Posts tagged: real estates

Utah real estate agents are continuing to adapt to an ever-changing market. For many years, Utah has been unique for its excellent location in the west without the soaring prices of neighboring states like California. In fact, having a cheaper cost of living than California has given Utah a special economic edge. Unfortunately, Utah is also finding itself struggling with some of the same issues as the golden state, such as overpopulation and rising housing prices. Utah is, however, currently looking at a low 3.2% unemployment rate for 2017 and part of 2018.

How is overpopulation effecting Utah? Well, not having enough housing causes it to be in higher demand, and there is a real danger that overbuilding could reach the mountains and lake areas, which would mean that the number of people looking for housing would have exceeded the amount of space available. While this may be good short-term news for Utah real estate agents, it may not sit well for the state as a whole in the big picture.

If people living in Salt Lake City, Utah’s capital and largest city are forced to move farther out it could also be treacherous for the local economy. Salt Lake City homes are already experiencing steep differences: homes are selling for as little as 200,000 or as much as over one million. Salt Lake City realtors may need to focus on accommodating the number of people living in the area. One thing they can do is perhaps focus on building more multi-family units, although this is an issue that Utah real estate agents may not be able to solve on their own.

An everlasting problem in Utah and all over the country seems to be rising cost of living. Houses for sale in Salt Lake City, as well as rental units throughout the state are experiencing a higher-than-ever price. Meanwhile, with low unemployment, wages are stagnant. This presents a problem when houses for sale in Salt Lake City exceed the income of the average worker, and people begin to move farther out. If this problem becomes too extreme, Salt Lake City realtors and Utah real estate agents in general will have their work cut out for them.

Unfortunately, experts are not predicting a reversal of these trends any time soon. In fact, Salt Lake homes for sale will probably continue to become more expensive. How the wage situation will change is also debatable with no clear end in sight. Technological changes will no doubt have an effect on things; for example, the internet has become increasingly popular over the last two decades, and in more recent years, Smartphones have taken over the industry.

Now, when looking for an apartment or house, you could go on Craigslist or simply Google, “Salt Lake City homes for sale,” or “homes for sale slc” and find actual Salt Lake City homes for sale right there on the internet. Or you could type in “Utah real estate agents” and be connected to someone directly. The possibilities are endless.

Ultimately, the situation is going where the economy takes it, and a lot of this is dependent on the government and decisions they are making. However, the market for Salt Lake City homes will probably remain high. People will continue to search online for “homes for sale slc” with hopes of finding some affordable Salt Lake homes for sale.

However, with the increase in population over the past two decade, the cost of living is on the rise in major part due the cost of housing. And if real estate continues to increase, Utah real estate agents and brokers alike may find themselves in the cross-hairs if and when faced with another bursting market cycle.

Although, we have been experiencing, one of the longest, prolonged period, of low – interest rates, and, thus, what’s often, referred to, as cheap money, few individuals, seem to fully appreciate, what this means to the real estate market, and why! Very recently, the Federal Reserve, lowered interest rates, an additional 0.25%, so how might that affect, the overall market – place, and the essentials of the housing markets? With that in mind, this article will attempt to, briefly, explore, consider, examine, review, and discuss, 5 possible ways, this economic reality, will probably, affect, many aspects of this reality.

1. Mortgage rates, availability, etc: When overall rates fall, there is nearly always, and an immediate, or near – immediate impact, on mortgages! This translates to, lower monthly carrying charges, on a monthly basis! When it costs less, it means, buyers are able to purchase, more home, for their dollars! It means, it’s possible to proceed, with purchasing a more expensive house, and making the same payments. Often, this results in rising costs of houses, because, when more people can afford to buy, the economic concept, of Supply and Demand, kicks – in!

2. More house for your payments: Many perceive, this permits them to pay more, and, therefore, do so. They, often, fail to consider, this may, in the longer – run, when/ if, interest rates go up. the value of the particular property, might be adversely affected! One must also, consider, whether we are experiencing, a buyers, sellers, or neutral market!

