Should You Use A Discount Real Estate Broker To Sell Your Home?

Should You Use A Discount Real Estate Broker To Sell Your Home?
By [http://ezinearticles.com/?expert=Crystal_L._Cox]Crystal L. Cox

As a real estate broker owner, I have to say that a discount broker will not serve your interests any better than a traditional real estate broker. I am an advocate of you, the real estate seller, selling your home without a real estate agent.

In today's real estate market, where most all of real estate buyers are looking for real estate on the Internet, and where most real estate brokers do not understand Internet marketing, it simply is in your best interest to sell your real estate without a real estate agent.

A discount real estate broker can give you the comfort of knowing that you are paying less in commission. However, you may be taking a lower sales price, and you are still paying another real estate agent that may bring a buyer. There was a news show a while back about one particular discount broker, that said that they charged a flat fee to list the home, but they charge more, if they find a buyer or if another real estate agent finds buyer. This really is not too different from traditional real estate.

Discount brokers prey on the fact that you are discouraged with traditional real estate agents and that you want to save money. With the economy, the way that it is, real estate brokers need new tactics to get your business. And hanging a sign out, putting up a website that suggests that they are a discount real estate broker is just the latest and greatest way to get you to list your real estate with them instead of your local real estate agent.

Also, some of the discount brokers brag about it buyer's rebate that they will give. So, if they find a buyer than you will pay them a separate commission on that. This will be paid, by you, on top of your flat fee, and then they will take some of this money and give it back to the buyer in the form of a rebate. This of course is only in the states that allow buyers rebates.

A buyer's rebate, given by a discount real estate broker, does not help you, the seller. I think what looks attractive to some sellers is that these discount brokers are not only cheaper than their local real estate office, but they brag about their Internet marketing skills and what they can offer you in the form of securing a buyer. The thing to consider here is the fact that you can find your own buyer, you can build your own website, and not only will you save in commission, but you may just get a higher purchase price.

And when you sell your home yourself and use a real estate attorney, you will make more money, and you will sleep well at night knowing that you did everything right.

Remember folks, real estate agents go to school, in my state anyways, one week, and they do not have a real background in real estate law. Some Realtors tried to tell you that, if you don't list with them than you'll have to hire an attorney and attorney will cost a lot of money. The truth about that is that you should hire an attorney either way. And this goes for discount brokers as well as traditional real estate brokers. You NEED to have a real estate attorney look over all of your real estate document transactions before you sign.

In conclusion, do not let your discouragement of the real estate industry and you past experience with real estate agents drive you to a discount real estate brokers. They really are the same game in a different disguise.

Crystal L. Cox is the Real Estate Broker Owner of Ten Lakes Realty specializing in marketing property - real estate on the Internet. She is an advocate for Consumer Protection in Real Estate. With the Power of the Internet, You Really do not need a Realtor to Sell your home for you. Sell your home yourself with Internet Marketing. http://www.FSBOInternetMarketing.com Crystal is an Internet Real Estate Marketing consultant and can help you get your real estate found on the Web.

Article Source: http://EzineArticles.com/?expert=Crystal_L._Cox http://EzineArticles.com/?Should-You-Use-A-Discount-Real-Estate-Broker-To-Sell-Your-Home?&id=859463

Real Estate Development - When is the Right Time to Get Started in Property Development?

Real Estate Development - When is the Right Time to Get Started in Property Development?
By [http://ezinearticles.com/?expert=Adrian_Zenere]Adrian Zenere

The media is currently full of real estate 'doom and gloom' - real estate repossessions and arrears are up and real estate prices are down ... its almost as if the 'sky is about to fall'! This situation has seen many real estate developers, and property investors generally, leave the market - and for those thinking of starting out in real estate development, these are scary times indeed.

What seems like the worst time to get into real estate development can, in reality, be the best time. Successful real estate developers today realize that they can use time to their advantage - their real estate development projects will typically not be ready for sale or rent for 2 to 4 years from inception. So if they have bought well, they are less likely to be affected by the economic situation at the time of purchasing their real estate development site.

In fact, a weak market is a real estate developer's paradise, because a weak market is a buyer's market, and one of the first steps to any real estate development project is securing a viable real estate development site on the best possible terms.

Although we know that the real estate development business is cyclical, and many parts of the world are in a property downturn, we also know from history that knowledgeable real estate developers are successful in any market - falling, flat or rising.

We're working towards what we believe the economic conditions will be in 12 to 36 months time. Indeed we ourselves are still active in the market - seeking Council permission for a number of real estate development projects. This gives us the opportunity to act quickly and build our approved real estate development projects when the market does become buoyant.

It is our opinion that the following market signals are some of the key factors that will lead to increased future opportunities, especially for real estate developers:

· The pent up demand for housing. In March 2008 leading Australian economics forecaster, BIS Shrapnel chief economist Dr Frank Gelber argued that housing prices across Australia will rise by 30% to 40% over the next five years because of the built-up shortages of housing.

· The current Federal Government has stated that they will work towards increasing Housing Affordability and have begun to announce incentives including Tax Credits of $6000 per year if the housing is rented at 20% below market rent.

· We believe that an increasing number of people, in the short to medium term, are likely to require the rental accommodation that we intend to build. This is due to either their financial stress (can't afford to purchase a home) and/or demographic trends (including Gen-Ys who are less likely to buy Real Estate).

Even if our 'crystal ball' is incorrect, we know we have the resources to hold real estate development sites during possible further market fluctuations to come, and increasing rents are certainly helping with that!

Our belief is that this is a golden time to act - perhaps a once in a generation opportunity. Maybe it is not the time to sell completed real estate development projects at the moment, but it is certainly a great opportunity to secure the development site and obtain development planning approval. Now this strategy is not for everyone - you must have the necessary resources to hold the development site and especially the knowledge of real estate development to take advantage of these opportunities.

The best approach for anyone contemplating real estate development will depend on his or her own personal and financial circumstances, but the key message here is that you must do something!

There are many strategies that small real estate developers are currently using, if they don't have the resources to complete a real estate development project right now, including to turn their real estate knowledge into cash by locating ideal property development sites, perhaps taking out an option on the site, and on-selling the 'Development Permit Approval' to someone who does have the resources.

Successful real estate developers know that times of opportunity like this only come along once in a while, and they're taking action so they don't miss the boat.

Regardless of your immediate financial situation, this is the perfect time to leverage your real estate development knowledge into current or future income. If you have any doubts about your ability to do this, or you would like an experienced real estate development mentor to guide you, act now to get the knowledge and mentoring that you need. There is no time to waste!

Adrian Zenere is a Registered Architect and Licensed Home Builder along with his wife Amber they have built a multi-million dollar sustainable property portfolio through Real Estate Development. Together they run their own architectural practice http://www.archizen.com.au specializing in Holistic Architecture combining eco sustainable development with feng shui principles and creating harmonious living that is respectful of our environment. Their projects are regularly featured in the Australian Property Investor, Luxury Home Design, Lifestyle Magazine, Home at Yellow and several newspapers.

They are also co-founders of the Real Estate Development Club where they use their real estate development knowledge and experience to help real estate investors become successful real estate developers. To have a closer look at Adrian and Amber's entire Real Estate Development process and download your FREE REAL ESTATE DEVELOPMENT REPORT and other valuable real estate development resources visit: http://www.RealEstateDevelopmentClub.com

Article Source: http://EzineArticles.com/?expert=Adrian_Zenere http://EzineArticles.com/?Real-Estate-Development---When-is-the-Right-Time-to-Get-Started-in-Property-Development?&id=1121720

Real Estate Website Promotion is Easy

Real Estate Website Promotion is Easy
By [http://ezinearticles.com/?expert=Rick_Hendershot]Rick Hendershot

If you are a Real Estate Agent, Real Estate Broker, or provide a Real Estate service you know how important effective real estate web promotion is to your business. The large number of people searching the internet for local, national and international real estate information can simply not be ignored.

At the same time you may think effective real estate website promotion is too difficult to master, too expensive to afford, or just too mysterious to understand - an area reserved for experts in the field of search engine marketing.

Like most practitioners of highly specialized skills, search engine marketing specialists have a vested interest in making their field seem mysterious and difficult to master. But it is not really that mysterious. It is possible for anyone to dominate the search engines in virtually any local market. All it takes is a bit of common sense and some hard work.

The principles involved in getting good positioning for your real estate website are quite simple and straightforward. They are the same principles that apply to search engine marketing for any website and it is actually quite easy to apply these principles to real estate websites. Many real estate agents have simply given up trying to score well in the search engines for local real estate searches because they don't properly understand the process.

But think about it for a minute. When you do a search in Google for "real estate Phoenix" or "Banff real estate" or "Halifax real estate" or "Fort Lauderdale real estate", and you see the same real estate agents or agencies coming up on the first page week after week, how do you think they got there? What magical real estate website promotion formula are they using or who have they paid to get this high position?

Now before you answer that question, ask yourself how you think Google assigns these positions to different websites. Does their giant computer just pull names from a great big cyber-hat? Do they use secret rules that only a few insiders know about?

Of course not. All the major search engines make it perfectly clear what they are looking for - and especially Google. If you want to score well for a term like "real estate Phoenix" or "real estate Ottawa", really all you have to do is pack your site with good information about Phoenix (or Ottawa) and focus your home page in a very deliberate way on those search terms.

The search engines like focused content. They assume if your site contains lots of content relevant to "real estate Phoenix" then it should be shown high in searches for that keyword.

Of course the problem is that there are already a number of other real estate websites offering good content focused on your favorite search term, so you are going head to head with sites that have previously established position, and it will take a bit of time and a fair amount of work to get past them.

That is fair enough. After all, if the real estate agent down the streat offers more focused and relevant information than you do about the market you are both chasing, she deserves to come up above you in the search engine rankings. It makes sense, doesn't it?

