Each, day thousands of real estate professionals go online to research real estate software. But what is real estate software, and how can it help you improve your real estate business? These are the questions we will address here.
What is Real Estate Software?
When we talk about real estate software, we're actually covering a wide spectrum of software products. In general terms, real estate software is any software that helps you manage some aspect of your real estate business.
The "some aspect" part of that definition is important, because to date there is no real estate software that will help you manage all aspects of your business. Instead, most types of real estate software are designed to help you manage a certain element of your business, like contract preparation for example.
Various Types of Real Estate Software
Below, we look at some of the most popular types of real estate software. As you will see, each type of software is designed to help you perform a certain part of your real estate business. Please note that this list is not all-inclusive. There are more types of real estate software than I could possibly cover in this one resource. So at the end of this guide, I've listed some additional resources where you can find any type of real estate-related software imaginable.
Content Management Systems
Some types of real estate software are designed to help you manage property listings on your website. Basically, these are content management systems (CMS) that have been adapted for real estate purposes. A good example of such a program would be Realty Manager by Interactive Tools.
Such programs allow you to add, edit or remove property listings (including house photos) within your real estate website -- without any knowledge of web coding. If you have listings on your website that require constant management, you can see the convenience of this kind of real estate software.
Real Estate Contract Software
As the name implies, this type of real estate software helps agents prepare real estate contracts. As you well know, contracts are a big (and often time-consuming) part of the real estate business. So anything that can streamline and simplify the process would be welcomed by real estate agents. That's what contract-management software strives to do.
One of the best features of real estate contract software -- a feature you should look for when purchasing this type of software -- is the ability to create contract templates by pulling in required disclosures and other commonly used items from your city and state. This way, once you have the real estate contract software set up how you want, you would simply enter new client details and listing prices to generate contracts.
Real Estate CMA Software
Once again, the name tells you what this type of real estate software does. CMA software helps you prepare comparable listings / sales reports that you can show to clients. The biggest benefits of this type of software are time savings, professional appearance, and basic mathematical functions. CMA software will help you produce an attractive and informative CMA report in less time than doing it without software assistance.
Contact Management Software
Contact management software is not to be confused with contract management software. Though they only differ by one letter, these two types of software have nothing in common. Contact management software helps you manage your contacts, or client communications.
Most of these applications are built around databases. You enter client information into the database (with details such as name, phone number, neighborhood of interest, etc.), and then you can easily search the data later.
When choosing a contact management solution, look for one that allows customization of the data fields. You want the ability to create whatever info fields for each contact that's important to you. All of these programs will let you enter the basics, like name, phone number, address and the like. But what if you wanted to also label people with buyer vs. seller? Or by price range? Or by the neighborhoods they're interested in? You'll need this kind of flexibility, and any good contact managements solution should offer it.
Real Estate Educational Software
This is another popular type of real estate software. As the name implies, this kind of software helps you advance your professional education. The most common types of real estate educational software are the test preparation programs. These programs help you prepare for state licensing exams and other real estate-related professional exams. For just about every real estate exam you can imagine, there's a piece of software that can help you prepare for it.
Virtual Tour Software
Virtual tours are extremely popular among real estate professionals these days. Home buyers love virtual tours, so when you add them to your real estate website, you've increased your website's value for your key audience. The only problem is, virtual tours are not an easy thing to put together. That's where this type of real estate software comes in.
One way to create virtual tours is to have a virtual tour company do it for you. With this option, you shoot the photos or film footage yourself, and send it to a virtual tour company who creates the finished product. But for the more adventurous agents, there is also the virtual tour software path. Using this software, the agent creates his or her own virtual tours, using photos taken by the agents themselves.
Real Estate Website Software
This software covers a pretty broad spectrum. Real estate website software can help you with many aspects of your website, from creating graphics to capturing leads. But one product rarely does it all. Most types of real estate website software are highly specialized, performing a certain aspect of website enhancement.
Conclusion
So we've seen that for every type of real estate business function, there's a piece of software to help you do it more efficiently and (ideally) more effectively. Does that mean you need all of the real estate software on this list? Obviously not. My advice is to look at the business functions where you spend the most time, and shop for a software product that can simplify that process for you.
It's also a good idea to play around with different types of real estate software before buying. Most software vendors have either a free trial or an online demo through which you can judge the product for yourself. If you come across a software vendor who offers neither of these trial options, then keep shopping. When purchasing real estate software, always follow the rule of "try before you buy."
* You may republish this article online if you retain the author's byline and the active hyperlinks below. Copyright 2007, Brandon Cornett.
Learn More
The author has created an ehanced version of this article with links to related resources, software vendors and more. To learn more, visit the author's guide to real estate software, located at: http://www.learnaboutsoftware.com/real-estate-software.php
Article Source: http://EzineArticles.com/?expert=Brandon_Cornett
Tuesday, 28 September 2010
Friday, 24 September 2010
Real Estate Development Made Easy.
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Monday, 20 September 2010
The Future of Commercial Real Estate
Although serious supply-demand imbalances have continued to plague real estate markets into the 2000s in many areas, the mobility of capital in current sophisticated financial markets is encouraging to real estate developers. The loss of tax-shelter markets drained a significant amount of capital from real estate and, in the short run, had a devastating effect on segments of the industry. However, most experts agree that many of those driven from real estate development and the real estate finance business were unprepared and ill-suited as investors. In the long run, a return to real estate development that is grounded in the basics of economics, real demand, and real profits will benefit the industry.
Syndicated ownership of real estate was introduced in the early 2000s. Because many early investors were hurt by collapsed markets or by tax-law changes, the concept of syndication is currently being applied to more economically sound cash flow-return real estate. This return to sound economic practices will help ensure the continued growth of syndication. Real estate investment trusts (REITs), which suffered heavily in the real estate recession of the mid-1980s, have recently reappeared as an efficient vehicle for public ownership of real estate. REITs can own and operate real estate efficiently and raise equity for its purchase. The shares are more easily traded than are shares of other syndication partnerships. Thus, the REIT is likely to provide a good vehicle to satisfy the public’s desire to own real estate.
A final review of the factors that led to the problems of the 2000s is essential to understanding the opportunities that will arise in the 2000s. Real estate cycles are fundamental forces in the industry. The oversupply that exists in most product types tends to constrain development of new products, but it creates opportunities for the commercial banker.
The decade of the 2000s witnessed a boom cycle in real estate. The natural flow of the real estate cycle wherein demand exceeded supply prevailed during the 1980s and early 2000s. At that time office vacancy rates in most major markets were below 5 percent. Faced with real demand for office space and other types of income property, the development community simultaneously experienced an explosion of available capital. During the early years of the Reagan administration, deregulation of financial institutions increased the supply availability of funds, and thrifts added their funds to an already growing cadre of lenders. At the same time, the Economic Recovery and Tax Act of 1981 (ERTA) gave investors increased tax “write-off” through accelerated depreciation, reduced capital gains taxes to 20 percent, and allowed other income to be sheltered with real estate “losses.” In short, more equity and debt funding was available for real estate investment than ever before.
Even after tax reform eliminated many tax incentives in 1986 and the subsequent loss of some equity funds for real estate, two factors maintained real estate development. The trend in the 2000s was toward the development of the significant, or “trophy,” real estate projects. Office buildings in excess of one million square feet and hotels costing hundreds of millions of dollars became popular. Conceived and begun before the passage of tax reform, these huge projects were completed in the late 1990s. The second factor was the continued availability of funding for construction and development. Even with the debacle in Texas, lenders in New England continued to fund new projects. After the collapse in New England and the continued downward spiral in Texas, lenders in the mid-Atlantic region continued to lend for new construction. After regulation allowed out-of-state banking consolidations, the mergers and acquisitions of commercial banks created pressure in targeted regions. These growth surges contributed to the continuation of large-scale commercial mortgage lenders [http://www.cemlending.com] going beyond the time when an examination of the real estate cycle would have suggested a slowdown. The capital explosion of the 2000s for real estate is a capital implosion for the 2000s. The thrift industry no longer has funds available for commercial real estate. The major life insurance company lenders are struggling with mounting real estate. In related losses, while most commercial banks attempt to reduce their real estate exposure after two years of building loss reserves and taking write-downs and charge-offs. Therefore the excessive allocation of debt available in the 2000s is unlikely to create oversupply in the 2000s.
No new tax legislation that will affect real estate investment is predicted, and, for the most part, foreign investors have their own problems or opportunities outside of the United States. Therefore excessive equity capital is not expected to fuel recovery real estate excessively.
Looking back at the real estate cycle wave, it seems safe to suggest that the supply of new development will not occur in the 2000s unless warranted by real demand. Already in some markets the demand for apartments has exceeded supply and new construction has begun at a reasonable pace.
Opportunities for existing real estate that has been written to current value de-capitalized to produce current acceptable return will benefit from increased demand and restricted new supply. New development that is warranted by measurable, existing product demand can be financed with a reasonable equity contribution by the borrower. The lack of ruinous competition from lenders too eager to make real estate loans will allow reasonable loan structuring. Financing the purchase of de-capitalized existing real estate for new owners can be an excellent source of real estate loans for commercial banks.
As real estate is stabilized by a balance of demand and supply, the speed and strength of the recovery will be determined by economic factors and their effect on demand in the 2000s. Banks with the capacity and willingness to take on new real estate loans should experience some of the safest and most productive lending done in the last quarter century. Remembering the lessons of the past and returning to the basics of good real estate and good real estate lending will be the key to real estate banking in the future.
Chad Mayes is the creator of CEMLending.com [http://www.cemlending.com], a resource which provides commercial mortgage loan financing and hard money lending options. This article is copyright of CEMLending.com [http://www.cemlending.com]. This article may be reproduced as long as author's name and all links remain intact.
Article Source: http://EzineArticles.com/?expert=Chad_Mayes
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Syndicated ownership of real estate was introduced in the early 2000s. Because many early investors were hurt by collapsed markets or by tax-law changes, the concept of syndication is currently being applied to more economically sound cash flow-return real estate. This return to sound economic practices will help ensure the continued growth of syndication. Real estate investment trusts (REITs), which suffered heavily in the real estate recession of the mid-1980s, have recently reappeared as an efficient vehicle for public ownership of real estate. REITs can own and operate real estate efficiently and raise equity for its purchase. The shares are more easily traded than are shares of other syndication partnerships. Thus, the REIT is likely to provide a good vehicle to satisfy the public’s desire to own real estate.
A final review of the factors that led to the problems of the 2000s is essential to understanding the opportunities that will arise in the 2000s. Real estate cycles are fundamental forces in the industry. The oversupply that exists in most product types tends to constrain development of new products, but it creates opportunities for the commercial banker.
The decade of the 2000s witnessed a boom cycle in real estate. The natural flow of the real estate cycle wherein demand exceeded supply prevailed during the 1980s and early 2000s. At that time office vacancy rates in most major markets were below 5 percent. Faced with real demand for office space and other types of income property, the development community simultaneously experienced an explosion of available capital. During the early years of the Reagan administration, deregulation of financial institutions increased the supply availability of funds, and thrifts added their funds to an already growing cadre of lenders. At the same time, the Economic Recovery and Tax Act of 1981 (ERTA) gave investors increased tax “write-off” through accelerated depreciation, reduced capital gains taxes to 20 percent, and allowed other income to be sheltered with real estate “losses.” In short, more equity and debt funding was available for real estate investment than ever before.
Even after tax reform eliminated many tax incentives in 1986 and the subsequent loss of some equity funds for real estate, two factors maintained real estate development. The trend in the 2000s was toward the development of the significant, or “trophy,” real estate projects. Office buildings in excess of one million square feet and hotels costing hundreds of millions of dollars became popular. Conceived and begun before the passage of tax reform, these huge projects were completed in the late 1990s. The second factor was the continued availability of funding for construction and development. Even with the debacle in Texas, lenders in New England continued to fund new projects. After the collapse in New England and the continued downward spiral in Texas, lenders in the mid-Atlantic region continued to lend for new construction. After regulation allowed out-of-state banking consolidations, the mergers and acquisitions of commercial banks created pressure in targeted regions. These growth surges contributed to the continuation of large-scale commercial mortgage lenders [http://www.cemlending.com] going beyond the time when an examination of the real estate cycle would have suggested a slowdown. The capital explosion of the 2000s for real estate is a capital implosion for the 2000s. The thrift industry no longer has funds available for commercial real estate. The major life insurance company lenders are struggling with mounting real estate. In related losses, while most commercial banks attempt to reduce their real estate exposure after two years of building loss reserves and taking write-downs and charge-offs. Therefore the excessive allocation of debt available in the 2000s is unlikely to create oversupply in the 2000s.
No new tax legislation that will affect real estate investment is predicted, and, for the most part, foreign investors have their own problems or opportunities outside of the United States. Therefore excessive equity capital is not expected to fuel recovery real estate excessively.
Looking back at the real estate cycle wave, it seems safe to suggest that the supply of new development will not occur in the 2000s unless warranted by real demand. Already in some markets the demand for apartments has exceeded supply and new construction has begun at a reasonable pace.
Opportunities for existing real estate that has been written to current value de-capitalized to produce current acceptable return will benefit from increased demand and restricted new supply. New development that is warranted by measurable, existing product demand can be financed with a reasonable equity contribution by the borrower. The lack of ruinous competition from lenders too eager to make real estate loans will allow reasonable loan structuring. Financing the purchase of de-capitalized existing real estate for new owners can be an excellent source of real estate loans for commercial banks.
As real estate is stabilized by a balance of demand and supply, the speed and strength of the recovery will be determined by economic factors and their effect on demand in the 2000s. Banks with the capacity and willingness to take on new real estate loans should experience some of the safest and most productive lending done in the last quarter century. Remembering the lessons of the past and returning to the basics of good real estate and good real estate lending will be the key to real estate banking in the future.
Chad Mayes is the creator of CEMLending.com [http://www.cemlending.com], a resource which provides commercial mortgage loan financing and hard money lending options. This article is copyright of CEMLending.com [http://www.cemlending.com]. This article may be reproduced as long as author's name and all links remain intact.
Article Source: http://EzineArticles.com/?expert=Chad_Mayes
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compasscommercialfinance.com
UK Property Investment
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Monday, 6 September 2010
Buying Foreclosed Homes - How To Secure Financing
Whether you are buying foreclosed homes for profit or private use, you will still need financing to secure your purchase. Of course, the most convenient way to finance your purchase is still to use your own savings. However, if you can secure financing elsewhere without dipping into your own life savings, that could be more advantageous for you especially that cash now has become very important in sustaining our lifestyle.
