Many people feel they can sell there home on their own and save the real estate commission or take a lower price to sell faster, times have changed. A few short years ago you could have put a sign in your front yard and have offers by the end of the day from people driving around looking to buy. Buyers today are few and far between, looking to get a steal in this market, and may not even be able to get financing. How will you know who your dealing with?
Do you know what the other homes in your area are selling for? Which homes are the same size and have similar features to yours? How many homes are for sale in your neighborhood? Are they foreclosures? Bank owned properties? Short sales? These are just a few questions to get answered as you think about selling your home on your own. Where will you get this information?
What do you do to get your home ready for buyers to see it? Where do you advertise to let people know you have a home for sale? Is someone always available to open the door and let prospective buyers in? Is this starting to sound like a lot of work? Do you have the time, energy, and resources to handle this along with all the other responsibilities in your life?
What do you do when you get an offer? Who holds the deposit money? Do you have an attorney or title company to handle the transaction and closing? What are reasonable fees that come along with selling a house?
As you can see that selling a home takes a lot of time, energy, and knowledge to be done properly and completely. These are just a few things to worry about as you prepare to sell your home. What is it worth to you having someone out there doing all the work for you, only to get paid if the job is done, a completed sale of your home.
Working with a Realtor to sell your home gives you the direction you need to get the job done correctly. It puts your home in front of 1,000's of other Realtors in your area to let them know your home is for sale. They have proffessional signs, advertising, and contacts to make sure everything goes smooth. And they only get paid when your home is sold.
What price are you willing to pay if you do not sell your house or have something go wrong along the way? It will cost you nothing to meet with a few Realtors in your area and see what they have to offer you. They will happily give you a free consultation and answer some questions, you may see what a benefit it would be to hire one of them. Good Luck either way.
Peter DeJoseph
Lic. Real Estate Broker
Lic. Mortgage Broker
http://www.yourreguy.com/
Thursday, October 16, 2008
Wednesday, October 8, 2008
How Much Lower Can Housing Prices Fall?
With so much doom and gloom in the housing market and with the credit crunch not helping anyone, where are home prices going? Here in Florida home prices have fallen by over 20 percent in the last year and finding "qualified" buyers is getting more difficult everyday.
Looking back we should have realized the double digit percentage growth in the housing market was not going to last forever. We should look at this price correction as a good thing, Imagine if anyone would be able to buy a house if prices kept going up. For example, I have 3 children and without the current price correction the dream of them becoming homeowners would have been just that, a dream.
With the mortgage markets as tight as the are and banks making it more and more difficult to get a loan, we need some relief. From what I see and hear, people who have very good credit and are able to put down a large deposit should have no problem getting a mortgage at a decent rate. It is those people who have a poor credit history that will continue to struggle to borrow money. It seems as though the lenders have learned from their experiences and are not going to make the same mistakes twice. Therefore it is more important than ever to make all your payments on time and keep your credit score as high as possible.
So have we seen the bottom of the market yet? Will Prices continue to fall? If the recent attempts by the government to help the banking industry works and allows them to lend money again, we may see a turn in the market. Remember it's supply and demand, we have the supply and need the demand which means having the banks making loans available to buyers. Remember, nothing lasts forever, just like the sharp rise in real estate prices ended, so will this decline.
By Peter DeJoseph
Lic. Real Estate Broker
Lic. Mortgage Broker
www.YourREguy.com
Looking back we should have realized the double digit percentage growth in the housing market was not going to last forever. We should look at this price correction as a good thing, Imagine if anyone would be able to buy a house if prices kept going up. For example, I have 3 children and without the current price correction the dream of them becoming homeowners would have been just that, a dream.
With the mortgage markets as tight as the are and banks making it more and more difficult to get a loan, we need some relief. From what I see and hear, people who have very good credit and are able to put down a large deposit should have no problem getting a mortgage at a decent rate. It is those people who have a poor credit history that will continue to struggle to borrow money. It seems as though the lenders have learned from their experiences and are not going to make the same mistakes twice. Therefore it is more important than ever to make all your payments on time and keep your credit score as high as possible.