3. Qualified, potential buyers: Because a major component of the financing qualification formula, used, for securing a home loan, when rates go down, and, thus, monthly installments, do, too, there many be, significantly more, qualified, potential buyers, around. This makes homeowners/ sellers, begin to be, in a more favorable position, because, it increases buyers, and, thus, tends towards a sellers market!

4. Some homeowners might list house, sooner: When prices go up, and demand is boosted, this is often accompanied by, more homeowners, deciding, it may be, a good time, to list their house! In the short – run, there may be one impact, which may be, or not, the same as the one, in the longer – term!

5. More refinancing, more overall use of credit, etc: Many homeowners decide, it’s time, to refinance their home loan, because of the lower rates, and, thus, cheaper money! It may, also, result in, fewer cash – deals, because, it makes more economic sense, to borrow funds, instead!

When rates fall, in most cases, prices rise, and so does demand! A wise consumer, whether buyer or seller, is aware of conditions, and proceeds, accordingly!

When you go to school to become a real estate agent, one of the first things you learn about is Fiduciary Duty. It is a keystone of integrity for anyone in the business, and is discussed again and again in your continuing education as an agent. It is also a basic component of the Code of Ethics to which every Realtor is bound.

But what exactly is fiduciary duty? Let’s begin with a simple acronym: CARLOAD. There are seven tenets which define fiduciary Duty:

Confidentiality-any information divulged by the client is kept in utmost confidence, and NOT SHARED with anyone. Think doctors and lawyers.

Advocacy-the agent has client’s best interests at heart, and will go to the greatest lengths to ensure the best possible outcome for them.

Reasonable care-the agent makes sure all processes are completed in a timely manner, follows up and follows through. Think of your agent as a project manager.

Loyalty-the agent acts in the best interest of the client; every decision and discussion is taken as a representative of the client.

Obedience-the agent who enters into an agreement with a client commits to perform according to their agreement. The agent acts (or doesn’t act) upon the instructions of the client (within the law, of course)

Accountability-the agent keeps the client apprised of all developments in the transaction and keeps the lines of communication open. The agent also double checks all the numbers so there are no surprises.

Disclosure-any information within the scope of the transaction is disclosed to the client. ALL offers are presented to the client, even the “lowballs”.

You will notice the term CLIENT is used throughout the preceding discussion. Anyone with an interest in buying or selling a home can be considered a customer, and an agent has a general obligation to be truthful and reasonably forthcoming to them. However, no fiduciary duty exists. A client is a customer who has entered into a representation agreement with the agent, either with a Listing Agreement or a Buyer-Broker Employment Agreement. Once this agreement is in place, the agent is officially on the client’s team, and therefore MUST act as a fiduciary.

One illustration of the value of this is in the situation of dual agency. Suppose Bob and Betty Buyer are driving down the street and see a Realtor’s sign in the yard of a home. They decide to call the number on the sign, belonging to the listing agent, Sammy Salesman. During the call, Sammy asks if they are represented by an agent, and they reply that they are not. This is an opportunity for Sammy to offer his services to Bob and Betty. This can be an issue because Sammy’s Fiduciary Duty remains with the homeowner, and it may be problematic for him to provide the same duty for the buyers without violating most or all tenets of the CARLOAD; for instance, the duty of full disclosure would conflict with the duty of confidentiality. Not illegal, but obviously a conflict of interest. Bob and Betty are certainly free to take him up on it; by so doing they would be agreeing to limited representation. A far better solution for them would have been to work with a buyer’s agent, who would work in their best interest by virtue of the Buyer-Broker Employment Agreement.

The importance of quality representation is difficult to understate, whether you are buying or selling real estate. By having a pro in your corner, you can be assured that your best interests are being served, and the transaction will come to a successful and satisfactory conclusion.

Since, we are currently, experiencing, an historic period, regarding the ever – increasing, prices, many houses, seem to be selling, for, some people, seem to think, this is the way, the real estate market, always is, rather than considering the bigger = picture! In fact, historically, this market, often, fluctuates, sometimes, proceeding, as a sellers – market, while, at other times, as a buyers, or neutral one! Although, over time, the price of houses, has kept up with, and, even, slightly exceeded, inflation, there is no consistent trend, as to how this occurs! How long, the current conditions, will continue, and, what might, occur, next, as well as the timing of, this, is uncertain, and, of course, not guaranteed! After, over 15 years, as a Real Estate Licensed Salesperson, in the State of New York, I have seen, many different market – conditions, and, believe, in the bigger – picture, and over – time, there are, at least, 6 issues, which impact pricing. With, that in mind, this article will attempt to consider, examine, review, and discuss these, and why, they matter.

