Real Estate Agent And Real Estate Broker - Two Sides To The Same Coin

Real Estate Agent And Real Estate Broker - Two Sides To The Same CoinBy [http://ezinearticles.com/?expert=Deepak_Rodey]Deepak Rodey
A real estate agent is often confused as a real estate broker, although both differ with their work profiles!
Earlier both of them were seen as a salesperson who deals with real estate market. They were involved with selling properties and hence these terms transposed. But now finesse has crawled in with progressing times. Services have augmented and so have people associated with them.
Though there is no perfect demarcation between them, still there are some disparities that allow them distinct designations. The entire role of a real estate agent has evolved from a salesperson whose occupation primarily was to sell properties. Now a real estate agent is a key person whilst dealing with property. He not only aids the trader in selling the property rather he also assists the buyer in various property matters. He is reminiscent of a manual to be consulted whenever one is planning to buy or sell their property.
A real estate agent and a real estate broker are essentially a pedestal rather an interactive media via which the entire transaction process takes place. In some places, a real estate agent is acknowledged differently as compared to a real estate broker. They are the licensed professionals working in the same field but their functional areas differ to a certain extent.
Talking about a real estate agent, he is basically a fresher who steps into the world of property transactions immediately after completing his academic studies or his training for being a real estate salesperson. This training consists of a course varying from forty to ninety hours and then undertaking an exam, passing in which would entitle him for a license of a real estate person or a real estate agent. But he certainly cannot work alone, he needs further supervision of a real estate broker and hence one must be allied with him for his work.
A real estate broker is an experienced real estate agent. The only distinction between a real estate agent and a real estate broker is the experience in form of years spent as a real estate agent.
It can be said that a real estate agent on maturity becomes a real estate broker. For this transition to occur he needs to appear in broker’s state exam and on qualifying that exam he gets a license for real estate broker. A real estate broker may work in partnership with other brokers to form business alliances or he may undertake some real estate agents to work under him.
Both real estate agent and real estate broker share the same field of work but the major difference lies in their working experience, where a real estate broker is better experienced than a real estate agent.
Deepak Rodey works for an agency called Property Advice Dubai a [http://www.propertyadvicedubai.com]Real Estate Dubai company
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The Real Estate Sector

