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What Information To Include In A Sales Agreement

A sales contract makes any transaction valid and legal. Without it, there’s a possibility that prices and other terms and conditions might not be adhered to by one of the parties involved. But with the execution of such contract, both parties are protected. Should problems occur and remain unsolved, they have the right to take legal action against the erring party.

A purchase agreement is a contract entered into by 2 parties involved in the sale of a piece of real estate property regardless of whether it is a newly constructed structure or an old home. It is in this document where all the details of the property and the information about the seller and buyer are stated.

For home buyers, it is strongly recommended that you read thoroughly and understand the terms specified in the document. These include the sale price, deposit needed, who the escrow agent is, closing costs, among many others.

The sellers, for their part, should also ensure that they include all pertinent information in the contract. It’s your responsibility to supply this document to complete the sale of your property. Depending on which state you belong to, make sure that you use the right purchase agreement form. Some states have their own real estate forms whereas the others use the standard format.

So what specific information should you put in the sales or purchase agreement?

Location of the property. The address of the house needs to be clearly stated – the exact house number, street, district and state.

Condition of the property. A sales contract should also provide information on the physical condition of the residence, whether it’s a new or old home as well as the date it had been constructed.

Sale price. This is the price of the house that the seller and buyer have agreed to.

Deposit. This is the amount the buyer needs to provide in advance. It will form part of the total selling price and is often kept by a third party also referred to as an escrow agent.

Names of seller and buyer. The two parties concerned need to be named in the document and they are required to affix their signature to legitimize the transaction.

Along with the purchase agreement, the seller should also offer additional disclosure forms. These are the real estate disclosure and lead paint disclosure forms. The first one provides details on the real condition of the property including physical defects and repairs done. The lead paint disclosure form is generally needed from owners of homes built before 1978. This is to inform the buyer of the potential hazards of lead paint which could have been used in the property.

Purchase agreements are a very vital element of any real estate transaction that involves the sale of a home. If you are not familiar with this, it might be a sensible idea to consult a real estate lawyer before finalizing the sale of your property.

Another great article by Sunalta Homes for Sale Free reprint avaialable from: What Information To Include In A Sales Agreement.

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Realtor: How To Keep Yourself Safe From Possible Dangers

When you talk about dangerous careers, the ones that immediately come to mind for most individuals are things like police officer, commercial fisherman, and firefighter; while these are certainly some of the most dangerous careers that you can be in, most people would never suspect that being a realtor could be a dangerous job.

While realtor does not appear like a career that would put you in danger anymore than maybe being an office employee might, it can actually be a lethal form of employment. While it is far from common that realtors are victimized by people in the course of their work, it is unfortunately the case that some unsuspecting agents have fallen prey to unscrupulous violent criminals right across the country. Because a realtor’s job is to show people-typically strangers-homes where nobody is home, they can sometimes easily become victims of theft, assault, or worse.

Unlike the recent case of famous New York realtor Linda Stein-who was found to have been murdered by her personal assistant-most realtors who become victims of violence are attacked by people they do not know. And while several people consider that only women fall victim to this type of tragedy, it is not really the case; men can be easily overwhelmed and become a victim of violent crime in this type of situation also, though it is a little less likely as men can be more tough to overwhelm.

All realtors must bear in mind that even the most normal looking people can be lunatics, therefore don’t be tempted to trust individuals based on how they look or sound. Not every dangerous person will come across like a raving psychopath when you speak to them on the phone or meet them at an open house. Ted Bundy, prolific serial murderer, looked quite normal and attractive to his victims however was a very dangerous individual.

The best way to protect yourself against violent assault is to take precautions when you will be in vulnerable situations, like:

-Insist in meeting any and all clients at your office before you show them any properties. Make certain that your coworkers see the new clients too.

-Take photocopies of your customers’ ID for your files as a precursor to obtaining financing, anyone planning on harming you will think twice about doing anything if you have their ID information.

-Don’t hold open houses by yourself. Have at least one other person there with you to deal with problems.

-Take your own car to show customers homes so that you are in control; have customers follow you.

-Trust your instincts! Sometimes we can be truly concerned about appearing foolish than our own safety, but it’s a lot better to feel foolish than to allow yourself to stay in a dangerous situation.

