How Much Is Your Home Worth? Ask Your San Diego Realtor!

As you prepare to sell your home, the main question on your mind is ?How much is my home worth?? Your San Diego realtor can assist you much better than the web sites on the Internet with their ?home worth? calculators or even the price being asked by a close neighbor.

Your realtor takes many factors into consideration when determining the asking price for a home. Here are the major factors your realtor will evaluate:

?Type of Residence. The type of home you are selling will make a difference in the pricing. Is it a primary residence, secondary, vacation home, or rental? How it has been used in the past could impact how your realtor markets your property or how potential buyers will use it.

?Type of Property. The value will differ, depending if the property is a single family home, multiple family home, townhouse, condominium, manufactured or modular home, or a mobile home.

?Size of the Property. Is the size of the land a city lot, a ? acre, full acre, or several acres? The more land, the higher the value. The position of the property makes a difference in the value. For example, a corner lot can bring in a higher selling price than one in the middle of a block.

?Square Footage. The approximate square footage of your home is factored in; otherwise, how much living space is there?

?Overall Condition. Your realtor will assess the condition of your home and property, which will greatly affect your selling price. The realtor also will make improvement suggestions that can increase the value of your property.

?Architectural Style. If you home was built in a style that is in great demand, the selling price will be higher than if built in an outdated style that is not in demand.

?How Old Is the Home? How long ago your home was built can affect its value.

?The Numbers. How many fireplaces are there? The number of bedrooms and bathrooms (including half baths) also can raise or lower the home?s value.

?Parking Facilities. Garage, carport, off street parking, parking on the street, or a combination of these is an essential feature for buyers. Your realtor will evaluate how many cars will the available parking accommodate?

?Type of Heating and Cooling. How is the home heated ? electric, natural gas, oil or propane? What type of air conditioning does it have? What is the quality and condition of the units, how old are they, and what type of maintenance has been done in the past?

?Basement. Whether there is only a crawl space versus a basement affects your selling price. Other features your realtor will evaluate is a partial versus a full basement, and whether it is unfinished, finished or partially finished.

?Other Home Features. Some other features your realtor will look for are a den or study, the amount of closet and storage space, the amount of kitchen cabinet and pantry space, and whether there is a pool, a guest house, and tennis court.

It is important to note that your realtor is viewing your home objectively. He or she is not tied up in the emotional attachments you have to your home, but rather looking at it from the perspective of the potential buyer. Additionally, some of those pricey improvements you made may not translate to a higher selling price. Many such improvement costs are rarely recouped from the sell of the home.

The Housing Market

After assessing your property, your realtor will take a closer look at your neighborhood and what its location has to offer. For instance, if there has been any bad publicity in your area, the value of your home may drop, especially if the publicity concerns a serious crime. On the other hand, if your home is located near some truly great schools with high scholastic achievements ratings, your home value could improve, as well as give you a great marketing edge.

Lastly, your realtor will assess the current housing market for your area. It used to be that you could locate a similar home in your neighborhood that had sold recently, add a ten percent increase, and you had your selling price. Home prices in the San Diego area, as well as in 75 other metro areas in the nation, have skyrocketed and are now on a slow decline, which makes for a volatile housing market. A poorly priced home means it could sit on the market overly long, ensuring you will have a difficult time selling it at all. Thus, it is even more important at this time to use an experienced realtor.

Ultimately, the buyer determines the actual selling price; however, an experienced realtor can ensure that you get the best price for your property and the fastest sale possible.

John Harris is an expert researcher and writer on real estate topics such as economics, credit improvement tips, home selling advice and home buying preparations. For more on San Diego Homes for Sale visit http://www.twtrealestate.com

What Is A Mortgage Contingency Clause In A Real Estate Contract

A mortgage contingency clause is a provision in the home purchase contract that stipulated that if the prospective buyer can not get a mortgage within a fixed period of time, this prospective buyer will be able call the whole deal off. In other words, the agreement is conditional on the buyer being able to obtain a mortgage on the property.

Be careful when dealing with contingency clause. Any real estate officer or loan officer will tell you that there is no universal standard mortgage contingency clause. The seller would prefer that the sale close no matter how high the interest rate and how awful the terms the mortgage carries for the buyer. But the buyer wants to be sure that if he cannot get the mortgage he is counting on, such as one with 90% financing on a 30-year loan, the mortgage at no more than a specific rate, he can stop the transaction and recover the down payment. Both the buyer and the seller need to get some security about the deal to happen. The seller may be too concerned that the buyer is leaving the transaction too uncertain. Therefore these provisions are often negotiated.

General contingency clauses are very often to a contract. You can find appraisal clause stipulating that the sale is conditional to a certain amount of the value of the house. House inspection clause stating contingencies that deal with the presence of insect and other toxic substances or with the tests to verify that a septic system or well is functioning properly. You will find thousands of contingencies clause. Everything comes down to your ability to bargain and deal with the seller. But the hardest to bargain is the mortgage contingency clause on the ground that it affects directly your financial commitment.

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Drum Beat Of Realty Downturn Off Key

One thing is for sure, real estate bubble headlines sell newspapers, not houses. Bubble this and bubble that, is your market one of the top over-priced ones? Comparisons to the dot-com crash, what's a home buyer to think? Exactly that, think, research and make educated decisions. Here is a reality check for those considering a home purchase.

-Residential real estate is moving away from being a speculative investment back to it's tried and true roots: shelter.

-The real estate market is not a centralized one like the stock market. The real estate market is made up of many thousands of micro or sub-markets. Each micro market performs differently and uniquely and does not always mirror national or regional trends.

-Ten states posted solid sales gains in the second quarter of 2006 versus 2005, reported the National Association of Realtors(R). The gains ranged from an impressive 48% in Alaska to a low of 5.3 percent in Georgia. The other eight states included Arkansas, Texas, North and South Carolina, Vermont, Tennessee, New Mexico, and Wyoming.

-Interest rates have been on the up-tick in 2006, ask any homeowner from the 1980's if they consider a 6 % mortgage too high, and they'll laugh you out of the room. From a historical perspective interest rates remain a bargain.

-Home buyers who read and believe the headlines and sound-bytes today and write a low-ball offer on a home are not buying houses. Homes that are well priced based on comparable's from the last six months and have updated kitchens and baths still sell the old-fashioned way; quickly.

-Agents from around the country report some homes are selling with multiple offers, over-full-price offers and in a matter of days. Upper-bracket properties are moving too. Though the frenzy of the last couple of years is not present in today's market.

-The market today in most areas is a balanced one, with the pendulum swinging back towards center. But Texas, Idaho, the Carolinas and other micro markets can still be sellers markets.

-Buyers need to realize that while they have more clout in many markets, they are still not driving the real estate market bus.

-Concessions by home sellers are signs of excess inventory. Concessions in new construction homes are more typical and shouldn't be arbitrarily carried over into resale home markets. Resale sellers though are now aware that they might have to offer repairs on home inspection items or help with closing costs to close a negotiation.

Mark Nash is the author of Fundamentals of Marketing for the Real Estate Professional, Starting & Succeeding in Real Estate, Reaching Out: The Financial Power of Niche Marketing, and 1001 Tips for Buying and Selling a Home. Mark is a contributing writer for: Realtor (R) Magazine Online, Broker Agent News, Real Estate Executive Magazine, Principal Broker, and Realty Times. He contributes residential real estate analysis to Business Week, CBS The Early Show, CNN, HGTVpro.com, The New York Times, The Today Show, and USA Today. View his books at http://www.1001RealEstateTips.com.

One Percent Real Estate Agents:Do They Exist?

If you are like many other Americans, you may be interested in selling your home. Selling your home may enable you to profit from the sale; however, many individuals are concerned with the fees associated with the sale. These fees most often come from a real estate agent. If you live in or around the Los Angeles area, you do not have to be afraid of real estate agent fees.

Los Angeles is a popular city. It is known all around the world. This popularity makes it a successful place to sell a home. If you live in or around the Los Angeles area, it is likely that you will seek assistance from a Los Angeles real estate agent. Using the services of a real estate agent will cost money, but Los Angeles residents have an advantage that many other American citizens do not. That advantage is a one percent real estate agent.

One percent? Yes, one percent. There are many individuals who have heard of a one percent real estate agent before, but many believe it only to be a myth. This untrue assumption can cost a homeowner thousands of dollars. One percent real estate agents do exist, but they may be a little bit difficult to find.

If you are interested in finding a one percent real estate agent in the Los Angeles area, you have a number of options. You can search for an agent by using your local phone book. Most phone books will not classify real estate agents by their fees; therefore, you may need to contact each real estate agent directly. When you contact a real estate agent or company, you need to determine how they will be paid their fees and at what percentage.

In addition to finding a real estate agent through your local phone book, you can also use the internet. There area number of online websites that are devoted to finding real estate agents in the United States. In addition to online real estate resources, it is likely that most real estate agents in your area will have an online website. Their online website should contain valuable information. If a real estate agent is a one percent real estate agent, it is likely that their online website would say so.

If you cannot determine whether or not a real estate agent is classified as a one percent real estate agent, you may have to contact them directly. When speaking to a real estate agent it is important to remember that there are one percent real estate agents available. It is possible that a competing agent may try and downplay the success of a one percent realtor. While it may be hard to believe in a one percent real estate agent, they really do exist.

