How to Sell Your Real Estate Note

Author: Peter Doblerbr
Source: articleage.combr
br
Unlike traditional residential real estate mortgages, real estate investment financing is way more creative and offers more options than you think. The golden rule in real estate investment is OPM (Other Peoples Money).
I have enough money; shouldnt I buy my real estate investment for cash? No, I absolutely advice against investing large sums of cash into a single real estate investment. There are two reasons why not. First, you give away most of your profits by not leveraging your real estate investment. Second, it is far too risky to put every egg into one basket.
Let me explain the leverage issue for a moment. I will give you an example of a $100,000 investment property that typically increases its value (appreciates) by 7% average a year. Maybe more, maybe less depending where you live. Paying all cash for this property will yield in a 7% appreciation profit plus the net profit from renting the place. Now youre looking at roughly 15% of returns.
If youre conservative with your investments you might be satisfied with this kind of a return. These days you might get equal or better returns with other conservative investments minus the hassle of being a landlord. But you dont mind being a landlord, because you understand and utilize the leveraging method with financing your real estate investment.
With the example above you will make roughly $15,000 a year in profits from your investment. Now lets take a closer look at what leveraging can do for you. Today a typical real estate investor can get financing as high as 95% – 97% of the purchase price. Occasionally 100% financing is available as well. But this would be totally unfair in this example to compare this with all cash purchasing.
15% return sounds like a lot, but wait till you see this. Lets assume that the rental income will cover all your expenses including the mortgage payments. Taking the same example from before your net return would be the 7% appreciation profits of your property. This would translate into a $7,000 a year profit. With a 95% financing in place you would get $7,000 return on $5,000 (your 5% down payment) invested. This is a whopping 140% return on investment.
With the same $100,000 you can go out there and get 20 investment properties, finance 95% of it and make an amazing $140,000 profit a year. This beats the projected $15,000 profits with an all cash transaction any day.
Of course you will have a lot of trouble to get financing for 20 properties in a single year. Typically 5-6 new rental property mortgages are the maximum lenders will allow these days. This is the signal to get creative with your financing structures.
In this case sellers financing would be your key to achieve your goal of maximum leverage of your investment dollars. Despite the message from all these late night infomercials, seller financing is harder to get than they want you to make believe it is.
It all depends on the sellers ability to offer seller financing and the sellers motivation. Only about 1 out of 20 properties for sale are able to get seller financing. That means that theres no mortgage balance on the property. From this narrow selection the seller must be motivated to sell under these conditions. This could be tax reasons, time constraints, personal reasons and many more.
As you can see this translates into a lot of work to achieve your goals. But let me tell you one thing. This separates the tire kicker real estate investors from the real go-getters. Wouldnt you agree that a little bit of hard work and determination is well worth it to build a real estate empire?
I think it is well worth the trouble and hard work. At the end of the day you keep building your real estate investment portfolio and sooner than later you will be able to cash in.
Sincerely,

Peter Dobler
(c) 2005
Peter Dobler is a 20+ year veteran in the IT business. He is an active Real Estate Investor and a successful Internet business owner.
Learn more about real estate investments at http://www.doblerproperties.com or send a blank email to mailto:suncoastrenttoown@getresponse.combr
br
br
br

Author: Bob Schwartzbr
Source: articleage.combr
br
Just this summer it was almost impossible to find a new San Diego real estate development that
cooperated with real estate brokers. If you could find a developer co-opting, it was most likely way below the traditional 3% rate.
Well, just a few short months have passed and a current read of the Sunday homes section of the San Diego Union Tribune shows that though the real estate market does not make discernible moves in a day like the stock market, a couple of months can easily define the local real estate trends.
Here are just a few of the incentives noted in the home section of a very recent Sundays paper: 4% broker co-op, free plasma screen TV, $1,000 off closing costs, $2,500 in design center upgrades, $10,000 in incentives, one year HOA fees paid, $5,000 in closing costs, $2,000 closing cost credit, washer, dryer refrigerator included, $25,000 in incentives or cash price reductions, $1,000 gift certificate, and no HOA fees for 2 years! To view all San Diego MLS listings, visit: http://www.brokerforyou.com
The grand opening long buyer lines, multiple offers, offers above the asking price and homes selling within days of being listed are just fond memories now. However, due to the huge home appreciation all San Diego real estate has seen, with the average home up 100% in the past 5 years, combined with the boom in 100% adjustable/interest only loans, the stage is set for what is sure to be mind-numbing depreciation.
Yes, we have started on the down leg of the typical Bell Curve and the probability of surpassing our approximate 20% drop in San Diego home values experienced from 1990 thru 1996, seem assured. Plus, as real estate trends seem to start in the West and than move east, any U.S. real estate market that experienced huge price appreciation the past five years, will experience the same depreciation in real estate residential values.
Copyright 2005 Promotions Unlimited – All rights reserved
Bob Schwartz is a Certified Residential Specialist, San Diego real estate broker. Bobs other sites are about Downtown San Diego real estate and Del Mar real estate is owner of websitetrafficbuilders, an Internet search engine optimization firm specializing in domain name registration Internet domain website hosting. Bob received his BBA majoring in real estate computer programming. Bob is an expert witness for major San Diego law firms, and directs a multi-state high traffic network of 15 legal directory sites. Bob has two free link exchange programs. One is for 15 legal related sites and the other is for 4 real estate sites. You can also apply for very cool, and free, website awards that add credibility to your site. Email Bob if you are interested in any of these programsbr
br
br
br

