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Additionally, the property valuation and the mortgage application process can seem overwhelming, particularly with so many friends and relatives having made bad decisions during the bubble frenzy. But home ownership is still a desirable state of being and theses fears can be overcome, one step at a time, so to say, by putting together a very methodical to do list.
Prequalifying for a Mortgage

Today virtually no Realtor in their right mind will invest much time in you if you cannot prove that you have the ability to close a transaction.  So, you need to get together with a financial lender, and remember, you aren’t committing to a loan with them yet; you can still shop for the best deal later.   Later, after you have worked with a Realtor and found the property of your dreams it can be tempting to go for an adjustable mortgage or some variation, with the lower initial rates in order to comply with the income ratios necessary for the loan to be approved. This is a little bit of a gamble as property values, although we believe they have bottomed, aren’t GUARANTEED to go up over the medium term.
Finding Your Home

Watch for the old up-sell from your Realtor. If you determine the loan amount you are comfortable with, do not let them tempt you by bring you into neighborhoods that are priced out of your means. Remember, as real estate agents, we are paid a commission, the more your house costs, the more we make! However, there are times when a small increase in the cost of the home can get you a LOT more value. You have to press the agent on why they want to show you something outside of the parameters you gave them. After all, your time is valuable too. Don’t let them get sidetracked by showing pie in the sky homes.
Negotiations

The best thing about all the poker tournaments on television is that we can learn what real poker faces look like.  Particularly in today’s buyers market, keeping your cards close to your vest can save you a good deal of money.  Let the real estate agent earn their commission. You are nonchalant! No gushing over all the house’s special features.

Your Team

You will need an attorney, home inspector, property surveyor, etc.  Let your team do their jobs right and you will be able to sleep well at night. Their experience can help to save you money by heading off some repairs that may be necessary later.

You can reach Bill at www.OrlandoRealtyPros.com.

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An skilled realtor will afford you the subsequent services:

Staging the Home – a home that is placed on the market to sell, principally in a buyer’s market, needs to have a definite visual appeal, both from the curb and inside. Don’t get upset if they recommend you put away a lot of personal items. You want a buyer to be able to imagine the home as theirs, not yours!

Establishing the Asking Price – an experienced realtor will recognize how to price a home correctly. A comparative analysis of up to date sales as well as list prices for your neighborhood is a key factor in pricing a own home at a level that will bring in the buyers but also be agreeable to the sellers.

Locating Buyers – setting the correct sales price isn’t going to help you much if you don’t have a qualified pool of buyers who know it’s offered for sale. And qualified is the operative word here. Financial pre-qualification will eradicate any tire kickers.

Handling Negotiations – both selling and buying a home is an emotional experience. There is a lot at stake both financially as well as socially. After all, besides trying to get the best price, a buyer is committing to living in that house and area for an extended time. An knowledgeable Realtor can keep everyone’s emotions in check and help it be as stress free as possible.

Keep in mind that it could be possible to sell your home at a premium price. The right realtor can leverage the strengths of your property. It is the know-how and understanding about the market and people that makes a quality realtor worth a important asset when going through the home buying process.

You can lean more about the author at www.OrlandoRealtyPros.com

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It is this segment of the population, someone that has lost their job in the carnage of the housing collapse, someone that didn’t over extend and only needs a job to be able to pay their bills; that can utilize the system to buy themselves some time.

The process is very simple, yet under the pressurized circumstances may not jump out at the man or woman on the street as something that can work for them. They need to have a pretty clean payment record and have all the files and records from your outstanding loans. You will need to have evidence that you didn’t flit away any money. You’ll also need a detailed household budget.

As the foreclosure process moves forward, before the actual sale is to commence, you can file for a foreclosure court hearing. This can be done at any time during the process. This will stop the process and understanding that the courts are overwhelmed with cases, the delay may be significant. This will give you time to get back on your feet financially.  They when the hearing does take place, your financial accounting will show that you acted responsibly and you will be able to plead your case with the court as to why you should be given additional time to make right the account.

Your lender will have every incentive to work with you and may restructure your loan to accommodate your new financial reality. However, before applying this strategy it will be best to consult an attorney that is versed in foreclosure and bankruptcy laws in your jurisdiction.

You can learn more about the author at www.OrlandoRealtyPros.com

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Because of the different market dynamics, the amateurs have all fallen by the wayside. There will be less competition for those houses that need some TLC. Buyers often cannot see past the wear and tear of a foreclosed property to understand the potential underneath.

One of the criteria that will need to be considered before pulling the trigger on an acquisition is the neighborhood. One of the best things to look at is the difference between the price you can acquire the property for and the recent sale data for that particular neighborhood.  Is there enough room for you to carry the mortgage for a month before you can rent it or put it up for sale?  How much additional investment is needed? Is it simply cosmetic? Or is there real capital improvement that needs to be done?