As a homeowner, you have the ability to select whichever real estate agent you want to work with. Whether that real estate agent charges one percent, two percent, or three percent, you have the ability to decide. However, why would you want to pay more in real estate fees than you have to?

Brad Horn is a writer for 1 percent realtor where you can find a great resource for information regarding Los Angeles One Percent Real Estate Agent

Flipping and Capital Gains

A common dilemma for real estate investors is the issue of flipping and taxes. In this article, we look specifically at the tax issues associated with flipping and capital gains.

In recent years, people have been looking at the real estate market as they once looked at the stock market, eyes filled with dollar signs. Flipping became a popular real estate investment strategy to make fast cash. However, one thing that people forgot in their haste to play the game was to be properly prepared with the knowledge to avoid paying high taxes on their profits. Towards that end, here's some noteworthy information about taxes as you think about your flipping strategy.

First, in order to avoid overly onerous "ordinary income taxes" on flipping properties you must have the property treated as a capital gain. Most often, if you sell the property in less than a year, you will be taxed at the ordinary income tax rate, which can be in excess of 35 %. Only when you've held the property for more than a year, does the long-term capital gains tax of 15 % (for most tax payers) come into play. In order to have the property treated as a capital gain you must show that you had no intention of flipping that property. Ironically, this could entail holding the property for this extended period of time which counteracts the whole point of flipping - which is to make money fast.

Also, it's not only about "when" you flip, but about "how often" you flip. If you flip too often, the IRS may view that this strategy is your "trade or business" and therefore the profits you make are subject to ordinary income and self-employment taxes. And you don't want that.

Secondly, if you want to employ other strategies to avoid big taxes like installment or structured sales or private annuity treatment while flipping, you can't. Spreading tax out doesn't work because the property is not labeled investment property. This again goes back to issue of holding periods and intention of sale.

If you are hoping to use the 1031 exchange strategy as the approach for flipping and capital gains, again you will find yourself between a rock and a hard place. 1031 exchanges are reserved for investment properties only and if you can prove, through holding periods and intention, that the property is a capital gain or investment property, you will not be eligible. The IRS supports investors and savers, not speculators and gamblers.

Once most of your tax deferral options are exhausted, your last resort for flipping and capital gains may be to have that property re-characterized to a capital gain property by moving in to it and treating it as your personal residence. It may work, but holding even longer holding periods apply.

In conclusion, flipping can be an exciting and fast way to make money. But when it comes to taxes it is hard to make flipping and capital gains work together.

Buying Property? Look Before Leaping and Read the Survey

Especially for first time home buyers, title documents are confusing. Many assume that these documents are fine 'as is,' placing their faith in the title company, lender, or Realtors involved with the sale. If these documents are in error, however, the buyer is stuck with a lot of expensive title problems. The recorded instruments might even reveal that there is an entirely different property that was mortgaged, or that the neighbor can blade a road through what the buyer thought was his back yard.

Unfortunately, regardless of how confusing these documents might appear, the buyer has a responsibility to review the title issues. These documents should be provided to the buyer for inspection before the closing.

The Survey and Legal Description Are Related

Together, the survey and legal description (also known as a property description') combine to create the foundation of what is being purchased. These real estate documents describe in detail the boundaries of the land. An error in either the survey or property description can create costly troubles down the road.

Property descriptions and surveys are connected and need to be read together. A buyer can find the property description either within the deed itself or attached as an exhibit to the deed and other documents. The legal description absolutely must match the calls in the survey. If there is a discrepancy, the error needs to be corrected before the sale to avoid future title problems. To make sure this is corrected, the buyer needs to immediately notify the title company, his or her Realtor and perhaps the seller.

Types of Surveys

Surveys generally fall into two categories: rectangular surveys or metes and bounds surveys. Rectangular surveys are based on a system that was approved by Congress in 1785. These surveys read something like NW NW SW Section 24, Township 6 North, Range 12 East, Gila and Salt River Base and Meridian. This type of survey call describes a square 10-acre parcel of land in a section within a township and range within a state. The section itself is divided into 160-acre quarters, and these 160-acre quarters are divided into 40-acre quarters and 10-acre quarters, respectively. The rectangular survey is common in real estate transactions in the western United States.

Metes and bounds surveys, on the other hand, are based upon directional calls and bearings that were carefully made by a surveyor. They read something like THENCE North 10 degrees 20 minutes 16 seconds West, a distance of 1400 feet, and so forth.

Regardless of whether real estate is described by a rectangular survey or a metes and bounds survey, the survey and the property description must match exactly. This cannot be emphasized enough! When buying property, be sure to carefully compare the two.

Survey Stakes

Another important thing to do before buying real estate is to walk the land to make sure that the surveyor's stakes are located at the corners of the land. Sometimes there will be additional surveyor's stakes. Surveyor's stakes or pins are usually marked on the survey. Kids or vandals might pull these stakes out of the ground. If they are missing, make sure that the Realtor, title company, and seller are informed so that the problem can be corrected prior to closing.

Conclusion - Avoid Title Future Troubles

There is nothing worse than trying to correct property descriptions and title problems after closing. This can be an expensive problem that forces you to hire an attorney. The best way to avoid property line disputes is to review the property description and survey before signing any type of real estate contract.

Urbain C. Beck is a freelance writer who writes for several online and offline ventures. Urbain has learned how to read a survey and property description. A Realtor and Broker recommended tutorial shows first time property buyers exactly how to read and understand their surveys and title descriptions. More information can be found at http://www.surveyrecordings.com

"The Time Value of Money"

The time value of money (TVM) is an investment principle that states money is valued greater today than in the future due to inflation and economic conditions. Essentially, a dollar in your pocket today is worth more than a dollar in the future because money may be invested and earn interest over time. The notion of TVM is money is worth more the earlier it is received.

If you loaned a friend $20, would you rather get the money back today or a year from now? You should want the cash today. Think back to the price of movie tickets 10 years ago. The price for a movie ticket at one point was just a few dollars and has risen to almost $10 due to the factor of inflation. By receiving cash today, rather than the future, you can invest the money into an alternate source and potentially receive a higher return for your money. Future value includes the amount of money you would earn through growth in your investments in the future assuming a given interest rate. It is what the cash is worth at a particular time in the future, while present value refers to the value of a given sum of money today. The same principle applies to real estate notes. A real estate note, a mortgage for example, is created with specific terms, conditions and a length of time for its return. In order to exchange the note for cash, a note?s present value is determined through a discount analysis to appraise its current worth, which will differ from the note?s value in 10 years.

To demonstrate TVM and why it can be more advantageous to have money now rather than the future, consider the following example. If you own a real estate note that is appraised at present value for $150,000 you can cash out now and spend the money, or you can invest in alternate sources for a higher return on your investment. By receiving the money today, you can avoid dealing with late payments and the risk of not receiving a payment at all. Immediate cash appeals to most much more than receiving money in the future. The following illustration of TVM shows the change in value of $150,000 over a year if invested with a rate of return of 10 percent.

Future Value = (Present Value) x (1 + Rate of Return)

Future Value = (150,000) x (1 + 10%)

Future Value = (150,000) x (1.1)

Future Value = $165,000

Understanding the time value of money is essential to achieving financial success, as this concept allows you to evaluate the potential value of money today in comparison to the future. When you talk about mortgages, loans, car notes and retirement funds, the practical knowledge of time value of money can help you accomplish the wealth you have longed for.

Maria Fee is a mortgage professional, real estate investor, teacher, and master marketer with more than 20 years of business experience. Maria is the President of REMI KNOX, LLC, a group of investors who purchase real estate notes nationwide. Quoted by the media as an expert, she is continuously recognized for her extraordinary knowledge and real estate investing experience.

You too can discover hidden secrets to success with real estate notes. To take control of your financial future with proven strategies visit Maria's website at www.REMIKNOX.com. Happy investing!

Understanding The Real Estate Inflation Game

In the Fraser Valley?s rapidly expanding real estate market there are several elements to consider. You are probably aware of the concept of inflation. But just to recap, inflation means that the increasing cost of buying a service or a product (tangible or intangible). This decreases your purchasing power. For example, an item that cost perhaps 10 dollars ten years ago, now cost 50. People in today?s world that are on fixed incomes are very aware of their purchasing power of the Fraser Valley rental dollar.

This factor is very important to consider when renting your new home, apartment or townhouse in the lower mainland. The inflation rate in Canada varies at different times of the year and in different regions across the country. At one time Canada had what?s known as ?double digit inflation. However, currently in the Abbotsford, Burnaby, Coquitlam, Surrey, Langley, New West and Richmond area, inflation has stayed relatively low.

Naturally, the appreciation of property value over time includes inflation factors. And historically, land appreciation value for residential homes has been between 4 and 5 percent greater then inflation rate. When you buy a home in the Fraser valley your buying a home with inflated dollars. That is, you are probably getting more money now in terms of salary increases to pay off lesser-value money when you took out that original mortgage. So your beating the system!

