Whether you are considering buying a house or selling one, conducting a 'rundown' of property items could make all the difference in the world.
Although not all things will require costly repairs, some might, which is why it's important to be prepared.
Before you head out to look at homes or before you put your home on the market, check out these items to ensure they are in proper working order:
Look for settlement cracks on the wall, floor, or ceiling. Every home, at one time or another, will get a settlement crack, so if you find a few, there's no need to panic.
However, if you notice major cracks, this could be a sign of structural problems. Mark down the location of where you find cracks and make sure they are pointed out to the inspector to determine the degree of damage. If they are small cracks, they can easily be filled with plaster and repainted.
Look for any leaks. If you notice any water damage marks on the walls, floors, or ceilings, this could simply be from a bathtub or toilet that might have overflowed, or, it could be serious and be due to a leaky roof or poor plumbing.
Also, check the tile in the bathrooms and kitchen for any indication of behind the wall leaks, such as mildew or loose tiles.
Open and close all the doors and windows. Listen for squeaks or sticking. In most cases, this is simply a matter of spraying some lubricant such as WD-40, but it could also be another indicator of settlement.
If there is an outside deck, check for rotted wood, which could be a sign of termites or it might just be old wood needing to be replaced.
Check all of the electrical outlets. You can simply take a working nightlight with you to plug in. This will tell you if any of the outlets are not working properly.
Check the garage doors, if applicable. Make sure they run smoothly on the track and that the openers are in good working order.
Look for pests such as termites or ants. The best place to look is around the foundation, wiring, pipes, and doors or windows.
Look at the grading of the yard, both front and back, to ensure that run-off water flows away from the house.
Look at the gutters to ensure they are properly installed and that water flows out adequately.
Check the driveway to look for crumbling concrete, pockmarks, or holes that would need to be fixed.
Have the roof looked at by a professional. Make sure the turbans are installed correctly to eliminate any leakage and that no portions of the roof need to be fixed or replaced.
Carefully check out the heating and cooling systems. These can be high dollar expenses so it's important that they are running properly. Often, these items are covered under a warranty so if there is a problem, see if you have warrant coverage is tansferrable to the new owner.
If there are any fireplaces or wood-burning stoves, make sure that the chimneys are clear of debris and that the flues are working properly.
Caulking and weather stripping are important as well. Improper coverage will cause air leaks into the home, raising utility bills and causing unwanted drafts.
The good thing is that everything can be fixed. The bad part is that some items are costly, which is why it's so important to ensure you keep operating systems of the home in good working order.
If you are buying a house, a good inspector should find all of these items and work with the seller to ensure most or all are taken care of.If you are selling your home, having these things working properly will put you in a much better position of getting a good price out of your home.
Sunday, June 28, 2009
Friday, June 26, 2009
Coming Soon, Dynamic Wealth Strategies
New Dynamic Wealth Strategies on 'How To Buy Real Estate Coming soon, keep an eye out it .
Thursday, June 25, 2009
FIRST TIME HOME OWNERS - MUST KNOW FACTS!
If you are interested in buying your first home, don't allow myths to dissuade you from trying.
The truth is that home prices are decreasing with the recent downturn of the economy but it is only a temporary condition and the reality is its increasing in some area's and for those area's experiencing the downturn, it will bounce back, so it is best you buy now.
It is a little more difficult for the first-time homeowner simply based on price.
However, with so many options available, that doesn't mean you can't qualify for a mortgage loan. You just need to know what to plan for and what questions to ask.
Studies show that many potential homeowners believe they can't buy a house when in fact, there is strong possibility that they can.
Close to 15% of people living in the United States state they would like to buy a home within the next few years but believe from a financial perspective, they won't be able to.
Another 10% state they can afford a home but for other reasons, probably won't buy for a while.
Here are some myths:
In order to qualify for a house, you need 20% down
Lenders are required by law to provide you with the best possible rate for your loan
You can't qualify for a house if you've been with your current employer less than five years
Your credit must be perfect
Mortgage interest is not tax deductible
The truth is these are just myths.
Now for the truth:
More and more innovative mortgage packages are being created, offering the borrowers options between 3% and 5% down. Some lenders offer zero down, if you have excellent credit.
For first-time buyers, it's in your best interest to do some serious comparison-shopping.
