Posted by admin | Real Estate | Posted on May 31st, 2007
If you are considering purchasing or selling a home, condo or any other type of real estate, you will most likely need the services of a real estate appraiser. An appraiser performs an assessment of properties and other types of real estate to help establish its value. While there are several methods appraisers use to establish the value of real estate (e.g. cost method, income method, and comparison method), for residential properties, the comparison method (also known as market value) is the most common approach. The appraiser’s job is to provide an opinion about the value of a property based on its “highest and best use.” If you are financing the purchase of a property, your lender will normally require an appraisal to make sure that the property is really worth the amount loaned.
The real estate appraiser is tasked with carrying out a completely objective assessment of a property and will normally provide a written evaluation report. This is accomplished by a physical inspection of the property, as well as a comparison to other similar properties for which the value is already established. To make a determination about value, the appraiser gathers details such as the size of a property, size of the lot, location, condition, best use of the property, amenities, etc.
After this initial inspection, the appraiser may scout the neighborhood to compare the property with other similar properties in the neighborhood by age, size, price range, etc. The appraiser then gathers additional data from several sources such as the local Multiple Listing Services (MLS), which provides information on current and recent comparable sales. The appraiser also gathers information from his/her own past experience in the local market. All of these sources of information are taken into consideration while writing the appraisal report, which will provide an estimate about the value of a property.
There are many reasons to use the services of a qualified appraiser. When purchasing real estate, an appraisal provides you with a negotiating tool and helps ensure that the price you are paying is appropriate. If you are selling your property, the appraisal will help you determine an appropriate price range. Besides real estate and mortgage transactions, you may need to order an appraisal to lower the tax burden (assuming the value is really lower than the value established by taxing authorities), to establish the replacement cost of insurance, to settle an estate, etc. An appraiser only gives an estimate of the value of the property. A real estate appraiser is not to be confused with a home inspector.
If you are considering buying or selling a home, condo or any other type of real estate, you can use the services of a qualified real estate appraiser who will provide an estimate of the fair market value of your property.
Posted by admin | Non Fiction | Posted on May 30th, 2007
Orlando is one of the most popular cities in United States and boasts of great weather, pristine lakes and natural beauty. Tourism occupies a significant portion of the economy of Orlando and is mainly responsible for making it a hot favorite spot for relocation. Other reasons include the growth in job opportunities and its excellent infrastructure. The real estate industry of Orlando is flourishing like never before.
Real estate investments promise maximum profits more than any other form of investment. However, it is imperative for property owners to ensure that they are dealing with the right people and that the property is not a disputed property. Transparency in a deal is crucial to enjoy a hassle-free buying experience. While purchasing any property, both the seller and the buyer enter a mutually agreeable contract commonly referred to as the real estate contract. It is one of the most important elements of property deals. Unfortunately, many people fail to realize its significance.
Since the real estate contracts in Orlando are governed by common law contract principles, individuals must understand some of the key terms pertaining to this branch of law. In most states in America, real estate agents and lawyers used standard contracts that are usually drafted in the form of an offer. Generally, the buyer (offeror) signs it and it is not binding until the seller accepts it.
Thus, mutual assent(or a meeting of the minds) is necessary to indicate that both parties have mutually agreed to enter the contract. In case the seller (offeree) agrees to the exact terms included in the offer, then it indicates acceptance. A counter offer is made if the seller sets a particular time limit within which the deal should be closed. Mutual agreement is the core of any real estate contract. If the conditions specified in the offer are not fulfilled, then the possibility of entering a contract is ruled out.
A real estate contract in Orlando is signed between the two parties, the buyer and seller, for the sale, purchase, exchange or other conveyance of real estate. Typically, real estate contracts are bilateral contracts (two-way agreement), wherein the seller agrees to sell a property and the buyer agrees to buy the same. The Statute of Frauds makes it mandatory for all real estate contracts to be in writing to be enforceable in Orlando.
Some of the legal requirements of a real estate contract are as follows:
Identify the parties: Full names of both the parties are specified in the contract. The parties, buyer(s) and seller(s), are referred to as principals in order to differentiate them from the real agents.
Identify the real estate (property): Proper address and legal description of the property must be clearly indicated to identify it.
Identify the purchase price: The contract must include the amount of the sales price or a reasonably ascertainable figure.
Include signatures: For the contract to be enforceable, it must bear the signatures of both parties.
Include Consideration: Consideration is a binding agent in a contract and refers to the value bargained for in exchange of the property.
Must Involve Competent parties: The contract can be drawn between competent parties usually defined as those with a legal age and sound mind. For instance, mentally impaired, drugged persons, minors cannot enter a contract.
All real estate contracts in Orlando must essentially have a legal purpose.
Posted by admin | Real Estate | Posted on May 27th, 2007
How do HomeGain, Realtor.com, Service Magic and other companies like this make money? These companies are called lead generation companies. They spend vast amounts of money advertising on TV, the Internet, radio, and in print so that you’ll go to their website to find information about real estate. When you click on a property and request information the company then either sells the lead at a fee ranging from $20-$50 for an unqualified lead or up to a 35% referral fee for leads that are more valuable.
What does the company do for the fee charged? The answer might be pretty surprising. They don’t do anything, but forward the lead to a service provider. Yep, that’s right. You can search the MLS on any number of free websites so the website they provide is little more than a mechanism to get your information. Some people think agents, contractors, or other service providers are overpaid for what they do. Take a look at these companies and ask yourself if forwarding an email is worth $1500 (That’s the commission split they would receive on the sale of a $150,000 home.).
Who pays the fees that these companies charge? For the most part, the Realtor, mortgage broker or other service provider pays for these leads. The laws of business provide that you can’t get something for nothing. This is very true. So by adding no value to the transaction and taking up to 35% of the payment for service, the middle-man is taking value from both the consumer and the service provider.
Why is this bad for consumers? In real estate like many other service industries, the best Realtors obtain their business through referrals. The weaker, newer, less experienced agents typically buy leads from sources such as these. The next time you visit a site like these lead generators, think twice about giving them your information and go directly to the source. You’ll cut out the middle-man and get a better agent for your hard earned dollar.