What is Real Estate

Writen by Mr Jody Hudson

A Realtor has just talked to you and said, "I have a buyer for your property and I can sell it now; perhaps for more money than the price your current real estate agent has it listed for." Have you heard this or a version of this? Or, "I have a buyer for your property and I can sell it now; for Big Bucks (with an incredibly high figure named) perhaps for more money than that."

In the fiercely competitive real estate business, it is a too common practice for one real estate agent to entice a seller to re-list their property with the new Realtor. It is also against the Realtors regulatory requirements in several ways.

If the Realtor will break the rules in his own professional organization where he has been and will be for years perhaps... how honest and ethical will he be with YOU a one time relationship? Frequently, the wording used to entice is vague and the idea insinuated rather than spoken plainly – but the intent is clear. Realtor B suggests or insinuates to the seller "Get rid of Realtor A and list your property with ME as I have several buyers who will buy your property right away." As a seller you want to sell your property and for more money, right? BUT, Do you want a liar to represent you?

This practice of enticing a seller to change listing agents is more common in some places than in other places. There is another version of this which occurs when the seller communicates with several Realtors to decide which Realtor to list his property for sale with. One of those Realtors being interviewed or spoken to by the seller may offer to list the property as much as double or triple the market value in some market places. In others it may be only 2% or 5% more than the others are suggesting. Usually, with more unique properties, at least one Realtor will offer to list the property at 20-40% above market value, in order to get the business. Those are the same Realtors who, knowing the value of billboards, have signs all over the place that are erected to stay for a while. Those same Realtors may have no signs on their properly priced properties as a rule; so that they can sell those properties without splitting the commission with another Realtor in a co-brokerage arrangement. If you hear this type of language or see this type of operations from a Realtor; realize you have just connected to one of the 2% or less who are not fit to deal with and move on to another; don't let your own greed cost you dearly.

A property should be listed very close to market value or better yet, at market value. There IS such as thing as market value and that value can be found by a competent appraiser to within less than 2% and by a competent Realtor too in most cases - but not as an appraisal, as an opinion of value. Market value can also be shown with an honest comparative market analysis, done by a Realtor.

Nearly all buyers are intimately aware of market values for the type, location and price range of property they seek and buyers want property that is below market value not above it. Or at least they want a better property at market value. In other words most buyers are expert at the price range and location they have decided on and they will just ignore properties that are overpriced.

It is not only the Realtor who is isolated from factuality. Frequently the seller pushes the listing agent to put the property on the market far above the market value; in fact that is the case about 70-90% of the time, if a property is overvalued. An honest Realtor will advise the seller of the real value of his property and suggest that he list the property for sale, within 10-15% of the market value.

For a slower sale the property can be listed at or above market value. For a quicker sale, which saves monthly mortgage payments if the seller still makes payments, listing the property at or even a tiny little below market may be what the seller needs. It is the Realtors job to advise the seller honestly and then to abide by the sellers decision.

Now back to those who encourage sellers to change Realtors so that the buyers they have will buy the property. They are liars. If they really had a buyer, other than themselves, they would sell that property to the buyer right now and not dare wait to get the property relisted and risk losing the buyer as timing is everything. IF they did really have a buyer they would sell the property to that buyer now and co-broke with the sellers current Realtor. And if they say they can get more money than your current Realtor has it listed for or more than market value – then if they were not misleading, they would go ahead and sell it now for the lesser amount and be a champion to their buyer -- wouldn't they?

THINK ABOUT IT!

Copyright 2000-2005 by www.JodyHudson.com

Jody Hudson has been a Realtor for 35 years across America and in Delaware.

Source for this article is: http://www.kate-jody.com/essays/whatdidyousay.html

Writen by Srini Saripalli

In the superheated San Francisco Bay Area property market, foreclosed properties are available at as much as 40% below market value, writes Srini Saripalli.The last few months of a calendar year are considered sluggish for transacting real estate, but Silicon Valley seems to be an exception to this. Properties are appreciating rapidly at this time of the year and this year has been one of the best years for selling real estate.

Understanding the marketplace and rationalizing the escalating prices has become difficult for investors and homebuyers . At a time when real estate prices are soaring there are still many opportunities to buy properties that are 30 percent to 40 percent below market value. Foreclosures are one of the best ways to find great bargains.

So what is a foreclosure?