AThe Real Estate SectorBy [http://ezinearticles.com/?expert=Manish_Marwah]Manish Marwah
Boom & Bust of Indian Real Estate Sector
Engulfing the period of stagnation, the evolution of Indian real estate sector has been phenomenal, impelled by, growing economy, conducive demographics and liberalized foreign direct investment regime. However, now this unceasing phenomenon of real estate sector has started to exhibit the signs of contraction.
What can be the reasons of such a trend in this sector and what future course it will take? This article tries to find answers to these questions...
Overview of Indian real estate sector
Since 2004-05 Indian reality sector has tremendous growth. Registering a growth rate of, 35 per cent the realty sector is estimated to be worth US$ 15 billion and anticipated to grow at the rate of 30 per cent annually over the next decade, attracting foreign investments worth US$ 30 billion, with a number of IT parks and residential townships being constructed across-India.
The term real estate covers residential housing, commercial offices and trading spaces such as theaters, hotels and restaurants, retail outlets, industrial buildings such as factories and government buildings. Real estate involves purchase sale and development of land, residential and non-residential buildings. The activities of real estate sector embrace the hosing and construction sector also.
The sector accounts for major source of employment generation in the country, being the second largest employer, next to agriculture. The sector has backward and forward linkages with about 250 ancilary industries such as cement, brick,steel, building material etc.
Therefore a unit increase in expenditure of this sector have multiplier effect and capacity to generate income as high as five times.
All-round emergence
In real estate sector major component comprises of housing which accounts for 80% and is growing at the rate of 35%. Remainder consist of commercial segments office, shopping malls, hotels and hospitals.
• Housing units: With the Indian economy surging at the rate of 9 % accompanied by rising incomes levels of middle class, growing nuclear families, low interest rates, modern approach towards homeownership and change in the attitude of young working class in terms of from save and buy to buy and repay having contributed towards soaring housing demand.
Earlier cost of houses used to be in multiple of nearly 20 times the annual income of the buyers, whereas today multiple is less than 4.5 times.
According to 11th five year plan, the housing shortage on 2007 was 24.71 million and total requirement of housing during (2007-2012) will be 26.53 million. The total fund requirement in the urban housing sector for 11th five year plan is estimated to be Rs 361318 crores. The summary of investment requirements for XI plan is indicated in following table
SCENARIO Investment requirement Housing shortage at the beginning of the XI plan period 147195.0 New additions to the housing stock during the XI plan period including the additional housing shortage during the plan period 214123.1 Total housing requirement for the plan period 361318.1
• Office premises: rapid growth of Indian economy, simultaneously also have deluging effect on the demand of commercial property to help to meet the needs of business. Growth in commercial office space requirement is led by the burgeoning outsourcing and information technology (IT) industry and organised retail. For example, IT and ITES alone is estimated to require 150 million sqft across urban India by 2010. Similarly, the organised retail industry is likely to require an additional 220 million sqft by 2010.
• Shopping malls: over the past ten years urbanization has upsurge at the CAGR of 2%. With the growth of service sector which has not only pushed up the disposable incomes of urban population but has also become more brand conscious. If we go by numbers Indian retail industry is estimated to be about US $ 350 bn and forecast to be double by 2015.
Thus rosining income levels and changing perception towards branded goods will lead to higher demand for shopping mall space, encompassing strong growth prospects in mall development activities.
• Multiplexes: another growth driver for real-estate sector is growing demand for multiplexes. The higher growth can be witnessed due to following factors:
1. Multiplexes comprises of 250-400 seats per screen as against 800-1000 seats in a single screen theater, which give multiplex owners additional advantage, enabling them to optimize capacity utilization.
2. Apart from these non-ticket revenues like food and beverages and the leasing of excess space to retailer provides excess revenues to theatre developers.
• Hotels/Resorts: as already mentioned above that rising major boom in real estate sector is due to rising incomes of middle class. Therefore with increase in income propensity to spend part of their income on tours and travels is also going up, which in turn leads to higher demand for hotels and resorts across the country. Apart from this India is also emerging as major destination for global tourism in India which is pushing up the demand hotels/resorts.Path set by the government
The sector gained momentum after going through a decade of stagnation due to initiatives taken by Indian government. The government has introduced many progressive reform measures to unveil the potential of the sector and also to meet increasing demand levels.
• 100% FDI permitted in all reality projects through automatic route.• In case of integrated townships, the minimum area to be developed has been brought down to 25 acres from 100 acres.• Urban land ceiling and regulation act has been abolished by large number of states.• Legislation of special economic zones act.• Full repatriation of original investment after 3 years.• 51% FDI allowed in single brand retail outlets and 100 % in cash and carry through the automatic route.
There fore all the above factors can be attributed towards such a phenomenal growth of this sector. With significant growing and investment opportunities emerging in this industry, Indian reality sector turned out to be a potential goldmine for many international investors. Currently, foreign direct investment (FDI) inflows into the sector are estimated to be between US$ 5 billion and US$ 5.50 billion.
Top most real estate investors in the foray
Investors profile
The two most active segments are high networth individuals and financial institutions. Both these segments are particularly active in commercial real estate. While financial institutions like HDFC and ICICI show high preference for commercial investment,the high net worth individuals show interest in investing in residential as well as commercial properties.
Apart from these, the third most important category is NRI ( non-resident Indians). They mostly invest in residential properties than commercial properties. Emotional attachment to native land could be reasons for their investment. And moreover the necessary documentation and formalities for purchasing immovable properties except agricultural and plantation properties are quite simple. Therefore NRI's are showing greater interest for investing in Indian reality sector.
MAJOR INVESTORS
• Emmar properties, of Dubai one of the largest listed real estate developer in the world has tied up with Delhi based MGF developments to for largest FDI investment in Indian reality sector for mall and other facilities in Gurgaon.
• Dlf India's leading real estate developer and UK 's famous Laing O Rourke (LOR) has joined hands for participation in airport modernization and infrastructure projects.
• A huge investment was made by Vancouver based Royal Indian raj international cooperation in a single real estate project named royal garden city in Bangalore over period of 10 years. The retail value of project was estimated to be around $ 8.9 billion.
• Indiabulls real estate development has entered into agreement with dev property development, a company incorporated in Isle of Man, whereby dev got subscription to new shares and also minority shareholding the company. But in recent developments indiabulls have acquired entire stake in dev property development in a 138 million-pound sterling (10.9 billion ruppees) share-swap deal.
• Apart from this real estate developments opens up opportunity for associated fields like home loans and insurance. A number of global have shown interest in this sector. This include companies like Cesma International from Singapore, American International Group Inc (AIG), High Point Rendel of the UK, Colony Capital and Brack Capital of the US, and Lee Kim Tah Holdings to name a few.Following are names of some of the companies who have invested in India
International developer Country Investment (US $ million)Emmar properties Dubai 500Ascendas Singapore 350Salem & ciputra group Indonesia 350GE commercial finance U.S 63Tishman Speyer Properties U.S 300
Simultaneously many Indian retailers are entering into international markets through significant investments in foreign markets.
• Embassy group has signed a deal with Serbian government to construct US $ 600 million IT park in Serbia.• Parsvanath developers is doing a project in Al - Hasan group in Oman• Puravankara developers are associated with project in Srilanka- a high end residential complex, comprising 100 villas.• Ansals API tied up with Malaysia's UEM group to form a joint venture company, Ansal-API UEM contracts pvt ltd, which plans to bid for government contracts in Malaysia.• Kolkata's south city project is working on two projects in Dubai.On the eve of liberalization as India opens up market to foreign players there is tend to be competitive edge to give quality based performance for costumer satisfaction which will consequently bring in quality technology and transparency in the sector and ultimate winners are buyers of this situation.
However this never ending growth phase of reality sector has been hard hit by the global scenario from the beginning of 2008. Analyst say situation will prevail in near future, and latest buzz for the sector comes as a "slowdown".
Sliding phase of the reality sector
In this present scenario of global slowdown, where stock markets are plunging, interest rates and prices are mounting, the aftermath of this can now also be felt on Indian real estate sector. Overall slowdown in demand can be witnessed all across India which is causing trouble for the major industry players. Correcting property prices and rentals are eroding away the market capitalization of many listed companies like dlf and unitech.
Fundaments behind slowdown...
Propetry prices move because of the basic principle of demand and supply• when demand is high and supply low prices will go up• When demand is low and supply high prices will go down.
For example let's assume that somebody has bought a property for Rs X and he is trying to sell the property (say after a year), there can be three options, assumption being that the owner is in need of money and cannot wait for more than 3 months to sell the property.
1. When the property prices are gliding everywhere : now owner will try to add as much premium to the property as possible, in order to book profits, therefore he will wait for 3 months and sell off in last month at the highest bid. Where he ill get total of Rs X + Rs Y.2. When property prices have stabilized: here owner will not be able to sell at premium and book profits due to market stabilization & since he don't want to sell at a loss, he will try to get same amount he brought the property for. Where he'll get total of Rs X = Rs Y3. when property prices are going down : owner will try to sell the property at least profit or least cost. Therefore he ill get Rs X-RsY.
Reality deals in major cities like Delhi, Mumbai, Bangalore, Chennai and Hyderabad have shown enormous downfall from October 2007 - March 2008. The downfall had been cushioned by fall in stock markets as it put a stop for wealth creation, which leads to shortage of capital among investors to invest in real estate activities. Apart from this in order to offset their share losses many investors have no choice, but sell their real estate properties.
Other factors which have contributed to this slowdown are raising interest rates leading to higher costs. Due to this almost all the developers are facing serious liquidity crunch and facing difficulties in completing their ongoing projects. Situation seems to be so disastrous that most of the companies have reported 50-70% cash shortfall. The grade A developers which are facing cash crunch include DLF,MGF, Emmar, Shobha developers, Unitech, Omaxe, Parsvnath Developers, Hiranandani Group, Ansal API, BPTP Developers and TDI Group. As a outcome of this liquidity crunch many developers have started slowing down or even stopped construction of projects which are either in their initial stages of development or which would not effect their bottom line in near future.
Also with increasing input costs of steel iron and building material it has become it has become inviable for builders to construct properties at agreed prices. As a result there may be delays in completion of the project leading finical constraints.
At the same time IT industry which accounts for 70% of the total commercial is facing a slowdown. Many residential buyers are waiting for price correction before buying any property, which can effect development plans of the builder.
Aftermath of reality shock to other sectors
Cement industry hit by reality slowdown
The turbulence in the real estate sectors is passing on pains in cement industry also. It is being projected that growth rate of cement industry will drop down to 10% in current fiscal. The reasons behind such a contingency are higher input costs, low market valuations and scaled up capacity which are in turn leading to reduced demand in the industry. High inflation and mounting home loan rates have slowed down the growth flight of real estate sector which accounts for 60% of the total cement demand. The major expansion plans announced by major industries will further add to their misery as low market demand will significantly reduced their capacity utilization.Setting up new facilities will impart additional capacities of 34 million tone and 45 million tone respectively in 2008-09 & 2009-10. This is likely to bring down capacity utilization in the industry down from current 101% to 82%. Even as it loses power to dictate prices, increased cost of power, fuel and freight will add pressure on input costs.
Ambuja Cements too is trading at a higher discount than previous down cycle, suggesting bottom valuations. However, replacement valuations for Madras Cements and India Cements indicate scope for further downslide when compared to their previous down cycle valuations.All this has added to stagnation of the cement industry.
Dying reality advertising
The heat of reality ebb is also being felt by the advertising industry. It is being estimated that all major developers such as DLF, omaxe, ansals & parsvnath have decided to cut down on their advertising budget by around 5%. The advertising industry in India is estimated to be around 10,000 crore. This trend can be witnessed due to weakening spirits of potential buyers and real estate companies call it a reality check on their advertising budgets. A report from Adex India, a division of TAM Media Research, shows that the share of real estate advertisements in print media saw a drop of 2 percent during 2007 compared to 2006. According to Adex, the share of real estate advertisement in overall print and TV advertising last year was 4 percent and 1 percent, respectively. It's a known fact that infrastructure and real estate companies are responsible for advertising industry maintaing double didgit growth rate. Therefore its understood that a recent slowdown in iindian reality sector has made things worse for advertising industry. The Adex report indicates that the top 10 advertisers shared an aggregate of 16 percent of overall ad volumes of real estate advertising in print during 2007. The list include names such as DLF Group, Parsvnath, Sahara, HDIL and Omaxe group. However, the real estate had maximum share in South India publications followed by North and West publications with 32% and 26% share, respectively, during 2007.
According to many advertising agencies consultants, this phenomenon is taking a toll as all real estate companies want a national foot print and also these companies are turning into professionals. Therefore they are setting standards when it comes to advertising to sales ratio.
Falling stock markets knock down reality stocks
Reality stocks have been hard hit by uncertainties prevailing in the stock market. The BSE reality index is the worst performer having shed 51% of its 52-week peak reached in reality. The BSE benchmark index has shed 24% since January. The country's largest real estate firm DLF scrip lost 54% while unitech lost 64% from its peak. The scrips of Delhi bases parsvnath and omaxe have lost 68% each since January.
The sector is facing a major downfall in sales volume in most markets of the country. The speculators have exit the market and Mumbai and NCR, the biggest real estate markets in markets are cladding subdued sales. In Gurgaon and Noida, which had seen prices almost treble in four years, sales are down 70%, leading to a price correction of 10-20%.Lets us have a look how major cities are affected by reality downfall.
Top 4 metros taking the lead - in slowdown
Delhi &NCR
While bears are ruling the stock market, the real estate sector in Delhi & NCR region has started facing departure of speculative investors from the market. According to these developers based in region the selling of flats has become very complicated at the launch stage due to lack of interest from the speculators. Developers attribute this to stability in prices against the past where prices were up surging on monthly basis. The scenario has changed so much in the present year that developers are now facing difficulty in booking flats which may delay their projects and reduce their pricing power for instance a year ago, if 100 flats were being sold in month at launch stage now it has come down 30-40 per month. Till mid 2007 speculators made quick money by booking multiple flats at launch of the project and exiting within few weeks or months. But now due to the stabilization of the property prices little scope is left for speculators to make money in short term. Therefore outcome is their retreat from the sector.
Mumbai
Mumbai real estate market, which witnessed huge increase in prices in recent years, which made the city to enter in the league of world's most expensive cities, is now feeling the heat of slowdown. Property sales that have been growing at a clank of around 20% every year have been plumped by 17% in 2007-08.
Though slowdown news of property market in country's financial capital has been much talked about, but it was first time that figures proved the extent of slowdown. Information about residential and commercial property sales from the stamp duty registration office show almost 12,000 fewer transactions during the last financial year compared to the year before. From April 2007 to March 2008, 62,595 flats were purchased in Mumbai as against 74,555 in 2006-07.According to reality analyst sales volume can die out further in south as developers persist on holding to their steep prices and buyers anticipate a further fall with current rates beyond reach. They further add that market is on a corrective mode and downward trend is anticipated for another 12 months.
Between 1992-96, the market ran up the same way it did during 2003-07. Post-'96, the volumes dropped by 50%. This time again it is expected to drop substantially though not so steeply. The demand is now extremely sluggish and customers do not want to stick out their necks and transact at prevailing rates.Chennai in past few years we witnessed reality index gaining huge heights on BSE and it also impact could be felt allover India. Amongst them Chennai was no exception. With IT boom in past few years and pumping of money by NRI's have led to prices touching skies. Chennai also witnessed a huge boom property prices over the last few years. However in past few months it has been facing slowdown in growth rate.
Following factors can be attributed to this:• This is one of the common factor prevailing all over India- rise in home loan interest rates, which has made it extremely difficult for a normal salaried person to be able to afford a house.• Depreciation of US dollar, which means NRI's who were earlier pumping money into the real estate are now able to get less number of rupees per dollar they earn in US. Therefore many of them have altered their plans for buying house in India.• The Chennai Metropolitan Development Authority (CMDA) has imposed stricter norms for apartment construction and penalties for violations are more severe than before.• Failure of the legal system of chennai to prevent intrusion, forged documents and illegal construction has added to the problem as many NRI'S are hesitating to buy plots in chennai.• Apart from this tsunami of 2004 has shaken the confidence of many investors to invest in real estate.
However many analyst are quite bullish about this region. Especially in areas like old mahabalipuram, south Chennai etc because of numerous IT/ITES/ electronics/automobile companies are expected to set up their centers in these areas. Once these projects are complete and companies begin operations their, many people would like to live near to such areas and outcome will be boom in residential sector.
Bangalore
As discussed for above cities Bangalore is also dwindling between the similar scenarios. Bangalore seems to be in midst of low demand and supply. This trend is due to myopic developers, due to sudden growth in Bangalore in last few years, lot of builders have caught the opportunity of building residential houses thinking their will be lot of employment, increase in salaries and hence demand for housing. Past few years have been jovial for Bangalore as IT industry was doing well and banking and retail sectors were expanding.
However with this sudden economic slowdown, due to which Indian stocks markets are trembling, interest rates are high, jobs and recruitment put on freeze have led to cessation of investment in local property markets.
According to the developers real-estate industry of Bangalore has experienced a drop of about 15- 20% in transaction volumes. Adding to it grade A developers have faced a dropdown of 50% on monthly levels of booking compared to what they enjoyed in December 2007.
Future outlook
The real estate explosion in Indian real estate is due to by the burgeoning IT and BPO industries. The underlying reason for all these moves is that the Indian real estate is tremendously attractive, because of basic demographics and a supply shortage. Truly Indian real estate is having a dream run for last five years.
However in the current scenario Indian real estate market is going through a phase of correction in prices and there are exaggerated possibilities that these increased prices are likely to come down. In this scenario hat will be the future course of this sector?
Many analyst are of view that tightening of India's monetary policy, falling demand and growing liquidity concerns could have negative impact on profiles of real estate companies. Slowing down would also aid in the process of exit of some of the weaker entities from the market and increasing the strength of some of the established developers. A prolonged slowdown could also reduce the appetite of private equity.
Its also been projected that large development plans and aggressive land purchases have led to a considerable increase in the financial leverage (debt/EBITDA) of most developers, with the smaller players now being exposed to liquidity pressures for project execution as well as a general slowdown in property sales. Property developers hit by falling sales and liquidity issues would need to reduce list prices to enhance demand, but many still seem to be holding on to the asking price - which, would delay the process of recovering demand and increase the risk of liquidity pressures.It was being witnessed that before the slowdown phase the projects were being sold without any hook at an extravagant rate. But at present negative impact is highly visible as lot of high end projects are still lying unsold. In such a scenario, there may be blessing in disguise as high profile speculators will be out making way for the actual users.
But here also sector faces trouble as correction in prices has been accompanied by increase in home loan rates by the banks which have led to erosion of purchasing power of middle and upper middle class majority of whom are covered in the category of end users or actual users.Therefore for future of real estate sector analyst call for a wait and watch method to grab the best opportunity with the hope of reduction in loan rates. http://www.sapphireconsultinggroup.in/realestate.html
Manish Marwah
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How a Foreign National Can Buy Real Estate in America

