For many homeowners suffering financial difficulties during the current economic crisis, a loan modification is their only shot at staying out of foreclosure and keeping their home. During this stressful time, completing the process quickly and accurately is absolutely essential, since homeowners only have one shot at getting it right. Unfortunately, some homeowners make mistakes that either bring the process to a standstill or result in non-approval. The following are the five most common mistakes homeowners make, as well as how they can be avoided.

1. Refusing to admit that they need help — Borrowers who are falling behind on their mortgage payments with nothing in the foreseeable future–such as a new job or increase in salary–that could help them catch up should contact their lender as soon as possible to begin the loan modification process. Getting the help of a reasonably priced assisted loan modification program to help guide them through the process is also essential at this point.

2. A badly written hardship letter — The hardship letter is a signed statement detailing exactly what circumstances have made it difficult for you to make your payments, the reasons why you are requesting assistance, and what you are planning to do to resolve your situation. Failing to clearly address each of these issues in your letter can cause your modification to be denied before the process truly begins, so make sure that you do so! An assisted loan modification program that provides samples and guidance in writing an effective hardship letter will help tremendously.

3. Failing to follow directions — It is absolutely essential that you follow the directions for submitting your loan modification package to the letter. That means submitting everything your lender asks for, making sure each document is properly signed and dated, etc. Failing to follow directions can stall the process or cause your modification to be denied. Again, an assisted loan modification program is essential, as it will guide you through the process, as well as provide tips, reminders and checklists to help you make sure you’ve completed your package thoroughly and accurately.

4. Being untruthful — Always start with the truth. There are ways to provide the facts and be truthful without divulging information in a manner that could cause the lender to over scrutinize your case or allow them to think there is no need to offer the lowest payment possible. Never submit false documentation or lie to the lender. This is considered fraud; it is illegal and punishable by law.

5. Failing to remain diligent throughout the process — Borrowers need to be persistent and constantly follow up on their file with the lender. Always be polite and courteous, never impatient. The goal is a resolution; it is important to remember that borrowers need help from their lender, not vice-versa.

Again, using an assisted loan modification program will help you avoid these common mistakes, ensure that your loan modification is approved, and help you keep your most important possession–your home.

Maybe you are in the process of selling your home; it may be best that you seek the help of a licensed real estate agent. It is possible to sell the place on your own, no doubt about that. However, without the knowledge of how to sell real estate and all the paperwork as well as the procedures that are involved; you could be doing yourself more harm than good. With the help of a real estate agent in selling your home, it will limit the amount of headaches and ensure the appropriate steps are followed. Moreover, all the documents necessary are will surely be handled properly and completed.

Just like selling a house, trying to hire an agent is also a difficult task to carry out. No matter how hard it may seem, always keep in mind that this move will help you find the perfect house. This is why you do not want to take the decision-making process lightly. Be a wise home buyer and do your share of homework. Keep in mind that not all agents are the best at what they actually do. Consider some points when choosing.

Ask around- If you have never had encounters with agents or even deal with anything-real estate, a good place to start would be by asking your friends and family if they can recommend an agent within your area. It is better to choose an agent who is backed with a personal recommendation, than having to choose one from nowhere or out of the blue.

Another person you can ask would be your neighbor. See if they know of any good agents, especially if they are new to the area and have also acquired the help of such individuals. By asking around, you will likely find some of the better agents available and you also get to know about whom to stay away from.

Go to an open house- Going to random open houses may not be your type of thing. But know that if you want to meet bankable and trustworthy agents in the real estate world; you should definitely check out open houses.

These local agents know what they are doing and can tell you if a deal is good, depending on the state of the house and such aspects. They can also provide you with an insight which maybe, out of the area agents would not know about. Go ahead and visit a few local open houses, speak to various agents who are hosting them, and find the best one. If for some reason, that specific person cannot take you on as a client, do not worry; he may be able to refer you to someone who is as good.

Find a reputable real estate office- Agents work out of real estate offices. These types of agents work with the office as an independent contractor to help sell homes. When you pick an agent, stick with the ones who work in larger offices. It is because larger and more established offices often have a network of agents, as well as other real estate professionals.

Get names and ask questions- You should pick the agent; don’t let it go the other way around. Meeting one does not cut the deal, so do not be ‘forced’ to go with the very first one you encounter. Do a little window shopping so to speak; write down names and information of the better real estate agents that you meet. After, sit down and pick three or four agents whom you like and begin analyzing.

Getting into the real estate business could be one of the most fulfilling career decisions you can make in this lifetime. Given, of course that you have understood what the job entails and how you can be good at doing it.

What is a Real Estate Agent?

