AOL Real Estate - Blog http://realestate.aol.com/blog AOL Real Estate - Blog http://realestate.aol.com/blog/media/feedlogo.gif AOL Real Estate - Blog http://realestate.aol.com/blog en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/10 Home Fixes That Require a Prohttp://realestate.aol.com/blog/2012/03/30/10-home-fixes-that-require-a-pro/http://realestate.aol.com/blog/2012/03/30/10-home-fixes-that-require-a-pro/http://realestate.aol.com/blog/2012/03/30/10-home-fixes-that-require-a-pro/#commentsFiled under: , ,



By Lisa Frederick

We're all for empowering homeowners to take on their own house improvements. You save money, gain confidence and get the satisfaction of custom tailoring your home with your own hands. But when it comes to certain tasks -- plumbing, for instance -- we draw the line. Although these 10 jobs might be within the scope of a very experienced owner, for most of us, they require help from someone who handles them for a living.

1. Foundation repair. If your foundation is in trouble, so is the rest of your house. Wall cracks, sagging ceilings or floors, lopsided doorways and other red flags add up to one solution: a call to a foundation contractor. It's worth investing in professional help to ensure your house remains on sure footing.

2. Electrical wiring. We haven't yet met a builder who thinks that wiring is a DIY job. That doesn't mean you can't replace an old ceiling fan or install a garage door opener -- we're talking about serious, behind-the-walls electrical work. Not only do you need thorough knowledge of the most updated building codes, but the worst-case scenarios are really, really bad (house fire, injury, death). Hire a licensed electrician for your own safety and peace of mind.

3. Removal of a load-bearing wall. Knocking out a wall sounds simple, right? Well, if it's load bearing, meaning it carries and distributes weight, things get a lot more complicated. Eliminating such a wall wipes out support for the ceilings, floors and other structural elements that rest on it -- and that can have disastrous consequences for the entire home. Plus, the wall could contain wiring or ductwork that you don't want to disturb. Leave this tricky and time-consuming job to a remodeling contractor.

4. Major plumbing. Two words: water damage. You can probably install a new faucet, a showerhead or even a toilet, but when it comes to the bigger stuff, pro is the way to go. Pipe connections and other trouble spots can spring leaks that may cost you dearly in the long run. Here's a good rule of thumb: If it involves work behind the walls, don't try to handle it on your own.

5. Natural gas lines. Remember the worst-case scenarios with electrical work? Same with gas. It may sound simple to run a gas line directly to your grill or fire pit, but it isn't. Call the gas company and thank us later.

6. Tile and tub resurfacing. Although this is an affordable alternative to ripping out and replacing dated tile or an old bathtub, don't be tempted to save even more by trying it yourself. From the chemicals used to strip off the old finish to the delicate technique of applying a new one, it's a specialized job that calls for specialized help.

7. Roofing. Besides the fact that roof goofs can wreak costly havoc if they leak, balancing on a steep slope of shingles with a toolbox is dangerous, especially if you're not properly trained. Hire a roofing pro to be sure that the job gets done right and that you won't face a treacherous fall.

8. Tree removal. Smaller trees (say, 10 or 15 feet high) are OK to cut down on your own, but anything larger should have you speed-dialing the tree service. First, amateurs and chainsaws rarely mix well. Then there's the art of gauging where the tree will fall -- miss the mark, and it could hit a power line or crush a wing of your house. And trying to balance up high while you saw off limbs is an ER visit waiting to happen.

9. Stripping old paint. Don't take a chance with this one. Paint that dates from the late 1970s or earlier could contain lead, and breathing in the dust as you scrape it off may lead to health problems. Protect yourself and your family by turning the job over to a licensed lead-abatement contractor.

10. Wood-burning stove or fireplace installation. Fire safety is the biggest concern, but this also is an extremely complex job that requires an understanding of special considerations beyond the fireplace itself, such as insulation. Attempt it yourself, and you're literally playing with fire. And you know what they say about that!

See the original story over at Houzz.

More on Houzz:
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Home Improvement Project Preparation Tips

 

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]]>electrical wiring repairfoundation repairhome fixes for professionalshome fixes require prohome fixes that need professionalshome repairs for professionalsplumbing repairremoving load bearing wallroof repairrunning gas linesstripping old paint.tile tub resurfacingtree removalWood-burning stove fireplace installationHouzz2012-03-30T12:50:00+00:004 Secrets to Scoring a Bank-Owned Property Dealhttp://realestate.aol.com/blog/2012/03/29/4-secrets-to-scoring-a-bank-owned-property-deal/http://realestate.aol.com/blog/2012/03/29/4-secrets-to-scoring-a-bank-owned-property-deal/http://realestate.aol.com/blog/2012/03/29/4-secrets-to-scoring-a-bank-owned-property-deal/#commentsFiled under: , ,

Bank owned propertiesScanning the foreclosure listings to snap up your dream home on the cheap?

It's tempting indeed to take the bottom-fisher route, especially when bank-owned deals are so plentiful and annual housing prices in 20 major cities combined declined 3.8 percent in January, according to the closely watched S&P/Case-Shiller U.S. National Home Price Index released Tuesday.

But veteran real estate agents offer up some sound advice for would-be buyers homing in on bank-owned properties, short-sale deals, and foreclosures. Here's how to keep the frustration level low when shopping for your bargain-basement dream home.


1. Get your terms straight.

"Foreclosures" is a loose term that buyers bandy about when telling their real estate agent to seek them out. In most cases, homebuyers aren't really looking for foreclosures in the technical sense.

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"A real foreclosure is when the owner is losing their house and it's being auctioned off on the steps of the courtyard. You need to have cash to buy these houses, so it's usually only investors who buy foreclosures and get amazing deals," says Kristi Roberts, a real estate agent with McGuire Real Estate's Berkeley, Calif., office. "If the house doesn't sell on the courtyard steps, then it becomes a bank-owned house."

Nonetheless, when clients ask to be shown foreclosures, most real estate agents know they are likely asking to see bank-owned properties. Chris Dasaro, a Coldwell Banker real estate agent in the Grosse Pointe Woods, Mich., office that also serves the Detroit market, estimates that upward of 80 percent of his clients want to be shown bank-owned properties.


2. Don't get too excited about lowball listings.

In the greater Detroit area, where January housing prices were actually up 1.7 percent over last year, according to Case-Shiller, Dasaro has seen a couple of instances in which bank-owned properties were listed as much as 50 percent below the market rate. That, of course, generates a feeding frenzy where bidders in some cases end up paying above the market rate for a particular house.

Dasaro estimates that he encounters lowball situations like these in about 5 percent to 10 percent of the houses he sees, and notes that buyers would be wise not to get overly excited with anticipation that they could snap up the house at that listed price.

The lowballing is not a sales technique, but rather the likely result of the banks relying on broker price opinions rather than appraisals for the properties, says Roberts. She notes that she has also seen situations in which the banks have overpriced properties by a large margin, but often in those cases potential buyers are not disappointed if they don't get the house.


3. Prepare for big differences in bank-owned property sales.

Compared to purchasing a house from a private owner, there are more hoops to jump through when buying a bank-owned property, real estate agents say. Buyers should brace for:

o. Far fewer disclosures from the seller regarding the condition of the property, because the banks rarely, if ever, visit the property they are selling, say real estate agents.

o. Being pressured to buy "as is." Mary Ann Griffin, an associate Realtor with RE/MAX in Atlanta, says buyers should always make a contract contingent upon the buyer's home inspection, even if the contract notes that the sale will be done in "as is" condition. Griffin notes that securing a VA or FHA loan requires banks or other sellers to make appraiser-recommended repairs.

o. "Gotcha" addenda in the contract. Roberts notes that banks will often include an addendum to the contract that may contradict something called for in the beginning of the document. Other addendum provisions may include clauses such as a $100-per-day penalty fee for every day the buyer is late in closing the deal or fulfilling a contingency.

o. Lots of fine print. "Buying bank-owned property is like the Wild West of real estate. Sometimes you just have to put on your cowboy hat," Roberts says. "I'm a real cautious person and address these things by reading the document carefully and having a good team, where we stay on top of it and pay attention to the timelines and deadlines."

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4. Know what you're in for in short-sale situations.

Bargain hunters are also keen to take a gander at homes listed as a short-sale. But venturing down this path can often lead to long delays in home ownership, and can sometimes fail in the end.

Under a short sale, the owner puts together a hardship packet that's sent to the bank and will sometimes include a sales contract with a prospective buyer, Roberts says. But it can take as long as six months before a bank responds as to whether they will accept the seller's plans for a short sale.

Roberts knows of one particular case in which an investor bid on a Berkeley, Calif., foreclosure on the courthouse steps. Although this investor lost the bid, he was curious nonetheless about the house that sold for $365,000 at auction. In making an inquiry, Roberts learned that the same house was in the final stages of approval for a short-sale for $425,000.

Not only was it a case of the left hand not knowing what the right hand was up to at the bank that was overseeing the transactions, but it ended up costing four months of time for the prospective short-sale buyer, Roberts says.

