Hollywood Hills Homes for Sale / How to Shop for a Home
Hollywood Hills. How Much Should You Offer?
A good starting premise is that everyone wants to buy a home for thousands of dollars under market and when the time comes, to sell that home for thousands of dollars over market. This is basic human nature. When you are in the position of making an offer on Hollywood Hills real estate property there are certain facts you need to know.
Is it a Buyer’s Market or a Seller’s Market? In a Buyer’s Market conditions favor the buyer. Hollywood Hills real estate listings are plentiful, home sales are declining or stagnant. In a Seller’s Market the opposite is true. There are more buyers looking for homes than there are homes available. Your low-price offer is far more likely to succeed in a Buyer’s Market than in a Seller’s Market. How do you know what kind of a market exists? Ask your REALTOR, read the newspaper, check online.
Building Hollywood Hills Home Equity
A popular question from prospective Hollywood Hills homebuyers relates to building home equity. Buyers like to estimate how much a home may increase in value based upon past appreciation. One of the many advantages of home ownership is that appreciation is based on the home’s market value rather than on the actual dollar amount invested or the down payment so that a $100,000.00 home that appreciates 5% is now worth $105,000.00, especially in Hollywood Hills.
With a typical 30-year loan, most of your monthly payment goes toward interest payments with only small amounts going to the principle in the early years. Only half the principle is repaid in the first 23 years of the loan. You can build Hollywood Hills home equity faster by choosing a 15-year loan instead of a 30-year loan.
Buying a Hollywood Hills Fixer-Upper
Finding the right Hollywood Hills fixer upper often involves finding a seller who is in financial difficulty and wants to sell in order to protect their credit or to avoid foreclosure. Various government agencies such as VA, HUD, IRS and others offer homes in foreclosure for sale and these homes can make excellent fixer-uppers. Bank owned properties known as REOs, real estate owned, offer good opportunities since financial institutions want to eliminate their real estate holdings by selling foreclosures quickly.
Join my network of Hollywood Hills buyers looking for specific types of properties. Call or Email me today.
The Benefits of Selling Hollywood Hills
If your Hollywood Hills holdings consist of both a personal residence and a rental, you can sell your personal residence and exclude up to $250,000 ($500,000 for a married couple) on the gain. Then you move into your rental, live in it as your personal residence for two years and then sell it, again benefiting from the $250,000 or $500,000 exclusion. This is true even though most or all of the increase in value occurred before you converted the property to your personal residence.
Hollywood Hills BARGAINS
A bargain exists in the mind of a buyer when entering into an agreement to exchange goods when the buyer thinks the price is favorable. Bargains can always be found in the Hollywood Hills market if a buyer is patient and willing to wait for a truly motivated seller. In economic downturns many people believe that foreclosures and short sales are automatically bargains when, in fact, this may not be the case.
Hollywood Hills DEDUCTIONS
One of the advantages of home ownership is that while most other types of interest are not tax deductible, the interest you pay on your Hollywood Hills loan is deductible on your Federal and State income tax. This fact alone gives homeowners a distinct advantage over renters.
|
 |
| |
|
