Commonly, spring is thought of as the best home buying season. It turns out that this is not the case.
After reading data collected from a report done by ATTOM Data Solutions, there are only three days out of the year, all of which fall in December, where homes are sold under market value.
“Closing on a home purchase the day after Christmas or on New Year’s Eve can be one of the most financially beneficial holiday-season gifts you can get,” said Todd Teta, chief product officer of ATTOM Data Solutions.
The report was conducted among 23 million single family home and condo sales over the past six years. It shows buyers willing to close on a home the day after Christmas encounter discounts of .3% over expected price and a discount of .1% on both New Years and December 4.
Clearly, December is the best month to buy but you can still expect premiums of about 1.2% above market value. Thats great, in comparison to months like June, experiencing premiums as high as 7.1% above market price.
Further, the data is broken down by state. Particular months discounts were substantial. In Ohio homebuyers saw discounts as low as 7.4% under expected value in January; Tennessee, with prices down 6.2% in January; Michigan, with prices down 7.2% in February; New Jersey, with prices down 5.8% in December and Delaware, with prices down 6.3% in February.
Despite such drastic changes in premiums, buyers can expect homes to average between $197,500 – $198,000 throughout the holiday months.
“While lots of folks are shopping the day-after Christmas sales or getting ready to ring in the New Year, our data shows that buyers and investors are buying homes on those days at a discount,” Teta said. “That’s a far cry from buying during June, when they are likely paying about a 7% premium.”
Clearly, Black Friday is not the best time to look for a discount on the housing market.
The moment you’re just getting started with a new venture, particularly those that revolve around skilled investments such as real estate, you have a tendency to commit a lot of mistakes.
Most people who develop an interest in real estate investment end up looping from one mistake to yet another for years, even after devouring tons of ebooks, videos, and training courses on the subject.
What is the missing link preventing most aspiring investors from achieving financial freedom with real estate investments? Why do some folks achieve massive financial success while some others see not even an iota of success?
Reasons Why Ebooks And Courses Simply Serve To Confuse You
Some hard-working investors have been able to get started on their own and make lots of money, but they are the exception. When you find yourself failing continuously, what you need is a real estate coach.
Electronic books and courses drag you in various paths, but a real estate mentor sets you on the right course to success. You gain extensive knowledge from their experience, and through their training, you are able to focus on one goal at a time, which is paramount to success.
They can also recognize mistakes you’ve neglected and guide you on what to do instead. It’s like they’re an instructor, holding your hand and telling you exactly what to do. With that kind of support, your possibilities of success increase significantly.
The Only Real Estate Mentoring Program I Recommend
You’ll discover many real estate mentoring programs on the internet, all with identical claims of helping you turn into a six-figure realtor in as little time as feasible.
Every one of these programs are clearly expensive, so selecting the best one is of vital importance. Select the bad one and you’ll likely wind up regretting wasting time and money you can’t ever recover.
I’m a successful realtor, and I obtained my training from my coach, Phil Pustejovsky. Phil Pustejovsky owns the Freedom Mentor coaching program – a program that explains to you the ropes on the way to achieve financial freedom in real estate. Here are some Freedom Mentor reviews to help you guage the effectiveness of the program.
The Freedom Mentor coaching program is not really a program you can just buy whenever you want. You need to apply initially, and you’ll only be accepted to the program if your request is approved.
The very fact that Phil Pustejovsky evaluates applications goes to show how much he wishes you to be successful. He’ll only take coachable, action-oriented, and optimistic applicants.
Phil was once an amateur as well. He began from rock bottom and only began to achieve success after he met his coach, Tom.
Since then, he has managed to finalize tens of millions of dollars worth of deals while netting millions of dollars in proceeds throughout the process.
If you think Phil’s expertise would have a favorable impact on your real estate venture, then you have to give special focus to the following paragraphs as I explain his Freedom Mentor program in more detail.
Why Freedom Mentor?
By subscribing to the Freedom Mentor coaching program, you’ll gain access to premium tools and resources to help you close your very first real estate deal.
