Tuesday 30 April 2013

With the Current Stock Market Malaise, Investment in Phoenix Real Estate Makes Even More Sense

The Phoenix residential real estate market represents a great opportunity to individuals, families, and investors who are weary about the stock market and are realizing that their investment portfolios are too exposed to fluctuations in Wall Street. By now, the reality has sunk in with most people - the stock market's decline has hit 401K and other retirement investments hard. As a result, this is a critical time to for individuals, families, and investors to rethink diversification of their portfolios again. Portfolios need to be more highly diversified than ever before.

And it's time to rethink real estate as one component of your diversification in the future in addition to stocks, bonds, commodities, international investment, and low-risk savings instruments, to name a few.

Wall Street, Main Street, and My Street, and Real Estate

There is no doubt that the goings-on in the real estate industry are intermingled with the market challenges that Wall Street is facing, which in turn impacts Main Street and "My Street." But the issues with real estate largely emanated from the many corporations that make up Wall Street combined with lack of government oversight and inaction. Lack of personal discretion also contributed to the problem.

Having said that, here is why real estate should be a component in your investment portfolio once again, and why the Phoenix real estate market is an excellent choice for investment to help you diversify that portfolio.

First, due to the wave of foreclosure-related properties, prices have declined to 2004 and even 2003 pricing levels. This is pricing that is pre-run up. Though there is a risk that prices may drop further, the extent of a further decline may be limited in the short term while the long term outlook gradually gets stronger.

Second, real estate can prove to be a more reliable investment in a normal market environment. Prior to the run-up in home valuations in the second half of 2004 through 2005, annual home appreciation in the Phoenix residential real estate market averaged 5%-6% . Playing the long game as investors should, holding a property for 5-20 years could yield a solid return.

Long term is key here. The investor has to be committed to a lower but steady return on their investment when it comes to real estate. The Phoenix housing market will not likely experience a meteoric rise in valuations like it did again. That's not to say that there won't be some opportunities to turn properties fast (whether through acquisition at a foreclosure auction or wholesale, or a flip), but this model will have the high risk that most investors will and should shy away from.

One note here. At least in the Phoenix area, investors have to weigh the merits of investments in homes and real estate by several components to get a true picture of the return on a property. These factors are growth in appreciation, rental income and offsets, tax benefits, and equity paydown and buildup.

Third, real estate is real. You can see it. You can touch it. You can check up on it (if you buy locally). And it will always hold some intrinsic value no matter what happens. If you have a home in Chandler, it is easy to get across the Phoenix area, to check up on an investment property in Glendale. Or, perhaps the investment property you choose is right next door to your home in Tempe.

Fourth, under certain circumstances, real estate taxation on capital gains growth can be minimal. The same cannot be said of many other investment vehicles.

Fifth, an investor has much more control in determining the value of the property. Smart improvements and renovations combined with effective property management can increase the value of the property substantially.

Sixth, the Phoenix area continues to grow. The Valley saw a 2.8% increase in the number of residents here last year. This trend will continue as Phoenix and surrounding areas are perceived as a stable, optimum climate to live and to work. With the decline in real estate prices, this perception will also be reinforced by a sense that Phoenix and surrounding areas are once again affordable.

Finally, real estate can serve a dual investment/personal objective. For instance, an investment in real estate can serve as a later gift for children. Or, it can be utilized as a sort of savings plan for children's college tuition as a complement to 529s and Coverdell plans. The investment could be a retirement property for later in life. Real estate investments can also be used to create income streams to live off of (when rents and equity buildup eventually turn the property cash-flow positive).

There are numerous reasons to invest in real estate even beyond this list.

Real Estate Has A Role to Play in Your Investment Portfolio

The difficult truth about the stock market is that over the past eight years, the U.S. economy has seen two major disruptions or recessions that were severe enough to have rippling effects for all Americans as seen by the decline in 401K and other retirement savings values. As a result, further diversification of investment portfolios is needed across many different asset classes with a regional focus as well.

Real estate should be one of those classes. Given real estate has seen real substantial pricing declines over the last three years to levels seen before the run-up period, one has to consider that there are real deals in the marketplace for real estate. Coupled with the right long-term outlook and commitment to investment fundamentals, real estate can have a more effectual, countervailing purpose in investment portfolios that can help Americans better weather substantial market disruptions in the future. For investors looking for specific markets that may be worthwhile to investigate, real estate in the Phoenix area is a compelling choice.

