Selling Your Home: Market/Sales Price

Whether you are planning to buy or sell a property it is important to become familiar with the terminology of real estate. In real estate the three terms that are commonly used interchangeably are value, cost, and price. Although, all are concepts relating to value, they are not the same. Let’s begin by differentiating between the terms.

Value deals with something that will happen in the future; whereas cost relates to past events, and the amount of money actually paid for the property is the price. Depending on circumstances, the value of a property may be the same, more than, or even less than the price. Several things determine the value of a property: the degree at which it satisfies a need, ratio of supply to demand, transferability, and whether a perspective buyer with need for the property can financially afford the property.

Value is a term, which should be used when speaking of what you think the future benefits will be from the ownership of a particular property. There are several questions that might be asked when trying to assess the value of a property:

1. What is the zoning code? What’s the possibility of it changing in the next 10 years?

2. If the zoning changes, would it impact the use of the property?

3. What are the plans for the surrounding area (a highway, shopping center, amusement park)?

4. What impact if any do the topography, climate, and location have on the value?

5. Will the value be influenced by the interest rate or property taxes?

Market value is the projection of the price the property should bring when the real estate market is competitive and open. Remember – there is a difference in value and price.

Market price describes an activity that has occurred and, as stated above, is the amount a buyer actually paid for the property. The price paid for a property is dependent on several things: motivation of the buyer or seller, location of the property, needs of buyer, and price of similar properties.

The reason to sell or buy a property is as varied as the seller or buyer and can impact the sales price. If a seller is highly motivated he may be more willing to adjust the price of the property toward what the buyer is asking. Reduction in income, financial inability to pay the mortgage, a change in marital status, too many similar properties for sale, and the desire to be removed from the responsibility of the property are conditions that could motivate a seller to adjust the sales price; thus creating an environment conducive to bargaining for the buyer. However, a less motivated seller may not be willing to negotiate his asking price, which probably is in line with the market value described above—not good for a buyer looking for a deal!

A seller’s ideal buyer is a motivated one. If a buyer, for whatever reason, is determined to purchase a particular property and is financially able, the asking price will be similar to the sales price. A situation such as this can mean little negotiation is needed and we have a satisfied seller.

The amount a property sells for has a direct relationship, normally, with the location of the property and how well the location satisfies the needs of the buyer. The more the gap is closed between how well the location of the property addresses the needs of the buyer the greater the chance the sales price will reflect the asking price and market value. A property 20 miles from the closest major highway will not be a good fit for a buyer needing to be in closer proximity to the highway. Before beginning a search for a property a buyer should identify his needs and motivation. By doing this, he positions himself for effective negotiations.

The closer the needs of the buyer matches the features of the property to be sold the greater the chance the sales price will reflect the asking price and maybe even the market value. As a seller, to identify serious and motivated buyers prepare a couple questions that will outline the buyer’s needs:

1. What features are you looking for?

2. What’s the purpose of your move? (This question will help you assess the buyer’s motivation.)

3. When would you like to close?

Today with the downsizing of many companies, some homeowners have been forced to file bankruptcy. Bankruptcy influences the price at which houses eventually sell because in calculating the asking price of a property a comparison of the sale prices of similar properties should be made. The sale prices of these homes often are lower than the market value and the asking price. If the home you are preparing to sale or buy is located near surrounding communities with high bankruptcy rates then the sales price will more likely be adjusted closer to those sale prices.

Remember: whether buying or selling a home, do not confuse the sales price, which is the actual price a property sells and the market value –merely a projection and may not reflect the selling price.

About The Author
Chris Cates is a nationwide real estate investor, who co-founded WeBuyTheUSA along with Todd Dotson. In addition, Mr. Cates is a national real estate mentor for Tactical Real Estate, where he has trained real estate investors across the country. For more information, please visit his website at
www.WeBuyTheUSA.com.

Owning The House That Won't Sell

The real estate market is hopping and houses in your neighborhood are selling like hotcakes. You, however, are stuck owning the house that won’t sell.

Owning The House That Won’t Sell

We first need to get some common anxiety issues out of the way. There is no curse on your house. Real estate agents are not conspiring against you. Home buyers are not tasteless idiots. Well, not all of them. If you’re stuck owning the house that won’t sell, there has to be an identifiable reason and you should be able to find out what it is. This is particularly true in the current real estate market.

The single biggest and easiest issue to address is the price of the home. Simply put, are you being reasonable when it comes to price? What are the comparable home sale prices in your area and how does your price compare to the sold houses that most resemble the condition of yours? If you are asking for more than similar houses, finding a buyer is going to be difficult. Remember, the issue is the appraised value, not what you subjectively think your home is worth.

One area where people get into trouble is improving beyond their neighborhoods. This occurs when you pursue home improvements that add substantial value to your home, but can’t be supported by the surrounding houses. For example, assume your home and those around it all appraise in the $250,000 to $285,000 range. If you redo kitchens, bathrooms and add a full second story to the tune of $150,00, your probably think your home should be worth roughly $400,000. This is incorrect. Nobody is going to buy a $400,000 home in a $250,000 neighborhood. In such a situation, your best bet is to hold on to the house and pray the neighborhood appreciates over time.

If price isn’t the issue, you need to objectively evaluate how your house is different from those in the neighborhood. Ask a realtor to come take a look at the house and offer suggestions. If all else fails, hire an appraiser to come appraise the house and pay very close attention to the report.

Finally, one of the biggest problems I see with houses on the market is a lack of charm. It may sound superficial, but you want a potential buyer to be able to see themselves in the home. Don’t strip out personal or charming items. Instead, add flowers with a nice fragrance, plants and so on. Buyers are looking for a nice home, not a set of hospital rooms.

About The AuthorRaynor James is with the FSBO site - http://www.fsboamerica.org - FSBO homes for sale by owner. Visit our "sell my home" page - http://www.fsboamerica.org/seller.cfm - to sell your house yourself with a free 1 month listing.

How to Sell Houses at Auctions

Advertising your property at auction can be an immense way of selling your home as quickly as possible. But keep in mind to pack your bags in time - you will have to renounce the keys 28 days following the auction date.

Some of the advantages of selling at auction could be:
Instant trade of contacts
Cash acquisition / subsidy in place - minimum 10% deposit remunerated at Auction
Not subject to agreement.
Finest value achieved through spirited bidding.
Market publicity - loads of auctions exert a pull on 100's of impending buyers.
Predetermined end date.
Speedy sale - without compromising sale value.
Take care to choose the right auction home. This involves selecting an auctioneer who offers assets analogous to yours, within the equivalent cost range. Choosing an inappropriate auction house greatly minimizes your odds of getting a constructive deal on your house. Also, execute a property assessment before you settle on the reserve cost sequentially to guard yourself against a highly inauspicious sale.

The Costs

The auctioneer will charge you for the commercial in brochures and catalogues, a price that you will have to wrap despite the consequences of whether your property is sold or not. You will also have to reimburse a payment of around 2.5 percent of the sales price. Ahead of signing any contract, note all the operating cost you will have to wrap, even if your house is not sold.

Proceedings


Lay down the reserve cost
Organize a deal
Unfasten your property for viewings
Once the auction starts, the sale is authorized and legally compulsory. The purchaser will have to pay you 10 percent of the settled sales price right away, the excellent balance within 28 days after the auction. If he fails to do so, file a suit against him!

The Disadvantages

You can by no means be acquainted with how much your property will sell for. An auction is a exceedingly unpredictable marketplace - if there is no stipulate on the day of your sale, you might end up selling it below its market worth.

