Home Sellers: How to Fire Your Realtor

A friend stopped by today looking a bit down. When I asked him what was up, he started telling me about his house, and the fact that it has been on the market for a while without any offers.


“They’re telling me it’s a hot market and my price is right, but nothing is happening.” He’s asking $299,000 and a local builder told him it would cost $300,000 just to replace the house. Never mind the panoramic view or the ten acres of old growth trees behind the house.


So what’s wrong? He listed with a major franchise chain and a top-selling agent. BUT that agent has been on vacation for the past month.


Everyone knows that agents get a commission even if they sell another agent’s listings. But they get half…and generally have to share it with the office. In a hot market they may not need to go beyond showing their own listings. And if they do, they’ll show the ones closest to the office. That was the other mistake my friend made: listing with a firm more than 20 miles from his home. Even his own agent will show the easiest listings first. Laziness is an unfortunate part of human nature.


What can my friend do? Fire her. But carefully.


If you, as a seller, are unsatisfied with the service you’re getting, the first step is to call the agent and state your concerns. Ask to see what’s been done to sell your house, how many showings they’ve had, what the buyer comments have been, and if they have any recommendations on price, minor repairs, etc. Tell the agent that you expect some showings, or in a slow market, good communication. If your agent is not available or refuses to return your call… go to the broker of the firm.


Then, give them a week to get on track. If you’re still unhappy, call back and tell them you are cancelling the listing and you’ll be in to pick up their signed release. This is an important point. Do not withdraw your listing, because that signifies that the house is merely going off the market. If you sell it yourself or list it elsewhere, you will still be bound to paying a commission if the purchase agreement happens prior to the last day of their listing.


If the broker refuses to let you out of the contract and you feel you have good cause to cancel, call your state Board of Realtors. They should be able to help you without you needing to pay an attorney. A listing IS a binding contract, but if one party refuses to act in good faith, the other one does have a right to break the contract.


The two most important points to remember are the word cancel and the signed release. Without those, you could end up paying a double commission. And nobody wants to pay someone for not giving service.


One last word: don’t try to fire your Realtor if they’ve been giving service but you happen to stumble over a buyer on your own. It’s dishonest, unethical, and the money you save isn’t worth the price of knowing you’ve been a cheat.

Marte Cliff is a Freelance Copywriter with many more tips to share. Visit her
at marte-cliff.com and sign
up for a free monthly advertising ezine. Marte also offers a no-obligation
critique of your present advertising.

Real Estate -Time To Sell

We all know it’s the American Dream to own a home. Ever since WWII ended and millions of US Servicemen came home, got married and found a place to live, the ideal situation was that they’d buy a small home to raise that family. NorthEast builders came up with the idea of “developments” and places like Levit town were born, where thousands upon thousands of smallish homes were built on 50 by 100 lots. It was the first “housing boom.” Well, the tradition of owning one's home runs deep in our psyches, but the question becomes this: Is buying a house in this particular day and age really wiser than renting? Don’t laugh, you might be surprised at the answer.

There are two particularly attractive reasons to own your own home. One is that it might appreciate in value and your “net worth” becomes greater. The other is that you can write off the interest payments and the taxes that you pay your municipalities. Okay, those are definite pluses. On top of that you get to make the house the way you want it. If you want to punch a hole in the wall, you do it. There is a lot to be said for the personal freedom of doing what you want.

On the other hand, a house is just as much a liability as it is an asset. Each month the mortgage is coming in, the taxes are going up, you have to insure it, and then there are repairs to consider. But, much more importantly, we have to consider the “timing” issue involved in housing. What do I mean by that? Well we’ve seen an incredible rise in housing over the past three years, spurred by low interest rates, looser standards and of course the stock market melt down of 2000 – 2002.

Let's suppose you were to buy your average 250K dollar home up in the North East. ( or you just happen to already own one) Let's suppose you put down 10% and mortgaged the rest. Okay, so you coughed up 25 grand, and are mortgaging 225 grand at 5.5%. Your mortgage payment is 1,327 dollars a month for 30 years. Toss about 5 grand worth of taxes on top of that, and you are probably at 1700 per month. If you were to hold that mortgage for all 30 years, you would pay 234,906 dollars in interest.

What did you get for your 234K in interest rates? Well you got to write down your income taxes. But you don’t get 234 grand “back” you just don’t have to pay taxes on the income that would amount to 234 grand. (over the life of the loan) If you held that house for 30 years, how much do you think you put in it for repairs? New appliances, hot water heaters, two roofs, repave the driveway, cut the lawn, removed trees, replaced the windows, etc etc etc? A ton. No one can even put a price on it. But, for our little exercise let's just say that in 30 years you paid 30 grand in repairs. So, we’ve paid 264K above the homes 250 K dollar price tag. Oops. Taxes. Lets say that your property taxes are 5 grand a year. In 30 years, guess what? There’s another 150K dollars. Insurance? Say 500 a year, there’s 15 more grand. Water and sewer? Another 10 to 12 grand.

Without going silly, we see that a 250K dollar house is going to cost us about 664,000 when we finally light that last mortgage payment on fire. So, even if the house doubles in price and “then some” , and you can sell it for that amount, you didn’t “make” a penny did you? Nope. The only way you make out on this scenario is if it’s worth more than 664K grand 30 years from now. But we have a problem don’t we? What’s that? Well if a house is 250K right this second, and interest rates are at 40 year lows, you can bet that the house is already as expensive as it’s ever been. Are interest rates going to be below 5.5% in 30 years? Probably not ( although we have no idea) In other words, who’s to say that housing is going to double in 30 years? No one knows, it’s a gamble. But worse..even if you sell it for 664K grand, you still have to live somewhere. Not only didn’t you actually make any money, you have to move somewhere and pay money there too.

The fact of the matter is that real estate has been a tremendous performer, but I tend to think it’s run it’s course. Would I be against someone selling at the present, taking their huge profits and renting for a few years just to see if housing falls? Not at all. In fact, if you read these numbers over and over, it might just sway you to consider it. There is no doubt that sometime in 05 rates are going up. When rates go up, prices fall, but this time it’s even going to be worse. So many people are going to be trapped because of refinancing that they are going to “walk away”. Foreclosures will soar. It could get ugly.

For a FREE report on HOW TO TRADE FAST, enter your email address at:

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Home Appraisals - What to Expect

Whether you are selling your home or refinancing, you'll probably getting a call from an appraiser. Their job is to determine the fair market value of your home based on guidelines set out by the Federal National Mortgage Association. This is not the same as a competitive market analysis that many real estate brokers perform, sometimes referred to as "comps". The professional appraiser does an in depth analysis of you home's condition, additional features as compared to other similar homes, and location.

They start by looking at you neighborhood and find comparable homes that may have sold recently, characteristics of lifestyles, income level in the area, average age, and surrounding home values. So if you home has 4 bedrooms, 3 bathrooms, and a 2 car garage on a half acre of land, they will try to find a similar home in a nearby neighborhood. Sometimes they will extend their search and compare homes within the same school district when it is a known factor that affects the value of a home.

Once they find comparable properties, they will make some adjustments. Sometimes they will add value to your home based on the landscaping, external features such as a fenced back yard, or maybe there is view of the ocean. Numerous items may be added or subtracted from your home's value. Living space, numbers of rooms, sales in the last 120 days, usable land, and many other factors are considered. Rest assured it is not an entirely subjective process, but rather methodical and universal.

