6 Factors Which Impact Home Pricing Values

In, most cases, one of the most significant factors, in, whether a particular house, will sell, or not, is related to its pricing, and, whether, it is perceived, at that particular time, and specific location, by potential, qualified buyers, as attractive, and compelling! There are many factors, which, often, contribute to a house’s market value (defined as, what a buyer is willing to pay, for the specific real property). Homeowners, considering, selling their homes, as well as potential, homebuyers, should, be, as knowledgable, as possible, so they may, realistically, know and understand, certain, relevant factors, in order to, more realistically, understand, factors, which, generally, affect, and determine, home prices. With, that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 6 key factors, which, generally, matter.

1. Schools: Many homeowners, especially, those, with school – age, children, feel, the quality of local schools, is a key factor, in their evaluations/ emphasis! How do the schools, and overall, education system, in one area, compare, to the competition? In addition, to the level and quality, how about the costs/ taxes, and perceived, bang – for – the – buck? In most cases, this is a key factor, in how, people, value, specific properties, etc!

2. Safety: Both, the actual, as well as, perceived safety, of a specific neighborhood/ area/ region, are often, significant factors, in real estate values! Houses in areas, perceived as, being safer, and having lower crime – rates, generally, garner, higher prices!

3. Conveniences: Does the area, have the desirable balance, between, privacy, and convenience? Many seek conveniences, such as availability, nearby, of supermarkets/ food stores, and other desired stores, houses of worship, and other services, etc!

4. Transportation: While, most don’t want to be, so – close, to transportation, that they are inconvenienced, by noise, etc, they do, seek it to be convenient, and easily accessible! This delicate – balance, in terms of commuter/ public transportation, and key roads, etc, make a significant difference, in pricing.

5. Supply and demand: Like, most things, related to economics, the law of Supply and Demand, are significant, regarding, real estate prices. When there are more buyers, seeking houses, than available inventory of homes, on the market, it creates a Sellers Market (which, generally, causes higher prices). When sellers, out – number buyers, the opposite, occurs!

6. Current real estate market/ economy: The current real estate market, especially, in a specific area, matters! The actual, as well as perceive economy, including, job confidence/ security, etc, often, become major factors!

It’s a good idea, to understand these, and other factors, which, often, impact, and determine, home prices! Will you commit to being, a more – educated/ informed, consumer?

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Richard Brody

How to Sell a House: Tips From Real Estate Agents

With the country’s declining real estate market, a home seller can easily sell a house if they lower the price. But for others who can’t afford to lower their asking price, it is best to find other ways to make their home more attractive.

Real estate agents are familiar with the trends in the industry. They are also very knowledgeable about selling homes and choosing the right homes. For this reason, we have come up with a list of house selling tips from successful real estate agents.

Make The House Stand Out From The Competition

It is very important for the property to attract potential buyers. Home sellers should consider custom designs or adding a few design touches, such as improving the landscape, or updating the roof and windows. These simple touches can have significant impact in improving the home’s aesthetics. It is important to avoid over-improving the house. For instance, renovating the bathroom and kitchen may not always pay.

Clean The Clutter

Before listing the property in the market, it is crucial to first clean the clutter from the home. Clutter will turn off potential buyers because they cannot picture themselves living in the house. As a tip, consider removing a few unnecessary furniture pieces to make the space look bigger. You should also keep family pictures and other personal items into storage so that potential buyers can imagine themselves staying in the house.

Staging the house is very important. You may want to hire a professional for the job. This may cost additional expense but it will be worth it. Real estate agents believe that a professional stager can make the home more attractive and salable.

The Price Is Right

No matter how you stage your house or how much space you renovated, it is very important to price the property appropriately. An agent can help you determine the right price for your property. You can also hire a property appraiser for the job. It doesn’t matter whether you are offering the lowest price in the neighborhood, especially if your home is very appealing and if you have made significant improvements to your home. It is important, however, that the listing price will not be so far-fetched with the other comparable homes in the market.

Selling a house in a slow real estate market will require patience and perseverance. Make sure that the house is in good condition and hire a credible agent to help you sell the house faster. Following these tips will help increase your chances of getting a good deal for your property.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Sara Schweiger

Top Ten Tips when Buying Real Estate!

