Real Estate

Home Buyers and Sellers Real Estate Glossary

2010-09-18T11:03:00.000-07:00

By Mark Nash

Every business has it's jargon and residential real estate is no exception. Mark Nash author of 1001 Tips for Buying and Selling a Home shares commonly used terms with home buyers and sellers.

1031 exchange or Starker exchange: The delayed exchange of properties that qualifies for tax purposes as a tax-deferred exchange.

1099: The statement of income reported to the IRS for an independent contractor.

A/I: A contract that is pending with attorney and inspection contingencies.

Accompanied showings: Those showings where the listing agent must accompany an agent and his or her clients when viewing a listing.

Addendum: An addition to; a document.

Adjustable rate mortgage (ARM): A type of mortgage loan whose interest rate is tied to an economic index, which fluctuates with the market. Typical ARM periods are one, three, five, and seven years.

Agent: The licensed real estate salesperson or broker who represents buyers or sellers.

Annual percentage rate (APR): The total costs (interest rate, closing costs, fees, and so on) that are part of a borrower's loan, expressed as a percentage rate of interest. The total costs are amortized over the term of the loan.

Application fees: Fees that mortgage companies charge buyers at the time of written application for a loan; for example, fees for running credit reports of borrowers, property appraisal fees, and lender-specific fees.

Appointments: Those times or time periods an agent shows properties to clients.

Appraisal: A document of opinion of property value at a specific point in time.

Appraised price (AP): The price the third-party relocation company offers (under most contracts) the seller for his or her property. Generally, the average of two or more independent appraisals.

"As-is": A contract or offer clause stating that the seller will not repair or correct any problems with the property. Also used in listings and marketing materials.

Assumable mortgage: One in which the buyer agrees to fulfill the obligations of the existing loan agreement that the seller made with the lender. When assuming a mortgage, a buyer becomes personally liable for the payment of principal and interest. The original mortgagor should receive a written release from the liability when the buyer assumes the original mortgage.

Back on market (BOM): When a property or listing is placed back on the market after being removed from the market recently.

Back-up agent: A licensed agent who works with clients when their agent is unavailable.

Balloon mortgage: A type of mortgage that is generally paid over a short period of time, but is amortized over a longer period of time. The borrower typically pays a combination of principal and interest. At the end of the loan term, the entire unpaid balance must be repaid.

Back-up offer: When an offer is accepted contingent on the fall through or voiding of an accepted first offer on a property.

Bill of sale: Transfers title to personal property in a transaction.

Board of REALTORS® (local): An association of REALTORS® in a specific geographic area.

Broker: A state licensed individual who acts as the agent for the seller or buyer.

Broker of record: The person registered with his or her state licensing authority as the managing broker of a specific real estate sales office.

Broker's market analysis (BMA): The real estate broker's opinion of the expected final net sale price, determined after acquisition of the property by the third-party company.

Broker's tour: A preset time and day when real estate sales agents can view listings by multiple brokerages in the market.

Buyer: The purchaser of a property.

Buyer agency: A real estate broker retained by the buyer who has a fiduciary duty to the buyer.

Buyer agent: The agent who shows the buyer's property, negotiates the contract or offer for the buyer, and works with the buyer to close the transaction.

Carrying costs: Cost incurred to maintain a property (taxes, interest, insurance, utilities, and so on).

Closing: The end of a transaction process where the deed is delivered, documents are signed, and funds are dispersed.

CLUE (Comprehensive Loss Underwriting Exchange): The insurance industry's national database that assigns individuals a risk score. CLUE also has an electronic file of a properties insurance history. These files are accessible by insurance companies nationally. These files could impact the ability to sell property as they might contain information that a prospective buyer might find objectionable, and in some cases not even insurable.

Commission: The compensation paid to the listing brokerage by the seller for selling the property. A buyer may also be required to pay a commission to his or her agent.

Commission split: The percentage split of commission compen-sation between the real estate sales brokerage and the real estate sales agent or broker.

Competitive Market Analysis (CMA): The analysis used to provide market information to the seller and assist the real estate broker in securing the listing.

Condominium association: An association of all owners in a condominium.

Condominium budget: A financial forecast and report of a condominium association's expenses and savings.

Condominium by-laws: Rules passed by the condominium association used in administration of the condominium property.

Condominium declarations: A document that legally establishes a condominium.

Condominium right of first refusal: A person or an association that has the first opportunity to purchase condominium real estate when it becomes available or the right to meet any other offer.

Condominium rules and regulation: Rules of a condominium association by which owners agree to abide.

Contingency: A provision in a contract requiring certain acts to be completed before the contract is binding.

Continue to show: When a property is under contract with contingencies, but the seller requests that the property continue to be shown to prospective buyers until contingencies are released.

Contract for deed: A sales contract in which the buyer takes possession of the property but the seller holds title until the loan is paid. Also known as an installment sale contract.

Conventional mortgage: A type of mortgage that has certain limitations placed on it to meet secondary market guidelines. Mortgage companies, banks, and savings and loans underwrite conventional mortgages.

Cooperating commission: A commission offered to the buyer's agent brokerage for bringing a buyer to the selling brokerage's listing.

Cooperative (Co-op): Where the shareholders of the corporation are the inhabitants of the building. Each shareholder has the right to lease a specific unit. The difference between a co-op and a condo is in a co-op, one owns shares in a corporation; in a condo one owns the unit fee simple.

Counteroffer: The response to an offer or a bid by the seller or buyer after the original offer or bid.

Credit report: Includes all of the history for a borrower's credit accounts, outstanding debts, and payment timelines on past or current debts.

Credit score: A score assigned to a borrower's credit report based on information contained therein.

Curb appeal: The visual impact a property projects from the street.

Days on market: The number of days a property has been on the market.

Decree: A judgment of the court that sets out the agreements and rights of the parties.

Disclosures: Federal, state, county, and local requirements of disclosure that the seller provides and the buyer acknowledges.

Divorce: The legal separation of a husband and wife effected by a court decree that totally dissolves the marriage relationship.

DOM: Days on market.

Down payment: The amount of cash put toward a purchase by the borrower.

Drive-by: When a buyer or seller agent or broker drives by a property listing or potential listing.

Dual agent: A state-licensed individual who represents the seller and the buyer in a single transaction.

Earnest money deposit: The money given to the seller at the time the offer is made as a sign of the buyer's good faith.

Escrow account for real estate taxes and insurance: An account into which borrowers pay monthly prorations for real estate taxes and property insurance.

Exclusions: Fixtures or personal property that are excluded from the contract or offer to purchase.

Expired (listing): A property listing that has expired per the terms of the listing agreement.

Fax rider: A document that treats facsimile transmission as the same legal effect as the original document.

Feedback: The real estate sales agent and/or his or her client's reaction to a listing or property. Requested by the listing agent.

Fee simple: A form of property ownership where the owner has the right to use and dispose of property at will.

FHA (Federal Housing Administration) Loan Guarantee: A guarantee by the FHA that a percentage of a loan will be underwritten by a mortgage company or banker.

Fixture: Personal property that has become part of the property through permanent attachment.

Flat fee: A predetermined amount of compensation received or paid for a specific service in a real estate transaction.

For sale by owner (FSBO): A property that is for sale by the owner of the property.

Gift letter: A letter to a lender stating that a gift of cash has been made to the buyer(s) and that the person gifting the cash to the buyer is not expecting the gift to be repaid. The exact wording of the gift letter should be requested of the lender.

Good faith estimate: Under the Real Estate Settlement Procedures Act, within three days of an application submission, lenders are required to provide in writing to potential borrowers a good faith estimate of closing costs.

Gross sale price: The sale price before any concessions.

Hazard insurance: Insurance that covers losses to real estate from damages that might affect its value.

Homeowner's insurance: Coverage that includes personal liability and theft insurance in addition to hazard insurance.

HUD/RESPA (Housing and Urban Development/Real Estate Settlement Procedures Act): A document and statement that details all of the monies paid out and received at a real estate property closing.

Hybrid adjustable rate: Offers a fixed rate the first 5 years and then adjusts annually for the next 25 years.

IDX (Internet Data Exchange): Allows real estate brokers to advertise each other's listings posted to listing databases such as the multiple listing service.

Inclusions: Fixtures or personal property that are included in a contract or offer to purchase.

Independent contractor: A real estate sales agent who conducts real estate business through a broker. This agent does not receive salary or benefits from the broker.

Inspection rider: Rider to purchase agreement between third party relocation company and buyer of transferee's property stating that property is being sold "as is." All inspection reports conducted by the third party company are disclosed to the buyer and it is the buyer's duty to do his/her own inspections and tests.

Installment land contract: A contract in which the buyer takes possession of the property while the seller retains the title to the property until the loan is paid.

Interest rate float: The borrower decides to delay locking their interest rate on their loan. They can float their rate in expectation of the rate moving down. At the end of the float period they must lock a rate.

Interest rate lock: When the borrower and lender agree to lock a rate on loan. Can have terms and conditions attached to the lock.

List date: Actual date the property was listed with the current broker.

List price: The price of a property through a listing agreement.

Listing: Brokers written agreement to represent a seller and their property. Agents refer to their inventory of agreements with sellers as listings.

Listing agent: The real estate sales agent that is representing the sellers and their property, through a listing agreement.

Listing agreement: A document that establishes the real estate agent's agreement with the sellers to represent their property in the market.

Listing appointment: The time when a real estate sales agent meets with potential clients selling a property to secure a listing agreement.

Listing exclusion: A clause included in the listing agreement when the seller (transferee) lists his or her property with a broker.

Loan: An amount of money that is lent to a borrower who agrees to repay the amount plus interest.

Loan application: A document that buyers who are requesting a loan fill out and submit to their lender.

Loan closing costs: The costs a lender charges to close a borrower's loan. These costs vary from lender to lender and from market to market.

Loan commitment: A written document telling the borrowers that the mortgage company has agreed to lend them a specific amount of money at a specific interest rate for a specific period of time. The loan commitment may also contain conditions upon which the loan commitment is based.

Loan package: The group of mortgage documents that the borrower's lender sends to the closing or escrow.

Loan processor: An administrative individual who is assigned to check, verify, and assemble all of the documents and the buyer's funds and the borrower's loan for closing.

Loan underwriter: One who underwrites a loan for another. Some lenders have investors underwrite a buyer's loan.

Lockbox: A tool that allows secure storage of property keys on the premises for agent use. A combo uses a rotating dial to gain access with a combination; a Supra® (electronic lockbox or ELB) features a keypad.

Managing broker: A person licensed by the state as a broker who is also the broker of record for a real estate sales office. This person manages the daily operations of a real estate sales office.

Marketing period: The period of time in which the transferee may market his or her property (typically 45, 60, or 90 days), as directed by the third-party company's contract with the employer.

Mortgage banker: One who lends the bank's funds to borrowers and brings lenders and borrowers together.

Mortgage broker: A business that or an individual who unites lenders and borrowers and processes mortgage applications.

Mortgage loan servicing company: A company that collects monthly mortgage payments from borrowers.