That does not mean you should not keep on trying. It simply means you should be patient and work harder. Take a close look at her site and outdo her by refocusing your site and creating more interesting and valuable content. Focus is the name of the game. Make it crystal clear that you are the "expert" on "Calgary real estate" by offering the kinds of things that an expert would offer.

And please, do not hesitate to mention the search phrase you are trying to get positioning on. If it is "Kingston real estate" or "Sacramento real estate", then use that term all over your home page. Say to yourself, "OK Google, so you are looking for real estate websites that have something to say about 'Sacramento real estate', well here I am. I breathe Sacramento Real Estate. I ooze Sacramento Real Estate. I AM Sacramento Real Estate." This is called Search Engine Optimization.

In the meantime, while you're waiting for Google to come around on your primary search term, find some less competitive ones to focus on as well. For instance, if you want to service the entire Ottawa area, but most of your clientele is in Kanata or Nepean, focus some of your internet marketing efforts on those smaller markets. You have a much better chance of getting results in these significantly smaller and less competitive markets.

For more free advice on [http://www.real-estate-webs.com]real estate website promotion and generating leads with your website, visit real-estate-webs.com, a division of Linknet Promotions. We can show you how to leap frog over your competition. Linknet Promotions does [http://www.sbo-linknet.com]article marketing for many successful websites.

Article Source: http://EzineArticles.com/?expert=Rick_Hendershot http://EzineArticles.com/?Real-Estate-Website-Promotion-is-Easy&id=850135

Real Estate - The Consumers Will Have the Final Word!

Real Estate - The Consumers Will Have the Final Word!
By [http://ezinearticles.com/?expert=Manuel_Iraola]Manuel Iraola

"The first step toward change is awareness. The second step is acceptance". --Nathaniel Branden

Change is good for the consumer and for the real estate industry. It fuels competition and drives innovation and efficiency. Yet, the real estate industry has seen little change during the last 50 years. Indeed, other than marginally lower commissions as a result of the introduction of "discount brokerage models," the change is imperceptible.

Will the industry survive as we know it today? What will it take to thrive in the future?

Technology and changing consumer behavior will be the driving forces behind change, but not the only forces. What matters is what the consumers want -- not what we think they want.

We searched for answers. We went from denial, to awareness, and finally to acceptance. The lessons were harsh but clear. We needed to listen and learn from the consumer. Here is what we learned and want to share with you.

Legislation and regulation can't stop evolution and innovation.

It is not business as usual anymore. Prior success no longer guarantees the future viability of the existing real estate business model and profitability for the industry. While it has been a long and rewarding ride, its time has passed. However, there should not be any doubts that there is a bright future for the real estate industry. After all, real estate will continue to be the heart and engine of our economy. And it will be especially brighter for those embracing radical change and seeking new ways to serve the consumers. Those that embrace the change brought by evolution will succeed. Those that continue to use legislation to defend the indefensible will see their business succumb to innovative models that put the interests of the consumer at the center of the process.

Consumers have lost confidence in the traditional model.

Is anyone surprised about this? Have consumers been taken for granted? Did the industry forget that consumers are critical on both sides of the transaction? You would have thought that consumers would be in control of the process. Yet, ironically, consumers do not have any leverage because the power resides with intermediaries. Consumers' options are limited when buying or selling real estate, particularly for those who want to go about it on their own.

We hear frequently: "Why do we need to pay a 6% commission for selling our property?" That concern is being felt across the real estate industry, and while commissions are being reduced, the decrease is still not commensurate with the "homeowner's perception of value".

Homeowners believe that fees should be based on "the value of the services" and not on "the value of the property". The adage that a rising tide lifts all boats has proved to be true in the real estate industry. This rising tide has brought housing values to record high levels. The good news for the homeowners is that their equity has increased. The bad news (which materializes at the time of the purchase and sale of property) is that such increase is completely independent of the contributions of third parties. It is simple market forces at work : supply and demand.

Consumers see through the lack of transparency.

Consumers know that you are not what you write or say, but what you do when no one is looking. Consumers want more transparency. They want all the myths to disappear. They want a leveled playing field, with unrestricted access to the tools and knowledge required for a successful sale or purchase. They want transactions that are "procedurally" easier, smarter, cheaper and faster. They want to choose how to go about buying and selling. The one size fits all approach is not longer valid.

Because of this lack of transparency, consumers are paying more for less value. Consumers are working more, but not being compensated for their efforts. Over 74% of buyers are now using the Internet to search for properties, yet they cannot complete the process because the back end is controlled by intermediaries. Sellers who want to sell on their own do not have an "effective platform" to market their properties, unless they use the Multiple Listing System. The cost of representation currently based on the value of the property is archaic and does not reflect the realities of the times. The absolute value of commissions paid continues to increase and the beneficiary is not the consumer. It is the consumers' equity that continues to erode, while the economic benefits are enjoyed by the intermediaries. Simply stated, the time has arrived for the consumers to be in control of the process. After all, the consumers own the properties and who better than them to decide what to do and how to go about it. They are willing to pay for the services and guidance they need, but not as a function of the value of a property.

The traditional model does not reflect today's consumers.

Advances in technology and the ever increasing sophistication of consumers are destined to change the way home real estate is bought and sold. Did the industry fail to recognize changes in the behavior and expectations of homeowners and investors?

Today's consumers are tech savvy, more independent, more sophisticated, more knowledgeable and want to be in control. They want to have choices!

Almost every traditional brokerage house has a web site mostly used to provide "photographs and summarized property information." This is a step in the right direction, but not quite what the consumer wants. Consumers want access to the same information and tools that professionals have. They want a buy and sell process that is "easier, smarter, faster and cheaper". Consumers know that the Internet has made it possible to have access to information and resources that in the past only were available to professionals. The Internet has also made it possible to provide these services at a fraction of the cost. Technology based models are not a substitute for good judgment, but they are more efficient and transparent. These efficiencies result in lower cost of representation, and access to information and know how that is completely unbiased and independent of the value of a property. Put another way, technology drives down the cost of representation!

Homeowners want real options, not a recycled traditional model. While real estate is a $ 1.3 trillion industry that is highly fragmented, there is little differentiation between options. The industry also exhibits behavioral traits typically found in oligopolies. Consumers have been led to believe that the process of buying and selling is complicated and unmanageable without the intervention of an intermediary. This is simply not true. Consumers want real options that remove the "fear, uncertainty, and doubt," which historically has been foisted on the real estate transaction by intermediaries.

There are over 2.3 million licensed brokers and agents in the United States. Entry and exit barriers are low. In theory, it looks like consumers have a very large number of choices. In practice, that is not the case. Mostly everybody offers the same and there is little differentiation between companies, business models, and services provided by brokers and agents. Consumers want "real choices," not variations of the existing business model.

Currently, home owners that wish to sell their property have two options: (i) sale by owner (FSBO); or (ii) a contractual engagement with a licensed real estate broker or agent.

For those owners who desire to sell their property themselves, advertising and valuation tools are virtually non-existent. Their intent is to avoid the high commissions sought by brokers, but they are restricted in their advertising and analysis capabilities.

Looking to take advantage of the market necessity for a FSBO real estate solution, a plethora of market developers has begun to introduce solutions in this area. Nonetheless, these developers have focused on creating revenue from either individual online FSBO advertisements, advertisements from or referrals to third-party real estate professionals, lead generation, or some basic set of information services/tools with limited capabilities. These are legitimate alternatives for some but not for all.

Real estate consumers are actively seeking alternatives. Consumers have an infinite appetite for information and knowledge. Web based applications have made that possible and there is no turning back. According to a 2004 report from the National Association of Realtors, the Internet has rapidly become the preferred method of property search with over 70 % of homebuyers indicating that they utilize it as their primary source of property listings. In fact, 2003 marked a milestone in the technological evolution of the real estate industry. That year, for the first time, more buyers used the Internet than newspaper advertisements as an information source. Buyers are doing most of the work, yet they find themselves having to go through an intermediary. Buyers do not buy the myth that "Commissions are paid by sellers." They know these commissions are part of the gross purchase price and paid exclusively by them.

Most consumers want an innovative online business environment with functionality that incorporates optimal data sources, analytical tools, marketing exposure, and opportunity leads in a comprehensive and user-friendly online solution. They know the Internet has created new industries and new ways to transact business and they want to be the beneficiary of such transformation. New games and new rules will become the standard. And we better learn to play the new game! The consumers will have the final word.

Change is unavoidable but not easy to accept. Change is good for society and we are constantly witnessing the transformation of everything around us. Change drives innovation, efficiencies and progress. Why should it be different for the real estate industry?

We need to listen and learn from the consumers. They want choices.

They want to compare those choices and decide how to proceed with what is for most people a very important investment decision in their life: buying or selling real estate. This is not about who is right or who is wrong. It is all about what is right for the consumer.

Manuel J. Iraola is President and Chief Executive Officer of Homekeys, a developer, integrator and provider of innovative Web-based information tools and services for the real estate industry. Homekeys.net is a unique, one-stop Web site that delivers a broad range of options enabling consumers to buy and sell real estate more easily, economically and effectively. See [http://www.homekeys.net]http://www.homekeys.com for more information.

Article Source: http://EzineArticles.com/?expert=Manuel_Iraola [http://ezinearticles.com/?Real-Estate---The-Consumers-Will-Have-the-Final-Word!&id=37381 ]http://EzineArticles.com/?Real-Estate---The-Consumers-Will-Have-the-Final-Word!&id=37381

Donald Trump on Real Estate

Donald Trump on Real Estate
By [http://ezinearticles.com/?expert=Thomas_Kish]Thomas Kish

I love what Trump says about the business of real estate.

I am a big believer in setting up business systems for all
my clients. So it is cool to hear from a master like Trump
about the importance of systems!

Sincerely,

Tom Kish

THE REAL ESTATE BUBBLE OF 2005?