Borrow From Family, Relatives and Friends
This is probably the easiest and best way to secure a financing for your home purchase. If you have generous family members, relatives and friends who can lend you the sum that you need, grab it. Family does not demand high interest rates and inflexible terms for one of their own. Loans secured from your family are acts of gratuitousness that you should be thankful for and if they can lend you the amount that you need for a fraction of interest, then seize that opportunity. You can also combine the sums that you will be able to gather from relatives and friends, if your family's loan is not sufficient. However, be mindful that these acts of liberality from them comes with high trust that you should not break at any cost.
Research Banks' Interest Rates
The most common financing known to those who are buying foreclosed homes is of course those that are given by banks. However, before you apply for one, make sure that you have researched the bank's interest rates as well as the terms of payment that they can afford to give you. Talk to the bank's loan officer and find out if they have varying interest rates for various types of credit. You may also want to check whether your credit will fall on a certain bracket and if you think that you might be perceived as high-risk, then you can take the necessary steps to correct your credit.
Apply For Preapproved Loans
When buying foreclosed homes, it is always advisable to secure a preapproved loan even prior to looking for a property to buy. This will allow you to get an idea of your credit health as well as direct you to work within a given set of budget. A preapproved loan will also eliminate any frustration that will arise from not being able to get the property you want just because your mortgage application has been denied.
Joseph B. Smith has been educating buyers on the finer points of buying foreclosed homes at ForeclosureDeals.com for over ten years. Contact Joseph B. Smith through ForeclosureDeals.com if you need help finding information about buying foreclosed homes.
Article Source: http://EzineArticles.com/?expert=Joseph_B._Smith
Borrow From Family, Relatives and Friends
This is probably the easiest and best way to secure a financing for your home purchase. If you have generous family members, relatives and friends who can lend you the sum that you need, grab it. Family does not demand high interest rates and inflexible terms for one of their own. Loans secured from your family are acts of gratuitousness that you should be thankful for and if they can lend you the amount that you need for a fraction of interest, then seize that opportunity. You can also combine the sums that you will be able to gather from relatives and friends, if your family's loan is not sufficient. However, be mindful that these acts of liberality from them comes with high trust that you should not break at any cost.
Research Banks' Interest Rates
The most common financing known to those who are buying foreclosed homes is of course those that are given by banks. However, before you apply for one, make sure that you have researched the bank's interest rates as well as the terms of payment that they can afford to give you. Talk to the bank's loan officer and find out if they have varying interest rates for various types of credit. You may also want to check whether your credit will fall on a certain bracket and if you think that you might be perceived as high-risk, then you can take the necessary steps to correct your credit.
Apply For Preapproved Loans
When buying foreclosed homes, it is always advisable to secure a preapproved loan even prior to looking for a property to buy. This will allow you to get an idea of your credit health as well as direct you to work within a given set of budget. A preapproved loan will also eliminate any frustration that will arise from not being able to get the property you want just because your mortgage application has been denied.
Joseph B. Smith has been educating buyers on the finer points of buying foreclosed homes at ForeclosureDeals.com for over ten years. Contact Joseph B. Smith through ForeclosureDeals.com if you need help finding information about buying foreclosed homes.
Article Source: http://EzineArticles.com/?expert=Joseph_B._Smith
AZ Foreclosures Push Supply Up to Historic Levels Allowing Investors to Reap 15 to 25% Cash-On-Cash
AZ Foreclosures
Arizona foreclosures have continued to be amongst the highest in the United States during the recent economic downturn. Behind Nevada, Arizona was the second leading state in July of 2010 with the amount of new foreclosed homes that hit the market. In Scottsdale and Phoenix, Arizona foreclosed homes on the market have reached record amounts. At one point in 2008 there was a 534% increase in the amount of AZ foreclosures listed in Phoenix. With so many homes in foreclosure investors are now poised to step in and take advantage of the situation.
AZ foreclosures not only affect home owners who lose their home but also other people who own homes in the area. With so many foreclosures, property values begin to plummet and other owners lose equity in their homes. This also affects people who may be trying to refinance their homes as banks will not lend them money if the homes do not have the necessary equity. In Arizona, foreclosures also have an influence on new home sales as buyers will be looking for discounts on property and unwilling to pay huge amounts of money for a new home.
If you are looking to invest in real estate then buying an Arizona foreclosure would likely be a wise investment on your part. As banks are looking to get rid of the large amount of inventory they have on hand they are selling inventory via auction so buyers who have cash to spare will be able to get deals on Arizona foreclosures. When banks have to foreclose on property they are already taking on a loss on the home and therefore are willing to sell it at a discounted price.
If you are interested in buying AZ foreclosures then you must be willing to move quickly on the property by contacting an acquisition specialist. Property listed for under $100,000 will likely have multiple bidders so you must make sure you are ready to move and submit a bid when you see a home listed for a price you like. If you want to get a jump on buying an Arizona foreclosure then you will want to work with an acquisitions specialist who can give you a head start. Acquisitions specialists will have access to lists which have pre-foreclosed homes on them. From these lists the acquisitions specialist will be able to tell you when a home will be foreclosed.
To get started on AZ foreclosures then you should contact an acquisitions specialist, one that has been in the market for some time and knows which homes are the best bargains when they hit the market. Don't make the mistake of thinking that going to the Trustee's Sales and bidding is all there is to it - it takes months of tracking and a team of at least 6 full-time skilled specialists to be successful in this highly competitive arena.
Keep in mind that foreclosure property can be used as rentals or as quick flips to other buyers. Properties which are selling for cheap and only need minor repairs will be the best properties to invest in as you can flip them relatively quickly. However if you are cash rich you can also hold the properties until the market corrects itself, and in the mean time, you can be making 15 to 25% cash-on-cash returns in a high-demand rental market.
Michael L Amsberry
Acquisitions Team Manager
http://CheapHomesEasy.com/AZ_Foreclosures
877-780-4696 extension 802
cell phone 480-205-0567
Article Source: http://EzineArticles.com/?expert=Michael_Amsberry
Arizona foreclosures have continued to be amongst the highest in the United States during the recent economic downturn. Behind Nevada, Arizona was the second leading state in July of 2010 with the amount of new foreclosed homes that hit the market. In Scottsdale and Phoenix, Arizona foreclosed homes on the market have reached record amounts. At one point in 2008 there was a 534% increase in the amount of AZ foreclosures listed in Phoenix. With so many homes in foreclosure investors are now poised to step in and take advantage of the situation.
AZ foreclosures not only affect home owners who lose their home but also other people who own homes in the area. With so many foreclosures, property values begin to plummet and other owners lose equity in their homes. This also affects people who may be trying to refinance their homes as banks will not lend them money if the homes do not have the necessary equity. In Arizona, foreclosures also have an influence on new home sales as buyers will be looking for discounts on property and unwilling to pay huge amounts of money for a new home.
If you are looking to invest in real estate then buying an Arizona foreclosure would likely be a wise investment on your part. As banks are looking to get rid of the large amount of inventory they have on hand they are selling inventory via auction so buyers who have cash to spare will be able to get deals on Arizona foreclosures. When banks have to foreclose on property they are already taking on a loss on the home and therefore are willing to sell it at a discounted price.
If you are interested in buying AZ foreclosures then you must be willing to move quickly on the property by contacting an acquisition specialist. Property listed for under $100,000 will likely have multiple bidders so you must make sure you are ready to move and submit a bid when you see a home listed for a price you like. If you want to get a jump on buying an Arizona foreclosure then you will want to work with an acquisitions specialist who can give you a head start. Acquisitions specialists will have access to lists which have pre-foreclosed homes on them. From these lists the acquisitions specialist will be able to tell you when a home will be foreclosed.
To get started on AZ foreclosures then you should contact an acquisitions specialist, one that has been in the market for some time and knows which homes are the best bargains when they hit the market. Don't make the mistake of thinking that going to the Trustee's Sales and bidding is all there is to it - it takes months of tracking and a team of at least 6 full-time skilled specialists to be successful in this highly competitive arena.
Keep in mind that foreclosure property can be used as rentals or as quick flips to other buyers. Properties which are selling for cheap and only need minor repairs will be the best properties to invest in as you can flip them relatively quickly. However if you are cash rich you can also hold the properties until the market corrects itself, and in the mean time, you can be making 15 to 25% cash-on-cash returns in a high-demand rental market.
Michael L Amsberry
Acquisitions Team Manager
http://CheapHomesEasy.com/AZ_Foreclosures
877-780-4696 extension 802
cell phone 480-205-0567
Article Source: http://EzineArticles.com/?expert=Michael_Amsberry
Sunday, 5 September 2010
Lowest Mortgage Refinance Rates Ever
Looking for the lowest mortgage refinance rates? Then read this interesting piece of info.Mortgage rates dipped to another new low this week - 4.42 percent on a 30-year loan. That's the lowest since Freddie Mac has got since 1971. So, yes, if you are thinking of mortgage refinancing, this is the right time. Rates may go lower in the next few weeks but no one really can guess. By the time, they hit rock bottom, people may not realize it.
The general perception among most economists is that the sluggish US economy may just gather steam and the interest rates may rise. If you do not lock in now, chances are so much that you will be kicking yourself on the back in the next two years for not taking the bus now. Mortgage interest rates are quite hard to predict. The Mortgage Bankers Association forecast last week that 30-year rates will be at 5 percent a year from now, and 5.8 percent in mid 2012.
If you are in a position to refinance your mortgage, you should count yourself lucky. In St. Louis, 18 percent of homes were valued less than the mortgage on them, according to the information from zillow.com, a famous real estate tracking firm. Most home owners are deprived of the 20 percent equity that is needed to avoid the costly private mortgage insurance.
People who have underwater mortgages can still refinance their mortgage if they have good payment records and their loan is assured or backed by Fannie Mae or Freddie Mac. These government operated agencies give room for the refinancing of mortgage loans up to 125 percent of the value of the home. If your present mortgage loan does not need mortgage insurance, you do not need it for refinancing. You can know more about how Fannie or Freddie backing up your loan at their respective websites.
If your credit score is less than 720, you may not get the best mortgage e rates. If it is under 640, you may find it hard to get mortgage. FICO says that the median credit score in the US for getting a good mortgage is 711.
People are looking towards moving from 30 year mortgage to 15 year mortgage. A loan of 15 years has averaged 3.9 percent in the previous week with 0.6 points. When we say points, we mean a percent of the loan paid by the borrower at the time of mortgage closure. You have to pay points to reduce the interest rate. The average 30-year mortgage rate of 4.42 percent includes 0.7 points. So, if you move that $150,000 mortgage to 15 years at a 4 percent rate would actually raise the monthly payment by $136. However, your family will be able to pay off the loan faster and save heavily on interest. Here is information on mortgage refinancing for people with bad credit.
You should shop around for a mortgage online. Actually, smaller banks offer better mortgage deals than bigger ones. You can shop at various banks, mortgage companies and credit unions as well. Find out what are the rates and the closing costs. Often the pattern is such that the lower rates imply higher closing costs and vice versa. Also be careful about the 'junk fees' that lenders use to artificially inflate their profits.
Check out the award winning personal finance blog
Article Source: http://EzineArticles.com/?expert=Arunraj_V.S.
The general perception among most economists is that the sluggish US economy may just gather steam and the interest rates may rise. If you do not lock in now, chances are so much that you will be kicking yourself on the back in the next two years for not taking the bus now. Mortgage interest rates are quite hard to predict. The Mortgage Bankers Association forecast last week that 30-year rates will be at 5 percent a year from now, and 5.8 percent in mid 2012.
If you are in a position to refinance your mortgage, you should count yourself lucky. In St. Louis, 18 percent of homes were valued less than the mortgage on them, according to the information from zillow.com, a famous real estate tracking firm. Most home owners are deprived of the 20 percent equity that is needed to avoid the costly private mortgage insurance.
People who have underwater mortgages can still refinance their mortgage if they have good payment records and their loan is assured or backed by Fannie Mae or Freddie Mac. These government operated agencies give room for the refinancing of mortgage loans up to 125 percent of the value of the home. If your present mortgage loan does not need mortgage insurance, you do not need it for refinancing. You can know more about how Fannie or Freddie backing up your loan at their respective websites.
If your credit score is less than 720, you may not get the best mortgage e rates. If it is under 640, you may find it hard to get mortgage. FICO says that the median credit score in the US for getting a good mortgage is 711.
People are looking towards moving from 30 year mortgage to 15 year mortgage. A loan of 15 years has averaged 3.9 percent in the previous week with 0.6 points. When we say points, we mean a percent of the loan paid by the borrower at the time of mortgage closure. You have to pay points to reduce the interest rate. The average 30-year mortgage rate of 4.42 percent includes 0.7 points. So, if you move that $150,000 mortgage to 15 years at a 4 percent rate would actually raise the monthly payment by $136. However, your family will be able to pay off the loan faster and save heavily on interest. Here is information on mortgage refinancing for people with bad credit.
You should shop around for a mortgage online. Actually, smaller banks offer better mortgage deals than bigger ones. You can shop at various banks, mortgage companies and credit unions as well. Find out what are the rates and the closing costs. Often the pattern is such that the lower rates imply higher closing costs and vice versa. Also be careful about the 'junk fees' that lenders use to artificially inflate their profits.
Check out the award winning personal finance blog
Article Source: http://EzineArticles.com/?expert=Arunraj_V.S.
Saturday, 4 September 2010
Modular Houses - Build Your Dream House
When it comes to the residential construction industry, modular houses are one of the fastest growing segments. Modular houses are a type of luxury homes which are constructed using latest techniques, keeping in mind the customer needs and specifications. What makes it unique is the fact that it is built in a climate-controlled factory. This way, it reduces the chances of weather related problems during construction. You can find these through luxury real estate, or build one yourself with factory settings or indoor situations, and later the house can be transported to your home site.
Design flexibility
Modular buildings give you hundreds of options and design possibilities. They offer customizable, efficient, and quick site-building houses. You can work with your house builder and manufacturer to determine the type and design of house that best suits your needs. These builders generally offer you a wide range of building plans to choose from. You can then apply for state building codes and upon being granted, you can modify and upgrade your construction specifications according to your own liking. You will be allowed to design your own floors and elevations, the interior decoration, style of windows, shades of colors, bath fixtures and much more. The possibilities are simply endless!
Benefits
Modular structures are more efficient than stick-built structures and also have lower cost. Some of the additional benefits that these buildings offer are:
• They have better quality control as they are built to protect the entire structure during the construction, thereby protecting from the harmful weather.
• During their construction, these houses undergo many inspections. A stick built structure may have two to three inspections, but a modular building has approximately 300 quality inspections and sometimes it includes third-party inspections to ensure the highest level of quality.
• These buildings are engineered to the highest standards of strength and are built stronger. Pieces are nailed and glued to add strength to the structure, which makes them more durable.
