Any home loan that permits for the lowest payments as well as interest rate that is highly desired by a single individual is known as dream house finance. They provide the comfort of buying a home to borrower which they strongly desire as well as consider it as their dream home.
Many of the time, usual lenders recognize that someone desires a certain home intensely. At that time, they convince the owner of home to market off their latest home as well as advance to their fantasy home, that can or may definitely not give advantages in the extended run. Many of the dream house mortgages are made for those that will do anything to purchase their desired home now, whether they can presently afford to purchase it.
There are many how to allow a borrower to get a dream house. Use of the interest just finances is you of those methods which allows a borrower to get a dream house mortgage. Most of the monthly payment is going towards interest for the first five to seven many years whenever making the early mortgage costs. And so, basically, to get into the home, using the option of interest only is a helpful choice. After the passage of first 5-7 many years, more amounts of principle payments should be added further onto the interest just necessity. After a set or perhaps certain amount of years, some dream house mortgage permit for an increase in payments to incorporate the principle.
Dream house mortgages are made in such a way that the borrower can get into a house that they cannot currently afford to buy, but after they get a higher paycheck, they can afford. There will always be an way for the borrower to refinance the dream house mortgage or perhaps to resell the home. There are many real estate investors which will use the option of interest only payment. They will use the saved revenue to better upgrade the home as well as get it ready for resell at a higher cost. In this scenario, the interest only payment is a sensible option. The fixed rate loan is the better way if the borrower chooses to live in the home for a extended period of time.
View the original article here
Showing posts with label Real Estate. Show all posts
Showing posts with label Real Estate. Show all posts
Wednesday, November 2, 2011
Thursday, September 15, 2011
First Time Home Buyers Loan
If you are applying for a home loan for the first time, this will be quite a new experience and a bit intimidation up to some extent. In fact the process of home mortgage may still be confusing for the persons who have been through it before, not to talk of who are doing it first time. However if you follow the tips given here then you may be saved from a lot of hassle.
The process for home mortgage many be complicated for a first time buyer, but fortunately there are people who know it very well and they are available and willing to guide you. The most relevant people are the lenders themselves. If you spend time with them and ask questions intelligently you will be able to understand the process. Your real estate agent can also guide you through the process, maybe better than the lender because he will have a neutral opinion. Similarly you can ask from your relatives and friends who have been through this. Thus with a little patience you can understand the process even before getting into it.
Before you start negotiating the loans you must understand what the various terms mean. For example what is the difference between an adjustable and a fixed rate mortgage, what is a 15-year amortization as opposed to a 30-year amortization, how does a bank loan officer differ from a mortgage broker. Make sure that you select a loan with the lowest fees and interests.
There are several government schemes around at federal, state and local levels to provide financial assistance for the first time home buyers. You can search on the internet for these, or ask your real estate agent or the lender themselves, they will be too eager to guide you to one.
These schemes usually help you with your down payment and may include grants, charities or assistance programs. You can also look for schemes approved by HUD.
One you have a rough idea of how much you can afford on your house with your loan you can start making your selection. First of all make a list of requirement that you need and want in your house, e.g. if you are addicted to gardening then a house without garden will be of no use to you. After making a carefully selected shortlist, then visit those places and make your final choice.
After making your final choice for your home, carefully negotiate the loan terms. Now is the time to decide how much down payment you are going to pay, whether you want a fixed or an adjustable rate and if you want a 30-year or a 15-year amortization. Remember to negotiate the terms, because by negotiation many of the fees may be waived off if you are a first time buyer/borrower. The process of buying a home first time and borrowing for it may be tedious, but if worked through carefully will be rewarding in the end.
View the original article here
The process for home mortgage many be complicated for a first time buyer, but fortunately there are people who know it very well and they are available and willing to guide you. The most relevant people are the lenders themselves. If you spend time with them and ask questions intelligently you will be able to understand the process. Your real estate agent can also guide you through the process, maybe better than the lender because he will have a neutral opinion. Similarly you can ask from your relatives and friends who have been through this. Thus with a little patience you can understand the process even before getting into it.
Before you start negotiating the loans you must understand what the various terms mean. For example what is the difference between an adjustable and a fixed rate mortgage, what is a 15-year amortization as opposed to a 30-year amortization, how does a bank loan officer differ from a mortgage broker. Make sure that you select a loan with the lowest fees and interests.
There are several government schemes around at federal, state and local levels to provide financial assistance for the first time home buyers. You can search on the internet for these, or ask your real estate agent or the lender themselves, they will be too eager to guide you to one.
These schemes usually help you with your down payment and may include grants, charities or assistance programs. You can also look for schemes approved by HUD.
One you have a rough idea of how much you can afford on your house with your loan you can start making your selection. First of all make a list of requirement that you need and want in your house, e.g. if you are addicted to gardening then a house without garden will be of no use to you. After making a carefully selected shortlist, then visit those places and make your final choice.
After making your final choice for your home, carefully negotiate the loan terms. Now is the time to decide how much down payment you are going to pay, whether you want a fixed or an adjustable rate and if you want a 30-year or a 15-year amortization. Remember to negotiate the terms, because by negotiation many of the fees may be waived off if you are a first time buyer/borrower. The process of buying a home first time and borrowing for it may be tedious, but if worked through carefully will be rewarding in the end.
View the original article here
Tuesday, September 6, 2011
Suggestions In Real-estate Assets
After you actually get into real estate property investments, it is really fundamental in order to remain it for the purpose of the long haul. That could be just how you’ll create riches. In spite of whether your market is undoubtedly up or even straight down, people need to often be in a position to weather virtually any storms in which come around. Furthermore there are going to be moments any time there tend to be downward sells, however an individual can’t toss in the towel.
Via real estate property everyone can certainly get significant income throughout a quick amount of time. Any time you can be organising to actually dedicate your current moolah, and then the specific most beneficial possibility could well be real-estate financial commitment. Rock Bottom Blue Print is actually a destination to positively pay a visit to.
Any time you prefer to expend a person’s precious wealth consequently just one of the right choices will probably be to decide to buy an absolute real estate property and rent it away. Rent or lease ought to be charged in a complete approach that you just simply have the ability to manage mortgage, taxes, insurance and thus manufacture profit. Whenever you have paid all of your mortgage the whole amount you can get a different cash. great deal more help and advice is actually in Locating Real Estate Deals.
View the original article here
Via real estate property everyone can certainly get significant income throughout a quick amount of time. Any time you can be organising to actually dedicate your current moolah, and then the specific most beneficial possibility could well be real-estate financial commitment. Rock Bottom Blue Print is actually a destination to positively pay a visit to.
Any time you prefer to expend a person’s precious wealth consequently just one of the right choices will probably be to decide to buy an absolute real estate property and rent it away. Rent or lease ought to be charged in a complete approach that you just simply have the ability to manage mortgage, taxes, insurance and thus manufacture profit. Whenever you have paid all of your mortgage the whole amount you can get a different cash. great deal more help and advice is actually in Locating Real Estate Deals.
View the original article here
Monday, July 25, 2011
Housing Market Has Many Hurdles
Although parts of the U.S. economy have shown some signs of recovery, the housing market remains in a slump in some areas. Federal Reserve Chairman Ben Bernanke has a plan to help the housing market. Bernanke’s plan includes modifying more mortgages and making the buying process more streamlined.
Declining home prices: the good and bad
The plan has received criticism from those who don’t believe it will work well for the overall housing market. With high unemployment and recently tighter credit standards, the bottom third of buyers are still unable to apply for mortgages. Even though it’s a buyer’s market and home prices are very low, many are still unable to get a home.
March home prices were at the lowest level since March 2003. With the decline of home prices, many people have decided to keep their current home, which has kept folks from moving to growing areas. Since people are feeling the pinch of the housing market, many consumers are spending less, which accounts for about 70 percent of economic activity.
Fewer first-time buyers
Another hurdle the housing industry is trying to jump over is less first-time buyers. In healthy economic times, first-time home buyers account for more than 50 percent of sales. Currently, the percent of home sales from first-time home buyers is down to about 35 percent, according to Total Mortgage Services. There currently is no program for first time home buyers like there was in 2008, when the First-Time Homebuyer Credit was in effect.
Why are would-be buyers staying away?
With many Americans juggling credit card debt and student loans, the added guidelines of having larger down payments and stricter lending rules are keeping would-be buyers at bay.
HARP qualification, a slow go
There is also the concern of keeping people in the house in which they live. The Obama administration and federal regulators are trying to give struggling homeowners reprieve by permanently modifying their loans. Unfortunately, the administration has only been able to modify about 600,000 loans to date.
Will economic growth continue?
The current report from the government shows the growth of the economy at an annual rate of 1.8 percent in the first three months of the year. According to analysts, it isn’t expected to grow any faster. Without economic growth, Bernanke’s plan to speed up the removal of foreclosures might not be enough to give life to the housing market.
View the original article here
Declining home prices: the good and bad
The plan has received criticism from those who don’t believe it will work well for the overall housing market. With high unemployment and recently tighter credit standards, the bottom third of buyers are still unable to apply for mortgages. Even though it’s a buyer’s market and home prices are very low, many are still unable to get a home.
