Real Estate Tips

7 Selling Mistakes You Don’t Want To Make! by Madan “Raja” Ahluwalia

7 Selling Mistakes You Don’t Want To Make!

Mistake #1 — Pricing Your Property Too High

Every seller obviously wants to get the most money for his or her product. Ironically, the best way to do this is NOT to list your product at an excessively high price! A high listing price will cause some prospective buyers to lose interest before even seeing your property. Also, it may lead other buyers to expect more than what you have to offer. As a result, overpriced properties tend to take an unusually long time to sell, and they end up being sold at a lower price.

Mistake #2 — Mistaking Re-finance Appraisals for the Market Value

Unfortunately, a re-finance appraisal may have been stated at an untruthfully high price. Often, lenders estimate the value of your property to be higher than it actually is in order to encourage re-financing. The market value of your home could actually be lower. Your best bet is to ask your REALTOR® for the most recent information regarding property sales in your community. This will give you an up-to-date and factually accurate estimate of your property value.

Mistake #3 — Forgetting to “Showcase Your Home”

In spite of how frequently this mistake is addressed and how simple it is to avoid, its prevalence is still widespread. When attempting to sell your home to prospective buyers, do not forget to make your home look as pleasant as possible. Make necessary repairs. Clean. Make sure everything functions and looks presentable. A poorly kept home in need of repairs will surely lower the selling price of your property and will even turn away some buyers.

Mistake #4 — Trying to “Hard Sell” While Showing

Buying a house is always an emotional and difficult decision. As a result, you should try to allow prospective buyers to comfortably examine your property. Don’t try haggling or forcefully selling. Instead, be friendly and hospitable. A good idea would be to point out any subtle amenities and be receptive to questions.

Mistake #5 — Trying to Sell to “Looky-Loos”

A prospective buyer who shows interest because of a “for sale” sign he saw may not really be interested in your property. Often buyers who do not come through a REALTOR® are a good 6-9 months away from buying, and they are more interested in seeing what is out there than in actually making a purchase. They may still have to sell their house, or may not be able to afford a house yet. They may still even be unsure as to whether or not they want to relocate.

Your REALTOR® should be able to distinguish realistic potential buyers from mere lookers. REALTOR®s should usually find out a prospective buyer’s savings, credit rating, and purchasing power in general. If your REALTOR® fails to find out this pertinent information, you should do some investigating and questioning on your own. This will help you avoid wasting valuable time marketing towards the wrong people. If you have to do this work yourself, consider finding a new REALTOR®.

Mistake #6 — Not Knowing Your Rights & Responsibilities

It is extremely important that you are well-informed of the details in your real estate contract. Real estate contracts are legally binding documents, and they can often be complex and confusing. Not being aware of the terms in your contract could cost you thousands for repairs and inspections. Know what you are responsible for before signing the contract. Can the property be sold “as is”? How will deed restrictions and local zoning laws affect your transaction? Not knowing the answers to these kinds of questions could end up costing you a considerable amount of money.

Mistake #7 — Limiting the Marketing and Advertising of the Property

Your REALTOR® should employ a wide variety of marketing techniques. Your REALTOR® should also be committed to selling your property; he or she should be available for every phone call from a prospective buyer. Most calls are received, and open houses are scheduled, during business hours, so make sure that your REALTOR® is working on selling your home during these hours. Chances are that you have a job, too, so you may not be able to get in touch with many potential buyers.

(c) Copyright 2005 Madan Ahluwalia. All rights reserved.

Madan “Raja” Ahluwalia is an Attorney at Law and Realtor. Raja offer his real estate clients a counseling-based approach to home buying, where the client’s long-term goals are the most important consideration and outweigh the benefits of any single sale. Raja possesses a thorough understanding of the real estate market and trends, based on years of involvement in real estate. He provides expert insights and helps clients understand timing, pricing and financing issues. Contact Raja at raja@kw.com or 650.430.4023.

USED THIS BIO

Madan “Raja” Ahluwalia is an Attorney at Law & Realtor. Raja offers his clients a counseling-based approach to home buying, where the client’s long-term goals are the most important consideration. He possesses a thorough understanding of the market and trends, based on years of involvement in real estate. He provides expert insights and helps clients understand timing, pricing and financing issues. Contact Raja at raja@kw.com or 650.430.4023.

