Real Estate Blog Now

Real estate agents are in the game of buying and selling homes. At their core, they are sales people and rightly so. Given this fact, you need to be very leery of any agent that offers legal advice. Why? They haven’t got a clue and are potentially breaking the law.

You go to view a home and notice the owner has done a lot of custom work. You love it. The home is unique and amazingly so. You put in an offer through your real estate agent. After some haggling, a deal is reached. Escrow gets underway and then a problem arises. The appraiser notes the home has more square footage than recorded in the county records. It becomes obvious the owner did the customization without getting permits. It also becomes obvious that some of the work is not up to code.

At this point, the deal should either die or the seller should be offering major financial concessions. You are not really sure what to do. Your agent tells you to take the concessions. She has seen this before and knows that the building department will okay the home. If not, you can always come back and sue the owner for breach of warranty and contract. Taking this advice, you go ahead and buy the home.

After taking possession of the home, you are told by a building inspector half the home will need to be torn down and rebuilt to meet code. You are outrages and speak with an attorney about filing a lawsuit against the seller. The attorney looks at the deal, notes all the disclosure done by the seller and the concessions on price. Guess what, you have no legal remedy. Everything the agent told you is wrong.

This type of scenario plays out repeatedly. Real estate agents are famous for giving out legal advice regarding issues they have no business discussing. They are versed in the practice of selling and buying real estate, not offering legal opinions. To this end, more than a few real estate agents have been sued for “the unauthorized practice of law”. In the scenario above, the buyer would in fact be able to sue the real estate agent and successfully so.

In truth, most real estate agents give legal advice without really thinking about it. They also do it without malice. They are just trying to make a sale. While they can incur liability for doing so, it is incumbent on you to realize that an agent is not a lawyer. If there are legal issues related to a real estate matter, you should speak with an attorney to get accurate advice. Otherwise, you are taking a huge risk.

The most recent Case-Shiller Report indicated that Charlotte Home prices were down 9% over 2008, placing Charlotte real estate 5th best on the Case-Shiller Index of 20 major real estate markets. Better news is that home prices, month to month, were rising, albeit slowly, but for the 3rd month in a row. That 3 consecutive month price rise leads me to the conclusion that home prices had bottomed in Charlotte and things are looking up.

But… of course the devil is in the details, and as I look, trouble for Charlotte real estate certainly is Not over. Lets check the critical numbers out.

First lets look at volume, as expressed by Houses sold in the first 3 quarters- the 9 month period of 2009 ending September 30, versus the same period in 2008. These are all single family homes in 9 Counties surrounding Charlotte-not the full MLS, but the closest.

Charlotte Home Sales

Home sales through 3 quarters in the greater Charlotte 9 county area are off 25.95% at 13,683 units sold and closed. All the various price ranges I measured are off atleast 25%, with homes from $500k-1M suffering a 41% loss in volume, and homes over $1m a 52% loss in volume.

These higher price ranges had dramatic falloffs, made worse by larger inventories in the upper price ranges as well. Absorption is the amount of time required to sell off the inventory on hand. Generally measured in months, anything more than 6 months is considered a Buyers Market.

The overall absorption rate- based on the prior 9 months of sales, is 9.5 months. Here is how I figured our simplified absorption rate: I took the total 9 month number of sales, 13683 and divided by 9 for a monthly average sales rate of 1520 units. Then I took the number of homes Active For Sale as of 9/30/2009 in the same 9 County area, and thet number is 14470, so 14479/1520, doing the division that is a 9.5 month supply of homes.

The city wide average masks a lower absorption rate in the $75K-$200K range of 7.3 months, and a larger, much larger absorption rate in the $500K-1M, and the Over $1m categories, at 25 Months and 57 months respectively…

The area as a whole looks good- a strong Buyers market, and not especially threatening at 9.5 months. Then we look first at the over $500K market, which has a 24.8 month supply of homes, a 2 year supply. But that’s nothing compared to the over $1M market, with 57 months of inventory, nearly a 5 year supply of homes at this price point.

