Sunday, December 28, 2008
1. Get Pre-Approved. Even if you don't think you can afford it, or are concerned about a down payment, or your credit - the first thing you should do is talk to a skilled mortgage lender. It's their job to help you fix your credit, tell you how much you can afford, and help make it all happen. They will advise you if a down payment is needed (it may not! Many people arrange to buy a home with nothing down, $500 down, or 5% down), how much your monthly payment will translate to (i.e. tell them you want to spend $X a month, and they'll translate that into a purchase price of $Y). If you need to repair your credit, they'll be able to refer someone or give you some tips and help on how to fix it up.
2. Once you meet with a mortgage lender, you'll get a letter of pre-approval. It looks informal, but what matters is the listing agent (representing the sellers of a house you later want to buy) calling them and doing some research on whether you can in fact close and purchase the property. You then take this letter to a Realtor (R) / Real Estate Agent (note: Realtor is a real estate agent that adheres to a code of ethics; for practical purposes they're essentially the same, though a Realtor(R) has more accountability and is therefore more highly recommended). This is step 2 of buying real estate.
3. The fun part: Shopping! Step 3 of buying real estate usually involves you looking at a bunch of properties on the internet, driving around some neighborhoods, then when you see some homes you think you might like, just email or call your agent and ask to go see it. Don't get too hung up on this, and at first, go see some houses even if you know it's not quite right - just to get some ideas of what you like and don't like. On paper, or on the computer, a house is just a bunch of numbers - 3 bedrooms, 1873 square feet, etc. - but in person, you'll find that the "bones" of a house, they layout, and the materials vary widely. On each home, communicate what you like and don't like to your agent. Ideally, you should do this on each home, and by listing your favorite points, and factors you didn't like, you'll help your agent slowly hone in on what you really want. This is step 3 of buying real estate, and it usually turns out to be more work than you expect. By the way, it's OK if a house or condo or lot seems ok on paper, but just doesn't feel right. Trust your gut...buying real estate is emotional and you want to feel at home. Usually, if something doesn't feel right, it's because it reminds you of some other home, and many times, people ultimately buy a home that feels like a home they lived in as a child and therefore feel at home in.
4. The exciting part of buying real estate comes when you find a home you want. Just tell your agent this one feels right, and you'd like to put in an offer. Let your agent do the negotiating for you, it's their job, and they get paid by the seller so the service is essentially free. You can call the mortgage lender back now and tell them you're finally buying real estate, and give them the purchase price you want to offer, along with any other expenses such as taxes and insurance. They can give you a more exact payment on the house, which you'll then give your agent a range to offer, starting low with a walk-away price. The agent helping you in buying real estate will know the conventions and strategy best for your local market and sniff out competing offers, etc. This offer will then be accepted or declined or counter-offered.
5. The nerve-wracking part of buying real estate is closing the actual transaction. Once your offer is accepted, you then start a 2-way "dance" called "escrow" or "under contract" or "closing". This means the further you get into the deal, the more committed you are financially, and the more committed the seller is because they're packing their life into boxes. Expect a bit of buyers remorse - it always happens about a week in, and just remind yourself why you like the house and imagine your life in your new home. Also, expect that the closing date is just a guideline, and it could be earlier by a few days, or later by a few days. Most commonly, people close in about 30-45 days. Depending on your state, you'll sign a new loan on about day 25 or day 29, and then move in about day 30 (or 45, depending on your contract period). You'll sign a binding loan and get keys, the seller gets cash (and their old loan paid off, if they have one), and the bank gets an enforceable contract that you make house payments toward. Once it "records" the deal is 100% done, you own the home, and about 6 weeks later you'll make your first house payment to the bank.
Buying real estate is fun, and can make a big impact in how you live your life. For most Americans, buying real estate is one of the most important financial investments they ever make, and regardless of market it continues to prove a good investment simply due to inflation if not market appreciation. Just as your grandparents paid 15 cents for coffee and bought their first house for what seems like little money, so will your grandchildren (or you in your old age!) look back on buying real estate that first time as "cheap". Back when people were buying real estate for $5,000 for a home, the average income was only $1200 a year for some... our relationship with money changes over time. Once you cross the buying real estate bridge, you'll not only build wealth - but you'll build a home filled with memories as well.
Wednesday, December 17, 2008
Buying Real Estate With Roth IRA - The Right Choice For Me
0 comments Posted by freakymom at 3:02 AMI took my concerns to a financial advisor. He suggested that I change my retirement plan from my company's 401 K into a self-directed IRA. He said that with the Roth IRA I can choose where my money goes instead of having the company make the choice for me. Not only could I make the choice of where I wanted my money to go, but after I placed it into this kind of account; I would never have to pay taxes on the money again. Can you imagine what that means? I am sure that by the time I retire, we will have seen a huge jump in the income tax. But I won't have to worry about it, because the income from my retirement will not be taxable.
My counselor advised me that buying real estate with Roth IRA is the best choice in today's wavering financial market. Property represents a tangible item that generally sees a rise in its value over time. Today, prices are low. The time is ripe to purchase property. Soon, the government's plan to shore up the housing market will kick into effect and property prices will regain their momentum. The return on my investments is sure to go over the 8% return that I am seeing today. Will a roll over IRA buying real estate really be an answer to my current financial woes?
