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Monday, June 25, 2012

Four Factors That Affect Your Offer Price

When you’ve found a home you like, one you could see yourself living in for the foreseeable future, the next step is to make an offer on the home.  You might be tempted to offer a price lower than the seller’s asking price, simply because you’ve heard that you’re supposed to negotiate the price.  However, there’s more to an offer price than lowballing the asking price.  The price that you offer on the home will be influenced by several factors.
Property Condition
After viewing the home, you should have an idea of how it compares to other homes in the neighborhood.  You don’t have to do much analysis, just determine if it’s above, average, or below the other homes in the market.  Find out the recent selling price of homes in the neighborhood.  If you rated the property you are considering as average, your offer price should be along the same lines as those that have already been sold.  As you consider the condition of the home, look at things like bedroom doors and door knobs, fixtures, light switches, and cabinets.  These will give a good indication as to the condition of the home and the offer price.
Market Conditions
In a seller’s market, there are often multiple offers on a property, many of which will be above the asking price.  In a buyer’s market, homes remain on the market for a longer period of time.  You have more flexibility to negotiate in a buyer’s market.  Still, there is the steady market when there are no rules.  Depending on the condition of the market, you may increase or decrease your offer price.
Home Improvements
Minor cosmetic changes like new paint and carpet don’t have a major factor on the home price.  On the other hand, if the owner has made significant changes such as the addition of a new bedroom or bathroom, finishing the basement, or screening in a patio, the offer price should increase beyond the average home.  You don’t have to increase the offer price dollar for dollar on the cost of these additions.  Rarely does $10,000 in home improvements add $10,000 to the value or offer price of a home.
Seller Motivation
A motivated seller won’t allow you to knock down your offer price by a very large amount of money.  That doesn’t mean, though, that you won’t be offer a few thousand dollars below the asking price.  Sellers that are relocating are often motivated to sell their homes for less, especially if their new mortgage will be starting soon.  Be careful of ads that use phrases that indicate they are motivated to sell, often these are tactics used to generate leads.
Consider each of these four factors as you determine the price you want to offer for the home.  If you are working with a real estate agent, get help on this part of the process.  As you consider each of these factors to come up with an offer price, keep in mind any mortgage pre-approval amount that you have been given by the lender.
 Look for Gordon Pate when you visit Bryan/College Station.He knows more of the homes for sale college station that you can convert to storefront business establishment.

Wednesday, June 20, 2012

Five Tips for First Time Home Buyers




The first time you approach a task is usually the toughest.  That’s because you are most unfamiliar with a situation the first time you go through it.  The same is true for purchasing a home.  First time home buyers sometimes have the most trouble with purchasing a home because of their inexperience.  Here are some tips to help first time home buyers purchase their first home successfully.
Prepare your financials.  As a first time home buyer should spend at least the six months prior to purchasing a home getting your financial situation in order.  This means checking your credit report to make sure that there are no blemishes.  Paying off collections and other debts to improve your chance at obtaining and affording a mortgage is also an important step to take as a first time home buyer.  It is important that you take a good look at your budget to determine how much you can comfortably afford to spend on a mortgage.  It is not a good idea to stretch your money too far.
Get pre-approved for a mortgage.  Once you have done the work to clean up your credit report and pay off your minor debts, you, as a first time home buyer, should get pre-approved for a mortgage through a lender.  When a lender pre-approves you for a mortgage, you are given an estimate of the amount of mortgage you will be approved for based on your credit history, debt, and income.  With this pre-approval amount, you have a price range that you can use to shop for a home.
Choose your agent carefully.  The real estate agent you choose will play a major role in the home shopping process.  Not only should you choose an agent that is reputable in the market, you should also make sure that you feel comfortable communicating with the agent.  It is helpful to work with an agent that has experience working with first time home buyers. You don’t have to be best friends with your real estate agent but you do need to get along with this person.  After all, you will be working together for the next three to six months.
Narrow down your selection as you go.  Many first time home buyers have difficulty making a decision about a home to purchase.  After several days of home searching you may find yourself with several houses to choose from.  This can make it difficult since you’ve probably forgotten many of the houses since visiting them.  You should narrow down your selection of houses as you go.  As a matter of fact, it is a good idea to only have three houses in mind at any given time.  Weeding out the houses will make the final decision much easier.
If you must settle, do so within reason.  Finding your dream house as a first time home buyer might be somewhat of a stretch, especially if you are limited by financial reasons.  You might have to lower your expectations slightly to purchase a home.  That doesn’t mean that you have to choose the house from hell.  Instead, make a decision to sacrifice some of the things you desire in a home that can be added later.
Being a first time home buyer can be a rewarding process, especially if you have the knowledge you need to make an informed decision.