You will have to reimburse your solicitor to be there at the auction in order to reform any final irregularities and come back with questions. Depending on how keen your solicitor is about itinerant, this can be rather an expensive issue.

A few people believe their confidentiality sullied at auctions, as the properties have to be open to prospective buyers and their surveyors. Promoting your house at auction can be pricier than selling it through an Estate Agent. Moreover, you will have to wrap certain operating expenses even if your property does not vend.

Ron Victor is a SEO copywriter for http://www.webuyhousesforcash.comHe written many articles in various topics.For more information visit http://www.webuyhousesforcash.comContact him at ron.seocopywriter@gmail.com

Existing Home Sales Drop

The sales of existing homes decreased in May with the median price of homes leveling out to a relatively normal rate.

Total existing home sales were down slightly by 1.2% to a seasonally-adjusted annual rate of 6.67 million units in May, according to the National Association of Realtors.

The sales were 6.6% lower than May of 2005, when sales were at the 7.14 million-unit level.

The national median price of an existing home was up by 6.0% to $230,000. Last May, the median was at $127,000.

The surplus levels of existing homes on the market increased by 5.5% to 3.60 million homes for sale. The number represents a 6.5 month supply at the current sales rate.

Existing condominium and cooperative housing sales grew 1.9% to a seasonally adjusted annual rate of 852,000 units in May. Condo and coop sales remain 6.6% under the unit pace of May 2005, when sales hit 912,000.

The median price of an existing condominium was up 1.9% at $229,300 in May, when compared to one year ago.

Single-family home sales were down 1.5% when compared to April sales, and 6.6% lower than May of 2005.

The price of the median existing single-family home was up 6.4% to $229,700 when compared to May of 2005.

Sales declined in both the Northeast and Midwest, but increased slightly in the South and West regions of the nation.

Martin Lukac represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!

Who Is Responsible For Closing Costs

Buying or selling a home is a euphoric experience for both of the parties involved. This euphoria can cool when you learn which party is responsible for the closing costs.

When looking to buy or sell a home, every person eventually arrives at the question of funding closing costs on the transaction. To put it simply, both buyers and sellers typically are responsible for some of the closing costs. However, the exact amounts paid can vary significantly from area to area and depending on what agreements the buyers and sellers come to in the offer-counteroffer process.

It is important to research the area you are looking to buy or sell in and be knowledgeable regarding any laws and standards of practice for the area. Yes, the requirements are different in each state and often each city. Know what you will have to pay ahead of time so you can be prepared to cover these costs. Here are some examples of what buyers and sellers generally have to cover.

Buyers typically pay the following: fees charged for obtaining a mortgage; inspection fees; homeowner's insurance (must be prepaid for one year at closing); transfer taxes if there are any (although the seller may pay these or they may be shared 50-50 between buyer and seller); title insurance and escrow fees (varies depending on the location); and attorney's fees (if and where attorneys are involved in the transaction). If you are confused, a mortgage broker can tell you which fees are customarily paid for by the buyer in your area and how much they will cost. When buying a home, the use of mortgage brokers is highly recommended to both get a great deal on a mortgage and help with the transaction itself. The broker only gets paid if the deal goes through, so you know they will make every effort.

Sellers' closing expense responsibilities typically include: loan payoff fees; the real estate commission (in some cases, a portion of this may be paid by the buyer); title insurance (depending on the location); termite repairs (this is negotiable in some areas); cash payments in lieu of repairs to the property; all or part of transfer taxes and escrow fees, if there are any; attorney's fees where applicable; and other fees set by local custom or negotiated during the transaction.

Knowing and researching the area you are buying or selling in is critical to understanding who is responsible for closing costs. Educate yourself and you will avoid overpaying.

Raynor James is with the site - FSBOAmerica.org - FSBO homes for sale by owner

Closing Costs When Purchasing A Home

Buying a home is a financial strain if you are making a sizeable down payment. This can lead to problems if you forget the hard, cold cash you will need for closing.

Everybody looking to purchase a home no doubt wonders what the average closing costs will be. It is only natural to wonder, especially considering how expensive the closing costs can truly be if you are not careful. In truth, the costs aren’t much given the amount of money the home typically sells for, but they can cause problems because they usually must be paid now and in cash. Essentially, they add to the down payment amount and can cause cash flow problems for buyers.

As you might imagine, closing are not easy to quote. Closings in one state involve different things and costs compared to another. Closing costs related to things such as points and property taxes are dependent on the particular deal and geographic location. Some states, for instance, do not collect property taxes, which means no deposit against them must be collected at closing. All and all, you should take the following figures with a grain of salt, but at least you will have a guideline.

To protect their investment in you, most lenders roll the majority of closing costs into the payment plan for the loan. For instance, the lender will require you to pay a deposit in to one of their accounts to cover future property taxes and such. If you are lucky, some creative lenders will actually roll these costs into the in the loan given to you.

As of 2003, meaning the numbers have risen quite a bit over the past couple years, the average total closing costs for a $180,000 mortgage amounted to between $2,000 and $10,000. This figure is an admittedly vague calculation of costs ranging from appraisals to fees and taxes. Do not go into a real estate transaction assuming these figures will apply to your specific situation. Get a very clear written statement of all costs, so you know exactly what is coming and the amount of cash you are going to need on hand to cover them.

If you are buying a home, there is one way to attack closing costs. You can aim for a no point, no fee home loan. Assuming you can find a lender, many of the expenses attributable to a buyer are going to disappear. Of course, you have to get the loan!

The fact that you are wondering about the closing costs when purchasing a home is a good sign. It means you are thinking through the process properly. That being said, don’t rely on anything you read on the web, including this page. Get the exact terms from your lender and an escrow company. If you have less than stellar credit, using a mortgage broker is an excellent option as they now how to beat down the costs in your favor and can also give you a solid estimate based on both their experience and the lender being used.


Raynor James is with the site - FSBOAmerica.org - FSBO homes for sale by owner.

Fort Lauderdale Residential Real Estate

Nothing can be more brilliantly beautiful and convenient then having your own space in Fort Lauderdale. Fort Lauderdale, located in the Florida’s urban area, is also known as the “Venice of America.” It has a wonderful beachside location, clubs, bars and a lively party ambience. Having your own home in a place like this is wonderful.

The city center and entertainment area has seen remarkable growth, with add-ons of new hotels, high-rise condominiums, boutiques, galleries, and fine restaurants. The city also offers a variety of housing options, which include commercial, roof-space style, villas, suites, town homes, and single-family homes. Apart from these, many homes are located on the waterfront with scenic views of the ocean.

Homes can be found in all price ranges. Fort Lauderdale has all one can long for in the city. Fort Lauderdale is also a center of fine dining, fashion and entertainment. The city also has colleges and universities to cover your educational needs. It also offers entertainment and recreation for you and your family. The city not only offers you an exceptionally rich quality of life, but its rich culture and history makes it a perfect place to own a property. The climate is also favorable, with cool ocean breezes all year round that makes it ‘The Best’. So next time you want to invest in for a property, you know Fort Lauderdale is the best place to do as it gives you the best of nature, leisure and culture-- all in all best of all worlds.


Fort Lauderdale provides detailed information on Fort Lauderdale, Fort Lauderdale Residential Real Estate, Fort Lauderdale Airport, Fort Lauderdale Bail Bonds and more. Fort Lauderdale is affiliated with Swim with Dolphins in Hawaii .

Sell Your Home: What Do Home Buyers Want?

