Real Estate Investment Tips

All licensed real estate agents start out in school; most real estate agents spend months taking detailed, intense courses on real estate laws, proper business practices, and real estate information, laws and programs specifically related to your own state.  After studying for weeks and passing a rigorous, detailed examination agents receive a license from the state to practice the business of real estate in their state.  It is usually at this point that the real estate agent newbies are sent out into the real world, sometimes to start up their own agencies but usually to another real estate agency at least to start out.  As with all jobs, it is difficult to start out in a particular trade, especially one as intimidating as sales.  The livelihood of a real estate agent depends on their ability to close sales, and there are numerous different tactics to use when an agent goes about doing this, but it is important to remain ethical and legal in every single aspect.

That's what Continuing Education courses are courses that are designed to give licensed agents the opportunity to expand upon their knowledge and gain greater skills in their trade.  There are a certain, minimal level courses that the state usually requires of an agent to renew their license to practice real estate every year.  Most of these courses are brush up courses, refreshing all of the knowledge and particulars of state laws as well as a little more of an introduction to good business practices, sales tips, with a little more focus on the actual sales presentation than the pre licensing courses.  A list of the required continuing education courses can be obtained from the particular state in which an agent is licensed.

In addition to basic real estate continuing education courses, there are some special designation courses that can be taken to enhance an agent's skill and giving them even more prestige in the real estate world.  Such special designations such as CIPS (Certified International Property Specialist), CRS (Council of Residential Specialists), ABR (Accredited Buyer Representative), GRI (Graduate Realtor Institute) are all designations that would appear on a billboard, business card, or yellow pages ad.  If you saw Nancy Gordon, Licensed Real Estate Agent, ABR in a yellow pages ad you could feel rest assured knowing that she had taken additional, more intensive courses and has had more experience dealing in a particular type of property business deal. 

As an agent who has been in the real estate business for a while looking to change firms or even to obtain a broker's license and open real estate firm of their own may wish to take more intensive continuing education courses, as well as obtaining a special designation or two.  Many of the larger, more established firms require that new agents obtain a college degree in real estate, so taking a few real estate business courses at the local university or community college might not be a bad idea, either.

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It happens more often than you might think. A person in a building company's truck knocks on a homeowner's door. The person tells the home owner that they were driving by, and they noticed some serious damage to the shingles on the roof. Have they had their roof inspected lately? Are they aware that this could cause problems down the road? The contractor, it just so happens, has the equipment in his truck, and he would be glad to start work immediately for a down payment.

To anyone paying close attention, this already sounds like a scam.

But even if the home owner misses these first warning signs, he discovers it's a scam a few days later. That is, after he's paid up, and the contractor has disappeared without doing the work, or announced that it will cost twice as much as he thought and he needs more money before he can continue.

Home repair scams are fairly common, experts say, and new homeowners and the elderly are particularly susceptible. It might seem shocking that anyone would hand money to a person off the street with no guarantees, but many inexperienced owners are panicked at the thought of home repair, and they will trust anyone in a tool belt who tells them there's a problem. No questions asked- unfortunately.

What is the simplest way to tell the difference between a legitimate home contractor and a scam artist? The main rule is, if they come looking for you, consider them suspect. Legitimate contractors are busy- running a real business- and they don't go knocking on doors for jobs, not even if your roof IS dangerously close to serious damage. If someone is knocking on doors and soliciting jobs, chances are they have more than enough time on their hands to do so, because they're not actually doing any of the jobs.

Of course, that doesn't mean just because you look a contractor up in the phone book, you're perfectly safe. Do your research. You're investing a lot into choosing your contractor, including your money, your time, and your home. Don't assume that just because a contractor holds a license that they're a good one, either. Becoming a licensed contractor is hardly more than a matter of paperwork, and scam artists can become licensed just as easily as anyone else. The best way to find a good contract worker is by asking for recommendations from neighbors, coworkers, or friends who have had good work done. Ask them if they would hire the person again and what kinds of problems they might have encountered. Check with the Better Business Bureau and any local business registry offices. Ensure that the contractor is indeed registered as a business, and look into any feedback they may have received from previous customers.

