The Aftershock of Millennials Returning to the Housing Market

June 19, 2017

Ever since the housing market began to improve after the crash that began in 2006, market watchers, real estate professionals
Dean Graziosi

The Aftershock of Millennials Returning to the Housing Market

June 17, 2017

Ever since the housing market began to improve after the crash that began in 2006, market watchers, real estate professionals
Dean Graziosi

Timing the Market in Selling Your Home

February 11, 2017

Dean Graziosi

Stock Market at All Time Highs – Only Third in Best Investment Survey

January 18, 2017

I’ve been around for quite a while now, always preaching the benefits of real estate investment for control of your own life and financial future. I’ve done well, my students have done well, and real estate investing is certainly high profile these days.
Dean Graziosi

Timing the Market in Selling Your Home

August 22, 2016

Dean Graziosi

Stock Market at All Time Highs – Only Third in Best Investment Survey

July 29, 2016

Dean Graziosi

Timing the Market in Selling Your Home

March 1, 2016


Don’t get me wrong based on the title of this article. I’m not suggesting sitting and watching trying to catch the week you should sell your home to get the most out of it. First and most important, homes don’t usually sell that quickly, and you can’t just call a broker and execute a sell order.

However, there are a great many homeowners out there who have considered selling, or even want to sell, but they’re waiting and watching rising prices to get a bit more at the closing table. Some are retired and would like to move to a retirement or tourist community and enjoy life. Others will be downsizing or upsizing. There are many reasons that a homeowner can be ready to list for sale if they decide it’s the right time market-wise.

It’s tempting to keep waiting when the news is telling you that home prices are rising in your area. In many areas this can be the case when inventories are low. Some analysts are even blaming baby boomers for keeping inventories low as they are holding on instead of selling. Supply and demand will always rule the markets, so holding on and watching rising prices makes you a part of helping your cause by holding off the market.

However, when news stories with titles like More Markets Favoring Sellers popping up in the media, it can make you wait too long. The same supply-demand dynamic that you’re using in your favor right now can come back to bite you. And, it can happen very quickly. You have real estate professionals out there soliciting listings, and often they’re doing so using these news stories to convince owners it’s time to sell. At some point, the tide can turn.

The “real estate is local” meme is also important in this decision. Suppose for example that your home is in a popular subdivision with perhaps 200 or so homes. Right now you’re holding and watching prices rise because only around a half dozen or a dozen or so homes are for sale in your subdivision. There may even be some bidding wars on the best homes.

The question is just how many listed homes it will take in your subdivision to tip the supply-demand scales. If it’s a smaller subdivision, it can take just a few. In our example subdivision, past sold property data may show that a “normal” market would have 15 homes listed in your subdivision.

Suppose the eight currently listed became 15 or 20 within a week or two. The bidding wars would probably disappear, and prices would very likely soften significantly. It happens. Remember, there are others in your area doing just what you’re doing, so keep that in mind and don’t wait too long.

Of course, selling a home is a major lifestyle decision and shouldn’t be made based solely on current prices. But, if you’re in selling mode but holding, don’t hold too long.
Dean Graziosi

Oldies but Goodies in the Fix & Flip Market

December 18, 2014


Fix & flip as a real estate investment strategy has been really good to many of us for a long time. In rising or falling markets, we’ve had a great run, and we’re still seeing a lot of opportunity in today’s markets. It’s more difficult to find bargain purchases, as foreclosures are off and prices have risen due to investor competition.

Fix & flip profits come from three process phases, the purchase, the rehab, and the sale. You can make up for paying a higher price if you can increase your selling price or get a better rehab result at a lower cost. Investors in the current market are seeking out older homes in desirable neighborhoods to get a higher price on resale or higher rents.

Flip Profits are Up

RealtyTrac released a Q3 2014 report showing 26,947 flips, 4% of the total single family home sales and down from 4.6% the previous quarter. Since they can only track the purchase and sale prices and not the rehab costs, the report cites the gross profit on average (sale minus purchase not including rehab) to be $ 75,990. This 36% gross profit was up one percent from the previous quarter.