These include access to a lender database, an instruction/lead-generating software to help you get deals faster, and a customized investing plan.
That’s not everything, though. You’ll also receive 3 live coaching calls every month with Freedom Mentor’s instructors, 2 conference calls every week, and the capability to ask questions as well as instantly obtain responses from the mentors through an instant messaging platform.
There are a couple of very good features of the coaching program that help it stand apart from the competitors. The first feature is the range of helpful mentors and coaches it includes.
You won’t have access to just Phil Pustejovsky’s coaching as soon as you become a registered member. Freedom Mentor is made up of a team of mentors and coaches personally trained and mentored by Phil.
Such are the coaches you’ll be getting help from. You’ll get access to a consolidated pool of knowledge and experience from many of the best coaches in the field.
The second feature that makes this program so remarkably effective at helping ambitious realtors achieve success is its 50/50 split.
This essentially implies Phil shares every one of his priceless real estate secrets with you, and you share 50% of the profits from your first couple of deals with him.
When you’ve closed your first couple of deals, you can then proceed to become an independent real estate investor, armed with all the knowledge you’ve acquired from the mentorship program.
If you have a knack for teaching or mentoring, you could even establish your own mentoring program and show your students the actions required for success exactly like Phil does.
Some of Phil’s previous apprentices are currently running their own mentoring programs after turning into successful real estate investors.
Note: I know the program offering improvements every now and then as they continue to fine-tune it and improve it. Nevertheless, this is current as of this writing.
Summary – Action Takers Wanted
The Freedom Mentor coaching program is geared towards individuals who are 100% dedicated to becoming successful real estate investors. If you aren’t prepared to handle real estate investing like a business, this specific program might just not be for you.
The tools, resources, and mentoring provided in the program are sufficient to set you on the best path to financial freedom.
Considering that you’re splitting your first few profits with Phil, it is really in his benefit to make you succeed, and you possess as much determination to accomplish just that. It’s a mutually advantageous arrangement, so you almost can’t fail if you invest the energy and time to make this work.
Generally, the Freedom Mentor program is the best means to get started in real estate investing. You’re receiving all the help you want from a professional in the field. There’s truly nothing more you need to make your real estate dreams come true.
The goal of any real estate investor is to earn as much as possible with minimal risk. You can only achieve this if you know how to make smart choices. This means you need to know the three things that make a great real estate investment.
Try to see rental properties like a stock market. Most of us have a basic comprehension of the stock market and of the idea that you need to spend money to make money. However, whether or not stocks will perform well simply cannot be determined properly. Similarly, retirement calculators work on a guess of when we will actually die. If the estimate is wrong and you live longer, then you will end up broke before your death.
On a personal level, you need to learn to manage and negotiate and you need to have people skills. Practically, you must be able to do repairs, or have people on board who can do this for you. And, finally, hire a property inspector. In most cases, a real estate investor becomes a landlord. This means that you must learn about being a landlord and how to find tenants that are desirable. To make it in real estate investing, you need money to spend so you an make more. Generally, only those that have at least some starter’s capital are able to make it in this world. You are now ready to become an investor, which means you can start looking into locations. There is all sorts to find out online, through local libraries and on town board meetings. You must get to know the location as it is at present as well as looking into future development plans.
If you don’t have a lot of money to put down, you will find that it is easier to invest in rental properties if you are younger. Banks will generally want at least a 20% deposit before giving you a mortgage. 20% can equate to a lot of money, particularly if you will also need to do repairs. However, those who are younger can often get better deals on mortgages, as they have longer to pay them back. There are quite a few other things you need to look into. Finding the property is an entire enterprise on its own. If you want to find a property, however, you need to have the time to do a lot of research and you must analyze your options. You also need to spend some time looking for a realtor that can represent your interest. Thanks to their help, you should be able to find properties of interest. You will then also need to learn about and research what it means to be a good landlord, which takes a significant amount of time as well. However, overall, it is time well spent.