Home repair can be a scary and expensive process. When you're faced with needed repairs, make sure you've got a professional on your side. It costs nothing to be careful, and it could save you a great deal.

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When it comes time to sell your home, settling on your list price is one of the most important decisions you will make. All sellers want to command the highest price possible, while all buyers, of course, want to buy a house for the lowest amount they can. Finding the price in between that is just right for your home, its assets, and its area, is a process that involves many factors.

The first factor in pricing your home is, naturally enough, your home itself. The desirability of the property will be the deciding factor in what price to set. It's an excellent idea to get a home inspector on the premises to check out all aspects of the house, including the roof, electrical systems, and plumbing. Get a clean bill of health for your house if possible, and seriously consider making any needed repairs. Buyers today want model-home houses. In fact, many buyers will not move in to a property if there is even a small amount of work that needs to be done. In a seller's market, you may be able to get away with selling a house that needs small improvements, but it will lower your list price.

Call in local agents to help estimate the true market value of your home. It's best to get more than one opinion on this matter. Talk to appraisers and agents who work in your area and are familiar with the neighborhood, as they will be able to factor in the prices of surrounding properties, as well as the desirability of the area. However, don't spend money on getting a formal market appraisal. Local real estate agents will have a better idea of the area and be able to price your house according to current market trends. Don't be afraid to point out certain features or traits of your home that may justify pricing it slightly higher. For example, if you have a bay window, or a carpeted basement that provides more potential living space, you have a slight edge over similar houses, and those factors should be taken into account. A good realtor will be able to take all of these factors into account when setting your list price.

Once you have settled on a fair price for your property, it's time to set your actual price tag. It's expected that most sellers will initially price their home at about 15 percent above its actual market value. The selling process will involve bargaining, and depending on the condition of the home, any possible repairs, and the amount of potential buyers, the amount it sells for will more than likely be less than the price for which you have it listed. So aim a little high and be prepared to receive various offers on your home based off your initial price. If you've done your appraising and calculated correctly, when the final paperwork is signed you should be receiving an amount very close to your home's actual worth. 

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In the recipe known as the American Dream, it's one of the main ingredients:  Owning your own home.  With the real estate market of America in constant flux, it's not as simple as it sounds to obtain.  For those who are just starting out in the credit world, newly graduated with jobs, degrees, kids, or credit cards, the steps towards making this milestone purchase are getting steeper and steeper.  The effects can be seen across the country, as more Americans are settling for tract housing, condos, or living in rentals much longer than ever before.  Today many 30 and 40 year olds, especially single, unmarried ones, are still living in rental property because the cost of buying a home is 'just too much.'  Although the claim is often made that a good mortgage won't cost you much more per month than paying rent, some renters argue that theory.  And they're right, in a way:  the cost of home ownership far exceeds simply paying the mortgage.  What about all of those day-to-day repairs, both little (leaky faucets) and big (leaky roofs)? 

Someone living in a rental property, whether it's a home or an apartment, can reasonably expect their landlord to take care of repairs in a timely fashion.  If they don't, per laws in place in every state, the tenant has the right to vacate the property.  The cost of property repairs falls strictly on the landlord, not the tenant, provided the repairs were not brought about by any act of negligence or otherwise on the tenant's part.  So goes the rule of rental:  You pay your rent, and you keep things in good shape, and if they break, it's not your job to fix them.

This is a convenience that is hard to ignore.  Having someone mow your lawn, take care of your furnace, and patch your roof… well, it saves money.  And work.  But even with the massive costs and inconvenience that can come from owning a home, it remains an indispensable fact of life for most Americans.  They want somewhere to call their own.  Even a leaky, expensive roof that you have to pay for is better than not owning a roof at all.

In spite of the costs involved, the repairs, the down payments, and the mortgages that can last for years, this longing for ownership makes a great deal of financial sense.  A homeowner in today's market has far more pull than those whose biggest financial asset is their car.  Owning a home gives you property value, something to borrow against, and something to leave to your children for the future.  As prices of real estate skyrocket across the country, and show no signs of slowing, even a modest bungalow in a small town is an investment that you can be relatively at peace with making.  After all, human beings are always going to need a roof over their heads; ideally, one they can call their own

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Many people today are intrigued with the idea of owning investment real estate. It sound like an awfully simple way to make money: Owning property, renting it out to tenants, and collecting rent payments. The truth is, it can be an extremely profitable venture, or it can be a train wreck.

