It’s all the talk among the real estate blogs. Have you heard?
I had not written an article on real estate short sales because there is so much out there already. I decided to get up early this morning and see if anybody had written anything that would explain this process to a lay-person (a lay-person in short sales is somebody who owns a home with lots of equity — humor).
So what exactly is a short sale?
A real estate short sale is when a home gets sold and the proceeds from the sale “fall short” of what the property owners owes on the mortgage(s) on the home. The bank(s) agrees prior to closing to accept a lesser amount than what it is owned. The bank will do this if it feels it will get more money through a short sale than through the timely and expensive cost of a foreclosure action. The property owner will often consider a real estate short sale when the owner receives assurance from the bank the loan will be deemed “paid in full.” Sometimes though, the property owner’s only option is the short sale, even if a deficiency judgement results in the process.
Some Short Sale Advice
If you own a home that is highly leveraged (read that to mean that you borrowed as much money on it as you could sometime in the past three years) and you need to move for one reason or another, you need to know that you basically have four options right now:
1. Don’t move, stay in the property
2. Lease the home out to a tenant
3. Sell the home on the market
4. Give the property back to the bank (surrender the property with a quit-claim or deed in lieu of foreclosure)
Because this is an article about real estate short sales, we will assume that number 1. and number 2. are not options for you. In order to determine if a short sale is the right solution, the next step is to meet with a real estate professional that is an expert in real estate short sales.
Interviewing the Real Estate Short Sale Expert
Once you have determined that you must sell your home and you are concerned about maintaining your credit rating, you must interview the best real estate company to successfully work through the real estate short sale. That’s right, the correct company. The short sale process is easy to talk about, but the reality is that few companies give good short sale advice. Good companies successfully help the property owner through to the very end, with complete forgiveness on the loan. Here are some critical issues you should address in the interview:
* Do-Conduct the interview at the office of the real estate company. Tour the facilities and make sure you are introduced to the team that manages short sales.
* Do-Find out what banks with which they have successfully negotiated (they should mention contacts in the bank’s Loss Mitigation Department).
* Do-Ask for specific sales (properties and names) that they have successfully concluded a real estate
short sale.
* Do-Ask for the basis of their short sales training.
* Do Not - be concerned with how many homes they sold in your neighborhood (unless they were short sales).
* Do Not - be concerned with the car that they drive.
* Do Not - be concerned with how many homes they sold in the past (during the boom market with few or no short sales).
The Real Estate Short Sale Process
First and foremost, one must realize that real estate short sales take much longer than “normal” sales. This is because the bank requires a due-diligence period to ensure that it is not being taken advantage of and to ensure that it is getting the best return on its investment. I believe that this is fair. But there are things that your real estate company can do to make the short sale process go quicker, and that is where experience is the key.
A real estate company with real estate short sale experience will have a kit, a package, or at least a process to expedite the lenders decision-making ability. This package should include everything the lender will need to form its opinion on the real recovery value of the property. Additionally, the real estate company giving you short sale advice should be prepared to provide the following information to the lender at first contact (Be proactive, do not wait for the lender to ask):
* Property Taxes - current status and annual amount
* Homeowners Association - Annual fees and contact information
* Lawn maintenance - current handler contact information and fee structure
* Code violations - current status and amount
* Pool maintenance - current status and monthly amount
* Utilities - current status and monthly amount
* Property Condition - current status and deferred maintenance needs
* True sale-able value - Provide comprehensive market analysis including homes on the market and homes that failed to sell
Once the lender(s) has made a decision, just remember that there are often layers of decision makers at every bank. All agreements must be approved through the lenders legal department, and this too adds to the time it takes to close on a real estate short sale.
Conclusion
If you plan on selling through a real estate short sale, just understand that it will take some work. In the long run, it will be worth the hassle as you will better protect your credit rating and you most likely won’t have to repay as much of the money. The choice of real estate expert could be the difference between success and failure, so choose wisely on who should give you this short sale advice.
If you plan on buying through a real estate short sale, remember that patience is a virtue. No matter what the home owner agrees upon in the sales contract, the bank will be the final decision maker in the process. The bank and the real estate professionals will determine how long the entire process takes, so choose your short sale advice (real estate company) carefully.
Thursday, October 30, 2008
Housing Crisis
These are trying times for those who need to buy, sell or invest in real estate. Is now the right time to get into or out of real estate ownership? Does the market still have farther to fall? Can I make money if I invest now?
The real estate investor's very first rule of success is do not invest in a market where prices are falling. You can do that in the stock market because you can profit by short selling. I know of no equivalent tactic in real estate.
The second rule is to understand how to identify the bottom of the market. Surprise! The only way you will be able to identify the bottom of the real estate market is after it happens!
Yes, I know, there is just so much "bargain" property being offered for sale that you feel like a fool for not grabbing some. When a bubble bursts it scatters confusion over the landscape. Confusion is what's infesting property values today.
At the top of the real estate bubble some poor soul paid $450,000 for a very ordinary home. Now, during a major market adjustment with few buyers, that desperate owner has dropped the selling price to $300,000. Wow, what a steal, right?
The truth is we won't really know the true value of that home until a few months after the market hits bottom. Buy it now for $300,000 and run the risk of it losing another $50,000 in value over the next eight months.
A recovery of real estate values will be delayed by the financial mess that has been created by the U.S. government. For the last 15 years our political leaders have been promoting an environment where almost anyone could buy a home. Whether they could afford
that home was a question never asked.
Wall Street's investment bankers jumped on that opportunity and packaged collections of shaky mortgages into packages they called "securities" and sold them for fat profits to financial institutions around the world. Your pension fund may own some of that junk.
Congress continues to spend more than it collects in taxes, so the country runs on money borrowed from China and Japan. How long can that last? As this is written one presidential candidate is promising to raise taxes. If the government would cut spending at the same time there might be reason for hope. No one inside the beltway seems to be advocating less spending.
More taxes will mean consumers will have fewer dollars available to qualify for mortgage loans. At some point soon the Federal Reserve must raise interest rates to hold off the inflation that is beginning to eat into the earnings and savings of every U.S. citizen. Higher rates will prevent tens of thousands of potential home buyers from being able to afford mortgage loans.
We won't ever mention the problems being created by The Federal Reserve's panic to try and save the economy by pumping billions of tax dollars into failing investment banks and mortgage lenders. In addition they are insisting that mortgage lending requirements be tightened. A good idea, but there go a few more tens of thousands who won't be able to get a real estate loan.
Another negative signal for real estate is the number of real estate agents canceling their memberships in multiple listing services and failing to renew their state licenses.
Yes, Virginia, the real estate market will find a bottom, and that bottom will be easily recognizable.... about six months after it occurs!
The real estate investor's very first rule of success is do not invest in a market where prices are falling. You can do that in the stock market because you can profit by short selling. I know of no equivalent tactic in real estate.
The second rule is to understand how to identify the bottom of the market. Surprise! The only way you will be able to identify the bottom of the real estate market is after it happens!
