Whether you are selling your home or refinancing, you'll probably getting a call from an appraiser. Their job is to determine the fair market value of your home based on guidelines set out by the Federal National Mortgage Association. This is not the same as a competitive market analysis that many real estate brokers perform, sometimes referred to as "comps". The professional appraiser does an in depth analysis of you home's condition, additional features as compared to other similar homes, and location.
They start by looking at you neighborhood and find comparable homes that may have sold recently, characteristics of lifestyles, income level in the area, average age, and surrounding home values. So if you home has 4 bedrooms, 3 bathrooms, and a 2 car garage on a half acre of land, they will try to find a similar home in a nearby neighborhood. Sometimes they will extend their search and compare homes within the same school district when it is a known factor that affects the value of a home.
Once they find comparable properties, they will make some adjustments. Sometimes they will add value to your home based on the landscaping, external features such as a fenced back yard, or maybe there is view of the ocean. Numerous items may be added or subtracted from your home's value. Living space, numbers of rooms, sales in the last 120 days, usable land, and many other factors are considered. Rest assured it is not an entirely subjective process, but rather methodical and universal.
They don't consider your choice of wallpaper and curtains. They don't care if there are 200 toys laying in the family room or that you didn't make you bed. Of course it doesn't hurt to tidy up a bit, but it's not really a factor in determining the appraised value of your home. They are there to measure boundaries, going to each level in your home and looking in all the rooms, and taking more measurements. A few pictures are taken only for the appraiser's folder which will go in a file.
Normally, if you are buying a home or refinancing, you can let the lender know if you prefer a particular appraiser or company. You can ask any real estate broker if they can recommend someone to you as well. A qualified appraiser is licensed by the state and will cost from $150 to $500 or more depending on the size of the home.
If you are selling your home, the buyer normally pays for this. However, it wouldn't be a bad idea to get an inexpensive online appraisal. You can find one of the better instant online appraisal companies at Online Home Appraisals.
About Author:
Robert Rogers is a writer in the Washington DC area. Online Home Appraisals Visit http://homeappraisel.com for more articles on home appraisals.
Sunday, January 29, 2006
Monday, January 23, 2006
Tips on Finding a Trustworthy Realtor
When buying a new home, chances are very good that you are going to choose a realtor to help you with your home buying needs. With many realtors out there, finding one you can trust may seem to be a daunting task. Especially if you've never hired a realtor before, or if you've ever had one whom you couldn't trust, choosing a good realtor may be extremely difficult, if next to impossible, to accomplish. So how do you find one whom you can trust, and one who will simplify your home buying experience? Here are a few tips to help you find the right realtor.
Conduct Interviews
It's not enough to open the yellow pages and scan the listings of realtors there. Ideally, going to the realtor's office is the best option, but you may not have the time to do this. Chances are there will be too many realtors for you to go visit, so you may choose to conduct an interview on the phone. Be prepared with a list of questions to ask, and expect frank and honest answers. It won't take long for you to find out during the conversation whether the realtor is honest, or if they are simply a salesperson who evades your questions by giving you pat answers, or fluff.
Ask for References
A good realtor will be happy to give you the names of satisfied customers, in order to back up how trustworthy they will be for you. Sometimes, many people will find realtors on word of mouth alone. Happy customers will be delighted to talk to you about your potential realtor, and many times, this will arm you with the best information about the realtor you are considering.
Talk to the Broker
In some cases, talking opening with the broker about your realtor's performance may give you clues as to how trustworthy your realtor might be. This may not always give you the best information, as the broker certainly wants your business in the same way the realtor does, but a broker who is willing to talk with you as a potential client may help you determine whether the company the realtor works for will be behind you all the way.
Look for Communication Skills
There is nothing more frustrating than a realtor who does not listen to your needs. If you tell the realtor that your maximum price you would pay for a home is $200,000, and the realtor continually shows you homes outside of your price range, chances are very good that your realtor isn't concerned about your needs or what you can actually afford, but is more interested in how much commission they may earn off of your business with them. A realtor should remember how many children you have, and how many bedrooms you need, for example; and if you need an office, show you homes with ideal office space; if you have a dog, then the realtor should remember to find homes for you with a fenced in back yard, for instance. You should never have to continually remind your realtor what your needs are; if you are constantly reiterating your needs, then it could be indicative of your realtor either having too many clients, or not really interested in what your needs really are.
Express Your Needs
A realtor isn't a mind reader, and it really is up to you to make sure your realtor knows exactly what you are looking for. If you are not sure what you are looking for, then it is in your best interest to find a realtor truly interested in narrowing down what you want. Ask questions. If you don't know whether a school district in a particular area is a good one, for example, and you don't have children, then it is the realtor's job to help you understand that even though you might not be concerned about schools right now, there is a possibility in the future that it will be an issue. And while you cannot expect your realtor to read your mind, a good, trustworthy realtor can still anticipate your needs.
Above and Beyond the Call of Duty
Some realtors only perform the minimum tasks in order to help you find a home. A good, trustworthy realtor will go above and beyond the minimal duties. Do you need help finding a loan officer? Will your realtor locate one for you? Will your realtor be present at closing time in case you have any last minute questions? Will your realtor hand-deliver the title to the court on the same day you close? Will your realtor investigate any issues you may have with the home you want to purchase, like will real-estate taxes be included in your price, or will the appliances be included in the home purchase, or is the seller going to provide a home warranty? Some things may not occur to you now as a home buyer, but it should be in your realtor's best interest to make sure they investigate any possible issues that may come up during the course of the negotiations.