If prices are rising for the fix & flip investor on the buy side, but profits are rising as well, then they must be getting higher resale prices and/or getting a better profit on their rehab work. This is the situation we’re finding in some older homes in established and desirable neighborhoods. Sometimes the purchase price is still a bargain, as these older homes present a greater challenge in the rehab, so there is less competition for them.

If an older home is a sound structure and the rehab work required is renovation to appeal to today’s buyers and tenants, then it is probably a good candidate for fix & flip. As always, the kitchen presents the greatest opportunity to improve the structure, and also the highest rehab cost. A complete redesign is often unnecessary however, as often resurfacing cabinets and work surfaces, as well as upgrading to modern appliances is enough to take the home to market.

Bathrooms and converting to larger closets are also cost effective rehab projects. Get an education walking through brand new spec homes to see what buyers want, as builders are constantly adapting to the market. Older homes have charms that appeal, but they’re avoided by many buyers if they aren’t somewhat energy efficient and offering amenities they can get in a new home.

The cost-to-value ratio for renovation projects has reversed a long period of decline. For the second consecutive year, the value compared to cost for rehab projects has increased for all 35 projects tracked at one remodeling site. The average selling price of existing homes has increased about five times the increase in construction costs according to some estimates.

With resale prices rising and rehab costs holding pretty steady, there is a lot of opportunity in locating older homes in neighborhoods where buyers and renters want to live. Many of these neighborhoods have also enjoyed a higher historic appreciation rate than newer subdivisions. Many are close to downtown areas, desirable employment, and have high walkability scores. Take great care in selection, as older homes can present extra costs to conform to newer building or safety codes. All of the basics are still part of the deal. Get the lowest price going in, carefully control your rehab costs, and have a strong buyer list. The fixing part is wasted if you don’t have buyer demand for the flip.
Dean Graziosi

Weekly Wisdom #218 – Next Level Market Shift Revealed

November 29, 2014

Visit–Real-Estate-AND-Entrepreneurialism.html Welcome to Dean’s Weekly Video Blog as we…

How To Protect Your Home While It’s On the Market

July 30, 2014

homeYou’ve finally decided that you’re ready to list your home.  You’ve cleaned, trimmed your trees and hedges, planted new flowers, updated the paint where needed and you’re ready to get busy showing your home.  The one thing that the majority of homeowners share is the fear of leaving behind all of their prized possessions when they have a showing or open house.

Dean Graziosi states that homes listed for sale can be targeted by thieves, lawsuits that someone filed as a result of an injury sustained during an open house or showing and more.  To help you feel more at ease when it comes time to show your home, I have listed some ways in which you can protect your home while it’s on the market.

If you do not plan on coming straight home after you have had a showing or an open house, you may want to ask one of your neighbors to stop by your home and make sure that all of the doors have been locked.  This will help protect your home from any unwanted visitors who may be aware that you are currently not home.  While a home is listed, neighbors become used to the fact that strangers are coming and going from your home, sharing with them when you are expecting a showing or when you will be away for a long period of time may help them be more aware of anything unusual.

The next way that you can protect your home while it’s on the market is to keep all of your expensive items out of sight.  If you have any high-priced collectibles, jewelry, or other expensive items Dean Graziosi recommends placing them in a safe or lockbox you may have in your home.  If you do not have a safe place to store these items in your home, you may want to consider renting a safety deposit box until you sell your home.  You should also be careful about the paperwork that you leave lying around your home during this time.  You should ensure that anything with your social security number or any other account information is filed away or shredded.

During the time that you have your home listed, someone may get hurt while visiting your property.  This is not something that every homeowner considers prior to listing their home, but accidents do happen.  In the case that someone is injured while on your property, they may hold you liable and decide to sue.

To help keep lawsuits at bay, you should ensure that any loose or uneven flooring has been properly repaired.  If you have your home listed during winter months, you need to remove all ice and snow from your steps and sidewalks.  If you have rugs on your floors, you may want to secure them with tape or non-slip padding.  You may also want to simply remove them entirely for the time being.  Make sure that all of your stairways and hallways are clear of clutter and make sure that your home is properly lit during any showings.