They don't consider your choice of wallpaper and curtains. They don't care if there are 200 toys laying in the family room or that you didn't make you bed. Of course it doesn't hurt to tidy up a bit, but it's not really a factor in determining the appraised value of your home. They are there to measure boundaries, going to each level in your home and looking in all the rooms, and taking more measurements. A few pictures are taken only for the appraiser's folder which will go in a file.

Normally, if you are buying a home or refinancing, you can let the lender know if you prefer a particular appraiser or company. You can ask any real estate broker if they can recommend someone to you as well. A qualified appraiser is licensed by the state and will cost from $150 to $500 or more depending on the size of the home.

If you are selling your home, the buyer normally pays for this. However, it
wouldn't be a bad idea to get an inexpensive online appraisal. You can find one
of the better instant online appraisal companies at http://homeappraisel.com

Realtor Techniques to Help House Sell Fast

Even if you've decided to go the FSBO route, you can use some tried and true realtor techniques to help your house sell blazingly fast.

Fact: Houses that sell within the first two weeks they're listed usually fetch their asking price. It's simple human nature. Newer listings get the most attention, both from buyers and realtors. Once a house has been on the market more than a couple of weeks, realtors and buyers alike will start wondering what's wrong with it. Most often, the only thing 'wrong' with the house is that it's priced outside the neighborhood limits.

A good realtor can help you avoid that mistake, but it's only one of the tricks and techniques that a realtor will use to help your house sell fast. Many of the techniques that professional real estate agents use are available to anyone. If you're looking for help to sell your house fast, here are a handful of tips that professional real estate agents use to get a sale moving in high gear.

* Price your house right. The right price is within a few percentage points of recent sales of similar homes in your neighborhood.

* Keep your house clutter-free and spotless, inside and out.

* Schedule an Open House. Holding an open house on a weekend afternoon will get your house more exposure and help your house sell faster.

* Advertise your property for sale in multiple venues. Use newspaper, local real estate magazines, online home sale web sites and post printed brochures on supermarket bulletin boards. The more places you post your house, the better the chance that you'll connect with a buyer.

* Keep fresh flowers around. It may seem like a silly psychological trick, but realtors all agree - fresh flowers on the living room or kitchen table help a house sell.

* Use Multiple Listing Service. Yes, you need to be a realtor to list a house on the MLS, but that doesn't mean that you have to pay a commission. There are realtors who'll accept a single, flat fee to list your house for you.

* Pre-inspect. By paying for the inspections that will need to be done when a buyer is ready to make an offer, you may save time on the sale. Remember, it can take as much as six weeks from offer to closing. Any time you save in there will help your house sell faster.

* Engage a good real estate lawyer to firm up the finishing and closing details. A lawyer will ensure that you don't miss anything that may affect and slow totally derail the sale of your house.

* Organize all your papers and have them handy. Those include not only your deed and real estate surveys, but any warranties for home improvements, major appliances and home systems.

The more that you get done in advance of posting your listing, the more you'll help your house sell fast.

Brian Shelton makes it easy to sell your house fast. To claim your free
report entitled "How
To Sell Your House In 7 Days or Less", visit the http://www.HouseSoldIn7Days.com/

Three Proven Ways To Save Thousands When Selling Your Home

It's exciting. It's stressful. It's expensive. Selling your home sends you through a whirlwind of emotions. From the excitement of moving to your new residence to the frustration of knowing you'll pay thousands in real estate listing commissions, the journey can often feel like a roller-coaster ride. There are ways to get discount real estate fees, however, without negotiating or haggling.

Flat Fee

Many discount real estate offices are moving toward a flat fee listing commission structure. According to recent CNN.com and Wall Street Journal reports, this allows a seller to have his/her property listed in the Multiple Listings Service (MLS) database for a flat fee of around $500. Professional agents are then able to see the home listed in the MLS and have the option to show and sell the property at another discount. Real estate listing commissions for sales that result from discount Realtors'® listings run about 3% as opposed to the standard 6% in addition to the flat fee of $500.

These are not always full-service agencies, so be sure to ask what you'll receive for your investment. Depending on the services offered by the discount real estate office, this could save you several hundred dollars on traditional listing commission fees. Talk with local discount Realtors® in your area to see what is available and the stipulations involved.

Single Fee Transaction

A new concept in real estate sales, single fee transaction, allows a seller to pay no listing commissions on the sale of their property provided they agree to purchase their new home through the same real estate franchise. You pay a single fee for both transactions.

Full-service agencies offer the traditional types of assistance that sellers would expect from a typical real estate office. These services include conducting open houses, running advertisements in local real estate magazines and newspapers, listing your home in the MLS database, assessing current values, giving professional advice and more.

As reported in the Tucson Citizen, these types of discount real estate franchise offices do charge a listing fee. They retain and pay the buyer's agent (if applicable) half. However, when the home seller purchases a new residence through the same Realtor®, the other half of the original listing commission is refunded. The Realtor® of a single fee transaction franchise makes his/her commission on the purchase of the new home. This can save a seller thousands of dollars in fees.

Single fee transaction is a new concept. It has not yet expanded nationwide, so you'll need to check your area for availability of these types of real estate franchises.

For Sale By Owner (FSBO)

This is the ultimate in discount real estate fees because you pay none. Many homeowners don't realize that the use of a Realtor® is not legally mandated for home purchases or sales. An attorney can process the needed legal documents and filings to record your transaction.

An agent from a local real estate office traditionally becomes involved for his/her ability to market your home effectively. However, for those able to devote the time and money needed to sell a home, doing it yourself is an exceptional way to proceed.

Do some research before deciding. Total the estimated number of hours you'll spend on the various duties required to sell a home, then multiply the total by your salary (broken down into hourly increments). Then total the amount of money you'll spend on magazine and newspaper advertising, yard signage, mileage and other expenses. If the total of both is less than the amount of fees your Realtor® quoted, you'll know the FSBO method is the better bargain for you.

If you're looking to sell your home, don't assume you are forced to pay a 5% or 6% listing fee. You do have options. A little research online can lead you to effective ways to sell your home for its maximum price while still saving money on listing fees.

Dan Pool is President of Two4One Real Estate offering an innovative real
estate franchise opportunity and discount real estate fees for sellers.
Two4One will sell your home for free if you buy your next home through them.
Visit Two4One Real Estate online today at http://www.two4one.com
for more information.

The Run Down on FSBO

Because the overwhelming majority of homes that sell are listed with a real estate agent, you will be going against significant odds if you decide to sell your own home. The experience of a real estate professional may get you a better price and help you to avoid all the "little" things that can go wrong in a real estate transaction.

The desire to "save" the commission on a property is the reason most people decide not to work with a real estate agent. Prospective buyers who look for properties that are "For Sale By Owner" (FSBOs) are also wanting to avoid the commission--and to get a less-than-market-value deal. However, nothing is saved in the majority of FSBOs. Listing your home with a real estate professional can save you money, spare you the inconvenience of showing your home, and save you the time you would spend talking to buyers who could not qualify for a loan.

A Real Estate Agent's Advice

A real estate agent may ask you to do some things that you don't particularly want to do to in order to get you moved into your new home as quickly as possible.

When real estate agents advise you about what you can do to make the transaction work, they are acting as part coach and part business consultant. If you find the house you love and want to "sleep on" the decision for a few days, the agent knows that you run the risk of losing the house. If you are inclined to complicate your offer with clauses that might make the contract unattractive to the sellers, the agent may ask you to consider some modifications. Should you call the week before the closing with an attack of "buyer's remorse", your agent knows the cure. Following your real estate agent's suggestions will increase your chances for a successful move!

