What is a Real Estate Development Agreement?

Of all of the legal agreements that you will have to go over in your lifetime, a real estate development agreement is one of the longest and one of the most complicated. Many of the other forms we’ve looked at here are short; usually one or two pages and they can be filled out and read over in only a few minutes. With a real estate development agreement, you will likely need hours to wade through one of these dense, 10-50 page documents. Let’s take a look at what a real estate development agreement is and why they are so lengthy.

A real estate development agreement is just that, an agreement to develop a parcel of land for personal or commercial use. The agreement can be between an individual and a construction company, a commercial builder and a city or town, a city and town and a retail business or other combinations of the above. Some real estate development agreements between large companies like Wal-Mart and a city or between a company that will be dealing with hazardous chemicals, like a gas station and a city, can be extremely long as they need to cover any eventuality that could arise during building or later on if there is an accident.

The typical real estate development agreement starts off with simple definitions of who is involved with the agreement, the date and where the piece of property that is scheduled for development is. The agreement will also spell out the municipality that is in charge of overseeing the development. The next part of the contract is often the „Witnessed“ section that lists all of the necessary steps the builder has had to complete up to this point to have the development agreement approved by the city. The city will make sure that the area you’ve chosen to build on is properly zoned for the type of building you intend to do and they will also check that you’ve submitted a development plan, which is different than this agreement, to the city in advance of this form. Once those steps are met, the meat of the contract is spelled out.

The first section is the definitions that simply spell out what each term used in the contract refers to. For example, the city or builder will likely define what „total cost“ means so it can be used throughout the contract. If it is a simple home building contract, there will only be two or three definitions, if the contract is for commercial property, there could be dozens.

Next, the development plan sketches out the project. This section is often short and simply lays down the ground rules of the build, such as the time frame, property limits and so on.

The improvements section can be quite long as it outlines all of the improvements this development will do with the city like improving sewer lines that it hooks up to.

The final sections of the contract go over deadlines for building and things like landscaping rules, parking rules and what rules are in place for further building on that parcel of land. Overall, a real estate development agreement is often as complicated as your plan is: simple for homes, complicated for commercial properties.

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Source by Mark Warner

What Annoys Real Estate Agents

Real Estate Agents, like anyone else in the sales profession, have their fair share of job related ‚pet hates‘. Due to the nature of the work where one is dealing with clients who, in most cases, are selling or purchasing the biggest investment of their lives, a lot of emotions are involved. These emotions are often portrayed as indecision, insecurity and ego. Of course an Agent would like their work to be as simple as listing and selling properties and while this is exactly what goes on most of the time, more than most professions, a large portion of an Agent’s best efforts are often wasted. Most Agents work on a commission basis only and can not really afford to waste resources in an effort to please awkward and unreasonable clients, but nevertheless they often do. As someone who has worked in the field for over a decade and from my own perspective I will try to cover some situations that I endured and that Agents continue to endure as a part of their daily work. I would say that the following would rate among some of the most annoying issues that Agents have to face on a daily basis.

Users – These are the home owners in an Agent’s canvassing area that the Agent has spent years building a professional relationship with and given a courtesy call at least once a month for years, who then list and sell their property through another Agency. The Agent may have been called upon to do property assessments (estimating a property’s value by means of market related statistics) for the home owner’s portfolio of properties. The Agent may have been called upon often to offer info and advice on property taxes or property law but then the seller goes and lists and sells through a rookie Agent, new to the area and who has done no more than drop a leaflet in the seller’s post box!

Time Wasters – I recall arriving home late one Sunday afternoon after a camping trip. I had just pulled into the driveway when my mobile phone rang. It was a chap in my neighbourhood who said that he wanted to sell his house urgently, it could not wait, I had to go see him immediately! I quickly unpacked the car, changed and went to see the seller. On arriving there, I saw that he was having a braai (barbeque) and a few beers with some friends. I had printed a valuation report which I presented to him and after a short discussion he signed a Mandate for me to proceed with the sale of his property, despite his girlfriend’s objections. The next morning he called to say that he wanted to change his mind about selling as he did not feel ready yet!

About five weeks later he called once more and with a beer in his left hand he signed a new mandate with me. I placed his property on the market, sat a show house and was able to get him an offer at a value that he originally said that he would agree to. He turned the offer down and said that he would like to take his property off the market until he could get even more for it. Once more I obliged.