The Listing Agent’s Role in Marketing Your Home
Advertising to the “Public”
Every home seller likes to be assured that their listing agent and or their real estate company will run ads featuring their home. Newspaper ads range from color photo ads to lots of listings reflected on a page with primarily only copy. Classified ads featuring your home are another tool. Ads may also appear in local real estate magazines and on the Internet (ideally on several sites).
Of course, Realtors and their brokerages will run ads featuring your house, but not necessarily for the reasons the seller expects. The primary motivation for advertising is to make the telephone ring. Advertising creates phone calls and some of those callers become clients of the agents answering these calls. This builds up a pool of homebuyers looking for property in general. Multiply this by all the agents and companies who also advertise homes, and there is a large pool of homebuyers in the market at any given time – all of whom have contacted a Realtor. The agents representing those homebuyers know about your home once it is listed in the Multiple Listing Service, has been on broker preview, and because your agent is also marketing directly to these agents.
Through, the Multiple Listing Service (MLS), the agents match up their clients (computer prospecting), with available homes, one of which may be yours. Realtors then show the selected homes to their clients, who ideally end up buying one. Although, ads do not typically sell your house directly, they create a pool of clients for Realtors; and one of these existing clients typically purchases your home.
Behind the “Advertising Scene”
When an Agent or their brokerage, advertise homes they have for sale, there is more than one objective. Certainly, the real estate office wants to generate phone calls and sell houses, but the advertising also shows other homeowners how effectively they market their listings. This impresses not only the seller, but also others who may be thinking of selling their home.
The advertising brings in more listings, which generate more ad calls, which produces more buyers…. Cross selling is often how your property is sold; someone calls on one home and the agent on the line tells that buyer about yours. About 5% of the time, you and your agent will get “lucky”; and someone calling on your house may actually end up buying it.
Neighborhood Announcements
When you first list your home many agents send “announcements” to all of the other houses in your neighborhood. This is typically done in the form of postcards, or letters. This too is has a double purpose: your neighbors might have friends who are looking to buy a house (but they probably would notice the for sale sign, anyway) and of course this hopefully impresses other area homeowners that might be contemplating a sale.
Open Houses
An open house can be also be helpful, but not for the reasons most homeowners think. Just like with advertising, most visitors rarely buy the house they come to look at. They usually do not even know the price of your home when they stop by– they probably just followed an “Open House” sign to your door. Often, the exterior of the home appealed to them, because the home is over their budget.
An open house reminds your neighbors that your home is for sale, and offers them an opportunity to “take a look.” Hopefully your neighbors will tell friends or family members about your house, creating “word of mouth” advertising.
However, there are other reasons for conducting open houses, too. Listing agents who “farm” a particular neighborhood use them as an opportunity to meet with other local homeowners who will someday be selling their home. Most of us, Agents hope to also list your neighbor’s homes in now or in the future.
Advertising to Realtors
Realtors are typically more comfortable showing clients homes that they are familiar with. The Broker’s Open House is a very effective means to quickly get a large number of Realtors into your front door. These realtors are hopefully working with prequalified buyers that are looking to buy a home similar to yours. To maximize attendance, veteran Listing Agents might provide refreshments or a raffle of some sort.
Property Brochure Distribution is another way that your Listing Agent may be marketing your home to other Realtors. These services hand deliver your property brochure to each individual agent in a specific geographic area. Other top Realtors employ an Internet program to email listing cards to the top local selling agents in your community.
Because Realtors are the ones with the “buyer pool”, It is much more productive and beneficial when your listing agent directs most of his or her marketing efforts toward other agents. It is an easy mistake to measure your agent’s effectiveness solely by counting the number of newspaper and magazine ads featuring your property. “Behind the scenes” marketing is the most effective and most difficult for the seller to measure.

About the Author

Phyllis Harb, a California native is a Realtor/Marketing Specialist at RE/Max Tri City in La Canada, California. RE/MAX Tri-City offers additional offices in La Crescenta, Glendale, Los Feliz and Pasadena. Harb has been assisting Los Angeles County home sellers and buyers since 1989 and additionally offers over 10 years experience in real estate lending. Harb has an award winning web site @ www.RealtorHarb.com & may also be contacted at 818 790-7325.

THE FORMULA(S) FOR FINANCIAL SUCCESS
(FROM THE OPRAH WINFREY SHOW)

“Money can’t buy you happiness. But it helps you to be
miserable in comfort.”

“Wealth is better than poverty… if only for financial reasons.”
- Woody Allen

“Those who say money can’t buy you happiness,
don’t know where to shop.”
- anon

NTRODUCTION

These thoughts are extracted from Oprah Winfrey’s fine show,
which I watch regularly (enough free advertising for her -
she doesn’t need it!). I’ve written this piece in point form
from notes that I’ve taken - for brevity.

I hope that sharing this information may be helpful to you
along the roadway to financial success…

Craig

I believe that anyone can get out of debt. You should have between 3-6 months salary as a reserve fund on which to live before you start investing. Put into an emergency reserve fund - this should be in savings account, rather than the stock market. Check for the penalties when you need to take it out.
The problem is many people give up if they dont have it.
Have a “Money diet”, like a food diet. It’s the way you CHOOSE to deal with money. See it as a means to an end, rather than an end in itself - it’s just a commodity, a tool to help you meet your personal goals. Most of us are headed for financial trouble; because at least 3/4 of people are not saving nearly enough.

First, FIND OUT HOW MUCH YOU OWE. Do a budget of spending and saving.
Become financially fit - watch how much you are spending. Don’t use life assurance as kids education savings plans - rather use unit trusts (or managed funds).

The biggest mistake most people make is thinking that they do not have enough money left to invest. “You don’t have enough not to.”

PAY YOURSELF FIRST. Send yourself a bill, say 10 of your income each pay day. Make it one that you have to pay first - so you don’t miss it. Write out an invoice to yourself for your own savings account: First should be your own retirement plan. At least 10 - you deserve it. Keep it, but don’t spend it. This amount can be automatically deducted. Doing this is great for kids after getting their first job. They can have their money taken automatically out of a cheque into a savings account.

Wealth, like health and happiness, starts in the mind. The way you start is vital. That’s the way good habits form. It all depends on your underlying beliefs about money.

How to cut your tax bill?:

Unit trusts (or managed funds) are great to grow money quickly and also to build over time. Expect a 10 pa return over a long period.

