LAst week I had someone ask me to do a CMA on their Home to see if they could move to a different area. They don't have to move they just want their kids in a different school district. The news was not what they wanted to hear. The recent sales show comps selling below what they paid.
The gentleman in question said "I will never sell for less than what I paid!"
He's a smart guy, went to business school......
I don't believe that now IS the right time for them to sell but, I had to spend some time trying to remove some of the raw emotion out of the situation. I tried to illustrate that if he waited for the market to come back in his area that he may see the market in his target area even surpass the the values in his area and he would see a greater net loss.
I don't know if he ever turned off the emotion long enough him to listen.
Long term client.
Education to continue.
I ran into a very good client today. We exchanged pleasantriesand then he asked me Should I refinance? He bought just a year ago. I was a little surprised whan he next said, I figured you would let me know if I needed to refinance.
I am not a mortgage pro and I don't play one on TV. Having said that I told him what lenders had told me the last week or so.
Putting his situation aside, Should I be bringing up you should refinance, or you should consult your financial specialist.
So I saw a question the other day and it got me thinking. So is it a good time to invest in Real Estate?
The answer is as simple as it is complex.
First lets explore what real estate investing is not. RE investing is not day trading. Sure every now and again you can see a high rate of return on property. But what is a high level of return? 10, 25, 50 even 100% Over years right? Buy stocks at $5, they skyrocket up to $100....... And if news goes bad back down or to nothing.
Back to if now is a good time to invest. The answer is and should be different for everyone. If buying and holding Real estate fits into your long term investment stratagy, now there ARE great opportunities to find Quality investment properties in Fort Collins and Northern Colorado
If long term investment is not in your plan Real Estate may not be a wise investment for you at this time.
Yesterday I visited a property which is quietly available in the old town area. On the exterior it looked very solid. Huge lot! Great location! No Brainer. Right?
How is it that it could go wrong? Apparently the investor, knowledgeable in real estate had a dream and got caught in a nightmare. The drawings were done the plan launched. Roof was popped up, structure done well. But when it came time to put stairs in for the second story it didn't work. Everything stopped. The Investor became cash strapped, work stopped it got worse. Now they just want out.
Problem is the changes haven't added anything and probably done a great deal of damage. We looked at it for out of town investors but came away knowing that we were not going to suggest they look at it. It was not a waste of time.
It reminded us that a no brainer investment can still go wrong. An investor needs to plan very well when considering a remodel and along with that we need to be able to present reasonalbe possibilities for resale or appritiation. In addition, forsee possible pitfalls. Over improvement. Underimprovement. Designing to personal taste. Market forces and trends.
We are still looking for opportunites for our clients, but it was a good reminder that every situation is not always a slam dunk. Even if it looks that way on paper.
As the year is coming to an end so too is the option to put 3% down on an FHA loan. After January 1, 2009, the downpayment on an FHA loan will increase to 3.5%. Now there is still time to identify a property before the end of the year and close in January to still take advantage of the lower down payment.
Having said that, there are many other products which will continue. USDA Offers 100% financing on Rural property loan. These properties include locations such as Wellington, LaPorte, and Berthoud. This is a great option for first time buyers on top of the current Tax credit.
There are all kinds of other posibilities and with rates continuing to be remarkably low opportunity abounds. Call me and lets review your wants and needs!
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