A Guide to Real Estate Real Estate
  • Buying

  • April7th

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    How to Afford Your Dream Home

    Posted in: Buying

    Is it your dream to one day own a holiday home in the sun; a beautiful house where you can escape, relax and be free of the worries that seem to go hand in hand with every day life? Well, you’re not alone!

    A recent survey by a well known mortgage lender in the UK revealed that up to one in three Britons not only dream about owning a home in the sun but fully intend to make that dream a reality some day. And in the US the number of Americans planning to one day buy that ideal second home haven is now up to three in ten people.

    Now let me ask you another question: If it is your dream to ‘one day’ own that beautiful home in the sun what exactly are you waiting for? Why wait for ‘one day’ when you can make your dream a reality today? Here are just five simple ways that could free you up to make your ideal property purchase today. Read More | Comments

  • March30th

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    Real estate auction action – Buying a home at auction

    Posted in: Buying

    Due in part to the popularity of the U. S. Department of Housing and Urban Development (HUD)’s home auction program, more potential homebuyers than ever are buying homes at auction. Homes for auction aren’t limited to just HUD, however. Many government entities auction homes for payment of back taxes, and some homeowners even auction their homes on eBay.com!

    Homebuyers considering buying a home at auction should take some steps in advance to help them with their bid price, and even whether to bid at all on a specific home. There will always be a degree of risk when buying a home this way, but with a little diligence, potential homebuyers could save a lot of money buying in this manner.

    Before the auction, you should have your financing arranged, and have enough cash on hand or in your bank account to cover a deposit on your purchase. You need to check the features, location, condition, and ownership history first. Afterwards, be sure to learn what the property is worth by looking at sales of comparable properties in the same area. Compare homes with the same number of rooms is possible, but be sure to allow for price differences due to pools, decks, carpeting, window treatments, etc.

    At the auction itself, resist the temptation to get into a personal bidding war, just “to beat out the other guy”. Have a set price limit and stick to it. Other houses will come along, and you don’t have to win the first auction that comes your way.

    You should know that the price of a home at auction is typically the loan balance (if foreclosed), plus any back taxes owed, plus legal fees and other expenses in foreclosing the property. This will typically be the opening bid amount, and the price will go up from there. Even so, it’s possible to get a great deal in an auctioned house, with a little research and planning first.

    Also, know that you probably won’t be able to get an inspection, and are buying the home “as is”. If you can’t do any needed repair work yourself, or can’t hire it done within your budget, you may not end up getting such a bargain in the end.

  • March30th

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    How to Find Houses for Sale

    Posted in: Buying

    When it comes to purchasing a home, the choices available can be a little overwhelming. With the onslaught of the internet, it seems there are thousands of ways to locate that perfect home, and a new buyer might be a confused about where to start. There are a few good ways to narrow the selection.

    First of all, if you know where you want to live, then go there. Whether it’s a new city or a new neighborhood, taking a drive through your future abode can open up plenty of possibilities. Realtors and independent home sellers still rely very much on the For Sale sign in the front lawn, and there’s no substitute for real curb appeal. This technique has the huge benefit of allowing you to see the properties in person and know immediately if they are worth pursuing. However, it’s rather unusual for prices to be listed on For Sale signs outside houses, so try to stick to areas that you know are in your price range. Make sure to bring a camera and a pad of paper, so you can take pictures and write down phone numbers and addresses for future reference. You might end up making an awful lot of phone calls, but it can be worth it.

    While you’re in your new potential city or neighborhood, pick up the local paper. The classified ads are still the time-honored way to get a house onto the market and you’ll find no shortage of listings. Prepare yourself to make some more phone calls and do some more driving. We didn’t say this would be a quick process!

    Then again, it can be. For those in a time crunch, there are many ways to find houses for sale that don’t involve legwork. Many websites offer specialized house searches, which charge a small fee and do the ad-scanning for you, sending you information on properties that meet your criteria. There are also several companies in your local yellow pages which offer this same service. For those who need to move quickly or don’t have the resources to hunt, these services can be lifesavers!

    Finally, whether you’re in a hurry or just browsing, talk to local real estate agents. They’ll be able to give you information on what properties they are personally representing, as well as a feel for how prices are running in various parts of town. Keep in mind that agents make money selling houses, not explaining markets, so they won’t be able to offer you specialized help unless you’re purchasing from them. But if nothing else, their information may be able to point you in the right direction.