Sunday 28 April 2013

Searching For Las Vegas Real Estate

The friendly state of Nevada, it could be a place you call home or one of your favorite vacation spots. Either way, it's a great place to be looking for an investment property. Prices are dropping a little, and interest rates are still at a 40-year low!

There is a lot of ways to make money with Las Vegas real estate. If you are a first investment buyer, then seek out a qualified real estate agent. Las Vegas is Nevada's world famous city. Today it remains one of the top real estate investment locations in the United States with the ever-increasing tourist traffic and convention traffic flooding into the area. There is consistent growth with the population, buildings, and jobs. Which makes for a great place to invest.

With so much to offer and a steady influx of new residents due to the cost of real estate in Las Vegas it is predicted that even with a cooling off of the current market the demand will remain steady for some time. Remember real estate goes in cycles, and Nevada is the perfect city to see this take place like no where else in the nation.

While many rushed into the market to make fast money the cost of real estate eventually topped out, and the slow down of buyers stabilized the market. Most real estate professionals believe that there is still a significant room for growth in the Las Vegas real estate market.

Over the past couple of years the Real Estate Market has taken center stage breaking national sales records with record appreciation rates. Find a good Las Vegas real estate agent, they will probably know more about real estate in Las Vegas than you do. Other services your agent might provide that can benefit you when buying Las Vegas real estate include providing connections with an affordable mortgage lender, experience in foreclosures, repossessions and estate homes, and experience in corporate relocation.

By making intelligent decisions about your Las Vegas real estate, you can assure yourself of economic advancement. A Las Vegas real estate attorney will play the role of a watchdog that can guide a client through the details and paperwork necessary for any house sale in Las Vegas. Whatever your financial goals are, buying Las Vegas real estate will probably be profitable to you.

When looking to invest in residential real estate, notice the neighborhood that the real estate is in. With some basic knowledge of Las Vegas real estate suburbs, you should be able to make a more informed decision.

Choose a Las Vegas real estate agent that will carefully research each new home to fit perfectly, with what you want. Since Las Vegas is such a dynamic city, it is hard to find real estate that cannot be put to profit-making use. The real estate market in Las Vegas has been appreciating at an incredible rate, and will continue to do so in the near future.

Las Vegas real estate suburbs are also good investments. Las Vegas real estate can be affordable if you look just outside of town, away from the strip, unless you are searching for land to build your very own casino? Then you would already have enough experience and would have no need to be reading this article?

There are projects that are breathtaking in design and integrate the best of Las Vegas, with Strip, Valley and mountain views, and true to the style and luxury of Las Vegas.
Also, living or operating in Las Vegas will exempt you from paying a state tax. This transformation has resulted in Las Vegas becoming a mature city. Nevada real estate agencies offer a selection of properties available for purchase and this is helpful to the real estate investors.

If Las Vegas is your dream, then get out there and buy yourself a little piece of Nevada you can call your home. This really is, the time to start buying real estate in Nevada.

As the saying goes: "Buy when everyone else is selling, and sale when everyone else is buying."

Wednesday 24 April 2013

How to Become a Real Estate Agent

If you're wondering how to become a real estate agent, the basic process is fairly simple, although it does vary a lot from state to state.. You will need to take classes, pass exams, earn a real estate license, find a broker to work for, then find sellers or buyers as clients.

To successfully practice as a real estate agent in this competitive business can be challenging. You'll have to stay current on legal changes, understand the real estate contracts and be technologically aware. If you are determined, the payout can be huge.

Here are the basics of what you need to know about becoming a real estate agent.

1) Real Estate Agent Licensing Requirements

The Licensing requirements are different for each state. In general, you will have to:

-Meet an age requirement

-Pass a background check

-Complete approved real estate courses from a state-approved school

-Pass a state exam

-Complete an application form

-Submit various fees

Agents just earning their license work for a real estate broker. Most new agents sign up with one of the big company brokerages. If you decide at some point to work for yourself, you will need to earn a broker license. Note that the most successful agents, even those working for a broker, treat the real estate profession as their own business, not just a job. This is one of the secrets to success in this field.

2) A Day in the Life of a Real Estate Agent

A real estate agent's primary job function is to help clients in the (complex) process of buying and selling real estate.

The list of duties includes but is not limited to:

-Interview buyers to determine what kinds of properties they are looking for.

-Submit buyers' purchase offers to sellers.

-Work with lenders, escrow officers, home inspectors, and pest control operators to make sure that transactions close on time.

-Prepare documents such as listing and purchase agreements.

-Be the intermediary in negotiations between buyers and sellers.

