Will The Property Attract Genuine Interest In The First 30 Days On The Market?

Fact: Over priced real estate listings turn many buyers off.

When listing a property for sale, the first 30 days are the most critical. The first 30 days is the time when most buyers (and real estate agents) will see the real estate listings.

The first month on the market is the key. BUT... when a property is over priced, or stays on the market too long, interest wanes. Potential buyers (and real estate agents) will be suspicious, ignore the listing, or they will simply move on to another property that is more realistically priced. So, that's why the initial 30 day period is critical when listing a property for sale.

Some sellers, however, believe that if someone is really interested they will counter-offer. Yes, that may or may not happen. But, there is the risk that well-qualified buyers may just walk away, never to return.

Why A Property May Vary In Price

A number of factors can affect the selling price of a home and sometimes the reason why one home sells for a higher than another is not obvious at first glance.

For example; two properties may look the same from the outside but be immeasurably different inside. One may still have 70's, 80's or 90's decor whilst the home next door may have undergone major updating and interior improvements.

Another 5 Buying A Home Tips

Buying a home is a major investment, so take care to thoroughly research the purchase before signing any legally binding contract to purchase the property. Further to our series of home help tips, here are another five home buying tips to consider:

1. Contact local real estate agents or brokers to research recent sale values in the area. Find out the trends such as what type of people are buying in the area, how long the average property stays on the market before being sold etc.

2. Visit the area to check out the proximity of schools, transport, shopping, employment etc. These can have an effect on your lifestyle, both now and in the future (ie. children).

3. When inspecting a home don't be put off by bad weather. It's a good time to check the potential property for leaks and poor drainage.

4. Carry out proper due diligence on the property you are buying. Arrange a professional home inspection and obtain building and pest reports on the property.

5. Before you buy, get in touch with your potential neighbors, to ascertain suitability and see if there are underlying disputes or problems.

Home Buying Tip - The Sales Contract

When buying or selling a property always seek professional advice before signing any contract. You need to be sure that you can finance the purchase, that the property is a good buy, and that the clauses in the contract meet your individual needs.

Organize And Prioritize Your Time When Selling Your Home

Regardless of whether you are selling through a realty agent or selling your own home yourself (FSBO), it pays to be organized.

You will need to give up some of your spare time in order to get your house ready to sell and to show prospective buyers through it.

That’s why it’s important to gain control of your time and use it wisely. It is easy for days to “just slip away” without having made much progress in selling your house. Being busy and being productive are two different things.

One way to boost efficiency is to prioritize tasks. Draw four squares on a piece of paper. Mark the squares as follows:

• IMPORTANT AND URGENT
• IMPORTANT BUT NOT URGENT
• UNIMPORTANT BUT URGENT
• UNIMPORTANT AND NOT URGENT
  

Now put each of your daily tasks into one of the four boxes.

The point I’m making is that it is important to prioritize your tasks and know the value of everything you do. Why I say this is because most of us spend too much of our time working in the wrong squares.

We do tasks that are IMPORTANT AND URGENT because we have to. That’s good!!!
We do tasks that are UNIMPORTANT BUT URGENT, because they demand our attention. Things like personal phone calls etc.

We do things that are UNIMPORTANT AND NOT URGENT because we want to... they are a good way to pass the day and can be fun. Again phone calls can be in this category, so can reading irrelevant mail, clowning around, trivia, gossip, escape activities like TV etc.

Most of us don’t spend enough time doing things that are

IMPORTANT BUT NOT URGENT.

Eg. Prevention, forward planning, relationship building, preparation, goal setting, devising marketing strategies, cash flow budgeting, setting values and standards, introducing efficient systems etc.

We often put IMPORTANT tasks off because they are NOT URGENT or get overshadowed by the day-to-day activities in our lives.

Selling your house is IMPORTANT and URGENT. You are either going to do it or you are not! So spending more time on tasks that are IMPORTANT and either URGENT or NOT URGENT will prove to be productive.

Home Buying Tip - Check For Moisture Build-up

At the same time as checking the foundations, look for signs of moisture build-up or drainage problems, especially in basement areas. The experts have special equipment to test for moisture content in walls and other areas. Remember, fixing these kinds of problems can be costly.

Home Buying Tip - Check The Foundations Of The House

When putting in an offer to buy a house it pays to arrange a thorough house inspection. One area that is often overlooked is the foundations of the house.

Are the foundations sinking? Although most foundation problems can usually be rectified, the repair/replacement costs may out-weigh the benefits.

It is better to be safe than sorry, so a proper professional house inspection is usually advisable before buying a house.

Home Buying Tip - Check The Roofing

Before buying a home arrange a thorough home inspection and don't forget to check out the roofing materials and condition.

Is the roofing in good order, or does it need repairing, or replacing? Has the roof been carefully maintained or are there water stains on the ceilings?

Does the roof complement the style of the home? Does it add to the home's visual appeal and its resale value?

It may come as a surprise, but the color of the roof should be a consideration when buying a house. Apart from the general look of the roof and how it matches with the rest of building, roof color can affect energy efficiency in a home. In colder climates, a dark colored roof can be a good option because it absorbs more heat. In temperate climates, a middle-range shade might be a better option. A light-colored roof tends to reflect the heat, so could provide energy savings in regions where air-conditioning is used throughout the year.

What To Ask A Realty Agent

Selecting the best realty agent to list your home for sale and asking the right questions are key components to a successful sale.

Interview two or three realty agents before deciding which one to go with. Ask each realty agent several questions and listen carefully to the answers.

One such question is whether or not the agent believes the property should be sold "as is." The reason is that some realty agents are of the opinion that "as is" sales greatly hurt marketability whereas other agents encourage "as is" sales to discourage after-sale litigation.

Most US states now require home sellers to fill out a disclosure statement listing any known defects that materially affect the market value of a property. This procedure usually avoids after-sale lawsuits if the buyer was informed of all defects.

Many home sellers choose to sell "as is", with the buyer doing the necessary repairs or updating. Known defect should still be listed.

Home Buying Tip - Home Inspections

Is the home you are considering buying structurally sound? Unless you are a home buyer with lots of money to risk, a thorough home inspection is wise investment when purchasing a property.

A Home Inspector will focus especially on the structure, construction, and mechanical systems of the house. He or she will make you aware of any repairs that may be needed on the property.

The most expensive problems are not alway obvious to the untrained eye. Call in the experts and arrange a professional home inspection.

Home Buying Tip - How Individual Is Your Home?

Is the home you are looking at buying unusual and does it appeal to a limited market? A lot of homeowners like put their own personality into a house, which is to be commended. However, if the style is too "uniquely individual" it may appeal to only a limited number of potential home buyers. This will usually minimize, rather than maximize, the resale value of the property.

Home Buying Tip - What Facilities Are Nearby?

When buying a home consider access to community facilities, shopping malls, public transport, schools etc.

Although the quality of a school district might not matter to you now, it might in the future, or it might matter to another buyer.

At some stage in the future you may want to sell the home you are currently buying, so think about facilities that another buyer might be wanting within easy access.

Buying/Selling A Property Tip - What Might Affect The Property Value?

Regardless of whether you are buying or selling, look for other things that might affect the value of the property and consider what you might be able to do about it.

If you are buying; look at what might reduce the price you pay, the resale value, or amount of work or money required to rectify the problem (if if can be fixed). If the problem can't be fixed, are you prepared to accept this situation.

If you are a seller; think about things that might make the property more difficult to sell, or that might restrict the market you are appealing to, or that might limit the price you get for the property. What can you do about these things?

Here are some examples of things that could affect the value or appeal of a property:

• Are there high tension wires or cell phone sites nearby?
• Is the property affected by high trees that block the light or winter sun?
• Are there noisy or smelly factories nearby?

When Will Your House Offer Be Accepted By The Home Seller?

Usually there's a clause in the offer requiring the home owner to accept or reject the contract within a specified time frame. The period for acceptance is often 24, 48 or 72 hours.

If there's a time period stated in your offer, wait until the time has elapsed for a phone call or a counter offer. If you don't hear anything then call the realtor and ask casually if he/she has heard anything on your offer.

Remember that, unless you have a contract with the realtor, he or she will normally are working for the seller, not you the buyer.

The main thing is to get an answer without sounding too desperate to know. Afterall, you do need to know, especially if you are looking at other properties to buy.

Home Buying Tip - Location To Roading

If the property you are buying is on a busy or noisy street it may affect the property value. Is it a quiet street or is there a lot of traffic? Does the traffic go in just one direction or two? How easy is it top access the driveway from each direction and how easy is it to exit the driveway to each direction? These are just some of the questions to answer when buying a home.

