Ultimate Real Estate Newsletter 5/27/16 Edition

Unlimited Real Estate News 5/20/16 Edition

Investors Still Active Despite Distressed Inventory Decline

Great article from http://www.dsnews.com/news/ by Brian Honea that talks about the cash buyers in today’s Real Estate market being the lowest since 2008. That is great news to me, because when you do get a deal it is almost always a home run for investors.

““REO sales tend to have higher cash sales because of their discounted price and greater investor interest,” said Frank Nothaft, Chief Economist with CoreLogic. “As the foreclosure rate and REO sales share has fallen, that has helped to reduce the cash sales share. We expect the cash sales share in 2016 to be the lowest since 2008.”

Investors need seasoned Investment Property Realtors that can still find great deals to buy.  I am currently looking for some investment real estate for clients.  It is an everyday event and you have to look at almost every single property(Usually 200-300) that comes on the market.

For example I was looking for a water view property for a client and saw a 1 bedroom 1 Bath 1400+ square foot cluster home in Bay Village Ohio. That did not make since having all that square footage with only 1 bedroom and 1 bath. I viewed the property and it was a two bedroom 2 bath property it had been described wrong.  It was really under priced and my client bought it. That was 3 years ago and today the client has a 60% equity position. You can say he is very happy with his purchase.

“We’ve now seen 44 straight months of tight supply,” Realtor.com Chief Economist Jonathan Smoke said. “In these conditions, home values have strong support, but potential buyers will continue to face challenges finding a home for sale that meets their needs. The biggest challenge to prospective buyers is tight supply, and that’s why we’re seeing the age of inventory drop dramatically. At the same time, we estimate that sales to first-time buyers are up 11 percent so far this year, and they comprise the largest source of this year’s growth in sales.”

The inventory will continue to be tight this year and builders are not building fast enough to keep up with the pace.  With the REO Properties getting tight don’t you think it’s time for you to get a seasoned Realtor that has helped clients buy and sell over 400+ properties? Call Brett 216-703-5740216-703-5740 Howard Hanna Ohio and 602-363-6551602-363-6551 West USA Realty

What is your property or Real Estate portfolio worth on today’s market!

I was in a Realtor meeting yesterday and we discussed the areas that were going up in sales.  Some of the areas we talked about I was presently surprised. Homes in a lot of areas are selling at a brisk pace.

During the summer months homes tend to sale at a rapid pace in a great market which we have now. I do have great sells in the winter also, but summer does seem to have a bit of an edge. Let’s look at some cites.

This is all for the month of April the 16th day 2016.  The information is from myreport. The listing prices are based on what is currently active on the MLS on 5/25/16.

Lakewood Ohio is a very hot area that the listings are very low if you have a property in this area it might be a great time to sale. Homes sale prices in the mid $100,000’s and up to a million

North Olmstead Ohio is also a very hot area that has few listings and a lot of buyers.  Out of the new 63 listings they have 56 more pending. Those are excellent numbers. Home sale prices are in the mid $100,000’s to the mid $400,000’s

Parma Ohio is also a extremely hot market also with 202 new listings and 175 pending. Low Low inventory. Homes sale for $50,000 to the mid $200,000’s

Bedford Ohio is also pretty solid on the sales end.  50 new Listings and 22 more under contract. Home sale from $50,000 to the mid $100,000’s.

Chagrin Falls Ohio a higher priced area has 46 new listings and 14 went under contract.  Might look there if you are buying. Homes sell for in the mid $100,000’s up to the mid $1,000,000’s.

Solon Ohio is also a very hot market.  It has new 109 listings and 52 went pending. Sales are in this area rand in the $100,000’s all the up the the mid $1,000,000’s

If you have a home you need to sale please call Brett 216-703-5740216-703-5740 Howard Hanna Ohio 

Existing-Home Sales Rise in April for Second Straight Month

This article comes from http://www.realtor.org/ by Adam DeSanctis that points out were existing home sales are per region.