Charlotte Home Prices The average price per square foot fell 12.1% for the region, considerably higher than the Case-Shiller number cited above. There was quite a spread, the lowest price fall came in the 75K-$200K range at 6.27%. Not surprisingly, the higher price ranges, the $500k-$1M, and the over$1M category fell 9.8 and 9.3%. I say not surprisingly because of the high inventory levels- maybe I should be surprised that house values didn’t fall further in these upper price ranges, and indeed they still may have a ways to go. Continuing high inventories suggest prices here will fall further, a 56 month inventory is not sustainable.

What has caused this distortion in the higher price range of Charlotte homes? That is the subject for my next essay- what it is NOT is the loss of Wachovia as a corporate headquarters – that wouldn’t explain more than 30-50 homes, tops. I’ll explain why in the next article.

As a real estate agent your business may be hitting hard by the current economic downturn. Your listings no longer sell and your buyers are taking forever to make purchase decisions. Meanwhile you still have to pay office expenses, broker fees, MLS subscriptions, board dues, etc. In this article I will discuss how you can earn extra income with your real estate license in addition to selling houses. Specifically I am talking about performing Broker Price Opinions (BPOs) for banks. I will also reveal a technique I personally use to grab those BPO orders before other agents do.

BPOs are basically mini Comparative Market Analysis (CMAs). Banks order BPOs whenever they want to know the value of the properties. This could happen in many occasions; for example, the owner could be applying for refinance, or the owner could be in default, or the property could be in foreclosure or in need of a short sale. Currently there is a huge demand for these BPO orders due to the foreclosure crisis. Since banks require BPOs to be performed by licensed real estate professionals, you can put your hard earned license to good use.

There are two types of BPOs. An exterior BPO does not require you to get into the property and typically pays $40 – $50. An interior BPO requires interior pictures of the property and typically pays $60 – $90. Granted you don’t earn a whole lot with each BPO order but keep in mind that a BPO can be completed in under an hour or so. Just do 3 to 5 BPOs a week will help pay for your basic expenses.

“Where do I find BPO orders?”

Although BPO orders are placed by banks, contacting banks directly would actually be a waste of time since most banks don’t handle them directly. Instead, they order BPOs through asset management companies. A quick way to find these companies is to Google “asset management companies bpo.” During your search you will come across some companies that are actually just directories. They usually require you to pay a fee to be listed as a BPO agent. They claim by listing on their directories the asset managers will find you. I have never had any luck with them so my advice is to save your money.

Once you find these companies you simply log on to their web site and register yourself as a “vendor.” You will be asked to fill out an online application with your information. Most companies will require a copy of your real estate license, your E&O insurance information, a W-9 form, and a list of zip codes or city names of the area you covered. Once you are registered, you will begin to receive emails whenever a BPO order becomes available. To maximum your chance of getting orders, you should try to register with as many companies as possible. I personally have registered with 15 companies and I know some agents have registered with over 50 companies.

One thing to pay attention to is that some of these asset management companies are so called “BPO shops” where they only handle BPO orders. Clear Capital is a well-known example of such company. On the other hand, some companies may also handle REO properties for banks. If you do a good job with your BPOs for these companies, you will have a chance of getting REO listings. Some companies such as Integrated Asset Services will give you the listing of the property that you performed a BPO on if that property ever becomes an REO. Thus if your goal is to eventually become an REO agent (which it should be as listing REO properties is EXTREMELY lucrative), then you may want to avoid those BPO shops and focus only on companies that can give you REO listings.

“OK. I got registered but I can’t get any BPO orders! What should I do?”

