Do You Need To List Your Home With A Large Brokerage Firm?

Many homeowners rope in any real estate broker for selling their properties. As over a million house agents operate nationwide, it becomes difficult to zero in on one at times. While numerous home sellers may ask their relatives and friends for referral, some might pick an agent, who stayed in touch with them by neighborhood marketing. Others seek assistance from a recognized brokerage firm and select whichever agent replies to their call. However, all of the methods are good, home sellers may do certain things for being additionally pro-active while choosing a brokerage firm as well as a house agent.
You need to choose a brokerage firm that has a valid and proper license recognized by the state, wherein it operates its business. By calling over the phone or visiting its website, you may acquire this information. Next, make sure that the firm is part of the local MLS or Multiple Listing Service and Association of Realtors. Thirdly, know if the brokerage firm deals in the sale of residential properties.
In terms of choosing a real estate broker, select the one, who works full time in the business of real estate. Then, find out if the person is an MLS member, realtor and whether he has the experience in the sales of residential properties. In addition, check if the agent is well versed with the local realty market.
After verifying the license of a brokerage firm and agent and making out that both are qualified and experienced enough in meeting your needs, you further have to decide over how much you are ready for compensating the duo against the services they offer. The information below might help you in your decision making endeavor.
A popular myth is that bigger is the better. A number of home sellers believe that retaining a big brokerage firm will help greatly, as all agents within that office will try selling their home. This is not true, as there is hardly any incentive for a broker against selling a property that is listed by some other broker. Brokers rely on MLS to gather information on properties for sale. They are satisfied to exhibit and sell properties listed by brokers outside their brokerage firm.
A thing that most of the home sellers fail to notice is that the smaller brokerage firms often have more number of skilled agents. New brokers begin working at big brokerages, whereas experienced agents leave for starting their personal brokerage firm.
No matter of whatever size a brokerage is, listing agents certainly pay for marketing of private homes. Marketing tools, which are highly effective, include yard signs, Internet and the MLS. Home buyers use them for finding homes. Any broker may offer you these tools of marketing.
If a brokerage firm you hire spends enough money on billboards, park benches and television ads, then ask yourself if that benefits you anyway. Confirm if the firm is indeed searching for purchasers for your property or merely drawing additional business toward themselves besides justifying their exorbitant fees.

Commercial Property Management Can Increase Your Bottom Line

If you own residential, commercial and/or vacation rental properties, hiring a commercial property management company can make the difference between a leaking boat and a thriving, growing business. Have you been feeling as if you spend all of your time, and then some, managing the maintenance of your property and constant demands of your tenants? Do you spend too much of your time trying to keep your rentals filled? Your time is valuable. And if you live remote from your property or properties, your business will suffer because you cannot be physically present to manage it.
That is what a commercial property management company does. If you own residential rental property, a property management company will take care of keeping the units rented, managing leases and rent payments, maintaining the premises to limit your exposure to liability, and providing you with financial statements so that you can keep track of your investment.
If you own vacation rental property, the management company will take care of marketing your property to keep it filled, as well as the constant maintenance and vacancy issues that come with keeping up vacation property. This is a very labor-intensive business and it is essential to have a local property management company on your side.
If you own commercial property, a commercial property management team will take care of the myriad of maintenance issues involved in commercial spaces, including the management of maintenance crews taking care of elevators, heating and cooling systems, plumbing, and more.
While finding the right property management company will take time and effort, doing so will save you time and significant effort in the future. While it may seem too much trouble, you will realize a greater ROI by having a management team who can keep tenants happily leasing units and keep your units filled to capacity.