Author: Ashley Lichtybr
Source: articledashboard.combr
br
Online lead generation companies are a huge source of real estate leads for Realtors and a great resource to help grow an agents business. However, many lead generation companies are constantly slammed by agents who have used the service and had little, if any success with the real estate leads provided. In my experience, this dissatisfaction often comes because the agent has unrealistic expectations of the service and little to no knowledge on how to develop a good follow up campaign with their real estate leads.

The first thing you need to realize as an agent is that lead generation services arent magic listing trees. Typically you shouldnt expect to get listing after listing from a service. Most services work on the following basis: they provide online marketing in the agents specific area, the natural result of which is homeowners in need of information filling out lead contact forms. This contact form is sent to the agent in the area, and that is their lead.

So what does this mean exactly? W ell, it means the real estate leads provided will be people with different types of real estate needs and in different stages of the process. If an agent signs up for a service for a 3 month contract and expect a listing within the first month, they are likely to be disappointed. Immediate listings with real estate leads DO happen, but they arent the norm.

Realty Times analyzed more than one million real estate leads captured and cultivated online and then compared them to public records of home sales from across the country. They found that only about 7.3% of consumers sold their home within 3 months of filling out a lead form, but the percentage grew to 22% after 12 months and to over 40% after 28 months. This means that purchasing real estate leads online is a LONG TERM investment, not an immediate source of money. Real estate leads generated online MUST be aggressively followed up with to convert them to clients!

Therefore, as a real estate agent, you must look at lead generation services in the same light as other marketing endeavors. When you implement direct mailing campaigns and send out information several times a year to 5,000 homes, do you expect to get 5,000 listings within the year? No. Direct mailings are more likely to result in accumulation of real estate leads over the next year or two which you then must nurture into clients looking to buy or sell.

There are typically four types of real estate leads received by online lead generation companies: buyers, sellers, refinancers and fakers. Buyers may be in different stages of the process, as may sellers, so you may have to follow up for 2 years before actually getting their business, or you may have a listing within 3 months. It depends on where the consumer themselves are at in the process. Obviously buyers have a great potential – you may be able to sell one of your listings to them and if they need someone to list their current home, youve got a double whammy of a lead. Same goes with a seller looking to list – maybe theyll be interested in purchasing one of the homes you already have listed, and if not, perhaps theyll still consider you for a buyers agent to represent them when they purchase a new home. Again, a double whammy of a lead.

Just because the seller isnt going to sell for 2.5 years doesnt mean you should drop them – on the contrary, you now have 2.5 years to get a leg up on the competition by working closely and sending the lead any information to make their real estate process easier. It all comes down to an agents sales ability – lead generation services can get your foot in the door, but its up to you to sell yourself to your real estate leads.

Often real estate agents complain the loudest about getting real estate leads of people looking to refinance or get a home equity loan. These arent real estate leads, Im not a broker, what am I supposed to do with this lead, its worthless, they say. That is absolutely FALSE and the wrong way to look at these leads. First off, any real estate agent worth their salt should have a close working relationship with one or more mortgage brokers to refer these type of leads on to. In the spirit of reciprocation, the mortgage broker should be referring buyers and sellers back to you!

Even before you refer the refi lead to a broker, you need to do some work on your own. Talk to the lead, get to know them and their situation, educate them in anyway possible on refinancing as opposed to buying or selling. Sometimes these leads can be converted to listings, depending on what their situation is and what path makes more sense for them. Even if they do wind up going to your mortgage broker, thats still one more homeowner out there that knows your name and how willing to help you were – they may wind up needing you a few years from now or referring their family and friends to you. You never really know what could come of your real estate leads unless you try.

