According to a national survey commissioned by Move.com, one in six (15.4 percent) home buyers are considering saving up to buy a new home within the coming year. We asked the Ask a REALTOR® team to give us more insight into what these buyers can expect in 2010.

What extreme measures should a buyer be willing to take in order to buy a home in 2010?

Lora Davis: “Buyers, in many cases, will still be looking at short sales and bank owned REOs as the best values in 2010. Being willing to put in a little “sweat” after closing will get them the best buys. Many bank-owned and short sale homes need cleaning and refurbishing. Looking beyond the surface to potential will reap rewards in the long run.”

Steve Jackson: “The only ‘extreme’ measures that I would counsel my buyer clients to use in 2010 would be using ‘extreme’ caution…not to get caught up in the rush to buy ’something/anything’ just to get in under the tax credit deadline. I am of the opinion that the buyer must have clear and realistic goals regarding why they are buying, why they are buying NOW, what they are buying, how they are buying, and the list goes on.”

Michael Bunch: “Buyers need to seriously consider taking a manageable loss on the sale of their home to unload it so they can move up and work the percentage decreases in value to their benefit. Also, they might be able to get into a neighborhood that was out of their price point and probably soon will be again.

15.7% of buyers are looking for investment properties. What advice do you have for these buyers?

Sheri Moritz: “I work with a large number of investors in our market and have found the most valuable thing that most lack is knowledge and reality. I have yet to come across a new investor that tries to flip a house to find that it was much more than they thought they were going to be getting into. This is not a ‘learn-as-you-go-along’ type of venture, unless you have an extremely unlimited amount of money. Do as much research as possible and have contractors that you can trust who will give you realistic estimates of what repairs will cost and how long it will take to complete them. Then add about 20 percent  in dollars and 40 percent more in time.”

 
Deb Madey: “Investors need to clearly study and define their objectives. Once they have clearly identified the target criteria, an investor needs to identify, act, and move forward or away from possible properties quickly. If a property fails the criteria, move on. If it meets the criteria, do not agonize over insignificant personal perks a property lacks. A first-time homebuyer purchasing their primary home can and should focus on the details that make a house a home. Perceptive investors know their targets, make offers and walk away at pre-determined thresholds.”

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Despite a faltering economy, the amount of property being bought in the United States by foreign investors rose over the last year. This may signal a return to the notion that real estate is still one of the safest places to put your money, or it could represent the number of immigrants taking advantage of low prices. As prices begin to stabilize, however, foreign buyers and first-time buyers will need to hasten their search to find great deals before they are gone.

Betty Jung blogs about foreign real estate buyers :

“Recently I wrote a post about whether cash was still king here in real estate transactions. It showed that conventional financing, in fact, had been the norm recently for buyers of real estate in the U.S. I’ve written several posts on foreign buyers in the U.S. as well. 

The future dictates there will be more foreign buyers coming into the U.S. to purchase a piece of the American Dream and that new immigrants will be the majority of our future new home buyers. However, foreign buyers are still needing cash to purchase any real estate here in the U.S. according the most recent report by NAR (National Association of REALTORS®).”

Foreign investors can be added to the list of buyers who have taken advantage of price drops in expensive markets despite having a difficult time obtaining loans to make their purchases. Cash in hand, they are still managing to find single-family homes and condos to use when they visit the States.

Click through to read Betty Jung’s full post.

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The foreclosure market has helped first-time buyers and investors find great deals in Real Estate. While young buyers are looking for their first home and investors want to buy in bulk, that does not mean that the average homeowner cannot take advantage of the unprecedented affordability. With the right know how and some careful planning, a homeowner can further their Real Estate investment portfolio by buying a rental property.

Ki Gray blogs about investing in rental property:

“Large inventories, low interest rates and homeowners hungry to sell all make certain cities ideal for picking an affordable home or two. Before you break a leg rushing out to buy that bargain real estate, however, you’ll want to keep in mind the most important factors in a successful real estate deal.

Location, condition, price and financing are all considerations you’ll want to keep in mind in order to successfully find and acquire a great real estate deal. If you’re looking to buy rental property that will be paid for monthly, then you may want to set your sights on lower-middle-class areas. Most owners who occupy their homes in these areas keep their homes well maintained.”

Buyers that don’t have tax credit incentives to buy can still be motivated by the record high affordability in the housing market. With other investment avenues performing poorly, pointing out the cycle of Real Estate and the likelihood of property values rising once again may move homeowners to look into investing in a rental property.

Click through to read Ki Gray’s full post.

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The foreclosure market has helped first-time buyers and investors find great deals in Real Estate. While young buyers are looking for their first home and investors want to buy in bulk, that does not mean that the average homeowner cannot take advantage of the unprecedented affordability. With the right know how and some careful planning, a homeowner can further their Real Estate investment portfolio by buying a rental property.