Another tactic short-sellers use is the illusion of a tight deadline. Recently, Roberts has seen a couple of short-sale auctions in which the listing price is set extremely low but the bids end up closer to the market rate -- but surprisingly, the window of opportunity doesn't close after the auction is over. The short-sale real estate agent continues to accept offers on the house for several more days in order to land the absolute highest price.

Says Roberts: "I have clients who want to go to these fake auctions, and we'll go, but I see how frustrating it can be for them."

Griffin offers these tips to short-sale buyers:

o. Try to avoid "potential short sales" and seek out "approved short sales" instead. In some cases, banks will approve a homeowner conducting a short sale, even if no prospective buyers are listed.

o. Work with an experienced agent who has a track record with short sales.

o. Document all correspondence (for example, by using email).


All About Home Short Sales

 

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]]>bank owned home salesbank owned homesbank owned propertiesbuy foreclosurebuying guideforeclosures for saleshort salesDawn Kawamoto, The Motley Fool2012-03-29T15:00:00+00:00Home Selling SEO: 6 Tips to Get Buyers in a Twitterhttp://realestate.aol.com/blog/2012/03/14/home-selling-seo-6-tips-to-get-buyers-in-a-twitter/http://realestate.aol.com/blog/2012/03/14/home-selling-seo-6-tips-to-get-buyers-in-a-twitter/http://realestate.aol.com/blog/2012/03/14/home-selling-seo-6-tips-to-get-buyers-in-a-twitter/#commentsFiled under: , ,

twitter birdBy Seth Price for InmanNext

When was the last time you sold a house for $135,000 above the asking price? An Australian man recently made headlines by doing just that -- selling his home on Twitter.

With the help of digital marketer John Newell and real estate agent Hocking Stewart, Kurt Oprey was able to sell his home in Northcote, a Melbourne suburb, for $135,000 above the asking price by employing social media in the six weeks leading up to its auction. Though his strategy was a bit more complicated than the headlines suggest, it's definitely simple enough for anyone with basic social media competence to employ and illustrates the future of real estate marketing in action. Here are six lessons "the Northcote house" can teach you about using social media to sell a home.


1. Start by targeting specific keywords.

Oprey's first step was to determine the keywords that would be "perfectly aligned with the most common search phrases used by people searching for real estate in Northcote." He and John decided on "Northcote, house, sale, auction" and used those everywhere, including the URL for the property's WordPress blog, www.northcotehouse.com.au. The reason this is important is that all of the content that is created surrounding this online marketing campaign needs to be aligned with the consumer in mind. This is SEO 101.


2. Create a microsite on WordPress.

A microsite helps you tell a unique story and serves as a platform for search engine optimization (SEO) and lead conversion. WordPress is one of the most flexible and widely used platforms out there; it allows you to quickly create a professional-looking website. It's SEO-friendly and it also supports all types of media, including images, video, documents and social media widgets.


3. Build campaigns for every major medium and service.

Oprey didn't stop at a Twitter account and blog. He also created a Facebook page, a YouTube channel, and Flickr, Picasa and Posterous accounts for the Northcote house. By creating multiple sources of photo, video and written content, Oprey ensured that the Northcote house would show up in any kind of search and on just about any website or service. Oprey also devoted enough time to each channel to make sure they all ranked No. 1 for his keywords in Google.


4. Collaborate to make it personal.

Traditionally, sellers and buyers are discouraged from personal contact in order to prevent any interactions that could jeopardize the deal. But social media provides a certain amount of distance between people, allowing you to use a more personal touch in highlighting the features of a property. The agent took advantage of this by working with the owner to capture personal stories about the home for use on Twitter, Facebook, YouTube and the blog.

This made the house stand out and gave the campaign content that the agent would have been hard-pressed to create on his own. A blog post was created, with the title: "Why you might want to live here by people who have," and the owner's personal stories, photos and videos about the Northcote house were also posted.

This communication with the owner allowed him to share what he loves about the house: inside, outside, what's great about living there, the change of seasons, what's nearby, the community -- everything from the owner's point of view. The house, in this way, can become more than a collection of rooms -- it becomes a home in a buyer's eyes.


5. Share and share often.

Woody Allen said, "Eighty percent of success is showing up." When talking about social media, I think "80 percent of success is being consistent." Posting regularly helps you build interest and followers over time, and ensures you remain at the top in searches for your keywords. Oprey, for his part, posted stories daily "on a range of subjects designed to inform potential buyers about the house and increase their interest in the property."


6. Don't do this alone.

Owners might be tempted to think that they don't need a real estate agent, and agents might be tempted to think that they don't need marketing help. Oprey worked with an agent and a marketer on the Northcote house for good reason: Creating compelling content on multiple platforms is a time-consuming endeavor and needs to be agile to be effective.

The future of real estate marketing will have all parties playing their part in the process: owners sharing stories to personalize and add emotional content about their home; marketers tying the online efforts together in ways that drive interest and leads; and the agent, orchestrating the entire process, connecting all the right dots to serve the customer and bring a successful deal to a close.

If this seems like a lot of work to you, it is. But it's no different than the mountain of work that you are already doing to sell a house. It's just a matter of focusing on where the customers are spending their time: online. Use these six steps as a checklist.

And look at your latest listing. Have you done what it takes to get an offer well above the asking price? Tell us about your own special tricks by commenting below.

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How to Have a Real Estate Sales Flyer

 

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]]>digital marketer John Newellhome buyinghome sellerhome sellinghow to sell a homeKurt Oprey Northcotereal estate agent Hocking Stewartreal estate auctionsreal estate marketingsell homeselling real estate with social mediaseosocial media marketingInmanNext2012-03-14T15:20:00+00:00Advice From America's 'Top Real Estate Photographer'http://realestate.aol.com/blog/2012/01/06/advice-from-americas-top-real-estate-photographer/http://realestate.aol.com/blog/2012/01/06/advice-from-americas-top-real-estate-photographer/http://realestate.aol.com/blog/2012/01/06/advice-from-americas-top-real-estate-photographer/#commentsFiled under: , ,



A quick flip through any glossy magazine will reaffirm the reliance that selling has on good pictures. Selling houses is no different than selling products. In fact, homeowners and Realtors are perhaps even more dependent on high-quality images to not only sell their homes, but to sell them at the best price.

This is why real estate photography has flourished into a powerful and lucrative little industry. While it's still lesser-known than fashion photography, real estate photography has seen a transition from a mere "commodity business" to an increasingly prestigious craft that has earned many photographers professional prestige and, well, big bucks.

To separate the wheat from the chaff, the Photography for Real Estate (PFRE) organization annually awards an outstanding photographer the honor of being the "Top Real Estate Photographer" of the year. For 2011, peers and the PFRE blog's readers recently voted to give Dave Rezendes of Honolulu that honor.

And it's not hard to see why. Rezendes' images highlight the uniqueness of a home and the beauty of its natural surroundings. His popular image of a home in Honolulu designed by architecture and design firm Long and Associates (left) was voted the winning image on PFRE by a large margin.

Not too shabby, considering that Rezendes has only been working as a dedicated real estate photographer for four years.

In an interview with AOL Real Estate, Rezendes admits that he stumbled upon the business "by chance," initially shooting photographs as a hobby. It was only after shooting his first property that Rezendes saw real estate photography as a promising career. He was right. It's proved rewarding in ways that stretched far beyond simply taking beautiful images.

"I love getting a phone call from a happy client letting me know that their property has sold much faster than expected," Rezendes says. "I like feeling like I can use my skills to contribute to their success."

Property Photographs: Do's and Don'ts

Whether you're an amateur real estate photographer, a Realtor, or a homeowner who wants to try shooting your own listing pictures, Rezendes has a few tips for getting the best photographs of a home (and to ensure that your photos don't end up like these train wrecks):

o. Don't assume that wider is better. Sometimes a particular vignette or architectural detail will better convey the feeling of a house and give a stronger effect.

o. When staging a photo, keep perspective in mind. It may be necessary to move furniture slightly to compensate for lens distortion and keep your photo looking realistic, especially in wider shots.

o. Mind your verticals. Shooting at a downward or upward angle can skew the vertical lines of the photo, making them no longer parallel. Most photo editing software has the capability to correct this in post-processing.

o. Keep an eye on your staging. A crooked pillow or messy bedskirt can take a minute to fix on location but hours to fix in post-processing.

o. Avoid any clutter in your shots. Any exposed power cords, personal items, or even too much staging material can negatively affect the image. Keep your photos neat but not sterile.

o. Avoid photographing exterior views in direct, midday sun. Try to cover that in the morning or early evening for the most complimentary natural light.

o. Before you take a photo, double-check to see that neither you nor your equipment is visible in mirrors or window reflections.

On Going Pro

PFRE's Top Real Estate Photographer of 2011 also offers this advice for those who are looking to break into the trade:

o. Be prepared to have your pricing ready for a potential client. It will be one of the first questions they ask when considering taking you on to shoot a property.

o. Invest in some off-camera flash units to balance the light inside a space.

o. A basic understanding of good photo-editing software can go a long way toward improving your final image.

o. Understand and manage your client's expectations regarding the time that a shoot will take and how the photos should be used. Shooting for a web-based MLS gallery is different than shooting cover shots for a print-based magazine.

