First Time Buyer: Be Careful and Alert First time buyer term is used for all those individuals who have no experience of home purchase and are indulging in the purchase for the first time in life. To help out such people, first time buyer mortgage is introduced in the market. It is a financial help for first time buyers so that they need not spend any more money on rent.
A first time buyer has to be very careful before he signs any mortgage deal. There are various fake and unprofessional lenders who bewilder you with mortgage rates. Hence, to avoid all such confusions you should update yourself with current mortgage rates by spending a good time on various websites of the lenders. Besides this, you need to be cautious about the location you choose for your new home. Take a good advice from your friends or those who have good experience in home purchasing.
A first time buyer is charged low interest rate, small and affordable monthly installments and provided good repayment period. He gets flexibility so that he can repay all his installments as per his convenience. A first time buyer has to make a small down payment right at the beginning of the purchase, while lender finances the rest of the amount.
However, the drawback you face is losing your property if you fail to repay the amount. Lender will seize your newly purchased house which you have to keep as collateral. The Internet is a great tool for the first time buyer to get more information about lenders in less time.
First Time Buyers –No More Being Tenants, Be a Home Owner Now First time buyer term refers to all those people who are buying for the first time. These people are naïve about the purchase of their homes because of no old experience of buying homes. First time buyer therefore should be aware of current market norms and trends.
All these first time buyers are usually tenants. They have been desperately looking to buy their own homes, but weak financial status often creates a hindrance. However with the change of time, there also came significant changes in the financial market. There are various lenders mushrooming in the market every day who offer very good mortgage services. A first time buyer will certainly be benefited if he switches on to these mortgage deals.
A first time buyer receives lot of advantages. He gets low rate of interest, pays small monthly installments and also benefited with long repayment period. The long repayment period does not call for heavy burden of loan on your shoulders. A first time buyer does not have to make all his payments at a time. He makes a small payment at the beginning which is called down payment. And rest of the expenses are not his headache, lender bears those expenses. The house that is being purchased by first time buyer is kept with the lender till the time, all the mortgage repayment is made.
Rising rates of the property make it difficult for the first time buyer to buy their own homes. Therefore approaching lender for a mortgage deal is the most advisable option. For that you need to spend quality time with internet and make a thorough study to compare all the mortgage rates of various lenders.
Tips to Follow When Buying New Construction Real Estate New home communities offer beautiful homes, open-floor plans, new appliances, and much more. Plus, new homes often offer easy purchasing through an on-site sales agent. The problem is that they can also tally up to significant losses. To buy your new construction home the smart way, follow these tips:
1) Use a Realtor Who Has New Home Sales Experience
New homebuilders will sometimes put pressure on you to use an on-site agent plus a pre-approved lender, insurer and title company. It’s a mistake not to get your own realtor. A realtor can protect your interests and can ensure that all costs and interest rates are within industry standards. Realtors with new home experience know the homebuilder community and this can ensure that homebuilders are very cooperative – after all, they don’t want to tarnish their reputation.
2) Don’t Sign ANYTHING Until You’ve Negotiated Every Detail
Always assume that nothing is agreed upon until it is in writing. Once it’s in writing, don’t assume that it can be changed or negotiated. Don’t fall for the “write up the contract so that no one else can get your house” ploy. Instead, make sure that the contract you sign has everything you negotiated in writing before you sign.
3) GET A HOME INSPECTION!!!
Many people assume that home inspections are for older homes that may have asbestos, structural problems, and other liabilities. This is not true! While many new constructions come with full warranties, those warranties usually only last 12 months and many problems surface only after that first year. An independent, professional inspector can help you avoid very costly repairs a few years down the line.
4) Don’t Use Their Lender
Many builders who build entire communities are now publicly traded corporations. These companies make a lot of money by financing – not just building and selling – homes. As a result, many builders will offer you enormous incentives or pressure you to use their lenders. The problem is that the builder’s lender will usually have higher interest rates and higher closing costs than a traditional lender. In most cases, you can have the stipulations removed so that you can choose your own lender and enjoy some incentives. After all, the builder will not make any money if you refuse to buy a home. If a builder insists that you use their lender, walk away and find another builder. It makes no sense to pay many thousands of dollars extra.
5) Research the Builder
Most builders are responsible and take care to protect their built neighborhoods. Still, make sure that you research your builder. Specifically, make sure that your builder has a reputation for good quality homes. Make sure that the company limits investor purchases – these can result in rental properties that depreciate neighborhood value. Also, determine whether the builder will build equal or greater value homes in the surrounding area. If they do not, the new homes will instantly devalue.
6) Choose An Appraiser
Lenders require you have an appraisal anyway, so you may as well research a good appraiser yourself. Ask for a copy of the appraiser’s findings as well – it can contain information that will give you better insight into what you are buying.
7) Research City Plans
New neighborhoods are often built on the outskirts of town, where land is available at a lower cost. Be sure to ask your realtor or do your own research into what the city has in mind for the area. Research roads, zoning, public transportation, parks, and schools – all will determine the future value of your new home.
New homes are very appealing to buyers. If they’re appealing to you, be sure to hire professionals and do your research so that your new home remains a positive experience for years to come!
What to Examine Before Buying Real Estate Foreclosure Properties Are you interested in buying real estate foreclosure properties with the hopes of turning them into investment properties and making money with them? If you are, you need to be familiar with real estate foreclosure properties. Not only do you need to know what they are, but you also need to know the best ways to go about finding and buying them.
When it comes to finding real estate foreclosure properties, there a number of different approaches that you can take. For instance, you can use the internet. There are a number of online real estate foreclosure listing services that you can use to browse through or search for foreclosures. You can also find real estate foreclosure properties by keeping an eye on your local newspapers or by examining the public records at local county clerk offices.
Now that you exactly how you can go about finding real estate foreclosure properties, your focus should then switch to buying the properties. Before buying any real estate foreclosure properties, you are advised to examine the properties in question, as much as possible. There are some instances where you may be required to make a purchase decision without actually seeing the property in question, but, with an address, you should at least be able to get a look at the property in question. Look for any signs that may indicate that repairs or updates may need to be made. Any additional money that you will have to invest in a real estate foreclosure property is important, as it should impact how much you are willing to pay for the property.
In addition to the real estate foreclosure property in question, you are also advised to examine its surroundings. For instance, is the real estate foreclosure property located in a good neighborhood? Are there many fun, but safe activities and attractions nearby? If there is, you have a better chance of turning a profit. Real estate investment properties are those that are later sold for a profit or rented out. You need to not only make sure that the real estate foreclosure you are interested in is marketable, but you also need to make sure that the area in which the foreclosure property is as well.
Of course, you will also want to look for real estate foreclosure properties that are being sold at great prices. Many real estate foreclosure properties are sold at prices which are less than the fair market value. This is what makes real estate foreclosure proprieties highly sought after, particularly with real estate investors. As stated above, when examining the cost of a real estate foreclosure or the bidding price if it is being auctioned off, you need to take any possible updates or repairs into consideration. This is important because you will want to invest in good real estate foreclosure properties, but you also want to try and limit your investments, if you can do so. The less you invest, the easier it is for you to make a profit.
The above mentioned points are just a few of the many that you will want to keep in mind, when looking to find and buy real estate foreclosure properties. For additional information, you may want to think about taking a real estate investing course, particularly one that places a large focus on real estate foreclosure properties.