When he called me around three months later to sell his house again, I referred him to an Agent in the area who I did not like. I realised that this seller only wanted to sell his house whenever he was drunk!

Staying on the same subject, I would say that buyers who are too relaxed can be very unreasonable. I would say that Agents are let down frequently by prospective buyers who do not make it to appointments to view properties. Often I would call a few sellers to set up the required times for when I could bring my prospective buyer through to view. I would then arrange to meet the buyer at a neutral spot such as at the local service station. After waiting in the hot sun for 15 or 20 minutes I would call the buyer to see where they were and often they had just left the office on the other side of town, in peak hour traffic or had totally ‚forgotten‘ that they had another appointment. A timeous courtesy call to an Agent would make a big difference, but often a relaxed buyer simply does not get around to it. Many a Friday afternoon I would call to see where the buyer was only to be told they had forgotten the appointment while the background noise clearly indicated that they were in a pub.

Other buyers can simply not make up their minds on what they are looking for. An Agent will drive some buyers around to see all twenty of the listings on their books that seem to be within the category of what the buyer is looking for. The buyer will either dislike everything he sees or, even worse, love everything he sees but still not commit to making an offer. Often, after the Agent has spent around four full days driving the prospective buyer around, the buyer will go and buy a property through another Agency that is totally different to what he said he was looking for.

Cheapskates – Buyers who really like a property often want it for next to nothing even though there is value in the property. Despite any advice to make a decent offer, they will make a ridiculous one which is hardly worth putting down in writing but that the Agent is obliged to present to the seller. When the predictable happens and the offer is rejected, then they will counter offer by such a small amount that it would hardly make a difference. When the counter offer is rejected, the average cheapskate (who can afford more) will often ask the Agent to call them if they get another offer and to tell them how much the other offer was for. A decent Agent should not disclose any figures but can say that they received a higher offer. This is usually not good enough for a cheapskate who only wants to offer ten cents more at most and so these buyers are usually not worth pursuing.

Complainers and Bulldozers – I group complainers and Bulldozers together as they are often one and the same. This group usually feels that everyone must jump because they are parting with their cash. They often request to see the property again and then complain about things that they were okay with at the time of signing the Offer to Purchase. All of a sudden they are no longer happy with the colour of the paint in the rooms that they want to use for their children and the rooms must be repainted before they move in because the kids cannot possibly breathe in paint fumes. The re-painting is something that the seller needs to do as they have already offered so much for the property that they could have bought the ten bedroom mansion two blocks down for the same price. Any opposition to such a request is usually met with a threat to cancel the whole deal.

I once had a buyer who wanted investment property, he looked over a small house that I had listed before completing an Offer to Purchase. He said that he would like the back wall by the kitchen repainted. I noted this under ’special conditions‘ on the Offer to Purchase document and thought that this would be covered once accepted by the seller. The seller repainted the back wall and then the buyer asked to see the vacant property once more. On seeing the property for the second time he said that he wanted the whole outside of the house repainted otherwise he would, surprise, surprise… cancel the whole deal. The seller refused to budge and instead of the deal being cancelled the buyer got his Attorney involved and threatened to sue everyone. After two weeks of haggling, the issue was finally resolved when the sellers reluctantly agreed to paint the whole outside of the property.

Nibblers – This is a group that I personally find most stressful. These are buyers that move in and then start to want additional repairs done to add value to their purchase. They go through the property like Sherlock Holmes with his magnifying glass and make four pages of bullet points about everything that is wrong with the house. Everything from the flaking paint on the back window ledge to the chip on the corner of the guest bathroom window pane is noted. They whine and complain about the seller needing to repair everything and if they are paying occupational rent before transfer then they also usually threaten to cancel the whole deal or to stop paying occupational rent.

Lazy Sellers – Some sellers agree to carry out repairs as part of the Sales Agreement. They never do despite numerous reminders. The buyer understandably becomes agitated and the Agent gets caught up in the middle of the whole mess. It often takes prolonged intervention from the Transfer Attorney to resolve the issue.

There you have it, so next time you query your Agent’s commission, bear in mind what they often have to endure. It is hard enough for Agents to get Mandates in the first place and then a lot of sales fall through and Mandates are lost due to issues such as a buyer not being able to secure a home loan.

