The Real Estate Bubble-when Will It Burst?

Written by Nicole Soltau

More and more individuals are realizing that real estate is much safer, and a better return on investment than many traditional investment vehicles. Unlike stocks or bonds, real estate investments can usually be liquidated in order forrepparttar investor to access funds in far less time. Additionally, unlike many other investment vehicles, real estate does not come withrepparttar 149218 stiff penalties associated with early withdrawal. In most cases, investors can liquidate and not have to worry about losing large sums of money. Finally, real estate providesrepparttar 149219 assurance of a higher yield of return than other types of investment.

On average, real estate appreciates about 4% per year. That means that a property you purchased five years ago, under normal circumstances with no significant wear and tear, would be worth at least 20% more thanrepparttar 149220 amount you paid for it five years ago. Some real estate markets perform significantly better than others at given times and with a mild remodeling or upgrade you could be looking at substantially higher returns on your investment.

Given these facts, itís no wonder so many people are jumping onrepparttar 149221 real estate investment band wagon. It begsrepparttar 149222 question however; when willrepparttar 149223 real estate bubble burst?

There has been some speculation thatrepparttar 149224 wild investment inrepparttar 149225 real estate market and they hype of outrageous investment returns has no where to go but crashing back down to Earth. After all; how is possible that real estate investments could possibly continue to double as they have inrepparttar 149226 last few years? Some critics even point torepparttar 149227 fall ofrepparttar 149228 real estate market in Japan inrepparttar 149229 late 1980ís. Homes that were worth thousands of dollars are now only worth a fraction of that amount whilerepparttar 149230 homeowners still owe almostrepparttar 149231 entire full amount ofrepparttar 149232 first mortgage.

Choosing A Reputable Real Estate Appraiser

Written by Nicole Soltau

When you are considering purchasing a property; either for investment or personal use you will need to hire a real estate appraiser. If you are financingrepparttar purchase through your credit union or another financial institution will most likely be required to hire a real estate appraiser to perform an appraisal onrepparttar 149217 property. This is because your Credit Union ( to ensure that your dream home doesnít become a nightmare and thatrepparttar 149218 purchase they are financing is really worthrepparttar 149219 amount loaned.

Inrepparttar 149220 best case scenariosrepparttar 149221 appraisal is returned indicating thatrepparttar 149222 fair market value ofrepparttar 149223 home meets or exceedsrepparttar 149224 sales price. The problem comes in whenrepparttar 149225 appraisal indicates thatrepparttar 149226 fair market value ofrepparttar 149227 home is less thanrepparttar 149228 sales price. Inrepparttar 149229 latter case,repparttar 149230 prospective buyer would either need to droprepparttar 149231 deal or renegotiaterepparttar 149232 sales price withrepparttar 149233 seller.

As you can see, it is critically important that you find a reputable and competent real estate appraiser. That one appraisal can easily make or break a deal. Even if you are not financingrepparttar 149234 purchase through a lending institution it is still worthrepparttar 149235 effort to insure thatrepparttar 149236 property you are investing in is really worthrepparttar 149237 amount ofrepparttar 149238 purchase. If you should hire a less than competent real estate appraiser you find outrepparttar 149239 hard way later on thatrepparttar 149240 property you purchased was not really worthrepparttar 149241 amount that you paid.

Real estate appraisers perform an evaluation of a property and then provide a written evaluation after consulting standardized checklists and comparingrepparttar 149242 property in question to county land value sources and sales information on nearby similar properties. The estimation of replacement costs is also taken into consideration. Finally, real estate appraisers must be able to verify legal land descriptions. As you can see, there is quite a bit of work involved in performing a competent real estate appraisal and it is important that each step be performed accurately.

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