How a Foreign National Can Buy Real Estate in AmericaBy [http://ezinearticles.com/?expert=Maria_Gudelis]Maria Gudelis
Opportunities for real estate investment for foreigners is wide and varied in the United States. It doesn't matter where you're from and what currency you'd be using to purchase a property, you have a property waiting for you.
There are generally three kinds of real estate investment available to foreigners. These investments include the commercial estate investment and residential property investment. Residential properties are further classified into single family properties, apartments or condominiums and recreational properties. Regardless of what kind of real estate you are interested in, there are all sorts of tax ramifications, financing options and legal requirements that you have to deal with.
Why Should You Invest in the U.S. Real Estate Market?
You've probably heard of the increasing number of foreign real estate investments in the United States. This is not surprising. With the troubles that the real estate investment market is facing in the United States, greater opportunities in real estate investment were opened to foreign investors.
With the dollar's value in its all time low, foreign investors are finding real estate bargains all over the United States. There are no shortages of deals in this market. More and more distressed properties are being sold everywhere and foreigners are pouring in millions buying these foreclosed or distressed properties. The United States real estate has become a fairly attractive long-term investment for foreign investors.
In November of 2006, the National Association of Realtors released a report entitled "Foreign Investments in U.S Real Estate: Current Trends and Historical Perspective". The report showed that there has been a steady increase in foreign real estate investment in the United States. This is especially after the euro and the loonie became stronger in the face of the continuous devaluation of the US dollar. Prime bargains were opened to foreigners. Many foreigners have now looked into the possibility of retiring or settling in the United States.
If you're a foreigner, you would find a lot of reasons why you should invest in the United States real estate market. Aside from the fact that the floating exchange rate has given you a lot of leverage over the bargaining table, the financial market is a pretty good reason why you should invest in the US real estate.
The financial market in the United States in relation to the real estate market is quite liberal and the restrictions against foreign investors are pretty reasonable. This is ideal for foreign companies that are seeking to invest in the real estate market in the United States in order to avoid tariff restrictions and are considering setting up an office or a company in the United States.
Furthermore, despite the devaluation of the US dollar and the wide foreclosures of a lot of property, the real estate market remains to be stable, though slightly shaky, due to foreign investors' capital appreciation. Domestic real estate buyers may not necessarily share the same opinion, but the market has remained to be strong for foreign real estate buyers. This may be largely credited to the fact that there is minimal risk for them.
Why are Foreign Real Estate Investments Safe and Profitable?
There are a lot of investments you can make, but the safest you can make right now is investing your money in real properties. This is another good reason aside from the fact that you can make a pretty nifty profit, if you like, particularly now with the widespread property foreclosures and seemingly continuous US dollar devaluation. This is especially true if you are going to use the euro or the loonie when making your investment.
But why is US real estate investment safe for foreigners?
It is undeniable that stock investments are not a safe avenue at this point. The recession has not only affected the US economy; the same recession has greatly affected worldwide stock investments. Stocks values are dropping. It is also a fact that even without the current economic situation, stock values fluctuates.
On the other hand, real estate investments are pretty stable if you would compare it to stock investments - or even bond or mutual fund investments. With real estate investment, you'd be putting your money in an investment that would grow in value as years go by.
What are the Benefits of Foreign Real Estate Investment?
US state government supports foreign investments and along this line has formulated various tax breaks to encourage foreign investment on real estate. Many of these tax breaks are not available in many countries. In fact, most countries would frown at foreigners owning real properties within their territory.
Foreign real estate investment in the United States is open to everyone. As long as you can afford to buy the property or at least comply with the mortgage requirements and payments, you can secure for yourself a pretty good property in the United States. Again, with the current economic situation of the United States, this is the perfect chance for you to make an investment.
Another great benefit that you can take advantage of is the availability of mortgage financing. Lenders have opened their doors to foreign investors who are looking into purchasing a property. So, you don't have to actually deplete your bank account. You can actually secure a mortgage loan and gradually pay it off.
I'm Canadian, What Are My Financing Options?
There is a steady increasing rate of Canadian real estate investors in the United States; and accordingly, the government has made certain that they have attractive financing options available to them.
If you're Canadian - or if you're a foreigner - you'd find a lot of reasons why you should buy a piece of real property in the United States. For Canadians, the parity of the currencies or the apparent devaluation of the US dollar is a pretty good reason itself. But how do you finance your purchase?
There are various financing options available to you depending on which state you are in. In Arizona, for instance, you'd get favorable financing terms if you are purchasing a property for recreational purposes, that is, you do not derive any income or benefit from your purchase or ownership. You will be required, however, to sign up a disclosure agreement and give a 30% down payment for your loan. To qualify though for a loan, you may be required to show availability of liquid reserves for a period of three to six months. You may also be required to present a minimum of 3-month bank statement.
If you are purchasing a property for investment, you'd probably meet stricter terms. Requirements may be more stringent. For instance, you could be required to give a down payment of more than 30% and you may be required to show one year worth of liquidity reserves.
Regardless of your reasons, if you feel like you can fulfill the requirements of a financing loan, you can then proceed to actually applying for a mortgage loan. Also, keeping yourself updated with the financing terms flux may be a wise idea.
Understanding the Tax Ramifications of Real Estate Investment
The first foreigner to have ever bought a real estate property in the United States was Peter Minuit. This opened the doors to foreign real estate investors. After a couple of centuries later, foreign real estate investment has grown into huge proportions, accounting for billion-of-dollar worth of industry.
The low risk attached to US real estate market, the availability of countless properties, and the steady market liquidity attract foreign investors in droves. The initial snag, however, is the process of understanding the legal ramifications of foreign real estate investment.
What you have to understand is that foreign investment in the United States can take a lot of forms. A foreigner has various options. He can acquire direct interest. He can acquire an interest in the real estate through a partnership, a corporation, or a limited liability company. The latter is the typical structure used by foreign investors.
Limited partnership or Limited Liability Company offers financial protection or indirect asset protection, especially in cases of bankruptcy, law suits and taxes. Foreign investors are generally taxed on the property as if they hold the property in direct interest.
Ideally, you should secure the services of a real estate accountant to help you out with the tax ramifications, but it would help if you, at least, know the basics before you actually talk to an accountant.
There are tax consequences that you have to deal with when you buy a real estate in the United States. You would need an Individual Taxpayer Identification Number which you will use with all your tax transactions. Your investment in real estates can be treated as a portfolio investment and will be accounted for as an investment income which can either be fixed or a periodic income. This is typically taxed at 30% on gross revenues. This tax though does not apply though to all foreign investors. Tax rates would vary depending on the tax personality the foreign investor opted for. For instance, a corporation would be taxed differently.
Other things that you should take note of are availability and requirements of tax refunds and state tax laws on real estate properties as they may differ from federal laws, among other things.
By knowing all these things, you may save yourself from a lot of hassles when you finally approach a real estate accountant. You'd be in same wavelength when you finally get down to talking business. It is, however, very important that you secure the services of an accountant. You'd have an easier time dealing with the taxes ramifications. You'd also have assistance ensuring that you comply with all the accounting aspect of your investment. This is especially true if you are purchasing a real property for investment purposes.
Do You Need to Secure the Service of a Real Estate Lawyer?
If you are considering buying a property in the United States, you need to secure the services of a real estate attorney - someone who could help you with the legal issues concerning your purchase. It is tempting to forego securing the service of a lawyer to save money, but this could cost you a lot of money in the long run. Make sure that you have an experienced and trustworthy lawyer to help you out. Make sure that you have thoroughly checked out his credentials, profile, history of successful cases handled by him, and other factors that would influence your decision. You could check online and look for a lawyer working within the state where you are considering purchasing a property.
Functions of a Real Estate Lawyer
There is no actual distinctive function for a lawyer in a real estate case. However, you would really need the assistance of a lawyer for various tasks. A real estate lawyer would review the sales contract for you. He would also check on the title and other documents relating to the property. A lawyer would also review your mortgage contract and make the necessary adjustments or corrections. You could also get him to review with you the legal and tax issues concerning the purchase. A real estate attorney could also make the necessary adjustments relating to various expenses and costs involved in the purchase. He would assess your eligibility for tax refunds and draft the documents and statements relating to this.
Putting it simply, a real estate lawyer will be your watchdog. He would guide you through the whole process of purchasing a real estate in the United States in order to make sure that you will be legally protected. You will have a capable and trustworthy liaison to help you out with the contract. He will also face legal disputes if any arise.
Tips on How to Invest in Real Estate Successfully
Now, if you've fully bought into the idea of real estate investing in the United States, you might just want to know how to go about investing in real estate successfully. If you want to be successful in this venture, the first thing that you have to avoid is overanalyzing. Of course, it is a good idea to carefully think through your actions but it is a bad idea to overanalyze your investment to nonexistence. You might lose a great opportunity.
Before you purchase the property though, it might be wise to check the property value. If it sits well with you and you can reasonably afford the property, go ahead and make the purchase.
If you are considering the property for a quick flip, make sure that the property is in perfect condition and in good area. This is to ensure that you could double or actually triple your return of investment. If you can inspect the property yourself, do so. If not, a good and trustworthy agent can help you with this task.
Another important thing to remember when you're buying real estate is good financing. You should take your time to carefully consider all your financing options. Foreign investors can email in their queries to various lending institutions. It is a good idea to make sure that you've had their terms and rates on paper because they tend to change these terms and charge you with a lot of junk. Your real estate agent can help you with reviewing the escrow charges.
The bottom line, however, is that it is very important that you do your homework before you actually buy a real property. Investing in real properties in the United States can be profitable especially during these times. In fact, it may be the wisest and most perfect investment you can make right now.
Maria Gudelis has been a real estate investor and entrepreneur for over 10 years. She has investigated or bought properties all over the world including Mexico, Ecuador, Canada and the U.S.A. Past co-founder of the Southern California 'Forum for Women Entrepreneurs', her passion is to help other entrepreneurs leverage technology and real estate to be successful in their businesses. Her website is at http://www.maria-gudelis.com
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How To Pick a Residential Real Estate Agent