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Source by Steve M Egan

What Is Meant By Real Estate Listings

Real estate listings pertain to listings of homes that are for sale in your location. When a home is brought to the market with the help of a real estate agent, they are get listed on what is called the Multiple Listing Service.

Multiple listing service makes compilation of all homes that are placed on the market in the state. By utilizing this service, real estate agents can find homes that are for sale to help their costumer in purchasing with great selections purchase. But, what can you get out of reading the real estate listings?

If you decide selling a home, the real estate listings in your area are essential to read and understand. Having that step, not only do they tell you what your competition for home sales is, but they also help you to come up with your wise decisions about the value of your home.

When you read the real estate listings in your area, you can see what others are showcasing with their home for sale at, and adjust your homes value based on the features, age and size or dimension of their home to yours. Real estate agents are using this information to help you to accurately decide about the price your home.

Real estate listings are generally designed for buyers. By presenting information that a home is for sale, individuals can clearly see that this is one alternative that they have. When you work with your real estate agent, you’ll want to find the best possible homes that fit your price range as well as your needs.

Real estate listings are something you should look at yourself, but they should not be the only thing that you do. You should work with a good real estate agency that is going to track down homes that fit your needs and your, of course, budget. You want to find all of your options so that you can make the right decision fully.

Internet Real Estate listings

The Internet provides opportunities for success to both home buyer and seller. Through it, both can have an easy trading deal even if the are just on virtual discussions.

When you are in this business, it is strongly recommended that you are able to join in Internet based trading because it is a great way for your success. In fact when you have your own domain, interested property or home buyers tend to check back to your website every week, in the hope of finding fresh properties. So, it is indeed a great way for better sales.

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Source by Stephen Campbell

7 Cheap and Easy Ways to Generate Mortgage Leads

Need a few more loans but don’t have the cash to do some serious marketing? Have no fear. In this issue I am going to reveal 7 fantastic ways to generate leads almost for free. These methods are super cheap (most are free) and work like gangbusters.

How do I know? Because I shared them with my coaching clients and they had excellent results.

These 7 methods are just a few of the over 30 cheap marketing methods I share in one lesson of my 24 lesson Jump Start Your Mortgage Career E-Class. This new class is for any loan officer who is new and struggling or any verteran that just needs a little help with their marketing. It took me over 2 years to create the content for this 12 week, 24 lesson class, and I can honestly say there is nothing available out there that compares to this class.

If you could use more loans, then do yourself a favor and check it out for yourself. http://www.mortgagebrokertraining.com/jumpstart.html

Here we go…

Cheap Mortgage Lead Generation Tip # 1. Join an Association

People join associations for one of three reasons:

Social – they want to build or maintain friendships and influences that may have taken years to build;

Promotional – they want to offer their own products or services to others in in a cost effective and positive way;

Educational – they want to see what their competition is up to, and find out about the latest developments within their industry

Grow your network and your database by joining groups of already established people. By socializing with people who have something in common with, it makes it easier to generate business. People like to do business with people they like and trust. Most people like others who have the same interests as they do.

Cheap Mortgage Lead Generation Tip #2: Use Book Stores

One of the questions I keep asking all my coaching clients is „How can you tell if someone is getting ready to need a mortgage? What do they do? How do they act?“

This is the million dollar question. If you can answer this question, you can easily be rich in the mortgage business. By being able to identify that they want a mortgage before they start looking for one, you can get a jump on all the other loan companies. This is one area of our business that still annoys me. Most other businesses, have a way to identify when someone will need their service and can market to them accordingly. Like when someone buys a new home, they most likely will be buying furniture, blinds, home accessories, etc. So if we were selling any of these items, all we need is a list of new homeowners to market to. And that list is easily available. But how the heck do we figure out who is „thinking“ of getting a mortgage?

The answer one of my coaching clients came up with was that they might go to the bookstore or library to read books on home buying, or mortgages, or real estate in general. And that’s true. Every bookstore has a real estate section. And most of the books are for consumers who are buying and selling real estate.

So my next question is, „Now that we have identified what they do, how do we get our message in front of them?“

And my client came up with this simple method: Go to the bookstores and libraries and insert a business card into each book.

After doing it for a couple months, he came up with some simple observations:

First, he learned that the best place to put the card was somewhere in the front. Try for the first chapter because not everyone reads the whole book.

Second, pick the books with the best covers and graphics inside- they sell the best.

Third, not all books sell and some are sent back to the publishers.

Fourth, having a USP on the card helps boost response.