Multiple listing service (MLS): A service that compiles available properties for sale by member brokers.

Multiple offers: More than one buyers broker present an offer on one property where the offers are negotiated at the same time.

National Association of REALTORS® (NAR): A national association comprised of real estate sales agents.

Net sales price: Gross sales price less concessions to the buyers.

Off market: A property listing that has been removed from the sale inventory in a market. A property can be temporarily or permanently off market.

Offer to purchase: When a buyer proposes certain terms and presents these terms to the seller.

Office tour/caravan: A walking or driving tour by a real estate sales office of listings represented by agents in the office. Usually held on a set day and time.

Parcel identification number (PIN): A taxing authority's tracking number for a property.

Pending: A real estate contract that has been accepted on a property but the transaction has not closed.

Personal assistant: A real estate sales agent administrative assistant.

Planned unit development (PUD): Mixed-use development that sets aside areas for residential use, commercial use, and public areas such as schools, parks, and so on.

Preapproval: A higher level of buyer/borrower prequalification required by a mortgage lender. Some preapprovals have conditions the borrower must meet.

Prepaid interest: Funds paid by the borrower at closing based on the number of days left in the month of closing.

Prepayment penalty: A fine imposed on the borrower by the lender when the loan is paid off before it comes due.

Prequalification: The mortgage company tells a buyer in advance of the formal mortgage application, how much money the borrower can afford to borrow. Some prequalifications have conditions that the borrower must meet.

Preview appointment: When a buyer's agent views a property alone to see if it meets his or her buyer's needs.

Pricing: When the potential seller's agent goes to the potential listing property to view it for marketing and pricing purposes.

Principal: The amount of money a buyer borrows.

Principal, interest, taxes, and insurance (PITI): The four parts that make up a borrower's monthly mortgage payment. Private mortgage insurance (PMI): A special insurance paid by a borrower in monthly installments, typically of loans of more than 80 percent of the value of the property.

Professional designation: Additional nonlicensed real estate education completed by a real estate professional.

Professional regulation: A state licensing authority that oversees and disciplines licensees.

Promissory note: A promise-to-pay document used with a contract or an offer to purchase.

R & I: Estimated and actual repair and improvement costs.

Real estate agent: An individual who is licensed by the state and who acts on behalf of his or her client, the buyer or seller. The real estate agent who does not have a broker's license must work for a licensed broker.

Real estate contract: A binding agreement between buyer and seller. It consists of an offer and an acceptance as well as consideration (i.e., money).

REALTOR®: A registered trademark of the National Association of REALTORS® that can be used only by its members.

Release deed: A written document stating that a seller or buyer has satisfied his or her obligation on a debt. This document is usually recorded.

Relist: Property that was listed with another broker but relisted with a current broker.

Rider: A separate document that is attached to a document in some way. This is done so that an entire document does not need to be rewritten.

Salaried agent: A real estate sales agent or broker who receives all or part of his or her compensation in real estate sales in the form of a salary.

Sale price: The price paid for a listing or property.

Seller (owner): The owner of a property who has signed a listing agreement or a potential listing agreement.

Showing: When a listing is shown to prospective buyers or the buyer's agent (preview).

Special assessment: A special and additional charge to a unit in a condominium or cooperative. Also a special real estate tax for improvements that benefit a property.

State Association of REALTORS®: An association of REALTORS® in a specific state.

Supra®: An electronic lockbox (ELB) that holds keys to a property. The user must have a Supra keypad to use the lockbox.

Temporarily off market (TOM): A listed property that is taken off the market due to illness, travel, needed repairs, and so on.

Temporary housing: Housing a transferee occupies until permanent housing is selected or becomes available.

Transaction: The real estate process from offer to closing or escrow.

Transaction management fee (TMF): A fee charged by listing brokers to the seller as part of the listing agreement.

Transaction sides: The two sides of a transaction, sellers and buyers. The term used to record the number of transactions in which a real estate sales agent or broker was involved during a specific period.

24-hour notice: Allowed by law, tenants must be informed of showing 24 hours before you arrive.

Under contract: A property that has an accepted real estate contract between seller and buyer.

VA (Veterans Administration) Loan Guarantee: A guarantee on a mortgage amount backed by the Department of Veterans Affairs.

Virtual tour: An Internet web/cd-rom-based video presentation of a property.

VOW's (Virtual Office web sites): An Internet based real estate brokerage business model that works with real estate consumers in same way as a brick and mortar real estate brokerage.

W-2: The Internal Revenue form issued by employer to employee to reflect compensation and deductions to compensation.

W-9: The Internal Revenue form requesting taxpayer identification number and certification.

Walk-through: A showing before closing or escrow that permits the buyers one final tour of the property they are purchasing.

Will: A document by which a person disposes of his or her property after death.

Real Estate Stories that Show You How!

2010-09-18T11:01:00.000-07:00

By Dan Auito

Let's begin easing you out of the pits. I mean, comfort zone! I'm going to slowly and methodically give you as many little sparks and insights to the relatively simple ways that ordinary people use real estate to achieve extraordinary results.

Stories are the best spark plugs. They let you casually observe from a safe, secure and understandable view point. I will write to answer most of the questions that I feel I myself would ask if I was reading what you are about to read.

I want you to know something from the very start of this report and that something is this: I care about you and I sincerely mean that. I really do want you to move to a new comfort zone, one that is pleasurable and free from fear. A place where you realize you have the power to achieve greater things than you currently can imagine.

It's possible for you to start being a more powerfully directed purpose-driven individual who is well organized and on track to higher achievement. You will change and grow, slowly and steadily with every page you read. With every thought and insight you gain, your desire and courage will grow as well.

Napoleon Hill wrote one of the greatest books of all time. It's called "Think and Grow Rich." The essence of that book, the secret it reveals time and again is this: you must develop a burning desire.

Don't put this book down thinking the previous statement is cliché and that you already knew that! I am simply leading you to my next point, the next point being is - your desire needs a starting point. So to start developing desire, my secret is you must have a purpose. Why do you want to pursue real estate? I know what you're thinking: to make money, to have security, to feel useful and appear successful. Good points. I agree you can have all of that and more if that is what you desire.

Now here is something that comes before any of those things you desire. What is the purpose of all those things? Purpose, purpose, purpose...you need to first define purpose before you get the things. My purpose, or so I thought early in my career, was to move up to a nicer house and have my first house become my first rental property. When I moved up to the next one, I quickly learned as soon as I rented it out, I was in some way responsible for creating happiness and security in the life of another person that was of no relation to me.

It soon was evident to me how the choices I made in choosing that first property either would help me or hurt me in my quest to succeed in the real estate investment business.

All of it is cumulative, everything you do and how you do it adds up. It compounds itself and it either makes your life easier or more difficult. I am going to give you experiences that you can learn from that will make your life easier; I am going to show you how. That is my purpose.

The book that gave me the unknowing courage to take my first steps in real estate was a book called "How I Turned $1000 into $3 Million in real estate in my spare time" by William Nickerson. He was a master storyteller and by osmosis, after reading his book, I found myself gravitating towards the real estate classified section of my Sunday paper.

Eventually I leapt and my life had changed. It was an FHA foreclosure, a two-bedroom, one-bath home with a built-in, screened-in pool, with a Jacuzzi and a built-in sprinkler system. I bought it for $46,000 and used the HUD 203K rehab program to fix it up. I spent $16,000 to update and make repairs. They then gave me one loan for a total of $62,000. It took me three months to complete it and I was in; I had done it!

My life changed, I learned, I took the leap. From then on I had confidence. I had already had my first home but now I had two. Well, I was in the Coast Guard and wouldn't you know, three months later we moved. Uncle Sam took me out of St. Petersburg, Florida and dropped me in Kodiak, Alaska, for my next tour of duty.

Well guess what? I was armed with ambition, courage, confidence and just enough knowledge to be considered dangerous, so I bought a duplex as soon as I came ashore on Kodiak Island. Now I had three dwellings and my relationships and responsibilities were growing with my new tenants counting on me to provide a clean, functional and pleasing environment for them to exist in.

It looked like this: My mother rented my first house and an elderly couple rented the second one and my duplex came with an existing tenant who was a hospital administrator, so I was lucky. I was able to ease myself into the role of landlord without getting burned early in my career. I now had two houses and a duplex in the span of about one year. My brothers and some other family members took notice and were pretty well dumbfounded.

They couldn't figure out how I had, all of a sudden, become a real estate wizard.

It felt good to make that change in so short a time.

I got that from reading a book! And that my friend is how you are going to do the majority of everything you do in real estate, by reading and taking steps towards duplicating the success of others in a repeatable pattern. The key is to understand that you can do it if you read the right books and apply the very basic formulas that are handed to you.
There lies in: Magic Bullets in Real Estate

This is a common man or woman's real estate manual. William Nickerson never gave me anything so easy as "Magic Bullets!" So I learned trial by fire and it has been very gratifying. I've since went on to collect 17 properties, 23 tenants, 2 real estate licenses in Florida and Alaska, an assistant appraiser's certificate and over a hundred books on real estate. I just kept learning and growing and gaining momentum for the last 13 years. I am still in the Coast Guard, too, and I work at Alaska One Realty in my spare time. In two more years, I will be retired at the ripe old age of 42. Sounds like a sort of fairytale, doesn't it? Don't let me fool you. It's hard work and I'm still not a millionaire, but I want you to have the truth, so I will be honest with you every step of the way.

I know why I am not a millionaire and here is why. I would periodically sell property that was going up in value and paying for itself through the rent checks. But being in the Coast Guard would dislocate me every four years, so I found myself selling out in order to avoid being what is called "an absentee landlord."

This is an important lesson for you. It has prevented me from becoming a millionaire up to this point. The lesson is: find an area on this planet that you could and will live in, and stay close to it. Don't move more than 10 miles from your farm area. The farm area is where all your properties are located. Long distance "land lording" is tough! It can be done but you lose the ability to control the situation compared to if you were there. I've served my country and saved people's lives, so for me it has not been in vain. I have no regrets but if you don't have to leave your area of expertise, don't!

The networks you build and the contacts you build, in the process of "doing" real estate, are so valuable that when they are no longer at your disposal, it puts you at a serious disadvantage.

Not to mention when you move you have to acclimate yourself to an entirely different market, build new trust-based relationships and start all over again. It's like a treadmill you'll be running and running, however it gets you nowhere.

I've used it to my advantage. I have been forced to accelerate my abilities to rapidly duplicate my success whenever I am moved, but it is still an uphill battle. My point: Don't move too far from your farm or your network of bankers, appraisers, carpenters, tradesman, real estate, friends, tenants and so on. Once you have the skill you can duplicate your success anywhere you go but if you don't have to go...enough said on that!

I like to say, "Don't sell the goose to get the eggs." What that means is if you need money to buy more property, use equity lines from other property to do it. You will get the same amount of money or more by using an equity line as if you sold it. However, you get to keep the asset and the money! I go into this in "Magic Bullets," so I won't drone on here. Just know you don't have to sell your property to get the cash out of them.

So here we are. You know a little bit about me and you may have picked up a nugget or two. Let's find a few more.

