By Phil Chen
Do you like to have a home in serene natural landscape but with all the facilities of modern town? Do you like to live in the background of history but in the midst of ultra modern set ups and world class amenities If both the options excite you, you should not look further than looking for an option from the list of Burlingame homes for sale.
Burlingame is known as the City of Trees; most residential properties of this city have their own tree properties and the trees are protected by public right of the city. There are 18000 public trees here in the city which has maintained a perfect ecological balance. In fact, for its beautiful surroundings, Burlingame Real Estate was quite popular between affluent San Francisco citizens even in the recent past. They used to purchase residential property in Burlingame and maintain it as a second home.
However, if you wish to find any house in Burlingame area, the best option is browsing the relevant real estate websites where you may get some ideas about the cost and availabilities of Burlingame Real Estate market and homes for sale. However, there are lots of choices according to different budgets and the options include Burlingame homes, Burlingame condos, single family homes and other accommodation provisions.
Hillsborough is located beside Burlingame and it is a favored place for people, especially those who prefer to have seclusion and privacy. Hillsborough schools are good, landscapes are beautiful and the natural beauty of this place is the main attraction of the real estate properties of this place. It is one of the most upscale localities in the United States. Those who are looking for an escape from city life may have a look on Hillsborough homes for sale list with enlisted Hillsborough realtors.
Burlingame Real Estate is a good place to invest in as well. Burlingame is famous for its climate and in its peak season many tourists come here for vacation. So vacation houses and motels remain in high demand during the tourist season. So from this aspect of rental accommodation and its demand real estate investors also will find the Burlingame Real Estate markets an absolute gold mine.
It is possible to gather all know- how by browsing the web, but in reality, purchasing a property is not that easy. Since it involves many legal intricacies and legal hassles; it may become difficult for any common person to deal with all of it skillfully. Those who are not from the region may find it hard to get accustomed to the local laws and property clearance verification formalities. Keeping all these problems at view, it is wise to hire a professional real estate agent who has the necessary expertise in real estate formalities and who is an enlisted member of Burlingame Realtors association.
Wednesday, September 23, 2009
Getting Started in a Real Estate Career - 5 Top Tips to Consider!
By Anil Madahar
Now, with the world in an economic meltdown, a career in real estate may be the last thing on your mind. However, believe it or not, there are still realtors out there that are making a good living. They've diversified, sure, looking at leasing, or even taking on commercial clients, where their business used to be residential only, but there are certainly realtor professionals that are floating, unaffected, above the recession fallout.
The question is, however, what it takes? Getting started in this profession might not be for everyone, and we've compiled 5 top tips to consider before you think about making the plunge.
1. Are You a People Person
Working as a realtor is less about houses and buildings, than it is about knowing people. The better equipped you are to deal with people, the easier it is for you to tap into their hopes, fears and dreams, and provide them with what they need. It's part sales, part psychology and a whole lot of good, old fashioned customer service!
2. Are You Hard Working
If you think there's easy money to be made, think again! Yes, you can make a very good living, but it will take time to get there - and in the mean time, you will work long hours, and very, very hard.
3. Do You Have Attention to Detail
Real estate is not only about selling houses. It's closely tied to finance and law, and if you aren't prepared to dot your I's and cross your t's, you may find yourself in hot water! Make sure that you are diligent enough to deal with paperwork, and all the other red tape that accompanies buying and selling property.
4. Are You Ambitious?
Ambition is critical here. When you first get started, and you're marketing small homes, you may consider giving up. Likewise, when things get tough and the market is down, you may want to throw in the towel. The best, most successful realtor professionals are adaptable and ambitious. They want it. Bad.
5. Are You Prepared to Study For It?
Notice that this is last? That's because you first need to figure out whether you really want to become a realtor professional, and whether you have the personality for it! If you do get to this point, you should know that you will need to spend somewhere between thirty and ninety hours in a class room, and sit an exam. There will also be ongoing education and training courses, as laws and other aspects of the job change.
As you can see, becoming a reator professional is a delicate balance between who you are, and what you know. If you think you have both, and want to give it a try, then by all means, spend the time and money taking the courses - you might just find that you become the next millionaire realtor. Just remember though that in real estate, like any other career, hard work, diligence and perseverance pays off!
If you would like to generate a recession proof income and you are not sure that a career in real estate is for you then you could consider becoming an internet apprentice with the best online franchise available.
Now, with the world in an economic meltdown, a career in real estate may be the last thing on your mind. However, believe it or not, there are still realtors out there that are making a good living. They've diversified, sure, looking at leasing, or even taking on commercial clients, where their business used to be residential only, but there are certainly realtor professionals that are floating, unaffected, above the recession fallout.
The question is, however, what it takes? Getting started in this profession might not be for everyone, and we've compiled 5 top tips to consider before you think about making the plunge.
1. Are You a People Person
Working as a realtor is less about houses and buildings, than it is about knowing people. The better equipped you are to deal with people, the easier it is for you to tap into their hopes, fears and dreams, and provide them with what they need. It's part sales, part psychology and a whole lot of good, old fashioned customer service!
2. Are You Hard Working
If you think there's easy money to be made, think again! Yes, you can make a very good living, but it will take time to get there - and in the mean time, you will work long hours, and very, very hard.
3. Do You Have Attention to Detail
Real estate is not only about selling houses. It's closely tied to finance and law, and if you aren't prepared to dot your I's and cross your t's, you may find yourself in hot water! Make sure that you are diligent enough to deal with paperwork, and all the other red tape that accompanies buying and selling property.
4. Are You Ambitious?
Ambition is critical here. When you first get started, and you're marketing small homes, you may consider giving up. Likewise, when things get tough and the market is down, you may want to throw in the towel. The best, most successful realtor professionals are adaptable and ambitious. They want it. Bad.
5. Are You Prepared to Study For It?
Notice that this is last? That's because you first need to figure out whether you really want to become a realtor professional, and whether you have the personality for it! If you do get to this point, you should know that you will need to spend somewhere between thirty and ninety hours in a class room, and sit an exam. There will also be ongoing education and training courses, as laws and other aspects of the job change.
As you can see, becoming a reator professional is a delicate balance between who you are, and what you know. If you think you have both, and want to give it a try, then by all means, spend the time and money taking the courses - you might just find that you become the next millionaire realtor. Just remember though that in real estate, like any other career, hard work, diligence and perseverance pays off!
If you would like to generate a recession proof income and you are not sure that a career in real estate is for you then you could consider becoming an internet apprentice with the best online franchise available.
Florida Real Estate
By L. Belenky
The Florida real estate market is often regarded as a forward indicator of the disposition of the national market in times to come. To illustrate this, Florida was among the first states to feel the devastation brought about by the collapse of the real estate market in 2008. Conversely, Florida was also one of the first states to see the huge increases in home values that began in the late 1990's and continued until last year. This economy presents an interesting example of the mechanics of the housing market and of markets in general.
Florida has a large retirement-age population as well as a large affluent population who are drawn to the region for its famously-pleasant weather, Oceanside environs and diverse population. During the last ten years, the prices of Florida homes, especially in certain markets, became artificially inflated due to the same market forces that wreaked havoc on Wall Street: fast flowing credit, overvaluation and the sort of free-for-all mentality that is bound to occur every so often in anything so driven by human emotions as is the free market. After an incredible spike in home prices, Florida saw it all come crashing down.
The burst of the housing bubble had horrible consequences for the state and some who had bought near the peak found themselves in a situation where losing out on their investment was the only possible outcome. Home prices continued to fall and fall and consumers became more anxious. At least, some of them became more anxious. Those who had planned to turn this crisis into an opportunity were waiting for the right moment and, when it came, they reacted.
The South Beach, Florida market is a good example. Condominium prices bottomed out within the last few months and then, as the economy in general has seemed to begin doing, started to rise back up. The prices for these properties are still very low but their value is becoming more commensurate with their actual value than with their value calculated by the circumstances of a significantly cramped market. Today, with those prices bottomed out and beginning to rise, investors and homeowners have begun to pick up those properties again and inventories have begun to shrink. This is likely to be the scenario across the country, slow, steady recovery and a gradual return to sensible values for real estate holdings.
The Florida real estate market is often regarded as a forward indicator of the disposition of the national market in times to come. To illustrate this, Florida was among the first states to feel the devastation brought about by the collapse of the real estate market in 2008. Conversely, Florida was also one of the first states to see the huge increases in home values that began in the late 1990's and continued until last year. This economy presents an interesting example of the mechanics of the housing market and of markets in general.
Florida has a large retirement-age population as well as a large affluent population who are drawn to the region for its famously-pleasant weather, Oceanside environs and diverse population. During the last ten years, the prices of Florida homes, especially in certain markets, became artificially inflated due to the same market forces that wreaked havoc on Wall Street: fast flowing credit, overvaluation and the sort of free-for-all mentality that is bound to occur every so often in anything so driven by human emotions as is the free market. After an incredible spike in home prices, Florida saw it all come crashing down.
The burst of the housing bubble had horrible consequences for the state and some who had bought near the peak found themselves in a situation where losing out on their investment was the only possible outcome. Home prices continued to fall and fall and consumers became more anxious. At least, some of them became more anxious. Those who had planned to turn this crisis into an opportunity were waiting for the right moment and, when it came, they reacted.
The South Beach, Florida market is a good example. Condominium prices bottomed out within the last few months and then, as the economy in general has seemed to begin doing, started to rise back up. The prices for these properties are still very low but their value is becoming more commensurate with their actual value than with their value calculated by the circumstances of a significantly cramped market. Today, with those prices bottomed out and beginning to rise, investors and homeowners have begun to pick up those properties again and inventories have begun to shrink. This is likely to be the scenario across the country, slow, steady recovery and a gradual return to sensible values for real estate holdings.
Importance of a Letting Agent!
By Arush K
Before letting out a buy to let property to a tenant, a landlord should take care of certain things. Firstly, he should not trust the tenant who has applied for the rental unit. A landlord should not consider a tenant based on the face value. A tenant may seem genuine overtly but he may have deceived his previous landlord. He might have criminal case against him. Therefore, a landlord should always check the tenant's information such as credit details, personal information, employment status, previous landlord information etc.
Credit or financial details - A letting agent is proficient enough to find out a tenant's credit information from a credit report agency. He can find out if a tenant has had any County Court judgement, bankruptcy or arrears in the past. If yes, then he might have adverse credit rating.
Personal information - This information includes address, his name, telephone number etc. There are chances of a tenant providing wrong address and other inaccurate personal details so that a landlord is unable to find out about him.
Employment status - An expert will find out about a prospective tenant's job details from his employer and also interrogate his previous or current colleagues. This will help a landlord find out about the tenant and check if he is on pay roll. For the self-employed, references are expected from an accountant or solicitor.
Landlord information - This information tells if a tenant has maintained his previous rental unit in a good condition and if he has paid his rent on time. They also check if there have been any eviction cases in the past. It also helps one find out if there are any discrepancy in the information.
To allure potential tenants, the agent should be well established in UK and must have a good reputation in tenant referencing field. Always reach out agents who are members of a national letting organisation, such as ARLA. This way a landlord can stay in peace that he has got his tenant information verified from reliable experts.
Before letting out a buy to let property to a tenant, a landlord should take care of certain things. Firstly, he should not trust the tenant who has applied for the rental unit. A landlord should not consider a tenant based on the face value. A tenant may seem genuine overtly but he may have deceived his previous landlord. He might have criminal case against him. Therefore, a landlord should always check the tenant's information such as credit details, personal information, employment status, previous landlord information etc.
Credit or financial details - A letting agent is proficient enough to find out a tenant's credit information from a credit report agency. He can find out if a tenant has had any County Court judgement, bankruptcy or arrears in the past. If yes, then he might have adverse credit rating.
Personal information - This information includes address, his name, telephone number etc. There are chances of a tenant providing wrong address and other inaccurate personal details so that a landlord is unable to find out about him.
Employment status - An expert will find out about a prospective tenant's job details from his employer and also interrogate his previous or current colleagues. This will help a landlord find out about the tenant and check if he is on pay roll. For the self-employed, references are expected from an accountant or solicitor.
Landlord information - This information tells if a tenant has maintained his previous rental unit in a good condition and if he has paid his rent on time. They also check if there have been any eviction cases in the past. It also helps one find out if there are any discrepancy in the information.
To allure potential tenants, the agent should be well established in UK and must have a good reputation in tenant referencing field. Always reach out agents who are members of a national letting organisation, such as ARLA. This way a landlord can stay in peace that he has got his tenant information verified from reliable experts.
Real Estate in Burlingame
By Phil Chen
Burlingame still retains an old world charm in spite of advancements in all fields. Consequently, it has become one of the most desirable locations in Northern California. Located just 15 minutes away from downtown San Francisco, the quaint, old fashioned town boasts of excellent facilities and moderate weather conditions all the year round. Real Estate in Burlingame is particularly in demand now, especially so for people hoping to be away from the hum drum of the busy metropolises. Families as well as retired people are the ones keenest on looking through the Burlingame homes for sale. The thriving night life as well as other amenities on offer has also made active and affluent singles interested in looking at the Real Estate in Burlingame.
If you contact a Burlingame realtor, you will be surprised to know that the town can offer you a bit of almost everything. Homes for sale in Burlingame include houses amidst beautiful and clean surroundings. Buying Real Estate in Burlingame may prove to be a trifle expensive as most twin bed roomed, 1 bathroom houses are available for a price range at $800,000-$900,000. The average going rate for high end Real Estate in Burlingame is approximately $1.4 - $1.5 million dollars at present.
The city of Hillsborough is situated nearby and remains unique because it has very little services to offer. The city is home to some of the most elaborate and expensively priced houses although it has no side walks and no shops catering to your daily needs. This is a deliberate measure for maintaining a rural ambiance. However, the town boasts of excellent fire, police and emergency services. If you are looking for a Hillsborough home for sale you will find that huge mansions located on more than an acre of land are usually up for sale. The price range is well above $1,750,000. You may also check out the prices for family houses or studio apartments if a condo or a town house is way beyond your budget. The average price for a square foot usually hovers around $104. Well maintained, attractive family homes are readily available. Most families with young children prefer to reside in the vicinity of Hillsborough schools. Real Estate in Burlingame encompasses every imaginable kind of homes available in both Burlingame as well as Hillsborough.
Hillsborough realtors can offer you professional guidance about availability of homes within your budget. They can also be relied upon to provide accurate information regarding foreclosures and bank mortgages. You may find all the details that you need by doing a search on the Internet. Just type in the words 'real estate Hillsborough' and you will find a lot of information about the Real Estate in Burlingame as well as that of the city of Hillsborough.
Burlingame still retains an old world charm in spite of advancements in all fields. Consequently, it has become one of the most desirable locations in Northern California. Located just 15 minutes away from downtown San Francisco, the quaint, old fashioned town boasts of excellent facilities and moderate weather conditions all the year round. Real Estate in Burlingame is particularly in demand now, especially so for people hoping to be away from the hum drum of the busy metropolises. Families as well as retired people are the ones keenest on looking through the Burlingame homes for sale. The thriving night life as well as other amenities on offer has also made active and affluent singles interested in looking at the Real Estate in Burlingame.
If you contact a Burlingame realtor, you will be surprised to know that the town can offer you a bit of almost everything. Homes for sale in Burlingame include houses amidst beautiful and clean surroundings. Buying Real Estate in Burlingame may prove to be a trifle expensive as most twin bed roomed, 1 bathroom houses are available for a price range at $800,000-$900,000. The average going rate for high end Real Estate in Burlingame is approximately $1.4 - $1.5 million dollars at present.
The city of Hillsborough is situated nearby and remains unique because it has very little services to offer. The city is home to some of the most elaborate and expensively priced houses although it has no side walks and no shops catering to your daily needs. This is a deliberate measure for maintaining a rural ambiance. However, the town boasts of excellent fire, police and emergency services. If you are looking for a Hillsborough home for sale you will find that huge mansions located on more than an acre of land are usually up for sale. The price range is well above $1,750,000. You may also check out the prices for family houses or studio apartments if a condo or a town house is way beyond your budget. The average price for a square foot usually hovers around $104. Well maintained, attractive family homes are readily available. Most families with young children prefer to reside in the vicinity of Hillsborough schools. Real Estate in Burlingame encompasses every imaginable kind of homes available in both Burlingame as well as Hillsborough.
Hillsborough realtors can offer you professional guidance about availability of homes within your budget. They can also be relied upon to provide accurate information regarding foreclosures and bank mortgages. You may find all the details that you need by doing a search on the Internet. Just type in the words 'real estate Hillsborough' and you will find a lot of information about the Real Estate in Burlingame as well as that of the city of Hillsborough.
The Real Estate and Mortgage Industries Can (and Will) Survive!
By Kerry R. Mitchell
This is good news! Now how do we get there? All economists are a bit confused on what needs to happen. First, let's get to the acceptance piece of the puzzle. (1) We are not in an economic recovery. Change needs to happen in many areas of the system the average consumer is living in. Jobs need to be created and the only way to do this is to create new industry. Real Estate Taxes are not only too high but they are not in proportion to reality. Not even close. Think on this. Why are homes on one street, same square footage, same design and similar age taxed thousands of dollars apart from their counterparts? This needs to be addressed. Tax assessors are working within guidelines of a "boom" that went way out into la-la land. Yet, they are assessing at those sales figures. It is a chain reaction in a system that needs to be redesigned.
