Real Estate Daily Digest

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Keep in mind the following:

• Inspect every nook and cranny of the apartment. Are all features in good working condition such as sinks and drainage? Are all systems “go” like plumbing, electrical, heating and cooling systems?
• Be concerned about the age of the building itself, pipes and electrical wires because it could mean safety and convenience issues when you actually move into it.
• Are pests present in the building? if so, what kind and how severe is the problem? Has something been done about it? Is there a weekly/ monthly fumigation being done to the building?
• Determine if you can bring all your stuff when you transfer by checking the actual storage/closet space available. Is the size of your furniture just right or is too big for the floor area? If you think bringing measuring devices will help you, then by all means do so.
• Check the security of the place. Are security guards available 24 hours? How do visitors get in and out of the building? Is there a fire alarm? a sprinkler system?

Some people prefer to build their own home instead of buying an existing one. This way, the home is built to your exact specifications and wants. It will be more demanding and time-consuming, but emotionally it may be more satisfying. It may cost you more than you bargained for, though, especially if you’re not well-prepared. To minimize costs, make sure to plan your budget and determine exactly how much you can afford to spend. Search for the best team who can work with you. Start by asking for referrals from friends who built their own houses. Next, choose the house design that meets your needs and your budget. You may need to hire an architect for this, or choose using stock plans from a catalog. Changes and modifications should be discussed with the builder or designer, as well as the corresponding cost. Lastly, be sure to get a contract from the builder or contractor that will describe the project in detail, the project estimates and bill of materials, and the contractor’s fees and responsibilities.

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Your role in the process is an active role, not a passive one. You should avoid the attorney who is content with simply telling you what to do, and then throwing together some documents to accomplish it. That is the attorney’s plan – not yours.

In summary, if you’re working with the right estate planning attorney, you should plan on being involved in three distinct steps:

1. Develop a plan with counseling-oriented (rather than document-oriented) professionals.
2. Commit you and your family to an ongoing maintenance and education program.
3. Assure that your wisdom is passed along with your wealth.
As you consider those you love, and those material things that you’ll someday leave behind, only a properly designed and implemented estate plan can ensure that your goals for those loved ones are accomplished.

Many estate plans in America don’t work. They often consist of fill-in-the-blank documents, delivered in a one-time transaction, and never updated. If that’s all an attorney can offer, that’s not the right attorney for you. Choose an attorney that is counseling-oriented, values-based, and as strong on relationships as he or she is on the law.

Every industry has it own terminology and real estate is no different. Though we may not be an expert in real estate dealings it is good to be familiar with the common terminology used in the industry.

AMORTIZATION
A process of gradually paying off a debt by making equal periodic payments of principal and interest on a loan at equal intervals of time. Eg. ($xx,xxx.00 per month for X years.)

APPRAISAL
An estimate of a property’s valuation by an appraiser.

ASSESSED VALUE
A value placed on a property by a public officer (assessor) or a board as a basis for property taxes.

ASSUMABLE MORTGAGE
A mortgage that is transferred to the buyer who then becomes personally liable for the terms and conditions including payments.

CLOSING
The actual transfer of title for money or other consideration. This is the day that parties actually consummate a deal.

CONVENTIONAL LOAN
A loan not insured or guaranteed by a government.

DEED
A written instrument that, when executed and delivered, conveys title to or an interest in real estate.

DOWN PAYMENT
The amount of cash that a purchaser puts down to buy property.

EQUITY
The value of a property over and above any mortgage indebtedness.

LIEN
A right given by law to certain creditors to have their debt paid out of the property of a defaulting debtor.

LOAN PROCESSING FEE
A flat fee charged by lenders for administration of the loan process. Some banks waive this fee.

MARKET VALUE
The actual value of property at a specific time. Eg. (What your house would sell for today if you were to decide to sell.)

MORTGAGE
A pledge of real estate as security for the payment of a debt. A mortgage is a recorded document that tells the lender that the borrower pledged their real estate as collateral for a loan.

PRINCIPAL
The amount of money that a borrower owes on a loan at a given time.

TITLE
Evidence of ownership.

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If you want to live in your own home, consider renting instead of buying your own real estate. Renting is cheaper in the short term because when you acquire property outright, you would have to shell out cash or take a long-term loan.

Trends from the past several decades indicate that the housing market slumps every 10 to 15 years. Even when home prices rise from 4.5%, your income would still appreciate at 4% every year for a decade before you would save more by owning your house than renting it.

There are also a lot of expenses associated with owning a house, such as real estate taxes, transfer taxes, repairs, and the like but these do not build equity. Renting is more favorable not only because it is more inexpensive in the short term, but also because it saves you trouble, offers you flexibility and may be a stable decision when just starting out.

One thing when trying to sell your house for a higher value: make sure it’s vacant. If there are tenants or people living in your home at the time buyers would like to take a look, they might get turned off and not want to continue. Or perhaps the current tenants or resident might not want people intruding in their space.

Mind the details. A little conspicuous spot anywhere in your house will prompt potential buyers to haggle down and eventually reduce the price tag. That is why you should see to it that there are no ugly things that will do bad to your home’s image.

Fix your home. Inspect around for things that requires your attention. If the house needs repairing, the buyer will ask you to lower down the price, as he would have to pay for these repairs himself.

Remodel and renovate. Update the kitchen and the bathrooms because these are important factors that influence the buyer. However don’t spend more money than what you could get back from the sale.

Do you want to sell your house for a higher price? You can! The value of your house is subjective and this can be influenced by a lot of aspects like the features, condition and location of your home. Also, comparing your house with another will also influence the buyers’ decision. Because of this, there are actions that you could take to increase the chances that your house will be bought at a higher price.

For instance, it’s essential that before prospective buyers visit, do give your house a make-over: fresh paint, carpeting, landscaping and some flowers will make your house appear to have higher value.

You can also make you propery look bigger. The actual size of your house will matter less than how big it will appear. Remove clutter from within your home, and also outside. Thes don’t only take up space, they also make space appear smaller than it actually is.

You can always up the ante with just a few fixes!

An agent’s work isn’t all that difficult: they advertise, bring in the real estate attorney, make some calls, stay at your home just in case anyone wants to buy it and show the clients around the house. By doing these yourself, you would have more control over what happens during transactions. Also, you would better relate to your buyers because you know more details about your house than an agent would. You would also be the one to set the price of your home because the agent might decrease it in order to sell the house faster. So sell your home because you can and let the agent find a job elsewhere.

Think you can sell your home without the help of a real estate agent? Sure you can! Even though you don’t have experience, you could gain valuable guidance that is easy to understand and apply from the internet. You could also advertise and sell your home online. But most importantly, you could save a lot of money that would go to your agent’s fee. In fact, you would save about 6% on costs so if you have a $400,000 home, you would save almost $240,000! Selling your home is easy; just remember to hire a real estate attorney to take care of the paperwork.

Buying your dream home is made easier by the wonderful technology of the internet. Now you can visit neighborhoods, choose houses, inspect yards and even peek inside the rooms all at the comfort of your laptop or pc. Check out sites that deal with real estate like DotHomes, Trulia.com, Realtor.com and Zillow.com. If you are looking for homes sold independently, check out sites that are not agent-related like Craigslist. Also, check out blogs that discuss real estate, because blogs are more up-to-date on real-time happenings on the real estate industry. If you have found houses that you fancy, bookmark these sites so that you can revisit them whenever you want.