Property Appraisal in BostonJuly 17th, 2013 by The JetSetter Team | Comments Off on Property Appraisal in Boston
asking. Buyer’s bids are typically exceeding asking prices in many Boston neighborhoods.
Furthermore, buyers run into problems when trying to secure loans. Buyers agree to a price above the property’s value and the bank appraises the same property at a much lower rate. This puts lenders in a predicament because they are being asked to loan more money than certain properties will be able to fetch. Lending institutions simply cannot afford to take the risk. This means many buyers are forced to walk away from the negotiating table.
Buyers faced with such a situation have various options. Putting down more money up front will reduce the loan amount and gain the confidence of lenders. Additionally, sellers do not want to have to start over with another purchaser. This means buyers might be able to negotiate a reduced price to keep the seller at the table. A third option is choosing a new lender with the hope of a higher appraisal. With any luck buyers will be able to secure homes in the booming Boston market. Certainly not without some obstacles, though.
A market like the one mentioned above can be difficult for new and inexperienced real estate investors to break into. Even practiced ones might be unable to get decent returns. This brings up an excellent question: Why invest there in the first place? The answer is you should not. At least, not while there are tons of other markets across the States that have not yet reached their peak. Investors can find houses that are easy to grab and provide quick returns in Florida, Texas, or St. Louis.
As a young entrepreneur, Jason Hartman realized that turning a real estate profit would not be as difficult as the mainstream media seemed to think. With a little work and the right information, achieving much better than average returns (as compared to Wall Street) is not unusual. While investors in Boston are fighting to pay hundreds of thousands of dollars for a parking space, you can be turning a quick, passive profit a few states away in places like Atlanta with a few well-scouted income properties. (Photo Flickr | nickledford)
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The Jetsetter Show Team