I have decided to take my financial counselor's advice and have chosen to take my 401k and use the money to invest in a roll over IRA buying real estate. I look forward to sitting back and watching my investments grow. Buying real estate with Roth IRA seems like the right way to go for me.
Thursday, December 4, 2008
So what is a system? In this instance a system is a set of tasks that fit together to complete a given objective. You can define a system for almost anything. For example you could write a system for making breakfast:
- Get the newspaper
- Cook the eggs & bacon
- Make the coffee
- Set the table
In this example you could assign the four tasks to four separate people. Each task could be defined in more detail so that a stranger could perform the task and the end result would still be satisfactory. However, if even one of the tasks is missed or poorly done then the end result will be disappointing.
In real estate the tasks are usually very simple but there are usually a lot of them. Missing some steps due to the pressure of work or just poor discipline can have a drastic effect on the final income. Also, real estate salespeople are generally not renowned for their discipline. They prefer to be more intuitive, outgoing and people focussed. Therefore it is common to have checklists, computer systems or office managers to ensure that all the steps have been completed.
Example : Buyer enquiry system
Enquiries from potential buyers can come from a variety of sources including people simply walking into the office and asking for a specific property. The agent needs to work with each potential buyer and look after their needs. He or she needs to make the buyer feel special and that there is no need to go elsewhere for real estate services. This needs to be done in a proactive but reassuring way. That last thing that should be done is scare the person away by over servicing or being too pushy.
Each agent will develop their own style and will eventually develop a pattern that works for them. A typical system for managing the buyer enquiry might look like this:
- Complete a buyer enquiry form. Usually a paper form filled out by the agent whilst talking to the potential buyer.
- Conduct a search of possible properties for the buyer.
- Take the buyer to inspect the possible properties and sell one of them if possible.
- Gauge the buyer reaction to the properties and build a profile for the kind of property that will be suitable.
- Enter the buyer details in the client database and schedule a trail of follow up actions based on the assessment of the buyer and his or her likelihood of purchasing in the next few weeks.
- Same day - send a letter thanking the buyer and providing details of the properties seen and confirming the preferred property features for future searches.
- Every week. Call the buyer and discuss the details of other properties coming onto the market. Try to arrange some more inspections.
- Every month. Send a copy of the office newsletter.
- Every three months. Send a copy of the suburb profile with updated sales and new listings during the period as evidence of sales activity.
- Every three months. Visit the buyer and discuss how he values your service and whether he wishes to continue. You may then decide to change his details and the nature of your follow up campaign based on his comments.
When done well, these follow up systems build a trusted relationship between the clients and the agent. That in turn leads to a strong referral business.
Many real estate agents manage an area, or farm, consisting of over 500 people as potential sellers. Sometimes up to 2,000 people. The number of long term potential buyers, depending on the market, could be in the hundreds at any one time. Therefore it is apparent that a successful agent soon builds up a large list of daily actions and must be extremely efficient to stay on top. Writing the details in the diary is simply not going to provide the follow up necessary.
Please refer to Selecting and Using a Real Estate Database for more information.
Systems, tools and effective teams are the way forward in real estate sales today.
Saturday, November 15, 2008
No Money Down Real Estate Investing - What You Must Know So You Can Profit Quickly and Securely
0 comments Posted by freakymom at 3:00 AMBut a lot of people get tricked into thinking they have to deposit at least something whenever they buy real estate, even using a simple option purchase agreement.
That is a massive misconception. Huge! So in the next couple of minutes let me show you how ordinary people like you are confidently doing safe, no money down real estate investing even in today's economic environment. Some of them are successfully dong this on their own, although this is not easy. Many others are utilizing only their good credit and provable income yet getting real estate investments that are secure, high yielding and yet are practically turn-key.
Have you heard about the highly negotiable, so-called 'sandwich' lease option?
With it, you take over the house payments and equity of someone who can't keep those payments up, but not the house ownership, by linking a revocable option to purchase agreement with a lease agreement written in your favor. The option ties up the property before you buy it, but makes it possible for you to revoke it. Almost certainly you will have to make a promise to pay, or put money or a security down at the time you sign the agreement. But with these instruments in place you can back out when you want to with no recourse except losing anything you might have put down.
Now, most people seem to think they have to write a check or put down some cash to make these options legally valid. This is not correct. Because you and the seller can make a revocable option turn on a consideration of any sort that you both agree to. It can be money. But it could equally be a promise to pay, say, part of future rentals. Or something like a car or jewelry. Anything you both write into the option.
That promise to pay is attractive ... it basically means you put nothing down right now and will only make an agreed payment once the option is exercised. People are using these promise to pay clauses right now. This is pure no money down real estate investing with the security of commercial law and requiring zero cash.
Because it is so good, it is difficult to get this written into your option to purchase. Also, sellers generally must get rid of the property but with this option you are not taking over the ownership of the home. However, when you can agree on this option you scoop up all the benefits of no money down real estate investing.
There are several things to consider before trying to strike this agreement, however. And many first-time real estate investors gloss over them.
One, you must find out why the seller has not yet sold his house? Is there something wrong with the location or the physical condition of the house itself? Are city building or zoning regulations unhelpful? If there are problems with the house, will these make it difficult for you to keep up the payments you take over?