How to Turn Your New House Into a Home

Buying house may transfer the ownership of the house but that does not mean that the new owners immediately feel like home. A home is more than just four walls it is a feeling that you get when you enter those four walls. It is hard to explain because you have to feel it to understand what it means.
There is a big difference between a house that has been lived in and a house that is brand new. Usually it feels more uncomfortable to live in a brand new house renting an older one. This is because people leave a mark wherever they go. Humans leave evidences wherever you go and the home is where people comfortable enough to relax and let things happen. This is absent in a brand new house and that is why it feels like you are entering a strange place.
Fortunately, there are ways where you can turn your house into home. Here as simple inexpensive ways you can achieve that comfortable homey feel without much effort or spending a fortune.
One way is to buy used furniture. Buying used furniture makes your house older than it really is. It helps remove the feeling that you are living in a hotel and at any minute room service will come knocking on the door. Although, some would think that living in a hotel is nice it still lacks the feeling of home. Besides, buying used furniture is a lot more inexpensive than buying brand new.
However, remember to be careful what you buy used. Make sure that it is safe and clean. You also need to ensure that the furniture you are going to buy will not break down and cause injury. When buying used bed frames and cribs double check if it will break down suddenly and cause a serious injury to you or your baby.
Another reason people feel out of place in a brand new house is because of all the light shining into the house. Real estate agents sunlight as a major selling point because it feels great to have natural light permeating all over the whole house. It is all well and good until you have to wake up to the morning sun shining on your face. After that, you would want to shut out as much light as you can.
There are several ways you can block out the sun and make your home more inviting and comfortable, but one of the most inexpensive ways has to be adding curtains or blinds. Curtains and blind can block out the light while adding your character to the home. The design of the curtain usually reflects the personality of the owner. A little girl would usually pink floral curtains while the mother may want something formal with a solid bold color like green.
There are many other ways you can personalize your house to make it your home but nothing compares to injecting a little love to your humble abode. Surround yourself with the people you love and it does not matter how empty your new house is, it will surely be your home.

Best Mortgage Refinance Interest Rates - 5 Tips

Having a home mortgage represents a huge achievement, one that not everybody sees in their lifetime: that fact that you are a homeowner. It is a wonderful feeling to own a home. Well, technically the bank still owns it until you pay off your mortgage.
Your goal should be to pay off your mortgage as quickly as you can, while paying as little interest as possible in the process. Makes logical sense, right? But, if that is true, why do so many homeowners wait so long before they decide to refinance their mortgage? It is a mystery, especially when rates are at historical lows.
The benefits of refinancing are many. Doing so can help you to lower your mortgage payments and help you pay less in interest costs over the life of the loan. Many people just put off refinancing because doing so sounds like a bit of hassle, or because they simply don't think of it.
If you are looking for the best mortgage refinance interest rates, here are 5 tips that can help:
1. Find out what your current mortgage interest rate is:
As you get started in the refinancing research and application process, it is a good idea to find out what your current mortgage rate is. If you cannot qualify for a better rate, in most cases it will not make sense to refinance your home (unless you are wanting to cash out some of the equity in your home but don't mind continuing to pay the same rate).
2. Understand what mortgage refinancing is and how it works:
Mortgage refinancing is simply the act of taking out a new mortgage loan while paying off your existing loan in the process. You can refinance either with your existing lender or with a new lender. Either way, it is smartest to shop around first in order to find out where you can get your best deal.
3. Decide the ideal mortgage loan terms for your situation:
If your current loan is a variable rate mortgage or an adjustable rate mortgage (ARM), you may want to apply for a fixed rate mortgage when you get a refinance. This is especially the case if interest rates are at an historical low (say, at a low point relative to the past 5 years).
4. Determine whether you need to cash out any equity on your home:
Also, if you owe less on your home than it is worth, you may decide to take out a larger loan than you have now so. That way, you could use the additional cash to pay down some high-interest debt such as credit card debt.
5. Be persistent and tenacious in applying to at least 5 refinance lenders:
Now, it is time to research your refinancing options. The most important criterion for selecting a home loan refinancing lender should be the interest rate they offer you. However, you should also seriously consider factors such as their reputation in the marketplace, the length of time they have been established as a company, and other factors.
Important: follow through with completing applications to all of the lenders you have on your list. This will improve your chances of landing the best rate.
If you are interested in finding the best mortgage refinance interest rates, consider these 5 tips.

