In most areas of the US today, homeowners are enjoying a seller's market.
Even with a highly active market however, sellers who do not understand liquidity are leaving money on the table.
What many home sellers fail to understand is that they should be getting top dollar right now for their homes. Most do not.
A lack of understanding of what they should do and what they should expect make for a continuous stream of sellers who aren't getting the full equity from their homes.
It really shouldn't be this way.
I was recently asked about the average market time (or time on the market) for homes that have sold in Tallahassee.
Now, I have written on this subject many times in the not-so-recent past, but I have never actually gotten around to providing a definition of market time in real estate, and it is a topic of interest for many people who are thinking about selling their home.
After all, most people who are planning on selling a home must also make arrangements for where they will next live, so understanding time on the market in their area is a critical component of their move.
The History Of Market Time Measurement
Back in the days before the internet, we needed to know the average time on the market because it literally took months to properly engage all...
If you have looked at commercial or large scale residential real estate as an investment, you probably have been schooled in using a cap rate analysis for the preliminary selection of property.
If you haven't, then you might be curious about what the "big dogs" are doing, and you might want to know how to use this magical formula for yourself one day. Just yesterday, I wrote about an apartment for sale in Tallahassee, and I referred to "cap rate" many times without giving much explanation of the concept.
Well, if you fasten your seat belt, I'm going to show you why the sophisticated investors are getting burned, and how you can use a real estate cap rate analysis as it was intended.
I was recently analyzing a real estate investment with some of our agents and I realized I could produce an informative post about real estate investment terminology.
I am combining a real world example of an apartment complex that is for sale with the structure of a "Real Estate Investing 101" type of post. By doing it this way, I bet even the most experienced of residential property holders will learn a thing or two (if not, I will refund your full investment :)).
In order to begin, we will start at the beginning of all income producing property analysis ... The Real Estate Stack.
What happens to home values when high end homes are oversupplied, mid-range homes are at equilibrium, but low end homes are oversupplied - because that's what we are seeing for real estate in Tallahassee.
I have not seen the term "compression market" used before, but it seems quite fitting when homes valued in the mid range are feeling opposing pressures from their environment.
Higher priced homes are dropping in value, creating more competition, but lower priced homes are in a similar situation. Homes valued in the middle are "doing fine," but anticipating values in the near future requires serious study. If you want to sell a home, you had better properly analyze...
A few weeks ago I wrote a blog post titled Does Credit Repair For Homebuyers Really Exist? which was the first in a sequence of posts that will serve as a case study about credit repair services.
With the high number of people who recently had to sell a home as a short sale, the US is facing an epidemic of credit disrepair among people who formerly proved to be highly credit worthy.
I want to find out whether or not credit repair services actually help you improve your credit ratings, or if they are just selling snake oil.
Credit Repair Case Study Review
As a reminder,...
Real estate market cycles come, and real estate market cycles go, but are you curious at all about how to use an understanding of current market conditions to make money in real estate investing?
I have been discussing the formation of a real estate hedge fund (or reit) with investors for the past few years, and we all finally agree that times are very favorable for growing positions in residential real estate holdings. This conclusion was not a "gut feel," rather it was determined through the scrutiny of real estate supply and demand and the current phase of the housing market cycle.
Long time readers of the Tallahassee Real Estate Blog know that we love questions from readers, and today's post is geared to answering one about the definition of distressed property (which we provide in detail below).
Long time readers of the Tallahassee Real Estate Blog know that we love questions from readers, and today's post is geared to answering one about the definition of distressed property.
Reader questions are so valuable because it gives us the guidance that we need to focus on issues that are most relevant to people selling a home in Tallahassee and buying a home in Tallahassee today. So please keep them coming!
Now, back to a timely question about the definition of distressed property ...
The General Definition Of Distressed Property
Have you ever been looking at homes for sale online and seen the term "short sale potential" used with a listing?
After our recent post on how to buy a short sale without a lot of frustration, a few people contacted me with questions about the meaning of short sale potential and why they see it on so many homes for sale in Tallahassee.
The answer is short and simple.
Short Sale Potential Defined
Whenever I speak with a home seller, one of the first things they want to know is the market value of their home.
In order for them to understand how we arrive at the market value, I try to get them to think like a homebuyer.
There are more sellers than buyers in this market, so if you want to sell a home, you better understand exactly what your buyer is going to be doing and seeing when they make the buying decision.
The three mistakes to avoid when determining the market value of your home relate to the emotional posture of most sellers. They come up with reasons why they think their home has a certain value, but they do not consider that those reasons might not be as relevant to the prospective buyers of their home.