'What Donald Trump has to say about the latest business
opportunities found in Real Estate Investing.'

By Phyllis N. Schwartz

Staff Writer

Have you ever wanted to become a millionaire?

If so – and, if you live in the United States, there is now a
very REAL chance for you to enjoy the same opportunities
as Donald Trump.

You don't need to invest in real estate to be wealthy. But, by
and large it is the easiest, most leveraged way to build real,
sustainable wealth. With mortgage rates at an all time low and
tax laws favoring real estate holdings, now is an ideal time to
profit from the greatest real estate gold rush in history.

Marriage, job changes, divorce, new families, death -- the
average American moves every five to six years. And with that
constant stream of movement across the United States, more
than 12 million homes are bought and sold every year. Many of
these will be great deals that you, yourself, could be profiting
from.

The very same principles that make Donald Trump a fortune
with New York City skyscrapers will work for the average
investor, no matter what size the property.

So precisely what can the small real estate investor learn from a billionaire wheeler- dealer like Donald Trump? According to George Ross, Executive Vice President and Senior Counsel for the Trump Organization (and, of course, Apprentice co-star), one of the cornerstones of Trump's philosophy is “Improve any location.”

And that's just what Trump did in his very first real estate deal on a foreclosure of a 1,200 unit apartment complex in Cincinnati, Ohio. Without a penny invested, Donald and his father, Fred, were able to turn the apartment complex around by doing some remodeling and taking a tough stance on rent collection.

In the single most valuable lesson in Donald Trump's real estate career, he learned how the government would assist buyers in purchasing property with little or no financial backing and how to get such aid. His passion for real estate grew from there and he went on to create the strategies and systems that turned his business into an empire.

“Deals are my art form. Other people paint beautifully on canvas or write wonderful poetry. I like making deals, preferably big deals. That's how I get my kicks.”

In New York City, the Trump signature is now synonymous with
the renowned Trump Tower, The Trump International Hotel &
Tower, The Trump Park Avenue and the Trump Building at 40 Wall Street. He also owns golf courses in 4 states, and current projects include the building of the biggest development ever approved by the NYC Planning Commission .

Ranked #228 on Fortune Magazine's list of the world's billionaires, Trump stated: “Real estate is at the core of almost every business, and it's certainly at the core of most people's wealth. In order to build your wealth and improve your business smarts, you need to know about real estate.”

The most obvious problem that confronts many would-be investors
is lack of know-how and/or financial resources. Common sense
would dictate that wanting to make money in real estate is simply not enough. Knowing how to get it is the real key to success. Like any other profitable business, it takes a proven business system.

In Trump: The Art Of The Deal, ‘The Donald' gives his own assessment: “If you take care of the downside, the upside will
take care of itself. In other words, if you have a contingency
plan for everything that can go wrong, you can't help but succeed.”

So how does the average Joe or Jane actually succeed in real estate?

Because you can't know it all, no matter how smart, educated or experienced, there is no way to acquire all the wisdom you need to make your business flourish. It's precisely why 95% of franchises succeed and only 25-35% of independent businesses fail. Wanting to make money in real estate is simply not enough.

Just as Donald Trump had starting out, you need a great mentor
with a proven track record to lead the way and support your
efforts… also a proven business system that allows you to invest in all types of real estate without ever having to tie up all your own cash. It is wise to begin your journey using the research, experience and wisdom of those who have been there before you.

The beauty of a franchise is that it provides a proven business
model with years of experience behind it. As far afield as real
estate investing may be from starting a McDonalds, the principle is the same. If you can find a real estate investment teaching program that eliminates much of the trial and error and allows you to get a quick start with a proven system, you've just found your own golden arches.

True success is bigger than any one person, no matter how well educated or experienced that person may be. There is no reason
to settle for anything less. Once again, to quote the king of real estate: “If you're going to be thinking anything, you might as well think big.” Sound advice to anyone who wants to become a millionaire.

p.s. Don't forget to check out my one of a kind business system for real estate investing.

I am the only expert teaching you how to use business lines of
credit to invest in real estate instead of cash!

Thanks,

Thomas Kish http://cashflowexperts.biz/cmd.asp?ad=137545

Tom is a full time real estate investor. He has purchased and sold over 5 million dollars worth of real estate in less than 2 years.

Tom is an expert in using new business lines of credit instead of cash to buy real estate. There is no one else teaching anything like this SYSTEM of real estate investing!

Article Source: http://EzineArticles.com/?expert=Thomas_Kish http://EzineArticles.com/?Donald-Trump-on-Real-Estate&id=32967

"Time" Is A Major Real Estate Wealth Growth Tool, So Use 'IT' And Watch

"Time" Is A Major Real Estate Wealth Growth Tool, So Use 'IT' And Watch
By [http://ezinearticles.com/?expert=Colm_Dillon]Colm Dillon

In this report I use figures from my area of the world ... I know they don't apply all over the world, but they should encourage you to get the figures for yourself.

After all no report is going to make your money grow ... it's the knowledge you gain and "Your Application Of The Knowledge" that makes your financial wealth Grow.

In another report I gave you a concept I borrowed from Phil Ruthven, a truly wonderful speaker on economics, on how he looks at Home Ownership.

Now I want to look at the Tools we have available to help us Grow!real estate wealth,

So folks, if you want Real Estate Development, you must use all the tools available to you to get some. Of all the tools you have, the single most important one is TIME.real estate wealth,

1. Time is your greatest friend. Time to buy good investment property and let it double in value every 8 to 10 years or better.real estate wealth,

2. Federal Government Real Estate Investment Tax Deductions are another tool the Government uses to tell you in Words, Dollars and Cents that they want you to get wealthy so you can look after yourself to your final days. real estate wealth,

3. Correct Financial tools are also vital to your wealth development. See my report of Finance. I will go into some further detail in this section on the use of Evergreen Lines of Credit and how they work.

4. Good Real Estate Management is the next tool. Well-managed and well-maintained real estate investments, that houses good quality tenants is also essential. Trying to do this work yourself, is a mistake. See my report on Property Management. real estate wealth,

In Australia, it has been instilled in our consciousness, that we must all own our own home. And there is nothing wrong with the concept. It's just that we should have been told to rent it out; Don’t live in it.

By buying a house TO LIVE IN, while we are young, we are wasting the wealth creating tools of Time, Double Income, (if married) Property Income and Tax Deductions. No wonder so many people have to play catch up later in life. real estate wealth,

So the first clue to Real Estate Wealth Development is don’t buy a residential property for you and you partner to live in. You buy a house as an investment and you rent elsewhere.

Growth Tool No. 1 – Time

Time is your greatest friend. Real Estate is a long-term investment and by being loyal to it, the real estate will reward you handsomely all through your life. real estate wealth,

You can prove this to yourself, as I did, by getting the figures of average house sale prices, from the Australian Bureau of Statistics for Brisbane, the largest City in Australia.

To save you the trouble I got the figures and I painstakingly went through them in order to validate the old wives tale that, ” real estate doubles every seven years.”

Well, it does better than that, you’ll be pleased to know.

I was able to get the figures from 1973/74 to 1994/95. I think I started there because that was when I arrived in Brisbane on transfer from Melbourne. real estate wealth,

That is a twenty-two years period, during which we had several credit squeezes, a few recessions and a few good times as well.

In 1973/74 an average house price for the whole of Brisbane was $23,234.00. That average includes the best and worst house and suburb.

Seven years later, in 1980/81, it was $43,470.00 an increase of 87%.

However by the next year, the eight-year, it had risen to $56,757.00 giving an increase of 144% from 1973/74. So you see that it more than doubles by the eight year. real estate wealth,

Going on a further seven years from 80/81 to 87/88, the $43,470.00 went up to $83,679.00; a further 92%.

Interestingly, going on one more year to the eight year, it had again increased to $113,917.00 giving an increase of 162% from 1980/81.

A further seven years from 87/88 to 94/95, the price of the average house in Brisbane went up to $163,325.00; a further 95% increase.
real estate wealth,

Unfortunately the Bureau amalgamated the Shires of Logan and Caboolture into this statistical base and I could not extract the figure for the eight year.

However on the evidence of the previous 22 years I believe it is safe to assume
the increase would be at least 5% making it an increase of 100%. real estate wealth,

So these figures prove that over a period of 22 years the asset has increased by seven times its original value and all you would have to do is buy it at the beginning.

I hope this gives you some idea of why TIME is so important to growth. And remember that I am talking about average prices, I am not talking about hot inner suburbs that will obviously do much better.

If you REALLY understand these figures; you should ask yourself why you are willing to miss out on buying good real estate by stopping negotiating for the sake a few hundred or a few thousand dollars. I've seen this done many times because of stubborn-ness. Crazy! real estate wealth,

For goodness sake it’s the Real Estate Asset that is in short supply; not money. If you have found real estate that fits your criteria; BUY IT!

The Real Estate Development Coach


Copyright Colm Dillon, October 2003

All Rights Reserved.

Colm Dillonauthor of "Residential Development
Made Easy" the only
'How To' Become a Developer eBook, selling in 38 Countries,
has developed $1.2 Billion worth of real estate - read more
on his web site http://realestatedevelopmentcoach.com/realestatedevelopment.html

Article Source: http://EzineArticles.com/?expert=Colm_Dillon http://EzineArticles.com/?Time-Is-A-Major-Real-Estate-Wealth-Growth-Tool,-So-Use-IT-And-Watch&id=444

Report: The Real Estate Market In Panama

Report: The Real Estate Market In Panama
By [http://ezinearticles.com/?expert=Heriberto_Estribi]Heriberto Estribi

Most likely, you have heard of the recent real estate BOOM currently occurring in Panama. Perhaps, there are several internet sites you have read or visited searching for further information on the topic. Or maybe you are one of those persons that have taken the decision already of buying an apartment or a beach house, but you don’t know where to start or wish to start your own real estate project in Panama, yet still need more information. Well, I have prepared this article in a practical and simple way in order to guide you in our real estate market. You will find this paper helpful, whether it’ll be for the direct buying of a property or to start your own real estate project in Panama or simply to have a more complete notion of this rising real estate BOOM.