A Revealing Question To Ask A Real Estate Agent

Before deciding which real estate agent would do the best job marketing your home, it pays to undertake an interview process. It is important to select the right agent who will not only have the best chance at getting you the desired result, but also one that is a pleasure to work with.

In the interview process you need to make sure that the real agent is giving you honest answers and not just saying what he or she thinks you want to hear.

Here is a good question that stumps a few agents and could reveal an unexpected answer.

Here is the question: Apart from yourself, who is the best real estate agent in this area?

Some agents will evasively say, "I really don't have any competition." But the best agents will honestly answer your question.

You may then want to ask the agent - why he or she gave that particular answer?

Also, don't hesitate to ask the agent you're interviewing, what he or she thinks of the other realtors on your interview list.

Remember, it is not about tricking the agent, it is about getting truthful and helpful answers.

An Agent Starting Work With A Brokerage

If you are starting work as a real estate agent then try and work with the best broker you can. Find a broker you trust that's got a mentoring and training approach that they actually use. Interview the veteran agents (and new agents) in that organization first to be sure you've chosen a good brokerage.Many brokers let new agents do a few deals and lots of "donkey work." Doing the routine stuff is a good way to learn, but the key is not to get burnt out.

Home Buying Tip - Open House Inspections

When visiting an open house don't just look at the house in isolation.

Are other homes in the area presentable and are they of the standard which you want to live with?

Do neighbors take pride in their properties?

What are the neighbors like?

You might even consider introducing yourself to neighbors and ask them about the neighborhood.

How Home Buyers Have Choices Of Real Estate Representation.

A real estate office usually takes property listings and represents the seller. However, a lot of real estate agents are also happy to represent a buyer of the same property. They become what's known as a "dual agent".

The problem with a dual agent situation is the perception that neither party is truly "represented" due to the conflict of interest. Despite reassurance of indepenence, there is always that element of doubt as to whose interests the dual agent is really representing.

Some real estate agents have a policy not to work as dual agents and will only represent one client in any real estate transaction. Personally, I'd rather have a real estate agent who is representing me and me alone.

Prepare A “TO DO” List If Selling Your House FSBO

Many home sellers have high stress levels, or fail to succeed to sell their own home FSBO because they won’t, or cannot, sweat the details. It is important to see the big picture, but it is equally important to get details right.

Any expert in time management will tell you to prioritize your tasks. The best way to achieve this is to detail everything you have to do to sell your house FSBO. Write tasks down on a “TO DO” list and then prioritize them. Do the most important tasks first and the least important last.

Real Estate Selling Tip - Accept That Not Everyone Will Like Your House

When you use a real estate agent to market your house for sale, he or she usually hears all the comments (good and bad) about the property. The realtor will usually provide you with feedback from open house days and show throughs. When providing feedback, the realtor might "tone-down" some of the comments, so that you don't get offended by what people say.

However, when you are selling your property yourself (FSBO) , you’ll probably hear these comments first hand. Although, realize that sometimes people will have a different attitude when talking directly with the property owner. Either they’ll be more polite by not telling you what they really think about your house, or they’ll be very direct and attempt to knock the price down by criticizing the property at every opportunity.

Anyway, be prepared for people to pick holes in you home. It may not always be pleasant as to some extent they are criticizing your personality. You probably chose the décor... you planted the trees... you designed the kitchen layout etc. So when someone says “it sucks!” …that’s not very nice to hear.

Accept that you are never going to please everyone.

TO SELL YOUR HOUSE -IT TAKES ONLY ONE QUALIFIED BUYER!

By using a systematic marketing plan you should have a steady flow of potential buyers that make the negative observations of any single person look irrelevant.

How Landlords Can Overcome High Vacancy Rates

If you had a property with high vacancy rates, then the first thing is to figure out why. You could start by talking with neighboring tenants, property owners and business owners to see what you can find out.

These are the sort of things you will want to clarify:

• Is your vacancy rate in line with other properties in the neighborhood?
• Is the local market or economy going through a bad patch?
• Is your rent too high when compared to other properties in the area?
• Is there something happening in the neighborhood that is driving tenants away (ie: gang activity, businesses going under, etc.)?
• Are there better properties available for similar or lower rentals?
• Is there something wrong with the property such as the wrong number of bedrooms, bad location, poor facilities, poor condition, too much maintenance, poor garaging etc.
• Is your advertising effective?
• Have you tried advertising on the internet?
• What kind of concessions (move-in incentives) is the competition offering?
• Should you offer similar concessions or incentives? Possibilities might include a "rent free" period of a few weeks or months, a complimentry gift basket or shopping voucher, a temporary rent reduction?
• Keep your current tenants happy (maintenance, return their calls, etc)...they will give you referrals. Should you include the utilities in the rent?

Íf you are going to solve a problem of high vacancies then the answers to those question will be a good starting point?

Do A SWOT Analysis Before Buying Or Selling A House

After you have determined your own personal strengths, do the same thing for the house or property you are about to buy or sell. Better still, do a SWOT analysis. Here is an example of what I mean:

Grab a sheet of paper and using a pen divide it into four. Head the top left rectangle "S" for Strengths, the top right rectangle "W" for weaknesses, the bottom left "O" for Opportunities and the bottom right rectangle "T" for Threats. SWOT stands for Strengths, Weaknesses, Opportunities and Threats.

STRENGTHS - Here are some examples of strengths you could include:

• Close to city location (3 minutes drive).
• 2 car under-cover drive-on parking.
• Established trees and srubs in landscaped garden.
• Private.
• Good indoor/outdoor flow with lagre deck.
• Generous open-plan living area.
• 3 large bedrooms plus study and sleepout.
• Newly renovated kitchen.
• Schools, shops, bus stops etc close by.
• Large fully-fenced section that could be sub-divided.
• etc. etc.

Now write down what you could do to maintain or capitalize on these strengths?

WEAKNESSES - Here are some examples of weaknesses you could include:

• Exterior paintwork on house front wall looks tired.
• Busy road assessible to south flowing traffic only.
• Driveway has holes.
• No garage – undercover car port only.
• Trees over-grown and block sun.
• Sleepout below standard of rest of house interior.
• Blocked view.
• Neighbours have large rusty wrecked campervan on front lawn (unsightly).
• Guttering and spouting leaks.
• etc. etc.

Now write down what you could do to overcome these weaknesses?

OPPORTUNITIES - Here are some examples of opportunities you could include:

• Paint front wall of house.
• Fix pot holes in driveway.
• Fix spouting and guttering on house.
• Paint and tidy-up interior of sleep-out.
• Trim trees to let in the sun and improve view.
• Talk nicely to neighbours – maybe offer to move unsightly campervan.
• Talk with developer about potential to subdivide.
• etc. etc.

Now write down what you could do to take advantage of these opportunities?

THREATS - Here are some examples of threats you could include:

• 5 similar houses in street just put on market.
• Rumors of road speed limit being increased – would make access to driveway more difficult.
• Termites discovered in east wall.
• etc. etc.

Now write down what you could do to overcome or limit the effect of these threats?

For more helpful real estate buying and selling tips and ideas have a look at this real estate resource.

Knowing Your Strengths And Weaknesses When Selling Your Own Home Yourself

If you have decided to sell your own home FSBO then your role will be pivotal in the whole sales process. You will be chief organizer, sales person, negotiator etc. So, start by making a list of your personal strengths and weakness. You’ll then be better prepared to capitalize on your strengths and overcome your weaknesses. You might be quite surprised at what you come up with.

You might also become more aware of the areas where you may need help from others especially professionals like an accountant and real estate solicitor.

You could end up concluding that you might be better off using the services of a real estate agent. We are all different and some people are better suited to selling their own home.

The main thing is to think through the FSBO process before you decide either way.

Develop A Systematic Plan If Selling Your Own Home FSBO

Selling your own home FSBO is not like selling some goods at a flea market or holding a garage sale. Your home is more important than that, so the FSBO sale deserves far more attention to planning for the right outcome. Unlike a garage sale, your house will have a higher price ticket and it’s not going to sell in a few hours.

The key to selling FSBO is to be organized and to have a systematic plan for reaching your goal. One of the advantages of having a plan is that it helps you keep your eye on the ball.

It is easy to get distracted by what might be happening on the sidelines. Don’t be put off by a neighbouring property suddenly coming on the market. Be aware of what they are doing and understand their strategies and tactics (if they have any). Know their strengths and their weaknesses. Know your strengths and your weaknesses. Don’t be put off your game...just run your own race.

