29 Critical Questions to Ask a Realtor Before You List

Writen by Sean Spencer

Because Finding the Right Real Estate Agent Can Make All the Difference in the Success or Failure of Your Home Sale

Selling a home involves many critical and personal decisions. However, one of the most important decisions is the first decision you need to makea decision that impacts your entire home sale:

Which real estate agent should you work with?

Unfortunately, many people make this decision based on the idea that all real estate agents are basically the same. They sign with the first agent to come along, only to realize too late that they should have shopped around.

This article is designed to help you avoid that mistake by equipping you with what to look for in selecting your agent.

Start by asking your friends and family for the names of agents they know. Look around your neighborhood for the signs, ads and marketing materials of active agents in the neighborhood. Once you’ve compiled a list of several names, use this guide to help you determine which agent is best for you.

Here are the questions you should ask each agent:

Question 1

“Could you send me some information about yourself?”

You can often get a good idea of which agents are most professional and most committed by looking at their personal marketing materialsbrochures, direct mail, listing presentation book, etc.

Call each name on your list and ask them to send out any information they can before you actually meet with them for a listing presentation. When you get the personal brochure or other materials, look them over and determine your initial impression of this person.

Are the materials they presented professional?

If not, you might ask yourself,

“If they don’t have the wherewithal to properly market themselves, how will they market my home?”

Also, keep track of how quickly and efficiently they respond to your request for information. Are they friendly and helpful? Or just pushy and hungry for a listing?

Does this seem like someone you’d be interested in talking with? If they aren’t organized and professional enough to respond promptly to your first request to find out more about them, they’ll probably handle potential buyers for your home the same way.

If you like the way they respond to you and are impressed with the information they supply, call them and invite them to make a listing presentation to you.

It’s always a good practice to meet with more than one potential agent before making a final decisionusually three to five for sellers.

Just make sure that you don’t meet with more than one from the same company. This could cause internal strife which would be counterproductive in marketing your home.

Question 2

“How do you approach your work?”

What you should be looking for, first and foremost, is an honest and knowledgeable individual, who works full time, represents a solid and reputable real estate agency, and will treat your best interests as paramount. Length of time in the business, track record of success, previous experience, expertise in and knowledge of the local real estate marketall of these are factors to consider.

While the right agent to market your home may not be number one in every aspect, you want to make sure that the person you hire is a well rounded individual whom you can trust and respect as a professional.

Question 3

“How many homes have you listed in the past six months?”

Look for an agent who is active in your area and has experience dealing with homes and situations like yours. This is especially critical if your home or transaction has special features or terms that may make it more challenging than the typical home sale.

Question 4

“How many homes have you sold in the last six months?”

Beware of agents who simply gather listings and let them sit and wait for someone else to sell them.

Your agent should have a good track record getting homes sold, which is, after all, your ultimate goal.

Question 5

“What is the average length of time your listings are on the market?”

You may automatically assume the shorter time on the market, the better. But take note:

If an average length of time on the market is significantly faster than the average for homes in the area, is it because this agent is more effective or because he or she likes to low ball the asking price in order to get homes sold more quickly?

Also, take a look at what the original asking prices are for homes the agent lists versus what the homes finally sell for. This “swing” number will tell you how effective the agent is at helping clients determine the right asking price and doing what it takes to help them get it.

Question 6

“How long have you been in the business?”

Depending on the agent’s background and track record, there is no hard and fast rule for what to look for here.

An agent may have been a licensed real estate professional for 15 years, but only selling part time and never really an active sellermaybe only handling one or two transactions per year.

Whereas another agent may have only just become licensed one or two years ago, but has a background in real estate finance, worked in real estate law for a number of years or has been a private real estate investor and has bought and sold more than 20 homes himself in the last 10 years.

Either way, you need to find someone who has an in depth knowledge of the legal ins and outs of the business as well as the characteristics of the local market, and has demonstrated competence and professionalism in getting homes sold.

Question 7

“What professional organizations do you belong to?”

The minimum here should be a fully licensed professional who’s a member of the local real estate board and multiple listing service as well as the state and National Association of Realtors.