When it comes down to staying safe while still assisting customers in buying new homes, it’s all about trying to make it tough for someone to take advantage of you. Communicate with the people you work with and assume that you will need to identify your clients at a later date. If your office works together to develop some good office policies, it will be easy to keep yourselves safe.

Another great article by Kevin Meehan Real Estate, Bauer and Gates Real Estate Unique version for reprint here: Realtor: How To Keep Yourself Safe From Possible Dangers.

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Real Estate Business: How To Start One

The main purpose of this article is to serve as a complete checklist for getting ready, creating and structuring your own real estate business. I will also point out the benefits of detailed planning and management, and the pitfalls for failure to do so. First things first: what’s the name of your new company? What type of business entity will you put up? A sole proprietorship is the quickest and easiest; but, it might lack the necessary asset and liability protection warranted by your business model. My personal favorite has always been the Limited Liability Company (LLC). It’s quick, inexpensive, and provides individual shelter.

In addition, in which state will you register to do business? Are there any state and/or local licensing requirements? All of these questions should already be answered in your business plan. Some of you may be thinking, “I am going to buy foreclosed properties, rehab them, and sell them for a profit. What further explanation or planning do I need?” Well, if that is your mindset, stick to your full-time job. I suggest going online (Google it) and downloading a business plan template to assist you with development.

In addition to your business plan, you better have projected financial statements, including a cash flow forecast, projected income statement, and anticipated balance sheet. There are several benefits of generating these statements. Clearly depicting your yearly operating expenses let’s you recognize the number of real estate transactions you need to successfully complete in order to break even and/or realize a profit. Taking the time and effort to implement these tasks will help you overcome some of the most important impediments when starting your real estate business.

The biggest recurring mistake I’ve seen amateur entrepreneurs make is quitting their full-time job even before completing their very first real estate deal! Under-capitalization is one of the biggest oversights when starting a new business. If you do plan to quit your full-time job, make certain that you have enough of a monetary cushion to cover your living expenses for twelve months. Ideally, you want to have a surplus in your bank account so as to fund your business (i.e. – entity formation fees, licensing, marketing expenses).

Finally, will you be self-employed or a business owner? No, they are not the same thing! Being self-employed means when you quit your job, your business stops working. If you are not marketing for leads or answering phones, then no one is. Being a business owner (hiring and maintaining employees) allows the liberty and independence that entice people to start their own businesses in the first place. Most amateurs quit their full-time job expecting to start and sustain their own business profitably, while playing golf or going to the beach four days a week. WRONG! The transition from self-employment to business ownership is the hardest obstacle to overcome. It took me almost a year of interviewing lots of job applicants, working fourteen hour days, pulling all-nighters, and sacrificing my personal and social life to successfully build and develop each of my businesses to the point where they could all run on “Auto-Pilot.”Keep in mind, a business is only as strong as its weakest link.

Another great article by Gillespie Ghislaine Real Estate, Dynamic Properties Unique version for reprint here: Real Estate Business: How To Start One.

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Understanding Real Estate Ads

With the costs of homes and interest rates plummeting to record lows, a lot of people are in the market looking for the right home to move into. But when it comes to clever selling tactics, real estate ads are notorious for covering up the true condition of a house or condo.

While the real estate agent may be working in the best interest of their client, it’s absolutely a “buyer beware” situation when it comes to certain words in the listing. Learn how to read between the lines of advertisements featuring homes for sale so that you can make an informed decision before everything goes to waste on a “handyman special.”

Don’t let the enticing lingo of real estate adjectives lead you astray on your quest for the home of your dreams. Before you can even get to the point of calling professional movers to schedule a move, you need to wade your way through the murky waters of real estate listings.

Here are some of the most common tip-offs that the ad you are looking at is a real estate agent’s creative interpretation of a problem house:

-Words and phrases like “ideal for one,” “cozy,” and “intimate,” simply means: tiny, compact, and small. Homes that are posted with these words are probably no bigger than your current closet.

-”Vintage” and “retro” means that the home is old (duh!) and has a lot of outdated features, but there may be a lot of value in the property, once you renovate it, of course.