Last but not least, we have the fake real estate leads – people who fill out information forms but give not ONE good piece of contact info. A lead that has a fake name, number, email and property address is admittedly, a bad lead. Theres no way to contact the person and find out who they are. However as long as even ONE piece of information is correct (name, phone number, property address) then a little detective work with public records can help you get to the bottom of the lead. Agents who consider a lead bad just because it has a fake name will wind up missing out on MANY commission checks.

The best way to have success with real estate leads generated online is to have a strong follow up campaign. Give the lead service a chance to work for you, but be realistic – not all leads turn to listings and not all listings happen overnight. Patience and persistent and consistent follow up is the true path to success with real estate leads and online generation companies. It just takes time./pbr
br
br
br

Author: Boris Tomsonbr
Source: articlesbase.combr
br
Real Estate Investment – Why it is Big Business? When examining the different asset classes, real estate is generally far less volatile than shares and real estate tends to be the haven that investors flock to when other asset classes are suffering.Visit Here http://gov-debt-grantbenefit.blogspot.com It is true to say that investment properties can have many benefits in terms of building long-term wealth, but we must never forget that this wealth is not guaranteed! Following the global real estate boom of the late 1980’s many investors learnt this hard lesson when they found their properties were worth far less than they had actually paid for them and the bottom seemingly fell out of the over-inflated market. The bottom did not truly fall out of the market however as all real estate retained value; the real estate market simply experienced an overdue rebalance and has gone on to build from this point of stability. Since the booming 80’s ‘sensible’ investments in real estate have still offered major attractions and advantages, and it is back to real estate that investors have turned in recent years. With real estate prices in some countries soaring, and first time buyers struggling to get onto the first rung of the real estate ladder, many people are looking further a field for investment property opportunities. A recent report in the UK highlighted a 130% rise in the value of farmland since the 1990’s for example †fuelled entirely by a new breed of non-farming buyers. With bricks and mortar real estate prices in the UK now so exorbitant, these non-farming buyers are looking for alternatives for their money. They may be unable to afford real-estate investments and unwilling to risk their cash on the ever volatile stock market and so they are buying up fields and pastures to get in on the real estate investment game! Others interested in property investment have been examining the real estate markets around the globe for value for money, return on investment, potential for growth and development, rental market opportunities and basic stability. With current research showing that up to one in eight Britons intend to purchase an overseas real estate within the next five years you can see that overseas real estate investment is very big business. Relatively newly discovered property markets are opening up or expanding in countries such as North Cyprus, South Africa and Bulgaria for example †where potential buyers are afforded incredible value for money when it comes to real estate. The real estate market in countries such as these has been artificially restricted through the threat of war or political instability, and now with their recent history showing that they are stable countries with strong economies and populated and governed by those with a first world perspective, property investors are finding markets rich in diversity and potential. Dubai is another country offering interesting real estate investment opportunities. Since May 2002 when the crown prince of Dubai, Sheikh Mohammed bin Rashid Al Maktoom issued a decree allowing foreigners the right to buy freehold real estate there, the real estate market has exploded! Properties available in Dubai range from modest one bedroom flats to freehold exclusive islands! And property there still offers very good value for money †furthermore the tax and business advantages in Dubai are very appealing and so real estate investment in Dubai is enjoying a buoyant upward trend. And then there are the ‘old’ favourites †France, Florida and Spain for example are all countries with a long history of investment real estate appeal – especially for Britons and Northern European residents looking to escape the weather and invest in a home in the sun. Whether you are looking to secure a home for holidays, your retirement or you are looking for a long term investment opportunity these countries still offer the investor potential for real estate growth. When it comes to considering real estate as an investment vehicle it is a tried and tested method used for attempting to secure long term gains †but as with any investment, gains, returns and security of investment are not guaranteed. Whether real estate investment is right for you and matches your circumstances and attitude to risk is something that you need to consider.Visit Here http://gov-debt-grantbenefit.blogspot.combr
br
pHi,I am Boris.If you are looking for ways to make money and you want advice on the best work from home programs you have come to the right place. I was a researcher for Make Money Magazine for 11 years, during that time I covered every make money programs in the book. Five years ago when the “How To Make Money” market changed for the better because of the internet advances I decided to use the knowledge I gained from working for Make Money Magazine to quit this job and start up my own successful home business.I am now earning close to $20,000 every month from( a rel=nofollow,nofollow href=http://googleadsenseguide-ebook.blogspot.comGoogle Income Plan/a
)the home businesses I setup, so I havent looked back once. I have now devoted most of my life to the make money field and now I think its time to give something back, so I have decided to write this review website to tell people about the best home business programs around the world and what programs are just right for you and whats are scams . I highly recommend that you take a look at the programs That i have suggested because out of the home business opportunities which I am currently using these are the ones which are making me the most money.Also my suggestions on How easy each program was to set up, their success rate and which programs are best for your country.Visit to a rel=nofollow,nofollow target=_blank href=http://www.onlinesfortune.comhttp://www.onlinesfortune.com/a or Join to
Boris Tomsona rel=nofollow,nofollow href=http://makingmoney-info.blogspot.comMake Easy Money programs Today!/a/pbr
br