There once was a man who wanted to buy some investment property, so what he did was look at growth patterns. You should do this too, by going to your city's planning and zoning department. You can see growth patterns and you definitely want to buy property that stands in the way of growth.

This is how he used what he learned. He saw that city planners had decided that a new artery (highway) would benefit their city by creating linkage to another city about 100 miles away, so being a smart investor he only went as far as a ten mile limit to be able to be close to his investment.

Now on average, new growth will radiate out from existing prosperous cities in the direction it is planned at a rate of about one mile per year. So our smart investor had a 10 - 12 year plan to cash out in about 10 - 12 years.

What he did was buy, I believe, 10 acres of commercially zoned property very cheaply because there was no demand at the time. He bought it, fenced it in, put up some lights and a gate, and held onto that little bugger. Now that new highway was coming his way and the good folks, through their taxes, were paying to have it built.

It didn't take long for the heavy equipment to start cutting a swath towards his fenced-in storage facility and when they got close enough to him, he started renting out a secure area for everything, from road cones to generators to backhoes. You name it - it was stored there. This more than paid his land off.

Now the men and their equipment eventually moved on further down the trail but they left a finished highway behind them. And guess what? Low and behold, people started driving on it, and then started buying property to build houses on to get away from the city. Since the new highway was a straight shot into town, ten miles out was breeze.

Well, of course, here comes the herd and everyone is just populating the whole darned area. And within ten years, residential housing surrounds Mr. Investor, and can you guess what he's got? Yep, a prime piece of commercial property, 10 acres large.

So in accordance with his 10-12 year plan, he sells his storage facility to make room for the new office/business park complex for over $2,000,000. That, my friend, is vision, and the sooner you get a clear picture of what it is that you want to specialize in, the sooner you can retire to the islands.

How hard was that? Don't tell me you can't do it, you can! I'm here to help you. I'm going to give you secrets no one else dares. Do you ever wonder why people won't tell you the secrets? Of course you already know this but I'll tell you anyway. It is because they are operating on a scarcity mentality, as though there won't be any left for them. Or if learn something and act on it, you will get ahead and have a great life. Well, misery loves company and silent oppression is the rule.

Here's a little story that poor quality real estate agents won't appreciate either but I'm going to tell it to you anyway. The reason I can tell it is because there are some great real estate agents out there who absolutely don't fear what I am about to tell you and would let you know it if they were in my position.

Here's the deal: Some agents want to be like the Wizard of Oz. They want to create the appearance of marketing and transacting real estate as being technical and very legal, a deep dark mystery. Well, it's not! The truth be told, you can write a contract on a napkin and it would stand up in court. I will emphasize here that you write on that napkin along with the terms of your agreement, "The terms set forth on this here napkin are subject to my attorney's approval."

An attorney will cover you completely for around $750.00. Prices may vary, however that is an average home transaction. There is a lot I am leaving out here but my point is this: If you own property, you can sell it anyway you want. "Magic Bullets" will teach you. Let's move on.

Exposure is the key to finding buyers and sellers in real estate. If a property is priced fairly and everyone who is looking for that type of property knows that it is in the availability pool, it will be found and the transaction will proceed as advertised. Price it right, advertise it properly and let the lawyer take care of the details. No commission, just a flat fee. Period.

Now that I have that off my chest, I will tell you a story about Dan, a 21-year old friend of mine, and his wife and their new baby. He's a hardworking guy who does his work without complaint and all the other "workers" pick on him for working so hard. Can you believe it? The other guys are so insecure and lazy that they make fun of a guy who is doing the work of three men, mainly of the three who are ridiculing him. Well, believe me, this doesn't go unnoticed by me and I take him under my wing. Dan wants to buy a house, so I begin the process of saving him years of trial by fire and save him $25,000 at no charge. That is because he deserved my help.

Anyway, here is the story: I began with him by asking him what type of home he thought he would be comfortable with and a price range. He indicated a 3-bedroom for around $100,000.

Knowing what he wanted and knowing the area, I was able to take him shopping for the house he was looking for. Now I always go after the "For Sale by Owner" homes first because I know they won't be adding any commission figure into their price, because they won't be paying one. So at 6% of $100,000 he will get $6,000 more "house" for his precious dollar.

I also told him besides the "For Sale by Owner" homes, we would be looking at oddball discount companies that help distressed sellers further part with their money and property. The mentality of a seller who uses cheesy companies to help them sell their property is pennywise and pound-foolish. If you're going to use professionals, then get a professional.

So off we go. After a day or so, we have found our house. Sure enough, El Cheeso Inc. has a sign on it. The screen doors are flapping in the breeze, the weeds are dancing on the lawn, but this house is indeed a 3-bedroom, 2-bath, 1-car garage with a fenced yard and it's selling for $110,000. Well, due to the fact that there is a divorce in progress, and a new girlfriend who doesn't like the place, and El Cheeso Inc. giving no representation, I negotiate for Dan and he gets it for $99,000. What's so great about this deal is this exact same floor plan in another house was for sale down the street, on the same street, for $25,000 more.

The moral of the story is good things come to those who deserve it, and that is another key to real estate. You must work hard so others will take notice of you and help you succeed.

Here's a beauty for you. This is about being in real estate circles and keeping your eyes and ears open and often times your "yapper" closed. This is the story of Brian and Julie. Here we have two hardworking souls. They have been married for 20 years and they have weathered the storms of matrimony. Julie works at a real estate office as an office manager. No real estate license, but she works at an office that sells a lot of waterfront property. So we are talking about location and being in the right place at the right time, and here comes a seller in the door of the office stating she is going to sell her older waterfront home. She is willing to take $180,000.

Julie tells Brian, they look at it and sure enough, this pearl is right on the water. She's a gem waiting to be polished up, so Brian and Julie sell their condominium and move in. Well, they aren't making any more waterfront property, so Brian goes to work polishing this jewel up.

Now, they have bought this house under market value in an appreciating market. So about one and a half years later, this property is worth over $350,000 and still climbing. Well, Brian is no dummy, so he gets to know his neighborhood. He strolls, takes walks and notices, you guessed it, a vacant, neglected jewel on an inside double lot. He tracks down the elderly lady, who is living with her sister, through the county records office and buys the house, including the extra lot, for a total of $120,000. Now Brian can walk to his new "jewel" and he starts polishing it. The neighbors start noticing and are amazed at his deal. He has offers of $180,000, $200,000 and $60,000 for just the lot. You name it. Now that the exposure is there, everyone wants a piece of it.

Well, this is what Brian did. He rented his first house out, moved into the second one and used plans that I gave to him to build a third house on the vacant lot, using the equity he accumulated from the first house that went up so much. And here's how this thing shakes out: $180,000 for his first house and it's value goes up to $365,000; he picked up the next jewel for $120,000 and he paid cash using the equity from the first house. Now he takes out a new mortgage on his second house for $120,000 and builds a third. The value at last count was $815,000 and he owed a grand total $300,000. That's a half million-dollar profit in 5 years!

Now what does this story tell us? #1 - it says, "work hard"; #2 - keep your eyes open; #3 - use equity lines; #4 - don't sell; #5 - learn how to be a landlord; #6 - be in locations that appreciate; #7 - buy things that are limited in availability; #8 - know how to research owners and repair property; #9 - get your partner's help (spouse); #10 - use knowledgeable friends to help you see potential (I gave him the plans and advised him not to sell anything!).

Can you get any more lessons out of this story? I'm sure you can. Just read it again and think on it. Jot down your ideas and put them to work. Real estate is not that hard, folks! You can do it. With a few magic bullets, some spark plugs and a good mentor to show you how, you can do it too!

Let's you and me talk for just a minute here, OK! Have you ever been really good at something and been able to step back and see the whole thing for what it is was? You just know exactly how to do it and you can see the end result clearly in your mind before you start. It's predictable to you. It's almost second nature, so you are comfortable doing it. It's almost become boring to you; your comfort zone is such that you can do it in your sleep.

I've gotten that way with certain types of real estate and I see people everyday that are so afraid of taking the first step that they are literally paralyzed. They make excuses and put it off, and rationalize and live a quiet life of desperation. They don't trust themselves and as a result of the unknown they can't trust anyone else either. This is a vicious cycle because the longer they wait the more it reinforces their beliefs.

I just want to grab them by the collar, take them to the bank and make them tell the banker, "Pre-qualify me!" Then walk them out the door and show them how to do something that will change their life forever, and that is to buy the first property, and then a second. Then their fear is gone and they grow to be of service to everyone who is ready for their assistance.

Let me tell you this: After you finish reading the rest of this report and you read the "Magic Bullets" book, your fears will be subdued and you will do something and your life will change. If you cannot succeed with what I am intent on showing you, then something is not right. I believe your desire would be your major obstacle, so if that's the case, read "Think and Grow Rich" by Napoleon Hill and come back to me then.

Let's get back to real estate education, shall we? Do you know who the largest commercial real estate owner in the U.S. is? It's McDonalds Corporation. Yep, and on top of that, they also have the most valuable locations for their type of business. The research they do on demographics and traffic counts is unparalleled!

If you were ever going to open a fast food restaurant, just put it near a McDonalds. You would survive just on the volume of people who flock or pass by the location that McDonalds has already decided meets all the critical data to support their restaurant business. Your restaurant, if you had good food and service, would flourish. Just sell something a little different than McDonalds. That's leveraging someone else's expertise in evaluating a location for a certain type of real estate.

Now that is a principle and principles are like natural laws. A natural law always works in every situation in its own way. It's like gravity - it always works! Here on earth, anyway.

So in real estate it doesn't matter what type it is, whether it's commercial, residential, industrial or recreational. Look for signs that serious market studies have been undertaken by major operators and buy things that can flourish in the presence of those concerns.

For instance, let's use Home Depot as an example. If Home Depot decides to build on a site, every residential lot within a mile of that new center will be bought up as soon as the Home Depot commits to build! Why?

Because smart investors know that Home Depot has done the market study and the area will be a prosperous one.

On top of that, it will provide jobs, it will pay taxes, it will provide materials to actually build the neighborhoods with, and people will shop there once their houses are built. The same goes for Wal-Mart, Lowe's and other smart business concerns.

You may or may not have noticed this but take a look the next time you are driving around. Here is what you should see. As you drive into cities from the suburbs, you'll notice donut shops, gas stations with convenience coffee centers, bagel shops, and etcetera, on the side of the road that people travel to on their way into the city to go to work. These are morning activity business centers.
Now on your way home, out of the city, you will see restaurants that cater to the evening meal crowd: KFC, Taco Bell, Subway and Pizza Hut. That's because people don't go there for breakfast. They get it on their way home, outbound from the city at night. If you put your restaurant on the wrong side of the road, you could be making a huge strategical error. Think!

Location, location, location as they say, are the 3 most important things in real estate. That is a very true statement. With residential property, that boils down to safety, security and convenience. So buy homes in good neighborhoods, cul-de-sacs preferably. No noise or through traffic, no escape routes for thieves, and a private setting, where kids play in the street without getting run down.