Also see:
Cheeky House Tour Takes Marketing to the Next Level
Newest Home-Staging Trend: 'Placement Pets'
Real Estate Broker Warms Up Cold Listings With Hot Models

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Find out how to calculate mortgage payments.
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]]>Dave Rezendeshome sellinghome selling tipshome staginghome staging secretsHome Staging TipsPFREPhotography for Real Estatereal estate photographyTop Real Estate PhotographerKrisanne Alcantara2012-01-06T08:00:00+00:00Homeowners: Take Advantage of Expiring Tax Deductionshttp://realestate.aol.com/blog/2011/12/01/homeowners-take-advantage-of-expiring-tax-deductions/http://realestate.aol.com/blog/2011/12/01/homeowners-take-advantage-of-expiring-tax-deductions/http://realestate.aol.com/blog/2011/12/01/homeowners-take-advantage-of-expiring-tax-deductions/#commentsFiled under: ,

By Stephen Fishman

There are several tax credits and deductions set to expire at the end of the year, and given the federal deficit problem, there's a good chance they won't be extended. If you want to take advantage of them, you need to act before Jan. 1, 2012.

Mortgage Insurance Premium Deduction

If you itemize deductions, you may deduct the premiums you pay for mortgage insurance, just like you do mortgage interest. However, this deduction is phased out if your income exceeds certain levels. To qualify for the full deduction, a couple or a single taxpayer must have an adjusted gross income of $100,000 or less. The deduction is phased out completely if AGI exceeds $109,000.

This deduction, which was first enacted for 2007, is scheduled to expire at the end of 2011. Thus, your payments are deductible only if you pay them during 2011; a payment after 2011 is not deductible.

Education Expenses Deduction

A deduction of up to $4,000 for qualified education expenses is available for 2011. All or part of the amount you pay can be for classes beginning in 2012. But you must make your payments during 2011, because the deduction expires at the end of the year. This deduction is not available if your modified adjusted gross income is more than $80,000 ($160,000 if filing a joint return). Nor is it available if any of education tax credits are claimed.

Home Energy Credit

First, any homeowner may qualify for an energy credit of up to $500. You can qualify for the credit if you purchase during 2011 solar panels to generate electricity or for water heating, or install wind energy equipment, a geothermal heat pump, or certain types of fuel cells to generate electricity. The credit is up to 30 percent of the amount you spend, up to the $500 limit. This credit is not available for purchases in 2012.

Sales Tax Deduction

If you itemize, you can deduct either your state and local taxes or your sales taxes paid during the year. This deduction is a boon for people who live in states with no or low income taxes. However, the deduction for sales and use taxes instead of state income taxes is scheduled to expire at the end of 2011. To maximize this deduction, you should make any large purchases before the end of the year.

Adoption Credit

A tax credit for adoption expenses (adoption fees, court costs, attorney fees, travel, etc.) has been available for many years. However, an enhanced adoption credit is available for adoptions finalized before 2012. The credit is up to $13,360 of adoption expenses. For 2011, this is a nonrefundable credit, meaning you qualify for it even if it exceeds the amount of your 2011 tax liability. This means that you could qualify for a tax refund even if you did not have federal income tax withheld.


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Find out how to calculate mortgage payments.
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]]>Adoption CreditEducation Expenses Deductionenergy tax creditsHome Energy Credithomeowner tax breaksinmanMortgage Insurance Premium Deductionmortgage interest deductionSales Tax Deductiontax creditstax deductionstax seasontaxesInman News2011-12-01T08:00:00+00:00Where Are the Real Home Bargains? Not Where You Think!http://realestate.aol.com/blog/2011/11/02/where-are-the-real-home-bargains-not-where-you-think/http://realestate.aol.com/blog/2011/11/02/where-are-the-real-home-bargains-not-where-you-think/http://realestate.aol.com/blog/2011/11/02/where-are-the-real-home-bargains-not-where-you-think/#commentsFiled under: , , , , , , , ,



What if you could buy a house for $25,000 in a neighborhood that wasn't a battle-scarred slum and rent it out for $750 a month as soon as the ink was dry on the deal? Where are these deals that let you recapture your investment in just three years and from then on enjoy a steady monthly income from the property?

If you said Phoenix, Las Vegas or south Florida, you'd be wrong says Paul Habibi, a principal of Habibi Properties and real estate professor at UCLA Anderson School of Management.

Here's a hint to the place Habibi thinks is the hottest investment around.




Yep, Habibi is humming "Kansas City" right along with Wilbert Harrison, Fats Domino and the 50 or so other recording artists who covered that tune. As for a real estate investment, Habibi says Kansas City, Mo., is ripe for the picking.

Habibi's approach to real estate deals is not for novice investors, but it is for those who can tolerate some risk and buy into a statistician's mind. He's developed a matrix that filters the top 30 MSAs (metropolitan statistical areas) through their projected growth rates (increasing population is good), unemployment (the lower, the better), and whether the city has a diversified job platform (Silicon Valley won't get his money).

He also rejects places where other investors have already scooped up the bargains (forget Florida and Las Vegas). Phoenix, popular with many investors, also fails his litmus test. It was built as a retirement community and lacks a job infrastructure for future growth, he says. And those Texas cities that everyone bandies about -- Dallas, Austin, San Antonio -- while their prices have remained flat and they seem to have escaped relatively unscathed from the recession, there are so many investors already there that they're tripping over one another.

Kansas City is just about perfect, said Habibi, whose company recently concluded its first phase of buying 32 single-family homes there in "C-level" neighborhoods for a price point of $25,000 each, spent $5,000 to $10,000 on repairs and now rents them out for about $750 each. He expects to double or triple his holdings in Kansas City with his second investment fund, for which there is a minimum buy-in of $100,000 for accredited investors to participate.

Kansas City's population grew at a faster-than-national average pace from 2000 to 2010. With an unemployment rate of 8.7 percent, it falls below the national level of unemployment of 9.1 percent. The city has a diversified industry base that includes Sprint Nextel Corporation, Hallmark Cards, the Fort Leavenworth military base, UPS and a Ford assembly plant. Google has selected the city for its ultra high-speed broadband network project. Plus Kansas City has a business-friendly reputation for encouraging retention of companies.

Habibi discourages individual investors without much experience or tolerance for risk to try to fly solo. He credits much of his success from having an infrastructure in place -- people to scout and inspect the homes, screen for tenants, manage the properties on-site and swiftly deal with eviction issues.

For those who don't want to listen to the expert, click on the images below of some homes for sale in the Kansas City area that are worth checking out:



See other homes for sale in the Kansas City area at AOL Real Estate.

Also see:
College Town Real Estate Investments Score High Marks
Upside Down on Your First House? Just Buy a Second One!
Viewpoint: Why No New Houses May Be a Good Thing

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Find out how to calculate mortgage payments.
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]]>how to invest in real estatePaul Habibireal estate bargainsreal estate investingAnn Brenoff2011-11-02T11:45:00+00:00Thinking About Investing in Real Estate? Take 5 Tips From a Prohttp://realestate.aol.com/blog/2011/09/22/thinking-about-investing-in-real-estate-take-5-tips-from-a-pro/http://realestate.aol.com/blog/2011/09/22/thinking-about-investing-in-real-estate-take-5-tips-from-a-pro/http://realestate.aol.com/blog/2011/09/22/thinking-about-investing-in-real-estate-take-5-tips-from-a-pro/#commentsFiled under: , , ,

With home prices and mortgage rates surfing the bottom of the real estate trough, it's no surprise that folks with money to spend are jumping into the investment market. According to a recent study by Move.com, real estate investors are buying three houses for every one house bought by someone for their personal use. And it's a trend that's likely to continue for the foreseeable future. So AOL Real Estate invited the experts from BiggerPockets blog to help our readers understand the opportunities--and pitfalls--around real estate investing. In this column, veteran investor Michael Zuber explains what he would do if he were starting out today.

The very first thing I would do is get down on my knees and thank my lucky stars to be beginning my investment career at absolutely the best time of our lifetime. Remember, fortunes are made by investing at depressed levels and at the bottom or near bottom of cycles.
Step One: Analyze Your Market & Learn What Deals Really Are
The next thing I would do is get off my butt and start doing my basic homework. I would go out and see no less than 50 and probably 100 properties in my investment area of choice. I am not kidding! I would immediately build a spreadsheet with data on no less than 100 properties. Things like Prices, Expected Rents, Repair Budgets, etc. This would give me the basis or foundation to understand what is a good deal, what is a bad deal and what is a great deal.

Step Two: Establish Your Deal Selection Criteria
After I have built my basic understanding of the market I would decide on what criteria I want to use to decide on what is and isn't a good deal. I recommend every investor pick one metric that is easily transferable between property types. For me that metric is "yield," or my expected return on all cash outlaid to secure and rehab a property. Today I personally look for expected yields in excess of 20% in my market.

Step Three: Start to Make Offers
After understanding my market and deciding on my criteria for identifying a great deal I would start making offers on properties that met my criteria. I would hold fast to my criteria and not let bidding wars drive up prices. In fact, you should only expect to get 1 out of every 10 properties you make an offer on. If your success rate is higher than that I believe you are offering too much on your properties.