The key to finding a trustworthy realtor is to ask questions, no matter how silly they might be to you. They should be familiar with school districts, utility company policies, which cable company is available to you, and other things that are not necessarily part of your home purchase, but it is these little things that make a realtor extraordinary, and one that you can trust to help you find the perfect home.
About the Author
About the Author: G Beaty is a homebuilder and real estate broker for over 25 years. For free information on new home construction visit a Palm Coast Real Estate at: http://www.favoriteproperties.com
Conduct Interviews
It's not enough to open the yellow pages and scan the listings of realtors there. Ideally, going to the realtor's office is the best option, but you may not have the time to do this. Chances are there will be too many realtors for you to go visit, so you may choose to conduct an interview on the phone. Be prepared with a list of questions to ask, and expect frank and honest answers. It won't take long for you to find out during the conversation whether the realtor is honest, or if they are simply a salesperson who evades your questions by giving you pat answers, or fluff.
Ask for References
A good realtor will be happy to give you the names of satisfied customers, in order to back up how trustworthy they will be for you. Sometimes, many people will find realtors on word of mouth alone. Happy customers will be delighted to talk to you about your potential realtor, and many times, this will arm you with the best information about the realtor you are considering.
Talk to the Broker
In some cases, talking opening with the broker about your realtor's performance may give you clues as to how trustworthy your realtor might be. This may not always give you the best information, as the broker certainly wants your business in the same way the realtor does, but a broker who is willing to talk with you as a potential client may help you determine whether the company the realtor works for will be behind you all the way.
Look for Communication Skills
There is nothing more frustrating than a realtor who does not listen to your needs. If you tell the realtor that your maximum price you would pay for a home is $200,000, and the realtor continually shows you homes outside of your price range, chances are very good that your realtor isn't concerned about your needs or what you can actually afford, but is more interested in how much commission they may earn off of your business with them. A realtor should remember how many children you have, and how many bedrooms you need, for example; and if you need an office, show you homes with ideal office space; if you have a dog, then the realtor should remember to find homes for you with a fenced in back yard, for instance. You should never have to continually remind your realtor what your needs are; if you are constantly reiterating your needs, then it could be indicative of your realtor either having too many clients, or not really interested in what your needs really are.
Express Your Needs
A realtor isn't a mind reader, and it really is up to you to make sure your realtor knows exactly what you are looking for. If you are not sure what you are looking for, then it is in your best interest to find a realtor truly interested in narrowing down what you want. Ask questions. If you don't know whether a school district in a particular area is a good one, for example, and you don't have children, then it is the realtor's job to help you understand that even though you might not be concerned about schools right now, there is a possibility in the future that it will be an issue. And while you cannot expect your realtor to read your mind, a good, trustworthy realtor can still anticipate your needs.
Above and Beyond the Call of Duty
Some realtors only perform the minimum tasks in order to help you find a home. A good, trustworthy realtor will go above and beyond the minimal duties. Do you need help finding a loan officer? Will your realtor locate one for you? Will your realtor be present at closing time in case you have any last minute questions? Will your realtor hand-deliver the title to the court on the same day you close? Will your realtor investigate any issues you may have with the home you want to purchase, like will real-estate taxes be included in your price, or will the appliances be included in the home purchase, or is the seller going to provide a home warranty? Some things may not occur to you now as a home buyer, but it should be in your realtor's best interest to make sure they investigate any possible issues that may come up during the course of the negotiations.
The key to finding a trustworthy realtor is to ask questions, no matter how silly they might be to you. They should be familiar with school districts, utility company policies, which cable company is available to you, and other things that are not necessarily part of your home purchase, but it is these little things that make a realtor extraordinary, and one that you can trust to help you find the perfect home.
About the Author
About the Author: G Beaty is a homebuilder and real estate broker for over 25 years. For free information on new home construction visit a Palm Coast Real Estate at: http://www.favoriteproperties.com
3 Tips to Staging the Outside of Your Home Like a Pro
Are you considering putting your house up for sale, but not sure where to start? Afraid it will take too long to sell, or that you won't get the price you want? Think about "staging" your home, or in other words, setting the scene for immediate buyer interest in your property.
To be really effective, you need to look at both the outside and the inside of your home. Here are 3 tips to get you started with the outside of your home:
1. Go stand on the street to see what clients see when driving up to the house. Be aware that any negative impressions they get outside the house (landscaping not maintained or non-existent, peeling paint, etc.) is just going to make them think that the house itself has not been well taken care of. So even if you have spent the time and money to fix up the interior, it would all be wasted if the clients get a bad first impression as they drive up to the house.
2. Next, step outside your front door and close the door; then stand on the stoop and look around for 5 minutes. While the realtor fumbles for keys and tries to figure out how to open the door, the clients are standing behind and looking around. So what are they seeing? Dead plants, old Halloween decorations in the middle of January, cobwebs? Again, not a good first impression!
It's definitely worth it to take some time and clean it up. Want to go a step further? Try a new coat of paint or some new furniture or accessories.
3. Don't forget the backyard. While that might not be part of the potential buyers' first impression experience, you still should make sure it's in the best condition possible. Pull up weeds, water plants, do some sweeping (if that's applicable in your case) and maybe even purchase new furniture or accessories (plant pots, bird houses, etc.)
And the biggest tip of all? Imagine yourself as a potential buyer looking at your property for the very first time. What impressions are you getting? Would YOU buy your house? What would you like to see changed before you put an offer on your house?
And don't worry about spending several thousand dollars to get your house ready to sell - you'll get it all back when your house sells. Proper staging helps you sell your house in a shorter time and at the price you want.
About the Author
~~~ Kathleen Yamauchi is a long-time realtor located in Prescott, Arizona. For more free tips and resources on buying and selling your home and other real estate advice, visit her web site at http://www.kathleeny.com.
