Real Estate 101: Timing theReal Estate Market
July 12th, 2011 by Ryan Salcedokeeping an eye on present market trends is vital, whether you’re looking to buy or sell a home. Realistically, you’ll want to make sure to get the best deal possible regardless of what side of the transaction you are on. You will need to pay particular attention in timing the market to make this happen.
Timing the market, as the term implies, involves selecting the time that’s best suited to buying or selling a house. The best time for individuals who are interested in buying a property will be during what is known as a “buyer’s market.” The market conditions are most favorable for individuals that are interested in purchasing a property in a buyer’s market. The number of houses for sale must be greater than the number of people that are looking to buy a home in order to be considered a buyer’s market. Thus, to attract buyers individuals who are selling their houses must decrease their asking prices. During a homebuyer’s market, in addition, the homebuyer has a better position when it comes to negotiations. Simply put, the homebuyer will have a greater ability to demand repairs or to demand certain appliances or furniture be included because the seller is much more desperate to sell the property.
On the other end of the spectrum, the term “seller’s market” is when the market is more favorable for individuals that are looking to sell their houses. The number of people who are interested in purchasing a house is greater than the number of individuals who are selling in a seller’s market. In this case, the seller is able to retrieve a higher sales price for the property. In addition, the buyer is less likely to get the owner to agree to certain concessions.
Clearly, real estate market conditions are strongly related to the state of the economy in general. So if a large section of the nation is struggling with finances and if the real estate market is becoming saturated with foreclosures, persons who are trying to sell their homes are going to have more trouble selling them. As a result, individuals who must sell are forced to reduce their prices. On the other hand, sellers are able to hold onto their properties and command a higher sales price when the economy is strong. Therefore, by keeping an eye on the economic state as well as real estate market conditions, a knowledgeable buyer or seller can be sure to get the best deal possible.
When ascertaining real estate market conditions, it is paramount to remember that all real estate is local. Some local markets are still relatively balanced markets, like Austin, TX, favoring neither buyers nor sellers. On the other hand, some markets, like Las Vegas or Nevada, lean strongly towards homebuyers. Even within a local real estate market, conditions might vary – vacation homes in Hawaii, for example, favor buyers, while residential homes are more balanced. Likewise, in the Austin’s balanced real estate market, there are sub-markets that deviate. For instance, Austin’s condo market leans heavily towards buyers.
In short, when deciding whether you will want to buy or sell a home, it is imperative to understand the difference between a homebuyer’s and sellers’ real estate market. When analyzing your position, it is just as vital to realize the local and sub-market real estate conditions.
Learn more about Timing the Real Estate Market, or learn about market statistics and look at active listings in Lake Pointe Homes For Sale in Austin, Texas.
Understanding the $8k Homebuyer Tax Credit
May 9th, 2011 by Steven StefalopeRecently Congress has enacted legislation in an effort to help encourage homebuyers and get the economy going once again by providing a tax credit to buyers. Although it’s being restricted to those purchasing a home for the first time and only being valid on purchases made between 1/1/09 and 12/31/09, the $8,000 reward is quite the incentive. The new credit, unlike previous tax credits that have been offered, does not need to be repaid over time.
Homebuyers must meet certain criteria in order to qualify for the credit. This includes being a first-time homebuyer, which, according to the legislation, is defined as an individual who for a period of three years prior to the purchase has not been the owner of a principal residence. Income restrictions also factor into receiving the credit, which will be available only to single taxpayers with an income of $75k or less and married taxpayers with a combined income of $150k or less.
The actual amount of the credit the homebuyer receives is based upon the purchase price of the home, with the amount of the credit being equivalent to 10% of the price. There is, however, an $8,000 limit on the amount that can be credited to the homebuyer. Therefore, if the purchase price of the home is more than $80,000, the homebuyer cannot receive more than $8,000 in tax credits.
Under the new tax law, any property that can be used as a primary residence is eligible for the tax credit. This includes, but is not limited to: -Single-Family Detached Homes -Townhouses -Condominiums -Manufactured Homes -Houseboats
Newly constructed homes also meet the criteria required. If purchased from a builder, the settlement date must occur within the 2009 calendar year. Buyers who are constructing a home on property they already own are still eligible for the credit as well, so long as they first occupied the home on or after January 1, 2009, and before December 1, 2009.
Although the new legislation is different from previous legislation because the credit does not need to be repaid, it is important to note that the homebuyer must utilize the property as his or her primary residence for at least three years after making the purchase. Otherwise, it is possible that the credit will need to be repaid.
Find out about the tax credit and view listings for Lake Austin Apache Shores.
Now is the Time to Buy a Home in Austin
January 12th, 2010 by adminAustin Homes are a great investment. Even though there have been a lot of issues with the current economic situation and severe problems with the mortgage and real estate markets, now is still a good time to buy. You can take advantage of lower housing prices and falling interest rates. Think about what is best for you, and consider the following reasons to buy real estate in Austin.
