Real Estate: 2007

Friday, December 14, 2007

How to Buy the Right Home or..

Most potential home buyers want to purchase the home of their dreams while paying the lowest possible price. These people follow certain steps to educate and prepare themselves for what will probably be the biggest financial decision in their lives.

There are other people who take a fast-food approach to buying a home, taking the first thing that's offered to them without gathering enough information to help them make an informed decision. As a result, they don't get the home they need at a price they can afford.

If you're one of these fast-food decision makers, and want to quickly gulp down a financial disaster, follow these home buying steps.

* Ignore your financial goals. Don't figure out how much you can afford to pay for a home each month and how that fits into your lifestyle or future income. Just buy as big a house as your lender will give you the money to buy.
* Do not compare real estate agents. Take the first agent whose name you see on your grocery cart. Don't question the commission rate proposed your selected real estate agent.
* Take the first loan rate and mortgage product offered by whatever lender advertises in your local newspaper. Comparing rates and loan types will only take up your time, and all you could do is save money anyway.
* Have your Uncle Herb inspect the house before you buy it, rather than hiring a qualified, professional inspector. You'll save money now, which is more important than avoiding expenses later (like replacing your termite invested roof that Uncle Herb did not detect.)
* Don't research the schools or other aspects of life in your potential neighborhood. Your can always home tutor your child if the school isn't very good, and who cares if your neighborhood association won't let you build the shed you want in your back yard?

If you're someone who just takes what they're given and don't care what you're getting yourself into, follow every one of these steps and you'll be sure to buy the wrong home for the wrong price at the worst time.

If you don't make "fast-food" decisions and take whatever time and effort is necessary to buy the right home at the right price at the right time, then ignore every one of these tips like the plague, and you will be more likely to find the home of your dreams.

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source: homescout.com

Do I Have to Pay a Commission to Sell My Home?

Commission to a real estate agent is just one of many standard costs you pay when selling a home… or is it? If you are selling a home, of course you want to get it sold fast and at the best possible price. Using a real estate agent is still proven to be the most effective way to do so, and that's why the agent gets paid commission.

However, sellers these days have more options than just signing a listing agreement with a traditional agent and paying standard commissions. Instead of paying the typical five to six percent commissions, there are alternative ways to save.

Ask your agent for a discount

More and more traditional brokers and agents offer a blend of pricing and services. Traditional agents sometimes have more flexibility in commission pricing if you are a past client. Particularly if you list your home, and then purchase another property with the same agent, the agent may be willing to offer a reduction in fees. Non-franchise agencies typically are more able to reduce commissions than the major franchises like Century 21 and Coldwell Banker.

Alisha Wade of RE/MAX Achievers in Scottsdale, Arizona, may agree to reduce commissions for repeat clients, as much as five percent total. "If I represent a client who both lists a property and buys a new home with me, I will offer a reduced rate," says Wade. "I value my clients and want to keep them for life, so I am happy to do it."

List with a discount broker
You can locate discount brokers in most areas of the country. One such broker is Allen Bertke, owner of Bertke Real Estate Consulting Services in Santa Barbara, California. Because he is an independent broker not affiliated with any franchise, Bertke is able to offer his services on a sliding scale to his prospective home sellers. His fee varies depending on the sale price of the house but is generally 2/3 of one percent.

Bertke said that even though he discounts his commission, an agreement to list with him "is entirely full service and includes listing on the MLS, yard sign, lock box, color fliers, signs for open houses, open houses (held by his associates or the seller), broker tours and ad design." One of the only add-on fees is for the advertisement.

ZipRealty Inc., www.ziprealty.com, is a quickly growing national brokerage firm, which offers substantial savings on listing services to homeowners. ZipRealty offers a minimum listing fee of $2,000, plus an agreed upon cooperating brokerage fee.

List your property "For Sale by Owner"
Advertising a property For Sale by Owner (FSBO) is a common alternative for home sellers. One of the downsides to selling a home "by owner" is the potential to miss qualified buyers who are working directly with area real estate agents. Most real estate agents show their qualified buyers only properties listed on the MLS since the commission agreements are already negotiated up front and the agent is "guaranteed" a commission. However, with a lot of research, continued effort and a little luck, you may be successful in finding a qualified buyer on your own who can close when you want, at the price you are asking.

Explore different Real Estate sites on the Internet
Many Internet sites offer feeds to local MLS's where you can view listings of properties for sale. These sites do not facilitate the actual real estate transaction, but it enables sellers an alternative to using an agent the traditional way. One of the more popular sites is www.Redfin.com, a Seattle company now in San Francisco and soon available in selected East coast cities. On Redfin, sellers can list a home and put it on the MLS (Multiple Listing Services) for as little as $2,000.

There are also sites that offer flat fee listing services. These services generally average between $199 and $499 and typically only provide a listing on the MLS.

Select an agent who offers a "menu" of real estate services
Some agents structure their pricing based on a sliding scale for the level of service you choose, which can save you money. The services offered range from listing the property on MLS and posting a sign and a lock-box, to providing professional fliers, taking photos and assisting with staging. Advanced services include holding open houses, doing online and offline advertising like search marketing, handling negotiations and details like meeting home inspectors and contractors, and closing the sale.