To be really effective, you need to look at both the outside and the inside of your home. Here are 3 tips to get you started with the outside of your home:
1. Go stand on the street to see what clients see when driving up to the house. Be aware that any negative impressions they get outside the house (landscaping not maintained or non-existent, peeling paint, etc.) is just going to make them think that the house itself has not been well taken care of. So even if you have spent the time and money to fix up the interior, it would all be wasted if the clients get a bad first impression as they drive up to the house.
2. Next, step outside your front door and close the door; then stand on the stoop and look around for 5 minutes. While the realtor fumbles for keys and tries to figure out how to open the door, the clients are standing behind and looking around. So what are they seeing? Dead plants, old Halloween decorations in the middle of January, cobwebs? Again, not a good first impression!
It's definitely worth it to take some time and clean it up. Want to go a step further? Try a new coat of paint or some new furniture or accessories.
3. Don't forget the backyard. While that might not be part of the potential buyers' first impression experience, you still should make sure it's in the best condition possible. Pull up weeds, water plants, do some sweeping (if that's applicable in your case) and maybe even purchase new furniture or accessories (plant pots, bird houses, etc.)
And the biggest tip of all? Imagine yourself as a potential buyer looking at your property for the very first time. What impressions are you getting? Would YOU buy your house? What would you like to see changed before you put an offer on your house?
And don't worry about spending several thousand dollars to get your house ready to sell - you'll get it all back when your house sells. Proper staging helps you sell your house in a shorter time and at the price you want.
About the Author
~~~ Kathleen Yamauchi is a long-time realtor located in Prescott, Arizona. For more free tips and resources on buying and selling your home and other real estate advice, visit her web site at http://www.kathleeny.com.
3 Tips to Staging the Inside of Your Home Like a Pro
Are you considering putting your house up for sale, but not sure where to start? Afraid it will take too long to sell, or that you won't get the price you want? Think about "staging" your home, or in other words, setting the scene for immediate buyer interest in your property.
To be really effective, you need to look at both the outside and the inside of your home. Here are 3 tips to get you started with the inside of your home:
1. De-clutter. This is one of the most important things you can do. It might be easier to think of de-cluttering like this - you're moving anyway, so why not start packing now?
Pack up everything you don't need and store the boxes out of sight in the garage (or consider temporarily renting a small storage locker).
2. Organize your closets - put similar colors together, pants together, skirts together, shirts together etc. Why? Because it will make the closets look bigger. (Really.) An organized closet appears bigger, and you want your closets to look as spacious as possible.
3. Make your home look like a model. You want to de-personalize as much as possible so potential buyers can imagine themselves and their own belongings occupying the space in your house. That means minimizing - putting away everything you don't need or use. Clear off kitchen counters as much as possible - stash all those appliances you don't use, and put miscellaneous small clutter in a few attractive baskets or boxes.
And the biggest tip of all? Imagine yourself as a potential buyer looking at your property for the very first time. What impressions are you getting? Would YOU buy your house? What would you like to see changed before you put an offer on your house?
And don't worry about spending several thousand dollars to get your house ready to sell - you'll get it all back when your house sells. Proper staging helps you sell your house in a shorter time and at the price you want.
About the Author
~~~ Kathleen Yamauchi is a long-time realtor located in Prescott, Arizona. For more free tips and resources on buying and selling your home and other real estate advice, visit her web site at http://www.kathleeny.com.
To be really effective, you need to look at both the outside and the inside of your home. Here are 3 tips to get you started with the inside of your home:
1. De-clutter. This is one of the most important things you can do. It might be easier to think of de-cluttering like this - you're moving anyway, so why not start packing now?
Pack up everything you don't need and store the boxes out of sight in the garage (or consider temporarily renting a small storage locker).
2. Organize your closets - put similar colors together, pants together, skirts together, shirts together etc. Why? Because it will make the closets look bigger. (Really.) An organized closet appears bigger, and you want your closets to look as spacious as possible.
3. Make your home look like a model. You want to de-personalize as much as possible so potential buyers can imagine themselves and their own belongings occupying the space in your house. That means minimizing - putting away everything you don't need or use. Clear off kitchen counters as much as possible - stash all those appliances you don't use, and put miscellaneous small clutter in a few attractive baskets or boxes.
And the biggest tip of all? Imagine yourself as a potential buyer looking at your property for the very first time. What impressions are you getting? Would YOU buy your house? What would you like to see changed before you put an offer on your house?
And don't worry about spending several thousand dollars to get your house ready to sell - you'll get it all back when your house sells. Proper staging helps you sell your house in a shorter time and at the price you want.
About the Author
~~~ Kathleen Yamauchi is a long-time realtor located in Prescott, Arizona. For more free tips and resources on buying and selling your home and other real estate advice, visit her web site at http://www.kathleeny.com.
Thursday, December 08, 2005
Understanding Agency Relationships Between Real Estate Clients and Customers
You'd probably wonder what agency relationships might have to do with you, regarding buying or selling real estate. Most people are unaware of the importance of these types of relationships, unless they do a lot of buying and selling of real estate and have become educated in the importance of knowing what side your agent is on. Yours or theirs?
In a traditional real estate setting here in Michigan (especially up here in the more northern areas), most agents are representing the seller and NOT the buyer. That's right! When you walk into a traditional real estate office, in most cases that agent is working for the seller, even if the house is listed by another real estate company.
There have been many changes over the course of the last several years which have often made agency relationships even more confusing, but in most respects it has been an improvement, causing a change for the better. Of course, in my opinion, there is still room for improvement and clarification on this subject. Even many real estate agents are confused about this issue. I see it time and time again when talking with other agents in classes that I've attended. It's amazing how often this subject comes up in real estate classes.