So have we seen the bottom of the market yet? Will Prices continue to fall? If the recent attempts by the government to help the banking industry works and allows them to lend money again, we may see a turn in the market. Remember it's supply and demand, we have the supply and need the demand which means having the banks making loans available to buyers. Remember, nothing lasts forever, just like the sharp rise in real estate prices ended, so will this decline.
By Peter DeJoseph
Lic. Real Estate Broker
Lic. Mortgage Broker
www.YourREguy.com
Monday, October 6, 2008
What to Expect When They're Inspecting
Unlike an appraisal, a home inspection isn't required by the banks or the government when you buy a house. But when you're budgeting your closing costs, it shouldn't be something that you scrimp on. A home inspection is an important step that could tip you off to present or future problems with the building and save you from making a huge mistake. Buyers who want to cover all their bases before they're locked into their mortgage will ensure that a "General Inspection Clause" makes it's way into the final contract and that they have a report from a reputable professional or agency before they lock themselves into any deal.
Home inspections are usually carried out by a contractor or engineer. The inspector's job is to determine the condition of the building and produce a detailed report. Because an inspection focuses almost entirely on the structure of the building, it often catches problems that an appraisal won't.
What You will Get:
- a detailed physical description of the house
- a list of recommended major and minor repairs
- a complete report (should include photos)
Some of the elements you can expect to be included in an inspection are structural elements like the roof, foundation, basement, attic and garage; and building-wide systems such as heating, air-conditioning, insulation, plumbing and electrical systems. You can expect to get a summary of maintenance concerns including repairs, leaks, fire hazards and safety issues. The inspection will also usually include the exterior of the house, the grounds and drainage. Depending on your inspector's expertise and qualifications, you may or may not have to hire additional people to produce reports for more specialized items such as chimney and fireplace, pests, asbestos, radon, lead and mold.
The National Association of Certified Home Inspectors warns consumers that a home inspection is only as good as the home inspector. Buyers would do well to take these words to heart when they're selecting the organization or person who will be producing such an important negotiating tool for them.
Because the industry isn't as well regulated as the appraisal industry, you'll need to do your homework before you hire somebody. Be sure to review their background and experience in the construction industry. Look for a well-rounded contractor or engineer that has knowledge in a variety of areas and systems. If you live in a state where inspectors are required to be licensed, check their record of complaints. If no licensing is required, look for membership in professional organizations or certification through reputable organizations. And finally, look for someone without any conflict of interest who can provide you with an objective report.
After you've hired the inspector, accompany him or her on the tour of the house, ask questions and pay attention. If the final report you receive turns up any problems, you'll have the opportunity to ask the seller to address them, adjust the selling price, or back out of the deal altogether.
If it doesn't turn up any major problems, rejoice and close the deal, you've just bought yourself huge peace of mind.
Article Source: http://EzineArticles.com/?expert=Keith_C.
Home inspections are usually carried out by a contractor or engineer. The inspector's job is to determine the condition of the building and produce a detailed report. Because an inspection focuses almost entirely on the structure of the building, it often catches problems that an appraisal won't.
What You will Get:
- a detailed physical description of the house
- a list of recommended major and minor repairs
- a complete report (should include photos)
Some of the elements you can expect to be included in an inspection are structural elements like the roof, foundation, basement, attic and garage; and building-wide systems such as heating, air-conditioning, insulation, plumbing and electrical systems. You can expect to get a summary of maintenance concerns including repairs, leaks, fire hazards and safety issues. The inspection will also usually include the exterior of the house, the grounds and drainage. Depending on your inspector's expertise and qualifications, you may or may not have to hire additional people to produce reports for more specialized items such as chimney and fireplace, pests, asbestos, radon, lead and mold.
The National Association of Certified Home Inspectors warns consumers that a home inspection is only as good as the home inspector. Buyers would do well to take these words to heart when they're selecting the organization or person who will be producing such an important negotiating tool for them.
Because the industry isn't as well regulated as the appraisal industry, you'll need to do your homework before you hire somebody. Be sure to review their background and experience in the construction industry. Look for a well-rounded contractor or engineer that has knowledge in a variety of areas and systems. If you live in a state where inspectors are required to be licensed, check their record of complaints. If no licensing is required, look for membership in professional organizations or certification through reputable organizations. And finally, look for someone without any conflict of interest who can provide you with an objective report.