An individual who is purchasing rental property for the purposes of income has a long road ahead of him, and he should be involved every step of the way to ensure that his investment turns out in the end.

The first step in figuring out if you're ready to own investment property is to ask yourself how much money you have to pay up front. Buying your own home can require costly down payments, but investment properties generally require that plus much more. You may very well have to come up with not only the down payment on the property, but also the cash needed to bring the place up to code and rental standards. There are different standards for a rental property than for a private home. Unless the place you purchase has been a rental before, expect to be shelling out quite a bit of cash upfront.

Keep in mind, there are loans available for those buying rental properties. But rates and terms for investment real estate loans are harsher than those for private homes, since lenders believe there is not as much emotional investment for the borrower, and so their loan is more at risk. Explore your options and check into a few different lenders, trying to get the best loan rates you can. It may not be easy, but if you are not planning to back down from the task, you will not be wasting your time.

Once you manage to get your property renovated and you're ready to go, you'll face the issue of finding good tenants through the screening process. You can certainly hire a property manager to help you out here, as well as to deal with repairs that come up later, but most small landlords are much better off doing this process themselves. Screen tenants carefully and don't let emotional involvement get in the way. Set some standards regarding credit reports and income, and stick to them regardless of who walks in your door.

Don't expect to make a profit at first. Your rate of return is going to be small, even if you have done the math and figured out your rent cost as carefully as possible. Also prepare yourself for unexpected repairs which are going to bring down your profit margin and require some work on your part. The first three years of a rental property are, typically, the shakiest. If you're committed to being a landlord, you're not afraid to roll up your sleeves, and if you're planning to stick with it, you can reasonably expect a decent profit at some point in the future.

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As with any other possession, whether it's clothing or cars, there are trends in real estate that come and go. These trends eventually make their way down through the levels of home ownership, and mark a property as "clearly hot" or "clearly not." If you're planning on selling or buying, it might be wise to take a look at current "out" trends such as these.

First of all, swimming pools? Not such a big deal anymore. More home buyers today are thrilled with a huge backyard, and not as thrilled with the fact that it's taken up by a huge tiled pool. Although once the symbol of opulent luxury, a swimming pool in the backyard nowadays tends to label your property. It makes it suitable for a certain type of buyer- and the right buyer may very well pay big bucks for it- but it can take away from the general market appeal of a home. Today's family wants a big yard with lots of potential for landscaping, jungle gyms, or gardens; and an inset swimming pool removes that potential.

Another trend that is suddenly disappearing from the market is the age-old trend of bay windows. These high-maintenance windows, while beautiful from both inside and out, can be a negative on today's market. That doesn't mean having one will lower your property value, but if you're considering installing one, you might want to think again. The more glass in a window, the more likely it is to break, be broken into, and leak warm air during the cold months. If you have a bay window, make sure it's properly sealed and has good insulation, and try to plate it with the heaviest glass you can afford.

Another "trend" on its way out, although it's so old it can hardly be called a trend, is carpeting. Home owners today are conscious of the fact that carpet styles come and go, but wood floors will always remain. Carpeted rooms require more maintenance than wood floors, and cost more money; a carpet wears out and goes out of style much more quickly than a wood floor. If your house has carpet over floors that you'd just as soon not expose, installing wood floors for the sake of higher property value can be a tremendous expense. In that case, the shrewd home seller may simply choose to re-carpet. If you go this direction, make sure to pick a durable carpet that wears well and doesn't adhere to any particular style.

Whether you're buying, selling, or building, the best advice is to keep an eye open for what's popular today, and use those trends as starting points when it comes to making decisions about your house. Each property is different, and each home owner has his own sense of style. In the end, regardless of trends, it all boils down to what works for the home, as well as for the people living inside it.

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Many home sellers who wish to expose their property to a larger market make the decision to hold an open house, and schedule a date and time during which they invite people to come and explore the property. Is it worthwhile for potential sellers to go through the hassle of an open house? Is it more risk than reward?

