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The Phoenix Area Housing Market

October 19th, 2009

The housing market in the Phoenix area has had some amazing roller coaster type rides in recent years. As you have probably heard, we had a very rapid spike of a buying frenzy in 2004 thru most of 2005 causing prices of homes to sky rocket out of control. What goes up must come down in most cases and this was so true in our real estate market. When this buying frenzy and out of control pricing ended it was blunt and abrupt. The housing market all but stopped. What happens then? Prices started to plummet. Slowly at first and then it kept dropping and dropping. At least a year longer than most people could foresee. Here we are middle of 2009 and we hope we have finally seen the end of our prices decreasing beyond our imaginations. Builders have folded since they could not compete with the resale prices being below their build costs. Many people caught up in the buying frenzy have been forced to short sale their homes or be foreclosed on due to many circumstances from job loss to the end of an interest only arm type loan to simply caught in one of the worst loans you could imagine.

Home prices continued to drop and investors and others that were either moving to the area or first time home buyers and others not caught up in all of this are loving how much home they can get for their money and they are literally swiping them up almost as fast as they hit the market, if they are priced right and look nice. Even those that are in dis-repair are being bought, updated and re-sold as nice move in ready homes. We still see so many lender owned and short sale properties on the market but we are beginning to see them go off the market at a much higher rate. Beside all the obvious reasons for this, it is believed that since the regulations for real estate agents listing short sales has recently been implemented to only allowing a seller to sign one contract and one get sent to the bank would have to be a big factor for so many homes coming off the market.

Naturally, this is still a great time to grab up one of those great deals or if you have the gut for it become a landlord or maybe do a fix and flip. This takes more than a little bit of understanding so be sure you are stable and can handle having two mortgages for more than a month while waiting for an investment to turn or rent. The first time home buyers rebate from the government is coming to an end since the home has to be closed by the end of November for the tax credit so many first time buyers need to get a home and get it closed. Short sales will not work in these cases anymore as the negotiations would likely go past the deadline.

Happy buying and Selling!

Nancy Niblett is a highly successful Real Estate Agent specializing in the Chandler area. She credits her success to hard work, integrity and honesty. Clients continue to refer her over and over again. Nancy is one of the most successful award-winning agents and currently with West USA Revelation. Most recently awarded one of Phoenix’s top 50 Realtors by Phoenix Business Journal for 2008. Find this top agent to buy or sell your home in Gilbert at Real Estate in Gilbert, Arizona or in Chandler, AZ including the newest community of Fulton Ranch at Fulton Ranch Luxury Property
Nancy Niblett - Expert Author

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How Do Real Estate Agent Commissions Work?

October 19th, 2009

Whether they are working for a client to sell or buy a home, real estate agents earn their fee through commission which is based on the amount received from the sale. Before enlisting the services of a real estate agent it is important to understand how the commissions work.

Real Estate agents will work for a broker. The broker pays a real estate commission to the agent. Commission fees can range from a minimum 30% and more of the total commission received by the brokerage. Experienced and top selling agents may receive 100% and pay the broker a desk fee. For listing a client’s property and acquiring a buyer, the seller will pay a commission to the broker of which the real estate agent will get a percentage. This is normally a percentage of the sales price. The clients will sign an agreement with the broker.

The commission for a real estate deal is paid from the seller’s funds at closing, and calculated as a percentage of the total sales price. The below example shows how a agent acquires their commission:

Total sale price of the home: $500,000

Broker’s fee (10%): $50, 000

Your commission fee of broker’s fee (50%): $25,000

The commission a agent makes depends on the total price of home, the broker’s percentage fee of the sale, and what the agent agreed would be his or her commission fee from the broker’s fee. There are a number of real estate offices agencies that receive commissions on a sliding percentage scale. This allows the agency to increase the amount of money they can receive with the more sales they bring to the agency. Commissions among real estate agencies can vary according to geographic location. The commission percentage for commercial properties tends to be higher then residential properties. Because of the negotiations that take place when selling/buying homes, the agent does not always go for the highest amount possible for the sale.

It may seem like a lot of money to spend on commissions for a agent but the value you get makes it well worth the expense. They perform a wide number of duties such as arranging and listing the property, arranging for showings, help with contracts, negotiations, inspections, and closing processes, and have all of the pertinent information about the property, home, community, and neighborhood. The agent will also know the value of the nearby homes, and where all of the amenities such as parks, schools, malls…etc are located in proximity to the property. The agent will also know if an offer for a property is fair.