Let me take a moment to explain of differences in agency relationships and how they may affect you in a real estate transaction.
In a traditional setting, an agent represents the seller or is a sub agent for the seller. In this setting, when a home is listed by a real estate company, that company automatically represents that seller, because they have a signed exclusive right to sell contract with that party. That company and it's agents have the fiduciary responsibility to represent the best interests of that seller. However, a sub agent to a seller is an agent who is representing a seller that has their real estate listed by another real estate company. These agents have the same fiduciary responsibility to a seller, that the listing company does.
When a buyer is working with a sellers agent, it is important to keep personal information that they'd like to keep confidential to themselves. For instance, maybe a buyer wouldn't want to share the total amount they are approved for at the bank, or what their top line price is for a home they are interested in purchasing. If they disclose this information to a "Sellers Agent" that agent has the fiduciary responsibility to share that type of information with that seller. A sellers agent is limited to what services they can provide to a buyer.
So, how does a buyer protect themselves? Hire a Buyers Agent of course!
This is still a fairly new practice in the Northern Mid-Michigan areas and to some "Old School" real estate companies, not fully understood because of lack of education or the need to stick with "the old way of doing things".
A buyers agent has the fiduciary responsibility to represent the buyer in a real estate transaction. A buyer will then enter into a contract with that Buyers Agent. To make is better understood, it almost like listing a person, instead of a house. The buyer agrees that they will work with that buyers agent only, as outlined in their contract agreement. This agreement can last from a few days to several months or years, depending on what the buyer and agent agree on. The agent and client will also agree on the geographic areas that this agreement covers. For instance, an agent in Gladwin many not want to represent the buyer in a transaction in Detroit. So it is wise to outline these areas in the contract. (For example: the buyer and agent agree that the contract only pertains to Gladwin and Clare Counties). That way, a buyer could do other real estate transactions through other agencies in parts of the state that are not mentioned in the contract. This MUST be clear in the contract unless a buyer wants their agent to represent them for the entire state of Michigan.
The advantages of using a buyers agent are great.
Services that are provided to a Buyer-Client are as follows:
Pays full attention to the Buyer's Needs.
Tell the buyer all that is learned about the seller.
Focuses on expanding the range of choices to satisfy the buyer's needs.
Find the best property for the client.
Promote the buyer's search.
First opportunity to view new listings.
All properties are available and viewable, and the sales price is negotiable.
Give advice with FACTS. Educate the buyer.
Compare competing properties.
Negotiate on behalf of the buyer.
Strengthen the buyer-client's negotiating position.
Share all known information about the seller.
Provide price counseling for the buyer-client.
Negotiate approved purchase agreement to safeguard buyer-clients.
Suggest financing alternatives that may be to the buyer's best interest.
Continue services to the buyer-client during negotiations.
Attempt to solve problems to the buyer-client's satisfaction.
Confused yet? There's more!
Now, just when you thought you were understanding things a little better, we throw Designated Agency into the mix! This is also fairly new for the entire state of Michigan. A few offices in this area currently practice this type of agency, but most stick with the more traditional Sellers and Buyers agency relationships.
A Designated Agent is the party selected to represent a principle/client in a designated agency office. Designated agency has been legislatively created in many states, allowing the management of a brokerage to establish a office policy, whereby the managing broker appoints or designates a licencee associated with that brokerage to act as an exclusive agent of a principle/client, buyer or seller. No other licencee in the brokerage has an agency relationship to represent that principle/client.
Ok... so what the heck does that mean? Basically, an office will choose to be a designated agency or traditional agency office. They can't do both, (meaning that they can't use traditional agency mixed with designated within a brokerage). When a agent is assigned to a buyer or a seller client, that party's information remains confidential between that agent, the broker and that client only. Other agents within that brokerage will not have access to the clients information, nor will they be representing that client in any way.
Another way to clarify that is, in a traditional office, the client is represented by the entire brokerage, weather they are a buyer or a seller. In a designated office, the client is only represented by the assigned agent and the broker.
I know! This even leaves some real estate agent's heads spinning! It can be confusing. The best way to find out how you will be represented, is to ask the agent you are going to be working with and have them define their office policies regarding agency relationships.
Written by - Ivie Baker (Kehoe Realty Inc.)
In a traditional real estate setting here in Michigan (especially up here in the more northern areas), most agents are representing the seller and NOT the buyer. That's right! When you walk into a traditional real estate office, in most cases that agent is working for the seller, even if the house is listed by another real estate company.
There have been many changes over the course of the last several years which have often made agency relationships even more confusing, but in most respects it has been an improvement, causing a change for the better. Of course, in my opinion, there is still room for improvement and clarification on this subject. Even many real estate agents are confused about this issue. I see it time and time again when talking with other agents in classes that I've attended. It's amazing how often this subject comes up in real estate classes.
Let me take a moment to explain of differences in agency relationships and how they may affect you in a real estate transaction.
In a traditional setting, an agent represents the seller or is a sub agent for the seller. In this setting, when a home is listed by a real estate company, that company automatically represents that seller, because they have a signed exclusive right to sell contract with that party. That company and it's agents have the fiduciary responsibility to represent the best interests of that seller. However, a sub agent to a seller is an agent who is representing a seller that has their real estate listed by another real estate company. These agents have the same fiduciary responsibility to a seller, that the listing company does.
When a buyer is working with a sellers agent, it is important to keep personal information that they'd like to keep confidential to themselves. For instance, maybe a buyer wouldn't want to share the total amount they are approved for at the bank, or what their top line price is for a home they are interested in purchasing. If they disclose this information to a "Sellers Agent" that agent has the fiduciary responsibility to share that type of information with that seller. A sellers agent is limited to what services they can provide to a buyer.
