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.
When you’re just getting started with a new venture, especially those that revolve around professional financial investments such as real estate, you tend to make a lot of errors.
Most people who develop an interest in real estate investment end up looping from one mistake to another for years, even after devouring lots of ebooks, videos, and training courses on the subject.
What is the missing link preventing most aspiring investors from achieving financial freedom with real estate investments? Why do some folks achieve huge success whereas others see not even an iota of success?
Reasons Why Ebooks And Courses Simply Serve To Mislead You
Some hard-working 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 continuously, what you need is a real estate mentor.
Electronic books and training courses drag you in different paths, but a real estate coach sets you on the right path to success. You gain substantial knowledge from their experience, and through their coaching, you are able to focus on one goal at a time, which is paramount to success.
They can also recognize mistakes you’ve neglected and guide you on what to do as an alternative. It’s like they’re an instructor, gripping your hand and telling you exactly what to do. With that type of help, your possibilities of success increase significantly.
The Only Real Estate Mentoring Program I Recommend
You’ll find numerous real estate mentoring programs on the internet, all with identical claims of helping you turn into a six-figure realtor in as little time as possible.
Every one of these programs are obviously expensive, so choosing the best one is of vital importance. Select the bad one and you’ll likely wind up regretting losing time and money you simply cannot really recover.
I’m a successful realtor, and I got my training from my mentor, Phil Pustejovsky. Phil Pustejovsky runs the Freedom Mentor Apprentice Program – a program that shows you the ropes on how to accomplish financial freedom in real estate.
The Freedom Mentor coaching program is not a program you can just buy whenever you wish. You need to put in an application initially, and you’ll only be accepted to the program if your application is approved.
The very fact that Phil Pustejovsky screens applications goes to show how much he wishes you to be successful. He’ll only take coachable, action-oriented, and positive thinking applicants.
Phil was once an apprentice as well. He started from rock bottom and only began to achieve success right after he met his coach, Tom.
Since then, he has been able to close tens of millions of dollars worth of transactions while netting millions of dollars in proceeds throughout the process.
If you believe Phil’s knowledge would have a favorable impact on your real estate venture, then you need to pay special focus to the following paragraphs as I talk about his Freedom Mentor program in even more detail.
Why Freedom Mentor?
Through signing up to the Freedom Mentor coaching program, you’ll gain access to premium tools and resources to help you close your first real estate deal.
These include access to a lender list, an instruction/lead-generating program to aid you find deals faster, and a personalized investing strategy.
That’s not all, though. You’ll also receive 3 real-time coaching calls every month with Freedom Mentor’s coaches, 2 conference calls weekly, and the ability to ask questions and immediately obtain responses from the mentors through an instant message platform.
There are two really good features of the mentoring program that help it stand out from the competitors. The first feature is the range of helpful mentors and coaches it includes.
You won’t have access to just Phil Pustejovsky’s coaching 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 getting help from. You’ll get access to a combined pool of knowledge and experience from many of the leading coaches in the field.
The second feature that makes this program so remarkably good at helping ambitious realtors gain success is its 50/50 split.
This essentially means Phil shares every one of his valuable real estate secrets with you, and you share 50% of the profits from your first few deals with him.
Once you’ve closed your first few deals, you can then proceed to become an independent real estate 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 set up your own mentoring program and teach your apprentices the steps needed for success exactly like Phil does.
A few of Phil’s past apprentices are currently managing their own mentoring programs after becoming successful real estate investors.
Note: I know the program offering changes from time to time as they continue to fine-tune it and improve it. Nevertheless, this is current as of this writing.
Summary – Action Takers Wanted
The Freedom Mentor coaching program is geared towards folks who are 100% dedicated to becoming successful real estate investors. If you aren’t ready to handle real estate investing like a business, this program may not be for you.
The tools, resources, and mentoring provided in the program are sufficient to set you on the best path to financial freedom.
Since you’re splitting your first few profits with Phil, it is really in his benefit to make you succeed, and you have as much determination to do just that. It’s a jointly beneficial arrangement, so you almost can’t go wrong if you invest the energy and time to help 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 business. There’s truly nothing else you need to have to make your real estate ambitions come true.
Not all home sellers are completely truthful about the condition of their property. It is unfortunate that if you were to hire a professional inspector for each viewing, it would get incredibly expensive. Thus, here are a few things that you can spot yourself, telling you to avoid the purchase.