March home prices were at the lowest level since March 2003. With the decline of home prices, many people have decided to keep their current home, which has kept folks from moving to growing areas. Since people are feeling the pinch of the housing market, many consumers are spending less, which accounts for about 70 percent of economic activity.
Fewer first-time buyers
Another hurdle the housing industry is trying to jump over is less first-time buyers. In healthy economic times, first-time home buyers account for more than 50 percent of sales. Currently, the percent of home sales from first-time home buyers is down to about 35 percent, according to Total Mortgage Services. There currently is no program for first time home buyers like there was in 2008, when the First-Time Homebuyer Credit was in effect.
Why are would-be buyers staying away?
With many Americans juggling credit card debt and student loans, the added guidelines of having larger down payments and stricter lending rules are keeping would-be buyers at bay.
HARP qualification, a slow go
There is also the concern of keeping people in the house in which they live. The Obama administration and federal regulators are trying to give struggling homeowners reprieve by permanently modifying their loans. Unfortunately, the administration has only been able to modify about 600,000 loans to date.
Will economic growth continue?
The current report from the government shows the growth of the economy at an annual rate of 1.8 percent in the first three months of the year. According to analysts, it isn’t expected to grow any faster. Without economic growth, Bernanke’s plan to speed up the removal of foreclosures might not be enough to give life to the housing market.
View the original article here
Sunday, July 24, 2011
Common Mistakes Real Estate Investing Novices Make
Real estate investing is becoming more popular nowadays despite the recession. Investors are snapping up properties in hope of selling them for a higher amount in the future. Even those who have day jobs are trying wholesaling and flipping houses. After all, television shows made it appear fun and simple, not to mention, very profitable.
Novices in the real estate investing world though should be wary. There are some mistakes you must avoid as they could give you a bad start in the business. Worse, they could force you to quit and give up your dream of making a fortune through wholesaling and flipping houses.
The first costly mistake is not doing your homework. If your Math teacher in third grade forgave you for not completing your assignment because you had fever, real estate investment isn't as compassionate. A lot of novices, spurred and inspired by how easy television shows make investing appear easy, jump into the pit without arming themselves with the right knowledge. As one seasoned wholesaler said, information always beats money in getting deals done.
Learn to read. Browse magazines about real estate in general. Go online and visit web sites like REIwired.com to learn more about the tricks of the trade. REIwired.com offers premium and accurate content for members so be sure to create a log-in account. You'll find very helpful videos, audio files, and articles at REIwired.com.
The second one is missing estimates by a mile. Forgive yourself if you spent $1,000 more than your repair budget in your first flip. You will hit and miss these targets as you go along. But, to avoid missing far too often and literally paying the consequence, leave 'estimating jobs' to experts ' at least while you're still learning. Hire a professional house inspector in your first few flips to make sure the repair costs are accurate. Once you get the hang of it, you can start inspecting and estimating on your own. Avoid these two mistakes and you'll surely be off to a decent start in your real estate investing career.
View the original article here
Novices in the real estate investing world though should be wary. There are some mistakes you must avoid as they could give you a bad start in the business. Worse, they could force you to quit and give up your dream of making a fortune through wholesaling and flipping houses.
The first costly mistake is not doing your homework. If your Math teacher in third grade forgave you for not completing your assignment because you had fever, real estate investment isn't as compassionate. A lot of novices, spurred and inspired by how easy television shows make investing appear easy, jump into the pit without arming themselves with the right knowledge. As one seasoned wholesaler said, information always beats money in getting deals done.
Learn to read. Browse magazines about real estate in general. Go online and visit web sites like REIwired.com to learn more about the tricks of the trade. REIwired.com offers premium and accurate content for members so be sure to create a log-in account. You'll find very helpful videos, audio files, and articles at REIwired.com.
The second one is missing estimates by a mile. Forgive yourself if you spent $1,000 more than your repair budget in your first flip. You will hit and miss these targets as you go along. But, to avoid missing far too often and literally paying the consequence, leave 'estimating jobs' to experts ' at least while you're still learning. Hire a professional house inspector in your first few flips to make sure the repair costs are accurate. Once you get the hang of it, you can start inspecting and estimating on your own. Avoid these two mistakes and you'll surely be off to a decent start in your real estate investing career.
View the original article here
Saturday, July 23, 2011
Investing In Real Estate, How Do I Get Rich?
Fundamentally, you have three ways to make money when purchasing investment property. The first is to lease the property for an indefinite period at rents that exceed the cost of holding the asset. The second is to purchase the property with the intent of renovating it to substantially increase the value and selling it quickly.
The third is to find properties that need to be liquidated quickly at a substantial sacrifice to equity. An investor can acquire these properties and immediately sell them for a substantial profit.
Essentially, these three concepts have made more millionaires than any other type of venture in human history. Having said that, why aren't you creating your wealth with real estate? For many, it is fear; for others it is lack of capital. However, for all, it is merely a lack of understanding. People buy and sell real estate with no money down all of the time, and real estate has always been a much safer investment than the stock market.
So how do you get started?
The first step is always education. Start reading books about real estate investments. Go the book store or library and learn the fundamentals. You don't need to be an expert, but you must understand the process. Find a realtor that works with investment properties and ask questions. Do the same for mortgage brokers and banks. Sit down with a loan officer or mortgage broker and determine how you would finance an investment. Ask questions and find real estate and finance professionals that can help protect your interests as you learn.
The next step? ... Find the properties.
With the aid of the real estate professionals, determine the best type of investment for your lifestyle, financial position, and risk profile. After you determined best type of property to maximize your return, begin searching for your investment. For this, the internet has become an invaluable, time saving, tool. Search for potential investments at sites like freeForclosureSearch.com (http://www.foreclosurefreesearch.com/index.cfm?rsp=2428) or Reals.com (http://www.reals.com) In addition, you can look through your local paper, visit county the county recorder, and call on the resources of your network to find the opportunity.
But how do I recognize the opportunity when I find it?
Valuing a potential investment is not as difficult as it may seem. For investors looking to receive a return for charging rents, evaluation software such as IP Ware (http://www.freetrainer.com) aids in finding the maximum return on investment. For investors that are looking to renovate and re-sell, comparable values of the surrounding area can be a good foundation. Finally, for those that are looking for people that must sell at a substantial sacrifice, mortgage lenders, tax records, and financing groups can be a significant source of information.
Investing in real estate is a simple process. It is merely a matter of locating a potentially good investment. Determining how to best leverage that investment. Then using your resources and relationships to minimize your risk, and maximize your return. There is a myriad of resources available to beginning real estate investors. Isn't it time you took advantage of the opportunities in real estate and started building your wealth?
View the original article here
The third is to find properties that need to be liquidated quickly at a substantial sacrifice to equity. An investor can acquire these properties and immediately sell them for a substantial profit.
Essentially, these three concepts have made more millionaires than any other type of venture in human history. Having said that, why aren't you creating your wealth with real estate? For many, it is fear; for others it is lack of capital. However, for all, it is merely a lack of understanding. People buy and sell real estate with no money down all of the time, and real estate has always been a much safer investment than the stock market.
So how do you get started?
The first step is always education. Start reading books about real estate investments. Go the book store or library and learn the fundamentals. You don't need to be an expert, but you must understand the process. Find a realtor that works with investment properties and ask questions. Do the same for mortgage brokers and banks. Sit down with a loan officer or mortgage broker and determine how you would finance an investment. Ask questions and find real estate and finance professionals that can help protect your interests as you learn.
The next step? ... Find the properties.
With the aid of the real estate professionals, determine the best type of investment for your lifestyle, financial position, and risk profile. After you determined best type of property to maximize your return, begin searching for your investment. For this, the internet has become an invaluable, time saving, tool. Search for potential investments at sites like freeForclosureSearch.com (http://www.foreclosurefreesearch.com/index.cfm?rsp=2428) or Reals.com (http://www.reals.com) In addition, you can look through your local paper, visit county the county recorder, and call on the resources of your network to find the opportunity.
But how do I recognize the opportunity when I find it?
Valuing a potential investment is not as difficult as it may seem. For investors looking to receive a return for charging rents, evaluation software such as IP Ware (http://www.freetrainer.com) aids in finding the maximum return on investment. For investors that are looking to renovate and re-sell, comparable values of the surrounding area can be a good foundation. Finally, for those that are looking for people that must sell at a substantial sacrifice, mortgage lenders, tax records, and financing groups can be a significant source of information.
Investing in real estate is a simple process. It is merely a matter of locating a potentially good investment. Determining how to best leverage that investment. Then using your resources and relationships to minimize your risk, and maximize your return. There is a myriad of resources available to beginning real estate investors. Isn't it time you took advantage of the opportunities in real estate and started building your wealth?
View the original article here
Thursday, July 21, 2011
Negotiating the Real Estate Contract
Negotiating the Real Estate Contract
There is no "one size fits all" strategy of negotiating a real estate contract. Negotiation is the process of communication back and forth in order to reach a joint agreement. Many of our clients have been very experienced negotiators, and we have learned a great deal from them, as well as from books on the subject. We would like to share some of our thoughts on negotiating with you:
What do we want to achieve in a negotiation?