-Determine a property's market value by comparing the property with similar properties that have recently sold.

-Schedule appointments to show homes to potential buyers.

-Find properties that are consistent with buyers' needs and available finances.

-There is so much variety that a real estate agent is usually never bored.

3) What is a REALTOR®?

Many people are confused about the difference between a real estate agent and a REALTOR®.

A real estate agent becomes a REALTOR® when he or she pays an annual fee to the National Association of REALTORS® and subscribes to its Code of Ethics. The agent generally joins through the local board or association, at the city level. Membership in the REALTORS® is optional, but highly recommended.

4) How much can you earn?

Real estate agents are generally paid on commission. This commission is a percentage of the sales price. The seller will generally pay 4-6% of the sales price as the fee for having a professional sell their property. That will often be split equally between the seller's broker and broker who brings the buyer to the table.

As an example, if the fee for a $300,000 property is 6%, the buyer's broker will be paid 3% or $9000 and the seller's broker will also be paid 3% or $9000. The agent is paid directly by the employing broker, using their agreed-upon commission split. This is often 50-50 for beginning agents, so in that case the agent in our example would receive $4500.

Visit Real Estate Career Info for requirements for obtaining a real estate license in your state.

This article may be reprinted if proper credit is given and all links left intact.

Copyright©2005 Real-Estate-Career-Info.com

Tuesday 23 April 2013

Is Now The Time To Invest In Real Estate

If you're tired of the stock market "roller coaster ride", the solution to your problem is right here.

Let's begin with the facts that are stopping many would-be first time real estate investors and even some experienced pros, especially when you believe the stock market is beginning a great upswing.

1. We are in a turn-around economy (depressed, it you want to really be negative about it).

Comment: Yes, the economy is slow. People are pulling back. Anyone who wants to sell their home, and can wait it out, is not willing to sell now, while prices are down. Those who MUST sell, are taking much less than they could have sold for six months or a year ago. But, it may not be all bad. My wife has a home listed that, six months ago would have sold in a minute for $380,000. Now, the price has been reduced to $325,000 and it still hasn't sold. Now consider this. The home was purchased a few years ago for $110,000. Sure, it would be nice to find a buyer at $380,000 but even a $310,000 selling price will result in a $200,000 profit for the seller. Remember, this applies to someone who must sell now.

2. Real estate just isn't selling. We are in a "buyer's market" (right now).

Comment: We are in a buyer's market. If you have considered beginning your real estate investment program, now is the time to jump in with both feet. You'll have a large selection of properties from which to choose...at realistic prices. Even if you are starting out with a single family home to rent out, your selection of well priced homes should be plentiful.

3 Home prices are out of reach for many potential buyers.

Comment: Fortunately, or perhaps unfortunately for home sellers, point number three works in buyer's favor. If you own a small home or apartment complex, you'll find all kinds of tenants who are priced out of the home buying market and must rent for the indefinite future. You'll have a ready market of potential renters.

4. This is the time you need to wait and see what is going to happen to the economy.

Comment: If you are serious about becoming involved in real estate investing, now is NOT the time to wait and see. As soon as the economy turns around (which it always does), you will not have the selection of properties and potential tenants that you have right now. Now is the time to get serious about securing your financial future in real estate. If you don't, prices will be high again before you are ready... or knowledgeable in real estate investing. Let's add one more factor to make it even more dismal.

5. Many cities in the country have manufacturing plants that are out-sourcing, laying off employees and reducing or

eliminating pension programs.

Comment: Not only do new corporate policies and layoffs flood the market with the need for more affordable housing, but it creates a need for a way of securing your financial future other than relying on corporate retirement programs that may or may not be around when you need them.

OK, is that enough to make you want to crawl into a hole until things get better?

Bottom Line: Historically, our economy has periodic slow periods followed by economic booms. Right now we are in a slow economy. That means that right now is the time to become involved in a real wealth building program...real estate.
Unlike the stock market, real estate is slow to react to changes in the economy. You don't have to worry about getting up in the morning and learning that the value of your investment has just dropped five or ten percent or more. You have time to plan ahead.

Have you ever wondered why when the stock market jumps up 50 or 100 points in one day and the media proclaims how great it is? The next day it drops a like amount but they refer to it as "an expected adjustment".

Now, let real estate sales slow down and prices come down and real estate is blackballed as a sign that the economy is in a recessionary period and home sellers are in a most undesirable situation, that they have to drastically reduce their prices in the hopes they can sell. The media fails to point out that the home will still sell, in most cases, for a lot more than the owner paid for it. We saw an example earlier in this report. This price reduction only applies to someone who must sell now. Somehow, most medial coverage overlooks the 'must sell now' part of the equation.