There is a much needed reality check. Regulators, consumers and banks need to wake up quickly, which brings us to (2) to begin assess honestly, how we can renew our systems to have them fit into the change that is occurring in our democratic way of life. I am a republican and proud of it, but reality is reality. By 2020, the world will have an estimated 9 billion people to cloth and feed. This is not a one sided problem. It is a chain of past economic predictions that were just plain wrong. We are living in a system that has been broken. The chain of real estate ownership was created years ago when people began to buy and sell, price and live it their own home. Leasing was not looked upon as the American Dream. Owning a home was. Now, renting is so much more attractive to our pocketbooks. Why? OK- Think on this. You see a $250,000 home in the paper. Should you pay out of pocket 20% down (if your credit is perfect and very few have perfect credit) so that is $50,000. Who has this in an account right now without parents? Then up to another $10,000 for closing costs. The principal and interest is about $1200 a month( about 6% rate ) then you have taxes which can be about $350 more a month plus insurance can be about $150 more. You are at around $1700 a month and if there are those homeowner association fees, oh no- please? Now, the facts of these troubled times, this home is not holding value. Not good news for the American Dream concept. Next year it will probably be worth less, yet are taxes going up? So (3) is finding a way to build value in real estate again. Now, just suppose you can pay $1100 a month to live in that same $250, 000 home? When something breaks, you don't have to pay for the fix. No taxes fees or owner concerns. Just renters insurance to protect your own "stuff."
This brings us to (4) curing the disconnect of communication breakdown with banks, consumers and those running the real estate and mortgage worlds. Examples are government tax offices, Realtors®, mortgage professionals, jobs depending on industries that thrive on real estate such as contracting and engineering companies, etc. Pricing and regulation needs to be cut drastically. How can one home in a neighborhood, going through a short sale dictate prices of the other homes? It is all so off balance. Have you been food shopping lately? Our food supply is beginning to offer us less and short us as packaging is less for us to pay more. Boxes are smaller. Loaves of bread are smaller. So what can change all of this?
(5) is plain and simple we need laws designed for the people, by the people. When the Declaration of Independence was signed, it called for government for us. So let's remember real estate and mortgage markets drive the economy and let's remember that these markets can help bring about change quicker than any other markets. Once these markets create ways to achieve drastically lower utility bills, and real estate taxes are forced onto a more uniform format, all can recover.
Our system as we know it, is broken- Done. We will not ever find jobs for all who have lost theirs unless we re-train, re-create and re-build in the new world energy sectors offer. Going green. Tired of hearing this yet? Don't be and wake up America. Retrain those in construction and sales ability to learn to sell and install water conservation products as cisterns, solar products, solar hot water heaters and wind products. Train sales people to sell and represent these systems in the workforce. Re-create the entrepreneurial spirit. It worked years ago and it will work again-
This is good news! Now how do we get there? All economists are a bit confused on what needs to happen. First, let's get to the acceptance piece of the puzzle. (1) We are not in an economic recovery. Change needs to happen in many areas of the system the average consumer is living in. Jobs need to be created and the only way to do this is to create new industry. Real Estate Taxes are not only too high but they are not in proportion to reality. Not even close. Think on this. Why are homes on one street, same square footage, same design and similar age taxed thousands of dollars apart from their counterparts? This needs to be addressed. Tax assessors are working within guidelines of a "boom" that went way out into la-la land. Yet, they are assessing at those sales figures. It is a chain reaction in a system that needs to be redesigned.
There is a much needed reality check. Regulators, consumers and banks need to wake up quickly, which brings us to (2) to begin assess honestly, how we can renew our systems to have them fit into the change that is occurring in our democratic way of life. I am a republican and proud of it, but reality is reality. By 2020, the world will have an estimated 9 billion people to cloth and feed. This is not a one sided problem. It is a chain of past economic predictions that were just plain wrong. We are living in a system that has been broken. The chain of real estate ownership was created years ago when people began to buy and sell, price and live it their own home. Leasing was not looked upon as the American Dream. Owning a home was. Now, renting is so much more attractive to our pocketbooks. Why? OK- Think on this. You see a $250,000 home in the paper. Should you pay out of pocket 20% down (if your credit is perfect and very few have perfect credit) so that is $50,000. Who has this in an account right now without parents? Then up to another $10,000 for closing costs. The principal and interest is about $1200 a month( about 6% rate ) then you have taxes which can be about $350 more a month plus insurance can be about $150 more. You are at around $1700 a month and if there are those homeowner association fees, oh no- please? Now, the facts of these troubled times, this home is not holding value. Not good news for the American Dream concept. Next year it will probably be worth less, yet are taxes going up? So (3) is finding a way to build value in real estate again. Now, just suppose you can pay $1100 a month to live in that same $250, 000 home? When something breaks, you don't have to pay for the fix. No taxes fees or owner concerns. Just renters insurance to protect your own "stuff."
This brings us to (4) curing the disconnect of communication breakdown with banks, consumers and those running the real estate and mortgage worlds. Examples are government tax offices, Realtors®, mortgage professionals, jobs depending on industries that thrive on real estate such as contracting and engineering companies, etc. Pricing and regulation needs to be cut drastically. How can one home in a neighborhood, going through a short sale dictate prices of the other homes? It is all so off balance. Have you been food shopping lately? Our food supply is beginning to offer us less and short us as packaging is less for us to pay more. Boxes are smaller. Loaves of bread are smaller. So what can change all of this?
(5) is plain and simple we need laws designed for the people, by the people. When the Declaration of Independence was signed, it called for government for us. So let's remember real estate and mortgage markets drive the economy and let's remember that these markets can help bring about change quicker than any other markets. Once these markets create ways to achieve drastically lower utility bills, and real estate taxes are forced onto a more uniform format, all can recover.
Our system as we know it, is broken- Done. We will not ever find jobs for all who have lost theirs unless we re-train, re-create and re-build in the new world energy sectors offer. Going green. Tired of hearing this yet? Don't be and wake up America. Retrain those in construction and sales ability to learn to sell and install water conservation products as cisterns, solar products, solar hot water heaters and wind products. Train sales people to sell and represent these systems in the workforce. Re-create the entrepreneurial spirit. It worked years ago and it will work again-
Are All Home Inspectors Created Equal?
By Linda Liu
The time for that big investment has finally arrived and you need to find home inspector services that will guarantee that it is money well spent. Sure, a good home inspector can save you a world of unforeseen financial heartache down the road, but if your inspector is going to find potential problems in your future home and you are going to re-negotiate with the seller for a better price, then time is of the essence.
Once you've narrowed down your search to a few inspectors how do you ensure that you are choosing the right one? You're going to need to ask the inspectors some key questions. Find out if their inspection includes the appliances. It seems silly as one in five problems new home-owners encounter are with the appliances. Maybe the inspector can't give you the rundown on the production specs for the furnace in your possible soon-to-be home, but they can surely let you know if the pilot is lit or not.
The tools of the trade are also important in a good evaluation. High-tech gizmos might not be indispensable for the experienced inspector, but they definitely help to spot any possible areas of concern in your new house.
Does the inspector really know what they are talking about? Are they simply going to rely on a bunch of tests ordered at your expense, or will they be able to judge when those tests are really necessary? Some of the best inspectors believe in a simple home inspection and a single radon test as a base. Any other tests for water or mold contamination are only ordered if the inspector truly sees it fit.
Don't forget the final report. Anyone with a pencil and a clipboard can run down a checklist, giving items predetermined evaluations of good, satisfactory and poor. A proper, narrative report allows the inspector to go into real detail about their discoveries. This is an advantage to you, the layman, and to your lawyer or realtor, who will know if you are getting the deal you thought you agreed upon, or if re-negotiation is actually in order. A good narrative report can help you make an accurate estimate of what kinds of costs you might incur with the house before making the financial commitment to buy it.
One last thing to keep in mind: the best inspectors are trained, experienced professionals, but they are generalists. A good home inspector will know when they are out of their league and recommend that a specialized expert should take a closer look at a potential problem. Often, if the purchase price is particularly high, it is a prudent idea to hire two inspectors from different companies. You can count on both to give their sincere evaluation, but where so much money is at risk, a second opinion is always welcome. In cases where one inspector is in doubt over a particular factor (not at all unheard of in such a generalized profession) perhaps the other can offer some insight into the problem.
This is a big buy, and the details deserve your utmost attention. You can plan on spending between $400 and $650 to get a solid evaluation of the safety and integrity of your new home. A good inspector will be experienced, well-equipped, and will only order the necessary tests to complete the inspection. This can make all the difference in what should be the biggest and best purchase of your lifetime.
The time for that big investment has finally arrived and you need to find home inspector services that will guarantee that it is money well spent. Sure, a good home inspector can save you a world of unforeseen financial heartache down the road, but if your inspector is going to find potential problems in your future home and you are going to re-negotiate with the seller for a better price, then time is of the essence.
Once you've narrowed down your search to a few inspectors how do you ensure that you are choosing the right one? You're going to need to ask the inspectors some key questions. Find out if their inspection includes the appliances. It seems silly as one in five problems new home-owners encounter are with the appliances. Maybe the inspector can't give you the rundown on the production specs for the furnace in your possible soon-to-be home, but they can surely let you know if the pilot is lit or not.
The tools of the trade are also important in a good evaluation. High-tech gizmos might not be indispensable for the experienced inspector, but they definitely help to spot any possible areas of concern in your new house.
Does the inspector really know what they are talking about? Are they simply going to rely on a bunch of tests ordered at your expense, or will they be able to judge when those tests are really necessary? Some of the best inspectors believe in a simple home inspection and a single radon test as a base. Any other tests for water or mold contamination are only ordered if the inspector truly sees it fit.
Don't forget the final report. Anyone with a pencil and a clipboard can run down a checklist, giving items predetermined evaluations of good, satisfactory and poor. A proper, narrative report allows the inspector to go into real detail about their discoveries. This is an advantage to you, the layman, and to your lawyer or realtor, who will know if you are getting the deal you thought you agreed upon, or if re-negotiation is actually in order. A good narrative report can help you make an accurate estimate of what kinds of costs you might incur with the house before making the financial commitment to buy it.
One last thing to keep in mind: the best inspectors are trained, experienced professionals, but they are generalists. A good home inspector will know when they are out of their league and recommend that a specialized expert should take a closer look at a potential problem. Often, if the purchase price is particularly high, it is a prudent idea to hire two inspectors from different companies. You can count on both to give their sincere evaluation, but where so much money is at risk, a second opinion is always welcome. In cases where one inspector is in doubt over a particular factor (not at all unheard of in such a generalized profession) perhaps the other can offer some insight into the problem.
This is a big buy, and the details deserve your utmost attention. You can plan on spending between $400 and $650 to get a solid evaluation of the safety and integrity of your new home. A good inspector will be experienced, well-equipped, and will only order the necessary tests to complete the inspection. This can make all the difference in what should be the biggest and best purchase of your lifetime.
Real Estate License - A Popular Choice in the Slow Economy
By Zafer Ahmad
There are many people seeking new careers due to their recent job loss. While many see the housing market in shambles and run the other way, they aren't really seeing the whole picture. Getting a real estate license right now is actually a good career move because you can guarantee that if you are willing to put for the effort, you will always have work. No matter what state you live in, a real estate license is required to practice as a broker or real estate agent. You have to be 18 years of age, have a high school diploma or GED, and pass a license exam once you have taken the necessary classes. While some states require these courses, others just need you to pass the test which means that the education is up to you.
Testing and education for a real estate license is required because the laws and regulations can be complicated and confusing, so states need to make sure that people really understand what they're doing. It's not a job that you can just pick up with no experience like being a cashier or a cleaning person. You have to learn the laws and rules of real estate in order to be successful and do your job right. Each state has two levels of licensing, which gives people the choice of what they want to achieve.
A real estate agent will either be licensed as a salesperson or a broker. The broker will be able to act on behalf of the client and work completely independent from anyone else. This is the higher level of training. For those who want to get into this career but don't want to invest into this level of training, they can choose to be a salesperson instead. This person is licensed as a realtor, but can only operate with the supervision of the broker. That means that they can help people buy and sell houses, but they must always report back to the broker in order to get the deals closed and ensure that they do everything by the book.
Each state administers real estate license tests on their own. The name of the test varies from one state to the next, as do the requirements for testing and licensing. Make sure that you contact or visit your state agency that does license testing to find out exactly what you need to do to qualify for the test and become licensed as a real estate agent.
There are many people seeking new careers due to their recent job loss. While many see the housing market in shambles and run the other way, they aren't really seeing the whole picture. Getting a real estate license right now is actually a good career move because you can guarantee that if you are willing to put for the effort, you will always have work. No matter what state you live in, a real estate license is required to practice as a broker or real estate agent. You have to be 18 years of age, have a high school diploma or GED, and pass a license exam once you have taken the necessary classes. While some states require these courses, others just need you to pass the test which means that the education is up to you.
Testing and education for a real estate license is required because the laws and regulations can be complicated and confusing, so states need to make sure that people really understand what they're doing. It's not a job that you can just pick up with no experience like being a cashier or a cleaning person. You have to learn the laws and rules of real estate in order to be successful and do your job right. Each state has two levels of licensing, which gives people the choice of what they want to achieve.
A real estate agent will either be licensed as a salesperson or a broker. The broker will be able to act on behalf of the client and work completely independent from anyone else. This is the higher level of training. For those who want to get into this career but don't want to invest into this level of training, they can choose to be a salesperson instead. This person is licensed as a realtor, but can only operate with the supervision of the broker. That means that they can help people buy and sell houses, but they must always report back to the broker in order to get the deals closed and ensure that they do everything by the book.
Each state administers real estate license tests on their own. The name of the test varies from one state to the next, as do the requirements for testing and licensing. Make sure that you contact or visit your state agency that does license testing to find out exactly what you need to do to qualify for the test and become licensed as a real estate agent.
Methods to Determine the Value of Your House
By Katrina Marie Santes
No matter what kind of real estate transaction there is, determining the value of your home is important. When you first bought the property, this was the first thing you had to do. Moreover, knowing the value has probably helped you negotiate the prices, which lead you to pocket a bigger savings.
Now that you have lived in the property, the greatest benefit you have is being able to hold on to a worthy property investment. You know right from the start you acquired something valuable. Therefore, when you sell it in the near future, you are confident of getting a good return. All of these are made possible simply by determining the value of the property.
How do you determine the value of your home?
One of the most famous methods in determining home value is the CMA or Comparative Market Analysis. Real estate agents use this to inform their buyers an approximate dollar value of the property being sold. As a homeowner, you can use this to determine the most reasonable offer a buyer could make. This will also give you an idea how much you can price your homes. This can help you see both the buyer and the seller's perspective in valuing the property.
If you want to know this, you can talk to a real estate agent. Since they have all the necessary tools and experience, they are most capable of determining the value of your home. For one, they have access to MLS or multiple listing services. This tool may include a feature to guide them making the CMA. On the other hand, they can use the properties they've sold in the past for the comparison.
However, you alone can make your own CMA. Although it takes practice to be perfected but it is doable. All it takes is research. One has to go through an extensive comparison with properties of similar features and location. It is expected that you will not be able to find properties with the same exact features as your home. That is why your comparison may not be as precise as you can think.
The more details you know about the properties to be compared as opposed to yours, the better CMA you can make. Information involved are location, square footage, bedroom count, details of the structure, year built, information about the components, condition of the property and the architectural style. If you want an easy comparison, you can try to use CMA software.
Another way to determine you home value is through appraisal. Lenders use this information in determining the worthiness of the property as their investment. This is what they consider a more unbiased opinion of determining your home value, as an independent third party will conduct it. However, they come with a certain fee. Their manner of valuation is more extensive as they will be eyeballing every detail of your property.
All of these things can help you get the most current value for your homes. Thus, whatever you plan with it, may you turn it into a rental property or an investment property, and you will have a more realistic outlook in setting the price and predicting your returns in investment.
No matter what kind of real estate transaction there is, determining the value of your home is important. When you first bought the property, this was the first thing you had to do. Moreover, knowing the value has probably helped you negotiate the prices, which lead you to pocket a bigger savings.
Now that you have lived in the property, the greatest benefit you have is being able to hold on to a worthy property investment. You know right from the start you acquired something valuable. Therefore, when you sell it in the near future, you are confident of getting a good return. All of these are made possible simply by determining the value of the property.
How do you determine the value of your home?
One of the most famous methods in determining home value is the CMA or Comparative Market Analysis. Real estate agents use this to inform their buyers an approximate dollar value of the property being sold. As a homeowner, you can use this to determine the most reasonable offer a buyer could make. This will also give you an idea how much you can price your homes. This can help you see both the buyer and the seller's perspective in valuing the property.
If you want to know this, you can talk to a real estate agent. Since they have all the necessary tools and experience, they are most capable of determining the value of your home. For one, they have access to MLS or multiple listing services. This tool may include a feature to guide them making the CMA. On the other hand, they can use the properties they've sold in the past for the comparison.
However, you alone can make your own CMA. Although it takes practice to be perfected but it is doable. All it takes is research. One has to go through an extensive comparison with properties of similar features and location. It is expected that you will not be able to find properties with the same exact features as your home. That is why your comparison may not be as precise as you can think.
The more details you know about the properties to be compared as opposed to yours, the better CMA you can make. Information involved are location, square footage, bedroom count, details of the structure, year built, information about the components, condition of the property and the architectural style. If you want an easy comparison, you can try to use CMA software.
Another way to determine you home value is through appraisal. Lenders use this information in determining the worthiness of the property as their investment. This is what they consider a more unbiased opinion of determining your home value, as an independent third party will conduct it. However, they come with a certain fee. Their manner of valuation is more extensive as they will be eyeballing every detail of your property.
All of these things can help you get the most current value for your homes. Thus, whatever you plan with it, may you turn it into a rental property or an investment property, and you will have a more realistic outlook in setting the price and predicting your returns in investment.
Importance of Home Appraisals - Fundamental Information Every Buyer and Seller Must Know
By Maria Faith
Home appraisal is referred to as the developing of expert opinion of certified appraisers or valuation surveyors who will give the market value of the property you are planning to purchase. Real estate appraisal is also known by other terms such as land valuation or property valuation. Since home appraisal is an indispensable method included for the completion of your home purchase transaction, it is imperative to know its importance and value. Primarily, appraisal originates from the notion that no two properties are completely the same or identical based on their location.
Home appraisers are those that undergo coursework and internship under stringent standards by the state to get the required certification. Appraisers ought to be third party individuals who have no financial connection to any of the parties involved in the transaction. Those who are first time home buyers need to know that appraisals have a part in the payment dues included when applying for mortgage.
What is the difference between home appraisals and home inspection?
