10 Tips For Buying Or Selling Real Estate
October 25, 2009
Whether you are a buyer or seller, here are some helpful tips to enable you to make the best out of a real estate transaction.
(there is a free ebook: 101 Tips For Selling Your House,for you to download, from a link at the bottom of this page).
Buyers
Pick a developing area. You can scientifically predict which areas are boom towns or not by reading the business pages.
Learn the real estate market in the area you picked. You need to develop a thorough knowledge of what properties are available and the going rates for houses. Be ready to make an offer in the shortest time possible.
Make your offer to buy conditional on a thorough inspection of the property. If you discover some problems, try to negotiate for a lower price to offset the inherent property flaws.
Be patient and prepared to keep looking until you find the right house that will give you a good return on your investment.
Sellers
Make sure that you let natural light inside the home during a buyer’s inspection. Open curtains, draw the blinds and turn on all lights in all rooms of the house.
Repair and/or renovate door and window hinges, door handles, broken shutters, leaky faucets, broken bulbs etcetera. Make sure that there are no squeaking doors, windows close and open smoothly and faucets are leak-free!
Deodorize the house to neutralize pet or tobacco odors. Better yet, bake bread or chocolate chip cookies before a buyer makes a visit to your home!
Make sure the house is cleaned from top to bottom, inside and outside including all those hidden corners, under the sinks, bath tubs and baseboards. Mow the lawn and trim the hedges!
Get rid of all unnecessary clutter and personal souvenir! Buyers want to see the home as they would live in it and not as you live in it!
Give your home a fresh coat of paint inside and out. Painting your home is one of the most important and inexpensive investment you can make to maximize your sale price.
Real estate is slowly becoming a rewarding investment, more rewarding in fact than stocks and bonds because they have not been performing as in the past.
On the other hand, real estate investment is performing beyond expectations because of its appreciation and due to demographic factors.
Analysts have been claiming that the real estate boom will fizzle out but that was 4 years ago and the market continues to improve due to demographic factors, lower loan interest rates and easier mortgage requirements!
Gerald Mason
http://www.articlesbase.com/real-estate-articles/10-tips-for-buying-or-selling-real-estate-103212.html
Buying Real Estate Steps
October 8, 2009
Buying Real Estate is part of the American dream. For those who have never been down the “buying real estate” path yet, you just…
1. Get Pre-Approved. Even if you don’t think you can afford it, or are concerned about a down payment, or your credit – the first thing you should do is talk to a skilled mortgage lender. It’s their job to help you fix your credit, tell you how much you can afford, and help make it all happen. They will advise you if a down payment is needed (it may not! Many people arrange to buy a home with nothing down, $500 down, or 5% down), how much your monthly payment will translate to (i.e. tell them you want to spend $X a month, and they’ll translate that into a purchase price of $Y). If you need to repair your credit, they’ll be able to refer someone or give you some tips and help on how to fix it up.
2. Once you meet with a mortgage lender, you’ll get a letter of pre-approval. It looks informal, but what matters is the listing agent (representing the sellers of a house you later want to buy) calling them and doing some research on whether you can in fact close and purchase the property. You then take this letter to a Realtor (R) / Real Estate Agent (note: Realtor is a real estate agent that adheres to a code of ethics; for practical purposes they’re essentially the same, though a Realtor(R) has more accountability and is therefore more highly recommended). This is step 2 of buying real estate.
3. The fun part: Shopping! Step 3 of buying real estate usually involves you looking at a bunch of properties on the internet, driving around some neighborhoods, then when you see some homes you think you might like, just email or call your agent and ask to go see it. Don’t get too hung up on this, and at first, go see some houses even if you know it’s not quite right – just to get some ideas of what you like and don’t like. On paper, or on the computer, a house is just a bunch of numbers – 3 bedrooms, 1873 square feet, etc. – but in person, you’ll find that the “bones” of a house, they layout, and the materials vary widely. On each home, communicate what you like and don’t like to your agent. Ideally, you should do this on each home, and by listing your favorite points, and factors you didn’t like, you’ll help your agent slowly hone in on what you really want. This is step 3 of buying real estate, and it usually turns out to be more work than you expect. By the way, it’s OK if a house or condo or lot seems ok on paper, but just doesn’t feel right. Trust your gut…buying real estate is emotional and you want to feel at home. Usually, if something doesn’t feel right, it’s because it reminds you of some other home, and many times, people ultimately buy a home that feels like a home they lived in as a child and therefore feel at home in.