Short sales allow borrowers struggling to make their payments to put their homes on the market for less than they owe on the properties. When offers come in from buyers, the bank or mortgage company has to approve the deal. Lenders will only do that when a short sale costs less than foreclosing. What’s more, every bank or finance company with a lien on the property, including those who provided a home equity loan, must accept the terms or be paid off. That extra step, and the financial industry bureaucracy it involves, is why most buyers find short sales to be a long, aggravating effort. Here are four smart moves for navigating the process.
This type of home purchase is all about presenting the lender with a deal it can’t refuse. Banks and mortgage-servicing companies are most likely to approve buyers who: have a substantial downpayment, have been pre-approved for a loan, and place no contingencies on their contract, such as having to sell their current home before proceeding with the purchase.
Many banks have companies that manage their short sales. You need a pro of your own to match that experience and help you navigate the process. You should hire a realtor. A real estate agent who has done lots of short-sale transactions will know how much of a discount is common in your area, what you’ll need to do to get your bid accepted and when to walk away from a deal that’s not going your way. Any home that has spent several months on the market can indicate an unmotivated seller or an inexperienced listing agent.
Your agent should ask the seller’s agent if the bank has actually agreed to sell the home for less than is owed or if the seller is just hoping to do so. In the latter case, you could be wasting your time. Knowing how much to offer is key, but it’s not as straightforward as figuring your bid on an owner-occupied home or even a foreclosure.
Be aware that the listed price is only an estimate of what the seller and listing agent think the bank will accept. Oftentimes, listing agents market homes at a bargain price, only to have the final bank approval come in at a higher price.
Properties that have been listed for more than 30 days present an opportunity to negotiate with the seller. How much of a discount can you get? Location and condition make a big difference. Well-maintained properties in popular neighborhoods will have less of a discount than properties in poor shape in unpopular neighborhoods. For further reading, check out this useful article about Tips for Winning a Short Sale.
After you finally get a buyer, the hardest part after that is negotiation; its hard for both the buyer and the seller. Buyers will usually expect a back-and-forth negotiation, their initial offer will be lower than what they are actually willing to pay and lower than your list price. Once this happens, many sellers counteroffer with a price below their asking price, because they are afraid to lose the sale.
Human instinct says that they want to show they are flexible and willing to negotiate in order to close the deal. This strategy does indeed work in terms of getting the property sold, as thousands of sellers can attest, but it’s not necessarily the best way to get the most money for your house.
Instead of lowering the price to get closer to the buyer’s offer, you really should counter at your list price. Someone who really wants to buy will remain engaged and come back to you with a higher offer. Assuming that you’ve priced your property fairly to begin with, countering at your list price says that you know what your property is worth and you intend to get the money you deserve. See: Why Sellers Make Full-Price Counter Offers.
Buyers may be surprised by this strategy, and some will be turned off by your unwillingness to negotiate and walk away. But you’ll also avoid wasting time on buyers who only make lowball offers, and who aren’t so much interested in buying your property as they are in getting a bargain.
List the home on the market and make it available to be shown. Schedule an open house for a few days later. Refuse to entertain any offers until after the open house. Potential buyers will expect to be in competition and may place higher offers as a result. You might only get one offer, but the buyer won’t know that. On the other hand, if you get multiple offers, you can go back to the top bidders and ask for their highest and best offers.
When a buyer submits an offer that you don’t want to accept, you counter their offer. You’re then involved in a legally binding negotiation with that party, and you can’t accept a better offer if it comes along. In the interest of selling your home quickly, consider putting a short expiration time on your counter offer. This strategy compels the buyer to make a decision so you can either get your home under contract or move on.
Don’t make the deadline so short that the buyers are turned off, but consider making it shorter than the default timeframe in your state’s standard real estate contract. If the default expiration is three days, you might shorten it to one or two days.
When a buyer submits an offer and asks you to pay their closing costs, counter with your willingness to pay but at an increased purchase price, even if it means going above your list price. Buyers often don’t realize that when they ask the seller to pay their closing costs, they’re effectively lowering the home’s sale price. But as the seller, you’ll see the bottom line very clearly. For further reading, see: Home Negotiation Strategies – Zillow.
