Monday, July 31, 2006

Buying And Selling Real Estate: Basics Of The Transaction

by Christine Macguire

A real estate transaction is, first and foremost, a customer service business. Buying or selling a home is one of the largest transactions most people make in their lifetime, and in many cases, it makes someone's dream come true. A real estate transaction is a large ongoing financial commitment, so buyers and sellers should spend time to know the basics. It always pays to be cautious and analyze your requirement and how much you can afford. Making the right choices while buying or selling a real estate property can be a complex and time-consuming process. Having the overview of basic steps involved in a real estate transaction can help you avoid potentially expensive mistakes.

Any buyer or seller should carefully consider the practical and legal complications of a real estate transaction before proceeding. Whether you are a seller or buyer, you should understand the contract terms in a transaction and how they affect you. Following are the basic tricks of the trade in a real estate transaction:

·Information is Essential: You should be informed about your options. Don't make the mistake of getting carried away and investing in something that looks great but doesn't meet your requirements. Learning as much as possible about all aspects of real estate property buying and selling is essential for a satisfactory transaction. Find all you can about the market value of the property by attending auctions, speaking with agents, reading the latest releases of auction results and the prices of properties listed.

·Shop around for the Best Price: Apart from being informed about the current market value of the property, you also need to be informed about products and services offered by real estate agents, solicitors, and conveyancers, and loan providers.

·Don't Hurry: Never rush or feel pressurized to take any haste decisions. Always keep in mind there is a lot of hard work and a lot of money at stake. Make sure that you are making this commitment for the right property. Once your homework is done you will feel confident that you have found the right house at the right price, the right agent or the right loan when it comes your way.

·Read before Signing: During any real estate transaction you may come across several types of contracts such as loan agreements, authorities to sell, contract notes and contracts of sale of real estate. The rule of thumb is not to sign any document without reading and fully understanding its contents including all terms, conditions and fine print. Seek professional advice whenever required and make sure whatever has been agreed upon verbally are put into writing.

·Negotiation: Negotiation is an art. Learning to practice it in a real estate transaction is very much essential. Many terms and conditions are negotiable in the actual process. Estate agents, loan providers, solicitors and conveyancers, as well as buyers and sellers are usually adept at it.

During the process of buying or selling real estate, you may find it helpful to have a professional real estate agent assist you. Real estate agents can provide many useful services in a transaction. The seller and buyer may each have his own agent. They help you in purchasing land and real estate with built-in equity. Professional agents provide their clientele with land and real estate consulting services that ranges from acquisition to research and development. They also provide you the accurate market value for your real estate property or land for sale . Real estate experts are in a position to advice you about the community and get you just the type of real estate that meets your requirement.

Christine is an expert Internet market professional with years of experience in various industries such as: Business, Finance, Real Estate, Web-Design and many more.Arizona Real Estate

Sunday, July 30, 2006

How To Invest In Government Foreclosures

by Masni Rizal Mansor

You have probably seen the infomercials in the past that are trying to tempt you into buying government foreclosures. And more than likely you probably dismissed these offers as a get rich quick scheme that will never work. While government foreclosures may not be exactly what you see and hear on television, they definitely have their place in the real estate industry.

In order to take advantage of government foreclosures you must first know what they are. Government foreclosures are properties that were financed through FHA insured loans. This means that the FHA insured the lender that the owner will meet the financial obligations that are required. But when the owner fails to do this, the lender will then take the home back. At this time, the FHA is then responsible for reimbursing the lender for any losses that they may have incurred. The FHA loses in two ways; they do not get the home, and they also have to pay the lender for their losses.

Government foreclosures can also come about in other ways. If somebody decides that they are going to avoid paying taxes, the IRS may take the home from the buyer. In other cases, government foreclosures may happen when a home owner is sent to jail. Instead of simply letting the home go to waste, the home is simply turned into a government foreclosure.

Government foreclosures are usually sold to the public via real estate auctions. This means that anybody who is interested in these properties can attend these auctions and bid on the homes that interest them. Most often times, investors suck up these government foreclosures the first chance that they get. It is not uncommon to find government foreclosures that are listed at 10% or more off of the market value price. This means that you can buy a home, and then quickly turn it into a profit.

Finding government foreclosures can be done by keeping an eye on your local real estate classifieds. Foreclosure auctions are usually listed in major papers for at least one day so that the public has a chance of finding out about them.

The infomercials don't lie! Government foreclosures are a great way to make money. Even though you probably won't get rich quick like you are told, you should be able to make at least a little bit of money on each transaction.

Masni Rizal Mansor provide tips and review on government foreclosures, home construction methods and Boston real estate.

Read Those Regulations Before Making An Offer On A Property

by Raynor James

In modern America, many neighborhoods are organized as developments. Such developments often have rules and regulations that can be surprisingly restrictive.

Read Those Regulations Before Making An Offer On A Property

Planned developments are all the rage these days in real estate. A developer doesn't just build a bunch of homes any more. Now, they build an image of a particular type of living style. To maintain this image, the developments come with rules and regulations that can be very overbearing. If you fail to read them thoroughly before making an offer on a home, you may be in for a nasty surprise when you move in.

Rules and regulations for developments, known as homeowner association regulations, set out the specific things that can and cannot happen in a development. Issues covered range from changes that can be made to properties to issues such as landscaping. To the surprise of many homebuyers, these regulations can be incredibly restrictive.