• Building such structures in factory settings greatly reduces waste materials, as much of the resources is recycled. The materials and supplies that are used during construction are not used on only one project, but rather they are saved and reused in the next structure as well.
• These buildings are energy-efficient and support the green movement, as many commercial and residential builders emphasize on the usage of green components. This process of building a dwelling in an assembly plant reduces time on a construction site, and minimizes the impact on the surrounding.
Custom modular houses
Through custom modular houses, middle-class and lower-income families are able to buy dwellings, because these structures are generally less expensive than traditional ones. Although lower in price, these structures are equally attractive as conventional buildings. Custom modular buildings can be specially made on different requests and specifications of the customers. For instance, you can demand for the number of bedrooms, bathrooms, or insist on additional rooms with square footage. Recent improvements in units have allowed builders and manufacturers to design dwellings with two fireplaces, custom kitchens and a better utilization of space.
Connor R. Sullivan has been researching an article about agents who sell luxury real estate and how this economic environment has affected their income. His article featured real estate agents who sell luxury homes.
Article Source: http://EzineArticles.com/?expert=Connor_R_Sullivan
Design flexibility
Modular buildings give you hundreds of options and design possibilities. They offer customizable, efficient, and quick site-building houses. You can work with your house builder and manufacturer to determine the type and design of house that best suits your needs. These builders generally offer you a wide range of building plans to choose from. You can then apply for state building codes and upon being granted, you can modify and upgrade your construction specifications according to your own liking. You will be allowed to design your own floors and elevations, the interior decoration, style of windows, shades of colors, bath fixtures and much more. The possibilities are simply endless!
Benefits
Modular structures are more efficient than stick-built structures and also have lower cost. Some of the additional benefits that these buildings offer are:
• They have better quality control as they are built to protect the entire structure during the construction, thereby protecting from the harmful weather.
• During their construction, these houses undergo many inspections. A stick built structure may have two to three inspections, but a modular building has approximately 300 quality inspections and sometimes it includes third-party inspections to ensure the highest level of quality.
• These buildings are engineered to the highest standards of strength and are built stronger. Pieces are nailed and glued to add strength to the structure, which makes them more durable.
• Building such structures in factory settings greatly reduces waste materials, as much of the resources is recycled. The materials and supplies that are used during construction are not used on only one project, but rather they are saved and reused in the next structure as well.
• These buildings are energy-efficient and support the green movement, as many commercial and residential builders emphasize on the usage of green components. This process of building a dwelling in an assembly plant reduces time on a construction site, and minimizes the impact on the surrounding.
Custom modular houses
Through custom modular houses, middle-class and lower-income families are able to buy dwellings, because these structures are generally less expensive than traditional ones. Although lower in price, these structures are equally attractive as conventional buildings. Custom modular buildings can be specially made on different requests and specifications of the customers. For instance, you can demand for the number of bedrooms, bathrooms, or insist on additional rooms with square footage. Recent improvements in units have allowed builders and manufacturers to design dwellings with two fireplaces, custom kitchens and a better utilization of space.
Connor R. Sullivan has been researching an article about agents who sell luxury real estate and how this economic environment has affected their income. His article featured real estate agents who sell luxury homes.
Article Source: http://EzineArticles.com/?expert=Connor_R_Sullivan
Friday, 3 September 2010
Doing Real Estate Deals With No Money Using Subject To Financing
This article is the first in a series of seventeen articles that will give people insight into how real estate investors are able to buy and sell real estate with little or no money, no credit and little or no risk. While it may seem impossible, tens of thousands of these transactions are done weekly throughout the country. Most home buyers are familiar with buying a home using the traditional method of shopping with a realtor, finding a home and getting a mortgage to pay for it. While traditional, this method is in no way related to the huge leverage afforded investors doing deals with creative financing.
The first and likely the most common method of an investor buying and holding a property for more than a few days, is to do what is called "subject to" purchase. This method allows the investor to purchase the property from the seller by keeping whatever existing mortgage that is in place at the time. The investor simply takes over the seller's mortgage payments from the date of the closing forward.
Over 30 years ago, lenders decided that they could make more money on refinancing home mortgages than allowing a new buyer to simply assume their existing mortgage on the property. Since the average homeowner only lives in his property for 5½ years, the reissuing of new mortgages became a primary source of revenue for lenders. The lenders ability to later bundle and resell these loans lead to an acceleration of lenders making loans and a huge profit stream.
To overcome the assumption clauses that were common in their early mortgages, lenders inserted what was called a "due on sale" clause. This clause basically stated that if a borrower (mortgagor) sold, transferred or exchanged the encumbered property, the mortgage was due and payable. If the borrower didn't pay off the mortgage at the sale or transfer, the mortgage was immediately subject to a foreclosure proceeding by the lender.
In actuality, as long as the lenders received the mortgage payments, they never pushed the issue of the transgression by the homeowner/borrower selling the property. The investors who do "subject to" transactions were able to control the properties with little or no money because of the financing in place, no credit qualifications by the lender and no market risk unless they had put money into the deal for the seller to leave.
The investor could simply get a warranty or quitclaim deed from the seller and file it at the local courthouse, continue making the mortgage payments and move into the property, rehab it for resale or rent it. In many cases the investor may have re-sold the property to another buyer and allowed the original seller's mortgage to stay in place.
Violating the due on sale clause is a violation of contractual law which would have to play out in the courts, versus criminal law which could result in stiff fines or penalties. Because of this, there is no Due on Sale Jail. In probably over 20,000+ subject to investor purchases there has never been any enforcement of the clause by lenders as long as the mortgage payments are being made. This could change and certain states are trying or may have passed legislation to make subject to purchases illegal. Always check with an attorney familiar with real estate law before you try a subject to.
The benefit to the seller of a subject to is the immediate sale of his property to an investor. The investor doesn't have to worry about bad credit or no major down payment, if any at all. The investor's market risk is limited to whatever equity he puts into the property at the original closing and afterward in upgrades or repairs.
However, the risk to the homeowner/seller is that the investor buyer, or the investor's buyer, will stop making mortgage payments and the lender will foreclose against the seller/homeowner. Even worse, is when a buyer makes late mortgage payments that will negatively impact the homeowner/borrower's credit. Even if the borrower calls the lender and snitches on the investor, the lender can only foreclose if the payments aren't being made or they invoke their rights on the due on sale clause - which they seldom do. The homeowner is left to suffer until the mortgage is paid off at another sale by the investor or until the lender forecloses. The late payments or foreclosure of the loan do not affect the credit of the investor because he is not the borrower.
In summary, investors have a powerful tool in using subject to financing to acquire a property. Common sense and prudence should be exercised so the seller is not exposed to potential credit damaging results of the sale. The benefit to the homeowner/seller can be immense as the relief of getting rid of a mortgage payment and the responsibilities of the property's maintenance in minutes. So, subject to financing can be a win-win for all parties involved if the risks are properly disclosed to the homeowner and appropriate documentation is signed by both parties to protect their interests.
About Author: Dave Dinkel has over 35 years experience in real estate investing which has given him a unique perspective into the real estate market. Dave is the author of the best-selling e-courses http://www.fsbopowersellingsystem.com/ and many other e-courses for investors and homeowners. Dave's focus in the past few years is educating the public in a manner that doesn't amount to paying for a master's degree. His recent contribution to this end is the e-course "48 Ways to Create a Massive Buyers List" which can be seen at http://www.MakingaBuyersList.com.
Article Source: http://EzineArticles.com/?expert=Dave_Dinkel
The first and likely the most common method of an investor buying and holding a property for more than a few days, is to do what is called "subject to" purchase. This method allows the investor to purchase the property from the seller by keeping whatever existing mortgage that is in place at the time. The investor simply takes over the seller's mortgage payments from the date of the closing forward.
Over 30 years ago, lenders decided that they could make more money on refinancing home mortgages than allowing a new buyer to simply assume their existing mortgage on the property. Since the average homeowner only lives in his property for 5½ years, the reissuing of new mortgages became a primary source of revenue for lenders. The lenders ability to later bundle and resell these loans lead to an acceleration of lenders making loans and a huge profit stream.
To overcome the assumption clauses that were common in their early mortgages, lenders inserted what was called a "due on sale" clause. This clause basically stated that if a borrower (mortgagor) sold, transferred or exchanged the encumbered property, the mortgage was due and payable. If the borrower didn't pay off the mortgage at the sale or transfer, the mortgage was immediately subject to a foreclosure proceeding by the lender.
In actuality, as long as the lenders received the mortgage payments, they never pushed the issue of the transgression by the homeowner/borrower selling the property. The investors who do "subject to" transactions were able to control the properties with little or no money because of the financing in place, no credit qualifications by the lender and no market risk unless they had put money into the deal for the seller to leave.
The investor could simply get a warranty or quitclaim deed from the seller and file it at the local courthouse, continue making the mortgage payments and move into the property, rehab it for resale or rent it. In many cases the investor may have re-sold the property to another buyer and allowed the original seller's mortgage to stay in place.
Violating the due on sale clause is a violation of contractual law which would have to play out in the courts, versus criminal law which could result in stiff fines or penalties. Because of this, there is no Due on Sale Jail. In probably over 20,000+ subject to investor purchases there has never been any enforcement of the clause by lenders as long as the mortgage payments are being made. This could change and certain states are trying or may have passed legislation to make subject to purchases illegal. Always check with an attorney familiar with real estate law before you try a subject to.
The benefit to the seller of a subject to is the immediate sale of his property to an investor. The investor doesn't have to worry about bad credit or no major down payment, if any at all. The investor's market risk is limited to whatever equity he puts into the property at the original closing and afterward in upgrades or repairs.
However, the risk to the homeowner/seller is that the investor buyer, or the investor's buyer, will stop making mortgage payments and the lender will foreclose against the seller/homeowner. Even worse, is when a buyer makes late mortgage payments that will negatively impact the homeowner/borrower's credit. Even if the borrower calls the lender and snitches on the investor, the lender can only foreclose if the payments aren't being made or they invoke their rights on the due on sale clause - which they seldom do. The homeowner is left to suffer until the mortgage is paid off at another sale by the investor or until the lender forecloses. The late payments or foreclosure of the loan do not affect the credit of the investor because he is not the borrower.
In summary, investors have a powerful tool in using subject to financing to acquire a property. Common sense and prudence should be exercised so the seller is not exposed to potential credit damaging results of the sale. The benefit to the homeowner/seller can be immense as the relief of getting rid of a mortgage payment and the responsibilities of the property's maintenance in minutes. So, subject to financing can be a win-win for all parties involved if the risks are properly disclosed to the homeowner and appropriate documentation is signed by both parties to protect their interests.
About Author: Dave Dinkel has over 35 years experience in real estate investing which has given him a unique perspective into the real estate market. Dave is the author of the best-selling e-courses http://www.fsbopowersellingsystem.com/ and many other e-courses for investors and homeowners. Dave's focus in the past few years is educating the public in a manner that doesn't amount to paying for a master's degree. His recent contribution to this end is the e-course "48 Ways to Create a Massive Buyers List" which can be seen at http://www.MakingaBuyersList.com.
Article Source: http://EzineArticles.com/?expert=Dave_Dinkel
Wednesday, 1 September 2010
Mastering The Art of Buying Foreclosed Properties
Buying foreclosed properties is a trade that needs to be well-developed in order to yield the maximum returns of the market. For one, it livens up the economy and provides a positive economic outlook and disposition in terms of overturning the dwindling and skeptical interest in the real estate market following the economic crises. Secondly, it enables people to seize for themselves opportunities that can give them desirable financial results. But like any other investment, foreclosure investing is an art that needs to be mastered.
Investigate The Market
Investigating the market means going beyond research. It also involves understanding and interpreting market conditions as well as gathering information from all possible resources regarding any and all opportunities that can be had from the foreclosures market. If you have the right information and are able to understand, then you can seize the perfect time to capture a great opportunity.
Do Comparable Analysis
When buying foreclosed properties, it is not enough that you know that what you are getting is a very large discount. You also need to make certain that you are getting the best deal out of everything that there is at a given time. Basically, this means that you need to know the prevailing market rates for a certain class of homes in a given locality bearing similar characteristics. This will give you an idea whether the price that you are being asked for a property is the most reasonable you can get at the moment.
Prepare Your Credit Report
Preparing your credit is as much important as getting a preapproved loan. This means that you are eliminating any and all possible risks or sources of frustrations that can jeopardize your chances of securing the best deals when you see them. A good and sound credit report will instantly boost your chances of locking in the good real estate deals for yourself.
Do A Thorough Property Inspection
When buying foreclosed properties, a property inspection is a step that nobody should miss. This will ensure that you are getting your money's worth and that you are well-prepared for the state of the foreclosure as they can be given to you. A thorough property inspection can give you an overall idea of whether you can proceed with the transaction despite knowing of the amount that it would take to place the house under rehab or to do the necessary repairs.
Joseph B. Smith has been educating buyers on the finer points of buying foreclosed properties at Foreclosure-Support.com for over five years. Contact Joseph B. Smith through Foreclosure-Support.com if you need help finding information about buying foreclosed properties.
Article Source: http://EzineArticles.com/?expert=Joseph_B._Smith
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MLA Style Citation:
Smith, Joseph B. "Mastering The Art of Buying Foreclosed Properties." Mastering The Art of Buying Foreclosed Properties. 31 Aug. 2010 EzineArticles.com. 1 Sep. 2010.
APA Style Citation:
Smith, J. B. (2010, August 31). Mastering The Art of Buying Foreclosed Properties. Retrieved September 1, 2010, from http://ezinearticles.com/?Mastering-The-Art-of-Buying-Foreclosed-Properties&id=4959376
Chicago Style Citation:
Smith, Joseph B. "Mastering The Art of Buying Foreclosed Properties." Mastering The Art of Buying Foreclosed Properties EzineArticles.com. http://ezinearticles.com/?Mastering-The-Art-of-Buying-Foreclosed-Properties&id=4959376 CloseRecommend This Article
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SendMost Recent EzineArticles from the Real-Estate:Foreclosures Category:
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Investigate The Market
Investigating the market means going beyond research. It also involves understanding and interpreting market conditions as well as gathering information from all possible resources regarding any and all opportunities that can be had from the foreclosures market. If you have the right information and are able to understand, then you can seize the perfect time to capture a great opportunity.
Do Comparable Analysis
When buying foreclosed properties, it is not enough that you know that what you are getting is a very large discount. You also need to make certain that you are getting the best deal out of everything that there is at a given time. Basically, this means that you need to know the prevailing market rates for a certain class of homes in a given locality bearing similar characteristics. This will give you an idea whether the price that you are being asked for a property is the most reasonable you can get at the moment.