A foreclosure is a legal process that a lender initiates after the borrower fails to repay the loan as per the terms of the contract. The lender initiates the foreclosure process to reclaim the possession and ownership of the property. For example, let's say a borrower has a mortgage of $1 million on his property that is worth $1.5 million. Let's assume monthly payments on a $1million mortgage are about $9,000. If the borrower misses three consecutive monthly payments, then at the end of the 90th day or third month the lender will file a "Notice of Default" at the county recorder's office. This is the notice that indicates pending foreclosure proceedings. It also indicates the auction date. At this time the borrower will have the following options:

Pay off all the back payments, penalties and legal fees if any and make the loan current

As the borrower in the example has equity of $500,000 he can convert a part of that to cash by re-financing the property. Re-financing a property in foreclosure is usually difficult.

Sell the property and payoff the mortgage, provided the proceeds from the sale equal or higher than the mortgage amount.

The opportunity to buy a pre-foreclosure property opens the day the "Notice of Default" is filed. The opportunity ends on the day the property is sold at the auction. The time between these two events enables a buyer to work with the homeowner and the lender to negotiate and structure a deal that could be extremely profitable. This is the only time in the entire foreclosure process where the buyer can use conventional mortgage, hard moneylenders or creative financing techniques to buy the property.

Once a "Notice of Default" is filed it becomes public information, and usually there is a lot of competition from other investors due to this filing. Hence to avoid competition experienced investors use various farming techniques to spot owners before the "Notice of Default" is filed. Properties can also be bought in auctions at bargain prices too, but one would need cash for the purchase. Bidding in an auction sale is extremely risky and one needs lot of experience and skill.

What is the motivation of the seller?

Once a borrower defaults on a loan his credit is at serious risk. A foreclosure stays on the credit report for a minimum of seven years. This is the prime reason why people who have defaulted their payments are extremely motivated to avoid a foreclosure proceeding.

Borrowers in foreclosure are sometimes difficult to deal with, as they are confused and scared. Their self-esteem is low and they are in need of support from someone who understands the process. As a buyer your motive should always be to help them in their tough times. If any time during the transaction a seller perceives that you are taking advantage of his or her situation, he/she always walk away from the deal.

Srini Saripalli is a real estate investor and business development consultant to Fortune 500 companies. He lives in San Jose, Calif. Srini can be reached at: http://www.srinisaripalli.com

Writen by Nicole Soltau

Whenever you own a piece of land, you will be taxed for it. Whether it is commercial property or residential property, there is still a tax to pay, whether it is for a village, town, city, county, or state. Most residential private property taxes are handled on the local level, going no higher than the county. Depending on the nature of the business, it may be handled by a variety of entities, including state and federal agencies. Each specific area and state has its own way of levying property taxes.

This article is intended as real estate for beginners and will focus on property taxes as they relate to residential private property. Your Credit Union financial advisor can also provide a good deal of valuable information; call today to schedule your free consultation.

How property taxes are used. Each locale uses the revenue earned from property taxes for different purposes. It can be anything from road repairs and utility upkeep to firefighter salaries and emergency response. Most areas, however, use the money received from property taxes for school districts. Taxes are levied and then distributed to schools in a district according to the amount of money received from property taxes. This often puts homeowners in a bind, as most of them want quality education for children, but are reluctant to vote to pass measures that will result in a property tax increase.

How property taxes are determined. Before buying a home, it is important for real estate beginners to understand how the amount you pay in property taxes is decided upon. Everyone pays a different amount, depending upon how much a home is worth. The tax rate for an area is the same throughout that area, but due to varying home values, the property tax you pay may be a little higher or lower than your neighbors.

If the property tax rate in your area is 9 percent, and your home is assessed at 250,000 dollars, your yearly property tax would be 22,500 dollars. If your neighbor's home were only assessed at 235,000 dollars, he or she would pay 21,150 dollars in taxes per year. Many areas have specified periods of time required for a new assessment. Most places require a new assessment every five to seven years. This means that your taxes could go up or down as your property value changes.

What goes into a property assessment? There are some guidelines assessors use when determining the value of your home. By being acquainted with these, you will be more likely to understand why your home has been given a certain value. Here are the most common benchmarks taken into consideration when determining a home's value.

• Sale price of similar properties in the area: the assessor will know how much other homes in your immediate area are selling for, and will assess your house to reflect the value of the neighborhood.

• Property's historical value: records of the property's value through the years will help the assessor determine whether the home's value keeps with current trends, and whether the home increases in value over time as a general rule.

• Cost of replacing the property: it is possible to determine how much the materials to replace the property, or to add improvements to increase value, would cost. This can figure into the value of the property.

• Potential value of the property if it is used to make money: many people use their property as income through rental or sale, and this value can be used to help the assessor decide how much he or she should value your property for.