The first thing is that you must get to know the neighborhood. This is of absolute vital importance. Is it a growing community, or is it in decline? If there are many foreclosed homes and businesses, the community is going through tough times. Make sure you visit the area on two different occasions. In doing so, you will also become aware of traffic. Do also come at least once at night, so you can see whether the streets are safe and quiet at night or not. Speak to the police and ask for statistics on local crimes.
You should now look at the property itself and how it was treated. Signs of regular maintenance are hugely important. If it looks run down from the outside, it is likely that the inside isn’t in a much better condition either. Always look at the wiring too. Although you probably won’t be able to identify all of the problems yourself, some red flags are easy to spot. If you spot that outlets are warm or that lights flicker, there is likely to be a wiring problem. Similarly, if you notice that there is a single wall, or just a few walls that have been painted very recently, where others haven’t, the owners may be hiding something. Also inspect the windows. Look at whether the windows have mold or condensation or are hard to open; this could be a sign of expensive problems.It goes without saying that if there are any rooms that the sellers don’t want you to see, you should avoid the property completely. If there have been any structural changes to the original property, you need to check whether these were done in accordance with various building regulations.
At the end of the day, only you can decide whether or not you should purchase a property. Additionally, if you find that there are certain problems, you could use this as a negotiating point to drive the price down. You do have to ask yourself whether that bargain is worth the potential financial hassle you are putting yourself through. Whether you purchase a property as an investment or as a home, it is always going to be a building that somebody will live in, and you need to make sure that the quality of life in that property can be pleasant and enjoyable. It goes without saying that checking the condition of the property itself is very important, but the area it is in must be focused on as well. To check on the actual property, all you really need to do is hire the services of a property inspector. When it comes to the neighborhood, however, you need to have a personal feel, something that cannot be achieved by a check box list.
Step-By-Step Information On Finding Selling a Property
A lot of folks are investing in real estate so if you wish to sell your property, you should do this now. The only issue today is that it’s going to be very tough to sell a house. You might have seen articles stating that selling a property is quite easy or there are adverts that claim that they can help you sell your house in only a few weeks or months. It will be quite easy to sell a house if you going to bring the value down, but this won’t be a good suggestion. In the real estate market, the supply totally surpasses the demand, but you could find methods to help make the house appealing. We’ll give you some guidelines to help you with this.
Check The Curb Appeal of The House
First impression lasts so your house should give the customers a good impression once they see its exterior. You can put yourself in the shoes of the customer and see if the curb appeal of your home can attract them. You must find out if the house can offer a good impression to possible customers or it needs maintenance.
The potential buyer will first see the exterior of your house and you must understand that they always pay attention on how the house looks outside. You must get everything ready fix anything that needs fixing.
Make Improvements To Your house
Making some upgrades in the house is essential if you’d like to attract customers. You should enhance the interior and outside of the house so it would be visually appealing to the possible customers. If you really want to sell your house, you have to check everything that needs fixing and make the required improvements. Nevertheless, make certain that you won’t over improve as there are upgrades which will not make a big difference.
Improvements can absolutely boost the value of the house and its chances to be sold, but you can’t make upgrades that will not pay in the long run. You need to make your own research and only invest on things that will offer the best return.
Take Away The Clutter
When you are speaking about clutter, these are things that you should remove from the house when you’re selling it. You’ll have to remove all of your personal items, collectibles and art works because it will not help in selling your house. Eliminate The unneeded things in the house and leave the furniture to make the rooms bigger. The aim is to help the customers visualize what they want to do in your property when they bought it. They will begin visualizing the inside of the house once they are inside so eliminate all of the unnecessary and personal items in the house. It’ll be quite tough for them to do this if your personal items are inside the house.
Put a Competitive Value
If you’ll sell a home in, you need to put up a competitive price for your property. If you will put a low value, it will be similar to leaving money on the table and if you priced the house too high, it’s going to be unattractive to buyers. With regards to home buying, the buyers are always searching for houses that are quite similar to yours and compare prices. If your house is a bit costly, the buyer will check other houses and ignore you. Most of these customers are only relying on home financing so they cannot afford houses which are very costly. Though you can sell the house for a lower value if you want, you will not be able to get back your investments.
Employ A Real Estate Agent
It’s impossible to sell a house without the help of a professional and it would be a bad idea to do this on your own. You do not have the knowledge and experience to manage everything so it is going to not be an excellent idea to sell your home without hiring a professional real estate agent. If you’ll try to do this on your own, there is a big chance that your home will not be sold or you will not get a great deal from it. You may actually get fortunate to get a good deal for the house, but you should always remember that selling a house will not be about luck since lots of money is at stake.