-If a house is listed as having “potential,” “needs TLC,” “handyman special,” or “a loving touch goes a long way,” expect to walk into a Money Pit situation. The entire home will need to be totally renovated.

-A “low maintenance” home probably doesn’t have much of a surrounding yard around it. Not a good choice if you have dogs or children.

-”Rustic” homes are probably going to need a good paint job. The flooring may also need to be revamped.

-”Backs to open area” or “no neighbors behind” is a good indicator that the house is on the location of a future development project.

The images of a real estate ad can also reveal a lot about the house, not by what you can see, however by what’s missing. Here are some examples:

-Pictures showcasing the massive yard of a home or the state-of-the-art gym on the complex give you a hint that the actual interior of the home itself is in bad shape.

-If the listing shows various shots of the inside of a house, but nothing on the outside, there most likely isn’t much of a yard on the property.

-Newly renovated houses will have shots of the redone interiors, so if pictures of the bathroom or kitchen are missing, you’ll probably have to invest in getting them remodeled.

Now that you have an idea of how to read between the lines of the text in a real estate ad as well as the images, you can make a safer decision on what homes to check out before you purchase and get in contact with your local movers.

Another great article by Young Dawn Real Estate, Baranof Realty This article, Understanding Real Estate Ads is available for free reprint.

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Can You Survive In Today’s Real Estate Market?

This event is all too familiar. You see a tremendous property that is attracting a lot of serious buyers and before you can even prepare for a meeting with the seller, the property is sold way higher than the asking price. One wonders how lucky this seller is when you see a nearby property which has been languishing on the selling block for months on end.

On the other hand, average home prices declined by 3.5 % from the same period last month. As home prices are expected to decline, stakeholders are digging deep in their trenches. Conditions in major markets remain volatile, and sales or buying techniques that worked so well last month may not yield the same results this time. For people who are in for the long haul, there are three things to remember – adjust, understand and capitalize.

Why are market conditions thus volatile?

The writing on the wall is obvious – home sellers who don’t seem to be inclined to adjust their asking price will have problems moving their home for sale. On the other hand, people who understand how the wind blows in real estate markets and react accordingly will have greater chances of getting ahead of the rest of the pack. We are just coming off from a frenzied phase where we saw depressed inventories in most segments in the market. This is coupled by high demand which placed an upward pressure on home prices. A higher number of buyers entered the market sooner than planned primarily as a result of of a strong anticipation of an uptick in interest rates and the get-go for the harmonized sales tax.

But, the situation in the market created a complete turnaround, but these finally happened only when a near record number of householders have already place their property on the selling block. What followed was the feared glut in the market as buying frenzy finally lost steam and stakeholders took their positions by the sideline.

Move out of the market and try home rental

Home rentals appear to be the hottest pick of the times and we are seeing an increasing number of condo development projects. Notwithstanding the depressed condition, long-term prospects remain as bullish as ever. For the seasoned investor, this is still the best time for some long term investments. You’ve got to remember that real estate markets can ultimately make a strong rebound. When this finally happens, the windfall gains from your principal residence can be shielded from taxes. This is definitely the best financial move for those that are looking at some real forced-savings.

So what would be your best shot beneath the current market condition? You must observe scarce properties that haven’t gone through major repair or restoration. One should be aware of the fact that the level of gentrification rises when the market situation becomes tight.

Another great article by Lakeview Properties This article, Can You Survive In Today’s Real Estate Market? is available for free reprint.

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Identifying The Types And Benefits Of Housing Tenure

Housing tenure is typically used in terms of residential real-estate and describes the legal status under which individuals have the authority to occupy their accommodation. According to the statistics of properties, there are more than 250,000 housing tenures. The real estate housing tenures mostly live in apartments and multi-family homes, whereas, the most frequent forms used are tenancy in which rent is paid to a landlord and owner occupancy. Surveys conducted mostly include questions about housing tenures because it is a good alternative for income.