After you've hired the inspector, accompany him or her on the tour of the house, ask questions and pay attention. If the final report you receive turns up any problems, you'll have the opportunity to ask the seller to address them, adjust the selling price, or back out of the deal altogether.
If it doesn't turn up any major problems, rejoice and close the deal, you've just bought yourself huge peace of mind.
Article Source: http://EzineArticles.com/?expert=Keith_C.
Thursday, October 2, 2008
Facing Foreclosure? A Loan Modification May Be the Answer
Millions of homeowners are facing foreclosure due to the national housing crisis and mortgage meltdown. One solution to avoid foreclosure is a loan modification. This option is gaining in popularity as lenders realize that keeping homeowners in their home actually might save them money. Foreclosure is an expensive process for banks, and with the current downturn in real estate values, lenders do not want millions of dollars in non-performing assets-foreclosures- on their books.
A Loan Modification is an agreement between the lender and the borrower to modify the terms of the current loan to offer more affordable payments. The goal is to keep the borrower in the home, avoid foreclosure and maintain the integrity of the neighborhood. Recent legislation has directed lenders to make every effort to offer homeowners a viable solution to foreclosure thru modification of their loan.
How can a homeowner be sure that they are receiving the full benefit of a loan modification? First of all, borrowers need to learn everything they can about the process of a bank loan modification. Lenders have set up Loss Mitigation Departments specifically to assist borrowers with this option. There are many companies now offering loan modification assistance for a fee. The problem with these companies is they require a large upfront fee with no guarantee of the outcome.
The truth is, borrowers can contact their lender themselves to get a loan modification. Homeowners need to learn how to get a loan modification from their lender. The Complete Loan Modification Guide shows borrowers how to get a loan modification approved, with easy to follow, step by step instructions. Homeowners receive free loan modification forms along with instructions on how to complete them properly. It is very important that borrowers are fully educated on the process before contacting their lender. Borrowers have one shot at getting a home loan modification-get informed before you make a decision affecting your family.
The Complete Loan Modification Guide shows borrowers:
Who qualifies for a loan modification
Which modification option is best for you
Insider Tips on how to negotiate with your lender
How to get the right person on the phone
What NOT to say
the #1 thing lenders want to know
All the required forms and how to complete them.
Lenders are not being proactive enough to assist borrowers who need a loan modification-homeowners need to get educated and contact their lender as soon as possible. Knowing how to do a loan modification can make the difference between foreclosure and saving the family home.
We are a team of industry professionals with over 25 years of wholesale and retail lending experience. Our stated mission is to assist as many homeowners as possible to learn about alternatives to foreclosure and to keep families in their homes. A Knowledgeable homeowner is a Powerful homeowner.
Article Source: http://EzineArticles.com/?expert=Susan_V._Gregory
A Loan Modification is an agreement between the lender and the borrower to modify the terms of the current loan to offer more affordable payments. The goal is to keep the borrower in the home, avoid foreclosure and maintain the integrity of the neighborhood. Recent legislation has directed lenders to make every effort to offer homeowners a viable solution to foreclosure thru modification of their loan.
How can a homeowner be sure that they are receiving the full benefit of a loan modification? First of all, borrowers need to learn everything they can about the process of a bank loan modification. Lenders have set up Loss Mitigation Departments specifically to assist borrowers with this option. There are many companies now offering loan modification assistance for a fee. The problem with these companies is they require a large upfront fee with no guarantee of the outcome.
The truth is, borrowers can contact their lender themselves to get a loan modification. Homeowners need to learn how to get a loan modification from their lender. The Complete Loan Modification Guide shows borrowers how to get a loan modification approved, with easy to follow, step by step instructions. Homeowners receive free loan modification forms along with instructions on how to complete them properly. It is very important that borrowers are fully educated on the process before contacting their lender. Borrowers have one shot at getting a home loan modification-get informed before you make a decision affecting your family.
The Complete Loan Modification Guide shows borrowers:
Who qualifies for a loan modification
Which modification option is best for you
Insider Tips on how to negotiate with your lender
How to get the right person on the phone
What NOT to say
the #1 thing lenders want to know
All the required forms and how to complete them.
Lenders are not being proactive enough to assist borrowers who need a loan modification-homeowners need to get educated and contact their lender as soon as possible. Knowing how to do a loan modification can make the difference between foreclosure and saving the family home.