Disputing an assessment. Because home values are subjective, it is possible to dispute a value. You can speak with neighbors and realtors to discover what homes in the area are valued at. Recent home buyers and sellers can give you a good idea of what others are paying in property taxes. Visit your tax board or the local tax assessment office to find out what the procedures are for dispute an assessment you feel is unfair.

Paying your property taxes. As a real estate beginner, you want to be sure that you are paying the taxes on your property. There are a number of ways to do this, including paying to the tax commission quarterly or yearly. However, the simplest way to pay your taxes is to have them integrated into your home loan. They can be added to your monthly mortgage payment, making it a relatively hassle-free way to make sure everything is taken care of.

With a little savvy, even a real estate beginner can have a good handle on what it takes to get a fair value assessment and know the ins and outs of paying property taxes.

Nicole Soltau is the President and Founder of CreditUnionRate.com.
The Leading Credit Union Directory.
Search, Find, Join.
http://CreditUnionRate.com

Writen by Casey Coke

Although most widely known as the Dinosaur Capitol of Texas and for its travel and tourism appeal, Glen Rose, Texas is quickly gaining a reputation as a highly sought after city to live in. As recently as 2004, Glen Rose was voted as America's Dream Town, an honor bestowed upon the city that best exemplifies small town values, civic pride and embraces its heritage. As a result of the town's recent exposure and its proximity to the Dallas/ Fort Worth Metroplex, families and retirees are flocking to this picturesque small town located 50 miles southwest of Fort Worth and snatching up real estate at a rapid pace.

A recent story from the Journal of the Real Estate Center of Texas A&M noted that the demand of exurban housing projects, which are housing projects in rural areas that have convenient access to major urban areas as well as attractive terrain, are on the rise. Glen Rose is a city that is reaping the benefits of this growing real estate trend.

Marilyn Phillips of Sunrise Properties states, "Many times as a realtor it is my job to sell someone on the town or community. I am fortunate in that respect. Glen Rose easily sells itself. When you add excellent schools, wonderful people, proximity to the metroplex and quality of life to the great location, you see why people love it here and want to live here."

The Real Estate Center of Texas A&M (recenter.tamu.edu) also notes that the groups leading this charge to the exurban areas are retirees, second homebuyers and the largest group- nonlocal, suburban working families. Developers of the exurban communities report that this group is generally seeking a lifestyle change. They are disenchanted with the suburbs, which they feel are too dense and "cookie cutter", with congested roads, dangerous schools and too complex quality of life. They want a peaceful rural life in a country chic setting.

Hank Jones from Quad J Realty adds, "The real estate market in Glen Rose is definitely on the rise, especially among families coming here from the big city. Aside from the fact that Glen Rose is the gateway to the Texas hill country and we have these great rolling hills and clean, clear rivers, families are moving here for the fantastic school system and the incredibly low crime rate." Mr. Jones goes on to state, "Our retirement population has also been on the increase. We are seeing the retirees coming to Glen Rose because of the Squaw Valley Golf Course, which is rated as one of the top 10 public courses in Texas and because of our new medical facility, which has some of the finest medical technology available."

Its not only realtors who are enjoying the rise in the areas popularity, but builders are also experiencing heavy workloads trying to keep up with the real estate demands.

Jim Gartrell, owner of Jim Gartrell Builders, says he has seen consistent, steady growth over the past few years in terms of new homes built. One trend he has noticed is that people are buying several acres of land at a time, but are not doing anything with it.

"With the Glen Rose real estate selling so quickly, a lot of people are buying land now for use later in life for things like retirement or to pass along to children" states Mr. Gartrell. One such example is a developing subdivision just outside of town called Cheyenne Hills Estates where tracts of multiple acreage are being bought up quickly.

Another appeal to people moving to Glen Rose is the style of homes that are being built. Mr. Gartrell refers to them as "hill country" style homes. These homes are characterized by rock facades, wrap around limestone porches and metal roofs. An excellent example of this style is on one of the local hotels. The Dinosaur Valley Inn and Suites (www.dinosaurvalleyinn.com), which was featured in Southern Living magazine, was built by Jim Gartrell builders and features all of the classic elements of the "hill country" style home, but on a larger scale, and lends a down home charm to the facility and provides an excellent example of the style of homes in Glen Rose. For visitors interested in seeing this hotel, it is located directly adjacent to the new expo center.

For an area of its size, Glen Rose and the rest of Somervell County stand tall in the great state of Texas. There are really no other towns of similar size that can compare to the amenities, attractions, entertainment and relative location that Glen Rose boasts. For those reasons and many more it is clear why real estate in Glen Rose continues to be a hot commodity.