Potential home buyers when making ocular visits to the property they wish to purchase hire professional home inspectors to help them determine potential problems in the house if there are any. Inspection includes testing the air and heating system of the property as well as other important functions like plumbing and chimneys. While property appraisers are the ones who only deal with the obvious issues vis-à-vis salient details of the subject property, the type of area the property or home is located among others.
You will also find in an appraisal report the detailed assessment affecting the market value of the property and the average sales time you will expect. Therefore, if the asking price of the property is higher than its actual value, then the seller is actually overpricing. This is certainly a very significant method at the initial stage of the transaction since it surely keeps you secured from all forms of discrepancies and fraudulent pricing.
What are the methods used in appraisals?
In order to determine the authenticity and accuracy of the appraisal report presented to you, it is important to take note and understand the methods of coming up with a market value for a particular property. For residential appraisals, two common steps are utilized as follows.
• Sales comparison approach. With the notion no two properties are exactly identical, the appraiser makes the estimation using a method of comparison to other similar properties for sale in the same area. The term used for such types of properties is comps or comparables.
• Cost approach. This is applicable for new properties wherein the appraiser assessed the property value with its repair costs whenever the structures are to be replaced or destroyed.
Home appraisals certainly hold a salient role in the process of home purchase. The real estate industry is actually an extremely competitive and cunning milieu that needs skills and knowledge to deal with. Getting the most out of your investment surely means having the right and genuine home appraisal for your target property.
Home appraisal is referred to as the developing of expert opinion of certified appraisers or valuation surveyors who will give the market value of the property you are planning to purchase. Real estate appraisal is also known by other terms such as land valuation or property valuation. Since home appraisal is an indispensable method included for the completion of your home purchase transaction, it is imperative to know its importance and value. Primarily, appraisal originates from the notion that no two properties are completely the same or identical based on their location.
Home appraisers are those that undergo coursework and internship under stringent standards by the state to get the required certification. Appraisers ought to be third party individuals who have no financial connection to any of the parties involved in the transaction. Those who are first time home buyers need to know that appraisals have a part in the payment dues included when applying for mortgage.
What is the difference between home appraisals and home inspection?
Potential home buyers when making ocular visits to the property they wish to purchase hire professional home inspectors to help them determine potential problems in the house if there are any. Inspection includes testing the air and heating system of the property as well as other important functions like plumbing and chimneys. While property appraisers are the ones who only deal with the obvious issues vis-à-vis salient details of the subject property, the type of area the property or home is located among others.
You will also find in an appraisal report the detailed assessment affecting the market value of the property and the average sales time you will expect. Therefore, if the asking price of the property is higher than its actual value, then the seller is actually overpricing. This is certainly a very significant method at the initial stage of the transaction since it surely keeps you secured from all forms of discrepancies and fraudulent pricing.
What are the methods used in appraisals?
In order to determine the authenticity and accuracy of the appraisal report presented to you, it is important to take note and understand the methods of coming up with a market value for a particular property. For residential appraisals, two common steps are utilized as follows.
• Sales comparison approach. With the notion no two properties are exactly identical, the appraiser makes the estimation using a method of comparison to other similar properties for sale in the same area. The term used for such types of properties is comps or comparables.
• Cost approach. This is applicable for new properties wherein the appraiser assessed the property value with its repair costs whenever the structures are to be replaced or destroyed.
Home appraisals certainly hold a salient role in the process of home purchase. The real estate industry is actually an extremely competitive and cunning milieu that needs skills and knowledge to deal with. Getting the most out of your investment surely means having the right and genuine home appraisal for your target property.
The Effect of the Credit Crunch on the Real Estate Market
By Roby V. Pagong
The financial crisis has definitely taken its toll on the different industries. Its effect is definitely felt by the different sectors in the real estate market. The increasing number of foreclosed homes is just one of the many sad effects of the credit crunch. People were seeing that the effects were real after big banks and real estate firms started downsizing and some were even filing for bankruptcy.
The players in the industry are starting to lose their investments and this created a chain reaction to the lending firms. Seeing the effects, players have to renegotiate their arrangement. Some was successful in minimizing the effects of the loss but others were not. Foreclosed homes piled up leading to growing number of frozen assets.
Since fewer people are willing to shell out some of their money, there are fewer homes being sold. Sellers are left with no choice but to lower the value of their property. Lenders have to adjust the rates they offer as well. Lower rates should encourage people to borrow and purchase money. Since many real estate projects froze due to the credit crunch, people are losing their jobs. Unemployment has caused financial shortage. Due to this, many struggled to pay their obligations, including the mortgage.
New opportunities:
Amidst the sad effects of the crunch, doors have opened for new opportunities. Home buyers of primary residence may have dived down, but investors are seeing it in a different way. Since there is a decline in primary home purchases, the demand for homes to rent has skyrocketed.
This means that investors are getting the upper hand. They can purchase homes at a lower rate and they can have it rented after a few repairs. There are many wholesale properties today, which make it more advantageous for the investors. Although they have to invest more in renovations and improvements, income is evident because of the many people who are seeking decent homes today.
They can also sell the property. Although the values of the property today have gone down, there are still a lot of players who are able to gain more from the sale. People who have the money to spend today can easily find a wonderful home at a low price. There are also some special treat for those with good credits because of the low interest rates they can enjoy.
New benefits home buyers enjoy:
The government is also exerting efforts to encourage more people to buy homes. Tax credits are presented to first time home buyers. There are also benefits given to people who will purchase a secondary home. These arrangements surely benefits qualified home buyers.
Although the credit crunch has caused a lot of problems to the real estate market, it has also opened opportunities. It is up to the investors to take advantage of such opportunities. Opportunities are also presented to the home buyers. The government is presenting different programs so that more will be encouraged to purchase new homes. This is why now is the best time for people to start looking for a new home to own.
The financial crisis has definitely taken its toll on the different industries. Its effect is definitely felt by the different sectors in the real estate market. The increasing number of foreclosed homes is just one of the many sad effects of the credit crunch. People were seeing that the effects were real after big banks and real estate firms started downsizing and some were even filing for bankruptcy.
The players in the industry are starting to lose their investments and this created a chain reaction to the lending firms. Seeing the effects, players have to renegotiate their arrangement. Some was successful in minimizing the effects of the loss but others were not. Foreclosed homes piled up leading to growing number of frozen assets.
Since fewer people are willing to shell out some of their money, there are fewer homes being sold. Sellers are left with no choice but to lower the value of their property. Lenders have to adjust the rates they offer as well. Lower rates should encourage people to borrow and purchase money. Since many real estate projects froze due to the credit crunch, people are losing their jobs. Unemployment has caused financial shortage. Due to this, many struggled to pay their obligations, including the mortgage.
New opportunities:
Amidst the sad effects of the crunch, doors have opened for new opportunities. Home buyers of primary residence may have dived down, but investors are seeing it in a different way. Since there is a decline in primary home purchases, the demand for homes to rent has skyrocketed.
This means that investors are getting the upper hand. They can purchase homes at a lower rate and they can have it rented after a few repairs. There are many wholesale properties today, which make it more advantageous for the investors. Although they have to invest more in renovations and improvements, income is evident because of the many people who are seeking decent homes today.
They can also sell the property. Although the values of the property today have gone down, there are still a lot of players who are able to gain more from the sale. People who have the money to spend today can easily find a wonderful home at a low price. There are also some special treat for those with good credits because of the low interest rates they can enjoy.
New benefits home buyers enjoy:
The government is also exerting efforts to encourage more people to buy homes. Tax credits are presented to first time home buyers. There are also benefits given to people who will purchase a secondary home. These arrangements surely benefits qualified home buyers.
Although the credit crunch has caused a lot of problems to the real estate market, it has also opened opportunities. It is up to the investors to take advantage of such opportunities. Opportunities are also presented to the home buyers. The government is presenting different programs so that more will be encouraged to purchase new homes. This is why now is the best time for people to start looking for a new home to own.
Property Auctions - Tips You Should Know
By Eva Judge
Although property auctions used to primarily be reserved for the exceptionally wealthy, more people than ever before are trying their hand at in all around Australia. Ask any Brisbane financial services company and they will tell you that they are approached all the time by regular people who are interested in buying a new home via auction. If you're one of them, there are many financial things that you need to keep in mind in order to be successful. Below, we take a look at a few of the more pressing ones.
Get A Feel For The Price Range -
There's no point in even looking for a loan if you aren't even sure what the going rates are for homes in your area. Also, knowing what a fair price is can help you avoid getting ripped off.
Get An Independent Valuation Done -
Arrange an independent valuation if you have spotted a property you are interested in prior to the day of the auction. All too often, people get their hearts set on a particular home only to discover that it wasn't worth nearly what it was auctioned off for.
Arrange Lending Ahead Of Time -
Engage a mortgage broker to provide you with a range of lending options. Usually, 10% is due when an auction closes; the rest is due at the end of the settlement period.
Don't Bid Until The Auction Reaches Reserve -
Until the reserve is met, the house isn't officially for sale. The reserve represents the lowest price that the seller is willing to go down to. Keep your high price close to your chest and never reveal it to anyone.
You Do The Asking -
Never answer an auction agent's questions about your intentions concerning a property up for bid. Instead, make it a point to strictly ask the questions. Make it clear that you will, under no circumstances, answer any questions posed to you.
Stick To Your Guns -
Before the auction starts - before you even leave to go attend it - set a firm maximum price. No matter what, do not waver from it. In all of the excitement, many people become swept up and end up bidding much more than they can truly afford to.
Watch And Learn -
Optimally, you should try to attend a lot of different auctions before attending one that you'll actually be bidding at. This way, you can learn the ins and outs of the process and become more comfortable with it, too.
Get The Right Loan -
Always remember that agents almost always underquote. If you prepare thoroughly and plan your home loan, everything should work out just fine.
Although property auctions used to primarily be reserved for the exceptionally wealthy, more people than ever before are trying their hand at in all around Australia. Ask any Brisbane financial services company and they will tell you that they are approached all the time by regular people who are interested in buying a new home via auction. If you're one of them, there are many financial things that you need to keep in mind in order to be successful. Below, we take a look at a few of the more pressing ones.
Get A Feel For The Price Range -
There's no point in even looking for a loan if you aren't even sure what the going rates are for homes in your area. Also, knowing what a fair price is can help you avoid getting ripped off.
Get An Independent Valuation Done -
Arrange an independent valuation if you have spotted a property you are interested in prior to the day of the auction. All too often, people get their hearts set on a particular home only to discover that it wasn't worth nearly what it was auctioned off for.
Arrange Lending Ahead Of Time -
Engage a mortgage broker to provide you with a range of lending options. Usually, 10% is due when an auction closes; the rest is due at the end of the settlement period.
Don't Bid Until The Auction Reaches Reserve -
Until the reserve is met, the house isn't officially for sale. The reserve represents the lowest price that the seller is willing to go down to. Keep your high price close to your chest and never reveal it to anyone.
You Do The Asking -
Never answer an auction agent's questions about your intentions concerning a property up for bid. Instead, make it a point to strictly ask the questions. Make it clear that you will, under no circumstances, answer any questions posed to you.
Stick To Your Guns -
Before the auction starts - before you even leave to go attend it - set a firm maximum price. No matter what, do not waver from it. In all of the excitement, many people become swept up and end up bidding much more than they can truly afford to.
Watch And Learn -
Optimally, you should try to attend a lot of different auctions before attending one that you'll actually be bidding at. This way, you can learn the ins and outs of the process and become more comfortable with it, too.
Get The Right Loan -
Always remember that agents almost always underquote. If you prepare thoroughly and plan your home loan, everything should work out just fine.
What Does a Home Inspector Do?
By Ryan Coisson
When purchasing a home, one of the most important last steps you will take is to have the house inspected by a certified home inspector. It is in your best interest to have a grasp on the kinds of things the inspector will be looking for. Here's more about how he'll do his job so that you can ask all of the right important questions.
What is a home inspector's job?
In a nutshell, a home inspector is there to protect your interests, and his inspection's goal will be to determine if there is anything glaringly wrong with a house that would either endanger your family's safety, cost you a whole lot of extra money to repair and replace, or both. It is essential to remember that the inspector can only vouch for the condition of the house at the time of inspection and cannot predict any future issues that may arise down the road.
What kinds of things does he look for?
As to the exterior of the home, an inspector will look for structural soundness regarding:
- the general condition of the roof and its coverings
- rain gutters and their corresponding downspouts
- exterior vents and chimneys
- exterior facings, windows, doors, stairs, etc
On the interior, he will make a thorough inspection of:
- the basement, foundation, and any crawl space that may exist
- visual structural elements, looking specifically for cracks or other problems
- attic condition and insulation
- fireplaces
- doors and windows
He will make a complete check of the home's systems:
- electrical
- heating and cooling
- plumbing
- hot water heater
The inspection is thorough but it is not exhaustive: in other words, he will not be in a position to gauge water quality, nor should he be expected to determine the state of wall coverings, etc.
The home inspector is your partner in making sure that you are getting what you structurally expect when you make that all-important purchase.
When purchasing a home, one of the most important last steps you will take is to have the house inspected by a certified home inspector. It is in your best interest to have a grasp on the kinds of things the inspector will be looking for. Here's more about how he'll do his job so that you can ask all of the right important questions.
What is a home inspector's job?
In a nutshell, a home inspector is there to protect your interests, and his inspection's goal will be to determine if there is anything glaringly wrong with a house that would either endanger your family's safety, cost you a whole lot of extra money to repair and replace, or both. It is essential to remember that the inspector can only vouch for the condition of the house at the time of inspection and cannot predict any future issues that may arise down the road.
What kinds of things does he look for?
As to the exterior of the home, an inspector will look for structural soundness regarding:
- the general condition of the roof and its coverings
- rain gutters and their corresponding downspouts
- exterior vents and chimneys
- exterior facings, windows, doors, stairs, etc
On the interior, he will make a thorough inspection of:
- the basement, foundation, and any crawl space that may exist
- visual structural elements, looking specifically for cracks or other problems
- attic condition and insulation
- fireplaces
- doors and windows
He will make a complete check of the home's systems:
- electrical
- heating and cooling
- plumbing
- hot water heater
The inspection is thorough but it is not exhaustive: in other words, he will not be in a position to gauge water quality, nor should he be expected to determine the state of wall coverings, etc.
The home inspector is your partner in making sure that you are getting what you structurally expect when you make that all-important purchase.
What is the Difference Between a Real Estate Agent and a Real Estate Broker?
By Amy Nutt
When one starts the process of selling or purchasing a home, it is not long before they realize that it can be an overwhelming task. There are many steps that are involved with the process that can often be quite complicated to the novice. Fortunately, there are professionals that can handle any home selling/buying situation and can take the burden off of your shoulders. Two such professionals are the Real Estate Agent and the Real Estate Broker. Before enlisting their services, it is important to understand the differences between each and their role in the process of buying and selling a home.
Real Estate Broker
A real estate broker is a person who acts as a liaison between sellers and buyers of real estate. They work to locate sellers who want to sell their property/houses and buyers who want to buy property/houses. Brokers help sellers with the marketing of their property and selling it for the best price and the best terms. For buyers, they assist them with purchasing for the lowest possible price with the best terms. In most states, one is required to have a license in order to be a real estate broker. In a few states, attorneys are permitted to conduct real property sales for compensation without being licensed as brokers or agents.
When one acquires a broker's license, they can run their own brokerage company and hire licensed agents. One has to pass a broker's exam to get licensed.
Real Estate Agent
Real Estate Agents help people with the actual locating and purchasing of a home as well as the selling of a home or property. Agents perform such duties as taking potential buyers to view homes that are for sale, offer advice to home buyers about where to acquire a home loan, submitting an offer for a home, locating the type of home that the buyer is looking for, has knowledge about the community where the home is located, and filling out specific forms that legally show that the house has been purchased. Both the buyer and the seller of the home sign these forms. An attorney is normally involved with the signing of pertinent documents.
The agent must be aware of the value of the home, all features of the home and if there are any problems with the home and property such as damage or a poor foundation, and they must be aware of the neighborhood and surrounding community. They should be able to answer any of the home buyer's questions. As well, they must have knowledge about the laws related to buying and selling a home. For home and property sellers, they help assess the price of a home and list it.
Real estate agents can be self employed or work for a company. They receive a commission for the sale or purchase of a home. Commission fees will vary among agents.
When you plan to buy or sell your home or property, you should enlist the services of professionals such as real estate agents and brokers. Understanding their role in the process and their differences will help ensure that the process is much easier and less complicated.
When one starts the process of selling or purchasing a home, it is not long before they realize that it can be an overwhelming task. There are many steps that are involved with the process that can often be quite complicated to the novice. Fortunately, there are professionals that can handle any home selling/buying situation and can take the burden off of your shoulders. Two such professionals are the Real Estate Agent and the Real Estate Broker. Before enlisting their services, it is important to understand the differences between each and their role in the process of buying and selling a home.
Real Estate Broker
A real estate broker is a person who acts as a liaison between sellers and buyers of real estate. They work to locate sellers who want to sell their property/houses and buyers who want to buy property/houses. Brokers help sellers with the marketing of their property and selling it for the best price and the best terms. For buyers, they assist them with purchasing for the lowest possible price with the best terms. In most states, one is required to have a license in order to be a real estate broker. In a few states, attorneys are permitted to conduct real property sales for compensation without being licensed as brokers or agents.
When one acquires a broker's license, they can run their own brokerage company and hire licensed agents. One has to pass a broker's exam to get licensed.
Real Estate Agent
Real Estate Agents help people with the actual locating and purchasing of a home as well as the selling of a home or property. Agents perform such duties as taking potential buyers to view homes that are for sale, offer advice to home buyers about where to acquire a home loan, submitting an offer for a home, locating the type of home that the buyer is looking for, has knowledge about the community where the home is located, and filling out specific forms that legally show that the house has been purchased. Both the buyer and the seller of the home sign these forms. An attorney is normally involved with the signing of pertinent documents.
