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Lawyers can help when Buying or Selling Real Estate

September 27th, 2006
Lawyers can help you when Buying or Selling Real Estate
 
It is safe to say that the majority of people think badly about lawyers. They think that they are after everyone’s money, and that they do not have any scruples whatsoever. But the second that somebody is buying or selling real estate, lawyers are always the best people in the world. It is funny how things work out. But in all seriousness, lawyers definitely have their place in the real estate industry. They can help both buyers and sellers in a variety of different ways. In fact, more and more people are using lawyers to their advantage even if they do have to pay a bit of extra money for their services.
 
If you are a buyer or seller of real estate you will need to sign contracts and applications along the way. Do you know how many people every year sign their name to contracts that they know nothing about? And a lot of the people end up regretting it in the end. The good thing is that lawyers can help you to combat this problem.
 
Anytime that you have to sign anything, as a buyer or seller of real estate, you may want to have a lawyer look it over for you. Not only will they be able to tell you if everything is legit, but they will also be able to catch any sneaky words that you may have missed. Think about it; do you know everything there is as far as contract verbiage is concerned? The answer to this question is probably not for the majority of people. But a lawyer is trained to know what to look for when it comes to contracts. 
 
Lawyers can also help you to draft contracts and applications if you are selling your home by owner, or renting out a property. Instead of constructing your own contracts, you will want a lawyer to do it for you. This way you are ensured that all of your bases are covered. You do not want to leave yourself open for problems down the line. 
 
When searching for lawyers that can assist you, you may want to opt for one that has experience in the real estate industry. There are lawyers that specialize in real estate. These are the ones that can be the most help to you because they have seen every case imaginable. The bottom line is that sneaking something by a lawyer with experience in real estate is going to be very difficult to do; if not impossible.
 
Overall, lawyers do have a place in today’s world; it is called the real estate industry! If you are buying or selling real estate you may want to look into the services that a lawyer can offer. They can help to make the process much easier on you. 

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Condo Market Settles Down to a Less-Frantic Pace

September 25th, 2006
Condo Market Settles Down to a Less-Frantic Pace
Washington Post Staff Writer

For all those who lost out in bidding wars and failed to get into that trendy new condo last year, 2006 has brought about a kinder, less-feverish spring season.
Gone are the multiple bids with escalation clauses and the projects that sold out while they were still gigantic holes in the ground.
In 2006, more condo developers will likely be wooing buyers with a nice fat check at settlement, an offer to waive condo fees for a few months — or a free flat-screen TV set, laptop computer, even a Vespa scooter.
Such incentives started popping up in the latter part of 2005 and will likely continue as an ever-increasing supply of units become available.
Nearly 25,900 condo units are under construction or being marketed now, up from about 14,500 a year ago, according to a survey by Delta Associates, a real estate information firm in Alexandria. Another 27,600 units are planned over the next three years, although they have not yet been advertised and developers may change plans.
At the same time, sales volume has dropped as investors have exited the market. After selling more than 3,000 new condos for every quarter of 2005, developers moved fewer than 2,000 units so far during the first quarter of this year, Delta said.
In Northern Virginia alone, sales slowed to 920 so far this quarter from 2,000 in the fourth quarter of 2005, Delta said.
And what about prices?
They’re flat, Delta said, and they will stay flat for a while.
Condo prices increased by 24 percent over the first six months of last year, but increases ground to a halt in the second half of 2005, Delta said. They stayed that way during the first quarter of 2006.
Greg Leisch, chief executive of Delta, predicts prices will remain stable for the next 18 months or so as inventory burns off.
Big price reductions, however, are unlikely, Leisch and others said, because the region is adding jobs and the economy remains strong.
And while the 1,984 new units sold in the first quarter of this year represented the lowest level of activity in two years, sales have picked up in recent weeks, Delta said. The firm predicts a sales pace of 2,500 condos per quarter for the rest of the year.

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Younger Home Buyers More Prevalent

September 23rd, 2006
Younger Home Buyers More Prevalent
Thursday, September 21, 2006 -
 
 
WASHINGTON, D.C. - As they begin to enter the housing market, many consumers in their 20s are more likely to buy a home at a younger age than their older brothers and sisters as well as their baby boomer parents, and are not necessarily waiting for marriage or even a long-term relationship before becoming homeowners.

“The next generation of homeowners is beginning to exert its influence on the housing market,” said ThomasM.Stevens, National Association of Realtors president from Vienna, Va., and senior vice president of NRT Inc. “Many younger buyers have seen the wealth-building effects of homeownership in their parents and understand the value of housing as a good long-term investment.”

The motivations, interests, and home buying approach of some younger buyers are chronicled in “Tomorrow’s Buyers: Who They Are and What They Want” in the September 2006 issue of REALTOR Magazine. The report integrates NAR research with the experiences and attitudes of real-life buyers who represent different demographic populations, putting a human face on statistical trends.