In today’s financial climate, real estate continues to be a strong investment in many areas. Educated buyers will always make the most out of the real estate market. These top ten tips to buying real estate will help you enter into your next real estate transaction with confidence.

TIP #1: Hire the right Agent!

Hiring the right Real Estate Agent is invaluable. If you are unfamiliar with the area, the realtor you choose is your link to important information regarding schools, zoning, city and county regulations, neighborhood trends, building and remodeling and rental restrictions, and property values. Every city has different laws governing what can and can’t be done with a property. Sanibel is one of the most beautiful cities in the United States due in part to its strict building codes and city planning. Having experienced many aspects of real estate transactions on a personal level, I understand situations and concerns of my buyers and sellers. I have been an island property owner for many years and have walked through several local real estate transactions myself. From buying and selling lots to building new homes with local builders, to investing in rental income producing properties and utilizing 1031 Tax free exchanges, I don’t just sell island real estate; I invest in it because I believe there is no place in the world like Sanibel and Captiva. Whether you work with me or someone else, finding the right realtor is invaluable.

TIP #2: Utilize 1031 Tax Exchanges and Save Money!

1031 Tax Exchanges are tax free exchanges of investment property. Section 1031 of the Internal Revenue Code is one of the last great tax shelters. If you purchase an investment property of „like kind“ within 180 days of the sale of a similar type property, and you are willing to increase the amount of debt or value of the property, your capital gains taxes can be completely deferred. Having just completed a Reverse 1031 tax exchange myself, I believe in using this powerful tax shelter. Feel free to contact me if you are considering using a current Sanibel, Captiva, or Ft. Myers property in a 1031 Tax Exchange, or want to purchase an investment property that might qualify in the future for a 1031 Tax Exchange. A Reverse 1031 Tax Exchange is the same exchange concept as a 1031 Tax Exchange except you have purchased your replacement „like kind“ investment property first, before selling the property to be exchanged. Learn more about 1031 Tax Exchanges, and how to use them to your financial advantage. Keep in mind that a neutral party must have act a Qualified Intermediary. Real Estate may also be bought and sold through your self directed retirement account. Whether you utilize a traditional IRA, Roth IRA, SEP, or company plans such as 401 (k) plans, Keogh, or profit sharing plans, investigate your options.

TIP #3: Pre-qualify for Financing!

Pre-qualifying for a loan may not seem that important until you find your perfect paradise property at the same time as another buyer. When a property is priced to sell, it will usually attract more than one buyer. Once a seller receives an offer, the two most important things they consider are …the price, and the contingencies. For some sellers, a contract contingent on the buyer obtaining financing makes them uncomfortable with the offer. Eliminate any doubt in the mind of a seller, by pre-qualifying for the amount you may spend on the purchase of any property. This is especially important if your dream property suddenly has a price reduction. When this occurs other buyers might come into the picture, that didn’t look at that property before it went „On Sale“! Often times a seller will take a financially solid contract over a higher offer. Be ready to put a deal together!

TIP #4: Location, Location, Location!

„Location, location, location“, while overused as a real estate phrase, is still and always should be a huge consideration to you as the buyer! If something about the location of a property bothers you, be aware that the same location drawback will bother any buyer you hope to attract when and if you need to resell the property! It’s important to ask a lot of questions, but often times it is difficult to know the right questions to ask if you are unfamiliar with the community. This is why it is so valuable to choose and hire the right real estate agent to represent your interests when buying a property.

TIP #5: Get a Home Inspection!

Obtaining an inspection report performed by a licensed professional building inspector of your choice, can protect you from many defects that are hidden from view. Why gamble with such a large financial investment? Let a professional building inspector point out areas to be fixed or replaced that aren’t obvious. A good inspector will give you a lengthy report covering all systems in the home from electrical, to plumbing, to roof conditions, and structural concerns. Once you receive a report you may begin negotiations again concerning repairs. Often a seller will agree to make necessary repairs up to a specified financial amount. When a seller lists their property „as is“ they are letting you know that they are not willing to fix or replace any part of the property. If you are interested in an „as is“ property and aren’t going to level the structure and build new, it is still in your best interest to obtain an inspection report. Don’t rely on the building inspector to look for termites and other harmful pest problems. Although an inspector will see pest damage, it is best to have a separate termite inspection conducted by a licensed company that understands pests and can eliminate them.