By following this strategy I am convinced I could secure four investment properties with government-backed loans inside of 90 days and secure 10 properties inside my first year. Every property I bought would have a 30-year fixed interest rate and I would be a very happy man.

As an Alternative: Find Passive Real Estate Investment Opportunities
Now if my market didn't offer these types of returns or I didn't have the time to devote to learning a new market I would still find away to participate. I would find an investor with a proven track record, a simple-to-understand process and become a passive investor. This would insure a decent return with a lot less headaches, reduced risks and still give me the upside I want.

In the end if I were starting today I would not let this investment cycle pass me by. I would become a very active investor in my market and if my market didn't offer returns I would find a way to be a passive investor in another market that offered great returns.

Michael Zuber is an active buy-and-hold real estate investor who still has a full-time job. Michael is not an agent or broker, and simply uses the internet and agent relationships to drive his business. He currently averages at least one deal a month and has developed laser focus on his 5-step process. You can learn more about the process and past deals at www.wealthbuildingpro.com. This post originally appeared at BiggerPockets.com.

See also:
Tempted to Invest in Real Estate? Read This First
College Town Real Estate Investments Score High Marks
Young Real Estate Investor: Where to Stash That Extra Cash?

More from BiggerPockets:
Deciding When to Sell Your Rental Property
Are Home Inspections Necessary for Real Estate Investors?

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.

Photo: Images of Money, flickr

 

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]]>biggerpocketsInvestinginvesting in real estatereal estate investingBiggerPockets2011-09-22T14:00:00+00:006 Steps to Finding the Right Apartment Rentalhttp://realestate.aol.com/blog/2011/09/15/6-steps-to-finding-the-right-apartment-rental/http://realestate.aol.com/blog/2011/09/15/6-steps-to-finding-the-right-apartment-rental/http://realestate.aol.com/blog/2011/09/15/6-steps-to-finding-the-right-apartment-rental/#commentsFiled under: ,

finding right rental

Earlier this summer, we asked whether America was becoming a nation of renters. Statistics would seem to bear that out: Construction of single-family homes grew by 9.4 percent in June, the Wall Street Journal reported, but construction of multi-family homes with at least two units increased at triple that rate. Developers wouldn't be putting up apartment buildings unless they believed the demand for rentals would far outpace the need for new homes.

If more of us are going to be living in rental units, we need to get savvier about how to hunt for the right apartment. Daniel Hedaya, whose company, Platinum Properties, manages more than $150 million worth of New York real estate, offers these six tips to help prospective renters find the place that fits their needs and budget.


1. Come prepared.

o. Bring all necessary paperwork.
o. Include bank statements and a letter of employment or pay stubs to show prospective landlords.
o. Provide a reference letter from a previous landlord, and make sure it acknowledges that you made timely payments and took proper care of the residence.


2. Know what you want -- or at least have an idea.

o. Be specific about what you're looking for.
o. Come up with a list of must-haves and include details (e.g., central air conditioning, laundry hookup, garage, fitness center, pet friendly, etc.).
o. Prioritize locations and consider how much time it will take for you to commute to work and to the places that you frequent on weekends.
o. Consider how much it will cost to travel (i.e. cost of gas or public transportation).


3. Bring along the roommate.

o. Have a candid and communicative relationship with your roommate.
o. Come up with a consolidated list of must-haves.
o. Make sure you both understand the terms of the lease.
o. Discuss finances and the splitting of any and all bills (i.e. electricity, cable, internet and phone).

4. Use a broker - finding a good home is like finding a needle in a haystack.

o. Brokers have specialized knowledge of the most exclusive apartments and of the best available.
o. Brokers pre-screen homes, saving you time; this eliminates wasting energy on residences that don't meet your criteria or that you won't like.
o. Brokers can find homes that are more value for your money.

5. Visit properties.

o. Look at as many properties as it takes.
o. Don't visit more than four in one day or they will begin to blend together.
o. Bring along your list of must-haves as a kind of checklist.
o. Make sure to do a final walk-through.

6. Seal the deal.

o. Have your finances in order.
o. Examine your lease in detail, don't just sign it; bring it home and take the necessary time to understand your lease.
o. Find out what cosmetic changes can and cannot be made to the apartment.
o. Be financially prepared.
o. Negotiate.

Find apartments for rent in your area at AOL Real Estate.

Find more help with rentals in these AOL Real Estate guides:
Rental Brokers: How They Can Work for You
How to Negotiate Rent
Foreclosure: What it Means for the Renter
Roommate Agreements and Breaking Up When Things Go Badly

 

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]]>how to find a rentalrental apartmentAOL Real Estate Editors2011-09-15T13:40:00+00:00Real Estate Videos Go Hollywoodhttp://realestate.aol.com/blog/2011/09/13/real-estate-videos-go-hollywood/http://realestate.aol.com/blog/2011/09/13/real-estate-videos-go-hollywood/http://realestate.aol.com/blog/2011/09/13/real-estate-videos-go-hollywood/#commentsFiled under: , , , , , ,



The Academy Awards may have to add a category: Best Short Film Starring a Real Estate Listing. Listing videos--which for years have been little more than visual tours of homes set to annoying music--have entered a new realm. They've gone Hollywood, right down to having a story line.

Eric Lavey, an agent with Keller Williams Realty, Beverly Hills, may be the Fellini of this new marketing genre. He produced a "movie short" about a Hollywood Hills listing, marketing it as a sizzling Hollywood Hills bachelor's home and reeled in (pardon the pun) a buyer in less than 30 days. What made his $969,000 listing different from all the others?

"That video," he says.

6816 Pacific View Drive, Hollywood Hills from Eric Lavey on Vimeo.

We tend to agree. He found a young director and scripted the story line for 1,732-square-foot mid-century home. A hunky guy comes home from work (we never really get a good look at his face, enabling viewers to imagine themselves in the role, says Lavey), washes up in the high-tech bathroom (note the fancy watch), and then fixes himself a martini in the built-in bar.

He moves outsides to fire up the grill and chats up someone on his cell. He leaves in his Lexus convertible (nice plug for the dealer) and goes on a nighttime cruise of one of L.A.'s hippest neighborhoods. The ending scene is back in the driveway where the man exits the car and sure enough, the passenger door opens to deposit his catch of the day. Sex sells, right?

Readers, what do you think? Would a video like this make you want to buy the house?

View the listing for this house.

See other homes for sale in Beverly Hills, Calif., on AOL Real Estate.

Also see:
'Sexy' Homes Spice Up North Carolina Market
Bawdy Brokerage Solicits One-Night-Stand Stories
Watch: Do Naked 'Davids' Raise Property Value?

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Find rentals in your area.

 

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]]>Beverly Hills real estateEric LaveyEric Lavey Keller Williams Realty Beverly Hillsnew real estate marketingreal estate marketingreal estate videosAnn Brenoff2011-09-13T10:30:00+00:006 Must-Have Mobile Tools and Apps for House Huntershttp://realestate.aol.com/blog/2011/08/30/6-must-have-mobile-tools-and-apps-for-house-hunters/http://realestate.aol.com/blog/2011/08/30/6-must-have-mobile-tools-and-apps-for-house-hunters/http://realestate.aol.com/blog/2011/08/30/6-must-have-mobile-tools-and-apps-for-house-hunters/#commentsFiled under: , ,

Apps for House HuntersWhether you're a first-time home buyer or shopping around for your retirement home, the latest real estate apps for mobile devices put the marketplace at your fingertips -- literally.

Here's a set of basic apps that are great downloads for active house hunters. While many big-name real estate companies have useful, well-organized mobile property searches, we found this set to be particularly devoted to the needs of the user and blissfully free of any built-in bias. Inexpensive (several are free) and easy to use, these apps are invaluable for discovering properties in your price range, evaluating their renovation potential and estimating payments.

Do you have a favorite mobile app? Let us know in the comments section below.