Next, do the numbers stack up? Most people thinking for the first time about no money down real estate investing concentrate on the fact that there is no money down. Don't overlook another fact --- you might lose money if the rental market is paying less than your payments. You might lose a ton of money! Here's an example of this. Say you take over mortgage payments of $1200 a month and rental market for the property only pays $1000 a month. You will be losing from Day One.
I don't mean to highlight the negatives that are present in this form of no money down real estate investing. So let me show you anther way to get into this business. This can even be turn-key.
If you have good credit (and it is easier to have good credit than you may realize) and make over $70,000 a year, it's possible to find a program where you can purchase real estate with 100 percent financing. Again this is pure no money down real estate investing. And to make it stress-free, you just need to find a program that will take care of the variables I've mentioned.
Ideally, that program would sell you a good looking, well designed property that could definitely be rented out. The home would be refurbished and meet (or even exceed) city building codes and standards. It might even be rented to a tenant backed by a government initiative such as Section Eight. The property would come with sufficient equity to get the bank loan and make certain your future profits. And it would give you a cash flow after moorage, insurance, tax and maintenance expenses.
Sound like a turn-key dream? There are no money down real estate investing programs that deliver exactly this.
So my advice is that you keep learning about no money down real estate investing, but that you raise your expectations and only consider joining turn-key programs that genuinely require no money down at the start, take care of many of the variables, and give you a reasonable return for relatively low outgoing costs over the life of your investment.
Tuesday, October 14, 2008
Buying Real Estate - How to Get The Best Deal in a Buyers Market
1 comments Posted by freakymom at 3:00 AMFirst and foremost...decide how you will pay for it! Do you have cash...or you will be looking for financing? If financing is in your plans...be sure to arrange for it ahead of time. Be sure to obtain a copy of your credit report and correct any mistakes...NOW! If you plan to live in the home as your primary residence, it will require a smaller down payment. But, if this is an investment...you should plan on at least 20% down. AND always have a pre-approval letter from your lender in hand when you make your offer! It will greatly help your agent negotiate the best possible price for you.
Then, when it's time to start house-hunting...look for a good Exclusive Buyer's Agent who will help you find the right property...and buy it at the best possible price. A few tips to consider when buying real estate:
- Look for a good neighborhood that will most likely increase in value. Be sure to drive through communities to see which ones would best fit your needs. It stands to reason that you wouldn't want to buy on the upper end of any neighborhood...so look for a smaller house in a nicer neighborhood.
- Have a game plan! Study the market -- and have your facts before making your offer to purchase. What is the median home price? Average days on the market? Comparables? -- Your agent can provide these for you. How many homes are owner-occupied? What about vacant properties? Foreclosures? Environmental issues such as high tension wires, noise, etc.
- Find out all you can about anything that could affect the home values in any given area. New road construction? Schools? Shopping? Hospitals?
- Before spending money on a home inspection, look the house over for yourself! Does the roof appear to be in good condition? What about the floors? Do they sag or look worn? Do the appliances need to be replaced? Do you notice any water and/or damage in the basement or crawl space? Are there any noticeable cracks in the brick or foundation wall? What is the age and condition of the HVAC units? Do the bathrooms need updating? What about paint?
- Remember that the seller is obligated by law to disclose any known problems...so be sure to take a close look at any and all disclosures relating to the property.
It's always wise to do your homework and investigate before buying real estate!
When preparing your offer...be sure to listen to your Exclusive Buyer's Agent. He/she will be able to give you good solid advice based on years of experience. Keep in mind:
- Make your best offer and present it with your pre-approval letter from the lender.
- Keeping the contingencies to a minimum can help you obtain a lower purchase price.
- Offering a decent earnest money deposit will help assure the seller that you are a serious buyer.
- If the home is in danger of foreclosure -- your best bet is to offer a quick closing. In this situation, the seller is interested in one thing...getting out of the house quickly...with as little damage to his credit as possible.
- It if is already a foreclosure -- make your best offer up front because you may be dealing with a multiple offer situation.
Please contact me with any questions you have about buying real estate in today's market.
Pam Rumley is a veteran real estate broker in Nashville Tennessee Real Estate. She is a true Exclusive Buyer's Agent, which means that her office never takes listings. This fact assures that there is never a conflict of interest regarding your real estate transaction. You can be assured of receiving 100% of her attention and loyalty - 100% of the time!
For more information, visit her comprehensive website http://www.NashvilleRealEstateAuthority.com.
Be sure to check out her "Real Estate University" section, where you will find more informative articles on a variety of topics concerning homebuying. WOW! - You can even choose your own closing gift from a large selection of high-end home decor items.
Wednesday, September 17, 2008
Some of the most basic real estate terms to learn when initiating your first transaction are:
Realtor or Real Estate Agent
Realtors are those individuals who have registered with the National Association of Realtors. Both real estate agents and realtors work to help buyers to locate properties and for sellers to sell their properties.
APR
APR stands for Annual Percentage Rate and this is typically listed on your offer for a mortgage loan. Your APR is typically higher than your interest rate listed on your mortgage.
Seller Note
A seller note is a financing strategy in which the property owner self financing the sale of their property to a buyer. The terms of the self financed mortgage such as the interest rate, duration of the loan and the loan length are all determined between the buyer and the seller.