Fifth, it takes about 10 minutes per bookstore.

Sixth, he averages 3-4 calls a month, and one loan per month.

Seventh, he now has his assistant do it. And she goes once a week.

Eight, the people who call are in search of more information, so offering them unbiased advice and more resources really turns them on.

If you have the time, and are brave enough to be seen doing it, try it and see what results you get. I wanted to test it in my market. So I went to three bookstores and put in about 120 cards. I got 2 calls, and one of them is a very serious prospect. If I do it more often, I have no doubt that it would work for me as well.

Cheap Mortgage Lead Generation Tp #3: Orphan Files

When a loan officer leaves a company the clients he/she brought to the company are called orphans. These clients now belong to the company. Ask your manager to see if you can contact any orphan files in your office to see if they need any mortgage or real estate help. Be nice enough, and they will allow you to add them to your database.

Cheap Mortgage Lead Generation Tip #4: Tradeshows

Another coaching client of mine goes to tradeshows. But not the ones related to our business. He goes to unrelated trade shows: electronic shows, design shows, car shows, and his favorite: women’s trade shows.

Most of the time, he is the only mortgage company there. And he is averaging 2-3 loan applications per show. The trick is to tie in your business with the show. If it is a car show, you can advertise that you can help anyone buy any car in the place.

If you can pre-approve someone at a car show for a cash out refinance, they can go and buy that hot car they have been salivating on for the last 2 hours. Instant gratification.

Cheap Mortgage Lead Generation Tip #5: Join A Local Real Estate Investment Group.

Every major city has one. And they are full of people buying and selling houses. They need money to buy houses, and they need money to help others buy their houses.

Cheap Mortgage Lead Generation Tip #6: Realtor Open Houses

Stop by at realtor open houses on the weekends. Offer to leave some financing materials.

When you get to know a realtor, you can offer to do open houses for her where you sit in the house instead of her. It is not a fun way to spend an afternoon, but you might get some good leads out of it.

If you decide to go this route, make sure the house is in a well trafficked area and easy to get to. And make sure the agent does some advertising and lends you signs and balloons. You do not want to sit in a house, where no one shows up because it is hard to find or no one knew about the open house.

Another tip is to meet the neighbors of the home you are holding open. See if they know anyone wanting to move or buy. Chances are someone will know of a family wanting to move into the neighborhood.

Cheap Mortgage Lead Generation Tip #7: Realtor MLS

Want a source of thousands of people who will be getting a mortgage within the next couple months?

It’s sellers. And the Multiple Listing Service used by Realtors is full of them. Do a search of homes for sale, get the owners‘ name from the tax records and you have yourself a good prospect list.

Mail them something about you or an offer for free information. Call them if you can get their phone number and they are not on the Do Not Call list, or just drop by their house if you have the guts.

This is exactly what one of my coaching clients does. He calls Realtors who have listings and asks them if he can market his services to the home sellers. Many Realtors say yes. When they do, he contacts the sellers, and tells them that their realtor said it was OK to call on them.

He tells me the majority of home sellers he talks to are willing to talk to him and he gets several loans a month using this trick.

If you liked the above lead generation tips and would like more, check out my Jump Start Your Mortgage Career E-Class today. As I said these are just a few of the dozens of cheap lead generation techniques I share in one lesson of the course. The other lessons cover every aspect of mortgage marketing that you need to succeed in this business.

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Source by Ameen Kamadia

Data Analysis For Real-Estate

In real-estate media research provides an objective, unbiased evaluation of new opportunities in real-estate business and consumers psychographics levels. First the research problem is identified, and then a prescribed set of procedures of research is followed to investigate the problem.

The real-estate involves research to fulfill the objective in the systematic way of collecting information. News reporting on the other hand, tries to collect information and present them in an objective and fair manner.

The objective of both media research and news reporting are the same for Newbury park real estate. The difference lies in the processes involved. Media research for <a rel=“nofollow“ onclick=“javascript:ga(’send‘, ‚pageview‘, ‚/outgoing/article_exit_link/2187305‘);“ href=http://www.usarealestateguru.com/>Simi Valley real estate</a> uses more stringent and severe data collection and data analysis methods. So media research is often used as a tool of reporting. Major example of this includes news reporting based on surveys for real estate, opinion polls, pre-poll surveys, exit polls etc.