The Recipe for Real Estate Success... Finding Motivated Sellers In real estate there is a saying that you don't make your money when you sell, you make your money when you buy. The name of the game is finding amazing deals and then keeping them for the long term or turning around and flipping for a handsome profit. Of course, if great deals were that easy to find, everybody would be doing it. The forces of supply and demand would inflate the price of properties to the point that there would be no deals left! Naysayers claim that this is true of today's housing market, but in reality, there are endless deals to be found almost anywhere at almost anytime. Finding these deals takes experience and talent, but this article serves as a head start for novice investors, or a refresher course for old pros.
Distressed Owners Make for Distressed Properties (And Vice Versa)
What is a great deal? Quite simply, it's when you buy a property for well below its actual value and/or with favorable terms. The only way this can happen is for the seller to be ignorant of the market, completely uninterested in profit motives, or extremely motivated to sell. Your chances of making a career out of finding homes owned by people who don't know any better or who don't care are slim, so it's best to concentrate on identifying motivated or "distressed" sellers. After all, only someone who absolutely needs to sell is going to price his or her home well below market value and/or accept unusual financing arrangements. These are the ingredients of a great deal!
So what makes a person a motivated seller? Divorce, death of a relative, job transfer, and serious financial distress are the items that top the list. While you might feel guilty for "taking advantage" of people in such a situation, you shouldn't. After all, they need to sell - you are helping them! You and the seller are finding a mutually agreeable price point and terms. You are getting a great deal and they are unloading a headache. It's a win-win situation.
How to Find Distressed Sellers
The first place to look is the newspaper. Don't bother searching through the fancy ads with pictures placed by real estate agents; go right to the classifieds instead. Look for listings with "for sale by owner" in the text, or that appear as though they are being sold without an agent. Technically, real estate agents must state that they are agents in all advertising materials, but the less scrupulous ones frequently disobey this rule. Also look for key phrases such as "must sell, fix-up, needs work, vacant," and of course, "motivated sellers" (although agents often advertise "motivated seller" when in fact their client isn't all that motivated!). Be prepared to make a lot of calls and not to spend much time with each seller - finding deals is a numbers game, and you have to make a lot of calls to find that one special deal.
But you shouldn't limit yourself to FSBOs (homes that are "for sale by owner"). Instead, draft a letter on professional letterhead and fax it to all of the real estate offices in your area. Explain that you are a real estate investor looking for distressed properties and that you can close quickly if the price is right. This way, you can have an entire army of real estate agents working for you, free of charge. If one of them finds a property for you, the seller of the home will pay the agent's commission. You owe them nothing, it comes off the seller's side.
Another idea is to call the owners of rental properties and offer to buy. Many income property owners are reluctant landlords and will certainly entertain the offer. If they say no, leave them your name and phone number and tell them to call you if they're ever interested in selling.
Finally, you can place your own classified ad. A simple headline like "We Buy Houses for Cash" works best. Don't worry that other investors use the same ads, it's a numbers game. Sometimes people will sell to you because they like the way you sound or they trust you over your competitor. How many advertisement do you see in the paper for mortgage companies, car dealers and retail stores selling the same product? There's enough business to go around, and so long as you get the phone ringing, you'll learn to get good at converting them into deals.
By knowing what you're looking for - distressed owners - and following these strategies, you will already be way ahead of most beginning real estate investors. It takes work, and lots of it, but the rewards are worth it.
Things to Check Out Before Buying A House If you’re thinking about buying a house, you’ll have a number of things that you’ll want to specifically look into before you do. This article will give you a number of suggestions about exactly what factors to look into before you make the big plunge into being a homeowner.
First, always ask around among the neighbors before you buy. You’ll be surprised about what might turn up. If there’s been bad blood, a neighbor might be willing to reveal every problem they know about with the house. They’ll also be able to clue you in to things that may not be a problem with the house in particular but may be with the neighborhood in general. This can include a number of things. Remember to ask about: whether the house or the neighborhood is in a flood zone, whether there are any problem neighbors nearby, whether they know of any previous damage, and whether there is a crime problem. You can probably think of about a dozen other things to ask - talk with several neighbors, and if you find the local gossip, you’ll be in on everything you need to know. Always make sure that you document what representations the owner makes to you about the house - it could come in handy later, especially if there are major undisclosed problems with it. Do a little searching on the internet - you can always do a search for the name of the homeowner and see if anything interesting comes up. If there’s something shady or they’re untrustworthy, you want to know about it. By the same token, you can often easily see if they are legitimate that way. Make sure that you’ve had a title search done - your real estate agent will probably take care of it, but it’s a must-have. Hire a handyman to inspect the place if you aren’t good with that sort of thing - or just get someone you trust to look around. It doesn’t take much to make sure that your house will be a good investment.
10 Things You Must Do Before Buying a Home Buying a home is often the largest personal finance transaction a person makes in his or her life. So it's critical that you make the right preparations and do the proper research. Regardless of unique situations and special circumstances, there are ten things you must do before buying a home.
1. Study the home buying process.
This will allow you to make better decisions and act confidently. Home buying lingo is a big part of this, so be sure to read through a few home-buying glossaries before you get into the thick of things.
2. Obtain your credit report.
Get a copy of your credit report and review it for errors. You can get copies from all three credit bureaus at once by visiting www.AnnualCreditReport.com. Mortgage lenders will review your credit with a fine-toothed comb, so you should do the same ... before they review it.
3. Fix credit errors quickly.
If you find an error on your credit report, go to the company's website where the report came from (TransUnion, Equifax or Experian) to contest it. It can take time to clean up an erroneous credit report, so get started as soon as you spot the error.
4. Check your debt-to-income ratio.
Mortgage lenders like to see a borrower's debt at (or below) 20% of net monthly income. If your debt exceeds 20% of your net monthly income, try to pay it down for applying for a mortgage loan. You'll have an easier qualification process and will likely qualify for a better rate.
5. Determine your budget.
Use an online mortgage calculator to get an idea of how much you can afford to pay each month, and what that equates to in terms of a home price. This will give you a budget to work from, which will help you weed out the homes that are beyond your comfort zone.
6. Start saving your cash.
This is one of the best things you can do before starting the home buying process, for a couple of reasons. First of all, mortgage lenders like to see that you have some cash reserves on hand. Secondly, you'll need cash reserves for any unexpected fees or costs that might arise (which is common).
7. Get pre-approved for a loan.
During pre-approval, a mortgage lender will review your credit, finances, debt, etc. and conditionally qualify you for a certain amount of mortgage. Sellers will take you more seriously if you have a pre-approval letter, and the process also helps identify any problems with your credit or other qualifying factors.
8. Avoid new lines of credit.
Try to keep your financial situation as "stable" and favorable as possible. It's a good idea to pay down some debt (see item #4 above) and to save up some cash. But the worst thing you can do is take out a new loan / line of credit. At best, this could make the qualification process take longer. At worst, it could tip the debt scales into the "greater than 20%" zone, which will make it harder to get a loan.
9. Validate the asking price.
It's called an "asking price" for a good reason. No asking price is set in stone, and everything in real estate negotiable. So don't accept an asking price as being reasonable until you validate it through careful research. Compare the home / price to recent sales in the area. Your real estate agent can provide a comparative market analysis (CMA) to help you with this step.