Yes, I know, there is just so much "bargain" property being offered for sale that you feel like a fool for not grabbing some. When a bubble bursts it scatters confusion over the landscape. Confusion is what's infesting property values today.
At the top of the real estate bubble some poor soul paid $450,000 for a very ordinary home. Now, during a major market adjustment with few buyers, that desperate owner has dropped the selling price to $300,000. Wow, what a steal, right?
The truth is we won't really know the true value of that home until a few months after the market hits bottom. Buy it now for $300,000 and run the risk of it losing another $50,000 in value over the next eight months.
A recovery of real estate values will be delayed by the financial mess that has been created by the U.S. government. For the last 15 years our political leaders have been promoting an environment where almost anyone could buy a home. Whether they could afford
that home was a question never asked.
Wall Street's investment bankers jumped on that opportunity and packaged collections of shaky mortgages into packages they called "securities" and sold them for fat profits to financial institutions around the world. Your pension fund may own some of that junk.
Congress continues to spend more than it collects in taxes, so the country runs on money borrowed from China and Japan. How long can that last? As this is written one presidential candidate is promising to raise taxes. If the government would cut spending at the same time there might be reason for hope. No one inside the beltway seems to be advocating less spending.
More taxes will mean consumers will have fewer dollars available to qualify for mortgage loans. At some point soon the Federal Reserve must raise interest rates to hold off the inflation that is beginning to eat into the earnings and savings of every U.S. citizen. Higher rates will prevent tens of thousands of potential home buyers from being able to afford mortgage loans.
We won't ever mention the problems being created by The Federal Reserve's panic to try and save the economy by pumping billions of tax dollars into failing investment banks and mortgage lenders. In addition they are insisting that mortgage lending requirements be tightened. A good idea, but there go a few more tens of thousands who won't be able to get a real estate loan.
Another negative signal for real estate is the number of real estate agents canceling their memberships in multiple listing services and failing to renew their state licenses.
Yes, Virginia, the real estate market will find a bottom, and that bottom will be easily recognizable.... about six months after it occurs!
Tuesday, October 28, 2008
Consider Commercial Real Estate
There are nearly endless career possibilities in this day and age. Almost any childhood dream could be turned into an actual profession it seems. As a career counselor, you might be amazed to learn how many adults in our society of option after option really have little or no idea of what kind of career is best for them. I meet with clients all the time who are dazed and confused with too many options and no real clue of what kinds of jobs fit them best. I mention a variety of job options to clients, but commercial real estate is one option that seems to come up quite often.
The thing about commercial real estate is that there will always be a need for people in that field. Why? Because our modern world is filled with people who are into businesses of all kinds. People will never stop needing space to rent or own for their businesses and services to the public. Therefore, going into commercial real estate as a profession is a wise move for anyone who wants flexibility yet job security for their future.
Basically, commercial real estate deals with all properties, both rental and for sale, that are not residential. So any coffeeshop, grocery store or book store that moves into an area must deal with a commercial real estate agent to make the purchase or rental agreement. Similarly, builders who specialize in buildings that will be used for non-residential things must use a commercial real estate agent in their planning and to rent or sell their buildings out for business.
If you are looking for a great career, then consider becoming a commercial real estate agent. Talk with current commercial real estate agents to learn more of what they do for a living. Think seriously about whether or not a job that works with the public is right for you, because a commercial real estate agent will be working with people constantly. If you are passionate about people and about business, then this could just be the profession for you.
Commercial real estate is a booming business that will continue to boom as long as people are in the business of selling things and offering services to the public. So jump into this profession while you can. Enjoy your days meeting with clients and helping them to secure the best possible space for the business of their dreams. You can be fulfilling your dream while helping others to fulfill their dreams as well.
Diversifying Through Real Estate
We should all diversify our investments over different asset classes. Real estate is an excellent vehicle for diversification.
Real estate rental properties used to be a perfect investment for high wage earners. They were able to deduct all the losses generated by the property - and when you added up mortgage payments, property taxes and maintenance, the losses could be substantial - from their gross incomes.
The IRS has rained on that parade. Real estate rental properties are now considered passive activity, even if you actively manage the property. The only ones who can take full advantage of real estate investing losses these days are the so-called “real estate professionals.”
However all is not lost. Even now you can deduct all the expenses of a rental from the gross rental income. If the losses exceed income, they are converted into passive activity losses which are not deductible against ordinary income, but are deductible against other passive activity income as well as any gain made when the property is sold.
Real estate investing offers several special advantages: the purchase can be highly leveraged, from zero down to the usual 20% down payment; the mortgage payments are generally tax deductible as are the taxes and expenses of maintaining the property; and if you own the property over a year, it is subject to long-term capital gains taxes – presently 15% - minus any accumulated passive activity losses.
Because of the highly leveraged nature of most real estate purchases, investors can afford to own multiple properties. Or you can start small, with one property, and use that as leverage on another house as your equity in grows.
However, real estate is unlike other investments. Unless you buy raw land, it requires management and maintenance, insurance and tax payments. There will even be continuing costs with raw land, property taxes and liability insurance being the major expenses. If you think you can’t be sued if someone trips on a log or falls into a hole on an undeveloped piece of property, think again. Ask your lawyer what the liability laws in your state are.
If you own rental buildings, they must be insured, properly maintained and rented out. Someone has to fix the problems and collect the rent. You can do this yourself, especially if you like being awakened at three in the morning because a toilet won’t flush – I’ve been there and done that. Or you can hire a management company to do this for you. Most work on a cost plus basis.
Because of all of this, you do need to find properties that either throw off good income from rents or have the potential for appreciation, especially if some repairs are done. In other words, you have to work out beforehand how any given piece of real estate will make money for you. If it won’t, keep looking.
Real estate prices are not as volatile as the stock market’s can be, but they do fluctuate. It is better to go into a real estate investment with a long term frame of mind and remember the rule “location, location, location”.
Over time real estate values tend to grow and, because of the leveraged nature of the investment, the growth is magnified. For example, 5% growth on $150,000 is $7500. But if you only have 20% down or $30,000 invested, that $7500 becomes a 25% return on your investment.
Of course you don’t have to own real estate outright. You can invest in “Real Estate Investment Trusts (REIT)”. These are professionally managed funds that usually invest in larger, commercial projects – shopping malls and office buildings. Your aim is long term capital appreciation. The investments are heavily leveraged and the tax benefits spread among the partners.
Since real estate does not necessarily move in the same directions as stocks or bonds and also generally tends to hold its value, this is a good diversification move, but you are unlikely to realize the gains you would see with individual real estate holdings.
Also, despite the fact that real estate is booming right now, it can and has fallen, sharply at times. There have been gluts of office space in major cities, overdevelopment of residential housing (remember the S&L debacle of about 15 years ago), or there could just be a general down real estate market from time to time.
Most of us have already diversified into real estate by purchasing our home. If the equity is preserved, this can turn into a major cash cow after several decades of use. If certain simple rules are met, you can exclude $250,000 ($500,000 if married and filing separately) of any gains you realize.
As you can see, real estate investing, if done properly, can be quite lucrative. But study the subject intensively before committing yourself. The library is full of good books on the subject.