Security = close to hospitals, police and fire protection for obvious reasons.

Convenience = stores, gas stations, restaurants, small businesses, parks and recreation and access to major highways to circulate or evacuate if necessary.

You might get a great deal on a piece of properly but if it takes you a half hour to get a loaf of bread. What kind of resale will that great deal offer? Another great deal may back up to or face a busy street. That's often a poor choice as well...noise, pollution, the loss of privacy and curb appeal are all factors here.

The two best types of property to buy are:

1. Property that no one else knows is for sale! Why? Because you have no
competition.

2. Property no one wants! You just have to figure out why people don't want it.

If you can turn that lemon into lemonade through some problem solving, that

jewel may just shine because you used the right magic polish.

In real estate, you get paid when you solve problems. That is a fact!

Here is a golden nugget for you. If you do this, it will catapult your real estate investment career. I guarantee you will gain more insight to real estate by doing this one thing than just about anything else you could possibly do. The golden nugget is this: Take a real estate appraisal course. It will fly by, a few weekends and it's over, but the perspective and the information you gain from the class is priceless. It gives you vision, ideas and understanding. You will have an edge over every other investor who has not done it.

I had an instructor, who by some stroke of luck, I was privileged to be taught by. His name is Steven V. and he is truly a genius. This guy could make millions if he applied himself to real estate investment but he chooses to teach and give back to others in that way. He is very comfortable in life and money is a by-product for Steven. When I finished the class, I had appraisers wanting to hire me to go to work. Now I don't want to work as an appraiser. I just want to think like one and that is why I took that four-weekend course. That class taught me more than both of my real estate licensing courses combined. The reason for that is real estate classes deal with state laws, contracts, regulations and ethics. Appraisal focuses on evaluating real estate and that is what you want to learn as an investor.

A real estate license can actually hold you back from being a savvy investor and here's why: #1 - You have to announce to every seller that you are an agent. It's an ethics rule and a disclosure law. Well, now the seller is on guard for all kinds of reasons and you waste precious time overcoming negative reactions. #2 - When you go to sell your real estate, the same things apply but add to that scenario the fact that if you make large profits on property that you sell, people can come after you, saying you took advantage of them because of your expertise. And they win!

So you don't need to go to college for 4 years and you don't need a real estate license. What you do need is a guy like me to convince you to go to appraisal school and read books like the one you have now.

Then go out and do it, using a lawyer to protect you every step of the way. Again, here is a good point to make. Simply weave into every agreement or offer you make the following statement: This entire agreement is subject to my attorney's approval. I can't stress that enough. That's one line of text. That covers it all. It gives you time to investigate deals. It protects your interests and keeps you from getting burned in this business.

Here are a couple more beauties that I use to protect myself and you should too.
These are used with initial purchase offers:

1. Willing to pay X amount of dollars or appraised value, whichever is less.
(That says, "I'm only going to pay so much but if the appraisal is lower than

what I offered, than I am going to get it for the lower price. I don't get

burned!)
2. Subject to my partner's approval. (My partner was always my wife, and if she

didn't like it, the deal was null and void, cancelled, over, kaput, finito.)

Now nothing says my partner wasn't my dog, so if there's no fire hydrant, well the deal could be off.

Those are examples of escape clauses that could be abused to the point of being called "weasel clauses." Don't be a weasel! They give you a short period of time to have the option to buy something first with the right to cancel the deal, contingent upon something or someone else's decision.

I use them to protect myself and to get a little time to do my research on the property. Don't use them to unfairly tie a seller's hands. Be fair and try to move quickly when you do employ them.
What you are doing is creating a short time, zero-cost option to buy real estate. Here is a little trick and I don't use it very often but it can be used in a fair manner so I will give you the nugget. When you write an offer to purchase property, on the top line of the contract is a line that indicates who the buyer is. On that line in certain cases, I will write my name plus the words or assigns, like this:
Buyers: Dan Auito or assigns

What that word "assigns" does is this: it allows me to sell by assigning my right to buy the property to someone else. Dirty dealers will take advantage of people with that word if they can get away with it.

Here's where I would use it. In real estate, a lot of bargain hunters look for distressed property. You know, the fixer-uppers, the abandoned, condemned, fire-damaged stuff. I go a step further and look for distressed sellers such as death, divorce, relocation, but a lot of times I don't specialize in that type of property.

That's OK because if it's a steal and I get it for 40 - 50% off, I will assign it to someone who does deal in that type of property and make a profit by assigning it.

I'll always ask the distressed seller if that is a problem and if it is, I will buy it outright, then flip it but it costs more to do that. So I'll explain this to the seller and get their permission to use it. I don't slip it in on them. You will have a miserable existence if you practice real estate by deceit. Natural law will crush you; play fair! Purpose, passion and desire cannot be achieved or acquired by deceit. That's a quotable quote. I hope you remember it.

Let's get on with another story. This illustrates another fine example for you. This story is about a family who had business interests outside of real estate investing and as a result of the successes of their other businesses they had fairly large sums of money to play real estate like a monopoly game. Power can be dangerous in the wrong hands!

So here we go. This flush with cash family sees an opportunity to take advantage of an overlooked or left alone market. That market is the old-fashioned trailer park, or shall we say Mobile Home Park.

Anyway, the way most mobile home parks came into existence was this: Usually a man of integrity and strong work ethic coupled with a love for his fellow man would buy a piece of land suitable to the placement of mobile homes. As people moved in, he and his wife would welcome them and the neighbors would greet them and the community would become established.

The private owner would dig his own sewer lines and cut his own roads and landscape the park. Maybe put in the clubhouse complete with a swimming pool, shuffleboard, pool table and meeting hall. As time marched on, the residents bonded with each other and a family-friendly community took root. Well this man of integrity had a problem. Since all of his tenants are his friends, he is pressured not to raise the lot rents with inflation.

So the rents over the years are kept very low in the park and now this man and his wife are getting old. Perfect timing for our investors to come knocking and offer our private aging park owner a 2 million dollar price for his 10 acres of mobile home lots. This is a once in a lifetime offer and many park owners cashed out.

What people didn't see was these investors were systematically and methodically doing this all over the place and once they cashed out as many mom and pops as they could, they lowered the boom.

Now they the investors had control of many parks in the same areas and they started raising the lot rents. You see, they didn't have any emotional ties to the residents and they didn't live there, so it was a straightforward business deal: either pay the new higher rent or move.

The residents said, "To hell with you new owner, we are moving." "Well, fine, go ahead," they said. Now the residents started calling around to find another park with low rents but guess who owned those? Yep, our investors did, and those lot rents were going up too. So the mom and pops who didn't sell were full and it would cost on average of about $7,000 to relocate to another park even if they could find a vacancy.

The old folks who had it so good for so long were faced with a new reality and that was that they had no choice but to pay up or move, and moving, in many cases, wasn't an option. These investors exploited a complete segment of the market and made millions and millions in profit and continue to do so today.

It wasn't long after this happened that you started seeing signs saying, "This is a resident owned community." People eventually got smart and started buying that little lot that their trailer was sitting on and they began paying association dues for the clubhouse and security and grounds, maintenance and road repair. The good ole days are nothing but a fond memory.

Life goes on but America did not change for the better as a result of these types of people. Their only purpose was to make money; I believe they will die alone and in misery as a result of their way of life.

So I ask you again, can you be passionate and put your heart into investing in real estate by investing the way our corporate investors did? I think not. Money is no good when you get it by deceitful ways. I encourage you to work at balancing your objectives. Lease optioning, flippers...you are walking a fine line.

Here's a flip side to communal living. This story is a happier scenario, so let's have a little joy here. I once lived in Key West and I lived off base. Well, I thought I lived next door to Noah, and it sounded as though he was building another ark. All summer long, hammers and saws seemed to be making some type of racket, so naturally being the neighbor I was, I got to know the man next door. He never went to work and I asked him one day, "Don't you have a job and he kind of grinned and put his hammer down and this is Mark's story.

Mark and his brother were from the Northeast and they had a 30-room boarding house for college kids there, at something like $300.00 a month. That was about $9,000 a month and they made the parents responsible for the rent payments. Mark would spend his time with his family in the Keys for the nine months that school was in session. His brother was a local up North and he took care of the toilets, faucets, doors and windows. Yes, they had their very own animal house going on there, but Mark factored in the abuse and would spend 2 - 3 months a year, putting the animal house back together while the animals went home for summer break.

Burlingame Real Estate

2009-09-23T03:27:00.000-07:00

By Phil Chen

Do you like to have a home in serene natural landscape but with all the facilities of modern town? Do you like to live in the background of history but in the midst of ultra modern set ups and world class amenities If both the options excite you, you should not look further than looking for an option from the list of Burlingame homes for sale.

Burlingame is known as the City of Trees; most residential properties of this city have their own tree properties and the trees are protected by public right of the city. There are 18000 public trees here in the city which has maintained a perfect ecological balance. In fact, for its beautiful surroundings, Burlingame Real Estate was quite popular between affluent San Francisco citizens even in the recent past. They used to purchase residential property in Burlingame and maintain it as a second home.

However, if you wish to find any house in Burlingame area, the best option is browsing the relevant real estate websites where you may get some ideas about the cost and availabilities of Burlingame Real Estate market and homes for sale. However, there are lots of choices according to different budgets and the options include Burlingame homes, Burlingame condos, single family homes and other accommodation provisions.

Hillsborough is located beside Burlingame and it is a favored place for people, especially those who prefer to have seclusion and privacy. Hillsborough schools are good, landscapes are beautiful and the natural beauty of this place is the main attraction of the real estate properties of this place. It is one of the most upscale localities in the United States. Those who are looking for an escape from city life may have a look on Hillsborough homes for sale list with enlisted Hillsborough realtors.

Burlingame Real Estate is a good place to invest in as well. Burlingame is famous for its climate and in its peak season many tourists come here for vacation. So vacation houses and motels remain in high demand during the tourist season. So from this aspect of rental accommodation and its demand real estate investors also will find the Burlingame Real Estate markets an absolute gold mine.

It is possible to gather all know- how by browsing the web, but in reality, purchasing a property is not that easy. Since it involves many legal intricacies and legal hassles; it may become difficult for any common person to deal with all of it skillfully. Those who are not from the region may find it hard to get accustomed to the local laws and property clearance verification formalities. Keeping all these problems at view, it is wise to hire a professional real estate agent who has the necessary expertise in real estate formalities and who is an enlisted member of Burlingame Realtors association.

Getting Started in a Real Estate Career - 5 Top Tips to Consider!

2009-09-23T03:25:00.000-07:00

By Anil Madahar

Now, with the world in an economic meltdown, a career in real estate may be the last thing on your mind. However, believe it or not, there are still realtors out there that are making a good living. They've diversified, sure, looking at leasing, or even taking on commercial clients, where their business used to be residential only, but there are certainly realtor professionals that are floating, unaffected, above the recession fallout.

The question is, however, what it takes? Getting started in this profession might not be for everyone, and we've compiled 5 top tips to consider before you think about making the plunge.

