What is Real Estate

Writen by Greg Bacon

Hurricane Katrina, floods, earthquakes, rising fuel prices, shrinking pocketbooks, and now, concerns over variable interest rate loans, are discussions heard throughout the nation.

With mounting concerns by the Fed over rising inflation, there is a serious push to increase the current rates of interest. This may help to curb inflation, but will also have a devastating effect for millions of homeowners who are tied to variable interest rate, and interest only, loans. As rates go up, so do most underlying mortgage payments, placing an even greater stress on those who want, or need to sell their property.

Many home owners are beginning to find themselves in an 'upside down' sales position. In other words, decreasing home values in some areas of the country are already leaving owners in the dire position of owing more on their property than the current market price will bring. In addition, rising mortgage payments coupled with slower real estate sales, are forcing more owners into foreclosure, and in some cases bankruptcy, which is currently on the rise and heading toward one of the highest levels in U.S. history.

In an effort to curb this combination of economic pressures, and for saving equity wealth positions, many homeowners are now resorting to selling their property as a, For Sale By Owner. In doing so, they are saving large portions of equity profit that would otherwise be paid out as a real estate commission.

What many owners have discovered is that a 6% rate on a $200,000 home is in fact, $12,000. If their equity wealth position is $24,000 on their property, then they have effectively paid 50% of their profit to a real estate broker, not 6%! This financial inequity is created because the 6% commission is being charged on the gross price rather than on the net proceeds from the sale.

Add to this, the standard 2 1/2%-3% normal closing costs for each transaction, also calculated on the gross price, and again, a home owner's wealth diminishes even further! To avoid this loss, an ever- increasing number of owners are opting to 'do it themselves.' In an attempt to help homeowners succeed on their own, the following five basic steps are being provided as a solid foundation in the For Sale By Owner process:

Step #1: Determine A Fair Market Price For The Property. This can be done by visiting a local Title Insurance Company and having them run price comparisons for 'SOLD' property (over the past two years) within a 2-block radius. Using 'sold' prices in an immediate area will help establish a price/value range and establish a trend a homeowner might effectively use for marketing the property.

Step #2: Connect With An Attorney and Escrow Office. One of the first connections to establish is with a qualified real estate attorney. This attorney will be used for helping guide the homeowner through the legal portion of the transaction and for finalizing any Offer To Purchase (also known as Earnest Money Agreement). The best place to start looking for a qualified real estate attorney is at the same Title Company used for researching the property value. Larger Title Companies usually have a full service escrow department for closing transactions. In addition, they can also provide a good alliance with some of the better, local real estate attorneys. By choosing the right Title Company in the initial research phase, it can prove to be a one-stop-shop for helping solve many of the home-selling challenges.

Step #3: Find A Mortgage Lender. Now that the attorney and escrow office are lined up, a good mortgage lender will be needed for helping to qualify purchasers and ultimately, for financing the transaction. My recommendation is that at least two conventional bank lenders, and one or two mortgage brokers are contacted for this purpose. The reason for having choices is that each lender will offer different financing packages. It is this loan diversification, which will open a wider range of financing opportunities when working with buyer prospects.

For completing these first 3 steps, the homeowner should figure on creating one 'Action Day' where all research and connections are finalized. At the end of this day, a complete sense of control and organization for the selling process should be accomplished.

Step #4: Advertising and Marketing. Now that the attorney has been chosen (and contact has been made), a location for escrow and closing the transaction has been determined, and all mortgage lenders lined out, it is time to place the yard sign and begin advertising.

There are many sign companies found on the Internet for purchasing a For Sale By Owner yard sign, and one that may be of interest is Victory Signs at: http://www.victorystore.com. However, for immediate service, a homeowner might also check out the offerings and pricing from their local sign shops.

As for advertising, the most effective ad placement will be a clearly written classified ad stating the most unique feature of the home. This targeting of the ad copy will help to draw out the one most likely prospect that will purchase the property. When writing the ad, it should be kept economically viable remembering that serious house hunters will read all ads within in a column, whether they are promoted in bold type, or not! Knowing this information can help to keep your ad costs lower.