Real Estate – The Boom Is Over
Sales of existing homes fell a bigger-than-expected 2.7 percent in October, a fresh sign that the red-hot housing market is cooling. The decline would have been worse without increased demand from displaced hurricane victims.
Though prices rose at the fastest clip in more than a quarter-century, the number of unsold homes rose to the highest level in 19 years. Analysts forecast that this backlog will dampen future price gains.
The National Association of Realtors reported Monday that sales of existing homes and condominiums fell by 2.7 percent in October, more than double the 1.1 percent decline analysts expected.
Economists said the latest report, which showed sales declines in all regions of the country, appeared to be a signal that the booming housing market was beginning to slow under the impact of steadily rising mortgage rates.
The decline in sales pushed the number of unsold homes to 2.87 million, the highest level in more than 19 years. It would take 4.9 months to deplete that inventory level at the current sales pace.
The median, or midpoint, price of an existing home sold last month rose by 16.6 percent to $218,000, compared with October 2004.
Economists predicted the buildup in unsold homes would help dampen the surge in home prices that saw 69 cities report double-digit gains in prices this summer, compared with the third quarter of 2004.
The sales slowdown was linked to the Federal Reserve's continued campaign to boost interest rates to combat the threat of higher inflation after the recent surge in energy prices.
Most analysts believe housing will cool gradually to more sustainable levels but will escape the adverse consequences that occurred when the Internet stock bubble burst in early 2000, wiping out trillions of dollars in paper wealth and helping to push the economy into a recession. But, many real estate ‘insiders’ see thing quite diferently, and are forecasting a much larger drop in real estate values because of the huge popularity of 100% interest only loans used to both in the purchase and re-finance of homes over the past five years.
The weakness in existing home sales in October followed an earlier report that construction of new homes and apartments fell by 5.6 percent last month, the biggest setback in seven months. Applications for new building permits, a good sign of future activity, fell by 6.7 percent, the biggest decline in six years.
The 2.7 percent drop in sales of existing homes would have been a larger 3.2 percent decline without a boost in activity from people relocating after hurricanes Katrina and Rita devastated the Gulf Coast.
Sales surged by 83 percent in Baton Rouge, La.; 32 percent in Mobile, Ala., and 14 percent in Houston. This more than offset sales declines of 42 percent in New Orleans and 44 percent in Beaumont, Texas.
The 16.6 percent increase in the median sales price was the biggest year-over-year price increase since a 17.2 percent jump in July 1979. The backlog of 2.87 million unsold homes was the highest since April 1986.
By region of the country, October's biggest sales decline occurred in the Northeast, a drop of 7.4 percent. Sales were down 1.9 percent in the Midwest and 1.2 percent in the West. Sales were down 1.8 percent in the South despite the big gains in areas where displaced homeowners relocated
Thursday, October 23, 2008
Real Estate Markets For Price Increases And Decreases
In its 4th quarter report of 2006, the real estate information site estimates the home value trends for the U.S. and 75 metropolitan areas. According to the data from http://Zillow.com, home values are now declining slightly on a year-over-year basis for the first time in a decade after years of appreciation.
Zillow's home value data goes back to 1997 and reveals the depreciation of home value rates at 0.48 % year-over-year at the national level. The depreciation in home value every quarter is at 4.77 %. Zillow's appreciation rate is based on the value of all homes in an area, including those that were sold.
Although there is a fall in the over-all home price growth, areas such as Seattle and Portland are experiencing a surge in home values at good appreciation rates. Besides national home values, the report also presents comprehensive data on local market price growth and decline in 75 metropolitan areas. The Zillow report gives detailed data on home value changes for counties, cities, neighborhoods and ZIP codes in U.S.A.
The top 5 metro areas with the highest price growth, year-over-year, are:
1. Lakeland-Winter Haven, Florida, with an appreciation rate of 25.88 %
2. Yuma, Arizona, with an appreciation rate of 25.66 %
3. Myrtle Beach, South Carolina, with an appreciation rate of 21.24 %
4. Flagstaff, Arizona, with an appreciation rate of 19.02 %
5. Ocala, Florida with an appreciation rate of 17.56 %
The 5 metropolitan areas that have the most declining home values, year-over-year, are:
1. Panama City, Florida, with a depreciation rate of 11.84 %
2. San Luis Obispo-Atascadero-Paso Robles, California, with a depreciation rate of 11.35 %
3. Punta Gorda, Florida, with a depreciation rate of 9.23 %
4. Sarasota-Bradenton, Florida, with a depreciation rate of 8.99 %
5. Greenville-Spartanburg-Anderson, South Carolina, with a depreciation rate of 8.73 %
The Zillow national report also includes the top five most expensive and least expensive metro areas measured by the Zindex home value indicator.
The top 5 metro areas that are most expensive are:
1. San Francisco-Oakland-San Jose, California at $684,459
2. Salinas, California at $654,503
3. Santa Barbara-Santa Maria-Lompoc, California at $627,323
4. Honolulu, Hawaii at $626,452
5. Los Angeles-Riverside-Orange County, California at $545,409
The top 5 metro areas that are the least expensive are:
1. Davenport-Moline-Rock Island, IA-IL at $86,201
2. Peoria-Pekin, Illinois at $91,984
3. Greenville-Spartanburg-Anderson, South Carolina at $96,508
4. Tulsa, Oklahoma at $97,186
5. Dayton-Springfield, Ohio at $103,729
Even within these markets, there are hot and cold housing segments of the community. Be sure to seek out the services of a local real estate agent, who can advise you about local market conditions that impact the price of homes, condos and other types of real estate.
Zillow's home value data goes back to 1997 and reveals the depreciation of home value rates at 0.48 % year-over-year at the national level. The depreciation in home value every quarter is at 4.77 %. Zillow's appreciation rate is based on the value of all homes in an area, including those that were sold.
Although there is a fall in the over-all home price growth, areas such as Seattle and Portland are experiencing a surge in home values at good appreciation rates. Besides national home values, the report also presents comprehensive data on local market price growth and decline in 75 metropolitan areas. The Zillow report gives detailed data on home value changes for counties, cities, neighborhoods and ZIP codes in U.S.A.
The top 5 metro areas with the highest price growth, year-over-year, are:
1. Lakeland-Winter Haven, Florida, with an appreciation rate of 25.88 %
2. Yuma, Arizona, with an appreciation rate of 25.66 %
3. Myrtle Beach, South Carolina, with an appreciation rate of 21.24 %
4. Flagstaff, Arizona, with an appreciation rate of 19.02 %
5. Ocala, Florida with an appreciation rate of 17.56 %
The 5 metropolitan areas that have the most declining home values, year-over-year, are:
1. Panama City, Florida, with a depreciation rate of 11.84 %
2. San Luis Obispo-Atascadero-Paso Robles, California, with a depreciation rate of 11.35 %
3. Punta Gorda, Florida, with a depreciation rate of 9.23 %
4. Sarasota-Bradenton, Florida, with a depreciation rate of 8.99 %
5. Greenville-Spartanburg-Anderson, South Carolina, with a depreciation rate of 8.73 %
The Zillow national report also includes the top five most expensive and least expensive metro areas measured by the Zindex home value indicator.