Prepare Your Credit Report
Preparing your credit is as much important as getting a preapproved loan. This means that you are eliminating any and all possible risks or sources of frustrations that can jeopardize your chances of securing the best deals when you see them. A good and sound credit report will instantly boost your chances of locking in the good real estate deals for yourself.
Do A Thorough Property Inspection
When buying foreclosed properties, a property inspection is a step that nobody should miss. This will ensure that you are getting your money's worth and that you are well-prepared for the state of the foreclosure as they can be given to you. A thorough property inspection can give you an overall idea of whether you can proceed with the transaction despite knowing of the amount that it would take to place the house under rehab or to do the necessary repairs.
Joseph B. Smith has been educating buyers on the finer points of buying foreclosed properties at Foreclosure-Support.com for over five years. Contact Joseph B. Smith through Foreclosure-Support.com if you need help finding information about buying foreclosed properties.
Article Source: http://EzineArticles.com/?expert=Joseph_B._Smith
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Property Investment
25% annualised returns without risk to capital. See our case studies
www.ipinglobal.com
Top 10 Investment Bonds
Get 4.50% per annum Income yields! Compare the Latest Investment Bonds
www.Which4U.co.uk/Investment_Bonds
Sheffield Coupons
Join Groupon Sheffield & save big. 1 ridiculously huge coupon a day!
www.GROUPON.co.uk/Sheffield
Cheap Land for Sale
Cheap plots of Land for Sale in UK Free Brochure. Buy plots of Land.
www.landfinderuk.com
We will build your empire
Give us 6 months - We will source & buy you 10 quality properties
NationalPropertyTrade.com
Houses For Sale Altinkum
High quality affordable homes direct from builder 0% commission
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MLA Style Citation:
Smith, Joseph B. "Mastering The Art of Buying Foreclosed Properties." Mastering The Art of Buying Foreclosed Properties. 31 Aug. 2010 EzineArticles.com. 1 Sep. 2010
APA Style Citation:
Smith, J. B. (2010, August 31). Mastering The Art of Buying Foreclosed Properties. Retrieved September 1, 2010, from http://ezinearticles.com/?Mastering-The-Art-of-Buying-Foreclosed-Properties&id=4959376
Chicago Style Citation:
Smith, Joseph B. "Mastering The Art of Buying Foreclosed Properties." Mastering The Art of Buying Foreclosed Properties EzineArticles.com. http://ezinearticles.com/?Mastering-The-Art-of-Buying-Foreclosed-Properties&id=4959376 CloseRecommend This Article
From:
To:
Message:
SendMost Recent EzineArticles from the Real-Estate:Foreclosures Category:
How To Make A Short Sale Work For You
What Is a Financial Hardship in a Loan Modification?
Foreclosure - 6 Ways to Stop Foreclosure
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Six Ways to Stop Foreclosure and Keep the Home
Acquiring Wells Fargo Foreclosures
Why Negative Equity Has Hit Home Buyers
Listings of Foreclosed Homes - Where To Get The Real Deals
Top 3 Free Foreclosure Listing Websites
Repossessed Houses For Sale - What To Do Before Buying
Free Bank Foreclosure Listings Online
You Can Stop Mortgage Foreclosure
Free Home Foreclosure Listings Opportunities
What is the Hardest Hit Fund?
Important Things to Know About Short Sales
More Related EzineArticles:
Great Deals Await Buyers of Foreclosure Houses For Sale
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In the Market For Foreclosure Homes For Sale?
Cheap Homes For Sale - Are There Any Bargains Left in Real Estate?
Buying Foreclosure Homes For Sale - Secrets From the Experts
Buying Foreclosed Homes For Sale - Being Cautious Pays Off
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Different Foreclosure Houses For Sale
Getting Pre Approved Financing to Buy Foreclosure Homes For Sale
Buy Foreclosure Homes For Sale and Change the Way You Live
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How to Stay in Your Home Mortgage Free For a Very Long Time - Strategies They Don't Want You to Know
How to Delay the Foreclosure Process Indefinitely Using Highly Effective Legal & Little Know Tactics
The Obama Mortgage Plan - Are You Close to Losing Your Home?
You Need to Pay the HOA Dues Even During Foreclosure
Government Rescuing Home Loans For Michigan Unemployed
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Listings of Foreclosed Homes - Where To Get The Real Deals
With many new information circulating in the real estate market everyday, you would not want to miss those that give you the most lucrative opportunities. As a buyer and investor, you should strive to locate the best listings of foreclosed homes that can give what you want at your desired price. And with more and more people becoming interested in the foreclosures market, it becomes even more important to know where and how to get them.
Government Listings
Government listings are a great source for affordable homes as their foreclosures were adequately insured by the government. Currently, you can go to the Department of Urban Housing and Development website devoted to the listings of government foreclosed properties. Be aware, though, that these homes are sold as is, which means that they will not be responsible for any repairs or renovations that need to be done on the structure.
Real Estate Agent
Real estate agents are very reliable sources of information in terms of listings of foreclosed homes. If you are targeting a property within your local community or any properties nearby, it would be most helpful to consult a local real estate agent as they would know where the good deals are. Oftentimes, these agents work in a network, amassing different information from across cities, towns, and even states. The relationships they have established with people and clients enable them to gather much needed information since they work on the ground with people who are tuned in to the market.
Online Foreclosure Lists
If you want access to listings of foreclosed homes without leaving the convenience of your home or office, subscribe to an online foreclosure listings provider. Online foreclosure lists allow you to view information with a few simple clicks right at the comfort of your own home. Aside from their comprehensive database, your subscription will also entitle you to fresh listings almost everyday or as soon as new offers are up on the market. This is because online lists providers are run by people who are experts in information gathering and who know the value of accurate and quick information in real estate investing.
Joseph B. Smith has been educating buyers on the finer points of listings of foreclosed homes at ForeclosureListingsNationWide.com for over five years. Contact Joseph B. Smith through ForeclosureListingsNationWide.com if you need help finding information about listings of foreclosed homes.
Article Source: http://EzineArticles.com/?expert=Joseph_B._Smith
Government Listings
Government listings are a great source for affordable homes as their foreclosures were adequately insured by the government. Currently, you can go to the Department of Urban Housing and Development website devoted to the listings of government foreclosed properties. Be aware, though, that these homes are sold as is, which means that they will not be responsible for any repairs or renovations that need to be done on the structure.
Real Estate Agent
Real estate agents are very reliable sources of information in terms of listings of foreclosed homes. If you are targeting a property within your local community or any properties nearby, it would be most helpful to consult a local real estate agent as they would know where the good deals are. Oftentimes, these agents work in a network, amassing different information from across cities, towns, and even states. The relationships they have established with people and clients enable them to gather much needed information since they work on the ground with people who are tuned in to the market.
Online Foreclosure Lists
If you want access to listings of foreclosed homes without leaving the convenience of your home or office, subscribe to an online foreclosure listings provider. Online foreclosure lists allow you to view information with a few simple clicks right at the comfort of your own home. Aside from their comprehensive database, your subscription will also entitle you to fresh listings almost everyday or as soon as new offers are up on the market. This is because online lists providers are run by people who are experts in information gathering and who know the value of accurate and quick information in real estate investing.
Joseph B. Smith has been educating buyers on the finer points of listings of foreclosed homes at ForeclosureListingsNationWide.com for over five years. Contact Joseph B. Smith through ForeclosureListingsNationWide.com if you need help finding information about listings of foreclosed homes.
Article Source: http://EzineArticles.com/?expert=Joseph_B._Smith
Tuesday, 31 August 2010
Foreclosure Auction - Tips for Buying Houses at Public Sales
A foreclosure auction is held when banks repossess houses and want to sell properties to clear mortgage loans from their books. Bidding on properties can be intimidating for individuals who have never attended a public auction. Taking time to understand the process can ensure buyers obtain the best deal.
Foreclosure auction procedures can vary, so it is best to become familiar with auctioneer procedures and policies prior to placing bids. Some auctions require bidders to pre-register and pay an entry fee. Others require down payments to hold the property after the winning bid has been placed. Most require payment in full within 24 hours of bid acceptance.
Public auctions are held in a variety of locations. Some take place at courthouses, while others are held at the property being auctioned. When banks sell multiple properties at once they often host auctions at public venues such as county fairgrounds or business centers.
Foreclosure auctions are generally listed in the real estate Classifieds section of local newspapers. When auctions encompass multiple properties, the bank or auctioneer might take out TV and radio ads. Individuals can also contact their states' county Trustee or real estate commission for a list of upcoming foreclosure sales.
Auctioned real estate prices are derived from the outstanding first mortgage loan balance against the repossessed property. If more than one mortgage exists, or if creditor or tax liens are attached, the buyer is responsible for settling outstanding debt. Bidders are provided with property prices prior to the auction and required to submit bids equal to or greater than the listing price.
Buyers should conduct due diligence to determine the current market value of foreclosed property prior to attending the auction. Buyers can obtain comparable sales reports from real estate websites such as RealtyTrac or Realtor.com.
It is also a good idea to search public records pertaining to the property to determine if liens or judgments are attached. Property records are stored at the local county recorder's office. Many counties offer public records via their website at no cost or a nominal fee.
Once the information is gathered, buyers should establish a ceiling price for the maximum bid on all properties they are interested in buying. It is easy to get caught-up in auction frenzy and bid more than should be paid.
After winning a bid, buyers must follow the procedures outlined by the auctioneer. Buyers must obtain the necessary documents to commence with final payment and transfer property records. The amount of time required to transfer real estate depends on the state where the foreclosure is located.
In some states, ownership can transfer within a matter of days, while others require the sale to be confirmed through the courts. It is important to determine if a redemption period is offered which allows foreclosed homeowners to buy the property back from the individual who placed the winning bid at auction. Typically, redemption must occur within 30 days.
Buying houses through foreclosure auction can be rewarding and profitable, as long as buyers understand how the process works. It is a good idea to attend a few auctions and become familiar with the jargon, bidding process, and auctioneer procedures. It is also a good idea to consult with real estate professionals such as a lawyer or foreclosure specialist to determine if buying properties through auctions is the best choice.
Simon Volkov is a California real estate investor who specializes in buying and selling foreclosure real estate. He shares insights about buying properties at foreclosure auction, investing in bank owned homes, and provides current real estate market information via his website at www.SimonVolkov.com.
Article Source: http://EzineArticles.com/?expert=Simon_Volkov
Foreclosure auction procedures can vary, so it is best to become familiar with auctioneer procedures and policies prior to placing bids. Some auctions require bidders to pre-register and pay an entry fee. Others require down payments to hold the property after the winning bid has been placed. Most require payment in full within 24 hours of bid acceptance.
Public auctions are held in a variety of locations. Some take place at courthouses, while others are held at the property being auctioned. When banks sell multiple properties at once they often host auctions at public venues such as county fairgrounds or business centers.
Foreclosure auctions are generally listed in the real estate Classifieds section of local newspapers. When auctions encompass multiple properties, the bank or auctioneer might take out TV and radio ads. Individuals can also contact their states' county Trustee or real estate commission for a list of upcoming foreclosure sales.
Auctioned real estate prices are derived from the outstanding first mortgage loan balance against the repossessed property. If more than one mortgage exists, or if creditor or tax liens are attached, the buyer is responsible for settling outstanding debt. Bidders are provided with property prices prior to the auction and required to submit bids equal to or greater than the listing price.
Buyers should conduct due diligence to determine the current market value of foreclosed property prior to attending the auction. Buyers can obtain comparable sales reports from real estate websites such as RealtyTrac or Realtor.com.
It is also a good idea to search public records pertaining to the property to determine if liens or judgments are attached. Property records are stored at the local county recorder's office. Many counties offer public records via their website at no cost or a nominal fee.
Once the information is gathered, buyers should establish a ceiling price for the maximum bid on all properties they are interested in buying. It is easy to get caught-up in auction frenzy and bid more than should be paid.
After winning a bid, buyers must follow the procedures outlined by the auctioneer. Buyers must obtain the necessary documents to commence with final payment and transfer property records. The amount of time required to transfer real estate depends on the state where the foreclosure is located.
In some states, ownership can transfer within a matter of days, while others require the sale to be confirmed through the courts. It is important to determine if a redemption period is offered which allows foreclosed homeowners to buy the property back from the individual who placed the winning bid at auction. Typically, redemption must occur within 30 days.
Buying houses through foreclosure auction can be rewarding and profitable, as long as buyers understand how the process works. It is a good idea to attend a few auctions and become familiar with the jargon, bidding process, and auctioneer procedures. It is also a good idea to consult with real estate professionals such as a lawyer or foreclosure specialist to determine if buying properties through auctions is the best choice.
Simon Volkov is a California real estate investor who specializes in buying and selling foreclosure real estate. He shares insights about buying properties at foreclosure auction, investing in bank owned homes, and provides current real estate market information via his website at www.SimonVolkov.com.
Article Source: http://EzineArticles.com/?expert=Simon_Volkov
Monday, 30 August 2010
Real Estate Property Values - Ranked High
Rob Norquist, a real estate agent admits that Newport Beach is as active as it used to be, with some good record sales. He also agrees with the fact that a property, should never be considered deprecated, and as a seller, you should never give up and use the low end price. It is true that, during a certain period of time, depending on the real estate market, client's desire, real estate auctions, there may be moments when a property's price drops, but not forever.
Other cities such as, Huntington Beach, Costa Mesa, Irvine or Mission Viejo - are considered among other 25 cities as being the ones with the best real estate property values, with average values of $680,000 and more. The national average value in 2007 was $194,300.
However, some property values are based on subjective answers from residents living in a certain home, so the given numbers , and real estate evaluation may be hanging on a wishful thinking instead of a real appreciation . This is where real estate auctions come in picture, to inform potential clients about the property, and the investment possibilities, giving them a clear image of the real estate's worth.
Even though some buildings such as Orange County properties , dropped their values in 2007, but they recovered extremely well after. So this is another reason why as a seller, you should never fear if you observe a temporally value drop, because it is normal from time to time.
For instance, about 81% owners, sellers, agents, trusted in 2007 that their estate property values were over $1 million, against 75% in 2006. So things are for the best and it would appear that most of estate agents have finally understood what this business is really about. It takes a lot of patience and ability to maintain your property's value among top ones on real estate market.
But Norquist, trusts that many Newport Beach arguments are near the mark, sustaining that this city has survived the "housing slump" better than other locations. However, the unexpected surprise attacked more on sales, which he admits that they are on a falling edge right now, but there is still hope for better times.
Newport Beach is very well known for its highest-valued real estate properties in the U.S., being a perfect place for real estate business . It's location and proximity to the water, and the beach front view increase it's real estate value considerably. Auctions in this area are very interesting and those who are interested in real estate business domain should never miss them. You can learn a lot on such events.