Author: Lucasbr
Source: articlesbase.combr
br
It is time. You are prepared to buy yourself a nice home. You have a stable job. Money is flowing in. You have your life completely together so now you can afford to shop for a home and start a family. PUT ON THEM BRAKES! Back up for a moment here. Did you think about your long-term goals? Did you include in those goals room for emergencies? I didnt think so. Well, dont be the next knucklehead on the streets that believes bad stuff only happens to other people. God didnt give you a tag that stated you have a better future than the rest of us ahead. Instead, you are at risk of disaster just as the next guy on the street. Therefore, now we need to save money and to think real estate and long-term goals logically. There is nothing wrong with finding a home that you can own. First, however you have to think of ways to save money, think about your long-term goals, and wait… Did you remember to make a list of real estate agents? Did you know that real estate agents, i.e. some will work hard to find you the best deals and will help you find a mortgage loan? You save money! Just a tip to get you thinking – First, we are going to talk about those long-term goals. You want to think of those, since disaster could hit you at anytime. NO, I am not hoping you have a disaster, rather just concerned about your financial future. For Pete Sakes, give me a banana. Long-term goal in real estate planning: Now you have to work with me on this one. I have no idea what, your long-term goals entail. Unfortunately, I only read minds that dont argue back and those who always say Im right. Long-term goals: Mortgage Insurance: What about insurance, did you think of this? Oh, you are going for the life plans that give you minimal coverage because it is cheap. Well, did you not know that some mortgage insurance plans would cover you in the event disaster occurs? No, this is not just a plan for disaster, you have health insurance, dental plans, home coverage, disaster backup, and other coverage in some of the real estate plans offered online. Buzz on over to some of the mortgage insurance companies and review the types of coverage. The disaster policy may cover you in the event of fire, theft, burglary, etc. You can save money by getting quotes at the real estate sites online. The quotes will help you to compare the best deals on mortgage insurance. Look, for policy features, such as premiums, death benefits, duration, saving components, dividends, etc. Darn, look at us. We are jumping the gun. You havent even bought your home yet. Well, lets travel to some real good real estate web sites online and Honky Tonk around the net to find some of the best deals in real estate. Dont drink too much either; I am talking about Honky Tonking to save money in real estate. Real estate agents are people that manage, organize, and take hold of the risks in buying and selling homes. Some of these people make up brokers. Brokers will represent you. Brokers will assist you with finding a loan that meets your budget; help you through the closer and contract signing once you find a home. Brokers walk you through list agreements and stand behind you through to the finish to make sure that you save money, and complete the buying a home process without legalities arising or other complications occurring. Now you can drive on to find your own home, and you may even get a deal, but who is Sam Crinkles name is going to walk you through the buying process and make sure that you are not buying a clunker. Brokers in real estate will also help you deal with your plans. If you have a budget setup, a qualified broker will assist you in meeting this budget. Brokers have a list of homes for sell, so it will take no time at all to find homes that meet your criteria. In addition, brokers in real estate will negotiate pricing of homes that interest you. You can save money big time by investing your time with licensed brokers in real estate. Now back to your long-term goals. Always plan for disaster mister: Because it could happen to you at anytime…you did not receive a badge from God to cover you in the event of disaster. Take time to explore the Internet and get quotes at real estate sites to find deals. Wont this consume my time? Time is money honey. Time? you will spend a lot of time browsing the streets looking for a home. Using the Internet however will save you time and MONEY, because you have the world at your hands. You can use quotes at real estate sites to save money. In addition, you wont be running up your gas or wearing down your vehicle. Did you think of this? Now what did you say? Wont this consume my time? Well, it is your choice, but I am busy helping you to save money in real estate. Have a look at www.ebayestate.combr
br
pLucas Price – a rel=nofollow,nofollow target=_blank href=http://www.universerealestate.info/index.phphttp://www.universerealestate.info/index.php/a

a rel=nofollow,nofollow target=_blank href=http://thedownloadshub.com/http://thedownloadshub.com//a/pbr
br

Author: Danny Selkabr
Source: articleage.combr
br
Website temples are popular among many website owners and developers. A website template makes it easy for a business to start and develop a company website. Templates are a great way for individuals with little or no experience in web design to have a quality website. A real estate website template is a popular choice among many real estate agents or agencies.

