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Knowing exactly what to invest in when dealing with real estate transactions will determine a good or bad deal. When a good deal is made, it means that the seller, buyer and agent all walk away feeling as though they have won or made a bargain.  Having what you want in line is the beginning to making a good deal with all that are involved in the process.    

The major component that will make a deal and transaction good is the finances that are involved in it.  This means that the right loan with the specific terms and needs should be applied.  The right interest rate should be a part of this transaction.  You should also have the buyer feeling like they got the home or property for a lower price than other places.  The seller should feel like they made some profit for their next property for this as well.  

The finances that affect the deal should also be a good deal in offering upfront fees and better rates.  For example, some lenders or investors will offer prices but have other fees attached that will add onto the loan.  Knowing to look out for these will help you avoid the extra costs that may not be attached to the initial loan.  You can make sure that this part of the deal is good by investigating different lenders and seeing who has the best offer.  

Another part of ensuring a good deal comes from the state that the property is in.  The property maintenance performances should be done on the house.  This means cleaning the floors and other places that have gotten dirty over time.  It also means making sure that the property has everything running smoothly in it.  A property manager or inspector will need to move around the property to make sure everything has been maintained.  If it hasn’t, the investments need to be made before the final deal to fix these certain areas.  

Finding the best deal for your needs will allow for everyone to get a good deal.  Buying and investing in the property that you want without having the wrong types of costs and problems with the maintenance of the home will help you feel content with your decision for a long period of time.  Investigating and knowing what you want is important in determining what types of things to walk into as well as what to avoid.

Before you purchase a home – whether new or old – you should have a checklist of must-have features. You probably won’t get all of the features you want, but you can prioritize them into features you can’t live without and those you can compromise on.

When your agent shows you a home, envision you and/or your family living there. Is there enough counter space in the kitchen to accommodate your cooking style? Try out everything – flush the toilet, turn on water in sinks and showers and check the electrical outlets. If there are many little problems in the home, there are likely big ones that you’ll need to deal with on a daily basis. So, even though you may think you’ve found your dream home, don’t let it turn into a nightmare from the little stuff.

Will your furniture fit in your new home? Or, will the style of furniture you love fit into the style of home you’ve chosen? If you’re in love with sleek and modern, you probably don’t want to furnish a historical home from the 1800s.

One of your must-have features might be sweeping views of the mountains or ocean. But, how often are you home to enjoy that feature? If you get home after dark and are out on most weekends, the view won’t give you much enjoyment.

For most home buyers the kitchen is an important area of the home where great memories are made when family and friends gather round. While a sleek, stainless-steel kitchen may look great – if you have small children, that spotless stainless steel refrigerator and sleek cleanliness won’t last long and could be a nightmare to keep up.

Also, determine if the house you love will need work to meet all your must-have desires. Before you sign on the dotted line of a fixer-upper, determine if the renovations are going to be worth your time and expense. If you’re planning to make significant improvements to the home that would put its value significantly higher than your neighbors, renovations may not be the best investment. Rethink the expensive renovations and consider less expensive ones. Kitchens are one area of the home that new homeowners might want to renovate. Keep in mind that if you only have one kitchen, trying to cook and eat around chaos might be difficult and test your patience.

Don’t forget to look for adequate storage areas when considering a home to buy. Although having enough storage is one reason that people want to move, it’s often forgotten in the excitement over other features that stand out.

Many home buyers can be swayed to buy because of a luxurious bathroom or the décor. Be sure you and your family will use the fancy Jacuzzi and that those silk drapes or custom blinds are included with the price of the home.

If you plan to be outdoors quite a bit around your new home, be sure the neighborhood is safe for walks and chatting with neighbors. Nearby groceries, schools, churches might be important to you, so be sure you’re not too far from the places you enjoy.

Carry your must-have checklist with you when looking for a home to purchase and don’t try to memorize the list. You’ll be more focused and not as likely to be swayed by other, glitzy features.

Whether you are buying or selling real estate, you need to do the right talking to the right people in order to get the best deal.  Being or using a negotiator is the best way to make sure that you know exactly what is going on and are able to fall into the right piece of property.  Whether you are a negotiator or working with someone who negotiates, you will want to make sure that you walk into a home with your facts straight.  