10. Get a home inspection.
It is never -- I repeat, never -- wise to skip the home inspection. A house is a sizable investment, and the last thing you want is to find a bunch of things wrong with it after you've taken ownership. Home inspections are very affordable, and you cannot put a price on the peace of mind you'll have as a result of your inspection.
Understanding the Foreclosure Timeline The information below was gathered from sources deemed reliable and is intended for informational purposes only. Please consult official assessment records. State and county terms and policies may vary so consult your local bylaws.
Definitions
Notice of Default (NOD): The initial document (non-judicial) filed by a trustee that starts the foreclosure process, usually after the occurrence of a default under the deed of trust, or mortgage. Both LIS and NOD are part of the PRE-foreclosure process.
Lis Penden (LIS): Notification of pending lawsuit. The initial document (judicial) filed by an attorney or trustee that starts the foreclosure process after the occurrence of default under the deed of trust or mortgage. Both LIS and NOD are part of the PRE-foreclosure process.
Notice of Trustee's Sale (NTS): A filing by notice announcing a public auction.
Notice (Judgment) of Foreclosure Sale (NFS): An order signed by a judge, directing a “ Notice of Sale” be published and that a referee (trustee) sell the property at public auction.
Real Estate Owned (REO): “Real Estate Owned” by the lender; the final step in foreclosure process. This document conveys property ownership back to lender.
Government-Owned (GOV): A foreclosed property offered for sale by the government. When a property purchased with a federally insured mortgage (i.e., FHA, VA) is foreclosed by the lender, the federal government pays the lender what is owed, takes possession of the property, and offers the property for sale.
Glossary of Terms
Foreclosure: A legal procedure by which mortgaged property is sold, upon default, in order to satisfy a debt. Foreclosures generally are governed by state law, and rules may vary between States.
Deed of Trust: A type of security instrument where the borrower conveys the property’s title to a third party (trustee) to be held “in trust” as security for the note.
Mortgage: A conveyance of an interest in real property, given as security for the payment of a debt. An agreement between two parties: borrower and lender.
Assignment of Deed of Trust or Mortgage: Assumption by a purchaser of liability for payment of an existing mortgage, or deed of trust. May or may not be accompanied by a release of liability of the original borrower.
Novation: The substitution of a new contract between the same, or different parties; a substitution, by mutual agreement, of one debtor for another, or one creditor for another. The result is that the old contract is extinguished, and a new contract is created, usually with the same content, but with at least one different party.
Declaration of Default: A document instructing the trustee (usually appointed by a bank) to prepare and record a Notice of Default (NOD), and if necessary, to sell the property at auction in order to satisfy the unpaid obligation or lien.
Full Reconveyance: A document prepared by a trustee, when an obligation secured by a deed of trust, or mortgage, is paid back in full. Once recorded, this reconveyance eliminates the lien from the property’s title.
Junior Lien: A legal claim upon real property recorded subsequent to (after) another claim or legal obligation (for example, a senior lien would have priority in most cases).
Postponement: A verbal announcement made at the time and location of the scheduled trustee’s sale, resetting the auction for a later date.
Publication Letter: A letter, when signed by the beneficiary (lender), authorizing the trustee to prepare, publish and record the Notice of Trustees Sale (notice of auction).
Publication Period: A period beginning at the expiration of the default period, and ending when the trustee’s sale has been conducted. During the publication period, the Notice of Trustees Sale is published, posted and recorded.
Recession of Notice of Default: After an amount in default has been cured, or paid-back, this document, when signed by the lender and recorded by the trustee, removes the burden of the previously recorded Notice of Default.
Reinstatement Period: The time period beginning when the Notice of Default is recorded, and ending five business days before the trustee’s auction sale. The default may be cured, or paid-back, at any time during this period by paying all delinquent amounts, including the trustee’s fees and costs.
Foreclosure Timeline
When purchasing forclosures it is extremely important to understand the timeline required to work within.
Day 1: Notice of Default (NOD) recorded. The defaulting property owner has 3 calendar months to cure, or payback the default amount, either by paying off the lien, or by negotiating a payment plan
Within 10 days: Notice of Default mailed.
Within 1 month: Notice of Default mailed.
3 Months Later: Trustee schedules a Trustee's Sale (auction).
21 days later: On the date of sale, trustee sells the property to the highest bidder. This sale is usually held at the trustee's office, or at the County Courthouse (call trustee for updates on time, date, place).
Preparing Your Home for Sale Preparing to sell your home can be stressful and time consuming. Knowing what kind of things to focus on can greatly reduce your stress and keep you focused on the projects you need to undertake in preparing your home for sale. Having a home that is clean and in good condition will typically sell for a higher price and more quickly than homes that are not well maintained.
The difference between a home in good condition and one that is not many times is as simple as a new paint job or replacing damaged fixtures throughout the home. Put yourself in the potential buyers’ shoes and take a good hard look at your home. What would you want to have fixed if you were to buy this house?
When preparing to sell your home don’t neglect the yard. Your yard is the first thing home buyers will see. Keep you lawn mowed and hedges trimmed. If it is spring time plant some flowers in the front to add some color. Pick up any clutter than is in your yard, front and back. I’ve seen homes where all is going well and I like what I am seeing until I get to the backyard and it looks like a junk yard. Typically, the seller of the home will clean it up but sometimes they don’t and the buyer is left with the mess. Plus upon seeing the mess the buyer may forget about the good things and remember your home by, “the one with all the crap in the yard.”
Consider painting your home, especially the inside. Newly painted walls add to the overall appearance of your home and may help it sell. Repair doors, windows, walls, and anything else that needs to repaired. If there are things that you can’t afford to repair at the time or if you are not interested in repairing it know that it will reflect in the price people are willing to pay for your home.
Inexpensive Tips to Sell Houses In the past years, selling houses focus only on recreating the exterior so as to invite buyers. However, a shift has now occurred wherein the emphasis is given towards the inner appeal as well. After all, there is no point in selling (or buying) a beautiful house judging by the external offers it has if you are going to sacrifice the design of the interior.
Look at your own house with a critical eye, as if you are somebody looking at another person's house. Don’t dismiss any flaws that you think are acceptable enough on your own perspectives. Think as if your prospect buyers are the worse critics you will have and your future dignity would lie on them. Strange isn’t it? But we tell you, this technique is effective enough to warrant easy market for you. This is because you have already limited the possibilities of rejection and scrutiny.
As you may have already noticed, there are various television programs that let people see what they can do in their own houses that could make them appealing for buyers. In most cases, the houses are reconstructed in inexpensive ways yet cause dramatic changes. Well, it would help if you'll follow the suggestions such home improvement shows provide.
But you must always keep in mind that you have to maximize the effects of such changes through incurring lesser expenses. Thus, you must seek the best prospects that would bring out the best in your house while not taxing your wallet.
For one reason or another, the floor seems to matter much and buyers took notice on the type of flooring you have used in your house. Also, focus on the condition of your flooring. If this needs reconstruction then see to it that it is reconstructed in the least possible expenses you can have.