The best negotiators bring an attitude of high expectations to the table. They are hard on the problem and soft on the people. Letting the seller know what you need, in a clear and reasoned way, is the first step toward getting it. We try to keep all of these goals in mind:
Enable you to move into your new home. Obtain the lowest possible price for the property. Close within an acceptable time frame. Solve any repair issues fairly. Have no title, survey or loan problems, or solve any that do arise. Develop a good working relationship with the seller. Have no future problems after closing.
Is a cooperative or combative approach more effective?
Our experience shows that the cooperative style is the most effective and efficient way to complete a transaction. Professional negotiators usually try to preserve the relationship between the parties, and work together to resolve problems. The goal is not to reach an impasse in which neither the seller's nor the buyer's needs are met. Buyers sometimes submit a letter to the seller describing why their house is not worth what they are asking, pointing out deficiencies, etc. This almost always backfires, and starts the negotiation off with a defensive seller. It is best to anchor your price to the marketplace, while remaining very complimentary of their home.
How do you work with a combative strategy by a seller or agent?
The combative style is sometimes encountered. This strategy includes: negative comments, emotional statements, table pounding, threats to walk out, ego involvement, and stated positioning. Creative solutions and trade offs are not as likely to be found in this environment. Working with a combative style negotiator requires a considered approach:
Do not respond emotionally. An angry or defensive response will escalate the negotiation into a no-win battle. Do not argue. Arguing usually positions them more strongly and drags the negotiation process off course.
Do not ignore their arguments or statements. Listen carefully, but do not accept or reject. Firmly anchor pricing and other terms to outside data. Show that the price has not been chosen arbitrarily. Reduce misunderstanding by following up with written summaries of discussions. Do not allow hazy or unclear proposals to stand. Offer some "wins" on some of the terms. Face saving is very important.
Look for ways to meet their underlying interests.
Remember that they may have a beautiful home that satisfies the buyer's goals.
Is every point in the contact negotiable?
Yes. However, one of the most effective means of coming to an agreement is to rely on consistent standards or norms when possible. For example, it is common practice for the seller to pay for the title policy and for the buyer to pay survey cost. Using accepted standards prevents buyer and seller from haggling over every point. Working within the accepted "norms" for our area helps to legitimize offers, and focus the negotiation on just a few points. On the other hand, all the points in an offer can be used to help structure the deal. They offer trade-off opportunities for both parties to get what they want from the negotiation.
The value of trust in a negotiation
The value of trust in a negotiation cannot be overstated. Most people are fair minded and reasonable. They respond well to respectful treatment and to having their concerns heard. If the seller feels that the buyer and agent are acting with integrity, their attitude will be much more cooperative. Contract negotiation is a sensitive area, and anxiety can be high. The buyers may have had an unpleasant past experience with buying a home. The seller may be under pressure, with future plans at stake. Acting with integrity does not mean that all "cards have to be put on the table." It is not proper to discuss personal issues that affect the buyer, such as your financial ability or urgency to move in. It is valuable to develop rapport because trust increases your leverage. Here are ways:
Finding common ground with the seller can be a very powerful tool in the event of multiple offers. I can think of several instances in which sellers selected their contract for very personal reasons. (The family reminded them of themselves when they moved in with young children years before. Or, they were both of the same religion. Or, the new owners would care for their gardens.)
Understanding your leverage
The more we can find out about the seller's needs, the better chance we have to find solutions to negotiation hurdles. We will be able to offer information or concessions that appeal to the seller's deepest concerns. Obviously, if the house has been on the market for 300 days, you have a lot more leverage than you would with a brand new listing. If their time frame is immediate, and you can meet it, you have some leverage. If they have multiple offers, you have very little leverage!
How much under list price should you offer?
Buyers usually offer less than list price, unless it is a strong sellers market. There is no standard percentage "under list price" that can be used. A market analysis will show recent sales for the neighborhood, which is the best way to establish the offer price.
It is usually counter-productive to offer so low that the seller will automatically reject the offer. This will set a negative tone, and may result in an emotional response from the seller.
What if we have a multiple offer situation?
Occasionally the seller receives more than one offer on their property. The Austin Board of REALTORS® has a policy that allows two options: disclosure to all parties that multiple offers have been received, or disclosure to no one that there are multiple offers. We prefer disclosure to all parties. However, the listing agent and seller will make the decision as to how they will handle offers. By simply disclosing that there are multiple offers, they are not "shopping" your contract. Shopping occurs when the seller discloses the terms of an offer to induce a buyer to submit a better offer. This can result in major distrust of the process by the parties, and the likelihood of loss of the buyers.
Usually the procedure is to notify each party that multiple offers have been received. Each party is then given the opportunity to raise or adjust his offer by a certain time. After that time, the seller is free to review all offers and choose one to work with. They are not obligated to choose the "first" offer that came in. The selected offer may be countered, or accepted as is.
View the original article here
There is no "one size fits all" strategy of negotiating a real estate contract. Negotiation is the process of communication back and forth in order to reach a joint agreement. Many of our clients have been very experienced negotiators, and we have learned a great deal from them, as well as from books on the subject. We would like to share some of our thoughts on negotiating with you:
What do we want to achieve in a negotiation?
The best negotiators bring an attitude of high expectations to the table. They are hard on the problem and soft on the people. Letting the seller know what you need, in a clear and reasoned way, is the first step toward getting it. We try to keep all of these goals in mind:
Enable you to move into your new home. Obtain the lowest possible price for the property. Close within an acceptable time frame. Solve any repair issues fairly. Have no title, survey or loan problems, or solve any that do arise. Develop a good working relationship with the seller. Have no future problems after closing.
Is a cooperative or combative approach more effective?
Our experience shows that the cooperative style is the most effective and efficient way to complete a transaction. Professional negotiators usually try to preserve the relationship between the parties, and work together to resolve problems. The goal is not to reach an impasse in which neither the seller's nor the buyer's needs are met. Buyers sometimes submit a letter to the seller describing why their house is not worth what they are asking, pointing out deficiencies, etc. This almost always backfires, and starts the negotiation off with a defensive seller. It is best to anchor your price to the marketplace, while remaining very complimentary of their home.
How do you work with a combative strategy by a seller or agent?
The combative style is sometimes encountered. This strategy includes: negative comments, emotional statements, table pounding, threats to walk out, ego involvement, and stated positioning. Creative solutions and trade offs are not as likely to be found in this environment. Working with a combative style negotiator requires a considered approach:
Do not respond emotionally. An angry or defensive response will escalate the negotiation into a no-win battle. Do not argue. Arguing usually positions them more strongly and drags the negotiation process off course.
Do not ignore their arguments or statements. Listen carefully, but do not accept or reject. Firmly anchor pricing and other terms to outside data. Show that the price has not been chosen arbitrarily. Reduce misunderstanding by following up with written summaries of discussions. Do not allow hazy or unclear proposals to stand. Offer some "wins" on some of the terms. Face saving is very important.
Look for ways to meet their underlying interests.
Remember that they may have a beautiful home that satisfies the buyer's goals.
Is every point in the contact negotiable?
Yes. However, one of the most effective means of coming to an agreement is to rely on consistent standards or norms when possible. For example, it is common practice for the seller to pay for the title policy and for the buyer to pay survey cost. Using accepted standards prevents buyer and seller from haggling over every point. Working within the accepted "norms" for our area helps to legitimize offers, and focus the negotiation on just a few points. On the other hand, all the points in an offer can be used to help structure the deal. They offer trade-off opportunities for both parties to get what they want from the negotiation.
The value of trust in a negotiation
The value of trust in a negotiation cannot be overstated. Most people are fair minded and reasonable. They respond well to respectful treatment and to having their concerns heard. If the seller feels that the buyer and agent are acting with integrity, their attitude will be much more cooperative. Contract negotiation is a sensitive area, and anxiety can be high. The buyers may have had an unpleasant past experience with buying a home. The seller may be under pressure, with future plans at stake. Acting with integrity does not mean that all "cards have to be put on the table." It is not proper to discuss personal issues that affect the buyer, such as your financial ability or urgency to move in. It is valuable to develop rapport because trust increases your leverage. Here are ways:
- Listen and understand what the seller has to say.
- Express appreciation for the seller's home, gardens, decorating.
- Respond within a reasonable time to counter offers.
- Reassure the seller of your ability to close.
- Reveal some personal information about yourselves.
Finding common ground with the seller can be a very powerful tool in the event of multiple offers. I can think of several instances in which sellers selected their contract for very personal reasons. (The family reminded them of themselves when they moved in with young children years before. Or, they were both of the same religion. Or, the new owners would care for their gardens.)
Understanding your leverage
The more we can find out about the seller's needs, the better chance we have to find solutions to negotiation hurdles. We will be able to offer information or concessions that appeal to the seller's deepest concerns. Obviously, if the house has been on the market for 300 days, you have a lot more leverage than you would with a brand new listing. If their time frame is immediate, and you can meet it, you have some leverage. If they have multiple offers, you have very little leverage!
How much under list price should you offer?
Buyers usually offer less than list price, unless it is a strong sellers market. There is no standard percentage "under list price" that can be used. A market analysis will show recent sales for the neighborhood, which is the best way to establish the offer price.
It is usually counter-productive to offer so low that the seller will automatically reject the offer. This will set a negative tone, and may result in an emotional response from the seller.
What if we have a multiple offer situation?
