Finding a real estate agent can be very easy in today’s level of advertising availability and internet usage. Be alert when searching for an agent, you don’t want any real estate agent, you want one that’s in the business for you as much as he or she is for themselves. Real estate agents can make the buying and selling of a property as smooth as the state legislature allows. The best real estate agents working today don’t have to come from the big name companies. At the end of this article there will be a small list of very successful and impressive individual mentors available to start you out in the right direction.
1. Be sure your “realtor” is an actual realtor registered and certified by the National Association of Realtors. Only realtors qualified by the NAR can bare their logo. They adhere to a code of ethics that cover 17 different articles and standards of realty practice. Surprisingly, less than half of the realtors in business today have bothered to become an official Realtor. Get more info about realtors at, http://www.realtor.org/
2. Ask the agent you’re investigating for referrals. Most realtors of any size or income stay in business by using multiple sources of advertising. One of the most important is mouth to mouth referrals. Ask for direct referrals from past customers, or to have the agent put you in touch with some of his former clients. This may seem like bad form to some, but when spending the type of money needed to invest in real estate, or even buy a median priced home, every attempt to be 100% sure of your decision is never a waste of time.
3. Go to open houses, even the some of homes you’re not interested in. This will give the you the opportunity to explore new choices. It is up to you to decide which are the best options and which are the worst, refer to the end of number 2, on the list.
4. Go to an agent who does not specialize in the type of real estate you want. It sounds like a trick, but most agents will happily refer youl to a quality agent who does specialize in the type you’re looking for.
5. Check the selected agent on the web. Doing a background check about the agent using their own website can be very effective at sorting out the bad apples. Look at their listings, were they sold long ago, or are they kept recent. If the website is in disarray, then chances are the agent is as well.
Using these tips and a little common sense, anyone looking to buy real estate can make an informed decision on who they should choose for an agent.
One of he best real estate advisors, agents and investors is Dean Graziosi. Take him on as a mentor, or just follow his blog at, http://www.aboutdeangraziosi.com/.
For more information about Dean click on any of the following links…
The New York Real Estate Expo is held annually at the New York Marriott Marquis Hotel, to provide an opportunity to agents and brokers for targeted networking and connection with the agents ideal clientele. The N.Y. Real Estate Expo is the single largest event concerning real estate in the country. Everything and everyone an investor or agent needs to succeed can be found behind its doors. Architects, bankers, contractors, credit specialists, landscapers, real estate bankers, mortgage bankers, real estate insurance companies, all be present, just to name few.
The New York Real Estate Expo Agenda: Imperial Room
The N.Y. Real Estate Expo will happen in stages, even though those stages won’t be noticed by most, it is happening. In the early hours of the Expo, from 7 a.m. to 9 a.m., registration will be held, as well as exhibitor set up. After that, from 9a.m. to 10:30 a.m., the Imperial Room is opened for the commercial observer forum, the topic will cover, New York investment sales in 2011. The moderator will be Tom Acitelli, and will show case Moses Sioni, managing director of Sioni & Partners; Sam Chandan, President and chief economist of Real Estate Econometrics, along with many others.
The seminars don’t stop there, though. From 11:00 a.m. to 12:30 p.m., the Real Estate Weekly Forum will start. The topic will be: Amid the Economic Uncertainty, What Lies Ahead for the Real Estate Investor. The moderator will be Dan Geiger, from Real State Weekly. The forum will showcase owner and investors such as, James R. Wacht, President of Sierra Realty; Paul J. Massey, Jr., Chief executive Officer and founding partner of Massey Knakal Realty Services; and Ralph Herzka, the President and CEO of Meridian Capital Group LLC.
A real estate seminar for effectively marketing and selling green properties, will be held from 3:30 p.m. to 4:15 p.m. The keynote speakers for this seminar are, Alison Novak, of GreenHomeNYC and The Hudson Companies Inc. Speaking with her, is Alanna Martin, of Green Properties New York.
A CCIM forum will be held from 4:15 p.m. to 5 p.m., covering the topic of, what are the rules in office, retail, development, and lending. The experts that have been scheduled to speak are, Paul G.W. Fetscher CCIM, SCLS; Craig T. Evans, CCIM and Cassidy Turley; Wayne D’ Amico, CCIM and Property Politics; and Jimmy Vattes, CCIM and Mortgage Bankers.
