Some Useful Tips for First Time Home Buyers

Writen by B Shelton

Many first time home buyers out there end up bankrupt because of an unrealistic way of looking at their capability to pay for their investment. So, when you are one of those first time home buyers, it is wise to read a lot and take heed of wise counsel so that you don’t get caught up in the cold midstream. The first thing that a streetwise financial adviser would give you would be that you should make sure what you are going to buy is within your capability to pay whether in full up front or by installment through time.

There is nothing more pleasurable than to purchase, amortize and finally own a home that agrees with your lifestyle, financially and aesthetically. You should not “over buy.” This means you should not purchase a house that’s too big or too grand or too posh for your means to pay for. That’d be an overkill, especially if you are a member of the mid range or lower income bracket. Knowing that institutionalized professional lenders, like the banks or real estate brokers, could pad the purchase cost with exorbitant hidden charges that could bloat the price in the long run, it should be your last option to go to these institutions.

When you have found the house you’d want to really cherish and nurture and call your own, and you find it’s really not too big or too expensive it’s just that you are short of cash, then it’s time to strike a bargain directly with the owner first, and inquire about the famous owner financed arrangement. If you are lucky, the owner just might allow you to just pay the down payment and then pay the balance on an installment basis.

The premise here is that the owner does not have to follow a rigid schedule of payment and hide service charges that could unnecessarily bloat the loaned amount but there is no law that says he could not touch the ceiling in terms of government allowed interest on the balance of the loan; the owner also does not need to pay the government imposed taxes until the sale is closed (meaning the buyer has paid up the last installment for the property in question).

These are only a few of the useful tips for first time home buyers. There are more to reckon with out there, and it is wise for first time home buyers to be counseled into educating themselves first before plunging head on into an investment as big as buying a property that is going to be the first home of your very own.

Brian Shelton makes home buying in the Dallas easy! Visit http://www.StopRentingDFW.com/

Michigan Real Estate A Little of Everything

Writen by Raynor James

With lakes, forest, farmland, college towns and big cities, Michigan has a little of everything. Fortunately, Michigan real estate prices are on the low end.

Michigan

Michigan is a state of great beauty if the outdoors is your thing. The state borders no less than four of the Great Lakes and has thousands of smaller lakes within its border. Yes, thousands. With all this water come forest and a bevy of outdoor activities. If you prefer the city life, Detroit is in a renaissance. For a taste of the college life, Ann Arbor is the home of the University of Michigan.

Ann Arbor

Home to the University of Michigan, Ann Arbor is a great college town. With a population of roughly 100,000, it is actually a small city but can grow during college football season. The football stadium holds over 100,000, and people from all over the state make a weekend of the games. With the college atmosphere, Ann Arbor is full of interesting little shops, cafes and has an active nightlife. If you’re considering living in a college town, Ann Arbor should be on the top of your list.

Detroit

If ever there was a city that took a beating in the press, it is Detroit. Criticized for an out of control crime problem, the city definitely deserved some criticism in the past. These days, however, Detroit is in the process of turning a new leaf. Over a BILLION dollars has spent renovating the downtown area and crime statistics are down significantly. For comparison purposes, Atlanta and Washington, D.C., have much higher crime rates. The rebirth of Detroit is an ongoing process, so don’t hesitate to give it a look. It may be an opportunity to get in on the bottom floor.

Michigan Real Estate

Michigan real estate prices are surprisingly cheap. A single family home in Detroit will set you back roughly $280,000, while the same home in Ann Arbor is $345,000. On average, the prices in Ann Arbor are the highest in the state.

With such reasonable prices, one wouldn’t really expect to see an exciting appreciate rate in Michigan. For 2005, Michigan real estate appreciated at a miserly rate of a little less than 5 percent.

Raynor James is with the FSBO site FSBOAmerica.org homes for sale by owner. Visit our home buying page to view and buy Michigan real estate.