1. 'Home Buying Power'

From: NotTooShabby Software
Who it's for: Home shoppers looking for an easy way to calculate mortgage payments on different properties.
How it works: Wondering how much house you can afford? Input your desired monthly payment or a percentage of your income, the amount of down payment and the loan terms, and this app tells you to the penny how much house you can afford. It'll also let you know whether the amount you want to pay each month is consistent with the down payment you're prepared to pony up. Keep track of the affordability of various properties as you search the marketplace, so you can stay focused on the right price point. Also included: Closing cost estimator and an amortization table for your loan.
Compatibility: iPhone, iPod Touch, iPad
Price: $1.99

2. 'Photo Measures'

From: Big Blue Pixel
Who it's for: Purchasers of fixer-uppers and anyone who's planning home improvements.
How it works: You've found a potential dream home but -- no surprise -- it's gonna take some work. With Photo Measure, you can take pics with your iPhone or iPad, then place arrows and measurements right on the photo so you'll have an accurate record of room dimensions, how big the windows are, and whether Aunt Rose's china hutch will fit in the corner. When it comes down to the nitty-gritty right before a final decision to buy, this app can really help you size up the situation.
Compatibility: iPhone, iPod Touch, iPad
Price: Lite version, free; pro version, $4.99

3. 'Complete Foreclosures'

From: Visionary Apps
Who it's for: Bargain-hunters looking for that rock-bottom foreclosure deal.
How it works: The new reality of the housing market has made foreclosed properties part of the real estate landscape. This app uses GPS to show foreclosed listings in your search area and sorts results according to your criteria for number of bedrooms, baths, and other features. A touch of a button puts you in contact with a real estate agent for more information or to schedule a showing.
Compatibility: iPhone, iPod Touch, iPad
Price: Free


4. 'Dictionary of Real Estate Terms'

From: Intersog
Who it's for: Anyone who wants to better understand the language of real estate.
How it works: Not entirely sure what your agent means when she starts throwing around terms like CMA and MLS? This easy-to-navigate glossary removes the mystery from the language of real estate with clear definitions backed by user-friendly charts and graphs. More than 3,000 terms help you understand the nuances of buying, selling, and searching for your next home.
Compatibility: BlackBerry
Price: $2.99

5. 'CrumbTracks'

From: BigForge
Who it's for: The less-than-anal-retentive house-hunter
How it works: After a whirlwind weekend of visiting open houses, you might find yourself confused about which place had that great farmhouse sink and which one had the scary shag carpet. CrumbTracks organizes properties to help you keep track of what you've seen. Create a separate file for each property to stash photos and videos, vital stats on rooms and square footage, and notes on prices and features. A mapping function pinpoints prospective houses and shows nearby schools, parks, and churches.
Compatibility: iPhone, iPod Touch, iPad
Price: Free

6. 'Property Flipper'

From: Wasatch Digital Media
Who it's for: Anyone brave enough to try their hand at house-flipping in the current market
How it works: This nifty app lets you calculate a possible profit from your real estate investment. Input purchase and potential sale prices, the cost of improvements, the amount of time that you expect to hold the property and other costs, and the app completes a "flip analysis" of the venture, complete with your bottom-line profit. Drag the slider to increase or decrease the holding period, and the numbers automatically update. A built-in mortgage calculator spits back monthly payments for various down-payment scenarios.
Compatibility: iPhone, iPod Touch, iPad
Price: $2.99; pro version, $29.99




Also see:
Mobile Apps Put Home Listings at Your Fingertips
First-Time Homebuyer's Guide
How to Shop for Your First Home

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.

 

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]]>app storeappshouse huntinghouse hunting appsmobile appsmobile phone appsreal estate appsJohn Riha2011-08-30T16:48:00+00:00Why Are So Many Real Estate Deals Falling Apart?http://realestate.aol.com/blog/2011/08/03/why-are-so-many-real-estate-deals-falling-apart/http://realestate.aol.com/blog/2011/08/03/why-are-so-many-real-estate-deals-falling-apart/http://realestate.aol.com/blog/2011/08/03/why-are-so-many-real-estate-deals-falling-apart/#commentsFiled under: , , , ,

It's been hard enough just to find a buyer for your house. Now the challenge is to drag them across the finish line. Only two-thirds of opened escrows close on time and 16 percent of the deals fall apart without closing.

Of agents polled in June by the National Association of Realtors, one in six reported having a deal fall apart the previous month before it closed escrow. Previously, the number was one in 25.

Why the uptick? Buyers' remorse is cited among the top reasons, often disguised as displeasure with items that turn up in the inspections. Things that buyers would have overlooked in years or months past are now deal-busters, agents say. Bad economic news at the beginning of the month may have caused some buyer jitters, said the agents polled.

There are also issues on the financial side that raise agents' blood pressure: Lenders who won't approve mortgage loans, appraisals that come in lower than the agreed upon sales price, short sales that drag on so long that buyers fear the home's value has dropped further and get cold feet. A full 32 percent of buyers either cancelled their contracts or had to delay closing or renegotiate to a lower price because the appraisal came in lower than anticipated.

What was the conclusion of NAR's Realtors Confidence Index? The rental market has increased significantly and some sellers may chose to become landlords instead of dealing with the hassle of selling.

Also see:
Mortgage Interest Deduction: Housing Boon or Boondoggle?
Case-Shiller Index: 3 Reasons to Blow It Off
Bank of America Donating Foreclosed Homes

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
See celebrity real estate.

 

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]]>NARAnn Brenoff2011-08-03T14:51:00+00:00Selling Your House? Get Out the Paint Rollerhttp://realestate.aol.com/blog/2011/06/07/selling-your-house-get-out-the-paint-roller/http://realestate.aol.com/blog/2011/06/07/selling-your-house-get-out-the-paint-roller/http://realestate.aol.com/blog/2011/06/07/selling-your-house-get-out-the-paint-roller/#commentsFiled under: , ,

If you're trying to sell your house, the first thing a Realtor will tell you is to break out the paint roller. A fresh coat of paint is the quickest and least expensive way to lighten, brighten and perk up a home's interior. It's also a job you can tackle yourself--if you do it right. In today's "DIY Diagnosis," our friend Brie Dyas at DIYLife tells you how to paint a room for great results.


The arrival of a new season always triggers a need to change up the wall colors in my home. And when I want a change, I want one now. But when it comes to painting a room, it's easy to get swept up in getting the job done instead of getting the job done right. Here's a handy list of common problems that can come up, why they did and how you can stop 'em.

- A dark hue looks faded. This happens when you paint over a light color with darker one. To prevent this from happening, apply a gray-tinted primer coat in between. This will stop the lighter hue from bleeding through the bolder one, and will create a neutral base that'll let bold hues look their best.

- A random shiny spot appears a week after painting. When a flat paint is applied to a high-traffic area, a glossy spot can appear where hands (or a sponge) frequently comes in contact with the painted surface, rubbing off the matte finish. So, when it comes to high-traffic areas where you know you'll have to do some cleaning, go for a semi-gloss.

For the rest of the tips, read the full story at DIYLife.

Want more interior painting advice? These AOL Real Estate guides can help:

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.

 

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]]>DiyLifehome improvementinterior paintingpainting a roompainting to sellAOL Real Estate Editors2011-06-07T11:30:00+00:00Tempted to Invest in Real Estate? Read This Firsthttp://realestate.aol.com/blog/2011/06/03/tempted-to-invest-in-real-estate-read-this-first/http://realestate.aol.com/blog/2011/06/03/tempted-to-invest-in-real-estate-read-this-first/http://realestate.aol.com/blog/2011/06/03/tempted-to-invest-in-real-estate-read-this-first/#commentsFiled under: , , , ,

invest real estateWith home values depressed and interest rates low, a lot of folks are beating the drum for real estate investment. "Record affordability provides rare window of opportunity," announces a recent Inman News report on the hottest investment markets. "Housing is back -- beat the crowd!" urges Fortune magazine. Don't get left behind in the interest-rate dust, warns the Mortgage Bankers Association.

So if you have the means and you're tempted to buy property with the aim of renting it out and/or flipping it for a profit, what do you really need to know? We asked seven leading real estate investment bloggers for their best advice on how novices can jump into the game.

1. Richard Warren, author of "A Rehabber's Tale, the Reality of Fixing and Flipping Real Estate" and frequent speaker before real estate investment clubs:

Start small with something you can handle. My first foray into real estate investing was a learning experience of epic proportions. After watching a few too many episodes of "This Old House," and having some very basic experience in home improvements, I set out to renovate a foreclosure on Long Island. I embarked on a project that was so ambitious that I'm still amazed that I not only survived, but made a small profit. It was planned as a six-month project but actually lasted more than two years.

I can't stress enough that novice investors need to stay within their abilities until they acquire some experience. Risk is inherent in real-estate investing. It is not something that can ever be avoided, but it can be managed in a way that increases the likelihood of success. While experience is certainly the best teacher, there is much that can be learned from books and real estate websites such as Bigger Pockets. Take the time to learn before taking the plunge into investing.

2. J. Scott Steinhorn, a fix-and-flip rehabber and landlord out of the Atlanta area:

In many ways, being a professional investor is analogous to being a professional athlete -- you don't start by hitting home runs or shooting three-pointers. Instead, you hone your skills by spending time learning, practicing and truly understanding the basics.

For real estate investors, these basics include: researching your local real estate market, analyzing investment deals, understanding property values, estimating renovation costs, defining your business and tax entities, networking with successful investors, etc. With the plethora of websites devoted to real estate these days, all the information you need to put yourself on the track to becoming a world-class investor is right at your fingertips. If you truly want to achieve long-term success as a real estate investor, take the time to build a strong foundation of knowledge and skills.

3. Peter R. Giardini, expert in current economic and housing issues, successful real estate investor and coach:

Don't just jump in! Spend time learning your local market from both an economic and housing point of view. Become a member of your local real estate investors association and network with other investors who are actually doing deals. Offer to take them to lunch and learn from them which strategies (wholesaling, rehabbing, renting, lease-option, tax liens, etc.) are working in your market.

Develop a plan that captures those strategies, recognizes your weaknesses and plays to your strengths. Figure out what resources (critical education, contractors, Realtors, funding sources, etc.) you need to get started. Pick one strategy and become an expert at it. Stay focused and don't switch strategies! Remember Rome was not built in a day, and you can't eat an entire elephant in one sitting.