One of the biggest reasons to buy Austin homes is the great selection. You can find housing in any part of the city, and the price ranges are varied. There are many nice houses on the market, so you can select the perfect home. It used to be quite a competitive market, but with the current economic situation, buyers now have plenty of options and time to choose. One piece of wisdom is to remember that the best time to buy real estate is when people want to sell. This has never been truer than it is now. You can make your money go much further these days, and the power to negotiate is in your hands.
As was mentioned previously, real estate is becoming more affordable and this is especially true with Austin Homes. The market was much more expensive a few years ago. Now that things have opened up, the possibilities are much greater, especially for people looking to become first-time home owners. On top of this, mortgage interest rates are extremely low right now. Taking advantage of this fact is critical. You can get a great rate now before this trend breaks. Don’t forget that buying Homes in Austin is also a good way to save money on taxes. Your mortgage interest and real estate taxes are tax deductible. Investing in a home can be a smart move instead of paying rent every month. Rent rates are projected to rise around the country this year, so consider this aspect carefully.
Many of the Austin homes are move-in ready. Sellers are going the extra mile to get buyers to purchase property. It is a tough market, and this benefits people looking to buy real estate. Many sellers are willing to do extra painting, landscaping, and repairs to make the house the best it can be. They want to sell you an attractive home, and you reap the rewards of the market conditions. Again, it should be noted that this is a buyer’s market, and that gives you the dominant position of you are interested in buying a home in Austin. The time to make a move is now.
One of the biggest reasons to buy Austin homes is the great selection. You can find housing in any part of the city, and the price ranges are varied. There are many nice houses on the market, so you can select the perfect home. It used to be quite a competitive market, but with the current economic situation, buyers now have plenty of options and time to choose. One piece of wisdom is to remember that the best time to buy real estate is when people want to sell. This has never been truer than it is now. You can make your money go much further these days, and the power to negotiate is in your hands.
Author: Aniruddha Badola
Austin Commercial Real Estate Market Out Strides National Market
December 29th, 2009 by adminWhile the rest of the country is seeing their commercial real estate markets plummet, Austin has been able to take the down turn in stride. This may be a time for companies to be patient and strategic, but for those with a commercial real estate license, it is a time to be optimistic. Commercial real estate has a history of much more stability than it’s residential counterpart, and that goes double for Austin. Real estate forecasters have predicted gloom and doom, but heightened financial stress on a market creates opportunities for investors. Demand for well-located properties yields multiple offers for investors. It just takes a keen eye and training to turn a profit, and the commercial real estate market is no different.
A Real Capital Analytic report tracked 134 markets and recorded a sales volume of around $1 billion per market in 2007, while only 77 national markets reached that mark in 2008. Austin was in the small minority that went beyond the $1 billion mark in 2008. Sixty-six properties valued at $10 million or more changed hands in the Austin metropolitan area in 2008. Though that’s a 56% drop from 2007, the total value of commercial transactions still topped the $2 billion mark. So, though the rest of the country is having to duck-and-cover, Austin is holding on to a reasonable commercial market.
Two exceptions to the stable Austin market are the Chapter 11 filing by Park At Aspen Lakes II and the foreclosure and subsequent bankruptcy of the Hill Country Galleria. And, experts are predicting that more commercial properties are likely to end up filing bankruptcy or defaulting on loans. But, real estate companies are targeting those sinking properties. “We seen an awful lot of potential buyers who want to come into the Austin market from all over,” said Joe Duncan, founder of land brokerage firm Duncan Commercial LLC. “The people who are coming in are smart, very experience people (who know) Austin will be a good long-term play for them. They want to be here. It’s just a matter of when do you pull the trigger and enter the market.”
According to the Real Estate Roundtable, 2009 will be a year for national investors to “just get by.” But in Austin, the forecast is different. The Austin commercial market will hold on, until 2010 when the entire nation will see an up turn that will rocket the commercial market back in a robust rebound. So get a jump on the up turn, pull the trigger, and get your commercial real estate license now.
A commercial real estate license from The Texas Institute of Real Estate will take your real estate career to new heights. To be at the top of your game, you need a school that offers a wide range of courses, not just those pre-licensing classes. At the Texas Institute of Real Estate, the owners and instructors are experienced professionals who have listing, selling, and investing down to a science, and can teach you everything they know. The Texas Institute of Real Estate has been offering Texas real estate courses for more than 18 years, and is backed by agents with 25 years of experience in the business. Since 1989, students earned or renewed their Texas real estate license with The Texas Institute of Real Estate, and moved on to successful real estate careers.
The Texas Institute of Real Estate offers classes to match your life and your schedule to help you get your commercial real estate license. You can enroll in any Texas real estate course, online or by correspondence ? and get your Texas real estate license at your convenience. Contact the institute at (800)487-1757 or visit them online at www.thetexasinstituteofrealestate.com and get in on the $2 billion commercial market today.