The first thing to do as a negotiator or to look for in a negotiator is to make sure the facts are there.  You will need to know going rates, real estate investments and the market, the trends that are in place, and what facts will be best for the properties that are being looked at.  Of course, this will mean that you want to spend time to find the right deal and the right piece of property.  Whether you are an individual looking for property, or are working with a negotiator, make sure that your individual needs come first.  

If you are working with or as a negotiator, you want to make sure that they have your best interests in mind.  Oftentimes, negotiators will try to sell someone on a deal just so they can receive commission.  This is not necessarily a good way to negotiate or find a deal.  Everyone should walk away feeling like they won with the investment in the property.  This starts with finding the right information and ends with making and signing the right contract.  

If you are interested in real estate or just want to work with a negotiator, make sure that they fit your description of a good sales person to work with.  This will make a large difference in the property that you invest in as well as a difference in your ability to have your individual needs met.

Property auctions can be a great place to find fantastic real estate bargains. However, working a property auction requires a few extra skills and knowledge. Here is a quick start guide to help you navigate your first property auction.

What is a property auction?

A property auction is exactly what it sounds like. It’s a place where residential and commercial buildings are bought and sold. It’s an auction and it works like any other auction. Buyers bid on a property and the highest bid wins. 

Property auctions are generally divided into residential or commercial. And in order to attend you generally need to be approved. 

Why do you need to be approved before attending an auction?

Imagine someone bidding on a property you’re selling at an auction and when the day is done and the auction is over, the buyer cannot actually afford the property. It would be unfair to all those who bid on the property and certainly a misfortune to the person who is selling the property. Being approved prior to the auction helps to avoid this unnecessary dilemma. 

Why do people buy at an auction?

Price is the main motivator. You hear tales of people walking away from a real estate auction with a million dollar home that they bought for a dollar. That kind of deal doesn’t happen. However, you can save an abundance of money on an auction home.

How do you prepare for an auction?

Most often there is a listing available to auction attendees before the auction. Use this list to research the homes before you attend the auction. Make sure it’s in an area that you want to live or can rent in. Make sure the exterior is up to par and that as far as you can tell the home meets your goals and needs. 

Preparation is important because you can buy an auction home and end up with a ton of unexpected expenses and surprises. Doing your research ahead of time will help mitigate these surprises. 

How do you find out about auctions?

Auctions are listed in the newspaper, generally. It also helps to build a network of fellow property owners, auction attendees, real estate investors, real estate agents, and mortgage brokers. Real estate attorneys are helpful too!

Buying a property at a real estate auction can save you up to 60% of the home’s value. It’s a great place to find true bargains. However, proper preparation can also prevent unexpected surprises. You may want to attend an auction or two first before getting in on the bidding game. It’s sure to be an educational experience.

Property Auctions – Numbers vs. Emotions – Your Guide to Staying in Control

Property auctions are a fantastic way to get a great bargain on a home or a rental property. However, they can also be tremendously overwhelming. There’s a lot of information, a lot of excitement, and a fair amount of pressure to get the winning bid. All of this commotion and chaos can send logic right out the door. 

It’s important to reign in your emotions, as fun as the roller coaster may be, and make buying and bidding decisions based on the numbers and logic. Here’s how to keep things in check at your next property auction.

• Before you ever consider attending a property auction, know your goals and what you’re looking for. Are you looking for a property to rent? A property to fix up and resell? Are you looking for a property to live in? How long will you own the property?  And perhaps most importantly, how much do you have to spend? If you’re looking to buy a rental property, how much do you want to make on the investment?

• Know how much you can spend, write it down on a piece of paper and take the number with you. You may want to write down two or three numbers. How much you’d ideally want to spend and how much you can spend and still meet your financial and investment goals. Knowing these numbers will help you bid accordingly. Take the paper with you and pull it out before you’re getting ready to bid as a reminder.