Online Land Property Advertising and Selling

When you are going to start advertising your properties in online listings, there are some things that you need to be aware of in order to be successful. The things that you need to do are to build a buyer's list, Create an opt-in page strategy, learn how to use online and other forms of advertising, use online auctions and use major real estate web sites. One of the first things that you are going to need to do is to create your own web site.
When you go to set up a custom website, you can get a domain name from place like GoDaddy.com, which does WordPress hosting. You can also check out the WordPress.org web site and choose a theme for your web site. There are many different themes that are available to use, and you can pick the one that suits your web site the best. One of the most important reasons that you need to use WordPress is that you need to keep your website interactive and up to date. WordPress has extra Plug-ins that you can use to add extra functionally to your website. You can use these plug-ins to enhance your website.
Use features like multi-media on your web site that includes audio, video and virtual tours. You can show buyers a 360 degree virtual tour of your land, the views, and what around your property. This is an excellent way to showcase the best aspects of the real estate in your listing.
Creating a buyer's list is important, you want to collect the names and email addresses of your interested visitors, so that you can follow up with them latter when you have more properties posted.
The more features and information that you have on your web site, the more traffic you are going to get and the more buyers will come to your web site. Be sure to include plenty of listings and pictures on your site that can reach each of your target groups of buyers.
There are powerful strategies to sell your properties online. Using social networking website like Facebook is one of the best way to sell your properties online, Facebook is the great tool to advertise your real estate and land online without any hassle, You can simply post an update on your Facebook wall including photos of your real estate and property that you are selling, If interested buyers will see it and they find your properties good and suited for their needs, interested buyers will surely come to you and do business with you anytime.

An Easy Way to Make Extra Money - Rent Out a Spare Room

As the UK slowly pulls itself out of recession, many householders may find that they are still feeling the pinch financially. Those struggling to make ends meet may want to consider an increasingly popular way of raising extra monthly income - renting out a room to a student or young professional.
In the past year or so, there has been an increasing trend by homeowners to rent out a room in their home and take on a lodger. Recent research by Santander (previously known as Abbey) has revealed that the number of homeowners that are now renting out a spare room has risen dramatically in the past year - climbing from 388,000 to 981,000. According to the bank, that means that around 3% of all homeowners in the UK have at least one lodger.
Certainly taking in a lodger can help recession-strapped homeowners, as the average weekly rent charged for a room is around £90. This equates to more than £4,600 a year, just from letting your spare room out. Plus, rental rate could be much higher, depending on where in the country you live.
Before you rent your room here a few points you should bear in mind
• Check your mortgage to see if renting a spare room is allowed. You may need to write to your mortgage holder to let them know. Also contact your home insurer to let them know about your plans and find out if you need to amend your policy. Finally, you need to make sure that your home meets all the safety regulations - be it gas appliances checks or fitting fire alarms.
• Make sure you understand the legal and financial implications of renting a spare room out. As an owner-occupier, you do not have to register as a landlord. Homeowners can make up to £4,250 per year tax free if they rent out a fully furnished spare room under the Rent a Room Scheme.
• You will need to work out in advance how utilities and other shared expenses will be shared. You will also need to agree whether overnight visitors are allowed, as well as whether you want to welcome them into your home as part of the household or for your each to keep to yourselves.
• It is not considered to be tenancy if you share your home with a lodger as an owner-occupier, so your lodger will not be entitled to many of the statutory protection given to tenants. To avoid possible misunderstandings, it is best to use a written contract stating what is allowed and what isn't.
• You will also need to make the spare room as attractive as possible to any potential lodger. Be sure that anything of yours (except the furniture) is out of the spare room, as the lodger will want to feel that this is his or her private space.
• Before you start looking for a lodger you should decide what type of person you would prefer, be it a non-smoker, a female or a student. The later has the advantage of only needing accommodation during term time. It may be a good idea to ask for some references, and do a thorough check on your potential lodger.
• Also research how much rent people are charging in your area for a spare room. There can be a big difference in prices between regions across the UK, with London being the highest.
Finding the right lodger
When it comes to advertising your spare room of rent you have a few choices. You could place a local ad to advertise your spare room to perspective tenants. Or you may want to take advantage of a specialist online property website, such as u-rooms.com. It is a dedicated online portal which links landlords and tenants, as well as those looking to rent out a spare room and lodgers. If you have a bit of spare room in your home and are looking for a lodger, let u-rooms.com help. With its fast, efficient and low cost service you will be able to find the right lodger in no time.