In the areas of identifying and developing a problem or topic for investigation may give their attention to several potential sources for data. This may includes a critical analysis of everyday situations and background material already available. This is done to achieve a clear perspective and make a concise presentation of results. One needs selects an appropriate method of analysis the opportunities of Chatsworth Real Estate. They have to be wary of potential sources of error that may creep into the findings. They need to consider, like good investigative reporter, every plausible alternatives and explanations. Only after making a through real estate evaluation of all data and hypothesis we make decisions.

The media researcher may be a detached observer, or a participant in the process under study. He may undertake field observation, focus groups, interviews or case studies. All these methods and tools help information. Even extremely detailed information can be obtained from a small set of respondents by following in the method of intensive interviewing the audience of real estates.
Due to the advances in computer technology, computers have come to play a useful role in mass media research. Computers have become a significant tool research. Computer has become a significant tool of research for real estate. In gathering and evaluating of data for real estate we need to prepare sophisticated graphic presentation.

There are many tactics are adopted to divert the attention of the reporters, even though picture and sound bites from cameras and microphones from the real story support them. Those who wish to express their particular point of view manipulate the news media to communicate their own ideas or ideologies. To balance the use and abuse of views, the media research for the real estate advantage in the coming years. By doing so, facts can be put into proper perspective in order to tell what it mean, to explain, to assure, and to persuade the target audience.

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Source by Emily Jones

What Does REO Mean When Buying Real Estate For Sale?

As a property investor, I am often asked what does REO mean when buying real estate for sale? An acronym for ‚real estate owned‘, REO refers to foreclosure property repossessed by mortgage lenders. When foreclosure real estate does not sell through public auction it returned to the lender, who in turn lists the property for sale through an assigned realtor.

A second question buyers ask is what does REO mean in terms of buying houses at discounted prices? Most bank owned homes are sold slightly below market value. Since properties are sold in „as-is“ condition, banks consider home repair costs and adjust prices accordingly.

Although REO homes are typically more expensive than houses sold through public auctions, overall they are actually cheaper. Most foreclosure properties require multiple repairs because foreclosed homeowners are financially incapable of properly maintaining the home.

Many properties sold through auctions have liens and judgments attached. In some cases, foreclosed homeowners continue residing in the home until evicted through the court system. All of these issues are resolved once the bank takes possession of the home. Buyers are able to purchase REO homes with a clean title and quickly take possession.

Real estate owned properties are sold through each bank’s loss mitigation division or designated realtor. Since banks have incurred foreclosure legal costs and fees associated with lien, judgment or tenant removal, there is little room for negotiating the asking price.

Bank owned homes can be a great option for first time home buyers, real estate investors, or individuals looking for an affordable vacation home. REO houses are perfect for use as rental houses or lease-to-own properties. Since bank owned foreclosures are priced below market value, investors can reap profits by rehabbing and flipping the house or offering seller carry back financing.

Buying bank REO properties can save investors and home buyers time and money. There is no need to spend time attempting to remove creditor and tax liens or commence with eviction action when tenants refuse to vacate foreclosure properties.

Time-consuming details are taken care of by the bank; allowing buyers to purchase the property at a discounted rate and quickly take possession of the property. Closing on a foreclosure home can take several months, while REO purchases can be expedited in a matter of weeks.

Many resources are available for locating real estate owned properties. Countrywide, Remax, Prudential and Bank of America publish bank owned foreclosure homes for sale directly on their company websites.

Many mortgage lender and realtor websites include additional resources to help borrowers further reduce the cost of buying houses through first time house buyer programs and government grants.

These are just a few options available for buying REO homes at reduced prices. The Internet offers an abundance of information to help home buyers and investors locate distressed properties. Local realtors often offer foreclosure seminars to help buyers understand the process of buying foreclosure homes through auction or bank loss mitigators.

Take time to conduct research, attend seminars or talk with real estate professionals to learn the ins and outs of buying REO real estate. Doing so can help you obtain exceptional real estate at significantly reduced prices.

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Source by Simon Volkov

Real Estate, Supply and Demand

Real estate is really a game of supply and demand. The trick is finding the demand and being in the position to supply. This is the kind of situation investors and builders run up against all the time. It is a matter of assessing the market and trying to find the perfect area at the perfect time. One those variables are known then action can be taken, investments can be made and profits can be collected. So the question remains, where is a good area for this kind of action? Arizona comes to mind. Over the past number of years Arizona has been one of the hottest real estate markets in the country and this trend shows few signs of slowing down. There are a number of reasons that Arizona can make this boast and it would seem that there are going to be a few more boasts made over the coming months.