• Research the properties before you attend an auction. Make a note of the properties that fit your goals. Research them to find out how they fit into your financial and investment goals. Come up with a top limit of what you’d be willing to spend on each property and commit to sticking to your budget. Make sure you research the property values around the homes, the neighborhood features, the schools, the taxes and also the condition of the home.

• Make sure all your funding arrangements are made before you attend the auction. This will help you bid with confidence.

Be prepared to walk away. No deal is better than a bad deal or an investment you really cannot afford or doesn’t meet your needs. An auction is an exciting process, however, it’s important to look at it like a tool not a competition. If you view it as a tool to get what you want, then you’ll walk into the auction confident and prepared.

There are many that are tricked by the ideas that are associated with real estate.  It may be believed that it is hard to find a home unless you have a large amount of income or are able to pay thousands of dollars up front.  This particular myth is not necessarily true, and in fact, if you search correctly, will find that it is exactly opposite.  

If you want to invest in real estate or move into a home, you can find a home for almost as much as you are paying rent for.  It is simply finding the right resources and knowing how they will fit together.  One of the places to look is at home auctions or areas where there are foreclosures.  Most of these homes will be ones that recent owners were not able to pay on and were forced out of the home.  Because there is no one in the home, the bank is paying on the house.  Most likely, they won’t want to keep the home and will be willing to lower prices and bargain for you to get a good deal and start paying them.  

If you aren’t sure where to find the bargains that are available, you can browse through locations and investigate on your own.  There are several areas that are built around finding cheap properties.  Many times, the resources on the Internet or in real estate magazines are designed to show you the market and will include the lowest prices.  By searching in local resources, you will have the ability to compare what is available and can see which homes are lower than others because of things such as foreclosures.  

There are endless resources that are available and that real estate investors are supplying in order to sell homes.  If you are looking for a home, you don’t even have to get in your car.  You can instead simply search for what is available and find how your individual tastes will fit with your bank account.

Before you make a bid on a home you’ve found, you should know some of the deal breakers you should double-check before submitting your offer. Inspecting the home is an absolute necessity and keep in mind that looks can be deceiving.

There can be little flaws such as paint you don’t like or old appliances, but there are big ones that make you think twice before overlooking. Don’t let your enthusiasm and blind love for the home blind you to the flaws that may become money pits.

One deal breaker you should consider is faulty plumbing. Without good plumbing bones there may be mildew, water stains and sagging floors. Worse problems might include sewer lines. Many parts of the country haven’t updated them in over 100 years.

Older septic tanks may also be a deal breaker. Check out the age of the septic tank and have an inspector evaluate it. Remember that repairs to sewer lines or septic tanks might cost you from &25,000 to $50,000.

The roof of your new home must also be inspected for missing tiles and shingles that are in disrepair. Some roofs may last over 30 years, but if the installation or quality is poor you could be looking at replacing it very soon.

An out-of-date or sloppily installed electrical system can be a fire hazard and you don’t want to face the task of replacing it. Tube and knob and aluminum wiring are sometimes found in older homes and can haunt you if you overlook it.

A low appraisal may alert you that you’re paying too much for the home. It could also indicate that the home sales are booming in that area and the comparable prices for homes aren’t yet equal to what the home is worth.

Beware if your dream home is in a flood zone. Even if you’re far away from the beach, lake or river, flooding can happen. If you buy in a high-risk flood zone, your insurance costs may be prohibitive and you may have a difficult time selling the home in the future.

Know the history of your dream home before you buy. For example, find out if repairs or renovations were performed by a licensed contractor and the reason for the repairs. If the home or surroundings have been sites of crimes you’re less likely to get a fair price for the home when you’re ready to sell.

Your home may be in the exact location you want with the exact view you love, but you’ve determined that it needs a third bedroom or renovations to make the basement a game room.

First, you need to check with the town about any restrictions that could affect the upgrades you want to make. You may also want to check with an architect to make sure the home structure is amenable to the renovations you want to make.

Finally, be sure you assess the neighborhood where your home is located. It could be a real deal breaker if the area is past its prime and has homes which are declining in value – or the neighborhood has become noisy and trashy.