Experienced real estate agents or even friends will surely advise you that as a buyer you are very likely to come across many real estate properties in foreclosure having perhaps no equity,being over priced . In such moments, lenders sometimes choose to accept a smaller amount than the initial.So you get in the negotiations process. As a hint, when you realize the over pricing phenomenon, you have to understand that this happens when the real estate agent , or seller is aware of the real estate property's value, and he tries his luck in a raising price. So watch out! The negotiation can become a difficult process especially when reasonable terms are not agreed by both sides: owner and buyer. Negotiations can occur privately or in public, where real estate auctions come in the picture. Of course, a real estate auction is safer and more trustful than a private one. Private negotiations occur especially when the agent is a close friend or relative to buyer's, and because of the friendly environment some details regarding even the real estate transaction may be skipped. So in situations like this be careful.
Even as a friend, for a real estate agent , money comes first, and friendship after. Of course, during such a negotiation, there can be all sort of problems, such as mortgage value, real estate market, all sort of official formalities, conflict of interests in a particular area etc. Moreover, time a very important issue when real estate auctions are involved. As a general rule, and as an advise for a potential buyer, negotiation process should not be extended on a long period of time, because, as I said before, in time, real estate properties drop their values, and the client's interest together with it. In this case, not only does the buyer loose, but the real estate agency as well. Why?Because if a property's value drops, the price must drop as well, if you ever want to sell it again. In this case the under priced phenomenon appears. This is why short sales are preferred. Many Realtors, and clients started using this strategy, because they faced the problem regarding their property's value.So they decided the selling process should not take too long.
Another important issue refers to the well known "acceleration clause" , which is an official word met in any mortgage document, meaning that the lender, after the real estate property is sold, can demand the payment of the remaining balance for the loan. Realtors can provide more information about this contractual right. If this clause is good or bad for a real estate transaction, it is hard to say, because it has its advantages and disadvantages. Buying a real estate property which has already a mortgage loan represents a pretty raised risk. Why? Because first of all, if the mortgage loan was contracted for many years, depending on the interest's rate, and marketplace evolution, you may come to pay the house's price 3 times more. However, if you have experience in monitoring the market place, and find a right moment when every interest's value drops, you could go for it. It's kind of a gambling in this business, and Realtors, or individual real estate agents know it best.
Realtors and real estate agents are here on the real estate market, to help clients understand how they can value their houses, what should they look for when trying to sell or buy a house, how to negotiate, and how to win a real estate transaction. Some may say that buying or selling a real estate property is easy, but the fact is that pricing a house is a very difficult process. Many real estate agents, brokers, have suffered many defeats before their first good business, so do not expect their job to be an easy one.
Unfortunately, a concerning price and sales gains of these past years have determined in many cases quitting the real estate business. Many real estate agents who have seen the future preferred to do something else than real estate business. The credit market is also in a critical position, as many Realtors have observed. Mortgage values are also a result of real estate market position right now. Real estate investors have diminished their participation number to real estate auctions, as a sign they have seen it too.
However, as we all know how media does it, you have to understand that reporters have latched onto these issues, focusing only on its negative effects, and they have succeeded in putting fear in anyone who is interested in real estate business. For more of this business go to http://www.modfind.com my real estate business specialized website.
Neguletu Octavian
Article Source: http://EzineArticles.com/?expert=Neguletu_Octavian
Other cities such as, Huntington Beach, Costa Mesa, Irvine or Mission Viejo - are considered among other 25 cities as being the ones with the best real estate property values, with average values of $680,000 and more. The national average value in 2007 was $194,300.
However, some property values are based on subjective answers from residents living in a certain home, so the given numbers , and real estate evaluation may be hanging on a wishful thinking instead of a real appreciation . This is where real estate auctions come in picture, to inform potential clients about the property, and the investment possibilities, giving them a clear image of the real estate's worth.
Even though some buildings such as Orange County properties , dropped their values in 2007, but they recovered extremely well after. So this is another reason why as a seller, you should never fear if you observe a temporally value drop, because it is normal from time to time.
For instance, about 81% owners, sellers, agents, trusted in 2007 that their estate property values were over $1 million, against 75% in 2006. So things are for the best and it would appear that most of estate agents have finally understood what this business is really about. It takes a lot of patience and ability to maintain your property's value among top ones on real estate market.
But Norquist, trusts that many Newport Beach arguments are near the mark, sustaining that this city has survived the "housing slump" better than other locations. However, the unexpected surprise attacked more on sales, which he admits that they are on a falling edge right now, but there is still hope for better times.
Newport Beach is very well known for its highest-valued real estate properties in the U.S., being a perfect place for real estate business . It's location and proximity to the water, and the beach front view increase it's real estate value considerably. Auctions in this area are very interesting and those who are interested in real estate business domain should never miss them. You can learn a lot on such events.
Experienced real estate agents or even friends will surely advise you that as a buyer you are very likely to come across many real estate properties in foreclosure having perhaps no equity,being over priced . In such moments, lenders sometimes choose to accept a smaller amount than the initial.So you get in the negotiations process. As a hint, when you realize the over pricing phenomenon, you have to understand that this happens when the real estate agent , or seller is aware of the real estate property's value, and he tries his luck in a raising price. So watch out! The negotiation can become a difficult process especially when reasonable terms are not agreed by both sides: owner and buyer. Negotiations can occur privately or in public, where real estate auctions come in the picture. Of course, a real estate auction is safer and more trustful than a private one. Private negotiations occur especially when the agent is a close friend or relative to buyer's, and because of the friendly environment some details regarding even the real estate transaction may be skipped. So in situations like this be careful.
Even as a friend, for a real estate agent , money comes first, and friendship after. Of course, during such a negotiation, there can be all sort of problems, such as mortgage value, real estate market, all sort of official formalities, conflict of interests in a particular area etc. Moreover, time a very important issue when real estate auctions are involved. As a general rule, and as an advise for a potential buyer, negotiation process should not be extended on a long period of time, because, as I said before, in time, real estate properties drop their values, and the client's interest together with it. In this case, not only does the buyer loose, but the real estate agency as well. Why?Because if a property's value drops, the price must drop as well, if you ever want to sell it again. In this case the under priced phenomenon appears. This is why short sales are preferred. Many Realtors, and clients started using this strategy, because they faced the problem regarding their property's value.So they decided the selling process should not take too long.
Another important issue refers to the well known "acceleration clause" , which is an official word met in any mortgage document, meaning that the lender, after the real estate property is sold, can demand the payment of the remaining balance for the loan. Realtors can provide more information about this contractual right. If this clause is good or bad for a real estate transaction, it is hard to say, because it has its advantages and disadvantages. Buying a real estate property which has already a mortgage loan represents a pretty raised risk. Why? Because first of all, if the mortgage loan was contracted for many years, depending on the interest's rate, and marketplace evolution, you may come to pay the house's price 3 times more. However, if you have experience in monitoring the market place, and find a right moment when every interest's value drops, you could go for it. It's kind of a gambling in this business, and Realtors, or individual real estate agents know it best.
Realtors and real estate agents are here on the real estate market, to help clients understand how they can value their houses, what should they look for when trying to sell or buy a house, how to negotiate, and how to win a real estate transaction. Some may say that buying or selling a real estate property is easy, but the fact is that pricing a house is a very difficult process. Many real estate agents, brokers, have suffered many defeats before their first good business, so do not expect their job to be an easy one.
Unfortunately, a concerning price and sales gains of these past years have determined in many cases quitting the real estate business. Many real estate agents who have seen the future preferred to do something else than real estate business. The credit market is also in a critical position, as many Realtors have observed. Mortgage values are also a result of real estate market position right now. Real estate investors have diminished their participation number to real estate auctions, as a sign they have seen it too.
However, as we all know how media does it, you have to understand that reporters have latched onto these issues, focusing only on its negative effects, and they have succeeded in putting fear in anyone who is interested in real estate business. For more of this business go to http://www.modfind.com my real estate business specialized website.
Neguletu Octavian
Article Source: http://EzineArticles.com/?expert=Neguletu_Octavian
Sunday, 29 August 2010
Online College Degree on Real Estate
For some instances, there are some individuals who want to acquire a college degree but just fail to have it as they don't have time and enough finances to go out for school anymore. These goes through several reasons particular to financial matters. When you go to school, you don't just consider about tuition fees. You also need to think about transportation expenses and rent expenses in case you are just renting a boarding house. Now, to give an ease to these problems, online programs are made available so that interested individuals could gain Bachelors Degree at their comfort.
One of the most selected courses is the Online College Degree Real Estate program that aims to provide a specialized study on Real-Estate. This program allows students understand terms and essential knowledge about the Real-Estate industry. It focuses mainly on basic appraisals, property management, mortgages and brokerage. The program also covers information and understanding on related fields such as financing and marketing. Students taking this program will be equipped with trainings and activities particular to cash flow analysis, commercial speculations, financial feasibility, real estate development and marketing as well as cost and income evaluation.
Now, what are the advantages of acquiring an Online College Degree Real Estate program? Technically, a completion of this program opens new and big opportunities on your professional career. Gaining license and certificates on this program could make you accountable on several firms such as real estate businesses, commercial banks, life insurance companies, loans and savings establishments, mortgage companies and government sectors. The knowledge and ideas learned from this program will be applicable and very helpful especially if you are planning to have an individual real estate business with you yourself as the self-reliant broker. The United States Bureau of Labor and Statistics has made an evaluation and has figured a 9% to 17% employment increase on the real estate field which is believed to go through 2014 and further. With the increasing demands of real estate brokers over the world, there will be much of opportunities for you on the career market. This is also one of the good reasons why a lot of individual get interested in acquiring this program.
There are a lot on universities, colleges and educational institutions that offers this type of online program. Popularity of a certain institution doesn't really matter. The most important thing to consider is the standards and quality of education that an institution or an online program offers to students.
For more great information about an online college degree, and online bachelor degrees visit our site today.
Article Source: http://EzineArticles.com/?expert=Elijah_James
One of the most selected courses is the Online College Degree Real Estate program that aims to provide a specialized study on Real-Estate. This program allows students understand terms and essential knowledge about the Real-Estate industry. It focuses mainly on basic appraisals, property management, mortgages and brokerage. The program also covers information and understanding on related fields such as financing and marketing. Students taking this program will be equipped with trainings and activities particular to cash flow analysis, commercial speculations, financial feasibility, real estate development and marketing as well as cost and income evaluation.
Now, what are the advantages of acquiring an Online College Degree Real Estate program? Technically, a completion of this program opens new and big opportunities on your professional career. Gaining license and certificates on this program could make you accountable on several firms such as real estate businesses, commercial banks, life insurance companies, loans and savings establishments, mortgage companies and government sectors. The knowledge and ideas learned from this program will be applicable and very helpful especially if you are planning to have an individual real estate business with you yourself as the self-reliant broker. The United States Bureau of Labor and Statistics has made an evaluation and has figured a 9% to 17% employment increase on the real estate field which is believed to go through 2014 and further. With the increasing demands of real estate brokers over the world, there will be much of opportunities for you on the career market. This is also one of the good reasons why a lot of individual get interested in acquiring this program.
There are a lot on universities, colleges and educational institutions that offers this type of online program. Popularity of a certain institution doesn't really matter. The most important thing to consider is the standards and quality of education that an institution or an online program offers to students.
For more great information about an online college degree, and online bachelor degrees visit our site today.
Article Source: http://EzineArticles.com/?expert=Elijah_James
Friday, 27 August 2010
Investing In Real Estate In Up And Down Markets
Some people who doubt that there is a right time to get started in real estate investing worry that there are too many people buying houses to find a deal. Competition is everywhere. If you can't understand - that in business, competition is normal - then real estate investing is not for you. Just take a look at the marketplace in companies such as Coke and Pepsi, Nike and Reebok, McDonalds and Burger King, and a million other services and products out in the marketplace. So if you see a lot of investors competing against you then know that it's a rewarding business to be in because you are not the only one that sees the potential for profit. Plus, there are more than enough deals to make everyone rich, in due time. At any given time there are hundreds of properties for sale in your own local market niches, enough for each investor looking for them.
Some investors know that events such as the September 11th tragedy, the huge number of job layoffs and the decline in the stock market will kill the economy, and anything they buy will go down in value. But, once again, this need not be the time to fold-up your tent and quit before you get started. In order to be successful in investing, learn how to make money in "up" and "down" markets. Have strategies to utilize in both "up" and "down" markets to survive when the economy is bad or thrive when the economy is booming. And if everyone else is forecasting "doom & gloom" it only clears out the competition as you have more market share to profit from, as this is a good thing!
Ask yourself: "When do I want to make money?" And the answer is usually right now!
Thus, go out and get your investing business going, right now! And not base your actions on what others are saying because the majority of the population is not rich, only those few who dare to take the right risks and take the necessary steps to be successful.
Stay in 'the Game,' and stay 'the Course' (persist)
One of the major disappointments of the conventional, 'rental real estate' approach is there's just no money in it NOW, only after a long period of ownership. There's not enough spread between the income realized from rent - versus - the expenses of mortgage payments and repairs for the investor to make any money today. You barely get by in the early years of your property's ownership. You've got to have other income to support your lifestyle. You can't just count on the rentals to support you.
Most likely, in the beginning you'll be supporting your properties with your other income if you bought via the traditional way. That's not too attractive. A lot of investors don't have the stomach to endure the rough and tough financial stresses of the rental business. Even more so - people just don't have the desire to hang in there to make it work, in due time. Thus, if you persist you will outpace your competition because they will no longer be in the business, and you will have "no competition". This business is a long-term commitment and over 80% of real estate investors - who have been in the business for that long, go on to become millionaires. What I'm saying to you is this: Stay the course, and you will beat most all of your competitors because you can ride the ups and downs of the market in the Real Estate Game, in due time.
Opportunity is everywhere
This is 'NOT' a common statement I hear from new investors. True, it may work differently in some markets than in others, but there are investors making money in every city (large or small, metro-area or the rural-areas), every day of the week. You have to learn your market: the rents, the trends, the local customs, the lenders, the title companies, etc.
Then, learn the techniques and adapt them to your market. One thing is for sure, everyone needs a roof to live under, either renting or owning. People need to live somewhere. So study your market carefully, because there are tons of opportunities in every marketplace. You just have to learn your market and be able to service your market accordingly. If you don't believe this, simply read the 'Success Stories' of all my students achieving financial independence and earning big profits using my field-tested and perfected real estate investing system.
Typically, the main argument of real estate "Nay-Sayers" is by associating real estate with toilets, bad tenants, property damages, tenant evictions, etc. - all the bad tasting things that may happen to an investor getting ready to jump into the real estate game.