The key to successfully selling FSBO is to have a road map. That way you’ll know you’re doing everything you possibly can to get your house sold FSBO.

So, don’t just put an ad in the newspaper and expect to sell your house... there’s more to it than that. Have a plan, because it can be your road map to help you get were you want to go.

How Busy And How Capable Is The Real Estate Agent?

Having a lot of listings is often a sign of competent real estate agent, but that doesn't necessarily mean that the agent will best represent your needs.

Many real estate agents keenly boast of the number of successful transactions they've completed, or how many buyers they are currently working with, but does the agent have the time to devote to your needs? Will you be delegated to an assistant?

Working with a successful real estate agent can be extremely beneficial as long as you get the full service treatment. If the agent is working with several buyers, or has lots of listings, make sure you're comfortable with the time he or she will allocate working for you.

If on the other hand, the agent has few listings or sales, you might want to ask some questions to find out why. If the agent is new and lacks experience, then you will need to be reassured that he or she can tap into the resources and experience of others in the office.

Above all, it is really important to be comfortable with the real estate agent you are working with, and be confident of his or her ability to get the job done successfully. If you explain your requirements carefully, most real estate agents will do what it takes to achieve a satisfactory conclusion.

Home Buying Tip - What Is Real Estate Worth?

Get a feel for how much properties are worth by checking recent real estate sales statistics. Also search through MLS listings, real estate newspaper ads, real estate internet sites, drive around your preferred area and look for "FOR SALE" and "OPEN HOUSE" signs.

How A Real Estate Agent Can Help You Find A House

A good real estate agent will have a detailed plan and strategies to help a buyer find the right house. The real estate agent will have access to objective information about each property. He or she will also have access to professionals who can help with mortgage financing and home inspections, possibly legal matters etc. However, with that said, sometimes it is best to source your own support professionals.

Find Foreclosures And You Could Make A Fortune In Property

Having a property foreclosured on you is not a pleasant experience for anyone to go through. Unfortunately, we live in the "real world" and foreclosures happen daily. Sometimes, it can be the unfortunate result of changed circumstances and other times it should just be put down to bad financial management.

Regardless of the reasons behind the foreclosure proceedings, finding foreclosure properties to buy can be a profitable and common ways to make a fortune in real estate. Like it or not, finding foreclosures is a way to profit from someone's misfortune and it is happening a lot.

Foreclosure (Delinquent Mortgage) is the legal process by which an owner's right to a property is terminated, usually when the borrower gets behind in payments. If the borrower fails to bring the payments up to date within a specified period, the lender (mortgagee) may begin foreclosure proceedings. A property foreclosure typically involves a forced sale of the property at public auction, with the proceeds being applied to the mortgage debt.

If you want to invest in real estate then buying a foreclosed property can be a good place to start, but you need to follow some basic rules to avoid getting your fingers burnt too. The first step is to find foreclosures and then do some homework on the foreclosed property and research the local property market too. Research can make or break the fortune to be made on a foreclosed property. The important thing is to know the true market value of the foreclosed property and NOT over bidding on the foreclosed property.

Find foreclosures and then know the value and fix up costs of the foreclosed property under the hammer and don't over bid.

Home Inspector's Report: What It Could Include - Part 7

Kitchens and Bathrooms

These two well used areas of the house will come under close inspection noting the condition and signs of wear and tear. The home inspection report will likely mention special features and highlight any problems like staining and rot under the counter-tops, caulking in the tub or shower area, leaking or faulty faucets, poor water pressure and cracks in floors, walls or fixtures.

Home Inspector's Report: What It Could Include - Part 6

Home Inspection Reports can vary in quality (thoroughness) and what is included. Although the home inspector will have a list of guidelines to follow, the report will only be as good as the person writing it. So, if the home inspector fails to notice problems they won't show on the report.

1. Doors and Windows

The home inspector should look for problems with paint or caulking, and rotted wood components (leaks). The home inspector will be able to tell how old they are and have a guess at whether they are the originals instaled when the house was built. The home inspector might randomly check that the windows and doors work.

2. Floors

The report will include details of the flooring. It may mention: the general condition, signs of uneven levels, water staining, or other damage like cracked ceramics.

3. Walls and Ceiling

The home inspector will look to see if the walls are level, check for any drywall seams or nails showing, look for cracks or loose plaster, stains, physical damage or signs of earlier repairs. The ceilings will be viewed for signs of leaks and cracks in the plaster.

The exterior walls will be checked too. The home inspector will most likely look for: bowed or leaning walls, missing mortar, loose, missing or rotten siding, deteriorating paintwork and flaking or cracking brickwork.

4. Foundations

They are integral to and building so the home inspector will check for bowing, bulging or other irregularities like cracks, flaking or damaged masonry or soft mortar. The report would usually point out any water markings and efflorescence (a white crystalline, powdery substance on the surface of concrete, brick clay tile etc).

Home Inspector's Report: What It Could Include - Part 5

A home inspection report will usually be very thorough and highlight features of the property as well as pointing out problems that need fixing either immediately or in the future. The home inspection may report on:

1. Soffit's and Fascia.

The home inspection report will usually state whether the soffit and fascia are wood, aluminum or plastic. The report may reveal details of any loose or missing sections, paint problems, and if there are any visible signs of rot.

2. Porches and Decking

The home inspector will usually thoroughly inspect porches and decks (including the underside) for signs of rotted wood, wood-earth contact, paint problems, cracking or flaking masonry, and report on any separation from the house.

Why You Need To Arrange For A home Inspector's Report?

When buying a property it is normal to arrange a home inspection. A home inspector's report can identify problems like: cracked walls, leaky walls or roofs, breach of firewalls, loose toilets, foundation problems and insect infestations. Many people negotiate repairs as part of the purchase and ask for a "walk through" before finalizing the paperwork on the real estate contract.

Home Inspector's Report: What It Could Include - Part 4

When selling a home it pays to fix minor problems before putting the property on the market. Major problems also need careful consideration and you will need to determine is involved in rectifying the problem(s). What will the costs be, the disruption factor and whether the problem(s) will affect the sale or the sale price.

It is usual for a property to undergo an inspection prior to sale, so be aware that problems exposed in a home inspector's report could potentially delay the sale, lose you the sale, or affect your final selling price or terms of sale.

Here are another two items that might appear on a home inspector's report:

1. Loose Toilets.

Many toilet bowls rest on a wax ring that can deteriorate over a period of time. A faulty wax ring can cause the bowl to move. Although it may not be that noticable, it could show up on a home inspector's report.

Here is how you can check for a faulty wax ring. This might sound a bit strange, but stand facing the toilet bowl with one leg on each sideof the toilet bowl. Squat down a little, and using the inside of your knees, grab the toilet bowl. Rock from side to side, and if the toilet bowl moves, it needs a new wax ring.

2. Dishwasher Drains.

The dishwasher drain may be clogged and need to be cleaned. Locate the flexible hose that drains the dishwasher into the garbage disposal and then out the sink drain. When this become clogged, water will come out of the overflow vent on top of the sink. YUK!

Some of these things are easily repaired and it is usually best to fix minor problems rather than have them show up on a home inspector's report and potentially delay, or lose you the sale, or affect the final selling price for your property.

Does Your Home Inspector Hold Liability Insurance?

If you are about to hire the services of a home inspector, ask about his or her qualifications and whether he or she holds Liability insurance. By this I mean - does the home inspector carry Professional Liability Insurance (Errors and Omissions Insurance)? Make sure you ask for a copy of his or her liability insurance policy. If you ever need to collect on a legal judgment, the home inspector's insurance policy could be able to pay on your claim. A home inspector without insurance my not be able to pay your claim.

A Home Inspector Report May Show The Need For Chimney Repairs

A home inspector will normally thoroughly check a property for faults or urgently needed repairs.

If the house has a fireplace and chimney then this will probably be mentioned in the home inspection report. The report might highlight the need for repairs if the masonry cap is cracked or broken, or if any bricks or mortar is flaking or missing, or if the chimney is showing any signs of leaning or even collapsing.

Getting A Home Inspector's Report - Part 3

When selling a home it pays to fix minor problems before putting the property on the market. Major problems also need careful consideration and you will need to determine is involved in rectifying the problem(s). What will the costs be, the disruption factor and whether the problem(s) will affect the sale or the sale price.

It is usual for a property to undergo an inspection prior to sale, so be aware that problems exposed in a home inspector's report could potentially delay the sale, lose you the sale, or affect your final selling price or terms of sale.