What is happening in the Panamanian Real Estate market?

What is going on in Panama is without any sort of precedent. The market is growing rapidly and such real estate development has never been experienced before in our country. Monthly, we are visited for hundreds of foreigners interested in buying real estates in Panama, in the City, the coasts and the mountains. The constant rising of the value per square meter is almost in a monthly rate. For example: in January, 2006 it was possible to find apartments in Panama City for around US$ 1,000.00 per square meter, which is nearly impossible nowadays (US$ 1,200 – US$1,400 and rising). This has generated the value per square meter to triplicate in the city and even to quadruplicate in the rest of the country. The main real estate broker associations have foreseen that the general value of the land in Panama could rise up to 30% to 40% in the next three years, due to this price increasing flow.

Extreme luxury towers of over 100 stories, residential houses of over a million dollars, yachts and marine clubs, huge luxury hotels, golf camps designed by well-known international specialists, as well as top of the line malls, are currently under construction or in process of delivering in the next couple of years; renovating the face of the city into an international and cosmopolitan metropolis. Promoters, private investors and international real estate companies, from United States, South America and even Europe, have started the construction of real estate projects of great impact. Also, a great number of international real estate broker companies are currently setting up businesses in our country per month. Specifically we could say that seven of the highest towers under construction in Latin America are being built in Panama City, within the areas known as “Avenida Balboa” (this area is projected as the skyscraper in front of the sea in the city). We could mention, among others: Aqualina, Aquamare, Vitri, Ocean Two and One, Los Faros de Panama and Ice Tower, ready to be delivered for the year 2009; besides the hundreds of apartment towers bring developed around the city. Great beach lot projects, island resorts, as much as in the Caribbean Sea (Bocas del Toro) as in the Pacific Ocean (Pearl Islands); as well as delightful retirement mountains (Boquete, Altos del Maria) are part of the avalanche of real estate projects that seems just to be starting.

Which are the real factors that caused this real estate boost?

We all know that after the hostilities occurred in Panama in 1989, the Panamanian real estate market remained hesitant and the small amount of inversions in this sector were led in its majority into commercial projects. Eleven years had to run by after this event (year 2000) for the leaders in the tourist sector of the Panamanian government (led by the well-known Panamanian singer Ruben Blades) to take action initiating a serious campaign for the enhancement of the country’s image. Panama was shown as “the path less traveled”, stressing not only in the advantages of being and international banking services and offshore center, but also in the social, tourist, ecological and geographic elements that until then were unknown to the rest of the world. This successful campaign was promoted worldwide in the main international television chains, in Europe as well as in the United States. Added to this, something that has to be acknowledged, for the year 2003 Panama comes back to the international field with the announcement that a young Panamanian lady (Justin Pasek) won the Miss Universe contest, situation that allowed by extension the range of advantages of our country as a tourist and commercial destiny. Between the years 2003 and 2005, little by little the number of visitors increased as a consequence of these two important catalysts.

Meanwhile, small groups of professionals (lawyers, brokers, and independent professionals) were offering seminars about the Panama’s advantages or organized small real estate tours to foreigners. Several articles published in international retirement magazines (generation known as “Baby Boomers”) and second residences abroad, started to acknowledged Panama as one of the best countries in the world to live at high standard levels, but with low costs; all of this caused due to excellent projects addressed to this market, as “El Valle Escondido” in Boquete – Chiriqui or “Altos del Maria” in Panama. One of the main triggering factors of this real estate boost in Panama occurred last April 24th, 2006, when Donald Trump announced in New York City the construction in “Punta Pacifica” area in Panama City of a 65-story tower branded as “Trump Ocean Club International Hotel”, with a cost of 220 million dollars. Further more, on October of the same year, the national acceptance for the enlargement of the Panama Canal was given, initiating construction works in the year 2009. Starting from this point, there is no doubt that Panama would become the centre and role model of real estate investments in the area, situation that has been increasing exponentially.

Which are then Panama’s advantages as a real estate destiny?

Well, let’s get into the subject. Let’s study those advantages that Panama offers and that will allow you, effectively, to take the decision to buy a property in our country, as many foreigners have done. From the real estate point of view, we could mention:

-*- Panama offers the best banking center in the region, with the use of the American dollar as legal currency and with top of the line banks (HSBC, CITIBANK, BBVA, etc.) which will facilitate the process of obtaining mortgages for foreigners, offering a fast international bank transaction process for deposits and reservation of properties.

-*- Panamanian immigration law has one of the best retirement programs in the world, which will allow you to become a “resident” in less than two months. This program offers several incentives as the possibility to import goods and personal values into your new properties free of import duties, as well as motor vehicles also free of import duties.

-*- An outstanding service, utilities and infrastructure system for properties, such as: high speed Internet (there are five of the main Internet interconnection Networks crossing through Panama), Cable and Satellite TV, public potable water, wide range of telephony offer, fixed and cellular.

-*- The opportunity to buy extreme luxury apartments with ample spaces to a price amazingly low compare with apartments of the same quality in USA and Europe.

-*- The opportunity to acquire properties exempt to the 0% of property taxes for a period of 5, 10, 15 and even 20 years (depending on the date of construction’s commencement).

-*- A vast variety of companies and bilingual professionals involved in the real estate market.

-*- If you are a businessman, Panamanian law has fiscal benefits to constructors and promoters that start real estate projects in the country.

Additionally, there are other advantages to take into consideration that even when you are not directly involved in the real estate business, they can become helpful at the moment of taking the decision of buying a property:

-*- Panama has been acknowledge for companies as Pinkerton Intelligence Agency as a high standard security country in contrast with the current situation in neighboring countries.

-*- You can hire house keeping services for a low cost (around US$ 150.00 per month)

-*- Up-to-date high standard technology available.
-*- The opportunity to acquire products from all over the world in the Colon Free Zone, due to the noticeable position of the Panama Canal and the transit of over 14,000 ships per year.

-*- The conditions of Panamanian taxation law allow the tax payer not to pay taxes on bank interests or even income taxes when the service and/or business are performed abroad.

-*- An exceptional geographic position to perform international commercial transactions, with fast access to the Pacific Ocean as well as to the Atlantic.

-*- Panama has a low-risk profile in regards to natural disasters, such as earthquakes and hurricanes.

These are some of the many advantages that Panama can offer if you decide to acquire a property in our country, whether it is to invest or simply to relocate and enjoy life.

Which are the most attractive places to buy properties?

To better answer this question, we have to divide our answer in four groups: Panama City, the mountains, the Pacific shore and the Atlantic shore.

Panama City

The main seaside view luxury condos are found in Panama City, distributed as follows: Balboa Avenue, Punta Pacifica and Costa del Este. The region known as “Avenida Balboa” has become the icon of real estate development in Panama. The reason for this is due to the current construction of luxury residential apartment towers with an outstanding architecture with a height of over 100 stories, to be concluded in the year 2009. Balboa Avenue offers quick access to the whole city, the banking area, as well as to the main avenues, given that it is the coast boulevard. One hundred meters away from this area you will find restaurants, bars, hotels and several facilities. European promoters, American and South Americans have foreseen the real estate potential in this area, equivalent to condos phenomenon occurred in Miami during the eighties. “Punta Pacifica” area was developed over the old City airport (for the reason that it was next to the pacific coast and inside the city). This region was designed specially to provide an answer to the upcoming real estate demand. The area offers beautiful projects and high standard apartment towers. You will also find in “Punta Pacifica” malls (Multiplaza Pacific), Hospitals (John Hopkins Hospital), corporate buildings and access to highways (Corredor Sur) which will grant you fast access to the international airport in 15 minutes. Is also in this sector where the Trump Organization and K Group will raise their promoted real estate project. Another of the desired areas for foreigners is Costa del Este.

The “other city” as is referred to was also conceived and designed for the development of apartment buildings and closed residential communities. It is the perfect place for a foreigner to completely relocate in Panama. This region has it all schools, malls, wide avenues; this sector offers several real estates with a gorgeous view to the sea or to the city, located five minutes away from the city and only ten from the international airport. It also important to stress out that this luxury tower’s development is not circumscribed to these few areas. There are also urban projects in the region of Punta Paitilla, Coco del Mar and San Francisco (all of them in front of the sea), as well as beautiful developed residential areas in the surroundings of the Panama Canal, such as Albrook, Clayton and Quarry Heights.

The Mountains

Gorgeous mountain projects with cool, fresh weather from 18Cº to 20Cº (64ºF to 68ºF) have been developed in the provinces of Panama, Cocle and Chiriqui. In the province of Panama, the most representative mountain project is found in the region of Sora, 75 minutes away from the City and known as “Altos del Maria”. This project consists of a well-organized foreigner’s community with utilities and spectacular landscapes. Another region of urban development can be found in what is known as “Tierras Altas” (High Lands) located in the province of Chiriqui (Volcan, Boquete and Cerro Punta). Among these places, Boquete has become one of the most relevant real estate centres in the whole country, given that it counts with a wide supply of real estate projects, residential houses in the mountains with amazing landscapes. Boquete has been recognized by specialist in the subject as one of the best places for retirement in the world, fact that has generated in this region the highest concentration of retired foreigners in the country. Finally, in the province of Cocle, you will find the region known as “El Valle”. Located in an extinguished volcano, El Valle offers the perfect weather, rivers, waterfalls and tourist attractions. El Valle is at present taking measures to become one of the most wanted regions in the field of mountain real estate properties, owing to its facilities and infrastructure, as well as to its proximity to Panama City (1hr. 45 mins.)