    House hunting is an exciting process no matter how you do it, and there’s no right or wrong way to begin. When it’s time to go, weigh your priorities and choose your weapon, whether it’s a pad of paper and a pen or the World Wide Web. The right property is out there somewhere. The secret is to have fun finding it!

  • March30th

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    Consider Purchasing a House in need of Rennovation

    Posted in: Buying

    Most people in the real estate business didn’t start out buying and selling properties that cost hundreds of thousands of dollars, making a hefty profit for their pockets. True–some do, but not all. Many good, successful people whether they are in the real estate business or looking to purchase their first home for themselves, start out with fixer upper properties. The term fixer upper can range from an older house built in the 1900s to a duplex that was built twenty years ago that has plumbing problems, little or no landscaping, or a bad roof. While it is important to assess the number of repairs that are needed in any home, it is even more important to do so when purchasing a foreclosed home or a home from the city or any government organization. These types of homes come with lovely little price tags attached to them that can cause any person to turn their head to all of the potential problems involved in fixing the place up.

    In your real estate business endeavors, you may want to consider purchasing a property that needs a little work. Fixer uppers can be purchased at amazingly low selling prices, allowing you as the new owner to either make your improvements and repairs with the intention of selling the property for a profit or using the property for your own personal or business use.

    We have all seen the For Sale By Owner signs while driving down the street. Most of the times when people sell houses or properties that are in need of work, they do so because they either lack the time or funding to get the work done themselves. Properties that need fixing up can be cash buckets for the person with the right eye, proper skills, and/or the proper monetary reserves to rise to the occasion.

    While it can be a great idea for a lot of people, do not purchase a property that needs work without thinking the situation through completely, analyzing the pros and cons of the situation. It is important to determine whether or not the property is even a good value; ask yourself if you have the time and willingness to make the repairs yourself, or the money to hire someone to make the repairs and improvements for you. If the costs of the repairs outweigh the profit that could have been made were you to turn around and sell the property for a higher price after the improvements have been made, you are wasting your time and money. In this situation, one could potentially end up getting stuck with land, commercial property, or a home that is useless to them personally. Keep in mind that not every one out there is willing to purchase a home or property as you were when you purchased it. If, upon finalizing the deal you discover that this is so monumental of a task that you are not up to it, you cannot just give the property back, so it is important to analyze and think through the situation as thoroughly as possible.

  • March30th

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    Buying Foreclosed Properties

    Posted in: Buying

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    Buying Foreclosed Properties

    Buying foreclosed properties is a great way to save your pennies on your real estate endeavors. While most properties that have been foreclosed upon sell for five to ten percent below normal selling price, there are some out there who may be selling for as much as twenty to thirty percent below market value.

    While purchasing foreclosed homes is a great way to buy, sell, and make a profit, there is a process to the purchasing of these properties that must be followed by everyone. When a home is being foreclosed upon it means that the home owner was unable to make their mortgage payments on time and fell more behind than their bank or lender allowed. Usually the mortgage loan is taken against the house, there by granting the lender or bank the right to seize the property as fulfillment of their loan.

    As far as purchasing foreclosed properties go, there are some advantages to buying properties this way that buying properties the normal traditional way do not offer. Appraisal fees can range anywhere from $300 to $600. During an appraisal, a professional appraiser inspects the property, measuring the square footage, inspecting the yard, fencing, garage, and other appurtenant structures. They will also do an inspection of the property itself; things like pools, decks, number of bathrooms, number of bedrooms, and such are all taken into consideration when evaluating the value of a particular property or home. The appraisal process can be rather tiresome, as an appraisal is simply the appraiser’s professional opinion. If the lender, bank, or purchaser does not agree with the figure the appraiser comes up with the appraisal is disputed and the process begins again. When you buy a property that is being foreclosed upon, the appraisal process can usually be skipped because the lender already has some idea of what the property is worth. This saves both of you money, and can make the buying and selling process a lot easier and smoother on everyone’s behalf.

    Buying properties that are being foreclosed upon is a great way to locate a fixer upper that is worth the work. Usually foreclosed homes need repairs because the owner was, obviously, having some financial troubles that caused them to get so behind in the payments. This is an indicator that there may be problems with the roof, plumbing, or even the yard that need fixing. These are all things that can add to or take away from the market value of a home, and if you can purchase a home with these problems and you have the ability or monetary reserves to correct these problems, you have found yourself a nice little cash bucket.

    The Department of Housing and Urban Development, also known simply as HUD, also holds auctions periodically to unload homes that were funded through their federal mortgage program. Sometimes these houses can be bought at rock bottom prices and are not in as bad condition as one might think, although the auction environment can drive prices up in others’ determination to secure a particular property for their own needs, personal or business related.