Calculate the purchase price, the cost of improvements and the carrying costs and see if you can make a reasonable profit or if the current rental rates will cover your monthly expenses. This is not a step to take lightly. Success in real estate investment is 90% planning.

One of the other criteria to look at is the seller’s motivations.  Real estate is an expensive poker game. Feel out the seller, the agent is not allowed to divulge the seller’s motivations, ask why they are selling and watch for their facial expression.  You will be able to tell how urgent the situation is by their reaction. Their motivations can range from the house being an inheritance that they want to liquidate or they may be facing foreclosure. Their level of urgency will let you know how to negotiate and if you will be able to get the property at a price that will fit into your property and neighborhood analysis.

So, you are going to be looking for houses that can be purchased at a discount to the market yet can be improved aesthetically, yet inexpensively. Flipping the house will be the relatively easy part. If you’ve done your planning and purchasing properly all you will have to do is bring the improvements in on budget, then list the house slightly below market value for a quick sale.

You can learn more about the author at www.OrlandoRealtyPros.com

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Budgets are not the sole domain of the Government

As mentioned above, it’s unlikely a client will understand the financial metrics as would a real estate or mortgage professional. However, I am still amazed when somebody comes into my office and asks me how much they can afford.  This question, which, incredibly, extends to all socioeconomic groups, speaks volumes about the clients’ lack of perception when it comes to understanding or maintaining a personal spending budget. They simply have no idea as to what it costs to maintain their personal lifestyle.  That is not to say that I cannot run the raw numbers they give me to see whether or not they meet the ratios of a particular lending program, but this is not analyzed in the context of their overall personal budget. While I crunch the numbers to show them the disposable income, it is the client’s responsibility to understand how that impacts their current lifestyle and spending patterns.

How the Mortgage Payment is constructed

Within the mortgage marketplace all the available programs, in spite of their claims and promises, come down to the same concept: the terms under which you are borrowing money from a creditor. Simply stated, there are three variables involved; principle amount, a predetermined period of time, and an agreed upon interest rate. This equates to a monthly payment to you that needs to be serviced every month. Now, we all know that some very exotic programs crept into the market place toward the end of the bubble, but none of them redefined how a mortgage payment is calculated. Many real estate websites have links to mortgage calculators to help eliminate the need to fully understand the math behind the concept. So, if you cannot calculate the payment yourself, you need to consider whether or not you have the understanding that you need in order to commit to taking on the debt.

Understanding the terms

There are many programs available to a qualified borrower. For the most part, they distill down to fixed or adjustable options. If it is a fixed rate mortgage you have secured an interest rate for the entire term of the loan and it does not change. If it is an adjustable rate mortgage the rate and payment change at some point in the loan term based on market conditions. This adjustment is what a home owner has to be very aware of. There are limits to how large an adjustment can be made but they should be reasonably certain that their income will grow enough to take on the increase in the mortgage payment. These terms are clearly expressed on all of the documents involved in the loan process. It is your responsibility to fully understand the specifics. After all, you own this loan once you sign on the dotted line.

Which Lender Should I Use?

While this does not seem important as most lending programs are very similar, I would suggest that it is one of the most important steps of all. The right lender considers it his or her personal responsibility to make sure that all the details are in place and that their clients fully understand all the options.  In the end, you need to look at a home purchase, or any financial decision, in terms of how it impacts you. Like the ripples from a stone thrown into a pond, the effects of committing to a mortgage can influence your quality of life and financial future. Providers of credit and financial services will and do assist you in evaluating your choices, but it is in their interest for you to move forward. Because of this, it is your responsibility and duty to yourself and your family to ensure that there are no knowledge gaps and that the purchase is the best decision, long term, before you sign on the dotted line.

Prior to receiving his real estate license in 2005, Bill held positions in sales management within the Flavor & Fragrance Industry.  He has also self published a collection of short stories titled “The Garage Sale Man” that is available at www.lulu.com.  You can learn more about Bill at  www.OrlandoRealtyPros.com.

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What the heck are all those Roman Numerals for?

Your sales contract is a document that is really a series of clauses, each of which is essential to the sales process. Each clause will include several key pieces of information that are required for a full and clear transfer of the title. In order be less confusing, I have compiled this list of items that are common to most sales contracts:

* Legal Description – The first and most crucial part of any sales contract is a thorough and a completely accurate description of the target property. This is required to identify the exact boundaries of the property in question. Even in the rare case when there is a numbering change or a street name is changed, the legal description cannot be changed unless a portion of the property is subdivided and sold. This is often not even possible.