The top 5 metro areas that are most expensive are:
1. San Francisco-Oakland-San Jose, California at $684,459
2. Salinas, California at $654,503
3. Santa Barbara-Santa Maria-Lompoc, California at $627,323
4. Honolulu, Hawaii at $626,452
5. Los Angeles-Riverside-Orange County, California at $545,409
The top 5 metro areas that are the least expensive are:
1. Davenport-Moline-Rock Island, IA-IL at $86,201
2. Peoria-Pekin, Illinois at $91,984
3. Greenville-Spartanburg-Anderson, South Carolina at $96,508
4. Tulsa, Oklahoma at $97,186
5. Dayton-Springfield, Ohio at $103,729
Even within these markets, there are hot and cold housing segments of the community. Be sure to seek out the services of a local real estate agent, who can advise you about local market conditions that impact the price of homes, condos and other types of real estate.
Monday, October 20, 2008
Deciding Commercial Property Market Value
Even though we are currently in a buyer's market, many land owners are looking to sell it to potential buyers. Before an individual can sell it, they must know how much to value their own property in order to attract potential buyers. Most individuals appraise property before they sell it.
Valuing commercial property is very important for an investor. If an individual values it at a price that is too high, then it can prevent the sale from taking place. If a piece of a property is valued too low then the seller will lose out on a potential profit. The best way to evaluate commercial land is by an appraisal.
There are many ways of appraising and deciding commercial property market value for a piece of property. Many owners will usually pay for one or two appraisers and compare each individual's evaluations. Most professionals appraise a piece of land by developing an opinion of the value of property. An appraisal of a land occurs because no two properties are identical and the value of all of them differs based on location. Because estimating a property's value does not always utilize a market-based pricing mechanism, an expert appraisal of the real estate is needed.
Usually appraisals are performed by a licensed appraiser. Many times the appraiser bases his or her opinion on market assessment and the Highest and Best use of real property. An appraisal is most often reported on a standardized report form. If the appraisal is for a complex piece of property with many unusual characteristics, the appraiser will typically report their findings in a narrative report.
An appraiser will determine a cost approach, a sales comparison or salary-based approach when assessing your property. The cost approach suggests that the value of the property is equal to adding up the value of the land minus any needed improvements. This approach is usually used on newer structures and less on older structures. The sales comparison approach evaluates the price per unit area of land similar to other appraisal amounts of similar properties in the marketplace. This approach is the most objective of the three approaches and allows the appraiser very little wiggle room. The salary-based approach is used to value commercial and investment properties, because it evaluates an income stream.
Since these techniques vary greatly amongst each other, the technique used will depend on what type of asset you have. For example, appraisals of investment property such as skyscrapers may be subject to the income approach, whereas retail or office buildings may be subjected to the sales comparison approach. An apartment building may be more subjected to the sales comparison. Before you sell your property, make sure you appraise it with an expert.
Valuing commercial property is very important for an investor. If an individual values it at a price that is too high, then it can prevent the sale from taking place. If a piece of a property is valued too low then the seller will lose out on a potential profit. The best way to evaluate commercial land is by an appraisal.
There are many ways of appraising and deciding commercial property market value for a piece of property. Many owners will usually pay for one or two appraisers and compare each individual's evaluations. Most professionals appraise a piece of land by developing an opinion of the value of property. An appraisal of a land occurs because no two properties are identical and the value of all of them differs based on location. Because estimating a property's value does not always utilize a market-based pricing mechanism, an expert appraisal of the real estate is needed.
Usually appraisals are performed by a licensed appraiser. Many times the appraiser bases his or her opinion on market assessment and the Highest and Best use of real property. An appraisal is most often reported on a standardized report form. If the appraisal is for a complex piece of property with many unusual characteristics, the appraiser will typically report their findings in a narrative report.
An appraiser will determine a cost approach, a sales comparison or salary-based approach when assessing your property. The cost approach suggests that the value of the property is equal to adding up the value of the land minus any needed improvements. This approach is usually used on newer structures and less on older structures. The sales comparison approach evaluates the price per unit area of land similar to other appraisal amounts of similar properties in the marketplace. This approach is the most objective of the three approaches and allows the appraiser very little wiggle room. The salary-based approach is used to value commercial and investment properties, because it evaluates an income stream.
Since these techniques vary greatly amongst each other, the technique used will depend on what type of asset you have. For example, appraisals of investment property such as skyscrapers may be subject to the income approach, whereas retail or office buildings may be subjected to the sales comparison approach. An apartment building may be more subjected to the sales comparison. Before you sell your property, make sure you appraise it with an expert.
UK Property Market
There have been reports that the property market in the UK is heading for a downturn, with claims that the market will be gaining its healthy shape in a couple or so years. Jones LaSalle, a property expert, states that the decline of residential and commercial prices over the past nine months has created a "yield gap between prime and secondary assets back into the market." The guru claims that this situation poses an advantage for cash-rich investors. While the unrelenting tight supply of credit is deemed to have an absolute impact on the property market in the UK as a whole, the firm insists that there is still a demand for quality assets.
This recent report comes amid the general consensus that the housing explosion is over. Recently, the media has reported that most areas in England have listed price declines, with homes located in Greater London taking the sharpest decline of all. These reports may be causing some people in the UK to question if it is still indeed a good time to invest in property.
Stories of a property crash in the UK have been consistently in the news for quite some time now. But many experts are of the belief that the property market will remain solid. The reason is that the supply of property is insufficient to meet demands not to mention the fact the property is still affordable.
When the prices soften or when there is a decrease in asking price, there is always a group of ready-buyers that are willing to pick up bargains. These include would-be first time buyers, family movers, or property investors looking for deals. The reason why there is a ready supply of buyers is because there is a fundamental undersupply of property, as the current number of completed establishments is running below demand.
The increasing demand for a diminishing supply of property will cause prices to remain firm. Even though unsold properties have been reported to increase, the unsold stock levels are expected to stay below the long-term trend. One of the reasons is the growth in population. Inward migration has risen significantly due to the attraction of the UK as an excellent place to work and live in.
In addition to this, there are also two worthy circles that make the decision to invest in property a sound one. Seemingly, no matter which way the UK economy turns, property is still expected to stand out, most especially over the long term. First, when the economies of the world enter another recession or depreciation, then interest rates could come down, further decreasing property investors' expenses, while retaining the rental revenue. Second, if the capital values of property take a fall, then people will cease buying properties, and rent instead. The increase in rental demand will then spur a rise in property income.
All these point to the fact that property remains one of the best long term investments you can make. The only thing that investors need to seriously take into consideration is the location and choosing the right property at the right time. After they get that down pat, they can expect to take part in the substantial growth of the property investment market that has been consistently performing well over the last decade.
This recent report comes amid the general consensus that the housing explosion is over. Recently, the media has reported that most areas in England have listed price declines, with homes located in Greater London taking the sharpest decline of all. These reports may be causing some people in the UK to question if it is still indeed a good time to invest in property.