How To Avoid Foreclosure

Writen by Greg Picone

In recent years there have been numerous factors that have led to record breaking foreclosures in many states. Some of the contributing factors have been unscrupulous lending practices, flat markets, and employment rates; but also uneducated or undisciplined choices by homeowners have played a large part.

We are going to briefly discuss some things that can be done to protect against finding yourself in this position, but also what to do if you or someone you know is already facing foreclosure.

First it’s important to understand that foreclosure processes are a little different from state to state, so some changes may need to be applied to this information for your state. However, foreclosure generally works as follows:

At 90 days late the lender notifies its attorney to begin foreclosure.

Attorney files appropriate document with county

A sale date is set roughly 2 months out (depends on state)

House gets sold at auction (actual foreclosure)

Homeowner has right to redeem for state specific period

Prevent Foreclosure before it ever starts.

A common mistake that gets people into a position to be foreclosed on is pulling out their equity to be used for consumer purchases (buying stuff!) No matter how good the interest rate you’ll get on the line of credit or refinanced money, if you don’t think you’ll use it wisely, don’t touch it.

Another common mistake is paying too much for the house to begin with, especially in a flat or slow market with little appreciation. Even in a hotter market, appreciation should be considered gravya bonus IF it happens, NOT a strategy. Buy the house right, to begin with – then don’t tap the equity for silly reasons.

It’s a good idea to keep a minimum of 3 total mortgage payments in savings in case you run into trouble (temporary loss of income, etc.). This way even if you do have a set back, you won’t even have mortgage late pays on you credit. If discipline is tough for you, create a separate bank account just for this. Out of site out of mind.

If you’re already late on payments:

Communicate with your lender. Express your hardship to them right away and that you are interested in getting it resolved. They will be willing to work with you at this stage if you are open. Communicate!

Cut back on any unnecessary expenses you can. If you have to talk to other creditors and explain that you will need to work out a different payment plan with them, do it.

Ask your lender about a forbearance agreement. This is basically when your lender agrees to take the arrears amount and divide it by 6 months or 12 months, then tack that amount onto your payments. Note: your payments will go UP in this situation, so your financial situation must have improvement. WARNING: most people don’t realist that during a forbearance agreement, you are still racking up late payments until everything is caught up. This can seriously damage your credit.

In very serious cases your lender may consider agreeing to a loan modification. This is when you and your lender restructure your existing loan, in essence replacing it with a new one. They will require specific documentation to do this. Communicate.

When you can not keep your house and must sell.

If your financial situation has not changed and you expect it to remain that way for quite awhile, it will probably be in your best interest to sell. In this situation time is of the essence.

Here you basically have 3 options:

• Sell the house yourself (FSBO)
• List it with a real estate agent
• Work with an investor

  We really don’t recommend trying to sell yourself in these situations. Bar none, your first objective is to avoid foreclosure, and the foreclosure clock runs fast most everywhere.

  If you choose to work with an agent, make certain that they understand your situation. We suggest you insist on being able to cancel your listing agreement at any time and not being locked into a listing for 3 6 months (3 6 months you don’t have before foreclosure!) When people come to us for help in this situation, too often there’s little time left because they chose to list the house with an agent, it didn’t sell, and now the sale date is right around the corner. It’s important to understand that your listing is advertising for that agent not necessarily to attract a buyer for YOUR house. This is not right or wrong, it just is. If you owe close to what your house is worth, we suggest you think carefully before listing it.

  If you choose to work with an investor, again, make certain that they are very knowledgeable with pre foreclosure. This can be a very good situation for you, as you can get everything resolved immediately without waiting on a buyer. If you owe the property’s value, it’s important that the investor understand how to deal with your lender as they may need to negotiate with them for the purchase of the house. Again, you want to work with someone who is knowledgeable and can produce results in this tight time frame. If this person/company seems unsure of themselves, move on. Just because someone has the title of investor or agent or even lawyer, does not automatically mean they can properly help you.