* Sales Price – The sales contract is not legally binding unless it includes the agreed upon sales price. The price and payment portion of the contract should include details such as the escrow amount, the down payment amount, mortgage loan information and earnest money deposit. Any contingencies should be included as well, often listed on a separate addendum.

* Closing Details – The closing is the grand event when the purchaser and the seller consummate their “meeting of the minds” and finalize all of the paperwork and complete the sale of the property. A closing agent, usually a lawyer or title company is some states, will usually orchestrate the proceedings and mange the details. So, the sales contract should also contain the location, date and time of the closing.

* Miscellaneous Inclusions and Exclusions – Negotiated agreements pertaining to non standard items (such as appliances or furniture), needs to be included in the sales contract. Also detailed should be any items that will not be included in the sale. (Note to self* -List EVERYTHING that is to be included in the purchase. Don’t miss a chandelier or lamp. I hate when a $129 dollar item has been removed that the buyer thought was included.)

* Warranty Information – Any warranties should be itemized in the sales contract, along with dates and descriptions.

* Testing Certification – In most cases, except in “as is” sales, such things as wells, septic tanks, and termite and pest inspections on the property must pass inspection before a sale can be completed. The sales contract should itemize the particulars of these items and whose responsibility it will be to pay for the inspections and any necessary repairs.

* Date of Possession – The exact date that the buyer will take possession of the home. This date can be at any time before or at the closing or even after the closing.

* Expiration Date of Offer – The contract needs to include an expiration date for the offer, by which time the seller must respond with either an acceptance, rejection or counter offer.

* Arbitration Agreement – An arbitration agreement is sometimes included to allow for mediation of any disagreements to take place outside of the legal system.

* Interim Property Insurance – The property must be insured at all times, and the sales contract should have details about who is responsible for maintaining the property insurance prior to the closing date.

Working diligently with your real estate agent, who will probably handle the preparation of your offer with a state approved Sale & Purchase Agreement, will eliminate most of the issues purchasers may have with the process of preparing a sales contract. Real estate agents are schooled in negotiating such specific details as are necessary and will be actively instrumental throughout the process.

You can learn more about the author at Orlando Real Estate

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Identify the Right Strategy
An effective marketing strategy is required for any commercial real estate business to explore the market and increase the sales. A marketing consultant helps a commercial real estate business initiate the right strategy for promoting their business to gain prospective clients. The consultant can formulate a strategy based on aspects such as how to market the commercial property, where to promote, which media to select that will generate maximum ROI etc. The consultant identifies a strategy that takes into consideration the clients future needs and goals. Traditional marketing strategies like direct mail or online marketing strategies like email marketing and social media can be used by firms to effectively target specific market segment. Employing various traditional marketing tools, internet marketing and advertising strategies will increase the effectiveness of the marketing campaign.

Help With Quicker Results
Marketing consultants help all types of commercial real estate business to rework their business practices and to identify opportunities to improve their business. The expertise of marketing consultants helps the organization to identify and strategize new opportunities and to optimize their sales and marketing operations. The businesses also acquire a competitive advantage during the entire process. The services provided by marketing consultants help the business to reap benefits and reduce costs, get better quality, and fast results. Commercial Real Estate Marketing consultants also leverage Internet marketing techniques to effectively market the commercial real estate properties. The proven profit earning strategies of marketing consultants enables businesses to effectively reach target clients and thus achieve quick results. Various creative techniques and online medias are used by Commercial Real Estate marketing consultants to help in lead generation by contacting prospective clients.

Decipher Optimal ROI
Marketing consultants can decipher which marketing strategy can provide maximum ROI, adds value for the money, and is cost effective. The consultant knows which marketing strategy can effectively target specific market segments and help in lead generation. The Marketing consultant can also implement an effective marketing strategy that provides quantifiable results in ROI and real-time feedback on the effectiveness of the strategy. The consultants move forward with strategies that reduce overall workload, provide quality lead generation, and optimized results so that firms can focus on internal operations and new markets. This helps to save precious time and money for the commercial real estate firms and judge efficiency of strategies. Various Internet marketing solutions provided by marketing consultants help to increase ROI.

Avoid Loss of Revenue and Loss of Time
Many times commercial real estate firms and investors rely upon the wrong marketing strategy that can lead to poor deals and end up incurring both loss of revenue and time. The comprehensive marketing strategies provided by marketing consultants help businesses effectively target specific market segments resulting in quality lead generation. This will help in getting quick results and avoid loss of revenue. Even a lease occupied a month later means there is loss of revenue for one month.

Hiring a commercial real estate marketing consultant can help consolidate the online presence of any commercial real estate firm. Consultants provide Internet marketing techniques, online advertising, manage email campaigns, social media marketing etc. to effectively market the commercial real estate property to target specific potential clients and lead generation.