A real estate agent is a professional who comes in between buyers and sellers where properties are involved. He is the link between a home buyer and a home seller whose job is aimed at creating a successful and satisfying deal for both parties. Some agents are also involved in the maintenance of properties for rent, overseeing the properties in behalf of their owners.

Not everyone who wants to can become a real estate agent in a snap. In most areas, agents are required to be educated and licensed professionals who adhere to the rules and regulations of a governing body. Agents can also become realtors, considering that they are able to adhere to the specific requirements and codes of ethics of the profession.

Basically, realty agents earn by commission. In case of facilitating a home sale, they charge a certain percentage off the sale price as their income. In case of seeing through maintenance of a property for rent, a specific percentage off the rental fee is charged to the landlord as the agent’s salary.

Who Needs an Agent?

Home sellers who have properties to sell but do not have substantial marketing expertise to make a good deal seek real estate agents. They are also hired by home buyers who are seeking to find a good buy but do not know the proper avenues to look it up.  A real estate agent may be a representative from the seller or the buyer’s end but never both. He is either hired to find a good customer for a property for sale or to scout for a good buy for a prospective home buyer.

Naturally, agents are equipped with important information about the property they are working on. They are the most reliable source for anything and everything that concerns the property in whole. They make the information available to anyone who might be interested in snatching the deal made.

Agents are highly regulated by certain rules. They work based on a code of ethics that ensure they work around on a fair ground. That is one of the best reasons people usually resort to hiring an agent to handle their property or properties in a competitive mortgage market.

What Makes a Good Realty Agent?

In a real estate business, knowledge is power. You have to be well-informed about the goings on in the market as well as the needs of your prospective clients. An effective real estate agent is one who is able to meet the demands and the current standards of the market. You will never be able to sell a property or find a good property for sale and earn your commission in the process if you are not in touch with the market you are working on. Therefore, a good real estate agent must operate closely with his market.

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.

If you are looking for the residential property market that has been able to withstand the global tsunami of mortgage finance problems and to avoid the collapse in sales volumes and prices, you should turn to the Vancouver Metropolitan area in British Columbia, Canada. Despite a decline in sales transactions and a mild price correction in Canada’s housing market as a whole, the Vancouver Metropolitan area real estate market has shined in this housing correction. What’s more, it is Vancouver’s upper-end housing that has supported sales activity and prices in the country, making the residential real estate markets in British Columbia and Canada the bright spots in an otherwise dreary state of global housing.

Statistical data from the Canada Mortgage and Housing Corporation suggests that the majority of housing transactions in the first half of 2009 in British Columbia took place in the market segments below the price range of $500,000. These market segments recorded an increase in the share of transactions by 7.2 percentage points, from 23.4 per cent of the market share in the first half of 2008 to 30.6 per cent in the same period of 2009. Yet, as a result of this, while the overall prices of absorbed single-detached units in British Columbia dropped in this period by 2.5 per cent from the year earlier, the housing market in Vancouver, in which home prices of absorbed single-detached units average slightly over $950,000, recorded a 1 per cent increase in average prices. Although this appreciation in average home values may appear meager relative to earlier periods, it is still a testament to exceptionally resilient Vancouver’s residential real estate market.

The higher average prices in the Vancouver Metropolitan area are most likely the result of historically-low mortgage interest rates that have been supporting sales of new homes at the higher-end of the pricing spectrum. Unlike the mortgage finance system in the United States in which sub-prime market, saturated with the underwriting of mortgages to borrowers with dodgy credit, caused the credit implosion and a subsequent severe credit crunch, the Canadian financial structure, which never allowed the sub-prime market to advance, proved healthy enough to avert the mortgage crisis and, therefore, continued to extend credit to creditworthy borrowers.

This enabled Canadian borrowers, unlike those in the United States, to take advantage of low mortgage rates and favorably priced properties to buy their dream home or an investment property. This has proven especially true of higher income earners and real estate investors who have taken advantage of the cheap and available credit to invest in luxury homes in Vancouver, driving higher the prices of upper-end new homes in this part of Canada. Given the prospects of an impending economic recovery and the expectations of a rebound in housing activity in Canada next year, the housing market in the Vancouver Metropolitan area, and especially its higher-end segment, is expected to gain momentum in the months ahead.

Moreover, due to an extended prevalence of historically-low mortgage rates in Canada, which are expected to increase only modestly before the end of next year, sales and prices in the Vancouver Metropolitan area and British Columbia overall are expected to increase. Therefore, this may be the right time for prospective homebuyers and investors seeking property investments in stable and appreciating real estate markets to consider buying property in Vancouver and British Columbia. The expected higher demand for housing in the next few years will assure that their investment comes with a rewarding return.

