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Saturday, December 29, 2007

Bay Area Real Estate- No Bubble Burst (Georgian Bay Cottage Real Estate)

(Georgian Bay Cottage Real Estate)


Georgian Bay Cottage Real Estate Oakland California real estate shot through the roof during the period from 2001 to 2005, with appreciation reaching 120% in some areas. Homes were routinely selling for 60-100k over asking price and more! It was not uncommon for a desirable property to fetch 30-40 offers. I remember one home in the Oakland Hills went for over 300k over asking price!




However that type of market by nature is not sustainable, and the current market is proof of that. Starting in early 05', us Realtors started seeing a noticeable slowdown in activity, which has continued to this day. The ironic thing is, prices are still high. They have taken a slight dip(approximately six percent) in the last year, but our median price is still around 500k.

There is much more opportunity for buyers right now, because there are plenty of homes on the market which means buyers have more choices and more negotiating power.

Sellers have had to come to the realization that they can't just get any price they want for their home, and the days of putting up a sign and the next day it's sold for 60k over asking price are OVER. Sellers have to do more to prep the home for sale now, and staging is much more common. The most important thing of course if price though. I don't care how nicely a home is staged, if it is not considered a value compared to the others in the area it WON'T SELL. This is, unless your home happens to have historical significance or is in an especially desirable area.

One example of an exception to the rule was a house that just closed last week in Piedmont. It had great square footage, (I personally viewed it on our office tour) but it was in need of a lot of TLC. The bonus was that it was in a particularly exclusive neighborhood in Piedmont and had been designed by a locally renowned architect. The agent also had contractors and interior designers at the open houses to help give buyers ideas. The home went on the market for $1.4 million, and ended up selling a few weeks later for over $1.7 million! Yes, 300k over asking price!

However the reality for most sellers of Oakland real estate today is that they need to price their home attractively and prepare the home for sale if they expect to get it sold.

(Georgian Bay Cottage Real Estate)

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Is Georgian Bay Cottage Real Estate Risky Business?

(Georgian Bay Cottage Real Estate)

Georgian Bay Cottage  Real Estate Bay Area real estate is an ever-increasingly popular investment for prospective property or home owners in California. The location is prime, and the price is always right. Whether it is due to the area's oil-rich location near the shore, the beautiful weather, the breathtaking views, or the pocket-fattening constant tourist traffic in San Francisco, the Bay Area is a very popular choice of locations for both prospective real estate agents (who are seeing dollar signs, most likely) and prospective purchasers.


Since 2002, property values in the Bay Area have been rising; increases in interest rates have caused the actual cost of some properties to go up as much as 40%. For this reason, many people are selling their properties at extremely high prices, equaling higher commissions for the real estate agents who receive a portion of the property's purchase price as payment for their services. Just as there are people who are selling their properties at high prices, there are just as many investors out there who are willing to purchase these slightly over priced homes, office spaces, warehouses, or other properties just to turn around and sell them back when the values shoot up again. It could be said that, while all investments are risky (especially when it comes to real estate) the values of real estate in the Bay Area is usually easily predicted, and is somewhat a safer and wiser investment than other real estate opportunities that may come your way. The average price of a home in the Bay Area is in the neighborhood of anywhere from $500,000 to $650,000 and while your investment could backfire should these properties drastically decrease in value, smart bay area real estate investors wait to sell until the prices go up, maximizing the profit margin they could make off of the sale.. Of course, breaking even never sounds as good as making a hefty profit in your financial endeavors, but as an investor in Bay Area real estate using your head can have you doing well for yourself most of the time if not all of it; it is important not to forget that a reserve of start up funds is always necessary to enter into such a hefty investment as Bay Area real estate.

Bay Area real estate investors are beginning to start up a pattern of spending beyond their means when it comes to these high-priced properties. Federal guidelines state that one should not take out a mortgage that equals more than 30 percent of your total monthly income; most wise people would take such legally mandated "advice" to heed, but more and more people are throwing monetary caution to the wind and, in attempts to catch a prospectively profitable investment opportunity many do get caught up in the ever-increasing housing market crashes, losing money in the end. Of course, some people are more affected by this than others.

Bay Area real estate is a great investment for the smart investor, who knows the market well and pays attention to the fluctuations in property values.
(Georgian Bay Cottage Real Estate)

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