Buying a Home with Great Resale Value

Whether you want to purchase a home to live in for several years or to resell quickly, location will certainly play a role in its resale value. Chances are that you may not live in the same home your entire life, so location and resale value may be important considerations when purchasing a home.

The most important step in finding a home with resale value is choosing the right neighborhood. One of the first things you may want to consider when researching a neighborhood is the economic stability of the neighborhood.

A desirable area will:

• Possess a good mixture of residential and commercial districts
• Have jobs for future residents
• Demonstrate consistent economic growth
• Be supported by a strong local government

Another important factor to consider as you try to find the best neighborhoods is the quality of the local school system. Even if you don't have children, you should try to research the closest schools before purchasing a home. This provides a good criterion to factor in of the attitude of the neighborhood and the type of people you’ll be surrounded by. High scores can mean parents are fully invested in their local school system and their children and this translates into how they feel about their homes.

By placing a call to the local school district, you may be able to find out what type of funding area students receive, how well students have performed on standardized tests and whether or not the district will be opening or closing any schools in the foreseeable future. Regardless of where the home is located, the quality of the nearest schools will almost certainly be an important factor for potential buyers when you try to sell the home.

Beyond the schools and local government, there are a number of factors you may want to consider regarding the home's immediate surroundings. For instance, you may want to look for property in neighborhoods where most of the homes are similar in size and style. Additionally, the ideal location for a home is nearest the center, away from busy streets and bordering only other homes, as opposed to businesses, apartment complexes or schools.

Finally, you may want to think about the traffic patterns that surround the neighborhood and whether the street is used as a shortcut between two busy roads.

Though you may be looking for properties that lie in the middle of desirable neighborhoods, you should also consider how convenient the location is for a potential homeowner. The best homes will be located near all the essential businesses and have “walkability” - such as grocery stores, dry cleaners and banks.

In short, the ideal neighborhood will represent the best of worlds, offering residents both privacy and convenience.

Screening for Quality Tenants to Rent your Property

One of the most stressful elements of managing your investment property is dealing with difficult tenants. Between killing your cash flow with late rental payments, and causing financial nightmares via the damages you continuously have to repair (and let’s not forget the small fortune you spend on evicting bad tenants); why do we go through all the trouble?

What most people don't realize is that the vast majority of tenant-related problems can be eliminated by simply avoiding bad tenants altogether with thorough screening. Here are a few tips to improve your screening process.

The most essential piece of the screening process is the application. Provide a thorough application to prospective tenants that include all the pertinent information you would like to know, within the legal limits of course. Make sure that the application is completely filled out, and that you have a copy of the applicant's valid driver's license and a second picture ID and check that the name and information on the ID matches that on the application.

Next, you'll have to investigate the applicant's financials. Request the past three months' pay stubs to be sure they can afford your rent. Call the applicant's employer to verify that they work there, that there are no problems related to the applicant, and that there's no reason to believe the applicant will be unemployed in the near future. Also, request their three most recent bank statements.

While this is not always required, the applicant should be willing to provide them; if not, then you have a pretty good reason to be wary. It is also important to check the applicant's credit and criminal history. A credit score above 600 is usually considered reasonable for a tenant, and you want to steer clear of anyone with a history of evictions or criminal behavior.

On the application, make sure you include a space for the applicant to provide information about previous rental engagements including landlord contact information and rental amount.

This is important so that you can call the previous landlords to inquire about the tenant. Use caution when dealing with contacts, as many applicants use their friends to pose as landlords and vouch for them. One good method of weeding these applicants out is to ask the "landlord" about the rent, quoting a price other than that provided by the applicant. If the person you are speaking to doesn't correct you, then they were probably not the landlord. Additionally, inquire as to whether or not the tenants were able to get their security deposit back or was it held because of damage. This will give you a good idea about how the prospective will treat your rental.

You should also have any and all parties residing in the rental complete an application.

If you adhere to these methods responsibly, selecting quality tenants for your properties should not be a problem.

You Still Need a Realtor to Buy Direct from the Builder

It always seems simple to walk into a model home and deal directly with the builder but that’s not the best idea. More people are taken advantage of when alone than with a real estate agent. All the paperwork you’re required to sign, disclosures, clauses and most important releases.

When you sign a release you practically give up your rights; it could mean forfeiting your right to keep your deposit or setting the settlement date in stone for you but a contingency for the builder.

Every page you initial could be detrimental in the end if you are not represented professionally. Sure, there are laws and guidelines that say you are protected from predatory requirements – RESPA Laws – however if you don’t know how to apply those guidelines to your transaction how do you know if you’re being taken for thousands of dollars?