Renting in the Fraser Valley can often be a disadvantage given our appreciating real estate in Abbotsford and Vancouver. In fact Every city across the Fraser Valley has been hit by the real estate boom and has experienced some level of Appreciation. This includes Richmond real estate, Burnaby, Coquitlam, New West, White Rock, Mission, Maple Ridge, and all other major cities across the lower mainland. Appreciating simply means the increase in value of the property over time. It is the growth in value of your original capital investment.

The national average of appreciation with real estate in the Fraser Valley is 5%. However, real estate in the lower mainland has seen gains as much as 25%. It?s important to understand that trends will go up and down. But with the 2010 Olympics coming up, interested rates staying under 10% and our economy the way it is, you?ll notice the real estate market will continue to clime. The ?rent BC? option has rapidly changed into a wealth building endeavor for any middle class investor.

Shane Toews is a Licenced Realtor who helps others to educate themselves on current real estate issues. He also provides assistance on how to locate quality homes, apartments or vacation rentals in Canada's Fraser Valley area. Visit his website RentFraserValley.com for more information on Canada's Fraser Valley Real Estate Market

Services Offered by Los Angeles Discount Real Estate Brokers

Are you interested in selling your current home? If you are, have you already started the listing process? If have recently decided to sell your home and have yet to take action, you are encouraged to fully examine all of your options before making a final decision.

If you live in or around the Los Angeles area, you can seek assistance from a real estate broker or a real estate agent. Real estate brokers and agents offer the same types of services. Generally, the only difference between the two is their name. Both offer services to individuals and families who are looking to purchasing a new home or to those that are looking to sell their home.

If you are like many other Los Angeles area residents, you may be concerned with the price of using a real estate agent or broker. There are a large number of brokers that charge a high fee for their services, but not all do. It is possible to find a discount real estate broker. Los Angeles has a large number of both types of brokers. To find a discount broker in the area, you may be required to do a little bit of research.

The research you do, to find a discount real estate broker, will include a number of different things. The first step in finding a discount real estate broker is to familiarize yourself with local brokers. This can often be done by using the internet or your local phone book. If you choose to use your local phone book, real estate brokers are often found under the business listing of real estate. Since phone books only provide a limited amount of information, you may be required to contact each broker individually.

Directly speaking to a number of discount brokers is a great way to determine how much each individual charges for their services; however, this process can be time consuming. If you want to find a discount real estate broker, but you do not have the time to spend hours or even day searching, you are encouraged to use the internet.

There are a large number of online broker websites. These websites should allow you to immediately determine whether or not you want to use the services of a particular discount real estate broker. Los Angeles resident have successfully been using the internet, for years now, to find qualified brokers.

No matter which search method you choose, you are sure to find at least one discount real estate broker. Los Angeles has a number of these discounted brokers. By taking the time to find them, you could retain valuable money from the sale of your home. This is because the fewer fees that you have to pay a real estate agent, the more you will profit from the sale of your home.

Brad Horn is a writer for 1 percent realtor where you can find a great resource for information regarding a Los Angeles Discount Real Estate Broker

Real Estate Investment Trusts

Royalty trusts, in Finance, are classic flow-through investments vehicles. The trust, like a mutual fund, holds a portfolio of assets, which can be anything from producing oil and gas wells to power generating stations to interests in land. The net cash flow, i.e. the total cash flow minus revenues, is passed on to the unit-holders as distribution.

The purpose of a Real Estate Investment Trusts is to reduce or eliminate corporate income taxes. In the United States, where they are generally more widespread as investment vehicles, Real Estate Investment Trusts pay little or no federal income tax but are subject to a number of special requirements set forth in the Internal Revenue Code, one of which is the requirement to distribute annually at least 90 percent of their taxable income in the form of dividends to shareholders.

Real Estate Investment Trusts are, therefore, a special type of royalty trust. They specialize in real property, anything from office buildings to long-term care facilities. For illiquid assets like real estate, closed-end funds of this type make good sense. Open-end or ‘mutual' real estate funds are subject to new money and redemption problems, entirely absent in closed-end trusts. The first Real Estate Investment Trust was introduced in the United States in 1960. The vehicle was designed to facilitate investments in large-scale income-producing real estate by smaller investors. The US model was simple, enabling small investors to acquire equity interests in vehicles holding large-scale commercial property.

But the birth of Real Estate Investments Trusts as a mass investment vehicle can be traced directly to the liquidity crisis encountered by open-end real estate mutual funds all the way back to 1991-92, during the slowdown of real estate that characterized those years. Faced with redemption demands on the part of unit-holders, real estate mutual funds were presented with the unpalatable option of selling valuable real properties into a distressed market to raise cash. Many of them, therefore, chose to close off redemptions and converted into Real Estate Investment Trusts, since then most commonly known as REIT's. Only a few open-end real estate mutual funds continue to own real estate directly. Most now invest in shares of real estate-related companies.

The typical REIT usually distributes about 85 to 95 percent of its income (rental income from properties) to the shareholders, usually on a quarterly basis. This income gets a special tax break, because REIT's shareholders are entitled to a deduction for the pro-rata share of capital cost allowance (depreciation on the real properties). As a result, a high percentage of the distributions are normally tax-deferred. However, the amount will vary from year to year and will differ depending on the particular REIT.

As with royalty trust, the value of tax-deferred income will reduce the adjusted cost base of the shares owned. For example, if an investor purchases 1,000 units at $15.50 per unit, receives $3,000 ($3.00 per share) in aggregate tax-deferred distribution over time, and the sells the shares for $17.50 each, the capital gain will be calculated as follows:

[1,000 x ($17.50 - $15.50 + $3.00) = $5,000 before adjustments for commissions. In Canada, this gain will be subjected to capital gain treatment, so only 50 percent or $2,500 will be included in income and taxed accordingly. In fact, Canada allows preferential tax treatment to REIT's by making them RRSP-eligible and by not considering them foreign property (which would taxed at a higher rate), so long as the real estate portfolio does not contain non-Canadian property in excess of the allowable limit.

REIT's yields and the market price of units tend to be strongly influenced by interest rates movements. As rates drop, prices of REIT's rise thus causing yields to drop. On the other hand, when interest rates rise, prices of REIT's drop thus causing yields to rise.

For example, when interest rates were pushed up by both the Federal Reserve Board and the Bank of Canada all the way back in 2000, the typical REIT was yielding close to 14 percent as prices per share fell. When interest rates subsequently dropped, yields fell to less than 10 percent as demand for REIT's increased thus pushing share prices higher.

This is a very important consideration to be kept in mind when investing or otherwise trading units involving this type of trusts. If interest rates appear to be poised to rise, investors may want to defer purchases, and those who own this type of shares already may consider reducing their exposure by selling and take in some profit.

There are typically two catches with REIT's. The first is that since investors are ‘unit-holders' rather than shareholders, they are potentially jointly and severally liable together with all other unit-holders (plus the trust itself) in the eventuality of insolvency. Instead of limited liability, investors rely on the REIT's management to have property, casualty and liability insurance, prudent lending policies and other reasonable safeguards in place. Nevertheless there is always the possibility of a problem - say a catastrophic fire or a building collapse - that is not covered by insurance. This may have seemed like a very small matter prior to the attacks on the World Trade Center in 2001. Since then, however, it is something that has to be taken seriously.

The second problem with REIT's is less transparent. All real estate properties depreciate in value over time (not the land, only the buildings). Depreciation can be somewhat slowed down by earmarking at times significant amounts of money for maintenance and renewal of facilities. Since most of the REIT's income is being distributed and the capital cost allowance is being allocated to investors, investors are factually getting their own capital back over time. As such, the book value of the underlying real properties will be steadily depleting.

Obviously, if real estate markets are on the upswing the depreciation factor will not be overly important, since it will be offset by the appreciation of the underlying assets. But in essence, the point is that the long-term income stream is quite variable, certainly more variable than some managers would have investors believe.

As stated above, the inverse relationship between interest rates and prices of REIT's shares plays an important role. On average, it is safe to assume that interest rate increases are likely to be met by REIT's price declines in the Stock Exchange, because increasing rates correspond to a slowdown in the economic growth and less demand. But out of the context of the frantic buy and sell of Wall Street, even a slowdown in the market for single-family houses can actually benefit REIT's. This is so, because even though real property prices are in decline, it is still cheaper to rent than to own, especially during a period of rising interest rates. And REIT's thrive on rentals. In fact, no city is a better environment for REIT's to operate in than New York City, where some 70 percent of residents rent.

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 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.

Home Sellers Now is the Time to Make a Change

The mechanics of selling a house is on the road to change. In Southern California, specifically the Inland Empire of Riverside and San Bernardino Counties, where I have practiced for many years, Sellers are beginning to feel the change in buyers attitudes.

Buyers are now expecting to pay a little less for a home then they did about a year ago. Todays prospective buyer is spending a lot more time looking on the internet even before they contact a real estate agent to see what housing prices are like and what interest rates to buy those homes are doing.

I am a Real Estate Agent and a Loan Specialist, and have been watching the real estate market and the interest rates change for the past several months.

Today, for a Seller to sell their home in a timely manner, the price must now be within the actual market prices or below. The days of putting your house on the market and have it sell almost immediately are gone. There is a lot more to it now.