Calculating Revenue Property

Writen by Jennifer Walker

What is revenue property? What does it mean? The meaning revenue in the dictionary says: Yield from property or investment; income. I mean cashflow. Cashflow meaning what is left over once all the variables are subtracted off of the balance sheet. Let us look at what determines cashflow:

First we must look at INCOME: Income is rent, parking, laundry, or other sources. Other sources could be a billboard or renting out the garage. This is called the “Gross Operating Income”, or GOI.

Because the income fluctuates with renters and advertisers coming and going, we subtract an amount for vacancy loss. Most professionals use 5%+ depending on the area. When subtracted from the Gross Operating Income, we are left with the “Effective Gross Income”, EGI .

Second we must look at EXPENSES: Expenses are maintenance, taxes, utilities (heat, electricity, water), insurance, possibly management fees and of course miscellaneous items that pop up. By adding up all of the above, you have the “Total Operating Expenses”, TOE .

To determine the cashflow of the revenue property you must do the math: By taking the “Effective Gross Income”, EGI and minus the “Total Operating Expenses”, TOE you are left with the “Net Operating Income”, NOI .

The last step to calculate is the “Annual Debt Service”, ADS , which is the yearly sum of all your mortgage payments.

Now we have our formula: Cashflow = NOI ADS

www.montreal realestate.ca

Can You Get Wealthy Subdividing Land? Or is It the Easiest Way to Wealth Known to Man?

Writen by Martin Thomson

Unimproved raw land is the most simple way for ordinary people to gain a foothold into the world of big time development.

Simply, it is the way most big time developers started because land is the cheapest and easiest form of development there is. The reason why is because land, raw land is a blank canvas.

The quickest way to make a good profit on land is rezoning.

A wife of one of my associates not long ago had a vision about a parcel of land on the outskirts of Boston Massachusetts where they lived.

These 5 acres were well out of city limits, but not for this reason, the land was very cheap. It was unusable because it was zoned for residential development but it was on the main highway which made it unsuitable for families.

These 5 acres would have been perfect for a commercial development with a gas station and some retail shopping facilities because there was a nice residential development at the rear of the property, and there was no real services. The highway frontage gave it a perfect aspect for passing traffic exposure.

Any main franchise or chain of stores like walmart would have been very interested in the numbers of passing traffic.

And they were……

My associate’s wife was very dogmatic in her vision and she believed in the purchase. She gained legal control of the land and proceeded to find a buyer. But first she rezoned the land by appealing to the local land authority. They saw no problem in the rezoning and a 5 acre plot of land that was previously unwanted by residential retail buyers, was now in high demand by commercial retail buyers.

She had an option to purchase on that parcel for $30,000 and she settled not 4 months later on that same parcel with a new commercial zoning for $3.6 million to a higher level developer.

Not bad?

I’d agree.

Total out of pocket expenses were $849 for the forms and the council requirements.

Better then a lotto ticket?

My very best to you.

Martin is a professional investor that trades in yacht’s, precious stones and real estate. Jack Reynolds is one of Martin’s students, Jack was a broke Insurance salesman only 2 years ago, today he owns assets valued at several million dollars. What did Martin teach Jack in 24 short months? You can read about Jack’s remarkable and rapid transformation and download Hayden’s famous book “The Million Dollar Mentor” by clicking here

Home Appraisals What to Expect

Writen by Robert Rogers

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

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

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

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

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

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

Robert Rogers is a writer in Washington DC. Visit http://homeappraisel.com for more information.

Real Estate Investing: The Value Of Compromise

Writen by Luigi Frascati

Investing in real estate, in general lines, involves compromise and is often more a matter of what an investor is willing to give up than what he actually wants.

If I were to ask "What is your investment objective?" how would investors respond? Most likely the answers would range from "I want to retire at 55", to "I want to start my own business within the next five years", or perhaps to "I want to have enough money set aside for my children education". We all have many different ways of expressing what we are trying to accomplish when we set investment objectives. When all is said and done, however, there are really only three fundamental goals we really intend to achieve. All goal setting boils down to growth, income and liquidity.