Don’t hasten the changes though. You will have to plan the design and the outcome of the changes in your flooring. Go for economical yet appealing floor tiles and other types of flooring. There are lots of options for you. In fact, there is almost an endless list of materials you can use to furnish your floor with. Among the most common are laminated tiles, ceramic tiles, cork tiles, wood and others. Of course, the type of material you will choose will be largely dependent on the entire setting of your interior.
Some houses seem to have its distinct odor that act as repellant against promising buyers. You may not know this but you must understand that any possible turn offs should be removed.
This is typically hard to judge. Since you have already lived in your house and has already become accustomed to its smell, it would be hard for you to detect any unwanted odor. In this case, you must ask the assistance of another person who hasn’t been in your house for long. Whatever his or her opinion is, you have to analyze and consider them in great detail.
Also, take a look on your walls. Maybe there are marks that should not be there. Or perhaps cracks are already appearing on some of its portions. Wall blemishes could affect both the price and the interest of the buyer of your house. Be sure that you have completely fixed your walls that expansion cracks and nail pops barely have their traces.
These are just some measures you could use to help get the higher prices for your houses while incurring minimum expenses on the repairs.
Sell Your Home At Top Dollar With An Inexpensive Face Lift Have you ever why some homes sell faster than others? It could be the very same model in the same neighborhood, and one home moves quickly whereas some just remain on the market with disinterested buyers. Here are some tips to stage your home to not only sell it, but to get top dollar.
First, examine your home from the curbside as though you had never seen it before. It may be difficult to really put on your objective glasses, but if you can, you will be surprised of how accustomed we become to that broken gate, the damaged garage door, or the garden hose that isn?t rolled up. These may sound like minor issues, but to the home buyer, they?re touring your home with a magnifying glass and a white glove. Begin your evaluation by writing down everything you notice that could improve your property in the slightest way. Here are some inexpensive, easy tips to enhance your home and get top dollar!
Be sure to replace or trim trees and plants and try livening up your garden with some colorful, fragrant flowers near the entrance. In some cases, you can even use beautiful silk floral pieces in large pots as long as they look real!
Varnish or paint the entrance door with subtle colors such as black, burnt brown, gray, forest green, or white. If you?re home is older, replace the old door with a glass entrance door. If you have a screen door, consider purchasing one of the newer models and make sure the latch works for easy entry. First impressions and anticipation of walking into your ?dream house? begins here.
The first thing people notice is if the home is bright and cheery. The last thing homebuyers want to do is walk into a dark hole and depend on a realtor to turn on (and off) the lights and open (and close) all the blinds or shades. The cheery greeting your home gives to people will give them an immediate impression as to how they FEEL about your home. If you have pets, be sure to pack away all their toys and dog foot or kitty litters. Keep your home smelling fresh and clean that doesn't repel the prospective homebuyer.
Flooring is one of the most important features homebuyers will judge. Clean the carpet and don?t request that buyers take off their shoes. Do everything in your power to welcome visitors and keep them there. Any excuse you give them NOT to view your home will lower your numbers. Remember the more people who view your home, the better chance you have in selling it.
Replace bathroom fixtures with the newer ones ?Hollywood lights are out. Make sure the bathtub is scrubbed clean as well as shower stalls. Buy a new shower curtain, if necessary and caulk around tiles in the shower and tub. Be aware that bright colors or children's colors may be a turn-off to new buyers. Paint your walls with neutral colors such as beige or off white.
Take out the clutter, garbage, stinky shoes, and put your dirty clothes in the hamper. It's very important to have those beds fixed in the morning too! Clean the sliding glass door to the patio as well as the patio furniture. Cut and trim the grass often for a fresh, clean smell.
People want to imagine their families living in their future home and you have the ability to set the stage. The home should be complete with bar stools at the breakfast nook, soft lighting, and nice furniture. Remember, the backyard has become an extension of the home. Show off your BBQ, patio furniture or children's play area in a way that they feel their own family would enjoy.
If you have a pool, have the pool guy come over so your pool is sparkling clean. Buy some Tahiti candle torches for a tropical look. If you have a bar, place plastic glasses and trays as though you were ready to have a party. If you don?t have a covered patio, you may want to make a small investment by buying a canvas cabana that warms the heart and sets a romantic mood. Put some candles on your patio table and accentuate with lots of plants surrounding the patio.
Blinds, plantation shutters, and Roman shades are in. The least expensive, but most popular choice, is to replace your verticals or outdated mini-blinds with wooden blinds. They?re easy to install yourself and will make a big difference in the overall look of the home. You may find some very nice Roman shades that are reasonable and can be used in lieu of curtains as a trim. Curtain panels from the high ceilings will serve as a window treatment and add elegance or magnitude to your room also.
Make sure your kitchen and bathrooms are always clean and remember that homebuyers will look in your pantry and closets. You can always fake it by cleaning the sinks every morning before leaving for work and wiping down the mirrors if there are any noticeable spots. Never leave dirty dishes or pots and pans in the sink. Just hide them in the dishwasher.
Dare to be open enough to get opinions from your friends, neighbors, and realtor. Ask if they have any suggestions as to how to arrange your furniture and be willing to give it a try to see how it looks. Their perspective may make a big difference in your entire floor plan. People are looking for space so you want to do whatever it takes to make your home look open and spacious.
If you feel that your bottom line can handle more expensive upgrades to compete against other newer homes, you may want to replace old carpeting with 18" tile and new carpeting in the bedrooms with a thick pad. I wouldn’t suggest changing your countertops to granite or changing the kitchen cabinets as that would be very expensive and may not be compensated unless you are doing a total renovation.
Selling a Home - The Preparation Stage There are certain processes that are vital in any endeavor. And selling a house, being something that truly posses its own difficulties, also require some activities that would prepare it for the subsequent processes. Here are some of the initial stages that mark the preparation of your house for sale.
Getting started
You want your house to be impressive and friendly enough with future buyers? Then clear the clutter. This might be among the most difficult thing you would do with your house. During your years of ownership, you might have attached emotions into your house that it would be hard to detach yourself from it. But this is more than that.
Years of emotional attachment could mean years of clutter collection. We collect all sorts of materials that could be difficult to separate ourselves from. This clutter would be evident on the top shelves, drawers, countertops, closets, attics, garages and basements.
Well, if you want to sell your house immediately, then you must let the buyer see more open spaces. Look then at your house from an anonymous point of view. Try disconnecting your emotions for awhile and see it from another person's eyes. If you can't do this then find someone who will gladly do it for you. You might not realize the extent of help this activity could bring but you would soon find that the precious materials in your eyes are not as much precious from the view of another.
This can't be done unless you start thinking your house as a commodity. If you would have noticed, when you buy a house the real estate agents would refer to it as your "home" but if you are selling one, he would make it a point to call it as "property". This helps the process of realization occur faster since words connote even the emotions that are embodied in each article.
Your realization must come from the point that it is no longer your home but theirs. By doing this, you will re-channel possibilities that could inadvertently make the selling a longer process.
Separate the person from the personality
When selling a house, be prepared to separate even the most valuable things from it. It would do you no good if you would leave picture frames with your own photos on it. Instead, leave anonymous items that would make the buyer feel that this is a potential home for him and not a trace of your own personality could be found.
If the buyer of your property sees anything that would remind him that this is not his home yet, such as a family picture hanging on the wall, you could shatter their hopes that this is the potential home for them. These would leave your marks in the house which in turn, could repel the prospect of recreating the personality of the home from their own point of view.