1. There are many listing agents making sure that the commission offered to a selling agent is either at the old normal rates or above, so that an agent who is looking for a property for a client will show and sell that particular home. I have seen several offering 3.5% and 4% to the selling agent with bonuses, plus sellers are willing to help with buyer closing costs.

2. The next obstacle to overcome is how the home shows to prospective buyers. You need to remember that now there are more homes on the market, giving buyers a lot more choices. You, the seller, want your home to show at its best.

3. This leads us to the ?Staging? of a home. Less is always better. If your home needs painting, paint it. If your carpets need to be cleaned, clean them. Set your dining room table with nice tablecloths and nice dinner ware. Take most everything on your kitchen counter tops off. If your living room or family room looks like there is too much furniture, make it disappear. Rent a storage space if necessary. Even closets and pantries need to be neat and tidy. Buyers tend to look everywhere. There are still many new homes being built, go and check them out. See how a professional stages a model home.

4. A First Impression is Everything. Your agent will normally take photos of your home and the one that goes on the Multiple Listing Service, Realtor.com, etc., is the front of your house. Water the lawn, clean up by the front door, put potted plants if you can, and make sure when your agent takes pictures that no cars are in the way. This first photo will also have a bearing on what the agent thinks. Will that agent even tell a prospective buyer that your house is for sale?

5. Landscaping I have seen some properties offered that because the seller has no landscaping in the back yard that the buyer will get an allowance at the close of escrow. If you can, and have the time, put down some fertilizer and grass seed and put in your own back yard. This can really make a difference. Always keep in the back of your mind, you?re the seller who wants their house sold. A Buyer has lots more choices today and would probably go on to the next house if they felt they had to put several thousand dollars into a back yard that they wouldn?t have to spend with another house.

First and foremost, buyers are just as conscious of money and how much they spend as you are on how much you can actually get for your house and move on to the next one.

My views and comments are based on my personal research and should not be consrued as anything else.

Patti Schopper

Contact Patti with any questions you may have regarding selling your property or purchasing a new property at: http://www.realestateandloans4you.com

Patti Schopper has been in the real estate industry over 36 years. Her goal has always been to put her clients first.

Housing Bubble Cool Not Popped

Has the housing bubble finally burst? Or has it cooled down?

According to DataQuick Information Systems ?A total of 27,286 new and resale homes were sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was up 10.3 percent from 24,748 for the month before, and down 11.7 percent from 30,886 for May a year ago.? Statistics like these may support that the real estate market?s bubble hasn?t necessarily popped, but has slowed down.

Other facts that DataQuick published, the move-up category of home sales, when homeowners literally move up from a 2 bedroom home to a 3 bedroom home, have slowed down. But the entry-level homes and mid-range home sales have not slowed down and those prices are still rising, but at a slower pace.

Foreclosures are showing a moderate increase in numbers which means this market could be easily tapped by home buyers and investors. There are a number of sites on the Internet which make it easy to access information on foreclosure properties, including PoliceAuctions.com , a site that allows it?s subscribing members to access over 2653 government auctions in its database which include residential and commercial properties. The site will also allow its members to access listings for thousands of foreclosure properties.

Trends culled from DataQuick support the idea that the real estate bubble hasn?t popped, but has cooled down. This cooling trend maybe more apparent in some areas, but otherwise the real estate market overall is still healthy.

Are Realtors Really More Ethical than Real Estate Agents?

Recently a local newspaper ran an ad, cleverly disguised as an article, about why real estate buyers and sellers should always use a Realtor.

The article explained the Realtor Code of Ethics and how it ensured that each and every Realtor treated customers, clients, and other Realtors with utmost honesty. It made me think about an incident that happened when I opened a new agency and joined the Board of Realtors.

During our first week in business I got a visit from a competitor. He was there to tell me he was glad I'd joined the Realtor's association so there would be two of us in the community who followed a code of ethics. That would have been very nice, but for one thing. This man was known as a shady dealer.

It is no more realistic to think every Realtor follows the Code of Ethics than to think every licensed driver follows the rules of the road. It's pure nonsense. It is true that Realtors try to police each other, and Realtors who flagrantly ignore the Code of Ethics are subject to peer review, hearings, fines, etc. But the same holds true for drivers who break the law. Each is subject to punishment if caught, but those who want to ignore the rules go right ahead and do it.

So how can a buyer or seller find an honest agent? By reputation. By talking to other people who have used that agent in the past.

If you're a seller you probably live in the vicinity and have plenty of resources because you know people in the community. Everyone at work, at the restaurants you frequent, at the filling station, and even at the stores where you shop is a source of information. Just mention that you're thinking about selling and people will gladly jump in to tell you about experiences both good and bad. In fact, if they've had a bad experience they'll delight in telling you!

If you're new to a community, it?s a little more difficult, but not impossible. You can ask friends or family who already live there, and then you can chat with the waitress, the store checker, the gas station attendant, and even the bartender at a local night spot. If you're moving to step into a new job, ask the person who hired you for recommendations.

Whatever you do, don't sign a buyer agency agreement until you feel sure you've found the right agent. Spend a little time talking with the agents you're considering. Choose someone you feel comfortable with - and someone with some expertise and interest in the kind of property you're looking for. Some agents know all about land while others know all about waterfront mansions and others specialize in finding fixer properties.

If you're selling, find an agent who is expert in your kind of property. He or she will be able to answer your questions properly and will have contact with more potential buyers, as well.

Find an honest agent who fits and your real estate transaction will be pleasurable. It won't matter if he or she pays dues to the Board of Realtors or not.

Marte Cliff is a Freelance Copywriter who specializes in writing for real estate and related industsries, as well as writing for animal non-profits.

A 19-year veteran of real estate sales, she brings both knowledge and experience to her work. She offers a free critique of your current ad copy - not limited to real estate. E-mail her at writer@marte-cliff.com for details.

Marte publishes a weekly real estate marketing ezine. Subscribe at: realestatehelp@getresponse.com. Visit her at http://www.marte-cliff.com and learn about her two e-books: Getting Clients and The Land Buyer's Survival Guide.

Should You Buy Real Estate Now?

As has been reported in the media lately, the real estate market has cooled off dramatically. This raises the question of whether you should buy now or wait for a bit for prices to fall further.

Should You Buy Real Estate Now?

First off, timing anything in the financial arena can be a bit of a misnomer. History has shown that real estate is a good investment over time regardless of when you buy. Real estate also has the secondary benefit of being something you can actually live in even if the value drops, a dramatic difference from stocks which make very leaky homes. While stocks can be traded on a daily or hourly basis, the nature of homes is such that you pretty much have to sit on your investment for some time regardless of how the market is going. That being said, the market always heats up again. The time it takes for it to do so is time you can build equity in your property by paying down the mortgage.

If the market is cooling down now, does this present you with the golden opportunity to purchase properties at a discount now? Maybe or maybe not. Every location in the country is different. While formerly hot markets like San Diego are definitely beginning to stagnate, other local markets like Jacksonville are actually picking up. In practical terms, the first thing you need to do is evaluate what is happening in your local market.

If your local market is cooling down like much of the nation, you are definitely coming into a better position as a buyer. The reason primarily has to do with the timing of previous buyers during the hot phase of the real estate market. Those that got in during the beginning of run up, say five years ago, are sitting pretty on big appreciation gains and will be able to handle any temporary dip in prices. These people are not going to be interested in dumping their properties, but another group certainly is going to.

Imagine purchasing a property in March of 2006. You would have picked up the property at literally the highest point in the market. As real estate cools down, so does the value of your property. Demand for homes is dropping, which pushes prices down. Individuals that bought during the last year of the seller?s market are facing going upside down on the mortgages. Unfortunately, many of them have no realistic way of getting out of the mess. This means foreclosures by banks. Yes, it is going to be one of those periods again.

If you are considering buying, it may be worth waiting till the end of 2006 or early 2007 to see how the market is doing. My suspicion is prices will drop significantly as more and more properties come on the market.

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

Find Real Estate Notes

The Internet is an ideal place to look for real estate notes. Lots of websites offer information on real estate notes for sale. These websites contain relevant information such as the value, dates and contact numbers. Websites often provide long lists of real estate notes offered for sale. Those advertisers charge you a small fee for their services. The greatest advantage of an online search is that you can compare prices and assess the viability of several real estate notes. You can also aim for high discount rates.

Lots of real estate note brokers are out there. They can advise you on where to find real estate notes and how to purchase them profitably. Real estate note brokers are able to tell you about the odds of purchasing. If you hunt for real estate notes on your own, you will have to handle the paperwork associated with the deal. Real estate note brokers can do the paperwork for you and help you observe all legal formalities. As all real estate dealings can invite legal complications, it is highly advisable to seek the help of an agent or broker. You will have to pay a small fee for the services of real estate note brokers.

Real estate notes are also often advertised in newspapers and real estate journals.

Another way to find real estate notes is through family, friends and well-wishers. Yet another method is to keep track of the real estate business in your area. Through this, you can get an idea of the real estate notes that exist in your area.

Sell Real Estate Notes provides detailed information on Find Real Estate Notes, Real Estate Note Brokers, Real Estate Note Buyers, Real Estate Note Listings and more. Sell Real Estate Notes is affiliated with Sell House By Owner.