So, how does a buyer protect themselves? Hire a Buyers Agent of course!
This is still a fairly new practice in the Northern Mid-Michigan areas and to some "Old School" real estate companies, not fully understood because of lack of education or the need to stick with "the old way of doing things".
A buyers agent has the fiduciary responsibility to represent the buyer in a real estate transaction. A buyer will then enter into a contract with that Buyers Agent. To make is better understood, it almost like listing a person, instead of a house. The buyer agrees that they will work with that buyers agent only, as outlined in their contract agreement. This agreement can last from a few days to several months or years, depending on what the buyer and agent agree on. The agent and client will also agree on the geographic areas that this agreement covers. For instance, an agent in Gladwin many not want to represent the buyer in a transaction in Detroit. So it is wise to outline these areas in the contract. (For example: the buyer and agent agree that the contract only pertains to Gladwin and Clare Counties). That way, a buyer could do other real estate transactions through other agencies in parts of the state that are not mentioned in the contract. This MUST be clear in the contract unless a buyer wants their agent to represent them for the entire state of Michigan.
The advantages of using a buyers agent are great.
Services that are provided to a Buyer-Client are as follows:
Pays full attention to the Buyer's Needs.
Tell the buyer all that is learned about the seller.
Focuses on expanding the range of choices to satisfy the buyer's needs.
Find the best property for the client.
Promote the buyer's search.
First opportunity to view new listings.
All properties are available and viewable, and the sales price is negotiable.
Give advice with FACTS. Educate the buyer.
Compare competing properties.
Negotiate on behalf of the buyer.
Strengthen the buyer-client's negotiating position.
Share all known information about the seller.
Provide price counseling for the buyer-client.
Negotiate approved purchase agreement to safeguard buyer-clients.
Suggest financing alternatives that may be to the buyer's best interest.
Continue services to the buyer-client during negotiations.
Attempt to solve problems to the buyer-client's satisfaction.
Confused yet? There's more!
Now, just when you thought you were understanding things a little better, we throw Designated Agency into the mix! This is also fairly new for the entire state of Michigan. A few offices in this area currently practice this type of agency, but most stick with the more traditional Sellers and Buyers agency relationships.
A Designated Agent is the party selected to represent a principle/client in a designated agency office. Designated agency has been legislatively created in many states, allowing the management of a brokerage to establish a office policy, whereby the managing broker appoints or designates a licencee associated with that brokerage to act as an exclusive agent of a principle/client, buyer or seller. No other licencee in the brokerage has an agency relationship to represent that principle/client.
Ok... so what the heck does that mean? Basically, an office will choose to be a designated agency or traditional agency office. They can't do both, (meaning that they can't use traditional agency mixed with designated within a brokerage). When a agent is assigned to a buyer or a seller client, that party's information remains confidential between that agent, the broker and that client only. Other agents within that brokerage will not have access to the clients information, nor will they be representing that client in any way.
Another way to clarify that is, in a traditional office, the client is represented by the entire brokerage, weather they are a buyer or a seller. In a designated office, the client is only represented by the assigned agent and the broker.
I know! This even leaves some real estate agent's heads spinning! It can be confusing. The best way to find out how you will be represented, is to ask the agent you are going to be working with and have them define their office policies regarding agency relationships.
Written by - Ivie Baker (Kehoe Realty Inc.)
Wednesday, October 26, 2005
Buyers - Why should you use a buyers agent?
What is an Accredited Buyers Representative?
The Accredited Buyer Representative (ABR®) designation is the benchmark of excellence in buyer representation.
What is the difference between a Buyers Agent verses an Accredited Buyers Representative?
Any licenced real estate agent can represent a buyer, with the permission of his/her office Broker. However, if they have not taken the special classes on Buyers Agency, they may no know how to represent the buyer in the best way possible. An Accredited Buyers Rep has gone through special training to learn how to better represent the needs of a buyer to benefit the buyers best interests. The buyer's representative works for, and owes fiduciary responsibilities to, the buyer and has buyer's best interests in mind throughout the entire real estate process.
To find out more about Accredited Buyers Agency, visit http://www.GladwinRealEstateAgent.com/abr.html
Why should you use an Accredited Buyers Representative?
Unless you have a contract with the real estate agent to represent your best interests, they are automatically
working as a sub-agent for the seller. That means that the agent is negotiating for the benefit of the seller and, not YOU, the Buyer. Any confidential information that you share with that agent, may be passed onto the buyer. In turn, this my hurt your chances in getting the best deal on a purchase.
If you hire a Buyers Agent (preferably an Accredited Buyers Rep), she/he owes a fiduciary responsibilty to YOU, the Buyer. Your Buyers Agent will be negotiating for your benefit and not the seller's. Confidenital information cannot be passed onto the seller by the Buyers Agent.
The Accredited Buyer Representative (ABR®) designation is the benchmark of excellence in buyer representation.
What is the difference between a Buyers Agent verses an Accredited Buyers Representative?
Any licenced real estate agent can represent a buyer, with the permission of his/her office Broker. However, if they have not taken the special classes on Buyers Agency, they may no know how to represent the buyer in the best way possible. An Accredited Buyers Rep has gone through special training to learn how to better represent the needs of a buyer to benefit the buyers best interests. The buyer's representative works for, and owes fiduciary responsibilities to, the buyer and has buyer's best interests in mind throughout the entire real estate process.
To find out more about Accredited Buyers Agency, visit http://www.GladwinRealEstateAgent.com/abr.html
Why should you use an Accredited Buyers Representative?