The other most important real estate advertising to consider, is through creating a simple flyer that will be placed in a clear plastic holder attached to the outside yard sign. This flyer can also become an effective advertising tool when used as a handout at all open houses.

From my own research, almost 60% of homebuyers actually locate their homes by driving the neighborhoods where they intend to live. Realtors have known this for years, and that is why yard signs are so heavily used in promoting property for sale. If signs were not effective as a marketing and branding vehicle, agents and brokers would resort to advertising only through display and classified advertising media channels. But they don't! So, it quickly becomes apparent this is an effective means for marketing any property. And one you do not want to overlook.

As a final note on this subject, make sure the flyer box on the yard sign is always kept full of flyers for the people who are driving the area. To help in creating the most professional looking sales flyers at a reasonable cost online, a good source to check out is: http:// www.myfsbo.com.

Step #5: Writing Your Offer. When initially meeting with a chosen attorney, the homeowner should also ask him/her how they would prefer the initial offer to be drawn up for a prospective purchaser? At this time, the attorney will also be able to provide a list of what questions need answering and any other legal paperwork required for state compliance. The attorney can also provide good initial direction for making sure negotiations hit the most key elements when consummating the sale. This initial pre-sale legwork helps to alleviate many future concerns. Once again, proving there is no magic formula used for selling real estate or for writing an Offer To Purchase. What it really boils down to is the intent of the seller and buyer for consummating a fair and legal transaction between them, and with full disclosure.

In Summary: If you find yourself at the mercy of rising interest rates and variable rate payment adjustments, these five, For Sale By Owner steps, can help you to move beyond traditional marketing methods, potentially avoid foreclosure, and help save more of your equity wealth position. Taking these steps can also help to alleviate stress-causing unknowns from misinformation and lack of preparedness.

About The Author: Greg O. Bacon, President MXMRQ® Corporation, is a former sales and operations manager for Coldwell Banker® Real Estate, and is the author of: "Warrior Economics – Taking Back Your Home Selling Profits! A Complete For Sale By Owner Program." For more information regarding the author and this timely real estate program go to: http://www.mxmrq.com

Writen by Brandon Bruce

As the second largest city geographically in Florida, this beautiful southwestern attraction is located on the banks of the Caloosahatchee River. It also lies between the Gulf of Mexico and part of the Intracoastal Waterway. With a population of more than 138,000, Cape Coral is known as a vibrant city that promotes growth industrially, educationally, and culturally. Residents take pride in the area's momentous growth, ideal weather, resource availability, and the affordable cost of living. It's no surprise that a Cape Coral realtor is destined to be successful in the numerous real estate transactions that take place in this city.

History:

Cape Coral has developed into what it is today in just a 40-year span. This young city was incorporated in 1970 by two land speculators that placed confidence in the host of opportunities that waterfront living would bring. The Rosen Brothers purchased the property, built more than 400 miles of canals, and launched a major marketing project that would later result in the sale of thousands of residential building sites. Today, Cape Coral continues to experience rapid growth economically and socially. The city is even able to distinguish itself from others since it features thousands of waterfront residential properties on canals and direct saltwater routes to the Gulf of Mexico. Cape Coral is proof that a little investment can go a long way.

Qualities:

No matter what leisurely activity catches your interest, Cape Coral guarantees plenty of fun in the sun. You will definitely enjoy all of the park, playgrounds, golf, and sailing that the city has to offer. Do you like to go fishing? Southwest Florida is nationally recognized for saltwater fishing, and the extensive miles of canal undoubtedly make Cape Coral a haven for fishermen and boaters. If you are looking to make the most out of a peaceful day, Jaycee Park features many areas designated for picnicking, romantic strolls, and sightseeing. Four Freedoms Park offers more energetic outings that include a playground area for children and a recreation center. You can also visit Veteran's Memorial Park to engage in sporting events like basketball or bocci ball. Are you an aqua-lover? If so, the Sun Splash Family Water Park provides 15 acres of two dozen water attractions. A Cape Coral realtor will inform you of all these wonderful activities and much more when you consult about prospective properties.