  At this stage whatever you do, don’t become complacent; this is the #1 problem that can jeopardize your financial future. You can avoid foreclosure, but you must be proactive.

  Greg Picone is the president of Ideal Homes,LLC, a company that specializes in helping folks get foreclosure dismissed, with an emphasis on situations where there is no real equity. Please visit their site http://www.solvedquick.com

Check The Appraisal Carefully To Avoid Being A Fraud Victim

Writen by Donna Robinson

There is a type of investor fraud in which an unsuspecting Real Estate investor believes he is buying a property worth a certain amount, when in reality the property is worth much less. This places the investor in a hopelessly upside down situation, owing more money than the property will ever be worth.

The primary way that this type of scheme is enabled is by the use of a “bogus” appraisal that over inflates the value of the property. Once the investor has closed the deal, there is virtually nothing he or she can do to avoid the consequences of having put a 300% Loan To Value mortgage on an investment property.

This basically means that the investor will owe too much to be able to cash flow the property as a rental, and there’s no possible way that he or she will ever sell the property for enough to cover the mortgage payoff. This essentially leaves one with a bankruptcy/foreclosure, “take your pick” financial situation.

Investors who realize they have bought a property that will never be worth what they owe on it, may continue to make payments for months or even years in order to preserve their excellent credit rating. However, once the damage is done, this is essentially throwing good money after bad. Given that this is one of the worst scenarios an investor could ever experience, it behooves each one of us to take the necessary time to carefully examine the appraisal for the property that we are about to purchase, BEFORE we purchase it.

Since this type of fraud is dependent upon an over inflated appraised value, an appraisal with incorrect or deliberately misleading market information will be necessary to perpetrate this fraud. Therefore if a prudent investor is careful to take the time to examine the appraisal prior to closing, or better yet, have their own appraiser do an independent appraisal, one could avoid this scenario completely. In a nutshell, it is potential investing suicide to accept an appraisal at face value without verifying for yourself the information in that appraisal.

When you just don’t know the market, it would be an excellent idea to simply pay the $250 or $300 necessary to have your own independent appraisal done.You do not want to take anyone else’s word for the appraised value of a property. YOU are going to guarantee the loan, so you are the one who must make sure you are not being misled into paying too much.

The vast majority of investor fraud and loan fraud would be avoided if someone took the time to verify the information in the appraisal.

The greater part of a typical appraisal will deal with what are called “compable properties”. These properties are supposed to be very similar in style, quality, and size, to the property which is the subject of the appraisal. The concept of Compable Market Analysis” or CMA, means simply that one property in a given neighborhood should be worth approximately the same amount as other similar properties in the same neighborhood.

A valid appraisal that is a reasonable and accurate estimation of market value would only use similar properties that are within a very small radius from the subject property being evaluated. The official rule is within one mile of the subject property. But in Atlanta, one mile can be the difference between a $50,000 and $500,000 ARV. So, I prefer to see comparables that are located within the very same neighborhood. One mile can make a very big difference.

The question is, “who is responsible for generating the appraisal being provided as an estimate of value?” In typical transaction between a home seller and a home buyer it is the buyers lender who orders the appraisal as part of the process of underwriting the loan. But, in most investor type transactions, the seller may provide an appraisal. When you are the buyer, you should always plan to verify any appraisal provided to you by the seller.

Many fraudulent schemes perpetrated against innocent real estate investors involve a seller who got an appraisal that was over inflated simply by paying an appraiser and asking him to provide a specific value, in order to “make the numbers look good”. Therefore the prudent investor buyer does not want to accept the appraisal provided by the seller at face value. The appraisal should be verified or you should obtain your own independent appraisal prior to closing.

In extreme cases of well organized fraud, it is possible for the seller, the seller’s agent, the closing attorney, the appraiser and even the lender to be involved in trying to lure a buyer into a bad deal.