So you started to get emails of BPO requests. You were excited but when you replied to those requests you found the orders have already been taken by other agents. What happened? Well, when most asset management companies send out BPO requests, they don’t just send to one agent but to all agents that cover that particular city or zip code. Whoever answers the email first gets the order. You may be answering your email the second you get it, but your email program may only be querying the mail server every 30 minutes. So you could still be too late by the time you respond.

What can you do about it? Do you need to sit by your computer all day to respond to emails? Here is my solution. I use a separate email address specifically for BPO orders. Then have all emails sent to this address also forwarded to my cell phone email address. Most cell phone numbers have email addresses associated with them. For example, a Verizon Wireless cell would have an email address in the form of cellphonenumber @ vtext.com where “cellphonenumber” is the phone number. You can contact your cell phone service provider to get that information. Once it’s set up, every time a BPO request comes in, I get a text message to my cell immediately. I can then respond to the email right away. I have been able to get over 90% of BPOs since I implemented this technique.

You now have enough information to get into the BPO industry and the knowledge to beat out competitions. Start earning the extra money with those BPO orders when your regular business is slow and you may even be getting hundreds of REO listings in near future!

People living in Sussex find that this is an idyllic location, packed with many historical spots and some very attractive new homes. The new homes in Sussex are specially built to entice new buyers and families into settling down in this place. Housing in Sussex vary in prices, like most other houses in the country, however some new homes are offered on a good deal and are rated as being some of the finest real estates in the UK.

The new homes in Sussex are situated in various locations, some being nearer to the city and others built nearer the countryside. Some of the locations are better suited for people with a family, others more suitable for couples, some for younger buyers and others good for single individuals. Some areas may decrease or increase the value of the property; some notable places include Brighton and Hove, and Chichester. Brighton is especially famous for its great nightlife, music festivals, fashionable individuals, artistic talents and many other creative interests.

Some of the new homes in Sussex enable for people to live in an area where there are plenty of opportunities for taking part in interesting activities which attract so many wanderers. Brighton was only recent granted city status and has since seen an increase in property value, causing an increase in the demand for properties here. People who have set their hearts on moving to Brighton may be disappointed in that they will not be able to find their ideal property in the area that they wish to live in. They may have to resort to living a little further outside where prices begin to drop.

Chichester is a place for people wanting a more country-like living, surrounded by large fields and wooded areas. This is especially appealing for people of retirement ages or with a family. Chichester has its own hidden beauties such as a large historical cathedral, being a Roman town it harbours plenty of history and many such buildings that reflect its history. This is a much smaller area than Brighton and only has a limited supply of housing in comparison. Therefore it is important for people to spend a bit of extra time to find their ideal property.

Moving further on the outskirts if Sussex, people will come across places like Worthing and Littlehampton. Property prices around these areas are a little lower, demands for houses here are not as high and both areas are close to Brighton. Transport to Brighton is frequent therefore new buyers can get the best of both worlds.

Barcelona has some fantastic architecture and buildings. Home to 9 UNESCO world Heritage sites, and some of the best examples of both Gothic and Modernista architecture there are some amazing properties in breathtaking buildings. You can also own your own little piece of history if you prefer the old town neighbourhoods of the Gothic Quarter or Raval, and brand spanking modern apartments with all the mod cons in front of the Mediterranean sea in Diagonal Mar is that’s your preference.

Assuming you don’t have the cash to buy your property outright, you’ll be financing the move with a mortgage or other home loan. Fortunately, mortgages in Spain are usually taken out over 30 to 40 years and some banks even offer a 50 year mortgage. This sometimes means that you may be able to afford a better place, as long as you can handle the repayments!

Prices are talked about an awful lot, and are always given as a price per square metre in Barcelona. Apartments can range from as small as twenty square metres for some dwellings in the old town, as high as hundreds of square metres in more exclusive neighbourhoods. Expect to pay a whopping 6476 Euros per square metre in the high end neighbourhood of Pedralbes and Sarria. This is the most expensive neighbourhood in the city, with most buildings having private gardens and pools, private car parking spaces and is home to the elite.