Remove all things that would remind the buyers of the memories of the previous owners. Put them all in storage somewhere apart from the attic, garage and basement.
The two suggestions we have given here are not only effective for making your house a bit friendlier for sale. This also eases the hard process of letting go of something you have owned yourself for long. Undeniably, this would take much effort on your side since it is not that easy to make you forget of something you have accustomed yourself to love.
Are There Advantages To Renting A House An apartment house is obviously not the place for a family with children. It is a poor emo¬tional climate for them, when they must always be quiet so as not to disturb the neighbors, and when they have little opportunity to get outdoors and run and exercise, and shout as they ought to be able to do. If they must always be afraid of getting in someone's hair, how can they grow up normally and naturally? Life can be so much more interesting for them if they can be in a place where there are trees to climb, pets to love and care for, and where they can feel that these things belong to them. A public park helps, but it is not nearly as good as a place of their own.
If you think an apartment is not the best place for you to live, perhaps you can find a house to rent. This also has its advantages and disadvantages. You are not tied quite so securely to one place. If you are not too sure how long you will be in a place, or are subject to sudden transfers by the policy or caprice of your company, or if you are the type that takes sudden notions to quit and try your luck somewhere else, then you should rent, and not try to buy or build a house.
Renting also has the advantage of relieving you of some of the responsibilities that go with owning a home. When the roof leaks, just call up the land¬lord and ask him to take care of it. If you need paint or repairs, let him look after it, and pay the bill. When the tax collector comes around, it is not your problem. You do not need to worry about deprecia¬tion. If your family outgrows a house, you can move into a larger one without too much trouble and ex¬pense.
It is well to remember that money paid out in rent is gone completely. If you had bought the house ten years ago, and had made rent-like payments for ten years, you would have accumulated a considerable equity in the house, and you would also have bene¬fited from the large increase in property values dur¬ing that same period. Buying a house gives you some¬thing to sell when the time comes to move.
There is not much point in having a house and land, if you do not find pleasure and enjoyment in taking care of it. If the yard is so large as to be a burden to either the husband or the wife, then they would be better off without quite so much. As long as maintaining a house and garden can be fun, all is well, but what future is there in having to work yourself to death in order to live in fine surroundings which you do not have time to appreciate? Enough is enough. There are two extremes to avoid—a spa¬cious house and wide-spreading lawns, or a tiny house and no lawn or garden. Let's not overdo it either way.
Renting should be thought of as the short-term solution to the housing problem. Let us not rush out and buy a house, and get stuck too permanently in one place. Don't be in too big a hurry to buy. Rent¬ing will provide a place to live, without too much capital investment, and will permit you to move without too much trouble, if necessary.
If you have moved to an entirely different part of the country, you should be careful not to buy until you have decided for sure that you intend to stay. It may also be better to rent for a year or two, until you discover what town or what part of town is best for you.
Sometimes a good house can be rented for a year, with an option to buy included in the contract. This gives you more time in which to make up your mind.
How Do I See the Value in the Apartment I'm Renting? Finding the right apartment can be tough. There are so many apartments out there, and there are so many factors that go into your decision in choosing which one to call home. The key is to look for the best value – not just the actual monetary value of the apartment, but the personal value to you and your lifestyle. While the overall value of an apartment will differ from person to person, there are several categories that should be considered by everybody looking for a new apartment.
Location, Location, Location
When determining the value of an apartment, location is a huge factor. How far away is it from work or school? Is it close to grocery stores? Do you really want to live in a busy downtown area, even though the price might seem right? Although that apartment with the swimming pool and the really big bedrooms might seem like the obvious choice, but if it takes more than an hour to get to work, is it really worth it? How Much of that Apartment Are You Going to Use?
One of the best ways to determine the value of an apartment is to compare how much space you get versus how much space you will use. How big are the bedrooms? How much storage space is there, and more importantly how much storage space do you actually need? If a massive walk-in closet is just going to go waste, you’re not getting the most value as possible out of that new apartment.
Going beyond your own apartment, what else is there inside the building? Does the apartment have a laundry room or a convenience store onsite? Are there any extra perks, such as swimming pools, saunas, party rooms and squash courts? And if there are, does it cost anything to use them, or is this cost built right into your rent? If it is, and you don’t plan on actually using any of these services, you might want to look elsewhere.
Management and Tenants
The structure of the building must be taken into account when trying to figure out the value of an apartment. For example, does it have concrete walls between apartments to block out noise? As well, what is the overall cleanliness of the building? Don’t just look at your apartment, either – take a close look at the common areas such as laundry rooms, lobbies and elevators. The upkeep and maintenance of these spaces is perhaps the easiest way to evaluate the building’s management team.
The level of service provided by the apartment’s management team is perhaps the biggest factor in determining its value. Is there an onsite property manager? What about an onsite security, or a superintendent who can deal with emergency calls any time of the day? The most valuable apartment to live in is the one where you can trust and count on the management to serve and help you when you need them.
You might also want to consider the demographics of the apartments you look at. What sort of people do you want to share a building with? Each apartment has a different feel to it, whether it’s populated by a lot of young families, university students, seniors, etc. If you value fitting in with the rest of the tenants and looking for social opportunities in your building, the demographics could weigh heavily on your decision to rent there.
The Bottom Line
Of course, the actual monetary value of an apartment is hard to ignore when assessing its value. How much is the rent? Is parking included? What about utilities? With rising gas and hydro costs, knowing how much you’ll have to pay each month on top of the rent is vitally important.
These are just a few of the guidelines that you can use when determining the value of an apartment. Ultimately, the decision of where to rent is not only based on which one has the cheapest rent or the most onsite amenities, but on your own personal tastes and lifestyle as well. Getting the most value out of your apartment is a balancing act, as you have to weigh all of the positives and negatives of the entire package before reaching your final decision.
Leasing – Why A Renter Should Know What "Habitability" Is Before Signing The Lease In a rush to find a suitable place to live, many California renters do not understand the obligations that their landlords are expected to adhere to or what their obligations should be in renting any apartment, condominium or home. While most renters are more concerned and occupied with moving issues or other details of the lease, it still is important to know what the term “habitability” is and what it means.
Habitability is basically the minimum requirements that make a rental a suitable place to live in and for California renters (codes are likely to vary for different states) those legal requirements are covered under California Civil Code Section 1941.1. The following lists the general, basic legal requirements that both the landlord and tenant is required to adhere to when renting in California.
For more information on this topic, a potential renter should do an online search on his particular city’s resources for the procedure required in correcting any problem that is violated by his or her landlord. After doing some general research and inquiry, any legal advice regarding a potential problem should be sought from a qualified legal professional.
