Why Buy Property on Roatan Island Honduras?

Discover an untouched paradise on Roatan. Roatan, the largest of the Bay Islands off the coast of Honduras boasts tropical landscapes surrounded by crystal clear Caribbean waters. Roatan is often found to be as affordable, if not more affordable, than surrounding Central American countries. Come to Roatan to start loving where you live!

The Roatan real estate market has a lot to offer a foreigner desiring to buy property on the island. Whether you are looking to invest in a continually booming market, purchase a second home for vacationing or to share with others, or searching for the perfect location to re-locate or retire, Roatan is for you.

The weather on Roatan is great all year long. The water is always warm and the tropical climate makes for beautiful scenery and cool evenings alongside the beaches.

Some benefits of moving to Roatan include an appreciating real estate market, knowledgeable and friendly real estate agents who speak English, investor friendly laws to protect you and your investments, a great local community maintaining a relaxed island lifestyle and an upbeat place to live. Additionally Roatan offers white sand beaches that fade into calm, warm Caribbean waters: heaven for scuba divers and water enthusiasts alike. The cost of living is extremely affordable and can be as extravagant or simple as you prefer. Modern hospitals and healthcare facilities exist on the island, and for very serious issues more advanced hospitals are a short plane ride to the mainland of Honduras.

Roatan Island has an international airport, docks and marinas, banks, grocery stores, and schools. Accessing the island is very easy from anywhere in the world with direct flights being offered by many mainstream airlines. If re-locating to Roatan, some of the top vacation spots in the world are right around the corner. Roatan offers all the amenities you look for in a place to live or raise a family, but offers them at a much lower costs and in a more beautiful and culturally diverse environment.

Roatan has a market for every buyer. If you would like to buy a home as an investment, our real estate agents can help you rent it out and maintain the property while you are away. For the vacationer and free spirit, Roatan offers more affordable housing that will be available to you whenever you decide to visit. For the people who want to make Roatan their home, the options are limited only to the imagination: Lush green tropical hillsides, beachfront property, huge estates, jungle plateaus, or homes near the main cities are all available.

On Roatan people can easily choose between developing property from start to finish, renovating an existing location, or moving into a completed new home. Running hot water, electricity, television, and high-speed internet are all available. The resources on Roatan are available for the business you always wanted to try, or opportunities to take over running businesses. The tourism industry on the island is very active and lucrative as Roatan is a great place to dive and relax all year long.

Honduras is a democracy headed by a President and Legislature, both elected by the voting public. Obtaining residency is easy. Honduran government encourages foreigner investment and has privatized most businesses for that reason. The government will grant citizenship to retirees or people moving into the country and living off of investment incomes or foreign incomes without taxing personal items, vehicles, and appliances brought into the country. The government values stability and over the past 15 years has placed, and continues to place, high importance on foreigners, which is why Honduras laws protect foreign investors just as they would a native. Foreigners can own land and are not required to lease the land.

Your safety is not so much a concern as it is almost guaranteed. The island of Roatan was once under British rule and many island natives speak English. Unlike some other Latin American countries where safety is of high concern, the Honduran government has taken extra precautions in recent years to keep visitors and newcomers safe.

Unlike other Central American cities, Roatan is removed from most mainstream political conflicts. Roatan?s climate is temperate year-round: the average temperature is 81?F. The people are friendly and the prices of property are on a steady increase, but remain affordable. The people of Roatan are kind, the lifestyle is simple. If all of these traits interest you, then Roatan can be your paradise. Honduras is one of the most reasonable priced places to live in the world and Roatan is no different.

Ryan Bernal is a freelance travel writer. RoatanLife.com is a premiere Real Estate company on Roatan. Please visit: http://www.roatanlife.com for more information.

Identity Theft: The Devastating Impact It Can Have On Real Estate Investors

Identity theft has emerged as one of the dominant white collar crimes of the 21st century?a crime that can range from inconvenient to catastrophic for its victims. Though everyone needs to safeguard their personal information, it is especially important that you as a real estate investor protect yourself.

To understand why, let?s first discuss exactly what identity theft is: The criminal steals your personal information to facilitate other crimes, such as credit card fraud, check fraud, or mortgage fraud. An identity thief can open new accounts in the name of a victim, borrow funds in the victim?s name, or take over and withdraw funds from existing accounts. While these are the most prevalent, the FBI says that these financial crimes are not the only criminal uses of stolen personal information. Other crimes can even include evading detection by law enforcement in the commission of violent crimes. Beyond the direct economic impact of identity theft, victims may be unable to cash checks, obtain credit, or purchase real estate for a period of months or even years?and they may even be arrested for crimes committed by the identity thief.

If you are the victim of identity theft, you could easily find yourself in the middle of a great deal and be unable to close because the financing won?t go through. Correcting a credit report damaged by an identity thief is a time-consuming process?you?ll probably lose that deal and others before you get the problem resolved. The solution is to avoid becoming a victim or, if you are a victim, to find out early enough to minimize the damage.

Signs that you may be a victim of identity theft include:

- Charges on your accounts that you did not authorize.

- If you are denied credit even though you have a good credit history.

- If you are contacted by creditors regarding debts you never authorized for goods and services you never received.

- If your credit card and bank statements are not received in the mail as usual.

- If a new or renewed credit card is not received.

The most important thing you can do to avoid becoming a victim of identity theft is to be aware of the problem and protect your personal information. Store your personal information in a safe place and don?t give it out unless you initiated the contact. Remove your name from mailing lists for pre-approved credit lines and telemarketers. Shred credit card receipts and old statements before discarding. And check your credit report regularly.

You are entitled to receive a free copy of your credit report from each of the three major credit bureaus once a year. (Go to www.annualcreditreport.com to order yours.) Though it?s possible for each credit report to be different, they usually contain much of the same information. Request one every four months and check the report carefully for unfamiliar activity. Take immediate action if you see anything that looks suspicious.

Consider investing in a credit monitoring service which will alert you to changes in your credit file. The cost ranges from $24 to $60 a year. Money Magazine?s Pat Regnier says this may be worthwhile if ?you?re a biz owner or real estate buyer who can?t afford any halt on your credit after an ID fraud.?

Bottom line: don?t make it easy for someone to steal what you?ve worked hard to build.

If the Worst Happens

If you are?or even suspect you might be?a victim of identity theft, take immediate action. Follow these steps recommended by the FBI:

- Contact the fraud departments for the three major credit bureaus to place fraud alerts on your credit file to reduce your risk of further victimization.

- Obtain and review a current copy of your credit report; the credit bureaus should automatically send that to you when you request the fraud alert.

- Contact the account issuer(s) where fraudulent accounts have been opened or your accounts have been taken over; ask for the fraud/security department and notify them by phone and in writing.

- Close all tampered or fraudulent accounts and ask about the existence of secondary cards.

- File a report with your local police department, as well as with the police department in the area where the ID theft occurred; get copies of the police reports.

- Keep a detailed log of who you spoke with and when, including name, title, phone number, and other contact information.

- File an identity theft complaint at www.consumer.gov.

Jordan Taylor is the editor of Millionaire Mentor? Newsletter, which is published by Whitney Education Group, Inc.? To sign up for a free subscription, visit http://www.russwhitney.com

IRS 1031 Exchanges and a Partial Partnership Interest

As an individual owner of a property we know the 1031 exchange is an IRS-approved technique to defer gains from one property into another one. This article looks at issues surrounding IRS 1031 exchanges and a partial partnership interest.

As a general concept, when relinquished property is owned by a partnership, the process of exchanging that property for another like-kind replacement property becomes a bit more complicated. Here are a few reasons why:

A partnership, much like a corporation, is an entity unto itself that assumes all characteristics of an individual and is regarded by governments and other institutions as an individual. While many people may have partial interest ownership of the partnership, they, as individuals, are not responsible or liable—the partnership is.

If one owner within the partnership wants to conduct a 1031 exchange, he or she cannot. The IRS will not allow a co-owner to exchange partnership interest for real estate. The partnership only, as an entity, can dispose of the relinquished property and the partnership, as an entity, can acquire the replacement property. In other words, the relinquished piece of real estate is exchanged for the replacement real estate by the partnership – not the individual partners in the partnership.

So what is an individual partner of a partnership to do in order to complete a 1031 exchange? A start would be to try to convince other partners to also complete a 1031 exchange on behalf of the partnership. If that doesn't work and not all partners agree to the exchange, an individual partner could suggest to be bought out of the partnership. That then relieves an individual partner of any responsibility to the partnership. However, there is a good chance the exiting partner would have to pay taxes on his partnership gain.

If those two options above are unsuccessful, the various partners could consider dissolving the existing partnership arrangement and petitioning for Tenancy-in-Common treatment of the underlying real estate assets. This would restructure the ownership of the property and allow each of the partners to participate in his or her own investment strategies without impacting the other partners. However, there are strict regulations set forth by the IRS to determine what constitutes ownership in such an arrangement. It may take a year or so before restructured real estate ownership is acknowledged as eligible for 1031 treatment.

While a 1031 exchange involving partial partnership is possible, there are many issues that arise. Prudent, careful, and advanced planning are the keys to avoid a messy exchange.

Real Estate Buyers Market

You must buy real estate was the battle cry last year, unfortunately this was very bad advice at the top of the market. Yet, many people believed prices would never go downward again? For those who have lived decades and followed the real estate market they know full well and good these cycles and trends come and go. It is almost a known fact and the decade-long cycles are so commonplace to real estate.