Here are three items that might appear on a home inspector's report relating to fire safety:

1. Self Closing Door Connecting The Garage.

In many countries the requlations require that a door from the garage to the house needs to have self-closing hinges to preserve the integrity of the firewall. The hinge is designed to ensure that the door will shut and latch automatically. It is true that people often wedge this door open to make it easy to get in and out of the garage, but this can be a fire hazard. Fires often start in a garage, so without a self-closing door, a fire could spread quickly into the house.

2. Breach of Firewall.

The wall between a garage and the rest of the house can be critical in slowing the spread of a fire into the main house. The door from the house to the garage should be a solid core door. This is different from internal doors in the rest of the house which could be hollow doors.

The integrity of the firewall between the garage and house can be destroyed when holes are cut in the firewall to run cables, or when a hole is cut in the solid core door to allow pets to go in and out.

3. Smoke Detectors Can Save Lives.

Have adequate smoke detectors strategically positioned throughout the house. And, check the effectiveness of smoke detectors at least twice a year. The batteries don't last forever and the smoke alarms are useless if they don't work. Most smoke alarms have a testing button so check if they are working or if the battery needs changing.

A Home Inspector Report May Show The Need For Roof Repairs

Leaks may not be visable on the ceilings of rooms, explaining why a home inspector will usually check the attic for evidence of roof leaks. Common areas for leaks are areas around flashings such as skylights, chimneys, and vent pipes. A home inspector may look at these areas to see if they are properly sealed with a black mastic compound. The mastic deteriorates over time and leaks can result.

The home inspector will often look for loose flashing's, particularly at the chimney and roof-to-wall connection.

The home inspector will also probably look to see if the roof sagging between the rafters or trusses...and to see if the roof ridge (peak) is sagging in any way, or whether it is straight and level.

Any signs of deterioration of asphalt shingles would normally be noted on a home inspection report. Deterioration of the shingles could include warping, broken edges, rounded corners or slits becoming wider than would normally be expected. The report might also note if there any visible roof vents.

The home inspector might also report if the wooden roof deck appear rotten or delaminated under the last row of shingles.

What A Home Inspector's Report Might Reveal - Part 2

When selling a home it pays to fix minor problems before putting the property on the market. Major problems also need careful consideration and you will need to determine what is involved in rectifying the problem(s). What will the costs be, the disruption factor and whether the problem(s) will affect the sale or the sale price.

It is usual for a property to undergo an inspection prior to sale, so be aware that problems exposed in a home inspector's report could potentially delay the sale, lose you the sale, or affect your final selling price or terms of sale.

Here are another two items that often appear on a home inspector's report:

1. Water Heater Strapping.

When a home is sold, the water heater must be strapped to prevent it from falling down in an earthquake and starting a fire. You may need to check that the strapping technique used on your water heater complies with the current code in your area.

2. Heater Air Intake.

If your heater is in the garage, it sits on a platform and takes in air from the house through that platform. Check your local regulations, because you'll probably find that this platform must not have any holes in it. Depending on where you live in the world, the rules will probably require that the heater be sealed where it sits on the platform. This is so that no air from the garage can get into the furnace, causing a carbon monoxide hazard.

What A Home Inspector's Report Might Reveal

When selling a home it pays to fix minor problems before putting the property on the market. Major problems also need careful consideration and you will need to determine is involved in rectifying the problem(s). What will the costs be, the disruption factor and whether the problem(s) will affect the sale or the sale price.

It is usual for a property to undergo an inspection prior to sale, so at the very least, be aware of the likely problems that could be exposed in a home inspector's report. They could delay the sale, lose you the sale, or affect your final selling price or terms of sale.

Here are two items that often appear on a home inspector's report:

1. Improper Or Faulty Drainage.

Flooding, dampness, or puddles of water near a property can cause problems, especially if there is wood close to the ground. Having the ground level slope away from the property can sometimes resolve the problem of standing water.
Another good precaution is to have rain gutters that carry the water from the roof away from the house.

2. Roof Repairs.

Although leaks may not be visable on the ceilings of rooms, a home inspector will usually check the attic for evidence of roof leaks. Common areas for leaks are areas around flashings such as skylights, chimneys, and vent pipes. Although these areas have probably been sealed with a black mastic compound, the mastic deteriorates over time and leaks can result.

Home Buying Tip - Building Materials

What type of building materials do you prefer?

The three most popular wall choices are brick, wood siding and stucco. Wood window frames can add character, aluminum window frames are practical and vinyl windows have certainly become popular over the past fifteen years. Around 50% of home buyers seem to prefer brick for exterior walls over wood siding or stucco.

How A Home Inspection Can Benefit An Existing Homeowner

A home inspection can be benefical even if you are already a homeowner. There are a couple of reasons for this:

1. Firstly, if you are thinking of selling your home, it may pay to identify and fix problems before putting your home on the market. It is likely that the homebuyer will arrange his or her own inspection, but there are advantages in being proactive and eliminating potential problems or disagreements before they happen.

2. Secondly, We all get physical checkups, so why not give your home a checkup? Often problems can be identified before they get out of hand or become hugely expensive to repair. Water leaks can cause serious and costly problems, but if they are caught early can be repaired at little cost.

3. Finally, a home inspection report will give you an outline of the routine maintenance that needs to be done on the property. This way you can keep your property in good working order.

Avoid Potential Problems When Buying A Home

Look to see if there is anything unusal about the land that the house is built on. Is the section prone to flooding? Is the driveway shared with another property. Are the boundaries and fences where they should be? This is where professional advice is needed to ensure you don't buy into a problem.

Will A Home Inspection Report Identify Problems?

Yes, probably! When done professionally, a home inspection will be extremely thorough and, will most likely identify some problems (or protential problems). Most problems will be minor in nature and can be repaired after closing. Even newly constructed homes will have problems noted on an inspection report.

However, the home inspector will sometimes identify major, expensive to rectify problems. When this happens the buyer and the seller will often negotiate a solution before closing. If major problems are found, the buyer may insist on paying a lower purchase price, or possibily to change the contract terms. It really depends on the situation, the nature of the problem(s) and the terms and conditions in the contract.

That is why, before signing any contract, it pays to seek proper legal advice. You need to protect yourself in the likelihood of a home inspection report identifying problems.

What Will A Home Inspector Inspect?

When buying a home it always pays to arrange a home inspection. These people are professionals and know what to look for. They have the correct equipment and can identify problems that the average person wouldn't find.

The home inspector's report will review the condition of the home's heating system, plumbing, electrical system and central air conditioning system (temperature permitting). The home inspection report should also review the roof, attic, visible insulation, walls, ceilings, floors, windows, doors, foundation, basement, landscaping, and visible structure of the property.

Why Hire A Member Of The Home Inspection Association?

Their are several organizations that provide support for the Home Inspectors. Inspectors who belong to an association and abide by a set of guidelines generally promote professionalism in the industry.

The big question then: Is the home inspector, who is about to inspect the property you are buying, a member of a professional Home Inspection organization?

The point is that most companies affiliated with professional organizations are serious about what they do. These companies are also usually well aware of changes in the building codes and city requirements as well as new developments in the industry.

National Home Inspection organizations include:

• American Society of Home Inspectors (ASHI)
• National Association of Home Inspectors (NAHI)
• National Academy of Building Inspection Engineers (NABIE)
• California Real Estate Inspection Association (CREIA)
• National Institute of Building Inspectors (NIBI)

Searching For Homes Within Your Price Range

Choosing a price range is a critical factor when searching for a home to buy. Your real estate agent should look for homes in the range you're comfortable with, not merely what you qualify for. If you locate a home that comes in under budget - great!

If the asking price is slightly over budget, you might be able to negotiate the price down. When it's time to make the offer to buy a house, expect your real estate agent to provide a list of comparable sales in the area. This should help you in deciding the amount to offer.

The Value Of A Home Inspection In Perspective

Some of us spend hours wandering malls looking for fashion items, or think nothing of spending 40 or 50 minutes in the supermarket to buy $200 worth of groceries.

Yet, for most of us, the purchase of a home is one of the largest transactions we will ever make. That is why the purchase of a home needs to be taken seriously and be thoroughly researched.

If you are borrowing money to buy a home - you need to get the best mortgage deal to suit your needs. If you are signing a contract to purchase the home - you need to get good legal advice. If you are using the services of a real estate agent - you need to select a good one to represent you.
The same goes for arranging a home inspection. If you are going to take the purchase of a home seriously - then arranging a home inspection is usually a worthwhile investment.