1. Supply and Demand: In the longer – run, the economic concept, of Supply and Demand, is, probably, the most relevant, single – condition, in what happens to pricing! What this means, simply, is when, the number of sellers, outweighs, the number of potential, qualified buyers, home prices, won’t, generally, move up, but when there is a lack of inventory (homes available for – sale, on market), prices rise! When, things are, in – between, we witness a neutral real estate market! Presently, the reason, we witness, such an extreme, amount of price increases, is, the aftermath of the closing of economies, etc, the lack of inventory, many buyers, etc, and a perception, apparently, indicating it is the time, for them, to act!

2. Overall economy; consumer/ job confidence: Whether, it is the actual, overall economy, and conditions, or, simply, a perception, when buyers are optimistic, prices rise, and the opposite often occurs, when they are pessimistic! In addition, the degree of consumer confidence, as well as belief in job security, etc, makes a huge difference!

3. Perceptions of buyers and sellers: When buyers perceive real estate, as offering, meaningful value and viability, it helps drive them, to offer higher prices, and, even, sometimes, creates bidding wars! However, when sellers, become greedy, and offer their houses, at far – too high, prices, it often, slows this trend!

4. Mortgage rates: When mortgage rates are low, it permits potential buyers, to get, more house, for their bucks, because, their monthly installments/ payments, are lower! The current market, is, sort – of, a Perfect Storm, of low supply, great demand, and historic – low, mortgage rates!

5. Local issues (positive and negative): Many believe, much of real estate, is, local, because local issues, whether positive or negative, often, creates, either, conditions, which make one area, more attractive, or less – so! These include: safety/ crime; conveniences; transportation; education/ schools, etc!

6. How a house compares to similar others: Qualified real estate professionals, create, fully – prepared, relevant, CMA’s or Competitive Market Analysis, which, compares, a specific property, to comparable/ similar ones, on the local market, at that time!

If, you plan to, either, purchase, or sell a home, doesn’t it make sense, to understand, the factors, involved? Will you become a more – educated homeowner, or buyer?

Role of a Real Estate lawyer

First your lawyer will send you a letter outlining what documentation he or she may need from you. Since you will likely be paying at least $1300 plus for legal services, I think it’s important that you know what your lawyer will be doing for you! Below is some detailed information on the role of a real estate lawyer and on what you need to do when working with your lawyer and securing a mortgage. Don’t wait to higher a lawyer just before you taking position of your new purchase, make sure you interview them way before your closing date.

Your Real Estate lawyer should advise you what expenses you’re likely to incur with respect to the closing procedures, including:

Land Transfer Tax

disbursements

legal fees

property tax

If you’ve bought a new home from a builder, the Real Estate lawyer can give you an educated estimate as to how much you should budget for “hidden charges” such as:

Ontario New Home Warranty Enrolment Fee

Hydro and Water meter installation charges

Fencing charges

Grading Deposit charges

many others

If all the conditions in the Agreement have been met and the Offer is firm, the lawyer proceeds to investigate the title to the property. Initials searches include:

utility searches

property tax searches

building, zoning and planning searches

registered title searches

Letters are sent by your lawyer:

to all municipal or regional utility departments to confirm that there are no arrears or outstanding charges

to ensure there are no conditional sales contracts, easements or unregistered agreements, liens

to discover other encumbrances affecting the property or equipment being left by the Seller

Easements are a big issue and cases are always being written up in the newspapers and real estate journals, about buyers who didn’t realize they weren’t allowed to put up fencing or create a parking space because the property survey they were working from didn’t actually show the City’s rights to access the property. Your lawyer’s job is to make sure all this is disclosed to you. Your lawyer will also advise the utility departments of your name and the scheduled closing date, and request that final meter readings be done on the closing date so the final bills can be sent to the Seller.