Usually in this type scenario, the investor buyer is offered a “full service” type arrangement, in which everything is taken care of for them. One should always careful of any deal in which “everything is taken care of for you”. The single most important piece of due diligence on any property is to verify the real market value before you buy. ***

Donna Robinson is a real estate investor, author, and consultant located in Atlanta Georgia. You may read more of her articles on her website at http://www.RealEstateInvestorHelp.com or you may contact her by email at drobinson@reihelp.com or call 404 542 9903.

Buying A Condo In Chula Vista California

Writen by Virginia Zignego

What are condominiums? A condominium is not a specific kind of home, but rather a specific kind of ownership. Condominiums can be townhouses, high rise flats, or even detached houses. Instead of owning a piece of land outright, as with freehold ownership, condo owners own a space, called a unit, in the condo structure. Each unit is defined by the Condominium Declaration, which is a legal document that describes the condo development in detail and allocates a strictly defined space to each owner. This space usually includes the interiors of the unit (flat or townhouse), down to the drywall or plaster, and in some cases includes public areas like a foyer, interior hallways, party rooms, and gym facilities.

Who runs the condominium development? Every condo development is run by a board of directors composed of elected condo owners. The board is responsible for maintaining condo development. The condo corporation is required by law to establish and maintain a reserve fund, which is a fund set aside for major scheduled maintenance or unexpected repairs. The corporation also collects the monthly common fees from owners to cover the costs of property taxes and insurance.

How is condominium and home ownership different? The main difference is that condo owners must pay monthly common fees, which cover the cost of insuring and maintaining the condo development. Common fees are in addition to paying the costs of financing the condo purchase and vary with the percentage of the total developed space occupied by an owner’s unit. In a very simple development with above ground parking, no common party rooms or guest suites, and basic gym facilities, common fees may be minimal. However, in a well appointed (think underground, heated parking areas) or older development, common fees will be higher, as will the maintenance fees they cover.

Who do condominiums appeal to? Condos appeal to a wide variety of homeowners busy young professionals who don’t have the time to cut the lawn, tend a garden or shovel a driveway, people who travel frequently and can’t always attend to the demands of a house, and retired people who may not be able to physically attend to a large home.

What determines the value of condominiums? As with any other real estate, the value is ultimately determined by the buyer. These are some factors that will affect real estate value: location, exterior and interior structure, location within the building if it’s a multi unit structure, view and closeness to the top floor, and parking.

What are the most important elements to look at when buying a condo? First, consider whether you will be really happy living in a condo, and particularly in the condo in question. Spend some time in the building, walk around the building, visit local businesses and hangouts, and walk around the neighborhood. Make sure you receive and review condo documents. Get copies of the minutes of board meetings so you can see what the issues are and if common fees will be increasing. Talk to some residents to get their opinion on the management and lifestyle.

Inside Chula Vista Real Estate is a network entirely devoted to real estate information. The entire Inside Real Estate network has more than 100,000 pages of real estate for cities allover the United States. Inside Real Estate covers several topics from the basic “how to’s” of real estate to city specific real estate information.

Making Dreams A Reality Through Real Estate

Writen by Paul Pratt

The best reason for investing in real estate is that it actually works! Real estate investing proves that the American dream is still very much alive. What other avenue can an individual begin in virtually any circumstance in life and build an empire of wealth in a relatively short period of time? Real estate investing does not discriminate against education levels, class, age or region.

You do not need a college degree to understand the fundamentals of real estate investing. You do not need to have a high paying job or already be wealthy to get started. It can create enormous amounts of wealth for any person who is simply willing to follow the system. There is no need to re invent the wheel; our system has been proven for any investor in any circumstance or economic condition. You’ve heard similar claims so many times now that they almost sound clich

Condominiums Disadvantages of Ownership

Writen by Raynor James

Purchasing a new residence involves many issues and condos may be on your radar. Before you buy, keep in mind there are disadvantages to condominium ownership.