If you are interested in saving money when you sell your home, there are options available. However, be prepared to do extra work that an agent would normally do for you. Sometimes, you just get what you pay for.

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source: homescout.com

Sell Your Home Fast Without Sacrificing Price

If you need to sell your home this year but are nervous because of the headlines, read on. Is it a good time to sell? Some real estate experts say yes, while others say no.

In January 2007, an article from The National Association of REALTORS® stated that "existing home sales are expected to steadily increase into 2008." But in early April, the monthly forecast included a 0.7 percent median price drop for home sales in 2007.

In 2006, the difference between prices paid for homes and prices that homebuyers wanted to pay grew. HomeGain reported that in August 2006, home sellers sought sales prices 18% more than the real estate market was able to support, based on actual home sale prices.

The balance of power has apparently started to adjust. The difference betwen home seller expectations and actual home prices paid has narrowed to 14%. Through early March, the average home sales price was $234,308 and the average price expectation from home sellers was $273,924. When selling their home, home seller pricing expectations have clearly dropped. With this adjustment taking place in the real estate market, home sales should begin to improve.

Are you asking yourself, "Should I sell my home?" Have you already decided to sell your home, or are you even in a positon where you don't really have much choice?

If the answer to any of these questions is yes, then you are a home seller, regardless of all the conflicting information about home prices, or general real estate market flux. You need some advice!

Here are 3 tips to help you get the best price for your home sale, without having to leave it on the market for an undue length of time:

Home Selling Tip 1:
Consider the real estate market and price your home accordingly.

Don't expect too much. Setting your home's selling price too high can mean more time on the market. Home buyers are smart and they are armed with a tremendous amount of information. Home buyers, and their real estate agents, know what your home is worth. They won't pay more for your home than it's worth, and they certainly won't do so quickly. To find recent home sales prices and also get an estimated value of your home, try HomeScout's Instant Home Values tool, or discover What your home is worth by getting a professional home valuation from a REALTOR®.

Home Selling Tip 2:
Increase Your Homes Value Before Putting the For Sale Sign in the Yard.

Small home improvements go a long way in raising your home's selling price.

This Home Sale Maximizer tool can help you discover the home improvements that will give you the most bang for your buck. Use it, and save time and money by insuring that your efforts will give you a positive returrn. Also, listen to your REALTOR®. He or she knows what you need to do to your home to sell it for more money.

Home Selling Tip 3:
Find the Best REALTOR® to Sell Your Home.

Your real estate agent should be using online and offline resources to find buyers for your property. Nearly 80% of homebuyers start looking for a new home online. Your home listing needs to be online to reach the maximum number of buyers. You can find a tech savvy REALTOR® with HomeScout's tool to find local REALTORS® in your neighborhood, which will allow you to compare many agent details like real estate background, number of homes sold, commission rates for selling your home and more.

Finally, consider your home sale from a home buyer's perspective. If you were buying your home instead of selling it, what would you pay? What would you like to see fixed up? The honest answers to these questions are the answers to the question: "How can I sell my home quickly, at a the best possible price?"

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source: homescout.com

Will Your New Home Community Offer a High Quality of Life?

One of the most frequently cited criteria for the selection of a new home community is location, location, location. Where you choose to live says a lot about your lifestyle, and it can shape your quality of life. Shopping, weather, and commuting times are a few major quality of life factors that come up when searching for a new home. ‘Family needs’ are top-of-mind when deciding where your new home should be located. This includes neighborhood safety and high quality schools.

Know the Community Educational Options
If you have children in school, it is important to consider the educational options near your new home. If you work with a local real estate agent, they should have a wealth of information and knowledge about schooling options near your new home.

If you feel that you need a second opinion about schools in a particular neighborhood, you can consider visiting the U.S. Department of Education, http://www.nces.ed.gov. This website is full of very useful information on schools in your neighborhood including statistics and ratings on those schools. Additionally, www.greatschools.net allows you to view similar statistics such as school ratings, diversity, and parent ratings. Great schools do not always coincide with the safety of a neighborhood. Is the neighborhood you are scoping-out really safe?

Is the New Home in a Safe Area?
When searching to buy a house in a new neighborhood, personal safety is top-of-mind. Low crime, large homeowner rates, education level, and demographics are some factors that help determine the safety level of a city, town or neighborhood.

Is the house located in a neighborhood with mostly renters or buyers? Homeowners often focus more attention on home and yard maintenance and they have more of a stake in the safety of their neighborhood. A neighborhood full of renters may be full of college students and others that only live in the neighborhood for a year or so before the place is up for rent again. High renter turnover can contribute to higher levels of crime then more established neighborhoods.

How high is the crime level in the new area? Finding out about community crime is usually very assessable statistic. To verify crime levels you may want to check with local crime bulletins, community watch groups, and visit the Bureau of Justice at www.ojp.usdoj.gov/bjs. Also, you might consider subscribing to the local newspaper or viewing the local paper online and following the police blotter. The local police department should also have statistics on crime in particular neighborhoods.