For more real estate information contact Marilyn Phillips at www.sunriseproperties.net or contact Hank Jones at www.c21quadj.com.

For builder information contact Jim Gartrell Builders at 254-897-4063.

To learn more about Glen Rose, Texas visit www.glenrosearea.com.

Casey Coke is a writer for Glenrosearea.com, a travel and tourism website for Glen Rose, TX and the surrounding communities.

Writen by Andrew Larder

Interested in investing somewhere other than your back yard?

Management companies have made it as easy to have a revenue property across the world as it is to have it across the street. You don't want to be collecting rents and plunging the toilets no matter WHERE it is!

Different laws in different countries means some research is definitely in order. Some countries don't allow you to own the land, you have to lease it. Check on title insurance to make SURE you really own it.

And just as people have bought swamp land in the United States, you need to actually VISIT your property - look at it, make sure that it is in a good area, and looks to be a good investment.

Pictures can be VERY deceiving, and if your lot is next to the city dump, for example - it'll be hard to make a profit on it! Put at least as much effort into buying a $200,000 piece of real estate as you would into buying a $10,000 used car. You'd definitely want to see it, inspect it closely, go for a spin around the block and see how it performs on the highway. Okay, that's tough to do with a piece of land, but take a walk around, get in an inspector, ask the neighbours what they think.

Probably the most important aspect of buying a property in another country is the managment company. If it is rented out, and rents rise, over time, the property will pay for itself, and pay off the mortage. In other words, with rising rents, you basically get revenue properties for free, over time. The renters pay your mortgage.

BUT.....

If you have tenant troubles, people moving in and out and big costs for re-renting, repair and renovation on an ongoing basis, let alone outright destruction - you may never see that happy day when the mortgage is paid off and some appreciation has occurred. The management company is either really good, concerned about your investment, or it is careless. Over time, THIS is the most crucial part of your investment, and should be VERY closely looked at. Talking to other clients is a quick way to get a read on their performance, and you should ask for these types of references.

Any real estate investment needs to be held on a long term basis to allow rising rents and rising property values to almost automatically make you money. A short term hold goes against these trends, especially when you factor in realtor fees, and development company profits if it is new construction. Make sure that it will truly be a "hands off" investment, and hopefully it will yield some headache free profits!

Andrew Larder International Real Estate Investing, Investments

To receive free info on no or low money down real estate investing, send a blank email to: monopolyinvestments@getresponse.com

Writen by Thomas Kish

My system teaches people that the proper use of credit is the fastest way to speed up your profits in real estate investing.

And you can use this system no matter what your own credit score is.

What you must understand is how to use a newly created business name to go out and get business credit cards and lines of credit for your real estate investing activities.

My step by step program shows you exactly how to do this the right way. So you can get the cash you need to buy and flip property for a quick profit.

Some people wonder why it is so good to get cash for real estate investing with this trick.

Well here are a few reasons -

1. No matter how much cash I get with these business cards, this debt has no impact on my credit score. It is invisible and will not show up on anyone's personal credit report.

2. Low cost to access cash from business lines of credit, unlike your typical refinance charges.

3. I want to defer any expense I can with a business credit card until the property is sold, even if that is not for 5 years.

4. Everyone gets a much better cash on cash return when you defer expenses with business credit.

5. In many cases my mortgage forces me to make a principal payment every month. So now I can return that cash flow back into my pocket without costly refinance charges every 2 years.

6. And finally, I can triple my cash flow every month, which lets me purchase more great real estate 3 times faster, and retire in luxury 20 years faster than the average american!

HERE ARE THE TRICKS ---------------------------

But, you need to know some of the dirty tricks the credit card companies try to pull on you when you are following this system.

---some business lenders will randomly pull credit to see if you are personally carrying a lot of debt as it relates to your available credit. If you do not keep most of your debt shifted to the name of a new business you create you can get a nasty surprise.

The bank will sometimes raise your interest rate when you begin to carry a lot of debt in your own name. This is another great reason to keep debt out of your own name when possible.

---some business credit cards will lock down your line of credit during the first month you start using it while they wait for you to make the first payment. So if you think you will need all the cash before the first monthly payment is made, just take all the cash out at once when you get the card.

---and my favorite way to use these cards that no one else talks about is to transfer an existing personal credit card balance onto a new business card you just received.

You can call up the bank that issues you a brand new business credit card and tell them you want to make a balance transfer. Then you can give them the account number for one of your maxed out personal credit cards and they will put that debt into the business credit card.