We are a team of industry professionals with over 25 years of wholesale and retail lending experience. Our stated mission is to assist as many homeowners as possible to learn about alternatives to foreclosure and to keep families in their homes. A Knowledgeable homeowner is a Powerful homeowner.
Article Source: http://EzineArticles.com/?expert=Susan_V._Gregory
Monday, September 29, 2008
Do You Know Enough About Buying a Condo?
Many people who own condominiums are happy with the arrangements, but the trick is to do research before buying.
A well-located, well designed condo is probably as good an investment as any other real estate. The value of a condo should increase, remain fairly constant, or decrease with the overall market.
Some things you should know before buying a condo:
Maintenance cost or association fees.
All members want lower dues. But no member wants reduced services. Compare condo fees of other associations in the area that offer similar amenities and services.
Are there any special assessments on the horizon?
Special assessments are fees that condo associations sometimes charge owners to pay for emergency repairs, litigation, or to cover monthly dues in the event of multiple foreclosures.
What percentages of units are being rented out by their owner?
It's an established fact that owners take better care of their property than do tenants. Owners are more observant of rules, and they keep the place in better shape. If a development has a lot of tenants, you will find that overall it's a noisier place. Generally, swimming pool, spa and other amenities may be more heavily used.
Another reason for checking the tenant-to-owner ratio is that it can be difficult to resell. Any development with a ratio of 10% tenants or less should be considered good; 20% or more could be cause for alarm.
What are the condo rules?
In any shared ownership development there are going to be rules that you'll have to live by. You may not agree with all of them when you first buy the unit but find later on you want to change one or two, this may not be possible. You should get a copy of the bylaws and rules. Know the rules; you don't want any unpleasant surprises later on.
Location of the unit within the development.
Here are some areas you may want to avoid:
• Does the unit face a tree-lined street or will it be a view of the parking area?
• Does it face a busy street?
• Is the unit near a swimming pool or recreational center?
• Is the unit near noisy neighbors?
Are the any lawsuits pending?
The big problem with lawsuits is liability. If the association loses, the homeowners (who are the association) lose. That means that a judgment could be awarded against all the owners and each one could be required to pay a portion of it. Some states limit such loss, provided there is sufficient liability insurance.
If there's a lawsuit pending when you buy into a condo and the association loses the suit and must pay damages, you could be liable for your share of those damages. This could occur even if you bought in after the lawsuit was filed.
How much insurance does the board carry?
You need to know how much insurance the development carries. Is it enough and what does it cover? You should be particularly concerned that the development has liability coverage on:
• Accidents - if someone slips and falls next to a pool.
• Actions of the association - errors or omissions.
• Actions of employees - if someone is hurt through negligence or is wrongfully terminated.
• Actions of owners - if someone doesn't like a rule and goes to court to get it changed.
There are many other questions that you need to know, but if you have the answers to these questions you will be closer to making an informed and intelligent purchase decision.
Eday Cafe is my home away from home. A place I can visit to share anything I want about any topic, my passions, my interests, my life experiences but most of all - a place to have fun!
Stop by and have a look around, you'll find ideas, information, suggestions and quite possibly, you'll have fun too!
Article Source: http://EzineArticles.com/?expert=Elizabeth_Day
A well-located, well designed condo is probably as good an investment as any other real estate. The value of a condo should increase, remain fairly constant, or decrease with the overall market.
Some things you should know before buying a condo:
Maintenance cost or association fees.
All members want lower dues. But no member wants reduced services. Compare condo fees of other associations in the area that offer similar amenities and services.
Are there any special assessments on the horizon?
Special assessments are fees that condo associations sometimes charge owners to pay for emergency repairs, litigation, or to cover monthly dues in the event of multiple foreclosures.
What percentages of units are being rented out by their owner?
It's an established fact that owners take better care of their property than do tenants. Owners are more observant of rules, and they keep the place in better shape. If a development has a lot of tenants, you will find that overall it's a noisier place. Generally, swimming pool, spa and other amenities may be more heavily used.
Another reason for checking the tenant-to-owner ratio is that it can be difficult to resell. Any development with a ratio of 10% tenants or less should be considered good; 20% or more could be cause for alarm.
What are the condo rules?
