HGTV’s real estate site Front Door says the weeks between now and the end-of-the year holidays are the best ones to find a bargain. Here are some of their tips for fall buyers and sellers:

Fall Sellers:

• Replace faded summer plants with fall-blooming flowers and add autumn decorations to the home.
• Expect low-ball offers and be prepared with higher counter offers.
• Freshen up listing photos by shooting pictures that make it less obvious that the seasons have changed.
• Price the home to sell. A price that is a little lower than the competition may be a winning move.
• Be willing to show the property and hold open houses whenever potential buyers are ready.

Fall Buyers:

• Look for motivated sellers who have a reason to move on by the end of the year.
• Explore new constructions. Builders are often particularly interested in selling before the new tax year.
• Beware of fall maintenance issues. Consider overflowing gutters and leaf-covered lawns warning signs.
• Shape offers carefully. Even in this market it is possible to turn sellers off with a too-low bid.

Source: FrontDoor.com (09/16/2010)

For the last year, the real estate industry has been talking about shadow inventory and the coming flood of distressed properties. Where are they? Here’s what’s happening, according to a recent paper by Alan Mallach, a senior fellow the Brookings Institution:

• Some delinquencies have been resolved through loan modifications or people working out the problems on their own.

• Banks are getting better at managing short sales.

• Investors are aggressively buying up properties, sometimes in bulk, directly from the banks or at courthouse auctions so they don’t hit the market.

The likeliest outcome, Mallach predicts, is a steady flow of foreclosures over a long timeframe that will prevent another crash in home prices, but will probably lead to low or no appreciation in home prices.

Source: The Wall Street Journal, Nick Timiaros (09/16/2010)

Miscellaneous Services

Advertising & Classifieds, Appliances (used & repairs), Blinds & Shutters, Interior Design/Staging, Cleaners (house, window & carpet), Locksmith, Pest Control, Termite Service, Courier Service, Credit/background checks, 1031 Exchanges Facilitators, Process Servers, Tree Service and Property Management.

Conclusion

There you have it folks. Depending on what area of real estate you focus on there will be some on this list you will never use and others that I have missed. One piece of advice I want to give you is this; Make sure you put your team together AHEAD of time, that way you will avoid unnecessary stress and will not have to settle for the first guy that shows up.

To read whole article click here

Time magazine is being overly pessimistic in its recent cover piece that called into question the benefits of homeownership. In fact, now is a great time to buy. And, what’s more, tomorrow will be a great time to own, because the fundamental strength of homeownership hasn’t changed.

Why is now a great time to buy? Here are 10 reasons:

1. You can get a good deal. Prices are down 30 percent on average. They’re at a level that makes sense for people’s income.

2. Mortgages are cheap. At 4.3 percent on average for a 30-year fixed-rate mortgage, your costs to own are down by a fifth from two years ago.

3. You can save on taxes. When you add up the deductions for mortgage interest and others, the cost of owning can drop below renting for a comparable place.

4. It’ll be yours. The one benefit to owning that never changes is that you can paint your walls orange if you want (generally speaking; there might be some community restrictions). How many landlords will let you do that?

5. You can get a better home. In some markets, it’s simply the case that the nicest places are for-sale homes and condos.

6. It offers some inflation protection. Historically, appreciation over time outpaces inflation.

7. It’s risk capital. If the economy picks up, you stand to benefit from that, even if you’re goal is just to have a nice place to live.

8. It’s forced savings. A part of your payment each month goes to equity.

9. There is a lot to choose from. There are some 4 million homes available today, about a year’s supply. Now’s the time to find something you like and get it.

10. Sooner or later the market will clear. The U.S. is expected to grow by another 100 million people in 40 years. They have to live somewhere. Demand will eventually outpace supply.

Source: Wall Street Journal, Brett Arends (9/16/10)

Legal

Real Estate Attorney, Commercial Real Estate Attorney, Eviction Attorney, Estate & Business Planning, Document Preparation. Consider using a paralegal where possible, a good paralegal can do much of what attorneys do at a fraction of the price, i.e. help you set up LLC’s.

Insurance

Most likely you will not be able to get all the different products you need from one insurance agent or company. At one point or another you might need; hazard insurance, homeowners insurance, home warranties, high risk property insurance, some type of liability insurance etc…

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General Contractor

A skilled, trustworthy GC is a key player on your team. The GC will advise you on needed/wanted repairs and coordinate the subcontractors/labor to get the job done.

Subcontractors

The most important subcontractors in my opinion are; The Electrician, HVAC Contractor, Plumber, and Roofer. Make sure these guys are licensed (make sure your GC is licensed also).

All Other Subcontractors

Paint & Painters, Pool Service & Repair, Landscaper Design & Maintenance, Cabinets & Countertops, Carpet, Tile Installation & Repair, Masonry, Drywall, Fences & Gates, Foundation Repair, Garage Doors, Grills & Barbeques, Lighting, Sprinkler Works, Stucco & Stucco Repair, Bathtubs & Countertops Re-surface, Asphalt, Cheap Labor (your kids could do… they’ll love you for it and Handyman (a good handyman will be able to do many of these jobs).

Subcontractors are for the most part supplied by your general contractor but you need to have your own list – for a couple of reasons; 1) Your guys might be better and more affordable, 2) Your GC might have a fall out with one of his, 3) You are not going to hire a general contractor for everything.

You should have at least one or two back-ups for every skill-set you use frequently! To read whole article click here

I joke with my inspector that he is the most anal-retentive individual I have ever met (I mean it as a compliment).  When you read his report you feel like the house is going to fall apart any minute. When buying, I use inspection reports to get back to the negotiating table.

I have literally saved thousands of dollars in lowered purchase prices using a detailed inspection report. Oh, and then there is the added benefit of knowing what is going on with the house!

To read whole article click here

Mortgage Lender

The type of financing you are able to get can make or break a deal. Having a mortgage expert who knows your personal situation and who keeps on top of all the changes in the credit industry is invaluable!

Appraiser

We will always have a love/hate relationship with these guys. Whether you like it or not they are always going to be involved in some fashion. Having a good appraiser on your team to consult with comes in handy more often than not.

To read whole article click here

The one that is near and dear to my heart is the real estate agent Do you need one? I wrote a separate article on this topic called “Investors, Should you Hire a Real Estate Agent or Not” I suggest you read it.

But let me put it in a nutshell; an investor without an agent is like a drummer with one arm… it can be done, and done really well (Def Leppard), but you would be much better off with both arms.

To read whole article click here

The American Association of Private Lenders (AAPL) has established the first code of ethics for private hard moneylenders in the United States.

Borrowing from a hard moneylender is becoming increasingly common as it grows more difficult to get mortgage and small-business loans.

Key sections in this code of ethics include stipulations about strictly adhering to all related real estate lending laws, nondiscrimination in lending, and honesty in all dealings. A copy of the full code can be seen here.

Hard money lenders provide short-term, real estate-backed loans that provide funding based on the value of the underlying real estate. Interest rates are typically higher than banks because they fund deals that don’t conform to bank standards.

Source: American Association of Private Lenders (09/08/2010)