For somebody who believes the only thing to real estate is getting a loan and buying a run-down duplex, in a bad part of town, entering the real estate game most certainly could turn into a major nightmare very quickly. However, an individual open to possibilities and who is willing to learn various techniques and strategies - will very quickly discover that's this methodology is not the most profitable way to be transacting real estate deals.
A True Wealth Builder
Well, if you shudder at the very thought of spending your nights and weekends unstopping troubled toilets, painting scarred up walls, and pacifying angry/upset tenants, you are in good company. I have no interest in dealing with ill-affecting and time consuming renter-problems or their negative attitudes. When you follow a systematic approach to investing, you won't have to deal with negative outcomes!! There are other creative ways to manage properties that involve no hassles and no headaches whatsoever, such programs exist in our "Automated Management System" which take away those ownership nightmares.
Much more profitable strategies exist if you are open to 'non-traditional' ways of investing in real estate. For example, in our System approach, there are "Rent Credits" used to maximize your time, while minimizing your overall risks, while creating positive cash flow versus, living with negative cash flow and tenant-troubles. There is a better way!! Your properties will be beautifully managed and maintained. Your Tenant-Buyers will be happy, you will pocket plenty of positive cash flow and you'll be able to spend your free time locating additional real estate investments, doing the things you love and have passion for doing, which is the very point of becoming a professional real estate investor in the first place!!
If you really are serious about real estate investing and do extensive research into the real estate business, constantly learning and improving your knowledge level you will realize that your risks are minimal when compared to other business models.
If you talk to any knowledgeable real estate investor and compare the cost of starting a real estate investing company versus some other type of business, you'll see that a real estate business has far less risks. I like to be upfront with you that you will need some marketing dollars at the least to launch your real estate business. You also need to have a long term vision of this venture and at least give it at least a good 6-12 months to make it work. Otherwise, your money (marketing budget) and time will be a waste.
I know this but most people don't know that it takes at least some money initially to make money as a real estate investor. I don't mean to scare anyone away but let's compare a real estate investing business to a restaurant/carryout business. I know these types of businesses very well because relatives of mine own restaurants/carryouts, so even though I never owned a restaurant, my relatives have taught me the inner workings of that business and what it takes to sustain it to be profitable.
First, for a regular restaurant it takes $30K in gross sales just to break even each month. And this does not include the 15 hour days, and six days per week, and the initial investment of $120K down payment with great credit for a bank to even lend you the money needed to open it. You also have to have years of knowledge and experience before you invest your life savings to start a restaurant business. Then, it usually takes about 1-3 years until the profits really come in, thus, this is only if you can survive to stay in business that long. My father-in-law is currently running a carryout and he has had over seventeen years experience and he tells me how fed up he is with the restaurant business. That is why he's also getting started as a real estate investor and he's asked me to invest some of his money into our rehab properties. He sees the huge rewards and minimal risk involved in real estate compared to his restaurant business or other businesses he has been in. And he is seriously considering selling his business to do real estate investing full-time.
When you compare risks in real estate investing versus investing in other business avenues and/or endeavors, as you can come to your own conclusion: real estate investing is the 'Best Game' in town, when it comes to generating great wealth, while achieving your American Dream for financial independence.
Real estate investing has cycles just like any other business
The stock market has it's cycles. We experienced that after the September 11th Tragedy. Only less than two years prior, we saw a peak in the stock market with high tech stocks soaring and making stock market investors 'paper rich.' The stock market has it's 'ups' and it's 'downs.'
Modern real estate thrives on doing things smarter, wiser, strategically - not harder, more time consuming, with profit-eating outcomes. At the end of the day, the key to success is to focus on being a 'great entrepreneur.' I asked an experience investor (he owned about a quarter of Blacksburg, Virginia) what his specialty was in real estate investing and his response was not that he was good at Lease Options, Wholesaling, Short Sales, REOs, Rehabs, Notes, Residential, Land Developments, or Commercial real estate. But he said he was an 'expert at making money.' We both laughed at that but I will never forget that conversation. You need to know about the marketplace and technical factors involved in a deal, but your main duty whenever you are investing is always to make money. Thus, at the end of the day, your job is to make money in 'up' as well as 'down' markets. And if you focus on being a 'great entrepreneur,' you'll be able to make money with many techniques, strategies, and skill sets to be successful in any market.
Minh is formally trained as a financial planning strategist for small businesses and individuals within the Virginia, Maryland, and Washington DC areas; Minh is also recognized as a real estate investment lecturer on the topics of creative real estate investing. He is the author of a Best-Selling Course, "Turnkey Profits Using Lease Purchase and Other Creative Investing Techniques." Minh is also a co-author of a national best seller: "Mission Possible" along side Stephen Covey (author of 'Seven Habits of Highly Effective People") and Brian Tracey (international top ranked motivational speaker). He is also an active member of three real estate investing associations in the Greater Metro Washington DC areas.
http://www.guaranteeprofits.com
Article Source: http://EzineArticles.com/?expert=Minh_Pham
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MLA Style Citation:
Pham, Minh "Investing In Real Estate In Up And Down Markets." Investing In Real Estate In Up And Down Markets. 11 Jan. 2008 EzineArticles.com. 27 Aug. 2010.
APA Style Citation:
Pham, M. (2008, January 11). Investing In Real Estate In Up And Down Markets. Retrieved August 27, 2010, from http://ezinearticles.com/?Investing-In-Real-Estate-In-Up-And-Down-Markets&id=923040
Chicago Style Citation:
Pham, Minh "Investing In Real Estate In Up And Down Markets." Investing In Real Estate In Up And Down Markets EzineArticles.com. http://ezinearticles.com/?Investing-In-Real-Estate-In-Up-And-Down-Markets&id=923040 CloseRecommend This Article
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Real Estate Property
Some investors know that events such as the September 11th tragedy, the huge number of job layoffs and the decline in the stock market will kill the economy, and anything they buy will go down in value. But, once again, this need not be the time to fold-up your tent and quit before you get started. In order to be successful in investing, learn how to make money in "up" and "down" markets. Have strategies to utilize in both "up" and "down" markets to survive when the economy is bad or thrive when the economy is booming. And if everyone else is forecasting "doom & gloom" it only clears out the competition as you have more market share to profit from, as this is a good thing!
Ask yourself: "When do I want to make money?" And the answer is usually right now!
Thus, go out and get your investing business going, right now! And not base your actions on what others are saying because the majority of the population is not rich, only those few who dare to take the right risks and take the necessary steps to be successful.
Stay in 'the Game,' and stay 'the Course' (persist)
One of the major disappointments of the conventional, 'rental real estate' approach is there's just no money in it NOW, only after a long period of ownership. There's not enough spread between the income realized from rent - versus - the expenses of mortgage payments and repairs for the investor to make any money today. You barely get by in the early years of your property's ownership. You've got to have other income to support your lifestyle. You can't just count on the rentals to support you.
Most likely, in the beginning you'll be supporting your properties with your other income if you bought via the traditional way. That's not too attractive. A lot of investors don't have the stomach to endure the rough and tough financial stresses of the rental business. Even more so - people just don't have the desire to hang in there to make it work, in due time. Thus, if you persist you will outpace your competition because they will no longer be in the business, and you will have "no competition". This business is a long-term commitment and over 80% of real estate investors - who have been in the business for that long, go on to become millionaires. What I'm saying to you is this: Stay the course, and you will beat most all of your competitors because you can ride the ups and downs of the market in the Real Estate Game, in due time.
Opportunity is everywhere
This is 'NOT' a common statement I hear from new investors. True, it may work differently in some markets than in others, but there are investors making money in every city (large or small, metro-area or the rural-areas), every day of the week. You have to learn your market: the rents, the trends, the local customs, the lenders, the title companies, etc.
Then, learn the techniques and adapt them to your market. One thing is for sure, everyone needs a roof to live under, either renting or owning. People need to live somewhere. So study your market carefully, because there are tons of opportunities in every marketplace. You just have to learn your market and be able to service your market accordingly. If you don't believe this, simply read the 'Success Stories' of all my students achieving financial independence and earning big profits using my field-tested and perfected real estate investing system.
Typically, the main argument of real estate "Nay-Sayers" is by associating real estate with toilets, bad tenants, property damages, tenant evictions, etc. - all the bad tasting things that may happen to an investor getting ready to jump into the real estate game.
For somebody who believes the only thing to real estate is getting a loan and buying a run-down duplex, in a bad part of town, entering the real estate game most certainly could turn into a major nightmare very quickly. However, an individual open to possibilities and who is willing to learn various techniques and strategies - will very quickly discover that's this methodology is not the most profitable way to be transacting real estate deals.
A True Wealth Builder
Well, if you shudder at the very thought of spending your nights and weekends unstopping troubled toilets, painting scarred up walls, and pacifying angry/upset tenants, you are in good company. I have no interest in dealing with ill-affecting and time consuming renter-problems or their negative attitudes. When you follow a systematic approach to investing, you won't have to deal with negative outcomes!! There are other creative ways to manage properties that involve no hassles and no headaches whatsoever, such programs exist in our "Automated Management System" which take away those ownership nightmares.
Much more profitable strategies exist if you are open to 'non-traditional' ways of investing in real estate. For example, in our System approach, there are "Rent Credits" used to maximize your time, while minimizing your overall risks, while creating positive cash flow versus, living with negative cash flow and tenant-troubles. There is a better way!! Your properties will be beautifully managed and maintained. Your Tenant-Buyers will be happy, you will pocket plenty of positive cash flow and you'll be able to spend your free time locating additional real estate investments, doing the things you love and have passion for doing, which is the very point of becoming a professional real estate investor in the first place!!
If you really are serious about real estate investing and do extensive research into the real estate business, constantly learning and improving your knowledge level you will realize that your risks are minimal when compared to other business models.
If you talk to any knowledgeable real estate investor and compare the cost of starting a real estate investing company versus some other type of business, you'll see that a real estate business has far less risks. I like to be upfront with you that you will need some marketing dollars at the least to launch your real estate business. You also need to have a long term vision of this venture and at least give it at least a good 6-12 months to make it work. Otherwise, your money (marketing budget) and time will be a waste.
I know this but most people don't know that it takes at least some money initially to make money as a real estate investor. I don't mean to scare anyone away but let's compare a real estate investing business to a restaurant/carryout business. I know these types of businesses very well because relatives of mine own restaurants/carryouts, so even though I never owned a restaurant, my relatives have taught me the inner workings of that business and what it takes to sustain it to be profitable.
First, for a regular restaurant it takes $30K in gross sales just to break even each month. And this does not include the 15 hour days, and six days per week, and the initial investment of $120K down payment with great credit for a bank to even lend you the money needed to open it. You also have to have years of knowledge and experience before you invest your life savings to start a restaurant business. Then, it usually takes about 1-3 years until the profits really come in, thus, this is only if you can survive to stay in business that long. My father-in-law is currently running a carryout and he has had over seventeen years experience and he tells me how fed up he is with the restaurant business. That is why he's also getting started as a real estate investor and he's asked me to invest some of his money into our rehab properties. He sees the huge rewards and minimal risk involved in real estate compared to his restaurant business or other businesses he has been in. And he is seriously considering selling his business to do real estate investing full-time.
When you compare risks in real estate investing versus investing in other business avenues and/or endeavors, as you can come to your own conclusion: real estate investing is the 'Best Game' in town, when it comes to generating great wealth, while achieving your American Dream for financial independence.
Real estate investing has cycles just like any other business
The stock market has it's cycles. We experienced that after the September 11th Tragedy. Only less than two years prior, we saw a peak in the stock market with high tech stocks soaring and making stock market investors 'paper rich.' The stock market has it's 'ups' and it's 'downs.'
Modern real estate thrives on doing things smarter, wiser, strategically - not harder, more time consuming, with profit-eating outcomes. At the end of the day, the key to success is to focus on being a 'great entrepreneur.' I asked an experience investor (he owned about a quarter of Blacksburg, Virginia) what his specialty was in real estate investing and his response was not that he was good at Lease Options, Wholesaling, Short Sales, REOs, Rehabs, Notes, Residential, Land Developments, or Commercial real estate. But he said he was an 'expert at making money.' We both laughed at that but I will never forget that conversation. You need to know about the marketplace and technical factors involved in a deal, but your main duty whenever you are investing is always to make money. Thus, at the end of the day, your job is to make money in 'up' as well as 'down' markets. And if you focus on being a 'great entrepreneur,' you'll be able to make money with many techniques, strategies, and skill sets to be successful in any market.
Minh is formally trained as a financial planning strategist for small businesses and individuals within the Virginia, Maryland, and Washington DC areas; Minh is also recognized as a real estate investment lecturer on the topics of creative real estate investing. He is the author of a Best-Selling Course, "Turnkey Profits Using Lease Purchase and Other Creative Investing Techniques." Minh is also a co-author of a national best seller: "Mission Possible" along side Stephen Covey (author of 'Seven Habits of Highly Effective People") and Brian Tracey (international top ranked motivational speaker). He is also an active member of three real estate investing associations in the Greater Metro Washington DC areas.
http://www.guaranteeprofits.com
Article Source: http://EzineArticles.com/?expert=Minh_Pham
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Get Rock Bottom Prices Investments Starting @ $29,000.00
www.theequitylist.com/
UK Property Market Report
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MLA Style Citation:
Pham, Minh "Investing In Real Estate In Up And Down Markets." Investing In Real Estate In Up And Down Markets. 11 Jan. 2008 EzineArticles.com. 27 Aug. 2010
APA Style Citation:
Pham, M. (2008, January 11). Investing In Real Estate In Up And Down Markets. Retrieved August 27, 2010, from http://ezinearticles.com/?Investing-In-Real-Estate-In-Up-And-Down-Markets&id=923040
Chicago Style Citation:
Pham, Minh "Investing In Real Estate In Up And Down Markets." Investing In Real Estate In Up And Down Markets EzineArticles.com. http://ezinearticles.com/?Investing-In-Real-Estate-In-Up-And-Down-Markets&id=923040 CloseRecommend This Article
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Thursday, 26 August 2010
Reinventing Real Estate, Part 2: Online and Empowered Consumers Are Taking Charge and Paying Less
Demanding consumers
"Internet buyers tend to be better informed on market conditions and better prepared to act on the home they want when they start working with a realtor. Luckily for realtors, these changes don't necessarily hurt, as long as they are able to adjust to the new relationship and realize that the new-style buyers value speed and efficiency over guidance when finding a home."