What is the Safety Landscape of the Community?
The best way to scope out the safety level of a new neighborhood is to do some investigating of your own. Many communities change depending on the time of day, day of week, and season. Remote research is a great way to feel out the landscape of a new area, but it is best to speak with people in the neighborhood and learn about their view of safety in the community. Looks can be deceiving and sometimes a wholesome looking neighborhood can turn into a haven for crime and loitering at night.

The Best Cities to Buy a New Home
Every year, CNN covers the “Best Places to Live” list. CNN conducts researches and gathers statistics in order to accumulate a list of the top best cities to live. Factors that go into raking cities include educational quality, home prices, crime level, employment rate, and environment. In 2006, CNN Money reports the follow cities as the top places to live in the United States:

* Fort Collins, Colorado
* Naperville, Illinois
* Sugar Land, Texas
* Columbia/Ellicott City, Maryland
* Cary, North Carolina

To get a feel for what homes and neighborhoods in these cities look like, view New Home Communities on HomeScout.

Choosing a new home and neighborhood is a very important decision for you and your family. There are so many resources available to assist you in your home buying decision. Before you buy a house, you need to gather information from your local REALTOR®, community members, and internet resources. Remember there is no substitute for personal investigation; visit the new neighborhood regularly and at different days and times to get a feel for the lifestyle and safety level. Your real estate agent can help you determine if the house and neighborhood are a good fit for you and your family. Buying a new home is a big-step, but with some determination and research you will find the community that matches your needs.

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source: homescout.com

Pros and Cons For Automated Home Valuation Tools

When it comes to selling your home, a knowledgeable, experienced real estate agent remains your best source for an estimate of its current value.

by Barry James, May 26, 2007

Over 80% of home owners begin their effort to sell their home on the internet. Many choose to get an estimated values of their home’s worth using a variety of home value tools that are available on the internet. Some of these tools have been available since the year 2000, and over the last two years they have regained their popularity among both homesellers and buyers alike.

Using the automated home valuation tools is fun, but their results must be interpreted in the light of the methods used to generate their results. Anyone who thinks they can rely on the estimated home price provided by an automated valuation tool first needs to understand a few things about their limitations. Here are a few pros and cons you need to consider when using any of these tools.

Pros of Automate Home Valuations

* They’re free. The major automated home valuation tools are offered at no charge to the consumer.
* They’re easy to use. Just enter in the location of the home and hit enter. Everything else is done behind the scenes by a computer.
* They’re fast. Within seconds you’ll have an estimated home value, expressed either as an exact price or as a price range.
* The best ones also provide information about the home’s neighborhood, such as homeowner demographics, average income, school performance data, and even satellite photos of the home and its surroundings.
* They’re loads of fun because they allow you to be anonymously nosy. You can find the estimated value of your neighbor’s home from the privacy of your home, without anyone finding out. Of course, your neighbor can do the same for your home.

Cons of Automate Home Valuations

* All automated home valuation tools are based on the past. Each predicts your home’s value using historical sales data for nearby and comparable homes that sold in your neighborhood over the last year to eighteen months. These estimated prices could be higher or lower than your home really might be worth.
* They’re based on publicly-available data. Sometimes this data is current, and sometimes its months old. It depends on the ability of thousands of local municipalities to provide timely data and this varies widely by jurisdiction throughout the United States. The data is also frequently inaccurate e.g. a three bedroom house may be listed as having two bedrooms.
* The data on which they’re based doesn’t differentiate between refinanced mortgages and real sales data—both look like a home sale to the automated tools and their predictions of a home’s worth is sometimes skewed as a result.
* In today’s market they tend to overestimate the value of the home because; 1. they’re based on past sale prices, not on the current real estate market where falling prices are the norm; 2. they are the result of a computer programmer’s ability to generate accurate data using computer-based formulas and; 3 they can’t account for the current condition of your home.
* The most important factor in determining your home’s real value at any given moment is the condition of the local real estate and lending markets. Automated home valuation tools cannot determine the number of homes that are currently on the market and the number of buyers available to buy them. If your neighborhood has few homes and a lot of potential buyers, sellers may get more than the valuation tool’s estimate. If there is a glut of available homes and few buyers, buyers may have the leverage to get a a lower price than that estimated by the valuation tools. They also cannot determine the impact of the local lending environment, where banks may be reluctant to provide mortgages to any but the most credit-worthy homebuyers.

To get an accurate estimate of the value of your home you need to consider recent nearby and comparable home sales, the number of available homes and potential buyers, your home’s condition, the availability of mortgage money, and a variety of other factors that a computer formula may not be able to accommodate. Throughout the United States falling home prices and the declining number of home sales gives buyers the upperhand in price negotiations. Because of this, those sellers who think a home valuation tool will provide them with a reliable sales price may be sadly surprised when their home doesn’t sell or sells for much less than they expected.

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source: homescout.com

Real Estate

Friday, December 14, 2007

How to Buy the Right Home or..

Do I Have to Pay a Commission to Sell My Home?

Sell Your Home Fast Without Sacrificing Price

Will Your New Home Community Offer a High Quality of Life?

Pros and Cons For Automated Home Valuation Tools

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