Most Washington DC Suburban Middle Class Neighborhoods in Real Estate Housing Decline

Even with all the massive government spending in Washington, DC and all the overpaid jobs in all the corporations leaching off the government we still find that the economy is topping off. It is evident that this is happening due to the real estate prices locally fair in Washington, DC.

Many of the counties above Washington, DC in Maryland have a zero growth in real estate prices and have completely topped out. The prices are not coming down yet, but they will soon. It is interesting to watch Washington, DC suburbs and to the real estate growth, top and a decline, as it shows us that Washington, DC is suffering the same fate as Silicon Valley after the.com bubble burst.

In the suburban areas the low Washington, DC in Virginia there is a negative change in the real estate prices of between 2 to 5% drop and this has occurred in the last quarter and is expected to continue to decline. We will most likely see the Maryland suburbs do the same thing within the next quarter.

Eventually the federal government of the United States of America will have to stop spending and wasting taxpayers money and as they do this we will see many corporations laying off employees because they can no longer sponge off the incredible cash flow expenditures of the federal government. Of course Washington, DC although unique in the massive amount of cash flow coming from the government is not unique to the real estate market across the country.

It is interesting that so many people thought that this real estate boom would never stop. Apparently they did not study the flows and cycles of the real estate boom and bust that are so common to the Washington, DC area and the federal government's fiscal policies. Please consider this in 2006.

Lance Winslow - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs/

The Difference Between a Real Estate License and Broker License

You've decided that you want to get your real estate license. You've heard of a broker license too. What is the difference between these two real estate professions? Unless you've been involved in a real estate transaction or are familiar with the careers, you might not know the exact differences.

If you want to pursue your real estate license, you should thoroughly understand the similarities and differences.

All states require that real estate sales professionals, including salespersons and brokers, be licensed by that state. Brokers will generally be required to complete more real estate education and experience than a salesperson.

A real estate agent is usually an independent contractor who provides his or her services to a licensed real estate broker on a contract basis. In return, the real estate broker pays the salesperson a portion of the commission earned from the agent's sale of the property.

Real Estate Salesperson - An individual who can show property for sale on behalf of a seller, but who may not have a license to transact the sale and collect the sales commission.

* Assist sellers in marketing their property and selling it for the highest price.
* Assist buyers in purchasing suitable property for the best possible price.
* Acts as an intermediary between the buyer and seller.

Real Estate Broker - A person licensed by his or her particular state to charge a fee for bringing a buyer and a seller together to purchase real estate.

* Assist sellers in marketing their property and selling it for the highest price.
* Assist buyers in purchasing suitable property for the best possible price.
* Acts as an intermediary between the buyer and seller.
* Buys and sells real estate for a company or individual on a commission basis.

Real estate salespersons and brokers perform many of the same duties including: obtaining listings, determining sales price; showing properties; assisting with financing; selling property; overseeing inspections, and more.

The state examination, which is more comprehensive for a real estate broker than an agent, includes questions on real estate transactions and laws affecting the sale of property. Most states require that a real estate salesperson complete between 30 and 90 hours of instruction. A real estate broker needs between 60 and 90 hours of real estate education and a specific amount of experience selling real estate (usually 1 to 3 years).

http://www.realestatelicense.com

Heather Brunson is a lead marketing writer for Allied Schools. She has a B.A. in Journalism with an emphasis on public relations. She has additional experience in technical writing.

Charlotte North Carolina Real Estate

Charlotte is one of the quainter lands within North Carolina. This region was established 250 years ago by Scottish and Irish immigrants and is a conjunction of two different cultures. This region has two popular lakes, Norman and Wylie. The property around these lakes is considered to be valuable in Charlotte.

The entire town of Charlotte is divided into nine zones ? uptown, northeast, east, old south, new south, southwest, northwest, Lake Norman and Lake Wylie. These divisions are based on the properties located in these regions. The lakes Norman and Wylie have some very expensive properties on their banks, having average values of $369,000 and $315,000 respectively. The region of old south in Charlotte still has old style Victorian bungalows and is a competitor to ?the most expensive real estate in Charlotte. It also has properties averaging about $326,000. The northeast region of Charlotte is the least desirable property, mainly owing to a mixture of old world charm and a business center side by side. As it is easily accessible to highways 1-77 and 1-85, this region is bustling with traffic y. Properties in northeast Charlotte can be obtained at as low as $155,000; almost half the value of lake property.

Charlotte has a large number of exclusive buyer agents. These agents do not get their commissions from sellers, but from the buyers. Therefore, they are interested in securing as low a price for the buyer as possible. Most exclusive buyer agents within North Carolina are members of the National Association of Exclusive Buyer Agents.

North Carolina Real Estate provides detailed information on North Carolina Real Estate, Charlotte North Carolina Real Estate, Raleigh North Carolina Real Estate, North Carolina Mountain Real Estate and more. North Carolina Real Estate is affiliated with Connecticut Commercial Real Estate.

Real Estate Investment Trusts

Royalty trusts, in Finance, are classic flow-through investments vehicles. The trust, like a mutual fund, holds a portfolio of assets, which can be anything from producing oil and gas wells to power generating stations to interests in land. The net cash flow, i.e. the total cash flow minus revenues, is passed on to the unit-holders as distribution.

The purpose of a Real Estate Investment Trusts is to reduce or eliminate corporate income taxes. In the United States, where they are generally more widespread as investment vehicles, Real Estate Investment Trusts pay little or no federal income tax but are subject to a number of special requirements set forth in the Internal Revenue Code, one of which is the requirement to distribute annually at least 90 percent of their taxable income in the form of dividends to shareholders.

Real Estate Investment Trusts are, therefore, a special type of royalty trust. They specialize in real property, anything from office buildings to long-term care facilities. For illiquid assets like real estate, closed-end funds of this type make good sense. Open-end or ‘mutual' real estate funds are subject to new money and redemption problems, entirely absent in closed-end trusts. The first Real Estate Investment Trust was introduced in the United States in 1960. The vehicle was designed to facilitate investments in large-scale income-producing real estate by smaller investors. The US model was simple, enabling small investors to acquire equity interests in vehicles holding large-scale commercial property.

But the birth of Real Estate Investments Trusts as a mass investment vehicle can be traced directly to the liquidity crisis encountered by open-end real estate mutual funds all the way back to 1991-92, during the slowdown of real estate that characterized those years. Faced with redemption demands on the part of unit-holders, real estate mutual funds were presented with the unpalatable option of selling valuable real properties into a distressed market to raise cash. Many of them, therefore, chose to close off redemptions and converted into Real Estate Investment Trusts, since then most commonly known as REIT's. Only a few open-end real estate mutual funds continue to own real estate directly. Most now invest in shares of real estate-related companies.

The typical REIT usually distributes about 85 to 95 percent of its income (rental income from properties) to the shareholders, usually on a quarterly basis. This income gets a special tax break, because REIT's shareholders are entitled to a deduction for the pro-rata share of capital cost allowance (depreciation on the real properties). As a result, a high percentage of the distributions are normally tax-deferred. However, the amount will vary from year to year and will differ depending on the particular REIT.

As with royalty trust, the value of tax-deferred income will reduce the adjusted cost base of the shares owned. For example, if an investor purchases 1,000 units at $15.50 per unit, receives $3,000 ($3.00 per share) in aggregate tax-deferred distribution over time, and the sells the shares for $17.50 each, the capital gain will be calculated as follows:

[1,000 x ($17.50 - $15.50 + $3.00) = $5,000 before adjustments for commissions. In Canada, this gain will be subjected to capital gain treatment, so only 50 percent or $2,500 will be included in income and taxed accordingly. In fact, Canada allows preferential tax treatment to REIT's by making them RRSP-eligible and by not considering them foreign property (which would taxed at a higher rate), so long as the real estate portfolio does not contain non-Canadian property in excess of the allowable limit.

REIT's yields and the market price of units tend to be strongly influenced by interest rates movements. As rates drop, prices of REIT's rise thus causing yields to drop. On the other hand, when interest rates rise, prices of REIT's drop thus causing yields to rise.

For example, when interest rates were pushed up by both the Federal Reserve Board and the Bank of Canada all the way back in 2000, the typical REIT was yielding close to 14 percent as prices per share fell. When interest rates subsequently dropped, yields fell to less than 10 percent as demand for REIT's increased thus pushing share prices higher.

This is a very important consideration to be kept in mind when investing or otherwise trading units involving this type of trusts. If interest rates appear to be poised to rise, investors may want to defer purchases, and those who own this type of shares already may consider reducing their exposure by selling and take in some profit.

There are typically two catches with REIT's. The first is that since investors are ‘unit-holders' rather than shareholders, they are potentially jointly and severally liable together with all other unit-holders (plus the trust itself) in the eventuality of insolvency. Instead of limited liability, investors rely on the REIT's management to have property, casualty and liability insurance, prudent lending policies and other reasonable safeguards in place. Nevertheless there is always the possibility of a problem - say a catastrophic fire or a building collapse - that is not covered by insurance. This may have seemed like a very small matter prior to the attacks on the World Trade Center in 2001. Since then, however, it is something that has to be taken seriously.