Thursday, June 7, 2012

French Gites - lifestyle or a business?



Many are attracted to buying a Gite complex by the lifestyle associated with owning a gite. Lazy days in the French sun supping a glass wine or two sitting around a pool - that will do me fine! After years of 9 to 5 and hours spent on the daily commute it appears to be an attractive option.
At 1st-for-French-Property we have seen a significant increase in the number of enquiries for this type of property over the last few years. Without doubt Gite complexes often look beautiful from a distance but you must be realistic about buying into this market. Firstly, it is a very competitive market and secondly like any business it is hard work (especially in the early years). Of course, there are many successful gite businesses, and you can buy into this market!
We are not going to cover the French bureaucracy issues but concentrate on the business issues.
Remember this is a business and your approach must be professional and commercial. You need a business plan and it must be realistic. If you are buying into an existing gite business check the accounts thoroughly - what are the trends over the last few years? Check turnover and profits especially. This is a notorious "cash in hand" trade and although the owner may imply the profits are better than declared in the accounts - buyer beware! Are staff costs included or have the present owners done all the work or used un-paid family members? Is there a lot of repeat trade? What are bookings like for the forthcoming year? What capital will be needed to be injected for renovations and maintenance?
In France, the "gite season" is typically July and August - a 10 week season! Outside this period you will have to market well - probably to foreign markets - to fill your rooms! Often a more expensive gite complex will have 4 or more rentable units so that they can maximise their earnings in the "gite season".
Some factors - and this is by no means complete - to consider in this competitive market:
a) Location, location, location - as always this is of prime importance. Is it quiet but accessible? Close to facilities? Does it have a wow factor? Imagine you are looking for a holiday - would you like to spend a week here? What do you look for in a holiday?
b) Weather - the further South, the longer the potential season (unfortunately prices are more expensive in the South)
c) Close to a Budget Airline airport? RyanAir, FlyBe, Easyjet fly to many destinations in France and can be a source of "clients" all the year around. If you want to tap into this market you need to be no more than 30 mins to 1 hour away. Are you prepared to pick up "clients" from the airport?
d) What is your USP? Pool and chic gites are no longer enough. You need to offer something extra.....wine tours, pottery, bird-watching. Yes, research your chosen area and make it work for you.
e) Are you flexible? Instead of weekly lets - would you consider chambres d'hote, or weekend breaks in the low season?
Prices? Existing gite businesses cost from 150K euros to 1 million + euros. Before you buy research the market and property. You need to find out how much competition is in the area and what prices you can charge. The internet is an excellent source for the information you need - the regional French Tourist board web sites will tell what you what the area is like and the attractions in the region. To study the competition visit one of the many French Rental sites. For example, on 1st-for-French-Rentals there are over 1000 properties across France. You can see the popular areas quickly, the facilities the gites offer and most importantly the prices you can charge during the whole year. Often each property will have a calendar and you can see the levels of booking and the extent of bookings in the Low seasons. This will give you a clue to the potential of a gite complex. Plug the figures into your business plan - does it add up? Don’t be emotional about a property if this is going to be your income in France.
So be realistic and if you enjoy hard work, this lifestyle can be yours!
Gordon Pate is one of the most trusted remax realtor bryan tx, that you can turn for business solutions and tips on remax properties bryan tx.