Lawrence Yun, NAR chief economist, says April’s sales increase signals slowly building momentum for the housing market this spring. “Primarily driven by a convincing jump in the Midwest, where home prices are most affordable, sales activity overall was at a healthy pace last month as very low mortgage rates and modest seasonal inventory gains encouraged more households to search for and close on a home,” he said. “Except for in the West — where supply shortages and stark price growth are hampering buyers the most — sales are meaningfully higher than a year ago in much of the country.”

The inventory will always be a big factor when it is this low.  In the Phoenix market it is very hard to find anything within 45 minutes of the downtown that is affordable. The inventory is low and there are few areas that you can have new builds.  If you go out more than 45 minutes then you will see the new home subdivisions. I looked at homes that were 1600-1700 SF in Scottsdale that started at $500,000+

In Cleveland Metro the inventory is 500 less homes to sale than last April and sales and homes sales are up 20.3% from last April. This puts a sever pressure on buyers to get homes.  I was doing a open house yesterday and I heard the potential buyers talking on how they have looked at homes and now they are sold. I of course told them to get a Realtor to get the properties in their price range and area faster. The speed of looking for a home is a big factor on if you will get it or not.

“Looking ahead, with demand holding steady and supply levels still far from sufficient, the market for entry-level and mid-priced homes will likely continue to be the most competitive heading into the summer months,” says Yun”

That is a great sign that buyers are trying to enter the market and purchase a home. Realtors are really needed in this market to get the homes in today’s high speed market.

“April existing-home sales in the Northeast climbed 2.8 percent to an annual rate of 740,000, and are now 17.5 percent above a year ago. The median price in the Northeast was $263,600, which is 4.1 percent above April 2015”

You can see our region in the Cleveland Metro area is really up and the prices are going up at a reasonable rate considering today’s market. I had a client in last week that could not believe how nice the homes were in the Cleveland Metro Market.

This is a great time to buy Real Estate to live in or as an investment.  You really know the better areas for equity growth in this type of market. Call Brett to get the best areas for your home and or investment.  Call 216-703-5740216-703-5740 Howard Hanna Ohio and 602-363-6551602-363-6551 West USA Realty Arizona

Inside the new hotel that changed Cleveland’s skyline

This article comes from http://www.crainscleveland.com/ by Stan Bullard talks about the new Hilton Hotel that was just finished in Cleveland.

“But the largest hotel in the city with 600 rooms and service areas to support them brings a new scale to town, especially combined with the magic of design and a $272 million budget. After all, that’s where the heads will go into beds in the quest by Cuyahoga County and City of Cleveland leaders to give the city a convention business of scale with a county-funded hotel”

That is a pretty big project considering is $272 Million dollars and it shows that Cleveland is getting ready for business.

“Although all eyes seem focused on the Republican National Convention in July that the hotel played a key role in landing for the city, Agosta thinks of the hotel’s role in the city for the long haul.”

“We’ve sold at a high level of occupancy after the convention,” she said. “We’re already bringing many meetings to the city it did not have in the past because it did not have the rooms.”
This type of investment $272 Million also shows that the Free market has the confidence in the local Cleveland market. The hotel is not just for the average business stay is has luxury suites that are there for the more affluent. This helps our metro areas grow in population and real estate prices.
”  Second, the 37 suites promise to be a treat. That is, if they all meet or exceed the standard at the one bedroom Ambassador-level suite that Hilton staffed showed off to the media in a first-look on Thursday, May 19.”
“That one-bedroom baby has not just one bathroom, but two. And a dressing room, besides, of course, the bedroom. There’s even a table seating eight in a dining area that opens into a living area decorated with contemporary furnishings.”
Doing business is important in every city, having a grand entrance to the city through these types of hotels only adds to the business and there experience in Cleveland. Call Brett to get all your real estate needs 216-703-5740216-703-5740 Howard Hanna Ohio 

 

Short Supply Causing Faster Price Appreciation

This article comes form http://www.dsnews.com/ by Scott Morgan that explains how the short supply is effecting home prices.