You have to decide what the real deal breakers are for the home you’re buying, but be sure to think about the possible ramifications of purchasing a home that has many of the problems listed.

A home is the single largest investment that most people make.  When you decide to sell your home, you will likely want to get the highest possible price for it.  Getting your house in the best possible shape before putting it on the market will increase buyer interest and help you get more money for it.

One of the most cost-effective things you can do to help get top dollar for your home is to keep it neat and clean.  Pressure washing the outside of the home and cleaning the windows will make it look better to the casual observer and they just might be interested enough to take a closer look.

Keeping the lawn and hedges neatly trimmed makes a world of difference in the perceived value of your home.  If you have a flower garden, keeping it in good condition also makes your home look nicer.  But if you don’t already have one, it’s probably not worth the trouble to start one.  Potential buyers who are not gardeners may be put off by the added maintenance.

On the inside, washing down the walls can make a bigger difference than you might imagine.  You would be surprised how much dirt accumulates there.  You might also want to shampoo the carpets and wax any hard flooring surfaces.  Furniture needs to be clean and in good repair.  If you haven’t laundered your curtains in a while, now would be a good time to do so.

Other than these extra measures, stepping up your routine house cleaning is a good idea.  The house will need to be in good shape for showings.  You might have several of these before finding a buyer, so doing your best to keep things looking neat and clean is in order.

If you’re a do-it-yourselfer, there are probably some projects you can undertake to increase the value of your home.  If the carpet is looking shabby, you could replace it.  Hardwood floors are popular, so you might even consider installing them instead.  Drab walls can be painted or covered with new wallpaper.

Decks can increase the value of a home substantially.  If you already have one, you might consider sprucing it up, making it larger, or extending the roof to cover it.  If you don’t, adding a small one could be well worth the time and effort.

Any improvements you’ve added previously should be in the best possible condition.  If you have outbuildings, cleaning them up and making any needed repairs will make them even more of an asset.  Pools should be cleaned and maintained regularly for the best possible appearance.  Even garages and carports may be in need of some extra attention.

Getting the most money possible out of your home will require some work on your part, but the payoff can be great.  It will usually substantially outweigh any money you spend, especially if you can do everything yourself.

If you’ve ever thought about owning a rental property and becoming a landlord you likely have a few questions. What’s in store for you? How easy is it to be a landlord? What problems are you going to face? Is it really a profitable business model? Let’s take a look at some of the pros and cons of owning rental property to answer your questions.

Advantages of Being A Landlord

• You own property – an asset that can be sold, borrowed on and essentially increases your net worth.

• Income – Rental properties generally offer an income. Depending on the property and its location, the income will vary. And it’s essentially passive income. You may be required to maintain the home, however, the monthly rental payments generally cover that labor and more. 

• Homes tend to increase in value. This means that as you own the property it will appreciate or become more valuable. It’s not guaranteed, however. As the property increases, you can increase rent depending on your goals and your tenants.

• There are definite tax advantages to owning rental properties. In fact, your rental income may be tax free if you do not receive net cash flow after expenses are deducted.

• And you can refinance your loan if interest rates fall and your property appreciates. This is tax free. Or if you sell the property and reinvest in another property, the profits can be tax free. IT’s called a tax free exchange.

• You also have the satisfaction of working for yourself if you own several properties. This can be your full time job and it generally doesn’t require full time hours. This can be a huge advantage to being a landlord.

Disadvantages Of Being A Landlord

• Properties don’t always increase and you may end up breaking even.

• There is also the problem of finding tenants or having to deal with problematic tenants. 

• Liability problems. Being a landlord means being responsible for what happens in the home. If someone gets hurt, they may decide to sue you. Insurance can be costly and liability can be stressful. It’s your responsibility to make sure your rental home is up to code and safe for living.

• Unexpected expenses and repairs. Homes need repairs, it’s a fact of life and home ownership. And generally those repairs cost more than we expect and happen at the worst times. Being prepared for unexpected expenses and repairs with a savings account can mitigate this disadvantage.

Owning a rental property is full of ups and downs. Deciding if it is the right choice for you requires weighing the pros and cons. Consider talking with other landlords and rental property owners before making a decision. To your success!