In any shared ownership development there are going to be rules that you'll have to live by. You may not agree with all of them when you first buy the unit but find later on you want to change one or two, this may not be possible. You should get a copy of the bylaws and rules. Know the rules; you don't want any unpleasant surprises later on.
Location of the unit within the development.
Here are some areas you may want to avoid:
• Does the unit face a tree-lined street or will it be a view of the parking area?
• Does it face a busy street?
• Is the unit near a swimming pool or recreational center?
• Is the unit near noisy neighbors?
Are the any lawsuits pending?
The big problem with lawsuits is liability. If the association loses, the homeowners (who are the association) lose. That means that a judgment could be awarded against all the owners and each one could be required to pay a portion of it. Some states limit such loss, provided there is sufficient liability insurance.
If there's a lawsuit pending when you buy into a condo and the association loses the suit and must pay damages, you could be liable for your share of those damages. This could occur even if you bought in after the lawsuit was filed.
How much insurance does the board carry?
You need to know how much insurance the development carries. Is it enough and what does it cover? You should be particularly concerned that the development has liability coverage on:
• Accidents - if someone slips and falls next to a pool.
• Actions of the association - errors or omissions.
• Actions of employees - if someone is hurt through negligence or is wrongfully terminated.
• Actions of owners - if someone doesn't like a rule and goes to court to get it changed.
There are many other questions that you need to know, but if you have the answers to these questions you will be closer to making an informed and intelligent purchase decision.
Eday Cafe is my home away from home. A place I can visit to share anything I want about any topic, my passions, my interests, my life experiences but most of all - a place to have fun!
Stop by and have a look around, you'll find ideas, information, suggestions and quite possibly, you'll have fun too!
Article Source: http://EzineArticles.com/?expert=Elizabeth_Day
Thursday, September 25, 2008
National Association of Realtors
Realtors, the members of the National Association of Realtors, are the largest trade association in North America. It represents over 1.2 million members plus all of their councils, institutes, societies and anything they are involved in regarding residential and commercial real estate. The National Association of Realtors grows each year and the association's president for 2008 is Richard F. Gaylord. The association operates as a Self Regulatory Organization.
The National Association of Realtors was founded in 1908 as the National Association of Real Estate Exchanges. The original group was located in Chicago, Illinois. The group then changed its name to the National Association of Real Estate Boards in 1916 and then acquired its current name in 1974. The current version of the group, the National Association of Realtors, is consisted of a variety of different members.
Those members are residential and commercial real estate brokers, salespeople, appraisers, counselors, immovable property managers and any other members that practice within the industry where a state license to practice is required. All members of the National Association of Realtors belong to over 1,600 different boards locally. All members are also required to honor a realtor code of ethics that includes their promises to their customers, clients, the public and to their fellow realtors. Each local group of the 1,600 is required to enforce the realtor code of ethics with a Professional Standards Council or Committee. If a realtor is found guilty of breaking the code of ethics they can be fined upwards to $5,000, be enrolled in an educational course, can have their membership suspended or expelled, be issued a letter of warning or can be placed on probation.
The following is a list of NAR (National Association of Realtors) sponsored members:
Accredited Buyer Representative
Accredited Land Consultant
Certified Commercial Investment Member
Certified Property Manager
Certified Real Estate Brokerage Manager
Certified Residential Specialist
Certification for Internet Professionalism
Certified International Property Specialist
Counselor of Real Estate
Graduate of the Realtor's Institute
Real Estate Professional Assistant
Not only does the National Association of Realtors provide services to the public when looking to purchase property but they are also heavily involved with political campaigns. The National Association of Realtors had the largest PAC, or Political Action Committee, in the United States in 2005. The National Association of Realtors is the United States' third largest donor to political campaigns. They have donated an estimated $30 million to various political campaigns since 1990. Their donations have been split up almost evenly since 1990 between Democrats and Republicans. The group has donated 53 percent of their money to Republicans and 47 percent to Democrats.
The terms realtor and realtors were trademarked by the National Association of Realtors in 1949 so that no other commercial party could use the term and cause confusion as to what was being referenced. Only members or license holders of the National Association of Realtors can use the terms realtor or realtors as of 2008.