If you are operating a real estate business and are interested in developing a company website, there are a number of benefits to purchasing a real estate website template. A real estate website template will act as a guide for individuals who are inexperienced in producing a quality website. They will often come with amazing graphics and will give business owners ideas as to which information they should include on their website. There are a large number of available website templates available; however, a real estate website template is specifically tailored to the real estate industry.

A real estate website template can cost as little as twenty dollars or exceed over one hundred. The price of a real estate website template will mostly depend of the quality of work. If you are interested in obtaining a template with a number of graphics or multiple pages you should be prepared to spend extra money. Although the majority of real estate templates are general and available for anyone to use, you can have a specific template designed to fit all of your needs. There are a large number of website or template designers who will be more than willing to produce a customized template for you. A customized template is likely to cost extra money.

There are a number of different ways to find a quality real estate website template that will fit all of your needs. To find a template you should perform an internet search. Simply by searching for a real estate website template you should be provided with multiple businesses that sell the templates. Each real estate website template should be explained or shown in great detail. It is advised that you never agree to purchase a real estate website template without first seeing what the final product will look like. In addition to showing important template details, you should also be provided with a purchase price and any other important purchase information.

Once you have seen a number of real estate website templates you will need to decide which template will best suit all of your business needs. There are a large number of general real estate templates; however, there are others that may be specifically tailored to a specific real estate area. It is possible to find a real estate website template that is specifically designed for corporate, commercial, or residential use.

No matter which type of real estate business you are running there are multiple real estate website templates that are sure to fulfill all of your desires. Start your search for a quality real estate website template today.br
br
br
br

Author: Seomul Evansbr
Source: articlesbase.combr
br
What data can you get from a good real estate investing book? There are a numeral of online sites, which can bring out you knowledge and points on how to begin arrive at your real estate investments properly. You are able to also get a number of books, which are essentially on the content of real estate investing. You could search sites related to articles on the internet for information on real estate investing books.

Whenever you go for an in-depth analysis of these real estate investing books, youll find that there are a number of chapters covering topics like how to market your real estate investing business, the secrets of real estate investing, tips amp; tricks on real estate investing, how to follow business success of tycoon of other fields and how to grow in the real estate business. All these and more are covered as the component of a good real estate investing book.

A number of hidden pitfalls are there that you should avoid for staying in the business sector. You can get an elaborated overview about the risks, drawbacks and potential ways out. You can also know whether you are ready to step into the business of real estate investing or not. The real estate investing book could give you advice on how to use the books properly so that you get the utmost data out of it.

Although on your journey of becoming a successful real estate businessman, you would need a guide on who could help you in the right guidance. The real estate investing book can be a very good friend in achieving understanding your goals and achieving them. The book would also tell you about the real estate seminars from where you are able to get hidden benefits.

The real estate investing book also tells you how to assemble your own multi billion-dollar empire based on real estate. Some online sites offer you a numeral of courses, both online as well as normal. You can start your own real estate business with your own home mortgage. If you pay attention to the formulas offered by the real estate investing books you would be able to retrieve it within seven years.

Creative real estate investment figures the real estate investment behavior of individuals. Real estate, also known as immovable property, consists of land or anything permanently connected to the land, like buildings. Real Estate is often viewed and used in contrast to personal property. With the development of private property ownership real estate investment has arise as an emerging area of business.

Creative real estate investment is normally known as creative realty investment. It comprises of the purchase, sale of residential land and building and non residential buildings. The main conduits involved in this are landlords, tenants, buyers, developers, builders, real estate agents etc. The development in hospitality, entertainment and IT sectors are extremely influencing for the creative real estate investment business.

Constructive real estate investment as viewed normally is not only the business of the rich strata of the society as even if the investment is low it can reap huge benefits. Certain points are to be kept in mind before you go for creative real estate investing in this business like where to invest and how to invest.

The people involved in this business enterprise should have a complete and comprehensive knowledge abut the areas, which are risks prone. Success in property is the main cause behind its upsurge in countries like USA, Canada, Australia, Europe and New Zealand. The best way to get stated with creative real estate investment is to advertise.