The second problem with REIT's is less transparent. All real estate properties depreciate in value over time (not the land, only the buildings). Depreciation can be somewhat slowed down by earmarking at times significant amounts of money for maintenance and renewal of facilities. Since most of the REIT's income is being distributed and the capital cost allowance is being allocated to investors, investors are factually getting their own capital back over time. As such, the book value of the underlying real properties will be steadily depleting.

Obviously, if real estate markets are on the upswing the depreciation factor will not be overly important, since it will be offset by the appreciation of the underlying assets. But in essence, the point is that the long-term income stream is quite variable, certainly more variable than some managers would have investors believe.

As stated above, the inverse relationship between interest rates and prices of REIT's shares plays an important role. On average, it is safe to assume that interest rate increases are likely to be met by REIT's price declines in the Stock Exchange, because increasing rates correspond to a slowdown in the economic growth and less demand. But out of the context of the frantic buy and sell of Wall Street, even a slowdown in the market for single-family houses can actually benefit REIT's. This is so, because even though real property prices are in decline, it is still cheaper to rent than to own, especially during a period of rising interest rates. And REIT's thrive on rentals. In fact, no city is a better environment for REIT's to operate in than New York City, where some 70 percent of residents rent.

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 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.

Property Foreclosure

When a person buys a home, he has to take a loan regularly. The lenders, generally banks, keep the title to home collateral in this case. When the person is unable to pay the dues and payments in time, the ownership of the home is moved to the lender. Transferring of ownership to lender is called Foreclosure. Buying foreclosure has been compared to playing poker. Considering as an investment, it has its own risks. First the lenders will check out if there are any junior liens. When they find any pending loans, they pay off everything so that they themselves have clear title to the property. Once this is done, the lender adds up all costs to the loan amount to be recovered, and again resells the property so that they can convalesce the expenses together with the loan amount. This is an ideal time for investors to buy such property. Buying a property that has been foreclosed already has many gains.

The foremost and well-known benefit is the fact that all properties bought from lenders will have clear titles and ownership rights, thereby saving you the difficulty of doing any research. Next fact is that the foreclosure is not for profit booking. When the lenders sell foreclosed property they need their money back, so they are ready to sell the property cheaper than what it could have obtained in open market under normal conditions. The first step of buying foreclosure is to gather information. The best idea is to make a database in a specific manner so that you will have separate data on all the properties and markets in clear sets. The next step is to directly get in touch with the foreclosure owners and start negotiating with them. If you have the address of property but not the name, online directories may help you to find the pertinent names. Buying foreclosure property as a beginner on your own can be risky and if you are trying to buy such properties get help from agents.

One of the risks occurring is that when buying foreclosed property at auction, give just a week to deposit all the cash, and if you fail to do so, you may lose all your deposit at certain times. But as you keep on investing and making money, you can gain experience about bad construction, poor soils, problems with septic systems etc. Background reading and relevant information is extremely important before you get into foreclosure investing. Foreclosure laws in your state, priority of liens, bidding at auctions, title insurance, and bankruptcy are some key areas where you should obtain complete knowledge. You will be able to make better and safer investments in this way particularly. Property investment is not an easy game, and must be played only with caution and care. Little concerns for the person whose property is up for foreclosure are necessary for this process. But you can easily cut down the process of foreclosures into three primary stages. The first stage is pre-foreclosure, second stage is foreclosure auction and the third and final stage is bank owned foreclosures.

In general as you move along the timeline of the foreclosure process your potential for profit will diminish the latter you get to the foreclosure a property. If you're planning on making a full-time living eventually from real estate investment then you'll want to learn in baby steps how to get the most out of your time and efforts without any doubt. With that saying for those who are ambitious enough to do this full time work you have to learn how to find pre-foreclosures because they normally offer you the utmost leverage and profitability relevant to the most deep discounted properties available via bank owned properties.

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

Real Estate Brokers Using PPC To Generate Online Real Estate Referrals

The housing market is hot and there is a lot of commission to be made for real estate brokers that sell homes. Competition for new business is fierce and the enterprising real estate broker uses all means possible to generate real estate referrals, including online generation of real estate referrals and sales leads.

One of the easiest ways for real estate brokers, especially new brokers, to generate real estate leads and referrals is through PPC advertising on internet search engines such as Google, Yahoo, and MSN. If you are not already doing so, know that competing real estate brokers are generating their fair share of real estate referrals on the internet. You should too.

Home buyers are, more and more, searching for home buying services on the internet. You need to have a presence to gain these people as prospects.

If you are just getting started with generating real estate referrals and leads via PPC, I've compiled a sample list of keywords that you can use to start to target home buyers that are doing online searches. The following is a short sample list. Of course the keywords that you choose should be directly targeted to the market that you target. In no particular order, here they are:

• First time homebuyer in Philadelphia, Pennsylvania
• New York, NY apartments
• Dallas real estate agent
• Vacation properties in Hawaii
• Mortgage rate calculator
• Toronto Remax realtor
• Phoenix, Arizona housing market trends
• Buying a new home in Cleveland, Ohio
• Miami Beach, Fl real estate
• Wilmington, NC real estate broker
• Real estate negotiation
• American mortgage rates
• Century 21 Realtor in Memphis, Tennessee
• Chicago commercial real estate
• Denver, Colorado condos for sales
• Calgary, Alberta house values
• San Diego, California investment properties
• Ottawa, ON MLS listings
• Portland, Oregon housing prices
• Buying a home with bad credit

Of course, when developing your own keywords to generate real estate referrals, substitute any of the cities above with the city that you work in.

Tino Buntic invites you to visit http://www.trade-pals.com. Tradepals provides free sales leads and business referrals, including real estate referrals, to business professionals across The United States and Canada. Tino also recommends the Real Estate and How Blog as a real estate news source for real estate professionals.

The Issue of Furniture and A Prospective Home

A home is not a stand alone object when it comes to living life. When considering making an offer on a home, the issue of how one?s furniture will look in the property comes up.

The Issue of Furniture and A Prospective Home

When selling a home, you can tell when a potential buyer is serious when they start doing a certain thing in your home. First, they start walking around with their hands forming a virtual frame like an artist. Alternatively, they may whip out a tape measure and actually start mentally marketing off rooms. This occurs because they are trying to project their furniture into the property.

When sizing up a potential home for purchase, buyers almost always start trying to envision how their furniture will fit into the property. If they cannot ?see the fit?, they may pass on the home. In general, this is a bad idea.

First and foremost, the furniture you have accumulated over the years is never, ever going to be a perfect fit in a new home. The only exception would be if you are buying the same exact floor plan, which will be an extremely rare event. Regardless, the furniture isn?t going to fit and you should not evaluate the merits on this basis.

Which is more difficult ? finding the perfect home or finding new furniture? Which is going to appreciate over the next few years? The answer to both questions is clearly the home. When house hunting, it is vitally important that you evaluate the home sans furniture considerations. You can always buy different furniture. Yes, you have probably put together a nice collection, but its value will never equate to a good property buy.

So, what happens if you have unique furniture that is either hard to find, a family heirloom or some other situation? As surprising as this may sound, you should still discount it when evaluating the merits of a particular property. You are buying the home for your personal comfort and investment, not for the concerns of the furniture. You can always store that unique furniture or give heirlooms to a family member.

There are many factors that go into the decision to purchase a property. Determining whether your furniture goes with the property or fits should not be one of them.

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

July Foreclosure Activity Increases

There was an 18% year-on-year increase in July foreclosure filings, according to RealtyTrac. The month saw 92,845 filings.

That is one new foreclosure filing for every 1,245 households.

While foreclosure activity continues to remain slightly below historical averages, there looks to be a significant amount of upward pressure on foreclosure rates in the next few months, siad James J. Saccacio, chief executive officer of RealtyTrac.

First, the billions of dollars in ARMs projected to reset in the third and fourth quarters could increase monthly mortgage payments for many homeowners, Saccacio explained. And the cooling real estate market exacerbates the problem for these homeowners by making it tougher for them to sell at a high enough price to pay off their loan balance.

Colorado had the highest rate of foreclosures in the country, with a new foreclosure filing for every 480 households. The state has had the highest foreclosure rate for five straight months.

Colorado saw an increase of 3% in foreclosure filings for the month, and a 55% increase for the year. The state reported 3,810 households entering some form of foreclosure.

Nevada had the second highest foreclosure rate for the second month in a row. There was one new foreclosure filed for every 533 households. There was a 31% increase in foreclosures for the month with 1,626 households entering some stage of foreclosure.

Texas led the country in the most foreclosures with 12,103 filings. The state has remained in this position for eight consecutive months. There was a 15% increase in foreclosures when compared to June.

Six states, including Texas, Florida, California, Michigan, Ohio and Illinois, represented 54% of the nation's foreclosure activity in the past month.

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

House Approves Increase in FHA Limits

The House of Representatives approved a bill to increase the FHA's lending limits and reduce payment restrictions.

The bill, which will help low-income and first-time home buyers, was sponsored by Ohio Representative Bob Ney. It received almost unanimous support by the house with a 415-7 vote.

The factors in determining the maximum amount insurable by the FHA for single-family homes will be changed as an amendment to the National Housing Act, according to the new law.