Every lender works with its own rates bases on their standards as well as the type of loan being considered.
Rates change literally every day so once you've made the decision to buy a house, check rates with more than one lender and check on a daily basis.
Job stability is important but the five-year rule is merely a myth.
For example, if you have worked in public relations or some other industry for 10 years but have had three jobs in that time, because you've stayed within the same business, lenders will often consider this as continuous employment, especially if you've made advancements.
In addition, solid credit and a larger down payment can compensate for work history in some instances.
It's true that credit is very important when qualifying for any loan.
However, if you have been out of a bankruptcy for two years and can provide a good letter of explanation to the lender, they will usually accept that.
If your credit is in real bad shape, consider a credit counseling service to help you get back on track. Generally, this can be done in as little as 12 to 18 months.
As you make your comparisons of the financial benefits of renting versus owning, be sure to consider tax deductions. When you buy a home, the closing costs, mortgage interest, and points are all tax deductible.
The best things a first-time homebuyer can do are conduct research and ask many questions. Remember that buying a house is never easy for anyone.
However, interest rates are currently lower than they've been since the 1960's so if you can buy a house, this is probably a great time.
With being a first-time homeowner, there are many questions you'll want to ask. It's easy to focus in on the size of the rooms, the structure, the lot, but there are other options to consider - things you need every day to live.
Here are some examples:
Public transportation - If you depend on public transportation then you need to check into what options are available in the area you are interested in looking.·
Aging parents - More and more families are taking care of elderly parents, therefore, you should think about any special needs as you start looking.
Public safety - What is the crime rate in the preferred area? How close are public services such as police, fire, and hospital? · Parking - Will there be any issues with parking? If the house you're interested in doesn't have a garage, is there ample off-street parking?
Utilities - This is an important finance to look at. Usually the seller can provide copies of the past few months for you to review, giving you an idea of what you would need to budget for.
New communities - If the area you want is in an entire new community, what recreational amenities are offered? Is there a clubhouse? Pool? Playground? Exercise facilities?
Property taxes - Some tax rules provide special benefits for veterans, elderly citizens, and even long-time residents. You should inquire what these benefits are and whom they cover.
When you get to the point of being serious about buying a house, these are the steps to follow to make the qualifying and purchase as easy as possible:
Establish good credit habits and cleanup any unfavorable reports.
You should start saving for the down payment, closing costs, and extra for any hidden expenses. Don't forget about utilities, moving expenses, and items needed for the home.
Research and read. Go to your local library and read up on as much as possible about financial management and home buying.
Start looking at various areas where you might be interested in living. Go to some open houses and do some comparison-shopping.
Meet with a reputable real estate agent and start the preliminary process.
Just remember that there is no reason to be afraid or intimidated when it comes to buying a house. The main concern expressed by couples is that they aren't sure where to begin.
There is also the fear of rejection when it's very possible that the credit situation isn't as bad as they believe.
Home buying has become increasingly easier thanks to the Internet. Years ago, people hated the one-on-one approach of determining if they qualified for a loan.
The Internet has made it so much easier where people can now go to various lenders, provide some information, and be notified online whether or not they qualify.
In addition, mortgage advice is also readily available.
Whatever questions you have can easily be asked from the privacy of your own home.
Responses are accurate, thorough, and always confidential. Contact us anytime by email : reo.asia@gmail.com for properties in California and Hawaii .
If you are interested in foreign investment we have properties located in Costa Rica and Asia.
The truth is that home prices are decreasing with the recent downturn of the economy but it is only a temporary condition and the reality is its increasing in some area's and for those area's experiencing the downturn, it will bounce back, so it is best you buy now.
It is a little more difficult for the first-time homeowner simply based on price.
However, with so many options available, that doesn't mean you can't qualify for a mortgage loan. You just need to know what to plan for and what questions to ask.
Studies show that many potential homeowners believe they can't buy a house when in fact, there is strong possibility that they can.
Close to 15% of people living in the United States state they would like to buy a home within the next few years but believe from a financial perspective, they won't be able to.
Another 10% state they can afford a home but for other reasons, probably won't buy for a while.
Here are some myths:
In order to qualify for a house, you need 20% down
Lenders are required by law to provide you with the best possible rate for your loan
You can't qualify for a house if you've been with your current employer less than five years
Your credit must be perfect
Mortgage interest is not tax deductible
The truth is these are just myths.
