Andrew Bates

U.S. recession could last into 2010

The cycle-dating committee of the National Bureau of Economic Research (NBER) this week announced the United State entered a recession in December 2007. Although NBER does not predict how long a recession will last, some analysts believe the current recession may not end until 2010.

KEEP THIS IN MIND

• The Federal Reserve's move to shore up the financial market by lowering its key interest rate to 1 percent will not directly affect long-term rates paid by borrowers'; however, the Federal Reserve also is considering purchasing Treasury bonds on the open market, which could lower long-term borrowing costs.
• In most instances, approximately 100,000 jobs must be created each month to keep pace with population growth and maintain a healthy economy. However, through October, averages of 120,000 jobs per month were eliminated, bringing the national unemployment rate to 6.5 percent. Many economists believe the rate will increase to 8 percent or higher in 2009.
• Despite most economists being reluctant to say home prices have bottomed out, in many areas of California the median home price is declining at a slower pace in month-to-month comparisons. C.A.R.'s October sales and price report showed that the median price of an existing, single-family home in California declined 1.9 percent from September to October, compared to 9.6 percent from August to September.
• One conventional definition is that a recession takes place when the country has two consecutive quarters of negative gross domestic product growth. However, NBER defines a recession as a significant decline in economic activity spread across the economy, lasting more than a few months. The last official recession began in March 2001 and lasted eight months before ending in November 2001.

To read the full story, please click here:

http://www.latimes.com/news/natioinworld/washington/la-fi-econ2-2008dec02.0.1860484.story

To determine the probable selling price of a residential property a Realtor will perform a BPO. The selling prices of similar, distressed and bank owned properties in a quarter mile radius are compared. Not to be confused with an appraisal, realtors and mortgage brokers employ this method to obtain a probable selling price for a residential property.

www.andrewbatesrealestate.com is the place to find foreclosure deals. Email me at andrew@realtorintouch with your real estate related questions.

We all want the highest price we can get for our property. We have seen that home prices have always risen in the past so it's highly likely we will overprice our property. Please don't allow yourself to be ensnared in the overpricing trap.

It's unfortunate you won't know your property is overpriced until it's too late.

Disappointments you'll face

• Ad response will be extremely slow because the public recognizes overpriced property. Keep in mind that people buy by comparison.
• Only the unaware will make an offer on an overpriced property. Why? Even if you accept their lower offer, they still won't get a bargain because the final price is no less than the "fair market value".
• It will be easier for buyers to make a favorable decision on other properties that are priced fairly. Do you want to set an example to drive folks elsewhere?
• If you're lucky enough to find a buyer at your price, escrow won't close because your price is higher than the appraised value and the loan application will be rejected.

Things you can do

• Always work with an experienced professional who knows the market in your neighborhood and has expert negotiating skills. Take advantage of the research and advice your broker can provide in getting you the highest and best price for your property.

Remember you're competing with all the other similar properties in your neighborhood; so price your property at a price point lower than your competition.

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To be profitable, foreclosure investing requires extensive research and preparation. Amassing the following information will give you the details you will need to negotiate a profitable deal:

As you can see there is a fair amount of information to put together and you'll need all of it to put together a favorable deal for yourself. You should consult with your tax advisor, real estate attorney or realtor before negotiating any deal. After all of this, your deal still needs to be better than all the others from investors bidding on the same property. So if you're not afraid of the time and work involved, big money can be made in foreclosure buying. Home prices are at rock bottom now and good bargains are available. In ten years property acquired today will probably double in value.

The Glen Park neighborhood is

nestled between Twin Peaks to the north and Noe Valley and Castro districts to the east. Located in the middle part of the city it is easy to travel to other parts of the city by car or public transportation. Muni's 35 Eureka and 52 Excelsior connect to the Muni Metro System; the 35 goes to Castro Street Station and the 52 goes to Forest Hill Station. Additionally the 52 connects to the Bay Area Rapid Transit District at the Glen Park Bart Station.

The Glen Park neighborhood was the San Francisco Planning and Urban Association's first project. A plan to beautify and populate land on the hills of San Francisco to be developed with the topography of the area was undertaken. A major developer of the area was Eichler Homes. Eichler had architect Claude Oakland design a mid-century housing tract consisting of homes ranging in size from 1,629-2,020 square feet. There are several unique amenities with these homes such as tongue & grove ceiling and Japanese Shoji style closets and courtyards consistent with the indoor/outdoor living theme. Many of these homes are still occupied by their original owners.

The San Francisco Police Academy is located in Diamond Heights. A shopping center in the area consists of a large supermarket, bank, coffee shop and professional offices. There are several schools including the School Of Arts High School, disignated a California Distingished School and the San Francisco Juvenile Probation Department located in Diamond Heights. Playgrounds in the area include George Christopher behind shopping center and Walter Haas at intersection of Diamond Heights Boulevard and Addison Street.

Currently there are 17 active listings in Diamond Heights. There is a wide range of selling prices for single family homes and townhouses, ranging between $800-$2.1Million.