If history and rustic charm is more your idea of a Barcelona home, then don’t assume that for old properties the price is also from the old ages! The charming Gothic quarter will set you back 4925 euros per square metre, and you also have to choose very carefully in this neighbourhood, as there are many small, dimly lit streets offeing poor natural light. Expect to pay a lot more per square metre if the apartment is high up, well lit and has any kind of terrace or balcony – remember, these are average prices so take all properties into account. Across the famous Ramblas street to the Raval quarter is a little easier on the wallet, with an average price of 4215 Euros. The old fisherman’s quarters of Barceloneta is a literal stone’s throw from the beach, and you’ll have to cough up 4479 Euros per square metre to watch the sun rise over the Mediterranean here. 4778 Euros is a higher price for the coastline’s extension down in the Olympic Village but one which is understandable, as the properties here are much newer and more spacious in comparison to the parallel lines of tiny streets in Barceloneta.

The biggest neighbourhood in Barcelona is Eixample, designed 150 years ago by Ildefons Cerdà and is a grid-like expanse covering almost all of Barcelona from left to right. Apartments within buildings here are generally large and many have been well reserved to maintain original aspects from construction in the early 1900s. Here, prices may vary per square metre from 4913 to 4397 Euros, depending on the location. The nearby small neighbourhood of Gracia with its small town charm is also an extremely central neighbourhood but maintains a high floor price due to the smaller buildings in the area – and therefore fewer apartments to go round. There’s no lower than 4787 Euros here.

Latest statistics of housing sales in the US have shown a decline in the final weeks leading up to the completion date of the real estate tax credit. Set to expire on November 30th, the tax credit was designed as a boost for the real estate sector, providing first time homebuyers with an US$8,000 rebate on property purchases.

The sudden decline in sales has provided further evidence to the government that the tax credit was in fact assisting with the growth of the market over the past months. Demands for an extension of the credit have been under consideration by the government, expected to announce a final decision in the coming weeks.

Following the decline in property sales over the past month, it is predicted that the decline will continue without the incentive from the tax credit. As property prices continue to remain low, those with the capacity to purchase under current economic conditions are unlikely to rush into immediate sales without the additional benefit of the tax credit incentive.

Along with property sales, applications for building permits also fell during September, further adding to the bleak outlook for sales and construction in the coming months. While it is predicted that some construction works over the past 6 months were hastened for buyers wishing to take advantage of the tax credit, the overall outlook for the US property market does not appear set to regain balance in the coming months.

Foreclosures have been another despairing area of the US real estate market, with record numbers of filings over the past three month period. Foreclosure filings are expected to affect over 1 million more homeowners in 2009 compared with the previous year. Property repossessions have also increased in September by over 10,000 homes in comparison to figures from August.

When combining the impending end of the 2009 tax credit, applications for construction permits, foreclosures and repossessions, the US real estate market appears quite grim. However, in comparison to the figures from January, the sector has improved by over 20%, lending a positive light to the atmosphere of the market.

In the present market status, it is highly crucial that you get for yourself a very experienced and reliable real estate agent. In a niche where various components are overwhelming like opportunities, tax benefits, market status and updates, it is very important that someone with impressive communication skills would be right beside you in the process of giving up your Home for sale through an open house. To sell or buy a house is way too important task to let the inexperienced and less skilled to handle it.

However, whatever kind of property you may be dealing with, whether it is for residential or commercial purposes, every client should check out on the background of the assigned Real estate agent if he is in good records with a few reliable groups and associations of realtors. When a real estate person is a member of such organizations, you can be assured that each of their members are complied to attend useful seminars that would further enhance their skills in the real estate business. These organizations have been very monumental in the implementation and application of various principles and proper ethics for the people involved in the industry to follow.