Market Your Center is a commercial real estate marketing, advertising and consulting company that offers fast, cost-effective, high-impact designs and advertising solutions. Market Your Center helps commercial real estate firms as their professional commercial real estate consultant with a comprehensive suite of products, services and solutions to meet their marketing needs. It also provides shopping center marketing services for various commercial real estate professionals and organizations.

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So within the slightly less than moribund real estate market is the percolating bank owned segment. It appears to be the opinion of the populace that the bank owned property represents the rock bottom price. A short sale still signifies an unrealized loss to the bank and why would they accept that when there is a full inventory of properties that have already darkened their balance sheet via the foreclosure process. And, a For Sale by Owner or a conventional listing, no matter how discounted the seller claims the price to be, it still appears to the buyer, correctly or not, that a portion of the price is the seller’s equity which they wouldn’t have to purchase through a bank or other financial institution.

I’ve recently seen instances where a bank owned property has sold within a day after being listed. This is reminiscent of the “frothiness” that Greenspan spoke of pre-meltdown.

But the challenge is that these bank-owned homes have often been vandalized by angry owners as they fell across the precipice of foreclosure. At best, a bank owned property will be structurally intact but empty, with dingy outlines of removed pictures spotting the walls and the floor showing where appliances or large pieces of furniture had dutifully resided.

But, as Realtors, we are used to seeing empty houses. We easily visualize the house’s potential, we’ve seen it realized many times over while showing other homes with the same floor plans. Buyers haven’t looked at hundreds of furnished homes and understood that beyond the tasteful (or not) furnishings that a house is just a floor plan with upgrades. And knowing the floor plans we instinctively understand how each room can hold furnishings and how the home will “flow” when furnished.

So what is one to do when we can see in the buyer’s eyes that statistically, (number of rooms, baths, sq ft, neighborhood, etc.) the bank owned property is just what they are looking for but somehow it just doesn’t feel right. And remember, home buying is an emotional event. It has to FEEL RIGHT! But an empty house will never feel right. They buyers are looking for a home.

In a perfect world, the seller would hire a specialist to “stage” the home so that the kitchen smells like vanilla, the bathrooms like bouquets of flowers and the rest of the home like fresh linen. But we are far removed from the “good ol’ days” and there is no way a bank is going to pay to “stage” a property. That would involve renting furniture, etc. and they have already taken a bath on the foreclosure.

So when we see the hesitation cross our client’s faces like a storm cloud across the sun we have to step in and alleviate it. I usually keep a few 8 x 10 color glossy photos (think Officer Obie in Alice’s Restaurant) of tastefully decorated rooms from the same floor plan available to show them what the rooms would look like with furniture. Then I quickly insist that they look at listings that are owner occupied so they can “feel the flow.” I let them experience the space with the “good vibrations” of it being a home. This only takes a little more research to be properly prepared.

This strategy may take an extra day and burn several additional gallons of that liquid gold we call gasoline, but when you see the buyers smile between themselves and they decide, Yes, they can see themselves ensconced happily in a this house and it will become their home, and they start to ask about the offer process, you will realize that it is very much worth the effort.

You can learn more about the author at www.OrlandoRealtyPros.com

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So let’s take a look at some options a small investor has available.  It can either be a boon or a bane depending upon the way you approach the opportunity. The buyers, sellers and investors are the deal makers and like a chess game, they strategically change their methodologies as no one is looking to overpay or lose on an investment. Like the stock market, the idea in real estate investing is to take the other guys money.

There are options for real estate investing including just purchasing a REIT from a stock broker or online with a discount broker. It is possible to purchase the physical properties themselves or purchase a note from an investor that wants the liquidity to take advantage of another opportunity.

Even the physical properties you can invest in vary in many ways. It can be anything from an undeveloped parcel to a multi-family income property. Some are interested in distressed properties. Depending on the area of the country and the zoning of the localities, these properties are snatched up by developers and general contractors. The individual doesn’t stand much of a chance. I sat in the Morris County, NJ court and watched a foreclosure auction where the bank asked $39,000 and the winning bid was $390,000! There were several contractors bidding against each other (this was back in 2003) and it was obvious that they planned to greatly expand the home and resell it within a couple of months. Here in Florida, there are many limitations as to how a home can be expanded so that option has its drawbacks.

However there are situations where a foreclosure can be a good investment depending on the purchase price, cost of improvements, cost of capital, and the length of time it has to be carried before being sold or rented.  So knowledge of the resale value or the current rental market is crucial.

There is another way that properties become available and that is through the probate process. Not that many properties make it through the probate process because they usually have a lot of equity in them and the heirs of the deceased will inevitably exercise their right to the property. However some do become available but they are hard to locate because the last will and testaments are filed through the probate court and their records are not publicized in the same way that foreclosures are.

You can learn more about the author at www.OrlandoRealtyPros.com

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