The most important consideration is to find a way to secure your financial future. Real estate, over the past 200 plus years, has proven to be the finest way to do it. Before you sit back and think, "Hey, I've got it made doing what I'm doing", here's a frightening statistic regarding your financial future:

Did you also know that 95% of our population, over the age of 65 cannot afford to retire? In a national survey made in the 1960s by the Kennedy Administration, they discovered that 22% of the people over the age of 65 relied on charity for survival, 28% had to continue working and 45% relied on relatives for survival.
That survey was repeated a year ago, before corporate layoffs really started taking hold, and the new survey indicated that 95% of our population over the age of 65 were still not able to survive retirement without outside support.

That ninety-five percent did what you and I have always been taught to do...they saved their money for retirement. But, they saved it in the wrong places... places that guaranteed they would not have enough to support them when they quit working.
If you're dreaming about a secure retirement based on social security and your corporate retirement program, you may be in for a startling awakening.

Real estate investors have proven you can avoid this trap. There is, however, one vitally important contributing factor to successful real estate investing with minimum risk... knowing what you are doing!

You need to study a real estate investment program will lead you through the professional's methods of real estate investing. A program that is spelled out in easy to learn and use, step by step procedures. One that offers support through each phase of real estate investing.

Maybe you don't want to begin investing right away? Perhaps you are still a disbeliever. I'd suggest taking a course and then make that decision. If you choose the right program, you'll be anxious to begin securing your financial future as soon as you discover how easy real estate investing is and how you can become part of this bonanza. If you still decide to procrastinate, you'll at least have all of the knowledge you need to jump in when the urge strikes you...and I'll guarantee you'll do it sooner than you think!

One more point: If you have been tempted by the late night infomercials you see on TV, promising you can get rich quick with no money or credit, check them out on your Internet search engines. Read some of the reviews written by those who have taken the $1,000 and up boot camps or seminars. Be sure you are not reading a promotion written by the company giving the seminar. You'll quickly learn who has a program you may want to try that offers easy to learn and use systems with minimum risk.

Wednesday 17 April 2013

First Quarter 2006 Miami Real Estate Analysis

Alex Shay, an experienced real estate broker associate in Miami, analyzes market conditions and a changing real estate climate in Miami Beach, where luxury waterfront properties have been in high demand for years.

What's happening in Miami? It's a question that is asked over and over again. Sellers want to know; and buyers want to know. We're talking real estate, Miami Beach luxury real estate, to be exact. This is an analysis of the first quarter, which should give you a feel of the real estate climate and marketplace in Miami Beach during the first 3 months of 2006.Do you want to know what's happening? According to Alex Shay, the best way to describe it is, resistance. It's a word that Realtors don't like to hear, but that's what has been happening. Sellers are keeping their asking prices up, and buyers are resisting. Sellers feel that the number of luxury homes in Miami Beach is very limited, and that the demand is high, and buyers are refusing to pay the prices being asked. "We are experiencing a bit of a standstill in the Miami real estate marketplace", says Alex Shay, and the result is that there far more luxury waterfront properties on the market now, than there were during the first quarter of just one year ago.

For example, in discussing Miami Beach real estate, including Indian Creek Village, and Bal Harbour, changes are taking place. Last year, during the first quarter, there were 29 closings of listed luxury waterfront properties, as compared to 24 closings during the first 3 months of 2006. However, last year during the same time period, there were less than 90 listed luxury waterfront homes as compared to almost 200 luxury homes that are presently listed on the market for sale. That in itself should tell you that the Miami real estate marketplace has shifted, at least temporarily.People want to know will happen in the future, but a crystal ball has not been found. Alex Shay does have opinions, however, as well as a great deal of experience in the luxury real estate market, and although he doesn't pretend to be able to predict the future, he says that the demand for luxury waterfront real estate on Miami Beach remains high. Miami is an international city, and the only place in the USA, where the weather remains warm all year round. That makes Miami a very desirable place to live and to own real estate, especially luxury real estate. People come to Miami from all parts of the globe, and some of those people see the investment opportunities that this wonderful city offers. They buy property. For that reason, the demand for real estate is high, and will probably remain high in the foreseeable future. Owning Miami real estate is most likely going to mean that you will be "sitting pretty" at the end of the day. Prices have not gone down in many years, and because the amount of international travel has increased dramatically over the past 20 years, people will continue to purchase Miami Beach real estate. What does it all mean? In Alex Shay's opinion, it means that although there is presently a temporary standstill, in so far as buyers resisting the high asking prices of sellers, things are still looking good.