You should think about the help of an agent and permit them to do everything for you. Of course, you will need to pay them, but it’s much better than acquiring a bad deal.
If you’re going to sell your house, it’s best to follow these simple guidelines so you won’t make any mistakes. It’s true that these tips are very basic, but you could assume that you could sell your home quickly if you’ll follow all these.
Many agents don’t reply to inquiries and messages right away; some don’t respond at all. Contacts and clients have lots of questions when they embark on the home buying process, so responding as quickly as possible, even if you tell them you have to call them back, demonstrates that you appreciate their choice in you. If you’re indisposed at the moment, politely excuse yourself from the current conversation and send a quick text message.
Lack of technology skills Real estate agents must be able to leverage technology that’s found in every facet of their personal and professional lives. That means more than just having a smartphone in your pocket; it means using tools like digital signatures, portal profiles, your own updated website, apps and social media. While you don’t need to adopt all the latest and greatest apps and software that becomes available, keeping tabs on the ones most relevant to helping your workflow shows clients that you’re up-to-date on technology.
Not being up-to-date on the “Social MLS”
Love them or hate them, portals like Zillow and Trulia are tools that many buyers and sellers often use as a starting point for information — and something they will probably ask you about.
Buyers might have already browsed the site before you meet, and sellers might be anxious to ask you the numbers they saw on there. You must be
prepared to expertly discuss how these portals work and how you plan to use them in the home buying or selling process. For further reading, try The Truth About Realtors.
An aggressive, sales-heavy approach can leave them wondering if their agent cares more about the bottom line than helping buyers and sellers fulfill their home dreams. Explaining to clients how the process works gives them insight into why you employ the tactics you do.
Most consumers don’t have the extensive knowledge or expertise that real estate agents have when it comes to buying or selling a home. They can naturally feel leery about trusting an outsider with what is likely the biggest purchase of their lives. Being open and honest when they have questions helps build the foundation for a long-term relationship that pays off for both of you. Read: What Can I Do If I Don’t Trust My Real Estate Agent?
Most important, don’t lie to people. It never pays off and beyond the legal ramifications for playing fast and loose with the truth for the sake of closing a sale, it destroys the chances for any future business or referrals from that client.
Feeling disrespected and ignored
Many consumers can feel their agent doesn’t listen to their needs, whether that’s buyers being presented with homes that aren’t anywhere near what they’re looking for, or sellers who don’t understand that they have options. Just as an agent’s time is money, a lead or client’s time is just as important.
A lack of openness or empathy
Real estate is all about building and maintaining relationships; personality counts for everything and sometimes, for whatever reason, people simply don’t click. If being a “people person” doesn’t come naturally, it will take patience and practice to learn how to relate to people and make a genuine connection with them.
How To Deal With Annoying Sellers Who Won’t Negotiate
Even in strong sellers’ markets, homeowners who list their property for an unreasonably high price are eventually punished for their greed. However, the owners of some rare and truly exceptional homes can sometimes get away with pricing high and refusing to bargain. If you really love a home, but the seller won’t back down on their unrealistic list price, here are some ideas that may help. See: Looking Twice at Overpriced Homes.
Prior to offering a bid, buyers should ask their agent to prepare a “comparative market analysis.” To do this, the agent should gather data on recent home sales in the immediate area. Your evaluation of neighborhood sales should yield a general estimate of the value of a property that interests you.
Assess the owners’ level of motivation to sell. Not eve
ryone with property on the market wants to sell immediately. Some sellers are just testing the market to see if their unreasonable prices will work. How can you find out what’s caused the sellers to put their place on the market? Often, your agent can obtain answers by simply asking the sellers’ agent direct questions. See: Why Overpricing a Home is Not a Good Idea.
It’s not unusual for negotiations between buyers and sellers to go for several rounds before an agreement is reached. If you really want the house, it’s worth pursuing the process, so long as the sellers are bargaining reasonably.
Recognize the signs of inflexible sellers. If you find the owner of the home you love demand a price you know to be excessive and all attempts to negotiate seem futile, its time to walk away. Chances are, you’ll find whats meant to be!