How To Pick a Residential Real Estate AgentBy [http://ezinearticles.com/?expert=Kay_Barchetti]Kay Barchetti
Many people spend less time picking a real estate agent than they spend deciding where to eat lunch. Real estate agents are like belly buttons: Everybody has one! Everybody knows or works with or is related to, plays tennis or softball with, goes to the movies, lives with, even sleeps with, a real estate agent! So what?
The first cousin of a friend of the lady who does your hair or your uncle's boss's daughter of his golf buddy or your kid's teacher's husband is not someone to hire just because of those relationships. Your home, or the home you're planning on buying, might be the biggest asset you have, and the person you hire to entrust that asset to should be interviewed and carefully selected.
It was the house they raised their kids in, and they still loved the place, but now the kids are all grown and off to College. How many people would hand over $200,000 to a co-worker's cousin or a friend of a friend to handle for up to a year? Would you? But how many people have you heard complain that they're unhappy with their real estate agent, but they can't change because it's their friend or a family member or their boss's family member?
Don't hand your home over to someone just because you "know" them. Do your homework. Interview them. Get references.
Here are some questions you should ask them:
1. What's their average time to sell a house?
2. Do they produce virtual brochures? Are they well done?
3. Do they have their own website? Is it appealing and easy to find on the Internet?
4. What's their marketing strategy?
5. How often do they hold open houses?
6. How often do they replenish the info box outside the home?
7. How well did they represent former clients who bought homes through them?
And then there's the reality of today's market. Is the agent you're considering web-savvy and high-tech enough for marketing in this time of rapidly changing technology? Can they get you that out-of-town buyer? Can they attract enough traffic via the web to sell your home quickly?
Here are examples of individual real estate agent's websites:
• http://www.homesnorthpittsburgh.com
• http://www.pittsburghcondo.net
• http://homesalespittsburgh.com
Your home is probably your biggest investment. Make sure you have a true professional marketing it. Good Luck!
I believe that to give truly great customer service one must "Make a customer, not a sale!"
Katherine Barchetti
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It Is Back to the Future for Real Esate

It Is Back to the Future for Real EsateBy [http://ezinearticles.com/?expert=Roselind_Hejl]Roselind Hejl
The serious decline in housing sales in many parts of the country is well documented. This downturn was preceded by several years of rising home prices in many areas. In some cases, prices rose beyond levels that were supported by local salaries, and were clearly not sustainable. The driving force that fueled the rise in home prices was the availability of low interest money. Easy availability of home mortgage money, plus historically low interest rates, allowed the demand side of the market to build.
When buyers could expect 15% - 30% appreciation and get 6% interest rates, who would not be motivated to buy? It was a no-brainer! Of course, high demand leads to higher prices. And, high demand leads to more new homes, as builders respond to the demand.
The flow of money for mortgages came from new and unregulated sources. In the not too distant past, government regulated entities, such as Fannie Mae, were the main buyers of mortgages from lenders. More recently, Wall Street investors entered the market for buying real estate loans. Alternative loans, interest-only loans, 100% loans, creative ARM's, no-documentation, and other high risk products became commonplace. Some of these loans began with a low interest rate that the borrower barely qualified for, and then switched to a higher rate after a short time. In many cases, the borrowers did not understand the risk that they were taking.
For most of my experience in real estate, buyers usually put 5% - 20% down, with 28% of their income allowed for mortgage payment, and their income was fully documented. When we began to see 100% financing on contracts, we were a little concerned by the shortage of personal investment, or skin in the game, as they say. The underlying expectation was that the market value of the home would increase quickly, and the buyers would be covered, if they needed to sell. Home ownership became speculative.
Sub-prime, alternative, no-doc, and other high risk loans are not limited to low income or poor credit buyers, and are not always predatory. Often, very sophisticated borrowers chose to keep their cash and leverage the purchase. In all price ranges, the easy availability of low interest money fueled the demand for home ownership, as well as investment in rental property. Inevitably, the demand for homes led to price increases, and elevated inventories, as builders produced more homes. Then the cycle was broken.
What caused the break? Foreclosures. Investors soon realized that mortgage backed securities contained more risk than expected, and stopped buying them. Suddenly, lenders did not have this new market for selling many of their loans. Without the flow of funds for easy mortgages, demand for homes slowed down. Prices began to fall in many parts of the country, and oversupply conditions prevailed. This has created challenging conditions for many homebuilders.
Of course, real estate markets are local, and some localities will fare better than others. Job growth, continued low interest rates, and reduced supply from builders are key factors that contribute to more balanced local real estate markets. But, in nearly all areas, the effects of the “new” tighter requirements for home mortgages will slow the market.
For the next year, sellers will have to consider the fundamentals to attract a buyer. They will need competitive pricing, excellent presentation, and top level marketing. Buyers will have to have a down payment, good credit, and proper income for their loan.
So, for the next few years, it's back to the future for real estate.
Roselind Hejl is a Realtor with Coldwell Banker United in Austin, Texas. Her website - Austin Texas Real Estate - http://www.weloveaustin.com - offers homes for sale, market trends, buyer and seller guides. Let Roselind help you make your move to Austin, Texas. Austin Real Estate Guide
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Loveland Colorado: Strong Real Esate Growth