Differences Between Country and City

Living in the city nowadays has become problematic as there are a whole lot of things that drive you to move to others place where are lesser pollution and noise like the country side.
Others enjoy city life though. They enjoy the hustle and bustle. They also enjoy the infrastructures and services that are provided in the city.
Most people are being attracted back to the city ones again and some of these methods been used seems to be working.
Some people have a natural affinity for the country side. They enjoy big spaces that they can only find in the country than in the cities. They enjoy driving around themselves without bothering on any restrictions and pressures that are usually associated with the country side.
A big thing that most city dwellers find difficult to change is the need to always visit stores. When they get the opportunity to live in the country they are always seen running to the stores. They are however saved when they work in the cities and they drive from the country as they can always stop on their way home at the stores.
Most people live into the country side so that they can tend to farms and be completely absorbed into country life. During their stay in the country side however they will have to travel back to town to purchase the items that they need. These journeys can be long so it is always good to crosscheck list to make sure everything that is needed is bought.
Items that are not perishable can be stocked. Items like toilet rolls, first aid medicine can be stocked. This will always let you have constant supply of these highly necessary items. You can still forget about these things on your trip to the stores and still not in need.
The country side is truly a great place to live. However you must adequately prepare for it so that you can enjoy it.

Is Flipping Homes Worth The Hassle?

You must have watched all those shows on television about making huge amount of money by purchasing an ugly house and then fixing it up. When you purchase a house, repair it and then dispose it off quickly at a good profit in a shortest time is referred to as "flipping'.
So is this workable? Or is it just a world full of pain just waiting to happen for you?
If you wish to enter the real estate investing world and take this "flipping" route, then you should consider some pros and cons before you make the start. Just as with any other business you must keep few things in mind as you proceed in this business.
First the Pros
• Profits in this business are huge and can be obtained very quickly if the housing market is on rise and there are lot of buyers in the market. The income of flippers is huge if you can successfully make a good team of professionals.
• In this real estate business you are your own boss. You will however have to remain within the limits of law and shall have to maintain all the code requirements and strict zoning ordinances.
• This is a hands on business. There is lot of work here and it is your hard work and efforts which makes a property what it actually is. As you sell it, you will get value of all such labor which you have invested in it.
Now the Cons
• House flipping can sometimes be a risky business for you if you are not having an efficient plan in hand. There are many things which can go the wrong way and the housing market volatility is one of them. You should prepare yourself to take less than expected or even zero profits from a venture in many cases.
• It is really expensive to flip a property. There are realtor fees, legal fees and also remodeling fees. You many also have to pay for your mortgage while you are trying to sell your house. Similarly your contractors would like to get paid before you dispose off your house. It really takes good financial planning as well resources for affording such investment. However the rewards are great for you.
So are you ready to take the plunge in this? If you have plans to make a start in this house flipping adventure, I wish you a good luck.

Marketing Real Estate Near Military Bases

Did you know that there are currently 1.4 Million Service Men & Women in the Active Duty Force of which 70% percent of them reside off-base. 1/3 of those members and their families that's over 350,000 members will make a Permanent Change of Station move to a new duty station in search of a new home every year in search of a new home. If you are lucky enough to live near a military installation this is a huge market to reach plus you will get a professional and responsible clientele.
Advertising your home for sale or rent near a military base can immensely increase you chances of selling or renting your home. Especially in this time of economic uncertainty in our housing market you can fill your pipeline of prospective transactions by catering to the Military Community! As military members rotate from duty station to duty station you will be able to keep a continuous list of prospective clients.
What type of homes do military members look for?
As you can imagine it's similar to the civilian market, depending on their rank and family status will predict what type of house, apartment and price they will need an afford. Many bases have a large influx of members that are stationed their only on a temporary status for maybe a few months to a year, so if you have a house or an apartment that you are willing to rent on a month to month basis is another technique to renting your home. Other members may be in the market to buy a home with a Realtor or for sale by owner, your goal will is to reach this members first specially realtors who will have a larger choice for members to choose from and then refer their service to other incoming personnel.