Because the process of selling or property can be complicated, agents are a valuable tool to making the process run smoother and helping one get a fair price for a home or property. Before you list a home or property, you should consider enlisting the professional services of a real estate agent.

When trying to find Brampton homes check out the great resources and Brampton real estate agent, Vic Singh’s real estate site offering insight into Brampton condo listings and more.

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Should First-Time Homebuyer Tax Credit Be Extended?

October 19th, 2009

The first-time homebuyer tax credit is set to expire on November 30, 2009. There are ruminations happening in Washington D.C. about extending the deadline into the next year and expanding the amount of the credit.

Politics. Everyone sees every proposal through the red or blue colored lens of the two big parties. The idea of extending the first-time homebuyer tax credit throws a wrench in the political process. Why? Well, it is actually a Republican that is proposing the program. Whether this means Democrats will automatically oppose it is simply unclear at this point. So, what exactly is the proposal?

The proposal comes to us from Senator Johnny Isakson, a Georgia Republican. He wants to extend the tax credit for an additional year, to wit, November 30, 2010. He also wants to add a bit of oomph to it by expanding it from the current $8,000 figure to a full $15,000. The idea is to entice more renters into the home ownership market and create demand at the lower end of the market. This will then fuel sales at higher levels as people look to trade up.

The effect of the first-time homebuyer tax credit is hotly debated. Some studies show it has had a minimal impact when it comes to getting buyers into the market, but most real estate professional have professed to a noticeable change in demand. The real question is what happens if it is not extended. Will the current market stability turn out to be a mirage? Will there suddenly be a lack of demand that sends the market twirling back down into the abyss?

Nobody knows the answers to these questions. One can expect some fall off in demand as was exhibited with the termination of the Cash for Clunkers program. That being said the overall economic environment is less panicky now than it was in 2008. Whereas people previously horded every dollar they could, they now seem to realize there are some real bargains out there.

What about the cost of the additional year and expanded credit? It is a red herring argument for two reasons. First, the tax credit has to be paid back over 15 years. As a result, it is more akin to a zero interest loan from the government than a tax credit. Further, the government has long subsidized the real estate market. Don’t believe me? Then explain the mortgage interest tax deduction!

Will the tax credit be extended and expanded? It seems unlikely. At best, one might expect to see an expansion to the middle of spring when the real estate market naturally picks up with the weather. An expansion on the amount of the tax credit is very unlikely.

Thomas Ajava writes for FSBOAmerica.org – find and sell FSBO homes across the nation and internationally.

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What Are the Five Realtor Red Flags?

October 15th, 2009

Introduction:

Realtors have a National Code of Ethics. Their professional organizations, local, state and nationally all subscribe to this Code of professional behavior.

Most Realtors follow and adhere to the Code; however, as in any profession there are the few who don’t.

It is these few that give Brokers a public trust rating just above that of used car salesmen.

So what can you, the public, do to insure that you are working with a professional real estate Broker?

Let me share with you Five Red Flags that signal “Look out, danger ahead.”

Don’t even think about working with a Broker who shows any of these five warning signals.

Five Red Flags

Most Brokers are ethical and truly provide professional service, the five red flags presented here refer to the bad apples, not the whole bushel.

These few who engage in practices which may damage the public and discredit their profession are not representative but do exist and you need to protect yourself from them.

The behaviors I’ve described in the five red flags, directly violate the Code of Ethics. These Brokers’ lack of ethical behavior does not connote competency, fairness and high integrity.

No Broker should behave in a manner contrary to their professional Code. No inducement of profit or desire to grab a commission should justify their departure from the Code. The Code of Ethics is based on the golden rule.

Red Flag One:

A Broker shall not disparage other companies. If you hear a Broker saying things like, “well nobody works with that company.” Or “No one will work the flat fee listings.” These comments not only go against the Code of Ethics, but they are also against the Federal Fair Trade and Antitrust laws. This is a violation which is so serious it can warrant loss of license and perhaps jail time.

Red Flag Two:

A Broker tells you he can sell your house for a higher price than the market shows. The Code states that Realtors shall avoid exaggeration and over inflating a sales price just to get your listing. A higher price for your house is music to your ears but do you really want to just sit on the market?