TIP #6: Obtain a Survey and Title Insurance!

Surveys will show easements, encroachments, and boundary lines of a property. By surveying a home in an established neighborhood you are assured that the property boundary lines have been maintained. As homeowners add on the their properties over time with fences, sheds, docks, garages, and other structures, boundary lines can be crossed placing part of their structure on your property, or vice versa. Surveying vacant land is also important for same reasons as a home, plus a survey will help determine the size home, or amount of coverage the lot will allow.

Title Insurance will protect your investment from another party claiming ownership interest in your property. Title searches will uncover liens placed on a property by vendors, or mistakes in past transfers of the title. The last thing you want to discover when you’re in the back stretch of a transaction is that there are encumbrances on the property such as tax liens, undisclosed owners, easements, or leases. Should a claim arise after the purchase of a property, the title insurance company is there to protect your ownership interest in that property.

TIP #7: Be Realistic!

„Wants“ and „Needs“ are very different when is comes to real estate features. If every home you see has the upgrades you „want“ but exceeds the price range that you „need“…. be realistic. Who wouldn’t love a large, oceanfront, professionally decorated home or condominium, with all the bells and whistles? Looking at properties that exceed your price range is always fun, but it can be extremely frustrating and upsetting. Be realistic by looking at listings in the price range you „need“, keeping an eye out for that special property that has the potential to evolve into the dream home you „want“. Always look beyond the furnishings, wallpaper, and floor coverings to the architecture of the home; it is then that you will find properties with potential.

TIP #8: Use Contract Contingencies Wisely!

Contingencies in a contract for the purchase of a property are designed to protect you, the buyer! This may seem silly to mention but it’s important to remember that you need to work with the seller to come to an agreed upon contract. Valid contingencies to an offer are expected by the seller. Common contingencies include building inspections, termite and pest inspections, financing, and surveys. Many deals fall apart over small details, and easy to fix issues. Remember that sellers are emotional about their property. If you can see that major repairs or replacements need to be made due to neglect or age, make allowances for this in your offering price. The old adage „Everything is negotiable“ still holds true, unless you upset the seller so much that they refuse to work with you. Try to avoid listing cosmetic changes you would like the seller to make as contingencies. Cosmetic changes are subjective, be objective when writing a contract.

TIP #9: Understand Regional Health and Safety Issues!

An informed realtor will help you understand other health and safety issues that should be considered when purchasing a property. Safety and Health topics can include EIFS (Synthetic Stucco), indoor air quality, mold, radon, and lead paint. Many of these require the seller to sign a disclosure statement, while others may not apply due to the age, type of construction, or location of the property being purchased.

TIP #10: Ask for Information!

Don’t be shy. When you have hired a realtor to work for you, ask them for information. Do you want to look at all the properties in your price range, with the features you need, or just the houses a realtor wants you to see? You deserve all the information you need to make an educated decision. Can you imagine buying the home that you felt was good for your family, only to find that you never received information on a similar property that is perfect for all your needs? I provide many services to insure my buyers always have information at their fingertips.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Eric J. Pfeifer

10 Tips For Choosing a Real Estate Agent

Whether you are buying or selling a property, choosing a real estate agent may be the most important decision you make. Good real estate agents can save you a substantial amount of time and money. They can also ensure that the buying or selling process is an enjoyable and memorable experience. Here are some tips for choosing a real estate agent:

1. Ask Friends/Family for Referrals

Ask family and friends for their advice on local agents. This way you will be sure to find an agent with a good reputation.

2. Consider More than One Agency

There is an array of agents that will kill for your business. That is why you should interview as many agents as you can. Compare agents with regard to their knowledge of the area, experience and qualifications. Also, ask for references from previous clients.

3. Choose an Agent that Knows the Importance of Customer Care

While interviewing different agents you will be able to establish their level of customer care or how far they will go to satisfy the customer. Look at things like their attitude towards returning phone calls and their willingness to meet with you.