Of course, plenty of homes are sold through private showings, scheduled only between the home owner, the realtor, and the buyer. But the publicity of a well-advertised open house can bring in a larger sphere of interested people who might not have been exposed to the property otherwise.

Many people in the market to buy a home can't leave work or family to go house-hunting during the week; it can be difficult to find a time that works for both the buyer and the owner. Open houses make this simple. They are usually held on weekends, and all parties have plenty of advance notice. Not to mention the fact that a buyer at a well-prepared open house sees a much more pleasing display than one who is led through the house at 9:30 on a Monday morning.

However, all of this can come at a price. The number one concern among home sellers regarding open houses is security, for their possessions as well as their property. A seller who is already packing up to move might be very amenable to the idea of an open walkthrough, but one who is still living in the home would have quite a lot of preparation ahead. Things can, and do, get broken or stolen at open houses. It takes a great deal of time to organize a household's worth of belongings in such a way that several strangers poking through the house at once, trying to see how big the closets are, will not disturb them.

There is another security factor. Home owners are often just plain bothered by the idea of people seeing what they own and getting a chance to essentially case the joint. This is another reason why, if the owner is unable to store their property elsewhere during the open house, it may not be worth the risk.

Those who feel that an open house would be a good move in their market simply need to act smart. Request the help of your realtor, friends, and family, and pack away belongings. Provide adequate supervision in every room during the open house. If you would rather organize the open house into a series of guided tours, with one starting every fifteen minutes, this is a possibility (although you might lose one or two buyers who would prefer to wander free).

Basically, if your house doesn't have a lot of curb appeal and is short on offers, it might be worth your time to let potential buyers get a free peek inside. It can be a secure and helpful step in the selling process, provided you take the time to prepare for it.

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There are many brave buyers are willing to purchase a home that needs renovation or repair. But there's one problem that will most likely send them all screaming. As the seller, it's in your best interests to tackle this problem head-on before ever considering putting your home on the market. The problem is mold.

We're not talking about the normal mildew smell of a damp basement, although that will probably scare buyers, too, and should be remedied. We're talking about what is called toxic black mold, which sounds awfully scary, and it can be, especially to the highly allergic... or to your wallet.

There are many species of toxic black mold. All of them require a moist area to begin growth, such as a leaky pipe; and a fairly warm humid environment. Once they start, they can spread, causing poisoning symptoms in humans and destroying your home from the inside out. So how do you know if you've got mold?

 Check your home for leaks. If you've got a damp basement, dripping pipes, or a leaky roof, these are the first places to start. If you live in an area with high humidity, you should always be on the lookout. Watch for things like cracked, peeling paint, which indicates moisture on the walls; warped wood; black growths in the bathroom; and obvious mold growth in basements or attics. If you're finding it, start checking inside your cabinets, behind your floor baseboards, and in basements, crawl spaces, and wall cavities.

If you've got mold, you have the choice of calling in a professional to see what kind it is. If anyone in the household is experiencing allergic reactions, headaches, dizziness, or other adverse effects, it may be worth checking out mold growth to track down and verify that it is the source of the problem. Regardless of what you've got, however, you will have to clean it up to put your home on the market. Buyers today are all too aware of this problem, and the first signs of it will probably send them all headed for the door.

So it's time for clean-up. Remove all mold-infested items from the home, sealed in plastic bags, and wash mold off the walls and floor. Wear an oxygen mask during the process; keep windows open, and try not to inhabit the home during this time. It's a big process. We're not going to lie to you. Do it once, do it right, and get it done, and it should not take you more than one or two days to restore your home to mold-free condition.

Keep it that way. Remove the moisture sources that caused the mold. Replace leaky pipes, waterproof basements, and place dehumidifiers in damp rooms. Whether you're doing it for your family or for the potential buyers, it is essential to ensure that the mold doesn't return. Trust us: It's necessary.

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First impressions make a big difference, and selling your home is no exception. Sometimes big repairs and major renovations just aren't in the budget, but when it comes time to sell your home, you naturally want to get the best price possible. There are a few quick, affordable things you can do around your house to kick up your property value and leave potential buyers with a good feeling. And that good feeling might just lead to a good sale.