Do These Real Estate Tips Really Apply to YOU?

I've learned these tips through years of experience as a top Realtor. But I know that YOUR situation might be different.

There are always important changes happening in the real estate market, locally and nationally. These changes can affect YOU. Interest rates, zoning and tax laws, new ways to market your home and enhance its value...

Before signing a contract with any Realtor, make sure you know EXACTLY how your home will be marketed. There is a vast range in skills, experience, and track records!

A "Listing Presentation" is an industry term for the formal presentation that a Realtor makes to prospective home sellers, trying to earn their trust and business. Don't list your home with a real estate agent without it!

Ann Marie Rubertone is a Treasure Coast Florida Realtor working with investors nationally and internationally specializing in 1031 tax deferred exchanges. She assists FSBOs in the marketing and selling process.

Ann Marie Rubertone
Treasure Coast Realtor
(772) 323-9628

http://www.AnnyIsMyAgent.com

cio@adelphia.net

For Sale By Owner Safety Issues

When an owner decides to sell his home himself, he’s in for a lot of work. He has to talk to interested buyers and schedule showings before he even gets to negotiations and contracts. More frightening is that the seller has to open his door to people he doesn’t know. In today’s world, that’s scary.

The homeowner is definitely taking a risk by inviting strangers into his home. He has to be extremely cautious of who’s looking at his home. There’s a safety factor involved when marketing your home. A word of caution to homeowners wanting to sell is to be extremely careful, because plenty of Realtors have been attacked, raped and killed in the home selling business.

When there’s a For Sale By Owner sign in your yard, and someone stops and rings the doorbell, you need to be prepared. There are precautions you should take to maintain safety for you and your family. In our society, people are usually afraid to ask questions because they don’t want to offend the other person. “When it concerns safety, you’re the number one concern,” explains Eddie Edwards, crime prevention officer with a Dallas / Fort Worth area police department.

“Before you let that person go through your house, get some information. Get the driver’s license number and a couple of references. Then schedule a time when they can come back and look. This gives you time to check out the prospective buyer,” says Edwards.

“You need to put the information about the person in a safe place so if something happens, the police have a lead on a suspect,” he explains. “Explain to the lookers that you need information for your safety. If the buyers will not provide the information, then don’t show the home.”

It’s also recommended that the homeowner ask for a pre-approval letter by fax or email before the showing. Here again, check the information on the letter. Call the mortgage company and ask questions.

Once you’ve checked references, and you’re showing someone around your house, don’t let your guard down. Listen to the type of questions asked. For instance, “Do you have a safe? Do you have a security system?” If they’re off-the-wall questions, then tell the person you have another appointment and show them to the door.

During the selling process, Edwards advises home owners to call the police if there’s a concern about your property. “If there’s a window partially opened, or a screen laying on the ground, something out of the ordinary, just call us. Even if you just feel uneasy, just call. We’re out there on the streets all the time, and that’s what we do -- keep people safe.”

With all the work it takes to sell your home successfully, don’t take chances with your safety. Opening your door to a criminal is the last thing you need.

Helena Hill is a Dallas
real estate broker and a contributor to the Flower
Mound Home Showcase Weblog.

How to Show your Property

Your last child has left for college and now, the home that you’ve lived in for the past twenty or so years is simply too big for you and your hubby. Instead of spending unnecessarily for the maintenance and upkeep of a large house, you decide to sell it off and get a smaller, cozier unit elsewhere.

Selling a home involves more than putting up a giant “FOR SALE” sign out in your front lawn and advertising the property in the classifieds. These are just the initial steps. The hard work comes when people actually take interest in your home. How do you make these potential buyers see that the unit you are selling is not just a structure for them to live in, but a place where lasting memories of their lives are made?

You’ve already done your homework. You’ve mowed the lawn and trimmed the hedges. The house has been dusted, scrubbed and polished – from the dingy cellar to the rafters in the ceiling. You’ve removed all the unnecessary clutter and depersonalized your home but left enough accessories to make the home inviting and warm. What should you do when the first interested buyer come knocking at your door?

When you have a potential client, don’t start off with a grand tour of the property the minute they walk in. Usher them to the living room first, and offer them refreshments. Talk about yourself, your reasons for selling the property and ask about them too. Find out as much as you can through the light banter that you’ll be exchanging. When they are done, walk them through the house at a comfortable pace. Do not hover around them like a vulture, give them some breathing room. Allow them to move around and discreetly move away when they start whispering amongst themselves.

Also, when you’re going around describing your house, don’t just ramble off technical details like the kind of paint you used and where the kitchen tiles were imported from. It wouldn’t hurt to include some personal anecdotes to liven up the atmosphere to make your house appear less like a cold and lifeless museum, but more like the warm and wonderful home it really is.

Things a Buyer Should be Told when Looking at Your Home

In the course of your life, you may have opted to keep a few personal details from other people – even those whom you hold close to your heart. Unfortunately, you can’t do the same when you’re selling your home. No matter how embarrassing it is, you have to bare all and tell your buyer every little dirty secret that involves your property.

No, you don’t have to tell them where you usually sit to cool off after you and your partner have a fight or where your uncle spilled a glass of martini; those details need not be shared with others. But you do need to inform your buyer about the true status of the house.

In order to protect the rights of the consumer, state and federal laws state that a seller is obligated to disclose all pertinent information about the house and the land it rests on to potential buyers – irregardless of how it would possibly affect the desirability of the property. Failure to disclose information is illegal and offenders will be meted the appropriate state-approved punishment.

What information should be disclosed to buyers? Aside from the technical and structural condition of the house, sellers should inform buyers of potential health hazards not just within the property but the community as well. The presence of nuclear power plants in the neighborhood and the use of lead-based paint for walls, and asbestos insulation for ceilings and roofs particularly for homes built before 1978 are some of the details that should be divulged.

If you think that that’s all, sellers are also required by law to include a Natural Hazard Disclosure Statement in their real estate documents. Sellers need to advise buyers if the house is near a flood hazard area; an area of potential flooding (applicable to properties near a dam); high fire hazard severity zone (for homes near forests); wild land fire area; an earthquake fault zone, and a seismic hazard zone (last two as identified by the State geologist).

It all sounds technical but since it is mandated by law, you have to abide by it. If you are not sure what information you should disclose and how to go about disclosing it, you can ask help from a real estate agent, lawyers or visit the local government agency nearest you.

It’s better to be open and upfront to avoid any legal repercussions in the future. This should be your guiding principle. Not just when you’re selling your house, but in all aspects of your life as well.

Big Real Estate Investing Mistake Made in 2005

Over the past few years, real estate investors, hungry for break-even or positive cash flow rental properties, purchased income property out of state. California investors bought houses in Florida, Texas, and Oklahoma. Florida investors purchased houses in Louisiana. Texas investors purchased in Las Vegas. Many of these investors made millions of dollars because of the appreciation in hot markets.

On the other hand, in 2005, some beginning investors lost their hard-earned investment capital or only made a meager profit because they failed to do their homework on the out of state area's real estate market and customs.

If you 're thinking about buying investment properties in a different state than you 're accustomed to, beware of these five surprises.

Surprise # 1 - 'These (extra) costs are the norm in this state!'