Assume you have a hobby of growing roses. In fact, you have become an expert in growing them and who could really object to beautiful roses being grown in a yard? Well, you might be in for a surprise. Assume you move into a Spanish themed development. The roses do not really mesh with the Spanish theme. If you are unlucky, you may find that the regulations detail very specifically the type of plants that can be grown. If roses are not included in that list, you may be barred from growing yours. If you persist in doing so, you may actually be fined or have a court order entered against you!

On a more practical level, are you aware that many developments have severe restrictions regarding pets? If you own a pet, say a dog, that is a bit noisy, you may be in for a heartbreaking surprise. Many developments have clauses in their regulations that require residents to remove noisy pets from the development, to wit, you have to give fido away. Talk about an ugly surprise!

Many people like developments because they contain regulations designed to keep the neighborhood from falling apart or changing dramatically. While that is a noble goal, it is important to make sure the regulations will not actually keep you from being able to live comfortably in your home.

Raynor James is with the site - - home buying information.

Interest Only Mortgages

by ElmerFizz

Have you heard that commercial about interest-only mortgages...the one where you're told about what a wonderful benefit it is to have a low, low mortgage payment and all the wonderful tax write-offs you will receive?

Before you decide to buy now and pay later, that is pay "big time" later, take a moment to enlighten yourself a bit more about these so-called "interest only mortgages." Think about it for a moment. If you just pay the interest on your home, will you ever start paying on principal and will you ever earn any equity into your property?

By definition, a mortgage is a temporary, conditional pledge of property to a creditor as security for performance of an obligation or repayment of a debt. Simplified, that means you borrow money from a financial institution and they essentially buy your house and you pay it back. How can this happen if you're just paying interest? More accurately, interest-only mortgages are a temporary reprieve for paying off a traditional mortgage. You may actually be prolonging the inevitable and eventually making it even more costly to pay off your mortgage.

Far too many people are in debt way over their heads because of interest-only mortgages. They took advantage of attractive offers to buy now and pay later. With an interest only payment you're keeping the principal at minimum value while continuing to pay interest at 100%. With a more conventional mortgage you'd be slowly dwindling down the total interest amount.

Most interest-only payment schedules are offered on Adjustable Rate Mortgages (ARMs), but they can also be found on a fixed rate mortgage. Interest-only payment periods almost never run for the entire term of the loan which is typically 15 or 30 years. Depending on the terms of your contract, you could be expected to start paying on the principal in five, seven or ten years. Once the interest-only period ends, your monthly payment will go up because then you'll be paying on both principal and interest.

Conversely, interest-only mortgages can be a good thing for some people. For those people wanting to purchase a bigger/better home for a lower down payment AND who anticipate moving within seven years, the interest-only payment method may be the way to go. However, keep in-mind that in a "down" realestate market you generally won't be building equity and making money by doing it this way. The majority of the money made from investing in real estate comes from an increase in value to the home. The average person moves every seven years anyway. Gone are the days when people stay in a home thirty years. Hence, if you anticipate moving before you'll have to start paying on the principal, then an interest-only payment may be ideal for you.

There's a great deal of fine print to any mortgage. Evaluate your own goals; be vigilant when reviewing the terms on the loan you're considering before acting. For more information on mortgages see:

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Cheap Second Homes - Get One, Enjoy It and Make Money!

by sacha tarkovsky

You want a cheap second home, you want it in a great area you can enjoy and you want your property to make money as well this is easy.

You just need to look at different locations and pick the best and thats what this article is all about.

If you are American you may find the cost prohibitive in the southern US states, as cheap second homes are just not available.

Look just a little further a field and just 3 hours from Miami, you can pick yourself up a cheap second home in a paradise location that gives you a lot for your money and can make you money to.

Record numbers are buying a cheap second homes in Costa Rica check out the facts below and you will see why and why this could be your best purchase ever.

1. Proximity

Just 3 hours from the US with regular cheap flights.

2. Low Cost

Buy a second home in Costa Rica and you get more for your money as real estate costs up to 70% cheaper than in Florida and Arizona and the cost of living is low.

You can live comfortably on just $2,000 a month, you simply get more for money here.

3. Lots to do

Costa Rica has it all rolling hills, pristine beaches, volcanoes mountains and much more. Fancy a round of golf or maybe some fishing or a rainforest tour? Costa Rica has them all and is ranked as one of the best adventure tourism spots in the world.

You also get quality shops, vibrant nightlife and all the comforts of home.

4. Safe, stable and friendly

The country is safe and stable, serious crime is rare and Costa Rica has a history of strong ties with the US and if you buy you get the same rights as residents.

5. Tax efficient and capital growth

Its extremely tax efficient and capital growth on real estate here is great. You may by a cheap second home but it will go up in value and property prices are up 500% in the last 10 years!

When your not enjoying your cheap second home you can take advantage of the buoyant rental market and make even more cash.

Record numbers of Americans are buying?

Maybe you should to.

You get a cheap second home in a paradise location, just three hours from the US and the potential to enjoy it and make a lot of money on your investment as well.

As the real estate market in the US is over priced and runs out of steam, more people are buying cheap second homes in Costa Rica in fact, their buying in record numbers.

There getting more for their money and a lifestyle that has variety and quality.

The best cheap second home location for value and lifestyle

Maybe you have not considered a cheap second home in Costa Rica but the advantages as you have seen are huge and it really is a slice of paradise thats affordable to all.

There is not enough room to cover all the benefits of buying a cheap second home in Costa Rica here but if you want to enjoy your ne home or make money from it, you should look at Costa Rica and you will be glad you did.

On investing in property in Costa Rica as well as videos and features check a great lifestyle visit: