Real Estate Tips

How To Find a Real Estate Agent

2007-08-31T09:19:00.000-07:00

You may be of the opinion that you don’t need a real estate agent and that using one will add to the cost of buying your new home.

The fact is that a real estate agent’s fees are typically paid by the seller of the home. So, as a buyer, you can get the services of a professional real estate agent without having to directly pay for it. Please confirm this in any paperwork or contracts that a real estate agent may provide because policies vary greatly by state and company. Be sure to ask about fees when you interview agents.

Most real estate agents may work with buyers and sellers but often they specialize in working with one or the other. Make sure the agent that you choose has experience working with buyers and with no down payment transactions.

Be careful if you are speaking with a real estate agent and they don’t seem to recognize terms like “Down Payment Assistance Program”.

Start making a list of possible real estate agents to interview with referrals from your lender, friends and family.

A referral from the lender is great because you get the services from people that have worked together in the past and are already familiar with each other's systems. This can help prevent any last minute surprises or obstacles.

Questions to ask while you are interviewing real estate agents:

Please explain your fees.

Are you familiar with any no down payment financing programs?

Have you been involved with no down payment buyers in the past?

Would you mind providing sample contracts so I may review them?

Does it clearly state in the contract who will be paying your fees?

How long have you been a real estate agent?

Do you mostly work with buyers or sellers?

I’m looking for a home in the areas of ______. How familiar are you with those areas?

What specific steps would you take to help me find the home I am looking for?

You should also try to get an idea of these factors while you are speaking with the agent.

- Does this person have good negotiating skills?

- Do you feel this agent is trying to understand your situation so that they can properly represent you to sellers?

- How much knowledge does the agent have about mortgage markets?

Do you need business or finance information? Visit Business Finance Information, FREE web site for those who want to learn how to achieve success in business and finance.

Why Do You Need a Real Estate Appraisal?

2007-08-31T09:18:00.001-07:00

Anytime you buy or sell real estate, you need a real estate appraisal. The primary purpose is to find out exactly how much your property is worth. Banks and similar lending companies also require it, before a buyer can obtain a mortgage.

A real estate appraisal develops an “educated and trained opinion” on the value of the property. It also, in some circumstances, may ascertain the best use of the property, garnering the best selling price. For example, a long-time residential property may be in an area that has been rezoned for limited commerce, which could potentially bring in a higher sales price than marketing the real estate to potential residential buyers.

An appraiser differs from an inspector, who is looking for things that need to be corrected, repaired or replaced — things that are required by law to be completed before the property can be sold or to enhance your sale price. Though an appraiser will look at these same things, he/she is only interested in developing the value of the property.

A real estate appraisal is based on the highest and best use of real property — what use of the property will produce the highest possible value? The final appraisal must be both profitable and probable.

The real estate appraisal includes a definition of the type of value that is being developed — whether it is a market value (what most sellers need), a condemnation value, quick sale value, and so on.

The Process

The appraiser looks at each property individually, beginning with an objective inspection of the interior and exterior of the home or building, as well as driving through the surrounding neighborhood. The appraiser looks for the assets, as well as the detriments, of the property. For homes, gross living space, quality of construction, location, layout, the number of bedrooms and bathrooms, the lot size, condition of the home and land, central air conditioning, landscaping, number of fireplaces or the lack thereof, decks, pool, fencing, recent renovations, amenities provided by the surrounding neighborhood, and crime statistics of the area are all considered by the real estate appraiser.

Living space is calculated by measuring the outside of the home. It does not include such areas as the garage, porches, sheds, and so on. Basements are generally calculated separately from the living space. The contributory value of basements is determined by the local market, government regulation, if it is finished or not (and the quality of the finish), and so on.

The real estate appraiser usually only considers permanent buildings within his/her appraisal. Fixtures that can be relocated, such as above ground pools and sheds, are not included in the appraisal.

If you are the real estate seller, you should point out any features, amenities or improvements of your home that are not readily discernable.

Next, the real estate appraiser analyzes the available market data for your area and the surrounding neighborhood, including current and historical comparable sales, current offers for comparable homes, pending sales, and proposed improvements. The appraiser gathers data from a variety of sources, as well as his/her own personal knowledge of the local market. The appraiser then compares your real estate to the broader market.