Besides extra closing costs like pricey surveys, common in Florida but rare in California, other surprise costs included higher transfer fees and taxes. Property taxes in Florida cost much more for investors in Florida than in California. On the other side of the country, out of state investors were shocked by California's state tax held in escrow: 3.8% of the property 's SALE 'S price, no matter the actual profit made. In other words, an investor who made a quick profit of $20,000 on a fast flip could have more than the profit held until the next year's income tax filing.

Surprise # 2 - 'You can't lease this property!'

New home developers and many Homeowners' Associations (HOA) prohibit property owners from leasing their properties. Some of these restrictions got passed, without the investor being notified, during the property purchase phase. You must read the fine print to see if any clauses prevent the rental of the property. Home builders, to keep the value of the neighborhood up, added restrictions requiring the purchaser to occupy the home as a primary or secondary residence.

Surprise # 3 - 'This house will only rent for $750 per month, not $1200!'

This was one of the top mistakes made in 2005. Large real estate investing groups, selling out of state properties to local investors, inflated the rental income. Because so many houses were purchased in a limited area by investors, a rental glut lowered expected income. This created hardships for investors who suddenly had to pay out hundreds of dollars a month instead of reaping promised profits.

Surprise # 4 - 'You can't sell this house, now!'

Some investors who couldn't rent the out of state property decided to sell because the values did rise significantly while the house was built or during the purchase time. However, many investors were stunned when they were told they couldn't sell the property within the first year after purchase. Restrictions prohibiting real estate investors from quick-turning their properties is a trend that is growing increasingly popular with some developers.

Surprise #5 - 'Houses don't appreciate 30% per year here!'

Perhaps you've attended or been invited to a high-power investment seminar that promotes out of state real estate investing. Some of these 'investor clubs' really are promoters who receive kick-backs in real estate commissions, property management fees, mortgage loan fees, and even fire insurance premiums. They tell stories of huge appreciation gains, which are probably true. However, not all areas enjoy significant appreciation--year after year.

Don't make the costly mistake of not fully researching the complete market customs and restrictions in the area where you're thinking about investing. If you can't afford to go to check out the area in person, choose another area that you can visit.

Copyright © 2006 Jeanette J. Fisher

Jeanette Fisher offers FREE "How to Start Real Estate Investing Teleseminar," free ebook, "The Truth about Making Money Flipping Houses." Ever wonder how those multimillionaire real estate investors got started? You might be surprised at how easy it is to buy your first investment property! Are you willing to follow four proven steps to make money investing in real estate? http://www.doghousetodollhousefordollars.com/

Using Foreclosure Law to Your Advantage

Foreclosure law varies from state to state with regards to the exact process that must be followed in order for a bank or lender to foreclose on your home. Knowing the foreclosure law in your state can help you negotiate with your lender and perhaps avoid foreclosure altogether.

One of the largest differences in foreclosure law is whether a state uses mortgages or deeds of trust for real estate. "Deed of trust" is a term that's not heard as often as mortgage, but in essence, they have the same function - they protect the lender from default on a loan that is secured by real estate. The major difference is in the process the lender must use to obtain the right to recover your property and sell it.

When you sign a mortgage agreement with a lending institution, you retain the deed to the property, and have full legal title to it - but you allow the lender to place a 'lien' on it. If you do not make the payments on the loan as agreed upon, the lender can foreclose on the property.

In some states, a deed of trust takes the place of a mortgage. With a deed of trust, you give the deed to the land or property to the lender, but the lender can only use or sell the property if you default on the loan.

In states that use mortgages, foreclosure law makes foreclosure a judicial procedure. A lender must prove to the court that the borrower has defaulted on the loan, and that they, the lender, have made appropriate attempts to resolve the default with the homeowner. There is a definite sequence of events that must be followed as prescribed in the foreclosure law, and knowing that sequence in your state can help you understand your options in terms of resolving the issue before it goes before a judge.

In states that use a deed of trust rather than a mortgage, the lender must go through certain steps of notification as required by foreclosure law in that state, but does not need judicial permission to proceed with a sale or foreclosure on the property to which they hold a deed in trust.

States whose foreclosure law requires judicial action include: Alabama, Arizona, Arkansas, Connecticut, Delaware, Florida, Montana, Nebraska, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Michigan, Pennsylvania, South Carolina, South Dakota, Vermont, Washington and Wisconsin.

Article Source: http://EzineArticles.com/?expert=B_Shelton

Foreclosure Auction - The Quest To Win in Your First Foreclosure Auction Bid

Auction is the stage of the foreclosure home process when the pre-foreclosure phrase of a foreclosure home has ended. Lenders will bring the title of the foreclosure home for auction and looking for new owner of the foreclosure home. The purpose of the lenders putting the foreclosure home on auction is to recapture the losses that the previous owner caused. There is only business in auction. People bid and the highest bid win the foreclosure home.



To win in auction, you must have understood the process of foreclosure auction. In most of the cases, lenders are the first mortgage holder of a foreclosure home. Thus, the fund collected from auction has to first give to the lenders. Once the first mortgage holder has been satisfied, any extra funds will be used to settle any other remaining obligations. Then only the funds will be disbursed to the foreclosure homeowner if there are any remain.



1) Foreclosure Home Title Research
Who don't want to make money if there are chances? To make money through buying foreclosure home in auctions, there are a few preparations you must do. If you are seeing a foreclosure home, you must first do a title research on it. The goal of doing the title research is to determine all the liens or judgments against the foreclosure home. These can include civil lawsuit judgments, unpaid personal property taxes and state and federal tax liens. This is because if you got the hammer knock on the foreclosure home, you will be granted the title to the foreclosure home subject to all liens and encumbrances. If you misjudge the hidden liens, there will be extra costs in your planning.



2) Getting Finance
Secondly, after doing the foreclosure home research and info collections, you need to be ready with financing. This is because in order to bid in auction, you need cash or cash equivalent to show you're affordable to participate in auction. They will record your cash amount and that will be your limit to bid. If your bid exceeds the limit, your bid will be counted as invalid. Besides, when you present the winning bid, you will need to pay a 5-10% deposit on the spot as the conclusion of the auction while the balance of the purchase price due within a few days. You will need financing to back you up immediately.



3) Psychology Preparation
Thirdly, the psychology preparation you need is to get yourself used to the auction environment. It's recommended that you attend the auction for a few times before making the first bid. This act will help you to get comfortable with the auction process and give you confident. Auction is very intense during the process. People will easily get controlled by the intense environment and get high in auction. This is always the cause of mistakes. For foreclosure home, if your bid exceeds the value of the house, you will earn nothing though you've won the auction. Thus, you have to set a bottom line in your bidding and stick to it. Most importantly, stay firm with your bottom line in auction and don't easily get affected by the intense environment there.



Buying a foreclosure home in auction could really be a great bargain. Because a foreclosure home is being sold based on the balance of the loan but not on the market value. That means a foreclosure home is more profitable if the differences between the balance of the loan and market value is huge. Buying foreclosure home in auction can bring you fortune. If you are a home buyer, u save money; if you are an investor, you make money when reselling the foreclosure home with market value. Either way, to enjoy the profit from foreclosure home, you need to first start your research with free foreclosure listings now.

For being involved in both home loan and real estate career offline, Shawn Daren is experienced to share his knowledge with us. Visit his site to learn more on free foreclosure listings and how to buy foreclosure.

Real Estate Investors: Buy, Sell or Hold?

Brandi Brand is Sales Director for Breakwater Mortgage in Virginia Beach, Virginia. Brandi and her husband, Scott also rehab and resell real estate investments in Southeastern Virginia. The following interview consists of common questions real estate investors have at this time, when mortgage interest rates seem to be on the rise.