*
HAVE A LIFE PLAN: A will, adequate insurance, etc. Strive for good financial health. “Don’t forget the trees for the forest.” Your retirement funding should come before your kids education (college). (Don’t know whether I agree with that statement on the Oprah show!). But it is is best to work on both goals at the same time. Make your money work for you. “Money goes where it is treated best.” The stock market is a roller coaster ride - it’s hard to project your financial needs/requirements into the future. “How much are we going to need in the future?”
*

Asset management: Studies show that you need money both in the stock market and Fixed Interest investments. Make it a priority to own your own home - that is a great compulsory savings plan (instead of paying rent).

Consolidate your bills into one loan, if you can get a lower interest loan….but most importantly, don’t spend the savings.

YOU NEED WILLPOWER and DISCIPLINE TO SAVE EFFECTIVELY.
Don’t touch your money, except for dire emergencies.

Pension transfers (or what are termed “roll overs”):

If you leave a company, get the firm to transfer your pension fund directly - this is called a “trustee transfer”. Try to get your employer to match your own contributions.
*

Pick out the area of your life causing the most trouble to you: Most common are:
* entertaining
* eating out
* clothing, and
* kids.
All - then you’ve got some big money problems!

Try to cut back where you can. Look for similar plans to save money: eg medical and insurance. It may be you don’t need that big car, Reebok sneakers for the kids, designer clothes, etc.

Pay yourself on time. Remember we treat our creditors better than we usually treat ourselves. Follow these money management hints and you are sure to be well on the way to financial security and even prosperity.

Good luck*

Craig Lock

* “luck”, as they say, is where preparedness (is there such a word?) meets opportunity.

About the author:
Craig left his “straight/proper/normal” job as an insurance manager to try and write “inspirational” books (crazy fool!). ‘How to Make a Million’: The steps (practical) to achieving your wildest dreams in life: whether it’s making a million dollars, living your “perfect lifestyle”, or making your mark on the world…or perhaps all of them. Craig’s money management books on how to achieve financial success are available at: http://www.bridgeniche.com or contact Craig at clock@paradise.net.nz.

THIS ARTICLE MAY BE FREELY PUBLISHED

Sharing a Few More Thoughts on Goalsetting and Goal Achieving:
The technique of Visualisation.

by Craig Lock

As I mentioned in Part One in controlling our thoughts and
attitudes, visualisation is a great help in setting your personal
goals. Use it as a tool, be persistent like a yappy dog biting at
your ankles and you’ll get there in the end.
American John Kehoe has written extensively on this subject in
various works. He is the one who hibernated in the woods of Canada or Alaska for five years contemplating the mind and talking to the trees. Like Bonnie Prince Charlie talking to the
plants! I should have been a lumberjack instead of a writer; but
then I can’t imagine myself floating down a swollen river and balancing on a log!

I too am writing in virtual hibernation. Perhaps it’s good for
writing by forcing one to focus. Anyway, the creative juices seem
to flow well here in Gisborne, New Zealand. Perhaps its the clean air, as the country has produced some great Kiwi writers.
*
Some more on VISUALISATION…

Work out what your goal is. What you want to become? What sort of
person do you want to be? Picture what changes you want to make
in yourself and in your life…for the better, of course.

Set stepping stones (or sub-goals) as sign posts along the way.
To guide you and ensure that you stay on track. They can be your
short-term or medium term goals, say one month to one year. The
marathon runner doesn’t think of the finish line , but, the lamp
post in the distance…or the next drink spot. Thinking of the
big picture often seems impossible, so it can be very
discouraging. Take small steps… and one at a time. You can get
get loads of satisfaction from taking one step at a time.
Attaining sub goals can help you with a more immediate focus and
it rewards you along the way in your pursuit of the grand plan.
Make daily affirmations to yourself to keep yourself positive and
focussed on the way ahead. (Remember, affirmations and self talk
from Chapter Five). Have written goal checks to ensure that you
are on track - on the right path. These are a good aid in
reassessing your performance and how well you are doing on your
chosen path. I’ve gone so far down my track, if it’s the wrong
one it’s a bit late to turn back. I’ll just visit the soup
kitchens! “What a stuff up”! Seriously (for a change) though,
it’s never too late to change direction; look at South Africa and
apartheid, the fall of Communism, Yugoslavia, Israel and
Palestine… Iraq - what a quagmire, a monumental “stuff-up,
no a disaster. A situation whereby goals set by those in authority
have gone horribly wrong through poor planning and caused untold misery”!
“Without a vision, the people perish.”
- the Bible

Enough of my personal opinions on the world and you’re getting
way too serious, Craig (after all this is a light-hearted zany manuscript)….
but sorry, I couldn’t stop myself!

Set priorities. It is important to have flexible goals; they are
not set in concrete and can be changed as you change and develop.
Remember changing goals in mid stream doesn’t mean losing ground
(or “the plot”). As long as you grow personally, you are making
the most of yourself.