Real estate industry has been one of the volatile sectors in the economy. It is greatly affected with several issues that are hitting the global market. And this can be seen in the buyer’s market latest trend. During the start of this year, the demands for realities have been slowing down. Thus, sellers are compelled to give reasonable discounts and lowered their prices to be able to survive in the sea of competition. As for buyers, this is the best time for them to make their investment.

Lenders have been rigid in giving out their credit approvals. This is simply due to the uncertainties happening in the economy. They are making sure that every buyer should have enough capability to completely pay off their loans. As for hopeful home buyers, they have a hard time materializing their plans of owning a house. Not all of them have the ability to produce instant cash to pay the sellers. Majority of these struggling home buyers will seek for financial assistance in most of their ventures.

This actual scenario made a domino effect to other areas in real estate sectors. Prices have gone down which caused the sellers to look for more ways to attract frustrated home buyers. They started to consider giving allowance or huge price adjustments. In fact, they even go as far as offering low ball prices just to eliminate their properties and not stay in the market for years. Breaking even has usually been their option in these times. All of such are favorable to the buyers.

Moreover, sellers resulted to doing major home improvements and other upgrades on their properties. In this way, their houses can be competent enough among others. They are conducting thorough research on how they can surpass the volatility of the trend. The sales of houses have significantly went down which brought various effect on lenders, buyers and sellers.

One of the major effects of the economic turmoil that boosted the buyer’s market is that mortgage interest rates have been considerably lowered down to revive the drowning real estate market. Since the industry is already starting to lose its hope for recovery, there are organizations that remained hopeful in uplifting the sector by formulating several strategies. Lenders thought of giving incentive such as lowering the closing cost to entice new consumers avail their products.

With all these factors affecting all parts of the real estate sector, it is apparent the most of these cases are favorable to the buyer. Thus if you are having second thoughts about buying or investing in these times, now is a great time to do it. Grab every opportunity that is available since the trend of the buyer’s market is unpredictable. But if you are yet on the verge of evaluating you financial capability, then better prepare everything you need before embarking into acquiring a house. Bear in mind that chances such as these are not always available for you, so think again and invest wisely!

This article is written as a response to the Miami Herald article, “For Home Buyers, rock bottom prices tough to pinpoint.” The media manipulates the data to create confusion, rather than explaining the reality of the real estate situation. While they are professionals that understand the market, it may not be in the best of their interest to help a consumer get the best deal in the market, since their professional fees are based on different parameters. To clarify, there is not only one “rock bottom price” or a date in which the “rock bottom price” is going to be reached, and it doesn’t necessarily depend on an area or a building. Just like the market value of any given unit in the marketplace is what an individual buyer is willing to pay for it, the infamous “rock bottom price” is the relationship between the lowest price negotiated for the best price-positioned property model that matches the individual need of a consumer.

Based on the previous analysis we get to the conclusion that there are many “rock bottom prices”, even within a single building there will be the “rock bottom price” of the 01, 02, 03, 04, etc. models and additional “rock bottom prices” of high floor units within the same models. There also will be different “rock bottom prices” of furnished and unfurnished units. There cannot be and a cookie-cutter “rock bottom price” approach that is useful for one consumer. The idea of “rock bottom price” is being misinterpreted and branded by the media creating confusion and undecided consumers. The real “rock bottom price” of an industry or a city cannot be defined with accuracy. The existing analysis only measures information from different sources in large economies of scale. Real estate analysts cannot accurately pinpoint the “rock bottom price” of a single unit in any given property.

A more accurate method from a consumer’s perspective would be to hire an appraiser to give a consumer a closer idea of the current market value of a property. Real estate analysts rely on different types of considerations for their market analysis. Just like most analysts generally consider a market healthy when there is a housing supply of about six months because it indicates a balance between buyers and sellers. The Realtor association relies on an index, based on the relationship of units for sale and units that change hands in the last 12 months which is roughly 3%. This means it would take three years to work through the supply. What analyst are not taking into consideration is that approximately 70% of the properties listed in the marketplace are overpriced. Those units are owned by misinformed, resilient owners and shouldn’t even been considered in the market because of being unmarketable. That leaves approximately 30% of the units of realistic property available in the marketplace. Based on those figures the same Realtor Association index for the same period could be 10%. But what will happen down the line with the rest of overpriced units listed in the MLS? Most of them will eventually catch up with the market and will give way to yet another index figure.