Occasionally the seller receives more than one offer on their property. The Austin Board of REALTORS® has a policy that allows two options: disclosure to all parties that multiple offers have been received, or disclosure to no one that there are multiple offers. We prefer disclosure to all parties. However, the listing agent and seller will make the decision as to how they will handle offers. By simply disclosing that there are multiple offers, they are not "shopping" your contract. Shopping occurs when the seller discloses the terms of an offer to induce a buyer to submit a better offer. This can result in major distrust of the process by the parties, and the likelihood of loss of the buyers.
Usually the procedure is to notify each party that multiple offers have been received. Each party is then given the opportunity to raise or adjust his offer by a certain time. After that time, the seller is free to review all offers and choose one to work with. They are not obligated to choose the "first" offer that came in. The selected offer may be countered, or accepted as is.
View the original article here
Tuesday, July 19, 2011
Real estate auction action - Buying a home at auction
Due in part to the popularity of the U. S. Department of Housing and Urban Development (HUD)'s home auction program, more potential homebuyers than ever are buying homes at auction. Homes for auction aren't limited to just HUD, however. Many government entities auction homes for payment of back taxes, and some homeowners even auction their homes on eBay.com!
Homebuyers considering buying a home at auction should take some steps in advance to help them with their bid price, and even whether to bid at all on a specific home. There will always be a degree of risk when buying a home this way, but with a little diligence, potential homebuyers could save a lot of money buying in this manner.
Before the auction, you should have your financing arranged, and have enough cash on hand or in your bank account to cover a deposit on your purchase. You need to check the features, location, condition, and ownership history first. Afterwards, be sure to learn what the property is worth by looking at sales of comparable properties in the same area. Compare homes with the same number of rooms is possible, but be sure to allow for price differences due to pools, decks, carpeting, window treatments, etc.
At the auction itself, resist the temptation to get into a personal bidding war, just "to beat out the other guy".
Have a set price limit and stick to it. Other houses will come along, and you don't have to win the first auction that comes your way.
You should know that the price of a home at auction is typically the loan balance (if foreclosed), plus any back taxes owed, plus legal fees and other expenses in foreclosing the property. This will typically be the opening bid amount, and the price will go up from there. Even so, it's possible to get a great deal in an auctioned house, with a little research and planning first.
Also, know that you probably won't be able to get an inspection, and are buying the home "as is". If you can't do any needed repair work yourself, or can't hire it done within your budget, you may not end up getting such a bargain in the end.
View the original article here
Homebuyers considering buying a home at auction should take some steps in advance to help them with their bid price, and even whether to bid at all on a specific home. There will always be a degree of risk when buying a home this way, but with a little diligence, potential homebuyers could save a lot of money buying in this manner.
Before the auction, you should have your financing arranged, and have enough cash on hand or in your bank account to cover a deposit on your purchase. You need to check the features, location, condition, and ownership history first. Afterwards, be sure to learn what the property is worth by looking at sales of comparable properties in the same area. Compare homes with the same number of rooms is possible, but be sure to allow for price differences due to pools, decks, carpeting, window treatments, etc.
At the auction itself, resist the temptation to get into a personal bidding war, just "to beat out the other guy".
Have a set price limit and stick to it. Other houses will come along, and you don't have to win the first auction that comes your way.
You should know that the price of a home at auction is typically the loan balance (if foreclosed), plus any back taxes owed, plus legal fees and other expenses in foreclosing the property. This will typically be the opening bid amount, and the price will go up from there. Even so, it's possible to get a great deal in an auctioned house, with a little research and planning first.
Also, know that you probably won't be able to get an inspection, and are buying the home "as is". If you can't do any needed repair work yourself, or can't hire it done within your budget, you may not end up getting such a bargain in the end.
View the original article here
Sunday, July 17, 2011
Real Estate Development Marketing - A Specialist Article For
Real Estate Development Marketing!
When do you start?
As soon as you open your 'baby blue eyes' every morning!
"The Easy Part of Property Development is Spending Money" ... "Marketing Is What Gets It Back + A Bit More For Profit."
Anyone can spend money. It takes a good manager to spend it at a predetermined rate in line with a planned 'cash flow.'
So this topic is very important. People think Development Marketing is all about putting an advert in the paper, designing a brochure and following up the agents ... I don't think so folks!!
Marketing starts before you buy the land.
The location of the land impacts on marketing. Is it a desirable address? Is it in a prestigue location? What market sector of the buying public are you aiming for? Does the site have local prominence? Does the land have quality houses around it?
All of these questions impact on your marketing plan, the home designs you select, the costings and untimate sales prices.
So if marketing starts with the land selection, it logically then goes on to the design stage. Assuming you don't want to just copy something you've seen another developer has done, you need market knowledge.
You need maket knowledge of the exact standard of product you are competing against in the market now. Remember you won't be producing yours for another 12 months or so and you'll want to improve on what is being produced today, so you have a market difference. An 'Edge.'
Marketing is no more than the presentation of your finished product to the buying public in the most favourable light, highlighting all the benefits your home has over the competition.
One kind of marketing style that is a failure as far as I am concerned is the one that is based on the "Numbers Comparison." I am sure you've seen the on site project boards.
Our house has 5 of these, and 6 of those ... when that guy's house only has 4 of these and 3 of those. The potential buyer will eventually want to know these things, but "Right Now" they want to know "How They Feel" about living in the place, on your Road, in this neighborhood.
Understand this: People SELL for Money ... People BUY with Emotion.
If they don't feel good in your place, it does not matter if you give then 12 of these and 20 of those ... OK?
I have always DEVELOPED and MARKETED on the basis of appealing to the human senses of See - Feel - Touch - Smell & Sound.
I transfer all those into my designs, because I am designing and building for 'Humans Beings' and human beings buy with emotions ... and if I do my work well, I'll make a profit.
So as a buyer, if a house looks good when I drive up to inspect it, I am favouable disposed to buy before I open the garden gate.
When my feet touch the pathway/ entrance foyer and see the lovely landscaping my desire to buy is enhanced.
As I enter the house and feel the ambience of the house envelop me I respond in a positive way to buy, if I feel emotionally comfortable in the space.
When I smell all the new house smells, it translates into 'fresh' 'clean' 'new' and who doesn't want to buy fresh new things.
When I close the door of the house I enjoy hearing the sound of silence, which is conducive to rest and recuperation after a hard days work.
Think about how you respond to each house you inspect as you go about gaining market knowledge. Do you see, it does not matter how many 'bibs & bobs' the place has ... if they don't feel emotionally comfortable in the place, they won't BUY!
Can you see why this is my number one topic?
So naturally I write about it a great deal in Residential Developmemnt Made Easy.
So now you have some idea why marketing starts as soon as you open your 'baby blue eyes' every morning ... marketing is a direct reflection of who you are and how you expresss yourself in creating beautiful livable space FOR HUMAN BEINGS.
The 'by-product' happens to be 'money.' And if you do it very well, it happens to be 'Lots of Money.
View the original article here
When do you start?
As soon as you open your 'baby blue eyes' every morning!
"The Easy Part of Property Development is Spending Money" ... "Marketing Is What Gets It Back + A Bit More For Profit."
Anyone can spend money. It takes a good manager to spend it at a predetermined rate in line with a planned 'cash flow.'
So this topic is very important. People think Development Marketing is all about putting an advert in the paper, designing a brochure and following up the agents ... I don't think so folks!!
Marketing starts before you buy the land.
The location of the land impacts on marketing. Is it a desirable address? Is it in a prestigue location? What market sector of the buying public are you aiming for? Does the site have local prominence? Does the land have quality houses around it?
All of these questions impact on your marketing plan, the home designs you select, the costings and untimate sales prices.
So if marketing starts with the land selection, it logically then goes on to the design stage. Assuming you don't want to just copy something you've seen another developer has done, you need market knowledge.
You need maket knowledge of the exact standard of product you are competing against in the market now. Remember you won't be producing yours for another 12 months or so and you'll want to improve on what is being produced today, so you have a market difference. An 'Edge.'
Marketing is no more than the presentation of your finished product to the buying public in the most favourable light, highlighting all the benefits your home has over the competition.
One kind of marketing style that is a failure as far as I am concerned is the one that is based on the "Numbers Comparison." I am sure you've seen the on site project boards.
Our house has 5 of these, and 6 of those ... when that guy's house only has 4 of these and 3 of those. The potential buyer will eventually want to know these things, but "Right Now" they want to know "How They Feel" about living in the place, on your Road, in this neighborhood.
Understand this: People SELL for Money ... People BUY with Emotion.
If they don't feel good in your place, it does not matter if you give then 12 of these and 20 of those ... OK?
I have always DEVELOPED and MARKETED on the basis of appealing to the human senses of See - Feel - Touch - Smell & Sound.
I transfer all those into my designs, because I am designing and building for 'Humans Beings' and human beings buy with emotions ... and if I do my work well, I'll make a profit.
So as a buyer, if a house looks good when I drive up to inspect it, I am favouable disposed to buy before I open the garden gate.
When my feet touch the pathway/ entrance foyer and see the lovely landscaping my desire to buy is enhanced.
As I enter the house and feel the ambience of the house envelop me I respond in a positive way to buy, if I feel emotionally comfortable in the space.
When I smell all the new house smells, it translates into 'fresh' 'clean' 'new' and who doesn't want to buy fresh new things.