Staging Your Home Just Right

Most homeowners know that staging is an important part of selling your home but not everyone realizes that it can be done poorly or way overdone so that many benefits are completely lost. While it might seem pretty straight-forward hiring a stager-or even doing the work yourself-home staging can be trickier than you think.
From looking at MLS listings, you can easily see that some homeowners are unaware of even the most basic staging strategies. Even before you consider hiring a professional stager there are some simple steps that you can take to either perform a do-it-yourself staging or prepare to have a professional put the finishing touches on the staging of your home.
The first step in staging should be to de-clutter your home. Box up all of your knick-knacks and put any unnecessary furniture and seasonal items into storage. Excess belongings in your home can make it look smaller at best, or at worst like a hoarder lives there. A large amount of excess belongings can also make it difficult for prospective buyers to see what the bones of your home really look like, as well.
The next important step is repairs; when someone looks at your home with a fresh perspective, the little repairs that do not look very important to you tend to look far more obvious to a prospective buyer. Replace any worn weather stripping around your doors, replace any cracked or broken fixtures, repair any broken concrete on your driveway or walkways. Make your home look to buyers that they are not just going to purchase a fixer-upper home; homes that need work will net you a smaller offer from buyers.
Another vital area is painting; even if you're just covering the walls and ceilings with the same colour of paint, a fresh coat will make your home brighter and cleaner looking. If the inside of your home is painted pink or turquoise, you should seriously consider painting in more neutral tones to better appeal to buyers.
If you are considering hiring a professional stager after you complete these steps, make sure that you see pictures of their work, or even better, tour a home that they have staged so you can see how it looks in person. Many home stagers have websites where you can also see examples of their work and easily compare between different stagers in your area.
You don't have to make your home look like the inside of a catalogue, but it is a good idea if it looks clean and inviting. Remember, buyers want to be able to look at a home and see themselves living in it; home staging can help them accomplish that.

Earth Craft House, an Eco-Friendly Program in Atlanta

With the emergence of Eco-Friendly programs such as the Earth Craft House, the local of Metro Atlanta is paving a path for Southeast US to know what going green basically defines. There are around six Earth Craft communities and around 5,500 certified Earth Craft homes in the city. The structure of the program has proved to be so successful that even the Georgians also have adopted the program, as have places like Virginia, South Carolina, Alabama, and Tennessee.
The standards of the program were made in 1990 for the area of Metro Atlanta, to help with the measuring and encouraging of energy efficient structures in the region. So in order to confirm the standards are met, homes made have to reach the dedicated practices of energy effectiveness, conservation, prevention of pollution, comfort and even the impact on the environment.
The real estate market of the Metro Atlanta area is consistent with homes with seal of approval by Earth Craft. The builders responsible for the construction of such green eco friendly homes are given the required technical and practical training.
You have to know that the concept would most probably leave you wanting such an eco-friendly home but the fact remains that houses with these approved seals are not all about the idea of tree-hugging. So that is not the attraction, the real attraction stands in the added value that comes from the certification processes. The values automatically rise up. These houses are no doubt a healthier place to reside in and have a longer lasting life line. They also have the higher standard quality building materials used in their construction. The air quality indoors is very high, as the houses are built to help save the money of the owner.
This whole program point to the aspirations of the Atlantic community turning green and the timings could not be better. This is an area that has grown the most in the last few years in the USA. It's a lucky thing as well that such a city would adopt such a plan.
Any programs that help the environment are a testament to the country's continuous effort to make the world a better place to live in for everyone. And by taking such small steps and trying to be an Eco-Friendly locality the country is surely doing its share little by little.

Taking Advantage of Easy Loan Terms With FNMA Home Foreclosures

FNMA home foreclosures or the properties offered by the Federal National Mortgage Association have been attracting a lot of buyers due to their low price and good payment terms. Also referred to as Fannie Mae foreclosures, these properties are primarily offered to owner-occupiers, meaning the buyer will also be the home occupant. These properties are especially advantageous for middle- to low-income families as it was designed for them in the first place.
The Buying Process
To qualify for FNMA home foreclosures you need to be pre-qualified for a home loan. Any bank or lending institution can issue a pre-approval letter after the applicant has provided sufficient documents signifying their ability to take out a loan or Proof of Funds. This is the only document needed to make an offer for foreclosure homes.
Slashing your offer for a home by 50 percent of its market value is not realistic and will be turned down by Fannie Mae. There are several things to consider before you can come up with a viable offer one of which is the average value of similar homes in the vicinity of the home you wish to buy.
When purchasing FNMA home foreclosures, you need to provide earnest money that will be held in trust until the conclusion of the sale and if you are buying in cash, you may be asked to peg your earnest money at 10 percent of the estimated purchase price.
Foreclosure contracts will most likely have per diem clauses which will require buyers to pay a certain amount of money for each day that the negotiations go beyond the scheduled closing date. Indeed, time is of the essence when it comes to purchasing foreclosures. You should convey this same sense of urgency to your mortgage lender. Ensure that the closing date you set is realistic in terms of the type of loan you are going to apply for. You can always consult a lawyer who deals in foreclosures in setting the closing date.