1. Are You a People Person

Working as a realtor is less about houses and buildings, than it is about knowing people. The better equipped you are to deal with people, the easier it is for you to tap into their hopes, fears and dreams, and provide them with what they need. It's part sales, part psychology and a whole lot of good, old fashioned customer service!

2. Are You Hard Working

If you think there's easy money to be made, think again! Yes, you can make a very good living, but it will take time to get there - and in the mean time, you will work long hours, and very, very hard.

3. Do You Have Attention to Detail

Real estate is not only about selling houses. It's closely tied to finance and law, and if you aren't prepared to dot your I's and cross your t's, you may find yourself in hot water! Make sure that you are diligent enough to deal with paperwork, and all the other red tape that accompanies buying and selling property.

4. Are You Ambitious?

Ambition is critical here. When you first get started, and you're marketing small homes, you may consider giving up. Likewise, when things get tough and the market is down, you may want to throw in the towel. The best, most successful realtor professionals are adaptable and ambitious. They want it. Bad.

5. Are You Prepared to Study For It?

Notice that this is last? That's because you first need to figure out whether you really want to become a realtor professional, and whether you have the personality for it! If you do get to this point, you should know that you will need to spend somewhere between thirty and ninety hours in a class room, and sit an exam. There will also be ongoing education and training courses, as laws and other aspects of the job change.

As you can see, becoming a reator professional is a delicate balance between who you are, and what you know. If you think you have both, and want to give it a try, then by all means, spend the time and money taking the courses - you might just find that you become the next millionaire realtor. Just remember though that in real estate, like any other career, hard work, diligence and perseverance pays off!

If you would like to generate a recession proof income and you are not sure that a career in real estate is for you then you could consider becoming an internet apprentice with the best online franchise available.

Florida Real Estate

2009-09-23T03:20:00.000-07:00

By L. Belenky

The Florida real estate market is often regarded as a forward indicator of the disposition of the national market in times to come. To illustrate this, Florida was among the first states to feel the devastation brought about by the collapse of the real estate market in 2008. Conversely, Florida was also one of the first states to see the huge increases in home values that began in the late 1990's and continued until last year. This economy presents an interesting example of the mechanics of the housing market and of markets in general.

Florida has a large retirement-age population as well as a large affluent population who are drawn to the region for its famously-pleasant weather, Oceanside environs and diverse population. During the last ten years, the prices of Florida homes, especially in certain markets, became artificially inflated due to the same market forces that wreaked havoc on Wall Street: fast flowing credit, overvaluation and the sort of free-for-all mentality that is bound to occur every so often in anything so driven by human emotions as is the free market. After an incredible spike in home prices, Florida saw it all come crashing down.

The burst of the housing bubble had horrible consequences for the state and some who had bought near the peak found themselves in a situation where losing out on their investment was the only possible outcome. Home prices continued to fall and fall and consumers became more anxious. At least, some of them became more anxious. Those who had planned to turn this crisis into an opportunity were waiting for the right moment and, when it came, they reacted.

The South Beach, Florida market is a good example. Condominium prices bottomed out within the last few months and then, as the economy in general has seemed to begin doing, started to rise back up. The prices for these properties are still very low but their value is becoming more commensurate with their actual value than with their value calculated by the circumstances of a significantly cramped market. Today, with those prices bottomed out and beginning to rise, investors and homeowners have begun to pick up those properties again and inventories have begun to shrink. This is likely to be the scenario across the country, slow, steady recovery and a gradual return to sensible values for real estate holdings.

Importance of a Letting Agent!

2009-09-23T03:17:00.000-07:00

By Arush K

Before letting out a buy to let property to a tenant, a landlord should take care of certain things. Firstly, he should not trust the tenant who has applied for the rental unit. A landlord should not consider a tenant based on the face value. A tenant may seem genuine overtly but he may have deceived his previous landlord. He might have criminal case against him. Therefore, a landlord should always check the tenant's information such as credit details, personal information, employment status, previous landlord information etc.

Credit or financial details - A letting agent is proficient enough to find out a tenant's credit information from a credit report agency. He can find out if a tenant has had any County Court judgement, bankruptcy or arrears in the past. If yes, then he might have adverse credit rating.

Personal information - This information includes address, his name, telephone number etc. There are chances of a tenant providing wrong address and other inaccurate personal details so that a landlord is unable to find out about him.

Employment status - An expert will find out about a prospective tenant's job details from his employer and also interrogate his previous or current colleagues. This will help a landlord find out about the tenant and check if he is on pay roll. For the self-employed, references are expected from an accountant or solicitor.

Landlord information - This information tells if a tenant has maintained his previous rental unit in a good condition and if he has paid his rent on time. They also check if there have been any eviction cases in the past. It also helps one find out if there are any discrepancy in the information.

To allure potential tenants, the agent should be well established in UK and must have a good reputation in tenant referencing field. Always reach out agents who are members of a national letting organisation, such as ARLA. This way a landlord can stay in peace that he has got his tenant information verified from reliable experts.

Real Estate in Burlingame

2009-09-23T03:15:00.000-07:00

By Phil Chen

Burlingame still retains an old world charm in spite of advancements in all fields. Consequently, it has become one of the most desirable locations in Northern California. Located just 15 minutes away from downtown San Francisco, the quaint, old fashioned town boasts of excellent facilities and moderate weather conditions all the year round. Real Estate in Burlingame is particularly in demand now, especially so for people hoping to be away from the hum drum of the busy metropolises. Families as well as retired people are the ones keenest on looking through the Burlingame homes for sale. The thriving night life as well as other amenities on offer has also made active and affluent singles interested in looking at the Real Estate in Burlingame.

If you contact a Burlingame realtor, you will be surprised to know that the town can offer you a bit of almost everything. Homes for sale in Burlingame include houses amidst beautiful and clean surroundings. Buying Real Estate in Burlingame may prove to be a trifle expensive as most twin bed roomed, 1 bathroom houses are available for a price range at $800,000-$900,000. The average going rate for high end Real Estate in Burlingame is approximately $1.4 - $1.5 million dollars at present.

The city of Hillsborough is situated nearby and remains unique because it has very little services to offer. The city is home to some of the most elaborate and expensively priced houses although it has no side walks and no shops catering to your daily needs. This is a deliberate measure for maintaining a rural ambiance. However, the town boasts of excellent fire, police and emergency services. If you are looking for a Hillsborough home for sale you will find that huge mansions located on more than an acre of land are usually up for sale. The price range is well above $1,750,000. You may also check out the prices for family houses or studio apartments if a condo or a town house is way beyond your budget. The average price for a square foot usually hovers around $104. Well maintained, attractive family homes are readily available. Most families with young children prefer to reside in the vicinity of Hillsborough schools. Real Estate in Burlingame encompasses every imaginable kind of homes available in both Burlingame as well as Hillsborough.

Hillsborough realtors can offer you professional guidance about availability of homes within your budget. They can also be relied upon to provide accurate information regarding foreclosures and bank mortgages. You may find all the details that you need by doing a search on the Internet. Just type in the words 'real estate Hillsborough' and you will find a lot of information about the Real Estate in Burlingame as well as that of the city of Hillsborough.

The Real Estate and Mortgage Industries Can (and Will) Survive!

2009-09-23T03:11:00.000-07:00

By Kerry R. Mitchell

This is good news! Now how do we get there? All economists are a bit confused on what needs to happen. First, let's get to the acceptance piece of the puzzle. (1) We are not in an economic recovery. Change needs to happen in many areas of the system the average consumer is living in. Jobs need to be created and the only way to do this is to create new industry. Real Estate Taxes are not only too high but they are not in proportion to reality. Not even close. Think on this. Why are homes on one street, same square footage, same design and similar age taxed thousands of dollars apart from their counterparts? This needs to be addressed. Tax assessors are working within guidelines of a "boom" that went way out into la-la land. Yet, they are assessing at those sales figures. It is a chain reaction in a system that needs to be redesigned.

There is a much needed reality check. Regulators, consumers and banks need to wake up quickly, which brings us to (2) to begin assess honestly, how we can renew our systems to have them fit into the change that is occurring in our democratic way of life. I am a republican and proud of it, but reality is reality. By 2020, the world will have an estimated 9 billion people to cloth and feed. This is not a one sided problem. It is a chain of past economic predictions that were just plain wrong. We are living in a system that has been broken. The chain of real estate ownership was created years ago when people began to buy and sell, price and live it their own home. Leasing was not looked upon as the American Dream. Owning a home was. Now, renting is so much more attractive to our pocketbooks. Why? OK- Think on this. You see a $250,000 home in the paper. Should you pay out of pocket 20% down (if your credit is perfect and very few have perfect credit) so that is $50,000. Who has this in an account right now without parents? Then up to another $10,000 for closing costs. The principal and interest is about $1200 a month( about 6% rate ) then you have taxes which can be about $350 more a month plus insurance can be about $150 more. You are at around $1700 a month and if there are those homeowner association fees, oh no- please? Now, the facts of these troubled times, this home is not holding value. Not good news for the American Dream concept. Next year it will probably be worth less, yet are taxes going up? So (3) is finding a way to build value in real estate again. Now, just suppose you can pay $1100 a month to live in that same $250, 000 home? When something breaks, you don't have to pay for the fix. No taxes fees or owner concerns. Just renters insurance to protect your own "stuff."

This brings us to (4) curing the disconnect of communication breakdown with banks, consumers and those running the real estate and mortgage worlds. Examples are government tax offices, Realtors®, mortgage professionals, jobs depending on industries that thrive on real estate such as contracting and engineering companies, etc. Pricing and regulation needs to be cut drastically. How can one home in a neighborhood, going through a short sale dictate prices of the other homes? It is all so off balance. Have you been food shopping lately? Our food supply is beginning to offer us less and short us as packaging is less for us to pay more. Boxes are smaller. Loaves of bread are smaller. So what can change all of this?

(5) is plain and simple we need laws designed for the people, by the people. When the Declaration of Independence was signed, it called for government for us. So let's remember real estate and mortgage markets drive the economy and let's remember that these markets can help bring about change quicker than any other markets. Once these markets create ways to achieve drastically lower utility bills, and real estate taxes are forced onto a more uniform format, all can recover.

Our system as we know it, is broken- Done. We will not ever find jobs for all who have lost theirs unless we re-train, re-create and re-build in the new world energy sectors offer. Going green. Tired of hearing this yet? Don't be and wake up America. Retrain those in construction and sales ability to learn to sell and install water conservation products as cisterns, solar products, solar hot water heaters and wind products. Train sales people to sell and represent these systems in the workforce. Re-create the entrepreneurial spirit. It worked years ago and it will work again-

Are All Home Inspectors Created Equal?

2009-09-23T03:10:00.000-07:00

By Linda Liu

The time for that big investment has finally arrived and you need to find home inspector services that will guarantee that it is money well spent. Sure, a good home inspector can save you a world of unforeseen financial heartache down the road, but if your inspector is going to find potential problems in your future home and you are going to re-negotiate with the seller for a better price, then time is of the essence.