Now for the truth:
More and more innovative mortgage packages are being created, offering the borrowers options between 3% and 5% down. Some lenders offer zero down, if you have excellent credit.
For first-time buyers, it's in your best interest to do some serious comparison-shopping.
Every lender works with its own rates bases on their standards as well as the type of loan being considered.
Rates change literally every day so once you've made the decision to buy a house, check rates with more than one lender and check on a daily basis.
Job stability is important but the five-year rule is merely a myth.
For example, if you have worked in public relations or some other industry for 10 years but have had three jobs in that time, because you've stayed within the same business, lenders will often consider this as continuous employment, especially if you've made advancements.
In addition, solid credit and a larger down payment can compensate for work history in some instances.
It's true that credit is very important when qualifying for any loan.
However, if you have been out of a bankruptcy for two years and can provide a good letter of explanation to the lender, they will usually accept that.
If your credit is in real bad shape, consider a credit counseling service to help you get back on track. Generally, this can be done in as little as 12 to 18 months.
As you make your comparisons of the financial benefits of renting versus owning, be sure to consider tax deductions. When you buy a home, the closing costs, mortgage interest, and points are all tax deductible.
The best things a first-time homebuyer can do are conduct research and ask many questions. Remember that buying a house is never easy for anyone.
However, interest rates are currently lower than they've been since the 1960's so if you can buy a house, this is probably a great time.
With being a first-time homeowner, there are many questions you'll want to ask. It's easy to focus in on the size of the rooms, the structure, the lot, but there are other options to consider - things you need every day to live.
Here are some examples:
Public transportation - If you depend on public transportation then you need to check into what options are available in the area you are interested in looking.·
Aging parents - More and more families are taking care of elderly parents, therefore, you should think about any special needs as you start looking.
Public safety - What is the crime rate in the preferred area? How close are public services such as police, fire, and hospital? · Parking - Will there be any issues with parking? If the house you're interested in doesn't have a garage, is there ample off-street parking?
Utilities - This is an important finance to look at. Usually the seller can provide copies of the past few months for you to review, giving you an idea of what you would need to budget for.
New communities - If the area you want is in an entire new community, what recreational amenities are offered? Is there a clubhouse? Pool? Playground? Exercise facilities?
Property taxes - Some tax rules provide special benefits for veterans, elderly citizens, and even long-time residents. You should inquire what these benefits are and whom they cover.
When you get to the point of being serious about buying a house, these are the steps to follow to make the qualifying and purchase as easy as possible:
Establish good credit habits and cleanup any unfavorable reports.
You should start saving for the down payment, closing costs, and extra for any hidden expenses. Don't forget about utilities, moving expenses, and items needed for the home.
Research and read. Go to your local library and read up on as much as possible about financial management and home buying.
Start looking at various areas where you might be interested in living. Go to some open houses and do some comparison-shopping.
Meet with a reputable real estate agent and start the preliminary process.
Just remember that there is no reason to be afraid or intimidated when it comes to buying a house. The main concern expressed by couples is that they aren't sure where to begin.
There is also the fear of rejection when it's very possible that the credit situation isn't as bad as they believe.
Home buying has become increasingly easier thanks to the Internet. Years ago, people hated the one-on-one approach of determining if they qualified for a loan.
The Internet has made it so much easier where people can now go to various lenders, provide some information, and be notified online whether or not they qualify.
In addition, mortgage advice is also readily available.
Whatever questions you have can easily be asked from the privacy of your own home.
Responses are accurate, thorough, and always confidential. Contact us anytime by email : reo.asia@gmail.com for properties in California and Hawaii .
If you are interested in foreign investment we have properties located in Costa Rica and Asia.
Monday, June 22, 2009
HOW TO CHOOSE THE REALTOR THAT FITS YOU BEST
Finding the ideal Realtor doesn't just happen by accident. It takes some research on your part.
An important rule of thumb is to shop for the Realtor first, the house second.
First, you want to talk with several Realtors from several companies to learn about the different options they offer. If you aren't completely satisfied with what one has to offer, talk to another.
The important thing is that you want a Realtor who will represent you to get the best home for the best money if buying, and if selling, provide a smooth transaction for the best offer.