The agent must be aware of the value of the home, all features of the home and if there are any problems with the home and property such as damage or a poor foundation, and they must be aware of the neighborhood and surrounding community. They should be able to answer any of the home buyer's questions. As well, they must have knowledge about the laws related to buying and selling a home. For home and property sellers, they help assess the price of a home and list it.
Real estate agents can be self employed or work for a company. They receive a commission for the sale or purchase of a home. Commission fees will vary among agents.
When you plan to buy or sell your home or property, you should enlist the services of professionals such as real estate agents and brokers. Understanding their role in the process and their differences will help ensure that the process is much easier and less complicated.
Why Real Estate is Great in Kent, Washington
By Brian Bandler
Home seekers have been flocking the City of Kent, Washington for quite some time now in search of new homes to which they can relocate. Even the global financial meltdown could not do enough damage to dampen the real estate market in this magnificent city. Thus, you might as well ask why Kent has such a strong pull that cannot even be swayed by the worst financial crisis since the Great Depression.
The robustness of the real estate market cannot be attributed to any single reason, as there are a plethora of factors that come into play here. The availability of a ready market is definitely key to this success story. With a projected population growth rate of just about 15%, Kent offers sufficient demand to lure real estate investors in their droves. With the forces of demand seeming to interact so freely, it is not surprising to learn that property prices have been kept at a case minimum and compares favorably with those of other regions.
The options available to homebuyers by way of financing and mortgages also contributes to the allure of Kent as the ultimate homeowners' destination. The interest rates charged on the mortgages are kept at a bare minimum at of 4% to entice prospective buyers to the Kent region. With a median income of $34287, mortgage houses are not in the least worried about defaulters as most buyers satisfy the debt-to-income ratio of do. In fact, other financial services are also arranged to provide a one-stop shop for homebuyers.
Perhaps the single most compelling reason that fuels the scramble for Kent is the circumstances prevailing within its locality. Sunny days average 196 days a year. The weather is fair ranging from a low of -1to 85 Fahrenheit. The rainfall yields 21 inches whereas snowfall yields 34 inches. With such excellent weather conditions, anyone would want to pay a fortune to come to Kent.
The demographic Structure of this City also says a lot on why it has refused to fade. With a median population of only thirty years, Kent boasts of relatively younger segment of the population still looking for stability. Most people in this category are yet to acquire homes and are busy shopping around for suitable options. This should be music in the ears property owners who know that if this situation persists, them they will laugh all the way to the bank.
Unemployment rates of below 5% implies that Kent offers better prospects to fresh graduates who flock here to get their big break in the job market. The moment they arrive here, they fall in love with the place and never want to look back thus keeping homeowners constantly supplied with buyers. The projection for future job growth stands at 10.7% meaning fresh graduates will keep flooding Kent for some years to come.
In conclusion, it is clearly obvious that real estate is the big thing in the City of Kent and any investor considering putting up property here should go right ahead. The same should be said of buyers looking for a place to buy a dream home. Don't look any further.
Home seekers have been flocking the City of Kent, Washington for quite some time now in search of new homes to which they can relocate. Even the global financial meltdown could not do enough damage to dampen the real estate market in this magnificent city. Thus, you might as well ask why Kent has such a strong pull that cannot even be swayed by the worst financial crisis since the Great Depression.
The robustness of the real estate market cannot be attributed to any single reason, as there are a plethora of factors that come into play here. The availability of a ready market is definitely key to this success story. With a projected population growth rate of just about 15%, Kent offers sufficient demand to lure real estate investors in their droves. With the forces of demand seeming to interact so freely, it is not surprising to learn that property prices have been kept at a case minimum and compares favorably with those of other regions.
The options available to homebuyers by way of financing and mortgages also contributes to the allure of Kent as the ultimate homeowners' destination. The interest rates charged on the mortgages are kept at a bare minimum at of 4% to entice prospective buyers to the Kent region. With a median income of $34287, mortgage houses are not in the least worried about defaulters as most buyers satisfy the debt-to-income ratio of do. In fact, other financial services are also arranged to provide a one-stop shop for homebuyers.
Perhaps the single most compelling reason that fuels the scramble for Kent is the circumstances prevailing within its locality. Sunny days average 196 days a year. The weather is fair ranging from a low of -1to 85 Fahrenheit. The rainfall yields 21 inches whereas snowfall yields 34 inches. With such excellent weather conditions, anyone would want to pay a fortune to come to Kent.
The demographic Structure of this City also says a lot on why it has refused to fade. With a median population of only thirty years, Kent boasts of relatively younger segment of the population still looking for stability. Most people in this category are yet to acquire homes and are busy shopping around for suitable options. This should be music in the ears property owners who know that if this situation persists, them they will laugh all the way to the bank.
Unemployment rates of below 5% implies that Kent offers better prospects to fresh graduates who flock here to get their big break in the job market. The moment they arrive here, they fall in love with the place and never want to look back thus keeping homeowners constantly supplied with buyers. The projection for future job growth stands at 10.7% meaning fresh graduates will keep flooding Kent for some years to come.
In conclusion, it is clearly obvious that real estate is the big thing in the City of Kent and any investor considering putting up property here should go right ahead. The same should be said of buyers looking for a place to buy a dream home. Don't look any further.
How to Overcome the Most Common Real Estate Agents' Challenges
By Beverly Manago
Real estate agents, like all other marketers, face work-related challenges, of course. The most effective ones are those who have come up with great ways to overcome those tests. In general, the best strategy to overcome any form of property marketing challenge is to simply look at it in a fresh perspective. As a good agent, you should learn to ask the right questions before charging ahead. Here are several of the most common challenges real estate agents encounter and the corresponding guidelines to overcome them.
Challenge #1: You do not know much about marketing
Have you heard about 'analysis paralysis?' It is a condition wherein an agent or marketer gets to thoroughly analyze, scrutinize, and conceptualize all elements of every marketing campaign until the point that nothing is actually done. You do not have to be an expert marketer to be a good real estate agent. Most of the time, you have to gain and accumulate actual and practical experiences, which should come from actual and practical experiences you would go through as you sell properties. Do not give much damn to the theoretical and academic concepts of marketing. Know the properties you sell and present them to prospective buyers the way you know those homes.
Challenge #2: You do not know exactly where to start
It is always hard to start accomplishing things, especially in real estate marketing. If you are a beginner, strive to start with the common basics. Determine your goals first to make the whole process much easier. To gain direction, be specific when setting goals. For example, you could aim to put up an educational Website that would feature free downloads and actual reports. In line with this, you should promote that online site through sending out direct mail. In the process, at least 20 new leads should be captured every month. Now that goal is specific, directional, and logically measurable.
Challenge #3: You do not know much about technology
Technology has clearly become an important aspect of every marketing initiative, especially these days. Current marketing tools like list management and Website creation have become more user-friendly than ever, making technology useful to even people with not much technical skills and technological awareness. If you are still not comfortable about technology you could use, seek the assistance of vendors who are very much willing to step in.
Challenge #4: You are new to the real estate industry
All real estate experts were also newbies in the industry at some point in the past. Real estate agents surely pass through hard initiation process upon entry into the industry. If they have managed to make it, so could you. If you are not that comfortable about your credentials, make it up with your personal behavior. Most prospective clients judge and trust real estate agents based on behavior instead of credentials. Also be professional when putting up and sending marketing message. Create strong impression by observing proper spelling, good grammar, aesthetic professional design, and effective delivery of message. The strong impression you could make could surely make you shine.
Real estate agents, like all other marketers, face work-related challenges, of course. The most effective ones are those who have come up with great ways to overcome those tests. In general, the best strategy to overcome any form of property marketing challenge is to simply look at it in a fresh perspective. As a good agent, you should learn to ask the right questions before charging ahead. Here are several of the most common challenges real estate agents encounter and the corresponding guidelines to overcome them.
Challenge #1: You do not know much about marketing
Have you heard about 'analysis paralysis?' It is a condition wherein an agent or marketer gets to thoroughly analyze, scrutinize, and conceptualize all elements of every marketing campaign until the point that nothing is actually done. You do not have to be an expert marketer to be a good real estate agent. Most of the time, you have to gain and accumulate actual and practical experiences, which should come from actual and practical experiences you would go through as you sell properties. Do not give much damn to the theoretical and academic concepts of marketing. Know the properties you sell and present them to prospective buyers the way you know those homes.
Challenge #2: You do not know exactly where to start
It is always hard to start accomplishing things, especially in real estate marketing. If you are a beginner, strive to start with the common basics. Determine your goals first to make the whole process much easier. To gain direction, be specific when setting goals. For example, you could aim to put up an educational Website that would feature free downloads and actual reports. In line with this, you should promote that online site through sending out direct mail. In the process, at least 20 new leads should be captured every month. Now that goal is specific, directional, and logically measurable.
Challenge #3: You do not know much about technology
Technology has clearly become an important aspect of every marketing initiative, especially these days. Current marketing tools like list management and Website creation have become more user-friendly than ever, making technology useful to even people with not much technical skills and technological awareness. If you are still not comfortable about technology you could use, seek the assistance of vendors who are very much willing to step in.
Challenge #4: You are new to the real estate industry
All real estate experts were also newbies in the industry at some point in the past. Real estate agents surely pass through hard initiation process upon entry into the industry. If they have managed to make it, so could you. If you are not that comfortable about your credentials, make it up with your personal behavior. Most prospective clients judge and trust real estate agents based on behavior instead of credentials. Also be professional when putting up and sending marketing message. Create strong impression by observing proper spelling, good grammar, aesthetic professional design, and effective delivery of message. The strong impression you could make could surely make you shine.
Tuesday, September 22, 2009
What is a Real Estate Option?
By Wendy Polisi
In the real estate market, an option is essentially an agreement between a seller and a potential buyer to purchase a specific property at some point in the future. Such options are rarely sold during boom periods in a real estate market, because they limit the seller's choices. Nevertheless, they are common in periods of declining property values or in specific real estate markets that the seller has invested in and now seeks to get out of.
Most aspects of option agreements are negotiable, although some states and localities impose restrictions or mandate certain terms. The general idea is that the potential buyer pays the seller an option fee, which gives the potential buyer the option of purchasing the property at the end of the agreement. An option also prevents the seller from selling it to someone else during the period that the agreement is in force. The length of an option is negotiable, although most are for a period of between one and three years. The longer the option, the more likely it is that the actual value of the property will diverge from the fixed amount agreed to in the option agreement.
Although there is nothing inherent about an option agreement that dictates that the final purchase price be fixed, this is usually part of an option as without it the option makes little sense for the buyer. Fixing the price means that the buyer gets the option to purchase the property at an agreed price, regardless of what the actual value of the property is at the time that the option expires. Further, the option holder also usually has the right to sell the option to a third party as long as the agreement is in force, making it a tradable commodity in its own right.
The seller automatically receives the option fee, which is rarely refundable. The amount of the option fee is subject to negotiation and there is no fixed limit. Some sellers, desperate to unload a property will offer an option fee as low a one dollar, though a more typical amount is between one and five percent of the agreed upon sale price. This is the primary benefit to the seller, and if a property is currently losing the owner money, selling an option can help offset this significantly. Selling an option also radically increases the chance of attracting a buyer for the property, though the buyer is not obligated to exercise the option and purchase the property at the end of the agreement.
In this respect, options are popular among real estate speculators, especially when the option fee is extremely low. As there is no obligation on the part of the buyer to exercise the option and purchase the property and the option can be sold by the buyer to another party, low cost options are useful in real estate speculation. If the property value increases over the period of the option, then the owner of the option stands to make a solid profit through buying the property at the lower amount agreed to in the option. Conversely, if the property value declines in value, the option holder can decide not to purchase the property and forfeit his option fee.
For the average person, an option may be useful if there is a determination to buy a home in a particular area for reasons other than investment. An option also allows the buyer to "hold" the property for the duration of the agreement, allowing them to raise the required funds for the down payment and make other arrangements for the purchase of the property. The availability of options is usually indicative of a buyer's market and tend to benefit the buyer more than the seller; but they can also provide some relief to sellers as well. People looking to buy a home in the future, but not in a position to do so presently, may find options extremely useful.
In the real estate market, an option is essentially an agreement between a seller and a potential buyer to purchase a specific property at some point in the future. Such options are rarely sold during boom periods in a real estate market, because they limit the seller's choices. Nevertheless, they are common in periods of declining property values or in specific real estate markets that the seller has invested in and now seeks to get out of.
Most aspects of option agreements are negotiable, although some states and localities impose restrictions or mandate certain terms. The general idea is that the potential buyer pays the seller an option fee, which gives the potential buyer the option of purchasing the property at the end of the agreement. An option also prevents the seller from selling it to someone else during the period that the agreement is in force. The length of an option is negotiable, although most are for a period of between one and three years. The longer the option, the more likely it is that the actual value of the property will diverge from the fixed amount agreed to in the option agreement.
Although there is nothing inherent about an option agreement that dictates that the final purchase price be fixed, this is usually part of an option as without it the option makes little sense for the buyer. Fixing the price means that the buyer gets the option to purchase the property at an agreed price, regardless of what the actual value of the property is at the time that the option expires. Further, the option holder also usually has the right to sell the option to a third party as long as the agreement is in force, making it a tradable commodity in its own right.
The seller automatically receives the option fee, which is rarely refundable. The amount of the option fee is subject to negotiation and there is no fixed limit. Some sellers, desperate to unload a property will offer an option fee as low a one dollar, though a more typical amount is between one and five percent of the agreed upon sale price. This is the primary benefit to the seller, and if a property is currently losing the owner money, selling an option can help offset this significantly. Selling an option also radically increases the chance of attracting a buyer for the property, though the buyer is not obligated to exercise the option and purchase the property at the end of the agreement.
In this respect, options are popular among real estate speculators, especially when the option fee is extremely low. As there is no obligation on the part of the buyer to exercise the option and purchase the property and the option can be sold by the buyer to another party, low cost options are useful in real estate speculation. If the property value increases over the period of the option, then the owner of the option stands to make a solid profit through buying the property at the lower amount agreed to in the option. Conversely, if the property value declines in value, the option holder can decide not to purchase the property and forfeit his option fee.
For the average person, an option may be useful if there is a determination to buy a home in a particular area for reasons other than investment. An option also allows the buyer to "hold" the property for the duration of the agreement, allowing them to raise the required funds for the down payment and make other arrangements for the purchase of the property. The availability of options is usually indicative of a buyer's market and tend to benefit the buyer more than the seller; but they can also provide some relief to sellers as well. People looking to buy a home in the future, but not in a position to do so presently, may find options extremely useful.
The Number One Way to Obtain State Unclaimed Property Online
By Jeremy Lambert
The number one way to obtain state unclaimed property online by using a website with a search box feature for any state unclaimed property database. An unclaimed assets website is developed to search this files instantly by state unclaimed record experts to assist you in your efforts to search for funds that may belong to you or your relatives. It searches among the individual states as to which state abandoned property might be yours.
Get your lost property for a small fee with a search of the state unclaimed property databases. You can receive your state unclaimed property records in seconds after filling out the simple search box online. Over 90% of people have some sort of lost personal property out there just waiting on them. Of all the different available ways to get this information, the online search is the fastest.
There is a huge chance of you finding lost money or property with one simple little search. Everybody wants that extra money back. You and the people you know can get theirs from a great unclaimed assets search site today. The money and lost property is out there on those databases for you to find instantly. Take that minute or two to search for your cash online and you will be happy you did it. Think about the look on your friends and family members faces when you show them that they have money and property they did not even know existed. It will be well worth it to spend that little change to find unlimited amounts of lost property and cash online.
The number one way to obtain state unclaimed property online by using a website with a search box feature for any state unclaimed property database. An unclaimed assets website is developed to search this files instantly by state unclaimed record experts to assist you in your efforts to search for funds that may belong to you or your relatives. It searches among the individual states as to which state abandoned property might be yours.
Get your lost property for a small fee with a search of the state unclaimed property databases. You can receive your state unclaimed property records in seconds after filling out the simple search box online. Over 90% of people have some sort of lost personal property out there just waiting on them. Of all the different available ways to get this information, the online search is the fastest.
There is a huge chance of you finding lost money or property with one simple little search. Everybody wants that extra money back. You and the people you know can get theirs from a great unclaimed assets search site today. The money and lost property is out there on those databases for you to find instantly. Take that minute or two to search for your cash online and you will be happy you did it. Think about the look on your friends and family members faces when you show them that they have money and property they did not even know existed. It will be well worth it to spend that little change to find unlimited amounts of lost property and cash online.
Learn the Way to Find Unclaimed State Property Online
By Jeremy Lambert
If you want to learn the way to find unclaimed state property online then this is your article. First thing to learn is that there is an enormous amount of unclaimed property records to search through. They are being stockpiled throughout the country on a multitude of unclaimed storage databases. You will need to search these to find all your lost assets that are available to you. The best way to accomplish these feat is to search more then one at a time with specific state unclaimed records search boxes. You will quickly realize if the site on your browser has a search box or not.
If it does and you are really interested in finding your money then you fill out the simple search box for submission. You will receive results quickly and you can see if it is worth your money to look for information. Many citizens are in these listings and can easily obtain thousands of dollars by getting their search results, if you are listed. This can help with the scrambling to find all possible sources of extra cash flow.
Now you have had a crash course on how to learn the way to find unclaimed state property online, now where should you find one of these sites? If you just search a keyword related to your search interest such as lost money or what not, you will surely find an adequate website with search box options in the first pages of results. You may also follow the links from this article and find a search box instantly.
If you want to learn the way to find unclaimed state property online then this is your article. First thing to learn is that there is an enormous amount of unclaimed property records to search through. They are being stockpiled throughout the country on a multitude of unclaimed storage databases. You will need to search these to find all your lost assets that are available to you. The best way to accomplish these feat is to search more then one at a time with specific state unclaimed records search boxes. You will quickly realize if the site on your browser has a search box or not.
If it does and you are really interested in finding your money then you fill out the simple search box for submission. You will receive results quickly and you can see if it is worth your money to look for information. Many citizens are in these listings and can easily obtain thousands of dollars by getting their search results, if you are listed. This can help with the scrambling to find all possible sources of extra cash flow.