A poll of potential buyers released March 1, 2006 by Maritz Research revealed that sellers ought to do more than just look after required maintenance before showing their home. In fact, decorating improvements help make a strong impact on buyers and can ultimately affect a home's market value.

The study found that although renovations can boost a home's sales price, sometimes too much unique style can decrease a home's marketability. Therefore, if you're selling a home, you should understand your profiled buyer and make changes that buyers in your price range and location want.

The study found that thirty-six per cent of potential buyers were willing to pay premium prices for homes with updated interior decoration. Surprisingly, more men than women wanted updated decor with 41 percent of men versus 30 percent of women desiring this feature. More than likely, this is because women like to decorate their own homes and men want to move in without doing any work on the house.

When asked which home feature they would pay more for, 79 percent of buyers said that they would be willing to pay more for a renovated kitchen. However, most of these buyers did not want to pay for a remodeled kitchen in a style they didn't prefer. Home sellers need to evaluate the cost of a kitchen renovation in relation to the expected price increase. Often, a though deep cleaning, painting in today's color choices, and a new faucet combined with home staging strategies give home sellers the market edge without a large cash outlay.

The poll stated that 63% of buyers preferred a higher priced home ready to move into than a bargain priced fixer-upper. Because home buyers are willing to spend more for the ideal home, but not the time or work to renovate a fixer, home sellers who take advantage of home staging can make their home feel like a "dream home" without undertaking major remodeling projects.

Although most buyers prefer a renovated home, the poll revealed that 65 percent of buyers expect to spend about $5,000 making their home suit their tastes and that only nine percent of home buyers would only buy a home that needs no improvements.

Consider your home decorating in your list of home improvements to get your home ready to sell.

Copyright © 2006 Jeanette J. Fisher


Jeanette Fisher teaches five ways to use home staging for a top-dollar sale. Understand which changes give you the highest return on your exterior and interior decorating changes. Sell your home for top dollar with real estate staging. For more information about home staging, see http://homestaging.us

New Home Sales Unexpectedly Rise in May

The sales of new homes unexpectedly rose in May as unsold homes fill the market.

Purchases rose by 4.6% in May to an annual rate of 1.234 million, said the Commerce Department on Monday. There were 556,000 homes for sale at the end of May, up from a record 560,000 the month before.

Many builders are offering incentives, such as free country club memberships, to bring buyers in during rumors of a slowing market.

The gains in sales seems to confirm the Federal Reserve forecast that the market slowdown will not be abrupt, but a leveling out of the market. Policy makers are expected to continue on with rate increases throughout the upcoming months.

"We are surprised at the resilience of home sales over the last three months, and these data suggest that any near-term economic slowing from the housing market is likely to be fairly limited," said John Ryding, economist at Bear Stearns & Co. in New York.

Homebuilder shares rose after the report -- the S&P index of 16 builders increased 21. 5 points, or 3.5% this morning.

Purchases were forecasted to slow in May, according to a Bloomberg News survey.

The number of unsold new homes decreased to a 5.5 months supply given the increased May sales pace. The median price of a new home increased 3.1% in May, up to $235,300.

Sales were increased in the South, West and Midwest. The Northeast saw a decline in home purchases by 7.9%. New home sales accounted for 15% of sales nationwide.

Home construction rebounded in May, rising 5%. Builders reportedly worked on backlogged orders. Building permits are used as a sign of future construction; they were down for the fourth straight month.

New home sales are considered by economists as a leading indicator of the housing market.

"Although a slowing in housing is apparent in a wide range of indicators, it seems to be occurring in a gradual way," said Fed Governor Susan Bies.

Martin Lukac represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!

Complete Bathroom Remodel Guide

Your bathroom is one place where you are very truthfully yourself and thus you want it to be the most comfortable zone that speaks of your individual style. Bathroom remodel plans are the best way to ensure that your bathroom is what you want it to be. If you want a house that is in-sync with the latest home décor trend but do not have the budget to go for complete home remodeling, you can get the bathroom remodeling done. Bathroom remodeling incorporates the elements of a modern and latest décor trends in your house without weighing too much on your pocket.

There are several bathroom trends that are in vogue these days. Hire a bathroom remodel contractor to remodel your bathroom. The contractors are more experienced and better aware of the latest inclinations of the market and the styles. Some popular inclinations for bathroom these days include two sinks, tub-cum-shower and more. In the two-sink bathroom remodel plan there are two sinks in the bathroom so that the toilet area is completely separated from the bath area. Then in the tub-cum-shower bathroom remodel style the shower area is fast being replaced by bathtub that doubles up as the shower area.

Your bathroom remodel plan should take care of the safety and comfort as much as it does of the style. There are several electric gadgets that are used in the bathroom so the bathroom remodel should include appropriate safety measures installation such as:


Non-slip flooring


Ground-fault circuit interrupter electrical controls


No electrical switches around the tub or shower


Water control valves in the shower are pressure balanced and temperature regulating


Make sure that your bathroom remodel contractor has considered the ventilation and lighting fixtures thoughtfully. An efficient and comfortable bathroom is the one that is well lit and well ventilated.

There is no limit to how much you can spend on your bathroom remodel project. However, hiring a contractor will ensure good work that moves within your specified budget, as per your requirements. Moreover, the contractors work within predefined time frame.
Natasha For more tips and details visit: www.allremodel.com

Selling Real Estate by Owner in a Slowing Real Estate Market

One question that is often asked as I speak with sellers of FSBO Real Estate is “Can one still sell FSBO in a slowing real estate market?” or “Can one sell FSBO when there is so much inventory on the market?” The answer is absolutely one can still sell their real estate FSBO. The only caveat is that it may not be as quick or easy as it has been the last few years. That holds true whether selling FSBO or with an agent.

Buyer psychology is changing as the market changes from a seller’s market to a buyer’s market. In 2005 buyers were nervous that if they did not buy soon the price would go up and they may be priced out of the market. In 2006 with more properties on the market and slower appreciation buyers do not feel as pressured to place an offer.

So with the market changing how does the FSBO seller overcome the quantity of inventory on the market and buyer psychology? The simple answer is exposure and pricing.

A few years ago it seemed like all the FSBO seller had to do was run a few ads in the local paper, put out a sign and wait for the buyers. Today, though local media and signs are still important, sellers need the exposure of the internet, personal face to face marketing, and unconventional marketing. One still needs to have a sign letting drive bys know your home is for sale. A local media campaign with ads that are informative and running multiple times is necessary. The internet with its FSBO web sites is a great marketing tool. It gives sellers the ability to describe their property, both with words and pictures. It gives buyers the ability to quickly and from the comfort of their homes or offices browse local real estate and real estate from around the world. FSBO Sellers have to let everyone know they are selling their homes. Remember co-works and acquaintances may not be in the market for a new home but they have friends that have friends. Some unorthodox marketing may consist of ads on local bulletin boards, flyers that are handed out at events, work place bulletin boards, and letting local real estate agents know that, though you are selling FSBO, you will work with them and protect their commission, if they bring a legitimate buyer. Many of the internet FSBO sites like FSBO Volusia have the ability to print brochures and e-mail copies of the ads. The key is to get creative and remember how much money selling FSBO is saving in commissions. Some of the savings should go to marketing while some can be used for competitive pricing while the balance can go in your pocket.

It is imperative that one prices their property fairly and competitively so that it does sell. Remember buyer psychology is changing and there are more homes on the market. The price that a given piece of real estate will command is determined by the market not by what the seller thinks the market should pay. In many instances a good start is to get a professional appraisal. Though this may cost a bit, it can be used to show potential buyers that the property is priced correctly and more importantly when it comes time to get a mortgage the buyer should have no problem with financing based on the selling price.