When I close the door of the house I enjoy hearing the sound of silence, which is conducive to rest and recuperation after a hard days work.
Think about how you respond to each house you inspect as you go about gaining market knowledge. Do you see, it does not matter how many 'bibs & bobs' the place has ... if they don't feel emotionally comfortable in the place, they won't BUY!
Can you see why this is my number one topic?
So naturally I write about it a great deal in Residential Developmemnt Made Easy.
So now you have some idea why marketing starts as soon as you open your 'baby blue eyes' every morning ... marketing is a direct reflection of who you are and how you expresss yourself in creating beautiful livable space FOR HUMAN BEINGS.
The 'by-product' happens to be 'money.' And if you do it very well, it happens to be 'Lots of Money.
View the original article here
Thursday, July 14, 2011
McCann Realty Increases Portfolio in Houston, Texas, Acquires Estancia at Shadowlake Apartments
McCann Realty Partners, LLC ("McCann") announced the acquisition of Estancia at Shadowlake in Houston, Texas. The 324-unit, garden-style community located in the Alief/Westchase submarket of metropolitan Houston was built in 2005 and will be managed by Pegasus Residential, LLC. The acquisition was funded in part by a seven-year Freddie Mac fixed rate loan with a rate of 4.42 percent originated by Wells Fargo Multifamily Capital.
"Estancia at Shadowlake is a Class A suburban garden community in an improving Houston submarket with the immediate opportunity to increase economic occupancy and cash flow," said McCann's Chief Investment Officer Brand Inlow.
"We see Houston as a good market that is getting better every quarter from very strong in-migration and job growth. While the market will see new supply by the second half of 2012, there is very little new supply over the next 12 months," said John McCann of McCann Realty Partners. "We liked the value we saw in Estancia at Shadowlake, which we acquired well below replacement cost with attractive Freddie Mac debt and the prospect for solid rent growth."
McCann is currently seeking apartment acquisitions in the Mid-Atlantic, Southeast and Texas. For more information, please contact Brand Inlow, Chief Investment Officer, at (804) 290-8870.
Formed in October 2004, McCann Realty Partners and its principals have decades of diverse experience in the apartment business. MRP teams with institutional capital sources to acquire, develop and manage garden apartment communities in the Southeast, Southwest and adjacent regions. By leveraging industry relationships developed during the past 40 years, MRP has demonstrated its ability to access capital and locate, finance and close apartment deals. The Company is in the market continuously to acquire both Class A and value-add apartment communities of 150 units or more.
Since inception, MRP has acquired 17 apartment communities totaling more than 4,100 units in transactions valued at approximately $325 million. The Company also develops apartment communities in Texas. It is currently building in suburban Houston and is scheduled to start another community in north Dallas in the fall.
Wells Fargo & Company has integrated nationwide commercial real estate banking, capital markets, and advisory services into a single platform that includes lending, syndications, debt placement, equity raising and underwriting, M&A and servicing. Wells Fargo was ranked as the nation's largest commercial real estate lender and servicer by the Mortgage Bankers Association for 2010. Wells Fargo was named the largest issuer of preferred stock REIT equity and the largest domestic REIT and real estate bookrunner by Thompson Financial in 2010, as well as the most active brokerage of large commercial real estate sales in 2010 by Real Estate Alert.
View the original article here
"Estancia at Shadowlake is a Class A suburban garden community in an improving Houston submarket with the immediate opportunity to increase economic occupancy and cash flow," said McCann's Chief Investment Officer Brand Inlow.
"We see Houston as a good market that is getting better every quarter from very strong in-migration and job growth. While the market will see new supply by the second half of 2012, there is very little new supply over the next 12 months," said John McCann of McCann Realty Partners. "We liked the value we saw in Estancia at Shadowlake, which we acquired well below replacement cost with attractive Freddie Mac debt and the prospect for solid rent growth."
McCann is currently seeking apartment acquisitions in the Mid-Atlantic, Southeast and Texas. For more information, please contact Brand Inlow, Chief Investment Officer, at (804) 290-8870.
Formed in October 2004, McCann Realty Partners and its principals have decades of diverse experience in the apartment business. MRP teams with institutional capital sources to acquire, develop and manage garden apartment communities in the Southeast, Southwest and adjacent regions. By leveraging industry relationships developed during the past 40 years, MRP has demonstrated its ability to access capital and locate, finance and close apartment deals. The Company is in the market continuously to acquire both Class A and value-add apartment communities of 150 units or more.
Since inception, MRP has acquired 17 apartment communities totaling more than 4,100 units in transactions valued at approximately $325 million. The Company also develops apartment communities in Texas. It is currently building in suburban Houston and is scheduled to start another community in north Dallas in the fall.
Wells Fargo & Company has integrated nationwide commercial real estate banking, capital markets, and advisory services into a single platform that includes lending, syndications, debt placement, equity raising and underwriting, M&A and servicing. Wells Fargo was ranked as the nation's largest commercial real estate lender and servicer by the Mortgage Bankers Association for 2010. Wells Fargo was named the largest issuer of preferred stock REIT equity and the largest domestic REIT and real estate bookrunner by Thompson Financial in 2010, as well as the most active brokerage of large commercial real estate sales in 2010 by Real Estate Alert.
View the original article here
Friday, June 10, 2011
NY Times Buy vs. Rent Calculator
The New York Times has one of the slickest looking buy or rent calculators (one of the hottest Devil’s Advocate subjects on Bargaineering is rent vs. buy) I’ve seen in quite some time. It can be as complicated (using advanced settings) or as simple (fill out five fields – monthly rent, home price, down payment, mortgage rate, and property taxes) as you want and it gives you an answer in an easy to see graph.
I decided it would be fun to put in our information from when we bought our home six years ago. We paid $295,000, put 20% down, and faced monthly rent somewhere in the neighborhood of $1,500 for a 2-bedroom apartment. We know our mortgage interest rate was 5.25% and property taxes at around 1% (due to a homestead tax cap, our actual rate is 3% but the effective rate is only around 1%).
For the most part, we assume rent increases with historical inflation (~4%) and if we have a home price change of 0% (which is close to reality, our home is worth no more and really no less than it did six years ago), the calculator says we would break even at 12 years. We’re halfway there. A change of just 1% in appreciation, which is lower than the historical appreciation of homes (but more than the actual appreciation over the last six years) reduces that breakeven point by 3 years. 2% appreciation (annually each year) means we would’ve broken even in six years.
Back when I did the rent vs. buy analysis, I assumed home prices would increase with inflation. 4% appreciation with 4% inflation meant I’d break even after 3 years, a near no-brainer given my situation. Even at 3% appreciation, 3% inflation, breakeven was after 5 years.
The fun part about the calculator is the graph. It responds instantly to all the fields and tickers you play with. The wealth of information at the bottom (which you reveal when you click on a year in the graph) is also pretty handy too, especially if you like to play with numbers.
View the original article here
I decided it would be fun to put in our information from when we bought our home six years ago. We paid $295,000, put 20% down, and faced monthly rent somewhere in the neighborhood of $1,500 for a 2-bedroom apartment. We know our mortgage interest rate was 5.25% and property taxes at around 1% (due to a homestead tax cap, our actual rate is 3% but the effective rate is only around 1%).
For the most part, we assume rent increases with historical inflation (~4%) and if we have a home price change of 0% (which is close to reality, our home is worth no more and really no less than it did six years ago), the calculator says we would break even at 12 years. We’re halfway there. A change of just 1% in appreciation, which is lower than the historical appreciation of homes (but more than the actual appreciation over the last six years) reduces that breakeven point by 3 years. 2% appreciation (annually each year) means we would’ve broken even in six years.
Back when I did the rent vs. buy analysis, I assumed home prices would increase with inflation. 4% appreciation with 4% inflation meant I’d break even after 3 years, a near no-brainer given my situation. Even at 3% appreciation, 3% inflation, breakeven was after 5 years.
The fun part about the calculator is the graph. It responds instantly to all the fields and tickers you play with. The wealth of information at the bottom (which you reveal when you click on a year in the graph) is also pretty handy too, especially if you like to play with numbers.
View the original article here
Thursday, June 2, 2011
Lancaster PA Home Sales Investing In A Home
When it comes to looking for homes in Lancaster, PA, the first thing you will want to know is that you have chosen a wonderful place to live. If you are moving to Lancaster because of a job, you will not be disappointed with your new location. If you are moving to Lancaster because you want to live here, then you already know about this county's many charms. Not only is this the most beautiful region in Pennsylvania, but it is also the home of Pennsylvania Dutch county. Many people travel here to have a unique Amish experience. The presence of the Susquehanna River makes for some great fishing and wonderful scenery. If you are searching for Lancaster PA home sales, however, then it is possible that you need a little help. Without a doubt, looking for Lancaster PA real estate for sale can be a little overwhelming.
Lancaster PA home sales can be a little difficult because this county contains a number of different environments for different people. For example, some people really like to be out in the middle of nowhere. They enjoy the peace and quiet and they like to know that they are in not of danger of being bothered. There is plenty of Lancaster PA real estate for sale that can meet these needs. Likewise, there are plenty of homes that are right in the city of Lancaster where all of the action happens. Without a good agent, however, this process can be time consuming, expensive, and a giant hassle all around.