Condominiums – Disadvantages

Condominiums are simply a collection of units in a structure or structures. All property on the interior of the unit is yours with few limitations. Everything outside of the unit, however, is considered to be in the common areas and subject to administration by the homeowners association for condominium communities. As with any bureaucracy, this can lead to problems.

1. Parking – One of the biggest pet peeves with condominiums is parking. While this may sound petty, it becomes a big issue over time if a particular situation occurs. One would think a condominium comes with assigned parking. In many developments, however, this simply isn’t the case. Instead, parking is on a first come, first serve basis. Over time, this situation can become extremely aggravating. With guests in the neighborhood, you may eventually find it difficult to getting parking!

2. Restriction – Condominiums are all about uniformity. If you prefer to express your individuality, the rules of a condominium may drive you insane. Since people live close to each other in condos, there has to be a number of rules to keep the peace. Many condominium associations, however, seem to go overboard with rules and one can often feel like a prisoner. You may be restricted from having pets, particular types of material in your units, renting to others, making noise outside during certain times and so on. Before taking the plunge on a condominium unit, you absolutely must read the rules and regulations for the association.

3. Association Fees – Homeowners’ associations need money to keep the gardening up and so on. As a unit owner, you are responsible for paying monthly homeowners’ association fees. Before taking the plunge, you need to make sure you understand the current fees. You should also look back in time to see how much the fee has risen over time. Paying an extra hundred bucks or so a month probably will not kill you, but what if the monthly fee is five hundred dollars?

The decision to purchase a condominium can be a complex one. While there are distinct advantages, the devil is in the details. Make sure you understand what you are getting into before taking the plunge.

Raynor James is with the FSBO site http://www.fsboamerica.org FSBO homes for sale by owner. Visit our home buying page http://www.fsboamerica.org/buyer.cfm to view and buy homes, houses, condos, land and real estate.

Online Property Auction and Its Benefits

Writen by Ron Victor

Auction is the process of selling and buying products by offering or taking bids and selling the same to the highest bidder. In short, auction is the open sale of a property or service.

Traditional auctioneering methods happened in public forums calling on people who were interested in buying the particular item for sale. The seller will have a particular amount in mind and when this is met in the auction, he sells the item to that particular bidder. Now, auction is taking up new forms with the use of increased technology. The birth of online auction is thus, a sudden process.

Online auctions happen on the internet. Participants in the auction process will bid for the products or services over the internet. This gives out a two fold advantage, advantage for the seller and also for the buyer. Online auctions open up a favorable condition for the buyer and it gives an opportunity to search for his needs and select the best. For the seller, it gives a chance to open up sales channels and display his new products.

Online auction has become a big business today. Now millions of people around the world are making money and buying products through internet auction methods.

How online auctions function

• Registering

This is the first step in participating in online auction. This simple process requires people who are above 18 to participate in the auction. While registering you may have to agree with the terms and conditions of the online auction methods, be it service or product. You can also change your preferences in most auction site. Once you are a member of the auction site, you are eligible to participate in the auction process. You can also terminate your agreement when it is desirable and also with respect to the signed agreement.

Most of the sites will ensure privacy in all their dealings and your information will be kept secret.

• Auction fee

Some of the auction sites are free. But there are also others who charge you. Know about this beforehand and also whether they have any hidden rates or prices. The fees will be usually less in many sites.

• Know the rules

You need to know about the rules prior to participating in auction. If you are not aware of the rules and regulations, you might be put in difficulties. So, it is always better you know the rules and then go with participating in the auction process.

The advantages of the online auction methods are many.

1. Feasibility

Internet is an easy medium. Rather than going to the place and attending the auction methods, it is always better you sit at home and do the bargain. There are no extra costs involved and no wastage of time too.

2. Better prices

If you are a seller, you get better prices through auction. You will get to know about other people, understand their interests and also compare the market prices with the internet rates. You will definitely get better prices in auction.