Stories of a property crash in the UK have been consistently in the news for quite some time now. But many experts are of the belief that the property market will remain solid. The reason is that the supply of property is insufficient to meet demands not to mention the fact the property is still affordable.
When the prices soften or when there is a decrease in asking price, there is always a group of ready-buyers that are willing to pick up bargains. These include would-be first time buyers, family movers, or property investors looking for deals. The reason why there is a ready supply of buyers is because there is a fundamental undersupply of property, as the current number of completed establishments is running below demand.
The increasing demand for a diminishing supply of property will cause prices to remain firm. Even though unsold properties have been reported to increase, the unsold stock levels are expected to stay below the long-term trend. One of the reasons is the growth in population. Inward migration has risen significantly due to the attraction of the UK as an excellent place to work and live in.
In addition to this, there are also two worthy circles that make the decision to invest in property a sound one. Seemingly, no matter which way the UK economy turns, property is still expected to stand out, most especially over the long term. First, when the economies of the world enter another recession or depreciation, then interest rates could come down, further decreasing property investors' expenses, while retaining the rental revenue. Second, if the capital values of property take a fall, then people will cease buying properties, and rent instead. The increase in rental demand will then spur a rise in property income.
All these point to the fact that property remains one of the best long term investments you can make. The only thing that investors need to seriously take into consideration is the location and choosing the right property at the right time. After they get that down pat, they can expect to take part in the substantial growth of the property investment market that has been consistently performing well over the last decade.
Thursday, October 16, 2008
Dubai Real Estate
Dubai Largest property selection , a portal with no compare with others around the world. A webase solution with all necessary tools and data to make decision of real estate acquisition in the Unites Arabs emirates.
At Alineah, our mission is to help you find your perfect Dubai property. Browse Alineah the Dubai buy rent sell platform for Dubai properties. Search our listings for Dubai villas, Dubai apartments and also Dubai offices which are currently for sale or rent in Dubai.
We constantly update our site adding new Dubai properties; if you don’t find your perfect Dubai property on your first visit to our site, please register for alerts so we can let you know the minute your desired Dubai property gets uploaded.
Find the right Dubai real estate Agent here. Alineah is committed to providing comprehensive information and putting you in touch with the right real estate agent to meet your needs.
Dubai buy rent sell. Property owners and real estate agents list your Dubai Properties on Alineah and see your phone ring. All properties will be listed with your own logo and contact number. Your properties will be reachable by other clients on all our affiliates’ websites. Don’t miss to register now.
Book your Dubai Holiday with Alineah. Our team is dedicated to provide you with the best possible vacation while staying in Dubai. Contact us to find you a convenient short time rental property for your Dubai Holiday. We offer fully furnished apartments and Villas in Dubai.
Keep up to date with Alineahs Dubai real estate info. The last 3 years have reported that Dubai investment can be a very lucrative decision, besides the booming Dubai real estate development with unique concepts such as The World and Dubai palm island and the growing economy with rising immigrants from all over the world, another reason why an increasing number of international investors are attracted to Dubai is undoubtedly the favorably tax system, where no personal income or capital gains taxes exist. Which means a Dubai investment can give you a higher return. Learn the about the Dubai Property market, visit our Dubai real estate analysis links with valuable information for any Dubai investment question.
Find your dream Home in Dubai- Search for freehold and leasehold Villas in Dubai. Your Dubai Villa in Emirates Hills, The Springs, Jumeirah Island, Meadows, Dubai palm Island, Dubai Land and more.
Search for freehold and leasehold Dubai Apartments - Your apartment in Dubai in Jumeirah Lake towers, Dubai Marina, The Greens, Dubai palm Island, Oldtown, Burj Dubai, Sports city, Discovery Gardens, Dubai Lagoons and more.
Search for Freehold or Leasehold Offices in Dubai-Your Dubai Office in Jumeirah lake towers, Business bay, Sheikh Zayed Road, Bur Dubai, Deira, Dubai palm Island
The unprecedent success of the webportal of www.alineah.com had take attention of the major web property market in the asian continent, www.alineah.com had turn dound offer for the purchase of the property portal in the Emirtates. Big payer , see the biger picture and know that the web property marketing is doing excellent performance over the net.
At Alineah, our mission is to help you find your perfect Dubai property. Browse Alineah the Dubai buy rent sell platform for Dubai properties. Search our listings for Dubai villas, Dubai apartments and also Dubai offices which are currently for sale or rent in Dubai.
We constantly update our site adding new Dubai properties; if you don’t find your perfect Dubai property on your first visit to our site, please register for alerts so we can let you know the minute your desired Dubai property gets uploaded.
Find the right Dubai real estate Agent here. Alineah is committed to providing comprehensive information and putting you in touch with the right real estate agent to meet your needs.
Dubai buy rent sell. Property owners and real estate agents list your Dubai Properties on Alineah and see your phone ring. All properties will be listed with your own logo and contact number. Your properties will be reachable by other clients on all our affiliates’ websites. Don’t miss to register now.
Book your Dubai Holiday with Alineah. Our team is dedicated to provide you with the best possible vacation while staying in Dubai. Contact us to find you a convenient short time rental property for your Dubai Holiday. We offer fully furnished apartments and Villas in Dubai.
Keep up to date with Alineahs Dubai real estate info. The last 3 years have reported that Dubai investment can be a very lucrative decision, besides the booming Dubai real estate development with unique concepts such as The World and Dubai palm island and the growing economy with rising immigrants from all over the world, another reason why an increasing number of international investors are attracted to Dubai is undoubtedly the favorably tax system, where no personal income or capital gains taxes exist. Which means a Dubai investment can give you a higher return. Learn the about the Dubai Property market, visit our Dubai real estate analysis links with valuable information for any Dubai investment question.
Find your dream Home in Dubai- Search for freehold and leasehold Villas in Dubai. Your Dubai Villa in Emirates Hills, The Springs, Jumeirah Island, Meadows, Dubai palm Island, Dubai Land and more.
Search for freehold and leasehold Dubai Apartments - Your apartment in Dubai in Jumeirah Lake towers, Dubai Marina, The Greens, Dubai palm Island, Oldtown, Burj Dubai, Sports city, Discovery Gardens, Dubai Lagoons and more.
Search for Freehold or Leasehold Offices in Dubai-Your Dubai Office in Jumeirah lake towers, Business bay, Sheikh Zayed Road, Bur Dubai, Deira, Dubai palm Island
The unprecedent success of the webportal of www.alineah.com had take attention of the major web property market in the asian continent, www.alineah.com had turn dound offer for the purchase of the property portal in the Emirtates. Big payer , see the biger picture and know that the web property marketing is doing excellent performance over the net.
Real Estate Info for Successful Deals
There is very wide variety of options when it comes to investments in real estate, and having all the required real estate information is vital to improve your business and to, ultimately, be successful in it. Investments within this area are quite numerous, from buying a property in which to spend your vacations, to a small place in which to live once you retire, every single piece of real estate information you gather may allow you to encounter the perfect client and the proper means to satisfy his or her needs.