This is the best way to make your personal debt disappear from public records and improve your personal credit score!!!

Of course you must still pay this debt back the same as if it was still in your personal name. But when it's on your business credit card it's invisible and your credit score will jump up!

------------------- --------------------

And see why my HOW TO BEAT THE SYSTEM in real estate investing, is the ultimate NO MONEY DOWN system that will make you rich quickly.

When you buy real estate with cash from a business line of credit you are a CASH BUYER, but you have not used any of your own money for the down payment.

My system shows you how to do this no matter WHAT YOUR CREDIT SCORE is!

Don't limit your real estate investing to gimmicks like creative financing.

Buy anything you want with real CASH. Just go out and get it using my HOW TO BEAT THE SYSTEM in real estate investing.

Sincerely, Thomas Kish
President of CashFlowExperts.Biz

Tom is a full time real estate investor. He has purchased and sold over 5 million dollars worth of real estate in less than 2 years.

Tom is an expert in using new business lines of credit instead of cash to buy real estate. There is no one else teaching anything like this SYSTEM of real estate investing!

http://cashflowexperts.biz/cmd.asp?ad=137545

Writen by Jacqui O'Brien

The majority of people in the UK who are looking to move house use the internet to find properties for sale. So it makes sense to ensure that your property is on the web if you want to sell. If you are with an estate agent, most will list your property on one of the major property portals. However more and more people, tired of paying thousands of pounds to estate agents who do little work, are voting with their feet and deciding to sell their home by themselves.

There are over 100 websites in the UK where you can advertise your home for sale, ranging from a basic text listing to a full internet estate agent service. However most will have a limit to the amount of information which you can add and the number of photographs which you can include. Often this will be much less information than in an estate agent's details.

The answer is to create your own webpage to sell your house. You don't have to be a great computer expert, and you could do it all in an evening, using this step by step plan.

Where can I host my webpage?

Maybe you have some free webspace offered by your Internet Service Provider. Now is the time to use it! If you know a little about web design you are very lucky, as all you need is some very basic knowledge of HTML and you are ready to make an effective webpage. If not, you can use a word processing package such as Microsoft Word which will convert a document to a webpage.

If you don't have webspace you can use the free webspace offered by well-known search engines such as Lycos Tripod or Yahoo Geocities. Most will have website building packages too, so that you can simply enter the information into a template and you have an instant website.

Write a concise title for your page

Write one sentence using as few words as possible which sum up your property, for example 'For Sale: Three-bedroom semi-detached house in London'. Use this as your page title.

Prepare your details

However you decide to create your webpage, prepare your details beforehand using word processing package. You can do this in your own time, it will check your spelling for you and you won't lose all your work if your browser crashes. Measure all your rooms and give the measurements in both metric and imperial. Remember to add anything interesting or unusual about the house, special about its location and mention if it is in catchment for a good school.

Take your photos

Use a digital camera to take your pictures if at all possible. You can take prints and scan them but there is always a loss of quality. Photograph the front of your house and all the best features, the nicest rooms, the best corner of the garden, the great view if you have one. Take loads. Now choose only the best few pictures and make the image sizes as small as possible. If your image manipulation software allows you to optimise for the web, do it, it makes a very big difference to download times.

Put it all together

Now put together your main webpage. Use a simple design with a pale background, dark text and go easy on the animated icons! You want people to look at your house, not be distracted by a garish design. You also want it to load fast so only put the best picture of the front of your house on this page. Add your written details. Put extra photos on separate pages, only a few to a page. Use informative links, for example 'Click here for pictures of our large mature garden' is good, 'more pictures' won't invite many people to look.

Give them even more!

There are several websites which offer maps of the UK which you can link to. Help prospective buyers find you easily by adding this to your page. If you know a bit about technical drawing you could make your own floor plans and include them in the website – this would be a real bonus as they are still quite unusual. Finally if you are a wizard with a video camera you could have a go at making your own virtual tour.

Finally, add your contact details

Now include your phone number and an email address. You may want to use a free 'disposable' email address for this, because putting your email address on the web will tend to attract spam. Alternatively there are many websites that will produce a scrambled version of your email address which will work perfectly but cannot be read by spammers.

Now all you need to do is upload your website. You can submit the website to search engines and don't forget to include the website address (URL) with your emails, flyers, newspaper advertisements, on your 'For Sale' sign, and link to it from FSBO websites.

Jacqui O'Brien is the owner of http://www.ahomeofmyown.co.uk the directory of UK Private Seller property websites where you can also list your own home webpage for free.