*
Summary:

1. Set big goals

2. Make long range goals

3. Make short term and daily goals

4. Goals should be specific

5. Goals should be realistic

6. Luck is not involved in achieving goals

7. Don’t make goals to please someone else - they are for you
alone.

it’s your life and no one else can live it for you. Listen to
your parent’s advice; but young adults, you make the decision
about the career you want. Not knowing what I wanted to do after
finishing school (and then university), I followed my father into
insurance, not thinking that I would have to spend half my
working/waking life in that occupation, Dumbo! In setting goals
we need to allow for our future growth and development. If you
want to grow, you’ve got to eat your “veggies” and use your
potential to the fullest. Don’t stay a dwarf if you can help it.
Sorry “dwarfies” for that totally politically incorrect
statement. Oops, too late. Put my foot in it again…but it’s too
late to worry. Life is one long journey of self discovery. It is
also a great opportunity for self improvement - to grow day by
day, even though you might have the occasional stumble. As you
can see I’m continually dragging myself up after being beaten by
old ladies (and dwarfs) with their brollies. But if you accept
yourself and are happy just the way you are, that’s fine by me
too.

Finally,
8. Your personal goals are your stepping stones to guide you, to keep you on track with your GRAND VISION for your life. So step back from time to time to evaluate them (and check whether you are still headed in the right direction). Often you’ll be amazed when you look back and see how far you’ve come!

The human mind is like a garden (or a computer).
“Plant the right seed to get the right plant”
- anon

Good positive thoughts get good results. So…

“Keep your mind on what you want and off what you don’t want”
- Napoleon Hill

“You will become as small as your controlling desires; as great
as your dominant aspiration”
- James Allen
*

Now that we’ve defined and set our goals, lets look at ACHIEVING
them by getting and then staying FOCUSSED…

* How to achieve your goals:

There are a number of important factors that make people
successful in achieving their personal goals… and I believe
goalsetting is the key ingredient to personal success. What else
determines whether we will achieve our goals? I think the
following attributes are critical:

* A strong belief in oneself and one’s ability to succeed

* Good self esteem

* Self confidence

* Self discipline

* A burning desire to achieve your pre-set goals

* A sound strategy with a great deal of thought given to PLANNING

* A desire to give something back to society and invest in
people; ie. to make some contribution to your “little patch” of
the world. This leads into the next one…

* Having worthy goals which benefit one self and others

* A winning focus and a positive attitude. This is very very very
important.

* Consistancy and commitment

* The ability to avoid distractions, ie. the ability to FOCUS
(not swearing at ourselves)

* Affirming oneself daily that you are of value to the world

* An ability to take calculated risks

* An ability to learn from your mistakes and to overcome the fear
of making mistakes

* The ability to handle stress well I’m not so “hot” on that
one.

* Taking frequent exercise - because a healthy body keeps the
mind healthy

* Taking time out for relaxation

* Self motivation, and most important of all,

* Personal integrity and a sense of ethics. Who says millionaires
and other successful people lack integrity and rip off gullible people in the street? I for one, definitely don’t believe it. I
think quite a few businessmen may be ruthless, but most of them
have high moral codes of behaviour. But most importantly, they
have the “bucks” to improve people’s lives in the community…as
long as they are not too stingy.

BALANCE:

Remember, it is vital to live a balanced life. So look at your
goals in all areas of your life: material, physical, career,
psychological and most importantly, spiritual. I’m not a
religious person at all#; but I think it’s terribly important to
BELIEVE and have FAITH that things will work out in the future
for you. That BELIEF (either in yourself or in a Higher Being)
will largely determine your attitude…how happy or unhappy your
life will be. God, the Universe, The Creator of Life has a plan
for your life too.

To end off this chapter, here are a few more quotations on taking
a chance or risk in life. I like them, because I’ve taken a few chances in my time (perhaps too many) …maybe you have too.

“The gem cannot be polished without friction, nor man perfected
without trials.”

- so say wise man, Confucius.

“The greatest risk in life is to risk NOTHING…
The person who risks nothing, does nothing,
has nothing, is nothing,
and becomes nothing…”

- Norman Vincent Peale

“Only the person who risks is truly free. A man’s conquest of
himself dwarfs the conquest of Mt. Everest.”
- N.V.Peale, again.

“Be BOLD and unseen forces come to your aid”
- I think it was Brian Tracey (an American motivational
consultant and speaker) who said those words. Very true!

“Whatever you do, or dream you can do, begin it.
Boldness has genius, power and magic in it.”
- Johann Wolfgang Von Goethe, famous German philosopher

Very wise words.

So after all this…

WHAT’S STOPPING YOU STARTING ON ACHIEVING YOUR GOALS RIGHT NOW?

Absolutely ANYTHING is possible with ACTION and great FAITH.

“The task ahead of you can always be overcome by the power within
you…and the often seemingly difficult or even “impassible”) path
ahead of you is never as steep with the great spirit that lies
within you.”

Craig Lock
http://www.craiglock.com
http://www.soulful-writer.com

“Enthusiasm is the match that lights the candle of achievement.”
- William Arthur Ward

“Your belief determines your action and your action determines
your results, but first you have to believe.”
- Mark Victor Hansen

“God, the Source of Life and Love, the Ground of our very Being
will never give you a desire, a vision, an individual dream
without your having the ability/potential for it to come to
pass.”
- Craig Lock

Craig’s FREE e-book Steps to Success is now available at: http://www.bridgeniche.com/stepstosuccess/

A light, entertaining, ‘zany’ look at how to make the most of yourself,
as well as finding the crazy bits in you. “Steps” is written for the ordinary
“bloke” or woman in the street. No loitering, please!

Self help books by Craig Lock are available at: http://www.bridgeniche.com/get-motivated-now/index.html

Uplifting, encouraging and empowering people through the power of words and thought energy. Change YOUR world and you change THE world.”