Home for Sale by Owner - Things to Keep in Mind Before Put Your Home for Sale

People choose "Homes for sale by Owner" options when selling their homes only because of one strict reason and that is to save themselves from the heavy charging commission agents. Before you put a Home for sale by owner sign in front of your house, you just need to know few things to make a good deal which are given below:
Market knowledge about property prices: you need to check the market trends of the property you are going to buy. A home for sale is always expected to have a lower price than a normal price prevailing in the market. Different websites are also available to help you out in considering the right price of a house.
Sources of data: there are many sources to find homes for sale by owner. Many websites are available on the internet to avail you the experience of a new home. You can find the desired home of your liking as per your requirements as there are many options available. A daily newspaper can also help you in finding you a home of your needs. There is a great opportunity for the home buyers to get a home without the heavy commissions charged by the broker s/ estate agents/ property dealers.
Comparison: The price of the property you are going to purchase must also be compared before buying it with other similar kinds of properties. After the comparison you will be able to decide a fixed and desired price for the property.
Affordability: You have to be sure about the maximum budget that you can afford as there are many different properties available with little different prices and dimensions. So one must know what exactly he wants before buying a home.
The Above points are really helpful and will even help in saving the heavy brokerage fees charged by the broker agents which can result in a profitable and friendly deal.
These are really important matters that one should consider before putting up in for Home for Sale by Owner. Just remember if you decide to become you own real estate broker, you have to think like a real estate broker and an owner at the same time.Hence there are lots of things that one should learn before putting Homes for Sale by Owner.

Trend Report - Las Vegas High Rise Condos

This town has long been a world-class destination, and with the recent economic downturn, Las Vegas high rise condos have become surprisingly popular. Investors have turned to the distressed market with the hope of taking advantage of the opportunities and their interest in these properties have already led to an increase in sales.
Investors and Vegas Condominiums
A recent article from USA Today ("Las Vegas condos are on sale", 09/09/2010) reports, "second-home bargains are rampant." Citing TopTenRealEstateDeals.com, USA Today attributes this rash of buying to the fact that Las Vegas high rise condo prices are down 70% from the highs of 2005 and 2006.
Vegas high rise condos (properties once reserved for the very wealthy) are now within reach. Many luxury properties in the city have been purchased with cash because of the difficulty of qualifying for a second home loan.
The MLS (Multiple Listing Service) reports that this year, just over 40% of luxury homes have been purchased with cash and a negligible amount of luxury homes have been purchased with FHA financing.
This limits the power of traditional homebuyers and puts investors in an advantageous position.
The Bottom of the Market
In an August 6, 2010 article, the Las Vegas Sun reported that home prices will continue to fall, but it is anyone's guess as to how much and how long the trend will continue.
Yet, because of increased competition between investors and homebuyers, combined with the actual cost of building a new home, it is unlikely that prices will continue to fall as drastically as they have in the past two years.
As Las Vegas reaches the bottom of the real estate market, housing developers have changed tack and are now building smaller, less luxurious homes. When the market stabilizes in one to two years, investors and other potential buyers will find a shortage of Las Vegas high rise condos, lofts, and other luxury properties.
This means that existing high rise properties will be priced at a premium.
Be Realistic about the Risks of Property Investment
Investors should consider several things before delving into the market. First, the availability of Las Vegas foreclosed condos will gradually diminish as more banks work with homeowners to arrange short sales. LV investors will need to decide quickly on whether or not to pursue short sales or foreclosures.
Short sales and foreclosures can be risky enterprises, so investors should also make sure that they are willing to put money into improving the property. In many ways, foreclosed condos are easier than dealing with foreclosed houses, because there are no hassles of dead lawns and cracked swimming pools.
Out of state and foreign investors should also be wary of real estate scams that misrepresent properties. The best way to avoid this is to work with a trustworthy and experienced agent.
And perhaps the most important, real estate investments should be considered part of a diverse portfolio and not be the focus.