Once you've narrowed down your search to a few inspectors how do you ensure that you are choosing the right one? You're going to need to ask the inspectors some key questions. Find out if their inspection includes the appliances. It seems silly as one in five problems new home-owners encounter are with the appliances. Maybe the inspector can't give you the rundown on the production specs for the furnace in your possible soon-to-be home, but they can surely let you know if the pilot is lit or not.

The tools of the trade are also important in a good evaluation. High-tech gizmos might not be indispensable for the experienced inspector, but they definitely help to spot any possible areas of concern in your new house.

Does the inspector really know what they are talking about? Are they simply going to rely on a bunch of tests ordered at your expense, or will they be able to judge when those tests are really necessary? Some of the best inspectors believe in a simple home inspection and a single radon test as a base. Any other tests for water or mold contamination are only ordered if the inspector truly sees it fit.

Don't forget the final report. Anyone with a pencil and a clipboard can run down a checklist, giving items predetermined evaluations of good, satisfactory and poor. A proper, narrative report allows the inspector to go into real detail about their discoveries. This is an advantage to you, the layman, and to your lawyer or realtor, who will know if you are getting the deal you thought you agreed upon, or if re-negotiation is actually in order. A good narrative report can help you make an accurate estimate of what kinds of costs you might incur with the house before making the financial commitment to buy it.

One last thing to keep in mind: the best inspectors are trained, experienced professionals, but they are generalists. A good home inspector will know when they are out of their league and recommend that a specialized expert should take a closer look at a potential problem. Often, if the purchase price is particularly high, it is a prudent idea to hire two inspectors from different companies. You can count on both to give their sincere evaluation, but where so much money is at risk, a second opinion is always welcome. In cases where one inspector is in doubt over a particular factor (not at all unheard of in such a generalized profession) perhaps the other can offer some insight into the problem.

This is a big buy, and the details deserve your utmost attention. You can plan on spending between $400 and $650 to get a solid evaluation of the safety and integrity of your new home. A good inspector will be experienced, well-equipped, and will only order the necessary tests to complete the inspection. This can make all the difference in what should be the biggest and best purchase of your lifetime.

Real Estate License - A Popular Choice in the Slow Economy

2009-09-23T03:06:00.000-07:00

By Zafer Ahmad

There are many people seeking new careers due to their recent job loss. While many see the housing market in shambles and run the other way, they aren't really seeing the whole picture. Getting a real estate license right now is actually a good career move because you can guarantee that if you are willing to put for the effort, you will always have work. No matter what state you live in, a real estate license is required to practice as a broker or real estate agent. You have to be 18 years of age, have a high school diploma or GED, and pass a license exam once you have taken the necessary classes. While some states require these courses, others just need you to pass the test which means that the education is up to you.

Testing and education for a real estate license is required because the laws and regulations can be complicated and confusing, so states need to make sure that people really understand what they're doing. It's not a job that you can just pick up with no experience like being a cashier or a cleaning person. You have to learn the laws and rules of real estate in order to be successful and do your job right. Each state has two levels of licensing, which gives people the choice of what they want to achieve.

A real estate agent will either be licensed as a salesperson or a broker. The broker will be able to act on behalf of the client and work completely independent from anyone else. This is the higher level of training. For those who want to get into this career but don't want to invest into this level of training, they can choose to be a salesperson instead. This person is licensed as a realtor, but can only operate with the supervision of the broker. That means that they can help people buy and sell houses, but they must always report back to the broker in order to get the deals closed and ensure that they do everything by the book.

Each state administers real estate license tests on their own. The name of the test varies from one state to the next, as do the requirements for testing and licensing. Make sure that you contact or visit your state agency that does license testing to find out exactly what you need to do to qualify for the test and become licensed as a real estate agent.

Methods to Determine the Value of Your House

2009-09-23T03:04:00.000-07:00

By Katrina Marie Santes

No matter what kind of real estate transaction there is, determining the value of your home is important. When you first bought the property, this was the first thing you had to do. Moreover, knowing the value has probably helped you negotiate the prices, which lead you to pocket a bigger savings.

Now that you have lived in the property, the greatest benefit you have is being able to hold on to a worthy property investment. You know right from the start you acquired something valuable. Therefore, when you sell it in the near future, you are confident of getting a good return. All of these are made possible simply by determining the value of the property.

How do you determine the value of your home?

One of the most famous methods in determining home value is the CMA or Comparative Market Analysis. Real estate agents use this to inform their buyers an approximate dollar value of the property being sold. As a homeowner, you can use this to determine the most reasonable offer a buyer could make. This will also give you an idea how much you can price your homes. This can help you see both the buyer and the seller's perspective in valuing the property.

If you want to know this, you can talk to a real estate agent. Since they have all the necessary tools and experience, they are most capable of determining the value of your home. For one, they have access to MLS or multiple listing services. This tool may include a feature to guide them making the CMA. On the other hand, they can use the properties they've sold in the past for the comparison.

However, you alone can make your own CMA. Although it takes practice to be perfected but it is doable. All it takes is research. One has to go through an extensive comparison with properties of similar features and location. It is expected that you will not be able to find properties with the same exact features as your home. That is why your comparison may not be as precise as you can think.

The more details you know about the properties to be compared as opposed to yours, the better CMA you can make. Information involved are location, square footage, bedroom count, details of the structure, year built, information about the components, condition of the property and the architectural style. If you want an easy comparison, you can try to use CMA software.

Another way to determine you home value is through appraisal. Lenders use this information in determining the worthiness of the property as their investment. This is what they consider a more unbiased opinion of determining your home value, as an independent third party will conduct it. However, they come with a certain fee. Their manner of valuation is more extensive as they will be eyeballing every detail of your property.

All of these things can help you get the most current value for your homes. Thus, whatever you plan with it, may you turn it into a rental property or an investment property, and you will have a more realistic outlook in setting the price and predicting your returns in investment.

Importance of Home Appraisals - Fundamental Information Every Buyer and Seller Must Know

2009-09-23T03:02:00.000-07:00

By Maria Faith

Home appraisal is referred to as the developing of expert opinion of certified appraisers or valuation surveyors who will give the market value of the property you are planning to purchase. Real estate appraisal is also known by other terms such as land valuation or property valuation. Since home appraisal is an indispensable method included for the completion of your home purchase transaction, it is imperative to know its importance and value. Primarily, appraisal originates from the notion that no two properties are completely the same or identical based on their location.

Home appraisers are those that undergo coursework and internship under stringent standards by the state to get the required certification. Appraisers ought to be third party individuals who have no financial connection to any of the parties involved in the transaction. Those who are first time home buyers need to know that appraisals have a part in the payment dues included when applying for mortgage.

What is the difference between home appraisals and home inspection?

Potential home buyers when making ocular visits to the property they wish to purchase hire professional home inspectors to help them determine potential problems in the house if there are any. Inspection includes testing the air and heating system of the property as well as other important functions like plumbing and chimneys. While property appraisers are the ones who only deal with the obvious issues vis-à-vis salient details of the subject property, the type of area the property or home is located among others.

You will also find in an appraisal report the detailed assessment affecting the market value of the property and the average sales time you will expect. Therefore, if the asking price of the property is higher than its actual value, then the seller is actually overpricing. This is certainly a very significant method at the initial stage of the transaction since it surely keeps you secured from all forms of discrepancies and fraudulent pricing.

What are the methods used in appraisals?

In order to determine the authenticity and accuracy of the appraisal report presented to you, it is important to take note and understand the methods of coming up with a market value for a particular property. For residential appraisals, two common steps are utilized as follows.

• Sales comparison approach. With the notion no two properties are exactly identical, the appraiser makes the estimation using a method of comparison to other similar properties for sale in the same area. The term used for such types of properties is comps or comparables.

• Cost approach. This is applicable for new properties wherein the appraiser assessed the property value with its repair costs whenever the structures are to be replaced or destroyed.

Home appraisals certainly hold a salient role in the process of home purchase. The real estate industry is actually an extremely competitive and cunning milieu that needs skills and knowledge to deal with. Getting the most out of your investment surely means having the right and genuine home appraisal for your target property.

The Effect of the Credit Crunch on the Real Estate Market

2009-09-23T02:57:00.000-07:00

By Roby V. Pagong

The financial crisis has definitely taken its toll on the different industries. Its effect is definitely felt by the different sectors in the real estate market. The increasing number of foreclosed homes is just one of the many sad effects of the credit crunch. People were seeing that the effects were real after big banks and real estate firms started downsizing and some were even filing for bankruptcy.

The players in the industry are starting to lose their investments and this created a chain reaction to the lending firms. Seeing the effects, players have to renegotiate their arrangement. Some was successful in minimizing the effects of the loss but others were not. Foreclosed homes piled up leading to growing number of frozen assets.

Since fewer people are willing to shell out some of their money, there are fewer homes being sold. Sellers are left with no choice but to lower the value of their property. Lenders have to adjust the rates they offer as well. Lower rates should encourage people to borrow and purchase money. Since many real estate projects froze due to the credit crunch, people are losing their jobs. Unemployment has caused financial shortage. Due to this, many struggled to pay their obligations, including the mortgage.

New opportunities:

Amidst the sad effects of the crunch, doors have opened for new opportunities. Home buyers of primary residence may have dived down, but investors are seeing it in a different way. Since there is a decline in primary home purchases, the demand for homes to rent has skyrocketed.

This means that investors are getting the upper hand. They can purchase homes at a lower rate and they can have it rented after a few repairs. There are many wholesale properties today, which make it more advantageous for the investors. Although they have to invest more in renovations and improvements, income is evident because of the many people who are seeking decent homes today.

They can also sell the property. Although the values of the property today have gone down, there are still a lot of players who are able to gain more from the sale. People who have the money to spend today can easily find a wonderful home at a low price. There are also some special treat for those with good credits because of the low interest rates they can enjoy.

New benefits home buyers enjoy:

The government is also exerting efforts to encourage more people to buy homes. Tax credits are presented to first time home buyers. There are also benefits given to people who will purchase a secondary home. These arrangements surely benefits qualified home buyers.

Although the credit crunch has caused a lot of problems to the real estate market, it has also opened opportunities. It is up to the investors to take advantage of such opportunities. Opportunities are also presented to the home buyers. The government is presenting different programs so that more will be encouraged to purchase new homes. This is why now is the best time for people to start looking for a new home to own.

Property Auctions - Tips You Should Know

2009-09-23T02:37:00.000-07:00

By Eva Judge

Although property auctions used to primarily be reserved for the exceptionally wealthy, more people than ever before are trying their hand at in all around Australia. Ask any Brisbane financial services company and they will tell you that they are approached all the time by regular people who are interested in buying a new home via auction. If you're one of them, there are many financial things that you need to keep in mind in order to be successful. Below, we take a look at a few of the more pressing ones.

Get A Feel For The Price Range -

There's no point in even looking for a loan if you aren't even sure what the going rates are for homes in your area. Also, knowing what a fair price is can help you avoid getting ripped off.

Get An Independent Valuation Done -

Arrange an independent valuation if you have spotted a property you are interested in prior to the day of the auction. All too often, people get their hearts set on a particular home only to discover that it wasn't worth nearly what it was auctioned off for.