One proven method for finding a qualified agent is by using referrals. If you have a friend or family member who recently had a positive experience while shopping for a house or selling their home, get the realtor's name and number.
However, even if you meet with a referred Realtor, you should make sure that Realtor is right for you.
Keep in mind that the real estate market has two very distinguished sides - the buyer's side and the seller's side. If you are selling your home, you are represented by a listing agent while if buying, you are represented by a selling agent, also known as a buyer's agent.
The selling agent seldom lists a lot of homes and focuses primarily on people buying homes.
These real estate agents are the ones that sell homes on the Multiple Listing Service (MLS), by the listing agent.
In most cases, an agent is on one side or the other, although some do split their time between the selling and buying sides.
One question is what happens if you find the perfect Realtor to help you buy your home. They have the same focus and priorities as you, they are very professional, and exactly what you've been looking for.
Great! Now what happens if this Realtor has a house for sale - the ideal house - everything you want? The bottom line is, this Realtor is working for the seller of that home to ensure the seller gets the best deal. Should you use this Realtor or find another one?
Unfortunately, this situation sets up the potential for a conflict of interest. Since the Realtor is under contract with the homeowner, they have an agreement to use their negotiating skills in selling the home. This can be done, but it's a little tricky.
If you should run into this situation, the agent would become more like a transaction facilitator than that of an agent and could work on behalf of both parties, however, this is not the ideal situation and should be considered carefully to ensure both seller and buyer, get the best representation.
Keep in mind that even when you find the "perfect" Realtor, there can, and will, be challenges.
Very seldom does the sell or purchase of a home go flawlessly. So be prepared to be met with obstacles and be patient as the Realtor works them out.
WHAT YOU SHOULD EXPECT FROM YOUR REALTOR
Working with a reputable Realtor is a huge advantage. Unfortunately, there have been many horror stories of first-time homebuyers being promised the greatest deal ever only to discover that the "Realtor" isn't even licensed or qualified to sell homes.
Although many people are successful in finding the perfect home on their own, most aren't. A qualified Realtor knows and understands the industry and therefore knows how to negotiate the best deal for you.
Their role goes beyond just helping the buyer find a nice home. They also act as a "sanity check" to ensure right decisions are being made and things are in order before, during, and after the deal.
Realtor's areas of expertise include:
Advertising
The Realtor can advertise properties if you're selling your home, for the buyer, the Realtor can show you listings on the Multiple Listing Service (MLS) as well as other media.
Marketing Strategies
Based on accurate information and specific properties, a Realtor will create marketing strategies.
Open Houses or Home Tours
The Realtor will hold a minimum of one, possible two open houses.
Recommendations
Throughout the process, the Realtor should be open to making recommendations and offering information.
Documentation
This covers the negotiations, contract, handling appraisals, closings, etc.
Keep in mind that when you decide to work with a Realtor, you aren't just working with one, you're working with thousands. Realtors network together, which strengthens the position of both seller and buyer. If you're buying a home, you won't just be looking at houses being handled by your Realtor, but the whole network of Realtors, thus increasing your odds of finding exactly what you want at the price you need.
A good Realtor will help you in setting up appointments with lenders as well as meet you at the appointment. They can offer great expertise in this area and will be a huge assistance. Once you locate your home, your Realtor can help you locate housekeepers, gardeners, and babysitters. Their work doesn't stop as soon as the closing is done. Good Realtors will remain in contact with you over the years should you ever decide to sell.
Additionally, below are some important guidelines you should follow when selecting your real estate agent:
Talk with your friends, neighbors, and co-workers who recently sold in your area. Whom did they work with, and were they happy? Would they use this agent or company again?
Go to open houses in your area and observe the listing agents. Do you like the way they are marketing the house? How knowledgeable are they about the house and the market? Are you comfortable with the answers they have to your questions? Are you impressed with their professionalism?
Take note of SOLD signs in your area. This is a sure indication of an active, successful agent.
Interview at least three agents. Try to find out as much about each as possible. Because you will be working closely together, you want to be absolutely certain that you are comfortable with your agent's style of doing business.
Here are some very important questions to ask your agent
1. What are your qualifications, experience, and education?
2. How long have you been selling real estate? How long in this area?
3. What is your track record? How many houses have you sold in the last three months? Will you supply three references from these sales?