Commercial Property Owners Beginning to Walk Away

As predicted, commercial property values have taken a beating in many parts of the country and as a result there owners are defaulting.
Just as the residential sector has taken a bath during the past 2-4 years in most parts of the country, it has been predicted that the commercial sector would follow...and it is!!!!
Economically, this poses significant challenges to an already strained banking/lending industry. One obvious difference is the mere size of these loans that will be defaulting. They will easily dwarf the size of defaulted debt in the residential sector, based on loan amounts and gaps in valuation. Additionally, commercial loans, unlike residential loans do not have 30 year amortizations. Loans are set over a 15 year terms or terms that are usually much shorter than a traditional residential loan. Many are beginning to come due over the next 12-18 months and beyond.
Most banks are in no position or have the appetite to renew these loans, or renegotiate the terms of the existing loan, especially if it means that the bank will take a hit on terms, value, loan amount etc. Further complicating this challenge is the fact that many of the smaller commercial loans were underwritten by local community banks (often the most vulnerable). They are least capable of taking the kinds of losses that would adversely affect their balance sheets and subsequently this will increase the challenge of meeting the minimum loan loss reserves, forcing them to close. All of which will put further strains on the local lending community and the economy in general.
While individual property owners are busy trying to maintain and manage thee own real estate plight, bigger economic challenges in the real estate market and overall economy lie ahead.
Finding creative forward thinking solutions to offset the next wave of defaults will be critical in minimizing the impact it will have on the US economy.

Manhattan's Skyline Is Getting a Facelift

Manhattan's iconic skyline could change dramatically within the next decade with new construction and planned projects rising high into the sky. Developers believe that the new construction is necessary to provide modern residential and office space while some residents see the new construction as a nuisance that will block viewing areas and strain already congested transit systems.
It's no secret that many buildings in Manhattan are old. The average age of office properties along Park Avenue between Grand Central and Central Park is 45-years-old. Commercial developers argue that new space is needed to compete with the global market and high expectations from commercial tenants.
New office and residential towers are already replacing their former structures at a dramatic pace. World Trade Center 1 is nearly 40-stories tall, the Frank-Gehry designed Beekman tower has now reached its final height and a new residential tower is quickly rising along Central Park.
The desire for new construction was epitomized by the recent approval of a new office tower in Midtown at the site of the Hotel Pennsylvania. The new tower would rise almost as high as the nearby Empire State Building which has the building's current owner worried about losing some of the landmark's iconic views.
Another obstacle to new construction is that higher density projects will put additional strain on the city's already burdened transit network. Developers are often promising transit upgrades in their building proposals but higher density can only mean longer commutes in a city where commute times already average 35 minutes or more.
The recession has put a kink in redevelopment plans as rents at top of the line buildings are still off 20 to 30 percent from their peaks and many new projects in Midtown and Lower Manhattan are waiting for financing to proceed. However once the market rebounds, developers are likely to start working on ambitious projects that will continue to change Manhattan's iconic skyline.

The Three Biggest Benefits of Hiring a Realtor

Part of the essential rights to keeping a country free is the right to own property. Even in the socialist country of Sweden, the people still retain some of their rights because they have the right to private property. So in a sense, the right to own property is an innate and essential part of the American dream. This right to own property, when exercised, can often be considered one of the biggest financial decisions of the average Americans life. A home is so expensive that ninety five percent of all Americans have to finance their homes and take out a mortgage. The mortgage or home loan can last up to thirty years of a homeowner's life if they never sell the home they own. On top of the home being a huge financial decision, a home is also a life altering decision in that it will dictate who your neighbors will be, what schools the kids will attend, what amount of time will be spent commuting and even where most of the shopping will be done. Because of this huge amount of importance with owning a home, it is especially wise to hire a professional to assist in the process. Here are three great reasons why a home buyer should hire a realtor.
The first reason a home buyer should hire a realtor is because the realtor is the closest thing an individual will come to finding a neighborhood expert. The realtor will have the ability and time to know what the neighborhoods have to offer. The realtor will know what the home prices are and their average range. The realtor will know if the neighborhood trends are good with to respect to increasing prices. They will know if the zoning is poor and a huge loud busy commercial park is coming in next door. They will know the local entertainment and any other form of shopping center. A realtor basically has the answers to the really important questions that take hands on experience.
The second reason an individual should hire a realtor is to save an enormous amount of time and energy touring homes that the buyer really will never have any real interest in every buying. A good realtor will listen and learn what it is exactly their client is looking for and will be proactive in knowing what homes are listed in the community and what homes will be close to their clients taste.
The last reason why a realtor is a must have is they will protect their client. The home buying world can be filled with traps. A buyer on their own will find that without a trained professional, they can never really get the house to close. A realtor will be expert in bidding for a home. They will know the tricks of the trade when it comes to the financial world and they will be able to help with the hundreds of pages of financial papers. Basically, from bidding to closing the realtor will help the process move along and protect the client from being taken advantage of often saving them thousands.
All said and done, realtors are often the most caring of hired assistants. A good realtor will fully look out for the needs of their clients and make everyone walks away happy.