Landlord’s Legal Minimum Obligations
The landlord’s minimum “habitability” obligations are: 1. Effective waterproofing of roof and exterior walls, including unbroken windows and doors. 2. Plumbing or gas facilities installation, maintained in good working order. 3. A water supply capable of hot and cold running water, fixtures and connected to a sewage disposal system. 4. Heating facilities that are maintained in good working order. 5. Electrical lighting and electrical wiring maintained in good working order. 6. Building and grounds kept clean, sanitary free from all accumulations of debris, filth, rubbish, garbage and rodents. 7. An adequate number of garbage receptacles. 8. Floor, stairways and railings maintained in good repair. Tenant’s Legal Obligations A Tenant has an obligation to a landlord to reasonable care and use of the rental. His or her “habitability” obligations are: 1. Keep his or her part of the premises as clean and sanitary as possible. 2. Dispose of garbage and trash in a clean and sanitary manner. 3. Properly use the plumbing, electrical and gas fixtures and keep them as clean as their condition permits. 4. Nor permit any person on the premises (tenants or guests) to willfully or wantonly destroy, deface, damage, impair or remove any part of the structure, facilities or equipment. 5. Occupy the premises for sleeping, cooking, dining or other purpose for which they were designed or intended.
For every nightmare story of a “slum lord” exposed in the major media there are equally as many stories of tenants who destroy and excessively damage property that don’t make the news. One of the most famous stories that did make the news was of actress Shannon Doherty, (best known for her work in Beverly Hills, 90210 and in Charmed), who allegedly destroyed and damaged her posh rental in Los Angeles. While most renters don’t have the fame and celebrity of Ms. Doherty nor her past destructive tendencies, the above guidelines are written for responsible tenants in California who need to know what their rights and obligations are before they sign the lease and what are the legal steps provided by this civil code that they would need to take to correct any potential problem. Knowing this information before you sign the lease can assist you as you shop for a rental and to avoid any potential problems with your landlord when you actually move in.
Renting a Place – Use this Walkthrough Check List Once you have decided to live in a rented or leased home you must choose the place with care. Whether brand new or used you need to ensure that you do not sign a contract on a place that will become living hell with peeling walls, dripping faucets, or odors.
Advanced property management companies provide a ready to use check list which you can use during your walkthrough. This will ensure that you are not responsible for any pre-existing problems or faults. Most home owners or managers will do a move-out walkthrough to ensure that the leased or rented home is left by you in good condition. If any major damages are noted then you will have to pay for setting right the problem. When you examine an apartment or house be vigilant and look for:
• Leakages. Try and see if there are any wet walls, peeling walls, or cracks. Even if there is a fresh coat of paint you will be able to feel damp on walls by placing your hands on different parts of the walls. Look for stains in the paint these are sure indications of water damage.
• Check that all appliances are in working order. Check utilities like gas, electricity, and water. Make sure there are no leaking faucets, clogged drains, or malfunctioning sinks or toilets.
• The front door and all other doors must be solid and not hollow, shut well, and have secured latching systems. Read through safety recommendations given by police departments and keep the recommendations in mind while checking doors, windows, and so on.
• Look for pests and mold infestations. Check wooden doors and cupboards for smells and fungi.
• Check whether the rental place has sufficient storage space and shelves for your books, clothes, and nick-knacks. Make note of existing furniture so that you can then decide what to bring with you and what to store.
Note down how many rooms the place has, whether there is a basement for laundry and any common areas like a patio or terrace. Find out whether tenants are permitted to store things in the basement area. Ask about secure parking, whether plants and pets are welcome, and security arrangements.
Important things are: the condition of the neighborhood, the crime rate, who stays next door, what the tenancy rules are, transportation and proximity to schools, colleges, hospitals, and parks.
Ask old tenants, colleagues, as well as neighbors about the apartment. Casually chat with locals, shop owners, and restaurant owners or waitresses about living in the area. Be smart and look for clues in their answers. For extra safety, check with the police about how safe the neighborhood is. These days one cannot be too careful and crime rates are on the rise.
As a renter you need to weigh the pros and cons carefully and ensure that the apartment or house really meets all your requirements.
Renting A Property & The Rental Agreement There are many reasons why people opt to rent than buy their own homes. Location and accessibility to work may be one thing. Convenience is another reason allowing them more time for leisure and not tied up to home maintenance. Still another reason may be they want to keep their finances flexible. But whatever the reason may be, the most important thing to learn is the rental process.
Anybody who wishes to rent a property needs to have a rental agreement with the owner. A rental agreement serves as a contract between the two parties and should be written. It is often known as a lease when real estate is rented. The agreement should specify the parties involved, the property, the term of rental and the amount of rent. Under this agreement, the property owner may be referred to as the lessor while the lessee is the renter. In addition, the terms of the contract should follow state rental statutes and ordinances.
Real estate for rent may cover an apartment, house, building, business office, land, farm or any space. Access to other common areas may also be included. A rental agreement can go into other details like the present condition of the property and how it should be used and who can use it.
For a housing lease, the agreement may state whether the renter is living on his own or with family and children or with friends. The rights and obligations of both parties are likewise specified. A renter, for instance, may have rights against intrusions by the owner or landlord except during emergency cases.
The usual term of the rental is either monthly or annually. It can be on a fixed term meaning the renter will occupy the property for a specific period of time. This type of contract should be strictly followed because if not, the renter could be held liable. The agreement may also be renewed automatically if a renter stays beyond the agreed term.
A more flexible term is the periodic agreement which allows renters to terminate the contract for any reason and in any month. Landlords can also increase the rent any month they want. Before terminating the contract, notice should be given at least 15 days before the end of the month.
Payment terms may be monthly, yearly or in advance. Normally, renters are asked to pay the first and last month’s rent and a security deposit. The security deposit serves as an escrow deposit and held by the owner or landlord until the property is returned in good condition.
To ensure the proper maintenance of the home or property as well as safety of the renters, owners and landlords can set rules and regulations. Apart from the property itself, the rules may cover shared areas and facilities like the laundry rooms, storage areas, swimming pools and parking spaces.
If you’re planning on renting a home or apartment, be sure that the agreement you make with the owner is written. Read the details of the contract carefully before signing it. If you don’t fully comprehend the terms and conditions, seek advice as much as possible particularly from a real estate lawyer. Keep in mind that the contract is a legal document that should contain the terms you agree to follow.
A sales
contract is a written, bilateral, executory, assignable contract that
is binding on all assigns and heirs. Parties to a residential sales
contract are usually referred to simply as buyer and seller.
When
a properly prepared offer is accepted and signed by the offeree then it
becomes a contract of sale, or sales contract. A sales contract is an
agreement where one party agrees to sell and another party agrees to
buy certain real property at the price, terms, and conditions stated in
the contract. In a strict legal sense the contract is the agreement
between the parties, not the piece of paper. The piece of paper is
merely the evidence of the agreement.
In
addition to being the agreement that binds a buyer and seller
concerning a particular piece of property, the sales contract also
serves to direct the terms, conditions, and mechanics of the closing
itself. It is important that the parties involved agree in the contract
on all of the pertinent terms and closing details, including proration
date and date of occupancy.
An executory contract is one in which
one or both parties has not yet performed, it is not yet completed.
Because it is a document that contains details that have not been
performed, the sales contract is referred as an executory contract.
A
contract that has been executed, on the other hand, is one that is
completely finished - there is nothing left to be done. All terms and
conditions have been met and there has been an exchange of a deed
(thereby passing legal title from one to another). An executed document
is no longer a contract. It is merely evidence of an executed agreement.
Brokers
frequently use standard contract forms for sales contracts. They may
assist their clients or customers in filling out these forms, and may
give advice, as long as they do not charge an extra fee for this
service. If a broker charges a separate fee, it would constitute the
unauthorized practice of law. A valid legal contract requires legal
consideration. Legal consideration for a real estate sales contract
must be something of value. The requirement for legal consideration is
what distinguishes a contractual obligation from a gift. It is usually
the purchase price of the property expressed in a dollar account.