“According to the report, while the number of houses for sale nationwide dropped by 3.4 percent over the past year, housing prices rose almost 5 percent. Last year, Zillow predicted a 2 percent growth by this April.”

The low inventory is going to effect the equity position in many homes. I have a client who is purchasing real estate for income in Phoenix Arizona.  His team has purchased 2 income properties and are looking forward to there future equity in these properties.  I should also mention they did this in The Denver Colorado area and were very successful. I should also mention those two homes create almost $2000 a month net income.

“Unsurprisingly, buyers looking for higher-end homes will have more options, and those looking to buy less expensive or entry-level homes will find an increasingly limited supply and rising prices. The number of entry-level homes for sale is down almost 8 percent over the past 12 months, and this coupled with still-low mortgage rates and increasing wages nationwide are creating stiff competition for homes, the report states.”

That to me is usually the case in most states excluding places like New York City were the starting prices on apartments are north of a $1,000,000. Getting a home today is much harder to do than it was and that is creating stiff competition on buying homes and investment homes. That is not a bad thing, because if you do get a home you know what pressures there are in the market and how it will effect your property value.

“The struggle will continue for home shoppers this summer,” said Zillow Chief Economist Svenja Gudell. “New construction has been sluggish over the past year; we’re building about half as many homes as we should be in a normal market.”

The new home market will continue to struggle to build median priced homes.  The reason is all the new regulations that have been made into law is creating a 30% increase in the cost of homes. That is basically over head and the builders have to comply.

Buying a income property today may be the best choice you have made for your future nest egg. Call Brett 216-703-5740216-703-5740 Howard Hanna Ohio and 602-363-6551602-363-6551 West USA Realty Arizona

Looking for a Luxury home? Good time to do it

The luxury real estate that is over $500,000 million dollars is a being purchased at great prices right now. All these homes are in very nice upscale areas that anyone would love to live in. Amenities such as shopping, golf, Schools and great community activities are all close by.  These are custom homes that are set on large lots and demand attention.

Gorgeous 5-bedroom, 5-full bath home in sought-after North Woods! Nestled on more than an acre on the cul de sac, this special home offers privacy and great nature views! $729,000 4281 SQ Feet

Quality & charm abounds in the custom Ken Payne home. Entering through a double foyer w/French doors, the foyer welcomes family & guests. Exquisite mldgs, gleaming wd flrs & attention to detail is evident throughout. $549,000 4539 Sq Feet 

Spectacular Contemporary Colonial with lots of updates throughout. Enter into 2 story foyer with grand staircase & magnificent hardwood floors that extend throughout most of first. Open floor plan with wonderful flow and amazing natural light; great for entertaining. Updated Chefs Kitchen with high-end granite & stainless steel appliances, large island w/cook-top, built-in desk/work station, huge walk-in pantry and matching custom granite topped table. $549,000 4942 Square Feet

Call Brett 216-703-5740216-703-5740 Howard Hanna Ohio  to look at these fabulous properties if you are in the market to really step up into Luxury Real Estate with all the bells and whistles included.

 

Just put under contract Income Real Estate in Phoenix

Just picked up a another income property in the Mesa Arizona area.  These properties are ready to go, and we have them inspected before you purchase in most cases.  They need little or no fix up.  This property is in Mesa Arizona the second biggest city in Arizona.  The home was built in 2002 it is a 3 bedroom 2 bath home 1357Sq feet.  These properties get quality tenants and are low maintenance.

Lets go over the approx numbers on this property.  Cost if this property is $175,000 and the projected rent is $1300.
Taxes___________________$ 81 a month
HOA___________________$  72 a month
Insurance________________$  60 a month
Property Management______$130 a month
Net proceeds_____________$ 957 a month.
Buying a home warranty will also help defer the maintenance cost for these types of properties. We also can assist in management of your property if needed.
Call Brett 602-363-6551602-363-6551 West USA Realty Arizona

Call Brett 216-703-5740216-703-5740 and 602-363-6551

Arizona Discount Listing Service Starts at $995

Listing Service Ohio Howard Hanna top 5

Check out my YouTube Channel

Increasing Real Estate Sales in Many cities around Cleveland

In a lot of the cities in the Cleveland Metro and the Phoenix Az area home sells are through the roof.  Understanding those areas are very important to get to the desired price of a home. Let me give you some examples….