Q: What is the overall tenure of the real estate and mortgage industry in Virginia at the end of 2005 and leading into the first quarter 2006?
A: The local market has slowed in Virginia over the last six months. Houses are staying on the market longer. This means more time is involved for real estate investors who want to sell.

Q: Are the real estate and mortgage markets headed for a downturn then?
A: The market is still very strong despite a slight decrease in activity. In Southeastern Virginia, home sales dropped approximately 3% in November 2005, which indicates a slight adjustment.

Q: Is it a buyer’s market now?
A: Currently, the market is leveling out. When it was a seller’s market, contracts were signed on homes and properties before anyone had a chance to think the purchase through fully. Now, investors have the opportunity to price out necessary repairs and renovations to get the most return out of the property.

Q: Is it a good time to buy?
A: Yes. The market is adjusting, and there are some great bargains for the real estate investor. There are always good deals to be found. An investor is looking to purchase property below the market value, this is how they make a profit. Purchasing a property with cosmetic issues, rehabbing and reselling is one strategy. Other good deals can be found with For Sale by Owner real estate.

Q: What makes the Virginia real estate market different from say, the market in the Northeast?
A: In general the Northeastern market is more expensive than the Southeastern, with the exception of Florida. Southeastern Virginia real estate is more affordable, so investors come from the Northeast to buy here.

Q: What do mortgage lenders look for when they consider writing loans for real estate investors?
A: A mortgage lender is looking for a strong employment history and six times the monthly payments in leftover assets after paying money due at closing. For 100% financing, the applicant can be required to have a 680 credit score or above. Lenders ideally like to see two years of experience renting properties if the real estate investor is attempting to purchase multiple properties. On average a property that brings in a return of at least $200.00 per month (for maintenance and repairs) is considered a sound investment. For new investors, banks will be inclined to limit the investor to two properties in the first two years.

Q: What are the best real estate markets to invest in?
A: One of the highest areas of real estate investment is near military bases. Southeastern Virginia has a wealth of bases. Soldiers on their own often prefer to live in base hosing. Those with families often choose to rent in order to have more privacy or a yard.

Q: What are the current trends in mortgage financing for real estate investors?
A: Prior to the summer of 2005, many investors were choosing interest only loans or 2,3, or 5 year Adjustable Rate Mortgages (ARMS) that required little money down. Most investors purchase a property with 5 years in mind. The value of homes will continue to increase, but investors see the 30-year fixed loans as more solid while interest rates are on the rise. Young investors seem less concerned about rising mortgage rates. Many seasoned investors remember when the interest rates were 13-14%, but investors under thirty have not seen comparable interest rates during their adult lives.

Q: What are the refinancing trends for real estate investors?
A: Many investors are choosing to refinance by moving from a short- term mortgage to a long-term loan. Investors with rental properties will be locking in rates with 30-year fixed loans. Investors who want to rehab and resell property will be refinancing in order to obtain cash for another real estate investment. Overall, the refinancing boom has slowed down.

Brandi Brand is the Sales Director of Breakwater Mortgage in Virginia Beach, Virginia. Brandi began in this field as a credit analyst becoming a customer relationship manager, a loan officer and Regional Manager in the mortgage-banking field. Continuing Brandi's philosophy of giving back to the community,she and her husband Scott Brand purchase and renovate property on the Southeastern Virginia's Peninsula. E-mail brandi@breakwatermortgage.com or visit http:// http://www.breakwatermortgage.com for more details.

Investing in a Rental Property

Over the last few years, relatively weak stock markets (compared to the late 90’s) along with continued global economic uncertainty have changed the way many Canadians are investing their hard earned dollars. More and more Canadians are venturing into the rental property market, some swayed by the real estate appreciation that we’ve seen over the last few years. Others want to add real estate to their investment mix to better diversify their investment portfolios.

Condos and Multi-Units

Approximately 25 per cent of the condominium units built in Canada will be used as rental apartments. Additional investment is occurring in multi-unit residential properties such as duplexes, triplexes, and fourplexes, as well as single-family detached housing. Canadians are looking to have the rent from these investments at least cover their costs and, over the long term, gain a reasonable return on their investment.

Consider Your Mortgage and Financing Needs Carefully

Investors who consider adding real estate assets are often confused about their mortgage financing options. Since the Bank Act allows only up to 75 per cent of the value of a property to be in uninsured financing, many investors who put 15 per cent down use an insured mortgage for the difference.

The cost of the insurance premium can be as high as 4.5 per cent, which can translate into a $10,000 cost on a $225,000 mortgage. Even so, not all investors can meet the strict requirements that go along with an insured mortgage on rental property.

These requirements include having a relatively high net worth and demonstrating that you can carry the mortgage payments in addition to your other debts without factoring in all of the rental income you will receive. This certainly doesn’t leave room for many Canadians who want an investment property.

Another option if you have a good amount of equity in your principal residence is to take some of that equity out, typically through a line of credit, to get a big enough downpayment that then may qualify you for a regular first mortgage.

Financing Made Easy

To simplify the process, you can also now consider those lenders who have mortgage products specifically designed for small investors who own or are purchasing a residential investment property. Canadian investors can now access up to $500,000 without costly mortgage insurance premiums, or leveraging the equity in their principal home. Up to 85 per cent financing inclusive of applicable fees is available for single family units or up to a fourplex located in major urban centres. Properties on well and septic systems located in a town or subdivision can also qualify. Typically, 75 per cent financing is available for condominium units and all properties must generate a positive cash flow.

Perhaps now more Canadians can heed the wisdom offered by many financial professionals and diversify, diversify, diversify by including real estate in their investment portfolios.

Donna Lewczuk has worked in the financial services industry for almost 20 years. The last 3 years have been as a mortgage consultant and speaker. Although she arranges mortgages for all different needs, her specialty is dealing with clients who are struggling with financial overload. Donna has helped numerous clients save hundreds and even thousands of dollars a month. And also to sleep better. If finacial stress is getting you down, even if you feel your case is hopeless, please visit Donna's website for more information. http://www.donnasmortgages.com or by email at lewczuk.d@mortgageintelligence.ca.

Home Selling Yourself Without A Realtor in Ten Easy Steps

Home Selling Yourself Tip #1. Get your house ready.

Clean up your house, inside and out. Make sure that your lawn is trimmed, and the landscaping is neat. If the house needs repairs, this is the time to make them. Repaint, or give it a good wash. Inside, remove as much personal clutter as possible. Put away collections and pictures, take decorations off the walls and empty closets.

Home Selling Yourself Tip #2. Research prices in your neighborhood.

The single most important factor in determining how fast your home will sell is the asking price. It should be within a few percentage points of other homes in your neighborhood. Check at the county clerk's office for recent sales of homes in your neighborhood to get an idea of what homes in your neighborhood are selling for, then set your asking price within a few thousand dollars.

Home Selling Yourself Tip #3. Look into a flat listing with a local realtor.

Even if you're selling your home yourself, you can make use of a local realtor. Many real estate agents offer what they call a 'flat fee listing' for homeowners who are selling their homes on their own. The purpose is to get your home listed on the Multiple Listing Service for your area in order to increase the exposure that your home gets. The fee is generally a flat $250-$300, or a small percentage of the final price, depending on the agent.

Home Selling Yourself Tip #4. Get a good photographer to take pictures of your home.