Loveland Colorado: Strong Real Esate GrowthBy [http://ezinearticles.com/?expert=Marc_Keller]Marc Keller
Located in Larimer County, Loveland, Colorado is only 40 miles north of Denver and about 50 miles south of Cheyenne, Wyoming. Real Estate in Loveland is very popular because of its convenient location and great small town feel. It is wonderful to have access to the big city but no having to deal with the noise and crowds all the time. The latest relocation trend has been for people to move out of the city into suburbs and that’s why people are moving to Loveland. Over the next few years Loveland Colorado real estate will experience strong growth and great prices.
Its interesting name also gives it something special that drives in new residents. The name Loveland originated from William A.H. Loveland, the president of the Colorado Central Railroad. The city was actually founded by the Colorado Central Railroad company in 1877 and fittingly named after the beloved railroad president. The city was settled one mile upstream from the existing small settlement of St. Louis(not St. Louis MO) , the buildings of which were actually moved to the site of Loveland. This was the first Loveland Colorado real estate transaction. It hasn’t stopped growing since.
Like most of the towns during the first half of the 20th century, Loveland had its economy based in agriculture. The primary crops in the area were sugar beets and sour cherries. In the early 1900s, the Great Western Sugar Company built a factory in Loveland, which brought new employment and stronger economic activity. This new factory made Loveland Colorado real estate a valuable commodity as workers from around the area moved to be closer the factory. During the late 1920's the Spring Glade Orchard was the largest cherry orchard west of the Mississippi River. Spring Glade was the pride of the city and the envy of its neighbors.
Droughts, attacks of blight, and finally a killer freeze destroyed the cherry industry in Loveland and left many residents looking for work. Fortunately, in the late 20th century, the economy diversified with the arrival of manufacturers like Hewlett-Packard, Teledyne, and Hach. This new birth of economic activity revived Loveland's fading community and the Loveland real estate market there experienced another great time of growth and prosperity. Real estate in the area has continued to be supported by the strong economic presence of large manufacturing companies.
Current day Loveland is growing steadily. The population today is over 50,608. That’s up over 20,000 from the 80s. The U.S. Census shows that the city grown by 35 percent since 1990s. Loveland is now the 13th largest city in Colorado. There is new Loveland Colorado real estate on the market everyday. The reasons for this growth are, in part, due to the amount of favorable press this cozy little city receives. Loveland was named the Arts & Hearts capital of Colorado, it was also voted the number one place in the nation to "Revitalize your Life," by AARP Magazine, It has ranked in the top eight "Great Art Destinations" in the U.S. by U.S. Art Magazine, and also placed in The 100 Best Small Art Towns in America by another national magazine.
The weather in Loveland Colorado is also a very nice part of living or visiting. Loveland receives around 302 days of sunshine per year. The city receives about 15 inches of precipitation per year. The humidity averages 30 percent in the summer and 43 percent in the winter. On average, temperatures fall below zero degrees only 18 days out of the year. Summertime high temperatures average 84 degrees, while summer lows average 54 degrees. The paradise-like weather results in premium Loveland Colorado real estate prices.
Loveland Colorado is a great community with great people. The real estate market there will continue to grow and benefit from its arts, its great community of people as well as its great weather.
Mark Keller is a Client Account Specialist for 10x Marketing.com, an internet marketing company. If you would like to learn more about Loveland Colorado Real Estate visit The LucididaGroup.com
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Five Factors To Consider Before Investing In Residential Real Estate

Five Factors To Consider Before Investing In Residential Real EstateBy [http://ezinearticles.com/?expert=John_H]John H
During the past decade, many people have jumped into residential real estate investing. This was never so true as during the recent real estate boom. People read all the “get rich quick” schemes that litter the book shelves of libraries and book stores — use other people’s money, use no money of your own, and make millions! A lot of people did make great sums of money during the most recent boom; but now those, who did not get out before the market cooled, are seeing those investments in foreclosure due to their inability to make the mortgage payments.
Just because the real estate market isn’t over the top, as in the past few years, does not mean you no longer can make money in residential real estate. The difference between now (post-boom) and during the market boom is that the “get rich quick” schemes will not work.
Do You Have What It Takes?
Investing in real estate is not for the faint hearted, the non-risk takers. It is for investors who are in it for the long haul, who can easily sit on their investment (if need be) until the market shifts in their favor. It also is for those who truly enjoy this type of investment. They are the ones who are the most successful in real estate investing.
You must be willing to invest time — upfront and before each potential investment. If you do not take the time to research the properties and your target market, you probably will not be very successful. You also must gather knowledge on how to make a real estate deal that works in your favor. That requires educating yourself to understand the jargon and game rules. Today, it takes a careful, methodical approach to residential real estate investing, especially when acquiring your first property.
Besides needing time and money, being a risk taker, and being willing to commit to a long-term investment, if needed, there are five additional factors you must consider each time before you make an investment in residential real estate.
Supply and Demand — Where Is the Current Market?
The economics of supply and demand is what makes the long-term investors successful in residential real estate. They are willing to weather the ups and downs of the real estate market, waiting for an advantageous market to sell their property.
Supply and demand is influenced by many economic factors, which in turn affects the residential real estate market. Well-located residential real estate will endure fluctuations in the market and continue to appreciate in value. Knowing your market means knowing when to buy or not to buy, which deals will work when, and when to sit on an investment or sell it.
Your Creativity
Another factor to consider is your own creativity in managing your investments. Residential real estate is one type of investment that allows for a lot of creativity:
• You may invest for the long term, renting the property to continue making a profit while waiting to sell at a more advantageous time. You can purchase a home to fix up and resell immediately for a profit.
• There are many financing options available for residential real estate, allowing for even more creativity. You also can invest on your own, with a group of partners, with a corporation, or even with a Real Estate Investment Trust (REIT — a mutual fund with real property assets or mortgage securities).
• There is an abundant variety of residential real estate types in which to invest — single-family homes, townhouses, condominiums, and duplexes.
The more creative you are in creating and managing your real estate investments, the more profitable and successful you will be.
Other People’s Money
A third factor is knowing how you can use other people’s money to your advantage without landing in foreclosure, as so many people now are who subscribed to the “get rich quick” schemes during the boom.
You can begin with only a few thousand dollars, using other people’s money to underwrite the remaining mortgage. You must know all the different ways available to finance your investment. This goes back to taking the time to educate yourself, before you begin investing, and creatively making the best use of financing.
Other People’s Time
Whether you are fixing up real estate to sell or renting it, it will take time, effort and management. If you already have a full-time job and a family, you probably cannot do it all yourself, and I doubt you wish to be woke up at 2 a.m. by a renter with a plugged toilet.
Using contractors to fix up the property or experienced property managers to handle your rental real estate makes for less profit in your pocket on your individual investment properties. However, it frees up your time to invest in more properties, making your overall profits much higher.
Your Tax Advantage
Residential real estate investing is quite unique. It offers you tax write-offs not available in other types of investments. There are many deductions available to you — deducting the mortgage interest or refinancing without being taxed are just two examples. There are many benefits to real estate investing that reduce your tax liability and increase your profits.
If you believe residential real estate investing is for you, begin by learning more about it. There are thousands of books and resources on the topic. Stay away from anything that sounds too good to be true. It probably is, especially in today’s real estate market.
John Harris is an expert researcher and writer on real estate topics such as economics, credit improvement tips, home selling advice and home buying preparations. For more information please visit [http://www.twtrealestate.com/oceanside-homes.html]Homes for Sale in Oceanside
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Embrace Opportunity with Online Real Estate Courses

Embrace Opportunity with Online Real Estate CoursesBy [http://ezinearticles.com/?expert=Rob_Thomas]Rob Thomas
Online real estate courses offer regular people the opportunity to take control of their life and get into real estate if that is what they would like to do. Real estate can be a very profitable and enjoyable business, and many people want to break into the field.
Online real estate courses offer people who already have jobs the ability to get educated in real estate while continuing their current job. This dual job and education allows people to continue to earn the money they need to pay the bills, while furthering their education to obtain a job that they love.
Real estate courses online often vary from state to state, but they are available everywhere. These are usually distance learning courses that are done online or through email. Online real estate courses really are convenient for the working professional or even a stay at home mother or father who wants to build a career in real estate for him or herself.
Many online real estate courses allow you to move at your own pace, so that you can get the real estate education that you need in your own time, so that you are as well prepared to get your realtors license as possible. Usually, at the end of online real estate courses individuals who have completed them are required to meet at a central location to take final exams to receive their license or certificate so they can begin to sell real estate.
Online real estate courses usually are not all that expensive, and their cost really is worth the convenience of being able to get the education you need to succeed in the real estate field. Breaking into the business could be very difficult if there weren't online courses like this, because it would be hard to maintain a household and continue paying bills while going to school. Online real estate courses allow people to change professions at any time during their life, so that they aren't stuck with a job that they don't love!
Real estate is a great business, and it's even better because people can now enter the real estate business with confidence, no matter how old they are, what their past professions were, etc. Online courses really are a great opportunity for people to seize the moment and really change their lives!
Rob Thomas is a freelance writer and the webmaster for [http://www.a1-online-distance-learning.info]Online Distance Learning, where you'll find more free articles on distance learning and online education opportunities.
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Propertycasting - The Commercial Application of Podcasting for the Real Esate Industry

Propertycasting - The Commercial Application of Podcasting for the Real Esate Industry
By [http://ezinearticles.com/?expert=Ryan_Hoback]Ryan Hoback

Propertycasting is the commercial application of podcasting for the real estate industry. Propertycasting involves the distribution and publishing of audio and video feeds, that offer real estate information delivered over the Internet, for on demand listening.