Well today it is a buyers market, which could mean you can expect more shopping, longer waits to sell your home and many more mandatory inspections with the house offers. Additionally, people will be shopping and getting much better deals and demanding much more as well. They will be expecting to pay a lot less and if you keep your price high, your home simply will not sell at all.

The housing market generally has new homes come onto the market after Labor Day and therefore there is more competition after Labor Day for sellers and more bargains for low-balling buyers. This could add a 10% increase in houses on the market and that could mean a 10-20% reduction in prices too.

What does all this mean for the economy? Well consider if you will the consumer confidence levels which are so important and the Wealth Affect; how people feel about how wealthy you feel.

If people find eroded equity they think they are poor and stop spending so much or pulling money out of their home for paying off credit cards or buying luxury type items. This means people spend less money on consumables. But one thing is for certain and that is in a buyers market - Price Rules! Consider this in 2006.

Lance Winslow - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs/

Finding the Ideal Property to Rent

The mere thought of having to find a property to rent, whether this is your first go at it or you?ve become an experienced pro, can leave an undesirable taste in your mouth. Why? It almost always seems that every apartment that you?ve looked at (or will be looking at, if you?re new to this) seems to come up a bit short of what you really want (at least, among those in your price range). But not to worry, as with a bit of planning, you?ll be surprised at how smoothly and successfully your efforts can go!

Firstly, you need to decide upon the type of property you want to rent. Perhaps a one-bedroom flat will suit your needs nicely, or maybe a two-bedroom country house is more to your liking. Make a list, prioritize, and be open to suggestions, change and compromise; likewise, be aware of those features you aren?t willing to sacrifice at any cost.

Secondly, check online to browse the available flats and houses. To make your life easier, there are a few quality websites that aggregate listings, as they exist solely for this purpose. Again, make a list and prioritize; be open to suggestions, change and compromise. For example, maybe you really don?t need that second bedroom in order to keep the superb view of the city within your price range. Or maybe gas central heating is more important to you than living close to the train.

Thirdly, when you find a property that you?re interested in, be sure to research the building, the general area, and the landlord. A quick web search for the landlord?s or management company?s name will often tell you whether the tenants are treated well. If the property of interest is one in a larger development, you can always take a leisurely stroll during the day and ask quick, simple questions of any tenants you might see.

Likewise, you can get information on the neighborhood?s crime rate with a web search or by asking a knowledgeable realtor or someone who lives there. Alternatively, you can take a stroll through during the evening and observe the neighborhood for its typical social behaviors.

Above all, be mindful of your priorities, and do your homework! With so many resources available (both offline and online), there?s no excuse to get into a lease that will leave you unsatisfied.

Carolyn Jameson recommends that you visit www.rentright.co.uk for more information on property to rent in the UK.

Home Buyers Does Your Agent Work For You?

As a buyer, you may be looking at many properties -- those listed with an agent as well as those sold privately, by owner. Let's say you call a real estate agency regarding a listed property you have found in MLS (multiple listing service), the newspaper, or by driving by. Traditional agencies will offer you 'buyer assistance', meaning that they will show you properties, direct you to mortgage lenders, etc., all without a contract.

The agent you meet who shows you that property will be anxious to show you other properties, of course. You begin to feel that this agent is your agent. NOT TRUE. This agent works for the agency that listed the property, and most likely is working for the seller of the property, not you. Anything you say may be carried back to the seller at any time.

Agents may call themselves many things according to state regulations. In Massachusetts, for example, the listing agent is the agent who obtained the listing from the seller. The selling agent is the agent who actually makes the sale. In order to better understand this concept, bear in mind that a real estate agency makes the most money when one of their listed properties is sold by an agent in house.

Most properties are not shown or sold by the listing agent. Although the homesellers may have spent considerable time with the listing agent discussing the fine points of their home so that they will be knowledgeable when showing it, the property will most likely be shown by agents who are totally unfamiliar with their home. Remember, whether talking about a listing agent or a selling agent, unless you have signed a contract with a buyer's agent, their allegiance is always to the seller.

As if this isn't complicated enough. using Massachusetts regulations as an example, a broker can work for both the buyer and the seller on the same property provided the broker gets the consent of both parties and provides each with a written notice of the relationship. In this case, the broker is considered a disclosed dual agent. This broker owes both the seller and buyer a duty to deal with them fairly and honestly.

In this type of agency relationship, the broker does not represent either the seller or the buyer exclusively, and neither party can expect the broker?s undivided loyalty. Realistically, it's hard to imagine that properties are not discussed over lunch or between agents sitting at the next desk. Undisclosed dual agency by a broker is illegal. The agent must present the buyer with an agency disclosure form upon first meeting to discuss a particular property.

The use of an agent becomes further complicated when the subject of seeing properties offered by owner is brought up. Unless the agent that is showing you properties is a buyer's agent, the only way he/she can get paid is to get the private seller to list the property, something that is not likely to happen. You don't need an agent to see a for sale by owner property and some sellers prefer not to negotiate with anyone but the buyer directly. If you do feel that you need representation, the one agent that has loyalty to you, the buyer, is a buyer's agent.

A buyer's agent (ie. buyer broker) represents you, the buyer, and never the seller. Some buyer brokers are known as exclusive buyer brokers/agents. Exclusive buyer brokers do not list property - period, nor are they housed in an agency that does. The buyer broker's commission, typically 3%, is generally accommodated in the selling price of the property, paid at closing. The National Association of Exclusive Buyers Agents (NAEBA - www.naeba.org) is a good resource to locate buyer's agents in your area. Buyers, remember that a buyer broker is able to show you listed properties, foreclosures, new construction, and for sale by owner properties.

A word of caution....make sure you tell the agent that you want to see ALL available properties without regard to who pays the commission. We have often heard of overly aggressive buyer's agents who will not inform their buyers about a property unless the seller agrees up front to pay their commission. This behavior is unwarranted as the buyer has already agreed to pay any commission due.

NOTE: If you are currently working with a buyer broker and you are looking at a for sale by owner property, please let the seller know up front. Don't wait until the negotiations are underway to bring in representation. It could easily kill the deal. Most sellers are very open to showing their property to you and your buyer broker - just don't assume they'll pay your agent's fees.

Liz Provo, is the publisher of Picket Fence Preview For Sale By Owner Magazine, distributed throughout Western Massachusetts and online at www.MA4salebyowner.com

Website: www.MA4salebyowner.com Phone: 413-529-2971 Email: info@ma4salebyowner.com

Permission to use this article is granted as long as the author information and website link is included.

Good News for Owners Sale of New Homes Down but Existing Home Sales in Good Shape

Over the past months, we have all been inundated with projections on the housing market bubble ? Will it burst? It is going to burst soon, be prepared! Sell Now! Buy Now! And the forecast differs depending upon the television channel you are listening to or the media article you are reading.

According to James Cooper of BusinessWeek magazine, the numbers point to a gradual slowdown of the market ? not a sudden crash, as many have predicted. In his July 10, 2006, article, Cooper cites how different indicators for the housing market are up one week and down the next. Some homes for sale indicators decline, while others rise. Though it is difficult to accurately project the future of the housing market for the remainder of 2006, he is optimistic ? in spite of all the noise that changes the market outlook on a daily basis.

Compared to last year?s peak numbers, the housing market is in decline for both new and existing homes for sale and the growth rate of prices continue to slow. Yet, the expected drop in sales has not been as bad as predicted, and the market collapse forecast has not occurred. The progressive slowdown is expected, however, to continue through the remainder of 2006.

The area of the homes for sale market that has been hit the hardest is the new single-family homes and existing condominiums and co-ops. Existing single-family homes for sale have faired the best with only a gradual decline in prices.

New home sales have fallen off sharply in 2006 and have the most volatile market indicators that cause the chaotic forecasts. There have been some ups and downs since the first of this year; however, new home sales are down overall by 10.9 percent since the end of 2005. Currently, builders have large inventories of new homes for sale that are expected to create further declines in both sales, prices and new construction starts for the future.

In May of 2006, the number of new homes for sale was up nearly 24 percent from last year for the same period. Median prices of new homes for sale were up by 5.1 percent for the same period but now have slowed drastically. With the average time to sell a new home being almost six months, builders are offering incentives to buyers, including helping with the closing costs, and are more willing to lower prices in order to sell off their inventories.

Condos and co-ops sales were off by 6.7 percent during the first half of 2006. The number of such homes for sale on the market has soared in the past year, gutting the market and bringing down prices and sales. The number of unsold units are up 73 percent.

The good news is for existing homeowners with homes for sale. This market is currently in good shape with both sales and prices holding up better than the new homes for sale market. Such sales have declined in seven out of the past nine months, but median prices are up 8.2 percent over the same period in 2005. According to Cooper, homeowners are not as willing to lower their prices as are builders, preferring to leave their homes on the market in order to find buyers willing to meet their price.

The bad news for owners of homes for sale is the number of existing homes currently being put on the market. In May of 2006, the number of existing homes for sale rose to 3.6 million, that?s one million more than in May of 2005. This is sure to begin affecting the existing homes for sale market. Additionally, the Federal Reserve is expected to raise interest rates soon that will affect mortgage rates for buyers. Right now is the best time to sell your home as buyers race to lock in current mortgage rates before the Federal Reserve takes action.