One can sell FSBO in today’s market with creative exposure and fair pricing. http://www.fsbovolusia.com

A Word of Warning About Home Inspections When Buying

When you make the decision to purchase a home, you are committing to a lot of debt. You want a home inspection, but be careful with your choice of inspectors.

When purchasing a home, it should be required that the buyer set up a home inspection on the home. This home inspection is designed to ensure the home is in good condition and to notify the buyer of any potential problems in the home. However, there are some things that potential buyers should be aware of when having a home inspection done.

In order to ensure that the home inspection goes properly, it is important for the buyer to be careful about which home inspection service to go with. Often times, the seller or seller’s realtor will make a suggestion for a home inspection service. Often, they will even offer discounts for using the service. Should you go with the discounted service offered by the seller?

Sure, the discount can be good, but you could potentially be setting yourself up for a big loss in the future. To understand why, first understand that the real estate agent has a pretty big commission on the line. Real estate agents often make 6 to 8 percent of the total sale. This means they have a lot riding on every sale and they are looking to close out every deal they can. While ethics should drive them to be fair in every sale, the sad reality is they are looking after the seller and their commission, not you. Hardly a surprising statement, eh?

Home inspection services recommended by the agent often carry an unspoken agreement. If the inspection reports are favorable to the seller, the inspector will get more business. If they are not, the seller’s agent will find someone else for future deals. Human nature suggests this situation can lead to certain deficiencies being overlooked by the home inspector, a fact you will inevitably pay for in the future.

The bottom line is that you, as a buyer, need to be aware of the importance of objective home inspections. The inspection is going to tell you if there are any problems with your potential dream home. If there are, you can demand the seller have them repaired, lower the price or pay cash funds at closing so you can have it done. If you use an inspector recommended by the seller or seller’s agent, you run the risk of missing some major problem with the property. Don’t do it!

Raynor James is with the site - FSBOAmerica.org - FSBO homes for sale by owner.

How To Sell Your House Fast

Selling a house is an exercise that demands loads of patience and efforts; not to mention publicity. Yet, with the right kind of approach, selling a house can be converted into a quick and even enjoyable activity. A house can be sold in less than a week if all preparations are in order.

Time is often a crucial factor in taking the decision to sell a house. If a house is being sold when the market prices are low, then it quickens the sale. However, this causes the homeowner to suffer a loss. On the contrary, houses that are put up for sale during a high in prices may not be quickly lapped up by buyers.

Once the decision is taken to sell the house, there are lots of preparations to be done. The first and foremost preparation is to spruce up the house and that includes the yard and the storehouses. Fences must be repaired if necessary, grass should be mown, gardens and pools must be cleaned up. Time must be taken to clean up the interiors of the house by removing the clutter and arranging the furniture in their proper order. If required, help may be hired in order to put the house in order. Houses with jaded exteriors put off potential customers. Hence, repainting of the house helps boost its sale. A little bit of touch up can also be done on the picket fences and interiors if necessary. Only after all this is done, the ‘For Sale’ board must be put up in the lawn.

The quickest way to sell the house is to publicize its sale in the immediate neighborhood. People living as neighbors sometimes have relations and friends whom they want to share their neighborhood with. Hence, they are the best mouthpieces for the sale. A little party can also be organized when the neighbors are shown around the house. Along with this, flyers can be distributed or posters can be stuck in shops and malls in the vicinity. These advertisements must contain the address of the property along with the contact details of the owner.

Once prospective buyers start drifting in, it is necessary that some competent family member always be at home to show them around. A locked house is a great way to put off prospective buyers. While showing them around the house, the plus points of the house must be highlighted. It is best to make clients aware of any shortcomings in the house to avoid altercations later. When the house is shown, a price can be quoted to them.

Interested buyers would definitely hold negotiations for the price. Though the seller wishes to close the deal fast, there must be no hurry to finalize the price. When both parties reach a price suitable to both, the deal can be considered struck.

The keywords to getting a home sold fast are beautification and publicity. A good looking house publicized in the right manner gets sold faster.

Sell My House Fast provides detailed information on Home Selling Advice, Home Selling Prices, Home Selling Process, How To Sell Your House Fast and more. Sell My House Fast is affiliated with Land for Sale by Owner.

Home Selling Prices

Pricing a home realistically is the most important aspect of the entire process of home selling. It pays (literally as well as figuratively) to carry out a self-assessment of the property before putting down a price on it.

The basic determining factor for deciding the price should be the current market value. Some realtors can provide a list of recently sold houses in the neighborhood and the prices at which they were sold. Such knowledge helps to assess the worth of your house. An important point to remember is that prices of houses depend on the area where they are located. A house similar to yours in a different neighborhood could cost differently than yours.

Quoting the price to a prospective buyer can be an arduous process. It must be done gently but without hesitation; and you must have total conviction in the price you are quoting. Factors like whether the buyer will be able to afford it or not should not be taken into consideration. The buyers must have already made a pre-examination in the neighborhood.

If there are estate agents involved, then there is more caution to be used. Once they come to know that you are putting up your house for sale, estate agents will begin to contact you. They will claim to get higher prices for your property. But you should be realistic in your approach. No property is going to get more than what it is worth. Choose your agent wisely.

Another big folly is to overprice your house at the onset. An overpriced house just puts the buyers off. You may lower the price later, but that is not the same thing. After a few weeks, the novelty effect of your house in the market wears down. Buyers and agents will sense that you have become desperate to get rid of your house and they will cash in by quoting much lower prices than they meant to. Consequently, you might have to dispose off your house at an ironically low price if you had overpriced it initially.

A realistically priced house often has no difficulty in selling. It is wise to have a genuine realtor price your property before you put it up for sale. Even while negotiating with buyers, be neither too rigid nor too flexible. A correct approach will get you the price that you expect of your cherished home.

Sell My House Fast provides detailed information on Home Selling Advice, Home Selling Prices, Home Selling Process, How To Sell Your House Fast and more. Sell My House Fast is affiliated with Land for Sale by Owner.

Know How to Negotiate

If you think that negotiating is something only a buyer will do, you’re very much mistaken. Even as a home seller, you will, at some point in time, negotiate with your potential buyer. Remember that, negotiation is a two way street.

When you are negotiating, make sure that you remain detached from the entire transaction emotionally. Bear in mind that this is a financial matter and, when dealing with money, it’s always better to think with a clear head. Don’t look at your house as the home that sheltered you through many storms in your life, but view it objectively as a solid structure made of stone, timber and mortar.

It is also important that when you are negotiating (or presenting a counter offer to your buyer) you don’t just think of the actual money changing hands, but the “net” profit. Take into consideration all the costs that you (or the buyer) will shoulder. The money you get from the buyer who offers to pay a little less than what you’re asking for and also shoulder all other incidental expenses may be more than the total net amount you’ll get from a buyer who will pay your asking price but will leave all incidental costs for you to settle.

Keep mum about the lowest price you are willing to accept. Don’t tell anyone, even your friends and family (except your partner, of course). By letting buyers know that you’re willing to settle for far much less, expect them to haggle in order to get that amount (or even lower). Just accept the offers that come in and negotiate if you don’t find them suitable.

Finally, you should always keep your temper in check and practice utmost decorum and tact at all times. You cannot raise your voice or utter sarcastic remarks as these will turn your buyer off and leave you with a bad reputation. Negotiation is all about reaching a compromise, and this cannot be done if you enter the battleground with a hot head and a short temper. Be patient and amiable, and eventually, you’ll settle things nicely.


