Dean Graziosi

Regardless of the negative publicity facing the real estate market today, there is still some good news for consumers.  Small signs of a turnaround have begun to surface, causing analysts to speculate that the market is going to rebound, at least slightly in 2009.

Not only are interest rates at a 50 year low, applications are at a high in the refinancing sector, and more applications are being made for low cost housing.  While this may not necessarily be good news for consumers trying to sell their homes, it does mean that the market is slowly starting to level out.  In addition, gas prices and auto prices have lowered significantly for the first time in several years, and consumer savings is up roughly 3%.   Consumers are also changing their spending habits, which mean that consumers are able to put more money into down payments, something that has become a necessity in today’s financial market. 

While foreclosures and low real estate values will undoubtedly still be a hot issue in 2009, there are markets that have seen a rise in home prices.  The New England and the Mountain West in particular, have seen a steady rise in their home values.  New businesses are flourishing in these areas, which is helping these local economies weather the economic crisis. 

If you are looking to buy a home in 2009 you will be able to get a great deal.  Not only can you get more real estate for the money, but you will probably land better interest rates than your parents did.  If you are planning to sell your home this year do not be discouraged.  While you may have to sell at a lower asking price than you had hoped, buyers are starting to get back in the marketplace.  If you can offer a great piece of real estate at a low cost, the chances of selling the home just increased dramatically.  

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To start investing your hard-earned dollars in the real estate world, start looking close to your home. Try to find houses, land, condos, duplexes, town homes, etc. that are priced low. Oftentimes you can find good deals with foreclosed houses or REO’s (bank-owned homes). Also, watch for short sales where a property has already started the foreclosure process yet the property owner would rather sell his or her home rather than see it foreclose to avoid attorney fees and hopefully recapture some of their investment.

There are also pre-foreclosure sale, pre-sale and compromise sale homes. These are homes where the lender is agreeing to sell the property for less than the amount owed in exchange for releasing the mortgage as a lien on the property.

Once you have purchased your property you need to start with simply cleaning up the property; from the simplest things like pressure-washing the patio and exterior of the home to cleaning up trash, cutting down weeds, mowing the yard, trimming any trees or bushes and removing stains from the driveway. A deep-cleaning of the interior is also necessary.

When cleanup is complete, go back to the bank where you have your loan and refinance for the new value of the home. If your lender only allows you to refinance after having lived in the house for a certain amount of time (usually called seasoning) then it is advisable to find a bank that doesn’t have such restrictions.

After you refinance, you can use some of the extra money from that for repairs, upgrades and other home improvements. Remember that the one thing a buyer or renter will look for is curb appeal — or, how the home looks from the street — sometimes simply adding some well-placed flowers or trees is enough to boost the curb appeal.

Many people prefer to rent these homes in order to keep a positive cash flow as they wait for the real estate market to recover, this a great way to make the mortgage payments, or you can choose to live in the home and sell it later.

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