Real Estate Article Insights
Insight #1: How will my commitment to gain knowledge help a consumer?:
Gaining knowledge is an important priority to have in any job. Gained knowledge is particularity important in the real estate field because it can help your clients make the best decisions in deciding where to live. For example you might have a client who is unemployed, looking for a job, and wants to live in a three-bedroom two-bath house in San Diego but is not willing to pay more than $300,000. They read the article that says, “…employment in San Diego County grew by 6,400 jobs between February and March” and decided they wanted to move to San Diego because of it (Perry, April 22, 2007). Since you are a realtor you know there are no homes in San Diego that fit this criteria, but you do know of a house in Murrieta that fits this criteria. In order to convince the buyer that San Diego is not the ideal spot for them you can elaborate on the article and let them know that most of these jobs in San Diego are minimum wage entry-level jobs that would never allow you to buy a home in San Diego.
Insight #2: How can looking into the future of real estate help a consumer?”:
Typically a person who works in the real estate field will know the market better than their client. The demand for houses rises and falls and usually the supply of houses is going opposite of the demand. When a lot of buyers are buying houses that they can qualify for but soon realize they cannot afford it they will need to sell or their home will go into foreclosure. Recently the number of foreclosures have been rising drastically. Foreclosures from February to March this year in San Diego County rose 49% (Perry, April 18,2007). This number proves that too many people are qualifying for houses, yet cannot afford them. A real estate agent can help their clients by showing them statistics of foreclosures when they feel their client cannot afford what they want to buy. The real estate agent can show their clients that the future of real estate and let them know the market is currently falling, so if you cannot afford to pay for your house in the near future you are going to have a hard time selling it for what you owe.
Insight # 3: How can looking at populations in different areas help an investor?:
An investor is someone who does not plan to live in his or her real estate but buy real estate to make profit. If you look at places that have a low population growth rate they will probably not have a need to buy or rent real estate there. Places with high population growth will have a lot of people who need homes. These are the smartest places to invest. In the “Population statistics” article it says that Pinal, AZ had a population increase of 51% from 2000 to 2006. That would probably be a good place to invest because the population seems to be continuously rising. I watch the TV show Million Dollar Listing and a realtor said a really good quote that stuck in my mind, “The real estate business is so great because everybody needs a home”. That is very true, so wherever the most people are going will be the most opportunity to sell or rent them homes.
Insight # 4: Finding out the positive things written about Real Estate are not always the truth:
Many times in articles written by realtors and people in the real estate business are always written from a positive prospective. Anyone can see that the real estate business is not always positive. Real estate has its ups and downs. The article about D.R. Horton is rare because he actually writes about the real estate industry being completely bad this year and all year long. This shows it is important to look for articles from all different sources and take a little bit of information from each one to figure out the truth about the real estate market at that time.
Insight #5: The best time to buy is the worst time to sell:
According to the “Record foreclosures hit mortgage lenders” article the numbers of foreclosure homes are rising. People who want to refinance their home in order to pay the monthly payment are not qualifying because the banks are asking them to show proof of income. Therefore the homeowners are forced to sell their homes. It is even harder to sell their homes because there are so many foreclosures around them, which leads them to go into foreclosure themselves. The people who do qualify for refinancing are less likely to spend money because they feel their home is worth less. People are losing money and therefore less likely to spend money. This is the best time to buy a home because most people cannot afford to do so, therefore there is a high level of supply and a low level of demand.
Insight #6: If you’re not a millionaire, retirement can be funded by rental income:
The article “Being a millionaire ain’t what it used to be” talks about how a million dollars does not have the value it used to be. People used to think that it was a dream to become a millionaire. The truth when people reach a million dollars they are not even fazed by it. To live in southern California comfortably a person has to have a lot of money. It is becoming harder and harder for people to retire because they cannot led the same lives they would like to lead if they stop working. Rental house income can be very helpful for people because they can retire and still have a constant income.
Insight # 7: It is important to look at different areas that go into an “average” regarding real estate:
When people are saying this is the time to buy or time to sell real estate agents need to look at the particular area that they are interested in. In the article “North County home prices fall 3.2 percent” they are taking a complete average of all the homes. It is not good to look at the homes as an average. You need to look at the particular areas. For example it says that Ramona’s home prices increased by 20%. Never look at averages.
Insight # 8: More job opportunities equal more investing opportunities:
In the job announcement for the “Port of Tacoma” it talks about expanding job opportunities. This is another insight that relates to population growth. Wherever the jobs are the people are going to go. Therefore wherever the people go they are going to need a home. That makes investors see dollar signs $$$.
Insight # 9: Know what you are agreeing to upfront:
In the “Home Loan Homework” article it gives warning on the assumptions people make about home loans. They often believe one thing up front and then realize later they made the wrong decision because they did not understand the details. It is important to remember that “everything is negotiable” and you need to fight to what you need.
Insight # 10: Investors! Be prepared to take advantage of foreclosures when the time is right:
In the ”Foreclosure activity up in San Diego county” article it gives information on the trend in foreclosures. If you are an investor who wants to make money on these properties it is important to prepare ahead of time. Save your money and fix your credit scores. Therefore when the buying trend starts you are ready to buy these homes first to sell them at the top of the buying cycle.