This is a new step in the evolution of on-demand real-esate information delivery, making it accessible, informative, useful and appealing. This mix presents the real estate industry with a very unique opportunity to reach its target audiences through this new medium. Those individuals, who are already seeking real estate information actively, will use RSS subscription technology built into each podcast feed, to receive information immediately as it is updated by the real estate firm. With one click of a button, a user can subscribe to a feed that may be interesting, and any related information that is ever updated to that feed will be automatically processed to their personal aggregator. An aggregator is able to subscribe to a feed, check for new content at user-determined intervals, and retrieve the content.

To take this process one step further, podcasting publishes each feed with the capability to be transferred to any portable audio or video device. So with the growth of the ipod and all the other portable media devices, you have the ability to grab propertycasts and place them on your portable player for listening or viewing. Most users attach their portable players to their computers daily or weekly, and once the player is attached they automatically receive the new propertycast updates.

Here is a sample of a propertycast:
http://whatiwantpodcasting.com/pods/video/PropertyCast_Large_Windows.wmv

The flexibility of this medium is what will drive the growth of propertycasting tremendously over the next few years. Currently the most useful application for real estate organizations worldwide, is complimenting already existing real estate web pages with audio and video feeds. These propertycasts detail important notices and information that may be prudent, along with a quick marketing pitch from a broker. These can be used for seasonal marketing activities, special events, or monthly updates.

For years and years, associates and brokers have been sending out property listing updates. These propertycasts can be inserted into your existing listing pages. Most firms have numerous web pages which deliver real estate information in text and pic format. By providing an audio or video link on that page it gives the user a different and much more effective format for receiving the information. This is also a great way to teach your existing users how to start utilizing propertycasting services.

The popularity of portable on demand information will grow even greater as wireless internet services continue to flourish across the country. These portable devices will no longer have to be connected to the internet; they will receive information wirelessly as it is updated. In addition, as cell phones and portable devices continue to merge together, the market grows larger.

For firms that have thousands of employees or brokers, the distribution of company information is very important, and once again this offers each institution a method of on-demand delivery which is convenient to all.

There are numerous uses for propertycasting currently, and over the next few years it will explode in popularity. It is beneficial to institutions as well as the consumer, and it will be seen as a great tool in any real estate organizations’ operations.

Ryan Hoback is CEO of What I Want Podcasting.

They specialize in developing podcasts & nanocasts for a wide range of industries. Their development team guides each client through the process of creating podcasts that incorporate brand integration and deliver the target message through a positive visual & listening experience. http://www.WhatIWantPodcasting.com

[mailto:info@WhatIWantPodcasting.com]info@WhatIWantPodcasting.com

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Life and times of a New Real Estate Agent in the 21st Century

Life and times of a New Real Estate Agent in the 21st CenturyBy [http://ezinearticles.com/?expert=James_Christensen]James Christensen
What does a Real Estate Agent Do?
One of the most complex and significant financial events in peoples’ lives is the purchase or sale of a home or investment property. Because of this complexity and significance, people typically seek the help of real estate brokers and sales agents when buying or selling real estate.
Real estate brokers and sales agents have a thorough knowledge of the real estate market in their communities. They know which neighborhoods will best fit clients’ needs and budgets. They are familiar with local zoning and tax laws and know where to obtain financing. Agents and brokers also act as intermediaries in price negotiations between buyers and sellers.
Real estate agents usually are independent sales workers who provide their services to a licensed real estate broker on a contract basis. In return, the broker pays the agent a portion of the commission earned from the agent’s sale of the property. Brokers are independent businesspeople who sell real estate owned by others; they also may rent or manage properties for a fee. When selling real estate, brokers arrange for title searches and for meetings between buyers and sellers during which the details of the transactions are agreed upon and the new owners take possession of the property. A broker may help to arrange favorable financing from a lender for the prospective buyer; often, this makes the difference between success and failure in closing a sale. In some cases, brokers and agents assume primary responsibility for closing sales; in others, lawyers or lenders do. Brokers supervise agents who may have many of the same job duties. Brokers also supervise their own offices, advertise properties, and handle other business matters. Some combine other types of work, such as selling insurance or practicing law, with their real estate business.
Besides making sales, agents and brokers must have properties to sell. Consequently, they spend a significant amount of time obtaining listings—agreements by owners to place properties for sale with the firm. When listing a property for sale, agents and brokers compare the listed property with similar properties that recently sold, in order to determine a competitive market price for the property. Once the property is sold, both the agent who sold it and the agent who obtained the listing receive a portion of the commission. Thus, agents who sell a property that they themselves have listed can increase their commission.
Most real estate brokers and sales agents sell residential property. A small number—usually employed in large or specialized firms—sell commercial, industrial, agricultural, or other types of real estate. Every specialty requires knowledge of that particular type of property and clientele. Selling or leasing business property requires an understanding of leasing practices, business trends, and the location of the property. Agents who sell or lease industrial properties must know about the region’s transportation, utilities, and labor supply. Whatever the type of property, the agent or broker must know how to meet the client’s particular requirements.
Before showing residential properties to potential buyers, agents meet with them to get a feeling for the type of home the buyers would like. In this pre-qualifying phase, the agent determines how much the buyers can afford to spend. In addition, the agent and the buyer usually sign a loyalty contract, which states that the agent will be the only one to show houses to buyers. An agent or broker then generates lists of properties for sale, their location and description, and available sources of financing. In some cases, agents and brokers use computers to give buyers a virtual tour of properties in which they are interested. With a computer, buyers can view interior and exterior images or floor plans without leaving the real estate office.
Agents may meet several times with prospective buyers to discuss and visit available properties. Agents identify and emphasize the most pertinent selling points. To a young family looking for a house, they may emphasize the convenient floor plan, the area’s low crime rate, and the proximity to schools and shopping centers. To a potential investor, they may point out the tax advantages of owning a rental property and the ease of finding a renter. If bargaining over price becomes necessary, agents must follow their client’s instructions carefully and may have to present counteroffers in order to get the best possible price.
Once both parties have signed the contract, the real estate broker or agent must make sure that all special terms of the contract are met before the closing date. For example, the agent must make sure that the mandated and agreed-upon inspections, including that of the home and termite and radon inspections, take place. Also, if the seller agrees to any repairs, the broker or agent must see that they are made. Increasingly, brokers and agents are handling environmental problems as well, by making sure that the properties they sell meet environmental regulations. For example, they may be responsible for dealing with lead paint on the walls. While loan officers, attorneys, or other persons handle many details, the agent must ensure that they are carried out.
In summary:
• Real estate brokers and sales agents often work evenings and weekends and usually are on call to suit the needs of clients.
• A license is required in every State and the District of Columbia.
• Although gaining a job may be relatively easy, beginning workers may face competition from well-established, more experienced agents and brokers in obtaining listings and in closing an adequate number of sales.
• Employment is sensitive to swings in the economy, especially interest rates; during periods of declining economic activity and increasing interest rates, the volume of sales and the resulting demand for sales workers fall.
Advances in telecommunications and the ability to retrieve data about properties over the Internet allow many real estate brokers and sales agents to work out of their homes instead of real estate offices. Even with this convenience, much of the time of these workers is spent away from their desks—showing properties to customers, analyzing properties for sale, meeting with prospective clients, or researching the state of the market.
Agents and brokers often work more than a standard 40-hour week. They usually work evenings and weekends and are always on call to suit the needs of clients. Although the hours are long and frequently irregular, most agents and brokers have the freedom to determine their own schedule. Consequently, they can arrange their work so that they can have time off when they want it. Business usually is slower during the winter season.
What are the Required Training, Qualifications and path for advancement?
In every State and the District of Columbia, real estate brokers and sales agents must be licensed. Prospective agents must be high school graduates, be at least 18 years old, and pass a written test. The examination—more comprehensive for brokers than for agents—includes questions on basic real estate transactions and laws affecting the sale of property. Most States require candidates for the general sales license to complete between 30 and 90 hours of classroom instruction. Those seeking a broker’s license need between 60 and 90 hours of formal training and a specific amount of experience selling real estate, usually 1 to 3 years. Some States waive the experience requirements for the broker’s license for applicants who have a bachelor’s degree in real estate.
State licenses typically must be renewed every 1 or 2 years; usually, no examination needs to be taken. However, many States require continuing education for license renewals. Prospective agents and brokers should contact the real estate licensing commission of the State in which they wish to work in order to verify the exact licensing requirements.
As real estate transactions have become more legally complex, many firms have turned to college graduates to fill positions. A large number of agents and brokers have some college training. College courses in real estate, finance, business administration, statistics, economics, law, and English are helpful. For those who intend to start their own company, business courses such as marketing and accounting are as significant as courses in real estate or finance.
Personality traits are equally as important as one’s academic background. Brokers look for applicants who possess a pleasant personality, are honest, and present a neat appearance. Maturity, good judgment, trustworthiness, and enthusiasm for the job are required in order to encourage prospective customers in this highly competitive field. Agents should be well organized, be detail oriented, and have a good memory for names, faces, and business particulars.
Those interested in jobs as real estate agents often begin in their own communities. Their knowledge of local neighborhoods is a clear advantage. Under the direction of an experienced agent, beginners learn the practical aspects of the job, including the use of computers to locate or list available properties and identify sources of financing.
Many firms offer formal training programs for both beginners and experienced agents. Larger firms usually offer more extensive programs than smaller firms. More than a thousand universities, colleges, and junior colleges offer courses in real estate. At some, a student can earn an associate’s or bachelor’s degree with a major in real estate; several offer advanced degrees. Many local real estate associations that are members of the National Association of Realtors sponsor courses covering the fundamentals and legal aspects of the field. Advanced courses in mortgage financing, property development and management, and other subjects also are available.
Advancement opportunities for agents may take the form of higher rates of commission. As agents gain knowledge and expertise, they become more efficient in closing a greater number of transactions and increase their earnings. In many large firms, experienced agents can advance to sales manager or general manager. Persons who have received their broker’s license may open their own offices. Others with experience and training in estimating property value may become real estate appraisers, and people familiar with operating and maintaining rental properties may become property managers. Experienced agents and brokers with a thorough knowledge of business conditions and property values in their localities may enter mortgage financing or real estate investment counseling.
Written for http://www.e-realestatelicense.com By James ChristensenReal Estate Expert and educator. Our training site http://www.e-realestatelicense.com offers a valuable service to individuals looking to get into the Real Estate industry.
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Real Estate Investing LIES Unveiled