A trained home inspector is equipped to evaluate the home in detail and give you a report that will allow you to make a good decision about purchasing the home. An home inspection report will describe the property in detail and (when done thorougly), will identify potential problems.

Home Buying Tip - Open Homes

Visit open houses and ask lots of questions. Doing this will give you a good feel for how properties compare on price, features, quality etc. When I bought my last home I visited over 60 open houses before I put in an offer.

Home Buying Mortgage Tip

If you need to take out a mortgage to by the property, then get pre-qualified for a loan before you start looking for a property to buy.

A mortgage lender will want the answers to questions like:

• Do you have a steady reliable source of income (usually a job)?
• Have I been employed on a regular basis for the last 2-3 years?
• Do you have a good credit history of paying your bills?
• Do you have any outstanding long-term debts, such as car payments?
• Do you have money saved for a down payment?
• Do you have the ability to pay a mortgage every month, plus additional costs?

Remember too, when interest rates are low, you may be best to opt for a fixed rate mortgage where the interest rate is established at its origination and continues unchanged through the life of the loan.

Home Buying Tip

Decide what features you want in a home before you start looking. Decide what features are high priority and what features you might be prepared to compromise on.

Always look for a home which comes closest to what you want. Don’t have such a detailed list of requirements that you literally shut out any chance of finding a suitable home.

Do Your Research And Save Yourself From Costly Mistakes When Buying A Home

The golden rule when buying a home is to do your research, get a property appraisal, get a feel for the home and area it is in, before you sign any contract.

Once you’ve bought the property, it’s too late to change your mind.

Review Real Estate Documents Before You Sign

Read and understand documents and contract before you sign. If in doubt always seek professional legal and/or financial advice.

A good real estate agent will usually make documents available to you for preview before you are required to sign them. If at all possible, ask for these documents upfront.

As a buyer, ask for copies of:

• Buyer's Broker Agreement (is it exclusive or non-exclusive?)
• Agency Disclosures
• Purchase Agreement
• Buyer Disclosures

As a seller, ask to see:

• Agency Disclosure
• Listing Agreement
• Seller Disclosures

The exact wording of documents will vary from locality to locality (and sometimes even within localities), but by reading and understanding the documents, you will be better informed when it comes time for the agent to ask for your signatures.

Set your goal and then take ACTION When Buying Or Selling Real Estate

It’s been said that knowledge is power. But, in my view knowledge is NOT power. Knowledge PLUS action is power.

You see, the thing is, the information in this real estate blog and on my real estate tips website will NEVER work if you don't work it.

It's one thing to want to buy or sell property, but quite another to actually set goals to make it happen. Moving from a "gonna-doer" to actually "doing it" means working towards goals in a conscious and dedicated manner.

If you set yourself up to expect success in real estate you will achieve success. It starts by telling yourselves that you can do it. It is about making things work rather than focusing on what you can't do and telling yourself you can't. The basic concept is really that simple, but extremely powerful.

If You Have Paid One Mortgage Off Can You Help Someone Else Out By Cosigning For Another Home?

Cosigning means using your good credit to help your someone else qualify for a loan. Be careful about cosigning especially with family or friends because when you co-sign for a loan, you're also responsible for it. Consider what could happen if the other party failed to pay the mortgage... the house could go into foreclosure. Why would you want to risk your good credit for someone else who may not have a good credit rating?

It is important to note that you would have to be able to qualify for the loan in the debt-to-income ratio and have the credit to qualify for the loan.

An alternative to cosigning is for you to take full ownership of the property and then sell the house to the other person under a contract. In this case the other party could have a certain amount of time (maybe 2 years) to purchase the property for an agreed price by refinancing the existing loan into his or her name. The contract could include a clause whereby the selling price is increased by 10% per year to give the other party the incentive to refinance as soon as possible. The other party could then get ownership when he or she acts in accordance with the contract terms and conditions. The other party would make payments to you and you would pay the mortgage.

Always seek professional legal and financial advice before entering into any legally binding contract. This is especially so if there is a risk of damaging your financial position or your your good credit record. Remember too, that refinancing an existing loan is usually much quicker and easier than arranging a new loan.

In summary, you can cosign, but YOU ARE LIABLE for the loan. This is a serious matter, don't just seek help from this site, consult legal, financial/credit and tax professionals.

How Mortgage Loan Payments Are Structured.

Most mortgage loans have 4 parts:

1. PRINCIPAL which is the repayment of the amount originally borrowed. Most loans are for 15 to 30 years.

2. INTEREST is the payment to the lender for the money that is borrowed. During the life of the loan, a homeowner will usually pay far more in interest than the amount originally borrowed. This is due to the methodology used in structuring loans which results in mainly interest being paid in the first years of the loan. In the final years of the loan the payments are mostly principal as opposed to being interest payments.

3. HOMEOWNERS INSURANCE is a monthly payment required by most lenders to insure the property against loss from fire, smoke, theft, and other hazards.

4. PROPERTY TAXES is the annual city or county taxes assessed on the property. This is divided by the number of mortgage payments made in a year.

Question About Applying For a New Mortgage

Is The Confirmed Sale Of An Existing Home Necessary Before Applying For A New Mortgage Loan?

No, a homeowner can apply for a new mortgage loan before he or she sells their existing home. However, depending on your income and debt levels, a homeowner may be required to sell the current home before they can close on a new mortgage loan.

How Much Money Is Needed To Buy A House?

The amount of needed to purchase a house depends on several factors - the cost of the house being one of the main considerations.

A homebuyer will need to have (or be able to borrow) enough money for the earnest money, down payment and closing costs when purchasing a property.

The earnest money goes into an escrow account, which will be applied to the down payment or closing costs, if the offer is accepted.

If the offer to buy the property is not accepted, the earnest money will be returned to the person who put in the offer.

The amount of money required to purchase a property will also depend on the type of mortgage and the terms of the terms of the mortgage. Most home loan lenders offer loans with various down payment options, including no down payment and low down payment mortgages.

Getting Prequalified For A Mortgage Loan Can Speed Up The House Buying Process

Having a prequalified mortgage loan can be an advantage to all concerned - you, your real estate agent (if you use one), and the home seller you are buying the property from. Preapproval means that you are preapproved to get a mortgage loan before you begin searching for a property to purchase.

In determining the level to which you can borrow up to, a mortgage lender will consider many variables such as: your income, credit history, your debt obligations. A mortgage loan lender is likely to consider special mortgage programs and variations in qualifying guidelines between different mortgage types.

The only sure way of knowing how much you can borrow is to go through the mortgage loan prequalification process.

Mortgage prequalification is not difficult, but if you are not a cash buyer,it is an essential part of the whole home buying process.

Mortgage prequalification sets the wheels in motion and is the first step in formally applying for a mortgage loan. It lets you (the home buyer) know what is and isn't possible.

A mortgage prequalification can also help a real estate agent to better meet your needs. A real estate agent can waste a lot of time searching for properties that are out of your financial reach. By knowing what your financial boundaries are, your real estate agent can concentrate on finding properties that fit within your budget. This will save your real estate time and it will save you time by not having to inspect properties that you can't possibly afford to buy.
Having a mortgage prequalification can improve your negotiating position with the seller of the property.

If the seller gets two similar offers to buy the property, he or she is likely to select the one that is from a fully prequalified buyer as opposed to one that is subject to the buyer applying for finance. The seller might even accept a lower offer from a prequalified buyer rather than take the chance the other buyer can't obtain a mortgage loan.

Be Patient And Stay Committed When Buying Or Selling Property

Every great athlete, businessperson, or great individual had to stretch and reach for his or her goals. They know that obstacles are a part of the goal achievement process and so they focus on succeeding rather than on what may be keeping them from succeeding. It means overcoming hardships and setbacks, rather than giving up at the first sign of opposition or misfortune. Buying or selling a property is no different.

To do this you have got to be willing to take some calculated risks and be prepared to fall down from time to time. As kids we made mistakes all the time, that's how we learnt. However, as adults we have a thing called "pride" and we hate making mistakes. Think of when you first learnt to ride a bike - you fell down, you got up, you fell down, you got up, and you kept getting up until you mastered it. You didn't give up. If one way didn't work you tried another way until you finally got the idea of it.

Obviously, with buying or selling property home you don’t want to be trying forever. This real estate blog will give you the helping hand you need, but you still need to be prepared to pick yourself up and move forward under your own steam.