The percentage of first-time homebuyers under age 25 has been increasing in response to historically low interest rates and continued confidence in the long-term housing market, from 11 percent in 2001 to 14 percent in 2005, according to the 2005 NAR Profile of Home Buyers and Sellers. “Owning a home is no more burdensome than renting, and in the long term, it’s the better investment,” said KristenCarreira, a 26-year-old homeowner in Pittsburgh.

Carreira is also part of a trend in single female home buyers. While married couples are still the norm, they represent a smaller share of the home buying public than they did just 10 years ago, from 70 percent of home buyers in 1995 to 61 percent today, says NAR. During that same time, the proportion of single women buying homes has increased, from 14 percent in 1995 to 21 percent today.

Younger buyers are also likely to use technology and the Internet in their home buying search. In 2005, according to NAR research, the median age of buyers who used the Internet to search for homes was 11 years younger than those who did not, at 38 and 49, respectively.

“Realtors have adapted to meet the needs of this growing population of young home buyers,” said Stevens. “More than one-third of NAR’s 1.3 million Realtor members have had special training and lots of experience in buyer representation and technology. That expertise is reflected in special designations and certifications, such as the Accredited Buyer Representative (ABR) designation and e-PRO certification. A commitment to understanding the demands of this changing marketplace is just one more way Realtors add value to the real estate transaction.”

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PMI: Home Price Deline Increses

September 22nd, 2006
PMI: Home Price Decline Risk Increases
Kristin Campbell | 09.19.06
Rapidly slowing appreciation and declining affordability contributed to an increase in the risk of home price declines across the country, according to the PMI U.S. Market Risk Index released today.

The fall index scores increased for all of the nation’s 50 largest metropolitan statistical areas and showed a 32.8 percent chance that home prices will decline in the next two years. However, strong economic fundamentals continue to underpin many cities. The index also showed that 18 MSAs have at least a 50 percent change of home price decline, up from 13 MSAs last quarter, the report said.

While annual appreciation remained in the double digits in 20 MSAs and topped 20 percent in four – Phoenix, Orlando, Miami and Tampa, — the rate of appreciation slowed in 41 of the 50 largest MSAs. In 13 areas, appreciation dropped below the historical norm of roughly four to six percent. Detroit recorded the only year-over-year decline, 0.61 percent, among the top 50 MSAs.

The risk of price declines continues to be concentrated in California and along the Eastern Seaboard, the report shows. California is home to eight of the 18 MSAs facing a greater than 50 percent chance of a price decline (San Diego, Sacramento, Oakland, Santa Ana, Riverside, Los Angeles, San Jose, and San Francisco). The Northeast is also home to eight (Nassau-Suffolk, New York, Boston, Cambridge, Providence, Edison, Newark, and Washington, DC). The remaining two are Fort Lauderdale and Las Vegas.

However, in most areas, the risk of price declines continues to be balanced by strong economic fundamentals, PMI’s Fall 2006 Economic and Real Estate Trends report found. Unemployment remains low in most of the country and job growth is positive, with the exception of the upper Midwest. All but four of the top 50 MSAs (Detroit and Warren, Mich., Newark and New Orleans) saw employment growth. Las Vegas led the nation in employment growth at 5.32 percent over the past year, followed closely by Phoenix at 5.20 percent. In the upper Midwest, rising unemployment is putting pressure on prices, resulting in Detroit’s year-over-year decline.

The PMI U.S. Market Risk Index, published quarterly, is based on the House Price Index from the Office of Federal Housing Enterprise Oversight, labor market statistics from the Bureau of Labor Statistics, and the PMI Affordability Index, which uses local median household income, home price appreciation, and the price of a conventional mortgage to calculate the local share of mortgage payment to income relative to its baseline year of 1995.

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Recognize an Honest Real Estate Investor

September 21st, 2006
Recognize an Honest Real Estate Investor
 
When it comes to recognizing an honest real estate investor there are a few things that you can look at. If you are involved in the real estate industry you are probably aware of how much money can be made by investing. But at the same time, you are probably also aware that there are a lot of people out there who are not as honest as they may seem. For this reason, it is important to be able to pick out an honest real estate investor over the rest of the bunch. Believe it or not there are people who will call themselves real estate investors, but they are actually nothing more than conmen who are trying to get their hands in your pockets. If you do not know the difference between the two you may end up losing a lot of money in the long run.
 
The best way to recognize an honest real estate investor is to ask them for references. Of course you want to do this in a way that will not scare them away. But at the same time it is a good idea to be straight forward with what you are doing. If you have any doubts about who you are dealing with, references can surely help to clear them up. You cannot base your entire decision on references alone, but they are a great place to start.
 