4. Joshua Dorkin, founder and CEO of the real estate investment website
BiggerPockets.

It is so easy to get caught up in the hype and excitement that go with the premise of getting rich from real estate investing. One of the most common mistakes I see new investors make is to jump in and buy a property without the fundamental understanding of what happens next. In fact, they typically don't understand if what they just bought is even a good deal.

If you don't know how to evaluate a property -- from the perspective of a potential landlord or flipper -- learn how. If you don't know how to manage, market, evaluate, lease or sell, then learn. Treating your real-estate investing like a business will save you hardship and potentially serious financial losses. The popular saying in real estate is that you make your money when you cut your deal to buy the property, not when you sell it. That's 100% true.

5. Marty Boardman, Chief Financial Officer for Rising Sun Capital Group, LLC, a real estate investment firm based in Gilbert, Ariz. His firm purchases homes at the courthouse steps and public REO auctions.

So you want to be a real estate investor? What should you do first? Become a Realtor. As a Realtor, you'll have total access to the Multiple Listing Service in your area. That's where you'll find bargains on REOs and short sales. More importantly, you'll need the MLS to do market analysis. It's unrealistic to ask a Realtor to do this work for you, especially in the beginning.

Most Realtors I know don't have the time to help fledgling real estate investors with their due diligence. Sure, there are real estate attorneys and investment gurus that say you shouldn't hold a real estate license. That's because as a real estate professional you will be held to a higher standard. If you are a licensed Realtor and act irresponsibly while transacting a deal there will be painful consequences (like stiff fines and penalties from the state real estate board). But I like being held to a higher standard. I also like knowing if I get into a deal and there are problems I'll have the support of my real estate broker and the state association of Realtors.

6. Jon Holdman, Flying Phoenix LLC, real-estate investor who owns Denver rental properties and has invested in fix-and-flip, development, and mini-storage projects.

If you want to buy rental properties, you need to understand the reality of expenses. New investors sometimes are told "This property has a cash flow. The rent is $1,000 a month and your PITI with 20% down will be only $700. That's $300 a month in your pocket." While taxes and insurance are the start of your expenses, they're only the start. There are many other costs, such as maintenance, property management, utilities, advertising, and legal and accounting charges. In addition to expenses, there will be big capital items such as new roofs, furnaces and sewer lines. Sometimes you have some outlandish expense like a tenant who goes ballistic and does a lot of damage. Or, you have to spend six months with no rent doing an eviction.

If you own one property for a few years, you might get lucky and avoid these items. But if you want to build a portfolio of a dozen properties and hold them for several decades, you will have to deal with these things. A roof lasts 20 years. So, you better budget 5 percent of the cost of a roof every year for every property. If you own 20 properties, you'll be replacing, roughly, a roof every year. And you will have vacancies. Even if vacancies are low in your area, when one tenant moves out you will have to do some cleaning and repairs -- "make ready" as it's known in the business -- before the next one moves in. It's impossible to predict the exact expenses that will apply to any particular property in any particular year. Nevertheless, it is almost always more than taxes and insurance. Setting aside some of your cash flow to cover these unpredictable but inevitable expenses will keep you from losing your property when you're faced with a big bill.

7. William Barnard of Barnard Enterprises, Inc., a full-time real estate investor who has invested in spec building, land development, foreclosure acquisitions, flipping and landlording. He does millions of dollars of real estate transactions each year.

To become a real estate investor, you need both determination and self-motivation. Many try and fail at real estate, mostly because they believe that making money in real estate is easy. It is not. While it is not rocket science, it is hard work.

For me, starting out was an emotional roller coaster. One day, you feel like you are on top of the world, and the next, in a hole too deep for a ladder. Individuals must understand that you must weather the storm, which is where the determination comes in. If failure is not an option, how can you fail? Education is the third important factor and without it, negative life-changing errors can be made. Get educated properly from those with experience in the specific strategy you intend to utilize. Focusing on one strategy will help prevent you from spinning your wheels."

How to Profit from Real Estate Investments

Are you tempted to invest in real estate now in order to rent or flip it?
Yes, to rent it.80 (49.1%)
Yes, for resale.50 (30.7%)
No, are you flipping crazy?12 (7.4%)
I only wish I could afford to.21 (12.9%)



These AOL Real Estate guides can help, whether you're in the market to buy, rent or sell:
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.

 

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]]>how to invest in real estateinvest real estateinvesting in real estatereal estate investmentAnn Brenoff2011-06-03T10:59:00+00:00Why Selling Your House Furnished Can Cost Youhttp://realestate.aol.com/blog/2011/06/01/why-selling-your-house-furnished-can-cost-you/http://realestate.aol.com/blog/2011/06/01/why-selling-your-house-furnished-can-cost-you/http://realestate.aol.com/blog/2011/06/01/why-selling-your-house-furnished-can-cost-you/#commentsFiled under: , , ,

When homeowners list their house for sale, they frequently consider trying to sell it furnished. After all, those Shaker chairs that worked perfectly in the old New England farmhouse are going to look downright wrong in the sleek new Florida contemporary. Worse yet, who wants the added hassle and expense of moving things they don't want anymore?

Don't do it, say realty and tax experts. Not only will listing your house furnished complicate your deal, it could also wind up costing you money.

Experts cite three main reasons why listing at a price that includes furnishings is a bad idea:

1. Real estate agents are paid a commission on the final sales price of the home.

If you're selling for $500,000 and pay a 6 percent commission, you'll owe the agents involved $30,000. If you throw in the furniture and the buyer agrees to pay you $525,000, you just boosted the agents' fee by $1,500.

A better solution: Hold a garage sale, advertise on Craigslist or simply call your local charity thrift store and get a nice tax deduction for your donation. Or you can negotiate the price of the furniture privately with your buyer; just keep it out of the escrow process.

2. Having a higher price tag may mean that the home won't appraise for enough.

Appraisers look at comparable recent sales of properties in your neighborhood to determine what yours is worth. If everyone else sold for $500,000, they won't agree your house is worth more because it's being sold furnished. Most likely they won't know -- and they certainly won't care. A mortgage is a home loan, not a furniture loan. If the appraisal comes in low as a result, that could jeopardize your buyer's financing.

3. Why pay capital gains on something you don't have to?

You can make up to $250,000 in profit on the sale of your primary residence if you're a single owner, double that if you're married, without having to pay capital gains tax. If you exceed those amounts, you'll have to pony up. Why inflate the amount of tax you owe?

There are exceptions to the no-furnishings rule, of course. Architects like Ed Niles frequently design furniture expressly for the homes they build. When that original seller lists the property, they often include the custom-built furnishings.

Even then, though, don't be surprised if some buyers thumb their nose at the offer. "Buyers like to do their own decorating," says Melissa Oliver, Coldwell Banker, Los Angeles. "It helps them make the house their own."

By all means, adds Oliver, keep the furniture in the property while it's listed for sale. "Just don't make it part of the deal."


For more tips on selling a home see these AOL Real Estate guides.
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.

 

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]]>home stagingselling your homeselling your home furnishedAnn Brenoff2011-06-01T14:12:00+00:00Short Sales: Nightmare or a Path to Financial Solvency?http://realestate.aol.com/blog/2011/05/24/short-sales-nightmare-or-a-path-to-financial-solvency/http://realestate.aol.com/blog/2011/05/24/short-sales-nightmare-or-a-path-to-financial-solvency/http://realestate.aol.com/blog/2011/05/24/short-sales-nightmare-or-a-path-to-financial-solvency/#commentsFiled under: , , , , , ,

short saleShort sales, the hot potatoes of the real-estate market, are becoming easier to handle. Over the next three years, look for the number of short sales and mediations to grow, as the last reset of those toxic adjustable-rate mortgages comes due and major banks and their servicing divisions get more cooperative.

But throwing a line to upside-down homeowners isn't happening out of the goodness of lenders' hearts. They've just figured out that it's a smarter way to do business.

Michelle D. Plevel, broker and short sales division consultant with Chase International, says that over the past three years, lenders have learned that letting homes go into foreclosure left them holding properties that continued to devalue, and in many cases degenerated physically when left unoccupied. Not to mention the public pressure against allowing foreclosed homes to blight neighborhoods and decrease property values. "Lenders have realized that a short sale is much better," said Plevel.

The biggest obstacle is servicing time: How long it takes the lender to approve the short sale, especially if there's more than one lender involved. That can scare off a potential buyer. (At a recent short sale symposium for real estate agents, Housing Pulse reported that it takes, on average, three potential buyers to make a short sale stick.) And since short sale properties are sold "as is," there's also some uncertainty about what you're buying.

A Breeding Ground for Alligators?

Julie Escobar, a single mom of three teenage daughters, bid on a $149,000 Tampa, Fla., short sale last year so that she could take advantage of the tax credit offered to first-time home buyers. "The paperwork was a long process," she said, "but for me, the scariest part was the condition of the house. What was I buying?"

Her biggest fear was what lurked in the "black swamp" in the yard -- the in-ground pool. "It was pure sludge," she recalled, perfect conditions for those Florida alligators. She'd heard that some sellers, angry about losing their homes, use the pool as a receptacle for everything, including car engines, washing machines and household trash.