Each real estate appraiser has his/her own process of analyzing, collecting and reconciling the needed appraisal data. If you get five different appraisals for your real estate, you may receive five different appraisal opinions. They should, however, all be within a similar value range, if they are completed within the same timeframe and under the same conditions.

Though the real estate appraisal is not for public consumption, it may be shared with all parties concerned. For instance, a buyer has offered $150,000 for a home, but the buyer-side, commissioned appraisal value is only $146,000. Sharing this appraisal with the seller means that the owner can do needed improvements to bring the price up or offer the real estate to the buyer for the appraisal amount.

For the highest appraisal possible, real estate sellers should have an inspection and appraisal done before putting the property on the market. First, the inspection in order to make any needed repairs or renovations. Then, get the appraisal to ensure you are getting the most for your real estate.

John Harris is an expert researcher and writer on real estate topics such as economics, credit improvement tips, home selling advice and home buying preparations. For more on San Diego Homes for Sale visit http://www.twtrealestate.com

Before You Sell, Let Your Realtor Help You to Prepare

2007-08-31T09:17:00.000-07:00

When preparing to sell a home, you may be dealing with a lot of mixed feelings — for example, letting go of all the memories in the old house, yet looking forward to new and exciting adventures in a new one. It also is a very hectic time, especially if you moving out of the area. There will be the going-away parties with neighbors and at work, ensuring you have changed your address with everyone, and coordinating the sale of your home with the purchase of your new one.

Your realtor(s), both for selling the old home and for buying the new one, can be of great assistance to you in coordinating these transactions and avoiding the domino effect of the closing, moving and closing dates. Your realtor gets everyone to commit to a window of dates and also to stick to them. The realtor will get all agreements in writing and can place financial penalties on any party who fails to comply.

Curb Appeal

Your realtor is used to viewing home and property from the potential buyers perspective. He/she can be essential in assisting you to prepare your home with a strong curb appeal. It is important for your property to be visually appealing in order to attract more potential buyers and garnering a quicker sale.

The realtor will look at the exterior, which should be well maintained with trimmed trees and shrubs, nothing sitting around to detract from the property’s appeal, foundations without cracks, and well maintained and cleaned window casings, gutters, chimney, shutters, siding, doors and moldings. Anything that needs painting should be painted. If you are not sure, ask your realtor. Ensure the garage door always is closed when not in use.

Another area your realtor will review is the interior, where there are plenty of improvement areas that do not cost a lot to do but make a world of difference in buying appeal. Clean all the windows inside and out with no streaks. Make sure floors, tiles, tubs, showers and faucets sparkle. The same for kitchen appliances, especially ranges, ovens, refrigerator and freezer — inside and out. Give the carpets a good cleaning, even if you recently did this. Ensure there are clean filters in the heating and air conditioner. Repair squeaky floors and oil squeaky doors. Ensure the faucets do not drip. Your realtor will advise you of many other inexpensive things that will add buyer appeal to your home.

Once your home is ready to show, your realtor will provide invaluable services to you. He/she will establish a fair asking price for your home, based on the location, economic conditions, supply-demand of the local market, seasonal influences, school availability in the area, the average home prices in the neighborhood, and the extra features and amenities of your home.

Next, your realtor will promote, advertise and market your home at no cost to you, using resources not available to homeowners who prefer to self-sell their homes.

Your realtor will schedule all showing appointments, negotiating times that are convenient for you without losing the potential buyers. The realtor will qualify interested buyers, weeding out those who cannot qualify for a mortgage; and then help you negotiate a sale price with the buyer.

Another service of your realtor is referrals for insurance, inspections, legal counsel and financing. Your realtor may even be able to refer you to a lender for a bridge loan, if you are forced to purchase a new home before you have sold your current one. A bridge loan helps, when you are forced to carry mortgages on two homes simultaneously over a short duration.

Rely on your realtor when selling your home. Experience in the industry gives the realtor a unique perspective that can only assist in a good sale for your home.

John Harris is an expert researcher and writer on real estate topics such as economics, credit improvement tips, home selling advice and home buying preparations. For more on San Diego Homes for Sale visit http://www.twtrealestate.com

Real Estate Investment - When, What and Where?