- E-marketer, Internet Home Buyers Changing the House Rules
Thanks to the Internet and other technological innovations, more real estate information is freely available than ever before. As a result, consumers are demanding new choices, improved services, faster transactions and lower prices. According to a recent NAR survey, the number of sellers stating that they didn't want to pay a sales commission fee rose from 46 percent in 2003 to 61 percent in 2004. In 2004, 23 percent of Florida home sellers opted to sell independently without an agent, up from 14 percent in 2003 and nearly double the 14 percent national average, according to Planet Realtor.
And Web-enabled consumers are demanding a high digital IQ when working with real estate professionals. In addition to being well-versed on their own industry-specific technology, real estate professionals now are expected to utilize laptops, mobile phones, digital cameras, personal digital assistants and global positioning systems to keep pace with Internet buyers and sellers.
Downward pressure
"If consumers are going to do their own home-shopping online, they expect to save some money, just as they would for using the self-service lane. That's why they are susceptible to online discount brokers and the new affinity companies that are promoting lower commissions if only the consumers will use their agents. These business models promote the idea to consumers that they ought to be paying less money in commissions."
Realty Times Columnist Blanche Evans
Traditional real estate commissions, typically around six percent of a home's selling price, are facing downward pressure from consumers and competition. Some consumers claim traditional real estate commissions don't reflect:
- Today's home prices. Years ago, when median-priced homes sold for $25,000, real estate commissions were typically five percent, or $1,250. Today, with South Florida median home prices around $300,000, the cost of a six percent full-service real estate commission becomes $18,000. Some brokers even charge additional fees to cover administrative costs. When you consider that today's average homeowner sells a home every five to seven years, real estate commissions can dramatically impact your personal savings and net worth.
- Owner equity. When selling properties, most homeowners calculate the cost of selling as a portion of sales price, though the commissions are paid out of owner equity. (Equity is the difference between the value of your property and amount of mortgages owed.) Consider this example: You decide to sell a property for $250,000 in which you hold 10 percent equity, or $25,000. After paying a six percent commission of $15,000, you are left with $10,000 before any applicable closing costs. In this example, the $15,000 commission is six percent of the selling price, but 60 percent of the $25,000 equity.
- Services performed. Under today's commission structure, selling a $100,000 house at six percent typically costs $6,000, while selling a $500,000 house costs $30,000. Does selling the more expensive home really require five times more effort? Your cost is the same whether the agent spends one hour or 100 hours marketing your home. This is one reason many real estate consumers find fee-for-service real estate so appealing.
Developing alternatives
"Consumers want what they want, when they want it and will gravitate to the most cost-effective source to obtain it. Why? Because our "one-size-fits-all" approach to working with sellers and buyers is archaic and won't allow consumers to access various segments of help they need in a timely fashion. That's why .com Web start-ups are finding a receptive audience in real estate consumers and why for-sale-by-owners are burgeoning."
Julie Garton-Good, Author of "Real Estate a la Carte: Selecting the Services You Need, Paying What They're Worth"
Until recently, you have had few practical alternatives to the traditional full-service, full-commission real estate transaction with a broker. Most sellers paid a single commission fee for a full range of real estate services, whether they needed them or not. Now traditional real estate agencies face the challenge of identifying new services that have value to today's sophisticated online and empowered consumers.
One result is an "unbundling" of traditional one-size-fits-all real estate services for consumers who want more control over real estate transactions and their associated costs. If you're willing to take on some tasks traditionally performed by agents and brokers, you could receive lower transaction costs. You might benefit from the following emerging alternatives:
Fee-for-services
"Consumers want assistance from real estate professionals, but don't want to pay for it in the form of traditional commissions," says a la Carte real estate Pioneer Julie Garton-Good. Garton-Good has been preaching the fee-for-services gospel for more than 20 years. As the name implies, you can choose which tasks you feel comfortable performing and hire qualified real estate professionals to do the rest. Many traditional real estate brokerages are beginning to offer a more menu-based service plan. For example, you may not mind listing your home and holding open houses, but you may want assistance with contracts and closings.
One-stop shopping
In response to dwindling margins and the rising costs of technology and lead generation, some real estate companies are attempting to combine traditional and Web-based services to provide consumers a single source for all their real estate needs. One-stop shopping sites generally provide or partner with lenders, insurers, title companies, real estate attorneys and others to facilitate all aspects of buying and selling. In addition, some sites are adding home-improvement and related services to stay in touch with consumers between buying and selling transactions.
Web-based discounters
Although many Web-based real estate companies flamed out in the dotcom era, scores of new companies have emerged to take their place. By offering targeted services such as flat-fee MLS listings, buyer rebates and AVM tools, these sites are appealing to independent buyers and sellers who prefer to take a more active role in transactions. In addition to listings, some sites also offer how-to articles and advice for those who choose to go it alone.
Tradition + technology + turbulence = opportunities
So, given the trends, changes and ongoing industry evolution, what can independent buyers, sellers and investors expect in this new era of real estate?
o The Web and other technologies will continue to evolve and transform the $1.3 trillion real-estate industry. Technology will continue to reduce the time, expense and complexity of manual processes, and increasingly sophisticated search and valuation tools will play a more strategic role.
o Free and low-cost real estate resources will continue to be available and even multiply on the Web. In real estate, knowledge truly is power. Consumers will try to use their power to gain more control of the real estate process and subsequently expect to be compensated in the form of reduced and fee-for-service commissions.
o The role of traditional real estate brokerages will evolve as Web-enabled consumers become more knowledgeable. This likely will trigger some restructuring and consolidation of traditional brokerages, but will also drive the development of innovative new practices targeting online and empowered consumers. Real estate professionals will focus more on promoting their local knowledge and industry expertise, while consumers will perform some buying and selling tasks on their own.
o Traditional real estate commissions and profitability levels will continue to face downward pressure from various sources. The future will be profitable for brokerages that are able to extend their core expertise of neighborhood and industry knowledge into flexible new consumer-centric offerings.
o The traditional high-touch, full-service real estate agency is evolving, not disappearing. Real estate professionals who provide exceptional service and value to their customers will always be in demand.
You now can find more real estate knowledge, tools and resources on the Web than ever before, enabling you to buy and sell with increased confidence. For real estate professionals, reinventing the industry means making hard decisions, changing processes and managing new opportunities. But for consumers, reinvention in real estate is a winner, hands-down.
Learn more at http://www.homekeys.net
Charles Warnock is Marketing Communications Manager at Homexperts in Miami, Florida. Their Web site is http://www.homekeys.net. Charles writes frequently on real estate, finance, advertising and marketing communications.
Article Source: http://EzineArticles.com/?expert=Charles_Warnock
"Internet buyers tend to be better informed on market conditions and better prepared to act on the home they want when they start working with a realtor. Luckily for realtors, these changes don't necessarily hurt, as long as they are able to adjust to the new relationship and realize that the new-style buyers value speed and efficiency over guidance when finding a home."
- E-marketer, Internet Home Buyers Changing the House Rules
Thanks to the Internet and other technological innovations, more real estate information is freely available than ever before. As a result, consumers are demanding new choices, improved services, faster transactions and lower prices. According to a recent NAR survey, the number of sellers stating that they didn't want to pay a sales commission fee rose from 46 percent in 2003 to 61 percent in 2004. In 2004, 23 percent of Florida home sellers opted to sell independently without an agent, up from 14 percent in 2003 and nearly double the 14 percent national average, according to Planet Realtor.
And Web-enabled consumers are demanding a high digital IQ when working with real estate professionals. In addition to being well-versed on their own industry-specific technology, real estate professionals now are expected to utilize laptops, mobile phones, digital cameras, personal digital assistants and global positioning systems to keep pace with Internet buyers and sellers.
Downward pressure
"If consumers are going to do their own home-shopping online, they expect to save some money, just as they would for using the self-service lane. That's why they are susceptible to online discount brokers and the new affinity companies that are promoting lower commissions if only the consumers will use their agents. These business models promote the idea to consumers that they ought to be paying less money in commissions."
Realty Times Columnist Blanche Evans
Traditional real estate commissions, typically around six percent of a home's selling price, are facing downward pressure from consumers and competition. Some consumers claim traditional real estate commissions don't reflect:
- Today's home prices. Years ago, when median-priced homes sold for $25,000, real estate commissions were typically five percent, or $1,250. Today, with South Florida median home prices around $300,000, the cost of a six percent full-service real estate commission becomes $18,000. Some brokers even charge additional fees to cover administrative costs. When you consider that today's average homeowner sells a home every five to seven years, real estate commissions can dramatically impact your personal savings and net worth.
- Owner equity. When selling properties, most homeowners calculate the cost of selling as a portion of sales price, though the commissions are paid out of owner equity. (Equity is the difference between the value of your property and amount of mortgages owed.) Consider this example: You decide to sell a property for $250,000 in which you hold 10 percent equity, or $25,000. After paying a six percent commission of $15,000, you are left with $10,000 before any applicable closing costs. In this example, the $15,000 commission is six percent of the selling price, but 60 percent of the $25,000 equity.
- Services performed. Under today's commission structure, selling a $100,000 house at six percent typically costs $6,000, while selling a $500,000 house costs $30,000. Does selling the more expensive home really require five times more effort? Your cost is the same whether the agent spends one hour or 100 hours marketing your home. This is one reason many real estate consumers find fee-for-service real estate so appealing.
Developing alternatives
"Consumers want what they want, when they want it and will gravitate to the most cost-effective source to obtain it. Why? Because our "one-size-fits-all" approach to working with sellers and buyers is archaic and won't allow consumers to access various segments of help they need in a timely fashion. That's why .com Web start-ups are finding a receptive audience in real estate consumers and why for-sale-by-owners are burgeoning."
Julie Garton-Good, Author of "Real Estate a la Carte: Selecting the Services You Need, Paying What They're Worth"
Until recently, you have had few practical alternatives to the traditional full-service, full-commission real estate transaction with a broker. Most sellers paid a single commission fee for a full range of real estate services, whether they needed them or not. Now traditional real estate agencies face the challenge of identifying new services that have value to today's sophisticated online and empowered consumers.
One result is an "unbundling" of traditional one-size-fits-all real estate services for consumers who want more control over real estate transactions and their associated costs. If you're willing to take on some tasks traditionally performed by agents and brokers, you could receive lower transaction costs. You might benefit from the following emerging alternatives:
Fee-for-services
"Consumers want assistance from real estate professionals, but don't want to pay for it in the form of traditional commissions," says a la Carte real estate Pioneer Julie Garton-Good. Garton-Good has been preaching the fee-for-services gospel for more than 20 years. As the name implies, you can choose which tasks you feel comfortable performing and hire qualified real estate professionals to do the rest. Many traditional real estate brokerages are beginning to offer a more menu-based service plan. For example, you may not mind listing your home and holding open houses, but you may want assistance with contracts and closings.
One-stop shopping
In response to dwindling margins and the rising costs of technology and lead generation, some real estate companies are attempting to combine traditional and Web-based services to provide consumers a single source for all their real estate needs. One-stop shopping sites generally provide or partner with lenders, insurers, title companies, real estate attorneys and others to facilitate all aspects of buying and selling. In addition, some sites are adding home-improvement and related services to stay in touch with consumers between buying and selling transactions.
Web-based discounters
Although many Web-based real estate companies flamed out in the dotcom era, scores of new companies have emerged to take their place. By offering targeted services such as flat-fee MLS listings, buyer rebates and AVM tools, these sites are appealing to independent buyers and sellers who prefer to take a more active role in transactions. In addition to listings, some sites also offer how-to articles and advice for those who choose to go it alone.
Tradition + technology + turbulence = opportunities
So, given the trends, changes and ongoing industry evolution, what can independent buyers, sellers and investors expect in this new era of real estate?
o The Web and other technologies will continue to evolve and transform the $1.3 trillion real-estate industry. Technology will continue to reduce the time, expense and complexity of manual processes, and increasingly sophisticated search and valuation tools will play a more strategic role.
o Free and low-cost real estate resources will continue to be available and even multiply on the Web. In real estate, knowledge truly is power. Consumers will try to use their power to gain more control of the real estate process and subsequently expect to be compensated in the form of reduced and fee-for-service commissions.
o The role of traditional real estate brokerages will evolve as Web-enabled consumers become more knowledgeable. This likely will trigger some restructuring and consolidation of traditional brokerages, but will also drive the development of innovative new practices targeting online and empowered consumers. Real estate professionals will focus more on promoting their local knowledge and industry expertise, while consumers will perform some buying and selling tasks on their own.
o Traditional real estate commissions and profitability levels will continue to face downward pressure from various sources. The future will be profitable for brokerages that are able to extend their core expertise of neighborhood and industry knowledge into flexible new consumer-centric offerings.
o The traditional high-touch, full-service real estate agency is evolving, not disappearing. Real estate professionals who provide exceptional service and value to their customers will always be in demand.
You now can find more real estate knowledge, tools and resources on the Web than ever before, enabling you to buy and sell with increased confidence. For real estate professionals, reinventing the industry means making hard decisions, changing processes and managing new opportunities. But for consumers, reinvention in real estate is a winner, hands-down.
Learn more at http://www.homekeys.net
Charles Warnock is Marketing Communications Manager at Homexperts in Miami, Florida. Their Web site is http://www.homekeys.net. Charles writes frequently on real estate, finance, advertising and marketing communications.
Article Source: http://EzineArticles.com/?expert=Charles_Warnock
Wednesday, 25 August 2010
Reinventing Real Estate, Part 1: Online and Empowered Consumers Are Taking Charge and Paying Less
For decades, the real estate world turned in a predictable manner. The roles of buyers, sellers and real estate professionals were fairly well defined and transactions followed a predictable path of yard signs, newspaper ads, open houses and miles of paperwork.
Recently, online and empowered consumers have changed the game. Real estate professionals now face issues similar to the ones that have transformed the retail, personal finance and travel planning industries. As technology advances and new business models evolve, the real estate industry has begun to transform itself from providing traditional, carefully controlled "agent-centric" transactions to new "consumer-centric" practices. The following is a look at some of the recent industry trends and how buyers, sellers and investors can expect to benefit. The "Five Ds" that are driving change in real estate are:
1. Disruption - Over the past 10 years, the Internet has matured into a powerful platform for delivering real estate information, forever changing the interaction between buyers, sellers and real estate professionals.
2. Displacement - The popularity and acceptance of self-service and consumer-direct business models is being felt by real estate professionals, who are striving to develop attractive new offerings for Web-savvy consumers.
3. Demanding consumers - You now have more real estate knowledge, tools and resources at your fingertips than ever before. More savvy consumers tend to be more independent and demanding.
4. Downward pressure - Traditional real estate commissions of 5-6 percent of a property's sales price are facing downward pressure.
5. Developing alternatives - The real estate industry is transforming itself to provide targeted services and exciting new options that add value for consumers.
