2014 Real Estate Market – Mortgage rates will continue on an “upward turn.” Foreclosures will hit the “caution” sign (think slow down) but declines in those who can afford to buy home or condo will take a “nose-dive.” This will mostly be due to the fickle interest rates that will continue to hover around 4.32 percent – zero points for 30 year fixed; 15 year fixed at 3.36 percent – zero points, and finally a 5/1 adjustable rate mortgage (ARM) at 3.50 percent. This loan type can be risky and is not advisable.
New Home Ownership – As pointed out in the above paragraph, it won’t be the mortgage loan interest rates that will scare many potential homebuyer wannabe’s, it’s the uncertain economic condition facing Fortunebuilders, and millions of investors in this country. Jobs are few and far between and folks are more concerned about getting proper health care for themselves and their families. However since this is an Senate election year, you should be able to see some blue skies and green lights, depending on who gets elected.
Refurbishing Your Home To Increase Prices – This is an excellent idea for any strapped homeowner who needs a quick sale. In some states the real estate market is as soft as a jelly donut but some clever planning can be enticing to a buyer. The kitchen and bathrooms are your targets. It’s a fact that a women buyer will inspect these two places in your home, and if they look like they haven’t had a cleaning or fixture replacements since Bush was president, you had better get Fortunebuilders “crackin.” So take a notepad, walk through all the rooms to see what can affordably be changed or fixed. Then go stand on the sidewalk outside and ask yourself: “would you buy this home?” If not, fix what’s wrong.
To FLIP or not to FLIP – That’s The Question” – Times are tough and flipping today can be a risky process in a down-market. But if you can find the right deal in the right subdivision that is convenient to shopping, schools, highway access, parks and only needs a “cosmetic touch” you may have hit the jackpot. Actually driving around a middle-class neighborhood near where you live presents the best options for “flipping.” You’ll already know if homes are selling for and at what price regardless of whether it’s a realtor sale or FSBO (for sale by owner). Ergo, if you feel confident in your ability to do the work; you will reap the proceeds. But remember if you have to borrow money to “flip” and hire sub-contractors to do the work, butt out! The money you make plus the headaches is not worth your time. Sometimes you’re the cake; sometimes you’re the frosting.