Selling a home doesn’t have to be a difficult situation. If you have a real estate agent, she’ll handle all the negotiating tactics and act as a buffer between seller and buyer. However, you can successfully negotiate the sale of your own home by knowing a few tips ahead of time. Make sure that you have a strategy. This lets you plan in advance for the scenarios that might crop up. You’ll be ready to handle anything or discuss anything that might arise during the negotiation process. You have to start by knowing what it is that you want out of your home when it comes to the price. By knowing your bottom line for profits, this allows you to keep your mind on your goal rather than getting sidetracked by all the different tactics buyers will sometimes use. 

Be prepared to defend your position. They may want an explanation for why you’ve set your price at the amount that it’s at – or to know why you’re not offering certain concessions. You can defend your position by doing your research ahead of time. Know what the market is doing. Understand if it’s a buyers’ or a sellers’ market. Have your home price set so that it fits the market and the neighborhood that you’re living in. 

If you’re selling a home for $200,000 in a neighborhood where the highest home value is $150,000, that’s a poor strategy. You need to do your homework so that you’ll know how to correctly value your home. You can do a market analysis, but you can also get the home appraised before the negotiations start. That way, you have proof on hand with what your home is worth and anything that needs to be taken care of first. You might have a fixed price in mind when it comes to selling your home – but don’t be afraid to listen to the other side. By being willing to pay attention, you might end up with an even better deal.

Know ahead of time that it’s rare for both parties in a home sale to get exactly what it is they planned to get. The negotiation process works as a give and take and both sides need to be willing to make concessions. Don’t try to hide the flaws in your home. A buyer knows that every home has flaws. Point yours out and either offer to fix those as part of the deal or take money off the asking price in exchange for him assuming the needed repairs once he’s the homeowner. 

The first offer that you get might be a lot less than you’re expecting. This is simply the art of negotiation. Just make a counteroffer. Keep calm and keep your eyes on what it is that you want out of the negotiation and you should be able to get through it easily.

Homeowner’s insurance is an important thing for any homeowner to have.  It covers your home and belongings if they are destroyed by disasters such as hurricanes, tornados, or fires.  But many homeowners do not realize that standard homeowner’s policies do not cover flood damage. Flood insurance is not included in regular homeowner’s insurance because most people do not live in places with high flood risks.  It stands to reason that if one lives far from any bodies of water, they should not be required to pay higher premiums to be covered in the unlikely event of a flood.  It is for that reason that flood insurance is sold separately from regular homeowner’s policies.

Flood insurance is provided by the government through the Federal Flood Insurance Program.  It can be purchased from your homeowner’s insurance agent, but it is completely separate from your homeowner’s policy.  Flood insurance is relatively inexpensive, so if you live near a body of water it is well worth considering.

Those who are not in flood-prone areas may be able to get a lower premium on their flood insurance.  Even if you’re not near a body of water, flooding is possible from melting snow or water running downhill.  If you might possibly be at risk for these occurrences, you may want to consider flood insurance as well.

Flood insurance covers the replacement value of your home and the cash value of your belongings.  There is a limit to how much they will pay on both.  To compensate, some specialized insurance companies sell excess flood insurance.  It picks up where federal flood insurance leaves off, covering the remainder of replacement value on your house and cash value of your personal property.

Often people in flood-prone areas do not purchase flood insurance because the Federal Emergency Management Agency (FEMA) offers assistance after floods there.  But FEMA can only provide assistance in areas that have been declared federal disaster areas.  If the President does not make this declaration, those without insurance have no assistance in rebuilding.

It is important to remember that flood insurance has a 30-day waiting period.  That means that if you go out and buy flood insurance after a flood warning is forecasted, your policy will not cover any damages that may be incurred from that flood.  If you believe that you are at risk for flooding, getting flood insurance right away is the practical thing to do.

Flood insurance is not required by your lender in most cases.  But if you get a federally backed mortgage in an area with high flood risk, the law requires you to have flood insurance.  Whether it is required or not, flood insurance can give you the security of knowing that your damages are covered in the case of a flood.