People love to go to Arizona, it is one of the most traveled to destinations in the country and it’s not hard to see why. Fantastic weather, scenery, golf, recreation and many other attributes can be claimed by this state. Real estate has been in high demand in this state for many years. This is partially due to Arizona’s popularity as a retirement destination and it’s notoriety as a destination resort location. In fact tourism is one the strongest aspects of Arizona’s economy pouring millions of dollars per year into this state.

Arizona is a state that is ideal for any recreational pursuit. This is one of the main locations for MLB spring training as the home of the Cactus League. Arizona is also known as the home of some of the most amazing desert scenery in the world. However Arizona is much more diverse in land than one might think, the northern part of the state is home to the Colorado Plateau, a more forested and cooler area.

Arizona has always been known as a great place to visit. However, with the abundance of education, the excellent economy and a great and stable real estate industry. Hopefully this has explained why there is such a demand for quality homes and properties in Arizona. Supply and demand does not work unless there is interest from both sides and Arizona is a perfect example of a balanced area where supply meets demand.

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Source by Rick LeForce

What is a Real Estate Release Agreement?

You don’t have to be a real estate expert to have heard of release agreements. A release is one of the most common types of contracts in the world of law. They are used to allow a company to use someone’s image for commercial use. However, a real estate release agreement isn’t quite the same thing. In most cases, releases are used by prospective buyers to release the seller from the mortgage or liens they have on a property so that the property is debt free. The form is extremely short and is often only one page when presented. Let’s take a look at a typical contract requiring a seller to obtain release of mortgage on a property.

The first part of the contract clearly outlines the date that this agreement is being signed, the names of both parties involved in the transfer of the property as well as any spouses of the members involved in the agreement. The second part of the agreement outlines the terms and conditions that the property in question is under. It goes over how much debt the property has attached to it and whether the property has a mortgage debt or a lien debt associated with it. It also outlines the purchase price of the property and how that purchase price can now be used to pay off any and all debt associated with the property. This type of form is used mostly to ensure that the seller will eliminate all debt from a piece of property when the sale is complete as agreed upon in the original sale agreement. Some people consider this form to be a bit redundant, but you can never be too careful when it comes to legal wrangling and property.

The final part of the agreement only requires the signer to include their names, the amount of the total debt still present on the property and finally, the amount that is being paid off. Much of the contract will simply be pre-typed text, often a template, that outlines the seller’s responsibilities once the sale is finalized.

If the buyer and seller of the property agree beforehand, a real estate release agreement isn’t necessary. It could be part of the original sale agreement that the buyer is responsible for paying off any existing debt on the property and not the responsibility of the seller. Since every legal agreement is different and many of them have their own unique provisions, some real estate release agreements can vary considerably from the one outlined here.

In conclusion, the real estate release agreement is a safeguard instituted by the buyer to ensure that a piece of property that has debt associated with it is paid off in full with the money gained during the sale by the seller so that when the final transfer of the property is finalized, it is debt free. It is vital that this agreement be included if you are buying property that has debt attached to it.

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Source by Mark Warner

For Sale by Owner Property Sales – The Top 5 Warning Signs That You Have an Untrustworthy Buyer

A by owner property sale can be a harrowing experience. The sale by owner process is not an easy one especially if you haven’t done it before. In today’s market it is more stressful than ever to sell a home quick. The majority of FSBO home sellers are having some degree of difficulty in making their monthly mortgage payments. Even though you are very anxious to sell your home quickly, you need to be cautious. If you sign a sale contract with the wrong buyer you will be in a worse position than if you had done nothing. You will not want to trust everybody who expresses interest in your property for sale. In fact it is smarter to trust nobody until they prove they deserve to be trusted. It is also smart to hire a lawyer to look everything over for you and give you good counsel on offer and sale contracts. If you are very aware of your buyer’s moves you should be able to spot some danger signs before they become a problem.

The Top 5 Warning Signs That You Have an Untrustworthy Buyer Do not trust a buyer:

  1. Who wants to make buying your home contingent on the sale of their old house first
  2. Who wants to put up a very small deposit
  3. Who wants you to finance their purchase so they don’t have to apply for a loan
  4. Who has not received pre-approval for a mortgage loan
  5. Who includes many other contingencies in the sale contract which allows them to back out of the deal

Selling your home quickly at a good price is your #1 goal. Be sure to make your #2 goal to watch out for shady buyers so they don’t ruin the whole deal.