The first thing you should do is the first thing potential buyers will see. Paint your front door. Even if the door is in good shape, it's worthwhile to add a splash of color to make your home stand out- both on the street and in the buyer's memories. A great shade of barn red or forest green will add some interest and draw the eye towards the door, which is, after all, the center of your home. Make sure to choose a warm, inviting color, and paint neatly, wiping up any spills. A gallon of good outdoor paint is cheap, and the effect will be worth it.

Wash your windows. So many sellers don't think of this one, but it can possibly make the biggest impact out of anything you will do to prepare your home for the market. Everyone loves natural light, and the build-up on windows occurs so gradually that most people don't even realize they are losing much of the light they could be getting. Getting them clean can be a bit of a pain if you have a house with multiple stories, but trust us, it's worth it. Call a professional if necessary. Just get the windows clean, inside and out, and remove and wash any curtains or blinds. If you haven't done this in awhile, you might feel as though you've knocked out a wall when you see the amount of light that comes pouring in. And potential buyers will see it too.

Finally (and this one is easy), put up some house numbers. This is a tiny trick that helps stamp your house into the buyers' minds, and creates a lasting impression. Go to the hardware store, and buy some brass or iron numbers that match your house's decor. Attach them to the porch, the front door, or wherever seems appropriate. Just make sure they're bright, tasteful, and noticeable. Potential buyers will see the numbers and imagine it as their address, which opens the door to them feeling at home in your house. Making your house numbers noticeable will, at the very least, keep your property from fading into a generic list of houses that the buyers might have seen already.

Of course, property value is determined by much larger factors than we've discussed here. But if you're hovering on the edge of receiving a certain price, a few extra steps to help nudge you up further can't hurt. And might just pay off.

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It's too large to be practical. It's out of place among the things around it. It's made for a small cost and sold for a big one. It looks a lot like every other one ever made. And it's popping up everywhere.

It's not a retail chain, a mega mall, or a fast food restaurant. It's a McMansion.

The term "McMansion" came into use in America in the 1980's, after these ubiquitous oversized houses began popping up in neighborhoods across the nation. What, exactly, is a McMansion? Also referred to, in the same vein of sarcasm, as a tract mansion or a starter castle, McMansions are a style of oversized house, built with mass-produced quality, usually adorned with a cookie-cutter style of "traditional" features such as gates, gables, and wrap-around porches. In spite of the variance of the individual features, all McMansions have a tendency to look alike, which helps spawn the derogatory attitude they tend to inspire. People also dislike them because of the fact that they are built hastily and haphazardly, with no real regard for the environment, the lay of the land, individual tastes, or, most importantly, the historic value of a particular neighborhood.

McMansions- the elegant estate in a to-go box- are popping up in neighborhoods all over America. And in some areas, it's becoming a real problem.

With the size of American homes increasing in alarming rates over the past few years, people have to realize that all of these big houses must be going somewhere. Although in the early days there were often separate communities for this type of housing- often on the edge of a town, and featuring a gate, a playground, and a manufactured stream- nowadays there is less space and a McMansion can very well be plopped down in the middle of any neighborhood where land is available.

Some cities are fighting back. Suburbs around Detroit, MI and Dallas, TX are fighting the tract mansion boom particularly hard. Citizens in those cities, and in other cities whose historic neighborhoods are being affected by the building of these ever-larger homes, are lobbying the government to pass regulations preventing the tearing down of smaller, older houses in order to build something so out of keeping with the rest of the neighborhood.

In the meantime, as more of these ubiquitous mansions continue to appear, neighborhoods are changing face, lots are becoming too crowded, and old cities are losing their charm. The more McMansions that are built, the more alike they become- after all, there's only so many ways to arrange a porch and three gables. It might have been okay when it was all within one gated community. But now, there's a problem: they're spreading.

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Making money in real estate is often perceived as a get rich quick scheme, and it's really not that way.  Just like any other investment, real estate is an investment that must not be entered into lightly.  No matter the amount of money you sink into your real estate endeavors, never forget that you could lose it just as easily as you invested it, just as with any other investment.