Be cautious of over inflated listing prices. Overpricing does not sell houses and the Broker violates the Code.

Red Flag Three:

A Broker solicits your listing when you are already listed with another broker. The Code specifically forbids a Broker from purposely soliciting your listing when you are listed with another company.

A Broker offers to advertise your property for you, even tho you’re not listed with them. The Code states they may not do so without authority. Authority requires a written contract. Be aware. Be alert. There is no free ride.

Red Flag Four:

A Broker tells you that real estate commissions are a percentage fixed by law. Not true. A commission is determined by what the seller is willing to pay. A Broker may refuse to work for less then six percent; that’s up to them. You are not required to pay any set percentage or fee.

Any attempt of any sort to gain unfair advantage of you or their competitors is a violation of the National code of ethics.

Red Flag Five:

A Broker pressures you to sign the contract immediately not wanting you to have time to think about it.

Brokers spend a lot or time in classes that teach them how to close, how to get your signature. There is nothing wrong with that; however, you do have the right to “sleep on” your decision. Don’t be bullied into signing before you’re ready.

Summary:

Be alert to these five red flags. If a Broker shows you any of these behaviors, run away, don’t walk, run from any Broker’s you feel are exhibiting these behaviors.

You can help clean up the real estate profession by reporting these violators to the local board of Realtors.

Wee Dilts is the originator of Flat Fee MLS. In business since 1983. She has helped thousands of FSBOS save commission dollars. Get the information you need to effectively sell without a broker. Register in Colorado for Flat Fee MLS. Read Free articles or buy her “How to Sell Real Estate by Owner” ebook, visit: http://www.fsbofriend.com

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Building a Real Estate Team – What to Do When Hiring Your Members

October 15th, 2009

The real estate industry opens up a lot of opportunities not only for an agent but for a team of individuals as well. It will be easier to have other consultants with you than to enter the brokerage field on your own. If it is your idea to put up a firm for this sole purpose, then you are also faced with the challenge of picking up your team members.

On day one of the hiring phase, you will be faced with piling CV’s on top of your tables. Each candidate will create a profile that will impress you as the “boss” of the company. But remember that words are not enough to be able to build a team. Not even credentials will speak for the real worth of that person.

What will you do then to hire your real estate agent?

Dump the prima donnas who promise to have all the credentials and go for those who are willing to take the challenge and learn from the company. This will be a good start for forming your real estate team. Furthermore, you may consider the following:

Get some help from your HR manager. Since you do not have the luxury of time to observe each aspiring candidate’s behavior, you may always request some help from your HR manager. This is a good way to look deeply into the actions of your future team members.

Look at how the interview goes. You will always want the idea of interviewing the applicant. This will at least give you a more personal observation on the attitude of the client. Much more than hiring the achievers, you may want to consider the go-getters or those who are hungry for knowledge of the real estate field.

Present your company policies. Future brokers should expect that this job is more of a commission basis. If you have other policies governing remunerations or salaries, feel free to discuss it with your applicants. Furthermore, it will help if you elaborate more on corresponding punishments for any rule violations. See how the prospect reacts to that.

Give some “what if” scenarios and gauge how the person will handle the situation. There are different facets of the real estate business. In every phase, there are challenges that one may encounter along the way. You may use your personal experiences and see how the applicant will attack that instance in his own perspective.

Ask them about their missions for the company. The applicant’s goals and objectives are often found in the CV. If you want to make sure they will meet those goals, ask them how they will inject that in the company. Give them a picture of your company’s current situation in the market and see if their answers will solve any of these problems.

Once you have seen how your future brokers act and answer to all these scenarios, you are just about ready to hire them in your team. Make sure that their real purposes focus on customer satisfaction. Be critical at the same time considerate when hiring applicants.

Beverly Manago is a freelance writer focused on the real estate industry. She is also a consultant for My Real Estate Virtual Tour, a web 2.0 marketing tool that lets real estate agents create stunning virtual tours and single property sites easily, with a free version available for listing presentations. She also contributes to the Virtual Tour Blog there.

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What Does a Home Inspector Do?