You should be wondering now what makes a good agent. To begin with, you agent will listen to your needs and wants, this way he or she will only show you Lancaster PA home sales that you might find even the least bit appealing. In other words, if you are terrified by the feeling of being out in the country by yourself, your agent will not keep showing you Lancaster PA real estate for sale that is in the middle of nowhere. This may seem like not a lot to ask, but many agents are only interested in pushing sales on the clients.
The truth is that you will want to sit down with your agent and talk. Before you even start learning about Lancaster PA home sales, you should have a discussion with your agent about the kind of home you can see yourself in. A house is a real investment, so you need to be sure that you can commit yourself to the Lancaster PA real estate for sale that you are considering.
View the original article here
Lancaster PA home sales can be a little difficult because this county contains a number of different environments for different people. For example, some people really like to be out in the middle of nowhere. They enjoy the peace and quiet and they like to know that they are in not of danger of being bothered. There is plenty of Lancaster PA real estate for sale that can meet these needs. Likewise, there are plenty of homes that are right in the city of Lancaster where all of the action happens. Without a good agent, however, this process can be time consuming, expensive, and a giant hassle all around.
You should be wondering now what makes a good agent. To begin with, you agent will listen to your needs and wants, this way he or she will only show you Lancaster PA home sales that you might find even the least bit appealing. In other words, if you are terrified by the feeling of being out in the country by yourself, your agent will not keep showing you Lancaster PA real estate for sale that is in the middle of nowhere. This may seem like not a lot to ask, but many agents are only interested in pushing sales on the clients.
The truth is that you will want to sit down with your agent and talk. Before you even start learning about Lancaster PA home sales, you should have a discussion with your agent about the kind of home you can see yourself in. A house is a real investment, so you need to be sure that you can commit yourself to the Lancaster PA real estate for sale that you are considering.
View the original article here
Saturday, May 28, 2011
Why Asking too Much For Your Home Doesn’t Help it Sell
Since the fall of housing prices over the last few years, many home owners seem determined to get at least their purchase price out of their home for sale, while many others are looking to recoup the amount of money that they've paid into their homes. While this seems like a reasonable strategy, when you consider that the fall in housing prices has greatly reduced the amount of money that many of these homes are worth now, it is easy to see how listing your home at possibly a hugely inflated price is most certainly going to hurt your chance of a sale.
There are many problems with pricing your home with unrealistic expectations, as you can well imagine. Firstly, if you price your home like you're trying to sell it to home buyers who've taken a time machine trip from 2005, you're likely to not get many people coming to look at your home. Anyone who is looking for homes in the price range that you've set for your home is probably going to be looking at substantially nicer or larger homes than yours because your home should be priced in a lower bracket. If you do get any prospective buyers coming through to tour your home, you are likely to not get many offers'at least not in the range that you're looking for.
What home owners might not realise though, is that a home that sits on the market for long periods of time isn't encouraging for prospective buyers; they see that a property has been on the market for months'maybe with small drops in the outrageous asking price'and decide that all the other buyers out there have already decided that it's not a property that's worth buying. In addition, you've had to keep your home in a show-ready state for months in case a realtor calls to show your house; this can be merely a hassle to keep a home in a permanently staged state and it can also cost you money if you're renting furniture or having a house cleaner come in to help you keep it immaculate.
For your best results in home selling, consult your realtor for their judgement on what kind of listing price they think that you should start with; many listing agents won't even take on a client if they insist on pricing their home completely unreasonably because they know that it can be a waste of time to go through all that work for something that isn't going to sell.
View the original article here
There are many problems with pricing your home with unrealistic expectations, as you can well imagine. Firstly, if you price your home like you're trying to sell it to home buyers who've taken a time machine trip from 2005, you're likely to not get many people coming to look at your home. Anyone who is looking for homes in the price range that you've set for your home is probably going to be looking at substantially nicer or larger homes than yours because your home should be priced in a lower bracket. If you do get any prospective buyers coming through to tour your home, you are likely to not get many offers'at least not in the range that you're looking for.
What home owners might not realise though, is that a home that sits on the market for long periods of time isn't encouraging for prospective buyers; they see that a property has been on the market for months'maybe with small drops in the outrageous asking price'and decide that all the other buyers out there have already decided that it's not a property that's worth buying. In addition, you've had to keep your home in a show-ready state for months in case a realtor calls to show your house; this can be merely a hassle to keep a home in a permanently staged state and it can also cost you money if you're renting furniture or having a house cleaner come in to help you keep it immaculate.
For your best results in home selling, consult your realtor for their judgement on what kind of listing price they think that you should start with; many listing agents won't even take on a client if they insist on pricing their home completely unreasonably because they know that it can be a waste of time to go through all that work for something that isn't going to sell.
View the original article here
Warning Signs to Look For in a Home
When house hunting, it’s easy to get caught up in the great aspects of a house, but it’s critical that you keep an eye out for warning signs and ask plenty of questions.
It’s important to look at the not-so-obvious problems and potential problems that could arise if you buy the home. Discovering flaws could help you when negotiating price, and it will give you time to consider just how many repairs need to be made if you decide to purchase the house.
To avoid later grief, consider this list of tips and questions when deciding if a particular type of home is right for you.
Neighborhood
Exterior
Stand across the street.
Garage
Interior
Check the ceilings and walls for watermark stains or mold; this is an indication of water damage. Consider visiting the house on a rainy day to check for leaks.
Flooring
Wood flooring and natural stone should be sealed with non-toxic sealers.
Electrical
Water
General
You probably have more questions of your own, but hopefully you will consider these to be a good start as you determine whether a particular house is the one you want to call “home sweet home.”
View the original article here
It’s important to look at the not-so-obvious problems and potential problems that could arise if you buy the home. Discovering flaws could help you when negotiating price, and it will give you time to consider just how many repairs need to be made if you decide to purchase the house.
To avoid later grief, consider this list of tips and questions when deciding if a particular type of home is right for you.
Neighborhood
- Have neighbors complained about air or noise pollution from traffic and industry in the area?
- How close is the house to power lines or large electrical towers?
- When it rains, is there good drainage or does the street flood, threatening to do the same to your basement?
Exterior
Stand across the street.
- Does the land slope toward the house? (Drainage should be away from the perimeter of the home)
- Do any of the materials show signs of rotting or a previous bug problem?
- Does the house have suitable storm windows?
- Do all the windows have screens? Do they open and close easily? (Press your finger into the wood of the sills; if it’s soft, it’s rotten!)
- Are all doors able to shut completely to avoid drafts/bugs?
- When was the roof last replaced?
- Are there odd bumps or dips?
- Are shingles missing?
Garage
- If the house has an attached garage, is there space or a well-sealed door between the garage and the living area?
- Is there adequate vehicle and storage space?
Interior
Check the ceilings and walls for watermark stains or mold; this is an indication of water damage. Consider visiting the house on a rainy day to check for leaks.
- Does the basement or crawl space smell damp or moldy?
- Does the staircase seem sturdy, or is it squeaky and unsteady?
- Is the paint peeling or the molding cracked?
Flooring
Wood flooring and natural stone should be sealed with non-toxic sealers.
- What’s underneath? (Less expensive subflooring is prone to water damage.Inspect tiles and grout for cracks.Check for holes and crevices that could let in pests.)
Electrical
- Does the location of the home make it prone to power outages?
- Are the switches antiquated? If so, perhaps the wiring is too.
- Is the fuse box easy to understand?
- Are there enough outlets for your needs?
- Are they in preferable places throughout the house? (Try to avoid situations where the bedroom backs up against the kitchen wall where the refrigerator or other large appliances are running.)
Water
- Does the home have copper plumbing? (Run the water in the kitchen, bathroom and laundry room to test water pressure, cleanliness of the water and proper drainage.Look for moisture damage, mold or leaking around and underneath the sink.Check the hot water system.)
- Is it leaky or rusty?
- Is it big enough for your family?
General
- Does the house have central heating and air conditioning?
- How old are the systems?
- Are they functioning well?
- What are the average monthly costs for heating and cooling? (Good insulation is key!)
- Is there proper ventilation in the kitchen and bathroom? (The house should be tested for lead, asbestos and radon. A termite check is a good idea too.)
- Is there adequate storage for all of your belongings? (Bring out a tape measure to make sure the furniture you plan to bring with you will fit in the rooms. Measure spaces to make sure your appliances such as the refrigerator, washing machine, dishwasher and microwave will fit.)
You probably have more questions of your own, but hopefully you will consider these to be a good start as you determine whether a particular house is the one you want to call “home sweet home.”
View the original article here
Monday, May 23, 2011
Canada - Most Sought After Destination For the Real Estate Investor
The financial gurus as well as the real estate experts unanimously agree that Canada provides one of the best living opportunities in the world. In fact, it has become the most sought after destination for the real estate investors. Moreover, Canada real estate investing is vast and competitively priced as well as has good appreciation rate. Another major factor that attracted the foreign investors is its hassle free legal system. In fact, if you do a comparative study of real estate market in US, UK or France, you can easily realize that real estate investment in Canada is quite affordable. In fact, despite the high standard of living in Canada, the cost of living here is much lower than most of the other countries.