Immobilienmakler Heidelberg

Makler Heidelberg

Immobilienmakler Heidelberg

Makler Heidelberg


Immobilienmakler Heidelberg

Makler Heidelberg


Der Immoblienmakler für Heidelberg Mannheim und Karlsruhe
Wir verkaufen für Verkäufer zu 100% kostenfrei
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Source by Leo J. Vidal

Commercial Real Estate Expert Knowledge On Holding And Closing Costs

When investing in commercial real estate, investors have to consider the projected costs surrounding their investment. A savvy investor must have a working knowledge of what the closing and holding costs for the property will be prior to committing themselves to the investment. Working on the purchase price, and the market selling price is simply not enough to make an informed decision on whether a property will be a sound investment.

Holding Costs
When real estate investors purchase property, their main goal is to sell the property for a profit. But during this process, the investor must take into consideration the amount of money they will need to pay out before the investment is re-sold. Holding costs are also known as carrying costs. When calculating the holding costs, investors must include the purchase price, and deduct operating income to come to an estimated figure.

Holding costs must be carefully considered when factored into an investment. Without calculating this cost, an uninformed investor could be faced with a disastrous situation. All to often, new investors only factor the purchase price, and the resale market value into their calculations. The result can be disastrous to the estimated profit margin if the investor must produce a further sum for their holding costs.

An example of such a situation is buying a property for $200,000 with an estimated resale value of $280,000. At this stage, the property would seem to be a sound investment with a very generous profit margin. But if the holding costs of the particular property over a six month period were to come to $90,000, it could mean severe loss to the investor, rather than a generous profit.

Estimating Holding Costs
Investors must pay close attention to their estimated carrying costs before investing in a property. These include costs such as operating expenses, mortgage payments, capital improvements, as well as the selling costs of the property.

The best way to factor these costs before purchasing an investment property is to analyze the associated carrying costs over a six-month period by taking the sale price, and then deducting associated costs such as
· Purchase closing costs,
· Clean up and decoration of the property,
· Mortgage repayments,
· Taxes,
· Insurances
· Resale broker commissions,
· Resale closing costs

Take the purchase price, plus the carrying costs, and the total of the two should be deducted from the re-sale price of the property in order to get an estimation of the profit margin.

Knowing what to expect from holding costs should be one of a real-estate investor’s main priorities when looking for a profitable investment. While these costs are important to factor, the savvy investor will always be able to creatively come up with solutions to decrease costs, or find ways to make an extra income from the property to make it more profitable.

Closing Costs
Closing costs are an estimate of the projected cost once the property has been resold. These costs are often calculated by things such as the lenders experience with the real estate industry, and the area being invested in. The closing costs are only an estimation, which can mean that they will change over the term of the loan.

The lender has no control over how much the attorney or title company will charge for their expenses, but as a rule of thumb, investors should be able to rely on the final estimated expenses to be close to the estimations given in their good faith estimation from the lender.

The closing cost figures, as far as the lender is concerned, should be especially accurate, although in a situation where there are significant changes in the loan program, or the borrower’s qualifications, the closing costs could be inflated.

No Closing Costs
While closing costs are essential to factor into an investment, there are options available to remove some of the associated closing costs for investors. However, it is important to note that even with advertised no closing costs, there will always be costs, such as attorney fees, insurance, local municipality, and title company, that must be paid.

The no closing cost programs offered by lenders are an option that applies to things such as application, appraisal, credit reporting, processing, underwriting, origination, and discount points. These costs only factor into about a third of the total closing costs of a property. Even with a no closing cost option, investors may still be required to pay other closing costs, such as title insurance, attorney fees and county recording fees.

Immobilienmakler Heidelberg

Makler Heidelberg

Immobilienmakler Heidelberg

Makler Heidelberg


Immobilienmakler Heidelberg

Makler Heidelberg


Der Immoblienmakler für Heidelberg Mannheim und Karlsruhe
Wir verkaufen für Verkäufer zu 100% kostenfrei
Schnell, zuverlässig und zum Höchstpreis


Source by Tony Seruga, Yolanda Seruga And Yolanda Bishop