Unless you have a contract with the real estate agent to represent your best interests, they are automatically
working as a sub-agent for the seller. That means that the agent is negotiating for the benefit of the seller and, not YOU, the Buyer. Any confidential information that you share with that agent, may be passed onto the buyer. In turn, this my hurt your chances in getting the best deal on a purchase.
If you hire a Buyers Agent (preferably an Accredited Buyers Rep), she/he owes a fiduciary responsibilty to YOU, the Buyer. Your Buyers Agent will be negotiating for your benefit and not the seller's. Confidenital information cannot be passed onto the seller by the Buyers Agent.
Monday, October 10, 2005
Real Estate Rentals: A Passive Investment Technique
Real estate can be a great way to make a turn-key investment in property, but you need to go in with your eyes open. Otherwise, you could end up losing your nest egg.
To invest in real estate, you need to have a rainy day fund. Things happen - you're the landlord now, and you'll have to pay if something goes wrong. If you need to fix the walls, the plumbing, or pay for flea control, you'll want to have some money set aside. If you're handy, you can cut these costs down, but you can't eliminate them entirely.
You also need to make sure you're not paying too much. Don't buy in a super-expensive area - go for something in an "up and coming" place where you can get a good deal and watch property values rise in the future. If you get locked into a real estate bubble, you may not make your investment back. You need a place where your rental income will cover the mortgage with a cushion for emergencies.
Also, make sure to trust the company that is handling the property for you. Property management can be a great deal - it saves you from all of the hassle. But don't just go with any random, fly by night company. Call reputable realtors and ask their opinion about companies in your area. They can probably give you a good referral, and it'll be worth your time if you can find someone who will manage it well - after all, you're dependant on them to make sure your property is filled with tenants.
About the Author
Teve Torbes is an expert owner of a flea control site, who knows a whole lot about flea bites. He has also created a valuable inflatable air mattress site.
To invest in real estate, you need to have a rainy day fund. Things happen - you're the landlord now, and you'll have to pay if something goes wrong. If you need to fix the walls, the plumbing, or pay for flea control, you'll want to have some money set aside. If you're handy, you can cut these costs down, but you can't eliminate them entirely.
You also need to make sure you're not paying too much. Don't buy in a super-expensive area - go for something in an "up and coming" place where you can get a good deal and watch property values rise in the future. If you get locked into a real estate bubble, you may not make your investment back. You need a place where your rental income will cover the mortgage with a cushion for emergencies.
Also, make sure to trust the company that is handling the property for you. Property management can be a great deal - it saves you from all of the hassle. But don't just go with any random, fly by night company. Call reputable realtors and ask their opinion about companies in your area. They can probably give you a good referral, and it'll be worth your time if you can find someone who will manage it well - after all, you're dependant on them to make sure your property is filled with tenants.
About the Author
Teve Torbes is an expert owner of a flea control site, who knows a whole lot about flea bites. He has also created a valuable inflatable air mattress site.
Sunday, October 02, 2005
Sugar Springs Web Site
A new slide show was just added to http://SugarSprings.GladwinRealEstateAgent.com
Find out what Sugar Springs has to offer you!
A private community in the heart of Michigan. This planned community covers approximately 4000prime acres in the northern part of Gladwin County. This beautiful and active community boasts some of the nicest homes and lakes in the area. Lake Lancer and Lake Lancelot cover approximately 1000 acres and have 15 private beach clubs for association members only.Sugar Springs is an active community with a host of activities and recreational events occuring thoughout the year. You'll find everything from golf events, Ice Cream Social, huge 4th of July Fire Works Display, Arts & Crafts Show, Pig Roast and many other activities. You'll never be bored in Sugar Springs unless you want to be!
Just some of the ammenities: * 18-Hole Championship Golf Course * Fully Staffed Pro-Shop * Club House & Lounge * Two Lakes (Lake Lancer & Lake Lancelot) * Fifteen Beach Clubs * Activity Building * Olympic Size Indoor Swimming Pool * Tennis and Basketball Courts * Cross Country Skiing Trails * Sledding Hills * Campground & Chalet * Grass Air Strip
Thursday, September 01, 2005
Waterfront Sales - Gladwin County - Jan 1 to Sept 1, 2005
Waterfront sales seem to be the big thing this year. Out of the 266 homes sold in Gladwin County since January 1, 2005 to Sept 1, 2005, 85 of these homes were waterfront. 61 of these homes were located on all sports lakes (according to the MLS stats). 13 of these homes were listed under Riverfront, (with some of these homes on riverfront, boatable to lakes).
Out of the more popular lakes in Gladwin County, here are the numbers for these lakes:
Secord Lake: 17 Sales ($100,000 to $291,000)
Wixom Lake: 27 Sales ($80,000 to $395,000)
Smallwood: 7 Sales ($57,000 to $168,500)
Wiggins Lake: 8 Sales ($72,000 to $235,000)
Lake Lancer: 4 Sales ($275,000 to $430,000)
Lake Lancelot: 3 Sales ($225,000 to $360,000)
Indian Lake: 1 Sale ($137,500)
Ross Lake: 1 Sales ($60,000)
Elk Lake: 0 Sales
Pratt Lake: 0 Sales
Currently, as of September 1, 2005 there are 225 waterfront homes for sale. 175 of these homes are on all sports lakes with prices ranges from $69,900 to $639,000.
Fall is just around the corner. It's a buyer's market right now and a great time to look for a waterfront home or cottage to buy, before winter sets in.
Written by: Ivie K. Baker
Friday, June 03, 2005
Clare & Gladwin County Acreage Sales
Clare and Gladwin county acreage sales are off to a great start! Since January 1, 2005 there have been a total of 40 sales of 5 plus acre parcels. Fifteen sales were parcels of 5 to 9.6 acres, eight sales were 10 acre parcels, three were 13 to 18 acres, five sales were 24 to 40 acres, seven sales were 41 to 80 acres and one sale was an 130 acre parcel.