A Tax Certificate is requested by your solicitor to verify the amount of the current year’s taxes and to ask about any arrears and outstanding charges for taxes. Your lawyer will also write to the Building and Zoning Department to get the full particulars of zoning by-laws and restrictions and permitted uses (so you’ll know if you’re allowed to operate a business from your home or build a huge deck, for example). It’s important that you send your lawyer a copy of the survey for the property as soon as possible – if the Seller has a survey, I’ll get it for you if it’s not already included in the offer documents. If no survey exists, tell your lawyer so he/she can advise how your interests can be protected through Title Insurance.

A Search of Title to the property is begun in the Land Registry Office to make sure the Seller is the true owner of the property, has the right to sell you the property, and that the property is not subject to any encumbrances, encroachments, easements, liens, agreements or mortgages that were not disclosed in the Agreement or Purchase and Sale. You may have heard of fraud cases where people’s homes were sold out from under them by con artists who had no title to the land! This is where your lawyer really earns his fees. This search has to be completed prior to the Requisition Date (title search date) shown on your Agreement of Purchase and Sale.

Other important functions of your lawyer include:

Carry out a search of Executions in the appropriate Sheriff’s Office to ensure that there are no executions against the prior owners of the property that would affect your title.

Prepare and deliver a letter to the Seller’s lawyer requesting that any items revealed in the initial searches be dealt with on or before closing.

Review the contents of the Mortgage Commitment letter your bank will prepare when you arrange your financing, and consult with you about the results of signing it.

Advise you of any closing-day costs related to mortgage financing when your financial institution provides you with a final Mortgage Commitment Letter.

If your lawyer is also acting on behalf of the financial institution (it often happens), he/she will prepare all necessary documentation for the mortgage and submit this package to the financial institution for approval prior to closing:

– Certify title of the property to the financial institution on closing.

– Advise you about any government programs designed to assist home buyers that would apply to you, including Land Transfer Tax Rebate programs, Ontario Home Ownership Savings Plans, RRSP plans, and CMHC 5% Down Payment information.

– Let your insurance broker know the name, address, phone number and fax number of both your lawyer and of the financial institution providing your mortgage. Your lawyer needs a letter confirming that insurance coverage is in place effective on closing – this is super important because the bank will not advance the $ to close your purchase until they know that you have property insurance.

While Ohio real estate law does not require you to have a real estate lawyer, there are certain instances in which having a lawyer may be a good idea. When buying a property that has any common interest developments, it may be difficult for the average consumer to discern between parts of the property that are for one’s exclusive use versus parts that are for community use. Common interest developments, such as condominiums, may have ongoing litigation that may have an adverse effect on the future value of the property. A real estate lawyer can explain what the possible outcomes of ongoing litigation may be, so you can make an informed choice about whether you want to invest in the property. A real estate lawyer can also help ensure that the title to a property is good before a buyer closes on a sale.

Try and find a lawyer who is recommended by someone you trust, such as a friend or family member. Never choose a real estate lawyer simply based on the recommendation of your real estate agent. However, you may be able to find a lawyer who is also a licensed realtor.

You should ensure that the lawyer specializes in real estate law by checking with state and local bar associations and realtors’ associations. The American College of Real Estate Lawyers (ACREL) website provides links to members by state, and has many members from Ohio.

Most lawyers will answer preliminary questions for free. Make a list of your questions and use this list to help you find a lawyer who you think will represent your interests in a competent and ethical manner. Before making a final decision, ask what the lawyer’s charges are. Some real estate lawyers will work on for a fixed fee in more straightforward cases.

Non-Performing Notes (NPN’s) are an excellent way to invest in Real Estate, without getting dirty, or dealing with toilets, termites, or tenants. It involves buying the defaulted mortgage and promissory note from a bank, hedge fund, or its current owner. Now you are the bank, and no one ever calls the bank if the toilet is clogged, so you can have a restful night and weekend.