With the reinforcement of the Canadian economy, more and more people are migrating to the country. This is leading to a growth in the demand for properties. The real estate experts believe that this growing demand in the Canadian real estate market will also radically boost the property values in years to come. One of the biggest advantages of investing in this real estate market is that even the non-resident Canadians can property in this country.
The following are some of the factors that you need to understand before investing in the Canadian real estate markets:
Also read statistics and information about the various economic factors that may affect the market. Reading local newspaper and visiting the particular town's or provincial website can also help you to get a clear idea about its real estate market.
View the original article here
With the reinforcement of the Canadian economy, more and more people are migrating to the country. This is leading to a growth in the demand for properties. The real estate experts believe that this growing demand in the Canadian real estate market will also radically boost the property values in years to come. One of the biggest advantages of investing in this real estate market is that even the non-resident Canadians can property in this country.
The following are some of the factors that you need to understand before investing in the Canadian real estate markets:
- The rising of average incomes -This is one of the factors that you need to take into account while searching for strong real estate markets. It is a good idea to opt for places where the average gross income is increasing faster. This means that the property prices will also follow the same pattern. In fact, it is not the average income that accounts; you need to consider the rate of increase. You can invest in a real estate market even if the average income of that place is lower than the provincial average, provided the rate of the average income is increasing faster than the provincial average.
- The flow of booming markets - You can conveniently invest in a real estate market, if its neighborhoods had recently experienced a strong growth in their property values. Such increase will also have a strong impact on the surrounding areas. Though at a slower rate, these surrounding areas will also heat up eventually. This is a phenomenon that has been noticed repeatedly in surrounding areas of a booming market as well as in the neighborhoods of redeveloping and improving communities. If you follow the pattern minutely you can easily identify such real estate markets, which are about to experience such booms.
Also read statistics and information about the various economic factors that may affect the market. Reading local newspaper and visiting the particular town's or provincial website can also help you to get a clear idea about its real estate market.
View the original article here
Wednesday, May 18, 2011
Real Estate Investing is like a Weight Loss Program
Real Estate Investing is like Weight Loss Program because both of the two takes a lot of effort on your part. It seems amazing that how many people get started in real estate investing, only to fail when the going gets rough. As soon as somebody discovers they can't get wealthy in a week or two, they are on to the next 'hidden guru' clandestine. It's the same as weight loss - everybody talks about it, many try it, but only few of them are succeed. No speculate both the real estate investing information and weight loss products industries make Money and Money!
Weight loss isn't so easy. You may ask somebody who has tried it. Though, the concept of weight loss is very fundamental i.e. burn more calories than you ingest and your body will react accordingly. Unless you have a medical chaos, this formula works for just about anybody. Simple as it may be, the formula is hard, sense it takes a lot of discipline and hard work. So, the weight loss industry has offered us more than hundreds of ways to make it easier. A lot of these solutions do work, but they only work if you put forth more effort.
Now, let's begin with the principle you don't need any of these 'solutions' to make real estate or weight loss work for you. You can eat fewer calories, go walking or jogging every day and you will lose your weight. But, having knowledge of the caloric content of dissimilar foods is pertinent.
Similar principle applies to real estate i.e. you can go out and make hundreds of offers to aggravated sellers and find a fine deal. However, having details about how to solve the seller's requirements and build an offer will help. Having a lawyer, real estate agent will assist you with constructing the offer and the official procedure will make it easier. Having advice from other people who have already completed hundreds of deals will also make it easier for you to learn from other people's achievement. However, whether it is weight loss or real estate, the bottom line does not just know, but doing well. You can't guilt the diet if you don't fix to it. Many have unsuccessful, likely because they didn't give the necessary effort, not because the plan isn't effective.
Both real estate investing dealing and weight loss program are simple, but neither is easy. It takes a lot of work. Having a verified plan helps, but only if you stick to it. It is like the people reading a book on the treadmill at the gym - if you can read a book; you're not working hard enough.
If you are not willing to take action on a huge scale, you won't get more results by buying more products. If you have the discipline to work solid and take reliable action, then products and services will help you get there faster. Whether you are looking to get wealthy or lose weight, the bottom line is you.
View the original article here
Weight loss isn't so easy. You may ask somebody who has tried it. Though, the concept of weight loss is very fundamental i.e. burn more calories than you ingest and your body will react accordingly. Unless you have a medical chaos, this formula works for just about anybody. Simple as it may be, the formula is hard, sense it takes a lot of discipline and hard work. So, the weight loss industry has offered us more than hundreds of ways to make it easier. A lot of these solutions do work, but they only work if you put forth more effort.
Now, let's begin with the principle you don't need any of these 'solutions' to make real estate or weight loss work for you. You can eat fewer calories, go walking or jogging every day and you will lose your weight. But, having knowledge of the caloric content of dissimilar foods is pertinent.
Similar principle applies to real estate i.e. you can go out and make hundreds of offers to aggravated sellers and find a fine deal. However, having details about how to solve the seller's requirements and build an offer will help. Having a lawyer, real estate agent will assist you with constructing the offer and the official procedure will make it easier. Having advice from other people who have already completed hundreds of deals will also make it easier for you to learn from other people's achievement. However, whether it is weight loss or real estate, the bottom line does not just know, but doing well. You can't guilt the diet if you don't fix to it. Many have unsuccessful, likely because they didn't give the necessary effort, not because the plan isn't effective.
Both real estate investing dealing and weight loss program are simple, but neither is easy. It takes a lot of work. Having a verified plan helps, but only if you stick to it. It is like the people reading a book on the treadmill at the gym - if you can read a book; you're not working hard enough.
If you are not willing to take action on a huge scale, you won't get more results by buying more products. If you have the discipline to work solid and take reliable action, then products and services will help you get there faster. Whether you are looking to get wealthy or lose weight, the bottom line is you.
View the original article here
Tuesday, May 17, 2011
Resources for Online Real Estate Courses
You've made the decision to move ahead in the real estate world and get your real estate license through an online course. Navigating the waters of online real estate courses can be tricky, as there are so many institutes, colleges and universities online which promise you the best education programmes. With all of the information that's available, you'll probably need some help. Here is a guide to resources for online real estate courses.
One of the best online guides to help you get started is Elearners.com. This is a great site, that is easy to navigate and fun to use. It offers extensive links to a comprehensive database, which will help you to find that online real estate course that is just right for you. The webmasters also maintain a large collection of FAQs, or Frequently Asked Questions, which will most likely answer many of the questions that you have about getting your degree online. For example, there are questions and answers regarding the types of technological requirements that are needed for online courses.
It is also very important that you verify your online school's accreditation before you officially enrol in your real estate course. This is a significant step, because you need to be sure that your college is approved to teach your real estate programme. Accreditation can be verified by several agencies, but the most reliable agency is the Distance Education Office, which will be happy to help you.
Finally, if you are relying on financial aid for online real estate courses, the Department of Education is a great place to start the application process. You can download your Free Application for Federal Student Aid, or FASFA, for short, at their website. You can also fill it out online, thus speeding up the application process.
Earning your real estate credentials through an online programme should be a rewarding and enjoyable experience and there are many great resources to help you get started.
View the original article here
One of the best online guides to help you get started is Elearners.com. This is a great site, that is easy to navigate and fun to use. It offers extensive links to a comprehensive database, which will help you to find that online real estate course that is just right for you. The webmasters also maintain a large collection of FAQs, or Frequently Asked Questions, which will most likely answer many of the questions that you have about getting your degree online. For example, there are questions and answers regarding the types of technological requirements that are needed for online courses.
It is also very important that you verify your online school's accreditation before you officially enrol in your real estate course. This is a significant step, because you need to be sure that your college is approved to teach your real estate programme. Accreditation can be verified by several agencies, but the most reliable agency is the Distance Education Office, which will be happy to help you.
Finally, if you are relying on financial aid for online real estate courses, the Department of Education is a great place to start the application process. You can download your Free Application for Federal Student Aid, or FASFA, for short, at their website. You can also fill it out online, thus speeding up the application process.
Earning your real estate credentials through an online programme should be a rewarding and enjoyable experience and there are many great resources to help you get started.
View the original article here
Monday, May 16, 2011
How To Sell Your Home Quickly Online
When selling a home, a real estate agent typically earns a six percent commission. While six percent doesn't sound that high, for a $350,000 home that's $21,000 to your agent. In an effort to save money, more and more people are turning to selling their homes without the assistance of an agent.
Until recently, individuals were at a great disadvantage due to a lack of information on the laws and traditions regarding home sales. Agents not only have years of experience, but also have access to the necessary forms. With the help of the internet, the playing field has been leveled and by-owner sales are increasing.
Keep in mind, selling your home yourself does require work. You aren't going to magically sell your home - it will take time and dedication. Everyone wants the savings, but you must decide if you are up to the task yourself. Only about 15% of homeowners sell their own homes, the other 85% percent either don't have the time, are intimidated by the process, or simply aren't interested in handling the negotiations themselves.
If you are up for the task, there are several websites geared toward for sale by owner (FSBO). A simple google search will yield several sites to choose from. One thing to keep in mind is the traffic those sites receive. Just listing your house on the internet is not enough, you must be sure people will find your listing.
These sites will not sell your home for you, hence the term for sale by owner, but they provide you with the tools you will need. They understand that you will be doing all the work the agents typically perform and provide you with the necessary education and materials.
