Buying a Home in America

Buying a home in America today is anything buy easy.  There is a ton of misinformation out there on the home buying process. Can someone say “Fake News”?  Let’s take a look at the status of home buying in America, its profitability, ease of access and more. Buying a Home in America Although buying a home in America is not as easy as most people point it out to be, that doesn’t mean that its not a great idea and a solid long term strategy for acquiring wealth for you and your family. Lets face it, there are more millionaires made in real estate in America that in any other business field.  That even takes in technology.  Although the news may reference technology start ups that go public and talk about the twenty-something that started the business in his mother garage but is now worth 40 million dollars – those are unicorns.  What we mean by unicorns are for every one of those fancy tech companies that “go viral” there are thousands that fail and go broke. Not the Case with Buying Real Estate It has been proven over and over again that homeowners have more wealth than renters.  In addition to simply having more wealth, Americans that invest in real estate (whether it be your personal home or a true investment) tend to be successful.  That is not to say that everyone that attempts to purchase an investment property and flip it (like on TV) walks away with $45,000 – but it is safe to say that there is a much higher percentage of success and profitability when buying real estate in America than any other investment strategy. Real Estate – More Solid an Investment than Stocks or Bonds Although the stock market has recently been at record highs, even the heaviest of millionaires that are currently invested in the stock market have MORE money tied up in real estate.  The earnings that many of these savvy investors pull out of the market (when it retreats) generally goes into the purchase of residential or commercial real estate. Real estate has consistently beat the real estate market for consistent and overall growth for the last 30 years.  What that means is if you put $50,000 in the market 40 years ago – and your neighbor invested $40,000 in the purchase of a home, your neighbors home would be worth more (less their initial investment) than you would have made in the stock market. Real Estate Values in America Lets look closely at the above example of the initial $40,000 investment.  40 years ago would have been in the area of the 1970s.  In the 1970s the median price of a home in America (according to the US Census) was about $40,000.  Yep, you could have purchased a home outright for a cool 40K.  What do you think you could sell that home for today? In the year 2011 (once again looking at the US Census) the Average Home Value was…

Selling Your Home

                If you are a Home Seller in America – your head must be spinning. Explore Real Estate News About Selling Your Home Selling Your Home Everywhere you look is someone else giving you different information on the best ways to get you home sold.  You will also come across hundreds of different AVMs also called Automated Valuation Models.  These are the computer algorithms that attempt to provide your home’s current value.  Then, of course, you have the CMA (current market analysis) of what your home is worth, which was done manually by a real estate agent.  Lets make it worse, say you have interviewed 5 Realtors to list your home for sale, each of them have most likely given you a different value on your home. Understanding the Bias When taking in all of the information about selling your home, its important to keep in mind the bias of where you are getting that information.  For instance, some real estate agents may go as far as to tell you your home is worth much more than it really is.  This is to get the listing agreement signed; when you don’t see the number of offers you expected, they then tell you that the home may be overpriced for the market. If you are using one of those “get your home’s value” things that are automated, its important to remember that the valuation from those types of products do not take into consideration much of the uniqueness of your home.  If you have not had many properties recently sold around your house, those algorithms will struggle getting you a true value. Marketing Options for Your Home Another area of disparity when you are selling you home is the multitude of marketing options available to you.  Depending on where you get your information, you may read that Home Staging is the #1 thing to get your home sold fast.  You may come across an article that says how much more money you can sell you home for if you were to only use professional photos. If you speak to one Realtor, they will tell you that they are going to blast your property listing to thousands of the top real estate websites.  Another says they are going to feature your home for sale in the local paper.  Some will tell you that they will discount the commission you pay them while others claim that listing your home at an elevated commission attracts real estate agents to show your home. Truth is, there is NO silver bullet in selling your home.  Let me take that back — there is a silver bullet…PRICE.  If you want to sell your home in 24 hours, price it at 1/2 of the value.  Wait…that doesn’t sound good to you?  Then we better do A LOT of things right if you want to sell your home at a decent price in a relatively short period of time. So What Works?…