Green Building and Buyers Advantage Group Realty
Building a Green Home
Article Source: http://EzineArticles.com/?expert=Brenda_Williams
The National Association of Realtors was founded in 1908 as the National Association of Real Estate Exchanges. The original group was located in Chicago, Illinois. The group then changed its name to the National Association of Real Estate Boards in 1916 and then acquired its current name in 1974. The current version of the group, the National Association of Realtors, is consisted of a variety of different members.
Those members are residential and commercial real estate brokers, salespeople, appraisers, counselors, immovable property managers and any other members that practice within the industry where a state license to practice is required. All members of the National Association of Realtors belong to over 1,600 different boards locally. All members are also required to honor a realtor code of ethics that includes their promises to their customers, clients, the public and to their fellow realtors. Each local group of the 1,600 is required to enforce the realtor code of ethics with a Professional Standards Council or Committee. If a realtor is found guilty of breaking the code of ethics they can be fined upwards to $5,000, be enrolled in an educational course, can have their membership suspended or expelled, be issued a letter of warning or can be placed on probation.
The following is a list of NAR (National Association of Realtors) sponsored members:
Accredited Buyer Representative
Accredited Land Consultant
Certified Commercial Investment Member
Certified Property Manager
Certified Real Estate Brokerage Manager
Certified Residential Specialist
Certification for Internet Professionalism
Certified International Property Specialist
Counselor of Real Estate
Graduate of the Realtor's Institute
Real Estate Professional Assistant
Not only does the National Association of Realtors provide services to the public when looking to purchase property but they are also heavily involved with political campaigns. The National Association of Realtors had the largest PAC, or Political Action Committee, in the United States in 2005. The National Association of Realtors is the United States' third largest donor to political campaigns. They have donated an estimated $30 million to various political campaigns since 1990. Their donations have been split up almost evenly since 1990 between Democrats and Republicans. The group has donated 53 percent of their money to Republicans and 47 percent to Democrats.
The terms realtor and realtors were trademarked by the National Association of Realtors in 1949 so that no other commercial party could use the term and cause confusion as to what was being referenced. Only members or license holders of the National Association of Realtors can use the terms realtor or realtors as of 2008.
Green Building and Buyers Advantage Group Realty
Building a Green Home
Article Source: http://EzineArticles.com/?expert=Brenda_Williams
Sunday, May 4, 2008
Recovery Of Florida Real Estate From Past Decline
Florida is currently on the road to recovery from a major decline in real estate ventures. Many studies conducted by real estate and market experts reports that this year may result in a positive response from the real estate market here in the region.
Steady Downfall of Florida Real Estate
The years before 2005 marked a prosperous real estate venture in Florida. Many foreign and local investors are flocking into the area to buy any "for sale" lots they can find. Investors are even taking advantage of half-finished construction projects in assorted real estate properties, like apartments, for bigger profit.
The years 2005 and 2006, however, gave evidence to the major decline in the economy of Florida real estates. Residential property acquisitions were in steady decline as many individuals defaulted on their loan payments.
Foreclosures of many residential properties were commonly seen during the late months of 2005 and early 2006. Financial lenders were implementing strict procedures and guidelines on residential acquisition loans, which made it harder for people to get one.
June 2006 resulted in a total of 30% decline in home sales and 35% on condo units. Certain areas of Florida experienced a 48% reduction on home sales - which was considered as an all-time low in the region.
The Road To Recovery
The pendulum that represents the real estate market in Florida swung to the opposite direction in 2007 and 2008. Home sale prices are now going down, which is more affordable for local residents and foreign investors.
The interest rates of financial loans are also going down, as well as the strict measures implemented during 2005 and 2006, are slowly being loosened. The interest rates of these residential areas are also on a steady decrease, which is evidenced by the slow increase of home sales and real estate acquisitions.
Early this 2008, there has been a major influx of new residents, as well as new job opportunities. Both clear indicators that Florida is slowly recovering from its major decline.
Market experts and economists believed that when the high property taxes and home insurance premiums are being regulated to accommodate the demands of both local and international buyers, Florida may be able to profit greatly from the sudden turn of events in real estate.
New opportunities
There has been a major increase in real estate acquisition in commercial and industrial areas in Florida, especially for the opportunities of such. This includes executive office space, office buildings, corporate headquarters, suites, and bank branches.