Of course, the goal of selling your house is to get the most money you can. Given that, its often very tempting to overprice your house, as your rationale is that you might score big. This doesn’t mean testing the market by setting your home’s price above what the house is worth, just to “see what happens,” is a good strategy. In fact, there are many reasons not to test the market this way. See: Reasons Sellers Give for Overpricing Their Homes.
You are actually helping other sellers. It’s great to be a good neighbor, but unintentionally sacrificing your sale to help your neighbors sell their homes might be going a bit far. When you price too high, you’re actually helping sell the other homes in the neighborhood that have listed for less. After seeing your high-priced home, buyers may be eager to get the better-value house nearby; even if they liked your home better.
Buyers won’t take you seriously. Buyers are savvy. They’ve usually done the research and have a ballpark idea of what homes in your neighborhood are worth. When you price too high, sellers might not even look at your property. Read on: Five Signs Your Home is Overpriced.
Not everyone likes to play games. A common reason sellers price high is that it leaves room for negotiation. The problem with this tactic? If buyers overlook your house because it’s out of their budget, there will be no one to negotiate with. While some buyers might enjoy the negotiation process, a solid buyer respects and appreciates a home priced just right.
False hope. Some sellers who price high are given false hope by agents who are uncomfortable telling their clients the truth. Some agents may agree to any price you want just to get their sign on your lawn.
Wasting time. Sellers are in the driver’s seat the first 30 days a house is on the market. The listing is still new, so you have buyers’ attention. The ideal scenario is that you price to sell in the first two weeks, so that you get multiple offers. When you price a home too high, you waste the most precious time available.
Your house gets stagnant. If your house is on the market longer than 30 days, buyers will start wondering whether something’s wrong with it. When you price your home too high, all you’re doing is putting blood in the water for the sharks who will wait until you lower your price. And here’s the real problem: When you do drop the price, you often get less for your house than if you offered a realistic price from the start.
You take yourself out of the game. People generally set up search parameters by price when looking online for a home. If the house were priced properly, it would show up in the buyer’s search results.
They’ll find out you’re greedy anyway. If you’re selling to buyers who are getting a mortgage (mainly most buyers), the lender will need an appraisal. If comparable home sales over the last six months and current market conditions don’t support your sales price, then your buyer won’t get the mortgage.
Maybe now isn’t the time to sell; especially if you’re in a buyers market. Perhaps you should take your home off the market and wait for inventory to drop. When there are fewer homes for a buyer. Selling specially tough because buyers expect bargains. You may lose money if you try to negotiate during holiday stresses. If you can afford it, wait until the Spring to sell. See: 6 Options If You Need to Relocate and Can’t Sell Your Home.
If your need to sell is based on financial needs, it might make sense to take out a home equity loan if you can afford to pay a higher payment monthly. If your existing loan is an adjustable rate mortgage, and a higher interest rate has raised your payment to the extent that you can no longer afford to pay it, you might be able to renegotiate a loan modification plan with your lender.
Some home sellers have no choice. For a variety of reasons, from job promotions to family-related matters, a home seller might be forced to relocate and leave an existing home behind. Even if you can’t receive enough rent to cover your mortgage payments, paying a small amount of negative cash flow every month might be easier on the pocketbook than forking over thousands of dollars for a vacant house.
Hire a reputable real estate management company to screen tenants and hire people if repairs become necessary. Getting a call from a tenant at 10 pm is not ideal. Ask neighbors to keep an eye on your home and to notify you if they suspect problems. Read: What to Do When You Find a House, but Yours Won’t Sell.
If you’ve purchased your home within the past few years, it’s possible that you owe more than your home is worth. Talk to a realtor who specializes in short sales; she may be able to negotiate with your lender to accept less than your mortgage balance.
You might talk to your real estate agent about doing a lease option purchase versus an outright sale. Lease options are appealing to borrowers who, for a variety of reasons, might not be in a position to purchase a home through conventional financing. Maybe they can’t decide whether to buy or rent. Make sure your lawyer reviews all documents before you agree to sign. Check out: Should I Short Sell My House?
Lease options give a tenant the opportunity to later purchase your home at a predetermined price. For a tenant who is on the fence about buying a home, it lets them live there while deciding whether to buy. Typically, lease options payments are higher than a regular rent payment, which might eliminate negative cash flow for you.
If your employer is transferring you out of town, you might ask about a guaranteed purchase program. Many employers hire relocation companies that offer buy outs for employees. You might not even know that your employer has a relocation program if you don’t ask.