Many homebuilders offer incentives as a way to entice you to purchase their home however those incentives often mean you must use their in-house lenders and their title escrow companies; this is far from the truth because you can use whatever lender or title escrow company you choose and in the end, the builder cannot tie the incentives to a specific lender.

Are your discounts really discounts or are they embedded somewhere in your sales package? Often a builder will show you all the discounts and incentives they’re providing to you but the loan package is packed with excessive and useless fees that make up for all those discounts they’re giving you. This is why you need a realtor to accompany you for any real estate transaction. It may seem like a simple decision to walk into a model home and deal with the salesperson but it could cost you thousands of dollars.

That salesperson works solely for the builder and I bet you’ll sign an acknowledgement of this statement. They must disclose certain items to you but again they work solely for the builder and without professional representation you are on your own to learn the ropes.

For any real estate transaction take advantage of all the knowledge a real estate agent or broker has to offer. You’ll avoid many of the traps home builders have waiting for you.

Do I Really Need a Realtor

Everyone is looking for ways to save money during this recession including DIY everything. And although times look bleak there are many buyers out there ready to purchase your home. Question is can you go it alone or handle everything yourself?

Many homeowners believe they can go it alone and find themselves looking for a professional to save them.

With the advice of a real estate agent you’ll have a much better chance of selling quickly; recession or not.

But there are several crucial reasons for using a real estate agent.

First off, a real estate agent is trained in keeping an eye on how the market is moving and responding to different circumstances. This will allow them to tell you the important information as it develops. If you were selling your property by yourself you would be on your own as far as figuring out what a recession is doing to the real estate market including competition in your own backyard and sales and trends.

Second and most important, a real estate agent knows all the legalities, requirements and guidelines the buyer and seller must adhere to. You have no idea how many legal forms you are responsible for. You wouldn’t want to get caught with a voided contract after laying out tons of cash because you forgot a key item, would you? How about getting stuck with a one-sided contract in favor of the buyer?

Additionally, in order to improve your odds you will want a real estate agent helping out with all marketing related tasks. For instance, your agent will be able to schedule open houses, send out flyers, add your home to multiple websites, call clients and other agents in the market, and much more. These are all marketing tasks that need to be done successfully, and during a recession it is much better to use a real estate agent.

Sure, there are many ways to save during this recession but holding back on professional services during the sale of your home is definitely not one you want to undertake.

California Foreclosure Update

1. Foreclosure filings in California dropped to levels not seen since since late 2008 when governmental intervention temporary slowed the foreclosure filing process.

2. Notice of Default filings dropped 12.8 percent month-over-month and Notice of Trustee Sale filings fell 12.5 percent from the prior month.

3. The foreclosure filing percentage decreases are more moderate when adjusted on an average daily basis due to the fewer filing and trustee sale days in February with a 3.1 percent drop for Notice of Default filings and a 2.8 percent decline for Notice of Trustee Sale filings.

On a year-over-year basis foreclosure filings were down as well, with Notice of Default filings down 29.6 percent and Notice of Trustee Sale filings falling 17.0 percent from February 2010. Acivity on the courthouse steps slowed with fewer sales leading to a 24.5 percent decrease in sales Back to Bank and a 20.3 percent drop in properties purchased by Third Parties, typically investors. For the first time, Third Party investors saw a drop in the average Time to Resell a property, down 3.1 percent to 156 days.

Should You Consider Condo Living

Purchasing a condo can be a great option for many buyers. Condos frequently feature desirable locations, minimal maintenance, and smaller price tags than single-family homes and home buyers today are considering a simpler lifestyle. But condo living, good or bad, can present unique challenges;

Pros

1. Amenities. In many condominium communities you'll find you have access to a clubhouse, pool, exercise facilities, concierge, or even door security. These great perks cost you nothing extra and are quite the draw for many buyers.

2. Cost. In many cases, you can find a condo in your preferred neighborhood for a cheaper price than a single family detached home. This can come in handy when parents want children to go to the best public schools in the area. They may not be able to afford the house around the corner, but they can afford the condo in a community.

3. Maintenance. Most condominiums require very little maintenance from their tenants. Yard work and the like are done and paid for through your monthly dues. Reserve funds are saved up by the condo association for larger periodic repairs, such as roof replacement and painting.


Cons

1. Monthly dues. While the condominium unit itself may come with a cheaper price tag, once you add in monthly dues or fees you could see yourself being priced out of the property. While monthly condo fees cover on-going maintenance and contributions to a reserve fund for small emergency repairs, condo associations may assess separate fees for unexpected expenses or to fund major property improvements like repaving.