Most "guru's" are currently spouting about how good real estate investments can be. I won't seek to reinforce their sales pitch, nor will I argue with it. Real Estate can be a great investment, but if you not careful it can also be a financial disaster. You may ask who I am to speak on real estate. Whilst not a multi-millionaire selling my next great book I can give you some practical advise of someone who rented out for over five years and explain the pitfalls and the success stories.
Important Lessons:-
1) Good Insurance:- number one is not an option - its a necessity. Ensure your asset is fully insure both normal house insurance and extras like tenant damage and loss of rental income. Given a disasterous tennant this can lessen the pain. Be WARN! Don't underinsure your house, if it burns down, particularly if there is any suspicion of arson the insurance company will do their own independant investigation and here is the real kicker - THEY WILL CHARGE YOU FOR THE PRIVALEGE - thats right, read the fine print, the insurance company before paying you out will minus their costs - i.e. $100,000 policy - $20,000 investigation means only $80,000 to you. Read the fine print, the insurance despite their ads is not your friend if a million dollar house and therefore a million dollars on the line, don't expect the insurance company to be happy to pay out, if they can find a way to slime out of the policy they probably will. An insurance policy is a contact make sure you read it. Make sure you chose an insurance policy not just on price but also on good reputation and on company strength. (Want more advice try Real Estate Underground - Click Here!)
2) A Bargin isn't always a bargin:- When purchasing a house remember to be very careful. Don't buy on emotion. Never buy without visiting it several times on different days and times. I know of a nice suburb that has nice houses with big yards, but the smell of the local slaughter house is enough to make you want to vomit. Remember you only become aware of such things by visiting the house personally. Go at least one time without the real estate agent, speak to the neighbours and ask if they like living there. When buying a fix it uper check how easy it is to fix up. Does it contain asbestos, lead paint or like harmful products that are going to cost you a fortune to remove? Would you like to live there? If you don't then don't expect others to. Remember whilst more expensive houses may cost more they tend to attract better class of tennants and less maintenance costs as well as higher rental returns. Remember there are always more houses out there it the buyer is stuck on a price thats no good for you, don't be afraid to walk away. Never buy a house on emotion! (Want to learn more on fixer upper fortunes then click Here!)
3) Do it yourself:- Unless you have a huge portfolio of real estate under your control try to do it yourself and you will save alot more. If you engage a real esate agent to rent your house they will charge between 10%-15% of the rental income, in return you get very little. They will rent out the house, may inspect once or twice a year (some agents will charge extra for this privallege) and you don't have the choice of the tennants. Do it yourself and save the money. Pay a small fee to join online real estate black list - (this is a list that blacklists bad tennants) and you are in the same position as them. A real estate first goal is not to please you but to ensure they get their cut - this may mean they make decisions that are not in your best interest, but in theirs (e.g. they may get kick backs from their trademan and other relationships - in my case they repaired a hot water cyclinder without my permission - the cyclinder was less than a year old and still under warranty - thus I could of got it repaired for free, was I angry - you bet). Don't forget with agents its your house, if they are not keeping you satisfied, change agents. In regards to maintenance trademens are hugely expensive, whatever you can do yourself, do. For example, changing a tap washer is an easy thing to do, some plumbers charge $100 just to pay a visit. (Want to Buy and Sell Real Estate from home? Click Here! )
4) There is more than Rent. Remember to factor in the rise in real estate prices. You may be able to buy a cheap house in a country town, but if that town has shown no growth and is unlikely to grow then you will not be able to resell the house at the later stage for a much increased price. What creates regularly increasing house prices is even increasing demand. Be careful buying in places like a mining town or a town with one industry, mine resources are limited and one industry towns can turn into ghost towns overnight if the main factory closes. Play it safe buy in towns and cities where growth has been and will continue to be good. Therefore don't just consider the rate of return on investment in terms of rent, but also factor in capital growth. If there is likely to be little or no capital growth the rental returns need to be higher - if they aren't, forget it and keep looking. When a place is vacant charging too high a rent will ensure it takes weeks to fine a new tennant - every week it is unrented is costing you between $5-$10 a week in rent - (e.g. which is better renting a house for a year at $400 a week or $380 a week - if the fails to rent for four weeks at $400 even if you finally rent it at $400 you have lost out ($20 extra rent X 48 weeks - ($960) (4x$380= 1520)- if you'd rented it straight away at $380 a week - you would have been $560 better off for the year)
5) Good Tennants are worth keeping. If you have good tennants who are looking after the house, you don't alway have to keeping raising the rent every year with the general market increase - reward good tennants and increase your likihood of retaining them by giving them a discount on the market rate. If the tennant puts in a garden and trees and other landscaping, the capital value they are adding to your property may mean you should not hit them with the highest possible rent. Tennants who damage a house or fail to pay rent can cost a fortune. It normally takes 6 weeks or more to evict a non-paying tennant, that can mean a big loss, doubly so if you are paying the mortgage.
Finding a Good Tenant - Advice for New Landlords The first meeting or telephone conversation with your prospective tenant is the beginning of the screening process to find a good tenant. If they are viewing the rental property - are they on time? Are they smartly dressed? Is their car well mantained? Do they wipe their feet before entering the property? Small details like this can give you an insight into what type of tenant they are likely to be. When you question them about such things as employment, references or rental history are they happy to provide the answers? If both parties are keen to proceed with the let, you will need to put things in writing. At this stage the prospective tenants may decide to pay a holding deposit, while you go through the screening process necessary to complete the tenancy agreement.
Tenancy Application
It is strongly advised that as a first step you get any prospective tenants to complete a full application form. This needs to include: identity evidence, income and credit history, past accommodation and full employment details, references and other details, such as: any children, pets, car owner, smoker or non-smoker, the intended number of people living in the rental. The application should also specify the length and type of letting, the basic terms and the rent and deposit required. The application should also inform the tenant that credit checks and references checks will be made in accordance with the Data Protection Act.
Reference Check
Don't ever be tempted to not check the prospective tenant's credit or identity history, and do take up the references before deciding to enter into any tenancy agreement. Consider asking for a guarantor if you are not 100% sure. All these steps are much easier than having to evict a problem tenant. However 'nice' your prospective tenants seem don't be lulled into taking chances - your screening process is your insurance.
Tenancy Agreement
When you decide to let your property your new tenant will need to sign a Tenancy or Letting Agreement. This can be drawn up by anyone (and some landlords prefer to have it checked over by a solicitor) - the signing should be witnessed by an independent witness. This should be accompanied by a full inventory and statement of condition of the rental property. If you are arranging a let for more than three years you will legally need to get a Lease by Deed arranged by a solicitor.
What makes a Top Tenant?
• makes rental payments on time • complies with the conditions of the tenancy agreement or lease • causes no damage to the property • keeps the property clean and tidy - rubbish is properly disposed of and any garden area is maintained, such as cutting the grass • noise levels are kept to a minimum • notifies the landlord about any repairs, before any further damage occurs • allows any necessary access for servicing or maintenance • gives plenty of advance notice when vacating the property
What Makes a Good Landlord? Top Tips to Bring Success, Gain Respect and Popularity from Your Tenants Letting your property is a proper business and to be a profitable landlord you need a business plan and procedures in place that you will need to complete, in order to rent out your property successfully, such as: a proper application and screening of prospective tenants, a carefully drawn up tenancy agreement, regular maintenance of the property, and an up-to-date knowledge of housing regulations, etc.