The Pacific Shore

The supply of lots in front of the sea starts in the pacific coast line of the Province of Panama, and it goes all the way until the mid-country provinces. Most Panamanian high-class families have their beach houses on this sector; due to its proximity to the City (45 minutes). This coast line offers residential areas such as Came, Coronado, Punta Barco, San Carlos, Gorgona, among others. Within these beach residential areas we have to remark the region known as “Coronado”, region which counts with one of the best professional Golf camps in Latin America, pools, beach clubs, equestrian clubs, several restaurants and great supply of houses and apartment buildings in front of the sea. Additionally, further on in the pacific coast line, we can find the region of Playa Blanca. Since the development of the macro hotel project known as “Royal Decameron” in the area, the infrastructure and general surroundings have grow significantly. In Playa Blanca, you will be able to find casinos, swimming pools, restaurants, bars and discotheques, beach clubs and a great variety of real estate projects just right next to the beach. Finally, we should also mention the recent development experienced in the seaside areas the provinces of Los Santos (Pedasi) and Veraguas, such as Playa Arenal, Punta Mala and Playa Venao, among others; which have become the new destiny for many foreigners (mostly Europeans) that are searching for great extensions of lands in front of the sea.

The Caribbean Shore

In this area, we can find a similar supply of real estate properties to the one found in the pacific coastline of the mid-country provinces. There are several properties in front of the sea, as well as vast extensions of hectares next to the beach. This region is located two hours away from Panama City and it offers the option to buy in the well-known Colon Free Zone. On the west side of the country, you will find in the Caribbean coastline, the spectacular region of Bocas del Toro, where properties next of the sea or in the middle of an island are simply astounding. A great variety of international real estate companies have started projects in the crystal clear waters of Bocas del Toro. Bocas is one of the most known tourist destinies in Panama, located only 1hr and 45 minutes away by plane. It offers an amazing night life, restaurant, hotels and tours around the different islands of the area. Bocas del Toro coastline has become the most wanted real estate choice for retired or pensioned foreigners in the Caribbean. Among the best areas of Bocas del Toro you can find Isla Colon, Boca del Drago, Red Frog Beach and Playa Larga. The residential project known as Red Frog is of renowned reputation in the international spheres, given that it offers an incredible exclusively designed development for foreigners in one of the most beautiful islands in Bocas del Toro, Bastimento’s Island. The project has marine clubs, restaurants, houses and a dazzling infrastructure.

Islands

The most notorious group of islands is found in Bocas del Toro, given that, as we already mentioned it offers a wide variety of real estate projects in the Caribbean, scenario of several TV series broadcasted around the world. The most important islands of the archipelago are: Isla Colon, Isla Bastimentos, Isla Solarte, Isla Cristobal, Isla Popa and Isla Zapatilla. Likewise, we can found several small independent islands for private projects. Bocas’ islands counts with an astonishing ecosystem for scuba diving, marine activities and bird watching. Another group of islands that is raising popularity is the real estate market found in the archipelago of Mosquito’s Gulf, in front of the pacific coastline of the province of Chiriqui. This Gulf has been granted by the Panamanian government the title of Ecological Reserve, as a consequence of the great diversity of marine fauna found in the area. Most of the islands have registered real estate titles, which allow its prompt buying. The surroundings of these islands are famous for being one of the best places in the world for Black Marlin fishing. The Pearl Islands are located within the Gulf of Panama, three hours away from the city in the open sea, offering a group of more than 35 beautiful islands with spectacular landscapes, surrounded by coral reefs and vast vegetation. The beauty of this area attracted the production team of the popular reality show “Survivor”, who has filmed several times in this region. Finally, you will find the island of “Coiba” in the Pacific Ocean, formerly a prison already abolished and currently a National Park. The main island and its small islands such as Isla Iguana have become in top destinies for scuba diving and water sports.

What should I and should not do when buying a property in Panama?

As a final tip, we will recommend you some practical advises in case you decide to buy a property in Panama:

Recommendation # 1 : You can visit the projects on your own, but it is advisable to be assisted by a professional who could properly introduce you to the promoters, avoiding the pointless increase on the price.

Recommendation # 2 : If you are not fluent in Spanish, you should ask the promoter to get you the contract both, in Spanish and in your native language, for all legal transactions to be performed.

Recommendation # 3 : Once you reserve your property, immediately ask for a receipt and the signature of the Promissory Purchase-Sale agreement.

Recommendation # 4 : Once you have signed this agreement, double-check the deadlines for the subsequent down payments of your property. If you miss one of these, you are exposed to lose the money already paid to the promoter.

Recommendation # 5: Try to take a quick decision on acquiring the property; given that once you reserve it, the price is then frozen. Due to the current demand in the market, prices on apartments rise at a monthly rate.

Recommendation # 6: Once you reserve your property, look for the professional advice of lawyers or real estate brokers, in order to verify all documentation and contracts are due to the procedure of registration.

Recommendation # 7: Think about the possibility of acquiring your property through a Panamanian corporation. They are of fast incorporation, considerably cheap and easy to manage. Using a corporation to acquire a property in Panama will ease a future transfer of it, if that’s the case.

If you need any other assistance in acquiring a property in Panama, please do not hesitate to contact us.

Prepared by: Mr. Heriberto Estribi Ch. - Attorney

Translated by: Mr. Emilio Cornejo V. - Attorney


Please contact: Mr. Emilio Cornejo

[mailto:cornejo@compuservice.net]cornejo@compuservice.net

Phone +507 302-7491 or +507 302-7492

Fax + 507 214-9945 http://www.melafi.com

M&E Attorneys

Lawyers and Authorized Real Estate Brokers.

Article Source: http://EzineArticles.com/?expert=Heriberto_Estribi http://EzineArticles.com/?Report:-The-Real-Estate-Market-In-Panama&id=437760

Top 7 Mistakes Rookie Real Estate Agents Make

Top 7 Mistakes Rookie Real Estate Agents Make
By [http://ezinearticles.com/?expert=Eric_Bramlett]Eric Bramlett

Every time I talk to someone about my business and career, it always comes up that “they’ve thought about getting into real estate” or know someone who has. With so many people thinking about getting into real estate, and getting into real estate – why aren’t there more successful Realtors in the world? Well, there’s only so much business to go around, so there can only be so many Real Estate Agents in the world. I feel, however, that the inherent nature of the business, and how different it is from traditional careers, makes it difficult for the average person to successfully make the transition into the Real Estate Business. As a Broker, I see many new agents make their way into my office – for an interview, and sometimes to begin their careers. New Real Estate Agents bring a lot of great qualities to the table – lots of energy and ambition – but they also make a lot of common mistakes. Here are the 7 top mistakes rookie Real Estate Agents Make.

1) No Business Plan or Business Strategy

So many new agents put all their emphasis on which Real Estate Brokerage they will join when their shiny new license comes in the mail. Why? Because most new Real Estate Agents have never been in business for themselves – they’ve only worked as employees. They, mistakenly, believe that getting into the Real Estate business is “getting a new job.” What they’re missing is that they’re about to go into business for themselves. If you’ve ever opened the doors to ANY business, you know that one of the key ingredients is your business plan. Your business plan helps you define where you’re going, how you’re getting there, and what it’s going to take for you to make your real estate business a success. Here are the essentials of any good business plan:

A) Goals - What do you want? Make them clear, concise, measurable, and achievable.

B) Services You Provide - you don't want to be the "jack of all trades & master of none" - choose residential or commercial, buyers/sellers/renters, and what area(s) you want to specialize in. New residential real estate agents tend to have the most success with buyers/renters and then move on to listing homes after they've completed a few transactions.

C) Market - who are you marketing yourself to?

D) Budget - consider yourself "new real estate agent, inc." and write down EVERY expense that you have - gas, groceries, cell phone, etc... Then write down the new expenses you're taking on - board dues, increased gas, increased cell usage, marketing (very important), etc...

E) Funding - how are you going to pay for your budget w/ no income for the first (at least) 60 days? With the goals you've set for yourself, when will you break even?

F) Marketing Plan - how are you going to get the word out about your services? The MOST effective way to market yourself is to your own sphere of influence (people you know). Make sure you do so effectively and systematically.

2) Not Using the Best Possible Closing Team

They say the greatest businesspeople surround themselves with people that are smarter than themselves. It takes a pretty big team to close a transaction – Buyer’s Agent, Listing Agent, Lender, Insurance Agent, Title Officer, Inspector, Appraiser, and sometimes more! As a Real Estate Agent, you are in the position to refer your client to whoever you choose, and you should make sure that anyone you refer in will be an asset to the transaction, not someone who will bring you more headache. And the closing team you refer in, or “put your name to,” are there to make you shine! When they perform well, you get to take part of the credit because you referred them into the transaction.

The deadliest duo out there is the New Real Estate Agent & New Mortgage Broker. They get together and decide that, through their combined marketing efforts, they can take over the world! They’re both focusing on the right part of their business – marketing – but they’re doing each other no favors by choosing to give each other business. If you refer in a bad insurance agent, it might cause a minor hiccup in the transaction – you make a simple phone call and a new agent can bind the property in less than an hour. However, because it typically takes at least two weeks to close a loan, if you use an inexperienced lender, the result can be disastrous! You may find yourself in a position of “begging for a contract extension,” or worse, being denied a contract extension.

A good closing team will typically know more than their role in the transaction. Due to this, you can turn to them with questions, and they will step in (quietly) when they see a potential mistake – because they want to help you, and in return receive more of your business. Using good, experienced players for your closing team will help you infinitely in conducting business worthy of MORE business…and best of all, it’s free!

3) Not Arming Themselves with the Necessary Tools

Getting started as a Real Estate Agent is expensive. In Texas, the license alone is an investment that will cost between $700 and $900 (not taking into account the amount of time you’ll invest.) However, you’ll run into even more expenses when you go to arm yourself with the necessary tools of the trade. And don’t fool yourself – they are necessary – because your competitors are definitely using every tool to help THEM.