Closings of luxury Miami real estate are still happening, and will continue to happen. If a buyer is astute, and allows him or herself, to become well educated in the real estate marketplace, that buyer can make a good deal, and within a few years time, may thank his/her lucky stars for having the courage and willingness to take a chance. A few years ago, buyers would sometimes complain about the high prices. That was when you could pick up a luxury waterfront property, for $500,000. Today that same property may be valued at more than 5 times what it was worth then. Therefore, if you can buy a luxury property on Miami Beach, and get a fair deal, do it. Don't hesitate. "You wont be sorry", says Alex Shay. He points out that he has yet to find anyone who said that they were sorry for purchasing Miami Beach property.

Miami is not a city located somewhere in the USA where people merely buy and sell property because they are able to afford more, or because they are downsizing. It's not a place where only people who live here, buy property. It's a city where people from all over the world buy and sell, so, unless some unknown disaster strikes, almost anyone buying Miami Beach real estate, is going to be very glad they did.One last thing that should be mentioned is that those who are interested in luxury real estate are not hesitating to purchase a home because of negative economic conditions. It appears as if the economy is fine at the moment. They are hesitating because they don't know what to do. No one wants to make a bad deal, and no one knows what the future will bring.

They approach Realtors in whose opinion they have some faith, and ask the age-old question; will prices go up or down? In the near future, they won't go up much, or down much. What can be said is that prices of luxury waterfront property on Miami Beach, have stabilized.

For more information go to http://www.alexshay.com

Tuesday 16 April 2013

Don't Make Mistake Like Millions Out There - Find A Good Real Estate Agent Before You Buy Or Sell

Have you ever wondered what exactly is up with Real Estate Agent? This informative report can give you an insight into everything you've ever wanted to know about Real Estate Agent.

How can you put a limit on learning more? The next section may contain that one little bit of wisdom that changes everything.

If you are looking to buy or sell real estate, do not get caught like millions of other people out there, in thinking that you don't need a real estate agent. Most people who buy or sell homes, generally think that a real estate agent is a waste of money. Those who choose to buy a new home, think that real estate agents only add to the cost of purchasing the home.

I am not a real estate agent but I can tell you that most people aren't aware of the fact that real estate agents are normally paid by the seller, not by the buyer. As a buyer, you'll get to work with a professional real estate agent without really having to pay for it yourself. The policies can vary greatly from state to state and company to company, which is why you should always check any paperwork or contracts that are provided to you to ensure that you know what you are jumping into. When you are interviewing agents, be sure to ask about any other type of fees as well.

A lot of real estate agents may work with both buyers and sellers, although most specialize in working with either the buyer or the seller. If you are buying a home, make sure that the agent you choose has prior experience of working with buyers and transactions that involve no money down. This way, you can count on your agent to be there when you need him the most - especially if you don't have a down payment.

Top 3 things to consider when looking for a real eatate agent:

1. What you need to look out for when you are interviewing a real estate agent - if he or she isn't familiar with down payment assistance programs, you shouldn't hire their services. Those agent who aren't familiar with these types of programs generally aren't on the level, or they may lack the experience necessary to help you purchase the home of your dreams.

2. Interview as many real estate agents as you can before you make the most important decision in this process. Get a list of real estate agents that you can interview based on referrals from friends, lenders, and even family. Lender's referrals are normally a great choice as most lenders have worked with their recommendations in the past and both are already familiar with each other. Choosing a lenders referral can also prevent you from encountering any obstacles or surprises.

3. When you interview a real estate agent, ensure that the agent explain his fees upfront. This way, you'll know exactly how much he will be getting from the purchase. It is wise to find out how much experience he has in the field, and how long he has been working with real estate. It also help to ask about sample contracts as well. If you are buying a home, you should make sure that the agent works with buyers. If you happen to be selling your home, then you'll want to make sure that the agent works with sellers. Agents that are dedicated to one or the other are the best choice, as they will have more experience than agents who work with both buyers and sellers.

So, you see, finding a real estate agent is not such a difficult task after all - providing you know what to look for. If you take things one step at a time and carefully make a decision, chances are that you'll end up with an agent who has the experience you want. You should always be careful when you choose, and never rush the process. Real estate agents are easy to find, although finding one who fits your needs and has your budget in mind is a little tougher to locate. When you make that final decision, you should always choose an agent who has your best interest in mind - and isn't just after the money.