Housing Opportunities:

One of the duties of a Cape Coral realtor is to confirm that absolutely nothing is better than the residential opportunities found in this magnificent city. There is a wide range of waterfront residences to suit your tastes at fairly reasonable prices. You can opt to dwell in a cozy condominium near the Gulf, a luxury villa surrounded by the city's most lavish clubhouse, or even a spacious single family flat with a waterfront view for the whole family to enjoy. The housing opportunities are limitless, and investment possibilities are abundant. Since Cape Coral acquires so much land mass, it is easy to purchase pristine property for your own private use.

You can look forward to a literally bright future by conversing with a Cape Coral realtor about the endless benefits that this endearing city has to offer.

Inside Real Estate in a network entirely devoted to real estate information. Our staff of nationwide writers has provided a library of over 25,000 real estate articles. Inside-Real-Estate covers several topics from the basic "how to's" of real estate to city specific real estate information.

Writen by Sadiya Anjum

It is extremely essential to read any legal contract before signing on the dotted line and this goes even for a rental agreement. For what is stated in the agreement binds you legally to follow it and ignorance of its contents could lead you into serious trouble. While reading the rental agreement, its important to scrutinize it to see that you are getting a fair deal. Since ideally the landlord draws up the lease agreement, you will be hard put to find one that favors the tenant equally.

Here are some basic tips that you can follow to get your negotiations started, get through the process smartly and ultimately receive the fruit for your labor.

Reading the agreement in advance:

Begin with asking your landlord to send you a copy of the lease before the date on which you are supposed to sign. This will give you time to analyze the agreement and do your homework. Check to see that the conditions your landlord verbally stated are now accurately written and do not have any hidden clauses. Preferably get an attorney to examine the lease for you so he/she can point out discrepancies and explain anything you haven't fully understood. Most attorneys can go through a lease agreement in less than an hour, so hiring one for the job will not be an expensive affair. In case you haven't been able to get your hands on the lease and the date for signing has drawn near, don't panic. At the signing, take time to read it and if you can, take an attorney there to get things going.

Doing your homework:

Try and gather as much information as you can about the landlord. Are you renting from a corporation with a hundred units or from a person who is maintaining just that one property? Knowing these details will help you determine which points you can negotiate and how to go about it. The truth is you can't battle over every single detail; you will have to pick the ones that most affect you and the ones that can be altered.

Picking the points you're going to talk over is just as important as finding valid reasons for them. For instance, if you have assumed responsibility for half the maintenance work and payment for some utilities, then maybe the rent is too high when pitched against this.

Put on your landlord's shoes. Reason and predict the responses and arguments the landlord will present and see how you can counterattack them. Figure out what you will do if negotiation over a particular point fails – know what you are willing to compromise on and what you will fight for.

The Negotiation:

Negotiate with the landlord and not any third party like a broker. Speak to the person who has the authority to make the changes in the agreement or you will just be wasting time. Negotiate on the day of signing the lease. This is owing to the fact that by that time the landlord is satisfied with you and wants you as a tenant. So he too may have something to lose if the negotiation fails. Before starting to negotiate, ask questions - doubts about the lease or any other questions to your landlord. This will create an impression of a tenant who cannot be fooled and is genuinely interested in safeguarding his/her rights as well as the landlord's. Showing responsibility can help warm up the landlord for negotiation. See if your broker can help you negotiate but make sure that there are a minimum number of people involved during negotiations. Too many people, too many mouths and too many inputs can create chaos and confusion.

During negotiations, always keep your cool. Do not raise your voice and stay calm even if the landlord is roaring. Also do not make ultimatums (like I will not sign if you do not change this clause) unless you mean it. Otherwise it is just in poor taste and leaves a bad impression if you do land up signing the agreement. Reason out: try and show him why a particular point is unfair or why it will work out better in some other way. Be patient with his arguments and tell him that while you understand, it really isn't beneficial to you. Point out the positive facts that make you a good tenant like a good credit history, good recommendation from previous landlord etc.

After settling on the amendments that need to be made, get it in writing before you finally sign. Your landlord is probably going to expect you to negotiate but make sure that when you do it, you do it right and appropriately.

Sadiya Anjum - ChoiceOfHomes.com - Homes for Rent in the U.S. online.