Bolasco Room
Other seminars in the Bolasco Room include, Ethical Considerations for the Real Estate Practitioner, Foreign investment in US Real Estate: Challenges and Opportunities, and the History of CO-OP’s in NYC / NYC Condo History, to name a few.
Those were just some of the seminars and activities going on at the New York Real Estate Expo, dozens others are taking place in the Carnegie Room, Booth Room, and Edison Room. The final seminar ends at 5:30 p.m., so if you chose your learning options poorly, you’ve run out of time. Use your experience here wisely, and you’ll be one real estate investor who comes out with more leads for clients, lenders, and contacts with other agents and brokers. To see the full schedule of the New York Real Estate Expo, go to their website at, http://www.nycrealestateexpo.com/Agenda.html.
It’s no secret that the United States housing markets have been in big trouble. On the hand, little has been said about the massive numbers of real estate agents losing their jobs due to the famous bursting of the housing bubble.
The Housing bubble bursts: The Worst of the Worst
The median price of existing single family homes in the United States has been plummeting across the country since 2007. The National Association of Realtors has issued their report of median house prices in metropolitan areas, all across the U.S. In 2007 the median house prices for all homes were at an all time high. Thanks to, high demand, bad lending practices, and faulty acts of legislation forcing banks to lend to those who can’t actually afford it. From 2007 to 2009, the average loss on a privately owned home was in the 10’s of thousands range.
Some of the worst hit parts of the country resided in the lower states, namely Florida. In the Cape Coral-Fort Myers area of Florida, the price of a $252,000 home, dropped to an outrageous $87,000, by the last quarter of 2009. When the second quarter of 2010 ended, the price of the homes in the same area had risen to $94,000, a change of 12% in one year, but still, leaving the average home owner under water with their mortgage.
In the Miami-Fort Lauderdale area, the average residential real estate listing during the year of 2007 was $365,000. When the market began to crash in early 2008, the average listing for the same type of real estate in Miami, Florida, dropped like a stone to $285,000, a loss of $77,000, in a single business year. From 2008 to 2009, the problems closing in on the real estate industry only began to cause financial suffocation. In the same Miami area, that $285,000 home dropped, again, in 2009 to $211,000. By the end of 2010’s first quarter, the price of that same property had dropped to a radically low $193,000, losing a total of, almost, $100,000. The second quarter of 2010 spelled a slight relief for the real estate markets in Florida, itended with a 3.3% rise in worth, to $214,000.
Another local real estate market facing the crunch in a bad way, is the Los Angeles area of California. At the end of 2007, the average market price for a piece of residential real estate came in at $593,000. At the end of 2008, it had began its drop from its sky-high price, down to $402,000, a $191,000 loss! For every home owner and real-estate investor across the entire LA basin, massive heartbreak ensued. A matter that only got worse during 2009. Countless houses were foreclosed, and almost as many realtors went out of business due to no demand to buy. By the end of the second quarter of 2009, the prices in the LA area had reached its lowest of lows, losing a total $282,000, off the median home price.
By the end of the fiscal year for 2009, residential real estate prices rose slightly by $22,000. That would be a huge increase for a single year, but under the circumstances of the current real estate environment, it was barely noticeable to anyone not involved with owning or buying residential real estate.
The Best Residential Real Estate Prices in the Country
The top three markets across the country that are thriving in the face of the recession and the bursting of the United States housing bubble are:
The state of Texas, specifically the Round Rock, Texas area, has done particularly well over the past 4 years. The Austin-Round Rock area, has not only resisted the devastating trend sweeping the country, but residential real estate worths actually grew. The median house listing in Round Rock, TX. at the end of 2007, was $183,000, by the end of 2008, the average listing for a residential real estate property rose to $188,600, and that wasn’t the end of it. By the end of the third quarter of 2009, the median housing price kept rising, finally, stopping at $189,000. But, briefly things changed. From the fourth quarter of 2009 until the end of the first quarter of 2010, the markets fell nearly $7,000 for the average home. When the end of the 2010’s second quarter had come to a close, the listing prices for the same homes rose 1.3 percent, to a four year high of $196,000. In this area, it paid off to hold your breath while they dipped, briefly, underwater.
