Ugott Home Gardening Tips

Posts Tagged ‘Homes’

The most difficult homes to sell are those in the luxury home market.

Why is that?

Let’s look at what goes on in the mind of a luxury home owner who wants/needs to sell their property. This may actually apply to a home in any price range but as you recall, we are going to focus on the luxury home market in particular today.

Typically, a savvy luxury home owner will go back to the real estate agent who helped purchase the home.  Another common practice is to do a Google search of nearby realty firms and decide on the best realtor to sell their home using various criteria. Some reasons a person may choose a realtor is because that person has the most sold listings or they received a flyer in the mail or because they liked the realtor’s smile. Another way to choose a realtor is using personal connections, such as a relative, a classmate or a friend.

For whatever reason, when choosing ABC Company and XYZ real estate agent, the process is usually the same.

- Decide on a Real Estate Agent or Realty Company
- Sign a contract with the Real Estate Company to represent you
- The Agent suggests a price based on comparable homes in the area
- A listing price is negotiated and decided upon
- The Agent lists the property on the MLS

So what is “the MLS”?

MLS stands for Multiple Listing Service. Basically, it is the main listing source that pools all member real estate companies’ available inventory or list of luxury homes that are registered with them so that everyone can see what is available on the market at any given time.

What are the advantages of having an MLS listing?

- Ease in finding the majority of luxury homes that are for sale right now
- Comparing luxury homes presently on the market without difficulty
- Listings are contracted for a specified amount of time
- Accessible only through a certified member of the Board of Realtors
who has a fiduciary duty to represent you and protect your interests

Real Estate Companies Specialize in Selling Homes at Market Value.

With the centralized pool of listings on the MLS, real estate companies are able to establish and check on the value of a piece of real estate in any given area. Determining value is crucial to selling a property. Without a tool to measure its value, it becomes difficult to know the true worth of a luxury home.

Another thing to remember when determining the value of a luxury home is of course, the condition of the luxury home. A newly constructed luxury home is more desirable than a remodeled luxury home, which in turn is more saleable than a fixer upper. Keeping your luxury home well-maintained enables you to ask top dollar for the home.

There is only one catch to the retail market of luxury homes and that is you can list your luxury home for whatever price you want to but it is only worth what someone is willing to pay for it, in other words, market value.

The real estate professional uses many tools to sell your luxury home. Some are:

- informs his clients and fellow realtors of your listing to see if there may be a potential buyer
- puts a For Sale sign out in front of the property
- lists it on the MLS
- advertises it in newspapers or in magazines
- holds open house events
- more sophisticated companies have marketing campaigns in place to give more exposure to their listings that the seller more often than not will have to pay upfront.

Real estate professionals more often than not, cater to owner-occupant buyers.

Once a realtor is decided on, an agreement is reached on length of listing and the luxury home is appraised, the luxury house is put on the market and the roller coaster ride of when-will-my-house-sell begins.

The 3 types of Buyers

From a business perspective, the luxury home is considered a commodity for which there are buyers. Identifying your end buyer will dramatically increase your chances of selling and/or selling quickly.

- Owner occupant’s 1st,2nd, 3rd + home
- Buy-and-hold investor’s rental unit
o entry level investor
o modest investor
o sophisticated investor
- Niche investors
o Short sales
o Foreclosures
o Rehabbing
o Wholesaling

Determining which end buyer you want to target will determine the price and how quickly you may be able to sell the home. As with anything else, there are those who are better than others in getting the job done.

The median home market has many more investors to turn to than the luxury home residential market. These investors may have ads or signs stating, “We buy homes.” “We take over payments.”

Real estate investors are, as a whole, people trying to help others out of a difficult situation and trying to make a profit in the process. These types of businesses are NOT non-profit companies so they expect to make some monetary gain from the transaction. After all, investors are not a charity operation and are not going to make your problem luxury home their problem luxury home. They make investments of their money and time to do transactions that they specialize in and expect to make a profit for their talents.

Investors are specialists in their field just as real estate agents, doctors or lawyers are specialists in their respective fields. They help people out of circumstances that could potentially become worse.

What about the Luxury Homes owners?

Waiting for an owner occupant is a great choice if you can afford to wait for the right buyer to come along for your luxury home. Listing it with a Real Estate professional is the most effective way in selling a luxury home “retail”.  In the luxury home market, the average time it takes for the “right” buyer to come along is from 1 to 5 years. The more the luxury home costs, typically, the longer the wait. The 1-3 Million price point of luxury homes has heavy competition and there are better options when comparing what is available entirely and not just in a particular neighborhood.

Since investors who typically do business at the 2M-200M price points or at retail prices are few and far between, what problems would a typical luxury home owner-seller face?

- $12k or $50k monthly house payment are typical for a luxury home. Who can you turn to? How do you solve your financial situation? A part time job at Wal-Mart will not cover this kind of expense.
- Sometimes, when upgrading to a new home, you may have found the perfect house to move into but you may still be stuck with the home that you grew out of.  You still have to keep up payments on that luxury house because 1031 exchanges aren’t always as smooth as they could be. In addition, remember you have a limited amount of time to do that exchange in.
- What if your key to financial stability is through the sale of your multi-million dollar home? Who do you turn to for guidance and confidentiality?
- Do you need to relocate because of business or personal reasons and must sell your property quickly?
-           Divorce or health problems place an urgency to liquidate assests

So what is a luxury home owner to do in the event that holding costs are too high and keeping the property means essentially losing money with each day that goes by?