THIS ARTICLE MAY BE FREELY PUBLISHED

Top Ten Reasons to Partner with Someone
Written By Alvah Parker in collaboration with Dovid
Grossman

Partnerships come in many forms. There are legal ones such

as in business or marriage and there are loose ones when two

people come together to work or share ideas but then go on
to work or share ideas with others too. I partnered with
Dovid Grossman to come up with this list of reasons to
collaborate. Dovid was excited about a new partnership he
had formed with Chris Vogler author of THE WRITER’S JOURNEY.

Dovid and Chris will be working on a series of teleclasses

and a book on THE HERO’S JOURNEY FOR PARENTS. Parents –
That is a partnership too. So what are the benefits of
collaboration?

1. Share Responsibilities – Somehow with a partner to share

the responsibilities the job doesn’t seem as daunting.
Example: For an alumnae function for my college I partnered

with 2 other women to have the event in my home. We shared

the tasks of phoning, shopping, setting up and cooking.
None of us could have done it alone.

2. Outsource Your Weaknesses– You do what you are good at
and your partner works from his/her strengths. You
compliment each other.
Example: If you are good at numbers, you do the accounting
for the business while your partner who likes to sell is the

marketer.

3. Brainstorm With a Buddy – You get your creative juices
flowing by coming up with ideas with someone else.
Brainstorming alone is not nearly as productive.
Example: Try listing all the states in the US by yourself.

Now discard that list and brainstorm a list with a friend.

I’ve tried this with many people and invariably two people
come up with more than twice as many states as the
individuals did when working alone.

4. Instant Camaraderie – It is always more fun to work with

someone else.
Example: The task of putting all the books on the
bookshelves looked tedious for Sal and Cindy. Together they

finished quickly and had time to reminisce about the many
books they had enjoyed reading.

5. Share Resources – Everyone has different knowledge,
books, equipment, and materials. Pool your resources and
you have more to work with.
Example: My friend and I agreed to do a presentation
together. She had several books on the topic and I had some

tools I had used previously. Together we prepared a
presentation with more resources available had we done it
alone.

6. Gain Synergy – You can build on each others ideas.
Example: My partner suggests a trip to Cape Cod for the
weekend. I suggest we go to Martha’s Vineyard and then my
partner remembers a lovely bed and breakfast that we stayed

in many years ago that we both loved on Martha’s Vineyard.

7. Have a backup – It isn’t all on your shoulders now. You

have a partner who can pick up the slack and give you some
breathing room.
Example: I need a break. The kids have been screaming all
day. How nice when my partner takes charge while I lie down

for 5 minutes.

8. Push the envelope – Working with a partner can inspire
you to move beyond what you have done before and take a
risk.
Example: You’ve never spoken to such a large audience
before. You’ve prepared with a friend and with her
encouragement you do it.

9. Gain a new perspective – A partner might get you to think

about a new option or see something in a new way.
Example: I’m upset because the ballgame got rained out. My

partner sees it as an opportunity to play “Singing in the
Rain” and we get dressed up in our raingear and play in the

puddles. I end up having a great time.

10. Get The Work Done – Partners hold each other accountable

Example: My room is a mess and I just haven’t got around to

cleaning it up. My friend has a messy office. We agree
that we will each cleanup our messes in the next hour. It
gets done!

Alvah Parker is a Business and Career Coach as well as
publisher of Parker’s Points, an email tip list and Road to

Success, an ezine. Alvah is found on the web at
www.asparker.com. She may also be reached at 781-598-0388.

Dovid Grossman: www.DovidGrossman.com www.AwesomeDads.com

www.HerosJourneyForParents.com

___________________________________

Negotiating real estate deals to win-win by Charles Warnock

If you’ve spent some time on homekeys.net, you probably noticed we generally don’t carry a torch for tradition or conventional wisdom. Having said that, the well-worn cliché above still holds true, especially in real estate transactions.

Many buyers and sellers put in countless hours carefully searching properties or preparing their homes for sale, only to see their sweet deals vanish at the negotiating table. Even if you’re not an experienced negotiator, there are steps you can take to improve results whether you’re buying or selling property. Negotiation doesn’t need to be a confrontational process if you set priorities, plan ahead and stay focused on issues, not personalities.

By far the largest expense related to traditional real estate transactions is the agent/brokers’ commission, and independent buyers and sellers should take advantage of this fact. Without the “overhead” of a 5-6 percent commission, both buyer and seller have a little more flexibility to come to an agreement that’s acceptable to both parties. Here are some negotiation tips for independent buyers and sellers.

Seller negotiating tips:

Set realistic priorities before you start.

When selling, be sure to outline realistic goals before negotiations begin. If you’ve decided that you need to sell your home for at least $250,000, expect to have very different negotiations than if your goal is to sell within 30 days. If money is your primary concern, be prepared to turn down some offers as you wait for the right buyer. If time is more important to you than money, be sure to include some flexibility in your asking price.

Ultimately, the market sets the price.

Set your price too high and your house may sit on the market, becoming less attractive to buyers (some sources estimate a monthly decline of 1.5 percent). Price too low and you’ve got less room to negotiate and may be leaving money on the table. Homekeys.net Subscribers can quickly obtain an objective estimate of property value using our online valuation tool before listing. Another option is to hire a professional property appraiser prior to listing. You may find the cost of either option to be modest compared to making an expensive mistake in your selling price.

Take inventory and take advantage.