The bill allows the FHA flexibility in insuring mortgages up to the median home price in areas where home prices are extremely high. It will also provide for a maximum of 40-year mortgage terms.

The bill will eliminate all flat mortgage insurance premiums, instead instuting a tiered premium system according to the property's loan-to-value ration, the borrower's credit history and debt-to-income ration and the FHA's experience with comparable borrowers.

The current minimum downpayment of 3% will be discarded. The limit on federally insured reverse mortgages will also be eliminated

The law will allow loans to be more easily made in high-cost areas. For years, low-income buyers have been pressured to take out high-cost private mortgages due to the substantial increases in house prices in metro areas.

The FHA hopes that the new law will change this trend.

Modernizing FHA will improve competition in the prime home loan mortgage industry and effectively assist the industry in combating abusive and discriminatory lending practices, said Ney.

This bill helps further increase the country's homeownership rate, especially among low and moderate-income and minority families.

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

Scottsdale Arizona Real Estate Agent

A real estate agent is someone who facilitates real estate deals. Real estate agents market a property to be sold and try to get the best possible price and terms for their clients. If a client wants to buy a property, the agent ensures that the client gets the best possible deal. According to US law, a person needs a permit to act as a real estate agent in Scottsdale.

Scottsdale is the fifth largest city in the US. Scottsdale is growing fast especially in the northern regions of the city. There is a huge increase in the number of new residents every year. Increase in population directly results in an increasing demand for accommodation. This makes the real estate business a thriving business opportunity and many real estate agencies make use of this opportunity. Excellent climatic conditions, low tax rates and low housing costs are some of the other factors that contribute to the growth of the real estate industry in Scottsdale.

In a booming real estate industry, contrary to expectations buying or selling is not an easy task. Though there is sufficient demand, an amateur would find it a challenge to reach out to more buyers or sellers or strike a fair price on a deal. This is the chief reason for many property owners and buyers deciding to deal with an agent. Agents work on a commission basis but this does not deter people from dealing with them as long as they are able to strike lucrative deals. A single real estate agent can handle the case of both the buyer and the seller, provided he has the consent of both parties to do so. An agent is more experienced in property matters, trends and market conditions and will use this expertise to negotiate on behalf of clients. A large number of real estate agents operate in all the major cities of Arizona including Scottsdale Research on the Web or a quick scanning of the local Yellow Pages can help find an agent. It is important to talk to more than one agent simultaneously for a better chance of either buying or selling a property.

Scottsdale Real Estate provides detailed information on Scottsdale Real Estate, Scottsdale Arizona Real Estate, Scottsdale Arizona Real Estate Agent, Scottsdale Real Estate Agent and more. Scottsdale Real Estate is affiliated with Tucson Residential Real Estate.

3rd Party Buying Tips What You Need To Know

Save Your Money and Be Smart!

As your investment profile grows larger and larger you?ll notice that assigning a family member, wife or good friend to a home could be a definite advantage on your overall net worth. Especially in a rising real estate market where you can re-sell the property at a higher price before the completion date. Since half the property value is added onto your net worth, depending on the tax bracket your in, it might prove necessary to do a 3rd party buying. In this situation it?s important that in your contract you do not use ?and or nominee?. But rather be straight forward with the name of who the purchaser is.

The general rule is that a buyer may assign their rights under the contract as long as they do not prejudice the rights of the seller. The seller must know who the buyer is. However, if the seller does not feel her rights are prejudiced then the seller may consent to the assignment identity not to be required. This is provided that you have notice in writing of the assignment. Both buyers and sellers should receive copies of this from their realtor.

If your still debating whether or not to have an assignment sale or 3rd party as ownership then you may impute a temporary clause to give you a few extra days to contact your assignee or 3rd party to ask for their permission. Your realtor will insert a ?Assignment Option Clause? which should read something like the following sample clause:

?The buyer reserves the right to assign this contract in whole or in part to any third party without further notice to the Seller; said assignment not to relieve the Buyer from his/her obligation to complete the terms and conditions of this contract should the assignee default.?

Of course this is only a sample of what a realtor MAY use and should not be taken by person as a clause without first contacting their lawyer. When buying always remember the issues that affect an owners interest. You should keep your eye on the road. Rights-of-ways, passage or road widening may not have been surveyed or registered. Driveways and culverts may not have been constructed on any public roads without the permission of the Ministry of transportation. Permission could also be denied due to limited access roads.

Also, when building near to streams, rivers, oceans, lakes and cliffs; be sure to check your restrictions. You may find that the property your buying will be shrinking before your eyes in a matter of months. This applies to All Real Estate in the Fraser Valley market and all other British Columbia Real Estate. These tips may be useful in other provinces in Canada such as Calgary, Alberta. Again, this should not be relied upon as legal advice but simply as a guideline for your next real estate investment.

Shane Toews is a Licenced Realtor who helps others to educate themselves on current real estate issues. He also provides assistance on how to locate quality homes, apartments or vacation rentals in Canada's Fraser Valley area. Visit his website RentFraserValley.com for more information on Canada's Fraser Valley Real Estate Market

Cheap Property For Sale How To Make Huge Captial Gains Quickly

Buying cheap property in the right location can provide you with triple digit annual gains and can be doe with low risk.

So if you want to make money from cheap property for sale, follow the tips below and build wealth quickly.

1. Look Overseas

Why? Quite simply because property is cheaper and growth potential in many boom economies overseas can provide better gains with lower risk

2. Look for an established market

Not one that could be the next property hot spot but one that is already established and a great destination is Costa Rica.

This market is just 3 hours from the US and cheap property for sale can be bought at prices that are up to 70% cheaper than in the US.

Growth has been stunning.

For example, those investors that purchased $30,000 of property near the popular resort of Jaco just 15 years ago, are worth as much as $800,000 today!

3. Look for market with good future growth potential

This means looking to buy cheap property for sale in a market that has a steady and increasing amount of investment and Costa Rica is booming.

It?s the number one choice for Americans looking for condos, second or retirement homes and the market will continue to expand and property values increase in value.

4. How easy is it to buy and what are your rights?

Check out how easy it is to buy and your rights.

In Costa Rica you get a stable country, the same rights as residents, property tax is minimal and your investment is extremely tax efficient.

5. Getting the right location

If you are buying cheap property for sale anywhere don?t buy the cheapest you can find but buy as cheaply as you can near expanding resorts or infrastructure.

Look for new developments being built such as new roads, airports and marina?s ? Which when their completed will mean your cheap property for sale will soar in value.

Getting 100%annual returns on investment

In conclusion, many investors achieve this by buying cheap property for sale in the booming countries with a track record of real estate growth and then buying in the right locations and such a country is Costa Rica.

The above tips are really common sense but when investing in cheap property for sale make sure you don?t fall into the trap of buying simply because a property is cheap and stick with overseas markets that allow you to buy near expanding resorts or new infrastructure.

Best destination

One of the best destinations to buy as we have said is Costa Rica and one of the best locations is on the central pacific coast near the ever popular resort of Jaco.

Cheap property for sale in Costa Rica is easy to buy and sell for big profits and there are plenty of realtors to help you choose the best locations.

FREE REPORT

For a FREE report on how to get huge capital growth potential by investing in property and all the facts you need to selct the best destinations visit http://www.costaricalandlots.com

Michigan To Hold Mass Foreclosure Sale

More than 250 homes in Michigan will be included in a mass auction, a testimony of hard times for the state and its residents.

Many Michigan homeowners have had a hard time keeping up with mortgage payments, partly due to devastating lay-offs in the auto industry. Michigan has seen a 25% increase in mortgage defaults in the last year, making it one of the hardest hit states in the country.

The homes up for auction are single-family bank-owned homes, condos and duplexes. The majority of the homes are located within 60 miles of Detroit. Prices are expected to be between $15,000 and $450,000.

Prospective bidders can go online to view the homes.

Across the country, defaults are currently on the rise. Industry experts say that the increases in interest rates, slowing appreciation and reversal of a formerly strong market has left many homeowners with little choice but to default.

Advisors have warned against many nontraditional loan options in the past few years. There are two main causes against low rate adjustable-rate mortgages and option ARMs. The first is that when the rate resets, the payment can often double in size. Many homeowners are stretching to get into the home in the first place. They find that they are unable to make the payment.

This is when the second factor comes into play. Due to the structuring of the mortgage -- where most, and with option ARMs all -- of the first years of payments go to the interest portion of the bill. Those who put little or no money down and haven't lived in the home for ten years are left with very little equity in the home. If the price hasn't had time to appreciate, they may be unable to sell the home for what they owe on it. With no money to bring to closing, they are forced to default on the mortgage.

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

French Leaseback

What is a leaseback?
Leaseback is a unique process developed by the French government more than 15 years ago to encourage quality development in tourist areas. Investors buy a freehold property and at the same time sign a lease contract with a property management company who will rent it for short term rentals for a renewable period generally 11 years.

In return, investors receive major tax breaks (no VAT on purchase price) as well as a guaranteed return for the duration of the contract. A guaranteed return is typically between 4,5 and 5,5% and is linked to an official index. The management company takes care of the running costs and maintenance. Thanks to tax breaks the income is not taxed during the first 10 years.

