Bloft

I have not been updating the blog lately. The new office and all the listing we have are taking all my time. Plus I am always put this task for last.
here is an update on what is going on in the Real Estate and Loft world.

1) We are in a buyer’s market; buyers have most of the power now. There are great deals out there and you can find most of them under Bank Loft Deals on my website. I would say that 95% of properties that are selling are REO's and Short Sales. Is really hard to sell a property that is not in these two categories unless you price at close to their prices.

2) The market will eventually turn. How long is going to take is hard to tell, but if you are buying for the long term you can’t go wrong. Interest rates just reached another all time low and believe it or not qualified buyers can still get loans with just 3% down (FHA Loans).

3) Even though the market is slow and there is a lot of inventory, properties are selling with multiple offers and bidding over asking is very common. Especially on the places priced below market.

4) Loans are taking longer to get approved and 30 days escrows are hard, most of the time you would need at least 45. Is very common for the bank to send two appraisers to the same property.

5) Short sales take forever, but they are great deals. Make sure that you work with an agent that is familiar with them. They are different and some agents have no clue and can jeopardize the whole deal. We have closed several short sales and have a 90% approval rate. If you want to learn more you can go to: www.loftway.com/shortsale101

6) REO's get approved faster and usually are a better situation, but is hard to tell if the Loft you like will ever be a REO, most likely will be sold as a Short Sale before. Be prepared to pay more closing costs than a standard deal. If you see a property that is priced as a REO or short sale, you can close faster and save money on closing costs and most likely be able to negotiate more.

7) There are a lot of places to choose from, but if you take too long the Loft you like might be gone. There are motivated buyers out there.

8) If you buying as an investment to rent out, you can actually break even in some cases if you put enough money down. The best buildings for investors are the ones approved for the Mills Act (reduced property taxes). Rentals are also going down, but you can still make money.

9) Is very common to see lawsuits and HOA's and buyers suing the developers, in a down market everybody is unhappy and wants to be compensated. If you are buying in a building with a lawsuit, it could be much harder to get financing and sometimes you can only buy cash.

10) If you own a Loft and your loan is higher than your place is worth now you have two choices, Rent until the market goes up if you can afford or do a short sale. The Short Sale is a much better solution than Foreclosure.

11) People can make money in any market, you just need to adapt. In my opinion Real estate still a better and safer investment than stocks. Buying in a good building and having a knowledgeable agent and the two most important things.

I don't know if anybody read this, but if you do, please leave a comment so I know that you are out there and you benefit from this.

Happy Hunting and hang in there, this WILL get better.