It is also important that you know that the term is associated with an agency. The agency is accountable for the actions of each broker and agent, especially in terms of keeping up with the company’s campaign for marketing and relative to interacting with other firms. To choose a reliable real estate agent can really fully maximize the chances of selling a property and giving assurance to the buyers that they are making the right decision.

The marketing strategies for real estate has evolved greatly especially with the emergence of the Internet. Unlike before where open houses  are widely used for promotion, today websites are more often used and utilized to keep everybody informed about the latest property offerings and updates. Surveys even show that most investors are yielded to do their searches online and hence a lot of real estate companies have greatly adapted effective online marketing strategies for them to have a stable place in the Internet.

In an online version of an open house, the tours are done virtually and the looks of the house are presented in high quality digital photos uploaded in the website. These companies also get themselves included in the high ranking listings over the net. And for the potential buyers, they offer comprehensive listings of the latest offerings, schedules, and agents.

The best real estate agents still should have good communication skills to be able to respond quickly and effectively to possible calls that may be received once the potential buyer sees the website and has decided to call for further inquiry. A competitive real estate agent is very much aware that staying on top of the market should be set as utmost priority along with their accessibility to potential buyers. That is why once you have selected an impressive real estate person to help you along the process, it is very important that you remain in close contact with them.

The orthodox forms of real estate marketing still bear value such as the brochures, the signages, business cards, flyers, and open houses. The best real estate agents are capable of combining the effectiveness of the old and new concepts to develop greater chances of increasing exposure and assuring a sale. It is also important for these realtors to be aware of the present market for mortgage as well. They should be in direct contact with the leading mortgage companies and other helpful programs. The best one you can get is someone who is entirely capable of tying a strong bond between the sellers and the buyers to come up with a successful transaction in the end.

Chandler, Arizona has gone for an intriguing makeover. This Phoenix suburb is no longer a poor country cousin, apt to be visited once in blue moon for a retreat from the hustle and bustle of the city. Chandler has transformed itself into one of the fastest growing cities of the United States. It now boasts of a robust economy, an enviable educational system, and a prosperous and eclectic arts and culture milieu. It is hardly surprising that the Chandler, AZ, real estate scene should reap the benefits of this multi-pronged metamorphosis. Now it is not just the vacationers who are flocking to Chandler. Home hunters are also making a beeline for the homes for sale in Chandler, AZ and they are simply spoilt for choice.

The Chandler, AZ, real estate environ offers a lavish spread: modern apartments that combine the best in comfort, luxury, and convenience; attractive beach and water front homes that command stunning views; sprawling townhouses nestled amidst enchanting surroundings; single and multi-family homes that suit all your domestic needs; condominiums that spell the ultimate in luxury; and foreclosures that you may lap up for amazing bargains. The homes for sale in Chandler, AZ come in myriad shapes and sizes and are priced across a wide spectrum to suit all pocket sizes.

The Chandler, AZ, real estate arena also boasts of retirement and active adult communities where you can bond and share your life with like-minded individuals and families. You will feel like your golden years transforming into a cherished dream.

There are many popular neighborhoods in Chandler to own a house: City Center, Sun Lakes; Glenview Estates; Hightown, West Chandler; Home Park, Corona Village; Warner Park; Wishing Well Trailer Park; and Womack East. The Chandler, AZ, real estate scene here is brimming with sumptuous choices, from no-frills budgeted apartments to luxurious villas. If you are willing to loosen your purse strings a bit more, then you can opt for the more exclusive and high-end neighborhoods of Chandler. There are magnificent Chandler homes in Central Ridge, Jacaranda Parkway, Cooper Road, and Alma School Road. The Chandler homes here definitely worth all that you shell out.