The most common means of investing in real estate is through rental properties.  Many people will buy properties, fix them up (or not, lots of times) and then turn around and lease them to others in exchange for a monthly rent.  It is important to keep in mind when leasing properties that if people could afford to pay $1100 or $1200 a month for their housing expenses can take out a mortgage, decreasing the need for rental properties.  In order for the rental market to continue, rental rates must be reasonably priced.  You can base a fair rent off of the value of the properties in the surrounding neighborhood.  

Real estate is not a predictable market.  Most inventors who have attained recent successes say that they invested in the real estate market when it was hot.  The stock market was at an all time high and they took advantage of that, making lots of money along the way.  While riding the real estate wave a lot of people gain a great deal of success in the business and think it is always going to be that way, but that is not so.  The most important thing to remember when you are thinking of getting into real estate is that the face value of the property itself is not going to be enough to hold you over.  A reserve of cash, an emergency fund if you will, is necessary to a successful real estate investment experience.  You must have the ready cash or credit to cover insurance deductibles, fix repairs, and cover emergencies.  Otherwise you risk losing the property through several means, up to and including lawsuit. 

When signing a loan to get into the real estate business initially, bear in mind that your payments are not always going to equal the payments being made on the property if it is being leased to another.  That may be why it is in your best interest to have full or at least near full ownership of a property before renting it out.  This is because not only would you be responsible for making up the difference between the rent and your payment, but you also have the responsibility of paying any insurance payments or property taxes that ownership of the property may incur.

Real estate is one of the best businesses out there for people who don't have a lot of opportunities available to them.  It has successfully turned many a dreamer into a businessman, but it is not to be regarded as a get rich quick scheme.  The business of real estate takes a large amount of cash reserves saved up, a good investing mind, and a good knowledge of the stock market and its conditions.

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The outside of your home is the first thing potential buyers will see. Keep this in mind when it comes time to put your home on the market. Many home sellers focus largely on the inside of the property, which is extremely important- but this is not a time to overlook the first impression your home makes from the street.

There are a few simple things you can do as a home seller to make your house more instantly appealing. If potential buyers get a good feeling on their way in, they're much more liable to like what they see once they get inside.

The first step is grass. If you have it, great. Cut it neatly and trim the edges. If you have grass but it leaves a lot to be desired- for example, if you more weeds than actual grass- you can still make a good impression by keeping it neatly trimmed. If you haven't noticed, neatly cut weeds look a lot like grass. It's not ideal, but it's better than nothing. If your lawn is in bad shape and has bare patches, invest in some grass seed. Sod would make the ultimate impression, but most home sellers are reluctant to put down the cash this requires, and there's no guarantee that sod will grow anyhow. Put out fast-growing grass seed, string off the area, and let potential buyers know that you've made the first step towards giving the house a nice green lawn.

Shrubbery is another inexpensive and important factor for homes on the market. It's worth the small investment to plant some bushes near the front door, or near low-lying windows where privacy might be a concern. It's a known fact that people respond well to bushes planted at the end of a sidewalk, framing the entrance into a yard, so if your walkway is bare consider a bush on either side of it. A few blooming flowers from your local nursery will also help. Don't worry if they look freshly planted. You don't need to fool people into thinking they've been there forever; you just want to show that you've made some good effort, and that the yard has good landscaping potential.

And that's the last trick: We said "potential." One of the worst things a home seller can do is over-landscape their lawn. Buyers will get a crowded impression if they can't turn around in your yard without running into a brick path or a bed of flowers. Leave some open space and let buyers imagine how they would design the area if they owned the house. Your potential buyers might have children, and want the open yard space for a jungle gym or play area. So keep the design loose and generic, and don't spend too much time or money on landscaping to sell.

All you really need are the few small details that will make a good first impression.

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Nowadays more home buyers than ever are in the market for a 'fixer-upper', a damaged home that needs repairs. Whether they want it for themselves or to renovate and sell at a profit, people are looking for the diamond in the rough.

The question is, will you be able to do the work required to make the home marketable? The secret lies in purchasing a home with problems that aren't out of the realm of possible repair. So what should you look for when you go to search for your fixer-upper? What should you avoid?