Chagrin Falls Ohio has a huge increase in homes being sold this quarter and is a very hot area to sell real estate in.  I have all the reports on areas that really are hot.  My clients stay in those areas and that is were I look and get real estate.  I have a lead on one today that I have to go out and look at.

Also my Howard Hanna office is the #1 selling office in Howard Hanna.  That is also crucial in the marking of my listings. West USA Realty has a very detailed marketing plan that gets the information on your property out almost immediately to a lot of sites.

I also do live marketing at my offices. For example I have 4 homes that will be coming on the market in a 3-4 weeks.  We have an office meeting every Tuesday and are able to advertise our listings in front of a lot of Realtors that have buyers for some of those areas. This is a great way for me to market my homes.

With the market as hot as it is and the inventory low, marketing is a key to getting multiple offers in on a property. Getting the most for my clients home is my only concern.  That is why I take the first 4 hours of everyday to market my listings.

Marketing a property even in a hot market is so important to getting every potential buyer to look at my listings and help get the top price for my clients properties.

Want a Free Valuation on your property. Call Brett 216-703-5740216-703-5740 Howard Hanna Ohio and 602-363-6551602-363-6551 West USA Realty Arizona.

The Top 5 Reasons You Should Not For Sale By Owner!

This article comes from http://www.keepingcurrentmatters.com/ by KCM Team.  It talks about some of the things that happens in a transaction. I going to talk about a few of these reasons.

“1. There Are Too Many People to Negotiate With
Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner:

  • The buyer who wants the best deal possible
  • The buyer’s agent who solely represents the best interest of the buyer
  • The buyer’s attorney (in some parts of the country)
  • The home inspection companies, which work for the buyer and will almost always find some problems with the house
  • The appraiser if there is a question of value”
I know that when I have buyers they sometimes want to get more than they can.  They don’t always understand the pricing.  They may pay to much and or lose a deal because they did not offer enough. It is really important to understand values and how the area is selling.
When your dealing with home inspectors it can be challenging when items are not explained, For example a heater that is old but works, or any other part of the home that the inspector says is out of it’s useful life.  What do you do if it is still working fine?  You need a clean inspection to get a home warranty that has no pre existing conditions.
Meeting appraisers at the house and giving them comps is very important in a lot of neighborhoods. I know in one case it saved my seller $54,000 with me getting the appraiser more information on the property that he did not have.
“2. Exposure to Prospective Purchasers
Recent studies have shown that 89% of buyers search online for a home. That is in comparison to only 20% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?”

This is a huge factor in selling a home.  I go to a meeting at my office every Tuesday to market my listings.  I pay Zillow to have premier listings and have a ton of sites that do the same.  It is all turn key for me. I also keep up with all the new technology to get even more exposure for my listings.

Most for sale by owners do not have a clue how to market a home. This is why Realtors are so important to get a home sold.

“5. You Net More Money when Using an Agent
Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.

Studies have shown that the typical house sold by the homeowner sells for $210,000 while the typical house sold by an agent sells for $249,000. This doesn’t mean that an agent can get $39,000 more for your home as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense.”

This is the big one Realtors know the values and getting more potential buyers to your property helps get more money in sellers pockets. Saving commissions actually cost you money, buyers are sometimes savvy and negotiate lower prices. I had a buyers agent tell me that one of my listings were overpriced $20,000. After the brief conversation I kept my price the same.  It sold 7 days later for my listed price making the seller $20,000 because I was there to take care of that buyers suggestions.

Call Brett I have done 100’s of transactions and want to be your Realtor for your real estate portfolio. 216-703-5740216-703-5740 Howard Hanna Ohio and 602-363-6551602-363-6551 West USA Realty Arizona.

Looking at a property to Fix and Flip?