As your knowledge about Real Estate Agent continues to grow, you will begin to see how Real Estate Agent fits into the overall scheme of things. Knowing how something relates to the rest of the world is important too.

Sunday 14 April 2013

Low Commission Real Estate Agents in Los Angeles

A large number of homeowners, all across the country are interested in selling their homes. If you are one of those individuals and you live in or around the Los Angeles area, you have a number of options. The option most often selected by a homeowner is to receive professional assistance. This assistance often comes from a real estate agent.

If you are searching for a Los Angeles real estate agent, you have a number of different choices. You can do business with a full priced real estate agent or you can find an individual who specializes in low commission real estate. Los Angeles has a both types of agents. When searching for a real estate agent, you are encouraged to familiarize yourself with the services offered by each type of agent.

Full priced real estate agents tend to be more expensive, but they are sometimes the most sought after. This is because in many areas of the United States there are a limited number of real estate agents. When competition is small, many businesses make the decision to charge higher prices. Another reason why full priced real estate agents are popular is because of the wide range of services they offer.

The services offered by a particular real estate agent will vary, even with full priced real estate agents and agents specializing in low commission real estate. Los Angeles residents are encouraged to fully examine each service before making a final decision. Many residents are unsure what to look for in a real estate agent. If you are searching for a Los Angeles agent to assist you in the selling of your home, there are a number of services that you may search for.

A large number of real estate agents participate in an MLS program. MLS programs are often referred to as multiple listing services. Almost all real estate agents, including full priced agents and those specializing in low commission real estate, participate in an MLS program. An MLS program allows homes on the real estate market to be placed in a large, searchable database. This list includes homes being sold by different real estate agents.

In addition to an agent's participation in an MLS program, you should determine the other ways that they intend to market your home to potential buyers. Many real estate agents use newspaper advertisements, while others use open house programs. A low commission real estate agent may not offer individual showings to potential buyers, but they usually have other effective ways of marketing your home.

The marketing of your home to the general public is important to success of the sale. In addition to marketing, there are a number of other factors that you should considered when finding a real estate agent. These factors are all important, whether you choose a full priced real estate agent or one that specializes in selling low commission real estate. Los Angeles residents have reported success with low commission agents and there is no reason why you shouldn't be able to receive that same success.

Thursday 11 April 2013

Real Estate Auctions - The New Land Rush

On a sunny afternoon in Florida, an energetic crowd gathers on the lawn of a high end luxury estate. A loud and eager banter between an auctioneer, a group of bidders and bidder assistants fills the air. For several minutes the auctioneer asks for the next highest bid and the bidders respond. Suddenly the bidders grow silent. The high bidder holds his breath in anticipation of winning the auction. The auctioneer calls for one more bid. In a loud clear voice which rolls over the audience he says, "Fair warning, last chance" the auctioneer pauses, "SOLD!" And in less than 10 minutes another multimillion dollar estate has changed owners.

Successful real estate auctions like the one above are happening all over North America and the Caribbean. Recently real estate auctions have been on the rise, the increase in popularity is partly driven by growing inventories and fading buyer confidence. Properties that were selling in weeks using traditional methods are now languishing on the market unable to attract buyers even as seller's lower prices. Many say the real estate boom is over but savvy buyers and sellers are profiting from real estate auctions.

Real Estate Auctions Work in Up or Down Markets.

Regardless of trends or market cycles, real estate auctions provide an open and transparent process for buyers and sellers. Properly conducted real estate auctions attract ready and willing buyers and motivate them to act now.

The auction method removes the "wait and see" attitude which serves to further depress real estate values. Buyers are always concerned about overpaying. Buyers gain confidence with their purchases at real estate auctions because they can see what others are willing to pay.

When market demand is high and inventories low, real estate auctions can deliver selling prices well above what a willing seller would have accepted in a negotiated private treaty sale. In good selling climates many property owners using traditional real estate methods; negotiating with one buyer at a time, leave thousands of dollars of equity on the table. During up markets real estate auctions are the best way to establish top market price.

Evaluating Your Real Estate for Auction

Not every property or seller for that matter makes a good candidate for auction. First of all sellers must be ready to sell now and for the current market value. Also a real estate auction will not fix problems caused by a downturn in market value of your property, if you owe more than a willing buyer will pay, be prepared to come to closing with your check book.