  • March30th

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    Buying and Selling Real Estate As Is

    Posted in: Buying, Selling

    Buying or selling a home ‘as is’ on the real estate market today is fairly common. As Americans move more often and the practice of renovating run-down homes for profit grows more widespread, many sellers aren’t finding it necessary to repair the defects in their property before putting it on the market. They’re much more liable today to find a buyer who’s willing to purchase the home, defects and all.

    How does ‘as is’ selling work? The process is simple. The contract simply states that the seller is not responsible for making any repairs to the home before the buyer takes possession. The seller is still required to disclose any defects of which they are aware. However, if other defects appear after the sale is complete, the seller is not liable for those problems, provided they didn’t hide knowledge of the condition during the sale.

    With the ‘as is’ buying and selling process, sellers accept the fact that they’re getting less money for their home. Buyers are entitled to a lower price to make up for the cost of repairs. Usually sellers who put their homes on the market as is are not as interested in high market value as they are in a quick sale; or they simply do not have the resources to make the repairs before sale.

    In order to sell a home as is, however, a home inspection is still required. Both parties must be aware of the damages, so that the buyer knows what he is getting into and the seller knows approximately how much he is going to lose in market value.

    Purchasing a home with knowledge of its condition allows a buyer to examine his budget and decide if purchase price plus repair cost is worth it. Usually, it is- the buyer is essentially paying less because he’s willing to go through the hassle of repairs, and not necessarily because the repairs will cost a certain amount. Also, often the defects in a home are perfectly livable; for example, if a seller refuses to put a new coat of paint on the rooms, then the house qualifies for an as is sale. The industrious buyer who doesn’t mind painting a few rooms can get his purchase price lowered for the sake of a very easy repair.

    In a home being sold as is, both sides would do well to hire home inspectors, and check the house over thoroughly. Provided the seller doesn’t mind losing a little sticker price, and the buyer doesn’t mind a few costs down the road, it can be an excellent deal for both sides. One gets out with having to do any work and makes a quick sale; the other gets a bargain home that needs a little TLC.

  • March17th

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    10 Top Considerations For Those Buying Property Abroad

    Posted in: Buying

    Are you one of a growing number of people considering buying a second home in the sun, an idyllic home from home abroad or a lucrative investment property overseas? If so you’re not alone! Statistics show that globally we’re all on the move with a recent survey by YouGov revealing that 55% of adult Britons were “seriously considering settling in another country” and the British Centre for Future Studies predicting that by 2020 one tenth of the current British population will be living or working abroad!
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  • November15th

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    Three Things to Avoid When Buying a Home

    Posted in: Buying

    Whether you’re a first-time homeowner or moving on up the property ladder, home buying can be tricky. How do you draw the line between a money pit and a diamond in the rough? Here are three things to keep in mind. Depending on the circumstances, these might be reasons not to buy.

    Neighborhood. Unlike the rental world, where neighbors last a year, a house is a long-term commitment. Your neighbors when you move in may very well be your neighbors for some time to come, and that’s something to keep in mind when looking at a potential new home. Also consider proximity of the house to things like schools, stores, and major roads. If there’s a highway nearby, some questionable properties, an unfriendly feeling, or anything else that feels uncertain, it might be wise to give that house a pass. After all, you might be able to fix your house, but you can’t fix your neighborhood.

    Major repairs. Many inexperienced home buyers make the mistake of not checking out every aspect of the property thoroughly. Getting a great deal on a house with a roof that needs replacing is not that great of a deal. Check out the furnace, central air, and the plumbing and electrical systems. Major problems don’t necessarily mean you shouldn’t buy the property, but they should be included in the price negotiations. A good realtor or seller will factor in such considerations, and you may be able to buy the house for less if it’s understood that you’re responsible for replacing the roof. Just don’t get duped. Don’t take anyone’s word that the furnace is new- make sure of it.

    Water Damage. Check this one out- thoroughly. Is the house located in a high-flood area? Is something important (like the roof or basement) leaking? If water damage occurred once it’s not likely to stop unless the problem- aka the flow of water- is corrected. This could lead to expensive irrigation systems and internal repairs. I heard a horror story of a house that began with a water spot on a wall, and led to removing the floor and vacuuming out two feet of water. Water damage is often a sign of a bigger problem. Unless you can trace it to its source and identify how to stop it, it might be best to steer away from water-damaged property altogether. Why sign up for trouble?