When a realtor is handling your property, they'll engage a photographer to get the most flattering pictures of your property possible. If you're selling your home yourself, don't skimp on the 'frills'. The photographs that show your house to prospective buyers are the single best investment that you can make. If your house looks good in the pictures, people will want to see more.

Home Selling Yourself Tip #5. List your house on several internet 'selling home yourself' web sites.

Shop around for the best deals before listing, but don't go just by price. It's far more important to check a little deeper. Search for other homes and realtors in your area, and choose web sites that have a fairly good representation of homes for sale in your neighborhood or city.

Home Selling Yourself Tip #6. Use those pictures to help in selling your home.

The more prospective buyers can see of your home before they pick up the phone, the more likely it is that the calls you get will be from 'serious' buyers. Make sure that you include photos of your home's best features and major selling points.

Home Selling Yourself Tip #7. Be prepared to offer incentives when selling your home yourself.

Since you're not paying a realtor, you may be in a better position to absorb part of the closing costs, or offer to buy points for a prospective buyer to help them get the loan they need to buy your house. Other non-cash incentives may include details like including the gas grill and patio furniture as part of the deal.

Home Selling Yourself Tip #8. Get all your warranty information together.

As you get closer to selling your home yourself, make sure that you have all the paperwork that your buyer will need to take over the house. Collect warranties on the heating system, furnace, cabinets, and any other repairs or major investments that you've made.

Home Selling Yourself Tip #9. Have your home inspected.

Having your home inspected by your own inspector can save time when you're selling your home yourself. It may preclude the need for the buyers to pay for their own inspection if yours is recent and comprehensive.

Home Selling Yourself Tip #10. Retain a lawyer experienced in real estate law to help you through the fine points of selling your home yourself.

Article Source: http://EzineArticles.com/?expert=B_Shelton

Home Selling Tips for Sell-It-Yourself Owners

Imagine selling your home within two weeks of listing your home, at your asking price -- without paying a commission. It's not only possible, it's practically guaranteed if you play your cards right and follow these home-selling tips.

Home Selling Tip #1: Research All Your Options

Even if you've decided to sell your house yourself, you've got a multitude of options. Where you advertise, how you advertise, how you prepare your house, how much you ask for it - all those things require research to be sure that you're getting your best possible deal. Some avenues to pursue include a flat-fee MLS listing, advertising in local newspapers, and posting your house for sale on an FSBO (for sale by owner) web site like www.fsbon.com.

Home Selling Tip #2: Price Your House Right

If there were one number one home selling tip, this one would be it. Your asking price on your house will be one of the first things that prospective buyers look at - you don't want them to rule your house right out of the ballpark. For your fastest sale at the highest possible profit, set your asking price within 10% of the average price in your neighborhood. Finding that out takes a little research. You can interview Realtors or look through recently sold listings. The Internet makes it even easier. There are a number of web sites (www.housevalue.com, www.homegain.com) where you can look up the average selling price of recently sold houses in your zip code and neighborhood. Start with that figure and go up or down according to your home's condition.

Home Selling Tip #3: Before You List: Clean Up Your Act

Want to up that asking price to the high end of your neighborhood bracket? Take a week or two to do some serious face-lifting. The better your house looks, the more appealing it will be to buyers. The more appealing it is at first glance, the more likely it is that you'll get an offer fast.

For a quick cleanup with maximum effect, try these tasks:

Rake and manicure lawns and yards. Keep grass mowed, shrubs trimmed and paths swept and clean. If you can't repaint your house, give it a good wash with a high-pressure hose. Use flower power to your benefit. Flowers are an amazingly simple way to perk up the appearance of any home.

Inside, de-clutter and depersonalize. Improvements that will pay off, especially if you can do them yourself: modernizing bathroom fittings, repainting the kitchen, and putting new carpeting in the living room. Once the house is stripped to the bare, clean essentials, fill in bare spots with impersonal decor - flower arrangements or matching lamps, for instance.

Home Selling Tip #4: Take Advantage of ALL the Benefits Offered By An FSBO Web Site

When you're ready to list your house, choose an FSBO web site that offers you extras like Virtual Home Tours (www.fiftystatesfsbo.com has a great sample), free professional signs, and partner listings with other FSBO sites.

Home Selling Tip #5: Learn How to Write a Killer Ad

Your classified home selling ad is one of your most powerful home selling tools. Learn to write an ad that will sell your home FOR you. Use descriptive words with positive connotations - 'cozy' instead of 'small', for instance. Aim headlines at the right market - 'Summer on the Lake, Winter by the Fire' will immediately draw attention. You can find more great home selling tips online (www.fsbotips.com) or through a sell your house fast cour
Article Source: http://EzineArticles.com/?expert=B_Shelton

For Sale By Owner Texas

Are you ready to sell your Texas home? Whether you plan to use a realtor or you plan to sell your home for sale by owner Texas is a great place to live. The second largest of the fifty states, Texas has a rich history, a varied terrain, and a multi-faceted economy. Locating an interested buyer shouldn't be too much trouble, especially if you feature your home on a web site that specializes in for sale by owner Texas homes.

But even if you do everything to sell your home the "right" way, what happens when you simply do not have 6 - 10 weeks to go through the home sales process? Lots of people have to move immediately, and not just because they are feuding with their neighbors. All types of crises can crop up in life and wreak havoc on even the most stable homeowners. Things like a major breadwinner's loss of a job, an unexpected death in the family, or a messy divorce oftentimes mean a home needs to be sold fast.

And even if the situation isn't so dire, you might need to sell your home in order to meet the closing date requirement on the newer home you are planning to purchase. There's nothing more frustrating when putting up your for sale by owner home in Texas than waiting for the interested buyer to come by who also has the financing in place to proceed immediately with the sale. Occasionally this perfect match occurs, but according to the rules of Murphy's Law, this person simply won't come into your life when you need this person in days instead of months!

If you ever find yourself in such a position, where you simply cannot afford to wait until the perfect buyer places the perfect bid in your hand, don't worry - you still have another option! You can team up a reputable company that has the means and the money to purchase your home for a fair price; one that can make the sale happen in literally just a few days!

Let's face it - selling a home with a realtor is difficult. Even if you decide to take the for sale by owner Texas route, this can be a difficult and stressful situation, so why go through it when you don't have to?

Just go to http://www.housesoldin9days.com/free_ebooks.htm and download the free information at your convenience.

Advertising Your For Sale By Owner Home on the Internet

It seems you can't drive far without seeing a home that is listed for sale by owner. Selling a home without the assistance of a realtor is probably today's hottest trend in the real estate market. If you know anything about selling, you know that one of the most important components of success is to get the product out in front of as many prospective buyers as possible. This type of product placement is critical even when the product being sold is a home. Realtors typically take care of this type of exposure. But when you make the decision to put your home on the market as for sale by owner, this task falls into your lap.

Sure, lots of people driving by your home will notice that bright red FSBO sign out in your front yard. But these people might not be in the market for a new home. A few will know others who are, and they'll spread the word about what they saw, but if you plan to sell your home anytime soon, you'll need more prospective buyers than this.

What other choices do you have for advertising your for sale by owner home? You can run an ad in the local newspaper and this will bring out a few more buyers. You can have one of those pretty flyers printed up and you can stuff them into the tube below the "for sale" sign, but again, only those driving by are likely to see this flyer. You can make up cards and hang them on community bulletin boards located inside grocery stores and public buildings, but this likely will be a waste of time and effort.