2. Resale. There are fewer buyers looking for condos. Large families are generally on the hunt for a single family dwelling.

3. Limited Space in General. You may luck out and find a condo with a garage or storage units. If so, you are in the minority. If you have lots of things to store, and no extra space to put them, remember to add in a storage rental space into your monthly expenses before buying.

4. Less Privacy. You share a wall with your neighbors. You may even have neighbors above or below you. In this case, remember the noise factor.

5. Subletting. Did you know that a condo board can make it "illegal" for you to rent your unit out? Be sure to check out the rules before you buy, especially if you are considering using the property as a rental unit at some time.

Condos make ideal homes for singles and couples who lead busy lives and don’t spend much time at home, but consider your lifestyle—both now and in a few years—and make sure a condo really Is the right fit for you.

Buying Preforeclosures

An often overlooked home buying strategy these days includes looking for pre-foreclosed properties. Pre-foreclosures are known as properties that have reached the final stages before they get repossessed or taken back by the lender or bank. The owner is still in complete control of the property or home, although the bank or lender will repossess soon if the owner doesn’t attempt to rectify the situation.

When buying real estate, there are several benefits to pre-foreclosures. Although there are several obvious ways to purchase a home, pre-foreclosure is a great option. Even with its benefits, many people miss out simply because they aren’t familiar with pre-foreclosures.

In most cases, the owner has no choice but to sell the house, and therefore will listen to just about any offer they receive. Due to this very reason, you can find pre foreclosures for sale at nearly 40% off market value. This is an ideal time to purchase, especially if you are looking to save a lot of money.

Along with the great pricing you receive, you’ll also have the luxury of dealing directly with the owner and the real estate agent - no third party banks involved, like with short sales and foreclosed properties.

This is a great advantage, with buyers being in total control of pre-foreclosure sales. In the event that the home owner decides to turn down your offer and cannot find another buyer, he will lose everything. Even if you offer the owner a small price, he will be able to make a little bit of money selling the home.

You can find pre-foreclosures that are up for sale pretty much the same way that you can find homes in which the bank already has control of. Ask your real estate agent or you can look in the local newspaper, or on the Internet. Once you have found a pre-foreclosure for sale, it’s up to you and the real estate agent to seal the deal and get the home of your dreams at a very affordable price.

When you compare foreclosed properties with pre-foreclosed properties, you’ll find that there is less competition involved with pre-foreclosures. Not only are pre-foreclosed homes a better option than a foreclosure but many times you can pay less than market value for the home and instantly reap the benefits of increased value.

Meet with a real estate agent and ask about pre-foreclosed properties and negotiations to get you in a home quickly.

Is It A Deal Or A Scam

Many homeowners have been acting in a fit of desperation and not thoroughly checking out real estate facts, leading them into unaccommodating scams. Con artist have successfully duped homeowners time and time again from everything including Title fraud, Local and Overseas investments to Foreclosure frauds, just to name a few.

I Can Save Your Home!”

There are plenty of sales pitches a scam artist rescuer will explore to get your home and money. I can save your home and your credit”is a typical phrase to lure homeowners to sign over their title or get the mortgage payments sent directly to them.

In some cases, the "rescuer" will also try to collect a stiff fee before they assist the homeowner. In the worst cases, the "rescuer" may also obtain a second loan on the property, take the proceeds and leave town, or rent out the home -- forcing the current distressed resident to be evicted. And while the ownership may have been transferred to the "rescuer," the homeowner still owes the monthly mortgage payments to the bank.

And on the flip side, it's even more offensive when lenders who offer to "save" the troubled homeowner suggest refinancing their home with high fees, high interest rates and a new costly loan.
There is a simple resolution to stopping this abuse from a scam artist and that is talking to a real estate agent AND an attorney before you sign any documents.

Is that Overseas Investment too Good to be True?

Con artists utilize this real estate scam to play on your desire of getting something for very little - an easy investment. Investors are told to send investment checks, and initially they receive a small check in return, supposedly "proving" the system works. Then, their returns dwindle and no other checks are received in the mail. People tend to fall for the overseas angle because it is exotic-sounding and they think they are, in some way, taking advantage of a new discovery or resource others are not aware of. But, if you are not familiar with overseas investments or the real estate market, why take a chance on someone's word?

So what is the simple resolution to stop a con artist in their tracks before getting a hold of your money? Consult a reputable real estate agency or just call up a legal consultant. Do not use the con artists contacts use your yellow pages and call on your own!