Also, when speaking with a real estate investor try to get an idea of what type of experience they have. Ask them what properties they have recently bought, and try to get as many details as you can from them. Chances are that if you are dealing with a conman they will not be able to answer all of your questions. If a so called real estate investor begins to stumble on his words, and make up lies, it is safe to say that you have found a bad seed. At this point you will want to turn around and run in the opposite direction.
 
But the best way to recognize an honest real estate investor is by using your common sense. If you think that you are being lied to you probably are. And if a deal sounds too good to be true, again you are probably being scammed. By simply using your common sense you will be able to snuff out conmen in no time at all. Always listen to your gut feeling, and if you have doubts do not move forward until you have further details to rely on. 
 
It is a shame that there are people out there who are just trying to scam you out of your money. And when it comes to the real estate industry, there are a lot of these people. These scammers know that there is a lot of money in real estate, and they use this to their advantage. If you use your common sense and follow the tips above you should be able to figure out a conman before you fall prey to one. And remember, common sense is your biggest ally when it comes to finding an honest real estate investor. 

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Mortgage Rates are Rising

September 19th, 2006
Mortgage Rates are Rising
 
If you are in the market for a new home there is one thing that you must be aware of in particular. That being that mortgage rates are rising at a steady pace. This does not mean that they are going to get entirely out of control, but as time goes on it is safe to say that the mortgage rates are going to continue on an upward trend. You may not think that a couple of points can do much to your overall price, but you may be surprised. The lower the mortgage rate, the lower your monthly payment. And just a couple of points can bump you up in payment quite a bit.
 
When shopping around for a mortgage, make sure that you do all of your homework and research. Remember, just because mortgage rates are on the rise does not mean that every lender is offering the same deal. For this reason it is quite essential that you shop around for mortgage rates. You may find that one lender will give you a mortgage rate that is a point lower than another. All in all this can mean thousands of extra dollars in your pocket by the time your loan is paid off. 
 
Also, make sure that you know what the average mortgage rates are in your area. This will protect you from getting scammed up front. And when you agree to a higher mortgage rate than you have to up front, it is going to mean more money that you have to pay during the course of your loan.
 
Finally, take your credit rating into consideration. Mortgage rates are dependent on what type of credit score you have. For example, if you have A 1, top notch credit, you can expect to get the best mortgage rate available. But on the opposite end of the spectrum if you have less than perfect credit, you are going to get offered mortgage rates that are a bit higher. You need to expect this going into the process. When it comes down to it, you cannot expect the best mortgage rate if you do not have the best credit; it does not work like that. 
 
With mortgage rates on the rise, you may want to look into buying a house as soon as possible if you are in the market. The longer you wait, the better chance there is that mortgage rates are going to climb even higher. Hopefully these rates will level off in the near future, and maybe even begin to fall.
 

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The Real Cost of Selling your House

September 18th, 2006
The Real Cost of Selling your House
 
When it comes to selling your house, there are many costs and fees that you will have to contend with. The bad thing about these costs is that they can sometimes be hidden. You may not even think about them, but soon enough they will pop up out of nowhere to get in your way. If you do not budget for these costs you may end up running out of money in the end. For this reason, you will want to know the real cost of selling your house before you actually get started. This will ensure that you do not overextend yourself, and that you can pay for anything that may arise.
 
One cost that you must consider when selling your house is the fee that your real estate agent is going to take from you. Some people opt to get around this fee by simply selling their home by owner and leaving the real estate agent out of it. Even though this can save you the fees of having an agent, it will also cause a lot more work for yourself. So since most people hire a real estate agent, knowing about the fees they take is very important. When it comes down to it, every real estate agency charges a different commission for selling a home. To keep your costs down you may want to find the agency that has the lowest commission fees in the industry. Just like anything else, you will want to shop around for the best real estate agent. Selling your house without an agent is possible. But it is not an easy task to say the least.
 
Another hidden cost that goes with selling your house is the money that you will have to put into it to ensure that it is market ready. This includes any updates that you will have to make in order to improve the appearance of the house. And also any repairs that have to be made so that your home is brought up to inspection code standards. Remember, if your house is not up to code you cannot sell it. These are costs that you may incur, especially if you have an older home that you are selling. 
 
To some people the real cost of selling a house is not determined until the last second. This is where a lot of problems come into play. You need to know the real cost of selling your house before you even get started. This will allow you to budget for what you need, and also stay on track throughout the entire process.
 
Overall, selling your house will come with costs that you never thought about. Being prepared for them is the key to success. 
 