Real Estate Investing LIES UnveiledBy [http://ezinearticles.com/?expert=Steve_Majors]Steve Majors
Let's get REAL about something - and quelch the LIES you have been told about Real Estate Investing!­
What I am going to reveal to you are some basic truths about Real Estate investing - truths that may totally affect the Real Estate investments you have now - and certainly I intend to modify the way you do Real Estate investing in the future.
Let's get right to it - and into the heart of the real estate investing issue.
You have been programmed all your life to become what you are today - from school, friends, relatives and, yes, your parents.
Recent studies show that you are who you are now, more from what you learned prior to age 8 than in anything else you have learned since.
Now, that may surprise you, but it is true that what you learned at the earliest ages affects the way you make Real Estate investments today, and the type of Real Estate investing success you will have going forward!
Yes, that's a bit shocking.
You see, if you grew up in an environment where you heard things like
"We can't afford it", "Be sure you have saved enough and have the cash to buy it" (i.e., never use credit), or numerous other phrases that you now hear yourself saying (you know what I'm talking about - those times you catch yourself "becoming your parents"), it is because of your early programming (from 0-8 years) and what you were told about money, success, and life in general.
That is controlling your current income - and your success - or lack of it...
The things you were told at that early, most influential age, are now creeping out and affecting how successful you are in business, in life and yes, in your Real Estate investing.
THERE IS GOOD NEWS
The greatest thing about this fact - as horrible as it seems - is that you can change the 'programming' - you have the power to do it!
You can reprogram yourself in any way you want - have anything you want - do anything you want.
All it takes is simply to 'reinstall' the right kind of thinking.
And, it is easier than you might think!
One of the best ways to do that is to get a CD audio set from someone you like to listen to - someone that thinks positively and speaks of the life you want to live. Many home study courses are available (yes, including mine) that are designed to inspire and motivate you, while they teach you the methods and secrets of real estate investing.
Purchase one - listen to it, over and over - until you hear yourself speaking that way, too.
You see, we are all simply creatures of habit and environment - if we allow junk to get into our heads, all we will ever say is junk coming out.
If all you listen to is the bad stuff in life (like the TV news, most 'talk radio' shows, those TV 'real life' shows that end up in fights - you know the ones., and even violent movies where the language is nothing you'd ever expect to hear from your own lips.), that is exactly what you will wind up sounding like!
It is true - 'you are what you eat' - and that counts just as much for what you put in your ears as it does for what you put in your mouth!
If you spend your time around 'bar people', you'll speak and act like them. Not that there's anything wrong with that, as long as you made a conscious thought that it is what you want, but I think you'd be much more successful at Real Estate investing if you were listening to a successful person teaching you about Real Estate Investing!
Now, let's get right to the point about the various methods and concepts you have learned about Real Estate Investing.
You may call yourself a 'real estate investing expert', but if you have to get up every morning and wonder where your next check is coming from, you aren't making real estate investments, you are being employed in a Real Estate Investing JOB!
Yes, that's a hard-hitting statement.
You see, I want you to 'get real' with yourself and simply admit it - Real Estate investing is when you put money into a Real Estate investment and then get some money out - 'real estate investing' defined.
Yet, it seems that most people I meet want to attend my real estate training or purchase my real estate courses that have to do with 'No Money Down' (NMD) real estate investing.
Now, that kind of talk just proves the point - you can reprogram yourself to speak a different language - even if it doesn't make sense!
A bunch of 'gurus' have told you over and over again that 'No Money Down' is real estate investing - even though you learned at an early age that 'invest' means to put money into something and get money out (see http://dictionary.reference.com/search?q=invest for other definitions - none of them say 'No Money Down'...)
Now, it's not that 'NMD Real Estate investing' is all bad - heck, my students and I make several thousand dollars from these types of 'Real Estate investing' transactions every year, too.
Just don't lie to yourself and say they are 'real estate investments', we know very clearly that these are simply 'earned income' from one portion of your real estate investing business - the real estate 'job' portion - earned while in transition from your 'corporate job' to your 'real estate investing job' and on the road to true Real Estate Investing.
In other real estate investing articles, I cover some of the methods and techniques you, too, can explore while moving from your 'corporate job' to your 'real estate investing job' and you'll learn some insider secrets for taking that leap quickly.
Steve Majors - The Lazy InvestorProfit from Real Estate Investment articles, real estate investing information and news from one of the most creative investors on the planet ~FREE MEMBERSHIP & real estate training course~ http://SteveMajors.com
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Cash Back Rebates to Home Buyers - Why Most Agents Aren't Talking!