Now you have had a crash course on how to learn the way to find unclaimed state property online, now where should you find one of these sites? If you just search a keyword related to your search interest such as lost money or what not, you will surely find an adequate website with search box options in the first pages of results. You may also follow the links from this article and find a search box instantly.
Home Inspections and Tests - Know the Facts
By Joe Cline
The benefits of performing a home inspection before purchasing a new home are well known and documented, but you may not have considered the advantages a home inspection report can provide even if your home is not for sale. In fact, there are a number of inspections and tests available for Austin homeowners that can help you anticipate problems and even protect your family's safety. Besides a thorough home inspection, experts recommend testing your home for mold, radon, asbestos, lead paint, and pest infestation to ensure your home is safe and in optimal condition. Customers of Austin Energy can also schedule a free home energy analysis from local companies partnered with the utility.
General home inspection
Home inspection reports provide valuable information about the condition of your home. That information can be vital to you as a homeowner, no matter how long you've owned your house. Scheduling a professional home inspection will give you a clear assessment of the various systems in your home, including an estimated time frame for replacement and a general idea of what kinds of repairs may be necessary. You will be able to plan for repairs and replacements of older systems in advance, allowing a measure of financial control and preventing unexpected breakdowns.
Mold
The U.S. Department of Housing and Urban Development (HUD) has identified toxic mold as a health risk, especially for people suffering from allergies or asthma. Mold can grow almost anywhere in your home and can be difficult to spot, since it prefers damp, dark areas. A mold inspection can determine whether toxic mold is presenting a health risk for you and your family, and offer options for remedying the problem.
Radon
HUD recommends that homeowners test their property for dangerous levels of radon. Radon, a colorless and odorless gas, is radioactive and can cause lung cancer in high dosages. Professional radon testers can measure the level of radon in your home and, if high levels of radon exist, assist you in repairing the problem before it causes serious health problems. Home testing kits are also available, and some do-it-yourself kits for radon remediation can produce satisfactory results if used properly.
Asbestos
Mostly found in older homes, asbestos insulation can also cause cancer. While this problem is sometimes found during a general home inspection, asbestos remediation companies have expertise in identifying and removing asbestos insulation safely and without further risk to you and your family. Because of the toxic nature of asbestos and the difficulty in removing it completely, this is not a project you should try to undertake on your own.
Lead Paint
Homes built before 1978 may contain lead-based paint; this can cause lead poisoning and cause serious medical problems, including brain damage and birth defects. It's estimated that 1.7 million children may be affected by some degree of lead poisoning. Lead-based paint inspections are comparatively inexpensive; if your home was built before 1978, it's worth your while to schedule this inspection and ensure your home's safety.
Termite and Pest Inspection
In order to preserve the structural integrity of your home, termite inspections are an important part of your yearly maintenance schedule. If caught early, termites and other pests can be stopped before they do serious damage. General home inspections do not always cover insect damage, so a separate inspection is a good idea. If no infestation is found, most companies can recommend a preventive program to keep your home free from these pests and the damage they can do.
Austin Energy Analysis
Austin Energy has partnered with local companies to provide free walk-through energy audits for its customers. Especially geared toward promoting energy efficiency, these audits will check on the condition of your heating and cooling system, insulation, duct work, and the general condition of door and window frames. The company will then make suggestions about how you can improve your home's energy efficiency. This free service is part of Austin Energy's green initiative, and can save you hundreds of dollars each year in energy costs.
Knowing the condition of your home will allow you to plan improvements and repairs in advance. Additionally, some types of home inspections can save you money, preserve your home's condition and even protect your family's health: all good reasons to have your home thoroughly tested and inspected as soon as possible. These small investments can reap enormous rewards in health, safety, and comfort for you and your family.
The benefits of performing a home inspection before purchasing a new home are well known and documented, but you may not have considered the advantages a home inspection report can provide even if your home is not for sale. In fact, there are a number of inspections and tests available for Austin homeowners that can help you anticipate problems and even protect your family's safety. Besides a thorough home inspection, experts recommend testing your home for mold, radon, asbestos, lead paint, and pest infestation to ensure your home is safe and in optimal condition. Customers of Austin Energy can also schedule a free home energy analysis from local companies partnered with the utility.
General home inspection
Home inspection reports provide valuable information about the condition of your home. That information can be vital to you as a homeowner, no matter how long you've owned your house. Scheduling a professional home inspection will give you a clear assessment of the various systems in your home, including an estimated time frame for replacement and a general idea of what kinds of repairs may be necessary. You will be able to plan for repairs and replacements of older systems in advance, allowing a measure of financial control and preventing unexpected breakdowns.
Mold
The U.S. Department of Housing and Urban Development (HUD) has identified toxic mold as a health risk, especially for people suffering from allergies or asthma. Mold can grow almost anywhere in your home and can be difficult to spot, since it prefers damp, dark areas. A mold inspection can determine whether toxic mold is presenting a health risk for you and your family, and offer options for remedying the problem.
Radon
HUD recommends that homeowners test their property for dangerous levels of radon. Radon, a colorless and odorless gas, is radioactive and can cause lung cancer in high dosages. Professional radon testers can measure the level of radon in your home and, if high levels of radon exist, assist you in repairing the problem before it causes serious health problems. Home testing kits are also available, and some do-it-yourself kits for radon remediation can produce satisfactory results if used properly.
Asbestos
Mostly found in older homes, asbestos insulation can also cause cancer. While this problem is sometimes found during a general home inspection, asbestos remediation companies have expertise in identifying and removing asbestos insulation safely and without further risk to you and your family. Because of the toxic nature of asbestos and the difficulty in removing it completely, this is not a project you should try to undertake on your own.
Lead Paint
Homes built before 1978 may contain lead-based paint; this can cause lead poisoning and cause serious medical problems, including brain damage and birth defects. It's estimated that 1.7 million children may be affected by some degree of lead poisoning. Lead-based paint inspections are comparatively inexpensive; if your home was built before 1978, it's worth your while to schedule this inspection and ensure your home's safety.
Termite and Pest Inspection
In order to preserve the structural integrity of your home, termite inspections are an important part of your yearly maintenance schedule. If caught early, termites and other pests can be stopped before they do serious damage. General home inspections do not always cover insect damage, so a separate inspection is a good idea. If no infestation is found, most companies can recommend a preventive program to keep your home free from these pests and the damage they can do.
Austin Energy Analysis
Austin Energy has partnered with local companies to provide free walk-through energy audits for its customers. Especially geared toward promoting energy efficiency, these audits will check on the condition of your heating and cooling system, insulation, duct work, and the general condition of door and window frames. The company will then make suggestions about how you can improve your home's energy efficiency. This free service is part of Austin Energy's green initiative, and can save you hundreds of dollars each year in energy costs.
Knowing the condition of your home will allow you to plan improvements and repairs in advance. Additionally, some types of home inspections can save you money, preserve your home's condition and even protect your family's health: all good reasons to have your home thoroughly tested and inspected as soon as possible. These small investments can reap enormous rewards in health, safety, and comfort for you and your family.
Do You Need a Survey When Buying Or Selling a House?
By Rob Davy
When you're buying a house, you may be tempted to skip having a survey done -- after all, it may seem like an unnecessary extra expense on top of an already expensive purchase. Here are a few reasons we always recommend the buyer get a survey.
As some of the most experienced property surveyors in Waukesha County, Wisconsin, we can tell you that getting a survey when you buy a house is usually a smart idea. Many lot lines and fences have been built without a property survey in place, and if you buy a house without being aware of these issues, you can be in for some painful (and expensive) legal problems.
An old survey is certified to the seller, not to the buyer. Your new survey should be conducted and certified to you, the buyer. Your new survey will locate existing improvements (including any new ones since the old survey), easements, and identify any encroachments over the lot lines (driveways, fences, buildings, etc.) Optional items to consider adding to the survey are setting lot corner irons, marking lot lines, and identifying areas within the flood plain.
Knowledge of the flood plain is especially important, as we discovered here in Waukesha County last year. Extensive flood damage caught many homeowners unaware, some of whom may have bought flood insurance had they known their property had issues.
An experienced survey team can make all the difference. A current, thorough, and professional survey can give you peace of mind for your important home purchase.
When you're buying a house, you may be tempted to skip having a survey done -- after all, it may seem like an unnecessary extra expense on top of an already expensive purchase. Here are a few reasons we always recommend the buyer get a survey.
As some of the most experienced property surveyors in Waukesha County, Wisconsin, we can tell you that getting a survey when you buy a house is usually a smart idea. Many lot lines and fences have been built without a property survey in place, and if you buy a house without being aware of these issues, you can be in for some painful (and expensive) legal problems.
An old survey is certified to the seller, not to the buyer. Your new survey should be conducted and certified to you, the buyer. Your new survey will locate existing improvements (including any new ones since the old survey), easements, and identify any encroachments over the lot lines (driveways, fences, buildings, etc.) Optional items to consider adding to the survey are setting lot corner irons, marking lot lines, and identifying areas within the flood plain.
Knowledge of the flood plain is especially important, as we discovered here in Waukesha County last year. Extensive flood damage caught many homeowners unaware, some of whom may have bought flood insurance had they known their property had issues.
An experienced survey team can make all the difference. A current, thorough, and professional survey can give you peace of mind for your important home purchase.
Why Should I Sell My Real Estate Note?
By Robert E Young
Private Mortgage Notes, often referred to as Owner Financed Notes, are more and more common in today's economy. Owner Financing offers advantages that traditional lending methods do not in the sale of real estate. Conversely, situations change, and the note holder may need to rethink his position. I am often asked the question by note holders and clients, Why Should I Sell My Note? What benefit is it to me? Many note holders enjoy going to the mailbox once a month and receiving a check. Below are some points to think about and help you decide of whether to hold a real estate note or not.
* Owner Financing was offered by the property seller and they need the CASH quickly, after closing, to purchase another property. Often referred to as a Green note.
* In some instances the note holder may have an immediate need for CASH and more than the schedule principle and interest.
* The note holder has identified another investment or another property that he/she want to purchase and needs a lump sum of cash top do so.
* The payor of the note has become irregular in their payments and often late, the sale relieves collection concerns.
* The sale of the note relieves delinquency, foreclose or bankruptcy concerns.
* The property secured to the note is damaged or destruction of the property has occured.
* IRS report requirements have become an issue
* Death or Divorce to the payor has created an unfavorable circumstance.
* Unpaid Real Estate taxes
* A lapse in property insurance.
The last thing I want to leave you with looks at the Time Value of Money. Is a LUMP SUM of CASH worth more to you today than receiving monthly payment for the next 5 - 10 years? Put another way would you rather collect $1200.00 a month for the next several years or would rather receive $110,000 today. There are many other reasons that can entice the sale of a note, these are just a few of the more common reasons that occur.
Private Mortgage Notes, often referred to as Owner Financed Notes, are more and more common in today's economy. Owner Financing offers advantages that traditional lending methods do not in the sale of real estate. Conversely, situations change, and the note holder may need to rethink his position. I am often asked the question by note holders and clients, Why Should I Sell My Note? What benefit is it to me? Many note holders enjoy going to the mailbox once a month and receiving a check. Below are some points to think about and help you decide of whether to hold a real estate note or not.
* Owner Financing was offered by the property seller and they need the CASH quickly, after closing, to purchase another property. Often referred to as a Green note.
* In some instances the note holder may have an immediate need for CASH and more than the schedule principle and interest.
* The note holder has identified another investment or another property that he/she want to purchase and needs a lump sum of cash top do so.
* The payor of the note has become irregular in their payments and often late, the sale relieves collection concerns.
* The sale of the note relieves delinquency, foreclose or bankruptcy concerns.
* The property secured to the note is damaged or destruction of the property has occured.
* IRS report requirements have become an issue
* Death or Divorce to the payor has created an unfavorable circumstance.
* Unpaid Real Estate taxes
* A lapse in property insurance.
The last thing I want to leave you with looks at the Time Value of Money. Is a LUMP SUM of CASH worth more to you today than receiving monthly payment for the next 5 - 10 years? Put another way would you rather collect $1200.00 a month for the next several years or would rather receive $110,000 today. There are many other reasons that can entice the sale of a note, these are just a few of the more common reasons that occur.
Ownerless Property - Is There Such a Thing in the UK?
By Rob Fellowman
The Land Registry in the UK has recently campaigned to encourage more people to come forward to register their property or land but at present over 40% of land is still unregistered in England and Wales. As HM Land Registry points out all land is owned by someone. Even if a person with no relatives has died without leaving a will there will still be an owner, they might not even know they are the owner!
There does seem to be an abundance of websites offering the knowhow to claim unregistered land or property but the fact is this is extremely difficult to do as during the process the owner will usually surface or another person will come forward with a counter claim. These sites usually advise that you place a fence around the land or change the locks on a building as helps when claiming ownership, please bear in mind the cost of fencing off a large field only for the owner to come out of the woodwork to question what you are doing, if you are serious about owning the land then it would be easier to instruct a company to trace the owner of unregistered land on your behalf.
If you want to know who owns a piece of land or a property the first thing to do is find out who owns that property via a company who can provide this information for you, If this comes up blank, you then have to start the detective work.
The cheapest way to find out who owns a piece of land is to make local enquiries. But potential claimants should be wary of giving away too much about their motivation.
The local pub and the vicar may also come up with useful information, and the post office will know if mail is ever delivered to the address. Finding the owners of unregistered land can be a difficult task so it may be easier to use a specialist company to locate the land owners for you.
If your property is unregistered, even if it is empty, you should still have a bundle of deeds and records from previous sales and mortgages that can prove your ownership in case of a dispute.
But your best option is to register the property with HM Land Registry as soon as you can, this will stop any claims before they start.
Good luck finding the owners of unregistered land.
The Land Registry in the UK has recently campaigned to encourage more people to come forward to register their property or land but at present over 40% of land is still unregistered in England and Wales. As HM Land Registry points out all land is owned by someone. Even if a person with no relatives has died without leaving a will there will still be an owner, they might not even know they are the owner!
There does seem to be an abundance of websites offering the knowhow to claim unregistered land or property but the fact is this is extremely difficult to do as during the process the owner will usually surface or another person will come forward with a counter claim. These sites usually advise that you place a fence around the land or change the locks on a building as helps when claiming ownership, please bear in mind the cost of fencing off a large field only for the owner to come out of the woodwork to question what you are doing, if you are serious about owning the land then it would be easier to instruct a company to trace the owner of unregistered land on your behalf.
If you want to know who owns a piece of land or a property the first thing to do is find out who owns that property via a company who can provide this information for you, If this comes up blank, you then have to start the detective work.
The cheapest way to find out who owns a piece of land is to make local enquiries. But potential claimants should be wary of giving away too much about their motivation.
The local pub and the vicar may also come up with useful information, and the post office will know if mail is ever delivered to the address. Finding the owners of unregistered land can be a difficult task so it may be easier to use a specialist company to locate the land owners for you.
If your property is unregistered, even if it is empty, you should still have a bundle of deeds and records from previous sales and mortgages that can prove your ownership in case of a dispute.
But your best option is to register the property with HM Land Registry as soon as you can, this will stop any claims before they start.
Good luck finding the owners of unregistered land.
How to Read Between the Lines of Real Estate News
By John Watch
We all need to stop, think and let our emotions subside. Real Estate articles and headlines continually press the housing bottom issue with catch phrases, buzz words and faulty property data from public records that stimulate irrational responses. But along with Real Estate being Emotional, it is Cyclical and Seasonal as well. As the public, it is our job to filter through the news that is being presented to us. But sometimes it gets tricky. Here are some tips on how to read between the lines of real estate.
Read the Entire Article: I know it sounds like common sense, but most readers fail to read an entire article and are only left with the impression of the headline and the first two paragraphs. Article headlines are deliberately written in a way to draw readers in, despite whether the headline makes any sense or not. Since most real estate articles are written like feature stories in a narrative manner, the real value of the story - or the nut graph - doesn't appear until 3 or 4 paragraphs down. Usually, this is where the headline is either proven to be false, exaggerated or irrelevant.
Watch For Buzz Words: When words like "soar" "plunge" and "boom" are used, watch out. Look at the data being presented (if there is any) and determine if these words hold any merit. If home sales had an uptick of 1% month-over-month, in a seasonal cycle with an $8,000 tax credit incentive, is "soar" the word to be using? The same goes with economists "forecast" "predictions" and "projections". If construction was projected to drop 17% and it only dropped 15%, we are not doing "better than expected." All of these cases are subjective. Don't get overwhelmed with emotional expressions and confusing jargon. If the validity of the writing is in question, then the validity of the data can be questioned as well.
Use More Than One Source: If an article is making claims without multiple accurate and sufficient sources of data to support it, counter the report with another of the same topic. Usually you will find two different spins on the same data reports everyday. Our recent article on the Real Estate Mania of the Case-Shiller Index touched on this situation. As the old saying goes, there are three sides to a story; one side and the opposing side, with the Truth lying somewhere nestled in the middle.
Do Your Own Research: What good is it to receive information if we don't bother to determine our own interpretation? People share stories to get another viewpoint. If you spit out verbatim to a person sharing a story or experience, you haven't added any value to their perspective. After viewing two opposing viewpoints, search the web for the direct source of data. See how they spin it, look closely at that data and ask yourself questions for clarity. If the clarity you're looking for can't be achieved, then something is wrong.
See What Others Think: Individuals are smart, it's only People who suffer from lack of reasoning and understanding. With the surge of Social Media, it is easier than ever to see what other people think on a particular situation. Many times, a bogus article is flagged right in the comment section following it. Gather the opinions of your peers in the comments and scour the social media networks for recent conversations.
As we head into the fall and winter seasons of Real Estate, it is important to decipher the news being fed to us everyday. Even prominent news sources can't be taken for face value. Stop, think and let the emotions subside.