Ki Gray blogs about investing in rental property:

“Large inventories, low interest rates and homeowners hungry to sell all make certain cities ideal for picking an affordable home or two. Before you break a leg rushing out to buy that bargain real estate, however, you’ll want to keep in mind the most important factors in a successful real estate deal.

Location, condition, price and financing are all considerations you’ll want to keep in mind in order to successfully find and acquire a great real estate deal. If you’re looking to buy rental property that will be paid for monthly, then you may want to set your sights on lower-middle-class areas. Most owners who occupy their homes in these areas keep their homes well maintained.”

Buyers that don’t have tax credit incentives to buy can still be motivated by the record high affordability in the housing market. With other investment avenues performing poorly, pointing out the cycle of Real Estate and the likelihood of property values rising once again may move homeowners to look into investing in a rental property.

Click through to read Ki Gray’s full post.

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For some REALTORS®, short sales have opened up a new market and a chance to learn new skills while they help buyers find great deals in Real Estate. For others, short sales have been a source of wasted time and frustration as they make endless calls to reluctant banks. To those looking in from the outside, short sale success seems like a little bit of luck and a lot of persistance. But, for those who have solved the short sale puzzle, they know there’s a right way and a wrong way to handle them.

Erin Attardi tips us off to the secrets of short sale success:

“If you follow me on Twitter, you will already know that I had a chat over lunch with the Director of Training for Lyon Real Estate, Michael Gray. He told me some pleasantly surprising news…I have the highest success rate at closing short sales of any agent at Lyon Real Estate!

Not sure just how many agents are now at Lyon, but I think it is hovering around a thousand or so. We have 120 agents in my office in Sierra Oaks alone, and there are 18 offices. So what are the secrets to my short sale successes? I will tip you off to a few.”

Learning the ins and outs of the short sale process could pay off if you can get past the hurdles and make some connections. Developing a system, as Attardi has, will guarantee that you do it right every time. For more information and training on short sales, visit the National Association of REALTORS’® short sale and foreclosure certification page.

Click through to read Erin Attardi’s full post.

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Move-up buyers are a substantial amount of new business for REALTORS®. While it may be difficult for homeowners to sell while the market is at a low point, they need to keep in mind that the house they buy will have the same reductions in price. But if a move-up buyer can find a way to keep their first home, they may be able to sell when the time is right for them.

Heather Cunningham blogs about renting out your home:

“Rent is a great way to supplement your income; rent is not a dependable source of income. Make sure you don’t depend on the rent to cover the mortgage payment. You need another insurance or back-up plan to cover the mortgage payment. Renters in general are renters for a reason and it’s usually because they are not so good with paying their bills and/or on time.

Do your homework ahead of time and see what rental rates are in your neighborhood. Calls signs, look at the paper and make sure the rental amount covers your mortgage, taxes, insurance and repairs. You will need to change your insurance to cover the dwelling, not the contents, and make sure to let your renters know if anything happens to the property, their contents will not be covered unless they get renters insurance. A lot of renters have no idea until a claim comes up that they have lost everything. You will need to keep the mortgage company notified of insurance changes.”

Even though Real Estate prices have fallen steeply over the last couple of years, for the long-term investor, it is still one of the safest places to put your money. Move-up buyers that can arrange for renters to pay their mortgage will find that they can take advantage of a great deal on a new house now while prices are low, and sell once the market has bounced back.

Click through to read Heather Cunningham’s full post.

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First-time buyers all across the country have run into competition from investors offering cash for the low-priced foreclosures they too are placing offers on. Most of these homes have been neglected for some time and, for a first-time buyer, these homes may be a chance to buy a fixer-upper that they can call their own. For investors however, the low-priced foreclosures are a chance to make a profit when they “flip,” or rehab, the home and then sell it once home values recover. Flipping can also be a way for the average weekend warrior to make a profit from the foreclosure market.

Stanley Combs shares his expertise on how to flip for profit:

“Ever think that you might like to try ‘flipping’ for some extra cash? Maybe even ‘fix and rent’ or whatever term you might call it–does it make any money? During the next few blogs I will give you some of the ideas that I feel are important. Always remember the simple statement: ‘Spend time, don’t waste time!’ Important tip!! You will be more profitable working only with Buy Fix Sell properties, where the rehab costs are under $15,000 to $20,000. Should you locate a property with rehab costs over that figure, simply wholesale the property and save yourself the headaches. The Buy Fix Sell technique can be used in any neighborhood and with any type of property.”

Comb’s blog promises to share what the average homeowner can do to flip a home and turn a profit over the next few installments. Real Estate is a great investment, and for do-it-yourselfers, it can be a great way to make some extra income.

Click through to read Stanley Combs full blog.

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