Properties that do well in real estate auctions have a high uniqueness factor. Ask your self, "What makes my property different from most others?" Maybe you own a resort property or high end luxury home, commercial properties and land do very well at auction. Real estate auctions thrive on uniqueness. If your property is like everyone else's, the best thing you can do is offer the most competitive price.

Most importantly sellers must be reasonable about setting a minimum bid. A seller must look at the lowest, most current comps and price below that to generate the interest and urgency necessary for a successful real estate auction. Once the auction begins and qualified bidders start competing against one another you can watch the selling price increase.

Locate a Qualified Real Estate Auctioneer

Start by checking with the National Auctioneers Association, the best real estate auctioneers belong to this organization. These real estate auctioneers are well trained and adhere to a standard of practice and a code of ethics. Many attend the annual International Auctioneers Conference where the latest techniques and innovations in the real estate auction industry are presented.

Find out if the company you are interviewing is a full time real estate auction firm. Many real estate agents are getting auction licenses yet have no experience with the auction method of marketing. Conducting a successful real estate auction is nothing like (private treaty) traditional real estate sales. Go with a real estate auction pro.

You're probably better of with an auction house that specializes in real estate auctions. There are many qualified auctioneers who have generations of experience selling personal property; furniture, dishes, lawn equipment and the occasional rare painting. Selling real estate at auction is a complex matter that should only be attempted by full time experienced real estate auction professionals.

Commissions and fees may vary, sellers must pay all marketing expenses up front and buyers typically pay 10% of the sales price to the auctioneer of which a share goes to participating real estate agents.

Types of Real Estate Auctions

Auctions are effective because they create a seller's market. Professionally conducted real estate auctions create urgency, a reason to buy today and competition for the property. Terms and conditions of sale are established ahead of the auction. Real estate auctions will follow one of these three approaches:

Absolute Auction

The property is sold to the highest bidder regardless of price- using this process often returns the highest sale price.

Minimum Bid Auction

Seller agrees to sell at or above a published minimum bid price - this method is useful for internet auctions.

Seller Confirmation or Reserve Auction

With a reserve auction, the seller "reserves" the right to accept or decline any bids usually within 48 hours of the auction. Reserve auctions are used when there is a lien on the property from a lender or a court ordered sale with a minimum selling price.

Monday 8 April 2013

Part 1: FAQ's From Media Interviews With Real Estate Author

Do you feel there is going to be a real estate bubble?

Nash: No. Are some coastal and resort markets over-heated, yes. I don't feel that markets will collapse. But investors and property owners should be ready for longer market times, diminishing over-full-price and multiple offers in over-heated markets. Prices could plateau and appreciation levels will hover at more historical levels. If you live out-of-town from where you purchased property on appreciation speculation, I would keep in very close contact with a un-biased professional in the market, daily.

Have real estate appraisers contributed to the rapid increase in home prices?

Nash: Not necessarily. You have to understand their role in a real estate transaction. They are hired by the mortgage lender to appraise the property. The homebuyer pays for the appraisers services. The lender is in business to lend money and the real estate brokerages want to close the transaction and receive their fees. In most markets there are solid closed comparable properties that justify underwriting the loan. In rapidly appreciating markets, where there are no closed comparables to support the new value, all the participants in the transaction should be aware that there is risk involved in the new value assigned to a property in a real estate contract.

What should homeowners and investors do to protect themselves from a potential bubble?

Nash: Look for incentives by builders on completed new construction buildings or homes; this indicates an over-supply of new units. Research days on market or the length of time of property has been on market. If the typical time recently has been 30 days for sold properties and current market times for the majority of sold properties are 60 or more days, the market is softening. Home prices and mortgage rates effect each other, as interest rates drop, the more buyers can afford to pay for a home, but as rates rise buyers can afford less of a purchase price. Watch interest rates as an indictor of deflating prices.

What is your position on interest only loans?

Nash: Consumers need to look at the long-range implications of interest-only loans. They should keep in mind that if their home value declines, they still owe the loan amount, which could be higher than their homes market value when they sell. If appreciation remains low, in the two to five percent range and the cost to use a full-service real estate company to sell their home is five to seven percent, their appreciation will actually go to pay selling and marketing costs, ouch!

What do you think about two new books:" Irrational Exuberance" and "Freakonomics" that touch on residential real estate?

Nash: Both make solid contributions for real estate consumers and investors in today's environment. Everyone is looking for information to make real estate decisions. While there are many inflammatory headlines, I've found the majority of the accompanying dialogue; offer good market and real estate practices advice.