When your searching for a property to buy to fix it up to sell it, you need to understand the neighborhood upgrades in homes.  You also need to look for and differences in upgrades that the home your looking at and the sold homes have.

For example is the home facing a busy street, On the water, on a golf course, behind a commercial building? Those are some of the things you need to consider on the exterior.

On the interior do you need Granite, Tile or wood, new bathroom, what type of cabinets, color of the interior, brand of appliances?

If your doing a home look at the properties that have sold in your area and compare the homes. Look at their interiors and upgrades they have.  You will want homes that have sold in 60 days or less in this market. If you are doing high end real estate you may have longer days on market.

For example on the appliances is it alright to use GE appliances or do you need Wolf appliances?  You may also need a sub zero refrigerator in some homes.  Those items have big price differences.

You don’t want to spend to much or to little. You need to get a quote and budget each property you do. Having all the upgrades before you start helps you have all the information for your contractor.

You also need to know where to get the materials at a reduced cost.  For example roofing material can cost a lot if you do not know where to get it.  You can also save money on lighting and other types of materials by just looking on the web and discount stores like Tuesdays.

Finding the perfect property is only the first step.  Understand what the property need to have an look like before you start the project.  Getting that information is crucial to being successful in the buying and selling real estate. Brett Young  216-703-5740216-703-5740 Howard Hanna Ohio and 602-363-6551602-363-6551 West USA Realty Arizonia

Buying Real Estate and showcasing is through weekly Videos!

These are properties that we are currently doing and as we do rehab them I advertise them through different video channels. It is becoming the way most potential buyers preview properties before they actually buy them. This helps get the word out and network with these videos.

Two of properties we did this with were sold by these videos before they were finished. These videos also update my clients and let them know what is going on with their properties and how they have progressed during the week.

The videos are great to have for appraisals also.  Having all the rehab that was done on video and pictures helps get the values needed for these properties. They are important to have also just for the history of the rehab and being able to go back at anytime to view them.

I personally back up every video and pictures to keep om my vault in case my clients need them for anything. This is one of the many services I include with every purchase.

Having this service included in your buying process and if you are selling is a huge benefit to getting more money out of your property.  Check out this weeks updates and call Brett 216-703-5740216-703-5740 Howard Hanna Ohio and 602-363-6551602-363-6551 West USA Realty Arizona

Don’t be one of the should of could of investors

I listen to a lot of people talk about real estate to me.  They always mention someone they know that bought real estate and is making great income by leasing or selling the real estate.

My realtor friend in Arizona who is showing a client around, mentioned that the client had several holdings in another state that he has owned for quite a while. His client told him that as the leases were ending he was going in them and updating them to sale.  As he was selling them and making a nice profit, he wanted to buy in another state in order to lease them and catch the income.  I am sure that he will one day sale those properties also.

These types of investors start out with some leveraged properties that cash flow and mature into cash buyers.  Some of them buy a mixture of real estate that is both flips and income real estate.  It really varies from that investors needs,  I know myself I am selling some of my rentals this year and making some great money.  I am looking at many different real estate deals that I might buy and hold or sale.

Getting started with real estate that is going to get you income is very important.  I had a client I talked to yesterday, and he wanted to purchase a property for income. The property he wanted was not a great property. I explained to him that tenants and up keep would have a very negative impact on their profits.  They also did not have an exit strategy to sale that property in the future.  Future equity growth in that area was very low and or non-existent.

Buying a property to flip or lease needs to be able to do both.  Your income property should also be in an area that has sales. Meaning that you may buy a home in an area for income and know that later you can resale it for a profit. Income properties and Flip properties have different levels of rehabbing. Income real estate would be the less expensive rehab. Knowing the the upgrades to get to your target price takes experience.

Thinking of your future needs and income? You want to have some quality real estate in your portfolio.  Call Brett 216-703-5740216-703-5740 Howard Hanna Ohio and 602-363-6551602-363-6551 West USA Realty Arizona.  I can help guide you in the right direction.

 

 

 

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