In today’s marketplace, consumers buying unique waterfront properties must take advantage of the oversupply of properties available in the Miami Metro area, since it lowers the prices of the unique properties that match their search criteria. Oversupply allows consumers to have the opportunity to acquire unique property at bargain prices like we’ve never seen before. The real market size for the average consumer of unique waterfront properties is about five or ten best-priced properties located in two or three buildings of their preference. The rest of the property in the marketplace does not apply to their search criteria because of location, style or price. The “rock bottom price” for these consumers is identified when they negotiate the lowest price for the best price-positioned unit type in the building that they wish to buy. Will the market go any lower? Yes and No. The overpriced units will continue to reduce in price until they become marketable by today’s standards. But in every building there are units that have reached the “rock bottom price” or are very close to reaching the bottom. The trick is to find an experienced Realtor that knows how to identify the correct opportunities in every building.

For savvy consumers this should not be about indexes of industry averages, look for the unique properties that are priced-to-sell, they exist in every city, in every building and in every model type of property in the marketplace. We all know by now that real estate is a cycle. The consumers that buy early in the cycle, when the supply is strong will always obtain the best equity and future resale value. There are only a handful of unique properties for any particular search criteria that are available at a bargain price and for a limited time. Consumers today have the luxury to choose from a whole selection of properties that can be purchased today at “rock bottom prices” so why wait?

Carol Marianne, originally from London, England, first came to Costa Rica in 2004 because she’d heard about it and there was a cheap flight from Miami. “I was looking for somewhere I hadn’t been to before.”

Though she had no preconceived notions about what Costa Rica held in store for her (“I was just traveling around so had no fixed idea about finding anything,” she says), what she did find was “a beautiful country, with gentle people, lots of expats and a way of life that I took to immediately. It was very relaxed and friendly and fulfilled my spiritual needs as well as my social needs.”

Currently residing in Barrio La Trinidad (between Piedades and Ciudad Colón, west of San José), Carol says she chose this area because it felt familiar. “When I first arrived, I lived with a family on the San Pedro side, east of San José, and didn’t like it at all. It was cold and very built up. Then I came out west and immediately fell in love with the greenery and the feeling of space.

I shared a house in Piedades with some American ladies and then rented my own one-bedroom apartment (also in Piedades), so when I came back I naturally gravitated to where I was happiest. Plus, most of my friends live around here, too!”

Some of the things Carol particularly likes about La Trinidad are that “it’s warm, it’s accessible, MultiPlaza is a 15 minute drive down the highway, the views are great and I live in nature!” Something she could definitely live without? “The potholes in my road!”

Before moving to Costa Rica, Carol says she worked doing “mainly self-employed admin-type work and buying and renovating properties for resale.” She didn’t particularly enjoy her work, however, saying, “It was something I had to do to exist and bring up my son.” When her son graduated from high school, she was ready to leave it all behind. “Enough was enough — my son graduated and so did I!”

Carol first came to Costa Rica alone and knowing no one. Her family took it in stride, though: “They’ve been used to my leaving ever since I was 19 years old!” Carol admits to having done no homework about Costa Rica “whatsoever, other than talking to a few people who had heard about it.”

Before she moved here, she says her biggest concern was “spending too much money on hotels.” What does Carol wish she had known before coming to Costa Rica? “How sophisticated it was and how much more expensive it was than other Latin American countries I’d been to.”

After Carol’s first two-and-a-half year stay in Costa Rica, she says she “had to leave to sort some things out in the UK. I just came back three months ago to see a friend, found this awesome house and decided to stay.”

From that point, it was just a matter of nailing down the details. “I just decided to set up shop again. Rented a house, got some furniture, bought a car, got Internet connected, had a housewarming party, told all my friends to come visit, and here I am!”

Though Carol didn’t plan on staying in Costa Rica the second time around, she says, “It just happened when I came back. It felt so right being back here — I fell right back into comfortable living. I just felt this amazing well of happiness well up.”

Carol’s 23-year-old son, who lives in the U.K., has visited his mom in Costa Rica. “My son visited the second Christmas I was here, and we went up to Arenal and then the beach. He loved it! But thought it was a bit mountainous!” Carol says that while her son speaks some Spanish, her own skills are “excellent” (having learned Spanish in school), and she personally feels it is vitally important to speak Spanish here. “It makes communicating with the general population easier. Also, you can understand what people are saying behind your back!”

A typical day in the life of Carol Marianne consists of going to the gym, shopping, having lunch, attending group gatherings, and doing charity work. As far as a job, Carol says she’s too busy enjoying herself!

For fun, Carol likes to meet up with friends, take side trips, go to movies and talks, go on retreats, get a massage, and go to dinner parties.