Sales are looking up for vacant land through 2005. The heaviest sales are expected towards mid or late summer, all the way into early November.
Sales are looking up for vacant land through 2005. The heaviest sales are expected towards mid or late summer, all the way into early November.
Sunday, May 15, 2005
Real estate trends for Spring and Summer of 2005
I don't know if all real estate agents in the Gladwin County area are experiencing the same trends as I am this year, but I've been seeing a trend towards more buyers purchasing vacant land in 2005. I've notice that approximately 2/3 of my sales from January 1st to May 15th, 2005, have been vacant acreage or waterfront lots.
I'm finding that most of the buyers are individuals or families from the down state area, looking to build in the future or invest in some hunting land. As for local buyers, it seems that sales for year round homes have been starting out slow, despite the continuing low mortgage interest rates.
Things are still looking up for waterfront homes and cottage sales, this year. I've had many inquiries, requesting information on waterfronts this past winter and into this spring. I've had several buyers starting their searches while the lakes were still frozen this year. Pending the unusual weather, I'm expecting a busy spring and summer once the weather breaks.
~ Ivie Baker
I'm finding that most of the buyers are individuals or families from the down state area, looking to build in the future or invest in some hunting land. As for local buyers, it seems that sales for year round homes have been starting out slow, despite the continuing low mortgage interest rates.
Things are still looking up for waterfront homes and cottage sales, this year. I've had many inquiries, requesting information on waterfronts this past winter and into this spring. I've had several buyers starting their searches while the lakes were still frozen this year. Pending the unusual weather, I'm expecting a busy spring and summer once the weather breaks.
~ Ivie Baker
Wednesday, January 19, 2005
Your Debt Ratio
What is your debt to income ratio?
Every time you apply for a credit or a loan, the lender must determine your debt to income ratio. This measures what percentage of your gross monthly income (everything before taxes are deducted) that goes towards paying off your debts. The debt to income ratio formula varies slightly according to the type of creditor or lending institution that you're dealing with. Your credit card company for example might accept a higher ratio as long as you make all of your payments on time.
Mortgages on the other hand are large, long term debts. In this case, most lenders will want to make sure that you are at the lower end of their debt to income ratio threshold. So, how does one go about calculating this important number? The easiest way is to divide the total of your monthly payments by your gross monthly income. For example, if your total debt payments are $500 with a $2000 per month paycheck, your debt to income ratio is 500/2000 = .25 or 25%.
So what does that number mean?
In general, the lower your debt to income ratio, the better. It shows that you have fewer obligations and are more likely to keep up all of your existing payments. A generally recommended ratio is 15%. All of your car loans, credit card payments, student loans and more should stay at 15% or less. Mortgage companies are looking for customers whose housing costs will probably be around 30% of their household income. This does not mean that you will be turned down for a home loan if you are at 40% or even 50%.
Clean credit beats DIR?
If you are very young and upwardly mobile, or live in New York City for example, it is possible that your debt to income ratio will always be above the recommended threshold. Most mortgage financing institutions will work with you to provide an appropriate loan product or an interest rate that will qualify you for a home loan. The cleaner your credit, they more flexible mortgage lenders will be when considering your entire financial profile. A large debt load with a consistent payment history can be better than a small debt to income ratio with an imperfect or poor credit history.
Do your homework and keep an eye on spending habits. In addition, use a good online mortgage calculator to ensure that you won't trade your future home ownership dreams for impulse purchases and credit card debt.
Source: rapidlingo.com
Every time you apply for a credit or a loan, the lender must determine your debt to income ratio. This measures what percentage of your gross monthly income (everything before taxes are deducted) that goes towards paying off your debts. The debt to income ratio formula varies slightly according to the type of creditor or lending institution that you're dealing with. Your credit card company for example might accept a higher ratio as long as you make all of your payments on time.
Mortgages on the other hand are large, long term debts. In this case, most lenders will want to make sure that you are at the lower end of their debt to income ratio threshold. So, how does one go about calculating this important number? The easiest way is to divide the total of your monthly payments by your gross monthly income. For example, if your total debt payments are $500 with a $2000 per month paycheck, your debt to income ratio is 500/2000 = .25 or 25%.
So what does that number mean?
In general, the lower your debt to income ratio, the better. It shows that you have fewer obligations and are more likely to keep up all of your existing payments. A generally recommended ratio is 15%. All of your car loans, credit card payments, student loans and more should stay at 15% or less. Mortgage companies are looking for customers whose housing costs will probably be around 30% of their household income. This does not mean that you will be turned down for a home loan if you are at 40% or even 50%.
Clean credit beats DIR?
If you are very young and upwardly mobile, or live in New York City for example, it is possible that your debt to income ratio will always be above the recommended threshold. Most mortgage financing institutions will work with you to provide an appropriate loan product or an interest rate that will qualify you for a home loan. The cleaner your credit, they more flexible mortgage lenders will be when considering your entire financial profile. A large debt load with a consistent payment history can be better than a small debt to income ratio with an imperfect or poor credit history.
Do your homework and keep an eye on spending habits. In addition, use a good online mortgage calculator to ensure that you won't trade your future home ownership dreams for impulse purchases and credit card debt.
Source: rapidlingo.com
Monday, November 22, 2004
Sugar Springs - Quest for Quality Waterfront Lots
Waterfront lots in Sugar Springs Michigan and beginning to become something of an endangered species. Of course, there are still some out there, but they are becoming rare. Most of the choice lots have either been built on or are not currently on the market to purchase. Because of this, prices have skyrocketed!
