Murrieta and Temecula, CA – Real Estate Home Buying Tips – Part 1

Buying a Temecula or Murrieta home in a buyer’s market can actually be very challenging for all the exact reasons you might think it will be easy. Remember the goal is to get the best home that meets your goals and represents the best investment for your family. What are some of these buyer market benefits?

– Ultra high supply of home listings

– Good ability to negotiate price and terms

– High competition between sellers

No matter how you slice it those bullet points are a great thing for buyers, right? Believe it or not this can cause a lot of hesitation and consternation for buyers. How so you ask? Let’s say you find the ideal Temecula home in a wonderful neighborhood on a perfect cul-de-sac street and filled with lots of upgrades. You love the layout but the owners are stuck on price and just two streets away is the exact same floor plan, not as nice of a home in terms of lot and upgrades, and the street isn’t a cul-de-sac but the price is 30k less. And then just another street away is another model match with no upgrades, stained carpet, and priced 15k less.

Now you think how nice it would be to get the first home for less but the seller’s won’t budge and honestly it is priced fair when considering all variables. In fact, since it is a down market, it is lower priced then it has been in years. But were are in a buyer’s market and it is galling to pay 45k more! And with just an additional 10-15k, you feel like you could rehab the cheapest model match and still have a nice home. So, after a lot of soul searching you make an offer on the lowest model match and figure you will fix it up. By paying 45k less and putting in 10k, you save 35k in theory for the same neighborhood and house just a few streets away.

This sounds like a great idea but the problem is that once you move in, you have a hard cost to you to make repairs versus a simple increased payment. So you get a equity loan or tap your savings and put 10k into the property and get all new carpet, paint, and some tile in the bathrooms. That’s it and you have burned all that cash. You also live there for the average of 3-5 years and have “elbow grease” projects every weekend. While fun at first, this gets old fast and you are tired of cars buzzing through the street and constantly wish you were on the cul-de-sac. You also feel uncomfortable inviting people over until you get it all “fixed” and thus are not enjoying the house as much as you planned.

This may sound worst case scenario but I have seen this several times this year alone. The real sad part is 35k (45K – 10K) more would have cost an average of $210 more a month. Over 5 years that will finally equal the 10k you put into the bargain property and you have had to work every weekend, haven’t enjoyed the house, never invited people over, or even had a weekend BBQ!

Also, no matter what you put into the home, you can never equal the home with the better lot, upgrades, and incredible cul-de-sac street. That could be your kids playing neighborhood basketball safely or your family enjoying a safe block party. After 3 years you have grown tired of worrying each time your kids go out to play due to drive through traffic and decide to sell the house. Guess what? The market is still a tough and people are very picky, looking for that perfect, upgraded, cul-de-sac home you passed on!

This article is an example of a buyer seeing high inventory and pricing deals but losing common sense and thereby making a bad decision. How many times have you seen people get caught up in major sales and buy something they don’t even want because it was such a good deal? This is happening a lot right now and it gets worse if a person waits three years and finds they can’t afford to sell the house at that time. Then they continue to be stuck in a home that they do not like when the could of really enjoyed and been proud of a home they purchased in the first place.

Looking for a diamond in the rough is savvy. But don’t forget your goals amid all the Temecula and Murrieta home listings and price drops. Don’t be disappointed if someone won’t come down in price. Just make sure your Murrieta or Temecula real estate broker does the necessary property research and enables you to discern a fair or even aggressive price for that perfect home.

Tips When Buying Real Estate for Commercial Purposes

A commercial property can be a very good investment since it would let you earn money twice as much compared to the money that you can make when you buy a residential property. Therefore, if you want to know whether you are making a wise decision or not, here is a couple of real estate buying tips if you want to purchase a commercial property.

• Check out some real estate buyers guide magazines so you can see the right commercial property that would fit your needs. It is important that the property has a Land Information Memorandum. This can be usually acquired from the local state or council where the property is located. With this, you will know how much the assessed value is and if there are any potential as well.

• One of the most advisable real estate buying tips for commercial properties is that you ask for a low down payment while getting a long term loan at the same time. In this way you can still maintain the capital that you have to spend for you investment.

• Ask for the help of a commercial agent. His knowledge and expertise would help you compare all the sales, potential for growth, area demographics, and so many others before you establish your investment or develop the area.

• Analyse why you should buy the commercial real estate property. See to it that you buy it because you have the right reasons. Think whether you would gain more profit if you would rent it or you can earn more if you would buy it instead.

• If you are already decided to buy the commercial property, make sure that you buy a bigger area than what you are thinking right now. A bigger space gives more rooms for expansion and improvement.

• Those who are in short of cash may want to consider getting a partner or asking a business owner so that you can have someone to share the down payment with. It would be better if you would consider a family or a friend to be your business partner so you will know how he handles investments. Put everything in black and white especially your agreements.

The success of your commercial estate property will depend from all the little decisions that you make prior to the development of the property. Just follow these real estate buying tips and you’ll be on your way to a thriving investment.

Real Estate Agent Sales Skills That Actually Push Prospects Away

Sales Questions Can Be a Form of Manipulation

A salesperson needs to be asking questions that don’t carry any odor of manipulation. Manipulation can be very subtle, and it often has to do with timing.

For instance, suppose you’re holding an open house, and a prospect walks in. He’s friendly, so you strike up a conversation. You ask him how long he’s been looking, does he have a Realtor, when does he want to buy, etc. He’s answering all of your questions, so you then ask, “Would you like to get together to look at more houses?” Suddenly he starts edging towards the door to get away from you.

It’s kind of like a guy asking a girl for a date. “She seemed so nice and interested, but when I asked her out, she said she just wanted to be friends.”

Getting Your Signals Crossed

It’s easy for us to get our signals crossed in selling. Just because someone is interested, friendly, and qualified, doesn’t mean they want to take the next step with you.

Sometimes friendliness is a shield. Once you take direct aim with a “commitment” question, the prospect closes off.

Setting Up a Trade They Don’t Want

What’s a commitment question? A commitment question is any question that requires them to give up information or time that they feel is personal.

Even asking a prospect “What kind of house are you looking for?” too early in the conversation can seem like a commitment question. Other kinds of commitment questions real estate agents use include: “Can I drop by later with a CMA?” “Would you like me to set you up to get notified of new listings automatically?” “What sorts of things would you like an agent to do to sell your house?”

What we’re doing is setting up a trade…the agent’s information or service in exchange for their subtle commitment to you. We all know that’s what’s going on. We know it when we feel it happening to us.

What To Do Instead

So how does a salesperson get to the next base without asking commitment questions that sound “salesy” or pushy?

They develop the conversation by using neutral, irresistible questions, like “What’s the worst house you’ve seen in this neighborhood?” or “What do you like about looking at houses?”

These kinds of questions are soft, deliberate ways to enter a deeper conversation. Rather than being small talk, they are in fact, devastatingly effective ways to move a conversation the direction you want it to go.