4. Choose an Agent that Handles Homes in Your Price Range

When you opt for an agent that deals with homes in your price range, you will be sure to end up with an agent that will give his or her best effort. Some agents deal only with high-end properties and are used to high commissions. They are more likely to attend to these properties first.

5. Choose an Agent that Respects Your Time Schedule

If you will not be able to view properties during office hours, you need to find an agent that is willing to do business after hours or over weekends.

6. Look for an Agent that You Can Communicate With

Communication is vital when buying or selling real estate. Make sure that you choose an agent that understands your needs and that communicates them well. You will be best off if you choose and agent that registers a high level of comfort with you or with whom you are compatible with.

7. Choose an Agent that Provides Multiple Services

It will be a bonus if you can find an agent that can handle the buying/selling process as well as other additional services like arranging property inspections or who can refer you to a trustworthy real estate attorney.

8. Choose an Agent That Can Negotiate

Negotiating skills is an essential quality of a good real estate agent. Make sure you choose and agent with impeccable and proven negotiating skills.

9. Choose an Agent with Lots of Resources

Ask agents where your property will be advertised. Make sure that the agency uses print advertising (newspaper/magazines) as well as other promotional material such as brochures. Also check if the agency makes use of the Internet for advertising their listings.

10. Follow Your Instinct

Choose an agent that makes you feel comfortable and whom you trust. You level of comfort and satisfaction will let you know if you’ve met the right agent.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Elizabeth Mclachlan

How To Pick The Best Real Estate Pricing And Marketing Software

Real estate pricing and marketing can be a daunting task for both wholesalers, rehabbers, and agent. To know the right offer can be a haggle. To be able to sell your deal quickly can also be very challenging. And finally to get paid for your project much quicker… well you know how the story ends sometimes.

Real Estate Pricing And Marketing: Know Your Numbers

My goal has always being to find ways to make things much simpler and faster for folks so that people can concentrate on closing deals and making money. Couple of friends and clients I have come across still do really struggle with juggling numbers from deal to deal and numbers matters in every deal you are making. It doesn’t matter if you are selling, buying, rehabbing, renting, or wholesaling. You should know your numbers and get it right. Without which things will start falling apart and if it does, the center can no longer hold. The snowball effect ranges from you losing out on a good deal, or you may not be able to find the right margin as leverage. Or even you may lose out on a good rehab deal or wholesale contract. Hence know your numbers.

Finding The Right Real Estate Pricing And Marketing Software For Your Business

You don’t have to be a mathematician to find and know your numbers. There are thousands of apps and software out there that can help you with a certain degree of number crunching. But the question is:

  • How to do you know the real deal from the fake?
  • How do you choose the right software that meets your business need?
  • How do you understand the need of your business so that you can be able to match it with the right software?

All these questions will remain unsolved if you do not know what software suits your business. A single mix up may end up producing the wrong information which can destroy your business.

For example, a rehabber, wholesalers, brokers, agents and commercial real estate investors and developers may use the same or different software, These, in particular, may yield different results to different users depending on what the intended use is for. Some software is tailored to serve a combination of users while some are designed to serve only one type of market.

Another example is the rental sector in the real estate investing industry. Any software designed to target rental market will be super beneficial to every landlords, house or property owners who relied more on rental income instead of house flipping.

So there you have it. I hope the above break down helps you understand how to find the right software that suits your real estate business needs.

In my experience, I came across this free software that you can not only do your property valuation but also rehabilitation, analysis, and close deal much faster. The software can go further in helping you find buyers, or sellers near you and also find lenders and get funding for your project. You can easily create a killer and convincing presentation for your lenders and partners, create flyers and send out emails to your potential buyers and get them emailing or calling you in no time.

A colleague told me about this tool, actually it is free software and now I am sharing it with you. It is definitely the best thing that happens when analyzing incoming deals for lenders.

You can thank me later.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Richard U

Apartments That Approve With Bad Credit Or Broken Lease in Virginia Beach

Virginia Beach is a large vibrant city in the historic state of Virginia. This city which played such a pivotal role in the foundation of the United States and also formed a central part in the Confederate States in rich in not only history but also in culture. There are numerous individuals and families that continue to move here to settle and this definitely places a demand on the city’s apartments, rental and town homes.