We want our real capital assets to grow in value, that is to be worth more at some point in the future than they are today. Then, while we are in the process of accumulating whatever amount of wealth we can, we need to generate income out of those assets to minimize costs of owning such as property taxes and maintenance and, possibly, to increase our own salaries or wages. And, finally, we want to be able to quickly convert those assets into cold cash, should the need ever arise to get through some unexpected crisis, or if a better investment opportunity suddenly comes in sight.

That’s quite a lot that we want from our real estate investments. The truth is that only few of all investors will have situations so straightforward as to be able to accomplish all three goals in equal proportions. For the vast majority of us, it will be a matter of seeking compromise so as to incorporate in our investments only some elements of growth, income and liquidity, and not in perfect equilibrium. This is due not only to the nature and type of the real estate investment we decide to make at any given time, whether residential, commercial, multi family rental or a combination of any of the above, or to the situation of the market at the time we make our investment, but also for a quintessential human trait common to all investors.

We spend money on things we need, and we save money for things we want. Which is great, until such time as we decide to reclassify what is that we need and what is that we want. Human nature being what it is, when we see something that we suddenly decide we ‘need’ and the money is readily available, our best intentions can wilt and disappear instantaneously. If the cash is not in the savings account already, we can pay an unexpected visit to our friendly neighbourhood banker who will be more than thrilled to advance the money secured by our real capital assets, or to refinance our existing real estate loans. This is, in ultimate analysis, how consumerism works.

There is no doubt that the judicious use and management of debt can accelerate the accumulation of wealth. In Finance, this is called ‘leveraging’: the use of borrowed money to meet investment objectives, particularly growth and income. However, financial leverage is a double edged sword: using other people money to invest also increases the risk associated with the investment. It is bad enough to lose one’s own money if a real estate investment sours. It is much worse, however, to lose the banker’s money one may quickly discover how unfriendly, all of a sudden, the friendly neighbourhood banker may become.

Historically, leverage strategies work best and are more popular during times of low interest rates and high appreciation of property values. If, for example, an investor borrows money at 5 percent to purchase an investment that appreciates at the rate of 10 percent a year, obviously the investor will come out ahead. Additionally, in certain circumstances the interest expense is tax deductible, thus making the net return even higher. Unfortunately, however, during times of downward fluctuations leveraging may be a risky proposition, as the cost of borrowing may exceed the investment yield even after deducting interest expense.

So, therefore, when is leverage appropriate? In Finance, the rule of thumb is that every dollar borrowed increases the risk of investing by 50 percent. This means that if an investor has $100,000 of his own money and decides to borrow an additional $100,000, he increases the risk by 50 percent. If he borrows $200,000, he doubles the risk. If he goes as far as borrowing $300,000, he increases the risk by 150 percent. Therefore, if the real capital asset chosen by our investor would normally yield, say, 10 percent, he should expect a return of somewhere in the area of around 10 + 5 = 15 percent to account for the extra risk, if he pays $200,000 for the real property he is acquiring, $100,000 of which are financed by a lender.

This ratio holds true for leveraged investments of higher or lower proportions too. For instance, if the investor matches each dollar of his own money with 50 cents from the bank, his expected return should be at least 25 percent higher than if he only used his own money, or 10 + 2.5 = 12.5 percent. Likewise, in the case of $200,000 financing the expected yield should be 20 percent. And then, of course, there is the real big one: the 100 percent leverage, also known as the zero down option (the one they show on TV at midnight), with the investor using none of his own funds (because he doesn’t have any, since he just landed straight out of the Mongolian desert like the chap on TV). On a purchase price of $200,000, the yield should hover to on or about 10 + 5 + 5 = 20 percent. On a purchase price of $300,000 it should be in the range of 10 + 5 + 5 + 5 = 25 percent and so on.

Luigi Frascati

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

Luigi is very proud to be an EzineArticles Platinum Expert Author. Your rating at the footer of this Article is very much appreciated. Thank you.