You can have your pick from the Chandler, AZ, real estate listings that are posted on various web sites. These sites host tempting choices, complete with the features of the homes and their prices. The information will help you compare the goodies on offer and arrive at a sound conclusion. Chandler realtors too stock a wealth of information on the homes for sale in Chandler, AZ. Just express your wishes and leave the rest to them. They will come up with the trumps, without you having to do much. Taking the help of a Chandler real estate professional is also a good idea if you are looking for foreclosure and resale homes. They keep tabs on the real estate scenario and usually have great deals up their sleeves. Take your house hunting spree to Chandler, AZ. You won’t be mistaken in thinking that the good things in life come easy.

Believe it or not, it isn’t just funders who will learn about your new real estate brokerage business when you create a business plan. You can learn a great deal of important information from the process of creating a business plan which will better prepare you to manage the business going forward.

Market Research

You may think you’ve done market research, but creating a business plan requires you to look deeply into the industry, your customers’ needs, and your competitors. The research must be systematic, looking not just at a couple of competitors, but at the entire field until you’ve identified your top opponents. Looking at competitors can also uncover some of the best practices of the industry which you may not have known, as well as weaknesses in other businesses which give you an opportunity to create competitive advantage. By delving so deeply into these areas that you can write a coherent and complete business plan, you will be armed to better deal with your market situation both before and after your launch.

Operations Plans

How the business will actually operate may become an afterthought until you are required to write it clearly in the business plan. By not putting off the work of planning your sales, administration, and marketing processes, you will discover additional costs to plan for and opportunities for savings. In the process, you will have to make decisions with a significant impact on the job descriptions of your team, better preparing you for hiring process. All of these activities within the business are key drivers of costs and revenues, and only by planning these systems can you project those costs and revenues accurately.

Projecting Financials

Finally, the act of creating detailed, multiple-year financial plans asks you to look behind the critical launch year to consider your firm’s future potential. Only by looking three to five years ahead can you see if you are really launching a brokerage which will meet your personal needs for reward based on the risk you are taking on. You will also learn a lot in the process about what kind of business you are creating. Will you lead the company through rapid expansion to a multiple broker firm? Will you want to hire additional management help at a future date? Or is a small brokerage with consistent, steady income what you desire out of this venture?

One of the things that’s great about being a real estate agent is that you aren’t as bound to a 9-5 schedule every day compared to office-going men and women who live lives largely controlled by the clocks in their respective offices. A real estate agent’s time is more relaxed and flexible, and the hours are easy and as long as you can make a sale, everything’s peachy.

Another thing that’s good about real estate sales is the commissions – you are not limited to a yearly increase in salary because it all really depends on the sales you make. So if you make a lot of sales, they you’re in for a big take home pay every month. You also aren’t bound to a boss as much as office workers are; again, all that really matters is the sales you make. If you make a lot, then you have nothing to worry about.

The current times though, have been a big challenge for many realty agents, as people all around the world have tightened their belts and limited their spending. And buying property isn’t exactly one of the ways people save money. This is why it is important for all agents to realize that times have become harder and a sale is more difficult to come by, so you really need to get your priorities and your plans in order so that you are better assured of not only being able to make a good living, but making a really good profit out of your business.

You need to set proper goals.

Success as a realty agent lies, for one, on the goals you have in mind. You need to have specific goals you want to reach – these goals must be feasible, of course – so at least you have an idea of which way to go. The freedom in real estate selling also has its cons, like the availability of so many distractions. It is so easy to lose sight of what you should be doing and focus on something you shouldn’t be doing; as infantile as that sounds, it happens to a lot of people, and they realize it only when it’s too late. Especially now that times are tough, you need to always keep the goals you have in mind so you don’t fall off the track.

Discipline, responsibility, and professionalism are needed for success.

Successful real estate agents are characterized by their discipline as well as their professionalism. Successful real estate agents always have a plan and have always thought things out to a certain degree before any decisions or deals are made final. Disciple also ties up with goal setting, as you need to be disciplined to stay in track and make sure that the steps you are taking are the ones that are headed to your goal, instead of towards other directions. Discipline is what will drive you to stay on the path and get to wherever you want to go.