Accept That You Will Make Mistakes When Buying Or Selling A Home

With most new or big projects you tackle, you will make mistakes. When buying or selling a home it could be that you worked with the wrong agent or broker, or maybe you didn't take the advice they gave you, or maybe you might have done a better job by taking on more of the tasks yourself?

Hindsight is a wonderful thing, because when you look back on your mistakes they’ll seem so obvious, because you’ve already made them. Accept that you will make mistakes when buying or selling a home – but the trick is to minimize them. This key is to identify potential mistakes in advance...before they happen.

By knowing potential mistakes upfront you’ll have more confidence and control over the final outcome.

So, success doesn’t necessarily go to the person who never makes a mistake. The fact is; those people tend to avoid risks at any cost. Rather, success tends to shine on those who recognize that life is basically a game of percentages. It isn't the making of mistakes that's so critical. What’s really important is fixing them when they do happen, without losing site of objectives and goals.

Can A Home Buyer Apply For A Mortgage Or Loan Before Finding A Property To Buy?

Absolutely and usually recommended! The best time to look for a mortgage loan is before starting to look for a house. This way the buyer will know how much money he or she can borrow and how much house they can afford.

Having a pre-approved mortgage can put a homebuyer in a strong position when negotiating the purchase of a property.

When applying for mortgage pre-approval consideration is giving to personal information such as income, debt and credit history.

This information is used to determine the maximum loan amount the buyer will qualify for in the pre-approval mortgage process.

Face Your Fears When Selling Your Own Home FSBO

There are advantages and disadvantages in selling your home through a real estate agent or for selling your own home yourself (fsbo). If you are going to sell your own home fsbo, then your level of success will depend you're knowledge, skills, time available and your level of motivation to see the task through.

What’s stopping you from making that important decision to sell your home yourself fsbo?

One of the most common answers is FEAR.

Fear is the greatest single barrier to success in our personnel and professional lives. The emotion of fear is intended to warn us of danger and to act as a cautionary tool.

Fear should make us stop and think before taking action. What fear shouldn’t do is dictate the course of action we take.

Communication Between The Real Estate Agent And Home Seller

It you are using a real estate agent keep those lines of communication open. Some real estate agents are not always upfront with the seller. For any number of reasons, the real estate agent may keep potential problems to his or herself. They might not communicate the concerns they have.

In this type of situation, the seller might be wrongly led to believe that the property will sell. When in reality, the seller could be waiting forever!

Both the seller and the real estate agent have a responsibility to each other, to keep the lines of communication open. If the real estate agent and the home seller stop communicating, or worse still, start verbally abusing or blaming each other – the intended house sale will be the victim.

Both the home seller and the real estate agent must stay focused on the goal – to get the best price in today’s market.

Common Real Estate Terms & Mortgage Terms Explained - Part 12

More definitions for commonly used real estate terms and mortgage terms:

Title
The actual legal document conferring ownership of a piece of real estate.

Title Company
Companies that ensure that the title to a piece of property is clear and provide title insurance.

Title Insurance
This is paid at closing and is to protect your ownership rights (title) from claims against it. Title insurance may be the responsibility of the buyer, the seller, or both, depending on where you live and what is the norm.

Waiver
A voluntary relinquishing of certain rights or claims.

Warranty
Covers either most of the house in a new home. In an older home a warranty may cover selected items such as the water heating or air conditioning/heating system. Warranties can vary widely and are optional in used homes (paid for by either the buyer or the seller).

Wraparound mortgage
A loan to a buyer for the remaining balance on a seller's first mortgage and an additional amount requested by the seller. Payments on both loans are made to the lender who holds the wraparound loan.

Zoning
Laws that govern specifically how a zoned area can be used. For example, an area may be zoned for single family residential, condominiums, commerical or retail, or a mix of two or more uses.

Zoning Variance
A one-time modification of existing zoning law.

What's A Real Estate Agreement of Sale?

The name given to an "Agreement of Sale" contract depends on the location or jurisdiction. An "Agreement of Sale" is known by various names including: contract of purchase, purchase agreement, or sales agreement. It is a contract in which a seller agrees to sell and a buyer agrees to buy, under specific terms spelled out in writing and signed by both parties.

Does The Roof Color matter When Buying A House?

It sounds like a strange question, but roof color is one of the many factors worth considering when shopping for a home to buy.

Apart from the general look of the roof and how it matches with the rest of building, roof color can affect energy efficiency in a home. In colder climates, a dark colored roof can be a good option because it absorbs more heat. In temperate climates, a middle-range shade might be a better option. A light-colored roof tends to reflect the heat, so could provide energy savings in regions where air-conditioning is used throughout the year.

What does the term "as-is" mean?

Sometimes in a real estate transaction a property is sold "as is". This means that the seller is selling the property "as-is" with no repairs to property being required prior to sale.

However, the seller MUST disclose all known defects to the homebuyer. Selling "as-is" does NOT mean that the seller is exempt from disclosing known problems with the property. Homes sold "as is" will often attract a lower selling price because repairs are generally required to the property.

A buyer should arrange for a professional home inspection to help identify any faults or areas that are in need of work.

Where Is The Closing On A Property Transaction Done?

It is usually the job of a local title company or real estate attorney to perform the closing. The seller often selects the title company, however, this is open for negotiation.

They will have the mortgage documents at closing along with any other documents requiring signatures.

Common Real Estate Terms & Mortgage Terms Explained - Part 11

More definitions for commonly used real estate terms and mortgage terms:

Real Estate Attorney
A lawyer who specializes in real estate transactions.

Real Estate Broker
A real estate agent who is licensed by the state to represent a buyer or seller in a real estate transaction. A real estate broker gets paid a commission. Most real estate brokers also have agents working for them.

Recording
The act of entering deed and/or mortgage information into public record with your local government jurisdiction.

Recording fee
A fee charged by real estate agents for conveying the sale of a piece of property into the public record.

Sub-Agent
A real estate agent who is working with a buyer but who represents the seller in the transaction.

Explain Seller Financing In A Real Estate Transaction

Seller Financing (or Vendor Financing) is when the seller (Vendor) is prepared to finance the purchase of their property.

Here is what often happens. The homebuyer negotiates a note with the seller and then makes a monthly payment to the seller. The seller of the property then passes that payment on to the mortgage company.

Be Mentally Prepared When Selling Your Home

Everyone, at some point in his or her life has listened to their little voice cautioning them against following a certain action. If you frequently question what you do and think, and veer away from making decisions, then you may be stopping yourself from reaching your fullest potential.

Selling your own home is precisely what I am talking about. Because it may come as a surprise to learn, that most of the problems you will encounter when selling your own home, will be in your own mind.

There is nothing you can’t accomplish if you set your mind to it. And, it is a good thing that these problems are in your head… because that way you are in control. Having advance warning of likely problems when selling your own home, will make the whole home selling process a lot easier to manage.

Common Real Estate Terms & Mortgage Terms Explained - Part 10

More definitions for commonly used real estate terms and mortgage terms:

Prequalification
The first stage of a mortgage application where the lender will run a basic credit report and determine your debt to income ratio in order to see how much mortgage a lender qualifies for.

Pre-paids
Paid for (in cash) at closing for such items as homeowners insurance for one year and real estate taxes for several months.

Principal
The amount borrowed for a mortgage loan. In most cases, monthly mortgage payment include both the interest and the principal (be assured, though, that the lions share will go to the interest portion in the first years of the loan).

Property Tax
An annual or semi-annual tax paid to one or more governmental jurisdictions based on the amount of the property value assessment. Property Tax is generally paid as part of the mortgage payment.

How Real Estate Brokers Work

Real Estate Brokers are independent businesspeople who arrange the sale of real estate owned by others. Some brokers also rent or manage properties on a fee basis.

Brokers usually arrange for title searches when organizing real estate transactions. They also advertise properties for sale, arrange meetings between buyers and sellers so that the details of transactions to be agreed upon pripor to the new owners taking possession of the property.

In some cases a broker may help to arrange suitable financing for the prospective buyer.
Negotiating favorable financing with a lender can often make the difference between success or failure in closing a real estate sale.

Closing a sale could be the primary responsibility of a broker, real estate agent, solicitor or even the lenders.

Some real estate brokers even combine other types of work, such as selling insurance or practicing law, with their real estate business.

Real Estate Qualifications Explained

A close look at a real estate agents business card may reveal extra designations or qualifications. The letters after the real estate agents name may be an indication that he or she has upskilled rather than just being content to just take the courses needed to get and maintain a real estate license.

Designations are an indication the field in which a real estate agent specializes.