Usually to rent an apartment in Virginia Beach involves good credit, a sound rental history and background as well. Unfortunately, there are many nice people who would want to lease housing in this city but their record is plagued with less-than-perfect credit and other rental maladies such as a broken lease.

If this is you, the obvious question comes to mind; are there any apartments in the city of Virginia Beach where one can be approved if they have a tarnished credit or a broken lease? The question is yes, but you have to be tactful.

The name given to apartments which are willing to work with people with previous broken leases or credit blemishes is „second chance Virginia Beach apartments“, and sometimes, these can be hard to find simply due to their reluctance to advertise in the mainstream media. There are however, a few places where one can start looking:

  • Lynnwood
  • Croatan Beach
  • Lynnhaven
  • King’s Grant

The difficulty sometimes in locating these types of apartments arises from the fact that few if any at all engage in any kind of advertising. This is usually because working with people who possess problematic credit is done on a case by case basis. The apartments also do not want any negative publicity which might drive their rates down or cause existing tenants to decline to renew their leases. If you are looking for a second chance rental apartment within the Virginia Beach area, there are a few tactics you can employ. One is to see an apartment locator. Sometimes these too may draw a blank but it is worth trying.

Another option is to use the Internet. Instead of spending money on gasoline driving around from apartment to apartment, you might want to plug in a term like „broken lease apartments in Virginia Beach“ in Google and see what comes up. It may not be an exact science but this is a good starting point and can save you hours and money.

You can also network and ask around. Friends, co-workers, family and even neighbors can be an excellent source of information on where to rent if your credit is not what it should be or if your rental history is less than satisfactory.

One crucial point to note though is that even if you do indeed locate these types of rental properties within Virginia Beach, you must meet the minimum criteria that they ask for. One is that you must be prepared to furnish proof of income. Others may also ask that you pass a background check

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Jimmy Jamm

Real Estate Appraisal – Bring Back the Cost Approach

In the last few years there has been a trend toward a complete discounting of the Cost Approach to value in residential appraisal. For owner occupied homes, the sole technique is now the Sales Comparison Analysis, which involves selecting and comparing individual property sales to a subject property.

Many lenders and government agencies no longer require the Cost Approach technique, even on new or nearly new construction, and appraisers are often instructed to omit it completely, or not to place any reliance on the results. When a lender does require that the Cost Approach be completed, it seems that this is only so that a proper amount of homeowner insurance can be determined. This is, of course, something critically important to the lender as well as the homeowner, but should not be the only criteria for the use of a cost-depreciation analysis.

Years ago a Cost Approach was always required for an appraisal report. The basis of this approach was the Principle of Substitution, which holds that a prudent buyer will not pay more for a home than the cost to acquire an equally desirable substitute home. Accordingly, the reproduction or replacement cost new of a home set the upper possible limit on value, particularly for an existing preowned home. So this analysis served not only as an additional means of estimating value, but also as a governor on runaway home prices.

The cost approach also served an important function as an educational tool for appraisers. To perform this approach, an appraiser had to have at least a minimal working knowledge of residential construction and to carefully observe the quality and condition of the various components of the home. Cost data services, which still exist today, provide continuously updated information on the various costs of construction involved in a home and some are quite accurate.

One service publishes a manual with a wealth of good data and information, complete with descriptions and photographs that illustrate the differences in quality and appearance for different types of homes, which is a great way for new or inexperienced appraisers to familiarize themselves with these features. In recent times I have come across reports by relatively new appraisers where no cost approach was done and it was painfully obvious that the appraiser knew very little about construction or how to evaluate the differences between their subject and the comparable sales they used in the Sales Comparison Analysis. I suspect we have a new generation of appraisers out there who have this deficiency and that’s a bad sign for the future. The best appraisers know something about construction and can immediately spot differences among homes as to their quality level. This ability is also critical for the appraisal reviewer.