4. How will you find buyers for my house? May I see a marketing proposal? Are you connected to a relocation network?
5. What if I'm not satisfied with your service?
Make sure you ask these questions to ensure you are working with a good agent.
An important rule of thumb is to shop for the Realtor first, the house second.
First, you want to talk with several Realtors from several companies to learn about the different options they offer. If you aren't completely satisfied with what one has to offer, talk to another.
The important thing is that you want a Realtor who will represent you to get the best home for the best money if buying, and if selling, provide a smooth transaction for the best offer.
One proven method for finding a qualified agent is by using referrals. If you have a friend or family member who recently had a positive experience while shopping for a house or selling their home, get the realtor's name and number.
However, even if you meet with a referred Realtor, you should make sure that Realtor is right for you.
Keep in mind that the real estate market has two very distinguished sides - the buyer's side and the seller's side. If you are selling your home, you are represented by a listing agent while if buying, you are represented by a selling agent, also known as a buyer's agent.
The selling agent seldom lists a lot of homes and focuses primarily on people buying homes.
These real estate agents are the ones that sell homes on the Multiple Listing Service (MLS), by the listing agent.
In most cases, an agent is on one side or the other, although some do split their time between the selling and buying sides.
One question is what happens if you find the perfect Realtor to help you buy your home. They have the same focus and priorities as you, they are very professional, and exactly what you've been looking for.
Great! Now what happens if this Realtor has a house for sale - the ideal house - everything you want? The bottom line is, this Realtor is working for the seller of that home to ensure the seller gets the best deal. Should you use this Realtor or find another one?
Unfortunately, this situation sets up the potential for a conflict of interest. Since the Realtor is under contract with the homeowner, they have an agreement to use their negotiating skills in selling the home. This can be done, but it's a little tricky.
If you should run into this situation, the agent would become more like a transaction facilitator than that of an agent and could work on behalf of both parties, however, this is not the ideal situation and should be considered carefully to ensure both seller and buyer, get the best representation.
Keep in mind that even when you find the "perfect" Realtor, there can, and will, be challenges.
Very seldom does the sell or purchase of a home go flawlessly. So be prepared to be met with obstacles and be patient as the Realtor works them out.
WHAT YOU SHOULD EXPECT FROM YOUR REALTOR
Working with a reputable Realtor is a huge advantage. Unfortunately, there have been many horror stories of first-time homebuyers being promised the greatest deal ever only to discover that the "Realtor" isn't even licensed or qualified to sell homes.
Although many people are successful in finding the perfect home on their own, most aren't. A qualified Realtor knows and understands the industry and therefore knows how to negotiate the best deal for you.
Their role goes beyond just helping the buyer find a nice home. They also act as a "sanity check" to ensure right decisions are being made and things are in order before, during, and after the deal.
Realtor's areas of expertise include:
Advertising
The Realtor can advertise properties if you're selling your home, for the buyer, the Realtor can show you listings on the Multiple Listing Service (MLS) as well as other media.
Marketing Strategies
Based on accurate information and specific properties, a Realtor will create marketing strategies.
Open Houses or Home Tours
The Realtor will hold a minimum of one, possible two open houses.
Recommendations
Throughout the process, the Realtor should be open to making recommendations and offering information.
Documentation
This covers the negotiations, contract, handling appraisals, closings, etc.
Keep in mind that when you decide to work with a Realtor, you aren't just working with one, you're working with thousands. Realtors network together, which strengthens the position of both seller and buyer. If you're buying a home, you won't just be looking at houses being handled by your Realtor, but the whole network of Realtors, thus increasing your odds of finding exactly what you want at the price you need.
A good Realtor will help you in setting up appointments with lenders as well as meet you at the appointment. They can offer great expertise in this area and will be a huge assistance. Once you locate your home, your Realtor can help you locate housekeepers, gardeners, and babysitters. Their work doesn't stop as soon as the closing is done. Good Realtors will remain in contact with you over the years should you ever decide to sell.
Additionally, below are some important guidelines you should follow when selecting your real estate agent:
Talk with your friends, neighbors, and co-workers who recently sold in your area. Whom did they work with, and were they happy? Would they use this agent or company again?
Go to open houses in your area and observe the listing agents. Do you like the way they are marketing the house? How knowledgeable are they about the house and the market? Are you comfortable with the answers they have to your questions? Are you impressed with their professionalism?