4. The exciting part of buying real estate comes when you find a home you want. Just tell your agent this one feels right, and you’d like to put in an offer. Let your agent do the negotiating for you, it’s their job, and they get paid by the seller so the service is essentially free. You can call the mortgage lender back now and tell them you’re finally buying real estate, and give them the purchase price you want to offer, along with any other expenses such as taxes and insurance. They can give you a more exact payment on the house, which you’ll then give your agent a range to offer, starting low with a walk-away price. The agent helping you in buying real estate will know the conventions and strategy best for your local market and sniff out competing offers, etc. This offer will then be accepted or declined or counter-offered.
5. The nerve-wracking part of buying real estate is closing the actual transaction. Once your offer is accepted, you then start a 2-way “dance” called “escrow” or “under contract” or “closing”. This means the further you get into the deal, the more committed you are financially, and the more committed the seller is because they’re packing their life into boxes. Expect a bit of buyers remorse – it always happens about a week in, and just remind yourself why you like the house and imagine your life in your new home. Also, expect that the closing date is just a guideline, and it could be earlier by a few days, or later by a few days. Most commonly, people close in about 30-45 days. Depending on your state, you’ll sign a new loan on about day 25 or day 29, and then move in about day 30 (or 45, depending on your contract period). You’ll sign a binding loan and get keys, the seller gets cash (and their old loan paid off, if they have one), and the bank gets an enforceable contract that you make house payments toward. Once it “records” the deal is 100% done, you own the home, and about 6 weeks later you’ll make your first house payment to the bank.
Buying real estate is fun, and can make a big impact in how you live your life. For most Americans, buying real estate is one of the most important financial investments they ever make, and regardless of market it continues to prove a good investment simply due to inflation if not market appreciation. Just as your grandparents paid 15 cents for coffee and bought their first house for what seems like little money, so will your grandchildren (or you in your old age!) look back on buying real estate that first time as “cheap”. Back when people were buying real estate for $5,000 for a home, the average income was only $1200 a year for some… our relationship with money changes over time. Once you cross the buying real estate bridge, you’ll not only build wealth – but you’ll build a home filled with memories as well.
Roger Vetruba
http://www.articlesbase.com/real-estate-articles/buying-real-estate-steps-736743.html
Buying Real Estate For The First Time
September 26, 2009
Buying a home for the very first time is both exciting and terrifying in spite of its numerous advantages such as value appreciation, tax breaks, and deductible depreciation costs etcetera.
(there is a free ebook: 101 Tips For Selling Your House,for you to download, from a link at the bottom of this page).
Despite the advantages there are also vulnerabilities and risks that you have to contend with during the acquisition process. You can manage these risks and lessen the stressful process by observing the following guidelines.
Seek the help of a mortgage broker or mortgage specialist to help you determine your budget, secure a pre-approval for your mortgage and to have him assist you in the home acquisition process.
As soon as you have done the above, most especially getting a pre-approval for your mortgage loan, you can then start the process of searching for your dream home. As soon as you have a short list of homes that interest you, get in touch with a real estate agent. Having a buyer’s agent costs you nothing since it is the seller who pays all the fees. But if the owner is selling on his own, then the situation becomes better for you as the price of the home would be lesser than if there was a real estate broker involved.
Make sure that the location of the property meets your needs and specifications.
Make sure you get a disclosure statement from the buyer or the real estate broker.
Do not allow yourself to be pressured by the real estate broker or seller.
Before you ask to view the short-listed properties, conduct your own research to identify any problems or issues that might impact the acquisition and the amount of your offer.
As soon as you have decided on one particular property, visit the neighborhood during night time as well.
Interview the neighbors regarding schools in the district, playgrounds, and other amenities.
Find out the property value taxes in the neighborhood and inquire about neighborhood association fees if any.
With the assistance of a lawyer, make a formal offer, give a deposit and outline all of the conditions and terms of your offer.
Provide the owner a copy of your pre-approval to signify the seriousness of your intent in buying the property.
Request all necessary documentation from the owner including title clearance within a specified number of days so as not to prolong the buying process.
It normally takes 30 to 90 days from the date of offer to complete a home acquisition deal but it is very important that all terms and conditions and guidelines between you and the seller are taken cared of as early as possible.
It is always best to educate yourself when buying real estate and not simply rely on the real estate broker, the owner or somebody else to provide you with the necessary information. This makes the home buying process much more exciting!
Gerald Mason
http://www.articlesbase.com/real-estate-articles/buying-real-estate-for-the-first-time-103218.html
Buying a House – 12 Ways to Signal Your Real Estate Agent
September 1, 2009
You can learn how to take advantage of your real estate agent’s expertise before buying a house.
You’ve probably heard home buyers routinely complain how their agent didn’t do enough while they were buying a house. In truth, most buyers don’t know what to look for from a real estate professional in order to receive the best results.
With proper homework while shopping for a Realtor, you can be assured you’ve located someone who will watch out for your best interests. She is there to help you make better home buying decisions. So here are some ways your real estate agent can help in the decision buying process and questions you can ask to signal when you want her assistance.