Writen by Donna Robinson

"Begin With The End In Mind"

I first heard the phrase "Begin with the end in mind" in a Steven Covey book called "The 7 Habits of Highly Effective People". This expression makes a lot of sense because the fact is, you can't get where you're going, unless you know where you want to go.

Most new investors understand that real estate is an investment vehicle that makes sense. We all know that many fortunes have been built with real estate. But when you are first getting started, all the available information can be very confusing. I often receive emails asking "what strategies should I use?" or "Where should I look to find deals?".

One reason these issues are so difficult to understand and sort out when you are new to the investing game is that the answer to the question can be different for every individual.

Seminars tend to package information in a "one-size-fits-all" crash course. But this inevitably leaves unanswered questions for each individual user. Simply put, each person has their own individual situation with regard to credit, income, employment, assets, etc. All of these factors can affect your investing choices and objectives.

Compounding this confusion is the sheer number of strategies. Should I own rental property? Should I fix up and resell? How about Options? Or, how about buying tax leins? There are so many choices, how is one to know what to do when just starting out?

I can remember floundering around myself. I spent thousands of dollars on different courses, trying to put all the pieces together and gain enough understanding to know what I should do first.

It seemed that no one wanted to tell me anything useful unless I paid them first. I soon found that no matter how much money I spent, there were many unanswered questions. I felt frozen by fear, because I simply did not understand what to do first. As a result, it was several years before I actually felt comfortable enough to get directly involved in buying a property.

Today, after having seen and participated in many deals, I know that step one is decide what you want real estate investing to do for you. In short, where do you want to go?

Like any trip, you start out by deciding where you want to go. Once the destination has been chosen, you figure out the best way to get there.

Many of the most successful and wealthy investors I know, built their fortunes with rental property. Some of them own 40 or more rental houses. Some of them own commercial properties like gas stations, storage facilities, or office buildings. They each had the same destination, that of cash flow from rental income, but two drastically different ways of getting there.

Frankly, most of the really successful investors are very patient men and women who build their portfolios slowly over a number of years. They are cautious and prudent, buying only when they know the deal is a good one.

Today, many people are lured into investing because they have heard the stories about how you can buy property with no money down, and take out enough cash at closing to pay off all your debts. This is possible, but creating one debt to pay another does have it's risks.

Let's say that your ultimate objective is to achieve $5,000 per month passive income from rental property. Now, think of that objective as if it were a city on a road map.

Most cities have a number of different roads you can take to get downtown.. It is the same way with your investing. Different people will arrive at the same destination, each one using a slightly different route to get there.

Once you decide where you want to go, your route to your destination will be determined by your financing options. .

If you have great credit, income for which you receive a W-2 statement, and lots of cash for a down payment, your financing options will allow you to take virtually any road you wish. The fact is, good credit and cash will get you where you want to go a lot faster. But it's not the only way.

If you are credit challenged, self-employed, or lack cash for down payments, your ultimate destination can be the same, but you will need a different route to get there.

Your financing options determine the route you have to take to get to your destination. In essence, the answer to getting started is find out what kind of financing you can get, and then find deals that work with your available financing options.

If you can't get any kind of financing at all, you can still buy deals where the seller will agree to finance the deal, or some scenario where financing is provided without you having to qualify.

If you have decent credit but no cash, there are investor loans with low down payments, that may make it easier for you to get in with little cash.

If you have great credit and cash - hop on the expressway. Look for any good deal, since you can get a loan at excellent rates, in addition to taking advantage of any good seller financing deals that come your way. You have the most options for getting to your destination.

No matter where you start from, you can still wind up at the same destination, and achieve the same objective.

Step One: Decide where you want to go. Then, get with a good lender to find out which roads you will be able to take. Even if you have to start out on the "no cash, no credit" back roads, remember that sooner or later, if you keep driving, you will find an access ramp to the expressway.

Donna Robinson is an investor, author and consultant on real estate investing, located in Atlanta, GA. Read more of her articles and get her newsletter on her website, http://www.RealEstateWholesaling.com

Her email address is service@realestatewholesaling.com

Writen by Michael Hanna

According to the Nationwide Building Society, the UK housing market has made a "strong start" in 2006, with the biggest rise in house prices for 18 months, rising by 1.4% in January. This was seen by the Nationwide as part of a "strengthening trend" since October, with confidence returning to the housing market, but the high price rises of 2004 were not expected to return.