Take note of SOLD signs in your area. This is a sure indication of an active, successful agent.
Interview at least three agents. Try to find out as much about each as possible. Because you will be working closely together, you want to be absolutely certain that you are comfortable with your agent's style of doing business.
Here are some very important questions to ask your agent
1. What are your qualifications, experience, and education?
2. How long have you been selling real estate? How long in this area?
3. What is your track record? How many houses have you sold in the last three months? Will you supply three references from these sales?
4. How will you find buyers for my house? May I see a marketing proposal? Are you connected to a relocation network?
5. What if I'm not satisfied with your service?
Make sure you ask these questions to ensure you are working with a good agent.
Sunday, June 21, 2009
DO YOU NEED A REALTOR ? - THE TRUTH !
You are selling your home, and you want to get the best price you can to maximize your profit.
Do you need a Realtor?
Can't you sell it yourself and save on the commission?
It's best to have an agent on your side who will coach you through the process, be your advocate in negotiations, advise you on preparing your home for sale - and provide access to the most powerful home-selling tool of all.
That tool is the database of homes for sale, locally called the MLS.
You can find property or even have your own property listed on the MLS through a Realtor.
What's an MLS? When you hire a Realtor to sell your house you sign a contract to sell the home, and your home is "listed." Locally, most of these are exclusive arrangements, meaning the sale of the home will result in the Realtor getting paid.
A multiple listing service (MLS) is what it sounds like - a collection of thousands of listings in one database. The service allows Realtors to see what's available throughout a region. Moreover, such Internet sites as Realtor.com offer nationwide listings, exploding the power of the MLS.
How can a sign in your yard and some ads in the newspaper compare with thousands of Realtors seeing your house in that database?
How are all the potential buyers working with buyer's agents going to find out about your house?
Today's market is very hot, and it does favor sellers because of the low number of listings and the large number of sales each month.
So you might be able sell on your own, but for how much and after how long?
The advantage of the MLS is exposure. By letting a large number of people know about your home, you are more likely to get a good price for it in a reasonable amount of time.
But is it worth 6 percent? Sellers pay the entire 6 percent or 7 percent commission on the sale of a home, which consumes $12,000 of the profit on the sale of a $200,000 home. So, is it worth it?
Well, what if you didn't sell the house at all? You might try in vain month after month to sell, and miss out on that great home you wanted to move up into, just so you could save a bit.
Worse yet, you might buy that perfect house assuming you would sell yours soon and wind up paying two mortgages for awhile.
Many gotcha's could surface after the sale without a Realtor's and Escrow Company's support and assistance.
Who Pays the Commission?
Besides, the commission is really paid by the buyer. How can that be possible? It winds up in the seller's column on the settlement sheet, but buyers pay commissions in a certain sense.
Consider this: An automotive manufacturer sells cars to dealers, who then sell them to consumers. Consumers pay for the car, plus they pay the dealer. The dealer's profit is built into the price listed on the window. This practice is so common, we don't think we are paying the cost of the car plus the dealer's profit. We just consider the price vs. the value of the vehicle and, after a little negotiating, pay for it.
In a similar way, the 6 percent or 7 percent commission is really built into the price of the home. Because Realtors' fees are such standard practice, a 6 percent commission probably was included in the price of your house when you bought it 10 years ago. Now you are selling it, probably for a fair bit more, and that 6 percent is still built into the home's value and price. And it is the buyer who pays that price, which includes the Realtor's fee.
Finally, if you want to sell your home quickly, safely and for a good price, nothing beats listing it with a Realtor.
Contact reo.asia@gmail.com for information regarding properties in Costa Rica, Vietnam, Hawaii, and California.
Do you need a Realtor?
Can't you sell it yourself and save on the commission?
It's best to have an agent on your side who will coach you through the process, be your advocate in negotiations, advise you on preparing your home for sale - and provide access to the most powerful home-selling tool of all.
That tool is the database of homes for sale, locally called the MLS.
You can find property or even have your own property listed on the MLS through a Realtor.
What's an MLS? When you hire a Realtor to sell your house you sign a contract to sell the home, and your home is "listed." Locally, most of these are exclusive arrangements, meaning the sale of the home will result in the Realtor getting paid.