The term Realtor® is generic to most consumers but are all real estate agents Realtors®?

Nash: No and the National Association of Realtors® (NAR) is diligent on protecting it's status as an registered collective membership mark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION of REALTORS® and subscribes to its strict Code of Ethics. NAR has approximately 1.1 million members, while industry sources state there are about an additional 1.4 million real estate agents not members of NAR.

What housing style will be hot in five years?

Nash: The ranch. As the boomers age they'll go from the two-story "I've arrived" colonial to the "I've retired" ranch. Five years ago ranch homes were not that popular and languished on the market in some areas. This last year several clients looking towards retirement and downsizing have asked to see only ranch homes.

Why did you write your fourth real estate book "1001 Tips for Buying and Selling a Home"?

Nash: I wanted to focus on informing the consumer to understand the questions to ask the other participants in their next real estate transaction. I ask questions like, "What is dual agency?" and "Are you being served if your agent is a dual agent?" I explain the back end of the real estate business, which is important if you as the consumer want to manage the front end of it, i.e. your transaction.

Why is 1001 Tips different from other "how-to" real estate books?

Nash: Early on my publisher wanted the book real simple. Its style is numbered tips with an explanation in bullet-points. Editorially light, but not real estate light. The reader can pick it up and put it down and grasp each tip without having to read four additional paragraphs. Plus I've been through many transactions as a real estate broker and understand what the buyer or seller needs to know in their transaction before they walk out of closing or escrow. With home prices today, consumers should demand to know.

Is location, location, location a cliché in real estate today?

Nash: Location, price, risk.

Friday 5 April 2013

Real Estate Agent Courses

Online real estate courses are offered to potential and licensed real estate agents, real estate brokers, real estate appraisers and real estate investors. The online schools offer a wide range of services to their students, which include helping the students pass the licensing exams for each field. Different courses are offered to those who wish to become agents, brokers, appraisers and investors as each has its own specific areas of study.

Courses for Real Estate Agents

The major areas of study that the courses for real estate agents include License Laws, Real Estate Contracts and Law, Escrow, Finance, and the Principles and Practices of Real Estate Math. These courses are often delivered through various software, CDs and virtual tutorials that the online schools offer their students. These courses help the students have access to the most up to date state laws with regard to real estate in the areas where they wish to practice their profession and the most up to date techniques and skills that can help them help their future clients. The students also take exams on these modules as to assess their understanding of the different areas of their study.

Review for licensing exams and license renewal

In addition to the modules that these courses offer, one important service that these online schools provide their students are the reviews that the students can take to help them prepare for the State Real Estate Exams that they will take to become accredited agents. These reviews are often given to the students in the form of practice exams and supplementary reading that can help the student prepare for the exam.

Apart from offering their services to people who wish to become agents, courses are also offered to licensed real estate agents who need to renew their real estate agent licenses. Online real estate courses for agents provide high-quality, effective, and convenient classes to future realty agents, that not only give them the most up to date information on real estate but also the best preparation for the State Real Estate Exams.

Wednesday 3 April 2013

Commercial Real Estate Agents

Let's face it - you cannot intelligently buy commercial real estate properties without the help of an expert. Hiring a commercial real estate agent is your best bet against losing thousands of dollars you'll likely spend, when you make costly mistakes or miss out on solid, commercial real estate investing opportunities. That is why finding and hiring a commercial real estate agent should be your first and most crucial step - it can make or break your commercial real estate venture.

Benefits of hiring commercial real estate agents

Professional commercial real estate agents or broker companies give you access to the best commercial real estate information available. They provide you with information about the latest sales price data, vacancy and absorption rates and comparative tax and labor costs to help you make informed decisions.

Experienced commercial real estate brokers can also help explain to you the present market lease trends, the current demographics, and they will give you a straightforward competitive analysis of different commercial properties that fit your purpose and budget. Professional commercial real estate agents or broker companies give you all this information so that you can anticipate opportunities, gain a competitive advantage and implement the best possible real estate approach.

If you plan to build commercial real estate, an agent can help you determine the best location using scientific local market data and a keen knowledge of the economic trends that affect the commercial real estate market. These agents are specially trained to handle very large transactions - millions upon millions of dollars. Their purpose is to find investments that will not only increase in value, but also give the investor a good revenue stream.

Never try to invest in commercial real estate property without consulting a commercial real estate agent. He or she will have the right training to impart helpful research, advisory and transaction services to you so that your commercial real estate venture goes smoothly.