October 13th, 2009

When purchasing a home, one of the most important last steps you will take is to have the house inspected by a certified home inspector. It is in your best interest to have a grasp on the kinds of things the inspector will be looking for. Here’s more about how he’ll do his job so that you can ask all of the right important questions.

What is a home inspector’s job?

In a nutshell, a home inspector is there to protect your interests, and his inspection’s goal will be to determine if there is anything glaringly wrong with a house that would either endanger your family’s safety, cost you a whole lot of extra money to repair and replace, or both. It is essential to remember that the inspector can only vouch for the condition of the house at the time of inspection and cannot predict any future issues that may arise down the road.

What kinds of things does he look for?

As to the exterior of the home, an inspector will look for structural soundness regarding:

- the general condition of the roof and its coverings

- rain gutters and their corresponding downspouts

- exterior vents and chimneys

- exterior facings, windows, doors, stairs, etc

On the interior, he will make a thorough inspection of:

- the basement, foundation, and any crawl space that may exist

- visual structural elements, looking specifically for cracks or other problems

- attic condition and insulation

- fireplaces

- doors and windows

He will make a complete check of the home’s systems:

- electrical

- heating and cooling

- plumbing

- hot water heater

The inspection is thorough but it is not exhaustive: in other words, he will not be in a position to gauge water quality, nor should he be expected to determine the state of wall coverings, etc.

The home inspector is your partner in making sure that you are getting what you structurally expect when you make that all-important purchase.

Sacramento Home Inspector (http://www.sacramento-home-inspector.com/) evaluate the condition of the components of the home based on the simple criteria of safety and servicesability. Ryan Coisson is a freelance writer.

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How Sustainable Ranching Saves Money, Boosts Ranching Income, and Protects the Environment

October 13th, 2009

With the instability of commodity prices and the skyrocketing prices of real estate, making a profit from ranching has become increasingly difficult. If you don’t want to see condos replace your cows, sustainable ranching may be a viable option for you. Sustainable, eco-friendly ranching is a popular form of ranch management that is gaining traction because it helps ranchers make more profit and save money all the while protecting the environment.

How Sustainable Practices Can Boost Your Ranching Income and Save You Money

An increasing number of people are willing to pay top dollar for naturally-raised meat and visits to guest ranches that protect wildlife, open space, water, and soil. Tourists are eager to pay you handsomely to stay in a secluded parcel of your ranch to enjoy hunting, fishing and other outdoor activities. Ranchers report that sustainable ranching practices increase income by about 15 to 25 percent.

By reducing technological and chemical inputs, ranchers can also save a lot of money on operating costs. When you change the way you manage your livestock and make it more sustainable, it is possible to produce more forage and graze more animals in addition.

What is Sustainable Ranch Management?

Some practices in sustainable ranch management include using crop rotation for soil health, improving habitat for endangered species in the area, and managing animals better to reduce stress-related illness. Sustainable ranchers encourage their herds to graze densely in one area before moving onto another, allowing that land to recover naturally. By using nutrition and animal husbandry practices, ranchers can control disease and increase weight gain among livestock naturally. Ranchers do not give their livestock antibiotics or hormones to encourage growth and can thus sell meat to the lucrative natural foods market, which pays premium prices. Sustainable management also eliminates the need for farming and hay production, allowing ranchers to have more free time to spend with their families.

On a sustainable ranch, ranchers develop an upland water source in order to protect riparian areas and water quality while providing water to livestock. They select livestock and crop species that are well-adapted to the conditions of the ranch property. Sustainable ranchers also prevent livestock waste from contaminating groundwater and surface water. By handling livestock carefully and providing them with fresh water, balanced feed rations, and suitable shelter, sustainable ranchers prevent stress-related illness among livestock and maintain their livestock’s health.

Everyone has an obligation to take care of the planet. If you want to increase profits from ranching while respecting the planet, sustainable ranch management may be right for you.

Peter Gooding has been developing Northern AZ real estate for over 15 years. He specializes in developing the finest horse property in Arizona, including his current project, Las Vegas Ranch Estates, which is a series of sustainable Arizona ranches for sale.

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Home Inspector Overview

October 13th, 2009

Texas holds the distinction of being the first state in the U.S. to require its real estate inspectors be licensed. The Texas Real Estate Commission (TREC) oversees home inspector qualifications and licensing, offering licenses for three grades of inspectors: apprentice inspector, real estate inspector, and professional inspector. The qualifications for each type of license differ, and only the apprentice inspector license is available without an examination. All Texas real estate inspectors are required to take continuing education courses to maintain their license. In addition, they must provide proof of adequate liability insurance, undergo a background check and pay a licensing fee.