Escobar closed escrow in 60 days, then assembled a band of teenagers to fish through the muck. Luckily, there were no reptiles. "Everything worked out," Escobar said, "but I definitely felt that I took a risk."

For sellers, the risk is not getting the debt relief they seek, ending up in foreclosure, and taking a big hit to their credit rating. Ayanna Dookie bought her home in Baltimore in 2007 for $182,000, getting a 10-year, fixed-rate, interest-only loan. When she decided to move to New York a few years later to pursue an entertainment career, "property values had dropped way below what I had paid for the house," Dookie said. She ended up selling for $89,000 -- less than half what she owed the bank.

The short sale dropped her credit rating from 725 to 697, but at 29, she's not worried. "I have time to rebuild. This is the time to follow my dreams."

Getting Short Sale Help

Short sale expert Plevel said that the No. 1 thing for sellers pursuing a short sale to do is find someone strategically trained in loss mitigation.

"John Q. Public can't handle a short sale by themselves," she said, "and many real estate agents lack the experience."

Plevel counsels that sellers should ask potential listing agents how many loan modifications and defaults they've handled, and then check their references and ask those clients how the process went.

Rick Keefer of Pacific Union International in the San Francisco Bay Area, another short sale consultant who has closed about $7 million in short sales, suggests these additional tips:

1. Complete short-sale documentation prior to placing your property on the market. That way, an experienced agent/negotiator can identify any potential obstacles. For instance, a second lienholder may want a contribution to remove the lien or to completely extinguish the debt. Many transactions fail, Keefer said, because all the details don't emerge until weeks or months into the deal.

2. Don't list too low to start. Banks like to see some days on the market at a reasonable asking price. If you start out too low, the bank may reject your offer. List the property at a fair price, then adjust the price every few weeks until you get an offer.

3. Lenders don't like to make concessions for repairs. Buyers should inspect the property and send the lender an as-is offer.

4. Take the long view. Make sure the buyer is committed and in the deal for the long haul. If a transaction fails, you have to start at square one and end up losing valuable time.

For more on short sales and related topics, see these AOL Real Estate guides:

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.

 

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]]>real+estate+short+sale+processrealestateshortsaleprocessAnn Brenoff2011-05-24T15:00:00+00:00Credit Score Catch-22: Mortgage Shopping Can Raise Your Ratehttp://realestate.aol.com/blog/2011/05/19/credit-score-catch-22-shopping-for-a-mortgage-can-raise-your-ra/http://realestate.aol.com/blog/2011/05/19/credit-score-catch-22-shopping-for-a-mortgage-can-raise-your-ra/http://realestate.aol.com/blog/2011/05/19/credit-score-catch-22-shopping-for-a-mortgage-can-raise-your-ra/#commentsFiled under: , , ,

mortgage closing costsIt's a Catch-22 if ever there was one. The very process of shopping around for a low interest rate on a mortgage can adversely impact your credit score and cost you your eligibility for the cheaper loan you're seeking.

Each time a lender does what is known as a "hard pull" on your credit report, their action actually shaves a few points off your score. A lower credit score means a higher mortgage rate. (You can check your own score 500 times a day and it won't matter. A hard pull is when a third party checks your score with the intent of extending you credit.)

With lenders tightening the noose, credit scores have become a matter of great concern for home buyers struggling to qualify for loans. Getting a favorable loan rate can mean saving hundreds of thousands of dollars over the course of the loan, so the idea that just in the course of loan-shopping you are doing yourself financial damage is logic-defying. But it's true.

The one break you can get is to do all your loan shopping within a two-week window. All checks done within this period will count as one -- and drop your credit score by just two to five points. But step outside that window, and each hard pull of your credit will cost you two to five points. Shop among eight lenders and you could see your scores drop by 40 points -- a drop that takes at least six months to recover from.

Tracy Becker, a national credit-score specialist located in New York's Hudson Valley and founder of the 20-year-old North Shore Advisory, offers these tips:

1. Don't open or close any credit accounts for three months prior to applying for a loan.

Yes, you read that right: Closing a credit account hurts just as much as opening a new one. Even the act of ending your car lease will cost you up to 60 points on your credit score.

Somewhere, some place, some analyst determined that one of the symptoms of a person about to go into default was that they began to close credit accounts. Well, duh. Isn't that what you're supposed to do when you find yourself overextended? Apparently the credit scorekeepers lump the financially solvent in with the defaulters' profile. So if your car lease is about to expire, extend it for three months while you loan shop, says Becker. And don't apply to increase your credit limits on any cards or take out any new ones.

2. Don't apply for a loan until you have a signed contract to buy a house and then do an intense day of loan-shopping.

The idea is to have all your hard pulls done within the 14-day window. One obvious problem is that not all home deals come to fruition. Estimates are that about 35 percent of open escrows fall apart. That means that those 35 percent of buyers will likely be back out there looking for another home and another home loan. And when they find it, their earlier efforts could work against them. The one glimmer of reasonableness here is that if you return within 90 days to the initial lender you approached, they will consider the credit score they pulled on that first go-round.

Becker had a client about a year ago who wanted to refinance his Long Island home. Not knowing the rules, he shopped for a loan about 30 times over a five-month period. He also went shopping for a car loan, got a credit card limit increase and was looking for a student loan for his daughter. The result: His credit score dropped 40 points and he couldn't get the mortgage loan he wanted, at a cost to him of an extra $600 a month.

Another of her clients had a credit score of 722 when he started looking to refinance his home. But he went out and bought a car, dropping his score by four points. Once under the credit threshold of 720, the refi application was denied. "Ultimately he paid down some balances and got back the extra points, but it was a lot of stress, a lot of paperwork and two-and-a-half months to get the loan he wanted," says Becker.

3. Don't let your balances exceed more than 10 percent of your available credit for at least three months, and pay your bills on time.

Getting a home loan these days is hard for everyone, and near impossible for those who have bad credit. Becker says to keep your balances below 10 percent of your available credit for at least three months prior to applying. That means if you have a credit card with a ceiling of $10,000, don't let the balance exceed $1,000. And since the credit reporting bureaus don't update their sites daily, you need to allow for a three-month delay.

FICO last month released information about how easily even a single unpaid bill can wreak havoc with your credit score. If you have a score of 780 and are 30 days late on your mortgage, your score will drop to 670 and it will take you three years to recover it. (Obviously, the F in FICO doesn't stand for Forgiveness.)

Credit consultant and head of New Start Financial Corp. Wayne Sanford -- a.k.a. "Wayne the Credit Guy" -- says that credit scores are just part of the equation.

He recently worked with a Texas family trying to buy a $330,000 home in Plano. The couple was ready to put $150,000 on the purchase and had scores of 690 and 740 between them. Yet the loan was flagged because a well-known national furniture store had marked their account as having a "consumer dispute." It was a computer error; the account had never been disputed and had in fact been paid in full on time and was closed. Nevertheless, it held up their loan and they almost lost their house deal.

Sanford advises running regular checks on your credit--which, by the way, won't impact your scores.

For more on credit scores and related topics, see these AOL Real Estate guides:


More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.

 

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]]>closing costscredit reportcredit scoreficomortgage ratesmortgagesAnn Brenoff2011-05-19T13:05:00+00:00Home Security: Staying Safe in Your New Househttp://realestate.aol.com/blog/2011/03/02/home-security-staying-safe-in-your-house/http://realestate.aol.com/blog/2011/03/02/home-security-staying-safe-in-your-house/http://realestate.aol.com/blog/2011/03/02/home-security-staying-safe-in-your-house/#commentsFiled under: , , ,


home securityHome security is a primary concern for many homeowners, particularly those who are away at work during the day or who take frequent vacations. Knowing your home and knowing your neighborhood are key, especially for new homeowners. Nikki Pepper at our sister site, ShelterPop, provides some helpful tips.


Whether you're going on an extended vacation or just going to work for the day, the comfort of knowing your home is safe is priceless. Watch to get secure advice -- no pun pun intended -- in these clips.

Moving in to a new home? Here's what you need to know, from door locks to scoping out the neighborhood.

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Read more at ShelterPop.com.

Thinking about adding value with home improvements? Here are some AOL Real Estate guides to help you, whether you're selling or staying.

 

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]]>home securityhome security systemshome security tipslocksmithsecurity cameraAol Real Estate Staff2011-03-02T17:13:00+00:00Last-Minute Apartment Rental Tipshttp://realestate.aol.com/blog/2011/02/04/last-minute-apartment-rental-tips/http://realestate.aol.com/blog/2011/02/04/last-minute-apartment-rental-tips/http://realestate.aol.com/blog/2011/02/04/last-minute-apartment-rental-tips/#commentsFiled under: , ,

don't panic over last-minute apartment rentalsOne day, Tanya Alison got an urgent phone call from a friend in need of an apartment rental. "She was moving here with a husband, a dog and two cats in less than two weeks," Alison explains from her Brooklyn apartment. "She was flying in for twenty-four hours and intended to use the ones in which she wasn't asleep apartment hunting."

New York City, with its 2.8% vacancy rate, is decidedly one of the nation's most expensive (and difficult to navigate) markets for apartment rentals, according to Forbes Magazine. So Allison's friend had her work cut out for her.