Unless you're a certified carpenter with plenty of time and money on your hands, avoid a house with serious structural damages. Structural repair, including unsafe wall support and caving-in roofs, can be a serious and costly process, out of reach for the typical home buyer. How do you know if a house is too broken to fix? It pays to ask a professional. Although most of the time serious structural damage is obvious (and in fact, you'd probably have to go looking to find a house on the market that had this kind of problem), it's worth your money to get an inspector on your side and have them check over any damaged property you're considering. If you do the research and get the right inspector, they'll be able to tell you what lies ahead.

On the other hand, there are certain home defects that, while they might sound daunting, are simple enough for the right person with a little time and money to spend. A home that has seriously damaged floors, for example, may require the removal of the old floors and installation of new ones. Similarly, a missing porch, broken windows, and damaged walls can all be repairable defects if your budget and time allow.

Of course, it's possible to remedy any problem that might exist in a home, even if it involves serious structural work. The trick is deciding on what type of budget and timeline you have, and how much work you're willing to devote to bringing your diamond to life. If you're considering a fairly large repair project and a fairly large investment, get an appraiser to look at the property and help you calculate what kind of market value the house will have when all is said and done. Even if you're not planning to sell it, you'll need to know if the work is worth the investment.

Finally, know when to walk away. If it's a great house but has a lousy yard, or is in a bad location, do you really want to pour time and money into renovations? Renovating a fixer-upper is a big commitment. Make sure it'll be worth it in the end.

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The face of America's population is changing by the day. With the onset of many lower-income jobs and the flux of workers in the job force who are making the federal minimum wage, the financial situation of the country's population has been shifting. Along with this shift comes the inevitable shift in the country's housing situation. With incomes and housing rates in flux, America's housing situation has been steadily worsening and may very well reach a crisis point in the near future.

In many areas of the US, a recent study finds, the average minimum-wage worker cannot afford the rent and utilities on an average apartment. This study assumes that no more than 30% of a worker's income goes towards rent and utilities- the government considers a percentage higher than that to be too much. In a country where owning a home is a major status symbol, it is a cause of real concern when a large segment of the population cannot even afford to rent one. Are real estate costs getting out of control?

For an average two-bedroom rental apartment in the United States, the average worker must earn, according to the government, in the area of $15 an hour. With the minimum wage currently at about a third of that amount, the fact is that many families cannot afford to keep the roofs over their heads, much less save money to someday buy a home. The fact remains that wage increases have simply not kept up with the booming costs of real estate rentals and utility costs. While rent costs are climbing, utility costs are climbing faster still. And it's also worth noting that in areas where housing costs are lower, wages are on average also lower, so there is not much benefit to be gained by relocating. The minimum wage has not changed in the United States since 1997, while the costs of housing continue to rise.

The US government has also fallen behind on their spending towards Section 8 rental vouchers, which help low-income people pay their rent. More landlords than ever before, particularly in metropolitan areas, accept Section 8 vouchers; but since government spending towards these vouchers has not kept up with demand, they are becoming more and more difficult to get. As housing costs increase, those who depended on Section 8 can no longer do so.

Not surprisingly, rent in rural areas is the most affordable, and California is at the top of the list when it comes to hourly income needed to afford a typical apartment. It's a difficult situation for anyone who is having trouble making their rent: The option to move somewhere cheaper, but make less money, is not much of an option.

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Bay Area real estate is an ever-increasingly popular investment for prospective property or home owners in California.  The location is prime, and the price is always right.  Whether it is due to the area's oil-rich location near the shore, the beautiful weather, the breathtaking views, or the pocket-fattening constant tourist traffic in San Francisco, the Bay Area is a very popular choice of locations for both prospective real estate agents (who are seeing dollar signs, most likely) and prospective purchasers.