Jeremy Leaf of the Royal Institution of Chartered Surveyors said, 'The housing market is definitely seeing signs of a recovery,' and he predicted that, 'modest price rises are expected to continue into the year.'

Fionnuala Earley, an economist for the Nationwide, stated that she believed that factors such as pension fears, declining consumer appetite for debt and below-average economic growth would help to restrain further house price rises in 2006.

Another sign that people are regaining confidence in the market can be seen alongside a warning from the BBC that many first-time buyers are willing to overpay in order to get onto the first rung of the property ladder. The Yorkshire Bank has announced that more than one in five first-time buyers are currently willing to offer above the asking price, compared with a year ago when less than one in ten were willing to pay over the asking price.

Gary Lumby, a Yorkshire Bank spokesman, said, "Buyers are starting 2006 in a more positive mood than last year, when there seemed to be a lot more uncertainty regarding where the housing market was going."

Whilst more first-time-buyers purchasing property is extremely beneficial as it allows for greater movement within the market place, the increase in the number of buyers willing to overpay could be a cause for concern. With the UK personal debt level currently running at £1,158bn, and buyers risking the possibility of future negative equity on the mortgage, some caution should be exercised by those thinking of overpaying.

It is vitally important when making any kind of investment that you get the right advice and ensure you will be able to afford the payments. With something as important as financing your own home, you should get as much information and qualified advice as possible. Many financial web sites such as Moneynet and Motley Fool provide free straight forward guides on mortgages and house buying to help navigate the many possible pitfalls which buyers can fall foul of.

A good starting place for buying a house is to check-out the prices of houses in and around the area you are thinking of moving to, in order to see if the house is over/under priced. A site like myhouseprice.com which checks data from the Governments Land Registry can help with this type of information. Buyers should also form an impression of what the local community is like. Websites such as upmystreet.com and homecheck.co.uk can be useful sources of basic information such as the average property prices for the area, crime rates, schools, flooding and pollution information, as well as the general demographics of the neighborhood.

Another important next step is to determine how much it is possible to borrow, the amount that will be needed (including all lenders rates, surveys, deposits, solicitors fees, movement costs, insurance, etc.), and double checking how much can actually be afforded for the mortgage payments. This stage can be extremely nerve wracking, but it is absolutely vital to help avoid serious future financial difficulties.

The potential house buyer can then start to determine type of mortgage that would be the best one for them to be taken out for the final potential purchase. The decision on which mortgage to obtain will make the difference of many thousands of pounds and so it is essential that this decision is made with the best help available. The rates of lenders can be easily compared through financial comparison sites like Moneynet or Moneyfacts, and help on what to look for can be found on the Governments Financial Services Authority website.

It is to be recommended that before any buyer takes out a mortgage or any other financially binding contract, that they seek qualified independent advice. This is because while it is not actually required, if advice is not taken, there would be fewer grounds for making a possible complaint and seeking financial recompense should the mortgage product turn out to be unsuitable at a later date.

With the appropriate finances agreed and secured, then the house buyer can start the actual process of approaching the house sellers with a view to having surveys completed and possibly making an offer with all the complications that involves.

Useful resources:
Moneynet mortgage guide ( http://www.moneynet.co.uk/mortgage-guide/index.shtml )
Motley Fool mortgage guide ( http://www.fool.co.uk/mortgages/articles/introduction.htm )

Disclaimer:
All information contained in this article, is for general information purposes only and should not be construed as advice under the Financial Services Act 1986.

You are strongly advised to take appropriate professional and legal advice before entering into any binding contracts.

Author: Michael Hanna

About Michael

Michael is a keen writer, and internet marketer living in Scotland:

Contact details:

E-mail: samqam@googlemail.com Phone: 0131 561 2251
Michael's Website: Gransha

Writen by Martin Lukac

You shouldn't necessarily base your decision on the market, but it is an important factor. It will tell you how long and for how much you can sell your home. It can tell you how much and how long you will have to wait to buy a home.