To the average home buyer or seller, this licensing requirement offers peace of mind when choosing a home inspector. Licensed home inspectors are well-educated in assessing the condition of a home. Typical home inspections include a visual examination of the mechanical systems, including but not limited to: heating and air conditioning system; electrical system and wiring; plumbing; the roof and underlying eaves; windows, doors, and general physical condition of the house, and the foundation and support structures. While home inspections are generally not required in order to buy or sell a home, they are recommended in order to give home buyers an accurate picture of the condition of the property and allow sellers to make any needed repairs or improvements.

Since all Texas home inspectors are licensed, it’s important to look at other factors when deciding which company to work with. Many home inspectors are members of the American Society of Home Inspectors (ASHI). Members of ASHI subscribe to the ASHI Standards of Practice and Code of Ethics, ensuring that they assess properties objectively and with no conflicts of interest. All new ASHI inspectors begin their membership as ASHI associates. Home inspectors can achieve the status of ASHI Certified Inspectors only after they have successfully completed 250 paid inspections in accordance with ASHI’s strict rules of conduct. ASHI Certified Inspectors must also pass a written technical examination and keep their knowledge up-to-date through continuing education requirements. Combined with the State of Texas’s licensing procedures, ASHI’s requirements ensure the highest level of expertise and integrity in home inspections.

Some home inspection companies offer specialized services to their clients. These include, but are not limited to, detailed mechanical inspections of heating and cooling systems, termite inspections, and electrical system overviews. While these inspections are optional, they may offer additional peace of mind for concerned buyers at an additional fee. In some cases, you may be better off hiring a separate company to conduct these inspections, rather than a general home inspector, since these kinds of problems require a great deal of specialized knowledge and experience to identify and assess.

For Texas home buyers and sellers, much of the work has already been done. The TREC license insures that your inspector is insured and educated to do the job properly. Add to this the security of ASHI’s Certified Inspector status, guaranteeing that your home inspection will be performed by an experienced and impartial professional and ensuring that your inspection will meet the strictest standards of quality and ethics. Choosing a home inspector is a serious decision, but Texas has made it easy for its residents to find quality licensed home inspectors when buying or selling a home.

Joe Cline writes articles for Austin Texas real estate. Other articles written by the author related to Round Rock real estate can be found on the net.
Joe Cline - Expert Author

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Why Flat Fee MLS

October 12th, 2009

How Does Flat Fee MLS Work?

Introduction

When you are ready to sell real estate you have options, I know many of you think you have to list with a broker and pay outrageous commissions. That is not true. You can sell by owner or you can sell by owner and take advantage of Multiple listing services as well.

Let me compare the two services for you, then you decide.

What do brokers do for 6%?

They do a number of services. The most common of these is:

1. List your property on the local Multiple Listing Service

2. Review and/or write your purchase agreement.

3. Act as a transaction coordinator who follows your contract through to closing.

4. They usually set showings.

5. They will give you a sign with their number on it

6. They usually provide a lockbox

7. Most will prepare flyers, with their contact information on it.

On a $200,000 dollar property you commission would be $12,000 or more.

What do flat fee brokers do?

1. List your property on the local Multiple Listing Service for a Flat Fee, usually around $200.00 Some services charge considerably more than that. Do some research to find the best service and the best price.

2. Review and/or write your purchase agreement. This is a separate fee, usually around $279.00.

3. Act as a transaction coordinator who follows your contract through to closing. A separate fee, usually around $379.00

4. You set the showings around what is convenient for you and the buyer.

5. You have your own sign with your phone number as contact.

6.You have a key box, and you control who has access to it.

7. You create your own flyers with your contact number or you can get free flyers from a local title company or a lender.

The great thing about the flat fee service is you can pick and choose the services you want and pay only for those you need.

What will you do with all the money you save?

If you bought all the separate services, your cost would be less than $1,000.

If sold by a MLS broker and you paid a coop fee, you would still save between $5,000 and $6,000 thousands dollars.

Since you can still sell by owner, if you were able to find your own buyer, you would pay no coop fee. This would not be an option with the 6% listing. You could save more than $11,000 dollars. Not bad.