Wednesday, June 6, 2012

Home Selling Guide -The FSBO Way

FSBO is an abbreviated form of for sale by owner. Sometimes it is known as Fisbo or Fizbo. Term FSBO is used to describe people who are going to sell their property without any assistance of real estate agent/company. Trend of real estate business is increasing day by day. Nowadays people don’t want to pay the commission fees of real estate agents to sell their own property. Sometimes property owners have to pay thousands of dollars in order to sell their property.
Internet plays a significant role in real estate business.Remax property owners can display their piece of land on Internet and can easily sell their property without paying any commission to brokers. There are several real estate companies that are always ready to help the owners to sell their properties. People choose FSBO just because they want to actively involve in the entire advertising procedure. FSBO enables them to save a large amount of money at the time of selling their own houses.
FSBO offers multiple listing services that are the best option for the owners. MSL is the best tool to reduce the workload of professionals. Real estate owners can earn a good amount by selling their property through local newspapers. They don’t require real estate agents for the advertisements. Online advertising can attract more buyers because mostly people search on Internet for a good piece of land.
Real estate owners can easily get a great amount of their house by following certain points. They should determine the exact value of their home and also spend some money to renovate the building so that buyers like the property. They should discuss with their friends, relatives and others about their property. You should try to sell your real estate at actual market price. You can also advertise in newspapers, publications or websites etc.
For a successful FSBO, you should know complete details of your property like sq footage / lot sizes / restrictive covenants. You should understand all contracts, offers and acceptance etc. You can also consult an attorney to make a best deal. You should tell important features about your property.
Increase the value of your property before putting it up for sale, for questions ask here.

Friday, June 1, 2012

Four Mistakes Home Buyers Make

Buying a home is part of the American dream - and for millions of Americans, that dream becomes a reality every year.  Unfortunately, for every dream that comes true there are those that silently fade out.  Home buyers, especially those buying their first house, can make a lot of mistakes in the process if they aren't careful or don't have a good resource (such as a knowledgeable friend) to go to for advice.
We all would like to think the realtor is going to steer us straight, or that our mortgage company would warn us if something doesn't seems right - but he fact of the matter is they are both there to make money off you and so they usually don't have a vested interest in steering you clear of anything.  With that said, let's take a look at four of the most common mistakes home buyers make.


First, they buy a home they simply cannot afford or do not need.  Have you heard the term McMansions being used?  It refers to all the huge houses that seem to pop up everywhere nowadays.  Just how many square feet does a family need?  All too often new homeowners, and even seasoned veterans, can fall into the trap of buying way more house than they will ever need.  Most real estate agents want to push the most expensive property they can on you because, guess what, they earn a commission based on how much you spend!  Our advice?  Go home shopping with some of the smartest people out there - your parents!  They have been through this before and can be a great source of information that is coming from a (hopefully) unbiased source.
Second, home buyers fail to lock in their interest rates when buying homes for sale college station tx.  Interest rates change on an almost daily basis it seems.  Some home buyers like to "test the waters" and see how long they can go before locking in a rate - it works sometimes, but it can bite you if the interest rates suddenly jump.  Shop around for the best deal on a mortgage, and when you find one you want ask them to pre-lock the interest rate in.  They can usually do this for a period of 7-14 days - which doesn't give you much time, but hopefully you will already know which house you want to pursue and can start the paperwork soon afterwards.
Third, a lot of new home buyers don't understand the complicated mortgage process and all the terms and rules of the loan.  You are getting ready to sign off on one the biggest purchases you will probably ever make - do you realize what you are signing?  Have an attorney, or family friend who is into real estate, go over the mortgage paperwork with you.  Ask lots of questions of your mortgage lender about the loan.  Don't be afraid to shop around and check different lenders out to see who can give you the best deal.
Most importantly, realize that you are signing a long-term commitment with serious financial complications if you don't hold up your end of the bargain!
Finally, many homeowners both old and new don't truly understand all the insurance options available to them.
How many of you reading this believe that your house is covered if a torrential rainfall hits and you get flooded?  Unless you've purchases Federal flood insurance then you are out of luck - our homeowners insurance doesn't cover floods!  You shopped around for a mortgage, but did you shop around for homeowners insurance?
Do you understand your policy limits and deductible?  Are you covered for a place to stay if a fire strikes your house?  All these questions should be asked of your insurance agent before you buy a house.  Make sure that you are covered for the unknown before you set foot in your new house.
Buying a new home can be a fun, exhilarating process.  Nothing in the world can quite beat the feeling of owning your own home.  Take a few minutes to understand the responsibilities of owning a home and you will be better prepared to have your own piece of the American dream.

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