Real Estate
San Diego Homes at Bargain Prices
Sunday, January 31st, 2010 | Real Estate | No Comments
How much is a house worth? Of course prices change over time, but there should be a standard formula for determining the value of a home. It turns out that like anything else, it’s related to the benefits that come with it. It’s not just about the house itself, or homes in New York wouldn’t be worth so much more than homes in Idaho. To a large degree, it’s related to availability of jobs. People will move to where there are good paying jobs. Their income determines how much house they can afford. Even within commuting distance of employment centers, more centrally located homes command higher prices. Logically, there should be a way to calculate a home’s value based on its location. There are such models, and they tell us that prices tend to move in the direction of this value over time.
So we should be able to figure out the actual value and buy a home for that price? Right? Well, no. In the near term prices fluctuate with other factors, like availability of funds and buyer and seller expectations. A few years ago banks were making subprime loans left and right. If you could afford the teaser rate, you could buy a house. The increase in demand drove prices up above the realistic values. No one worried about what would happen when the rate increased. They assumed that prices would continue to rise and mortgage financing would be available. But of course artificially inflated prices can’t last forever. When the teaser rates expired and mortgage payments went up, the crash began.
How do part time real estate agent make money when their not selling homes?
Friday, July 24th, 2009 | Real Estate | 4 Comments
I’m freshly into real estate. I’m curious as to how other people make a living when the market is down and you have no homes listed with you being sold. Even full time agents also. What type of ways do you find income rather than selling a home. I would like any EXPERIENCED real estate person to answer. I know everyone says don’t get into real estate because its 100% commission, but I love it. But I need some good advice. Please help. Thank you.
I have been a Realtor for 22 years and have worked full time and it is my primary source of income. Through the slow times I have built houses, bought and remodeled homes and sold them or kept as rental, worked for appraisers, and anything I can do to offset the lack of income. If being in real estate is what you enjoy…find something that you enjoy but involves the business. You might think about doing some property management. I recommend that if you have not been in the business very long….get involved in everything you can to socialize and widen your sphere of influence. Charity work will payoff in your heart and you will be amazed at the customers you can reach. You may have to find a part time job to get you through the lean times….I know people that substitute teach, clean houses, work at tax offices, etc. but if you stick out the first 5 years it is a great career. It takes time to establish yourself and your will work long hours. It is true that most real estate agents to not make a living selling real estate, but if they don’t it is because they did not do what it takes. Another option is to look at your listings and figure out another seller that may take their home in on trade or they could trade each other. It sounds crazy, but we did a lot of it back in the mid 80s. Good Luck to you!
What is the difference between a real estate broker and real estate agent?
Friday, July 24th, 2009 | Real Estate | 4 Comments
I was wondering what the difference was between a real estate broker and a real estate agent? How long would you have to go to school to be either one?
I pretty much got my answer to this question. Can a real estate broker act as both a broker as well as the agent? I plan on starting my own realty but want to do both jobs.
As a real estate agent you have to have your licenses held by a real estate broker you are not allowed to do anything in your own name it has to be in your brokers name or the company’s name.
To become a real estate agent you have to be at least 18, take the class and pass the state exam.
To become a real estate broker you have to be an active real estate agent for 1 year take a class and pass the state exam. After wards you can do anything that you like in your own name. You can even open your own real estate business
Searching For The Best Current Mortgage Interest Rates
Sunday, June 7th, 2009 | Real Estate | No Comments
With all of the fuss that has been talked about over the past year with the mortgage rates and how everyone is ending up in mortgage forclosure many people have been fearful of buying a home. But the fact of the matter is, the percentage of actual homeowners in the country who are fine and those who are unable to keep up with their mortgage interest rates, is pretty shocking. By the way the news media talks, you would assume every neighbor you have is facing foreclosure. But, the fact is that most people are all right either because they can afford the mortgage interest rates they signed for or that they were smart enough to get a fixed rate.
The current mortgage rate that lenders offer you will be lower if you have a high credit score, if you work for an established, reputable employer, and if you earn enough money to comfortably pay not only your mortgage payment, but your homeowner’s insurance and property taxes, as well as all your other living expenses.
Equity
Another factor that will play into the current mortgage rate you are offered on a home is how much equity you have in the home. Equity is the amount of value you have in your home over and above the debt against the house. If your house is valued at $100,000, and your home loan balance is $60,000, you have $40,000 of equity, or 40% equity in your home. When you sell your house, you will have $40,000 to put as a down payment on your new house.
Mortgage lenders love equity. The more of her own money that a buyer invests in a new home, the more likely it is that she will make her mortgage payments on time and protect her investment by paying for property taxes and insurance and maintaining the property.
Home Value
The value of the home you want to buy is another factor that will affect the current mortgage rate your lender offers you. That is because the government subsidizes home loans for homes priced under a certain price limit, and if the home you want to buy falls under that limit, you may be eligible for one of those low-interest government loans.
Length Of The Loan
Do you need a 30 year mortgage, or can you pay off your loan in 15 years? If you sign up for a shorter-term loan, you will have a higher monthly payment, but your overall current mortgage rate will be lower.
Adjustability Of The Rate
Whether you get a fixed rate mortgage or an adjustable rate mortgage is the final factor that affects your current mortgage rate on your loan. Fixed rates may be a little higher, but the rate is guaranteed to stay the same over the life of the loan.