The predicted housing bubble crash is not expected in the near future. Consumer confidence is up by one point in June of 2006, according to the Conference Board?s index on consumer confidence, weighing in at 105.7. With good buyer confidence in the homes for sale market, a solid economy, and good labor markets, owners with homes for sale are still at a competitive advantage for now.

John Harris is an expert researcher and writer on real estate topics such as economics, credit improvement tips, home selling advice and home buying preparations. For more on San Diego Homes for Sale visit http://www.twtrealestate.com

Drum Beat Of Realty Downturn Off Key

One thing is for sure, real estate bubble headlines sell newspapers, not houses. Bubble this and bubble that, is your market one of the top over-priced ones? Comparisons to the dot-com crash, what's a home buyer to think? Exactly that, think, research and make educated decisions. Here is a reality check for those considering a home purchase.

-Residential real estate is moving away from being a speculative investment back to it's tried and true roots: shelter.

-The real estate market is not a centralized one like the stock market. The real estate market is made up of many thousands of micro or sub-markets. Each micro market performs differently and uniquely and does not always mirror national or regional trends.

-Ten states posted solid sales gains in the second quarter of 2006 versus 2005, reported the National Association of Realtors(R). The gains ranged from an impressive 48% in Alaska to a low of 5.3 percent in Georgia. The other eight states included Arkansas, Texas, North and South Carolina, Vermont, Tennessee, New Mexico, and Wyoming.

-Interest rates have been on the up-tick in 2006, ask any homeowner from the 1980's if they consider a 6 % mortgage too high, and they'll laugh you out of the room. From a historical perspective interest rates remain a bargain.

-Home buyers who read and believe the headlines and sound-bytes today and write a low-ball offer on a home are not buying houses. Homes that are well priced based on comparable's from the last six months and have updated kitchens and baths still sell the old-fashioned way; quickly.

-Agents from around the country report some homes are selling with multiple offers, over-full-price offers and in a matter of days. Upper-bracket properties are moving too. Though the frenzy of the last couple of years is not present in today's market.

-The market today in most areas is a balanced one, with the pendulum swinging back towards center. But Texas, Idaho, the Carolinas and other micro markets can still be sellers markets.

-Buyers need to realize that while they have more clout in many markets, they are still not driving the real estate market bus.

-Concessions by home sellers are signs of excess inventory. Concessions in new construction homes are more typical and shouldn't be arbitrarily carried over into resale home markets. Resale sellers though are now aware that they might have to offer repairs on home inspection items or help with closing costs to close a negotiation.

Mark Nash is the author of Fundamentals of Marketing for the Real Estate Professional, Starting & Succeeding in Real Estate, Reaching Out: The Financial Power of Niche Marketing, and 1001 Tips for Buying and Selling a Home. Mark is a contributing writer for: Realtor (R) Magazine Online, Broker Agent News, Real Estate Executive Magazine, Principal Broker, and Realty Times. He contributes residential real estate analysis to Business Week, CBS The Early Show, CNN, HGTVpro.com, The New York Times, The Today Show, and USA Today. View his books at http://www.1001RealEstateTips.com.

Real Estate Tips On Finding A Business Partner

Think you can get ahead faster with a business partner? It is important to remember that approximately 80% of business partnership?s don?t work. The odd?s are very high that any real estate group in which you are involved in may not survive. Cautiously enter into your investment group with watchful eyes. Here are some key factors to consider.

Make sure your goals and objectives are consistent with the rest of the group. Are you committed to working at all hours of the day to get the job done? Well, what about your partner? You know what skills you have. You know your strengths and your weaknesses. If your partners are your friends and relatives, you probably have a clear idea as to what skills they can bring to the table. However, when your joining an investment group of strangers, it?s important to clarify exactly what, if any, skills they will bring to the overall collective objective. Sometimes your investors will simply put their money into the project and not actually participating in any work that needs to be completed.

Consider the liquidity of the investment. How quickly can you get your money out of your Fraser Valley Real Estate investment? You should not invest money you cannot afford to loose. This is the golden rule and it should be applied to real estate in all area?s of the Fraser Valley and Lower Mainland area. For example: Richmond, Surrey, Coquitlam, Burnaby, New West, Langley and Abbotsford. In practical terms, most investments are tied up for the duration of the deal. This issue of course is a critical one. This has a direct correlation with liability of your investment. You want to avoid personal liability for any financial problems that can occur. If you are investing in a corporation that is holding the property for the group and the corporation has taken out a mortgage with a lender, the lender may require personal guarantees from the shareholders of the corporation. That would be YOU!

Consider? When investing with a group is getting out of control, how to get out? Why not a buy out! Make sure there is a procedure to follow before you get into a concrete group investment. Know the buy out terms before the money is put onto the table. Your Fraser Valley Real Estate investment should always be safe and secure. Whether your buying a condo, apartment, townhouse, house or mobile home in British Columbia, remember to cover you assets.

Shane Toews is a Licenced Realtor who helps others to educate themselves on current real estate issues. He also provides assistance on how to locate quality homes, apartments or vacation rentals in Canada's Fraser Valley area. Visit his website RentFraserValley.com for more information on Canada's Fraser Valley Real Estate Market

Mortgage Lenders Have Sinking Stock Prices

Builders aren't the only ones seeing stock prices slump from the weakening real estate market, mortgage lenders are seeing shares begin to sink as well.

Countrywide Finanical has seen stock prices fall 20.9% since May 2006. Accredited Home Lenders, a subprime lender, stock has fallen by half. Thornburg Mortgage, an adjustable rate specialist, has seen stock fall by almost 20%.

Lenders are starting to see a gloomy outlook as the real estate market continues to weaken. Borrowers are seeing higher prices to both purchase and build combined with higher borrowing costs. Sales of both new and existing homes were down 4% in July, according to the National Association of Realtors, while the inventory of unsold homes is hitting high levels.

With fewer people taking out mortgages, overall applications are down 25% for the year.

The volume of loans is declining, said Bose George, an analysist for Keefe Bruyette & Woods. The market expects declines for the next few years. And that is obviously a drag on revenue and earnings, because lenders will have to compete more aggressively.

The market is also beginning to see fallout from the high usage of exotic mortgages over the past few years. An increasing number of borrowers have chosen adjustable-rate mortgages over the past few years. With these products beginning to reset to higher interest rates, delinquency rates are beginning to see slight increases. Delinquencies for the first quarter of 2006 were up 0.1% when compared to the first quarter of 2005, according to the Mortgage Bankers Association.

Borrowers are missing more of their payments than before, said Matthew Howlett, an analyst at Fox-Pitt Kelton.

H&R Block reportedly has set aside $61.3 million to offset potential losses from its subsidiary, Option One Mortgage, due to delinquent mortgage payments.

The fear of a worsening, even steep, housing slump will continue to result in investors continue to sell mortgage lender stock.

Martin Lukac represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!

FAQ #3 from Media Real Estate

Real estate bubble talk seems to be the most prevalent question I'm asked by the national media, be it print, online, or TV. The problem is that the market national real estate is comprised of thousands of micro-markets and making a sweeping generalization about the status of residential real estate in the United States doesn't serve anyone. After all would these journalists want their own home price deflated based on some broad market hype? I don't think so. Here are some common questions with my response.

Is it a buyers market?

Nash: Buyers have more weight in the market then they have had in the last five years, but the market is balanced and doesn't favor either buyers or sellers.

Do you think there is excess inventory of unsold homes?

Nash: The supply of resale homes is certainly up and the number of new construction condos is staggering. Most markets have been vacillating between warm and cool in 2006, so I am waiting for the prospect of pent-up buyer demand to turn into sales before making any forecasts, which everyone is waiting for. It's not easy to read the market at this point in time.

What about 2007?

2007 should be a consistent year sales wise for real estate. People have to remember that housing is also shelter and does not exactly mirror the stock market. People need to live somewhere. Consumer confidence is on the rise, and with energy prices falling, home buyers that have stayed on the sidelines, should make a purchase in 2007.

What about the new Option ARM mortgages?

These mortgages are not so new, but being peddled today to home buyers that probably are over-borrowing if they need an Option ARM. Consumers should know that these loans include negative amortization, which is not in their short or long term financial interest.

Are incentives going to motivate buyers to sign contracts?

Nash: In new construction they are quite common, and do motivate buyers, but many buyers have told me for years that they feel incentives are factored into sales prices, or that prices are raised to include the price of the incentive. In existing homes, incentives are trying to break in to the process, but are being met by buyers with resistance. Most buyers want to cut to the chase and get the lowest price. One exception is flat-screen televisions, they can entice many buyers, especially men.

Seller concessions on resale homes appear to be the buzzword for 2006.

Nash: We are seeing home sellers be much more flexible in 2006 on repairing or crediting buyers for inspection issues. Also they are more likely to help with closing costs. But, they are not giving much on price.

When is your annual report on What's In, What's Out with Homebuyers in 2007 released?

Nash: The second week of December. It has some interesting new trends that are the result of the correcting market in 2006.

How can home buyers, sellers or real estate agents participate in the survey that is part of the report?

Nash: They can visit my website: http://www.1001realestatetips.com, click on For Agents and register.