There's another way that's been proven to be effective and that entails listing your home on the Internet. Think this is overkill? You wouldn't be alone in this way of thinking. But you also wouldn't be right, either. The Internet will give your home the nation-wide exposure it needs to generate a fast sale. In fact, many of the web sites dedicated to selling homes specialize in listing only for sale by owner homes, like the one offered at http://www.fiftystatesfsbo.com.

Nowadays, everybody uses the Internet to search for information and they're using this powerful tool to purchase new homes. Don't you think it's time to get your for sale by owner home listed on the Internet?

Article Source: http://EzineArticles.com/?expert=B_Shelton

Do-It-Yourself Guide: Home Selling for Rookies

You can save thousands of dollars in realtor commissions by selling your home yourself. If you decide to sell your house without the help of a real estate agent or realtor, you'll find that it's a popular solution in the current housing market, but it isn't an easy one. This guide to home selling should help you figure out what you need to know to sell your home yourself.

Without a knowledgeable realtor to guide you, you'll have to hone your knowledge of the housing market, lending practices, loan availability and requirements for a home sale in your area. You'll need to make time in your schedule to show your house, and brush up on your people skills and negotiation know-how. If all of that hasn't discouraged you, you'll find the tips below a helpful guide to home selling.

1. Price your house right from the start.

Listing your home for sale at the right price is the single most important thing that you can do when selling your home yourself. Check listings in the newspaper and online to find prices for similar homes to yours in your area and price yours accordingly. The best selling homes generally are priced within 2-3 percentage points of other homes that have sold recently. Remember, location is your biggest determinant of price. The 'nicest house in the neighborhood' won't fetch much more than the average.

2. Invest in repairs, not improvements.

When you're getting your house ready to sell, concentrate on making repairs, not improvements. Fix the leaky roof, take care of crooked and broken shingles and shutters and fix the cracked driveways and walkways. Cosmetic repairs are your best investment when it's time to sell your home. Home improvements seldom recoup their cost. A realtor's guide to home selling can tell you what home improvements are most likely to bring the most return on investment.

3. Advertise widely.

Use every advertising option you can think of - newspapers, real estate magazines, internet listings and supermarket bulletin boards have all been known to sell houses. Don't completely ignore traditional avenues either. A flat fee listing with a local realtor can get your home into the Multiple Listing Service where it will be seen by thousands of people.

4. Think safety.

Real estate agents, particularly female ones, have learned to consider their own safety when showing an empty house. Let their experience guide you - it's an unfortunate but true fact that there are creeps out there who target homes for sale as easy marks for theft or worse. Never show a house without letting others know, and if possible, having someone else in the house with you.

5. Use your showings to interview buyers.

When you show your home, use the opportunity to find out what you can about the prospective buyer. A few careful questions can help you weed out those who aren't serious, or likely won't qualify for a loan.

6. Keep your house in 'show' condition.

As long as your house is on the market, keep it in show condition so that you'll be ready to show it at a moment's notice.

7. Be ready to recommend funding and lending options to your buyers.

While most buyers will have already taken a look at their financing options, some may not have considered financing - or may be having difficulty finding a mortgage. If you can suggest an option that works for them, you'll be able to close on the sale.

8. Follow through.

No job is finished till the paperwork is done. Be sure to follow through on all the necessary paperwork, including inspections, notice of escrow, listings and anything else that might hold up your home sale.

This is a very brief overview of all the things involved in selling your own home. For a more comprehensive guide to selling a home, visit your local library or speak with a realtor in your area for more suggestions.

Article Source: http://EzineArticles.com/?expert=B_Shelton

Realtor Techniques to Help House Sell Fast

Even if you've decided to go the FSBO route, you can use some tried and true realtor techniques to help your house sell blazingly fast.

Fact: Houses that sell within the first two weeks they're listed usually fetch their asking price. It's simple human nature. Newer listings get the most attention, both from buyers and realtors. Once a house has been on the market more than a couple of weeks, realtors and buyers alike will start wondering what's wrong with it. Most often, the only thing 'wrong' with the house is that it's priced outside the neighborhood limits.

A good realtor can help you avoid that mistake, but it's only one of the tricks and techniques that a realtor will use to help your house sell fast. Many of the techniques that professional real estate agents use are available to anyone. If you're looking for help to sell your house fast, here are a handful of tips that professional real estate agents use to get a sale moving in high gear.

* Price your house right. The right price is within a few percentage points of recent sales of similar homes in your neighborhood.

* Keep your house clutter-free and spotless, inside and out.

* Schedule an Open House. Holding an open house on a weekend afternoon will get your house more exposure and help your house sell faster.

* Advertise your property for sale in multiple venues. Use newspaper, local real estate magazines, online home sale web sites and post printed brochures on supermarket bulletin boards. The more places you post your house, the better the chance that you'll connect with a buyer.

* Keep fresh flowers around. It may seem like a silly psychological trick, but realtors all agree - fresh flowers on the living room or kitchen table help a house sell.

* Use Multiple Listing Service. Yes, you need to be a realtor to list a house on the MLS, but that doesn't mean that you have to pay a commission. There are realtors who'll accept a single, flat fee to list your house for you.

* Pre-inspect. By paying for the inspections that will need to be done when a buyer is ready to make an offer, you may save time on the sale. Remember, it can take as much as six weeks from offer to closing. Any time you save in there will help your house sell faster.

* Engage a good real estate lawyer to firm up the finishing and closing details. A lawyer will ensure that you don't miss anything that may affect and slow totally derail the sale of your house.

* Organize all your papers and have them handy. Those include not only your deed and real estate surveys, but any warranties for home improvements, major appliances and home systems.

The more that you get done in advance of posting your listing, the more you'll help your house sell fast.

Article Source: http://EzineArticles.com/?expert=B_Shelton

Colorado Real Estate

The state of Colorado is located in the mid western part of the United States of America. Its geography is a mixture of peaks and plateaus as the western part Colorado is home to the Rocky Mountains, and the opposite side is composed mainly of high plains.

Before the year 1993, Colorado law states that only real estate agents can represent the seller. Now, this law has changed and the buyer and/or seller can represent themselves. Should they want to be represented by agents; the said agents can only act as transaction-brokers.

As is required in all states, a home seller has the responsibility to give equal opportunity to all those who are interested in his property. He cannot discriminate against anyone nor can he instruct an agent to set limitations on the sale.

For home sellers, there is a long string of real estate contracts that need to be accomplished. These include Listing Contracts (Exclusive Right to Sell / Buy), Sales and Addenda to Contracts, Disclosure Documents, Counter Proposals, among others.

In April 5, 2005, the Real Estate Commission in Colorado voted to use the property listing and buyer representation forms instead of the old ones, the existing Listing Contracts, which are still in use.

Following this move, the same Real Estate Commission, on October 4, 2005, has opted to use several new forms including property disclosure, tenant contract, common interest community, and brokerage duties disclosure (REO and Non-CREC Approved Listing Agreements).

The old forms are still being used and accepted today, but by January 1, 2006, the use of the real estate forms that the Colorado Real Estate Commission approved will be mandatory, and the old real estate forms will be repealed.

Rental Agreements: Critical Tools

When Donna rented an apartment to her first tenant, she had no idea what she was getting herself into. She had a carriage house apartment over her detached garage, and she trusted and liked the friend who wanted to rent it from her.

Little did she know that the friendship would go south when her boarder started partying hard in the apartment in her backyard. He played loud music, he had friends over at all hours, and she could smell the strong aroma of pot in the backyard.

At last, she told him he had to move.

He told her he didn't.