Assumable Mortgage
This type of mortgage is one in which the loan and payments can simply be transferred to another person, typically a buyer.
Appraisal
When purchasing a property, it is common for the lender to require an appraisal prior to agreeing to fund the loan. An appraisal uses features about the property as well as current comparable properties in the area to determine what the present market value of the home is. Appraisals are also often required when a home owner inquires into refinancing the mortgage or for a home equity loan.
Inspection
A home inspection is common in both residential and commercial properties and is sometimes required by the lender. A home inspection involves carefully examining all portions of the property, including the interior, the exterior and the land itself. Any issues will be reported to the buyer and the seller for remedy prior to closing. Some buyers will request that items be repaired prior to the closing, some will ask for financial renumeration in the amount estimated to repair the items found in the inspection and some buyers will cancel their offer if the inspection items are perceived to be too costly.
Closing Costs
Closing costs are one-time costs that the buyer and/or the seller will be responsible for when the closing takes place, transferring ownership of a property to another party. Closing costs are in addition to the down payment applied from the buyer and can include things such as property taxes prorated, mortgage interest prorated, insurance payments prorated, fees assessed by the title company, fees assessed by the real estate agents and other miscellaneous administration fees required to process the transaction. Closing costs range, but can typically be estimated from 2-4% of the purchase price of the property.
Earnest Money
Many sellers will require a good faith deposit called earnest money when a buyer makes an offer. These funds are held in an escrow account by the title company closing the transaction. And, it is typically applied towards the down payment.
Property Taxes
These are the taxes due annually for your property which are based upon the property value. They are typically due at the beginning of the year, although some municipalities require payments semi-annually. Some mortgage companies collect a portion of real estate taxes due each month to pay the annual real estate taxes on behalf of the property owner.
Tuesday, August 5, 2008
Once you have been tagged, you have to write a blog with 10 weird, random things, facts, habits, or goals about yourself. At the end, choose 10 people to be tagged, listing their names and why you chose them. Don't forget to leave them a comment ("You're it") and ask them to read your blog. You can't tag the person who tagged you.
Now, here's my list:
1. I am a work-at-home mom now, doing three roles everyday: freelancer, nanny, housekeeper
2. I always love to be busy, especially if it gives me more "moolah", lolz!
3. I have a sweet tooth...name it, and I'll surely bite them all! yummy!
4. My heart is for the unfortunate ones so I feel like helping whenever I have much for myself.
5. I am a detail-oriented person, so expect me to have my documents and stuffs organized, even important conversation saved in a file. (ebidenxa!)
6. I am friendly, but B-E-W-A-R-E! When I get hurt, I won't let it pass until I get even (An eye for an eye, a tooth for a tooth) Sorry...
7. I am a dreamer...I want to be a CPA, Interior Designer, Web Designer, Lawyer and NBI agent, but my ultimate dream is to become R-I-C-H!!!
8. I got pregnant at the age of 20 to a cute and smart 'lil boy. I love you my prince!
9. I am uber meticulous when it comes to the tiniest detail at home. I want everything to be organized, arranged in a way that satisfies my eyes, even curtains should flow into place, etc.
10. I may be merciful, but not to arrogant peeps! As long as I am RIGHT, I won't allow you to step on me, ever!
Tuesday, July 15, 2008
Saturday, June 28, 2008
It’s been almost a week that I have been searching for a reliable service to help me find luxury vacation spree. I certainly wish to finally experience Perfect Escapes. It’s just a good thing that I stumbled upon Perfect 10 Newsletter.
I found out that there’s a lot to offer from this service. And my excitement has become more intense when I get to see a list of the world’s best hotels and destinations that I can possibly go to. Now I made up my mind. I really have to go to any of these world’s best destinations as I hate the toxics in the city. I want something new, something fun.
And I’m pretty sure that perfectescapes.com will settle everything that I needed for a grand vacation. I heard a lot of people who are grateful enough to have chosen their service. So I am grabbing the chance and won’t waste time until I can get the best vacation that I’ve been wanting since. I might also consider going to Wynn Las Vegas, which I heard a great place to stay.
Monday, June 23, 2008
The National Association of REALTORS® (NAR) includes 1 million brokers and salespeople, individuals bound together with a strong Code of Ethics, extensive training opportunities and a wealth of community information. NAR members are routinely active in PTAs, local government committees and a variety of neighborhood organizations. Being actively involved in community affairs provides REALTORS® with a better understanding of the area in which they are selling.
Why?Buying and selling real estate is a complex matter. At first it might seem that by checking local picture books or online sites you could quickly find the right home at the right price.
But a basic rule in real estate is that all properties are unique. No two properties -- even two identical models on the same street -- are precisely and exactly alike. Homes differ and so do contract terms, financing options, inspection requirements and closing costs. Also, no two transactions are alike.
In this maze of forms, financing, inspections, marketing, pricing and negotiating, it makes sense to work with professionals who know the community and much more. Those professionals are the local REALTORS® who serve your area.
How do you choose?In every community you're likely to find a number of realty brokerages. Because there is heated competition, local REALTORS® must fight hard to succeed in your community.