Mark Nash is the author of Fundamentals of Marketing for the Real Estate Professional, Starting & Succeeding in Real Estate, Reaching Out: The Financial Power of Niche Marketing, and 1001 Tips for Buying and Selling a Home. Mark is a contributing writer for: Realtor (R) Magazine Online, Broker Agent News, Real Estate Executive Magazine, Principal Broker, and Realty Times. He contributes residential real estate analysis to Business Week, CBS The Early Show, CNN, HGTVpro.com, The New York Times, The Today Show and USA Today. View his books at http://www.1001RealEstateTips.com

Understanding Your Real Estate Market

Real estate is a constantly moving market. It can quickly change from a buyer's to a seller's market seemingly overnight. No matter what the conditions where when you purchased your home, they may not be the same now. Real estate values change by the season, and sometimes more often than that.

If you are looking to buy or sell, you need to look at your area's market. Not the national market, but your neighborhood specifically. Real estate is a regional thing. While the nation may be slowing down, you may be in an area where things are starting to pick up a bit.

Look to see if homes are selling quickly. Are new families moving into your area? Are homes on the market for a long time? Is there a lot of traffic at homes for sale? Are homes being improved and sold? Are property values going up?

If you see the above things, chances are that you will have an easy time selling your home -- given that it is well maintained and reasonably priced.

But don't worry about the market too much. No matter what is going on around you , there is a buyer for your home. It just takes a little time and the right price. If you are in an area experiencing a buyer's market, you should make your home as attractive as possible.

Another plus to a buyer's market is that when you in return are looking to buy a home, you will hold the upper hand a bit. You may not have to pay as much for your new home as prices may have gone down. When buying or selling, there are advantages to each side of each type of market.

As a homeowner, you are best protected from the ups and downs of the market by keeping your home well maintained. Keep in mind that you probably won't own the home forever. Work to pay down your mortgage and build your equity as quickly as possible.

Markets are always changing. If you find that the market conditions in your area are not so favorble to selling right now, perhaps you can wait. They will change given a little time.

Martin Lukac represents http://www.RateEmpire.com, an Internet consumer banking marketplace. RateEmpire.com is a destination site of personal finance, investing, taxes and mortgage rates. RateEmpire.com provides mortgage guides and financial rates and information. RateEmpire.com also operates a financial portal #1 American Financial, found at http://www.1AmericanFinancial.com and San Diego loan portal http://www.LendingSanDiego.com

Some Tips To Help You Understand Real Estate Buyer Agreements

There are few things that are as stressful as buying a home, especially for the first time. There are so many things to consider, such as the size of the home, the location it is in and whether it has a good school district. Many purchasers opt to have a real estate brokerage represent them in the sale. The responsibility of a person licensed to practice real estate is to act as a liaison between the selling and purchasing parties to the transaction. An agreement must be signed by the agency and the purchaser in order for the licensee to represent them during the course of the transaction.

The written agreement between an agent and a client must be clearly detailed, prior to any transaction taking place. This includes the names and addresses of both the purchaser and the company agreeing to represent them. It may also detail such things as the estimated price range of the purchaser as well as any contingencies they may have. For example, one contingency may be that they are already considering a certain home from a person without any agency representation, such as a friend or relative. The agreement would state that if they decide to buy that house or any house that was previously looked at prior to the agency agreement, the agency would not be entitled to any form of compensation.

This can also include the homes that the purchaser has looked at, that had a seller who was represented by an agency, but the purchaser did not have representation at the time of the viewing. This is why it is so important for a buyer to be clear when detailing to a prospective broker or agent, any type of contingencies that they may have. Brokers usually have pre written agency agreements and there are usually several kinds that the buyer can choose from.

The exclusive Right to Represent Buyer/Broker Agency agreement is the one that is typically used to detail the agreement between the buyer and the agent. In this agreement, the purchaser consents to allow the agent to represent them on an exclusive level. It also details the amount of commission the purchaser agrees to pay for the service, as well as the length of time the agent is given to represent them.

The Non Exclusive/Not for Compensation agreement also details what is expected of the agent. In this agreement there is no specification of the amount of commission to be paid and the purchaser retains the right to use more than one agent.

The Non Exclusive Right to Represent agreement also details the requisite obligations of the agent but also includes an agreed upon commission to be paid. The purchaser still retains the right to use other agencies.

Gregg Hall is an author living in Navarre Florida. Find more about this as well as commercial real estate loans at www.commercial-loans-now.com

How To Lose Money On A Fixer Upper

A fixer upper home seemed like a good investment, but we had little experience. We had bought, fixed and sold a home in Montana for a profit, and completed the project in only a few months. However, we were new to the Tucson area, and didn't quite have a grasp on the home values. In Tucson, two identical houses can be $50,000 apart in price if they are three blocks apart.

Then there was the fact that the styles are different from anything we had in Michigan. They put corrugated steel fences around expensive homes here, and the people talked about how pretty they are! If we were to do a fixer upper, it would be good to have some help figuring not only home values, but also what buyers want.

We went to the Arizona Real Estate Investors Association meeting, and I announced that we had money to invest in a fixer upper home. We were looking for partners. Our names and phone number were written down on the overhead projector along with the others, and about three days later we got a call.

Bill and Diane were nice people. They had an accepted on a house, and looking at the comparison sales they had found, it seemed like a good buy. They had rough estimates of the rehabilitation and remodeling costs, which is what they needed our money for. A third couple was involved, so the expected $75,000 profit would be split three ways. We agreed in principle to the deal, and arranged to meet the other partners at the house after closing.

Fixer Uppers Versus Remodels

Three couples with six opinions - this can be a problem. Why did the beautiful wood floors have to be torn up and replaced with carpet? Why they couldn't at least be carpeted over without the expense of tearing them out? My wife and I thought it a crime to stucco and paint the beautiful brick exterior of the home, but we were assured that buyers here like it that way better. The ceiling in the add-on family room was a bit low, but raising it seemed too expensive and unpredictable.

Plans became new plans, and weeks of stressful anticipation evolved into stressful worrying. Houses in the area were selling for less than we initially thought, that the rehab cost would be more than we thought, and all the other partners expected to do much of the labor, rather than hire it out. Projected profits dropped from $25,000 down to $10,000 each, and we felt there might actually be a loss.

We dropped the deal. Fortunately, the other partners had procrastinated for weeks on our signing of the joint venture agreement. They would find a way to do it without us and split the profit two ways. We learned that this wasn't a fixer-upper in any case - it was a remodel. As I write this, it is more than three months past the projected completion date, and the home still isn't ready to sell. I hope they make a profit, but I am happy to have avoided the months of stress.

Other Fixer Upper Lessons

At another meeting of our investment club, a man told us about a fixer-upper he had bought years earlier, using credit cards for a down payment. He still hadn't finished it, and it looked like he was going to lose a lot of money in the end. He had no plan, which broke rule number one of the list below:

1. Have a clear plan.

2. Make sure everyone involved understands the plan and agrees to it.

3. Know what the home will sell for before you even make an offer.

4. Subtract ALL the costs (purchase price, selling costs, repairs, loans, other holding costs) AND your desired profit from the expected sales price. This gives you the highest price you can safely offer.

Learning what to do is a start, but learn what not to do too. Learn from our mistakes and those of others. That way, you won't lose money on your fixer upper home.

Steve Gillman writes on all real estate topics. Visit his website for: 1. A photo of a beautiful house he and his wife bought for $17,500. 2. A free book on how to save thousands buying your next home. 3. A free real estate investing course. Visit http://www.HousesUnderFiftyThousand.com

Why You Need a Los Angeles Real Estate Agent

A large number of Americans make the decision to sell their homes. Are you one of those individuals? If you are, then you may be in need of a real estate agent.

Real estate agents are individuals who are trained and experienced in the buying and selling of real estate. They typically have experience with arranging negotiations with potential buyers, arranging open houses, dealing with professional lawyers or accountants, and managing the final sale transaction. If you live in or around the Los Angeles area, you are encouraged to seek assistance from a Los Angeles real estate agent.

Los Angeles real estate agents work like all other real estate agents, expect for the fact that they are familiar with the Los Angeles real estate market. This is an advantage of working with a local real estate agent. If you are in need of a Los Angeles real estate agent, you will have to find an agent that fits your criteria.

When it comes to choosing a Los Angeles real estate agent to do business with, there are a number of important factors that you should consider. These factors often include the experience of a particular agent and the services that they offer. Many individuals mistakenly believe that all real estate agents operate the same way, but many operate under different guidelines. These guidelines could not only determine whether or not your home sells, but also for how much it sells.

One of the first things that you should consider is whether or not the Los Angeles real estate agent of your choice operates as a duel agent. Duel agents are those who work with home buyers and sellers. In addition to placing your home on the market and overseeing its sale, a duel real estate agent would assist those looking to purchasing a home in the area. Working with a duel agent may increase the number of potential buyers for your home.

It is also important to determine whether or not the Los Angeles real estate agent of your choice participates in an MLS Marketing Service. MLS stands for a multiple listing service. There are a number of cities, town, and counties in the United States that run an MLS program. Instead of searching for homes offered by a particular real estate company, potential buyers can view a collection of homes all in one place. Having your home listed with an MSL program is likely to increase the chances of your home selling.

As previously mentioned, a professional real estate agent may also be able to have an impact on the amount of money that your home is sold for. When finding a Los Angeles real estate agent to work with, you are encouraged to determine how much they will list your home for and how they reached that number. Many real estate agents use an appraiser to determine the value of a home and others use competitive pricing.