ABR (Accredited Buyer Representative)
ABR denotes a Sales Associate who is qualified to provide buyer representation and is familiar with buyer brokerage and buyer agency issues.

ABRM (Accredited Buyer Representative Manager)
ABRM designation is associated more with brokers, owners and managers wanting to incorporate buyer representation into their daily practice.

CLHMS (Certified Luxury Home Marketing Specialist)

CRP (Certified Relocation Professional)
The requirements for a CRP designation include passing a comprehensive exam pertaining to relocation issues related to corporate policies, appraising, real estate, legal considerations, and family concerns. CRP designation is awarded by the Employee Relocation Council.

CRS (Certified Residential Specialist)
Awarded by the Residential Sales Council a CRS desination stipulates a proven track record in the business, along with advanced education in related areas like finance, marketing and technology.

e-PRO
This is a training program presented entirely online to certify real estate agents and brokers as Internet Professionals. This e-Pro designation may be earned after successfully completing 5 areas presented entirely online.

There are dozens of designations that real estate agents and other real estate professionals pursue for continuing and advanced education. Some of these real estate designations require memberships in organizations, with annual dues. They may also have required a considerable financial outlay in completing a specialized program representing many hours of intense studying.

What Are The Alternatives To Selling A Property?

Homeowners faced with financial or personal problems sometimes sell for the wrong reasons.

The Truth is; they might have been better off, had they thought more about their situation and considered some alternatives. That’s why before putting your home on the market it would pay to: think not only about why you are selling your home, but also consider the alternatives and carefully weigh-up the pros and cons.

When selling a property, being in a state of indecision can be very frustrating and can cause needless stress. Not making a decision, or making the wrong decision, also has its downside.

Don’t only think about your reason for selling - think about the alternatives - then consider the pros and cons before you rush in and put your home on the market. And remember; regardless of your reason for wanting to sell your home, it usually pays to talk your ideas through with a financial and/or legal advisor.

Common Real Estate Terms & Mortgage Terms Explained - Part 9

More definitions for commonly used real estate terms and mortgage terms:

MLS (Multiple Listing Service)
A group of brokers joined together in a marketing organization for the purpose of pooling their respective real estate listings. In exchange for a potentially larger audience of buyers, the brokers agree to share commissions.

A Multiple Listing Service combines the listings for all available properties in an area, except For-Sale-By-Owner (FSBO) properties, in one directory or database.

In general, access to a Multiple Listing Service database is restricted to licensed real estate agents. Those agents pay a fee to view the listing database.

Mortgagee
A bank or other financial institution that lends money to the borrower. The borrower is considered the mortgagor.

Mortgage Acceleration Clause
A clause which allows a lender (mortgagee) to demand that the entire balance of the loan be repaid in a lump sum under certain circumstances. This often comes into effect when property is sold, or when title to the property is changed.

A mortgage acceleration clause can also be triggered into action when the loan is refinanced or the borrower defaults on a scheduled payment.

PMI (Private Mortgage Insurance)
Required on virtually all conventional loans with less than 20% downpayment. The payments for PMI are included in a mortgage payment and protects the lender against loan defaulters. On FHA loans, you will pay a MIP (Mortgage Insurance Premium) which accomplishes the same purpose.

Points
1 point is equal to 1% of the loan value, paid at closing. Points can be loan origination fees or "discount points" which reduce the interest rate of the loan (you are actually paying a finance charge up front). As an example, if a lender quotes a rate of 7.5% with 1 + 1 points, 1 point is for the origination fee and 1 point is for the discount fee.

When Closing A Real Estate Transaction - What Is Earnest Money?

Earnest money is the deposit made by the buyer when the offer is submitted. The amount of paid varies from transaction to transaction.

Perhaps the main purpose of paying "earnest money" is for the buyer to prove to the seller that he or she is a genuine buyer who is serious about wanting to buy the property.

When the offer on the property is submitted, the earnest money will be put into an escrow account by either the buyers real estate broker, the sellers broker or the title company.

If the offer is accepted, the earnest money will be applied to the down payment or closing costs.

If your offer is rejected, your money will be returned to the the person who made the offer.

When Closing A Real Estate Transaction - What Is An Escrow Account?

An escrow account is an account that is established by a lender to pay the real estate taxes, homeowner's insurance and mortgage insurance on behalf of the buyer.

Be Careful What You Say When Buying Or Selling Real Estate

Although you should always be honest in nany real estate transaction - by saying the wrong thing, or a simple “slip of the tongue”, could cost you dearly.

You will need to choose your words carefully.

Decide how much information you are willing to give without revealing too much, or misleading, or deceiving the real estate agent or the homebuyer.

Search MLS Listings Or Use A Real Estate Agent?

Asssuming you've checked your credit rating, found a suitable mortgage lender, been pre-qualified for a mortgage loan and started searching the MLS listings - what next?

Well, perhaps even before tackling the MLS listings you might want to find a qualified real estate agent. Start interviewing suitable candidates and decide whether you want to handle things yourself or use the services of a real estate agent.

A good real estate agent will have a thorough knowledge of the local area and will know what is available and what properties are likely to sell for. It is likely that a good real estate agent will be able to locate a home more quickly than if you searched on your own.

The other advantage of using a real estate agent is that they will understand all the paperwork and procedures involved in buying a home. The real estate agent can direct you in filling out legal documents, although if you have bought and sold properties before, you will probably know what's involved. The main thing is to be thorough, seek professional legal advice with contracts and to avoid falling into real estate traps (or legal traps).

Keep searching the MLS real estate listings yourself as it will improve your knowledge of the market and what's available. However, keep in mind that a real estate agent will often get notifications of homes for sale before those homes hit the MLS real estate listings. You could get a head start on newly listed properties before other buyers even know they are for sale.

Common Real Estate Terms & Mortgage Terms Explained - Part 8

More definitions for commonly used real estate terms and mortgage terms:

Legal description
A specific way of identifying and locating a piece of real estate that is acceptable to a court of law.

Lien
A legal claim against a piece of property or asset which is used to secure a loan and which must be paid when the property is sold. Liens can be filed by unpaid contractors or other debtors in a legal process so that they will be paid when a property is sold.

A claim can hold against an asset until all the obligations to the creditor are cleared (a general lien), or just until the obligations against that particular assets are cleared (a particular lien).

Listing
A property for sale by a Real Estate Brokerage and Agent.

Loan Origination Fee
A charge imposed by the lender, payable at closing, for processing the loan.

Lock-in
A agreement by a lender guaranteeing a specified interest rate for a specified period of time. Lock-ins have specific expiration dates, such as 30, 60 or 90 days in the future. Lock-ins are also refered to as a rate lock.

A lock-in can be a good option if interest rates are rising, but not so good if interest rates are falling.

LTV (Loan to Value)
The ratio of the amount of the mortgage as a percentage of the value of the property.

How Desperate Are You To Sell Your Home?

Both the real estate agent and the homebuyer know that your level of motivation will be the driving force in the home sale. They will want you to reveal how urgent the deal is and how negotiable and flexible you are with the sale of your home.

Are you desperate and willing to sell your home at any price?

Have you already made a conditional offer on another home?

Are you relocating to start a new job in a new town?

Have your family circumstances changed?

Those are the types of questions that can reveal how motivated (or desperate) you are to sell your home. They can have a big influence on the final outcome in terms of the conditions of sale and the negotiated price for your home.

That’s why it is really important to decide exactly what you are going to tell a real estate agent or a potential homebuyer. Decide exactly how motivated you are to sell, before you put your home on the market. Think of how you are going to answer each question before it gets asked.

Getting The Most From MLS Listings

The MLS real estate listings provide photos of homes for sale along with the listing agents' names and contact details. You can use your own agent.

When using MLS listings you will be able to focus your search criteria around your buying price range, the location you want, the number of bedrooms and bathrooms you need, and other desired features like pools, garaging, gardens, heating etc.

When you find an suitable property in the MLS listings, contact your real estate agent, or the one shown in the MLS listing, and he or she will do the rest. It's the real estate agents job to do the legwork... not yours.

Find A Suitable Mortgage Lender Before Searching MLS Real Estate Listings

When buying a home do things in the right order. Before searching the MLS real estate listings determined your credit rating and find a suitable mortgage lender. Shop around and compare rates and terms. There are numerous mortgage lenders listed in phone books, directories and on the Internet, so you do have a choice.

The main thing to remember is that you stand a much better chance of securing the home you want when you pre-qualify for your loan. So, check your credit rating, find a suitable mortgage lender, get pre-qualified and then start searching the MLS real estate listings.