Without a signed lease or rental agreement, he was right. Donna had to go through formal eviction procedures, including a trip to court to pay some fairly large filing fees. She had to prepare tons of paperwork, pay to have a sheriff serve an eviction notice – not once, but twice – and then spent hours in court when her ungrateful tenant chose to fight her eviction. And when he was gone, Donna couldn't even sue him to collect damages for the repairs she had to make to her carriage house – damage caused by her renter.

With a good rental agreement, Donna would not have spent eight months evicting her renter. At Legalhomeforms.com, you can find rental agreements covering every imaginable contingency, from someone renting space in your home to formal lease agreements for houses, condominiums, and apartments. Instead of making Donna's mistake, download good rental agreements here, and get everything in black and white.

Real Estate Sales Contract- What happens if you don't use one

When you're buying or selling real estate, the last thing you want to do is use a real estate sales contract that doesn't take into account the most recent developments in the world of real estate.

Katherine made this mistake. Her small real estate office was in the habit of using old contracts that were similar to new sales that had been made. Unfortunately, laws change, and a clause controlling how homes were assessed didn't take that into account. Several new homeowners, upon finding problems with their homes that the assessors did not take into account, sued Katherine's real estate business. She wound up going under.

You may not be interested in selling on the scale of a real estate office, but no matter what kind of home or property you're selling, you need to have a real estate sales contract that is up-to-date with all laws, and that takes into account contingencies you may have to face with the changing real estate market. You also have to remember that different types of property – farms or businesses, for instance – have different laws controlling them. And the law is constantly changing. You should never use a contract that is more than a few months old, simply because the rules change and could leave you open to liability.

You can find excellent current real estate sales contract that you can download directly from the Internet at www.legalhomeforms.com. No matter what kind of contract you need or what kind of real estate you're trying to sell, they can help you get your business done.

Rent to Own a House

Yes, it's done. Margaret wanted to get rid of the house her mother had left to her, but she didn't feel right selling it. Besides, the home had some cosmetic and structural issues that needed to be addressed, and she didn't think it would sell for enough on the open market to pay for itself. But she didn't want the responsibility of leasing the home either.

Her solution? Selling it as a rent to own house to a distant cousin. This provided Margaret with a stable and consistent income, and relieved her of any responsibilities for fixing the home, though she did offer to help pay for some of the improvements.

The problem? She used a lease contract, instead of doing the research for a rent to own house contract. This meant that she left herself open to a different type of liability. In this case, the cousin who had been purchasing the house decided that they did not want to buy the house. In addition, they wanted to continue living there for a while and wanted Margaret to make the necessary improvements to it – the ones they'd verbally agreed to make.

The outcome: after the cousin threatened Margaret with a lawsuit, and she spoke to a lawyer and found that they would win, Margaret was forced to make the improvements to the home herself. These improvements did not significantly improve resale value of the house, and when they moved out Margaret was left with the same problem. She wound up selling the house at a loss.

This is far from the only thing that can happen if you don't do a rent to own contract properly. But there are good tax, finance, and liability reasons to sell a house in this way, besides the emotional reasons. The solution: download a good rent to own home contract. The forms here are legally valid, are applicable to many different situations, and won't cost you an arm and a leg like a lawyer or real estate agent would.

Using a Real Estate Disclosure Form

Pat was buying a house. Everything looked great: the building was in good shape, the land around it was well-landscaped and –maintained, and the detached garage and children's playhouse were a dream. She couldn't figure out why it was going for such a remarkably low price; she'd checked to be sure the title was clear, there was no bad history behind the house, and the owner assured her that everything was in good order.

She bought the house. But then the worst happened.

The plumbing, she found, was inadequate for her family. The water stopped and started, sometimes it was brownish, and when she had it tested the lead content was much higher than it should be.

Lead piping, the plumber explained. It happens sometimes in houses built in the 1950s. He arranged a date and time to come over to replace everything, and Pat arranged for her family to stay elsewhere. How, she wondered, was she supposed to pay for this?

But it could and did get worse. The plumber started drilling, then stopped. Asbestos, he explained, had been used extensively in the house's construction – again, a problem common to houses built during the 1950s. An asbestos specialist would have to be brought in to remove all the asbestos from the piping areas, then the plumbing could be done, and after that, a contractor would have to come in to repair damage where the asbestos had been removed. Moreover, everything in the house needed to be taken out or slipcovered during asbestos removal.

How much would it cost? Pat found, when she did the math, that the ultimate cost was half what she had paid for the house.

The old homeowner denied knowledge of the problem, though Pat knew that the water must have been brown when he was there. And then the plumber confirmed that the homeowner had contacted another plumber he knew. Only after finding the extent of the problem had he decided to sell.

Pat's recourse? None. She had not asked the seller to sign a real estate disclosure form, stating that he had told her everything he knew about the property.

Protect yourself from this situation. Download a real estate disclosure form. If you every find yourself in Pat's position, it can help you recoup your expenses, and even void out the sale of the home in certain extreme cases.

Selecting a Real Estate Contract

Legally-binding contracts are critical to any major deal you make. A real estate contract in particular is important, as purchasing and selling real estate are the largest transactions you're ever likely to make.

Harriet M. was preparing to retire, and she decided to sell her house to her daughter in law. It was a very informal situation, as she was going to leave her home to the daughter in law's children anyway, and she wanted to move to Florida.

Everything that could go wrong, did. First the daughter in law stopped paying Harriet for the home. This cut Harriet's income by about a third, seriously impacting her lifestyle and almost causing her to lose the home she'd purchased near Tampa. Then one of her grandchild's friends fell out of a swing on the property of the house. To Harriet's shock, she found that her daughter in law had let the liability insurance on the house lapse. When the parents of the injured child sued, Harried found herself completely exposed to liability.

Why? Because she had sold the home to her daughter in law without a contract, the house was still in Harriet's name. And since she had passed the responsibility of the homeowners insurance to the same daughter in law, who had let it lapse, Harriet had no idea that the insurance on the home had lapsed.

We all want to trust our family and friends, but the truth is, ninety percent of the time that things like this happen, it's family and friends that do it to you. Instead of taking a chance, and instead of spending a fortune on a lawyer or real estate agent when you know how the sale will occur, download a good real estate contract. Properly signed, notarized, and filed, this will give you a lien on the property, ensure you have recourse if payments stop coming, and protect you from liability caused by the other party.

The Importance of a Rental Contract

When your renters move out and leave a pigsty, what are you going to do about it? Clean it up and not complain, if you didn't get a rental contract.

Take Martin, for instance. He had a nice duplex he wanted to rent out. He was smart and screened his applicants. But when they moved in, he didn't worry about a rental contract. He used a generic contract he found in the library.

The problem was, the generic contract didn't address everything Martin needed to be concerned about. His new renters started storing flammable materials in the little lean-to garage attached to the house. One day, some kids found it and decided to set it on fire. Martin lost the entire duplex. Though it was insured, the renters on the other side of the duplex sued him for damages, and won. Martin wound up with nothing.

No one wants to have this situation happen to them. Make sure you get a really good rental contract. You can download one at legalhomeforms.com.

Above all, once you have a good rental contract, don't let it lapse. And amend it whenever you need to cover something else in the agreement. If outside pets never occurred to you, change your standard rental contract to cover them. Or if you suddenly have realized that allowing the fireworks vendors store their stock in your lean-to shed is a bad idea, include their liability in the next contract you sign. A rental contract isn't just an agreement for someone to pay you money; it's your way of covering your behind in case the worst happens.