There are many types of housing tenures in the current trend. Over the course of years, a number of new types of housing tenures have been introduced in the market, which is then used to determine the types of housing. People differentiate from one form of housing to another through its physical form, built, location and that how uniquely they’re designed from other houses. Experts claim that these new tenures are modified kinds of tenancy and owner-occupancy. The types of housing tenures are:

Owner -occupancy – It is a kind of housing where the landlord owns both the house and the land. Occupants have the right to change the building and land as they want. In some jurisdiction, it provides certain legal rights in relation to the matter. Owner-occupancy has been changed and utilized in various other types of tenures like condominiums, apartments, and housing cooperatives.

Tenancy – It’s a type of ownership in which the tenant holds property with some form of title. The advantage in tenancy is the cost of residence. Because tenancy only includes rent of space for living, and the cost is typically less as compared to buying a house.

Condominium – Condominium allows you to own the apartment or house that’s assigned for you but common areas like cooling system, elevators and hallways are owned by the house owner. A fee is charged for maintaining the common areas. The boundaries of the space allotted are defined in a legal document. Usually it includes drywall around a room, that allows some interior modifications. It can consist of multi-dwellings (e.g. apartments) or single-family dwellings.

Cooperative housing – In cooperative housing, an apartment or a house is owned by a corporation and each shareholder has a right to occupy but not own. Cooperative housing comes in 3 equity structures; market-rate housing cooperatives, limited equity housing cooperative and zero equity housing.

Public-housing – They are also known as government housing and are used to relocate squatter areas to a new housing area. They are properties owned by governments and are used to provide housing for homeless people or individuals who are relocated. The goal of public housing is to provide reasonable housing to the poor and eliminate poverty.

Apartment – Apartments are housing units that occupy one part of building. Apartments can be owned by owners or rented by tenants. Apartment buildings have a high-level of safety and are more convenient than houses when it comes to maintenance and landscaping. And, the whole price for construction of an apartment is less than what is required for constructing a home.

Another great article by Golson Cecile Real Estate, Homer Real Estate Assoc. Free reprint avaialable from: Identifying The Types And Benefits Of Housing Tenure.

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How To Get Your Ideal Home In An Auction

Property auctions can be an exciting and overwhelming experience for first timers. Being aware of the auction process, various bidding techniques and making sure that all sides are covered are important first steps to winning your ideal home.

You have decided to try for the home of your dreams and know what you can spend. But, the house that you want is being sold at auction. You may feel unsure about approaching a situation like this, but there are plenty of strategies you can use to give you the upper hand in bidding.

Tips for Starters

The first thing to know is not only the value of the property, but the budget that you have to purchase with. Mortgage brokers can help you determine an appropriate level that would fit your current situation. Once you have established your ceiling price, don’t bid above that level. It is good to not set your threshold at an even, round figure. Instead of leaving it at 500,000, you would be better served to set it at 515,000, which will provide you an advantage over another bidder who stops at a round number.

If you have never been to an auction, It is to your benefit to attend several to see how they work and how people bid. If you know who the auctioneer is, research their background and technique. You can also learn a lot by observing the behavior and body language of both the bidders and the auctioneer. This will make it easier to see what property it is about to be won and what occurs right before that happens. Once you have located the property you would like to purchase, contact the real estate and advise them that you are interested in it. You may even get the chance to buy the property before it is placed into the auction.

Knowing What You’re Getting Into

Knowing everything you can about the property you’re planning to bid on guarantees that you get what you’re really after. It’s important to have the property you are looking at inspected for bug problems and structural integrity. This way you know specifically the condition of the house and any possible issues that you may run into. In the event that you’re uncomfortable with the process of bidding for a home, referring it to a professional can make a huge difference during the buying process. Their past experiences and professional advice is also useful as it can assist you through the process of answering questions and through determining how much you should spend for your new home.

Home loans are vital parts of your property purchase, and you need to sit down with a financial professional before going into the bidding process. This person can assist you in the process of handling of all associated fees, deposits and other aspects of the purchasing process. He or she can also inform you of any costs you need to add into the amount that you are able to pay for the home. This way, you will not have any monetary surprises that turn up after you have won the property and are required to buy it. These costs can include such things as legal expenses and finance fees.

Another great article by Reginald Roorda Real Estate, Prudential Jack White R.E. Check here for free reprint licence: How To Get Your Ideal Home In An Auction.

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