The best place to find a local REALTOR® is from REALTOR.com's® extensive listing of community professionals and properties. Other sources include open houses, local advertising, Web sites, referrals from other REALTORS®, recommendations from neighbors and suggestions from lenders, attorneys, financial planners and CPAs. The experiences and recommendations of past clients can be invaluable.
In many cases buyers will interview several REALTORS® before selecting one professional with whom to work. These interviews represent a good opportunity to consider such issues as training, experience, representation and professional certifications.
What should you expect? (Working with a REALTOR®)Once you select a REALTOR® you will want to establish a proper business relationship. You likely know that some REALTORS® represent sellers while others represent buyers. Each REALTOR® will explain the options available, describe how he or she typically works with individuals and provide you with complete agency disclosures (the ins and outs of your relationship with the agent) as required in your state.
Once hired for the job, the REALTOR® will provide you with information detailing current market conditions, financing options and negotiating issues that might apply to a given situation. Remember: Because market conditions can change and the strategies that apply in one negotiation may be inappropriate in another, this information should not be set in stone. During your time in the marketplace REALTORS® will keep you updated and alert you to each step in the transaction process.
Thursday, June 19, 2008
One of the keys to making the homebuying process easier and more understandable is planning. In doing so, you'll be able to anticipate requests from lenders, lawyers and a host of other professionals. Furthermore, planning will help you discover valuable shortcuts in the homebuying process.
Do You Know What You Want?Whether you are a first-time homebuyer or entering the marketplace as a repeat buyer, you need to ask why you want to buy. Are you planning to move to a new community due to a lifestyle change or is buying an option and not a requirement? What would you like in terms of real estate that you do not now have? Do you have a purchasing timeframe?
Whatever your answers, the more you know about the real estate marketplace, the more likely you are to effectively define your goals. As an interesting exercise, it can be worthwhile to look at the questions above and to then discuss them in detail when meeting with local REALTORS®.
Do You Have The Money?Homes and financing are closely intertwined. (Financing is the difference between the purchase price and the downpayment, commonly referred to as debt or the mortgage.) The good news is that over the years new and innovative loan programs have evolved which require a 5 percent downpayment or less. In fact, a number of programs now allow purchasers to buy real estate with nothing down.
In addition to a down payment, purchasers also need cash for closing costs (the final costs associated with closing the loan). Several newly emerging loan programs not only allow the purchase of a home with no money down, but also underwrite closing costs.
Not everyone, however, elects to purchase with little or no money down. Less money down means higher monthly mortgage payments, so most homebuyers choose to buy with some cash up front.
As to closing costs, in markets where buyers have leverage, it may be possible to negotiate an offer for a home that requires the owner to pay some or all of your settlement expenses. Speak with local REALTORS® for details.
Is Your Financial House in Order?Those great loans with little or nothing down are not available to everyone: You need good credit. For at least one year prior to purchasing a home, you should assure that every credit card bill, rent check, car payment and other debt is paid in full and on time.
Sunday, June 15, 2008
Step 1:
Are you Ready?
Step 2:
Get a REALTOR®
Step 3:
Get Loan Preapproval
Step 4:
Look at Homes
Step 5:
Choose a Home
Step 6:
Get Funding
Step 7:
Make an Offer
Step 8:
Get Insurance
Step 9:
Closing
Step 10:
What's Next?
Wednesday, June 11, 2008
1. Property auctions are held around the country, but are advertised only about four weeks before. Look in local and national newspapers or in the trade papers Estates Gazette and Property Week. Chris Coleman-Smith, the head of auctions at Savills, recommends the Essential Information Group site, eigroup.co.uk, where the sales of all 300 auctioneers in the UK are listed. He says: “Sod's law says that if you get six catalogues, the property you would really like is in the seventh.”
Don't stay local
2. David Sandeman, of the Essential Information Group, says that the best bargains can often be found when properties are auctioned outside their local area. He says: “Half the properties sold in sales in London are outside the city. And if you have a small auction house in Wiltshire selling a property in Manchester, you may not have many people bidding who know the area.”
Get a professional view
3. The auction catalogue - which you can get, often for a small fee, direct from the auctioneer - contains all the information regarding the sale, such as guide prices, viewing times and any special conditions of sale. But make sure you appoint a solicitor who will apply for and check the document pack relating to your lot. This typically costs about £25 and includes the searches and the home information pack but no in-depth survey or valuation. Coleman-Smith says you can sometimes unearth important extra information by contacting the management company or speaking to another leaseholder.
See what you are getting
4. Visit the property at one of the viewing times listed in the catalogue - and take with you a surveyor and/or builder as necessary. More experienced buyers who feel they do not need a full survey sometimes pay a reduced fee of £100 or so to these professionals to “walk through” and advise on the property. According to Coleman-Smith: “You don't want to pay £500 for a full survey, just to be told there is a bit of woodworm under the stairs.” Viewings are typically scheduled twice a week and are open to everyone, which makes them an ideal chance to check out the rivals for the property you are interested in, according to Gary Murphy, the head of auctions at Allsop.
Keep an eye on the price
5. Do remember that a guide price (which to amateurs can appear very low) is, as Coleman-Smith says, “closer to a reserve price, and may have no relationship at all to the final sales price”. A guide price can change according to the interest displayed by buyers and any offers received in the run-up to the sale. It is not always advisable to make an offer before the sale as this may push up the reserve price, but be guided by the auctioneer. Coleman-Smith suggests expressing interest in writing and asking to be informed if a property is about to sell before the auction.
