Happy New Year to You All!!
Hope you all had a wonderful time with your families and friends over the holidays. The year of 2009 (Year of the Bull) will present plenty of opportunities and challenges for the home sellers, buyers and investors.
An optimist stays up until midnight to see the new year in. A pessimist stays up to make sure the old year leaves. ~Bill Vaughan
As we approach 2009, there are a lot of uncertainties and fear in the market. I think of the old quote: "Nobody knows Nothing" . In the end, it is not how the market behaves but it is how you behave.
Investment Opportunities in 2009
For those who are planning to participate in the Triangle real estate market in 2009, you need to have a planned and researched action steps to a better 2009? Here a few modest tips to become more effective within this type of market:
1)Be prepared to aggressively seize opportunity. In this market, positive opportunities are far out numbered by the negative opportunities. Try not to let the positive opportunities pass you by.
2)When you plan your detailed action steps, include both positive contingencies and negative contingencies for yourself and/or business models.
3)Understand the latest market conditions before acting, and be reminded that you need to be paitent if you are the sellers and need to be agile if you are the buyers or investors.
4)In any case, make sure you have the right strategies in place before any of your actions. Consult a real estate professional as part of your planning and preparation.
Challenges and Opportunities with Foreclosure Properties and Listings
In the last several months, I had lots of my home buyers and investors who were interested in buying bank owned and foreclosure properties. Honestly, some properties in that segment of the market were good buys and the house conditions were good. The banks or mortgage companies priced them to sell. For those properties, they are typically sold within 1 month or as soon as they are listed as there are many other investors on the look-out for the deals.
On the other hand, there were some foreclosure properties which we may surprise by their conditions and there were quite a few eye opening experiences for my buyers!! There was one house which is only 3 years old but we had to fled within 5 minutes. Because once we opened the door, we not only saw lots of trashes but also found at least hundreds of cockroaches inside the house and some of them are still moving around.
Another bank owed property which all the carpets, vinyl floors and sheetrock were removed (because of the mold and water damages). No one could imagine such conditions of both houses from the outside. But most foreclosure listings only shown the exterior pictures and sold AS IS.
I normally recommend to my buyers who are interested in buying those bank owned and foreclosure properties that they only buy those in fairly good conditions and are priced competitively. Also, hire a home inspector to inspect the property as well as a general contractor for estimating the cost of repair.
Aside from these opportunities, for those who have higher risks tolerance level and have experiences in home remodeling and reparing, buying a property from auction might be another viable opiton for a deal. Of course, higher potential financial rewards comes with potential risks and headaches from buying a property in an auction. Feel free to contact me if you are interested in this.
What to Expect if You Are Planning to Sell in 2009?
With the rise of bank owned and foreclosure properties in the local Triangle market, it will continue to put pressure on the traditional resales segment. The uncertainty of the national economy and job security will continue to be a drag for those who would trade up from their starter homes. In general, the local Triangle market is expected to remain the buyers market in 2009 especially in the first half of 2009.
If you are planning to sell your house in 2009, consult with a real estate professional to get a CMA (Comparative Market Analysis) for your neighborhood and get the latest statistics in buying/selling trends so you can set the right pricing strategy and maketing plan to reach out the propsective buyers and investors and sell your property.
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