Residential real estate prices in Illinois, can be just as sporadic as anywhere else in the country, except that is for Springfield. When the end of 2007 arrived, the median price for residential real estate in the area was $109,000. By the end of 2009, the average median household listing price was recorded to be $113,000, a rise of $4,000 across two years. It was relatively slow growth compared to past U.S. norms, but still better than the rest of the country during the time. It wasn’t all growth and fire works, however. Residential real estate in the city of Springfield, Illinois dropped, momentarily, during the fourth quarter of 2009, only to start to climb again, in the first quarter of 2010, to its current level $123,000,a 6.4% increase in just two quarters.
Worth-your-wild real estate is available all over the country, you just have to know where to look. The final example is in Bismark, North Dakota. In 2007, the average home’s worth was $152,000. In the final quarter of 2009, it had crept up to $157,000. In each fiscal quarter of 2010, the residential real estate prices in Bismark rose from $900, to $4,400, leaving the median housing price at $163,000, a 3.4% increase in a single year.
As you can tell from what you’ve just read, the residential real estate business is all about what you know, who you know, and when you know it. Information known today, may be something you should have learned about yesterday. To stay on top of the real estate information covering these markets, and dozens of others across the country, go to National Association of realtors website at,http://www.realtor.org/research/research/metroprice.
Experienced real estate investors are extremely organized individuals.While transactions seem procedurally repetitive, investors know that each transaction is unique.What might be a stumbling block with one transaction is not the slightest problem with another transaction.
There are many obstacles that can be thorny to resolve in a short sale.Taking the time to identify potential potholes before negotiations begin can reduce some of the stress but even then there always seems to be one more roadblock that needs attention.
If you have engaged in short sales before, you have some idea what to expect.You also know how important it is to hold the delicate fabric between the lender and the homeowner together.While the lender is calling the shots, you need the homeowner’s cooperation to bring about the sale.
Neither the homeowner nor the lender is likely to pay for any inspections your lender requires, so you should be prepared to meet these obligations.However, one sticky wicket that can be a problem is the commission.To the lender, everything is negotiable, including the listing agent’s commission and the commission to the investor’s agent.
If the lender approved the use of a listing broker, they will pay that commission.If the investor has an agent, the listing agent and selling agent will need to work out their shares.Problems can arise when the listing agent says the listing commission does not cover the investor’s agent.
That can result in the investor paying the selling agent, which can be a significant amount.To avoid this problem, the investor should inquire about the amount of the commission and how it will be distributed before moving forward on the property.
Investors who wait until the closing can be surprised.This is just one of many easily resolved stumbling blocks.By addressing the commission up front, the investor eliminates one problem and keeps everyone working together.
When it comes to commissions, never allow a surprise to erupt.Clear up all the details before making any move on a property.Assuming that because the commission was handled one way in one transaction is a dangerous assumption that can be easily clarified on the front end.
As a real estate investor, you will be sticking to the script, or business, plan that you developed.You will have a very good idea of your budget and of the criteria that will compose a workable short sale for your inventory.
If you are working with one or more short sale agents, you must be careful that they do not waste your time.Many agents just subscribe to the theory that you throw everything against the wall and maybe something will stick.These agents can cost you time and money.
Being able to clearly describe the characteristics of a property that might interest you is essential as well as a good exercise for you.When you converse with an agent about a property, these are some of the guidelines you may set:
·You are only interested in properties with one or two liens.
·You are not interested in properties that are in the midst of a divorce.
·You are not interested in properties that have Fannie Mae or Freddie Mac backed loans
·If there is a homeowners association, you want to make sure the property you are considering does not have outstanding liabilities.
·If there is a homeowners association you will want the name and contact instructions for the bookkeeper or accountant
·If there is a homeowners association, you will want to see a copy of the by-laws or prospectus.
·Is the potential property in the geographic area or neighborhood that you want?
·What repairs will definitely be needed to make the house livable?You will have a contractor inspect the house but you most likely are not interested in a property that requires more than 20% improvement costs.
·What are the asking price and the amount of the mortgage?
If the agent can answer these questions to your satisfaction, you have a serious short sale agent working for you.If you reject this property, make sure to explain why, so that the agent is not discouraged and knows what to concentrate on in the future.