The promissory note, or note for short, is a secured debt, attached to the mortgage on the house. Depending on the state, the mortgage might sometimes be called Trust Deed, Contract for Deed, or Land Contract, though they are all instruments used to buy a home. Once the note is paid off, the mortgage & note is marked as paid, and the owner has full title to the property.

However, life throws many problems at us, and for whatever reason, someone stops paying the note off. They could lose their job, spouse, or sadly, their limbs and they don’t have the money to make the payments at this time.

When this happens, the banks for the most part really don’t care, and just want their money past due, now! They are not that good at getting them to repay no matter how hard they try, as you can’t squeeze blood out of a rock. Nor do they want the property back. When they can’t get the homeowner to pay, they want to clear this bad debt off their books. They sell them in bulk by the truckload to equity or hedge funds, which then sell them off by the case or the bottle to investors.

These defaulted and secured notes are available for pennies on the dollar. Ideally the goal would be to try to get them to repay. Getting them repaying is goal #1 goal, though it does not always work that way, so here is a list of 12 exit strategies to profit from them as investors.

Since you now own the note, and are now the bank, you can do whatever you want, and if you are creative, you can come up with many ways to exit.

Here Are 12 Ways To Profit From Non-Performing Real Estate Notes:

1. Repay or Modify The Note

The #1 goal is to help the homeowner stay in their house, and since the new owner paid very little for it compared to the value of the property, they can forgive some of the past due amounts, and still make a nice profit, though only If the homeowner wants to stay. You can lower the unpaid balance, payments, interest, or any combination of the three. After 6-12 trial payments to show good faith, we can modify the loan with any term we want.

2. Assumption Of Note By Someone Else

Since we own the note, we can find a family member or friend of the homeowner who would like to move in, and have them start repaying the monthly payments. If they keep paying, there is no need to modify the terms if it’s mutually agreeable to both parties.

3. Resell The Note For A Profit

Many people are looking for NPN’s, and they can be resold quickly for a higher price to another investor. Sometimes this makes sense to get a small amount upfront vs. spending time and money on a note that be a little too hairy, or you need the funds quickly.

4. Short Sale

If the homeowner has equity, a short sale is a good way to let them exit, and get their equity out. It requires our blessing as the mortgage holder, and a Real Estate Agent who will list it on the MLS. It’s a win-win for both parties.

5. Deed-In-Lieu Of Foreclosure

If the person does not want to stay, the next exit would be to ask them to sign the deed over to you in lieu of foreclosing or a DIL. Many times they will do this if they are upside down, and just don’t want the headache any more. It allows them to “save face,” exit with dignity, and we will not go after them for any amounts owed over the sale price, as well as not filing a 1099 with the IRS.

6. Cash For Keys

Sometimes they want to leave and they have equity, or are just being stubborn. This is when we offer them cash to leave, and sign the deed over to us. We typically give them a small amount to show good faith, then, give the rest after they leave the place cleaned out, and not damaged. The amount can vary from $500 to $100,000 or more depending if it’s a shotgun shack in the Ozarks vs. a $3 million Manhattan condo.

We saw a note for such a condo, and the person living in it was a retired schoolteacher with rent control, whose monthly payments were less than the taxes and HOA fees & they had no desire to move. The note was being offered for $1.5MM, so even a $500,000 cash for keys would have been a good deal to have a $1MM profit!

7. Foreclosure

Foreclosure is our last resort when all else fails. On a vacant property, we always start foreclosure right away. If the homeowner is still there, and refuses to work with us, we also foreclose. This takes anywhere from 2 months to 4-5 years, depending on the state. We will also pursue a deficiency judgment for any balance owed us over the price we get for selling the property when we have title, and if they are really jerks, we can submit a 1099 to the IRS for that amount.

The last three exits above are the starting point to obtaining title to the property, and also have multiple exits depending on how creative you want to be.

8. Sell As-Is

You can then just sell the property AS-IS to a rehabber or handyman, on your own, or with a Realtor. Advertising on Craigslist or at a local Meet Up is a great way to sell this.

9. Fix & Flip

In this case, you are like a traditional rehabber; you obtain title, fix it up, and sell it to a homeowner or investor as a move-in ready property for more than As-Is.