3. Quick sales

Sales happen fast as everybody interacts over the internet and the selling or buying happens so fast and easy. There will be no dragging of time at all as in forums because people from different streams can easily interact through the internet.

4. List more products

Internet enables to list more products. You can also search for the different characteristics of different products and assess whether it suits you or not. Unlimited choices are one of the merits of online auctioneering.

Buyers should take things seriously when the auction happens. It is better not to start with a higher price always and gradually make it high. Do not drag time when it is time for you to pay. Paying at the right time shows your professionalism. Sellers also should take up things seriously and answer all the questions correctly and truthfully. Do not include lengthy descriptions; rather make it concise and crisp.

Despite the advantages of online auction, there are also some demerits attached to it in the form of frauds. You should have a keen sense of determining the fraud and do not fall in to a trap because of carelessness.

Misrepresenting
This often happens in fraud online auctions. Merchandise will misrepresent them and try to trap people. Things will be overstated like the amount, and they play hidden tricks.

Failure to pay
Once the auction is over, some people will not pay and it will be later on noticed that they are frauds. You might also lose money if they had charged fees in the name of registration. There are also people who make you pay first and do not ship products. These things should be taken care of before you engage in the auction process.

Internet fencing
This is the process of selling goods that are stolen through auction. You never know they are stolen until you are caught.

Credit card fraud
This has become a common theft in the internet world. Credit card theft is also used in auction by some frauds and they act very honest and diligent. Here stolen credit cards are used to ship products and you pay for the same. Only when you are caught by the police will you be able to know about the trap.

Internet auction is thriving up in the market. Like any other auction methods, internet auction has its own protocol. It is necessary that both the seller and the buyer should follow these etiquettes to keep up the auction industry grow up and make it reliable.

Ron Victor is a SEO copywriter for propertyauctionzone.com He written many articles in various topics.

For more information visit http://www.propertyauctionzone.com
Contact him at ron.seocopywriter@gmail.com

The Real Estate Market in Hong Kong Today

Writen by Rhiannon Williamson

Now Hong Kong is a Special Administrative Region of China its star is rising as fast as China’s and the entire real estate sector in Hong Kong is benefiting.

The physical geographic restrictions of Hong Kong mean that there is a finite supply of residential and commercial real estate available for sale and rent; and as Hong Kong further strengthens its already robust economic, trade and investment ties with China, the demand for real estate in the region is intensifying.

Competing for space are multinational companies and their massive expatriate employee base, local businesses and local residents, tourists and students. In fact the demand for residential and commercial space in Hong Kong is at its highest today since the glory days pre 1998. Having suffered an acute recession from 1998 until 2003 real estate prices are for sale at deflated costs and are therefore seen as being undervalued which means the real estate market is in a great position right now to grow and expand.

Because demand for real estate in Hong Kong is so intense…

Because Hong Kong’s economy is going from strength to strength…

Because domestic purchasing power is so strong…

And because the real estate market is believed to be currently undervalued the wealth of opportunity for profit in Hong Kong’s property market right now is intense.

Real estate investors from around the world are buying into the projected period of growth and are committing substantial funds to the Hong Kong market. In terms of any restrictions placed on foreign investors there are none in Hong Kongin theory anyone is permitted to purchase property. As with all city based real estate economies property in Hong Kong though currently considered to be undervalued – cannot be regarded as ‘cheap’. However anyone who wishes to get into the market can get mortgages locally in Hong Kong to purchase and can almost guarantee the rental income they will generate if they choose to buy residential or commercial units to let.

The medium term prospects for the real estate market in Hong Kong are good with analysis showing that the number of renovation and new development projects started in recent years is below what is required for the current level of demand. This undersupply will last for at least the next four years according to expert industry analysis. This has resulted in predictions for property price growth of up to 12% annually for at least the next four years, making the real estate market in Hong Kong today a highly attractive prospect.

Rhiannon Williamson writes about real estate investment in established and emerging property markets worldwide. Click here for more information about how to buy investment property in Hong Kong.