Disruption
"We are going to see our industry go through dramatic transformation via the Internet and consolidation of agents and companies." - eRealty Times Columnist Dirk Zeller
Some industry observers have adopted Harvard Business School professor Clayton Christensen's term "disruptive technology" to explain recent developments in real estate. Though it's easy to point to the World Wide Web and advancing technology as the main changes in real estate, that's only part of what's shaking things up. Essentially, the real cause of disruption is not just technology, but technology-enabled real estate consumers.
Web-enabled consumers
According to the National Association of Realtors (NAR), more than 72 percent of homebuyers now begin their home search online. The popularity of online real estate ads surpassed newspaper property listings back in 2001, and the gap is widening. Less than one percent of buyers first learned about the home they purchased on the Internet in 1995, while in 2004, that number passed 20 percent.
According to a California Association of Realtors (CAR) survey, 97 percent of respondents said the Web helped them understand the buying process better and 100 percent said using the Web helped them understand home values better. Web-enabled homebuyers like you are taking a more active role in researching homes and neighborhoods. You also now spend less time with real estate professionals once you have completed your research. Internet homebuyers also used the Web effectively to filter out properties that did not interest them, visiting 6.1 homes on average versus 15.4 for traditional buyers.
Today, you can view photos and detailed information for hundreds of properties in the time it used to take to visit a single one. And the Web provides much more opportunity than simply moving print listings online. The growing availability of residential high-speed Internet connections has boosted the popularity of virtual tours and interactive maps, providing consumers with powerful and flexible visual search tools.
In addition to making home searches easier, automated valuation model (AVM) software is making a big impact in how properties are evaluated. AVMs, which generate valuation estimates by analyzing and comparing property information data, are becoming increasingly sophisticated and accurate. While not considered a substitute for human appraisals, AVMs are gaining popularity because they are inexpensive, easy to use and produce valuation estimates in minutes. Now AVMs, used extensively in electronic mortgage approval processing during the recent refinancing boom, are becoming available on real-estate Websites aimed at consumers. This is a significant development for independent sellers, who often find it challenging to price their properties correctly when selling on their own.
The MLS goes public
"In real estate, MLS data sits at the apex of the change, specifically the MLS information that is pushed to the Internet every minute of the day." - Bradley Inman, Publisher of Inman News
Once an exclusive tool for real estate professionals, the multiple listing service (MLS) has in recent years become a very public platform for real estate listings. The MLS is the nation's most comprehensive database of properties for sale - four out of five homes sold in the United States are listed on the MLS.
MLS properties are available to agents and brokers worldwide, and are now accessible via consumer Web sites such as Realtor.com, WSJ.com, Excite, Netscape, AOL and MSN. MLS listings also appear on local, regional and national brokerage Websites through Internet Data Exchange (IDX) agreements that allow participating Realtors to share listings and display them to consumers. Even though only licensed realtors can list property on the MLS, the system has begun to figure prominently for the $110 billion independent seller (for-sale-by-owner or FSBO) market. About 13 percent of real estate sales are now FSBO, conducted without a broker's assistance.
Type "flat fee MLS" into any major search engine, and you'll see dozens of real estate professionals willing to list your property in the MLS for a fee. If you are willing to pay a commission of 2-3 percent, you can attract the attention of thousands of agents who will show your property to prospective buyers. You can then reduce the cost of the sale to about half a traditional 5-6 percent sales commission, plus the cost of the MLS listing. If you find an independent buyer working without an agent, you could make a sale with no commission at all and pay only an MLS listing flat fee.
Displacement
Currently, about 2.4 million real estate licensees operate nationally, according to the Association of Real Estate License Law officials. The NAR has more than one million members, up from about 760,000 members five years ago. Many real estate professionals and industry observers expect a significant decline in this number because some tasks traditionally performed by agents and brokers can now be done more quickly and easily by Web-enabled consumers.
"Historically the fundamental driver of the real estate industry was the control of information. The real estate agent and the real estate office were the only sources of comprehensive information on which properties were for sale and those who might be interested in buying them. With this control revenues were practically guaranteed.
Moreover, because this exclusive control was akin to a monopoly by virtue of the multiple listing service (MLS) any firm of any size could serve the customer equally well. As a result, the number of real estate companies grew without regard to market efficiencies.
Simply put, the traditional model is too inflexible. Consumers are seriously questioning the value of a real estate agent. They frequently feel that many of the traditional tasks undertaken by the agents are now either no longer required or can be done by the consumer themselves."
- Swanepoel & Tuccillo, Real Estate Confronts Profitability
The quotes above, from a popular report on emerging real estate business models and dwindling profit margins, highlight a number of issues traditional real estate professionals are now facing. And if the real estate industry has grown historically without regard to market efficiencies, the issue has only been compounded since 2001, as new agents signed on in droves, lured by low interest rates and skyrocketing home prices in many areas. It's likely that the number of traditional real estate agents will decline, while new types of real estate jobs will be created to deliver value to Web-savvy customers.
NEXT in Part 2 of 2: - Demanding Consumers, Downward Pressure and Developing Alternatives
Charles Warnock is Marketing Communications Manager at Homekeys in Miami, Florida. Homekeys is a non-traditional real estate Web site that helps consumers buy, sell and save thousands on real estate. Learn more at http://www.homekeys.net. Charles writes frequently on real estate, finance, advertising and marketing communications.
Article Source: http://EzineArticles.com/?expert=Charles_Warnock
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MLA Style Citation:
Warnock, Charles "Reinventing Real Estate, Part 1: Online and Empowered Consumers Are Taking Charge and Paying Less." Reinventing Real Estate, Part 1: Online and Empowered Consumers Are Taking Charge and Paying Less. 20 Apr. 2005 EzineArticles.com. 25 Aug. 2010.
APA Style Citation:
Warnock, C. (2005, April 20). Reinventing Real Estate, Part 1: Online and Empowered Consumers Are Taking Charge and Paying Less. Retrieved August 25, 2010, from http://ezinearticles.com/?Reinventing-Real-Estate,-Part-1:-Online-and-Empowered-Consumers-Are-Taking-Charge-and-Paying-Less&id=28537
Chicago Style Citation:
Warnock, Charles "Reinventing Real Estate, Part 1: Online and Empowered Consumers Are Taking Charge and Paying Less." Reinventing Real Estate, Part 1: Online and Empowered Consumers Are Taking Charge and Paying Less EzineArticles.com. http://ezinearticles.com/?Reinventing-Real-Estate,-Part-1:-Online-and-Empowered-Consumers-Are-Taking-Charge-and-Paying-Less&id=28537 CloseRecommend This Article
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Recently, online and empowered consumers have changed the game. Real estate professionals now face issues similar to the ones that have transformed the retail, personal finance and travel planning industries. As technology advances and new business models evolve, the real estate industry has begun to transform itself from providing traditional, carefully controlled "agent-centric" transactions to new "consumer-centric" practices. The following is a look at some of the recent industry trends and how buyers, sellers and investors can expect to benefit. The "Five Ds" that are driving change in real estate are:
1. Disruption - Over the past 10 years, the Internet has matured into a powerful platform for delivering real estate information, forever changing the interaction between buyers, sellers and real estate professionals.
2. Displacement - The popularity and acceptance of self-service and consumer-direct business models is being felt by real estate professionals, who are striving to develop attractive new offerings for Web-savvy consumers.
3. Demanding consumers - You now have more real estate knowledge, tools and resources at your fingertips than ever before. More savvy consumers tend to be more independent and demanding.
4. Downward pressure - Traditional real estate commissions of 5-6 percent of a property's sales price are facing downward pressure.
5. Developing alternatives - The real estate industry is transforming itself to provide targeted services and exciting new options that add value for consumers.
Disruption
"We are going to see our industry go through dramatic transformation via the Internet and consolidation of agents and companies." - eRealty Times Columnist Dirk Zeller
Some industry observers have adopted Harvard Business School professor Clayton Christensen's term "disruptive technology" to explain recent developments in real estate. Though it's easy to point to the World Wide Web and advancing technology as the main changes in real estate, that's only part of what's shaking things up. Essentially, the real cause of disruption is not just technology, but technology-enabled real estate consumers.
Web-enabled consumers
According to the National Association of Realtors (NAR), more than 72 percent of homebuyers now begin their home search online. The popularity of online real estate ads surpassed newspaper property listings back in 2001, and the gap is widening. Less than one percent of buyers first learned about the home they purchased on the Internet in 1995, while in 2004, that number passed 20 percent.
According to a California Association of Realtors (CAR) survey, 97 percent of respondents said the Web helped them understand the buying process better and 100 percent said using the Web helped them understand home values better. Web-enabled homebuyers like you are taking a more active role in researching homes and neighborhoods. You also now spend less time with real estate professionals once you have completed your research. Internet homebuyers also used the Web effectively to filter out properties that did not interest them, visiting 6.1 homes on average versus 15.4 for traditional buyers.
Today, you can view photos and detailed information for hundreds of properties in the time it used to take to visit a single one. And the Web provides much more opportunity than simply moving print listings online. The growing availability of residential high-speed Internet connections has boosted the popularity of virtual tours and interactive maps, providing consumers with powerful and flexible visual search tools.
In addition to making home searches easier, automated valuation model (AVM) software is making a big impact in how properties are evaluated. AVMs, which generate valuation estimates by analyzing and comparing property information data, are becoming increasingly sophisticated and accurate. While not considered a substitute for human appraisals, AVMs are gaining popularity because they are inexpensive, easy to use and produce valuation estimates in minutes. Now AVMs, used extensively in electronic mortgage approval processing during the recent refinancing boom, are becoming available on real-estate Websites aimed at consumers. This is a significant development for independent sellers, who often find it challenging to price their properties correctly when selling on their own.
The MLS goes public
"In real estate, MLS data sits at the apex of the change, specifically the MLS information that is pushed to the Internet every minute of the day." - Bradley Inman, Publisher of Inman News
Once an exclusive tool for real estate professionals, the multiple listing service (MLS) has in recent years become a very public platform for real estate listings. The MLS is the nation's most comprehensive database of properties for sale - four out of five homes sold in the United States are listed on the MLS.
MLS properties are available to agents and brokers worldwide, and are now accessible via consumer Web sites such as Realtor.com, WSJ.com, Excite, Netscape, AOL and MSN. MLS listings also appear on local, regional and national brokerage Websites through Internet Data Exchange (IDX) agreements that allow participating Realtors to share listings and display them to consumers. Even though only licensed realtors can list property on the MLS, the system has begun to figure prominently for the $110 billion independent seller (for-sale-by-owner or FSBO) market. About 13 percent of real estate sales are now FSBO, conducted without a broker's assistance.
Type "flat fee MLS" into any major search engine, and you'll see dozens of real estate professionals willing to list your property in the MLS for a fee. If you are willing to pay a commission of 2-3 percent, you can attract the attention of thousands of agents who will show your property to prospective buyers. You can then reduce the cost of the sale to about half a traditional 5-6 percent sales commission, plus the cost of the MLS listing. If you find an independent buyer working without an agent, you could make a sale with no commission at all and pay only an MLS listing flat fee.
Displacement
Currently, about 2.4 million real estate licensees operate nationally, according to the Association of Real Estate License Law officials. The NAR has more than one million members, up from about 760,000 members five years ago. Many real estate professionals and industry observers expect a significant decline in this number because some tasks traditionally performed by agents and brokers can now be done more quickly and easily by Web-enabled consumers.
"Historically the fundamental driver of the real estate industry was the control of information. The real estate agent and the real estate office were the only sources of comprehensive information on which properties were for sale and those who might be interested in buying them. With this control revenues were practically guaranteed.
Moreover, because this exclusive control was akin to a monopoly by virtue of the multiple listing service (MLS) any firm of any size could serve the customer equally well. As a result, the number of real estate companies grew without regard to market efficiencies.
Simply put, the traditional model is too inflexible. Consumers are seriously questioning the value of a real estate agent. They frequently feel that many of the traditional tasks undertaken by the agents are now either no longer required or can be done by the consumer themselves."
- Swanepoel & Tuccillo, Real Estate Confronts Profitability
The quotes above, from a popular report on emerging real estate business models and dwindling profit margins, highlight a number of issues traditional real estate professionals are now facing. And if the real estate industry has grown historically without regard to market efficiencies, the issue has only been compounded since 2001, as new agents signed on in droves, lured by low interest rates and skyrocketing home prices in many areas. It's likely that the number of traditional real estate agents will decline, while new types of real estate jobs will be created to deliver value to Web-savvy customers.
NEXT in Part 2 of 2: - Demanding Consumers, Downward Pressure and Developing Alternatives
Charles Warnock is Marketing Communications Manager at Homekeys in Miami, Florida. Homekeys is a non-traditional real estate Web site that helps consumers buy, sell and save thousands on real estate. Learn more at http://www.homekeys.net. Charles writes frequently on real estate, finance, advertising and marketing communications.
Article Source: http://EzineArticles.com/?expert=Charles_Warnock
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REMAX dave procter realty
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www.comox-valley-realty.com
Rate This Article:
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MLA Style Citation:
Warnock, Charles "Reinventing Real Estate, Part 1: Online and Empowered Consumers Are Taking Charge and Paying Less." Reinventing Real Estate, Part 1: Online and Empowered Consumers Are Taking Charge and Paying Less. 20 Apr. 2005 EzineArticles.com. 25 Aug. 2010
APA Style Citation:
Warnock, C. (2005, April 20). Reinventing Real Estate, Part 1: Online and Empowered Consumers Are Taking Charge and Paying Less. Retrieved August 25, 2010, from http://ezinearticles.com/?Reinventing-Real-Estate,-Part-1:-Online-and-Empowered-Consumers-Are-Taking-Charge-and-Paying-Less&id=28537
Chicago Style Citation:
Warnock, Charles "Reinventing Real Estate, Part 1: Online and Empowered Consumers Are Taking Charge and Paying Less." Reinventing Real Estate, Part 1: Online and Empowered Consumers Are Taking Charge and Paying Less EzineArticles.com. http://ezinearticles.com/?Reinventing-Real-Estate,-Part-1:-Online-and-Empowered-Consumers-Are-Taking-Charge-and-Paying-Less&id=28537 CloseRecommend This Article
From:
To:
Message:
SendMost Recent EzineArticles from the Real-Estate Category:
Hottest Real Estate Markets of Today
The Art of Finding a Good Real Estate Agent
Ten (10) Reasons to Work With a Commercial Buyer's Agent
The New Normal for Housing Construction
Home Prices Rise For Second Continuous Quarter
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Make the Most Out of Your Real Estate Agent
Real Estate Investors Choose South West Rocks Property
Australian Coastal Property at South West Rocks
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Tips to Get a Great Place in Beautiful Surroundings
Tips to Get a Wonderful Property in Unspoiled Countryside
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