The Small Land Investment - How To Find Good Property

Writen by Luke Lu

For those who make a living from land investment, tracking property values and evaluating trends isn’t a problem - they have analysts hired to perform those tasks. But for anyone who is just considering land investment in the form of a small purchase or two, finding land invstment property that is likely to offer up a decent return can often become a real challenge. It becomes a matter of being lucky. But there are some steps you can do to make your luck a little better, and to find those small land investments that are likely to pay off in big dividends.

Start by admitting that you’re going to have to be a bit of a researcher to find the best land investment, and that you’re going to have to spend some time on this process. Don’t worry - land investment isn’t a boring subject at all.

One of the best things about doing your land investment research yourself is that you get to be nosy. Your quest for land as an investment should probably start with a trip to your local courthouse. In most counties, you’ll find listings of deeds that have been filed as well as the county’s assessment of how much property across the county is worth. And the best news? All this is public record. You don’t have to be anything special to gain access. You don’t even have to explain that you’re doing research for land investment, though you can. Appraisers, surveyors, property owners, genealogists and those doing title research all call for these records on a regular basis.

If you county assesses, you can start by looking for land cards. Cards will vary from state to state, but typically include all transactions that have taken place on that particular piece of property. If it was sold or transferred from one family member to another, that information will be recorded. You can usually find the amount paid for the property, but be wary of this information. It could be that this was part of a larger transaction. Or it could be that this was “Uncle Joe” selling his property to his kid brother for a dollar. To be sure what these transactions mean, check the deeds themselves.

The deeds may also be misleading to your land investment research because some states don’t record the actual amount of the transaction. If you have any doubts, ask for help in understanding what you’re reading.

After you’ve taken a look at your courthouse records in search of real estate trends that can help you make wise land investments, take time to visit some area real estate agents. These are people who work with property values on a daily basis and can likely give you some great information related to your land investment research.

Pay attention to government actions. Sometimes, a decision to improve roads, extend services (water, sewer, etc) or other actions can greatly improve the value of land in those areas, making them great land investments. But you have to know those things before they actually happen. If you keep an eye on city, county and regional government, you can sometimes get clues about land that will make good investments.

Finally, your land investment research should take you into the area you are considering for land investment property. Drive around and take note of trends in the area. Are people fixing up homes? Are there dozens of “for sale” signs in the area? All these and more can greatly impact whether property in a certain area will be good land investment property that you can expect to turn a profit.

BuyincomeProperties.com Best Place of Real Estate Investing Articles and Resources.

Not Everyone is Buying or Selling, Some are Doing Both

Writen by Genesis Font

As if one real estate transaction is not hectic enough many of us end up needing to sell one place in order to move up to the next this is the “real estate catch 22″. Do we buy first?? Do we sell first?? If we are fortunate, these events occur at the same time, but that is not always the case. The problem is trying to determine if it is worse to end up “temporarily homeless” because you sold first, or financially strapped because you bought first.

Conventional wisdom states that IF you can’t make them happen simultaneously, it is better to sell before you buy. The rationale? If you sell first, you don’t end up at a disadvantage at the negotiating table. This happens by feeling pressured to accept something lackluster for your current home due to your impending closing on the new home. There are several providers of short term, furnished lease properties that can fill the gap while you find the new dream home if needed. The purpose for finding a furnished property is for the simplicity in moving.

Few people I know want to pack and unpack twice and a few months storage is a small price to pay for the convenience. (For those that enjoy packing, there are support groups available.) And yes, if you were wondering the two scenarios DO affect the financing angle as well. Having moved on from the first home does help in the debt to income ratios that lenders use to qualify you and in the funds that you have available towards the down payment of the new place both help in the rates that will be available to you.

Genesis Font is an SEO and Developer for LoansInteractive.com > Mortgage and Loan Officer Websites. We also offer Quality Web Hosting Services.

Advantages to Buying or Owning a Condominium

Writen by David Chandler

Condos have become an increasingly attractive home ownership option for singles, young couples, families and retired couples (that’s just about everybody!). A condo is a viable option for anyone who wants to own a home without the worry of repairs, maintenance and dreaded chores like snow shoveling.

Condos are usually located in well established, proven neighborhoods. Giving you the opportunity to see where everything is before you decide to buy. Some condos are the same size as houses as far as square footage is concerned, and the accessibility is a little more governed. You have people closer to your condos so there is more of a chance that someone will watch your property while you are away.