The Cost Approach is not without its weaknesses. The primary weakness is in the estimate of depreciation, be it physical, functional or external in nature. These things are difficult to estimate, but again, the appraiser who learns how to do this becomes more knowledgeable and competent, both in the Cost and Sales Comparison methods. Another weakness is in estimating the land value. Actual sales are often not available as a means to determine what buyers are paying for a similar lot and so market abstraction (also called extraction) is used to estimate the ratio of land value to dwelling value from market sales of already built homes. Improperly done, this technique is subject to serious errors. The general rule for the Cost Approach is that it is most accurate when the dwelling is not very old and sales of nearby similar lots are available.

I am of the opinion that the majority of foreclosures involve relatively new homes and that this is where the largest amount of lending losses occur. At least, that’s how it is in my local market which has always had a lot of new construction. There are many reasons for foreclosures, but certainly one is upgrades.

Builders typically offer various home models at „base“ prices and offer upgrades for both the home and the lot. Buyers can choose from a wide variety of options to enhance the home and can choose lots that are different in size or that have more trees or other desirable aspects. This is great for the buyer but can become a nightmare for the lender when a foreclosure happens because so many of those nice upgrades do not hold their value in subsequent foreclosure sales, and often do not hold their value as the distressed homeowner desperately tries to sell the home to avoid foreclosure.

The homeowner finds out they are „upside down“ meaning the home cannot be sold for as much as the mortgage amount, especially when the initial down payment was very low or when financing costs were included (rolled into) the mortgage, necessitating an increase in the sale price. Another problem is inflated upgrade cost where some builders mark up the prices of upgrades well beyond normal prices that consumers pay at retail stores, even with installation added on. This is similar to what many service contractors (plumbers, car mechanics, etc.) do because they want to make a profit on the „parts“ as well as the labor. The problem comes when the markup is excessive.

There is little an appraiser can do about upgrades when it can be shown that buyers often do select upgrades with their new home purchase. In the absence of current resales or foreclosures to compare with, it is not possible to estimate the resale value of upgrades, and values are estimated as of a given date, not the future.

The Cost Approach long served as a reasonable basis for making adjustments to market sales in the Sales Comparison Analysis for individual items. If a home needed a new roof, the appraiser had a handy source for determining the cost for this. Likewise for appliances, HVAC equipment, a garage and the like. Removing the Cost Approach and the good data that comes with it forces too many appraisers to have to guess at these kinds of adjustments and the results can vary wildly from one appraiser to the next.

Long ago homes were valued only by a Cost Approach. The Sales Comparison Analysis (formerly known as the Market Approach) came later. I don’t believe it is a coincidence that foreclosure rates and personal bankruptcies caused by unaffordable mortgage amounts and runaway home prices seem to have increased so much in recent years while the use of the Cost Approach has declined at the same time. Not do I believe it is a coincidence that the decrease in emphasis on cost minus depreciation began about the same time as tremendous inflows of capital into the marketplace encouraged every sort of easy money credit scheme that allowed so many people to buy homes they couldn’t actually afford and that has severely damaged not only the US economy, but the entire world. Mountains of money to lend tend to push caution to the side.

I believe that the Sales Comparison Analysis is surely a good valuation technique, but its down side is that there are too many clever ways for market participants to smuggle hidden costs, fees and even fraud into sales contracts, which make their way silently into market data services and onto appraisal reports. The same can be true for unhidden costs like seller paid loan discount fees and other monies paid toward buyer closing costs. At a minimum, an accurate Cost Approach serves as a useful check on the results of even the most thorough and detailed Sales Comparison Analysis where the appraiser is carefully searching for and analyzing such things. Undesirable things can and do happen in real estate and some can slip past even the best Sales Comparison Analysis because they happen quietly and incrementally.

An example of this is what I call closing cost price compounding. A real estate agent provides a seller a pricing analysis where the agent has found 20 recent sales of similar homes in the area and averaged the prices to arrive at a figure he or she believes is correct for the home. The home is then marketed at that price. Along comes a buyer (perhaps from a higher cost market) who lacks cash, needs some assistance with his closing costs, and makes an offer at or very near the asking price. The seller counters with an offer in which he adds the amount of assistance the buyer asked for to the price.