Other commercial properties are also in a steady rise as many areas are developed into shopping centers and malls, chain stores, showrooms, retail sites, and more.
But despite the availability of these real estate properties that will give Florida the leverage to tip the balance in their favor, everything will all depend if the buyers will be interested enough to invest in the venture.
http://miamirealestateinc.com - Florida Realty
Vanessa A. Doctor from Jump2Top - SEO Company
Article Source: http://EzineArticles.com/?expert=Vanessa_A._Doctor
Steady Downfall of Florida Real Estate
The years before 2005 marked a prosperous real estate venture in Florida. Many foreign and local investors are flocking into the area to buy any "for sale" lots they can find. Investors are even taking advantage of half-finished construction projects in assorted real estate properties, like apartments, for bigger profit.
The years 2005 and 2006, however, gave evidence to the major decline in the economy of Florida real estates. Residential property acquisitions were in steady decline as many individuals defaulted on their loan payments.
Foreclosures of many residential properties were commonly seen during the late months of 2005 and early 2006. Financial lenders were implementing strict procedures and guidelines on residential acquisition loans, which made it harder for people to get one.
June 2006 resulted in a total of 30% decline in home sales and 35% on condo units. Certain areas of Florida experienced a 48% reduction on home sales - which was considered as an all-time low in the region.
The Road To Recovery
The pendulum that represents the real estate market in Florida swung to the opposite direction in 2007 and 2008. Home sale prices are now going down, which is more affordable for local residents and foreign investors.
The interest rates of financial loans are also going down, as well as the strict measures implemented during 2005 and 2006, are slowly being loosened. The interest rates of these residential areas are also on a steady decrease, which is evidenced by the slow increase of home sales and real estate acquisitions.
Early this 2008, there has been a major influx of new residents, as well as new job opportunities. Both clear indicators that Florida is slowly recovering from its major decline.
Market experts and economists believed that when the high property taxes and home insurance premiums are being regulated to accommodate the demands of both local and international buyers, Florida may be able to profit greatly from the sudden turn of events in real estate.
New opportunities
There has been a major increase in real estate acquisition in commercial and industrial areas in Florida, especially for the opportunities of such. This includes executive office space, office buildings, corporate headquarters, suites, and bank branches.
Other commercial properties are also in a steady rise as many areas are developed into shopping centers and malls, chain stores, showrooms, retail sites, and more.
But despite the availability of these real estate properties that will give Florida the leverage to tip the balance in their favor, everything will all depend if the buyers will be interested enough to invest in the venture.
http://miamirealestateinc.com - Florida Realty
Vanessa A. Doctor from Jump2Top - SEO Company
Article Source: http://EzineArticles.com/?expert=Vanessa_A._Doctor
Sunday, April 27, 2008
How To Evaluate Potential Profit Before You Buy A Pre-Foreclosure
You've put together a killer pre-foreclosure list. Now it's time to decide which opportunities to pursue. Research the properties on your list and analyze the information to evaluate the profit potential of each home.
Estimated market value
Start with the home's estimated market value. Estimated market value is the amount for which the assessor believes the home could be sold in the current market. You'll need this number in order to determine the property's potential gross profit.
The formula is simple: Estimated market value - default amount = gross estimated equity
The number you come up with represents the property's potential gross profit. If the number is low, meaning there's very little difference between the property's market value and the amount of debt, then it's not a good opportunity. If the number is high, there's a good chance that the property will yield enough equity for a tidy profit.
Other costs and fees to consider
When you're determining the profit potential of a property, there are certain other costs you need to factor in. For instance, you have to consider carrying costs, interest and the fees charged by real estate agents and brokers.
If you neglect to consider these various fees and expenses, your estimate will be inaccurate -- and could lead to your investing in a property with poor profit potential. These costs are particularly important if you're considering a home that has little equity to begin with.
Carrying costs
"Carrying costs" is a catch-all term for the various expenses you incur while maintaining a property. For example, as an investor, you'll need to keep certain utilities turned on. You can't see a house in the pitch dark, after all. You want potential buyers to be comfortable. No one will want to spend time viewing a house that's too hot or cold.