By taking the time to examine a number of real estate agents, you should be able to find the Los Angeles real estate agent that best fits your needs. Real estate agents are important to the successful sale of a home. That is why it is important to understand all of your options when selecting a Los Angeles real estate agent.

Brad Horn is a writer for 1 percent realtor where you can find a great resource for information regarding Los Angeles Real Estate Agent

Investment Property Overseas: It's Getting Easier to Talk Turkey

Turkey is one of the most established holiday destinations for UK holidaymakers, and with the introduction of new flights and mortgages deals it will become even easier to buy yourself a place in the sun especially for example property for sale in Alanya Turkey.

From September, specific mortgages will be available for buyers looking to invest in Turkey, making the buying process easier and more affordable, particularly for those looking for investment property overseas.

On top of this, low-cost airlines are beginning to run routes into major cities and with every passing day talks to allow Turkey to join the European Union within the next 10-15 years are progressing amid overwhelming public support.

Mediterranean coastal town of Alanya is ideally placed to take advantage of the wave of interest in Turkish property. The international airport at Antalya is just 90 minutes away by car, and tourists keep coming back to the town year after year to enjoy the warm climate, fantastic beaches in the Bay of Antalya and the fine local cuisine.

The old town of Alanya is home to the small harbour with its waterfront full of friendly bars and restaurants, as well as scattered churches, temples and towers. This display of ancient architecture should whet your appetite to visit the 14th Century citadel high above the town. Within the walls you will find mosques Byzantine churches, and narrow twisting alleyways full of colourful boutiques to tempt shoppers in.

Below the citadel are sea-caves and grottoes, including the famous Cave of Dripping Stones with its hugs stalactites and stalagmites, which lead you back towards the nightlife of the harbour. The social scene in Alanya is extremely relaxed, with laid-back bars and unhurried dining in the restaurants.

Whether you are looking for a holiday home, permanent move or and investment property, Estate Master has the property for sale in Alanya which is perfect for your needs. Not only do we have access to the latest projects and agents on the ground in Turkey, but also a wealth of experience in international property to help guide you through the buying process.

And then there are the properties themselves. With resale apartments available at around ?45,000 for a two-bedroom, centrally-located property in superb condition it is hard to look elsewhere. We also have a comprehensive range of new-build and off-plan developments, so your property needs will be completely satisfied.

Europe is growing, and Turkey will be at the forefront of bringing the eastern Mediterranean into the fold. Buy now, and as has been demonstrated in central and eastern Europe, prices will rise quickly. Therefore investment property overseas especially property for sale in Alanya Turkey is a much more realistic goal for many more people in the UK.

This article was provided by Luke Fitzsimmons on behalf of http://www.EstateMasters.co.uk an established overseas property investment agency offering Orlando Real Estate, property in Turkey, Bulgaria, Thailand, Spain, and the Caribbean.

For more information about Turkey and Alanya and to view current properties for sale in Alanya Turkey please visit, http://www.estatemasters.co.uk/pages/content/property-sale-alanya-turkey.html

The Real Estate Closing A Short Course for Home Buyers

Real estate closings are what folklore is all about.

You have probably heard stories, both good and bad, about the real estate closing (or settlement). You have probably heard about the closing that lasted for days, or the one that blew up over something as trivial as a doorknob.

Or perhaps you have heard stories of closings where the sellers are getting a divorce and could not even sit in the room together.

Though it can be fun to hear these stories, keep in mind they are usually 10% fact and 90% fiction. Sure, it's true that not all closings go smoothly. But in reality the overwhelming majority of closings go quite smoothly.

Keep in mind that everyone present at the real estate closing is there for the same reason. They want to complete the transaction so you can buy your new home, or sell your existing home. Despite what you may wonder at times, it's highly unlikely that anyone at the closing has ulterior motives.

At closing, you can expect a substantial number of documents will be signed by the home buyers. Mortgage documentation varies from lender to lender, though they all basically contain the same general documents including the mortgage, the note, HUD Settlement Statement, and a variety of other documents that are signed to protect your interests and the bank's interests.

There will be a title insurance report and policy at the closing, which is further assurance that no one has a claim to the home you are about to buy. The title insurance offers important protection for the home buyers and their lender. Every lender will require title insurance, though the specifics of the policy and the searches will differ from state to state.

Bring photo identification to your real estate closing, and make sure you have a checkbook with plenty of checks. Though you may not have to write one check, there is the possibility that you may have to write several. Last minute adjustments may require you to rewrite those same batch of checks again.

Also during the closing, you will confirm that the mortgage application you filled out contains accurate information, and that your circumstances have not substantially changed since you completed the application (e.g. you changed jobs, etc). Keep in mind, it's always better to advise your mortgage lender about changes in your circumstances before the day of closing.

You should feel comfortable asking questions at closing. Also, take your time to read each document before signing it. Sometimes, you can request that the lender let you come to the closing early to review documents (so the rest of the people in the transaction are not waiting for you to do so).

Remember, as the home buyer you control the closing. Do it at your pace, and only sign when you are comfortable signing the documents. Ask your questions, and remember that everyone in the room wants to see the loan close. Work as a team, and you will be impressed with how smooth the transaction will go.

* Copyright 2006, Brandon Cornett. You may republish this article if you keep the byline and author's note, and also leave the hyperlinks active.

Learn more!
You can learn more about the real estate closing by visiting HomeBuyingInstitute.com, the Internet's largest library of home buying advice. Online at: http://www.homebuyinginstitute.com

Lakefront Property

Lakefront property is land that is on the border of a lake. It is a highly valued type of property, in that there is a limited amount of lakefront, and a large group of people who would like to own it. The pleasure of having a home on the water so you can enjoy this serene beauty is incomparable. And this is one reason why owning lakefront property is so desirable. Any property along the borders of a lake is referred to as lakefront property.

The allure of lakefront property is partially due to the fact that one can go water skiing, fishing, hiking, sailing, boating and canoeing whenever they choose. Also, the scenic beauty offers a calm atmosphere. Lakefront property is considered a valuable asset, which can also be rented out or be used as collateral for a loan. A lakefront property should be looked upon as an investment, providing years of fun and family vacation.

On the other hand, some shortcomings are that many lakefront properties are jointly owned, and jointly utilized. These result in more disputes and clashes than other properties. In case of safety issues, there is always danger associated with drowning, fast boats or diving into shallow water. The lakefront property owners also have to pay higher taxes than other property owners. The maintenance costs are very high, as the lakefront property has to be kept clean. However, when it comes to price, the cost of land next to a lake can be expensive, but the memories that you will be left with will be priceless.

Lakefront Property provides detailed information on Lakefront Property, Michigan Lakefront Property, Lakefront Property For Sale, Wisconsin Lakefront Property and more. Lakefront Property is affiliated with Lake Havasu City.

Choose the Right Realtor

For most people, their home is the biggest investment of their life. Whether you're buying or selling a home, you want to be sure you're maximizing that investment. Choosing the right Realtor can make a big difference in how fast you find or sell a house, the price you pay or receive and the smooth completion of the transaction.

You'll need to do some research to find the one that's right for you. It's not hard, but it will take a little time; however, finding the right match will pay off in the long run. Here are some tips from AHA:

Go with a Pro

The terms agent, broker and Realtor are often used interchangeably. But not all agents or brokers are Realtors. The term Realtor identifies a real estate professional who is a member of the National Association of Realtors and subscribes to its strict code of ethics, which in some cases goes beyond state law.

Experience Counts

Whether you're looking for a Realtor to help you buy or sell a house, you don't want to be part of someone's learning curve. One of the first questions you should ask a potential Realtor is how long they've been licensed and how long they've worked in the area, says Richard Roll, president of AHA.

Get Referrals

Friends, neighbors and co-workers are often good sources for referrals. Get as many details as possible about their buying or selling experience with a particular agent. Were they happy with the service they received? Would they use the Realtor again? You can also check the local yellow pages or search the Internet to scope out your options and find leads . If you're selling, look for sold signs in your neighborhood.

Think Locally

Both buyers and sellers should look for a Realtor who is familiar with the area, notes Roll. Ask what they have sold or listed in the neighborhood recently. If you're buying, a Realtor should be able to provide you with information on the community, the schools, taxes and other facts. If you're selling, you want your agent to be able to talk to prospective buyers about these details.

Use the Right Type of Realtor

Should you use a conventional Realtor or a buyer's broker? Many home buyers don't realize that Realtors legally work for the seller. They're making their commission from the purchase price, so they want to sell a house quickly and for the most money possible.

A buyer's broker, on the other hand, represents the best interests of the buyer, and is an option that's growing in popularity. Buyer agents are bound to keep anything you say to them confidential. Since they are not working for the seller, they are less likely to try to gloss over any problems with a particular home and do their best to make sure you find a home that is right for you. However, you will have to pay the fee for a buyer agent, either an hourly fee or a commission based on the purchase price. The key is to make a better deal on the home that you buy to cover the cost of the assistance the agent provides.

Dual Agents work out of a traditional real estate office both as a traditional agent and a buyer agent. They can take on buyers directly as clients, but since they work in a traditional real estate office, they can also represent the seller. In this situation you need to remember to keep your comments spare and look for the best deal. A dual agent cannot negotiate on the buyer's behalf and cannot recommend specific terms, including a purchase price. If you want a true buyer broker without dual agency, be sure to look for an Exclusive Buyer Broker. Split Agents do the same type of work as a dual agent, in that they can represent the buyer or seller. The main difference is that they never represent both in a transaction. If you hire a split agent as your buyer broker, they are bound to the same rules as an exclusive buyer broker. Everything you say is held in confidence and they work solely and completely in your best interest.