First of all it is very important that you get acquainted with the current status of the marketplace. If you do so, you will be capable of providing your clients with not only great prices, but also you will be providing them with something every single client is looking for in a real estate agent, expertise and professionalism. Try telling your clients about different statistics of the market, be honest with them and observe their positive reactions.
Another very important piece of real estate info is to be aware of what surrounds the property you are trying to sell, most time people are more interested in the places they can find around the property than on the property itself. Places such as schools, restaurants, hotels, and social gathering places, are often key elements for closing a successful deal. So remember to keep your clients updated on the different places available for them around their new potential property.
But there is also an important part about real estate info that you should know about, always keep your clients happy. Now, I know it sounds obvious, but you would be amazed to know how many real estate agents do not follow this easy procedure, and it basically happens because some real estate agents try very hard to make a great first impression when they should actually be focusing on creating an everlasting impression. How to do it? Well, always remember that your clients do not want to feel as yet another client, they want to feel as if your life is only about them, so try to personalize every presentation you give, try to keep close contact with your clients, make them believe that they are the only thing in your life. Elements such as photos of their potential property included in the presentation along with their name in the title really helps them to visualize themselves living in the property and it also helps the agent to establish a closer relationship with every client.
Now, probably the most effective real estate info is to remember to be always, ALWAYS available. Many real estate deals are closed when the client is overexcited about the property, but if he can't find you it may be the factor that triggers a "cool-off", so try to be mobile all the time and keep contact with every single client. A great way to do this is to provide your clients with your mobile number and to acquire a device that allows you to connect to Internet and check your emails constantly, such as a Blackberry. With this real estate info I can guarantee you will see an improvement in your real state deals very soon.
First of all it is very important that you get acquainted with the current status of the marketplace. If you do so, you will be capable of providing your clients with not only great prices, but also you will be providing them with something every single client is looking for in a real estate agent, expertise and professionalism. Try telling your clients about different statistics of the market, be honest with them and observe their positive reactions.
Another very important piece of real estate info is to be aware of what surrounds the property you are trying to sell, most time people are more interested in the places they can find around the property than on the property itself. Places such as schools, restaurants, hotels, and social gathering places, are often key elements for closing a successful deal. So remember to keep your clients updated on the different places available for them around their new potential property.
But there is also an important part about real estate info that you should know about, always keep your clients happy. Now, I know it sounds obvious, but you would be amazed to know how many real estate agents do not follow this easy procedure, and it basically happens because some real estate agents try very hard to make a great first impression when they should actually be focusing on creating an everlasting impression. How to do it? Well, always remember that your clients do not want to feel as yet another client, they want to feel as if your life is only about them, so try to personalize every presentation you give, try to keep close contact with your clients, make them believe that they are the only thing in your life. Elements such as photos of their potential property included in the presentation along with their name in the title really helps them to visualize themselves living in the property and it also helps the agent to establish a closer relationship with every client.
Now, probably the most effective real estate info is to remember to be always, ALWAYS available. Many real estate deals are closed when the client is overexcited about the property, but if he can't find you it may be the factor that triggers a "cool-off", so try to be mobile all the time and keep contact with every single client. A great way to do this is to provide your clients with your mobile number and to acquire a device that allows you to connect to Internet and check your emails constantly, such as a Blackberry. With this real estate info I can guarantee you will see an improvement in your real state deals very soon.
Monday, October 13, 2008
Promotional Real Estate Postcards
Why Promotional Real Estate Postcards Are Beneficial
Promotional real estate postcards are beneficial on a variety of levels. They make a perfect first impression and are cost effective. Promotional postcards will receive a higher return rate, since they create a reply from promising clients and existing clients alike. They spread your name recognition and make you the initial individual they think of when real estate help is necessary. Real Estate Postcards are not new and they are not going anyplace for a reason.
Name Recognition
The more frequently your prospective clients and customers see your name and get your promotional postcards, the more known you'll be. When individuals in the neighborhoods you target consider selling or purchasing real estate, they will think about you before anybody else.
First Impressions
These postcards do not require an envelope to mail, meaning that, over other various mailed ads, you'll have the advantage that your house photos and heading will reach the eyes of potential customers practically in spite of themselves. Postcards require no maintenance in this world of an excess of spam mail, cell phones, and junk mail
High Rate of Return
When was the last time you got a postcard in the mail and you did not check out the front, flip it over and, at least, browse what it says? How about e-mail? Just how many emails have you deleted without opening, or junk mail letters or fliers that have ended up in the trash without another thought?
As a real estate agent, marketing with post cards is one of the most ideal choices you can make for increased name recognition and great visibility. And the best part? You can be as inventive with your postcards as you want to be. In fact, the more creative you can be, the better it is. Undoubtedly, you're not the sole realtor in the area. But with a unique just sold postcard, you should be the most well known realtor in the area.
Are you an especially good baker or cook? Perhaps special recipes on the front of your just listed postcard is a good trademark for you. Do you love classic cars? Maybe a profile of a different one on every card can set you apart. Major fan of botany, history, or the local hockey team? Captivate while you establish your hallmark and potential customers will actually enjoy receiving your real estate postcards.
Of course, the back of your real estate marketing postcard is going to have your contact information, possibly a future open house or a few examples of listings that are on the market. The most imperative part is that you generate a brand and implement it on every card.
The marketing term for introducing and then reacquainting potential clients and customers to your unique advertising and marketing style is referred to as branding', 'brand name recognition', or 'identity branding'. You achieve this with repetitive contact. Arrange a pattern of sending out your specialized brand of real estate farming postcards regularly and you will make your mark.
Promotional real estate postcards are beneficial on a variety of levels. They make a perfect first impression and are cost effective. Promotional postcards will receive a higher return rate, since they create a reply from promising clients and existing clients alike. They spread your name recognition and make you the initial individual they think of when real estate help is necessary. Real Estate Postcards are not new and they are not going anyplace for a reason.
Name Recognition
The more frequently your prospective clients and customers see your name and get your promotional postcards, the more known you'll be. When individuals in the neighborhoods you target consider selling or purchasing real estate, they will think about you before anybody else.
First Impressions
These postcards do not require an envelope to mail, meaning that, over other various mailed ads, you'll have the advantage that your house photos and heading will reach the eyes of potential customers practically in spite of themselves. Postcards require no maintenance in this world of an excess of spam mail, cell phones, and junk mail
High Rate of Return
When was the last time you got a postcard in the mail and you did not check out the front, flip it over and, at least, browse what it says? How about e-mail? Just how many emails have you deleted without opening, or junk mail letters or fliers that have ended up in the trash without another thought?
As a real estate agent, marketing with post cards is one of the most ideal choices you can make for increased name recognition and great visibility. And the best part? You can be as inventive with your postcards as you want to be. In fact, the more creative you can be, the better it is. Undoubtedly, you're not the sole realtor in the area. But with a unique just sold postcard, you should be the most well known realtor in the area.
Are you an especially good baker or cook? Perhaps special recipes on the front of your just listed postcard is a good trademark for you. Do you love classic cars? Maybe a profile of a different one on every card can set you apart. Major fan of botany, history, or the local hockey team? Captivate while you establish your hallmark and potential customers will actually enjoy receiving your real estate postcards.