Find the cash
6. Have all your finance in place before you bid - if you are successful you will be expected to pay a 10 per cent deposit on the day, which you will forfeit if you can't find the remaining 90 per cent by completion 28 days later. However, more and more sales, particularly of repossessed homes, specify completion within 14 days, Sandeman says. Your lender must be aware of - and be able to meet - the strict auction deadlines by giving you an offer of mortgage before the sale. If you can't get this in time, don't bid.
Concentrate
7. Auctions last only about three minutes per lot. Once the hammer falls in your favour you will be required to sign the contract of sale in the back of the catalogue, and pay the deposit, so make sure you know your limits - and are bidding on the right lot. If you are a novice, consider attending a sale or two as a trial run before bidding.
Bid...
8. Auctions are not for the fainthearted. If you are worried about getting carried away, take your solicitor or a friend to bid on your behalf. You can also, if you think it is better for you, bid by telephone or online. But make sure you are fully informed: pay special attention to the auctioneer's announcements at the beginning of the auction as he or she will explain the procedure and disclose any lots sold or withdrawn prior to the sale. You must also read the addendum sheet on the day, which reveals any errors or omissions in the catalogue.
...or choose not to bid
9. David Sandeman says: “Do not get emotionally attached to a property. You are buying an asset, and if you miss this one, another will come along.” Some experts say that it is not advisable to start the bidding, as this can push up the price. If the auctioneer does not get the opening bid he calls for, he may accept a lower one. But Gary Murphy advises that sometimes a bold, early bid can be successful. He says: “Your competition will sense your strength and may be spooked.”
Follow up on unsold lots
10. Look into post-auction sales. Sandeman says: “Forty per cent of properties at auction do not sell. The sellers are then on the back foot: they have not managed to sell before the auction or during it, and you may be able to negotiate a bargain. More and more properties are coming to sale, and more and more are not being sold.”
You're not alone: experts are cringing too. Some are waiting for a pop, others for more ballooning growth.
All the talk has left many wannabe buyers on the sidelines. Hey, you can still buy that home in today's market, but read today's five tips first to learn how to do it wisely.
1. Walk around town
Okay, so we talk about the housing market as if every home in the country was selling the same way. It's not. Real estate is a local thing -- and I mean really local.
Take this example: Home prices in Bradenton, Florida jumped 45.6 percent in one year, according to the National Association of Realtors. But 13 miles away, in Sarasota, home prices only rose 36 percent. And 46 miles north in the Tampa, Clearwater, St. Petersburg area, home prices only rose 15.7 percent.
The moral of the story is you'd be wise to walk around town, and investigate growth in each market. Stephen Israel, president of Buyer's Edge, a company that represents homebuyers, recommends you take a list of zip codes to the local real estate agent.
Ask them to look up the one-year and five-year change in home prices in those zip codes. Avoid any standout zip codes, like Bradenton from the example above. Places where there have been major market swings can come with falling or leaping prices, and bidding wars.
2. Think location, location, location
Let's get down to it -- real estate 101. The most important thing to look for is great location, says Israel. After that, you want to look for the best lot, and then finally, look at the home.
Goes against your instinct, doesn't it? Remember, you can fix a house. But you can't move your house into the city's best school district, push it away from a freeway, or turn your shabby neighborhood chic.
When looking at location, make sure you look at proximity to city centers, transportation, the best schools, culture, and work centers. But think it through, and take into account where you live. Living near a bus stop may be a major plus in Brooklyn, NY, but it may be a disturbance in Bloomfield Hills, Michigan.
When you're looking for the best lot, "Stay away from any major negatives," says Israel. The location and house may be great, but if there's a swampy backyard, the neighborhood looks dingy, or there are no trees on the lot, you could pay for it when it comes time for you to move again.
3. Don't show your cards
It's a seller's market. So be ready to play poker, my friends, and don't show your cards.
First off, be careful who you talk to. "Most consumers don't understand when they call number on a yard sign or speak to a person at an open house that they are talking to the seller's agent," the Massachusetts Association of Buyers Agents (MABA) warns.
The seller's agent is looking to find the best price possible for the seller's home. So don't tell them what you want to spend or what your motivations are for buying. It gives them bait to jack up the price.
And when you tour a house, be sure you don't make the so-called "$10,000 mistake" -- and exclaim, "I love this house," advises MABA. You'll pay for showing your emotion.
If you want to hire someone to be on your side, look for a buyer's agent, who can split the commission with the seller's agent in the sale. To find a list of buyer's agents, check out the National Association of Exclusive Buyer Agents, Web site: www.NAEBA.org.
4. Pay a smart premium
When you tour a house, make sure you take the time to evaluate the property correctly. Understand what the true value of the house is, and what premium is in the asking price. You're going to pay a premium in many markets because the market's hot. But just make sure you only pay a premium on a house that's worth it.
If it's a good property, it can stand up to any weakness coming in the market. "If you paid $550,000 for a home worth $500,000, you can feel okay knowing even if the market dumps, over time you'll make that 10 percent premium back just because it's a good property," says Israel.
5. Remember it's an investment
You've heard me say it: your home is probably the biggest investment you'll ever make. So treat it like one. Don't panic about the confusing current market conditions.