Arrange Lending Ahead Of Time -

Engage a mortgage broker to provide you with a range of lending options. Usually, 10% is due when an auction closes; the rest is due at the end of the settlement period.

Don't Bid Until The Auction Reaches Reserve -

Until the reserve is met, the house isn't officially for sale. The reserve represents the lowest price that the seller is willing to go down to. Keep your high price close to your chest and never reveal it to anyone.

You Do The Asking -

Never answer an auction agent's questions about your intentions concerning a property up for bid. Instead, make it a point to strictly ask the questions. Make it clear that you will, under no circumstances, answer any questions posed to you.

Stick To Your Guns -

Before the auction starts - before you even leave to go attend it - set a firm maximum price. No matter what, do not waver from it. In all of the excitement, many people become swept up and end up bidding much more than they can truly afford to.

Watch And Learn -

Optimally, you should try to attend a lot of different auctions before attending one that you'll actually be bidding at. This way, you can learn the ins and outs of the process and become more comfortable with it, too.

Get The Right Loan -

Always remember that agents almost always underquote. If you prepare thoroughly and plan your home loan, everything should work out just fine.

What Does a Home Inspector Do?

2009-09-23T02:29:00.000-07:00

By Ryan Coisson

When purchasing a home, one of the most important last steps you will take is to have the house inspected by a certified home inspector. It is in your best interest to have a grasp on the kinds of things the inspector will be looking for. Here's more about how he'll do his job so that you can ask all of the right important questions.

What is a home inspector's job?

In a nutshell, a home inspector is there to protect your interests, and his inspection's goal will be to determine if there is anything glaringly wrong with a house that would either endanger your family's safety, cost you a whole lot of extra money to repair and replace, or both. It is essential to remember that the inspector can only vouch for the condition of the house at the time of inspection and cannot predict any future issues that may arise down the road.

What kinds of things does he look for?

As to the exterior of the home, an inspector will look for structural soundness regarding:
- the general condition of the roof and its coverings
- rain gutters and their corresponding downspouts
- exterior vents and chimneys
- exterior facings, windows, doors, stairs, etc

On the interior, he will make a thorough inspection of:
- the basement, foundation, and any crawl space that may exist
- visual structural elements, looking specifically for cracks or other problems
- attic condition and insulation
- fireplaces
- doors and windows

He will make a complete check of the home's systems:
- electrical
- heating and cooling
- plumbing
- hot water heater

The inspection is thorough but it is not exhaustive: in other words, he will not be in a position to gauge water quality, nor should he be expected to determine the state of wall coverings, etc.

The home inspector is your partner in making sure that you are getting what you structurally expect when you make that all-important purchase.

What is the Difference Between a Real Estate Agent and a Real Estate Broker?

2009-09-23T01:54:00.000-07:00

By Amy Nutt

When one starts the process of selling or purchasing a home, it is not long before they realize that it can be an overwhelming task. There are many steps that are involved with the process that can often be quite complicated to the novice. Fortunately, there are professionals that can handle any home selling/buying situation and can take the burden off of your shoulders. Two such professionals are the Real Estate Agent and the Real Estate Broker. Before enlisting their services, it is important to understand the differences between each and their role in the process of buying and selling a home.

Real Estate Broker

A real estate broker is a person who acts as a liaison between sellers and buyers of real estate. They work to locate sellers who want to sell their property/houses and buyers who want to buy property/houses. Brokers help sellers with the marketing of their property and selling it for the best price and the best terms. For buyers, they assist them with purchasing for the lowest possible price with the best terms. In most states, one is required to have a license in order to be a real estate broker. In a few states, attorneys are permitted to conduct real property sales for compensation without being licensed as brokers or agents.

When one acquires a broker's license, they can run their own brokerage company and hire licensed agents. One has to pass a broker's exam to get licensed.

Real Estate Agent

Real Estate Agents help people with the actual locating and purchasing of a home as well as the selling of a home or property. Agents perform such duties as taking potential buyers to view homes that are for sale, offer advice to home buyers about where to acquire a home loan, submitting an offer for a home, locating the type of home that the buyer is looking for, has knowledge about the community where the home is located, and filling out specific forms that legally show that the house has been purchased. Both the buyer and the seller of the home sign these forms. An attorney is normally involved with the signing of pertinent documents.

The agent must be aware of the value of the home, all features of the home and if there are any problems with the home and property such as damage or a poor foundation, and they must be aware of the neighborhood and surrounding community. They should be able to answer any of the home buyer's questions. As well, they must have knowledge about the laws related to buying and selling a home. For home and property sellers, they help assess the price of a home and list it.

Real estate agents can be self employed or work for a company. They receive a commission for the sale or purchase of a home. Commission fees will vary among agents.

When you plan to buy or sell your home or property, you should enlist the services of professionals such as real estate agents and brokers. Understanding their role in the process and their differences will help ensure that the process is much easier and less complicated.

Why Real Estate is Great in Kent, Washington

2009-09-23T01:30:00.000-07:00

By Brian Bandler

Home seekers have been flocking the City of Kent, Washington for quite some time now in search of new homes to which they can relocate. Even the global financial meltdown could not do enough damage to dampen the real estate market in this magnificent city. Thus, you might as well ask why Kent has such a strong pull that cannot even be swayed by the worst financial crisis since the Great Depression.

The robustness of the real estate market cannot be attributed to any single reason, as there are a plethora of factors that come into play here. The availability of a ready market is definitely key to this success story. With a projected population growth rate of just about 15%, Kent offers sufficient demand to lure real estate investors in their droves. With the forces of demand seeming to interact so freely, it is not surprising to learn that property prices have been kept at a case minimum and compares favorably with those of other regions.

The options available to homebuyers by way of financing and mortgages also contributes to the allure of Kent as the ultimate homeowners' destination. The interest rates charged on the mortgages are kept at a bare minimum at of 4% to entice prospective buyers to the Kent region. With a median income of $34287, mortgage houses are not in the least worried about defaulters as most buyers satisfy the debt-to-income ratio of do. In fact, other financial services are also arranged to provide a one-stop shop for homebuyers.

Perhaps the single most compelling reason that fuels the scramble for Kent is the circumstances prevailing within its locality. Sunny days average 196 days a year. The weather is fair ranging from a low of -1to 85 Fahrenheit. The rainfall yields 21 inches whereas snowfall yields 34 inches. With such excellent weather conditions, anyone would want to pay a fortune to come to Kent.

The demographic Structure of this City also says a lot on why it has refused to fade. With a median population of only thirty years, Kent boasts of relatively younger segment of the population still looking for stability. Most people in this category are yet to acquire homes and are busy shopping around for suitable options. This should be music in the ears property owners who know that if this situation persists, them they will laugh all the way to the bank.

Unemployment rates of below 5% implies that Kent offers better prospects to fresh graduates who flock here to get their big break in the job market. The moment they arrive here, they fall in love with the place and never want to look back thus keeping homeowners constantly supplied with buyers. The projection for future job growth stands at 10.7% meaning fresh graduates will keep flooding Kent for some years to come.

In conclusion, it is clearly obvious that real estate is the big thing in the City of Kent and any investor considering putting up property here should go right ahead. The same should be said of buyers looking for a place to buy a dream home. Don't look any further.

How to Overcome the Most Common Real Estate Agents' Challenges

2009-09-23T01:25:00.001-07:00

By Beverly Manago

Real estate agents, like all other marketers, face work-related challenges, of course. The most effective ones are those who have come up with great ways to overcome those tests. In general, the best strategy to overcome any form of property marketing challenge is to simply look at it in a fresh perspective. As a good agent, you should learn to ask the right questions before charging ahead. Here are several of the most common challenges real estate agents encounter and the corresponding guidelines to overcome them.

Challenge #1: You do not know much about marketing

Have you heard about 'analysis paralysis?' It is a condition wherein an agent or marketer gets to thoroughly analyze, scrutinize, and conceptualize all elements of every marketing campaign until the point that nothing is actually done. You do not have to be an expert marketer to be a good real estate agent. Most of the time, you have to gain and accumulate actual and practical experiences, which should come from actual and practical experiences you would go through as you sell properties. Do not give much damn to the theoretical and academic concepts of marketing. Know the properties you sell and present them to prospective buyers the way you know those homes.

Challenge #2: You do not know exactly where to start

It is always hard to start accomplishing things, especially in real estate marketing. If you are a beginner, strive to start with the common basics. Determine your goals first to make the whole process much easier. To gain direction, be specific when setting goals. For example, you could aim to put up an educational Website that would feature free downloads and actual reports. In line with this, you should promote that online site through sending out direct mail. In the process, at least 20 new leads should be captured every month. Now that goal is specific, directional, and logically measurable.

Challenge #3: You do not know much about technology

Technology has clearly become an important aspect of every marketing initiative, especially these days. Current marketing tools like list management and Website creation have become more user-friendly than ever, making technology useful to even people with not much technical skills and technological awareness. If you are still not comfortable about technology you could use, seek the assistance of vendors who are very much willing to step in.

Challenge #4: You are new to the real estate industry

All real estate experts were also newbies in the industry at some point in the past. Real estate agents surely pass through hard initiation process upon entry into the industry. If they have managed to make it, so could you. If you are not that comfortable about your credentials, make it up with your personal behavior. Most prospective clients judge and trust real estate agents based on behavior instead of credentials. Also be professional when putting up and sending marketing message. Create strong impression by observing proper spelling, good grammar, aesthetic professional design, and effective delivery of message. The strong impression you could make could surely make you shine.

What is a Real Estate Option?

2009-09-22T20:31:00.000-07:00

By Wendy Polisi

In the real estate market, an option is essentially an agreement between a seller and a potential buyer to purchase a specific property at some point in the future. Such options are rarely sold during boom periods in a real estate market, because they limit the seller's choices. Nevertheless, they are common in periods of declining property values or in specific real estate markets that the seller has invested in and now seeks to get out of.

Most aspects of option agreements are negotiable, although some states and localities impose restrictions or mandate certain terms. The general idea is that the potential buyer pays the seller an option fee, which gives the potential buyer the option of purchasing the property at the end of the agreement. An option also prevents the seller from selling it to someone else during the period that the agreement is in force. The length of an option is negotiable, although most are for a period of between one and three years. The longer the option, the more likely it is that the actual value of the property will diverge from the fixed amount agreed to in the option agreement.

Although there is nothing inherent about an option agreement that dictates that the final purchase price be fixed, this is usually part of an option as without it the option makes little sense for the buyer. Fixing the price means that the buyer gets the option to purchase the property at an agreed price, regardless of what the actual value of the property is at the time that the option expires. Further, the option holder also usually has the right to sell the option to a third party as long as the agreement is in force, making it a tradable commodity in its own right.

The seller automatically receives the option fee, which is rarely refundable. The amount of the option fee is subject to negotiation and there is no fixed limit. Some sellers, desperate to unload a property will offer an option fee as low a one dollar, though a more typical amount is between one and five percent of the agreed upon sale price. This is the primary benefit to the seller, and if a property is currently losing the owner money, selling an option can help offset this significantly. Selling an option also radically increases the chance of attracting a buyer for the property, though the buyer is not obligated to exercise the option and purchase the property at the end of the agreement.