Typically, property sales include anything that’s installed or built in to the home. If you’ve got appliances, furniture or fixtures you’re willing to part with, you may be able to entice prospective buyers by including them in the deal. Would buyers be interested in your BBQ grill or pool equipment? It can’t hurt to ask.

Buyer negotiating tips:

Clean up your credit

A great way to strengthen your case as a buyer is to demonstrate excellent credit. The time to check credit is well before negotiations begin so you can square away problems. Many credit issues are not difficult to fix and can be straightened out fairly quickly. Here’s how to check your credit.

Get pre-approved, not just pre-qualified

Pre-approval is another way to flex your buyer muscles because it lets you demonstrate to a prospective seller that your lender is prepared to give you a loan. Many sellers will choose a lower offer from a pre-approved buyer over a higher one from one who hasn’t been pre-approved. Pre-approval is free and can prevent that worst-of-all situation where a buyer successfully negotiates the purchase of his or her dream home and then cannot complete the purchase when financing falls through. Get pre-approved today.

Look for areas other than price.

Even though independent sellers can avoid some or all commission costs, there are still other fees that might apply: property and termite inspections, escrow or attorney’s fees, a title search, insurance costs and applicable taxes. Even if sellers don’t offer much flexibility on asking price, they may be more willing to make a deal with buyers who offer to share the costs of necessary repairs or transaction expenses.

Be prepared to compromise.

Approaching negotiations with a confrontational “win-at-all-costs” attitude is unlikely to yield positive results. Many professionals who teach negotiation skills to executives say a more realistic goal is to find a mutually beneficial solution in which both parties can “win.” This means being aware that you may have to sacrifice something to reach agreement at some point. In this case, be sure to identify in advance what you will and will not give up to ensure you’re happy with the deal in the long term.

Back up your offer

When offering to buy a property, you don’t have to explain how you arrived at a particular dollar amount. But you may fare better in negotiations if you have some objective basis, such as examining comparable sales. If you’re a Subscriber, try Homekeys’ ValueKey valuation tool for an objective estimate of value. If you’ve got a substantial down payment that you’re ready to put into escrow, now’s the time to mention it.

All participants in a negotiation should be prepared to walk away from unacceptable terms. You may be reluctant to give up after all the time you’ve invested in the buying or selling process, but emotionally tense negotiations can sometimes benefit from a cooling-off period. Walking away (or watching the other party walk away) may be uncomfortable, but it is always preferable to accepting terms you can’t live with.

Finally, remember that there’s often value in being direct. Don’t be afraid to ask questions to learn more about the other person’s concerns and objectives. “What do you need from me right now?” “What’s making you uncomfortable?” “It seems we are stuck on this particular issue. Can we set it aside for a moment and see if there is somewhere else we can gain agreement?” Questions like these can help signal your good faith and may help to restart negotiations that become bogged down in details.

About the Author

Charles Warnock is Marketing Communications Manager at Homekeys, a South-Florida based real estate and technology company. He writes often on real estate, finance, interactive marketing and business development.

The Art & Science of Property Valuation by Manuel Iraola & Charles Warnock

The Art & Science of Property Valuation

It is no secret that sellers want to sell high and buyers want to buy low. But they often arrive at the negotiating table with very different ideas on price. A fair and objective property valuation can help buyers and sellers find common ground and streamline the negotiation process.

In the end, the property is worth what a buyer is willing to pay. But to help both buyers and sellers achieve their goals, both should have a fair and objective estimate of property value. Unfortunately, even objective estimates are still estimates, and there is no way to assure 100% accuracy:

* Appraisals performed by a certified appraiser are not 100 percent accurate.

* CMA’s (Comparable Market Analysis) and BPOs (Broker Price Opinions) performed by a licensed broker or agent are not 100 percent accurate.

* AVM (Automated Valuation Model) technology is not 100 percent accurate.

All these methods, when properly executed, can provide a good indication of value. Estimating value is a combination of art and science. Regardless of how scientific the approach, the actual sale price is subject to the unique variables of each property transaction: property condition, upgrades, current market conditions, circumstances of the sale and individual tastes.

For property owners, pricing correctly is a key to a successful sale. Under-pricing can result in a fast sale, but carries the risk of leaving money on the table. Sellers who price too high may find their properties lingering on the market, and statistics show that values can erode at a rate of about 1.5 percent per month. Longer sales also increase the likelihood of a “distressed sale” when sellers become frustrated or encounter difficult financial circumstances.

Likewise, buyers should avoid emotional purchases. Overpaying because of “falling in love” with a home is common. Homekeys’ ValueKey Technology can help establish an objective, unemotional baseline for buyers and sellers so distressed sales and emotional purchases become the exception, not the rule.

The science of AVMs

To determine a good baseline value for a property, use Homekeys to search thousands of property records for comparable sales or “comps.” Homekeys’ ValueKey tool uses advanced statistical models and proprietary algorithms and formulas to find the best comparable properties available. In addition to property characteristics, the system evaluates how recent comparable sales are and how close properties are from the property being evaluated. Once a base property value estimate is determined, it’s time to check active listings to see what similar properties are selling for. ValueKey searches both owner- and broker-offered active listings to find the most comparable properties available.

The art of AVMs

The art portion of estimating value begins with understanding how comparable sales and active listings compare to the property being evaluated. Since they are nearby, it’s a good idea to drive by comparable sales and listed properties to see how they compare. To help you stay organized, you may want to use a buyer checklist when visiting properties.