Israel says if you hold onto a house over the long-term, say five years, you can almost ignore the blips in the market. If your house devalues by 10 percent in the next three years, who cares, you'll probably live in it for seven, and by then, you might come out ahead.
Thursday, May 15, 2008
Wednesday, May 14, 2008
Monday, May 12, 2008
But we didn't find any at Barriada so even if it's raining, hubby and I walked straight to Our Lady's Village, wishing to finally find a studio-type home. You see, we have to leave this house even though it's so big and fully furnished for us. There are just some people who are so "makakapal" to stay here even if they are not welcome anymore. These two people do wear thick faces to stick and stay here despite the fact that I am sending them away of this house since they aren't actually renting here and the fact that the woman is supposed to be with her kids whom she left at her mom's custody which I just knew days ago. And worst, mom is the one feeding them since the man has no more job. D'oh! Well, mom can't send them away 'cause she's always the hospitable woman I know. Arrrggghhh! It's a different story! So better get out of this house before I blow fire again! I am trying to hold my temper, but staying here for a few more days would certainly provoke me to give them a new set of hit! Darn! Uber sa kapal!
How I wish we could have our home which we can call our own. Sigh! When will riches knock on us? I just wish hubby can already have his promised house and lot from her aunt. Well, it'll take two more years I guess and it'll be in a faraway land, right within the vicinity of their farm-resort in Silang, Cavite. Waaah! Super layo naman nun sa kabihasnan. ==> : (
But we need a home now. And I mean it ASAP. Luckily, as we walked through Our Lady's Village today, we found that "House 4 Rent" posted on the tree. And good thing, the landlord as well as his family is hospitable to let us rent the house. It wasn't actually a big one as compared to this house we currently stay in. I guess it's only half of the size of this house. But it's already good for us. It has 1 bedroom, living room, kitchen, dining space, and comfort room. We also have our own small gate and the windows have screens and grills. And the monthly rent, which is 2,500php is not that expensive so it'll be easy on our pocket. Practicality has to be with us these days especially that the prices of products and even services are gradually increasing to our dismay.
Thursday, May 8, 2008
Anyway, I just gave him a new Puma sneakers as my gift. I hate his fave Chuck Taylor sneakers. Well, he likes my gift so no need to argue, lolz!
Mah gift for his 24th birthday...
ciao!
Thursday, May 1, 2008
Le'mme share this very inspiring story with you peeps...
"Hi, I'm Janet." I tried to sound cheerful, although I already knew Rose's reputation for being impossible to work with. "I'm scheduled to work with you this week."
Rose, a middle-aged woman with graying hair, stopped what she was doing and peered over her reading glasses. I could tell from her expression she wasn't pleased to see a student worker.
"What do you want me to do? Start the coffee?"
Rose sullenly nodded and went back to checking name tags.
I filled the 40-cup pot with cold water and began making the coffee when Rose gruffly snapped, "That's not the way to make coffee." She stepped in and took over.
"I was just doing it the way our supervisor showed us to do it," I said in astonishment.
"The patients like the coffee better the way I do it," she replied curtly.
Nothing I did pleased her. All morning her eagle eyes missed nothing and her sharp words stung. She literally trailed me around the kitchen.
Later, after breakfast had been served and the dishes had been washed, I set up my share of trays for the next meal. Then I busied myself cleaning the sink. Certainly Rose couldn't criticize the way I did that.
When I turned around, there stood Rose, rearranging all of the trays I had just set up!
Totally exhausted, I trudged the six blocks home from the University of Minnesota Hospital late that June afternoon. As a third year university student working my way through school, I had never before encountered anyone like Rose.
Fighting back tears, I wrestled with my dilemma alone in my room. "Lord, what do you want me to do? I can't take much more of Rose."
I turned the possibilities over in my mind. Should I see if my supervisor would switch me to work with someone else? Scheduling was fairly flexible. On the other hand, I didn't want to be a quitter. I knew my older co-workers were watching to see if my actions matched my words.
The answer to my prayer caught me completely by surprise -- I needed to love Rose.
Love her? No way! Tolerate, yes, but loving her was impossible.
"Lord, I can't love Rose. You'll have to do it through me."
Working with Rose the next morning, I ignored the barbs thrown in my direction and did things Rose's way as much as possible to avoid friction. As I worked, I silently began to surround Rose with a warm blanket of prayers. "Lord, help me love Rose. Lord, bless Rose."
Over the next few days an amazing thing began to happen. As I prayed for this irritating woman, my focus shifted from what she was doing to me, and I started seeing Rose as the hurting person she was. The icy tension began to melt away.
Throughout the rest of the summer, we had numerous opportunities to work together. Each time she seemed genuinely happy to see me. As I worked with this lonely woman, I listened to her--something no one else had done.
I learned that she was burdened by elderly parents who needed her care, her own health problems, and an alcoholic husband she was thinking of leaving.
The days slipped by quickly as I finished the last several weeks of my summer job. Leaves were starting to turn yellow and red, and there was a cool, crispness in the air. I soon would be returning as a full-time university student.
One day, while I was working alone in one of the hospital kitchens, Rose entered the room. Instead of her blue uniform, she was wearing street clothes.