2007-08-31T09:16:00.000-07:00

Like economy and stock market, real estate often runs in cycles of approximately 7-10 years. The value of real estate often goes up for a few years, tops out, keeps flat or goes down for 2-3 years. The availability of low interest rate mortgage and recovery of economy will eventually jump-start a new cycle of real estate growth. Novice investors tend to invest at the top of the market while wishing the market will go even higher to reap a quick profit. Smart money, however, buys real estate at, or near, the bottom of the market when most of investors are reluctantly and don't have the financial power to buy.

Beside the life cycle of real estate market, individual property has its own life cycle. Properties can be purchased at pre construction, as new home inventory or as owned properties.

What

Single family home has traditionally been the preferred option of real estate investment for many individuals. Instead of selling their first residential home and moving to a bigger house, some home owners choose to keep their first home and rent it out by using a property management company. The new trend in real estate investment is to own hotel condos or vacation homes. There're many advantages of owning hotel condos or vacation homes.

Where

Once your investment options are not limited to residential properties, the location of property isn't limited to the place where you live. Hotel condos and vacation are, of course, often located at well-known resorts, from Vail Colorado to Miami, Florida.

Real estate investment is a complex decision making process. Most investors will seek help from real estate professionals. Nowadays, with the vast amount of information freely available on the Internet, search engines are where people start doing their own homework. For instance, typing "Miami Pre Construction" in Google, Yahoo or MSN search engine, you'll see a list of pages where you can locate the information about buying real estate at pre construction at Miami, Florida.

Copyright @2005, 4th Media Corporation

You have permission to publish this article electronically free of charge, as long as the bylines and links in the body of the article and the bylines are included.

Natalie Aranda is a freelance writer. She writes about family, holidays, Christmas Gift Ideas and health in her Miami real estate - Miami Condos.

How to Choose a Real Estate Agent to Sell Your House

2007-08-31T09:10:00.001-07:00

With hundreds of houses on the market, it is very difficult to sell a home. We all have been in the position where we fear that the “For Sale” sign will never leave our lawns. After all, it is a realistic fear since there are dozens of overpriced homes and too many real estate agents waiting to bite. Luckily there are many different ways you can make sure your house will sell.

Without a great real estate agent, you will never get an unbelievable deal. It is important to research the best agents in your area. There are many different ways to do this through the internet and magazines. Also checking local bulletin boards may provide you with a number of business cards. In order to sort out the good from the bad, you need to ask your friends about their experience. Many of your friends probably have been through the same situation and can recommend a favorite realtor to you. If they were happy about the end result when selling their home, chances are the realtor is great. It is also smart to see what your parents did when they sold their home, and to ask co-workers if they have heard any horror stories about local real estate agencies. No matter what, it is crucial to find a few of their business cards and look into them.

The next best thing to do is to meet with a few real estate agents. Without getting a proper price and more information about your home, you will have no idea where to look. Unfortunately there are real estate agents who are untruthful and may try their best to get as much money out of you as they can. Therefore, it is always best to get a second opinion from another realtor. You also need to see the amount of resources the agency has. If they are a start up business with limited contacts, then it may not be smart to go with them. You will need a real estate agency with a large marketing plan, in order to find a great family to buy your home.

It is also imperative to make sure you have a commission limit. Many realtors try to blind side you, resulting in thousands of dollars that you never had in the first place. Also be part of the process all of the way. If you are desperate to sell your home, you need to show the realtor the highlights of your house. For instance, if you have a beautiful bedroom and want to make sure that gets attention, you need to let the realtor know, and perhaps even take a few pictures.

The last thing you need to do is get a feel for the agent’s attitude. They need to be excited and confident about selling your home. If they aren’t happy, how are they supposed to convince other people to buy your house? It is extremely necessary to follow all of the tips above. After all, you will be spending a lot of time with this person and developing a good relationship will only benefit you more.

Natalie Aranda writes on personal finance and business. Without a widely-connected realtor, you will never get an unbelievable deal. It is important to research the best agents in your area. There are many different ways to do this through the internet and magazines. Also checking local bulletin boards may provide you with a number of business cards. In order to sort out the good from the bad, you need to ask your friends about their experience. You'll likely get a few real estate business cards from them. Many of your friends probably have been through the same situation and can recommend a favorite realtor to you.