In this respect, options are popular among real estate speculators, especially when the option fee is extremely low. As there is no obligation on the part of the buyer to exercise the option and purchase the property and the option can be sold by the buyer to another party, low cost options are useful in real estate speculation. If the property value increases over the period of the option, then the owner of the option stands to make a solid profit through buying the property at the lower amount agreed to in the option. Conversely, if the property value declines in value, the option holder can decide not to purchase the property and forfeit his option fee.

For the average person, an option may be useful if there is a determination to buy a home in a particular area for reasons other than investment. An option also allows the buyer to "hold" the property for the duration of the agreement, allowing them to raise the required funds for the down payment and make other arrangements for the purchase of the property. The availability of options is usually indicative of a buyer's market and tend to benefit the buyer more than the seller; but they can also provide some relief to sellers as well. People looking to buy a home in the future, but not in a position to do so presently, may find options extremely useful.

The Number One Way to Obtain State Unclaimed Property Online

2009-09-22T20:27:00.000-07:00

By Jeremy Lambert

The number one way to obtain state unclaimed property online by using a website with a search box feature for any state unclaimed property database. An unclaimed assets website is developed to search this files instantly by state unclaimed record experts to assist you in your efforts to search for funds that may belong to you or your relatives. It searches among the individual states as to which state abandoned property might be yours.

Get your lost property for a small fee with a search of the state unclaimed property databases. You can receive your state unclaimed property records in seconds after filling out the simple search box online. Over 90% of people have some sort of lost personal property out there just waiting on them. Of all the different available ways to get this information, the online search is the fastest.

There is a huge chance of you finding lost money or property with one simple little search. Everybody wants that extra money back. You and the people you know can get theirs from a great unclaimed assets search site today. The money and lost property is out there on those databases for you to find instantly. Take that minute or two to search for your cash online and you will be happy you did it. Think about the look on your friends and family members faces when you show them that they have money and property they did not even know existed. It will be well worth it to spend that little change to find unlimited amounts of lost property and cash online.

Learn the Way to Find Unclaimed State Property Online

2009-09-22T20:24:00.000-07:00

By Jeremy Lambert

If you want to learn the way to find unclaimed state property online then this is your article. First thing to learn is that there is an enormous amount of unclaimed property records to search through. They are being stockpiled throughout the country on a multitude of unclaimed storage databases. You will need to search these to find all your lost assets that are available to you. The best way to accomplish these feat is to search more then one at a time with specific state unclaimed records search boxes. You will quickly realize if the site on your browser has a search box or not.

If it does and you are really interested in finding your money then you fill out the simple search box for submission. You will receive results quickly and you can see if it is worth your money to look for information. Many citizens are in these listings and can easily obtain thousands of dollars by getting their search results, if you are listed. This can help with the scrambling to find all possible sources of extra cash flow.

Now you have had a crash course on how to learn the way to find unclaimed state property online, now where should you find one of these sites? If you just search a keyword related to your search interest such as lost money or what not, you will surely find an adequate website with search box options in the first pages of results. You may also follow the links from this article and find a search box instantly.

Home Inspections and Tests - Know the Facts

2009-09-22T20:23:00.001-07:00

By Joe Cline

The benefits of performing a home inspection before purchasing a new home are well known and documented, but you may not have considered the advantages a home inspection report can provide even if your home is not for sale. In fact, there are a number of inspections and tests available for Austin homeowners that can help you anticipate problems and even protect your family's safety. Besides a thorough home inspection, experts recommend testing your home for mold, radon, asbestos, lead paint, and pest infestation to ensure your home is safe and in optimal condition. Customers of Austin Energy can also schedule a free home energy analysis from local companies partnered with the utility.

General home inspection

Home inspection reports provide valuable information about the condition of your home. That information can be vital to you as a homeowner, no matter how long you've owned your house. Scheduling a professional home inspection will give you a clear assessment of the various systems in your home, including an estimated time frame for replacement and a general idea of what kinds of repairs may be necessary. You will be able to plan for repairs and replacements of older systems in advance, allowing a measure of financial control and preventing unexpected breakdowns.

Mold

The U.S. Department of Housing and Urban Development (HUD) has identified toxic mold as a health risk, especially for people suffering from allergies or asthma. Mold can grow almost anywhere in your home and can be difficult to spot, since it prefers damp, dark areas. A mold inspection can determine whether toxic mold is presenting a health risk for you and your family, and offer options for remedying the problem.

Radon

HUD recommends that homeowners test their property for dangerous levels of radon. Radon, a colorless and odorless gas, is radioactive and can cause lung cancer in high dosages. Professional radon testers can measure the level of radon in your home and, if high levels of radon exist, assist you in repairing the problem before it causes serious health problems. Home testing kits are also available, and some do-it-yourself kits for radon remediation can produce satisfactory results if used properly.

Asbestos

Mostly found in older homes, asbestos insulation can also cause cancer. While this problem is sometimes found during a general home inspection, asbestos remediation companies have expertise in identifying and removing asbestos insulation safely and without further risk to you and your family. Because of the toxic nature of asbestos and the difficulty in removing it completely, this is not a project you should try to undertake on your own.

Lead Paint

Homes built before 1978 may contain lead-based paint; this can cause lead poisoning and cause serious medical problems, including brain damage and birth defects. It's estimated that 1.7 million children may be affected by some degree of lead poisoning. Lead-based paint inspections are comparatively inexpensive; if your home was built before 1978, it's worth your while to schedule this inspection and ensure your home's safety.

Termite and Pest Inspection

In order to preserve the structural integrity of your home, termite inspections are an important part of your yearly maintenance schedule. If caught early, termites and other pests can be stopped before they do serious damage. General home inspections do not always cover insect damage, so a separate inspection is a good idea. If no infestation is found, most companies can recommend a preventive program to keep your home free from these pests and the damage they can do.

Austin Energy Analysis

Austin Energy has partnered with local companies to provide free walk-through energy audits for its customers. Especially geared toward promoting energy efficiency, these audits will check on the condition of your heating and cooling system, insulation, duct work, and the general condition of door and window frames. The company will then make suggestions about how you can improve your home's energy efficiency. This free service is part of Austin Energy's green initiative, and can save you hundreds of dollars each year in energy costs.

Knowing the condition of your home will allow you to plan improvements and repairs in advance. Additionally, some types of home inspections can save you money, preserve your home's condition and even protect your family's health: all good reasons to have your home thoroughly tested and inspected as soon as possible. These small investments can reap enormous rewards in health, safety, and comfort for you and your family.

Do You Need a Survey When Buying Or Selling a House?

2009-09-22T20:19:00.001-07:00

By Rob Davy

When you're buying a house, you may be tempted to skip having a survey done -- after all, it may seem like an unnecessary extra expense on top of an already expensive purchase. Here are a few reasons we always recommend the buyer get a survey.

As some of the most experienced property surveyors in Waukesha County, Wisconsin, we can tell you that getting a survey when you buy a house is usually a smart idea. Many lot lines and fences have been built without a property survey in place, and if you buy a house without being aware of these issues, you can be in for some painful (and expensive) legal problems.

An old survey is certified to the seller, not to the buyer. Your new survey should be conducted and certified to you, the buyer. Your new survey will locate existing improvements (including any new ones since the old survey), easements, and identify any encroachments over the lot lines (driveways, fences, buildings, etc.) Optional items to consider adding to the survey are setting lot corner irons, marking lot lines, and identifying areas within the flood plain.

Knowledge of the flood plain is especially important, as we discovered here in Waukesha County last year. Extensive flood damage caught many homeowners unaware, some of whom may have bought flood insurance had they known their property had issues.

An experienced survey team can make all the difference. A current, thorough, and professional survey can give you peace of mind for your important home purchase.

Why Should I Sell My Real Estate Note?

2009-09-22T20:16:00.000-07:00

By Robert E Young

Private Mortgage Notes, often referred to as Owner Financed Notes, are more and more common in today's economy. Owner Financing offers advantages that traditional lending methods do not in the sale of real estate. Conversely, situations change, and the note holder may need to rethink his position. I am often asked the question by note holders and clients, Why Should I Sell My Note? What benefit is it to me? Many note holders enjoy going to the mailbox once a month and receiving a check. Below are some points to think about and help you decide of whether to hold a real estate note or not.

* Owner Financing was offered by the property seller and they need the CASH quickly, after closing, to purchase another property. Often referred to as a Green note.

* In some instances the note holder may have an immediate need for CASH and more than the schedule principle and interest.

* The note holder has identified another investment or another property that he/she want to purchase and needs a lump sum of cash top do so.

* The payor of the note has become irregular in their payments and often late, the sale relieves collection concerns.

* The sale of the note relieves delinquency, foreclose or bankruptcy concerns.

* The property secured to the note is damaged or destruction of the property has occured.

* IRS report requirements have become an issue

* Death or Divorce to the payor has created an unfavorable circumstance.

* Unpaid Real Estate taxes

* A lapse in property insurance.

The last thing I want to leave you with looks at the Time Value of Money. Is a LUMP SUM of CASH worth more to you today than receiving monthly payment for the next 5 - 10 years? Put another way would you rather collect $1200.00 a month for the next several years or would rather receive $110,000 today. There are many other reasons that can entice the sale of a note, these are just a few of the more common reasons that occur.

Ownerless Property - Is There Such a Thing in the UK?

2009-09-22T19:51:00.000-07:00

By Rob Fellowman

The Land Registry in the UK has recently campaigned to encourage more people to come forward to register their property or land but at present over 40% of land is still unregistered in England and Wales. As HM Land Registry points out all land is owned by someone. Even if a person with no relatives has died without leaving a will there will still be an owner, they might not even know they are the owner!

There does seem to be an abundance of websites offering the knowhow to claim unregistered land or property but the fact is this is extremely difficult to do as during the process the owner will usually surface or another person will come forward with a counter claim. These sites usually advise that you place a fence around the land or change the locks on a building as helps when claiming ownership, please bear in mind the cost of fencing off a large field only for the owner to come out of the woodwork to question what you are doing, if you are serious about owning the land then it would be easier to instruct a company to trace the owner of unregistered land on your behalf.

If you want to know who owns a piece of land or a property the first thing to do is find out who owns that property via a company who can provide this information for you, If this comes up blank, you then have to start the detective work.

The cheapest way to find out who owns a piece of land is to make local enquiries. But potential claimants should be wary of giving away too much about their motivation.

The local pub and the vicar may also come up with useful information, and the post office will know if mail is ever delivered to the address. Finding the owners of unregistered land can be a difficult task so it may be easier to use a specialist company to locate the land owners for you.

If your property is unregistered, even if it is empty, you should still have a bundle of deeds and records from previous sales and mortgages that can prove your ownership in case of a dispute.
But your best option is to register the property with HM Land Registry as soon as you can, this will stop any claims before they start.

Good luck finding the owners of unregistered land.