Discount and e-brokers provide even more choices to home buyers and sellers. Both charge less than the typical 6 percent commission for their services. Discount brokers function much like a conventional agent. However, they may not provide the full range of marketing services you would get from a convention agent. Most e-brokers do not have a brick and mortar office, which cuts down their overhead costs, a saving which they pass on to consumers. When using an e-broker, you'll typically do most of the work yourself: checking the MLS listings, making a list of properties you'd like to view, weeding out the houses that aren't a good fit for you. The transaction takes place mostly online; when you have some houses you want to see, you contact the e-broker and they put you in touch with a local agent.

Another option as a buyer is to try to go it alone, searching through the papers and looking for listing signs as you drive through different neighborhoods. This is not recommended for first time buyers, but if you are a hardy soul and want to take on the task, make sure you do your homework on each property before signing anything. Be sure to go through the remaining sections of AHA's Home University 1st Time Buyers course, so you will know how to protect yourself and make a good deal.

Stay in your range

Whether you're buying or selling, choose a Realtor who concentrates on your price range. For example, if you're looking to buy a house in the range of $250,000 to $300,000, you should check the real estate listings in the local paper to see which Realtors are listing houses in that range. A Realtor who focuses on more expensive homes won't be as knowledgeable about what's available in your price range.

Interview a Few Candidates

Once you've done some background work, set up interviews with three or four Realtors you're considering. You might also want to visit open houses to observe the agent in action. Are they familiar with the property, the area, the real estate transaction? Did they show the home in a professional manager? Did they seem enthusiastic and were they easy to communicate with?

Don't Let an Agent Buy Your Listing

If one agent says he or she can sell your house for substantially more money than the other agents quoted you, they're probably telling you what they think you want to hear in order to get your listing. Or, they may not be familiar with the market in your town or neighborhood. Statistics show that properties which are over-priced when they are listed stay on the market longer and sell for less than if they had been properly priced from the start, says AHA's Roll.

Agree on Expectations

If you're selling a house, ask your agent to put together a written marketing plan detailing the steps they will take to sell your home. The agent should offer advice on how to prepare your home for the market and who has enthusiasm for your property. If you're buying a home, make sure you know how often your agent will supply you with listings, how many houses you can expect to see in a week, etc.

Look for a Personality Match

Once you know you've narrowed your search down to qualified professionals with the right expertise, make sure you choose someone you trust and who you like. Regardless of whether you're a buyer or a seller, you'll be spending a lot of time with your Realtor and it should be someone you feel compatible and comfortable with, says Roll.

American Homeowners Association (AHA)?

Richard J. Roll, American Homeowners Association (AHA)? Founder and President, created the AHA in 1994 after speaking to thousands of homeowners and discovering that they were facing similar problems ? high costs, no clout, little knowledge. The AHA helps homeowners and first-time homebuyers obtain the most value for their homes, build equity, avoid common pitfalls, and save $1000s on home improvements and home maintenance. Now the world?s leading homeowner?s savings, benefits and advocacy membership group, since its inception, AHA has served over 1 million homeowners and first-time home buyers and helps them to capture the most value in their homes, and make wiser decisions regarding home buying, selling, financing, maintenance and home improvements.

Home Buying Process Choosing Your Dream Home

Choosing a home can be one of the most important, fun, exciting and nerve-wracking steps in the home buying process. Being such a big decision, you'll want to keep certain things in mind when choosing a home.

Consider Your Home Buying Budget
First and foremost, when choosing a home, start searching only after you know your realistic budget. It would be terrible to fall in love with one or more homes that are outside of your economic means.

Often, home buyers who first look at homes outside their budget range are later dissatisfied when they look at home within their price range. Therefore, you should start your home search within your budget range.

Consider Current and Future Needs
When looking for a house you should consider your current needs and your future needs. For example, consider whether or not you are going to start a family, or whether someone from your family will likely be moving out of the home into their own house or apartment. Consider your commute to work or school, and decide whether or not the commute is something you'll be able to handle on a daily basis.

Conduct Neighborhood Reconnaissance
It's always a good idea to visit a potential home at different times of the day and night to get a feel for the neighborhood. You'll want to see if your potential new home serves as the backstop for a daily stickball or baseball game, or whether or not your home is next door to where the local high school band practices each afternoon.

Walk around the neighborhood to get a good feel for it. Home buyers often find they can learn more from walking around the neighborhood than they would by driving around.

Look for notices of construction or variance requests and try to get an understanding of what, if any, future development will be around your potential new home. Are they expanding the highway so the HOV lane is 10 feet from your backyard?

Talk to the Neighbors
If possible, speak with local residents and find out the inside information on schools, shopping, public services and other factors that you consider important. When it comes to buying a home, information is vital.

Some information can be obtained at the local library. However, information from local residents is likely to be more accurate and current. Of course, you'll need to gather several opinions in order to get a balanced consensus. Never trust the opinion of just one person.

If you have children, you may want to have them assist you in the information gathering. Have them talk to some kids at the local playground or park to find out about the area. Generally speaking, children are less prone to self-censoring or being politically correct, so they may provide you with important information.

Conclusion
At the end of the day, you -- as the home buyer -- have to trust your gut instincts and choose a home that gives you a good feeling the moment you pull up to it. Trust your instinct and emotions during the home buying process, and you'll soon know whether you are viewing just a house, or viewing your new home.

* Copyright 2006, Brandon Cornett. You may republish this article if you keep the byline and author's note, and also leave the hyperlinks active.

Learn more!
You can learn more about the home buying process by visiting HomeBuyingInstitute.com, the Internet's largest library of home buying advice. Online at: http://www.homebuyinginstitute.com

How Home Buying Works

What Happens When You Buy A Home?

On average, people who live in the United States move to new homes about every seven years. That means that every seven years, people just like you are driving around neighborhoods, checking out schools, walking through complete strangers' homes, talking with bankers, and spending large amounts of money (i.e., keeping the economy rolling). The process is a long and sometimes difficult one, but also one that can bring with it a lot of excitement and joy if you find your dream home and can afford it. In this article, we're going to go through the steps involved in a search for the perfect home. For instance, do you really need a real estate agent? Why do you need to be pre-approved by a bank? How do you negotiate the deal? And, how do you keep from getting a lemon?

Money Matters

Probably the most important step, and certainly the step you should take first, is to figure out how much you can afford to spend on a new home. If you haven't set up a budget that shows you how much you're spending on everyday things, now is the time to do it. A good budget will help guide you to the right price range of homes as well as prevent you from spending more than you should on your house. This can happen when the bank says you can afford a certain price range of homes based on your income and debt, but they haven't taken into consideration all of your expensive hobbies, your monthly child care expenses, the fact that your car could die at any moment, or your love of international travel. You probably don't want to have to change your lifestyle in order to buy a more expensive home. By having a handle on your personal budget, you can compare your own numbers with what the bank is willing to lend you to come up with a very manageable mortgage payment that will let you continue the same lifestyle you currently have.

Other Costs

In addition to the mortgage itself, you'll also have to add property tax and insurance to your monthly payment. And, if you don't make at least a 20% downpayment, you'll also have to add Private Mortgage Insurance. Also, don't forget the expense of closing costs. It can eat into the cash you have available for the downpayment. All of these additional costs add up, so make sure you are comfortable with the total amount of your monthly payment and know how much you can put into a downpayment before you begin your search and fall in love with a house you can't really afford.

Need vs. Want Armed with a realistic price range, you can now start the process of finding that perfect home. Here is also where you have to keep a level head and think about what you need versus what you want in a home. Hopefully you can get both, but be prepared to give a little on some things that you don't really need. Keep in mind that finding the perfect home isn't always possible simply because it may not exist. Make a list of things you absolutely need, like three bedrooms, a backyard, a good school district, etc., as well as a list of the things you want, like hardwood floors, skylights, a smart house, or a large foyer. Then prioritize those things. If you find a house that comes close to having all of your NEEDS but doesn't have everything you WANT, give it a second look. By keeping these distinctions in mind, you'll prevent yourself from prematurely ruling out certain houses without seeing them first.