A multiple listing service (MLS) is what it sounds like - a collection of thousands of listings in one database. The service allows Realtors to see what's available throughout a region. Moreover, such Internet sites as Realtor.com offer nationwide listings, exploding the power of the MLS.
How can a sign in your yard and some ads in the newspaper compare with thousands of Realtors seeing your house in that database?
How are all the potential buyers working with buyer's agents going to find out about your house?
Today's market is very hot, and it does favor sellers because of the low number of listings and the large number of sales each month.
So you might be able sell on your own, but for how much and after how long?
The advantage of the MLS is exposure. By letting a large number of people know about your home, you are more likely to get a good price for it in a reasonable amount of time.
But is it worth 6 percent? Sellers pay the entire 6 percent or 7 percent commission on the sale of a home, which consumes $12,000 of the profit on the sale of a $200,000 home. So, is it worth it?
Well, what if you didn't sell the house at all? You might try in vain month after month to sell, and miss out on that great home you wanted to move up into, just so you could save a bit.
Worse yet, you might buy that perfect house assuming you would sell yours soon and wind up paying two mortgages for awhile.
Many gotcha's could surface after the sale without a Realtor's and Escrow Company's support and assistance.
Who Pays the Commission?
Besides, the commission is really paid by the buyer. How can that be possible? It winds up in the seller's column on the settlement sheet, but buyers pay commissions in a certain sense.
Consider this: An automotive manufacturer sells cars to dealers, who then sell them to consumers. Consumers pay for the car, plus they pay the dealer. The dealer's profit is built into the price listed on the window. This practice is so common, we don't think we are paying the cost of the car plus the dealer's profit. We just consider the price vs. the value of the vehicle and, after a little negotiating, pay for it.
In a similar way, the 6 percent or 7 percent commission is really built into the price of the home. Because Realtors' fees are such standard practice, a 6 percent commission probably was included in the price of your house when you bought it 10 years ago. Now you are selling it, probably for a fair bit more, and that 6 percent is still built into the home's value and price. And it is the buyer who pays that price, which includes the Realtor's fee.
Finally, if you want to sell your home quickly, safely and for a good price, nothing beats listing it with a Realtor.
Contact reo.asia@gmail.com for information regarding properties in Costa Rica, Vietnam, Hawaii, and California.
ARE YOU MAKING THE RIGHT DOWN PAYMENT?
Okay, you're getting ready to look at houses to buy.
You have a pretty good idea what price range you need to look in, but what about the down payment?
How much will you need to be prepared to put down and what should you put down?
The standard in buying a house is between 5% and 10% down payment. For example, if you were looking to buy a$100,000 house with 5% down, which would be $5,000, the remaining$95,000 would be financed with a mortgage company. Let's say you have owned that house for one year and the property appreciates in value by 10%, making it's value at $110,000. What that means is that you have gained $10,000 on your initial investment of $5,000. That is considered high-leverage and is a great return on borrowed money.
However, with any investment, especially real estate, profits can go up and down. Going with this same example of a $100,000 house and a 10% down payment, if the value of the house goes down in that first year by $10,000, you now own a house worth $90,000, meaning you have lost 100% of your investment. Just remember, that if value does go down, there are several factors that can just as easily bring it right back up.
The more you put down, the less money will be financed in your mortgage, meaning your monthly payment will be lowered. If you can put more down, the better. However, not everyone is in that position so rather than putting yourself in a tight financial situation each month, you might consider waiting another year to save a little more.
Remember, if your down payment is minimal, the choice of loan problems will be limited. In addition, if you are using a gift as your down payment, there are other limitations, and if you need the lender or seller to help cover some or all of the closing costs, there will be even further limitations. Finally, if you plan on using money from your 401-K or retirement plan, there will be different loan programs and rules.
In addition, be sure you account for all your expenses. Whether you buy a new or used home, there will be expenses once you move in. For new homes, there are appliances, draperies, and for used homes, there are usually repairs. When deciding the amount to use toward a down payment, just keep in mind that you should have a little tucked away for those other expenses.
Tuesday, June 9, 2009
Interesting Facts about Vietnam
Vietnam Introduction
Capital: Hanoi
Total Population: 85,140,000
Annual growth rate: 1.2%
Density: 275 inhabitant/km²
Urban population: 27.4%
Population of main cities excluding suburbs: Thanh Pho Ho Chi Minh City (5,200,000); Hanoi (2,100,000); HaiPhong City (825,000); Danang City (670,000).