Creative real estate investment is an art for successful real estate investment. One should start from the initial stage of gathering information and resources. Apart from that acquiring information from the net, the local newspaper is of utmost help. Information from the bulletin board also helps a lot. The legal section of the newspaper also helps in getting the right kind of information.br
br
Seomul Evans is with Dallas a rel=nofollow,nofollow href=http://www.seo-1-marketing-services.com title=Marketing ServicesMarketing Services/a consulting for CallMD, an informational Medical resource site specializing in: a rel=nofollow,nofollow href=http://www.callmd.com title=Mental HealthMental Health/a and freea rel=nofollow,nofollow href=http://www.mentalhealthrelief.com title=Heart DiseaseHeart Disease/a articles.br
br

Author: Luigi Frascatibr
Source: articleage.combr
br
Consumerism these days in both the United States and Canada is at its peak in light of the buoyant real estate market. Consumerism is a side-effect of capitalism – the good capitalism as Adam Smith might have called it. Consumerism is that particular economic niche where you find wealthy consumers snapping up goods. Consumerism is good for the economy, as it promotes trade and the exchange of money. It is also bad, as it fuels inflation. And consumerism in 2005 is definitely spurred by ever increasing real estate values.
When people feel rich, they spend – a psychological effect known in Economics as The Wealth Effect . It doesnt matter whether their wealth is actual or merely on paper, whether the money they spend is their own or borrowed on the equity of their assets. We saw this phenomenon at work during the stock run-up of the 90s, except that it is even more potent with housing. Over the past three years the wealth effect in Canada from rising home values has accounted for a third of all growth in consumer spending according to the Joint Center for Housing Studies at McGill University. Consumer spending, in fact, has been single-handedly responsible for keeping Canada out of a recession for two years.
When house values increase – especially as dramatically as in recent months – people feel freer to spend from the wealth they have, or the wealth they perceive they have. They may decide to buy a bigger car, to eat out more often, to indulge in electronics or fashionable items, all of which is in most cases financed by their equity. And, strangely enough, people spend their hypothetical riches faster when their houses go up in value than when their stocks do, because they believe that housing gains are more stable.
But are housing gains really more stable? This is the $56 billion question of the first boom in the 21st century. Are todays real estate revelers partying like they did in 1999 – just before the stock market bubble burst? To some economists the housing market – especially in hot coastal areas like the Lower Mainland and Greater Victoria – is a bubble just as ripe for popping. The main reason, they say, is that there is no reason for it. Prices in certain areas have more than doubled these past three years and there is no fundamental to account for it. Not even the 2010 Winter Olympics which, they say, are still five years away.
Instead many bubbleologists believe that whats driving the market is low interest rates, herd psychology, speculation and most of all the expectation of unending price increases. Meanwhile promiscuous lenders keep on throwing money at buyers. The lending business has become so cut-throat that practically anyone can walk into a bank and get a loan with zero percent down at three or four times their income.
Real Estate Boards across the country, however, thoroughly disagree with the doomsayers. Most predict another record year for real estate in 2005 with a median 9% jump in prices nationwide. Most Boards argue that there are substantial differences between real estate and the stock market. Real estate, they claim, is in fact based on tight housing, especially in places such as Vancouver and Toronto where it is expensive to build and where available land is in chronic short supply. Add such population factors as immigration, foreign buyers (especially American buyers who snap up properties cheap because of a relatively weak dollar) and baby boomers demand for second homes and voila, there you have your sound real estate market.
Fact of the matter is that there are indeed troubling aspects to the real estate boom. If one wants to compare stocks to real estate, it is evident that at the peak of the stock market 1% of the investors controlled 33.5% of stock wealth. But in todays real estate boom, the top 1% of home equity holders nationwide have only 13% of all housing wealth. In other words, a broad drop in housing values – should it ever happen – would affect a far larger cross section of Canadians than did the stock market bust of 2000. To render this situation even more volatile, home buyers have turned to some risky strategies to afford their purchases, with the more or less tacit complicity of the Federal Government. Nothing down, interest-only loans and negative amortization (in which you wind up paying so little each month that your principal amount grows larger although, hopefully, your house value rises faster) mortgages are on the rise. Such loans can pay off if you sell within a few years at a profit. But if interest rates rise, borrowers may become overwhelmed by steadily rising payments.
The consequences of such an apocalypse would be felt throughout the economy. If enough homeowners become swamped by their debts and have to sell – or are being foreclosed upon – prices would drop creating a reverse wealth effect and bringing the entire economy to a grinding halt.
In any event, whether the real estate market rises, plummets or flattens, whether it happens in one year or five, it will not undo the changes that the boom has wrought in the relationship between the homeowner and the home. This particularly applies to the notion that the house is no longer just a home. By tapping into their wealth through refinancing and home-equity loans, many homeowners have ensured that the idea of the house as piggybank will stay with us for a great many years to come – the wealth effect.
Luigi Frascati
Luigi Frascati is a Real Estate Agent based in Vancouver, British Columbia. He holds a Bachelor Degree in Economics and maintains a weblog entitled the Real Estate Chronicle at http://wwwrealestatechronicle.blogspot.com where you can find the full collection of his articles. Luigi is associated with the Sutton Group, the largest real estate organization in Canada, and is based with Sutton-Centre Realty in Burnaby, BC.br
br
br
br

Author: Real Estate Prosbr
Source: articledashboard.combr
br
COMMUNITY INFORMATION

Encinitas is situated in the northern coastal part of San Diego County within the state of California. There are approximately 49,992 residents in this Zip code (92024) and 18,636 households. The median age of residents is 38.06 years.