Benefits of using Flat Fee MLS:

1. You save time – properties usually sell faster

2. You save money – properties usually sell for top dollar

3. You maintain control – Brokers have a lot of control with 6% listings

4. You can sell by owner and owe no commission – No so with full service listings.

5. You can cancel at any time – May or may not be true with full service listings

6. You get far greater exposure to qualified buyers

7. You get thousands of Brokers with qualified buyers to help sell your house

8. You most likely will get listed on Realtor.com as well as the local MLS

What to look for in your Flat Fee broker

All flat fee brokerages are not alike and there are many scams. Some call their service MLS when in fact they are not even members of the MLS. They may not be licensed real estate agents. They take your money and put you on their web site but not on the Realtor’s MLS.

So do some investigating. Find out:

1. Do the have experience with for sale by owners?

2. Are they members of your local MLS?

3. Are they licensed Brokers in your state?

4. Do they maintain an office locally? And do they have a local phone and address?

5. Are they easily accessible by phone, fax, email and mail?

6. Avoid large franchise companies and Multilevel Marketing scams

Things you need to do as a FSBO:

1. Detach from the property.

2. Clean house and garage.

3. Learn how to stage the property

4. Research other properties in your neighborhood so you can price it right.

5. Put away all valuables while you’re on the market

6. Get flyers for your buyers

Summary

So why wouldn’t you do Flat Fee MLS instead of full service 6% commission?

There are lots of reasons people choose to go with a higher commission and I respect their choice.

I think you’d be wise to look into Flat Fee MLS services in your area first and then compare the two and make an informed decision.

Wee Dilts is the originator of Flat Fee MLS. In business since 1983 She has helped thousands of FSBOS save commission dollars. Get the information you need to effectively sell without a broker. Register in Colorado for Flat Fee MLS. Read Free articles or buy her “How to Sell Real Estate by Owner” ebook, visit: http://www.fsbofriend.com

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California Homes

October 9th, 2009

California is one of the most populous states in the United States of America. It also constitutes the third largest area. The beautiful and awe-inspiring landscape has prompted a large number of people from around the world to search for properties in this specific area. Due to its world class living conditions, many have also taken interest in California Real estate. It is known for its diverse population and amazing geographical location. Even though the economic downturn has taken a toll world wide, the housing market in California has been booming.

Be it the Orange city, San Diego, Santa Cruz , San Jose or Huntington beach , homes in California range from luxury resort like constructions to small apartments. California real estate in the Orange County was initially developed by the Mission Viejo Company. There are several diverse neighborhoods with home styles ranging from singles, families to mature adults. Also available are the executive homes which offer the luxury of custom golf-course within the house premises. For the first time home buyers there are different types of California homes. At present, over 95,000 people reside in this area. These communities reside in a mixture of attached Condos, detached 1 and 2 story homes that have been designed by some of the reputed designers. Homes for sale Orange county, California offers a wide range of choices.

San Diego is another place where more and more people are showing their interest in buying a property. Even though the prices of small houses can be sky high, people like to stay here because of its beautiful landscape and environment. Often a one bedroom flat might cost $1600 which is quite expensive compared to other areas, but keeping in mind the beautiful surroundings one might love to stay here. Potential home buyers can search for upscale homes in the northern part of San Diego. Homes here can be customized by the designers according to the need of the customers. Another attraction of this area is the acquiring of the horse properties. Equestrian properties in North San Diego are exclusive in this area.

Prospective home buyers can discover a number of affordable homes for sale in this region without shelling a huge number of dollars. Minus high costs this area can also offer beautiful living conditions even within a stipulated budget. There are plenty of homes for sale in California. California Realtors are aplenty who are ready to cater to the varying needs of their clients and striking a balance between comfort and pricing. One just have to be aware and look for the right time to negotiate to get the right house he or she is looking for.

Tony Serrano is a licensed broker who provides information on several subjects which range from real estate to private properties to mortgage homes and others. Tony Serrano’s website is a comprehensive guide to take the right decisions while buying or selling a house. Being an experienced broker, Tony can advice customers with insightful advises. Through his advice the customers can avoid the common pitfalls which often ruin a deal. To get all kinds of California Homes visit http://www.myfreehomeguide.com

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