I've noticed a trend in the past couple of years. Lots that had sold for $90,000 in 2002 are selling for $130,000 and up, today. One lot on main Lake Lancer sold for a whopping $200,000 this past September! Currently, there are two choice lots for sale from $189,900 to $240,000. Both of these lots are located on Lake Lancer. Other lots on the main Lake Lancer are going for $135,000 and up. Lots on channels are averaging $79,900 to $98,500.
Currently, there are no available lots for sale on the smaller lake (Lake Lancelot). The only lot for sale this fall on the main Lancelot is currently pending sale.
So, if you're looking for a waterfront lot in Sugar Springs in the near future, you'll want sign up for my auto email service at http://SugarSprings.GladwinRealEstateAgent.com/ss-info and get alerts when new listings become available. I've also recently written all of the waterfront lot and home owners, letting them know that I have several buyers looking for lots or waterfront homes. I've already gotten a few responses. Some many not list or offer them up for sale until after the first of the year or spring.
Also, for a list of Sugar Springs lots currently for sale, please visit http://SugarSprings.GladwinRealEstateAgent.com/waterfrontlistings
I've noticed a trend in the past couple of years. Lots that had sold for $90,000 in 2002 are selling for $130,000 and up, today. One lot on main Lake Lancer sold for a whopping $200,000 this past September! Currently, there are two choice lots for sale from $189,900 to $240,000. Both of these lots are located on Lake Lancer. Other lots on the main Lake Lancer are going for $135,000 and up. Lots on channels are averaging $79,900 to $98,500.
Currently, there are no available lots for sale on the smaller lake (Lake Lancelot). The only lot for sale this fall on the main Lancelot is currently pending sale.
So, if you're looking for a waterfront lot in Sugar Springs in the near future, you'll want sign up for my auto email service at http://SugarSprings.GladwinRealEstateAgent.com/ss-info and get alerts when new listings become available. I've also recently written all of the waterfront lot and home owners, letting them know that I have several buyers looking for lots or waterfront homes. I've already gotten a few responses. Some many not list or offer them up for sale until after the first of the year or spring.
Also, for a list of Sugar Springs lots currently for sale, please visit http://SugarSprings.GladwinRealEstateAgent.com/waterfrontlistings
Housing Boom to Roll on for Years
According to TAMU Real Estate Center's News Release No. 66 At the beginning of the 20th century, less than half of all Americans owned their own homes. Today, low interest rates have pushed homeownership rates to a record 68 percent, and that figure is still climbing. Experts say it will exceed 70 percent by 2013. ... Millions more new homeowners are coming down the road. As many as 1.63 million new households could be formed every year for the next decade. That translates to 2.17 million new homes needed annually Wow!
Exchanging Real Estate Tax Free
Take a look at The Tax-Free Exchange Loophole : How Real Estate Investors Can Profit from the 1031 Exchange by Jack CummingsRealty Barron talks about how you can Exchange Real Estate Tax Free using 1031 exchange. The claim " ...it can keep you from losing tens or hundreds of thousands of dollars in unnecessary taxes and loss of growth. ... The 1031 exchange is named after section 1031 of the IRS tax code. Basically, it allows you to exchange an existing investment property for a different investment property without having to pay capital gains taxes on the transaction. This applies to any investment property including rental houses, raw land, business property, commercial real estate, condos, apartments, etc. .. You can roll the profit from the sale of an existing property into the purchase of the next. Not only does this save you from having to pay capital gains taxes in the short-term, it can also preserve the ability of appreciated property to receive a step-up in basis at death which can eliminate those taxes altogether" Worth keeping in mind ...
Friday, November 12, 2004
Good Books
Download - Dowloandable ebooks include:
Download and read on the go ... Buy, Rent and Sell: How to Profit by Investing in Residential Real Estate by Robert Irwin, [A guide to making profitably residential real estate investments, offering strategies real estate professionals have been using for years.
Offers tips for those looking for a quick return, as well as those who would like a source of long-term income and growth investment, showing how to save on taxes and other expenses], Real Estate Loopholes: Secrets of Successful Real Estate Investing by Robert T. Kiyosaki (Foreword), Diane Kennedy, Garrett Sutton, The Complete Book of Home Inspection [ADOBE READER] by Norman Becker (if you're starting out, this one is especially worth having on portable device, to allow you easy reminders of what to look for as you inspect or look over properties ... of course ASHI inspectors would want to supplement this with more elaborate Home Inspection resources like Home Inspection: A Guide for Professionals by Marcia Darvin Spada -- which "takes you step-by-step through the entire process of home inspection following the most current guidelines established by the American Society of Home Inspectors, Inc").
Download and read on the go ... Buy, Rent and Sell: How to Profit by Investing in Residential Real Estate by Robert Irwin, [A guide to making profitably residential real estate investments, offering strategies real estate professionals have been using for years.
Offers tips for those looking for a quick return, as well as those who would like a source of long-term income and growth investment, showing how to save on taxes and other expenses], Real Estate Loopholes: Secrets of Successful Real Estate Investing by Robert T. Kiyosaki (Foreword), Diane Kennedy, Garrett Sutton, The Complete Book of Home Inspection [ADOBE READER] by Norman Becker (if you're starting out, this one is especially worth having on portable device, to allow you easy reminders of what to look for as you inspect or look over properties ... of course ASHI inspectors would want to supplement this with more elaborate Home Inspection resources like Home Inspection: A Guide for Professionals by Marcia Darvin Spada -- which "takes you step-by-step through the entire process of home inspection following the most current guidelines established by the American Society of Home Inspectors, Inc").
Subscribe to:
Posts (Atom)