TEMPERATURE

The temperature in Encinitas is relatively moderate. The warmest time of year occurs in August during which temperatures reach an average high of 76ฐF. The coldest time of year occurs in December with average temperatures falling to 55ฐF.

HOME AND REAL ESTATE PRICES

The housing options in Encinitas include single-family homes and properties, condominiums, townhouses, and apartments. The price of housing is as follows:

ท One bedroom townhouse/condominium start in the mid $200,000s.
ท Two bedroom townhouse/condominium start in the low $300,000s.
ท Three bedroom townhouse/condominium start in the mid $400,000s.
ท Two bedroom single-family homes start in the high $400,000s.
ท Three bedroom single-family homes start in the high $500,000s.
ท Four bedroom single-family homes start in the mid $600,000s.

REAL ESTATE MARKET TRENDS

As with most products and services in the United States, price shifts in the real estate industry are subject to the forces of supply and demand. Whether its a buyers market or a sellers market, it is useful to evaluate home sales data for the most recent month available (June 2006), compared against the same period in the previous year (June 2005).

The median price of single-family homes dropped from $1,100,000 in June 2005 to $867,500 in June 2006, which represents a 21.1% decline. Fewer homes sold in June 2006 (44 homes) than in June 2005 (53 homes). The average time to sell a home increased from 50 days in June 2005 to 62 days in June 2006.

The median price of condominiums and townhomes decreased from $507,500 in June 2005 to $452,000 in June 2006, which represents a 10.9% decline. One more unit sold in June 2006 (25 units) than in and June 2005 (24 units). The average time to sell a unit increased from 34 days in June 2005 to 68 days in June 2006.

Homebuyers and home sellers should keep in mind that the data above is simply a snapshot in time. Therefore, the data must be evaluated over a longer duration to understand enduring market trends./pbr
br
br
br