After researching comparable sales and active listings, it’s time for the personal touch. Sellers know their own property and neighborhood better than anyone, so they are able to adjust base values according to individual property characteristics. Buyers can make similar adjustments as they visit properties to help formulate an asking price.

Depending on your research, a “market adjustment” may be warranted. If active listings are priced higher than your base estimated value, an upward adjustment may be appropriate. If prices are lower, a downward adjustment might be in order.

Finally, ValueKey enables buyers and sellers to make other value adjustments based on individual property characteristics and condition. Based on a seller’s knowledge or a buyer’s research, appropriate value adjustments can help both parties arrive at a fair selling price.

And though no property valuation system is perfect, AVMs can provide objective valuation estimates quickly and inexpensively, and the technology is improving all the time. As AVM technology continues to evolve and improve, it may prove to be a key to less-stress, more enlightened real estate transactions in the future.

Learn more at http://www.homekeys.net

About the Author

Manuel Iroala is President and CEO of Homekeys. Charles Warnock is Marketing Communications Manager at Homekeys, a South-Florida based real estate and technology company. This article can also be found at www.homekeys.net

HOUSES WITH DAM(P) BASEMENTS WON’T SELL by Jack Overton

A real estate agent’s gut-wrencher: The prospect turns to hubby and says, “Isn’t this so homey and practical and just what we were looking for. Now, let’s go down and look at the basement.” They open the basement door and get the feeling that Noah must have been running an all-nighter down there!

“What did you say the asking price is? Hmmm, well we have a friend cross-state who just had their basement waterproofed and dried out and it cost them over fifteen grand, so we’ll just lower our offer by that much for openers so we can fix the basement.”

Well, with a little forethought and action, the sellers could probably solve that dam(p) problem for about 2 to 3 thousand and the new dry basement may very well become the final clinching selling point!

THE FOUR STEP SOLUTION TO A HAPPY CLOSE—

1. Learn online: the why’s and how’s of basement water problems.
2. Fortify yourself by knowing the over-sell’s and the gotcha closings of the waterproofing professional salesman.
3. Choose a contractor who has been around longer than the last big rain.
4. Get a sign-off from the buyer that the work done will be acceptable without any further obligation on your part. The buyers will rely on a good contractor’s guaranty.

About the Author

Jack Overton has been in residential waterproofing sales, installations and service for 30 plus years. He has put together a 32 page illustrated volume that will tell you everything you ever wanted to know about basement waterproofing but were afraid to ask. It is a scambuster’s dream.
Visit www.NPImall.com for the download.

ARE YOU REALLY A TWENTY FIRST CENTURY INVESTOR? by Steven Battle

Real Estate Investors that educate themselves about CURRENT MARKET TRENDS will reap huge returns NOW!!! Information concerning NEW TRENDS in financial resources will open new and more profitable real estate opportunities for your business.

Today’s residential real estate market for investors has become very competitive in most major markets. The vast majority of real estate investing seminars and clubs are encouraging you to search out desperate home owners or distressed properties to be rehabbed.
Not to mention the fact that today’s disillusioned stock investors have now realized that residential real estate investing offers better returns, with less capital risks. As you seek to identify your lucrative real estate opportunities, have you noticed that the good deals are getting harder to find? I am not here to discourage you from investing in real estate, but would like to share real estate investment opportunities and information with you…..opportunities that only a few people are aware of and regularly participate in. That’s right; I am referring to a niche investment market that has VERY LITTLE competition. This unique information is currently setting new trends within the commercial real estate investment community!

I know you are ready for me to tell you about this quiet niche investment market, so I will…… it is….……. ………..Commercial Real Estate. There are HUNDREDS, maybe THOUSANDS of niche market investment opportunities within Commercial Real Estate. And by the way…….. the main reason why so few investors go after commercial real estate, and that might include yourself, is that you’re not convinced that you would qualify for commercial financing ! ! Most investors are lead to believe that a 20% down payment is required to start the process for purchasing commercial properties. WELL, THIS IS NOT TRUE!

Let’s do the math now…… financing a property that cost $5 Million dollars with 20% down would require you to put down $1,000,000 and you would still have to add in legal fees and closing costs. Yes, I know that only a few investors or even investment groups are able to meet these down payment requirements. Your first mistake as an investor would be to go to your local bank to seek financing, or worse, go to private or hard money lenders. First, remember the banks are regulated by the federal government and they are required to underwrite conforming loans and second, bank loans tend to be very structured and are generally inflexible to your project needs. In most cases, THESE LOANS will require a 20% DOWN PAYMENT OR MORE! The only benefit of using private or hard money lenders is when” NO OTHER FINANCING OPTIONS EXIST FOR YOU!”

FINANCING is the key ingredient to identifying lucrative real estate investment opportunities, yet, so few people truly understand the power of knowing WHERE to find the right financing and HOW to get it! WHAT IF you had several lenders, today, that would only require you have 2 to 3% down payments (on certain qualified projects)… WOULD THIS BE OF INTEREST TO YOU? A $5,000,000 loan with 2- 3% down payment equates to putting down $100,000 to $150,000. As an individual investor, this down payment would still be pretty steep for you however, today, many residential investors are already joining and forming Investment clubs to increase and enhance their purchasing power. TO ALL residential real estate investors……. the REAL MESSAGE here is that you are closer to buying commercial real estate than you think! This example should make it clear to you that finding the right financing is the FIRST step and the key ingredient to your real estate investing…….. however, there is a PROBLEM.