Repairs
Foreclosed homes are typically in need of more repairs than occupied homes. Vandalism is also a concern. Even a house with substantial equity might be a losing deal if you're facing costly repairs. You won't know the precise repairs until you evaluate the property in person, so just leave yourself a cushion as you perform the initial potential profit assessment.
Interest
You'll also have to pay interest on the loan. That interest can be quite high, particularly when you're dealing with hard money lenders. The fact that a home was foreclosed on is a sign that the interest rates are sizable.
Closing costs
Last but not least are closing costs. As the seller, you pay the real estate agent's commission. The commission can be anywhere from 3% to 6% of the sales price. You could be looking at several thousand dollars.
Just a quick look
Right now you're just performing a quick evaluation. You're crunching the numbers enough to narrow down your list of potential properties. Seeing a home in person can swing the profit potential in either direction. Once you've given a property a tentative thumbs up, contact the homeowner and make an appointment to view the home.
Don't be tempted to skip over this important step. Time is money, and this profit analysis could save you from sinking both time and money into a bad deal.
Robert Lam is a full-time investor and author of [http://www.ForeclosuresUnleashed.net/?article]http://www.ForeclosuresUnleashed.net and teaches beginner, intermediate to experienced investors across the world how to profit from real estate. There's a free gift available for the investor at [http://www.ForeclosuresUnleashed.net/?article]http://www.ForeclosuresUnleashed.net.
Article Source: http://EzineArticles.com/?expert=Robert_Lam http://EzineArticles.com/?How-To-Evaluate-Potential-Profit-Before-You-Buy-A-Pre-Foreclosure&id=1127939
Estimated market value
Start with the home's estimated market value. Estimated market value is the amount for which the assessor believes the home could be sold in the current market. You'll need this number in order to determine the property's potential gross profit.
The formula is simple: Estimated market value - default amount = gross estimated equity
The number you come up with represents the property's potential gross profit. If the number is low, meaning there's very little difference between the property's market value and the amount of debt, then it's not a good opportunity. If the number is high, there's a good chance that the property will yield enough equity for a tidy profit.
Other costs and fees to consider
When you're determining the profit potential of a property, there are certain other costs you need to factor in. For instance, you have to consider carrying costs, interest and the fees charged by real estate agents and brokers.
If you neglect to consider these various fees and expenses, your estimate will be inaccurate -- and could lead to your investing in a property with poor profit potential. These costs are particularly important if you're considering a home that has little equity to begin with.
Carrying costs
"Carrying costs" is a catch-all term for the various expenses you incur while maintaining a property. For example, as an investor, you'll need to keep certain utilities turned on. You can't see a house in the pitch dark, after all. You want potential buyers to be comfortable. No one will want to spend time viewing a house that's too hot or cold.
Repairs
Foreclosed homes are typically in need of more repairs than occupied homes. Vandalism is also a concern. Even a house with substantial equity might be a losing deal if you're facing costly repairs. You won't know the precise repairs until you evaluate the property in person, so just leave yourself a cushion as you perform the initial potential profit assessment.
Interest
You'll also have to pay interest on the loan. That interest can be quite high, particularly when you're dealing with hard money lenders. The fact that a home was foreclosed on is a sign that the interest rates are sizable.
Closing costs
Last but not least are closing costs. As the seller, you pay the real estate agent's commission. The commission can be anywhere from 3% to 6% of the sales price. You could be looking at several thousand dollars.
Just a quick look
Right now you're just performing a quick evaluation. You're crunching the numbers enough to narrow down your list of potential properties. Seeing a home in person can swing the profit potential in either direction. Once you've given a property a tentative thumbs up, contact the homeowner and make an appointment to view the home.
Don't be tempted to skip over this important step. Time is money, and this profit analysis could save you from sinking both time and money into a bad deal.
Robert Lam is a full-time investor and author of [http://www.ForeclosuresUnleashed.net/?article]http://www.ForeclosuresUnleashed.net and teaches beginner, intermediate to experienced investors across the world how to profit from real estate. There's a free gift available for the investor at [http://www.ForeclosuresUnleashed.net/?article]http://www.ForeclosuresUnleashed.net.
Article Source: http://EzineArticles.com/?expert=Robert_Lam http://EzineArticles.com/?How-To-Evaluate-Potential-Profit-Before-You-Buy-A-Pre-Foreclosure&id=1127939
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