A) MLS Access is probably the most expensive necessity you’re going to run into. Joining your local (and state & national, by default) Board of Realtors will allow you to pay for MLS access, and in Austin, Texas, will run around $1000. However, don’t skimp in this area. Getting MLS access is one of the most important things you can do. It’s what differentiates us from your average salesman – we don’t sell homes, we present any of the homes that we have available. With MLS Access, you will have 99% of the homes for sale in your area available to present to your clients.

B) Mobile Phone w/ a Beefy Plan – These days, everyone has a cell phone. But not everyone has a plan that will facilitate the level of use that Real Estate Agents need. Plan on getting at least 2000 minutes per month. You want, and need, to be available to your clients 24/7 – not just nights and weekends.

C) Computer (Preferably a Laptop) – There’s no way around it, you have to have a computer & be savvy enough to use email. You would be wise to invest in some business management software, as well. If you’d like to save some money (and who wouldn’t) then you can get the client & email management software Thunderbird from www.mozilla.com and you can get a free office suite from www.openoffice.org The only downside to these programs is that they do not sync with your PDA or Smart Phone. A Laptop is a BIG plus because you’ll be able to work from home or on the go. New Real Estate Agents are often surprised by just how much time they spend AWAY from the office, and a laptop helps you stay on top of your work while on the go.

D) Real Estate Friendly Car – You don’t have to have a Lexus, but your Miata won’t do the trick. Make sure that you have a 4 door car or SUV that is comfortable and presentable. Keep it clean, and for God’s sake, don’t smoke in it! You’re going to spend a LOT of time in your car, and put a lot of miles on it, so if it’s fuel efficient, it’s a BIG plus. If you’re driving a sporty convertible, or still have your KILLER Jeep from college, it’s time to trade it in.

4) Lack of Proper Funding

If you’ve taken the time to create your business plan, than you should definitely have your budget, but I can’t stress enough the importance of having and following your budget. However, the budget alone doesn’t address the important aspect of funding. 90% of all small businesses fail due to lack of funding. Typically, new agents will want to have 3 months of reserves in savings before taking the leap into full time agency. However, money in the bank isn’t the only way to answer the question of funding. Maybe your partner can support you for a certain period of time. You can keep a part-time job that won’t interfere with your business as a Real Estate Agent. Many successful waiters make the transition to successful real estate agents with no money in the bank. When you start your new business, don’t expect to earn any income for, at the least, 60 days.

5) Refusing to Spend Money on Marketing

Most new Real Estate Agents don’t realize that the hardest part of the business is finding the business. Furthermore, they’ve just shelled out around $2000 for their license and board dues, so the LAST thing they want to do is to spend more money! Again, the problem lies in the lack of understanding that you’ve just jumped into the Real Estate Business, you haven’t taken a new job. And any good businessperson will tell you that how much business you GET is directly correlative to how much you SPEND on marketing. If you choose the right brokerage, then you will get some good inbound leads. However, don’t neglect a good, personal marketing campaign from the beginning to get your own name out as the Real Estate Agent to go to.

6) Not Focusing Their Marketing Efforts in the Most Effective Areas

One reason why many new Real Estate Agents who do begin spending money on personal marketing stop is because they spend it in the wrong place. The easiest place, and where conventional Real Estate tells you to spend your money, is in conventional print marketing – the newspaper, real estate magazines, etc… This is the most visible place to see real estate advertising, it’s where large offices spend a good part of their money, and so many new agents mistakenly spend their money here. This becomes very frustrating to new agents because of its low return. Large brokerages can afford to spend their money here because they’re filling two needs – they’re marketing their own properties for sale while creating new buyer traffic for their buyer’s agents. New Real Estate Agents should look to their own sphere of influence and referral marketing to see the most effective return on their investment. An agent can spend as little as $100/month marketing to their family, friends, and colleagues and see an incredible return. There are many great referral systems around that all focus on the same premise – that if you consistently market yourself to your sphere of influence as the Real Estate Agent to go to – then you will get more business. The key is to pick a system and to follow that system. You will see results.

7) Choosing the Wrong Brokerage for the Wrong Reasons

New Real Estate Agents choose their new broker for a variety of reasons – they have a good reputation, they offer the most competitive split, the office is close to their house, etc… While these alone aren’t bad reasons to choose a broker, they aren’t going to do a lot to help you in your success. The #1 reason to choose a broker, and the question to ask is, “What do you offer your new agents.” If the answer is, “The most competitive split in town” you should definitely keep looking. Remember, 100% of $0 is still $0. If you’re leaning towards the largest broker in town, who has a great reputation, remember this: You’re starting a BUSINESS not a JOB. While it might be fantastic to brag to your friends about landing a job at a prestigious company, it’s no accomplishment to hang your license on the same wall in the same office as other successful agents.

Your #1 concern when interviewing new Brokers is what they offer you as a new agent. Do they have incoming leads? What does their training program consist of? What’s their retention level? What’s their average sales price? Do they encourage their agents to promote themselves? A Broker’s purpose is to help new agents start successful careers and to help established Agents progress their careers to the next level. As a new agent, concern yourself less with commission split or agency name and more with specific programs and agency standards.

A new career in Real Estate is very exciting. Starting a Real Estate business provides the new Agent with opportunities for limitless potential and freedom. New Agents have a notoriously high failure rate, however, so a new Real Estate career can also be a very scary prospect. However, if you avoid the 7 Top Mistakes Rookie Real Estate Agents Make, then you’ll be far ahead of the competition!

Eric Bramlett is the Broker and co-owner of One Source Realty in Austin Texas. He has seen considerable success in real estate, and looks forward to many more years in the business. Eric currently invests, renovates, and develops real estate in the Greater Austin Texas Market. He spends his time working with select clients, helps his new agents get started in their real estate careers, helps his experienced agents progress their careers to the next level, & when he has time…he takes his dogs to the lake. Visit Eric’s [http://www.ericbramlett.com]Austin Texas Real Estate Guide & visit his [http://www.onesourceaustin.com]Austin Texas Real Estate company’s website. [http://www.onesourcemetro.com]Austin Condos

Article Source: http://EzineArticles.com/?expert=Eric_Bramlett http://EzineArticles.com/?Top-7-Mistakes-Rookie-Real-Estate-Agents-Make&id=363842

So You Think You Want To Sell Real Estate?

So You Think You Want To Sell Real Estate?
By [http://ezinearticles.com/?expert=Kimberle_Balsman]Kimberle Balsman

The business of buying and selling real estate can be quite lucrative. The lure of high commissions is certainly enticing, and leads aspiring real estate entrepreneurs to believe that it’s easy to make a lot of money in real estate. Yet, the reality of selling real estate is very different.

The truth is that more than 80% of real estate commissions are earned by less than 20% of real estate agents. Furthermore, nearly 80% of all new real estate agents fail. These statistics are certainly discouraging and usually enough to give most people pause. Nevertheless, the excessive appreciation of home values over the past several years drove many vacillating individuals to take the risky plunge into real estate, hopeful that they, too, would rake in thousands of dollars in commissions in the booming real estate market. Then, the market started to cool, a natural fluctuation in the cyclical real estate market.

I’ve heard it said that the hardest part about a career in real estate is passing the real estate exam. I would have to respectfully disagree. The real estate business is a 24/7 enterprise. Thus, the only way to truly succeed in real estate is to eat, sleep, breathe and live real estate. As far as I am concerned, sacrificing your family, friends and personal interests is by far the hardest part about a career in real estate.

In the grand scheme of things, I spent a miniscule amount of time pursuing a career in real estate. I found, after little more than a year, that I simply did not want to devote my entire existence to real estate sales and promptly redirected my efforts elsewhere. My Aunt learned the same lesson in approximately the same amount of time. I would be remiss, however, if I did not play devil’s advocate and share with you that those few persistent and committed individuals who resisted the temptations of everyday life have, indeed, made and continue to make a substantial income from real estate.

So, if you are convinced that a career in real estate is your destiny, consider the following facts before you make the leap.

A real estate career requires a significant investment in money, as well as time. Regardless of your state of residence, the real estate commission will require you to pay fees to take the real estate exam. But, before you can even take the exam, you will be required to take a real estate course designed to prepare you for the exam and your career. (Note: not all states require the course, though most do). The cost of the course varies, but averages approximately $250. The exam usually costs in the neighborhood of $100, which varies by state. Thereafter, assuming you pass the exam, you must pay a licensing fee for your state’s licensing authority to issue your license to you. Once you become licensed, you will usually be required by your hiring broker to join your local association of Realtors. I paid in excess of $400 annually to join. Depending on the agency you work for, you may have to pay licensee or agency fees, which are usually a few hundred dollars. In order to get started marketing yourself as an agent, you must have business cards (upwards from $75 for a starter box) and other marketing devices (car magnets, listing signs, mass mailings, etc). Remember, too, that this is the Internet age. Therefore, a computer is essential. Most agents I worked with, myself included, used laptops. Some invested in desktop systems that, of course, had to be left in the real estate office.

After all of the initial start-up costs, there are ongoing expenses like self-promotion marketing and fuel. Right now, with gas prices as high as they are, I doubt struggling agents can scarcely get ahead. I once spent an entire day touring more than 14 homes with a potential buyer who expressed urgency in finding a new home and claimed to have cash readily available for the purchase. Despite all my efforts, he went home to “think about” the homes I had shown him, and I never heard from him again. I traveled several hundred miles that day alone. After being skunked several times, I finally landed my first listing and closed it in relatively short order. At last, I had a commission check. And, just like a teenager who earned her first paycheck and wondered who the devil FICA was, I looked over all the agency deductions and realized just how small my checks would be relative to all the hard work I had to put into each transaction.