But what if this type of assistance turns out to be normal for the area and is already reflected in the selling prices of those 20 homes used to set the asking price to begin with? The new sale closes at the upwardly adjusted price and is then used as a „comp“ by other agents and by appraisers and the process continues with every repeat occurrence of the needy buyer, causing home prices to rise, affordability to lessen, creating more needy buyers, and setting in motion a snowball effect where prices to rise eventually to the point that they exceed even cost new. This is not unlike interest compounding on your savings account. Over time your balance goes up faster and faster. Combine this with other inflationary market tendencies and you get a nasty bubble that will some day burst to the peril of us all…again.

Obviously, this could be avoided by competent sales agents who understand that those 20 sales already included heavy seller costs and inform their clients of this, but many do not and there is a built in incentive to push prices as high as possible among people working on commission. An accurate Cost Approach would tend to catch this anomaly immediately or at least decrease its effects down the line in future sales because when home prices begin to exceed what it would cost to build an equally desirable substitute home brand new, the competent appraiser knows that something is wrong and that they need to dig deeper into the market data.

A Cost Approach is also a great lie detector for fraudulent appraisals. If an appraiser included a Cost Approach and is using a known cost source or manual that others can subscribe or view, then the estimated costs shown in the appraisal can be reproduced from that same source by someone reviewing the report. So if the appraiser has fudged on cost, that can be detected simply by examining the cost source and parameters the appraiser had described. Moreover, even if the appraiser showed the correct costs, the fraudulently inflated appraisal will exhibit inflated land value in the Cost Approach with little or no support as to where the land value estimate comes from or why it is so high. In fraudulent appraisals, the Cost Approach is „plugged in“ with numbers to match the Sales Comparison Analysis. That’s because an honest Cost Approach would have indicated a significantly lower value for the home.

There are other examples of how the Cost Approach could eliminate or reduce runaway home prices, and even detect fraud. I believe it is a foolish mistake to take away or encourage the disuse of any type of analysis or tool from appraisers that has a basis in market data. An analyst in any field of study should be willing and enabled to use as many ways as possible of looking at a problem. Focusing on just one method encourages tunnel vision. I say bring back the Cost Approach and let appraisers decide how useful or accurate it is on a case by case basis. It is not the end-all be-all solution but it is a valuable and worthwhile tool.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Harry E Davis

Low Inventory And Low Interest Rates: The Keys To Rising Home Prices!

After, over 15 years, as a Real Estate Licensed Salesperson, in the State of New York, I have come to strongly, believe, the two major factors (and keys) to the historic, rising home prices, are the extremely – low, inventory, and historically – low, mortgage rates! In the past year, in most areas of this nation, house prices, have risen, at, never – before, seen, percentages, etc! Simultaneously, there is also, an extremely – low inventory, of house, available, for sale, on the market. The combination of, the impacts, regarding, supply and demand, and, the affordability, created, by these mortgage interest rates, are the two major factors, in terms of rising costs, of purchasing houses. With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, these two keys/ factors, and what they indicate, etc.

1. Low Inventory: A number of factors, probably, have contributed to the extended, current period, of extremely – low inventory, of houses, for sale, in many regions/ areas/ localities. Some of these causes, include: the stresses, and uncertainties, stemming from this horrific pandemic; buyer – interest, because the crisis, has also, increased, the desire, for many, to relocate; and, lack of certainty, by homeowners, on what to do, if they sold. The economic laws of supply and demand, teach us, when there is limited supply (as there is, today), demand outweighs, it, causing, often, price increases! This creates, what is referred to, as, a Sellers Market (more buyers than sellers, and demand, creating an advantage to the seller).

2. Low mortgage interest rates: Few remember, mortgage interest rates, at the low – level, we see, today! Because of this, buyers are able to buy, more home, for their dollars. Since, most people, buy a house, taking advantage of a mortgage, in order to fund, their purchase, it is often, the most important, relevant factor, in whether, or not, one can afford a specific property! In that regard, it’s essential to remember, and appreciate, a 1% difference, on, for example, a $200, 000 house (which, at 20% down, requires, a $160, 000 mortgage), comes to, about $100 per month, difference/ savings. In many regions, the average mortgage is far higher, meaning a $400, 000 home (with $320,000 mortgage), sees a $200 monthly difference, and $600, 000 one, would create a $300 savings, at the lower rate. While, this lets more people, afford houses, it also has the result of creating, added demand, and rising prices!