Location is Key

Location, location, location. We've all heard that the most important thing to look for in a home is its location. It's true -- location is very important, even if you don't plan to be there many years. What to look for in the location of your home may also tie in with the list of priorities we discussed in the previous section. For instance, are you looking for someplace close enough to town that you could walk to shops and restaurants, or do you want the seclusion of a more quiet, rural setting? Do you want your kids to be able to walk to school, or is riding the bus okay? Even if some of these things aren't important to you, when it comes time to sell, the location of the home will always have an impact. The other thing to keep in mind about location is that your preferences will change over the years. What's important to you right now, may not be so important in 10 years and vice versa. For example, having no kids might make you ignore looking into the school district the home is in. Later on, if you do have kids, that will be an important consideration and can also mean moving from a home you love in order for your children to attend better schools. But, is it a good location? There are many reasons why a home's location is so important. As you're shopping for your new home, you may want to consider the following:

• Proximity to town: How convenient will quick trips to the grocery store be? Do you care?
• Proximity to schools: Is the school district a good one? Do you like the school your kids would attend? This is important for resale, even if you don't have kids yourself.
• Proximity to work: How long will your commute to work be?
• Proximity to other amenities: If you have kids, will you be driving all over the county to take them to sports events and school functions? Would that bother you?
• Crime rate: Does the area have a high rate of crime compared to other areas of town?
• Tax rate: Do you have to pay both city and county property taxes?
• Zoning: What's going to be built next to you in the future? Or, what restrictions might there be on what you can do in your home. Some home businesses can be affected by zoning issues.
• Restrictive covenants: Does the neighborhood have restrictive covenants, or will you have a chicken farm pop up on the property next to yours? If you want a chicken farm yourself, does the neighborhood allow it?!
• Homeowners association: Is there an active neighborhood organization that will help maintain and improve the area?
• Public transportation: Do you have transportation options? Is that important to you?
• Noise: Go to the property at various times of the day. Is there a lot of noise from traffic? Are you in a flight pattern from the local airport?
• Safety issues: Are you near a nuclear or other potentially dangerous facility? Is there a landfill nearby that lowers the property value?
• Neighbors: Do the neighbors have similar values to yours? Go to the neighborhood at night and on weekends to get a taste of the types of activities that go on.

Realtor-Ready or Not When you begin the search for your home you have three choices:

• You can go it alone and do all of the legwork of finding homes by looking in the newspaper, searching online, or simply asking around.
• You can call a real estate agent and ask them to show you homes.
• Or, you can sign a contract with a buyer's agent.

If you're like most people, you probably weren't even aware of that third option. There are some very fundamental differences in these three options. In the first instance, going it alone, you may miss out on a lot of potentially great properties. You will also find that you're not saving any money because the seller pays the commission to the agent based on a percentage of the sales price. In the next section we'll discuss finding a real estate agent. Real Estate Agent When you call an agent and ask them to show you some properties, you have to remember that they are always working for the seller -- not you -- even if they are not the listing agent! (The listing agent is the agent who was hired by the sellers to list their home.) This ties in with the fact that the agent is paid a commission based on the selling price of the house. (Usually a 5-7% split between both agents involved.) So, the higher the sales price, the more money the agent makes. It may be hard to keep this in mind as you spend time with the agent and feel you know and have a relationship with that person.

Even though you trust the agent, it is very important to never reveal the highest price you are willing to pay, or other concessions you know you would be willing to make. Because the agent represents the seller, he/she must relay this type of information to the seller. The flip side of this is also true. Again because the agent is representing the seller, he/she is not allowed to divulge anything that would tip the scales in your favor -- like why the seller is selling or how low the seller will probably go regarding the selling price. Remember, the agent is bound by contract to work to get the best possible deal for the seller. In the next section, we'll discuss your third option, buyer's agents. Buyer's Agent Your third option, using a buyer's agency, means the agent is working with your best interests (and wallet) in mind. A buyer's agent will work to negotiate the best price, ensure the property is inspected, and make sure you have the representation you need. Things you tell a buyer's agent remain confidential. Using a buyer's agent also means that you will be shown homes that are For Sale By Owner (FSBO). It might seem like using a buyer's agency means you are going to pay more -- but that's not always the case.

Although there are situations where agents charge an hourly fee, or a flat fee for the service, in most situations they are simply working for the same commission that is paid by the seller and split it with the seller's listing agent. While there is still some argument that this method leaves the incentive for a higher sales price, buyer's agencies counter that by pointing out that a $10,000 savings for the buyer only amounts to a $150 difference in commission for the buyer agent. They feel that the benefit of your satisfaction with their service and the word of mouth promotion they will get outweigh the loss of this small amount of money. The type of agreement you sign with a buyer's agent will dictate how the arrangement works. A limited agency agreement may stipulate, specifically, for what the agent will be paid. For instance, the agreement might state that if you find a home on your own, then no commission will be paid. Basically, you can negotiate the terms of the agreement up front so both you and the agent know what to expect and are comfortable with the relationship. Typically, however, if the agent has been otherwise very helpful and attentive, most buyers still pay some type of commission even if the agent was not involved in finding the home they end up purchasing. If you do decide to use a buyer's agent, be sure to read the next section.

Be on the lookout for: If you decide to use a buyer's agent be on the lookout for:

• Dual agency: This means the agent (or agents) are working on both sides of the fence. For example, an agent with XYZ Realty may represent the seller, while another agent (or the same agent) also with XYZ Realty represents the buyer. There are obviously arguments against this arrangement because of conflicts of interest, but nonetheless, it is still a common practice. In the dual agency situation, both the buyer (you) and the seller must be made aware of the arrangement and privileged information can't be shared unless you agree to it.
• Neglecting to specify: If you begin working with an agent and forget to ask for or sign a buyer's agency agreement then the agent automatically represents the seller. In most cases, the agent will bring this up and offer you the choice. If, however, the agent is the listing agent for a house you are interested in then the relationship automatically becomes that of a dual agency.
• Buyers' Agency Clause: One potential problem with signing a buyer's agency agreement may come with a blanket clause stating that the agent gets a commission on any home purchase. If you think it is likely that you will find something without the help of the agent then you may want to specify in the agreement that a home you find on your own (a FSBO, for example) will not require payment of the standard commission.
• In-house Listings: If you're working with a traditional agent (or listing agent) rather than an exclusive buyer's agent, be aware that you might get a little harder sales pitch for their own listings, or the listings held by their brokerage firm simply because they make more money that way.
• Release Clause: Make sure you have a release clause in your buyer's agency agreement just in case you find out you just don't like your agent. This will allow you to sever ties without any future problems. You may need to take advantage of this clause BEFORE you see any houses -- or at least any houses you think you are interested in.
• The Great House Hunt Once you've made the agent decision, you are ready to start house hunting. The agent will search the Multiple Listing Service (MLS) and give you a printout of houses that meet the criteria for your ideal home. If you are using a buyer's agent, you may also get a list of For-Sale-by-Owner (FSBO) homes to look at in addition to the MLS list. Don't forget to do some looking around of your own just in case the agent misses something. This is where your communication with the agent is critical. The agent needs to have a really good idea of what you want in order to make your search as efficient as possible.
• Making an Offer When you've found the house and are ready to make an offer there are several steps you need to take and contracts that need to be drawn up. Here is where your real estate attorney or agent really come in handy. The first thing that happens is your official offer, or bid. When you make the offer, you have to keep in mind that it could easily become a legally binding contract if the seller accepts it. Because of this, you need to make sure the offer includes all of the contingencies, concessions, and other details you need it to cover. In the next section we discuss the items your offer should include. Your Offer Here are some examples of things that should be included your offer:
• Your offered purchase price and the amount of earnest money you are putting down
• Home inspection contingencies: Since the inspection may take place after the offer is accepted, you need to state that the entire deal is contingent upon an acceptable inspection report. If the house is on a well and septic system rather than city water and sewer, these should also be inspected.
• Financing contingencies: You can also include a contingency for getting the mortgage you want (i.e., maximum interest rates, expected terms, etc.)
• Items included in the purchase: This list can include things like major appliances (often the refrigerator goes with the seller), lighting fixtures, shrubbery, basically anything that isn't nailed down and some things that are!
• Title contingencies: Your attorney will do a title search to make sure the property does not have any other legal claims against it and that the seller holds clear title to it.
• Timeline: A deadline for responding so you know when to consider the offer rejected

Conter Offers After your initial offer, the seller may counter with a price just slightly below their asking price. This back and forth dickering can go on a couple of times until you come to an agreement, or someone else steps in and offers the asking price! Your agreement may not be only about the money either, there may be other terms and demands that you have to deal with. Just remember that until you have a signed contract anyone else can step in and make another offer. Professional Inspection Required Since the entire deal could be riding on the professional inspection of the home, don't cut corners when it comes to the house inspection -- and never skip it altogether. Even with new houses, there can be hidden problems that only a professional inspector may find. These inspections cost anywhere from $200-$500 and are well worth it. The types of things the inspector looks at are defects that affect the value of the home, make it unsafe or less livable for whatever reason. Leaky appliances, damp basements, plumbing problems, and other defects are some of the problems that can be turned up by a good inspector.

Major Points of Inspection Here is a list of some of the major areas inspectors will cover:

• Foundation: With either a basement or a crawlspace, is it simply damp or are there outright water problems? Are there any cracks in the walls or floor that might indicate structural problems?
• Construction: Does the house have good quality construction? Is the flashing properly installed to protect wood, are there any rotting problems with the wood, is the roof in good shape or will it need replacing soon, etc.
• Plumbing: Has the plumbing been properly installed? Is it in good shape? Is there any evidence of leaks?
• Heating and cooling systems: Are the units in good shape? Will they need replacing soon? Are they rated for the amount of square footage they are heating?
• Electrical: Do there appear to be any electrical problems or code violations?
• Interior: Are the floors level? Do windows and doors function properly? Do the appliances in the kitchen function properly? Is there any evidence of leaks or mildew in the bathrooms?