All things considered, I was mildly successful as a new agent. I grossed more than $2 million in sales in my first few months. Sadly, however, after spending more than a year preparing for and developing my real estate career, my earnings from those sales yielded me income of little more than $11,000. Once I deducted all of my expenses for that same year, I netted very little income. Such is the life of a real estate agent.

It’s important to note, however, that each agency has its own fee and commission schedule. Some realty companies are required to deduct a franchise fee that is passed on to the franchisor (i.e. Century 21, Coldwell Banker, RE/MAX, etc.). In addition to franchise fees, some agencies keep as much as 50% of its agents’ commissions, plus a fee for malpractice insurance coverage, ostensibly in exchange for valuable services and paid marketing. Other agencies keep very little of your commissions but require its agents to pay all of their own marketing and office expenses, including desk rental fees (which can exceed $2000 a month in some areas).

Unlike other business enterprises, the amount of time, effort and money you pour into your business does not directly correlate to income earned. As I mentioned above, an agent can spend many weeks or months with a buyer showing property and working with lenders to qualify that buyer for a home loan. Sometimes the buyer will finally complete a transaction. Sometimes he will not. Likewise, agents regularly spend months showing their listed properties to prospective buyers and searching for other qualified and interested buyers. In the end, a sale may close or the seller may decide to terminate the listing and, perhaps, list again with another agent. So, a new agent must learn the valuable lesson to never count on any commission until the transaction has completely closed. Things can and do go wrong, often at the closing table. Unfortunately, some of my fellow agents, anticipating a closing, would make purchases against the uncollected commissions, which occasionally resulted in a serious financial crises for that agent.

One final word of caution for would-be real estate agents – real estate litigation is on the rise. I know of several very good agents who became unwitting defendants through no real fault of their own. Rather, dissatisfied or remorseful buyers elected to target their agents instead of admitting their own carelessness or haste in buying a questionable property. That is not to say that some agents are not justifiable defendants. Indeed, there are an abundance of disreputable agents who methodically deceive their clients to ensure a commission. The deplorable fact is that lawsuits follow deep pockets. Real estate agents are generally considered to be wealthy, though this is certainly not applicable to all agents. Therefore, they are becoming more frequent targets for both legitimate and frivolous legal actions.

As with any career, there are rewards as well as drawbacks. Real estate agents are nearly always classified as independent contractors, which affords them greater autonomy and control over the direction of their business than ordinary employee-employer relationships. For many, that single advantage is sufficient to offset the drawbacks of a demanding real estate career.

I hope I have offered an enlightened view into some of the realities of real estate sales as a career choice. Though a career in real estate sales certainly does not appeal to everyone, some agents I know wouldn’t have it any other way.

Kim Balsman, a former licensed Century 21 agent and Realtor, grossed more than $2 million in sales in her first few months as a Realtor. Upon moving to Colorado, Kim gave up her successful, albeit brief, real estate career to pursue her true passion, photography. Kim's diverse background includes real estate, law, interior design, photography and writing. Kim now devotes all of her time to writing and photography. She owns Balsman Photography, LLC, a small, professional studio in Colorado's Front Range. Kim and her husband, Bob, have two teenage children and enjoy all the many aspects of living in Colorado.

Article Source: http://EzineArticles.com/?expert=Kimberle_Balsman http://EzineArticles.com/?So-You-Think-You-Want-To-Sell-Real-Estate?&id=239921

7 Simple Steps To Real Estate Investing

7 Simple Steps To Real Estate Investing
By [http://ezinearticles.com/?expert=Heather_Seitz]Heather Seitz

Whether you are BRAND NEW to real estate investing or an expert in the game, it’s critical that you understand these 7 Simple Steps to real estate investing.

First things first…

• Real Estate is NOT a get rich quick scheme. However, if you learn the foundations and put them into practice, you will make more than enough money to realize any and all of your dreams and goals.

• The real estate bubble is not going to burst! The real estate market will, however, shift and the real estate market will change – just as it always has! What’s “hot” now may turn ice cold in the next 3 years (or perhaps even 3 months). But, there are ways to “bubble proof” your real estate investments. It’s actually quite simple.

Did you know that in the United States, in 1975, the median home price was $33,300? In 2005, the median home price was $195,000. Historically, the average home doubled every 7 years. If you do the math, it should be well over $200,000.

OK… Now, having said that… The real estate market WILL change and what is “working” today in real estate may not in the future… The rental market was strong a decade ago, but has been soft in recent years. We are getting ready for a turn once again.

Real Estate IS a cycle… and cycles have some degree of predictability. With predictability, you can grow your real estate business into a cash-producing, profit-pulling machine that runs itself WITH the changing real estate market trends. It is still possible to make money in real estate. In fact, now is just as good a time as any to get started in real estate investing.

But, you’ve got to make wise investments. Sure, you may make some SERIOUS cash in pre-construction, but what happens if (no, not if – when) the market shifts and there are suddenly 35 identical properties on the market for sale in the same building? How long can you afford to carry a negative cash flow on the property?

Or how about taking over property ‘subject to’? Sure, it’s a great strategy and lenders may be inclined to turn the other way and not exercise the “due on sale” clause as long as the interest rates are at rock bottom prices (You know, those sellers that you’re usually taking property subject to from usually don’t have the lowest interest rates, right?) If the interest rates spike to 10-11%, don’t you think lenders might be MUCH MORE inclined to exercise their option to make you pay off the 6.5% note?

What this means is simply that you must be experienced in the basics – the tried and true techniques, strategies and systems that have worked in the past, are STILL working and will work in the future. You’ve got to have all the tools in your bag so that you can go with the flow and not be affected when real estate markets begin to shift (which they are already in the process of doing, in case you’ve missed that memo! ;-)

Step #1 - Set your plan: Figure out what your long term real estate goals are (aka retirement and wealth building) and figure out what your short term needs are with regard to making money in real estate. Then, set up the proper entities and put the plan in place.

Step #2 - Determine what your target market will be: You cannot be all things to all real estate markets. If foreclosures appeal to you, start investing in the foreclosure market. If you want to be a landlord, look to out of state owners to focus your real estate marketing efforts.

Step #3 - Be consistent and persistent: Real Estate is not a get rich quick scheme. Real Estate is get wealthy over time and put some quick cash in your pocket today. You’ve got to follow your plan and stick with it to see real results in real estate. You’ve also got to continue to increase your education and your experience.

Step 4 - Don’t fall into the “Analysis Paralysis”: Learn to analyze properties quickly. Don’t get caught up overthinking. It’s quite simple actually: What’s the property worth? What does the property need for repairs? And how much can you get the property for? It all comes down to numbers!

Step 5 - Become a master of finance!: Real estate is the business of marketing and finance. You must learn about mortgages and interest rates and loan programs that are out there. You must know how to use finance to negotiate your deals and to sell your properties.

Step #6 - Become a skilled problem solver: The reason you will get real estate deals that others don’t, is because you are able to solve people’s problems. Anything goes on the real estate playing field. You’ve got to be ready!

Step #7 - You must continue your education: It is important that you are always investing in your education and learning new tactics, strategies and tips that will help you make more in real estate.

If you enjoyed this article, make sure to look up the other articles discussing The 7 Simple Steps To Making Money on Real Estate. The next article discusses Step #1 – set your plan in further detail!

The Next Level Institute is dedicated to helping real estate investors – whether a brand new or a seasoned investor – become more successful with less effort. Get your free 4-part mini-course on finding deals AND learn the 7 keys to sucking in the deals faster than a “Hoover” vacuum! Get your free e-book at: http://www.7steprealestate.com

Article Source: http://EzineArticles.com/?expert=Heather_Seitz http://EzineArticles.com/?7-Simple-Steps-To-Real-Estate-Investing&id=124311

3 Of The Top 9 Reasons That The Real Estate Bubble Is Bursting

3 Of The Top 9 Reasons That The Real Estate Bubble Is Bursting
By [http://ezinearticles.com/?expert=Louis_Hill]Louis Hill

If you own real estate or are thinking of buying real estate then you better pay attention, because this could be the most important message you receive this year regarding real estate and your financial future.

The last five years have seen explosive growth in the real estate market and as a result many people believe that real estate is the safest investment you can make. Well, that is no longer true. Rapidly increasing real estate prices have caused the real estate market to be at price levels never before seen in history when adjusted for inflation! The growing number of people concerned about the real estate bubble means there are less available real estate buyers. Fewer buyers mean that prices are coming down.

On May 4, 2006, Federal Reserve Board Governor Susan Blies stated that "Housing has really sort of peaked". This follows on the heels of the new Fed Chairman Ben Bernanke saying that he was concerned that the "softening" of the real estate market would hurt the economy. And former Fed Chairman Alan Greenspan previously described the real estate market as frothy. All of these top financial experts agree that there is already a viable downturn in the market, so clearly there is a need to know the reasons behind this change.

3 of the top 9 reasons that the real estate bubble will burst include:

1. Interest rates are rising - foreclosures are up 72%!

2. First time homebuyers are priced out of the market - the real estate market is a pyramid and the base is crumbling

3. The psychology of the market has changed so that now people are afraid of the bubble bursting - the mania over real estate is over!

The first reason that the real estate bubble is bursting is rising interest rates. Under Alan Greenspan, interest rates were at historic lows from June 2003 to June 2004. These low interest rates allowed people to buy homes that were more expensive then what they could normally afford but at the same monthly cost, essentially creating "free money". However, the time of low interest rates has ended as interest rates have been rising and will continue to rise further. Interest rates must rise to combat inflation, partly due to high gasoline and food costs. Higher interest rates make owning a home more expensive, thus driving existing home values down.

Higher interest rates are also affecting people who bought adjustable mortgages (ARMs). Adjustable mortgages have very low interest rates and low monthly payments for the first two to three years but afterwards the low interest rate disappears and the monthly mortgage payment jumps dramatically. As a result of adjustable mortgage rate resets, home foreclosures for the 1st quarter of 2006 are up 72% over the 1st quarter of 2005.