This is article is brought to you by Gloria Smith at LegalHomeForms.com Created by a former, licensed Real Estate Agent, LegalHomeForms.com was designed to offer instant access to the most sought after type of real estate forms. For more home selling tips please visit our website.

Showing Your Home Like A Pro

One of the many tasks you will be doing when you sell your home is to show it off. Showing it off is more than a fresh coat of paint and nicely trimmed hedges. It’s also about making sure that the interiors look just as pleasing as the exteriors.

When you’re house is up for showing, make sure that you remove all the cutesy-clutter that makes your house a home. None of those refrigerator magnets made by your grand child, and remove the collection of Christmas cards you’ve amassed through the years. Keep the accessories to a few, generic, non-personal pieces (think: vases, lamps, flowers). Pull back the drapes too and let in some light. Unless your buyer is Morticia Adams, dark interiors will not make your buyers reach for their check books.

It’s also important that you deodorize! Make sure that the puppy aroma of your pet and the smell of the tobacco your grandfather loves to puff are not noticeable. To combat these odors, days before your showing, remove the puppy (and since you can’t remove grandpa) and the cigars from the premises and ventilate the house. Prior to the arrival of potential guests, on the pretext of preparing munchies for potential buyers, bake a batch of fresh cookies and brew a pot of coffee. Not only will these mask whatever existing undesirable odour there is in your home, these aromas are known to induce bouts of spending.

Finally, it helps if you have brochures or little leaflets highlighting the best assets of your house handy. Have them sign your guestbook, not so you can harass them into buying your house, but only so you can send them little thank you notes for considering your home to be their next residence.

You may not sell your home to these people, but you would, most definitely, create a lasting impression. Who knows, you may have lost a buyer, but gained a friend.

Essential Contract Clauses

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Congratulations! You just purchased that new home study course. You followed the instructions. You found a good deal. You present your contract to the listing broker, and you get laughed at!
The reality is, real estate brokers don't like "seminar" forms. They are comfortable using the "standard" agreement, although the standard agreement is usually drafted to protect the real estate broker, not you.

You must learn how to take any "standard" agreement and modify it to your liking. The following are some essential clauses I use when buying a property:

“And/or assigns” or “and/or Nominees”

As the buyer, you want to have the right to assign your contract. By placing your name with the words, “and/or assigns,” you automatically give yourself that right. The words, “and/or nominees” is not as broad, but it has been interpreted as giving the buyer the right to place title in the name of a trust

NOTE: If the contract contains an "anti-assignment" provision, you must cross that clause out.

Inspection Clause

Have the right to make the contract contingent upon your right to do a thorough inspection before a certain date. Make certain that you are not required to hire a professional inspector and that the inspection clause permits you to cancel the contract if there are things wrong with the property which the seller is not willing to fix or reduce the price.

Choice of Escrow Company
As the buyer, insist on the right to choose the title or escrow company so that you remain in control. A conservative or uncooperative escrow or title company can make life very difficult if you are trying to do a creative deal.

Right to Extend

Most contracts call for a date certain for closing. If the buyer is not ready to close, the seller can hold him in default. Here are some tips for buying time:

Make the closing date “on or about” June 1st. What does “on or about” mean? I’m not sure, but it certainly means LATER than June 1st!

Have the right to extend the closing date if it is not your fault: “Said date may be extended an additional fifteen (15) days if lender requires additional documentation, paperwork or actions from the buyer and said delay is not due to the fault of the buyer.”

Have the right to extend for thirty days by paying the seller the equivalent of one month’s mortgage payment.
by Attorney William Bronchick, Legalwiz.com

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Dealing with Real Estate Agents

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The real estate agents have a valuable source of potential deals for the real estate investor - the Multiple Listing Service. Unfortunately, real estate agents have a monopoly on this information, so they may be a necessary part of an investor’s game plan.

Dealing with real estate agents can be difficult as an investor. Agents prefer home buyers with cash to put down, good credit and conventional buying power. Their interest is getting a commission with as little hassle as possible. Most agents have never done a creative real estate transaction with an investor, so they are not often receptive to unusual offers. Most agents equate a “nothing down” offer with a buyer who is not serious.

Offer a Reasonable Earnest Money. You cannot present an offer with a $50 earnest money and expect an agent to take you seriously. You can expect to pay at least $500 as earnest money to get their attention. If you are presenting a solid cash offer, you should put up more money. If you are concerned with losing your earnest money, consider using a promissory note.

Offer a Short Closing Date. Another way to get an agent to take you seriously is to offer a fast closing. Nothing makes an agent salivate more than the thought of a commission check in ten days. If the agent has another offer presented to him, he will usually advise his client to take the offer with a larger earnest money and faster close than an offer which is higher in price.

Insist on Presenting Creative Offers in Person. If you present a creative offer to an agent, it will not be represented to the owner in the same enthusiastic fashion. As stated above, agents do not like creative offers - they like conventional offers from solid buyers. If you want the owner to hear all of the great benefits of your offer, insist on presenting the offer in person.

Appeal to the Agent’s Greed Factor. Let’s face it . . . real estate agents are in the game to make money, just like anyone else in any other business. If you can offer the agent an incentive to make money out of the transaction, you will get his cooperation. If you present an offer which does not permit enough cash to come out of the deal to pay the agent, why would he cooperate with you? If you present a lease/option offer on a listed property, how will the agent receive a commission? You need to find a way for the agent to get paid, even if you pay him out of your own pocket.

Do Your Own Comps. Sometimes you will get the opposite of an uncooperative agent - an overzealous agent. Be suspicious of an agent who tells you what a deal you are getting on a property. If it is such a good deal, why didn’t he buy it? Don’t take his word as to the value. Ask for a printout of comparable sales (not listed properties). Be aware that information contained in the MLS computer was entered by the listing broker and may be exaggerated. If a comparable sale shows the same square footage as the house you are looking at, take a drive by and see if it is accurate. Do your own assessment of value.

Fax Preliminary Offers First. Don’t waste your time filling out a contract offer until you have preliminary approval. Most agents are not this formal and will take any offer in writing to the seller. Simply summarize your offer in writing and fax it to the listing agent. Once you have an oral approval, then take the time to fill out a contract and an earnest money check. NEVER put up earnest money until the offer is accepted!

Don't be Bullied by Uncooperative Agents. If you cannot finesse an agent, don’t be afraid to stand up to him. Some agents are unethical and will refuse to present your offer. Many times the agent will lie and tell you that your offer was rejected when, in fact, it was never presented. If this is the case, do not be afraid to go over his head to the listing broker. If the listing broker is uncooperative, deal directly with the seller (unless, of course, you are also an agent).
by Attorney William Bronchick, Legalwiz.com
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Flyers Sell Houses!

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This last month I found myself in the interesting position of having SEVEN vacant rental properties (ouch!). The typical newspaper ads were not pulling enough calls, any many of the callers were Section 8 tenants (barf!).

Nauseous at the though of forking out another $4,500 on vacant properties next month, I decided to pull out an old, but under-utilized technique. . . the paper flyer. I made hundreds of flyers on my computer in various colors. I included a map with directions on the flyer (thanks to www.mapquest.com). I had them distributed on car windshields in every shopping mall, supermarket and church parking lot within a mile radius of the rentals.