Websites serving FSBO allow you to easily create a virtual listing with pictures and description of your home. They will also supply a sign to be put in your yard with your web listing. Buyers who are interested in your home are able to get all the information from your listing - including asking price, square footage, amenities, school districts, and in some cases they can even learn if they are qualified to buy.
By the time potential buyers contact you, they should be what is referred to as a "hot prospect". Of course this doesn't mean they will definitely buy your home, but it's better than a uniformed buyer off the street. When you do find someone interested in purchasing your home, your FSBO website will offer help with inspections, disclosures, reports, and the proper documentation. Some sites even offer assistance with escrow and closing.
When you're selling your own home, be prepared for closing once an offer is made. You need to take it to your lawyer. If you don't like the offer, don't just turn it down. Make a counter offer. Don't be afraid to negotiate in ways other than dollars and cents in a tight real estate market. Maybe you can leave the window treatments or appliances. You're better off making a few concessions than to wind up with another six months of mortgages payments on a house you no longer want to live in.
View the original article here
Until recently, individuals were at a great disadvantage due to a lack of information on the laws and traditions regarding home sales. Agents not only have years of experience, but also have access to the necessary forms. With the help of the internet, the playing field has been leveled and by-owner sales are increasing.
Keep in mind, selling your home yourself does require work. You aren't going to magically sell your home - it will take time and dedication. Everyone wants the savings, but you must decide if you are up to the task yourself. Only about 15% of homeowners sell their own homes, the other 85% percent either don't have the time, are intimidated by the process, or simply aren't interested in handling the negotiations themselves.
If you are up for the task, there are several websites geared toward for sale by owner (FSBO). A simple google search will yield several sites to choose from. One thing to keep in mind is the traffic those sites receive. Just listing your house on the internet is not enough, you must be sure people will find your listing.
These sites will not sell your home for you, hence the term for sale by owner, but they provide you with the tools you will need. They understand that you will be doing all the work the agents typically perform and provide you with the necessary education and materials.
Websites serving FSBO allow you to easily create a virtual listing with pictures and description of your home. They will also supply a sign to be put in your yard with your web listing. Buyers who are interested in your home are able to get all the information from your listing - including asking price, square footage, amenities, school districts, and in some cases they can even learn if they are qualified to buy.
By the time potential buyers contact you, they should be what is referred to as a "hot prospect". Of course this doesn't mean they will definitely buy your home, but it's better than a uniformed buyer off the street. When you do find someone interested in purchasing your home, your FSBO website will offer help with inspections, disclosures, reports, and the proper documentation. Some sites even offer assistance with escrow and closing.
When you're selling your own home, be prepared for closing once an offer is made. You need to take it to your lawyer. If you don't like the offer, don't just turn it down. Make a counter offer. Don't be afraid to negotiate in ways other than dollars and cents in a tight real estate market. Maybe you can leave the window treatments or appliances. You're better off making a few concessions than to wind up with another six months of mortgages payments on a house you no longer want to live in.
View the original article here
Thursday, May 12, 2011
It’s the Right Time to Buy a Home
Fortune Magazine published a great article this week talking about how the real estate market is on its way back to recovery and wanted to share it.
We think it’s a compelling article that supports our belief that it is a great time to purchase a home due to low home prices and historic low mortgage interest rates.
While gold or stock options may be appealing, take another look at housing – it may just be the most attractive asset in the American portfolio today. Here’s why:
According to a three-decade tracking study done by Metrostudy, soon there will be a shortage of homes. Subsequently, there will also be a boost in home prices. For decades, Metrostudy had inspectors literally drive through 45,000 subdivisions from Baltimore to Sacramento to record whether each lot contained a finished house, one that’s under construction or one that had been sold. They covered 65% of the U.S. housing market.
The two most important metrics Metrostudy used to determine whether there is a surplus or shortage are the number of homes that are vacant and for sale in each city, and the number of months it takes to sell them. The results show that there is a reversal of the new-home explosion that caused the housing price decline a few years ago.
There are two factors that are helping the recovery in residential real estate:
Supporting Metrostudy’s findings, a new study by Deutsche Bank also found that In 28 out of 54 major markets, it’s now cheaper to pay a mortgage and home maintenance costs than to rent the same house. For example, in Miami, the average rent is now $1,031/month, vs. $856 it costs to have a ranch as an owner. Obviously, not every market is the same and in some states renting might still be less expensive.
Depending on where you live, the state of the real estate market may give you the best opportunity to purchase a home now, while homes are both accessible and affordable.
View the original article here
We think it’s a compelling article that supports our belief that it is a great time to purchase a home due to low home prices and historic low mortgage interest rates.
While gold or stock options may be appealing, take another look at housing – it may just be the most attractive asset in the American portfolio today. Here’s why:
- Home inventory is starting to decline.
- Buying a home is affordable.
According to a three-decade tracking study done by Metrostudy, soon there will be a shortage of homes. Subsequently, there will also be a boost in home prices. For decades, Metrostudy had inspectors literally drive through 45,000 subdivisions from Baltimore to Sacramento to record whether each lot contained a finished house, one that’s under construction or one that had been sold. They covered 65% of the U.S. housing market.
The two most important metrics Metrostudy used to determine whether there is a surplus or shortage are the number of homes that are vacant and for sale in each city, and the number of months it takes to sell them. The results show that there is a reversal of the new-home explosion that caused the housing price decline a few years ago.
There are two factors that are helping the recovery in residential real estate:
- Historic drop in new construction.
- Steep decline in prices.
Supporting Metrostudy’s findings, a new study by Deutsche Bank also found that In 28 out of 54 major markets, it’s now cheaper to pay a mortgage and home maintenance costs than to rent the same house. For example, in Miami, the average rent is now $1,031/month, vs. $856 it costs to have a ranch as an owner. Obviously, not every market is the same and in some states renting might still be less expensive.
Depending on where you live, the state of the real estate market may give you the best opportunity to purchase a home now, while homes are both accessible and affordable.
View the original article here
Sunday, May 8, 2011
What is a Short Sale?
Recently the term “short sale” has become increasingly common among home buyers. This isn’t really surprising since they allow you to buy a home at a great price and you can also take advantage of mortgage rates that are still down near historic lows.
So, what is a short sale? In this article you will find a brief explanation of the process.
A short sale in the real estate industry is when the sales proceeds of a property fall short of the balance on the mortgage loan. In other words, the seller of the property owes more than what he or she is selling it for.
The mortgage lender (or bank) also has to agree to discount a loan balance or agree to take less money that what is owed. Typically the owner needs to prove financial hardship before a lender accepts a real estate short sale.
Even though this is not the ideal situation for the owner, it is a much better option than going into foreclosure because a short sale typically doesn’t hurt the owner’s credit score as much as a foreclosure.
This is a very good question. If you think about it, why would a lender agree to accept less money than what is owed on the mortgage? This is exactly what happens with short sales.
If the owner decides to stop making payments altogether and lets the property go into foreclosure, it could take several months for a bank or lender to take the property back. After the lender takes control of the property, they still have to put the house on the market and it could take months before a house gets sold. Foreclosure is a very expensive process and it is one of the reasons why banks would rather short sell than to go through a foreclosure.
Long processHomes are sold “As-is”The seller can make changes that affect you (like stop making mortgage payments forcing the home into foreclosure.Risk of getting your offer rejected by the lender
We found an interesting article on MSN Real Estate that listed the 10 steps of buying a short sale:
Identify potential short sales.
Do a quick inspection of the property.
Research home values in the area.
Find all liens and mortgages.
Figure out the financing.
Contact the lender through an experienced real estate agent.
Complete the lender’s short sale application.
Assemble the proposal.
Negotiate.
Seal the deal.
View the original article here
So, what is a short sale? In this article you will find a brief explanation of the process.
A short sale in the real estate industry is when the sales proceeds of a property fall short of the balance on the mortgage loan. In other words, the seller of the property owes more than what he or she is selling it for.
The mortgage lender (or bank) also has to agree to discount a loan balance or agree to take less money that what is owed. Typically the owner needs to prove financial hardship before a lender accepts a real estate short sale.
Even though this is not the ideal situation for the owner, it is a much better option than going into foreclosure because a short sale typically doesn’t hurt the owner’s credit score as much as a foreclosure.
This is a very good question. If you think about it, why would a lender agree to accept less money than what is owed on the mortgage? This is exactly what happens with short sales.
If the owner decides to stop making payments altogether and lets the property go into foreclosure, it could take several months for a bank or lender to take the property back. After the lender takes control of the property, they still have to put the house on the market and it could take months before a house gets sold. Foreclosure is a very expensive process and it is one of the reasons why banks would rather short sell than to go through a foreclosure.
Long processHomes are sold “As-is”The seller can make changes that affect you (like stop making mortgage payments forcing the home into foreclosure.Risk of getting your offer rejected by the lender
We found an interesting article on MSN Real Estate that listed the 10 steps of buying a short sale:
Identify potential short sales.
Do a quick inspection of the property.
Research home values in the area.
Find all liens and mortgages.
Figure out the financing.
Contact the lender through an experienced real estate agent.
Complete the lender’s short sale application.
Assemble the proposal.
Negotiate.
Seal the deal.
View the original article here
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