Of course, the back of your real estate marketing postcard is going to have your contact information, possibly a future open house or a few examples of listings that are on the market. The most imperative part is that you generate a brand and implement it on every card.
The marketing term for introducing and then reacquainting potential clients and customers to your unique advertising and marketing style is referred to as branding', 'brand name recognition', or 'identity branding'. You achieve this with repetitive contact. Arrange a pattern of sending out your specialized brand of real estate farming postcards regularly and you will make your mark.
Thursday, October 9, 2008
Make The Most Out Of Your Catalog Real Estate With These Tips
More than your pictures and illustrations in your catalog, your catalog copy is one of the most significant elements in your marketing collateral.
Copywriting is basically an art form that lets you communicate your message to convince your target readers to do your bidding. And this is not an easy task. Mastering the art of persuasion involves creating descriptive copy that allows your audience to see, feel, taste, hear, and smell your products through your words.
As your target readers don’t experience all these activities in your catalog in reality, you need to provide the sensory experience through your text. Your words should be able to fill that gap between your prospective clients and your product.
It’s not a new concept actually – copywriting as a sensory activity. If you think about it, it’s always part of having to convince your target readers to see your products the way you see them.
And mere words just don’t work. You need effective descriptions to make your audience really understand your product. Effective descriptions are what draw your clients to the situation even if they are not there.
For your real estate catalogs, you don’t just write how many units you have in your condominium, or how many rooms and bathrooms each unit has. Your descriptive copy should be able to use words that actually transport your client from his dreary place to a place where the breeze is blowing in his cheeks and the warm sun waking him up in the morning.
Can you feel the cool breeze kissing your cheeks? Can you smell the newly cut grass from your lawn? Does it paint a pretty picture for you?
How about “sun-dappled terraces”, “authentic hand woven hammock that cradles you while you sleep”, “sunning in your tree-shaded veranda”…these are examples of how you can infuse your catalogs with effective descriptions to make your real estate business more appealing.
I can’t say it enough. Writing descriptive words that appeal to the senses is essential to having an effective custom catalog for your business.
Your clients can’t see, feel, hear, smell or even taste what you have. The next best thing is to provide them a clear illustration that will attract their senses so that they’ll want to purchase from you.
When you write your custom catalog copy, choose the most suitable feeling and focus on those senses. If you’re into real estate then obviously you need to target on the sights and feelings.
The main thing here is to help your readers see, feel, hear, smell, and taste your product that is not there in front of them. Let them experience what you yourself have experienced with your product. When you have great copywriting for your catalogs, then that’s the time that you will truly get the most out of your real estate catalogs.
Copywriting is basically an art form that lets you communicate your message to convince your target readers to do your bidding. And this is not an easy task. Mastering the art of persuasion involves creating descriptive copy that allows your audience to see, feel, taste, hear, and smell your products through your words.
As your target readers don’t experience all these activities in your catalog in reality, you need to provide the sensory experience through your text. Your words should be able to fill that gap between your prospective clients and your product.
It’s not a new concept actually – copywriting as a sensory activity. If you think about it, it’s always part of having to convince your target readers to see your products the way you see them.
And mere words just don’t work. You need effective descriptions to make your audience really understand your product. Effective descriptions are what draw your clients to the situation even if they are not there.
For your real estate catalogs, you don’t just write how many units you have in your condominium, or how many rooms and bathrooms each unit has. Your descriptive copy should be able to use words that actually transport your client from his dreary place to a place where the breeze is blowing in his cheeks and the warm sun waking him up in the morning.
Can you feel the cool breeze kissing your cheeks? Can you smell the newly cut grass from your lawn? Does it paint a pretty picture for you?
How about “sun-dappled terraces”, “authentic hand woven hammock that cradles you while you sleep”, “sunning in your tree-shaded veranda”…these are examples of how you can infuse your catalogs with effective descriptions to make your real estate business more appealing.
I can’t say it enough. Writing descriptive words that appeal to the senses is essential to having an effective custom catalog for your business.
Your clients can’t see, feel, hear, smell or even taste what you have. The next best thing is to provide them a clear illustration that will attract their senses so that they’ll want to purchase from you.
When you write your custom catalog copy, choose the most suitable feeling and focus on those senses. If you’re into real estate then obviously you need to target on the sights and feelings.
The main thing here is to help your readers see, feel, hear, smell, and taste your product that is not there in front of them. Let them experience what you yourself have experienced with your product. When you have great copywriting for your catalogs, then that’s the time that you will truly get the most out of your real estate catalogs.
Real Estate Email Marketing Maximizes Your Exposur
There's little doubt that the U.S. real estate market is undergoing a profound transformation. After several years of freewheeling lending practices and unsurpassed increases in home valuations, the real estate market is undergoing a major correction. Home values are dropping in many areas around the country, and some homeowners are facing an impending uptick in their adjustable rate mortgage payments, placing them in an untenable position.
In short, it's a volatile market. Lenders are tightening the criteria for mortgages, and the window for subprime lending is closing. Some homeowners who are holding subprime mortgages are facing foreclosures, while others are trying to sell their homes before they find themselves in a negative equity situation. As a result, real estate professionals, investors, and home sellers are scrambling to gain an edge in a competitive marketplace.
Real Estate Marketing
Long gone are the days when traditional methods of real estate marketing are sufficient to move properties. A sign on the lawn, a Multiple Listing Service listing, and an open house still have their place, but they comprise only one facet of an effective real estate marketing campaign.
Just as in most other areas of business, the Internet is playing a crucial role in real estate. Online listings of homes for rent, homes for sale, and foreclosures draw an increasing number of buyers and investors. Photographs and video are increasingly being used to whet the appetites of potential buyers. Still, online listings and multimedia presentations are relatively passive forms of marketing in this competitive era. Those who are on the cutting edge are utilizing the Internet to their best advantage, and taking strategies from the playbooks of those in other fields.
Email Marketing as a "Push" Strategy
If drawing potential real estate buyers to an online listing is a "pull" strategy, then real estate email marketing is a "push" strategy - one that makes sense in today's marketplace. After all, retailers and e-tailers use email marketing to their best advantage. Email inboxes are stuffed with large and small business emails alike. It makes sense that real estate email marketing can also be effective, in that it delivers information about agents, developers, sellers, and their respective properties directly into the hands of interested potential buyers.
Email Marketing is Easier than it Seems
At first blush, real estate email marketing may seem out of reach for many people. After all, their expertise is in real estate and they may not be very tech savvy. On the contrary, there are online real estate services that make email marketing a cakewalk for virtually anyone.
When looking for an online email marketing service, choose one that can help you create emails, manage your contact lists, and obtain tracking reports. Essentially, you should be able to send your first email marketing piece in less than an hour. The best services have "wizards" that allow you to, for example, put together email newsletters using a Web interface and on a single screen. Templates and click-and-drag functionality allow you to easily arrange text, upload photos, and instantly see what your recipients will see when they receive your email.