We all need to stop, think and let our emotions subside. Real Estate articles and headlines continually press the housing bottom issue with catch phrases, buzz words and faulty property data from public records that stimulate irrational responses. But along with Real Estate being Emotional, it is Cyclical and Seasonal as well. As the public, it is our job to filter through the news that is being presented to us. But sometimes it gets tricky. Here are some tips on how to read between the lines of real estate.
Read the Entire Article: I know it sounds like common sense, but most readers fail to read an entire article and are only left with the impression of the headline and the first two paragraphs. Article headlines are deliberately written in a way to draw readers in, despite whether the headline makes any sense or not. Since most real estate articles are written like feature stories in a narrative manner, the real value of the story - or the nut graph - doesn't appear until 3 or 4 paragraphs down. Usually, this is where the headline is either proven to be false, exaggerated or irrelevant.
Watch For Buzz Words: When words like "soar" "plunge" and "boom" are used, watch out. Look at the data being presented (if there is any) and determine if these words hold any merit. If home sales had an uptick of 1% month-over-month, in a seasonal cycle with an $8,000 tax credit incentive, is "soar" the word to be using? The same goes with economists "forecast" "predictions" and "projections". If construction was projected to drop 17% and it only dropped 15%, we are not doing "better than expected." All of these cases are subjective. Don't get overwhelmed with emotional expressions and confusing jargon. If the validity of the writing is in question, then the validity of the data can be questioned as well.
Use More Than One Source: If an article is making claims without multiple accurate and sufficient sources of data to support it, counter the report with another of the same topic. Usually you will find two different spins on the same data reports everyday. Our recent article on the Real Estate Mania of the Case-Shiller Index touched on this situation. As the old saying goes, there are three sides to a story; one side and the opposing side, with the Truth lying somewhere nestled in the middle.
Do Your Own Research: What good is it to receive information if we don't bother to determine our own interpretation? People share stories to get another viewpoint. If you spit out verbatim to a person sharing a story or experience, you haven't added any value to their perspective. After viewing two opposing viewpoints, search the web for the direct source of data. See how they spin it, look closely at that data and ask yourself questions for clarity. If the clarity you're looking for can't be achieved, then something is wrong.
See What Others Think: Individuals are smart, it's only People who suffer from lack of reasoning and understanding. With the surge of Social Media, it is easier than ever to see what other people think on a particular situation. Many times, a bogus article is flagged right in the comment section following it. Gather the opinions of your peers in the comments and scour the social media networks for recent conversations.
As we head into the fall and winter seasons of Real Estate, it is important to decipher the news being fed to us everyday. Even prominent news sources can't be taken for face value. Stop, think and let the emotions subside.
Low-Rise Independent Floors in Demand in Delhi-NCR
By Joseph Golu Smith
Low-rise independent floors are in great demand in Delhi-NCR. This preference is mainly found for residential houses. Especially those who like privacy and can afford the high cost of land value opt for independent villas in Gurgaon, Noida, Gaziabad and Faridabad regions of NCR. Normally, independent villas are not preferred by most people due to the high land value. As the stretch is an industrial belt, corporate executives, industrialists, businessmen, professionals and NRI buyers mainly prefer independent floors. As an inevitable corollary and consequence to this higher preference for independent floors, the Delhi-NCR region has been witnessing an unprecedented rate of appreciation in this category of real estate.
In Delhi-NCR, in the Gurgaon region the average square foot rate for low-rise independent floors in March 2007 it was Rs.62. By August 2009, it rose to Rs.12000. Similarly, in Noida Sector 22 it was Rs.7750 in June 2007, but in June 2009 it went up to 11000. In Gaziabad Sector 15 the average cost was Rs.7500 in April 2007 and in March 2009 it went up to Rs.10500. Again, in Faridabad the average cost was Rs.8000 in July 2007. Now it has reached Rs.12000. Same is the case in different locations in Delhi. In fact Delhi has been witnessing a consistent rise in property rates for several decades. This is primarily due to the importance of Delhi as the National Capital. Also, Delhi is the most preferred educational centre in India with prestigious centres of learning. The prices of independent floors in prominent Delhi localities in June 2007 and August 2009 are like this: Alipur (62-11000); Ashok Vihar (8000-10750); Dr.Mukherji Nagar (7500-9000); Kingsway Camp (8000-10500); Model Town (7250-10000); Mori Gate (7500-10250); Paschim Vihar (8000-10500); Shakti Nagar (7500-10000); Shalimar Bag (8000-11000).
It is evident from the foregoing data that low-rise independent floors are in great demand in the Delhi-NCR region. This ever-growing demand is due to the commercial significance of the place. There has been a metamorphosis in the economic scene in Delhi and surrounding area during the recent years. This change was triggered by the emerging economic equations and market matrices whereby the Indian subcontinent is perceived as a global market of abiding potential. This has resulted in the convergence of the major business brands of the world in the Delhi-NCR region. In consequence, there has been an ever-increasing migrant population to these locations from intra-national as well as international locations. As an inevitable fall out of this phenomenon, real estate prices went up and independent floors became all the more in great demand.
Low-rise independent floors are in great demand in Delhi-NCR. This preference is mainly found for residential houses. Especially those who like privacy and can afford the high cost of land value opt for independent villas in Gurgaon, Noida, Gaziabad and Faridabad regions of NCR. Normally, independent villas are not preferred by most people due to the high land value. As the stretch is an industrial belt, corporate executives, industrialists, businessmen, professionals and NRI buyers mainly prefer independent floors. As an inevitable corollary and consequence to this higher preference for independent floors, the Delhi-NCR region has been witnessing an unprecedented rate of appreciation in this category of real estate.
In Delhi-NCR, in the Gurgaon region the average square foot rate for low-rise independent floors in March 2007 it was Rs.62. By August 2009, it rose to Rs.12000. Similarly, in Noida Sector 22 it was Rs.7750 in June 2007, but in June 2009 it went up to 11000. In Gaziabad Sector 15 the average cost was Rs.7500 in April 2007 and in March 2009 it went up to Rs.10500. Again, in Faridabad the average cost was Rs.8000 in July 2007. Now it has reached Rs.12000. Same is the case in different locations in Delhi. In fact Delhi has been witnessing a consistent rise in property rates for several decades. This is primarily due to the importance of Delhi as the National Capital. Also, Delhi is the most preferred educational centre in India with prestigious centres of learning. The prices of independent floors in prominent Delhi localities in June 2007 and August 2009 are like this: Alipur (62-11000); Ashok Vihar (8000-10750); Dr.Mukherji Nagar (7500-9000); Kingsway Camp (8000-10500); Model Town (7250-10000); Mori Gate (7500-10250); Paschim Vihar (8000-10500); Shakti Nagar (7500-10000); Shalimar Bag (8000-11000).
It is evident from the foregoing data that low-rise independent floors are in great demand in the Delhi-NCR region. This ever-growing demand is due to the commercial significance of the place. There has been a metamorphosis in the economic scene in Delhi and surrounding area during the recent years. This change was triggered by the emerging economic equations and market matrices whereby the Indian subcontinent is perceived as a global market of abiding potential. This has resulted in the convergence of the major business brands of the world in the Delhi-NCR region. In consequence, there has been an ever-increasing migrant population to these locations from intra-national as well as international locations. As an inevitable fall out of this phenomenon, real estate prices went up and independent floors became all the more in great demand.
The American Dream, Buying a Home - Will it Remain a Dream Or Will it Turn Into a Nightmare, Part 3
By William Nottoli
When I retired from the Air Force in 1989, my wife and I had decided to move back to Utah and build our home next to our best friends where we had purchased an empty lot . When we returned to Utah it was already fall, we thought of renting for a year while having our home built and get reestablished. This process really taught me patience and why you want to let any deal take its natural course, no matter how long it takes. After three long years, we finally got our home built and after signing everything we found out, the loan was two percentage points lower than what we were originally quoted and we also saved two points on closing costs. A point is one percent, so saving two points saved us about fifteen hundred dollars. As I would learn a little later, if a lender is charging more than two points in fees he is trying to gouge you.
There were a couple of reasons it took us so long, first the market was in a sellers market, and the interest rates were at 9 or 10 percent and we also had to wait for over three years before I could meet the minimum time on the job requirements. This is one of the more important criteria the lenders have, you must be on your job for at least 6 months, one year if you change jobs frequently. I had a great streak going, five companies in less than 3 years that I work for had been bought out and the operations were moved out of state. Since I was really tired of job looking, I decided to start my own business and then If my company was bought out and move out of state then I would be ready for true retirement. For the next ten to twelve years I worked in the housing industry, I first started out as an a investor, then my wife suggested really hard to become a Realtor. Several years later I had chance to become a loan Officer at the brokerage I worked out of. This added information my broker taught was really the difference, I learned so much more about all sides of the real estate business.
I am thoroughly convinced that the best way to become financially independent (which is bringing in more money than you spend) is to become self employed. There are many benefits you can have if you follow the advice of your accountant or mentor, however there is one drawback, if you have some health problems you do not get sick pay. This is where an assistant could come in handy, but if you can not afford an assistant, Well I guess that is the way things go sometime. When things seems to be going right, everything seems to be easy and you know something has to change. It happened to me right after my wife went home for thanksgiving season one year. I became ill and it took awhile before I was well enough to go back out and earn money, and by the time I was back to work it was too late, I ended up filing bankruptcy and had my home foreclosed and we were totally devastated and not sure where to go from there.
When I retired from the Air Force in 1989, my wife and I had decided to move back to Utah and build our home next to our best friends where we had purchased an empty lot . When we returned to Utah it was already fall, we thought of renting for a year while having our home built and get reestablished. This process really taught me patience and why you want to let any deal take its natural course, no matter how long it takes. After three long years, we finally got our home built and after signing everything we found out, the loan was two percentage points lower than what we were originally quoted and we also saved two points on closing costs. A point is one percent, so saving two points saved us about fifteen hundred dollars. As I would learn a little later, if a lender is charging more than two points in fees he is trying to gouge you.
There were a couple of reasons it took us so long, first the market was in a sellers market, and the interest rates were at 9 or 10 percent and we also had to wait for over three years before I could meet the minimum time on the job requirements. This is one of the more important criteria the lenders have, you must be on your job for at least 6 months, one year if you change jobs frequently. I had a great streak going, five companies in less than 3 years that I work for had been bought out and the operations were moved out of state. Since I was really tired of job looking, I decided to start my own business and then If my company was bought out and move out of state then I would be ready for true retirement. For the next ten to twelve years I worked in the housing industry, I first started out as an a investor, then my wife suggested really hard to become a Realtor. Several years later I had chance to become a loan Officer at the brokerage I worked out of. This added information my broker taught was really the difference, I learned so much more about all sides of the real estate business.
I am thoroughly convinced that the best way to become financially independent (which is bringing in more money than you spend) is to become self employed. There are many benefits you can have if you follow the advice of your accountant or mentor, however there is one drawback, if you have some health problems you do not get sick pay. This is where an assistant could come in handy, but if you can not afford an assistant, Well I guess that is the way things go sometime. When things seems to be going right, everything seems to be easy and you know something has to change. It happened to me right after my wife went home for thanksgiving season one year. I became ill and it took awhile before I was well enough to go back out and earn money, and by the time I was back to work it was too late, I ended up filing bankruptcy and had my home foreclosed and we were totally devastated and not sure where to go from there.
The American Dream, Buying a Home - Will it Remain a Dream Or Will it Turn Into a Nightmare, Part 2
By William Nottoli
In the early 1970's being single, in the Air Force and being stationed overseas in Japan and then Greece, I had no thoughts of owning a home and even after getting married in 1974 with all the moving I was doing, my wife and I were quite content to live in base housing. One day as I waited for my Squadron Commander and First Sergent to finish inspecting the house we lived in, to make sure it was clean and in good repair, a thought struck me. Why am I putting up with having someone come in and tell me whether I am keeping this house clean enough, in all the years I lived with my parents, nobody ever came in to inspect the property. That is when I decided, I want to buy my own house. This is also my first real taste of reality, there was no way I could afford to pay the monthly payments, let alone the utilities and I really did not have that much in savings to use as a down payment. I decided to look at homes anyway just to see if we could find a steal. There was nothing even close to we could afford, even the dumps were beyond our budget. My wife want to look at mobile homes and my first reaction was "I not living in a trailer". The next weekend we were sitting at the golden arches, being dejected from wasting time looking at homes we could not afford. My wife said, she wanted to look at the model of a mobile home that was across the street, the one that looked like a cabin you would find in the mountains. I figured, what the heck, I have look at so many homes let's see what these "trailers" have to offer. So after we finished eating, we went over to "just look", well this "trailer" was absolutely beautiful with lots of room and the best part was, I could afford it. So we spent the rest of the day looking at all the models they had (all which I could afford), we decided on a model we both liked. We then worked on the financing and I can still remember the monthly payments were about two hundred and fifty dollars, which would take a good portion of my paycheck, but I knew I was getting a raise in a few months and I also would start receiving a housing allowance, so we decided to go for it.
We lived in that home for about eight years, moved it from the Mojave desert to Utah. That first winter in Utah I learned about frozen pipes and sewer lines, I spent so much time under the home. I felt I knew the underside of my home better than the inside and I also finally understood what I had been told, about moving the home to Utah, just because the house has extra insulated does not mean it was designed for that area. Through it all the best part of still having the mobile home was our monthly payment had become dirt cheap. I learned later that this is a principle behind a real good loan program called a 2-1 or a 3-1 buy down which is included in the loan package. This is where the loan will start at lower monthly payment then it normally would and each year for either two or three years the payments will raised until you reach the normal payment. Here is an example: lets say your monthly payment should be $800 per month, with a buy down, the first year would be say $600 and the second year $700 and then the third year it would be at $800 for the rest of the loan. This has been one of the more helpful loan programs for couples who might have trouble adjusting to higher payment from what they are use to. This also helps families that expect to grow in numbers to be able to get a little larger home so they can grow into the house and not grow out of it.
In the early 1970's being single, in the Air Force and being stationed overseas in Japan and then Greece, I had no thoughts of owning a home and even after getting married in 1974 with all the moving I was doing, my wife and I were quite content to live in base housing. One day as I waited for my Squadron Commander and First Sergent to finish inspecting the house we lived in, to make sure it was clean and in good repair, a thought struck me. Why am I putting up with having someone come in and tell me whether I am keeping this house clean enough, in all the years I lived with my parents, nobody ever came in to inspect the property. That is when I decided, I want to buy my own house. This is also my first real taste of reality, there was no way I could afford to pay the monthly payments, let alone the utilities and I really did not have that much in savings to use as a down payment. I decided to look at homes anyway just to see if we could find a steal. There was nothing even close to we could afford, even the dumps were beyond our budget. My wife want to look at mobile homes and my first reaction was "I not living in a trailer". The next weekend we were sitting at the golden arches, being dejected from wasting time looking at homes we could not afford. My wife said, she wanted to look at the model of a mobile home that was across the street, the one that looked like a cabin you would find in the mountains. I figured, what the heck, I have look at so many homes let's see what these "trailers" have to offer. So after we finished eating, we went over to "just look", well this "trailer" was absolutely beautiful with lots of room and the best part was, I could afford it. So we spent the rest of the day looking at all the models they had (all which I could afford), we decided on a model we both liked. We then worked on the financing and I can still remember the monthly payments were about two hundred and fifty dollars, which would take a good portion of my paycheck, but I knew I was getting a raise in a few months and I also would start receiving a housing allowance, so we decided to go for it.
We lived in that home for about eight years, moved it from the Mojave desert to Utah. That first winter in Utah I learned about frozen pipes and sewer lines, I spent so much time under the home. I felt I knew the underside of my home better than the inside and I also finally understood what I had been told, about moving the home to Utah, just because the house has extra insulated does not mean it was designed for that area. Through it all the best part of still having the mobile home was our monthly payment had become dirt cheap. I learned later that this is a principle behind a real good loan program called a 2-1 or a 3-1 buy down which is included in the loan package. This is where the loan will start at lower monthly payment then it normally would and each year for either two or three years the payments will raised until you reach the normal payment. Here is an example: lets say your monthly payment should be $800 per month, with a buy down, the first year would be say $600 and the second year $700 and then the third year it would be at $800 for the rest of the loan. This has been one of the more helpful loan programs for couples who might have trouble adjusting to higher payment from what they are use to. This also helps families that expect to grow in numbers to be able to get a little larger home so they can grow into the house and not grow out of it.
Tennessee Homes
By Crystal Jacobs
The state of Tennessee is situated in the Southeastern part of United States. The exotic beauty of the place is guaranteed to draw hordes of people, especially those who are looking for Tennessee Homes. The beautiful area of Tennessee is located in one of the last tracts of perfect backwoods in the eastern part of United States. The most popular cities of Tennessee are witnessing an increase in the number of families, which are relocating to the area. But at the same time there are those who are selling their Tennessee Homes to move on to some other up market area of the country.
Tennessee has some excellent offerings to its residents like an excellent private and public education system. The residents does not have to pay any kind of income tax to the state, the overall property tax rate is very low and also has a rigid law system. Nashville in Middle Tennessee is one of those areas that are developing rapidly; the region is gaining immense popularity as one of the fastest growing areas but it has still retained the flavor of a small town. Buyers who are looking out for Tennessee Homes would be amazed to see the available waterfront property in the region of Chattanooga, Tellico Lake, in addition to other real estate, that are put up for sale in the suburbs of Nashville.
The state promises to offer something or the other to people belonging to every age group. There are a large number of amusement parks, festivals, museums, shopping malls, antique stores and entertaining nightlife attractions, which promises to keep its residents busy throughout the year. The Tennessee realtors who are involved in Tennessee Real Estate dealings, are of the opinion that there is a sound demand for single-family homes, condominiums as well as land for sale in popular areas in Memphis, Nashville, and Knoxville. The people who are thinking of relocating to Tennessee and are looking for Tennessee Homes would be glad to find out that there is enough provision for house rentals, apartments for sale and even Tennessee realty in each and every city, town and rural area of the state. With the availability of a number of Tennessee realtors, buying Tennessee Homes would not be much of a problem for the new residents.