    Keeping your eyes open going into a real estate negotiation is the most important thing. If something doesn’t feel right, trace it backwards until you figure out why, and then decide if it’s worth it to go ahead with the purchase. Sometimes you’ll find it’s easy to walk away from a great house in a bad neighborhood. Other times, you can get your purchase price substantially reduced if you can point out exactly what repairs are needed. The trick is to catch those needed fixes- because the seller may not point them out for you.

  • September17th

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    The Final Walk Through

    Posted in: Buying

    So you’ve bought a house. The paperwork is signed and in order, and all that remains is your final walk through. Wait! Your job isn’t over.

    The final walk through can be a crucial step in the home-buying process. While it’s true that home inspections and all other negotiations should be taken care of well before this time comes, the final walk through is by no means a free day. There are a few things that you as the buyer must be aware of during this final step in the process. Remember, the condition of your future home is on the line.

    The final walk through on a home should always occur after the sellers have moved out, but before you go to the final closing and receive the deed. This allows some time for any loose ends to be cleared up, and it also means that with the original owners’ possessions out of the home, you’ll be able to see things as they really are. Keep in mind that at this point in time, you have already signed the contract to purchase the home. Now is the time to verify that everything on the physical premises is as it was stated on the contract at the time you agreed to purchase. Was anything damaged as the owners moved out? Did they leave all of the appliances they agreed to leave, and are they in the same working order as they were when you signed? Feel free to actually walk around and inspect the house at this point. It is your moment to point out any discrepancies and avoid possible major headaches later.

    If you do find anything amiss, the final walk through gives you the chance to settle matters with the sellers and negotiate costs of repair or replacement on anything that has changed since the contract was signed. In most cases, you will be allowed to withhold the amount required for repairs from the amount you have agreed upon for payment. This is a lot like a security deposit in an apartment: The sellers are responsible for keeping the condition of the house as it was on the contract sign date, and any repairs are their financial responsibility if they wish to uphold the contract.

    If for any reason repairs needed are serious, or if the condition of anything in the house is seriously altered, it is possible to put off closing the sale until the required repairs are made. You as the buyer have the right to have the house in the exact condition it was in when you agreed to make the purchase.

    The final walk through is extremely important because once the deed changes hands and the process is complete, anything you did not take note of is no longer the seller’s responsibility. So be vigilant, bring an expert if you have to, and ask plenty of questions. After all, your future home is worth a second look.

  • March30th

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    Reversible Negatives When Buying a House

    Posted in: Buying

    So it’s time to buy a house. Whether you’re shopping on a budget or searching for your dream home no matter what the cost, there are a few things you should keep in mind when you go to view potential properties.

    The bottom line is this: Every house has its drawbacks. The trick of being a smart buyer is to know which of those drawbacks aren’t so negative, to use them to your advantage when it comes to negotiating price, and then fix them later at little cost to yourself. Here are three negatives you may encounter in the housing world- that you would be doing yourself a favor to look beyond.

    Paint colors. Honestly, if you’re buying something as permanent as a home, what difference does it make what color the walls are? This is not a rental property where you’re stuck with what you get; the house is yours, and the walls are yours to do with as you please. I have actually heard of buyers turning down a house because the burgundy walls made it too dark. A twenty-dollar gallon of paint, or the cost of a painter for a day if you’d rather not do the work, can recreate a room and rejuvenate a house. The trick is to see the house for its possibilities, not its current actualities. Turning down a house because you don’t like the color of the walls is almost as bad as a woman I heard once turn down a house because she didn’t like the doorknobs!

    Appliances. Sure, it’s a plus- a big one- if you get a house that comes complete with up-to-date appliances, already installed. But this major convenience comes with a price tag. The reason is simple: Nobody likes lugging in and installing those things. You’re paying to have them there, not necessarily because they’re good appliances. Buy some used ones, have them delivered or borrow a truck, and save on cost. It’s that simple.

    Landscaping. This one might be a surprise, since a yard is a fairly permanent thing. Potential buyers should certainly check out the property and what lies adjacent to it. But don’t be overly concerned if the previous owners had dogs that tore up the grass. Planting grass is an easy project that pays off over time and can increase the value of the property tremendously as years go by.

    If factors like those above are lacking from the house you’re considering, you should certainly use it as a bargaining tool in lowering your final purchase price. A good seller will recognize that you will incur some out-of-pocket expense to remedy these things, and they’ll adjust the price of the house accordingly. But turning down a property when the fixes are this simple is more than just a foolish move on the buyer’s part. It’s a lost chance to incur some valuable equity and possibly get a great home for a much lower price.

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