The problem is that as an investor, you have been trained to shop for properties FIRST, and almost never for financing. Finding the right financing FIRST will save you and make you more money over time, than you purchasing the undervalued properties and selling them later at or above market prices. I will repeat this….. MOST REAL ESTATE INVESTORS DO NOT UNDERSTAND THE IMPORTANCE OF FINANCING within the investment equation. The ability to save on the amount of the interest rate you are being charged…. month after month….. year after year… 2 or 3 % or more is huge. You may also find out what I already know….. . by securing the financing first…..THIS OPENS UP NEW INVESTMENT OPPORTUNITIES!

Let’s review some of the BENEFITS that come with purchasing Commercial Real Estate:

1) Unlike residential real estate, commercial real estate’s only purpose is to make money for its investors. If there was a 7% cap rate on the $5,000,000 sample property, it would cash flow $350,000 annually.
2) Do you think you would enjoy having professional tenants with long term leases?
3) Would it excite you if your investment projects qualify for Non recourse financing?
4) You can totally eliminate the process of rehabbing properties.
5) How about this…… YOU no longer have to chase tenants down to collect rent.
6) You no longer have to pay penalties to lenders for not being in owner occupied properties.
7) Expand your investment search throughout all 50 states.
Last and probably the MOST BENEFICIAL of all of the perks….You can qualify to purchase these properties using your commercial tenant’s credit rating, business cash flow and their long-term rental leases!

We are searching for like -minded real estate investors and investment clubs that would like to join a Commercial Real Estate Investor Forum. We welcome that you come and ask your commercial financing questions and share your investment experiences with the group. Go to www.amoneybroker.com/ and click on “Join Our Investor Forum.”

About the Author

In an era where information rules, the small to medium sized real estate investor can NOW be a “Front Runner” AND a major player within the commercial real estate market!, says Steven Battle, Commercial Financing Consultant with Amoneybroker.com

Tips for Buying a New Home by Matt McWilliams

Buying a new home can be a daunting task, even for someone who has owned several homes. If you recently purchased your first home, you probably found that is hard to find good advice that is truly useful. You had to learn a lot on our own, but at least now you probably feel comfortable and knowledgeable about the whole process.

My wife and I recently purchased a new home in Tennessee. Here are some helpful hints we picked up along the way:

1. Use all of the online resources available. Almost every state and local government has a website where you can research real estate information. The data on home sales, taxes, and neighborhoods is invaluable when you are shopping for a home. We were able to find out the most recent sale prices in the neighborhood we selected, and we didn’t have to rely on a real estate agent to get the data for us. Doing the research yourself will make you more knowledgeable about the market, which is key to making a good purchase.

2. Be realistic about how much you can spend. Try to buy a home in a price range that allows you to put down 20%. If you put down less than this, you will have to pay PMI (private mortgage insurance) to protect the lender in case you default on the loan. I know that 20% is a lot, but it’s not unrealistic. You may not be able to do it on your first home, but hopefully you can on your second home. The profits from the sale of my condo enabled my husband and me to have more than enough for the 20% down payment on our home. But we didn’t put it all down on the home - we saved some of the profits for the unexpected expenses that come with buying a home. We suggest that you do the same.

3. Shop for a home in the winter, preferably around the holidays. Since most people just aren’t interested in buying a home when they are trying to deal with the holidays, you can pretty much be one of the few buyers out there. We bought our home right before Christmas, and it was definitely a buyers market. We had our pick of homes and were able to underbid on the asking price, even though we live in one of the hottest real estate markets in the country.

4. Use a smaller mortgage company that can offer personal service. People tend to go with large, well-known mortgage companies, since that’s all they know. But the smaller, regional companies provide excellent customer service, and can often give you better rates than the big companies. Since they don’t advertise and instead rely on word-of-mouth, they have to be good in order to get your service. We started off with a big-name company, but in the end, we went with a regional company because they had better rates and better customer service.

5. Always have a home inspection. I think most people know this fact already, but it is really important in areas with a hot real estate market. It can be easy to get caught up in bidding wars, and to want to get a house at all costs. Some friends of ours wanted a house so badly that not only did they overbid, but they also waived the home inspection. They got the house - and right along with it they got several thousand dollars worth of damage that would have been found in an inspection. As a final note, try to remember that buying a home doesn’t have to be scary. It’s very exciting to own your own home, so think of all the good things that will come once you have made it through the home-buying process. If you follow the advice above, then you should be well-equipped to make it through unscathed.

6. Save money and shop for your home insurance the easy way! Yeah, I know this is a shameless plug for our web site, but seriously, whatever web site you do use, get online and shop around for your home insurance. You can get multiple home insurance quotes from HometownQuotes.Com or any of a dozen or so reputable companies online. Go to a search engine, like Yahoo! and type in ‘home insurance quotes.’ This is the best way because if you get 5-10 good quotes you can decide for yourself who is the best.

About the Author

Matt McWilliams is one of the co-founders of HometownQuotes.Com, an online insurance quotes web site. He is originally from Pinebluff, NC and graduated from Middle Tennessee State University in 2002. He is considered an expert in the field of online insurance shopping and finding new ways to help consumers save money on their insurance. For more information visit http://www.hometownquotes.com.