Knox County is located in the U.S. state of Tennessee, with Knoxville as the county seat. The origin of Tennessee River is very close to the heart of Knox County, more accurately at the union of the Holston and French Broad Rivers. There are a number of homes for sale in Knox County, ranging from $419,900 to $500,000. While choosing among the different Tennessee Homes the buyers would get the liberty to select the perfect location, the number of bed rooms and other different facilities.
The state of Tennessee is situated in the Southeastern part of United States. The exotic beauty of the place is guaranteed to draw hordes of people, especially those who are looking for Tennessee Homes. The beautiful area of Tennessee is located in one of the last tracts of perfect backwoods in the eastern part of United States. The most popular cities of Tennessee are witnessing an increase in the number of families, which are relocating to the area. But at the same time there are those who are selling their Tennessee Homes to move on to some other up market area of the country.
Tennessee has some excellent offerings to its residents like an excellent private and public education system. The residents does not have to pay any kind of income tax to the state, the overall property tax rate is very low and also has a rigid law system. Nashville in Middle Tennessee is one of those areas that are developing rapidly; the region is gaining immense popularity as one of the fastest growing areas but it has still retained the flavor of a small town. Buyers who are looking out for Tennessee Homes would be amazed to see the available waterfront property in the region of Chattanooga, Tellico Lake, in addition to other real estate, that are put up for sale in the suburbs of Nashville.
The state promises to offer something or the other to people belonging to every age group. There are a large number of amusement parks, festivals, museums, shopping malls, antique stores and entertaining nightlife attractions, which promises to keep its residents busy throughout the year. The Tennessee realtors who are involved in Tennessee Real Estate dealings, are of the opinion that there is a sound demand for single-family homes, condominiums as well as land for sale in popular areas in Memphis, Nashville, and Knoxville. The people who are thinking of relocating to Tennessee and are looking for Tennessee Homes would be glad to find out that there is enough provision for house rentals, apartments for sale and even Tennessee realty in each and every city, town and rural area of the state. With the availability of a number of Tennessee realtors, buying Tennessee Homes would not be much of a problem for the new residents.
Knox County is located in the U.S. state of Tennessee, with Knoxville as the county seat. The origin of Tennessee River is very close to the heart of Knox County, more accurately at the union of the Holston and French Broad Rivers. There are a number of homes for sale in Knox County, ranging from $419,900 to $500,000. While choosing among the different Tennessee Homes the buyers would get the liberty to select the perfect location, the number of bed rooms and other different facilities.
Brokerage Firms - Which One is the Best For You?
By Tom Greenspan
When it comes to choose a commercial real estate brokerage firm, the interested realty agent is probably concerned about how the firm he/she chooses is going to be of help in order to grow his/her business. One of the most asked questions by the new real estate agent is about what is to be expected from lead generations. But other factors are also determining, and so an agent might choose a firm that does not offer so much leads but that it does offers different and more varied benefits.
One of those benefits can be a good mentorship, which will be of great value for an agent just starting in the business and looking to increase his real estate capacities. For example, if acquiring leads is easy for you due to good business contacts, then you might want to get a good training program that will bring you a great deal of knowledge as the main advantage.
Another factor to consider is the salary. Is the commercial real estate brokerage firm that you chose offering one? Do you need it? Or maybe the firm is offering a draw account as an option, but such draw must be re-paid, so it might limit your chances of getting a better offering from a different firm. So think about this, and also about the different non-salary benefits that the firm offers, such as retirement plans, insurance and others. Check also for the staff. Will you be doing most of the work by yourself or do they offer you support in tasks like letters or real estate agreements?
And finally, the employment agreement: read this document in detail! It contains important information that has listed some commercial real estate brokerage firms as using an 'unfriendly' employment agreement. So probably after reading this article you might be thinking that joining a firm is more than just the cash you are planning on earning, and you are totally right, so check on different brokerage firms before you take such an important decision.
When it comes to choose a commercial real estate brokerage firm, the interested realty agent is probably concerned about how the firm he/she chooses is going to be of help in order to grow his/her business. One of the most asked questions by the new real estate agent is about what is to be expected from lead generations. But other factors are also determining, and so an agent might choose a firm that does not offer so much leads but that it does offers different and more varied benefits.
One of those benefits can be a good mentorship, which will be of great value for an agent just starting in the business and looking to increase his real estate capacities. For example, if acquiring leads is easy for you due to good business contacts, then you might want to get a good training program that will bring you a great deal of knowledge as the main advantage.
Another factor to consider is the salary. Is the commercial real estate brokerage firm that you chose offering one? Do you need it? Or maybe the firm is offering a draw account as an option, but such draw must be re-paid, so it might limit your chances of getting a better offering from a different firm. So think about this, and also about the different non-salary benefits that the firm offers, such as retirement plans, insurance and others. Check also for the staff. Will you be doing most of the work by yourself or do they offer you support in tasks like letters or real estate agreements?
And finally, the employment agreement: read this document in detail! It contains important information that has listed some commercial real estate brokerage firms as using an 'unfriendly' employment agreement. So probably after reading this article you might be thinking that joining a firm is more than just the cash you are planning on earning, and you are totally right, so check on different brokerage firms before you take such an important decision.
California Homes
By Tony Seerano
California is one of the most populous states in the United States of America. It also constitutes the third largest area. The beautiful and awe-inspiring landscape has prompted a large number of people from around the world to search for properties in this specific area. Due to its world class living conditions, many have also taken interest in California Real estate. It is known for its diverse population and amazing geographical location. Even though the economic downturn has taken a toll world wide, the housing market in California has been booming.
Be it the Orange city, San Diego, Santa Cruz , San Jose or Huntington beach , homes in California range from luxury resort like constructions to small apartments. California real estate in the Orange County was initially developed by the Mission Viejo Company. There are several diverse neighborhoods with home styles ranging from singles, families to mature adults. Also available are the executive homes which offer the luxury of custom golf-course within the house premises. For the first time home buyers there are different types of California homes. At present, over 95,000 people reside in this area. These communities reside in a mixture of attached Condos, detached 1 and 2 story homes that have been designed by some of the reputed designers. Homes for sale Orange county, California offers a wide range of choices.
San Diego is another place where more and more people are showing their interest in buying a property. Even though the prices of small houses can be sky high, people like to stay here because of its beautiful landscape and environment. Often a one bedroom flat might cost $1600 which is quite expensive compared to other areas, but keeping in mind the beautiful surroundings one might love to stay here. Potential home buyers can search for upscale homes in the northern part of San Diego. Homes here can be customized by the designers according to the need of the customers. Another attraction of this area is the acquiring of the horse properties. Equestrian properties in North San Diego are exclusive in this area.
Prospective home buyers can discover a number of affordable homes for sale in this region without shelling a huge number of dollars. Minus high costs this area can also offer beautiful living conditions even within a stipulated budget. There are plenty of homes for sale in California. California Realtors are aplenty who are ready to cater to the varying needs of their clients and striking a balance between comfort and pricing. One just have to be aware and look for the right time to negotiate to get the right house he or she is looking for.
California is one of the most populous states in the United States of America. It also constitutes the third largest area. The beautiful and awe-inspiring landscape has prompted a large number of people from around the world to search for properties in this specific area. Due to its world class living conditions, many have also taken interest in California Real estate. It is known for its diverse population and amazing geographical location. Even though the economic downturn has taken a toll world wide, the housing market in California has been booming.
Be it the Orange city, San Diego, Santa Cruz , San Jose or Huntington beach , homes in California range from luxury resort like constructions to small apartments. California real estate in the Orange County was initially developed by the Mission Viejo Company. There are several diverse neighborhoods with home styles ranging from singles, families to mature adults. Also available are the executive homes which offer the luxury of custom golf-course within the house premises. For the first time home buyers there are different types of California homes. At present, over 95,000 people reside in this area. These communities reside in a mixture of attached Condos, detached 1 and 2 story homes that have been designed by some of the reputed designers. Homes for sale Orange county, California offers a wide range of choices.
San Diego is another place where more and more people are showing their interest in buying a property. Even though the prices of small houses can be sky high, people like to stay here because of its beautiful landscape and environment. Often a one bedroom flat might cost $1600 which is quite expensive compared to other areas, but keeping in mind the beautiful surroundings one might love to stay here. Potential home buyers can search for upscale homes in the northern part of San Diego. Homes here can be customized by the designers according to the need of the customers. Another attraction of this area is the acquiring of the horse properties. Equestrian properties in North San Diego are exclusive in this area.
Prospective home buyers can discover a number of affordable homes for sale in this region without shelling a huge number of dollars. Minus high costs this area can also offer beautiful living conditions even within a stipulated budget. There are plenty of homes for sale in California. California Realtors are aplenty who are ready to cater to the varying needs of their clients and striking a balance between comfort and pricing. One just have to be aware and look for the right time to negotiate to get the right house he or she is looking for.
Wednesday, September 2, 2009
Terror and Real Estate
By Luigi Frascati
In general lines, terror endangers life such that the value of the future relative to the present is reduced. Hence, due to a rise in terror activity, investment diminishes and in the long run income and consumption go down as well. This is, in a capsule, the experience of the countries where terror and its derivatives were the least aimed at: Islam.
To counter the negative effects of terrorism, Islamic Governments such as those of Saudi Arabia and Egypt have tried to offset terror by putting tax revenues into the production of security. Facing a rising tide in terror, so was the idea, a government that acts optimally increases the proportion of output spent on defense. Thus, when terror peaks, given the scarcity of available economic resources, the long run equilibrium is of lower output and diminished welfare. Which, as many Muslim countries have discovered later on, results in a drop of aggregate demand and a general economic slow down as well.
European Union members, on the other hand, have and are experiencing the economic impact of terror in a different fashion. Here too, as the massacres in Madrid and London have demonstrated, terror, among other things, endangers civilians’ lives. Fears, bewilderment, and different types of uncertainties proximately created by terrorist activities have been responsible in Europe for altering and redirecting individuals’ economic choices. Insecurity manifests itself in the daily life by increasing uncertainty such that, as terror or even just the threat of terror increases, life itself becomes less certain. In reaction to the rise of insecurity levels, European Governments too have tried to offset the threat of terrorism by increasing defense spending. Thus, the total cost of terror has emerged from both the individuals and governments response to terror. Individuals have changed their consumption and investment decisions in response to the change in their perceived sense of security. Governments have responded by increasing defense expenditures. And in many member States, counter-terrorism measures carry what economists call a “security tax” - higher costs associated with longer waiting times, additional shipping charges and other ways of making the economy less efficient.
By contrast, this is not what happened in North America. Whereas, in fact, defense spending in Europe has been kept down to minimal levels for decades, even during the times of the Cold War, defense spending has taken invariably a substantial portion of the American budget. As a result, therefore, European countries had to allocate resources ex novo to guarantee the security of their citizens and safety of their institutions, while instead all America simply had to do was to shift already existing and available resources for different purposes.
Surely enough, also in North America consumers had to redirect their economic decision-making processes, but to a far lesser extent. Besides the debate of a few years ago involving restrictions of civil liberties, a closer scrutiny on who is coming in and going out of the country, the plan announced by the Bush Administration of eavesdropping on people’s private telephone calls and the ‘infamous’ ban on carrying nail-clippers into aircraft, North American consumers cannot say they have been subjected to much else.
Since safety does not come for free, governments must use real resources to ‘produce’ security and, unless they run the risk of magnifying their defense budgets specifically to address security concerns, governments must take those real resources from the private sector. Therefore, the decision of governments about how much to spend on defense is based on comparing the social costs of resources, i.e the costs of forgone consumption and of forgone future consumption (investment), which are used to provide security, with the benefit that emerges from making life safer, that is the benefit of reducing terror. This decision, however, is much less drastic when the private sector already has plenty of resources that can be allocated for security purposes.
And, in fact, the privatization of security, always under government’s supervision, serves as a catalyst to domestic economic activity and growth. It is an undisputed fact that market economies, in Capitalism, are moved by the supply and demand for goods and services. Specifically as it relates to capital markets such as real estate, furthermore, the production of output depends essentially on the accumulation of capital. This is so because the propensity to invest in production (construction of new inventories) depends a lot on expectations of future profitability and on the present perceptions of market risk.
Growth is derived by the equilibrium of capital and investment with labor and employment. And since production is in direct function of consumer spending, which increases as unemployment falls, it follows that capital accumulation increases as employment rises and capital accumulation decreases as employment falls. The development of and privatization of security, therefore, has worked in North America as a stimulus to growth by increasing employment levels and subsequent consumer spending, as proven by the levels of the Index of Consumer Confidence reported by the Feds in recent years, which levels remain very high. Since Capitalism is commonly understood to mean an economic system in which the means of production are predominantly privately owned and operated for profit, and whose primary objective is to promote capital growth, North America’s response to growing terrorist threats has had a beneficial effect on capital markets, including real estate.
In general lines, terror endangers life such that the value of the future relative to the present is reduced. Hence, due to a rise in terror activity, investment diminishes and in the long run income and consumption go down as well. This is, in a capsule, the experience of the countries where terror and its derivatives were the least aimed at: Islam.
To counter the negative effects of terrorism, Islamic Governments such as those of Saudi Arabia and Egypt have tried to offset terror by putting tax revenues into the production of security. Facing a rising tide in terror, so was the idea, a government that acts optimally increases the proportion of output spent on defense. Thus, when terror peaks, given the scarcity of available economic resources, the long run equilibrium is of lower output and diminished welfare. Which, as many Muslim countries have discovered later on, results in a drop of aggregate demand and a general economic slow down as well.
European Union members, on the other hand, have and are experiencing the economic impact of terror in a different fashion. Here too, as the massacres in Madrid and London have demonstrated, terror, among other things, endangers civilians’ lives. Fears, bewilderment, and different types of uncertainties proximately created by terrorist activities have been responsible in Europe for altering and redirecting individuals’ economic choices. Insecurity manifests itself in the daily life by increasing uncertainty such that, as terror or even just the threat of terror increases, life itself becomes less certain. In reaction to the rise of insecurity levels, European Governments too have tried to offset the threat of terrorism by increasing defense spending. Thus, the total cost of terror has emerged from both the individuals and governments response to terror. Individuals have changed their consumption and investment decisions in response to the change in their perceived sense of security. Governments have responded by increasing defense expenditures. And in many member States, counter-terrorism measures carry what economists call a “security tax” - higher costs associated with longer waiting times, additional shipping charges and other ways of making the economy less efficient.
By contrast, this is not what happened in North America. Whereas, in fact, defense spending in Europe has been kept down to minimal levels for decades, even during the times of the Cold War, defense spending has taken invariably a substantial portion of the American budget. As a result, therefore, European countries had to allocate resources ex novo to guarantee the security of their citizens and safety of their institutions, while instead all America simply had to do was to shift already existing and available resources for different purposes.
Surely enough, also in North America consumers had to redirect their economic decision-making processes, but to a far lesser extent. Besides the debate of a few years ago involving restrictions of civil liberties, a closer scrutiny on who is coming in and going out of the country, the plan announced by the Bush Administration of eavesdropping on people’s private telephone calls and the ‘infamous’ ban on carrying nail-clippers into aircraft, North American consumers cannot say they have been subjected to much else.
Since safety does not come for free, governments must use real resources to ‘produce’ security and, unless they run the risk of magnifying their defense budgets specifically to address security concerns, governments must take those real resources from the private sector. Therefore, the decision of governments about how much to spend on defense is based on comparing the social costs of resources, i.e the costs of forgone consumption and of forgone future consumption (investment), which are used to provide security, with the benefit that emerges from making life safer, that is the benefit of reducing terror. This decision, however, is much less drastic when the private sector already has plenty of resources that can be allocated for security purposes.
And, in fact, the privatization of security, always under government’s supervision, serves as a catalyst to domestic economic activity and growth. It is an undisputed fact that market economies, in Capitalism, are moved by the supply and demand for goods and services. Specifically as it relates to capital markets such as real estate, furthermore, the production of output depends essentially on the accumulation of capital. This is so because the propensity to invest in production (construction of new inventories) depends a lot on expectations of future profitability and on the present perceptions of market risk.
Growth is derived by the equilibrium of capital and investment with labor and employment. And since production is in direct function of consumer spending, which increases as unemployment falls, it follows that capital accumulation increases as employment rises and capital accumulation decreases as employment falls. The development of and privatization of security, therefore, has worked in North America as a stimulus to growth by increasing employment levels and subsequent consumer spending, as proven by the levels of the Index of Consumer Confidence reported by the Feds in recent years, which levels remain very high. Since Capitalism is commonly understood to mean an economic system in which the means of production are predominantly privately owned and operated for profit, and whose primary objective is to promote capital growth, North America’s response to growing terrorist threats has had a beneficial effect on capital markets, including real estate.
North America's Real Estate Markets Are Still The Safest Havens For Investors
By Luigi Frascati
Europe is pitiful, these days - economically speaking, that is.
The European Union is far from the position of strength politicians only a few years ago were portraying it would be. The socialist welfarism of the recent students riots in France, Italy’s shift to the left, Britain’s Tony Blair under siege and a still comatose German ‘Panzer Economie’ – all signal that Europe is in economic decline. It certainly does not appear that Western Europe can now afford what it is politically committed to do, and certainly not so within a decade or two as it regards health care and pensions for the elderly. The hope is to turn the most populous former Eastern European countries – Poland, Bulgaria, Hungary and Romania – into large self-sustaining consumers markets, and that may one day happen – but certainly not in the foreseeable future. The economies of the West and the East are too far apart to be integrated. Even Germany has considerable problems assimilating the former East Germany, and this notwithstanding all the billions of Euros that the ‘Deutsche Gesellschaft’ has poured into the East already. Not to mention the Union’s energy dependence on the flimsies of the Ukraine and Russia, an entirely separate matter all in and by itself.
The recent French riots in particular underscore the increasingly untenable system of job security at the expense of entrepreneurship, and that the grounds are set for a collision between expectations and economic reality. And whereas certain niches can certainly be found for international real estate investors, especially in countries like Bulgaria, the implied economic risks that must be assumed far outweigh, for the time being, the profits that can be reaped.
