DEAN GRAZIOSI: DEAN GRAZIOSI REAL ESTATE

Finding the Right Realtor

A realtor is a state-licensed professional who assists you with the sale of your current home and/or the purchase of a new home.  It is critical to choose a realtor with whom you can communicate honestly, and whose judgment and professionalism you trust.

Some tips for finding the right realtor for you:

1.    Ask.  Who in your life has recently sold and/or purchased property?  Were they happy with their realtor?  Dissatisfied?  Unsatisfactory experiences are as noteworthy as are positive ones. Note who to contact, and who to stay away from!

2.    Once you have some names, check real estate information in local newspapers, magazines, and websites.  Do these agents list many properties?  Do the properties seem to be “for sale” for a long time, or do they sell quickly?  Do these agents seem overburdened with so many properties that they won’t be able to devote a reasonable amount of time to you?

3.    By now, you have narrowed your search down to some real prospects.  So start setting up some meetings.  Pay attention to first impressions and “gut instincts” when you meet prospective agents.  Additionally, notice the following:

·         Do you feel comfortable talking to the agent? 

·         Does he/she listen actively and respond appropriately? 

·         Is there an eagerness for the work and an energy that suggests this person will help you meet your needs? 

·         Bring a list of questions to these initial meetings, and write down the answers. Keep track of every realtor you interview so you can make an informed decision about which professional can best meet your needs.

Tip: Standard interview questions should include: “How do you market a home for sale? How do you find listings for buyers?”

4.    Realtors tend to know the most about the neighborhoods in which they typically list/sell/buy. As a buyer, you need an agent who is familiar with where you want to move. Yet as a seller, you want a listing agent that is familiar with where you live now. It makes sense to have two separate agents unless you’re buying and selling in the same neighborhood.

5.    Attend open houses. The best way to meet a successful agent is to watch him/her work.

6.    Check references. If this is someone that you just met, ask for contact information from a few of his clients to call. You should also check with your local board of Realtors to see if any complaints have been filed against this agent.

7.    Request a referral. If all else fails, a local Realtors office can refer you to an agent, at which point you can follow the steps outlined above. Always meet with, interview, and checking references on any prospective realtor.

And always trust your gut when a fit feels incredibly right, or uncomfortably wrong.  Remember: You will be spending a lot of time with this person, so finding a personality that you like is critical. The right realtor for you is out there!

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Real estate investors often tend to rely on emails for a variety of tasks during the process of making a deal. As it turns out, that may not be such a good idea. A recent ruling in New York Courts has shed new light on the necessity of being careful about email interactions. Since the case in question regarded a real estate transaction, it brings home the importance of the ruling to RE investors.

In the court case, a real estate broker sent an email to a potential buyer of a property saying that he would be afforded the right of first refusal. While he did not say that the deal was finalized, he did say that he potential buyer would get a chance to counter any new offers that were made.

This potential buyer went on for a time assuming that he was going to have a chance to buy the property if he still wanted it. Then, one day he found out that the broker had sold the property to a higher bidder without consulting him or giving him a chance to raise his bid.

The man’s response was to sue for breach of contract. As evidence, he used a printout of the email in which the broker had made the original promise. His argument was that he relied on the email as a valid form of communication in conducting the deal. The broker disagreed, countering that the email was not binding.

The lower court where the case was first presented sided with the potential buyer. It said that the email was as valid as a written contract. This ruling was explained as resulting because of the fact that emails are such a common form of communication, and because they can be easily traced to the sender.

A higher court disagreed and said that there was not a binding contract, but not because the email was not as binding as a written offer. Instead, the ruling was handed down because the potential buyer never replied to the email, so the communication was one-sided and may never have been seen by him. The case has been taken to yet another court, but so far the consensus is that an email, properly sent and received, is considered binding.

What this means to you as a real estate investor is that you would be wise to monitor yourself when writing emails during the deal-making process. Never say anything in an email that you would not want someone to later haul back into court. This does make investing a little less dynamic, but it is necessary to protect yourself in the future.

There may be one last alternative. If you include a disclaimer saying that no part of the email is binding, you might protect yourself from legal action. If you plan to take this route, do not just make something up yourself; have an attorney draft the wording so that it will stand up in court. Remember that emails have become the newest form of writing. Watch how you use them or you could face serious consequences in your real estate investing business.

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Whether you’re a homebuyer or a homeowner looking to sell, a qualified realtor can help you to get the best deal out of your investment. When seeking the help of a realtor, there are several questions you should ask to determine if the real estate agent of your choice will be able to help you get the most for your money. By knowing what questions to ask, you can help avoid wasted time and energy with realtors that do not have your best interests in mind. After asking your realtor some basic questions, you will be able to evaluate whether they will be able to provide the service you need to buy or sell your home at the best possible price.
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It’s a good idea to ask your realtor how long they have been a full-time professional realtor. You also need to make sure they can represent you either as the buyer or the seller. Always ask for references from previous clients that can verify their experience with the realtor. Ask your realtor if they have a team of people working with them who you will be working with. Make sure that you have ways to contact any people you’ll be working with when the time comes. A list of staff members working with you, complete with phone numbers, e-mails, and fax numbers would be ideal. A company website should also be included in the information you’re given, and the site should be updated regularly. Have your realtor explain their fees up front, ask for an estimate of all services pertaining to your listing, and get all of the information in writing to keep with your other important documents.

Don’t be afraid to ask your realtor what characteristics set them apart from other realtors. What do they specialize in, how can they help you to find the perfect home to buy or help you to sell your home at the best price, and so on. A good realtor knows their qualifications and is confident in their work; they will have your best interests in mind. Ask for a satisfaction guarantee. If your realtor is not working out for you, you need to be able to terminate the Buyer Agency Agreement. A good realtor understands that no one on the team profits unless you, as the client, profit. So talk to your realtor and find out what they can do for you

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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…

http://www.deangraziosireview.com/

http://www.aboutdeangraziosi.com/

http://www.totallyfulfilled.com/

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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.

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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, it  ended 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.

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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.

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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.

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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.

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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.

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