But the most important thing to remember is that the market is not a national condition. Parts of the country are booming, while others are experiencing a slowdown. Some never seem to change.

The difference isn't as wide as east coast to west coast. In fact, a recent real estate search in my area revealed a price difference per acre of land of thousands within a 200 mile radius. The market allows the price to be high in that area due to demand for development land. In the lower priced areas, demand isn't as high.

You have to look at your area and determine what type of market you are in. Hey, the market can even variate between neighborhoods. Some neighborhoods are more desirable -- better schools, nicer location, lessened commute times -- so they bring the highest prices. You often even have to look at the market in general.

A good real estate agent will honestly tell you what type of market the area is experiencing. This prepares you for many things. The area could be seeing a seller's market or a buyer's market.

A good market can change quickly. Often, you are buying AND selling. What helps you on one side can work against you on the other. The solution is to make wise decisions on your purchase. Make sure that you buy median-valued property in a good neighborhood at a price you can afford. Don't take chances if you believe the market is going to change from a seller's market to a buyer's market. If you do, you could lose out if you are forced to sell.

Yes, the interest rate is pushing a few people out of the market. But really, not that many. Housing prices are more likely to push people out of the market. Recent government studies on the consumer price index revealed that rents are going up. This is because the demand is greater on rental properties right now. Less people are buying.

But the increases in interest rates haven't been significant enough to push the wise consumer out of the marketplace. Yes, you may have to settle for a home that is a little less expensive, but with good credit and a downpayment, you are set.

Pay attention to what is going on in your neighborhood. Are there a lot of homes for sell? Are they selling quickly? Are a lot of people looking at homes in your area, or the desired area? Are people fixing up their properties?

Or, are homes remaining on the market for a while? Do you see many owners dropping the prices on properties? Are agents really working to find potential buyers?

No matter what market you are in, there will be a buyer and there will be a seller. Sometimes, it takes a little time. Sometimes, you have to negotiate. But it will all come together eventually. No matter the market.

Martin Lukac represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!

Writen by Rhiannon Williamson

According to a recent report released in the UK about which European property markets have the greatest potential for growth and profit over the coming decade, Romania topped the lot.

Romania, located in southeastern Europe, is a nation poised on the brink of full European Union membership and one benefiting from substantial foreign direct investment and economic advancement as a result. According to the report these facts mean that over the coming decade the housing market in Romania will likely go from strength to strength and anyone who invests before EU membership is cemented could net up to 400% profit on their investment in the next ten years.

The report was based on an economic assessment and overview of each country in Europe and included analysis of the room for growth within each country's real estate sector. Because property prices in Romania start from as little as twenty thousand US dollars, the room for property price expansion is clear. The low starting prices for real estate in Romania also mean that its property sector is already attracting substantial international real estate investor interest.

Investors from all backgrounds are attracted to Romania – those with a small sum of money to invest are looking to make immediate gains from buying apartments in Bucharest pre-construction which can be purchased by stage payment and profited from upon completion when investors are flipping the real estate right back into the market. Those with more substantial sums of money to invest are generally drawn to either the commercial property sector in Bucharest or Romania's burgeoning tourism market.

Opportunities in Romania's tourism market exist along the country's stunning and as yet undeveloped 225km of Black Sea coastline and also in Romania's quality but as yet little known winter sport resorts. Accommodation in these locations is required to let out to tourists and a growing number of British, Russian and eastern European citizens are also seeking second homes in these areas of Romania as well, with most preferring to purchase established but well renovated properties.

Other opportunities exist in the form of fairytale properties for sale in Transylvania with castles, medieval houses and entire farms available for sale to overseas investors looking to diversify their property portfolios and buy real estate in one of the most stunningly beautiful, romantic and ancient European countries.

If the real estate and economic expert analysis of Romania's property market potential is correct, those who buy in Romania today could be looking at the realization of 400% profit within the next ten years – this means that someone who invests as little as twenty thousand dollars today could potentially reap sixty thousand dollars profit within ten years…now that's what I call potential!

Rhiannon Williamson writes about overseas real estate investment and specialises in the analysis of property market trends and opportunities in emerging markets. To read more information about property investment in Romania click here.