I looked at her in surprise. "Aren't you working today?"
"I got me another job and won't be working here no more," she said as she walked over and gave me a quick hug. "I just came to say good-bye." Then she turned abruptly and walked out the door.
Although I never saw Rose again, I still remember her vividly. That summer I learned a lesson I've never forgotten. The world is full of people like Rose--irritating, demanding, unlovable - yet hurting inside. I've found that love is the best way to turn an enemy into a friend.
"Love your enemies! Do good to them! Lend to them! And don't be concerned that they might not repay. Then your reward from heaven will be very great, and you will truly be acting as children of the Most High, for he is kind to the unthankful and to those who are wicked."
Luke 6:35 NLT
Wednesday, April 30, 2008
So before I changed my mind, I called Bendyk to change his clothes and it was my turn after I put his "paraphernalias". In 30 minutes, we reached Mama's house (hubby's granny) to pay her a visit and at the same time asked hubby's 15-year old cousin if she wants to come with us. You see, I can't handle my little prince alone. He's too heavy for my skinny body to carry him the whole afternoon. It's just a good thing that Sweetie excitedly come with us. She's been spending her summer school-break at home so she is also getting bored.
Well, the truth is, we planned to watch for the most awaited heart-throb Sam Milby. We heard that he's coming at 6:00 p.m. this afternoon. And since we still had so much time to stroll around, we let Bendyk played his fave game, basketball and also had his rides. But it seems that he won't take a "no" for an answer when he insisted to ride in that push-car. Oh my, he's getting hard-headed lately. As what most people say, "like mother, like son" seems to be true, lolz!
I had an eye on that colorful cotton candies near the WOF so I went there and bought two cones, pink and blue. I just dunno why it says in their jar that the pink one is a bubble gum flavor. Hmmm...it didn't taste like one. Well, maybe it was just a part of their marketing strategy.
After an hour, I asked Bendyk if it would be okay for him if we return the push-car since one hour had already lapsed. He agreed but on one condition, we have to eat at Jabee. Whew!
Afterwards, we went upstairs to buy a flash drive. I got the 2 GB so I can store a lot of my files, particularly pictures and digiscrapped images.
And then we headed to Landco Plaza where Sam had sung 3 songs. He is really good in singing and mind you, he looks so charming and sweet. He's not so maarte like the other celebrities who would hesitate to shake hands and even dare not to go down the stage near the audience. He's really a nice guy aside from the handsome face and body he has. I was actually taking photos and videos of him using my phone, but sad to say the light coming from the stage was really irritating. I don't see Sam on the photos taken. I could have just brought my digicam only if I knew that I am going to see Sam in person.
It was already past 11:00 p.m. tonight, munching and sipping my instant dinner.
Sunday, April 27, 2008
This is a true story which happened in the States. A man came out of his home to admire his new truck.
To his puzzlement, his three-year-old son was happily hammering dents into the shiny paint.
The man ran to his son, knocked him away, hammered the little boy's hands into pulp as punishment.
When the father calmed down, he rushed his son to the hospital. Although the doctor tried desperately to save the crushed bones, he finally had to amputate the fingers from both the boy's hands.
When the boy woke up from the surgery & saw his bandaged stubs, he innocently said, " Daddy, I'm sorry about your truck." Then he asked, "but when are my fingers going to grow back?"
The father went home & committed suicide.
Think about the story the next time u see someone spill milk at a dinner table or hear a baby crying. Think first before u lose your patience with someone u love. Trucks can be repaired. Broken bones & hurt feelings often can't.
Too often we fail to recognise the difference between the person and the performance.
People make mistakes. We are allowed to make mistakes. But the actions we take while in a rage will haunt us forever.
Tuesday, April 22, 2008
There are some things you can do, however, to break the ice on that first date. And while you’re breaking the ice, you can be observing your guy to decide whether you want a second date with him.
Dating Tips for Teenage Girls #1: Go to a Movie or Concert
This will allow you to spend a few hours together without struggling to find something to say. Afterwards, the show you just saw will give you plenty to talk about. While you’re evaluating the show, you can be evaluating your date as well. Do you and he share a sense of humor or a similar sense of values? Does he laugh at things you find offensive?
Dating Tips for Teenage Girls #2: Do Something Physical
Go indoor rock climbing, challenge him to a good, hard game of tennis, or suggest a bowling match. Until you know him better, avoid activities like hiking that will put the two of you together in an isolated area. Observe his attitude and see how does he react if you win? Does he get sullen and resentful, or is he pleased for you?
Dating Tips for Teenage Girls #3: Double (or Triple, or Quadruple) Date
Go out with other couples to get some pizza or see a movie. The more people there are, the more easily the conversation flows. Watch your date as he interacts with other people. How does he treat the other girls? Is he pleasant, or does he make crude remarks that annoy the others?
Dating Tips for Teenage Girls #4: Make a Study Date
Meet at the library to catch up on school work. Most libraries have private rooms study buddies can reserve. As you work and chat together, observe his behavior. Does he do his share, or does he count on you to do the majority of the work? Does he know how to work through a problem, or does he get easily frustrated?
A first date can be every bit as awkward as a job interview. But these dating tips for teenage girls will allow you to have fun with your date, while at the same time keeping an eye out for personality traits you may find undesirable.