Carol says the craziest thing she’s ever done in Costa Rica was “driving down from Monteverde in an automatic Jeep Cherokee that kept cutting out, so there was no steering until I managed to start the engine up again! I made it though – such a trooper!”

Carol says her biggest surprise in living in Costa Rica has been “finding so many like-minded, spiritually enlightened, free-thinking people — mainly expats!” While Carol has both expat and Tico friends, she says, “Ticos are a little more reserved and don’t have quite the same sense of humor as Brits or some Americans I know.”

She says it has been very easy for her to make friends here. “I joined the Newcomers Club and Women’s Club, the Little Theatre Group, Unity, and attended lots of gatherings.

I also got involved with the British Embassy’s Queen’s Birthday Party committee and anything else that required willing volunteers. I found the expat community to be very open and receptive.” It may come as no surprise, then, that Carol says her friends are her best source for advice and support.

When asked if health care was a concern for Carol before she moved to Costa Rica, she answered, “Not really. I found out when I got here that they had excellent health care in the shape of  Hospital CIMA and Clinica Biblica – I have used both and highly recommend them.”

Nor was crime something she worried about when moving here. “There’s crime everywhere in the world – I’m used to being careful and would never deliberately expose myself to unsafe situations.”

Carol has had one experience with crime in Costa Rica, which she blames on herself: “When I was parked outside the Little Theatre Group in Escazú for a rehearsal, someone smashed my car window and made off with my stereo. But that was my fault for forgetting to remove it before leaving the car.”

As far as education, Carol finds that there is a good choice in Costa Rica. “I’ve come across a few private schools through knowing people who work in them. I’m particularly impressed with the new United World College in Santa Ana, which is a first-class facility for 16-19 year olds from around the world who want to study the International Baccalaureate.”

Carol says her biggest challenge in Costa Rica has been “getting a sim card for my mobile phone. It seems Costa Rica is the only country in the world where outsiders cannot use their mobile phones unless they have an ICE contract.

It’s crazy – I’ve traveled all over the world and all I do normally is buy a local sim card and off I go, but not here.” A few other things that drive Carol crazy about Costa Rica are “the phone, electricity, and water monopolies and the paperwork.”

Carol feels the five most important character traits one needs to live happily in Costa Rica are “patience, understanding, gratitude, openness and a terrific sense of humor.”

She offers some words of advice for those wishing to move to Costa Rica: “Come with an open mind and be prepared to be patient and go with the flow. Never expect things to happen when someone says they will happen. It just doesn’t work like that over here. You have to expect things not to happen the way you want, and if they do? What a wonderful surprise!”

As far as her future in Costa Rica, Carol says, “Nothing is ever guaranteed, but for now I’m quite content to enjoy my life here. If I move on, well, that’s a whole other story!”

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.

Are you looking to buy or sell a home? If so, then you surely realize that the absolute wrong way to go about such a purchase would involve rushing in and making a buy without weighing your options and carefully deliberating on the venture. Rushing in to purchase a home is never a good idea because it could lead to making a poor purchase that undermines the entire reason you want to own a home: safety, security, and an equitable return on your original investment. This is where a Comparable Market Analysis (CMA) becomes such a great help. It is the perfect way one can increase the odds that the buying and/or selling decision is arrived at in the proper manner.

As the name would lead one to believe, a comparative market analysis centers on a detailed step by step guide to the many differences between the home you own or the home you wish to purchase to those other properties in the area that are similar. The actual reports can vary depending upon who is providing them and how detailed of a request you wish. Some reports can be as small as a one page printout while other reports could be upwards of a mini eBook. The key component of any CMA report will be the actual comparison itself which is sure to provide the detailed information one needs in order to make a clear and definitive understanding of the value of a particular property.

How can a CMA report be devised? First, a look at the active market listings in the region will be undertaken. Then, homes that are similar in size and condition will be examined. Afterwards, the prices of the various homes will be looked at as well. This will be used to arrive at the determining values of cost. For example, if you compare a home you wish to buy that is priced at $200,000 to a completely identical home that is selling for $250,000 then you are getting a great deal.

However, if the reason that the price of your home is lower due to deficiencies, you will be made aware of this as well. Case in point, two identical homes will have very different sale prices if one home has a thoroughly modern basement and the other home’s basement has long since fallen into neglect. This does not mean that the “neglected” home needs to stay neglected. Improving the dilapidated basement can turn around and raise the properties equity in a rather expedited manner. Depending upon how much the equity is raised and the cost of the renovations, the repairs could end up being paid for. Obviously, that would be a solid deal.

It would be wise to use a Comparable Market Analysis report prior to buying or selling any real estate. This will ensure you get the most out of the deal and prevent any weak purchase agreements from arising.