Top Tips on how to be a good landlord:
• provide a copy or access to the Tenancy Agreement • provide a copy of the full inventory - stating condition of all fixtures and fittings - agreed by the tenant • keep the rent at or near market levels • make yourself readily available and contactable • provide emergency contact • encourage the tenant to report any dis-repair or faults promptly • deal with any repairs promptly • maintain gas and electrical installations, heaters and water heaters and sanitation in proper working order • arrange annual checks by a qualified electrician of the electrical supply, fire detector, alarms, etc - this is a legal requirement • arrange an annual gas safety certificate by a CORGI registered gas fitter - this is a legal requirement • replace any damaged furniture or fittings • maintain the interior and exterior decor - this will attract good tenants • ensure the safety and security of your tenants - check alarms, locks and fire extinguishers are working
Treat your tenants as you would like to be treated.
Some landlords like to carry out inspections, usually every 6 months, but many tenants find this invasive and feel it suggests that they are not considered trustworthy. Inspections also make the property feel less like theirs, which is not ideal as people tend to take more care of their own homes. If you feel happier inspecting your let, make sure you give your tenant plenty of notice - always at least 24 hours - and offer different times to fit in with their lives. If problems are arising the tenant should be notified in writing that this is likely to incur them added costs for cleaning or repairs.
Tenancy Deposit Scheme
The deposit now has to be lodged with th custodial scheme, in case of any dispute at the end of the tenancy agreement.
The main thing to remember is that you may own the property, but for the rental period it is the tenant's home.
Rent Collection, Best Practices - Must Read Tips for Landlords Tenant Screening
The first and maybe the most important step is that you properly screen applicants before they become your tenants. It is always worth the time and money to obtain a credit report, an eviction history report and perform a criminal background check on your applicants. This can all be easily obtained on the internet. Take the time to also call the current and/or previous landlord(s) for a reference; you may be very surprised at what they tell you. Another great screening method is to go and visit the property where the applicant is currently residing, take note of the condition of the property and how clean the tenant keeps the property. And after all of this screening, don’t end up settling for tenants that did not meet your qualifications. Take the time from the start to find a qualified applicant and save a lot of time, money and headaches in the future.
Rent collection
It is important for the landlord to be consistent right from the beginning of the tenancy. Explain to your tenants in detail, the terms of payments and the consequences for paying the rent late. Send out a late notice the day after the rent is due, don’t wait until your tenant incurs a late fee. This will all help to enforce what you told your tenant from the beginning, that late rent payments are unacceptable.
Precedent must be set from the beginning, as soon as the rent is late. If you start to accept excuses from the tenant, you will loose footing. This will give the tenant the assumption that paying the rent late is ok if they had some kind of problem, or a came up with a good excuse. The next time the tenant is short on the rent, they will expect you will accept the situation, which is not a pattern you want to create. This will set the tone for the tenant and reinforce that late rent is unacceptable and will eventually lead to a legal matter.
Keep all communication in writing, either sent through the mail or email in order to avoid the "he said, she said" scenario. Send a letter out as soon as rent becomes late and the very first day after any grace period (late fee) specified in your Lease. Include the late charge if there is one and do not make "deals". As soon as you negotiate with your Tenant on late charges or fees, the tenant will tend not to take a Landlord seriously and will likely try to push things farther.
It is a good idea to send a sequence of notices. Mark on a calendar when you will send these notices out, if need be.
Check with your local jurisdiction to find out the regulations for eviction. Each state, county and/or jurisdiction may institute requirements for how many days may pass before legal proceedings can be brought against the Tenant. There may be certain notices required such as a "Notice to Quit," before you may even file in a local court. If after several attempts are made to collect the past due rent, follow your jurisdiction rules as soon as possible. Eviction can be a lengthy battle, especially in larger cities.
Be sure and remember it is important from the beginning of the Landlord/Tenant relationship to set an example in your collection efforts. Do not get emotionally involved. Keep it business, after all you invested in order to make money not lose money.
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When buying a home for the first time it is most likely the biggest financial decision you have made thus far. Now you are at a point when selling your home, for what ever reason, is just as big of a financial decision as buying. No matter what the reason for selling your home you still want to get as much of your investment back as possible. There are 3 key points to consider when pricing your home, market conditions, targeting, and price.
Having a good understanding of what the local real estate market is doing is important when determining to put your home up for sale. Depending on your circumstances it may be wise to hold off until the real estate market conditions improve. However, there are times when you need to sell your home as quick as possible. When the real estate market is humming with activity and there are more buyers than sellers of quality homes you will likely get more return on your investment when selling your home. Just the opposite may occur when there are more sellers than buyers. Different times of the year can affect both buyers and sellers. By knowing the effects of the seasons on the real estate market you may find your home will sell at a higher rate of return during that time frame. For example, during the spring and summer months there tend to be more sellers which, makes the market highly competitive. However, if you list your home in the fall and winter months there may be less competition especially if the climate is harsh.
In order to sell your home you have to have the resources to target potential buyers for your property. Real estate agents have the ability and know how to do just that. With the use of media, technology, and networking real estate agents can give your home the exposure needed to sell your home. The Internet has become a powerful tool in today’s real estate market for getting your home in front of potential buyers. If you home is not listed in with the local real estate listing service you could potentially be cutting out 75% or more of interested home buyers.
Finally, the most important thing to consider when selling your home is price. Typically, when the home you are selling on the real estate market is well priced it will sell quickly. Buyers these days are well educated and they typically use real estate agents to find homes that fit their needs. If your home is over-priced it may get over-looked for the simple reason that it is over-priced.
If you are planning to buy a home or sell a home, use Richmond Homes for Rent to view houses and homes for sale nationwide. Richmond Homes for Rent strives to become the most complete index of real estate listings on the web to help you find a home, house for sale or apartment to lease. Our listings include houses for sale, condos, townhouses, new homes construction and oreclosures. In many areas, we give you direct access to homes for sale on your local Multiple Listings Services (MLS), the source real estate agents use to view real estate listings.
Get tips from our News or Help Centers above that will help you prepare each area of your home before selling. Follow these guidelines to get your home into top selling condition. Just a few small steps can get you the highest possible price.
Rental home listings are searchable no matter the type of property you have in mind. We have houses for rent, condos, townhomes, duplexes, studios, and vacation homes for rent. In just a few minutes you can have a free rental or sales listing placed that buyers and tenants can use to find you. Property managers, tenants, buyers and investors alike will find that this a great way to find affordable housing and other real estate in a convenient forum. With free home listings you can find exactly what you want in the location you need. Landlords who work with property near a college, university, or other schools and campus locations can take advantage of this easy and convenient way to showcase properties or locate the ideal home for sale or rent.
Why Sell Using Richmond Homes International Listing Service?
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Keep Current On The Latest Local, National and International Real Estate News
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Richmond Homes for Rent will keep you up to date on all of the newest listing of homes for rent.
Search all homes for rent listings for the latest information.