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First Time Home Buyer Tips

September 16th, 2006
First Time Home Buyer Tips
 
If you are a first time home buyer you are probably in an awkward position. You want to get the best home for your money, but you have yet to make such a large purchase in your lifetime. This can make for a very stressful time if you do not know where to start, or how to proceed throughout the process. But the good thing is that every year thousands of first time home buyers get the property of their dreams. Believe it or not, even if you are a first time home buyer you should not have any problems getting what you want. Simply put, the real estate industry is not as difficult as some people make it out to be; even if you are a first time home buyer.
 
Listed below are tips that first time home buyers should follow to in order to ensure success.
 
1. If you are a first time home buyer it is important that you research the real estate industry before you make a purchase. In other words you want to make sure that you know what is available, what it costs, and what you want. Any information that you can find on the real estate industry in your area will help to make the process much easier on you.
 
2. Make sure that you set a budget before you do anything else. How can you search for a new home if you do not know what you can afford? In order to avoid this problem all you need to do is sit down and work out an accurate budget. This will give you the information that you need in order to make the best decision possible. Starting the home buying process without a budget is never a good thing to do; first time home buyer or not.
 
3. When you start searching for a new home make sure that you keep an open mind. You will not want to get so locked into one property that you miss out on the rest. This is a common problem that plagues first time home buyers time and time again. By keeping an open mind you will be able to find the best of the best, and ensure yourself of making a decision that you can live with.  
 
As a first time home buyer you will have a lot of details to care for.  But you should not let this scare you away from getting started. The bottom line is that buying a home is supposed to be fun. If you follow the three tips listed above you should be able to get your start in the real estate industry without much hassle.

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Hiring A Real Estate Agent

September 14th, 2006
Hire a Real Estate Agent
 
If you are selling your home, chances are that you will be working with a real estate agent. You could sell your home by owner if you are willing to do a lot of work, but the majority of people opt against this. They figure that having a real estate agent on their side is the best way to get rid of their home in the shortest amount of time.
 
The main reason that people do not want to hire a real estate agent is because they will take a commission on the selling price of the home. Sure, you can cut this out of the equation by selling your home by owner, but this also adds a lot of work on your part. Even though a real estate agent will take a cut of the sale price, it is not as large as some people make it out to be. And if you are particularly concerned with how much a real estate agent will charge you, the best thing to do is shop around until you find one that offers the best deal.
 
When hiring a real estate agent be sure to do your homework. This is a very popular industry, which means that you will have your choice of real estate agents. For this reason it is very important that you shop around until you find the one that best suits your needs. 
 
The most important thing to look at when hiring a real estate agent is their track record. Have they sold a lot of homes recently? How about homes in your area? These are questions that you will need to ask yourself in order to ensure that you end up with a real estate agent that you are willing to work with.
 
Remember, when you hire a real estate agent you will be in constant contact with them. You will want to make sure that you get along with them, and that you do not mind having them work on your behalf. There is nothing worse than trying to work with a real estate agent that does not have the same thoughts as you. Before you ever sign on with a particular agent make sure that you are on the same page. This will ensure that the process of selling your home is as enjoyable as possible.
 
Do not make hiring a real estate agent a stressful process. The bottom line is that there are enough agents in the world today that you should not have any problems finding one that has the same ideas as you. If you shop around and keep your options open you should be able to find the best real estate agent for you and your home in no time at all.

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Motivated Sellers

September 13th, 2006
Motivated Sellers
 
So you are buying a home. Congratulations! Hopefully you will be able to find a seller that is motivated enough to give you a great price on a great property. But unfortunately, things do not always work out this way. More times than not you may come across a seller that does not seem motivated to get rid of their home. This will leave you thinking, “If they are not motivated to sell, why did they put their home on the market?” If you are running into this problem time and time again you are not alone. This is a big problem in the real estate industry; and also one that you cannot do much about. But the good thing is that the real estate industry is big enough for just a couple of sellers. So if you keep running into people that are not motivated, do not worry. There are motivated sellers out there.
 
In order to find motivated sellers there are a few places that you can search. If you know where to find motivated sellers, your search will go much more smoothly. Listed below are three places that you can look when trying to find motivated sellers in your area.
 
1. If it seems that all the motivated sellers are hiding, hire a real estate agent to help you out. They are the ones that list the homes, so they will also be able to take you to the motivated sellers. This is much easier than simply trying to find motivated sellers on your own, and wasting a lot of time.
 
2. Even though there is no way of telling what type of seller you are dealing with, you should search for new homes online. You will be able to find the largest number of homes for sale without ever having to leave home. This sure beats any other way of searching.
 
3. The old reliable way of finding motivated sellers in the newspaper is still a possibility. The real estate classifieds may not be as popular as they once were, but the good thing is that you can still find motivated sellers there.
 
Believe it or not there are motivated sellers out there. These people are willing to sell their home, and furthermore they are willing to negotiate on the price. Check the three areas above to find motivated sellers in your area. You may not find what you are looking for at first, but over time you will get the home that you want. 

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