Rob Norquist, a real estate agent, admits that Newport Beach is as active as it used to be, with some good record sales. He also agrees that a property should never be considered deprecated, and as a seller, you should never give up and use the low-end price. It is true that, depending on the real estate market, client’s desire, and real estate auctions, there may be moments when a property’s price drops, but not forever.
Other cities such as Huntington Beach, Costa Mesa, Irvine, or Mission Viejo – are considered among the other 25 cities as being the ones with the best real estate property values, with average values of $680,000 and more. The national average value in 2007 was $194,300.
However, some property values are based on subjective answers from residents living in a certain home. The given numbers and real estate evaluation may hang on wishful thinking instead of real appreciation. This is where real estate auctions come into the picture to inform potential clients about the property and the investment possibilities, giving them a clear image of the real estate’s worth.
Even though some buildings, such as Orange County properties, dropped their values in 2007, they recovered extremely well. This is another reason why, as a seller, you should never fear if you observe a temporal value drop because it is normal occasionally.
For instance, about 81% of owners, sellers, and agents trusted in 2007 that their estate property values were over $1 million, against 75% in 2006. So things are for the best, and it would appear that most estate agents have finally understood what this business is really about. It takes a lot of patience and ability to maintain your property’s value among the top ones on the real estate market.
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But Norquist trusts that many Newport Beach arguments are near the mark, sustaining that this city has survived the “housing slump” better than other locations. However, the surprise attacked more on sales, and he admits that they are on a falling edge right now, but there is still hope for better times.
Newport Beach is very well known for its highest-valued real estate properties in the U.S., being a perfect place for real estate business. Its location, proximity to the water, and beachfront view considerably increase its real estate value. Auctions in this area are exciting, and those interested in the real estate business domain should never miss them. You can learn a lot from such events.
Experienced real estate agents or even friends will surely advise you that you will likely come across many properties in foreclosure with perhaps no equity, being overpriced as a buyer. In such moments, lenders sometimes accept a smaller amount than the initial. So, you get into the negotiation process. As a hint, when you realize the over-pricing phenomenon, you have to understand that this happens when the real estate agent or seller is aware of the real estate property’s value and tries his luck to raise the price.
So watch out! Negotiation can become difficult, especially when both sides do not agree on reasonable terms: owner and buyer. Negotiations can occur privately or publicly, where real estate auctions come into the picture. Of course, a real estate auction is safer and more trustworthy than a private one. Private negotiations occur, especially when the agent is a close friend or relative to buyers. Because of the friendly environment, details regarding even the real estate transaction may be skipped. So, in situations like this, be careful.
Even as a friend, for a real estate agent, money comes first, and friendship after. Of course, during such a negotiation, there can be problems, such as mortgage value, real estate market, official formalities, conflict of interests in a particular area, etc. Moreover, time is a significant issue when real estate auctions are involved. As a general rule and as advice for a potential buyer, the negotiation process should not be extended for a long time because, as I said before, real estate properties drop their values and the client’s interest together in time. In this case, the buyer and the real estate agency do not only lose. Why? Because if a property’s value drops, it must also drop if you ever want to sell it again. In this case, the underpriced phenomenon appears. This is why short sales are preferred. Many Realtors and clients started using this strategy because they faced a property value problem. So they decided the selling process should not take too long.
Another important issue refers to the well-known “acceleration clause,” which is an official word used in any mortgage document, meaning that the lender, after the real estate property is sold, can demand the payment of the remaining balance for the loan. Realtors can provide more information about this contractual right. It is hard to say if this clause is good or bad for a real estate transaction because it has advantages and disadvantages. Buying a real estate property with a mortgage loan alreadyrepresents a pretty raised risk. Why? First, if the mortgage loan was contracted for many years, depending on the interest rate and marketplace evolution, you may come to pay the house’s price three times more. However, you could go for it if you have experience monitoring the marketplace and finding the right moment when every interest’s value drops. It’s gambling in this business, and Realtors or individual real estate agents know it best.
Realtors and real estate agents are here on the real estate market to help clients understand how they can value their houses, what they should look for when trying to sell or buy a home, how to negotiate, and how to win a real estate transaction. Some may say that buying or selling a real estate property is easy, but the fact is that pricing a house is a very difficult process. Many real estate agents and brokers have suffered many defeats before their first good business, so do not expect their job to be easy.