Did I get some nasty calls from people who didn't appreciate the flyer on their windshield? Sure, but who gives a hoot? The United States Supreme Court says it's free speech protected by the First Amendment! Bottom line: every tenant to whom I ended up renting came from a flyer!

Here's another bonus about flyers: you can legally discriminate using them. We all know that you cannot advertise for families, because it is discriminatory against single people. We also know that a family with kids is less likely to break a lease early than a single person (I don't need statistics to tell me this, for I know that the though of packing up my kids' crap is enough to make me want to NEVER move!).

HERE'S THE POINT: If you place your flyers in places that families visit, your chances of finding a family to rent are increased. Rather than a blind ad in the newspaper, put flyers on windshields of cars parked at Bennigan's & Chili's Restaurants (who else would eat at such horrid places?). Place flyers in church parking lots, schools and Toys 'R Us. The law says you can't STATE who you want as a tenant in your flyer, but it doesn't prohibit where you distribute the flyers!
by Attorney William Bronchick, Legalwiz.com

For more information visit www.legalwiz.com

Real Estate Market Timing

The United States, Canada and all other modern industrial economies experience significant swings in economic activity. In some years most industries are booming and unemployment is low; in other years most industries are operating well below capacity and unemployment is high. Periods of economic expansion are typically called booms; periods of economic decline are called recessions or depressions. The combination of booms and recessions, the ebb and flow of economic activity, is called the economic cycle.

Of all the industries contained in the economic basket of goods and services, Real Estate is the one that is particularly susceptible to the ups and downs of economic cycles simply because it is a big ticket industry. It is therefore important for all those involved into real estate investing, to try to anticipate market movements in order to maximize profits and optimize performance. This is, in fact, the textbook definition of market timing. Market timing means buying low and selling high, and we all know that this is the key to successful investing.

So, therefore, market timing is logical. It is also deceptively simple - buy properties when prices are low, and sell them when prices are high. Unfortunately, however, in many ways the term "economic cycle" is misleading. "Cycle" seems to imply that there is some regularity in the timing and duration of upswings and downswings of economic activity. This could not be farther from the truth, especially in Real Estate. Booms and recessions occur at irregular intervals and last for varying lengths of time. For example, economic activity hit low points in 1975, 1980, and 1982. The 1982 trough was then followed by eight years of uninterrupted expansion. For describing the swings in economic activity, therefore, most modern economists prefer the term "economic fluctuations".

Just as there is no regularity in the timing of economic fluctuations, there is no reason why fluctuations have to occur at all. Thus, predicting market timing in Real Estate is similar to planning a vacation trip to Hawaii, in January. All the brochures say the sun shines all the time but somehow, when one lands in Honolulu, he is greeted by a hurricane. Despite the fact that successful market timing may be even more difficult to predict than the weather, everyone wants to try, to some degree. Buy houses when they increase in value, and sell them when they begin to decline. Keep your cash holdings as a safe haven when you are not sure.

Regrettably, there is no guaranteed way to anticipate market movements, so attempts to clock market timing fail to deliver optimum results. And this is true of the small investor as it is for, well ... the Chairman of the Federal Reserve System. Had market participants listened to Alan Greenspan, the Maestro, when he first started talking about the dreaded real estate market bubble all the way back in December 2001, those same investors would have missed out on an appreciation of real property values that averaged 15 percent per year from 2002 through 2005 inclusive.

As much as fluctuations are difficult to predict and that, as a direct and proximate result, the market is next to impossible to be timed, fluctuations do occur, however, because there are disturbances in the economy of one sort or another. The quintessential cause of recessions and booms in real estate is monetary policy. The central banks determine the size and growth rate of the money stock and, thus, the level of interest rates. By raising or lowering interest rates, the central banks are then able to generate recessions or booms. This is the reason why keeping a close eye on interest rates is so crucial in Real Estate.

So therefore, because of the fact that fluctuations do happen, with perfect 20/20 hindsight I can tell everybody precisely when a market turnaround has occurred. Furthermore, if I look back far enough I may even see patterns to the movements of the market, which repeat themselves sufficiently often so as to convince me that they will occur again, given the same conditions, at some ‘predictable' later date. This is, in fact, the principle upon which computer programs at the Federal Reserve System work: they analyze market patterns and try to anticipate major trends to come. Computer modelling, as it is called, is employed nowadays in practically every industry. But notwithstanding all technological advances, no one has ever been able to anticipate market or economic swings with an accurate and acceptable level of consistency.

So the academic debate continues. Those who do not believe in market timing challenge not only the ability to anticipate market movements, but also the rationale behind market timing. Conversely, advocates of market timing are quick to point out that one can obviously maximize returns in a rising market and minimize losses when the market begins to decline. And in so doing, they pore over their charts and computer printouts looking for signals that the time is right to buy or sell, based upon a combination of factors that have preceded a change of market momentum in the past.

The Efficient Market Theory suggests that prices often exhibit random walk behavior, and thus cannot be predicted with consistency. In Finance, the Efficient Market Hypothesis (EMH) asserts that financial markets are "efficient", or that prices on traded assets, e.g. stocks, bonds, or real property, already reflect all known information and therefore are unbiased in the sense that they reflect the collective beliefs of all investors about future prospects. EMH, furthermore, implies that it is not possible to consistently outperform the market - appropriately adjusted for risk - by using any information that the market already knows, except through luck or - as in the case of stock markets - obtaining and trading on inside information.

And bear in mind that market timers have to be right in their predictions not once, but at least twice in a row. They also have to exit the market with consistency just before the downwards spiral begins.They have to be adept at identifying peaks and valleys as they are occurring, not after the fact. Sometimes what looks like a downturn is just a temporary resting place - as it seems more and more to be the case in Real Estate today. Also, there are those investors who simply take the contrarian approach and start buying when everybody else is selling. They then take their profits when others are busy buying.

The untold secret of real estate investing is always to buy and never to sell. That is the guaranteed path to wealth. As this, however, is not always possible, the second best alternative is to act when one's own circumstances warrant, without paying much attention to the cycles that may or may not take place.

Luigi Frascati


Luigi Frascati is a Real Estate Agent based in Vancouver, British Columbia. He holds a Bachelor Degree in Economics and maintains a weblog entitled the Real Estate Chronicle at http://wwwrealestatechronicle.blogspot.com where you can find the full collection of his articles on Real Estate Economics and Finance. Luigi is associated with the Sutton Group, the largest real estate organization in Canada, and is based with Sutton-Centre Realty in Burnaby, BC.

Things Your Mother Never Told You: Closing Costs

Buying or selling a home can be one of the most life changing decisions a consumer makes. Being educated about the real estate process and investigating things you don’t understand is essential. Working with trustworthy and communicative real estate professionals is important. A lot of money is on the line when purchasing or selling a home, so be sure to ask questions when you need to about charges, fees or other issues.

You Gotta Have Faith!

Three days after an initial application has been submitted the lender must provide a Good Faith Estimate of settlement costs (GFE). The GFE is a list of closing charges and the HUD settlement statement you receive at closing is the confirmation of these charges. Carefully review the GFE costs and question anything you do not understand. When you receive the HUD statement the charges and fees should be familiar to you and reflect the GFE. There shouldn’t be any closing cost surprises. If the GFE and HUD costs do not match these issues should be addressed immediately. Discuss the cost discrepancies with your REALTOR and a lender representative. Any costs not disclosed on the GFE can be argued against and removed from the HUD.