What are rent-to-own homes? Well, these homes are a way for people who don’t qualify for a mortgage, but want to still buy a house. This option is something that allows a person to lease the house with the option to buy it when the term is over.
The isn’t necessarily the most common way to buy a house, and the availability of homes being sold this way are rare. However, it can be a good idea, and some people do make it work. Here are some things that make it something you should consider.
Perhaps you are really close to being able to get approved for a mortgage, but you’re not fully there yet. You may have a low credit score. See: A Deeper Look into How Rent-to-Own Works. Or, you may have great credit, but low credit history. You might have just gotten an amazing job, but haven’t been there long enough for the bank to consider is a stable thing. You also might be self employed; even if you make great money, the bank still finds that risky.
These are all situations in which the homeowner can buy a house, but the bank hasn’t quite seen their potential yet. So, if you rent to own, you’re giving yourself a good two years to get your credit in check, while getting closer to owning the home. It gives you time to improve your credit score, or get a better job, or fix any blemishes on your credit report. Read: How Rent-to-Own Homes Work.
When you choose this option, you are going to be paying a lease option fee; you can consider this your deposit, which by the way, you won’t get back. So don’t put down a deposit unless you’re sure you want to buy the house; or, if you’re not okay with losing that money.
The downside of rent to own is that you’ll have wasted money on rent if you don’t buy it. You pay the owner extra rent each month; the regular rent, and then a smaller portion that is set aside for the downpayment on the house. So, if you don’t buy it, you lose that money as well.
Another downside to these situations, is that there isn’t a standard contract for this type of buying situation, like there are in the closings for the traditional method of buying. This means, that the owner can write whatever they want in the contract. You should consider consulting with an attorney if you are looking at a lease to own situation. For further reading, see: Rent-to-Own Agreements Can Benefit the Buyer and Seller.
When a buyer is viewing a home, they should feel incredibly comfortable. They don’t want to feel like ean intruder. This is just one of the many reasons the seller shouldn’t be there when their home is being viewed. They should be able to open and look at your closet, without feeling like a thief, or something else uncomfortable. They will need to look under your sofa, look in your medicine cabinets and drawers, and many other things. See: The Worst Things to Say to a Sellers Agent.
Honestly, you should be worried if you have a buyer that doesn’t want to do these things, because that means they aren’t serious about the house. For example, when you’re shopping, if you take the item off the rack to glance at it and put it back, you aren’t serious. It’s when you take it off the hanger, study the fabric, and try it on that you mean business.
If the seller is present, the buyer won’t be able to do these things because they’ll feel uncomfortable with you watching them do it. When the seller is present in front of a buyer in their home, they both are losing. The seller is probably losing a buyer, and the buyer is losing a house that they may have really liked. The buyer never stood a good chance, if you were there. Check out: 14 Steps to a Flawless Open House.
Another reason the seller shouldn’t be there is that they end up talking too much, by accident. It’s in a persons nature to fill uncomfortable silences with noise. And unfortunately, the seller may end up revealing things about the house that the buyer shouldn’t have known about. For example, you might talk about how great the neighbors are. Then, if the room becomes too quiet, you might accidentally throw in a comment about how rude one of them is.
It’s also possible for a seller to damage the buyer’s ego. For example, when a buyer asks questions, the seller could respond in a way that will hurt the sellers feelings. For example, if the seller says “yes, the living room was orange when we moved in, which was god-awful, so we painted over it, thank goodness!” The buyer might have wanted to actually paint the room orange. You never know what you’ll say that might turn them off.
There are not many situations in which it is beneficial for a seller to be present at an open house, or viewing. There is no excuse for a seller to be there. Even if you take the dog for a walk, or go to lunch, it really doesn’t matter where you go. Just don’t be there! For further reading, see: The Dirty Secret About Open Houses – They’re Not For Selling Houses.