Today, one out of every 196 homes in the country is faced with defaults and foreclosure. There are very few people who would not be interested in the news related to real estate. It matters to know the state of affairs of the real estate market. Since there are many who are looking to buy homes, rent out space for themselves and the family. Then there are other class of people who want to sell there properties or rent their homes. For both, the buyers and the sellers, it is important to understand the market condition and act accordingly.
The sellers these days aren’t a happy lot. The rapid decline of job opportunities coupled with the job cuts going around hasn’t helped the buyer population. The number of buyers has reduced both for the new homes or resale homes, due to the fear of financial commitments and how the future holds.
There has been a slight improvement in buying trends for the past few months, however. Add to this the fact that many properties have been put under the foreclosure bracket of the banks, which has pulled down the prices of the resale properties, since the banks would sell these properties in an auction. Though the resale numbers have picked up considerably, the value is not coming in.
The buyer still remains cautious owing to the spate of foreclosures – some of the highest numbers in the history. The unemployment rates, which touched 11 percent, is a further set back to many who were thinking about buying a home. Now with a depleting financial situation they would definitely be thinking of a job more than a home. It would also mean that many are moving out of their ownership homes and taking up rented places where the commitment is lower.
There is some help to the buyers in terms of the very attractive mortgage interest rates and tax incentives by the federal government for the first time homeowners. However, significant growth will only happen when the job market improves, leading to stability and more faith from the population at large.
The real estate market has really been thrown by a mutually conflicting picture. On the one hand are many people struggling to pay their dues for the mortgages they have. Some of them have already been told by their lenders that the lenders are going to foreclose. In fact, the foreclosure rates have touched new heights and are tipped to soar further. On the other hand are people who are looking at this as a huge opportunity to get the dream home they have been waiting so long for.
Further, the deadline for availing the tax credit of $ 8000 for first time homebuyer has been pushed back to June. There is more good news; there is tax credit, of around $6500, for existing homeowners who want to buy a new home. However, it has some pre conditions, like the period of stay in the current house and the annual income of the household. This should further boost the sales, which seem to be picking up due to the federal support and existing market situation.
Most of the dreams of the homeowner are fulfilled with the help of a mortgage loan. Since many cannot afford to own the homes with their own money, loans are the order of the day. Whatever the situation of the market, loan interest rates, terms and repayment schedules play a key role in purchasing a home. The only other important aspects would be the price of the house and amount of loan that can be financed by the lender. With the interest rate for a 30-year fixed term loan going down the 5 percent barrier (it is at 4.98 percent this week), good properties are available with wider choices and negotiable rates. It surely is a heady combination for those who have saved enough.
If you have enough savings and are sure about your future cash flow, drive a hard bargain and chances are that you will get the best deal in terms of property, price and interest rates. Some might wait a little longer to see what the second round of foreclosures, which were held back, brings to the table. With the announcement of the tax credit for step up consumers, there are ample opportunities to get the tax benefit. Although it’s a difficult call for some, it’s becoming relatively easy for other prospective buyers to find the home of their dreams.
There is a massive ‘shadow inventory’ of around 7 million units, which is primarily made up of distressed and foreclosed properties, in the pipelines that the banks haven’t put up in the market yet. Once this shipload of inventory hits the shelves of sellers, it is going to further pull the rates down. This is one of the reasons why top researchers like Senior Managing Director of Research for Wall Street, Amherst Securities, Dr Laurie Goodman, believe that the market is going to go down further in the coming months, due to impact of the low cost inventory building up.
Dr Laurie Goodman also indicated that the prices could see a fall of around 8-10 percent in the forth-coming months. This may not completely push down the prices since the consumer demands are also increasing, which might just counter balance the price depression. Adding to the inventory of homes are the delinquent accounts, which have not been able to sustain the repayments due to a job market that has not really improved. Thus, with income in trickles, many have not been able to meet their commitments. These homeowners have been forced by circumstance to approach banks with foreclosure requests to qualify for government programs. The foreclosure rates in the country have increased over the second quarter by 5 percent.
There are multi fold factors, which have increased the foreclosure rates and will most likely keep them high for some time to come. Most lenders have not yet pressed foreclosures due to the loan modification programs extended to the homeowners. When this period ends, and the modifications don’t bring in the necessary economic relief, many more will be forced to close.