Closing Costs 101

The first page of a HUD shows the buyer what matters most, the exact amount due at closing. Charges associated with a loan are broken down into sections. Lender costs include fees for origination, discounts, appraisal, credit reports, underwriting and processing. Closing and title costs cover charges from the third party closing agent and for the title search, insurance and recording. Taxes will be listed and fees associated with the deed. The buyer may also create an escrow account holding prepaid funds so taxes and insurance payments are made on time by the lender each month. The REALTOR commission will also be listed, along with survey fees, if necessary.

Financial Responsibilities of the Seller

At closing, the seller also has financial responsibilities. The seller pays sales taxes and lawyer, titling and commission fees. If necessary the seller is held accountable for outstanding Home Owners Association fees, termite and moisture inspection charges and well water and septic testing. Repairs that need to be done to the property will be taken out of the seller’s proceeds. Liens owed by the seller must also be paid, including tax liens. The seller must insure the home until the deed to the property is recorded a few days after closing. The buyer must have insurance activated on the closing date.

Invest and Save Money

Most homebuyers know that a down payment helps save money because it lowers the loan amount and mortgage insurance. This reduces the monthly payments. It also qualifies you for mortgage programs with better rates. Another savings tip is to pay your closing costs up front with the down payment. Avoid rolling the closing costs into the loan itself or the loan and interest increase. Without funds to cover the down payment and closing costs you will want to refinance later. Another important investment homebuyers should make is to work with a mortgage broker. A mortgage broker will shop for the best loan and interest rate. The knowledge a mortgage broker has can equal savings of up to $50,000 in interest charges. If you have credit issues or just want the inside scoop a mortgage broker is your best choice.

Completing the Transaction

The closing is an exciting day for both the buyer and the seller. The buyer should bring the GFE for reference during the meeting and request to review the HUD 24 hours in advance. This means you are prepared and comfortable with the completion of the real estate purchase. A third party closing agent and the REALTOR will be present. The loan officer or mortgage broker can also be present to answer any questions regarding the loan. Some companies, like Breakwater Mortgage in Virginia, require their brokers to attend. Companies like this can be better to work with since they are willing to be more involved. Now that all questions have been answered and the sale has been completed you can look forward to your new home and focus on the future!

About The AuthorElaine VonCannon is a REALTOR with RE/Max Capital in Williamsburg, Virginia, and she manages investment property. Elaine is also an Accredited Buyer's Representative as well as a Senior Real Estate Specialist. She has helped numerous clients invest in and make money on property in Southeastern Virginia. She can be reached at www.voncannonrealestate.com.

New Mobile Homes

It can be rightfully said that the chasm between mobile homes and traditional bricks and mortar homes is narrowing day by day. New mobile homes can be as trendy as they come, complete with all the amenities – both necessary and luxurious. In contemporary mobile homes, you can even attach a sauna, a bath or a Jacuzzi without much of a problem.

The days of derision towards mobile homes and their owners are coming to an end. There are about 10 million Americans today who are living in mobile homes, individually and in parks. There are ‘snowbirds,’ who have permanent residences in northern areas and move to warm southern climes in winter; or they may be people who are busy accruing money for a more stable home in future. People of almost all groups are now accepting mobile homes.

Even the designing of mobile homes has undergone a sea change. Gone are the days when mobile homes spelt shoddy, uninteresting designs and sharp walls. Today there are a wide array of finishes such as tiles, veneers, wallpapers, distempers and even bricks, as in traditional homes. Mobile homes today can be affixed to permanent foundations, so that there would be no difference, seemingly, between a mobile home and any other home.

Not just the structure and design, but also the nomenclature of mobile homes has undergone a change. Mobile homes are now called manufactured homes. Most of their parts are constructed in factories and then shipped to the sites of location. Here they are bolted and fastened together. Modern technology has enabled manufactured homes to be better affixed, thus eliminating the possibilities of leaks and seepages through their joints.

In the current scenario, mobile homes are economical and quick solutions for people yearning for a home. With the surfeit of bank financing available on mobile homes, more and more people can afford them.


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Don't Just GET THE DEED - The Infamous "Kitchen Table Closing"

Q: Hi Lou, I have a property under contract that I want to resell/flip as-is to a rehabber/renovator, but I may have to purchase it quickly and simply record the Quit Claim Deed, without using a closing attorney or waiting for a title exam. I need your advice.

The seller just called me and left a msg on my voice mail stating she did not want to sell to me because she received a better offer. Now I do have it under contract, with a signed purchase and sales agreement from her, and I had her sign a Quit Claim deed, too. I did that because she was fighting with her sister over ownership of this property, which was given to her by her mom who passed away 2 years ago. The deed is in her name alone, not the sister's, moms or anyone else. I did see the deed and made a copy of it.

So, I thought I should get the Quitclaim deed, just in case I needed to record the deed because of the family issues, and she agreed as well. She said she just wanted to get rid of this property. I also filed at the court house an Affidavit for the property showing I had it under contract, as you all recommended. I'm in the process of getting a title check done by title company.

Now what do you recommend I do? Should I go back to the court house and record the Quitclaim deed or wait until the title search is done and record the deed, or walk away, or what? If I chose to wait and schedule an attorney to do the closing, would they except the title search done by the title company?

Thank you, G.

A: Hi G., what you're describing is a little risky, yet it's done pretty often. It's a VERY good idea to get title exam run first, before doing a "kitchen table closing" and getting a Quitclaim Deed (QCD) from Seller, if you're not using/hiring a closing attorney to do a formal closing....

Normally we wouldn't recommend you do your own closing, but since you're rushing your purchase so you can "preserve" your deal before the other Buyer moves in and buys it, and/or before the sister does anything rash…. just be sure that the transaction has been up front, and that you truly intend to move forward as you agreed. I think that I would go ahead and file/record the QCD. I don't see that you have anything to lose, and a lot to gain.

I would let the seller know that she can not sell to someone else because she already has a binding agreement to sell to you, and you already "technically" own the house (since you recorded the QCD), and that your plan is to review the deal like you had already agreed with her, and if you decide not to do the regular closing as described in your Purchase & Sale Agreement, then you will release the house (ie YOU'D have to sign and record another QCD, canceling the prior QCD from her to you) for her to sell to whomever she likes.

It was great that you already recorded your "Affadavit of Contract", putting yourself into the chain of title, showing that you have a contract to buy the house. Now if all of this "blows up" and you're not able to, or choose not to record the QCD for some reason, the Affadavit you recorded will protect you, and allow you to still purchase the house in the future (if the Seller tries to sell to someone else or tries to refinance the house).

By filing the QCD you become the official owner of the property. No one can take the deal away from you. Since you're buying it "subject-to" any loans, you will need to start making the payments on any loans (call the lenders to get a "statement of account" to make sure there are no surprise back payments or penalties you're "inheriting"). I'm assuming you gave her no/low equity/cash at this point, so you don't have any funds invested, or at risk with the seller. Now you've got time to evaluate all the financials and make an informed decision. If in the end, you do not want it, you can always Quit Claim the property back to the current owner, as you told her earlier.

**Note to all my fellow investors : you don't want to even play this "kitchen table closing" game, unless you have a strong indication that this is a good deal and you're 90% sure you're going to go all the way with this deal. Taking ownership via a quick recording of a QCD, and then bouncing ownership back to the original seller with another QCD later when you've "had a chance" to do your due diligence – is not a cool game to play. We're only walking through it in this example, because the investor is trying to rush to protect his good deal from being "sold again" fraudulently, by the seller to another buyer.

