the cost of consumer goods across the boards. Think about how goods are shipped in the U.S. The cost of trucking goods, from groceries to building supplies to clothing, has gone up due to rising gasoline prices. And that cost is passed on to the consumer.
People who used to live paycheck to paycheck are now one to two paychecks behind. If you want proof, go to an Amscot or any paycheck advance place and see the working people lined up. Higher Interest Rates Limit the Number of Buyers.
One of the contributing factors to our recent hot market was low interest rates. People who could never before afford a house were becoming homeowners, creating a whole new pool of buyers. Lower interest rates also meant that people could buy more house for the
People are different and so are their needs in life. Every one is in need of money but for different reasons. For some, home renovation is on the priority list. Some may be in need of funds for paying off the medical bills. Some people require money for pursuing higher education and some may be planning to clear their credit card bills at one go. There should be a loan product that offers flexibility with regard to use of the loan money by the borrowers. Personal loans are designed exactly for this purpose. A personal loan gives freedom to the borrowers to spend the loan money as per their wish. There no need for a borrower to specify the reason for which the loan will be used. This is the reason for the immense popularity of personal loans among the UK borrowers.Tenants in UK find it difficult to get a loan with favourable terms and conditions. This is because the UK lenders prefer offering secured loans to the UK homeowners to minimize the risk of losing the loan money. However, with the growth of the loan market in the past few years, there are many lenders in the UK loan market who offer unsecured personal loans and that too at a competitive rate. When a person applies for an unsecured personal loan, there is no need to submit collateral against the loan. This is definitely a big respite to the tenants as well as those homeowners who do not wish to risk their homes. Moreover, it is not intelligent enough to risk your valuable assets for meeting your personal needs. As a considerable amount of risk is associated with unsecured personal loans, the lenders usually insist on the following to minimize t
People who used to live paycheck to paycheck are now one to two paychecks behind. If you want proof, go to an Amscot or any paycheck advance place and see the working people lined up. Higher Interest Rates Limit the Number of Buyers.
One of the contributing factors to our recent hot market was low interest rates. People who could never before afford a house were becoming homeowners, creating a whole new pool of buyers. Lower interest rates also meant that people could buy more house for their money because people buy based on the monthly payment. For example, a $225,000 mortgage at 8.5% interest would have a principle and interest payment of $1,717.82 The same mortgage at 5.5% interest comes in with a monthly payment of $1,271.67, a difference of almost $450. When people can buy more house for their money, the median house price tends to rise.
Conversely, when interest rates go up, monthly payments go up and many people have to buy a lower priced home or are priced out of the market. Higher interest rates lead to fewer buyers which leads to less demand. Which leads to a glut of houses on the market.
Houses Over-Priced Due to Past Hot Market
Buyers are waiting for prices to stabilize. The recent hot market inflated prices and in some cases over-inflated prices. Demand was high and prices went up with the demand. In some markets prices have held, but in many markets, prices are declining (or correcting depending on who you talk to) and buyers are reluctant and rightly so, to buy in a falling market. No one wants to pay $350,000 for a house only to have an identical house in the same neighborhood sell the next month for $320,000. It is one thing to buy a house for $125,000, hold it and watch the value shoot to $275,000 in two years then have it fall back to $240,000. Even with the decline, you had a huge upside growth and the loss is an opportunity cost; it is on paper. Buying a house and seeing the price drop and stay below what you paid for it is an actual loss. The people who are buying right now are people who have to buy a house (they have been transferred to an area, they sold their house and need another, etc.) or people who have found a deal far enough below market to ensure that the decline in prices won’t affect them. Everyone else is sitting. And watching. And waiting.
Economic Turmoil in an Area.
The recent run up of house prices across the country resulted in a corresponding run up of property taxes. Property taxes are based on the assessed value of the house. In order to keep taxes from going up, the local taxing authority would have to reduce the millage rate. Not a likely scenario. The millage rate (also known as the tax rate) is a figure applied to the value of your property to calculate your property tax liability. One “mill” represents one dollar of tax per thousand dollars of taxable property value.
For example, if the millage rate is .008557 for each dollar of value, multiply the millage rate by 1000 to get the price per $1,000 or simply move the rate three decimal places to the right. Millage rates are usually rounded off to two decimal places so if the millage rate is 8.56 and your house’s taxable value (not its actual value) is $100,000, your property taxes would be $856.
Now, if you originally had a taxable value of $100,000 on your house and due to rising market prices its taxable value went up to $200,000, your property taxes would double to $1,712. That is an extra $71 a month. Not a hardship to most people. But realize that many people are on a fixed income or are living paycheck to paycheck. That extra $71 this year may be an extra $80 next year and an extra $100 the next year. If people’s incomes aren’t rising to cover the additional costs (and cost of living increases have been averaging around 3% – many companies have not been giving raises at all), then a cash crunch develops.
In some locations, another contributing factor to economic turmoil is an increase in insurance rates. Insurers have taken huge hits in recent years and are passing their costs on to consumers. Because insurance is required by lenders, homeowners are not able to opt out from this expense. While most homeowners are not increasing their insurance coverage to correspond with the rise in property value, the rates themselves have increased. The same amount of coverage costs more.
In addition, many people rushed to get cash out refinances to pay off consumer debt, buy “toys” or send their kids to college. The larger mortgage required higher insurance coverage. Now they are facing higher mortgage, tax and insurance payments.
In some areas, the job market has stagnated or even fallen off. Large corporations have announced layoffs of employees (think US automakers Ford and GM, for example). Outsourcing is another major factor in what is now a transitional job market. While unemployment rates have been trending downward indicating a net increase of jobs in the United St
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