Is the Homebuyer Tax Credits Being Extended?

If a homebuyer missed the April 30th deadline for the first-time homebuyer tax credit, then there will inevitably be some confusion about Congress's latest attempts to extend the benefits a few months. Headlines in the news, at first blush, can -and often will be, even deliberately so- be misleading. The truth is that if you missed out on your opportunity to take advantage of the $8,000 tax credit, then you are still out of luck.
However, if you signed the contract before April 30th for a qualifying home, and hadn't managed to get to closing before June 30th, then you're still in luck.
Rushing to beat the deadline
Apparently the government decided that three months from initial contract signing to closing wasn't enough time for some of the homebuyers, so they extended that date to September 30th instead. While this simple adjustment will certainly help some homebuyers, the question it raises is the level of confusion, disappointment, or concern it could raise with other homebuyers who simply were unable, or unwilling, to sign initial contracts by the April 30th deadline.
In May, the National Association of Realtors (NAR) reported a historic drop in home sales of more than 30%, and a large contribution to that decrease was the end of the tax credit. These numbers were based on pending sales, meaning the initial contracts were signed but the closing hadn't been completed yet. Homebuyers who had been looking for a home through March and April, and maybe even having found one, could have been delayed signing the initial contracts for a number of reasons and thus missed out on their chance at an $8,000 tax credit from the government.
Moving forward, what does this mean?
At this moment in time, many potential or would-be homebuyers are watching the activity in Washington for any sign that another full extension of the tax credit might be in the works. After all, moving to extend the final deadline date for closing could indicate that the program was successful in motivating people to purchase homes for the first time. But what are the chances that we will bear witness to this level of government intervention in the near future again?
After all, if it hadn't been for this program, the entire real estate industry could have seen a continued drop in home values, and a very slow recovery. Yet in the current economic -and even more importantly, the political- climate, it appears that another stimulus is unlikely to pass Congress to get people back out into the home-buying market.
Read between the lines?
Still, many people want to read between the lines, no matter what happens in D.C. and they will purport to watch and wait, rather than take advantage of the great deals that are readily available within most housing markets throughout the country. If clients are uncertain or reluctant to purchase a home at this point in time because they are playing a wait and see game with whether another tax credit is in the making, then it may be incumbent upon you as a real estate professional to enlighten them about the money they can be saving by snagging a great deal on their dream home as opposed to waiting for the government to get another program passed, signed, and implemented.
The tax credit served a purpose and many homebuyers took advantage of it, but with the historically low interest rates combined with resale values in many markets coming in a less than half of what they were just a few years ago, most homebuyers would save far more than $8,000 by closing a deal now.
The moral of this story is that headlines can be misleading and Washington intervention still isn't going to put as much money back in people's pockets as acting now and signing their dream home today.

Facts a Real Estate Investor Must Know



If you are a real estate investor you have essential things to think about if you are going to invest in purchasing foreclosed or attribute that is undervalued.

You are trying to build an investment portfolio. This is not just a matter of finding a attribute that might give you residual income. It is also about more than finding what has a good chance to appreciate over time.

The end game is the profitability of the income. You must look for this when attaining a real estate purchase. Do not forget the other essential elements that are easy to overlook when choosing a attribute. These things will help of hurt your profitability and have to be considered in the negotiations.

You have to remember standard inspections and tax issues. These are just a few of the required steps towards to end negotiations. These can be wrought with concerns that can affect negotiations and your overall income.

You need to have to the expertise of a real estate agent. This is especially true if this is your first time in this time of purchase and negotiation. It is different than if you are just purchasing a home for yourself. An experienced agent can spot issues that your lack of experience would miss.

Make sure the real estate agent you contact is an investment real estate agent. They will be an asset to you in the negotiation process and in attaining that first proper offer.

If you do not have a customer agent, you will be representing yourself. Keep in mind that the agent on the other side is legally bound to get the best deal for the seller as possible. They are not there to help you at all.

If you have a customer agent then you can be rest assured they will be working on your behalf. They will work for you to meet your investment goals.