But you also don't want to suddenly own a property where you have some potentially unknown, overlooked liens that may be attached to the house, that you'd have to pay off before you re-sold or refinanced the house, and no ability to insure yourself via title insurance,. So consider these 3 risks you've got with a "get the deed, kitchen table closing" --

1) You probably won't have the Seller sign the standard "Owners affadavit" and "Gap affadavit" that attorneys use, where the seller warrants that no other "bad stuff, liens, judgements, etc." exist against him or the property, other than what the title examiner has found.. AND even though Seller signs those Affadavits, we've had some sign knowing they're lying and committing fraud. Title insurance would cover you, if Seller lied, but you can't get that (see #3).

2) title examiners are human and make mistakes and overlook title stuff (liens, judgements) b/c they get too busy, too tired, etc.

3) You CAN'T get owner's title insurance to cover all of the above issues if you close the deal yourself at a "kitchen table", because an attorney at a closing can sell that policy to you and you DO need to buy one.

We have had several instances where either the seller has lied about other not-yet-filed judgements and loans (see #1), or title examiner has missed a significant lien during the title exam (see #2) and we've been covered by our title insurance policies.

If you have those types of title problems and NO title ins. policy, you've got to pay all the legal fees and/or pay off the liens, etc. before you can re-sell the property. Soooo, unless you're a serious gambler :-) close with an attorney so you can get the Seller to sign the 2 Affadavits and get yourself an Owner's Title Insurance policy.

And yes, about 50% of the time attorneys will buy a previously done (must be within last 30 days usually) title exam and use it for the closing--just ask your attorney in advance.

Now, if the new Buyer stills wants the property, they can buy it directly from you. The current homeowner, is of course, going to be upset and is probably going to say you did something illegal.

Q: Can the title company issue a Limited Warranty Deed, if not who provides a limited Warranty Deed that I have seen other wholesaler issue to the rehabbers?

A: The closing attorney can fill out a Limited Warranty Deed on your behalf as the seller (when you resell the property), saying basically that you warrant that ownership of the property was "valid" during the *limited* time period that you owned the house.

Best of success & abundance,

Lou Castillo

About The AuthorLou Castillo FREE! Real Estate Investing Secrets To Earning $100,000 Your 1st Year! -- 11 Overlooked Real Estate Statregies That Will Turn Your Investing Business upside Down And On The Fast Track TO Success...Guranteed! Plus A Bonus Track With A Secret So Successful It Can Double Your Investing Income Overnight! http://www.InvestorSuccessTactics.com

Can't Sell Your House?

When you put your house on the market you want it sold as soon as possible so that you can get on with your plans. If you are unable to sell your house it can be a financial drain, postpone plans and come to feel like a weight on your shoulders.

You need to ask yourself what is going on here? What is the problem? You may need to attack the problem from different angles. Have you had any viewings? If yes, ask the agent for feedback from the clients. Try to get as much information as possible. If you have not had many viewings then why not? Has the agent advertised the property sufficiently, where has it been advertised, how often? Assuming it has been advertised sufficiently what is putting buyers off? The photos makes a big difference - first impressions count. Ideally you want to take a picture of the property on a sunny day with no parked cars or other eyesores. If the original photo looks unappealing take your own and send them to the agent. Perhaps you can get a better angle from your neighbour’s garden which the agent couldn't access. After the photos are at their best does the property look as good as it can from the outside: Often before booking a viewing buyers will pass by a property they are interested in to get a feel of it. It needs to look good all the time, not just look good for photos and viewings. Compare the price of your house with similar properties in your area. Is your house priced too high? Is the price putting people off?

If you have had viewings but no offers then there’s something putting people off on the inside. Take a fresh look at how you are presenting your property. What is the first impression when you enter? Is the hallway inviting or welcoming or do too many coats on the coat rail and too many bags, shoes and general clutter grab the viewer’s attention? It needs to look tidy, well cared for and loved. After all if you show you don’t love your home why should anyone else? If you have pets does it smell of pets? The atmosphere and smell needs to be fresh and again, the key, it needs to be inviting. After all, you are inviting someone to spend thousands of pounds on this property. You want them to want to stay, not be out of the house as soon as possible. If you have a lot of general “stuff” which you want to keep consider storing it in a friend’s garage or in a paid-for storehouse. Of course you need to live in the house so don’t want to declutter completely but if you are serious about selling your house you need to give it your best shot, or potentially lose thousands of pounds just to get rid of it.

Go through each room and look at it from every entrance angle. What do you notice – what’s good, what’s bad. Put in the effort to make it look it’s best. Then, ask your friends, family, and agent for their opinion. What do they like and what don’t they like? Then act on their feedback and ask them again. When it’s in tip-top shape consider relaunching your property with your agent and make sure that all their staff know what a great house it is.

Be careful – if you make your house so beautiful and appealing you might just want to stay there!

To find your new home go to http://www.WheresMyProperty.com, the UK Property Search Engine listing around 900,000 properties from 1000s of estate agents.

Susy Copus is a property commentator writing about all aspects of home moving, properties for sale, estate agent directories and house prices for the UK Property Search Engine, http://www.WheresMyProperty.com. Susy also writes for http://www.renovatealerts.com.

Real Estate Market Timing

The United States, Canada and all other modern industrial economies experience significant swings in economic activity. In some years most industries are booming and unemployment is low; in other years most industries are operating well below capacity and unemployment is high. Periods of economic expansion are typically called booms; periods of economic decline are called recessions or depressions. The combination of booms and recessions, the ebb and flow of economic activity, is called the economic cycle.

Of all the industries contained in the economic basket of goods and services, Real Estate is the one that is particularly susceptible to the ups and downs of economic cycles simply because it is a big ticket industry. It is therefore important for all those involved into real estate investing, to try to anticipate market movements in order to maximize profits and optimize performance. This is, in fact, the textbook definition of market timing. Market timing means buying low and selling high, and we all know that this is the key to successful investing.

So, therefore, market timing is logical. It is also deceptively simple - buy properties when prices are low, and sell them when prices are high. Unfortunately, however, in many ways the term "economic cycle" is misleading. "Cycle" seems to imply that there is some regularity in the timing and duration of upswings and downswings of economic activity. This could not be farther from the truth, especially in Real Estate. Booms and recessions occur at irregular intervals and last for varying lengths of time. For example, economic activity hit low points in 1975, 1980, and 1982. The 1982 trough was then followed by eight years of uninterrupted expansion. For describing the swings in economic activity, therefore, most modern economists prefer the term "economic fluctuations".

Just as there is no regularity in the timing of economic fluctuations, there is no reason why fluctuations have to occur at all. Thus, predicting market timing in Real Estate is similar to planning a vacation trip to Hawaii, in January. All the brochures say the sun shines all the time but somehow, when one lands in Honolulu, he is greeted by a hurricane. Despite the fact that successful market timing may be even more difficult to predict than the weather, everyone wants to try, to some degree. Buy houses when they increase in value, and sell them when they begin to decline. Keep your cash holdings as a safe haven when you are not sure.

Regrettably, there is no guaranteed way to anticipate market movements, so attempts to clock market timing fail to deliver optimum results. And this is true of the small investor as it is for, well ... the Chairman of the Federal Reserve System. Had market participants listened to Alan Greenspan, the Maestro, when he first started talking about the dreaded real estate market bubble all the way back in December 2001, those same investors would have missed out on an appreciation of real property values that averaged 15 percent per year from 2002 through 2005 inclusive.

As much as fluctuations are difficult to predict and that, as a direct and proximate result, the market is next to impossible to be timed, fluctuations do occur, however, because there are disturbances in the economy of one sort or another. The quintessential cause of recessio