10. Fix & Rent

You can perform a low cost rehab, using lower quality paint, carpet, and tiles to rent out if there is a shortage of rentals in the area. Though you are now a landlord, and have to deal with the toilets, tenants, termites, roof, hot water, and all the other issues since you own the house.

11. Fix and Sell

This is a great way to create your own paper. You sell the rehabbed property, either As-Is or fixed up to a homeowner, typically for a higher price than selling. Since you are the owner, you can create a note out of thin air, and a mortgage or Land Contract or Contract for Deed that has terms the homeowner can afford and collect the payments, just like the bank for 20-30 years.

12. Fix, Rent, And Sell To An Investor

You can sell a “loaded” rental to an investor as a turnkey investment, typically for a higher price than a standard fix & flip. One method is 25% to 50% down, and write a seller carryback note that will use the rents to pay the balance off, with a monthly payment that is lower than the rent, so the investor gets some cash flow each month with the difference. This way, the renter pays off much of the cost of the property.

With so many ways to profit from a defaulted real estate note, it’s hard to lose money unless you pay too much for the note. There are no bad notes, just overpaying can get you into trouble.

Home ownership, has been considered, an essential component of the so – called, American Dream, for generations! However, every potential, qualified, buyer, does not seek the same things, nor, necessarily, has the same combination of needs, priorities, qualifications, necessities, and finances! Therefore, not only, must these people, proceed, without rose – colored glasses, and have, some focus, on balancing their needs, and wishes, as well as comparing it to their personal finances, etc, but, nearly all, would benefit, by hiring the right, professional, real estate agent, to meet their personal, best – interests! Since, for most, the value of their house, represents, their single – biggest, financial asset, doesn’t it make sense, to take the time, and make the effort, to carefully, interview, prospective agents, to choose, the one, best, for you? A great agent, realizes, he must, be ready, willing, and able, to FIND the right house, for his clients, based on their personal needs, necessities, and requirements, in an attentive way. With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, using the mnemonic approach, what this means and represents, and why it matters.

1. Face facts; features; funds/ finances; future; feelings: Begin the process, facing – the – facts, in a realistic way, because, if, you, merely, seek to Keep Up With the Joneses, rather that, what your personal needs are, it won’t serve you, effectively! Evaluate, the features, you need, versus, those you like, know what you can afford, as well as the quality of the, Bones of the House! Realistically, know your true feelings, by giving yourself, a thorough, self – analysis, and/ or, check – up, from the neck – up! It’s also important to consider future issues, including family needs, affordability, and whether, you plan to live there, for a considerable period, or only, as a so – called, Starter Home!

2. Instincts; insights; inspiring: Many homeowners discover their home, inspires them, and, have the instincts, to realize, what means the most, to each individual! The greatest agents respect and understand these feelings and perception, and proceed, with the expertise, and insights, which best serve a client’s best – interests, etc!

3. Needs; nuances/ niche; neighborhood: Before buying a house, a potential buyer, should walk – the – neighborhood, and discover, if he would feel comfortable, and, truly, enjoy, living there! True professionals know and understand their client’s needs, perspectives, and priorities, and respect these, thoroughly, while addressing the nuances, and niche, which might provide the highest – quality, personal service, and representation!

4. Delve deeply; discourse; deliver: You can’t customize, properly, unless/ until, one delves deeply, and listens carefully, during the entire discourse, emphasizing, delivering, the best house, for the particular client!

How a quality real estate agent, proceeds, forward, to FIND the best house, for a client, differentiates the greatest ones, from the rest – of – the – pack! Doesn’t it make sense, for a prospective buyer, to carefully, choose, who, he hires?

There are millions of licensed, real estate agents, brokers, etc, in the United States! Only, a small percentage of these individuals, however, are responsible, for the majority, of all the transactions, etc, however! The finest professionals, consistently, put, their clients, best interests, first, as well as consistently, proceeding, with the highest degree of personal and professional ethics, and integrity! Although, a combination, of a variety of skills, behaviors, abilities, attitude, etc, are important, and necessary, this article will attempt to look, specifically, at 5 specific areas, in terms of the most essential characteristics, etc! With, that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, these items, and why they matter.