Cash Back Rebates to Home Buyers - Why Most Agents Aren't Talking!By [http://ezinearticles.com/?expert=Bill_Brynelsen]Bill Brynelsen
Ask just about any traditional real estate agent what he / she thinks about giving back part of their commission to their home buying clients in the form of a real estate rebate and you just put a stick in a hornet’s nest. Most Big Brand Name Real Estate companies continue to do business the traditional way and get away with out offering real estate rebates to their home-buying clients.
One of the biggest reasons traditional agents get away with not offering rebates is because most homebuyers are not very well informed about buyer rebates. How they work, where the money comes from, will a rebate affect the price they may pay for that next home or are they even legal in the first place? While there is no law on the books in any state that says real estate agents must offer a rebate. Homebuyers should at least know they exist and have some basic knowledge about how rebates work so they may make an informed decision when it comes to using an agent that offers a rebate or one that does not.
To be honest, just the word rebate sounds cheap. For me it congers up images of my dad mailing in a rebate form so he can get two bucks back on a case of Pennzoil. And, there is nothing wrong with that. A penny saved is a penny earned.
But, rebates provide homebuyers with far more than just a couple of bucks back. A good homebuyers rebate can add up to thousands of dollars off the price of your next home purchase. Rebates to homebuyers can range from one half of one percent to as much as two percent of the homes purchase price. The rebate my company offers (New Market Realty, Inc.) is 1.5%. So, on the purchase of a $300,000 home my buyer clients will receive a check and lower the price of their new home by $4,500. Now that’s money any homebuyer should want to get back!
But, it’s been very slow going for real estate companies offering rebates. Even with Nontraditional real estate companies advertising heavily online they still represent just a fraction of the $61 billion in commissions that were paid out last year in the U.S. real estate market. Discounting transactions totaled just 2 percent of home sales, according to results of a study issued this summer (2005) by the U.S. Government Accountability Office.
The controversy surrounding rebates has The National Association Of Realtors taking a buyer-beware attitude. Mr. Stevens, current president of the NAR has been quoted as saying "In some senses, you get what you pay for." Mr. Stevens has also been quoted, as saying home buying is "too big a transaction not to work with an expert." Well, Mr. Stevens I personally don’t feel we, as Realtors should be trying to scare homebuyers back into the dark ages of traditional real estate. I also would like my readers to note that I am a dues paying, member in good standing, licensed Realtor® I also consider myself an expert on the home selling and buying process.
Just for the record. All real estate agents under the rules of the NAR and state law are required to take and pass a state test in order to receive a real estate license. And, all real estate agents must take state required continuing education classes in order to keep their real estate license and to stay current with real estate practices in their state.
For Mr. Stevens or any traditional real estate agent for that matter, to imply or suggest that a real estate agent offering buyer rebates or listing homes for a flat fee is some how less of an expert than a traditional real estate agent is nothing but a cheap shot and a pitiful attempt to scare home buyers and sellers into believing they will be receiving inferior service and poor real estate market knowledge.
Traditional real estate agents love to use the word discounters. It’s their way of cheapening the innovative ways we so called discounters have come up with to save real estate consumers (buyers and sellers) thousands of dollars on a single real estate transaction.
The rebate process is very simple. In any real estate transaction there is a buyer and a seller. A listing agent works with the seller and a buyer’s agent works with the buyer. The party / person who pays all the commission in a real estate transaction is the home seller. Buyers never pay a commission. Now that we have that covered how about we walk through some basics of buying a home.
When working as a buyer’s agent I am never concerned about the amount of commission a listing agent has charged a home seller to list their home. It just doesn’t matter. 3%, 4% or 6% I don’t care. The only thing I am concerned with when it comes to commissions is how much that listing agent is going to pay me out of that 3%, 4% or 6% they have charged the home seller.
In my local real estate market in the state of Illinois I can expect to be paid on average 2.5% of the homes selling price from the listing agent.
If you were to purchase a home using me as your buyers agent for a selling price of $300,000. I would be paid a commission of $7,500. 2.5% buyers side commission x $300,000 homes selling price = $7,500. Now, lets give you back some money in the form of a buyers rebate.
But, before we do lets just do a little review. I don’t want you to miss anything. First, we don’t care what the listing agent charged the home seller. Second, all we care about is how much that listing agent is going to pay me working as your buyer’s agent. Third, we now know that I will be paid 2.5% of the homes selling price from the listing agent. Forth, the amount I will be paid is $7,500, which is funded from the total commission charged to the home seller.
Ok, now for your share of all this money. It doesn’t matter what your rebate amount is. The math stays the same. The only thing that will change is the amount of cash you get back from your buyers agent and that depends on the amount of rebate being offered. As I have mentioned earlier in this article I give my home buying clients a 1.5% rebate.
So, pick up your trusty calculator and take your new homes selling price of $300,000 multiply that by 1.5% and you should come up with $4,500.
Now subtract the $4,500 from my buyer’s agent commission of $7,500 and you should come up with $3,000.
Your buyer’s rebate is $4,500. Your welcome. And, my buyer’s agent commission is $3,000. That’s all there is to it. Now you know how buyer rebates work. Where the rebate money comes from and that a rebate will not increase the price of your new home because it comes out of the commission the home seller agreed to pay before you even looked at the home.
It even works for brand new construction. Because most homebuilders will pay a commission to a buyer’s agent of from 2% to 3% depending on what area of the country you’re in. Because of fair housing laws the Builder's published price list guarantees that everyone pays the same price. With or with out a Realtor. And, no, the builder will not reduce the price of your new home if they don’t pay a real estate commission.
If you are wondering if rebates are legal in your state you may want to refer to Money Magazine’s 2005 Real Estate Guide. Which reported that rebates were banned in Alaska, New Jersey, Kansas, Oklahoma, Rhode Island, Louisiana, South Carolina, Mississippi, West Virginia and Missouri. Rebates were reported as restricted to credits at closing in Alabama, South Dakota, Oregon and Tennessee.
In my home state of Illinois the web site I direct people to is the Illinois Department of Financial & Professional Regulation. www.idfpr.com./
Once on this official state site I tell folks to look in the navigation bar on the left and click on the link that reads General FAQs. On the next page that opens click on the link that says Real Estate FAQs. The next page that opens is titled Division of Banks and Real Estate Real Estate Frequently Asked Questions INTRODUCTION. Scroll down to GENERAL PRACTICES. On line / question number six. That question will read as follows.
May compensation be paid to a principal to a transaction, even if the principal does not have a real estate license?
The Answer: Yes. Section 10-15(c) of the Act authorizes the offer or payment of compensation (“prizes, merchandise, services, rebates, discounts or other consideration”) to an unlicensed person who is a party to a contract or lease. Of course, such compensation is not required. The payment of such compensation should be pursuant to the negotiations on the transactions. The payment of such compensation is not limited to payment by a licensee to the licensee's client - in other words, a seller's agent may pay compensation to an unlicensed buyer.
But I just don’t stop there. On the very next line / Question number seven. That question will read as follows: May a licensee offer compensation to solicit clients?
The Answer: Yes. Section 10-15(d) of the Act authorizes the offer or payment of compensation (“cash, gifts, prizes, awards, coupons, merchandise, rebates or chances to win a game of chance”) to a consumer as an inducement to that consumer to use the services of a licensee, even if the consumer and licensee ultimately do not enter into a client relationship. Any advertisement under this Section must also comply with all requirements regarding real estate advertisements. Also, care should be taken not to offer compensation to unlicensed persons for referrals of clients - this is prohibited.
This seems to clear up any question as to real estate rebates being legal or not in my home state of Illinois.
Some words of caution if you decide to use an agent offering any type of buyers
Bill Brynelsen is a real estate agent in Spring Grove Illinois. His forth coming book “The Truth Behind The For Sale Sign”©. Gives readers valuable insight into the tricks real estate agents will use to get your listing/money. Visit Bills real estate web site at http://www.mypadd.com or email him your real estate questions at [mailto:info@mypadd.com]info@mypadd.com You just may save yourself thousands on your next real estate transaction.
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Real Estate Commission - A Corrupting Influence

Real Estate Commission - A Corrupting InfluenceBy [http://ezinearticles.com/?expert=Peter_Mericka]Peter Mericka
Real estate commission is the way in which real estate agents are paid for the services they provide. They receive a percentage of the price received for the property. Effectively, the real estate agent requires the seller of a property (the vendor) to sign over to the real estate agent a part of the property being sold.
Another way of looking at it is to say that the real estate agent, through the wording of the listing contract, effectively has his name added to the title deed of the vendor’s property, so that the real estate agent becomes a part-owner of the property. When the property sells, the real estate agent receives a payment that represents his share in the vendor’s property.
Most readers will be aware of the arguments in favour of real estate sale commissions, so I won’t discuss those here. My focus is on the ways in which the sale process can be skewed against all parties involved, when the motivation to win a commission takes precedence over more important considerations.
Commission is a “winner-takes-all, loser gets nothing” situation. This increases the pressure on the real estate agent to secure a sale. Time is also a problem. If the real estate agent cannot secure a sale within a time acceptable to the vendor, the vendor may take the property off the market, or away from the real estate agent’s agency. This will result in a total loss for the real estate agent.
Finally, the vendor becomes an obstacle between the real estate agent and his commission goal. In order to receive payment for his share of the vendor’s property, the real estate agent must receive an offer to purchase within the available time, but the offer must be accepted by the vendor. If the vendor decides that the offer is not acceptable, then the real estate agent loses.
In order to win the gambling game that is real estate sales, the real estate agent may decide to tip the odds in his favour – and there are numerous ways in which this can be done.
At the listing stage the real estate agent may use improper means to win the listing contract. These include over-quoting on valuation, and offering dodgy sales figures.
During the sale process the real estate agent may be tempted to tell potential purchasers things that are untrue. I have seen many sale contracts with clauses designed to protect real estate agents against the consequences of false statements. Known as “porkies clauses”, they invariably state that the purchaser acknowledges that any information provided to the purchaser by the real estate agent is provided on the understanding that the purchaser will not be relying on it for any purpose.
When a purchaser has submitted an offer, and the purchaser cannot be convinced to increase her offer, the real estate agent may be tempted to pressure the vendor into accepting what would otherwise be unacceptable. Observations, such as “the market has softened” or “the market has spoken to us” are used by real estate agents to convince vendors that the real estate agent’s high estimation of value can no longer be relied upon, and that the vendor should now accept what the vendor believes is an unacceptably low offer.
For some years now, I have been arguing that real estate services should be provided on a fee-for-service basis.
I will explore the replacement of real estate sale commissions with a fee-for-service structure further in future articles.
Melbourne Lawyer Peter Mericka B.A., LL.B is a real estate lawyer and consumer advocate. He is a former police detective, with experience in areas of criminal investigation and police internal investigations. Peter is the Director of Lawyers Real Estate, a law firm that sells real estate and offers conveyancing services. He also instructs in real estate conveyancing at the Leo Cussen Institute, Melbourne, and edits the [http://www.AustralianRealEstateBlog.com.au]http://www.AustralianRealEstateBlog.com.au.
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