Luxury home investors

There are companies that specializes in the acquisition of luxury homes and commercial properties all over the world? A company that closes the transaction quickly and uses CASH in all transactions? No waiting for approvals from the bank, which may not even come through especially in today’s lending environment.

How can you meet investors who specialize in luxury homes and who purchase luxury homes at a fair price? Investors who have an established list of prequalified clients wanting to buy luxury homes at a fair price can re-sell those acquired luxury homes. That is a scenario which would work for all parties involved.

These investors are not in the business of stealing luxury homes. They solve problems and make their money on the sheer volume of luxury homes that are bought and sold.  It is the investor that has his or her own buyers’ list that will get business done quickly and efficiently.

Business much easier and quicker

Investors typically have a database of buyers that do business with them exclusively due to the relationships that have been built and the value that is gained by buying through them exclusively. The clients entrust investors in this industry who do business honestly, ethically, with integrity and also guarantee good value. They have access to an unlimited amount of cash to complete transactions. Usually what ends up happening is the need to buy more houses to keep up with the demand.

As with any business, the cost of doing business prevents a wholesaler from buying at retail value of the luxury home. If a miscalculated purchase occurs the outcome is not being able to make any profit or worse yet paying money which would put one out of business rather quickly, and be the laughing stock of the industry. Here are some examples of the overhead and costs involved in running a real estate investment business:
- Cost of cash (8-18%)
- Closing costs on the buy and the sell
- Marketing costs
- Insurance
- Prepping a home
- Travel costs
- Inspectors
- Other miscellaneous costs

If an agreement of price is reached………

That is what you will get. Cash in your hands for your luxury home, the exact amount that is agreed upon in order to acquire your home at closing. Closing on the date of your choice is a relief to know and to use the title company of your choice. Wholesalers take the anxiety out of selling your home. This is an all around WIN-WIN-WIN situation and this is the only business we do. It is that simple.

If you want to sell your luxury home, wholesalers want to buy your luxury home…………….. NOW

Baytonw Property
Planning to make your next property investment? Try Baytown this time! Baytown property is an upcoming real estate market that is presently witnessing huge number of dealings. People from all over the world are considering the option of Baytown property so that they get a chance to add a valuable asset to their list of big-life-savings. Located in the Gulf Coast portion of Texas, Baytown is a division of the Houston-Sugar Land area. This metropolitan city is bordered on the south and the west by Galveston Bay and by Cedar Bayou on the bordered on the east.

Standing as an example of a serene urban city, Baytown has now become a favorite pick for many real estate investors and individuals, wishing for a comfortable, calm living settlement. We at, sugar-land-homes help all such people in acquiring good information about Baytown property and finding a good option that matches with their choice and preference the most. So, if you too are considering having a property in Baytown or its nearby locations, then immediately get in touch with us and start your process now!

Our efficient real estate management team has created a huge list of Baytown properties that is demarcated on the basis size, type, location and price range. Also, we provide detailed information about each property that is displayed on our catalog. Therefore, if you wish to avail any information regarding the various available property options of Baytown then simply browse through us. We are an ultimate online podium where you check all apartments, homes, villas and commercial properties available for sale. Baytown’s real estate’s market is on a high today and it believed that to have a property in Baytown, one needs to be on his toes and keep his eyes wide open as properties of this city are sold like hot cakes in the market. Hence, to have a beautiful property in Baytown then let us help you with the process of making big and quicker.

Every eight seconds another baby boomer turns 60!

As this generation heads toward retirement what are their housing options?

Well, downsizing doesn’t mean downgrading for this group. In fact, baby boomers are looking for upscale living with less complications. They want their homes to be manageable, affordable and accessible. And chances are they will get what they want.

Why?

Because baby boomers have shaped the housing market over the past 30 to 35 years.

In the 1970’s they were the kids coming out of College and wanting to rent apartments. Subsequently there was a huge building boom in the Apartment market.

During the 1980’s through to the early years of 2000 as this generation was ageing and becoming more affluent, they started to buy bigger houses termed McMansions. They were also buying a second investment property as part of their wealth building strategy, which helped to drive the housing boom.

So now these ageing baby boomers will once again set a new trend as they downsize. Lifestyle villages, retirement villages, independent living units, over-55 housing, park homes, and residential parks will take shape like never before … all because of these baby boomers.

There is an increasing trend toward Park Homes. Park Homes are affordable. But more than that, Park Homes are often located in Lifestyle Villages or Residential Parks that offer a safe, relaxed, resort-quality of life that owners of traditional surban homes can only dream about. That’s right, you don’t pay annual rates and someone else maintains the garden!

So if you’re a baby boomer and thinking about your housing options, contact us. We know what you want and where you’re heading.