Adding to the difficulty is the yearly rate adjustments in flexible home loan rates, which will kick in now and may produce increased commitments resulting in greater financial difficulties for owners. Compounding to the fiscal problems is the mounting unemployment of 9.8 percent, which is slated to increase further. Therefore, most believe there will another tide of foreclosures soon.
The picture looks bleak and gloomy for many, but for others who have saved enough and are in financially secure positions, the situation is ripe for a home. The interest rates are the lowest and going down week by week, the prices are low and the choices are many, including resale homes. If you are financially stable, you should drive a hard bargain not only on the price of the house, but also on the interest rate of your home loan. This might be your best opportunity, but do your financials right and get them double-checked before you take the plunge.
Smart real estate investors retain a real estate attorney.Investors have one week to review the purchase and sale offer and one week to review loan terms and conditions.Why gamble?The right attorney can serve as consultant, tax adviser and listener.You could do a lot worse.Yes the attorney will cost some mo0ney, but the peace of mind is well worth the investment.
Real estate investments are sizable.Your investment is a serious, business transaction.Attorneys who specialize in real estate law are worth their salt and can protect your interests, make sure you get what you expect while helping to negotiate with all interested parties.
Here are a few of the services your real estate attorney will provide:
·Review and explain the purchase offer and contract.
·Resolve all contingencies including issues with the structural inspection.
·Check that there are no covenants, easements, liens or other conditions that could affect the title.
·Prepare and register all legal documents.
·Review, explain and clarify the terms of the mortgage.
·Modify mortgage terms
·Calculate all adjustments to be made at closing including tax adjustments and utility and water credits.
·Review all documents prior to and at closing.
·Attend closing.
·Arrange title insurance protection.
·Make sure everything proceeds in an orderly manner and that you receive what you expect.
When selling, there is more to do than collect the money.You need representation to accomplish the following:
·Review the purchase offer and contract.
·Help clarify all negotiations.
·Prepare the deed for transfer
·Procure power of attorney if you will not attend closing
·Attend closing
·Review all closing documents and statements
·Arrange for transfer of deposits
·Arrange insurance certificates
·Calculate credits
·Confirm and arrange mortgage payout.
Many of today’s homeowners would not be in the position they now find themselves had they elected to retain legal representation.Can you imagine spending hundreds of thousands of dollars and entering into a financial commitment for 15 or thirty years without expert advice?It doesn’t make sense, does it?
At the International Commercial Property Exposition in Munich Germany, some pretty surprising and very disappointing numbers were released.Foreign investment in U.S. real estate fell a whopping 77% in year-over-year comparisons.The $14 billion outside investment in U.S. real estate fell behind the $15 billion invested in Japan and ahead of the $11 billion invested in the United Kingdom.
Perhaps the most startling transaction was the sale of the Worldwide Plaza at 825 Eight Avenue in Manhattan.When the building was fully occupied in 2007, investor Harry Macklowe purchased the property for $1.7 billion.After Macklowe defaulted on $7 billion in debt, Deutsche Bank took over the Plaza and eventually sold it to a joint venture spearheaded by George Comfort & Sons.The selling price was $605 million.
The building is only 60% occupied with an initial net yield of about 6.3%.If the new owners improve the building’s occupancy rate, the net yields should increase to 12%.
Also in New York, SL Green has agreed in principle to sell 49.5% of its interest in 485 Lexington Avenue to a joint venture between Gilmore USA and Optibase Ltd., an Israeli-based technology company.The joint venture is paying $21 million and assuming the $450 million of existing debt.Once the property is closed, the joint venture expects to acquire another 49.4% interest from SL Green.
While the downturn in the first half of they year was dramatic, July and August have seen investment from Germany and Asia begin to come back to the market.New York and San Francisco have become popular targets for on and closed-end German and Asian funds.
In Washington D.C., the largest transaction of the year has taken place.Public REIT Vornado sold 1999 K Street to German investor Deka, an open-end fund.The sale price was $208 million or $830 per square foot.At the same time, Credit Suisse purchased 1099 New York Avenue from Tishman Speyer for $90.5 million.Big investor’s are wheeling and dealing in big markets and betting on their ability to fill unoccupied space.