Author: Charles Warnockbr
Source: articleage.combr
br
Demanding consumers
Internet buyers tend to be better informed on market conditions and better prepared to act on the home they want when they start working with a realtor. Luckily for realtors, these changes dont necessarily hurt, as long as they are able to adjust to the new relationship and realize that the new-style buyers value speed and efficiency over guidance when finding a home.
- E-marketer, Internet Home Buyers Changing the House Rules
Thanks to the Internet and other technological innovations, more real estate information is freely available than ever before. As a result, consumers are demanding new choices, improved services, faster transactions and lower prices. According to a recent NAR survey, the number of sellers stating that they didnt want to pay a sales commission fee rose from 46 percent in 2003 to 61 percent in 2004. In 2004, 23 percent of Florida home sellers opted to sell independently without an agent, up from 14 percent in 2003 and nearly double the 14 percent national average, according to Planet Realtor.
And Web-enabled consumers are demanding a high digital IQ when working with real estate professionals. In addition to being well-versed on their own industry-specific technology, real estate professionals now are expected to utilize laptops, mobile phones, digital cameras, personal digital assistants and global positioning systems to keep pace with Internet buyers and sellers.
Downward pressure
If consumers are going to do their own home-shopping online, they expect to save some money, just as they would for using the self-service lane. Thats why they are susceptible to online discount brokers and the new affinity companies that are promoting lower commissions if only the consumers will use their agents. These business models promote the idea to consumers that they ought to be paying less money in commissions.
Realty Times Columnist Blanche Evans
Traditional real estate commissions, typically around six percent of a homes selling price, are facing downward pressure from consumers and competition. Some consumers claim traditional real estate commissions dont reflect:
- Todays home prices. Years ago, when median-priced homes sold for $25,000, real estate commissions were typically five percent, or $1,250. Today, with South Florida median home prices around $300,000, the cost of a six percent full-service real estate commission becomes $18,000. Some brokers even charge additional fees to cover administrative costs. When you consider that todays average homeowner sells a home every five to seven years, real estate commissions can dramatically impact your personal savings and net worth.
- Owner equity. When selling properties, most homeowners calculate the cost of selling as a portion of sales price, though the commissions are paid out of owner equity. (Equity is the difference between the value of your property and amount of mortgages owed.) Consider this example: You decide to sell a property for $250,000 in which you hold 10 percent equity, or $25,000. After paying a six percent commission of $15,000, you are left with $10,000 before any applicable closing costs. In this example, the $15,000 commission is six percent of the selling price, but 60 percent of the $25,000 equity.
- Services performed. Under todays commission structure, selling a $100,000 house at six percent typically costs $6,000, while selling a $500,000 house costs $30,000. Does selling the more expensive home really require five times more effort? Your cost is the same whether the agent spends one hour or 100 hours marketing your home. This is one reason many real estate consumers find fee-for-service real estate so appealing.
Developing alternatives
Consumers want what they want, when they want it and will gravitate to the most cost-effective source to obtain it. Why? Because our one-size-fits-all approach to working with sellers and buyers is archaic and wont allow consumers to access various segments of help they need in a timely fashion. Thats why .com Web start-ups are finding a receptive audience in real estate consumers and why for-sale-by-owners are burgeoning.
Julie Garton-Good, Author of Real Estate a la Carte: Selecting the Services You Need, Paying What Theyre Worth
Until recently, you have had few practical alternatives to the traditional full-service, full-commission real estate transaction with a broker. Most sellers paid a single commission fee for a full range of real estate services, whether they needed them or not. Now traditional real estate agencies face the challenge of identifying new services that have value to todays sophisticated online and empowered consumers.
One result is an unbundling of traditional one-size-fits-all real estate services for consumers who want more control over real estate transactions and their associated costs. If youre willing to take on some tasks traditionally performed by agents and brokers, you could receive lower transaction costs. You might benefit from the following emerging alternatives:
Fee-for-services
Consumers want assistance from real estate professionals, but dont want to pay for it in the form of traditional commissions, says a la Carte real estate Pioneer Julie Garton-Good. Garton-Good has been preaching the fee-for-services gospel for more than 20 years. As the name implies, you can choose which tasks you feel comfortable performing and hire qualified real estate professionals to do the rest. Many traditional real estate brokerages are beginning to offer a more menu-based service plan. For example, you may not mind listing your home and holding open houses, but you may want assistance with contracts and closings.
One-stop shopping
In response to dwindling margins and the rising costs of technology and lead generation, some real estate companies are attempting to combine traditional and Web-based services to provide consumers a single source for all their real estate needs. One-stop shopping sites generally provide or partner with lenders, insurers, title companies, real estate attorneys and others to facilitate all aspects of buying and selling. In addition, some sites are adding home-improvement and related services to stay in touch with consumers between buying and selling transactions.
Web-based discounters
Although many Web-based real estate companies flamed out in the dotcom era, scores of new companies have emerged to take their place. By offering targeted services such as flat-fee MLS listings, buyer rebates and AVM tools, these sites are appealing to independent buyers and sellers who prefer to take a more active role in transactions. In addition to listings, some sites also offer how-to articles and advice for those who choose to go it alone.
Tradition + technology + turbulence = opportunities
So, given the trends, changes and ongoing industry evolution, what can independent buyers, sellers and investors expect in this new era of real estate?
• The Web and other technologies will continue to evolve and transform the $1.3 trillion real-estate industry. Technology will continue to reduce the time, expense and complexity of manual processes, and increasingly sophisticated search and valuation tools will play a more strategic role.
• Free and low-cost real estate resources will continue to be available and even multiply on the Web. In real estate, knowledge truly is power. Consumers will try to use their power to gain more control of the real estate process and subsequently expect to be compensated in the form of reduced and fee-for-service commissions.
• The role of traditional real estate brokerages will evolve as Web-enabled consumers become more knowledgeable. This likely will trigger some restructuring and consolidation of traditional brokerages, but will also drive the development of innovative new practices targeting online and empowered consumers. Real estate professionals will focus more on promoting their local knowledge and industry expertise, while consumers will perform some buying and selling tasks on their own.
• Traditional real estate commissions and profitability levels will continue to face downward pressure from various sources. The future will be profitable for brokerages that are able to extend their core expertise of neighborhood and industry knowledge into flexible new consumer-centric offerings.
• The traditional high-touch, full-service real estate agency is evolving, not disappearing. Real estate professionals who provide exceptional service and value to their customers will always be in demand.
You now can find more real estate knowledge, tools and resources on the Web than ever before, enabling you to buy and sell with increased confidence. For real estate professionals, reinventing the industry means making hard decisions, changing processes and managing new opportunities. But for consumers, reinvention in real estate is a winner, hands-down.
Learn more at www.homekeys.net
Charles Warnock is Marketing Communications Manager at Homexperts in Miami, Florida. Their Web site is http://www.homekeys.net. Charles writes frequently on real estate, finance, advertising and marketing communications.br
br
br
br