Sell Your Home Yourself Or Sell Using A Real Estate Agent?

If deep down you don’t expect your house to sell, then it might be a sign that you are just not prepared enough (or motivated enough) to make the sale happen.

And...if you don’t feel confident enough to sell your home yourself, then you may be better off facing reality and listing your home for sale with a real estate agent.

Thousands of people DO successfully sell their own homes (fsbo), but it does require a commitment and careful planning. If you’re not fully prepared to sell your house yourself... don’t even bother trying. Start interviewing real estate agents who could list your home for sale.

Can Someone With Poor Credit And A Small Down-Payment Buy A House?

Yes, there are options available where someone with a poor credit history and a small down-payment could buy a house. Someone in this situation could possibly be considered for one of the federal mortgage schemes that are available.

One of the HUD funded housing counseling agencies would be a good place to contact for discussing the options. There may also be local government homeownership schemes depending on where the property is located.

Remember, if in doubt, always seek professional legal and financial advice when buying or selling real estate, or when arranging mortgages or loans. The signing of legally binding documents and contracts should always be taken seriously.

When Buying A Property - What Should You Consider And How Much Should You Offer?

Although, there are other things you will need to consider when buying a property, these are some of the important points that need serious consideration:

How much do you really want the home? Are you emotionally attached to buying it?

It is usually advisable to arrange for a professional home inspection either before or shortly after you make your offer. The offer could be subject to the findings of the inspection.

How does the asking price compare with prices of similar homes in the neighborhood? The closer you are to the asking price, the more likely your offer will be accepted. If other buyers are competing to buy the property, are you prepared to increase your offer and perhaps even offer above the asking price? Again, this comes back to how much you really want the property and how much you can afford.

How long has the home been on the market? If it's been for sale for a while, then why has it not sold. Is the seller asking too much? Is there something wrong with the property? If the property has been on the market for some time without selling, then maybe the seller would accept a lower offer.

Is the property in good condition, or money need to be spent to bring the property to the standard or style you want?

How much mortgage finance will be required to purchase the property? Will you be able to meet the mortgage repayments and interest payments on the property?

Have you got the appropriate legal advice from a real estate attorney? Is the real estate contract worded correctly with the appropiate clauses included?

How Real Estate Agents Work

In most situations a real estate agent is an independent sales worker providing his or her contracted professional services to a licensed real estate broker. In return, the broker pays the real estate agent a portion of the real estate sales commission earned from each property that the real estate agent sells.

real estate brokers supervise real estate agents who may have many of the same job duties.

Know Home Values When Looking To Use MLS Listings

Before even considering listing with a MLS real estate listings service, you will want to have a good idea of the value of your current home and the value of the homes for sale in your area. It is important to track real estate values for individual properties or entire neighborhoods. Find out what to expect from the sale of your home first. Then you'll know exactly what price range to look for in the MLS listings.

How Expectations Can Differ In A Property Transaction

All parties involved in a real estate sale must have the same expectation...that the property WILL SELL.

Sometimes a sellers gets all excited thinking their house will be snapped up by a keen buyer in a matter of hours or days. Unfortunately, that is usually wishful thinking, when in truth the real estate agent or broker might not be expecting the property to sell at all!

Now, I know what you are thinking – “surely both the seller and the real estate agent expect the property to sell... don’t they?” Well, they probably both HOPE the property will sell, but do they both EXPECT the property to sell... and at what price?

If either the seller or the real estate agent has reservations about whether or not the property will sell, then those issues should be discussed openly. Think about it; either party could have reservations relating to price, condition, location, terms, market, timing or some other factor that could potentially prevent a the property from selling at this time.

Be upfront and identify any reservations or apprehensions before going to the market.

Common Real Estate Terms & Mortgage Terms Explained - Part 7

More definitions for commonly used real estate terms and mortgage terms:

Homeowner's Association
An owners group (within a condominium, apartment, townhouse or single family subdivision), that establishes general guidelines for the operation of the community, as well as its standards.

Inspection
A thorough inspection of a home (inside and out) being considered for purchase. The inspect will look for defects in the property.

Interest
That portion of a mortgage payment that is the "charge" for using the lender's funds.

Interest-Only Loan
Where each payment goes toward interest, the outstanding balance of the loan does not decline with each payment.

Interest Rate Caps
Where a limit is placed on the amount that can be charged to the monthly payment of an adjustable-rate mortgage during an adjustment period.

What's A Balloon Mortgage?

In real estate terms a Balloon Mortgage is a mortgage loan that requires the remaining principal balance be paid at a specific point in time. As an example, a loan may be amortized as if it would be paid over a thirty year period, but requires that at the end of the tenth year the entire remaining balance must be paid.

A balloon payment is the final lump sum payment that is due at the termination of a balloon mortgage.

A Good Credit Rating Can Be The Determining Factor When Buying A Home

Your credit rating is the most important piece of information you can have when buying a home.

Have bad credit? Don't know what shape your credit is in? Will you qualify for a mortgage loan or will a bad credit rating stop you from qualifying for a mortgage? You need to find out your credit rating before searching the real estate listings of homes for sale.

Unless you are a cash buyer, checking your credit rating could save you a lot of wasted time in searching for your dream home.

Is There The Motivation To Make The Real Estate Transaction Happen?

There’s that old saying, “it takes two to tango!” Well, if you’re selling your property through a real estate agent it might take three! You see; to bring any real estate deal together takes a motivated buyer, a motivated seller and a motivated real estate agent (if you’re using a real estate agent).

Before putting your property on the market think carefully about how motivated you really are to sell. Truth is; you are either going to be realistic in setting your selling price price expectation or you’re not. That could make a big difference to what happens (or doesn’t happen) when your property goes on the market for sale.

Why Home Owners Need To Ask - Is the property “seriously” for sale?

Before listing a house for sale, every homeowner should think carefully about whether they really want to sell and move house. It sounds like a simple enough question, but many homeowners would struggle with an answer.

Here’s what often happens. Some people will put their home on the market at a ridiculously high asking price. Not because they expect their property to sell for that price, but because they can’t decide if they really want to sell. If a homebuyer is willing to pay the home sellers inflated price, it makes the sellers decision a whole lot easier.

But, isn’t that the wrong way to go about selling a property? If money were the only motivating factor, wouldn’t the home seller be better off considering other types of moneymaking schemes?
If a property is not “seriously” for sale it can be a waste of time for all concerned - homebuyer, real estate agent, home seller.

Can A Dual Agent Fairly Represent Both The Home Buyer And Home Seller?

Any licensed real estate sales agent or broker can be a buyer's agent representing the home buyer in the transaction. A buyer's agent can represent any home buyer and also accept listings of local homes for sale.

However, when a buyer's agent shows homes that have been listed for sale by himself or herself (or by another agent working for the same brokerage), then a dual agency situation arises.

A "dual agent" is when the same agent or brokerage represents both the home seller and home buyer. Many in the real estate industry view the dual agency senario as being undesirable. Questions need are often raised as to how the particular dual agent can fairly represent both parties in the real estate transaction.

Will A Home Buyer Be Better Off Using A Buyer's Agent?

In most circumstances it is probably wise for a home buyer to use his or her own buyer's agent. This is because a buyer's agent will represent the needs of the buyer (and not necessarily those of the seller).

A buyer's agent will be well aware of what the home buyer is looking for in the way of a house or apartment and should be able to look after the buyer's best interests.

The buyer's agent will search out properties and will normally advise the buyer of the advantages and disadvantage of each property that is inspected.

Property Sold: Checklist Of Tasks Before Moving Into A New Home

Assuming you've just bought a new home and are ready to move in - now what?

Well, there are several small tasks that need to be checked off: turning on electricity/water/gas, arranging for an alarm company, cleaning or replacing the carpet (it is much easier to do this without furniture in place), and notifying your local post office (and friends) of your new address. Renovations are often best done before you move in.

Common Real Estate Terms & Mortgage Terms Explained - Part 6

More definitions for commonly used real estate terms and mortgage terms (or terminology relating to the real estate/mortgage industry):

Fixed Rate Mortgage
A mortgage loan where the interest rate is established at its origination and continues unchanged through the life of the loan.

FSBO (For Sale By Owner)
Real Estate that is sold by the owner of the property without using a real estate agent.

Foreclosure Property
The legal process by which an owner's right to a property is terminated, usually due to default. Typically involves a forced sale of the property at public auction, with the proceeds being applied to the mortgage debt.