Once you've sent your emails or newsletters, the service should enable you to track the results, telling you how many emails you sent, how many bounced back, how many people opened the email, how many clicked on the links, and how many forwarded it on to others.
There's little doubt that real estate email marketing is a cutting edge tool that helps push your message into the inboxes of potential buyers. And in today's competitive environment, it's an advantage you can't afford to be without.
In short, it's a volatile market. Lenders are tightening the criteria for mortgages, and the window for subprime lending is closing. Some homeowners who are holding subprime mortgages are facing foreclosures, while others are trying to sell their homes before they find themselves in a negative equity situation. As a result, real estate professionals, investors, and home sellers are scrambling to gain an edge in a competitive marketplace.
Real Estate Marketing
Long gone are the days when traditional methods of real estate marketing are sufficient to move properties. A sign on the lawn, a Multiple Listing Service listing, and an open house still have their place, but they comprise only one facet of an effective real estate marketing campaign.
Just as in most other areas of business, the Internet is playing a crucial role in real estate. Online listings of homes for rent, homes for sale, and foreclosures draw an increasing number of buyers and investors. Photographs and video are increasingly being used to whet the appetites of potential buyers. Still, online listings and multimedia presentations are relatively passive forms of marketing in this competitive era. Those who are on the cutting edge are utilizing the Internet to their best advantage, and taking strategies from the playbooks of those in other fields.
Email Marketing as a "Push" Strategy
If drawing potential real estate buyers to an online listing is a "pull" strategy, then real estate email marketing is a "push" strategy - one that makes sense in today's marketplace. After all, retailers and e-tailers use email marketing to their best advantage. Email inboxes are stuffed with large and small business emails alike. It makes sense that real estate email marketing can also be effective, in that it delivers information about agents, developers, sellers, and their respective properties directly into the hands of interested potential buyers.
Email Marketing is Easier than it Seems
At first blush, real estate email marketing may seem out of reach for many people. After all, their expertise is in real estate and they may not be very tech savvy. On the contrary, there are online real estate services that make email marketing a cakewalk for virtually anyone.
When looking for an online email marketing service, choose one that can help you create emails, manage your contact lists, and obtain tracking reports. Essentially, you should be able to send your first email marketing piece in less than an hour. The best services have "wizards" that allow you to, for example, put together email newsletters using a Web interface and on a single screen. Templates and click-and-drag functionality allow you to easily arrange text, upload photos, and instantly see what your recipients will see when they receive your email.
Once you've sent your emails or newsletters, the service should enable you to track the results, telling you how many emails you sent, how many bounced back, how many people opened the email, how many clicked on the links, and how many forwarded it on to others.
There's little doubt that real estate email marketing is a cutting edge tool that helps push your message into the inboxes of potential buyers. And in today's competitive environment, it's an advantage you can't afford to be without.
Sunday, October 5, 2008
Gain Financial Security By Learning Real Estate Investing
Anyone who knows anything about Real Estate Investing knows that the most secure path to creating wealth is by investing in real estate; however, before you jump in head first...you must have a financial plan.
Most people don't see the correlation between the two. There are so many methods of investing. You must first decide on what your ending financial goal is in order to figure out which real estate investing path you need to take. Secondly, you must sit down and figure out how much money you have to invest in real estate while maintaining your daily living.
The final and most important concept that we must understand is that a salary and a 401K will never create the wealth that most of us are aiming for in our future. If this was enough, we would not have so many grandmothers and grandfathers handing out smiley face stickers at Walmart. No one PLANS to to be a professional elderly sticker passer outer. On the other hand, no one becomes rich who doesn't make a financial plan unless they are born with that shiny silver spoon.
We all know that there are certain things in life that you just don't want to do...balancing your checkbook and financial planning are right up there with going to the dentist. But the end results of neglecting any of these, is not very favorable. So suck it up and dig in.
The retirement plan of the past:
Work at one job for thirty years, work your way up the corporate ladder, get the gold watch, live off of your pension plan and social security. Pretty straight forward and simple. This retirement plan presents quite a few problems for the present and future retiree.
Problems with the retirement plan of the past:
1. You can no longer depend on your employer to provide for you after you stop working.
First of all...most of us never stay at a job long enough anymore to build up a decent pension. So if we are lucky, we depend on the faithful 401K. The problem with this is that you have to make half of the contributions yourself and if you are a contractor or an entrepreneur you don't even have this luxury! Even if you were responsible enough to start your 401K in your twenties, (which most did not) the rate of inflation will eat away at your saving like rabid dog.
2. You can no longer depend on the government to provide for you after you stop working.
How wonderful are your golden years going to be with $14,000 a year from social security? (Oh, that's only if you contributed the maximum over your life time). Well, I won't speak for everyone but I don't want my big bingo day to be interrupted with clipping coupons and buying groceries with food stamps; however, this is what you have to look forward to if you depend on the government.
Not to mention...when the government set up social security, they only thought that we would live to be 60 to 65 years old. So there may not even be any money left when you need it.
So what do you do?
The present and future retirement plan:
You have to invest your money in an inflation proof entity that will provide for you despite your age. Real Estate is the only investment that is not negatively effected by inflation. It will also continue to grow for you no matter what your age. I attended my best friend's grandmother's funeral today. She lived to be 104 years old. She had the foresight eighty years ago to invest in real estate. She owned several properties in Washington DC. The investments provided for her for her entire life including her elderly care. These investments continue to provide for her children, grandchildren and great grandchildren even after her death. This is the definition of creating true wealth and securing your financial future.
For Sale by Owner For Financial Gain
If you are the owner of the house and want to sell it, direct "for sale by owner" or FSBO technique is a better option for you to get financial gain from it. Property market, although vibrant, you need to have some skills to sell your property in this market so that you can gain financially.
FSBO or for sale by owner method is continuously gaining importance, as here you the seller and the buyer gains a huge 3 to 6 percent of the sales value and if the cost of your forsalebyowner property is $200,000, your financial gain is in the range of $6000 to $12000, which is a huge amount.
Actually a real estate agent earns huge profit for his excellent marketing skills and if you can develop these marketing skills, you are definitely going to have the outcome of your forsalebyowner property in your favor. Property market is very vast and with the invention of Internet, this market is global now and therefore if you are able to send your FSBO ad across the globe, you will definitely do well in rest of the sale process.
The advertising of "for sale by owner" property plays a key role for a favorable transaction and in addition to the conventional for sale board much more needed for getting financial gain from your FSBO property. You should use all latest and modern tools of communication and advertising forsalebyowner property so that a large number of audiences see your ads.
In addition to the advertising, you need to sharpen your negotiation skill so that you get financial gain from your for sale by owner house. You should negotiate the price in such a way so that the buyer feels, he or she are also getting largest benefit from your FSBO house or property. You should keep the initial price a little high so that you are comfortable in reducing the price of forsalebyowner house at negotiating table.
So, latest means of communication along with the modern advertising tools are sufficient enough to bring large number of people to you. You must have some excellent negotiation and marketing skill so that you struck a deal and gain financially from your "for sale by owner" or FSBO property.
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