1- A case in point, once you have toured several properties, ask your Realtor to help you rank your choices. An experienced agent can guide you to clarify your prospects and narrow down the field.
2- Additionally your Realtor can assist you regarding finances. Almost everyone buying a house needs a mortgage. Because agents are constantly in contact with lenders, they are often the best source of referrals to mortgage brokers and bankers. They have the inside track on lenders that have serviced other clients well in the past. Based on your particular needs, request at least two referrals of mortgage bankers.
3- Accordingly use your agent to discuss your concerns. When it is time to make decisions it is often good to have an objective opinion. Your agent can assist you in buying a house by pointing out trade-offs and how to set priorities.
4- From the start explain what your housing desires are so your agent can easily point out neighborhoods, communities, and developments that seem right for you. Good real estate agents are out visiting properties to stay current. So be sure and indicate that you welcome input.
5- Everybody understands buying a house is an emotional decision but it is important to know the facts too. Your agent has access to recent comparable sales, how long property has been on the market, and details regarding the area. It would be a shame not to take advantage of her expertise.
6- Along these same lines, if you work with an agent closely she can alert you to property that just came on the market or perhaps is about to be listed. So make sure your Realtor knows that you intend to work exclusively with her. Your loyalty will be rewarded.
7- Real estate professionals are also well versed in Seller Disclosure Statements and can help you wade through this detailed disclosure provided by sellers. This form is designed to reveal any defects regarding the desirability of the home and neighborhood. Your agent sees these disclosures routinely so be sure to request assistance.
8- Because real estate agents see so many houses they can also be sources of advice regarding redecorating, renovating, or remodeling a particular home. We all have a tendency to spend money on upgrades that might provide little or no return. Look at the property through the eyes of your Realtor to plan for value added improvements to the home.
9- The best agents are adept at following the process of buying a house from your first meeting to the final close. You should expect your transaction to be followed from beginning to end.
10- From the initial process of buying a house to signing final documents, you will have many experiences. Your real estate agent is comfortable with the roles of the seller’s agent, lender, appraiser, escrow officer and homeowner insurance agent. Realtors are trained and equipped to work through each step of this process.
11- In my opinion, here is what makes your agent worth her weight in gold. Because of seeing hundreds of real estate transactions a year, she is better able to anticipate problems ahead of time. Diligent agents know how to trouble shoot issues before they get out control. This is probably the most important service your agent can provide and the least obvious. So be happy when your house closes without a hitch. It’s outstanding proof of your agent’s performance.
12- Finally be sure and ask your real estate agent from the start to keep you fully informed concerning the state of your purchase. This is second nature for most Realtors. But it is okay to signal that you want to be kept in the loop at all times.
If you know what to expect from your real estate agent it should be easy to send the right signals and benefit from her expertise while buying a house.
Kate Ford
http://www.articlesbase.com/finance-articles/buying-a-house-12-ways-to-signal-your-real-estate-agent-711102.html
Strategies For Buying Real Estate In A Slow Market
August 29, 2009
The real estate market tends to be cyclical with some periods favoring buyers and other periods favoring sellers. As with other free markets, the pricing and availability of real estate is directly related to the forces of supply and demand. While many real estate markets in the United States are experiencing a substantial slowdown, other markets remain robust, and some even continue to grow. What makes the situation even more complicated is that even within a particular city or county, there may be some areas that are hot and others that are cold.
In regions of the country in which the real estate market is slowing, there are some things homebuyers can do to increase their chance of getting the property that they want on terms that are favorable. Below are some strategies to consider:
1. Clarify What You Want. Be sure to understand what kind of property you want (e.g. bedrooms, bathrooms, size, yard, location, etc.). Identify items that you “must have” and items that you would be willing to forego if your other priorities were met.
2. Consult Experts. You’ve no doubt heard the saying that “all real estate is local,” so arm yourself with the best information available. Consult a local real estate expert who can guide you about what communities are hot and which ones are not. Obviously, you are more likely to find deals in communities that have excess supply and limited demand than vice versa.
3. Understand Market Data. Obtaining and evaluating data can be one of the most powerful tools in your arsenal. Identify communities that you find desirable and ask your real estate agent to provide you relevant sales statistics. For example, your agent can provide you:
a. A summary of how many properties are available in communities that you deem desirable.
b. How long properties are taking to sell this month, last month, last quarter, last year, etc.
c. How many properties have sold this month, last month, last quarter, last year, etc.
d. Changes in the median and average price of properties for a community this month, last month, last quarter, last year, etc.
e. Data on the sales price to list price ratio (SP: LP). This ratio provides information about how much, on average, sellers are reducing their price.
f. Detailed data on properties that are similar to the type of property you desire (often known as “comparables” or “comps”).