Finance
You can get 80% finance from local banks with rates on French mortgages of between 3.5 and 4% on 20-25 years with a down payment of a minimum 20%.

Importance of fixed guarantee
These last few years of poor equity market performance have made it abundantly clear how important guaranteed income investments can be.

Hassle Free
Leaseback schemes are ideal for people who want a complete hassle free investment. This is a complete hands off investment.

Risk
As long as the sourcing is well undertaken (sourcing of properties in areas with potential for resale) and verification of the management company is done properly then the risk for this type of investment is minimum.

For more information on Leasebacks in France, including property listings see www.myinvestmentinfrance.com My Investment In France is a fully licensed English speaking real estate agency located in Paris. My Investment In France has many quality leaseback properties available.

Your New Property in France The French Leaseback Scheme

The French Leaseback Scheme can be a great way to buy new build or newly refurbished property if getting a fixed rate of return on your investment is a high priority and you don't mind restrictions on the amount of time you can use it.

Essentially what you are doing when you enter this type of contract is buying a freehold property but granting its lease to a holiday company for a period of between 9 and 11 years where the rental return is fixed and guaranteed regardless of whether it is rented out or not. They are hence normally located in popular holiday resorts. It is possible to get a higher return from renting the property during the summer months yourself but this of course brings with it a risk and hassle factor.

Refunded VAT:

One of the great bonuses of this scheme is that the purchaser gets a full refund of the TVA (VAT) of 19.6% if it is a new build property which is either refunded 6-9 months after the purchase or paid and reclaimed by the developer in which case the purchaser never has to pay it.

At the end of the initial lease period, the holiday company usually reserves the right to lease it again until the 20th year after its construction but this is very rarely insisted upon if the client is not in agreement.

If you choose not to lease your apartment out again or sell it then you will have to pay a proportion of the TVA according to how many years are left outstanding from the first 20 years. For example, if the property has been under lease contract for 11 years and there are therefore 9 years remaining, then the amount of TVA that must be paid back to the French government is 9/20ths of the TVA. After 20 years TVA is no longer payable. Remember, if you sell the property during its lease contract then it must be sold with the contract intact to a likeminded individual who is prepared to see the contract through.

Guaranteed Return on Investment:

The guaranteed investment return will typically be around the 5% mark net of all costs tax-free as you benefit from non-professional lessor of furnished property status (LMNP). This in effect means that you will receive as much interest as you would in a high yielding savings account as well as the opportunity to gain from capital appreciation of the property.

Personal Use:

Leasebacks often allow the owner the option to occupy the property for a number of weeks a year in return for slightly lower investment yields. If you choose not to use the weeks then you will usually get a higher annual yield.

The Management Company:

An experienced management company will take care of the entire maintenance of the apartment or villa, usually with hotel services available such as reception, house linen, well-kept gardens, swimming pools and 24hr security.

Furnishing:

All furnishing, decoration and electrical appliances are supplied and taken care of by the management company.

Accounting Impacts During the Leaseback's Term

* Deductibility of the loan interest

* Deductibility of miscellaneous expenses (property taxes)

* Amortisation deductibility - 3.3% per year for 30 years. However, they are deferred and not imputable in regard to the business income.

After the leaseback's term, the deferred amortisation can be imputed and set against the received net rents.

Notary Fees and Sales Process:

The sales process follows the same routine as for new build properties with the same corresponding notary fees: 3% on new builds and for refurbished leaseback properties you will have to pay the usual 7-8% notary fees on the property before refurbishment - working out at between 4% and 6% of the value of the purchase price.

Better than Timeshare:

Unlike time share schemes, the owner actually sees a return on his/her investment through annual rental yields and also appreciation in the value of the property which can be substantial - so it is not money down the drain. The bonus though with these schemes is that, like time share, the property will be well maintained by the holiday company with no responsibility for changing of linen and cleaning - you simply turn up during your chosen weeks and enjoy it!

Nick Dowlatshahi is the managing director of Leapfrog Properties, a UK specialist agency in French property. Leapfrog offer an online database of up to 200,000 properties for sale in France plus a personal service from fluent French speakers to help you find, view and buy your property. Leapfrog Properties website is at http://www.leapfrog-properties.com.

Renting A New Home Doing The Initial Walkthough

So your looking for a new place to live. Well, sometimes we get so wrapped up in ?finding the right home? that we don?t think about the small things. This article is designed to help you think about some of the questions to ask yourself as you do a walkthrough.

So let?s get started!

Rooms? How many?

You may require a room if you need an:

Office
Den
Stuido
Sewing Room
Recreation Room
Theater Room

- In your rooms, how much closet space does it have? Will you have room to fit all of your items?

- What about bathrooms? Do you have a teenage son or daughter that needs his or her own space?

What Size?

What kind of square footage will you require? You can do some preliminary measurements form you comfort of your current home to get an idea what the sizes are. Bring a tape measure to your viewings and measure where your bed, couch and other items would go. Use your imagination!

How much counter space will you need? Do you have a coffee machine, toaster or bread maker? Will it fit in the cabnit or would you prefer to have it on the counter?

Amenities?

Amenities are more important then the actual unit to some people. Most people look for the following items:

Intercom System
Elevator
Parking Lot (underground)
Handicap parking and raps
Cable Included?
Gym / Pool included?
Clothes Washer/Dryer, Dishwasher, Range, Fridge
Air Conditioning
Balcony
Doorman or other security system/personnel

Do you need things a certain way?

Sometimes when searching for a home there is one key element that you require. For some it is having a Washer and Dryer for your clothes. Others enjoy having hardwood or laminate flooring.

Here is the most popular key features that we?ve found. (in no particular order)

Hardwood Flooring
A scenic view
High/vaulted ceilings
Close to shopping, recreation, schools or parks
Larger sized windows
Balcony
Newly Renovated
New Carpet
Security System
Games ? Party Room
Fireplace

We hope this article helps you with narrow down your search of a new rental unit!

Shane Toews is a Licenced Realtor who helps others to educate themselves on current real estate issues. He also provides assistance on how to locate quality homes, apartments or vacation rentals in Canada's Fraser Valley area. Visit his website RentFraserValley.com for more information on Canada's Fraser Valley Real Estate Market

Overseas Property Investment Tips For Maximizing Your Profits

Overseas property investment is more popular than ever. You can make triple digit gains and many investors do, but many lose heavily, so what seperates winners from losers?

Here we are going to give you tips for overseas property investment that will help you enter the small minority who make the big profits and make your overseas property investment a success.

Here are your 4 tips for overseas property investment success

1. Look for best price in terms of risk ? reward

Many people when trying overseas property investment simply look for the cheapest price they can find and assume that prices will go up in value and they make all sorts of projections but thats all they are projections and not based on reality.

In most instances the cheapest properties do have high profit potential if the market takes off, but in most instances they don?t.

Many investors find their overseas property investment was cheap when they bought it but gets cheaper!

The way to avoid this sceario is to buy property that may not be the cheapest but has the best potential for reward in relation to risk.

This means buying a market that has taken off is attracting investment and has a track record.

2. Buy a trend in motion

Investors in any market to do with money know that ?a trend in motion should be bought? and this applies to overseas property investment.

Regardless, of whether you are buying a villa, a vacation home, or a condo, you want the location you buy to be rising in value.

It?s a fact that if you have a property trend in motion its likely to last for decades, as steady and rising investment attracts more investment.

For example, in Central America Costa Rica has been the leader for years and many investors have made 30 ? 100% profits annually.

Many investors however have decided there is more potential in ?newer markets? such as Honduras, Belize or Nicaragua, but the risk is higher and a long term trend is NOT Established.

Costa Rica has huge established expat community and record investment and the fact that a huge community exists means it?s popular and will grow.

Will potentially unstable and poorer countries come to rival it? Maybe, but you are buying potential and NOT a long established trend.

It?s for each investor to decide how much risk they want to take in their overseas property investments ? A proven market with solid gains and an emerging market with higher risk reward.

Keep in mind that with most new overseas property investment hot spots they remain hot for a while and quietly die.

3. Be careful with location

No matter what country you make your overseas property investment in, don?t buy unless you are buying near developments or infrastructure that will see real estate values rise in price.

Don?t buy in an area you think will become popular. Buy in an area you know WILL become popular as it?s either near new infrastructure such as roads, marina?s etc, or near resorts that are likely to expand.

4. Make sure you know the country

Is it stable, how popular is it, what are your rights?

When buying you need to do a complete review and make sure it?s a safe and stable market for you to invest in.

Get a good realtor with solid track record to help you and don?t try and save by doing your own legal work!

Get an attorney who knows the law and make sure your overseas property investment is done correctly.

Tips to maximize rewards

The 4 tips above for overseas property investment will allow you maximise your rewards and minimize your risks.

You can make more by not following these tips!

The above tips in overseas property investment are ONLY for investors who want solid rewards with low risk ? not pioneers who want to take chances.

Be a pioneer if you wish, many made huge gains but remember most took arrows!

FREE Report!

On How to target large gains with low risk in overseas property investment as well as a focus on Costa Rica one of the most popular overseas property investment destinations with a solid track record of growth visit http://www.costaricalandlots.com