Closing the Deal Assuming the inspection turns out well, the financing is going through to your satisfaction, and all other contingencies are met, you're now in the home stretch. Your attorney will do due diligence, which includes a title search to determine if the seller does indeed hold the title to the property and there are no other legal claims against it. This along with the home inspection will complete the due diligence package If everything is clear, then you're ready to sign what may seem like the largest stack of documents you've ever seen! It is at the closing that the title to the property will be transferred to your name, your home owners' insurance (which you have to have already secured) begins coverage of the property, and you are officially committed to your mortgage. It is, unfortunately, also time for you to plunk down your cash for the downpayment and closing costs. You should be able to get a copy of the settlement statement that includes the amount of cash you'll need at closing from your lender a day or two prior to the closing. Knowing these costs is important since you'll need to pay your down payment (and usually your closing costs) with a certified check. You'll be signing lots of papers, including:

• The settlement statement
• The sales contract
• Title insurance
• Homeowners' insurance
• The title or deed to the property
• The down payment and closing costs

There may be additional documents to sign depending on the complexity of the deal, so be prepared and block out appropriate time for everything. More information can be found at http://www.landstarnorth.com/

Quick Tips To Finding A New Rental Home

Before the Journey:

Know what your looking for! Spend 5 minutes and write down a short shopping list of what exactly you need and want. Are you looking for hardwood floors, dishwasher, Washer/Dryer, Fireplace? Try and separate your list from needs and wants. Cover all your needs first. Anything left over would be an added bonus.

Be prepared!

You?ll first view the unit. If you want to be accepted into a particular unit, why not look your best? Bring your own pen, Resume, Credit Check, Pay Stubs or Tax Returns, References and proper identification ready. Some units also require your license plate number. Most people don?t come to a viewing with that much information. The landlord or property manager will know you?re a dedicated and responsible individual by your actions.

Your References!

So many times this office has contacted references that were caught off guard. When you add someone as you reference, make sure they know they?re your references!

On the Hunt:

Daytime! Everyone is different. However, we?ve had the most success with showing rental units during the daylight. In the daylight you?ll have a better understanding of the defects and what exactly the place has to offer.

The Tour!

Do you like the place? Why not see what kind of water pressure it has. How many electrical outlets are there? Open up the closet and just see if you have enough space for your items. How?s the Neighbors! Don?t be afraid to knock on the doors and meet them. You?ll want to make a friend but also make note of important character factors. If you like to enjoy having a quiet home. Ask the landlord if they have had any problems with regards to noise volume.

Will It Fit?

You might have a larger sized couch or kitchen table. When your in your possible place, you should see if your kitchen table will fit in the appropriate area.

Close the Deal:

Be prepared! We already talked about being prepared. But just as a re-cap. Bring your own pen, Resume, Credit Check, Pay Stubs or Tax Returns, References and proper identification ready. Some units also require your license plate number.

Your Lease!

What are the utilites included and what are YOU responsible for? Can you have your cat, dog, bird, fish? What is the security deposit? And will there be mandatory charges such as carpet cleaning when you decided to move?

We hope our basic list has helped guide you through the basics of renting a home, apartment or vacation rental. Remember to try and view as many places as possible. You?ll have a good idea of what your money will get you with the more units you view. Happy hunting!

Shane Toews is a Licensed Realtor who helps others to educate themselves on current real estate issues. He also provides assistance on how to locate quality homes, apartments or vacation rentals in Canada's Fraser Valley area. Visit his website RentFraserValley.com for more information on Canada's Fraser Valley Real Estate Market

Mallorca Properties

Mallorca is Europe's most popular tourist destination with thousands of visitors thronging this heaven on earth throughout the year. Mallorca possesses the bewitching locales and picturesque landscapes, and innumerable treasures of natural beauty. You are sure to fall for its good weather, cosmopolitan lifestyle, close proximity to the rest of Europe, cultural richness, and a low crime rate. With these attractive features Mallorca not only represents a dream location for holidays but also an ideal overseas property investment. We at www.cala-dor.com, offer Mallorca property for sale in many of these peaceful areas of the island. With your preference of location, we provide excellent guidance to suitable properties from our detailed database profiles to meet every requirement and budget. You can avail the low interest rates and favorable economic conditions to buy properties of your dreams.

With our Mallorca Properties team we will guide you in finding your dream property pretty easily. We have professional advisors and real estate agents on our system, and we are fully equipped with the best resources to provide you with that perfect Property.We offer you Mallorca property from a wide range of beautiful, top value properties including villas, townhouses and apartments. You have our assurance that the purchased properties are free from legal problems and are priced in an optimum manner. Our solutions are tailor made according to your budget and requirements.

Customer satisfaction is our motto and our main aim is to help buyers find licensed property. We offer complete guidance right from the legal advising to the various financial aspects as we have Mallorca property agents at our disposal who have experience in dealing with property in Mallorca. We at, www.cala-dor.com, familiarize you with the legal aspects, the available mortgages for property loan, the new Mallorca property development plans, property resale and the best time to buy property in Mallorca; before purchasing property in Mallorca. In case if any type of property interests you, please contact us directly for further information on 0034 971 867700.

By Toni Fuster
Mallorca Properties

Understanding The Real Estate Inflation Game

In the Fraser Valley?s rapidly expanding real estate market there are several elements to consider. You are probably aware of the concept of inflation. But just to recap, inflation means that the increasing cost of buying a service or a product (tangible or intangible). This decreases your purchasing power. For example, an item that cost perhaps 10 dollars ten years ago, now cost 50. People in today?s world that are on fixed incomes are very aware of their purchasing power of the Fraser Valley rental dollar.

This factor is very important to consider when renting your new home, apartment or townhouse in the lower mainland. The inflation rate in Canada varies at different times of the year and in different regions across the country. At one time Canada had what?s known as ?double digit inflation. However, currently in the Abbotsford, Burnaby, Coquitlam, Surrey, Langley, New West and Richmond area, inflation has stayed relatively low.

Naturally, the appreciation of property value over time includes inflation factors. And historically, land appreciation value for residential homes has been between 4 and 5 percent greater then inflation rate. When you buy a home in the Fraser valley your buying a home with inflated dollars. That is, you are probably getting more money now in terms of salary increases to pay off lesser-value money when you took out that original mortgage. So your beating the system!

Renting in the Fraser Valley can often be a disadvantage given our appreciating real estate in Abbotsford and Vancouver. In fact Every city across the Fraser Valley has been hit by the real estate boom and has experienced some level of Appreciation. This includes Richmond real estate, Burnaby, Coquitlam, New West, White Rock, Mission, Maple Ridge, and all other major cities across the lower mainland. Appreciating simply means the increase in value of the property over time. It is the growth in value of your original capital investment.

The national average of appreciation with real estate in the Fraser Valley is 5%. However, real estate in the lower mainland has seen gains as much as 25%. It?s important to understand that trends will go up and down. But with the 2010 Olympics coming up, interested rates staying under 10% and our economy the way it is, you?ll notice the real estate market will continue to clime. The ?rent BC? option has rapidly changed into a wealth building endeavor for any middle class investor.

Shane Toews is a Licenced Realtor who helps others to educate themselves on current real estate issues. He also provides assistance on how to locate quality homes, apartments or vacation rentals in Canada's Fraser Valley area. Visit his website RentFraserValley.com for more information on Canada's Fraser Valley Real Estate Market

Buying a Home in Glendale Arizona: On the Road to Success

If you are looking to buy your first home in the Phoenix metropolitan area, you may want to consider Glendale. It is located west of Phoenix and offers easy access to the city, as well as to the many businesses.

Glendale is one of the most affordable home communities throughout the Valley. For first time buyers, this community gives you options of getting more home for your money. Of course, buying your first home is a big first step, and you can take some steps to avoid those mistakes of home buying.

Not Being Prepared

Most first time buyers think the first step is going out and looking for a home. Actually, the first step is working with a mortgage agent. A big part of your home purchase is getting a mortgage, and your mortgage agent is best qualified to help you through the process. A good agent can show you where you may experience potential problems, take a good look at your credit, and give you some suggestions of the price range for your potential home.

Focusing on the Long Term

When you look for a home in Glendale, be careful not to focus too far in the future. It's hard to predict where you'll be or what you'll be doing ten or fifteen years from now. If you are focused too far in the future, you may buy a larger home than you really need. Focus on your needs for the next five to seven years, how close do you need to be to work, how many bedrooms are ideal, how big of a home do you want.

Chances are you'll be looking for a new home in five to seven years, and you'll revise your home search based on your needs at that time.

Waiting Too Long to Buy

Taking that first step to buy a home is a huge decision, and at times it can be a little frightening. Maybe you've heard rumors of a real estate bubble, and you think if you wait it out that bubble will collapse and you'll find a house at a better price. Actually, most experts have already said that the real estate collapse is not going to happen. You aren't going to see home prices fall in the near future. In fact, most likely home prices will continue to increase, just at a slightly less pronounced rate than the last couple of years.

If you decide to wait too long, you may find that you can't afford the increased prices. And, the longer you stay in your rental property, the more money you give to your landlord that you could be investing that money in yourself.

Looking for Perfection

First time buyers see themselves living in a home for years, and want to find the home that is perfect for them. Unfortunately, there is no such house. All homes will have a few problems, some that are easier to fix than others, some that you just have to learn to live with. When you look for a home in Glendale, be prepared to walk in with an open mind. You'll find that you have a lot more options when you do.

Do a little preparation in advance and you'll find the perfect Glendale home for you. You home is an important investment in your future, the right home will let you begin upon the path of accumulating wealth, it's a good road to be on.

Reg Gustin is a senior loan officer with Sun American Mortgage and specializes in helping families and their financial lending needs.

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