4. High Inventory Communities. Identify, or ask your agent to identify, communities that appear to be particularly slow, and that have an unusually large inventory of homes. You will have a broader variety of options in these communities, and you may increase the likelihood of finding a better deal.
5. Loan Pre-Approval. Be sure to consult with your bank or mortgage broker and obtain a loan pre-approval document. This not only let’s you know how much you can afford, but it also demonstrates to sellers that you are a serious buyer and that your offer is worthy of serious consideration.
6. Seller’s Motivation. While information about why a seller is selling is usually confidential, there are situations in which the seller will allow their agent to disclose important factors regarding their personal situation. Be sure to ask your agent to inquire about any information that the seller has disclosed to his/her agent that can be conveyed to your agent. This information may help you decide on making an offer on a property and the price you wish to offer.
7. Home Inspection. A home inspection conducted by a qualified inspector can provide you valuable information about the condition of a property. Moreover, if there are items that need repair or replacement, you can use this information to modify your offer price or terms.
8. Expand Search Scope. As mentioned above, even within a particular city or county, there may be some areas that are hot and others that are not. Be sure to provided detailed information about what you want to your agent, so that he/she can provide you a variety of community options.
9. Be Patient. Time is on your side when there is excess supply and insufficient demand. Try not to “fall in love” with a house so much that you cannot be objective. It may be that multiple offers and counter-offers occur before you either get the property you want or decide to walk way from a deal. You may also want to look at more properties than you normally would, so that you are exposed to a variety of options.
While the above is not an exhaustive list of strategies, it is a good starting point of issues to consider when buying real estate, particularly in a market that favors buyers. Obtain the services of a knowledgeable Real Estate agent who can provide you with additional strategies to help you reach your real estate objectives.
Real Estate Advisor
http://www.articlesbase.com/advertising-articles/strategies-for-buying-real-estate-in-a-slow-market-50850.html
Smart Investors are Buying Homes Right Now, Real Estate Agents With Exclusive Marketing Territories From Top Web Site are Reaping the Rewards and Beat
August 19, 2009
While Wall Street traders wait for action from the Presidential and Legislative branches of the United States Government and “Main Street” Americans watch has their portfolios diminish from the backlash of “sub-prime melt down”, aggressive, smart investors are buying up deals right now! Savvy market wise Real Estate Agents who have exclusive marketing territories as members of Myhomesearches.com, the top web site providing quality leads, are reaping the rewards for keeping cool calm heads when everyone else is scrambling to restructure their business model and go looking for buyers in what once a sellers market.
Myhomesearches.com members are not looking for, they are receiving, high quality leads and getting that exclusive buying traffic from daily marketing provided by the highly skilled and aggressive internet jockeys who live to optimize. They are supported by the creative and experienced marketing writers who hone and craft each sentence for maximum exposure and effect to produce a call to action for the smart investor who is looking for the deals of a lifetime.
Every market as winners and losers and those Real Estate Agents who reaped the benefits of exclusive leads provided by Myhomeseaches.com during the boom are now reaping the rewards of that exclusive presence their members have come to count on. More than ever before, the importance of access to high quality leads is the difference between those that are selling and those that are not.
Today, right now, smart investors are buying homes at unprecedented bargains and their agents are making commissions beating the “sub-prime meltdown” with good old American know how and ingenuity. The Real Estate Agents with the ability change and work with current economic trends are using Myhomeseaches.com as their go to source of exclusive qualified today buyers and focusing on selling and not searching for a buyer who has the ability to buy.
Today, right now, the frenzy of home sellers has filled many of the members of Myhomesearches.com personal offering portfolios those not so savvy Real Estate Agents are coming to them to find properties they can sell to their occasional unqualified shopper that ends up wasting what little time the Agents of left from finding a lead to continue shopping the glut of homes on the market.
The top web site in providing exclusive territory leads to their members, Myhomesearches.com also gives two guarantees to their Real Estate Agents. Number one: If a members does not sell a lead provided as a result of the marketing and directing of that lead to the Agents web site then they will get the next year free. Number two: Members are guaranteed that their, per year nominal fee, for all the exclusive leads that they have astutely locked up in the cities they wish to do business in, will not have any fee increase what so ever for three years.
Real Estate Agents who have NOT become members are encouraged to choose their cities today for all the available exclusive leads developed through Myhomesearches.com and trafficked direct to their web sites. Be one of the winners, be the Real Estate Agent in your city reaping the rewards of exclusivity and sell to the smart investors who are right now buying homes in your area.
JD McCutchin
http://www.articlesbase.com/real-estate-articles/smart-investors-are-buying-homes-right-now-real-estate-agents-with-exclusive-marketing-territories-from-top-web-site-are-reaping-the-rewards-and-beat-713876.html