You need an inspection completed before buying a condominium. Do not forget that when you buy a condo, you are also buying into the entire building in which your condo is located. As a co owner of the building, you will be assessed your proportional share of the cost for corrective work required in common areas, such as the roof, heating system, or foundation.

Condominiums will increase your buying power. Condos usually sell for 20 to 30 percent less than similar detached homes. You will have all the luxury of owing your own home, but will be able to share the cost of upkeep on the building, roof, and foundation. For most buyers the choice is to buy a condo that meets their living needs or continue to rent.

Condominiums usually cost less to maintain than detached homes. The replacement cost of the high rise’s roof, may be more in absolute terms than replacing the roof of a detached single family home, but the cost per owner should be less.

Condominiums have amenities that you could not otherwise afford, such as swimming pools or tennis courts, there own community center with exercise rooms and much more. Condominiums are ideal homes for people without children or some with a very small family.

After reading this article completely you should have a general idea of why buying a condominium maybe what you are looking for.

For more information, visit http://www.CondominiumsInfo.com

Virginia Real Estate Living in History

Writen by Raynor James

Virginia has played a central role throughout the history of the United States. With reasonable prices, you can live in the middle of it with Virginia real estate.

Virginia

The historical significance of Virginia is simply unmatched in the United States. Presidents George Washington and Thomas Jefferson resided in the state as did many of the founding fathers. In the revolutionary war with England, Virginia was front and center in the battle with Williamsburg and Richmond playing central roles. From the Civil War, the battles at locations such as Fredericksburg and Cold Harbor need no introduction. In these modern days, Virginia is unique in seamlessly mixing modern development and old world charm.

Richmond

Located on the James River, Richmond was burned to the ground twice during the tumultuous early years of the country. The capital of the Confederacy, Richmond was under attack through much of the Civil War and suffered for it. Following the war, however, the city was rebuilt and has remained prosperous since then. Today, the city is an interesting mix of elegant turn of the century architecture and modern structures. Economically, Richmond is known for strong tobacco and financial industries.

Fredericksburg

Fredericksburg has to get special mention since we, FSBOAmerica.org, are located in the city. Although we might be biased, our town is one of the prettiest in the south and a great place to raise a family. Downtown has a definite elegant old south atmosphere while neighborhoods are full of turn of the century homes with white picket fences. When we had to choose a location to raise a family, Fredericksburg was our choice. We haven’t regretted it once.

Virginia Real Estate

Virginia real estate prices can range from the low $200,000 to the high $700,000 depending on the location. A single family residence in Richmond will run $340,000 on average, while homes in Blacksburg can be had for an average of $220,000. On the top end, homes in Alexandria average in the mid to high $700,000 range.

For 2005, Virginia real estate has shown strong value growth. With an appreciation rate of nearly 21 percent, Virginia has the eighth highest figure in the country.

Raynor James is with the FSBO site FSBOAmerica.org homes for sale by owner. Visit our home buying page to view and buy Virginia real estate.

Foreclosure: Down But Not Out

Writen by Mel Goodwin

Now of course not all of these “investors” are out to get you when you are down and at your lowest. However if you do plan to consult with one as mentioned time and time again by professionals before you need to consult with a bar certified attorney who is familiar with real estate related cases.

Only then should you consider the old preventive method of working with these investors and in most cases of structuring some sort of a deal where you can get cash usually by selling your home or something along those lines.

Professionals are waiting on call 24/7 to help you with your case. There are some services where they only get paid after you successfully navigate your way out of foreclosure. Therefore you do not have to worry about having cash on hand to begin with (or at least not a whole lot usually around $1000 will get the services going).

If you’re sitting at your computer feeling nervous, feeling like no one in the world can help you, that is just outright false! Bottomline, no matter which method you pursue, doing anything (within reason) is better than sitting on your hands and hoping for things to solve themselves.

The earlier in the process you own up to the situation and resolve to address it, the more options and the higher the probability is that you will make it out of the foreclosure nightmare before it gets out of hand.

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