In China the economic achievements are huge, but so are the problems. President Clinton, in one of his last speeches, said that 200 million people in China were lifted from absolute poverty from 1978 to about 1999. That's equivalent to about two-thirds of the entire population of the United States in twenty years. But, at the same time, the factors of economic instability are many and worry the leadership. These factors include a financial and banking system that is basically bankrupt, with bad loans-out greater than the real net reserves of the entire banking system.
But, perhaps even more importantly, there is a great imbalance of wealth between the thirty-five percent of the population that lives in the cities and the sixty-five percent inhabiting the countryside. If one is lucky enough to be born in a city - and registered as a city dweller - it is easier to get into university. In the city, one can work at all the large companies and government agencies. Conversely, those who are registered as rural persons are subjected to very severe restrictions on where they can live and work. And this is actually the biggest human rights problem in China today. There is a majority of this population of 1.3 billion people that are, by law, second-class citizens. And unless the Chinese leadership comes to terms with this reality, this social injustice is a ticking time-bomb that one day will explode, also in the faces of those foreign venturers that invest in China.
Since capitalism is, by definition, a system in which the means of production are predominantly privately owned and operated for profit, and which operates in the absence of government coercion or constraint on the production, distribution, or consumption of goods and services, the whole of Islam, most of Africa and all South America – with the notable exception of Chile – are entirely cut out. This includes wealthy countries like the United Arab Emirates and especially Dubai, where the real estate boom of recent years has been plagued by slavery, stories of construction workers not being paid for months on end, and excessive working hours all of which have led to the rioting early in the year, as upset workers damaged cars, buildings, and construction equipment. Again, investment niches can be found anywhere, but risk far outweighs profitability.
Everything taken into account, therefore, real estate markets in the United States and Canada are still the two safest havens for secure investments. The production of real estate output depends essentially on the accumulation of capital. This is so because the propensity to invest depends on expectations of future profitability and on the present perceptions of market risk. If the present perception of market risk increases sharply, capital will exit more and more from the sphere of real estate production. What drives the accumulation process, therefore, is the perpetual search for more surplus value - that is the amount of the increase in the value of capital upon investment, i.e. the yield regardless of source or form.
North America’s real estate markets offer this surplus value, both in the short and long run, coupled by political security and financial stability, and thus position themselves as the destination of choice of all those who want to reap the profits of investment while, at the same time, minimizing the socio-economic risks of investing.
Europe is pitiful, these days - economically speaking, that is.
The European Union is far from the position of strength politicians only a few years ago were portraying it would be. The socialist welfarism of the recent students riots in France, Italy’s shift to the left, Britain’s Tony Blair under siege and a still comatose German ‘Panzer Economie’ – all signal that Europe is in economic decline. It certainly does not appear that Western Europe can now afford what it is politically committed to do, and certainly not so within a decade or two as it regards health care and pensions for the elderly. The hope is to turn the most populous former Eastern European countries – Poland, Bulgaria, Hungary and Romania – into large self-sustaining consumers markets, and that may one day happen – but certainly not in the foreseeable future. The economies of the West and the East are too far apart to be integrated. Even Germany has considerable problems assimilating the former East Germany, and this notwithstanding all the billions of Euros that the ‘Deutsche Gesellschaft’ has poured into the East already. Not to mention the Union’s energy dependence on the flimsies of the Ukraine and Russia, an entirely separate matter all in and by itself.
The recent French riots in particular underscore the increasingly untenable system of job security at the expense of entrepreneurship, and that the grounds are set for a collision between expectations and economic reality. And whereas certain niches can certainly be found for international real estate investors, especially in countries like Bulgaria, the implied economic risks that must be assumed far outweigh, for the time being, the profits that can be reaped.
In China the economic achievements are huge, but so are the problems. President Clinton, in one of his last speeches, said that 200 million people in China were lifted from absolute poverty from 1978 to about 1999. That's equivalent to about two-thirds of the entire population of the United States in twenty years. But, at the same time, the factors of economic instability are many and worry the leadership. These factors include a financial and banking system that is basically bankrupt, with bad loans-out greater than the real net reserves of the entire banking system.
But, perhaps even more importantly, there is a great imbalance of wealth between the thirty-five percent of the population that lives in the cities and the sixty-five percent inhabiting the countryside. If one is lucky enough to be born in a city - and registered as a city dweller - it is easier to get into university. In the city, one can work at all the large companies and government agencies. Conversely, those who are registered as rural persons are subjected to very severe restrictions on where they can live and work. And this is actually the biggest human rights problem in China today. There is a majority of this population of 1.3 billion people that are, by law, second-class citizens. And unless the Chinese leadership comes to terms with this reality, this social injustice is a ticking time-bomb that one day will explode, also in the faces of those foreign venturers that invest in China.
Since capitalism is, by definition, a system in which the means of production are predominantly privately owned and operated for profit, and which operates in the absence of government coercion or constraint on the production, distribution, or consumption of goods and services, the whole of Islam, most of Africa and all South America – with the notable exception of Chile – are entirely cut out. This includes wealthy countries like the United Arab Emirates and especially Dubai, where the real estate boom of recent years has been plagued by slavery, stories of construction workers not being paid for months on end, and excessive working hours all of which have led to the rioting early in the year, as upset workers damaged cars, buildings, and construction equipment. Again, investment niches can be found anywhere, but risk far outweighs profitability.
Everything taken into account, therefore, real estate markets in the United States and Canada are still the two safest havens for secure investments. The production of real estate output depends essentially on the accumulation of capital. This is so because the propensity to invest depends on expectations of future profitability and on the present perceptions of market risk. If the present perception of market risk increases sharply, capital will exit more and more from the sphere of real estate production. What drives the accumulation process, therefore, is the perpetual search for more surplus value - that is the amount of the increase in the value of capital upon investment, i.e. the yield regardless of source or form.
North America’s real estate markets offer this surplus value, both in the short and long run, coupled by political security and financial stability, and thus position themselves as the destination of choice of all those who want to reap the profits of investment while, at the same time, minimizing the socio-economic risks of investing.
Are We Going To See Double-Digit Interest Rates In Real Estate Again?
Luigi Frascati
No, we are not going to see double-digit interest rates in Real Estate any time soon. The economic and political environments today are far different from those of the early ‘80’s.
Two clients have posited this question to me, comparing the economic ravages resulting from the political situation of the 70’s and early ‘80’s with what arguably could happen today. Essentially their line of thought was that there are today so many affinities with back then, that a recurrence of the double-digit phenomenon is more than likely. Like in the ‘80’s, they contended, a new Chairman has taken control of the Federal Reserve System. The United States is involved once again in a military conflict that is dragging down the economy. America’s external debt is staggering. Employment, although not weak, is losing steam to outsourcing and there is today once again looming on the horizon the threat of stagflation caused by ever-increasing energy prices, further exacerbated by a possible military confrontation with Iran.
When Paul Volcker assumed the reins of the Fed in 1979, he indeed inherited an economy left pretty much in shambles largely by the policies, both domestic and foreign, of the Nixon Administration, the effects of which had reverberated heavily also throughout the Carter years. America had freshly ended the Vietnam nightmare, and had gone through a political oil embargo largely wanted by the Saudis and their Arab allies in retaliation for America’s open political, military and economic support for Israel, and for offering asylum to the deposed Shah of Iran, Mohammed Reza Pahlavi. The Cold War was the reality of the time, with Western Europe coming more and more under political pressure from the then USSR. And finally, a resurgent Ayatollah Ruhollah Khomeini (1900 – 1989) was set to transform Iran, a staunch US ally under the Shah, into an Islamic populist, theocratic and definitely anti-American republic - thus establishing the path of the Ayatollah’s policy towards the ‘Great Satan’, which ultimately pushed the United States to side with Saddam Hussein in the Iran-Iraqi conflict.
It was within this historic context, therefore, that Paul Volcker took command of the Fed and ended the stagflation that had plagued the United States by drastically limiting the growth of the money supply, abandoning the previous policy of targeting interest rates. As a direct and proximate consequence of a reduced pool of money, inflation peaked at 13.5% in 1981, before being successfully lowered to 3.2% by 1983, and has remained low ever since. The transition from Keynes-based policy to monetarist-based policy was a painful one, however, as it precipitated the significant recession the US economy experienced in the early 1980s, which included the highest unemployment levels since the Great Depression, as well as the highest interest rates ever. The unprecedented growth that the US economy subsequently has enjoyed over the next 25 years, however, has more than validated Volker's policies, which were continued by his successor at the Fed, Alan Greenspan.
By contrast, the world does not look nearly as ominous today.
With the advent of Reaganomics, the school of economics embracing the theory of supply-side took over. Supply-side economics is a school of macroeconomic thought, which emphasizes the importance of low taxation and of business incentives in encouraging economic growth, in the belief that businesses and individuals will use their improved terms of trade to create new businesses and expand old businesses, which in turn will increase productivity, employment, and general well-being. Specifically, supply-side economics emphasizes the importance of encouraging increases in supply and, thus, production of outputs, which result in lower prices in the marketplace and increased demand for products, thus spurring competition, increasing employment levels and generating the overall expansion of the economy.
The focus has somewhat changed after the end of Reaganomics and the advent of consumerism and globalization. The economic sensibility, sensitivity and reaction of consumers to the manipulation of interest rates has brought forth the consideration that Central banks have no handle on productivity and real economic growth, and that economy-wide recessions and booms reflect fluctuations in aggregate demand rather than in the economy's productive capacity. Thus, monetary policy is no longer viewed as a supply-side instrument but, rather, as a demand-side macroeconomics tool, at least so goes the rationale of the US Federal Reserve System and of the European Central Bank.
The impact of Reaganomics was magnified by one single event in the world’s political arena: the Soviet invasion of Afghanistan and the subsequent collapse of the Soviet Union. In December, 1979 Leonid Brehznev (1906 – 1982), the General Secretary of the Communist Party, had dispatched the 40th Army in support of the fledgling Marxist government of Hafizullah Amin. Although victorious at first, the 40th Army was dragged down in a 10-year all out war not only against the anti-Soviet Mujahideen but, factually, against the whole of Islam, which had declared a holy Jihad to combat the ‘atheist infidels’. The Mujahideen and their allies were openly and generously aided economically and militarily by the Reagan Administration (an event that the Pentagon has come to regret, in later years), and this fact was the single largest catalyst to America’s economic recovery as well as expansion, through appeasement with most of the Islamic world, which brought lower oil prices and that has lasted until today (with a few exceptions ... but, then, nobody is perfect).
It is impossible to talk about stagflation today. Stagflation is a term used to describe a period characteristic of high inflation combined with economic stagnation, high unemployment, and economic recession. It can hardly be said that there is economic stagnation and high inflation nowadays or, for that matter, widespread unemployment. In fact, both the United States and Canada are forecasting expanding economies for 2006 with an anticipated GDP of 2 percent and 2.5 percent respectively. Additionally, the political landscape today is totally different. In the era of globalization, gone are the times of major political confrontations and of more or less covert hostilities. The major economic powerhouses – North America, The Asian Tigers and the Euro Zone - have everything to lose and nothing to gain by antagonizing each others, as economic and financial interests are so intrinsically intertwined worldwide.
It is true, in my view, that in the forthcoming years the increase in energy costs, declines in both profitability and output of US major domestic industrial producers, such as the automobile and high-tech sectors, the increased reliance on imports manufactured by holders of US debt (Japan, China and India), the estimated shortfall of pension funds for an aging population, the uncertainty of value in stockmarkets and a progressive affordability crisis in real estate – all suggest that North America is entering a period of economic uncertainty which, however, greatly differs from the precepts of stagflation. Additionally, monetarist policies executed by Central Banks are now tried and tested, unlike the time when Paul Volcker took over, and there is no need for draconian measures to be enacted on the part of the Fed. In fact Ben Bernanke, the new Fed’s boss, has publicly made statements arguing in favor of a 2 percent inflation target over two years.
So, in conclusion, are we going to see double-digit interest rates any time soon? I strongly doubt it. We will see steady interest rates increases, somewhat limited in scope and spread out at intervals apart, so as to allow the economy to adjust.
No, we are not going to see double-digit interest rates in Real Estate any time soon. The economic and political environments today are far different from those of the early ‘80’s.
Two clients have posited this question to me, comparing the economic ravages resulting from the political situation of the 70’s and early ‘80’s with what arguably could happen today. Essentially their line of thought was that there are today so many affinities with back then, that a recurrence of the double-digit phenomenon is more than likely. Like in the ‘80’s, they contended, a new Chairman has taken control of the Federal Reserve System. The United States is involved once again in a military conflict that is dragging down the economy. America’s external debt is staggering. Employment, although not weak, is losing steam to outsourcing and there is today once again looming on the horizon the threat of stagflation caused by ever-increasing energy prices, further exacerbated by a possible military confrontation with Iran.
When Paul Volcker assumed the reins of the Fed in 1979, he indeed inherited an economy left pretty much in shambles largely by the policies, both domestic and foreign, of the Nixon Administration, the effects of which had reverberated heavily also throughout the Carter years. America had freshly ended the Vietnam nightmare, and had gone through a political oil embargo largely wanted by the Saudis and their Arab allies in retaliation for America’s open political, military and economic support for Israel, and for offering asylum to the deposed Shah of Iran, Mohammed Reza Pahlavi. The Cold War was the reality of the time, with Western Europe coming more and more under political pressure from the then USSR. And finally, a resurgent Ayatollah Ruhollah Khomeini (1900 – 1989) was set to transform Iran, a staunch US ally under the Shah, into an Islamic populist, theocratic and definitely anti-American republic - thus establishing the path of the Ayatollah’s policy towards the ‘Great Satan’, which ultimately pushed the United States to side with Saddam Hussein in the Iran-Iraqi conflict.
It was within this historic context, therefore, that Paul Volcker took command of the Fed and ended the stagflation that had plagued the United States by drastically limiting the growth of the money supply, abandoning the previous policy of targeting interest rates. As a direct and proximate consequence of a reduced pool of money, inflation peaked at 13.5% in 1981, before being successfully lowered to 3.2% by 1983, and has remained low ever since. The transition from Keynes-based policy to monetarist-based policy was a painful one, however, as it precipitated the significant recession the US economy experienced in the early 1980s, which included the highest unemployment levels since the Great Depression, as well as the highest interest rates ever. The unprecedented growth that the US economy subsequently has enjoyed over the next 25 years, however, has more than validated Volker's policies, which were continued by his successor at the Fed, Alan Greenspan.
By contrast, the world does not look nearly as ominous today.
With the advent of Reaganomics, the school of economics embracing the theory of supply-side took over. Supply-side economics is a school of macroeconomic thought, which emphasizes the importance of low taxation and of business incentives in encouraging economic growth, in the belief that businesses and individuals will use their improved terms of trade to create new businesses and expand old businesses, which in turn will increase productivity, employment, and general well-being. Specifically, supply-side economics emphasizes the importance of encouraging increases in supply and, thus, production of outputs, which result in lower prices in the marketplace and increased demand for products, thus spurring competition, increasing employment levels and generating the overall expansion of the economy.
The focus has somewhat changed after the end of Reaganomics and the advent of consumerism and globalization. The economic sensibility, sensitivity and reaction of consumers to the manipulation of interest rates has brought forth the consideration that Central banks have no handle on productivity and real economic growth, and that economy-wide recessions and booms reflect fluctuations in aggregate demand rather than in the economy's productive capacity. Thus, monetary policy is no longer viewed as a supply-side instrument but, rather, as a demand-side macroeconomics tool, at least so goes the rationale of the US Federal Reserve System and of the European Central Bank.
The impact of Reaganomics was magnified by one single event in the world’s political arena: the Soviet invasion of Afghanistan and the subsequent collapse of the Soviet Union. In December, 1979 Leonid Brehznev (1906 – 1982), the General Secretary of the Communist Party, had dispatched the 40th Army in support of the fledgling Marxist government of Hafizullah Amin. Although victorious at first, the 40th Army was dragged down in a 10-year all out war not only against the anti-Soviet Mujahideen but, factually, against the whole of Islam, which had declared a holy Jihad to combat the ‘atheist infidels’. The Mujahideen and their allies were openly and generously aided economically and militarily by the Reagan Administration (an event that the Pentagon has come to regret, in later years), and this fact was the single largest catalyst to America’s economic recovery as well as expansion, through appeasement with most of the Islamic world, which brought lower oil prices and that has lasted until today (with a few exceptions ... but, then, nobody is perfect).
It is impossible to talk about stagflation today. Stagflation is a term used to describe a period characteristic of high inflation combined with economic stagnation, high unemployment, and economic recession. It can hardly be said that there is economic stagnation and high inflation nowadays or, for that matter, widespread unemployment. In fact, both the United States and Canada are forecasting expanding economies for 2006 with an anticipated GDP of 2 percent and 2.5 percent respectively. Additionally, the political landscape today is totally different. In the era of globalization, gone are the times of major political confrontations and of more or less covert hostilities. The major economic powerhouses – North America, The Asian Tigers and the Euro Zone - have everything to lose and nothing to gain by antagonizing each others, as economic and financial interests are so intrinsically intertwined worldwide.
It is true, in my view, that in the forthcoming years the increase in energy costs, declines in both profitability and output of US major domestic industrial producers, such as the automobile and high-tech sectors, the increased reliance on imports manufactured by holders of US debt (Japan, China and India), the estimated shortfall of pension funds for an aging population, the uncertainty of value in stockmarkets and a progressive affordability crisis in real estate – all suggest that North America is entering a period of economic uncertainty which, however, greatly differs from the precepts of stagflation. Additionally, monetarist policies executed by Central Banks are now tried and tested, unlike the time when Paul Volcker took over, and there is no need for draconian measures to be enacted on the part of the Fed. In fact Ben Bernanke, the new Fed’s boss, has publicly made statements arguing in favor of a 2 percent inflation target over two years.
So, in conclusion, are we going to see double-digit interest rates any time soon? I strongly doubt it. We will see steady interest rates increases, somewhat limited in scope and spread out at intervals apart, so as to allow the economy to adjust.
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