Interested in Investing in Real Estate?  Foreclosure Myths You Should Know, continued....

Myth: Foreclosure only happens to those that are poor.

Truth: Foreclosure happens to individuals of all different walks of life. At the time of purchase, many homeowners are actually able to afford their homes, but, often times, something unexpected arises. Many mortgage holders who find themselves victim of foreclosure arrived at their current situation due to an unforeseen financial problem.

What does this mean for you as a real estate investor? It means that you shouldn't just focus on areas that are considered low income. This is a mistake that many beginners make, as they assume that those in the low income range are less likely to be able to afford their mortgages, resulting in foreclosure. You will want to examine all real estate markets in the United States, as foreclosure can happen to anyone, of any financial standing, at just about anytime.

Myth: Foreclosure properties, due to their condition, are not worth the money the asking price, even if it is a fraction of their value.

Truth: As it was previously mentioned, foreclosure happens to individuals of all different walks of life. Many homeowners take great pride in their homes, but many are just unable to afford the costs of them. This is often what results in many quality foreclosure listings.

What does this mean for you as a real estate investor? Of course, it means that you can come across run down foreclosure homes, which may need many updates or repairs, but you should also be able to find many foreclosure homes that are in top notch condition. Of course, it is important to remember that these types of foreclosure homes are the ones that are the most sought after; therefore, you need to act quickly when you find them.

Outlined above are two of the most common foreclosure myths that beginners often fall victim to.   To be a successful real estate investor, you need to be able to separate fact from fiction. That is why it is advised that you first do your research, particularly concerning foreclosure properties. You may want to take a real estate investing course, particularly one that specializes in foreclosure properties, or invest in a number of foreclosure property buying guides or books.

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How to Sell a House in a Down Market

Selling a house in a down market is tough, but with diligence and a few creative ways, you certainly can do it.  Your house just has to be irresistible, and making it the most attractive, updated, inexpensive, and best buy in its bracket will do the job.  Find a good broker or agent first and ask them for help with assigning a good price.  Then start in on the house.

·        Check your curb appeal and decor inside.  What is a buyer's first impression of the outside going to be?  Or inside as they step in to take a look?  Make sure everything is neutral, clean, and updated.

·        Staging your home is one of the best tools available.  If you don't know how to do this, then hire a home stager.  A house has to look lived in and yet not cluttered.  Buyers, as they walk through a home for sale, need to imagine what each room could be used for if they buy the house.  They aren't buying the furniture and accessories, but these really help when inducing a reluctant buyer to take a second look.

·        During the walkthrough, pathways should be clear -- visitors should be able to walk around a dining table with ease, for instance.  It's best to practice this yourself.  Pet supplies and other miscellaneous items should be stashed away for an open house.  

·        Marketing your home for sale is critical.  Use a broker who puts your house on the Multiple Listing service ( MLS ).  Be sure that your house is on the broker's website, complete with a 3D virtual tour.  You can also be instrumental in marketing your home.  If you have an agent, discuss with him first.  There should be no conflicts.  See if you can print up flyers and network for your house.

·        Offer incentives.  A portable hot tub or upgraded drapes might be included.  Or high-end stainless appliances in the kitchen.  Some sellers even throw in a vacation or in rare instances, a car!  A junk incentive just isn't.  Use your creativity.

·        Make open houses (consult with your broker) as inviting as you can.  Fresh flowers, a bright kitchen, clean bathrooms, even cookies just baked (or a candle with the same scent) help put buyers in the mood.

·        Be certain to vacuum and remove deodorizers and do not burn a candle that's strongly scented (unless it is cookies).  Many people are allergic to chemicals, and if they are sneezing all the time, then they will be in no mood to buy your home!

Articles

Pros and Cons of Living by the Water  |  Differences Between Condos, Town Homes, etc.  | History of the Home Mortgage  |  Yearly Home Maintenance Tips  |  Avoiding Scams that Target Older Adults  |  How to Cure Empty Nest Syndrome  |  How to Sell a Home Without a Realtor  |  Safety Tips for Retirees  |  Beginning Genealogy  |  10 Interesting Hobbies  |  Travel Tips for Baby Boomers  |  Fixing and Flipping Property  |  The U.S. Foreclosure Crisis  |  The Short Sale

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