Finding the right apartment rental, even in the coldest of markets, definitely takes time. But finding one at the last minute is hardly impossible, if you know where--and how--to look. Here are some expert tips for landing an apartment rental in record time.


1. Be Prepared: "Set up appointments with a broker in advance if you can," suggests Nina Miller, a broker in Chicago, Ill. But do your own homework, too, checking apartment rental listings on AOL Real Estate, apartments.com, rentals.com or even Craigslist. That way you are certain to have a few options that you have already vetted for price point, location and necessities (like buildings that allow pets.)


2. Create Time: Just because you don't have time to find the perfect apartment rental now doesn't mean you can't make time later. "Subletting can be a great way to inexpensively extend the time you need to figure out the best home for you," says Miller. A lot of subletters need someone to move in right away and will give you a good deal to do so. With the money you save, you can put your personal items in storage while you slowly and deliberately find the perfect apartment rental.

3. Get Some Help: If you know people living in the city to which you are moving, enlist their help in finding you a great apartment rental. Yes, this is a huge request to make of someone, so be specific. For example, ask a friend to help you by going through your list of potential places to weed out shady blocks or hard-to-get-to neighborhoods. If you ask them to go see a couple of rental apartments for you, you owe them dinner. If you ask for more than that, you might want to think about offering to babysit their kids/dogs or housesit over their next vacation.

4. Choose a Shorter Lease: "You can always ask the landlord for a shorter lease if you are truly unsure about the last-minute apartment rental you're choosing," says Miller. "Some are more than happy to go down to six months and in some cases, month to month, especially if the neighborhood is on its way up." That way everyone wins: You get more time to find the best space for you, and the landlord can collect some rent until the popularity of the neighborhood matures and then increase the asking price accordingly.

5. Use the Time Crunch to Your Advantage: Housing managers are anxious to collect rent as quickly and as regularly as possible. "You actually might end up getting an even better deal than you would have if you were hunting weeks before your move-in date," notes Miller. So be clear that you are ready to move in right away--and start paying rent right away--and see if you can finagle a few bucks a month off rent or some other perk you might otherwise be unable to leverage.

6. Couch Surf: Obviously this is a worst-case scenario, but if you're taking finding a rental apartment down to the wire, you need a back-up plan. Have an idea about what you are going to do in the event you do not get everything signed on the dotted line in time for your desired move-in. It will take the edge off of the inevitable frantic nature of your search.

7. Look for People Looking to Rent Spaces Quickly: "It might sound obvious," says Miller, "but people looking to rent quickly should look for people who are looking to rent their space quickly." In an already complicated world of apartment rentals, sometimes its easy to forget that for every last-minute renter, there is a last-minute owner. When you bring the two together, it can be a truly harmonious thing. Many websites posting rentals devote a section to people look for renters right now, so find them and call ahead.

Tanya Allison and her friend combed the streets of Brooklyn looking for homes in the correct price range, taking into account her pets and general living needs.

"At the end of a very long day we found a place that would take my friend, her husband and their menagerie," says Allison. "I am not sure I want to see her for a while," she adds, laughing, "but we did it, so happily she will not be crashing in my guest room."

Still trying to decide which is right for you? Here are some AOL Real Estate guides to help you no matter whether you choose to buy or rent:
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.

 

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]]>apartment rentalsApartmentRentalslast-minute rentalsrental apartmentsrental+apartmentrentalapartmentrentalsJoselin Linder2011-02-04T12:00:00+00:00Homeowners Check List for 2011http://realestate.aol.com/blog/2011/01/04/homeowners-check-list-for-2011/http://realestate.aol.com/blog/2011/01/04/homeowners-check-list-for-2011/http://realestate.aol.com/blog/2011/01/04/homeowners-check-list-for-2011/#commentsFiled under: , , ,

homeowner predictions for 2011Homeowners have different needs than buyers and sellers: Mainly, they already own homes, and therefore are less affected by day-to-day market issues. Still, 2011 promises to bring some new twists to this large group of consumers. Tara-Nicholle Nelson of our sister site, WalletPop.com, gives a glimpse at some of the housing issues homeowners are likely to face.


Often, the media looks at real estate and mortgage in terms of market dynamics and how they impact buyers and sellers. The fact is, homeowners who have no immediate plans to sell actually outnumber those other consumer segments.

Here are some predictions for what the market will hold for homeowners in 2011:

1. Principal-Reducing Loan Modifications Remain Elusive

Principal reductions--loan mods that forgive some of the outstanding loan balance that a homeowner owes on a mortgage--have long been the Holy Grail of the loan modification world. Upside-down homeowners literally stand with noses pressed against the bakery window, salivating at the anecdote of a friend's cousin who got his loan balance reduced. Or the news reports that come up every six months or so, saying that the Obama administration/the banks/Congress/Fannie Mae/Freddie Mac/FHA is (again) urging/considering/hearing testimony in favor of widespread principal reduction programs.

Read more at WalletPop.com.

 

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]]>homeownersHomeowners associationHomeownersAssociationHomeOwnershiploan modificationsLoanModificationsrefinancingAol Real Estate Staff2011-01-04T10:00:00+00:00Use Your Rental to Make Extra Moneyhttp://realestate.aol.com/blog/2010/11/22/use-your-rental-to-make-extra-money/http://realestate.aol.com/blog/2010/11/22/use-your-rental-to-make-extra-money/http://realestate.aol.com/blog/2010/11/22/use-your-rental-to-make-extra-money/#commentsFiled under:

It doesn't take much these days to find oneself strapped for cash. When you own your home, you don't always need outside approval to use your space to make extra money. But with a little creativity and know-how, even renters can use their homes to generate income.

"Around the same time I first got serious with my boyfriend, my roommate moved out," says New Yorker Marsha Arre, a marketing executive from the Astoria neighborhood in Queens. "I needed help covering my rent. So I asked my boyfriend if I could crash with him for two weeks and posted on craigslist that I had a furnished apartment someone could rent for the cost of half my rent."

Though your landlord may not approve of some of these ideas, were he or she to find out about them, if you use them carefully and in moderation, they just might bring in a little extra income when you need it most. By using the following suggestions you can take your rental from "living-space" to "make-a-living-space":


1. Be a weekend bed & breakfast

If you live in a city that doubles as a destination, sometimes the prices offered by local accommodations are downright exorbitant. There are even places that "in season" require vacationers to book for a minimum of two nights.

And this is where you and your bedroom come in: By charging a reasonable rate and posting it on the internet (make
Search Apartments and Homes for Rent
See photos of apartments and homes for rent in your area on RentedSpaces
sure you are able to screen potential houseguests for your own safety) -- make a little extra money by letting people stay over for the night and enjoy a light breakfast in the morning. Guests for one night, once a month, can help cover a week's worth of groceries. And, after all, isn't that why you bought the extra comfy sofa?


2. Throw a "we're broke" party

In order to help pay for your monthly needs, host a party at which you charge a small cover at the door, promising to apply it toward your bills. Generally, a good sob-story about job loss, illness or inflated rent are helpful tools for tugging at heartstrings. Once inside, make sure you have a few refreshments, like pretzels and candy, and keep the music playing. Even if the party is BYOB, people are often happy to pay a small amount to spend time with friends at a party.


3. Make your home a film location

Ever wonder whose homes end up in movies, commercials and television shows? Yours could be one of them. "Location scouts are always looking for places to shoot," says Angie Faucet, a location manager in New York. "People who want to rent their places contact location services companies."

While, legally, you will need the approval of your building's management, if you pitch the idea in advance, compensation is usually such that you won't have a problem talking them into splitting it with you 50/50.

"I've had a few shoots in my apartment," says Brittany Laskowitz of lower Manhattan. "Once they even left me with an awesome new paint job."


4. Write off your home

"Even if you only do a small amount of business out of your home, you can write off a portion of your rent," says accountant Jodi Margolies, in Columbus, Ohio. Make sure you go through an accountant so that you write off the correct amount. But you might be lucky enough to find that you can also write off a portion of your car payments, home computer and cell phone as well. It will save you money in the long run, so look into it now.


5. Make your home a showroom

Invite friends over for sales parties. Many makeup, appliance and kitchenwares companies look for clients to host events, at which their friends come to their homes and buy the products. Tupperware and Mary Kay Cosmetics are both still around and have gotten even cooler since your Aunt Madge was doing it in the '80s. The Pampered Chef offers offers an array of kitchenware products.


6. Sublet

A full-on sublet situation might get you in trouble with your landlord. However, you might be able to get away with it for the short term. If you live in a rent-controlled apartment in a popular neighborhood, and if you are able to move in with friends, family or a significant other for a season, you can charge subletters what the apartment is worth, instead of what you pay. So when you move back home, all that extra rent is pure profit.

"I told my neighbors I had friends staying in my place one month and moved all my stuff into one room, leaving the rest of the house for their use," says Arre of her one-month subletting experience. "It went great, and after they left, my boyfriend moved in so I didn't have to worry about covering the whole rent by myself again!"

Want to know how to deal with other rental issues? Here are some AOL Real Estate guides that can help:

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.

 

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]]>craigslistearning moneyextra incomemaking-moneyrental tipssublettingJoselin Linder2010-11-22T07:44:00+00:00