When, you better understand, the relationship between these two factors, and the housing market, you become, better prepared, to proceed, wisely, using the best approach, and making the finest decisions, for you. Will you be a more aware, wiser, potential home buyer?

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Richard Brody

Important Things to Know in the Real Estate Law

Real Estate is anything related to the construction and development of land and buildings either commercial or residential. This seems to be a very simple concept, but there are many legal disciplines included. Real Estate Law governs who may use an own the land or buildings.

Some terms to note in the Real Estate Law:

• The title is the official legal term which describes the owner of the property

• The mortgage is lending money at interest in exchange of title on the debtor’s property. After the successful completion of the debt payment, the conveyance of the title becomes void.

• Foreclosure is the term used if the lender takes control of the house or any property used for mortgage if the debtor fails to pay back the amount

• The official meeting for transferring the ownership of the land or property is termed as closing

• Escrow is the term used for money or property withheld with the third party for safekeeping

• Real Estate Agent is the person licensed for negotiating and conducting real estate transactions

The much awaited regulation in the realty sector has been announced by the Government of India last year, which is the introduction of the RERA Act (Real Estate Regulatory Act). Under the act the home builders have to deposit about 70% of the amount in the Escrow account. This will ensure the buyers that the amount is not diverted to some other projects.

Benefits of the RERA Act:

• As mentioned earlier, the builder will divert 70% of the amount taken from the buyers to Escrow account and this will ensure the buyers that their amount is only being used for this project and safe as well without being transferred to other projects.

• With the introduction of this new act the buyers doesn’t have to pay for the area over the carpet area. It is one of the important things to remember.

• All the clearances both from the buyer and the builder should need to be made before selling. The builder needs to disclose the information regarding the apartment.

The builders are allowed to sell the property only after getting proper clearances

RERA, is the central law, but as Real Estate is subjected to state, the state governments have a major role in implementing this act. However the various other related practice area to the Real Estate law include Tax Law, Landlord Tenant Law, Accidents and Injuries, Estate Planning, Insurance Law.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Aman Tumukur Khanna

A List Of Property Definitions

There are numerous types of property on the market that are being advertised at any given time. Some of these names for different properties may be confusing, so it is vital that you know what to expect, here are the names of the property types and their definition.

Terraced Housing:

Terraced Housing is an old fashioned property set up where more than two (usually three or four) houses are joined together. To avoid using the phrase terraced, estate agents will now use the phrase link. A terraced house, or a mid link house is one of the properties which is between others.

An end of terrace, or end of link house is the property which is the last one in the row of houses.

Town House

Usually, the term Town House is used to describe a standard two story terraced house which is more modern. Some Estate Agents will also use this term to describe newer properties that have three or more floors.

Semi-detached House

A semi-detached house or property is used to describe of pair of houses which are usually attached in the middle. Semi-detached properties tend to offer their owners front and back gardens, with many also offering drive way space in more rural areas.

Detached House

A detached property is a solo property with it’s own land which is not adjoined by or to another property in any way. This type of property is usually more sought after by families who want extra privacy.

Bungalows

A Bungalow is a single story property which can be terraced, semi-detached or detached. Bungalows are often considered to be smaller properties, which usually have two bedrooms. Big loft spaces are commonly found in bungalows, which allow their owners to convert a second story living space if desired. Bungalow’s tend to maintain their value and can be more expensive compared to properties of similar size.

Flats

Flats essentially come in two forms. The first where an existing house has been split (usually into two separate dwellings). The second is a block of flats where there could be many separate flats in one building.

There is some terminology that you need to be aware of, a communal entrance is a main entrance that allows its residents to access their properties. Communal gardens is a shared garden, which you usually are required to pay a maintenance charge. Flats are often referred to as apartments, particularly in newly built developments.

There are also variations of apartments that you need to be aware of, here are the more commonly found variants.

Duplex Apartment

A Duplex Apartment is an apartment which has more than one floor, usually two. These can be found in converted houses or apartment blocks. Usually these types of flats are found towards the top of the buildings if they are in a block.

Penthouse Apartment

A penthouse apartment is a more luxurious and bigger apartment which is located on the top floor of the building.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Jonathan Walker

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