1. Client – first, ethical behavior/ focus: To serve and represent his clients, effectively, the finest professionals, consistently, proceed, with the highest ethical behavior and standards (ethics), and putting the best interests of his clients, first! Most states, and associated, real estate boards, require, conformity, with their Code of Ethics, but, the best agents, go further, consistently!

2. Pricing: Markets change, times change, and so do, needs, and market conditions and types, so the finest professionals, are experts, at pricing houses, according to specific, current conditions, and the local market, etc! It is important to realize, there is usually, a significant difference, between, listing, and selling prices, and buyers, and sellers, must realize, these differences, etc. If you are a homeowner, you need an agent, who, proactively, suggests pricing, based on local conditions, current trends, and, to a great extent, using a Comparative Market Analysis, etc.

3. Marketing: Great agents must be experts, in both, marketing, and selling houses. Marketing refers to the process, and actions, to attract, qualified, potential buyers, and taking the steps, and using the means, which get it done! On the other hand, selling is bringing the deal, to fruition!

4. Negotiating: Creating a meeting – of – the – minds, between a homeowner, and a well – suited, interested buyer, requires professional expertise, when it comes to negotiating, and getting the best deal (for his clients) done! When representing a seller, it means doing, everything, possible, to create, a combination of the best available/ plausible, price, at the best – terms, in the shortest period of time, in an effective, responsible way!

5. Pay attention to all details, and obstacles, from start, to finish: Great agents must pay keen attention, to all, related, details, from the start, to the closing! He must be prepared for all eventualities, and obstacles, handling these, in a positive way, as challenges, to overcome, instead of being overwhelmed, by perceiving them, as problems! It often means, holding one’s client’s hand, throughout, the entire transaction period!

You have a choice of selecting the right, real estate agent, to represent you! Since, for most, the asset value, of a house, is their single – biggest, financial asset, doesn’t it make sense, to interview, carefully, and choose, wisely!

There are many emotional factors connected with the ownership of Real Estate. Do the historical returns on Real Estate investments justify the confidence so many investors have in them?

The ownership of land has been something that has been rooted deep in the minds of man. Land is seen as the one investment that is solid and permanent. The American Dream has long included the ownership of your own home, but when you move beyond this natural impulse to own property that you can call yours and look at Real Estate purely from an investment opportunity, how does the picture change? Have the historical returns on Real Estate Investment measured up to the confidence it has received.

The answer is a cautious yes. Between 1926 and 1996, the annual average rate of return on Real Estate was 11.1%. During the same period the rate of inflation was around 3%. So, it was obviously a better investment to buy Real Estate than to bury cash in jars in your backyard. However, the rate of return for small stocks checked in a bit higher at around 12% while the Dow Jones Industrial Average was a bit lower at 10%. These figures would suggest that Real Estate investments were right there at a par with Stock Market Investments.

Real Estate Investors might want to make the claim that land ownership and its value as an investment predates the Stock Market by thousands of years. They will point to the role that the ownership of land played in the Middle Ages in determining wealth and even nobility. This is true, of course, but in many ways irrelevant to a discussion of the historical returns on Real Estate investments. The new global economy has created a whole new playing field and return of investment must be determined within the scope of this. It is all well and good to study the past to get clues to the future, but in investment the past only offers clues and not answers.

A look at the historical rates of return on Real Estate investments shows that they tend to be more stable and less likely to spike up and down in erratic and unpredictable fashion like the Stock Market. Many investment advisors suggest all portfolios have at least 10% invested in Real Estate for a hedge against market fluctuations. On the other hand, Real Estate investments tend to have high transaction costs and to be in larger units. All properties are unique and each has its own characteristics and potential.

These negative factors have led to the popularity of investments in Real Estate through REITs which are Real Estate Investment Trusts. REITs are a sort of mutual fund of Real Estate which gives investors a way to invest in Real Estate without the problems of high transaction costs or property uniqueness. If you are considering Real Estate investment, either on an individual basis or through a REIT, the historical record should give you some confidence. As much as past performance can reassure us of future success, Real Estate’s past has indicated that it is a safe, sound, and high return investment.