The foreclosure situation will only worsen as interest rates continue to rise and more adjustable mortgage payments are adjusted to a higher interest rate and higher mortgage payment. Moody's stated that 25% of all outstanding mortgages are coming up for interest rate resets during 2006 and 2007. That is $2 trillion of U.S. mortgage debt! When the payments increase, it will be quite a hit to the pocketbook. A study done by one of the country's largest title insurers concluded that 1.4 million households will face a payment jump of 50% or more once the introductory payment period is over.

The second reason that the real estate bubble is bursting is that new homebuyers are no longer able to buy homes due to high prices and higher interest rates. The real estate market is basically a pyramid scheme and as long as the number of buyers is growing everything is fine. As homes are bought by first time home buyers at the bottom of the pyramid, the new money for that $100,000.00 home goes all the way up the pyramid to the seller and buyer of a $1,000,000.00 home as people sell one home and buy a more expensive home. This double-edged sword of high real estate prices and higher interest rates has priced many new buyers out of the market, and now we are starting to feel the effects on the overall real estate market. Sales are slowing and inventories of homes available for sale are rising quickly. The latest report on the housing market showed new home sales fell 10.5% for February 2006. This is the largest one-month drop in nine years.

The third reason that the real estate bubble is bursting is that the psychology of the real estate market has changed. For the last five years the real estate market has risen dramatically and if you bought real estate you more than likely made money. This positive return for so many investors fueled the market higher as more people saw this and decided to also invest in real estate before they 'missed out'.

The psychology of any bubble market, whether we are talking about the stock market or the real estate market is known as 'herd mentality', where everyone follows the herd. This herd mentality is at the heart of any bubble and it has happened numerous times in the past including during the US stock market bubble of the late 1990's, the Japanese real estate bubble of the 1980's, and even as far back as the US railroad bubble of the 1870's. The herd mentality had completely taken over the real estate market until recently.

The bubble continues to rise as long as there is a "greater fool" to buy at a higher price. As there are less and less "greater fools" available or willing to buy homes, the mania disappears. When the hysteria passes, the excessive inventory that was built during the boom time causes prices to plummet. This is true for all three of the historical bubbles mentioned above and many other historical examples. Also of importance to note is that when all three of these historical bubbles burst the US was thrown into recession.

With the changing in mindset related to the real estate market, investors and speculators are getting scared that they will be left holding real estate that will lose money. As a result, not only are they buying less real estate, but they are simultaneously selling their investment properties as well. This is producing huge numbers of homes available for sale on the market at the same time that record new home construction floods the market. These two increasing supply forces, the increasing supply of existing homes for sale coupled with the increasing supply of new homes for sale will further exacerbate the problem and drive all real estate values down.

A recent survey showed that 7 out of 10 people think the real estate bubble will burst before April 2007. This change in the market psychology from 'must own real estate at any cost' to a healthy concern that real estate is overpriced is causing the end of the real estate market boom.

The aftershock of the bubble bursting will be enormous and it will affect the global economy tremendously. Billionaire investor George Soros has said that in 2007 the US will be in recession and I agree with him. I think we will be in a recession because as the real estate bubble bursts, jobs will be lost, Americans will no longer be able to cash out money from their homes, and the entire economy will slow down dramatically thus leading to recession.

In conclusion, the three reasons the real estate bubble is bursting are higher interest rates; first-time buyers being priced out of the market; and the psychology about the real estate market is changing. The recently published eBook "How To Prosper In The Changing Real Estate Market. Protect Yourself From The Bubble Now!" discusses these items in more detail.

Louis Hill, MBA received his Masters In Business Administration from the Chapman School at Florida International University, specializing in Finance. He was one of the top graduates in his class and was one of the few graduates inducted into the Beta Gamma Business Honor Society.

Mr. Hill received his undergraduate degree from the University of Florida with a double major in Finance and Risk Management.

For the past several years he has been working in a South Florida commercial real estate lender that specializes in financing real estate developers. Mr. Hill has seen firsthand the challenges and pitfalls that real estate developers are experiencing, and how the real estate market has been deteriorating rapidly. He is also a professional consultant to professional real estate developers and investors.

Previously, he was in management consulting. Additionally, he was a professional trader in the stock market and witnessed the stock market bubble bursting in 2001 and now is concerned about the real estate bubble.

Mr. Hill is very active in many civic groups and charities.

Article Source: http://EzineArticles.com/?expert=Louis_Hill http://EzineArticles.com/?3-Of-The-Top-9-Reasons-That-The-Real-Estate-Bubble-Is-Bursting&id=192244

Real Estate Property Values - Ranked High

Real Estate Property Values - Ranked High
By [http://ezinearticles.com/?expert=Neguletu_Octavian]Neguletu Octavian

Rob Norquist, a real estate agent admits that Newport Beach is as active as it used to be, with some good record sales. He also agrees with the fact that a property, should never be considered deprecated, and as a seller, you should never give up and use the low end price. It is true that, during a certain period of time, depending on the real estate market, client's desire, real estate auctions, there may be moments when a property's price drops, but not forever.

Other cities such as, Huntington Beach, Costa Mesa, Irvine or Mission Viejo - are considered among other 25 cities as being the ones with the best real estate property values, with average values of $680,000 and more. The national average value in 2007 was $194,300.

However, some property values are based on subjective answers from residents living in a certain home, so the given numbers , and real estate evaluation may be hanging on a wishful thinking instead of a real appreciation . This is where real estate auctions come in picture, to inform potential clients about the property, and the investment possibilities, giving them a clear image of the real estate's worth.

Even though some buildings such as Orange County properties , dropped their values in 2007, but they recovered extremely well after. So this is another reason why as a seller, you should never fear if you observe a temporally value drop, because it is normal from time to time.

For instance, about 81% owners, sellers, agents, trusted in 2007 that their estate property values were over $1 million, against 75% in 2006. So things are for the best and it would appear that most of estate agents have finally understood what this business is really about. It takes a lot of patience and ability to maintain your property's value among top ones on real estate market.
But Norquist, trusts that many Newport Beach arguments are near the mark, sustaining that this city has survived the "housing slump" better than other locations. However, the unexpected surprise attacked more on sales, which he admits that they are on a falling edge right now, but there is still hope for better times.

Newport Beach is very well known for its highest-valued real estate properties in the U.S., being a perfect place for real estate business . It's location and proximity to the water, and the beach front view increase it's real estate value considerably. Auctions in this area are very interesting and those who are interested in real estate business domain should never miss them. You can learn a lot on such events.

Experienced real estate agents or even friends will surely advise you that as a buyer you are very likely to come across many real estate properties in foreclosure having perhaps no equity,being over priced . In such moments, lenders sometimes choose to accept a smaller amount than the initial.So you get in the negotiations process. As a hint, when you realize the over pricing phenomenon, you have to understand that this happens when the real estate agent , or seller is aware of the real estate property's value, and he tries his luck in a raising price. So watch out! The negotiation can become a difficult process especially when reasonable terms are not agreed by both sides: owner and buyer. Negotiations can occur privately or in public, where real estate auctions come in the picture. Of course, a real estate auction is safer and more trustful than a private one. Private negotiations occur especially when the agent is a close friend or relative to buyer's, and because of the friendly environment some details regarding even the real estate transaction may be skipped. So in situations like this be careful.

Even as a friend, for a real estate agent , money comes first, and friendship after. Of course, during such a negotiation, there can be all sort of problems, such as mortgage value, real estate market, all sort of official formalities, conflict of interests in a particular area etc. Moreover, time a very important issue when real estate auctions are involved. As a general rule, and as an advise for a potential buyer, negotiation process should not be extended on a long period of time, because, as I said before, in time, real estate properties drop their values, and the client's interest together with it. In this case, not only does the buyer loose, but the real estate agency as well. Why?Because if a property's value drops, the price must drop as well, if you ever want to sell it again. In this case the under priced phenomenon appears. This is why short sales are preferred. Many Realtors, and clients started using this strategy, because they faced the problem regarding their property's value.So they decided the selling process should not take too long.

Another important issue refers to the well known "acceleration clause" , which is an official word met in any mortgage document, meaning that the lender, after the real estate property is sold, can demand the payment of the remaining balance for the loan. Realtors can provide more information about this contractual right. If this clause is good or bad for a real estate transaction, it is hard to say, because it has its advantages and disadvantages. Buying a real estate property which has already a mortgage loan represents a pretty raised risk. Why? Because first of all, if the mortgage loan was contracted for many years, depending on the interest's rate, and marketplace evolution, you may come to pay the house's price 3 times more. However, if you have experience in monitoring the market place, and find a right moment when every interest's value drops, you could go for it. It's kind of a gambling in this business, and Realtors, or individual real estate agents know it best.

Realtors and real estate agents are here on the real estate market, to help clients understand how they can value their houses, what should they look for when trying to sell or buy a house, how to negotiate, and how to win a real estate transaction. Some may say that buying or selling a real estate property is easy, but the fact is that pricing a house is a very difficult process. Many real estate agents, brokers, have suffered many defeats before their first good business, so do not expect their job to be an easy one.

Unfortunately, a concerning price and sales gains of these past years have determined in many cases quitting the real estate business. Many real estate agents who have seen the future preferred to do something else than real estate business. The credit market is also in a critical position, as many Realtors have observed. Mortgage values are also a result of real estate market position right now. Real estate investors have diminished their participation number to real estate auctions, as a sign they have seen it too.

However, as we all know how media does it, you have to understand that reporters have latched onto these issues, focusing only on its negative effects, and they have succeeded in putting fear in anyone who is interested in real estate business. For more of this business go to http://www.modfind.com my real estate business specialized website.

Neguletu Octavian

Article Source: http://EzineArticles.com/?expert=Neguletu_Octavian http://EzineArticles.com/?Real-Estate-Property-Values---Ranked-High&id=1685730