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Get Rid of Bad Real Estate Market Headache
Real estate market can also turn into a pretty bad one! A bad market is one that is characterized by less of appreciation, reduced sales and mortgages are foreclosed. A bad real estate market has a disastrous effect on home values. The process of buy and sell to a renter does not work smoothly in this environment. So, what should a real estate investor do if he is new to the field or does not have the means to start a venture? How can he earn fast money from real estate?
The investor should precisely understand the requirements of property owners. He should have a clear knowledge of the current market scenario, the changing market trends, and property values.
Results of Bad Real Estate Market
Sometimes, a bad real estate market will result in unsold houses, with very low offers coming its way. In the course of time, the home value gradually drops because of reduced sales. The owner will find it unable to sell and even unaffordable to stay if they have very less or no equity in their homes. Ultimately, this would result in foreclosure of mortgaged property.
Some of the major factors that force people to sell their homes, irrespective of market conditions, are unemployment, divorce, illness and death. Since the past few years, this detrimental trend is on a real high. As a matter of fact, most people who have bought homes or refinanced to consolidate their debts have considerably low equity in their homes (i.e. they can't afford to lower their prices to meet the market rates or they will have to bring money to the closing to compensate the deficit between their selling price and the expenses of the sale).
The situation will be further aggravated if the bank forecloses and sells the property for a price less than that owed. As per the U.S. Internal Revenue Service (IRS) rules, the house owner would be held accountable for the difference and/or he will be subject to income tax on the deficient amount.
The only solution for the desperate homeowner is to file a case of bankruptcy so that it would protect him from deficiency judgment and the income taxes due on it. For an investor, this is the best chance to make quick money!
In such cases, experienced real estate investors could help homeowners to dispose their property. The investor could either pay the homeowner a comparatively low fee for the lead or a share of the profits (which could be a pretty high sum!), when he disposes of the property.
As it’s said, nothing is enduring but CHANGE! Like all other forms of investment, the real estate market too changes. If you want to make fast money in the changing the real estate environment, the best way is to flow with the market trends!
Call us, 509.438.9344, Email us, or fill out the contact form below.
We respond right away! -Colleen Lane, Realtor®
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