Ethnic Origins: There are more than 54 ethnic minorities throughout the country, but the Kinh are purveyors of the dominant culture. Most ethnic minorities, such as the Muong, a closely related ethnic of the Kinh, are found mostly in the highlands covering two-thirds of the territory.
The Hoa (ethnic Chinese) and Khmer Krom are mainly lowlanders. The largest ethnic minority groups include the Hmong, Dao, Tay, Thai, and Nung.
Official Language: Vietnamese
Other languages spoken: English, French and Chinese are also spoken.
Business language: Vietnamese, then English and Chinese. French, Japanese and Korean are also spoken.
Religion: Buddhists 85%, Christians 8%, Others 7%.
Capital: Hanoi
Total Population: 85,140,000
Annual growth rate: 1.2%
Density: 275 inhabitant/km²
Urban population: 27.4%
Population of main cities excluding suburbs: Thanh Pho Ho Chi Minh City (5,200,000); Hanoi (2,100,000); HaiPhong City (825,000); Danang City (670,000).
Ethnic Origins: There are more than 54 ethnic minorities throughout the country, but the Kinh are purveyors of the dominant culture. Most ethnic minorities, such as the Muong, a closely related ethnic of the Kinh, are found mostly in the highlands covering two-thirds of the territory.
The Hoa (ethnic Chinese) and Khmer Krom are mainly lowlanders. The largest ethnic minority groups include the Hmong, Dao, Tay, Thai, and Nung.
Official Language: Vietnamese
Other languages spoken: English, French and Chinese are also spoken.
Business language: Vietnamese, then English and Chinese. French, Japanese and Korean are also spoken.
Religion: Buddhists 85%, Christians 8%, Others 7%.
Wednesday, June 3, 2009
Legislators favor lifting of housing limits for Viet Kieu
Many National Assembly deputies feel every overseas Vietnamese citizen, has the right to own more than one home in Vietnam
The debate continued Tuesday over draft amendments to the Housing Law and Land Law that could expand house ownership rights in
Several deputies said the right of overseas Vietnamese to buy houses should not be limited, so that an open environment for property trading is created and that there is equality between them and local residents.
“We suggest that the National Assembly (NA) considers allowing overseas Vietnamese to have the same rights as locals when it comes to buying houses,” said deputy Pham Xuan Thuong.
Thuong said the nation’s constitution and Citizenship Law states that every Vietnamese citizen living abroad but holding Vietnamese citizenship deserves the same rights and shares the same responsibilities as local residents.
Tran Thi Dung, meanwhile, said the expansion will contribute to improving the investment environment, and encourage Vietnamese expatriates to return home and serve the cause of nation building.
The current Housing Law, which took effect in 2006, allows only certain categories of Viet Kieu to own houses.
These include: individuals with permanent resident status in Vietnam; those doing long-term business in Vietnam; those recognized as contributing to national development; scientists and cultural experts wanting to conduct research in Vietnam for national development; or individuals who have resided in Vietnam for 6 months or more.
The draft amendment broadens the categories to allow any Viet Kieu with Vietnamese citizenship to buy houses here. It would also grant home ownership privileges to overseas Vietnamese currently working in Vietnam with special skills deemed necessary to meet domestic demand; those that currently have a Vietnamese visa exemption and permission to reside in Vietnam for 3 months or more; or those having a Vietnamese spouse currently living and owning a house here.
Ngo Duc Manh, vice chairman of the NA’s Committee for External Affairs, said many Vietnamese expatriates want to maintain strong links with their homeland and that allowing more Viet Kieu to buy houses in the country will facilitate their doing business in the homeland.
“If we recognize three million Vietnamese expatriates, especially those holding Vietnamese citizenship, as an integral part of our demography, we cannot discriminate against them,” said delegate Nguyen Ngoc Dao from
Some deputies also said the right of overseas Vietnamese to buy homes could create an open environment for property trading.
According to the draft amendments, overseas Vietnamese have the right to lease or authorize others to manage the house, and the land it stands on. However, they are not allowed to use the house as financial contribution or as a valued property in other deals.
Tran Du Lich proposed that Viet Kieu be granted the right to get compensation if the state revokes their land, while Tran Van Tan said Viet Kieu who own houses in
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