Since 2002, property values in the Bay Area have been rising; increases in interest rates have caused the actual cost of some properties to go up as much as 40%.  For this reason, many people are selling their properties at extremely high prices, equaling higher commissions for the real estate agents who receive a portion of the property's purchase price as payment for their services.  Just as there are people who are selling their properties at high prices, there are just as many investors out there who are willing to purchase these slightly over priced homes, office spaces, warehouses, or other properties just to turn around and sell them back when the values shoot up again.  It could be said that, while all investments are risky (especially when it comes to real estate) the values of real estate in the Bay Area is usually easily predicted, and is somewhat a safer and wiser investment than other real estate opportunities that may come your way.   The average price of a home in the Bay Area is in the neighborhood of anywhere from $500,000 to $650,000 and while your investment could backfire should these properties drastically decrease in value, smart bay area real estate investors wait to sell until the prices go up, maximizing the profit margin they could make off of the sale..  Of course, breaking even never sounds as good as making a hefty profit in your financial endeavors, but as an investor in Bay Area real estate using your head can have you doing well for yourself most of the time if not all of it; it is important not to forget that a reserve of start up funds is always necessary to enter into such a hefty investment as Bay Area real estate.

Bay Area real estate investors are beginning to start up a pattern of spending beyond their means when it comes to these high-priced properties.  Federal guidelines state that one should not take out a mortgage that equals more than 30 percent of your total monthly income; most wise people would take such legally mandated "advice" to heed, but more and more people are throwing monetary caution to the wind and, in attempts to catch a prospectively profitable investment opportunity many do get caught up in the ever-increasing housing market crashes, losing money in the end.  Of course, some people are more affected by this than others.

Bay Area real estate is a great investment for the smart investor, who knows the market well and pays attention to the fluctuations in property values.

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With the huge variety of real estate choices on the market today, many people aren't even clear on what a townhouse is, much less whether or not it's the right choice for them. So what, exactly, is a townhouse?

A townhouse, also called a rowhouse, is actually very much the same thing as a condominium, with one technical difference. Both are housing units that are physically attached to other units on either side- thus the name rowhouse, since they stand in a row. But in a condominium, the land the houses stand on is owned by someone else. A townhouse, on the other hand, means that the person living in the home owns the land it is sitting upon.

Townhouses can be single or multiple stories. Each townhouse has a small patch of yard or perhaps a patio in the back or front, and the lawns are divided equally among the houses. This is a definite advantage over apartment living, where many housing units are in the same structure and thus there is no property division on the ground. Townhouses can be grouped into pairs as a duplex, or in larger groups that form a main complex. Townhouse owners are generally required to keep up their own section of lawn, and may be required to pitch into maintenance of any common areas as well.

So who benefits most from this style of living? For many people, the idea of living in an apartment grows old quickly. Having neighbors above, below, and around you can be tiresome; the lack of a yard is also a drawback. However, many people either cannot afford or do not wish to own a single family dwelling. Townhouses give buyers the option to own a house that is still part of a housing community.

Townhouses are ideal for the elderly, or for young families just starting out. The mutual walls give a sense of security, although of course there is also a loss of privacy. Having a small patch of yard to tend, rather than a full lot, can be a blessing for those who are unable to tend a full yard. A townhouse can be a great starter home for young couples with children.

Of course, because a townhouse is indeed part of a housing community, there are rules which homeowners must agree to follow. Often townhouses are subject to the rules of housing associations, which limit decorations and modifications that can be made to houses or yards. Many townhouse communities prefer to present a unified front, and changes must be approved before they can be made.

For those who are interested in a community style of living but do not wish to remain in an apartment, a townhouse can be an excellent substitute. Townhouse living is available in all kinds of neighborhoods and in many different styles all over the United States. From brownstones in New York to vinyl sided dwellings in Nebraska, town homes are available at all levels and offer the homebuyer a whole new range of options.

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When it comes to purchasing a home, the choices available can be a little overwhelming. With the onslaught of the internet, it seems there are thousands of ways to locate that perfect home, and a new buyer might be a confused about where to start. There are a few good ways to narrow the selection.

First of all, if you know where you want to live, then go there. Whether it's a new city or a new neighborhood, taking a drive through your future abode can open up plenty of possibilities. Realtors and independent home sellers still rely very much on the For Sale sign in the front lawn, and there's no substitute for real curb appeal. This technique has the huge benefit of allowing you to see the properties in person and know immediately if they are worth pursuing. However, it's rather unusual for prices to be listed on For Sale signs outside houses, so try to stick to areas that you know are in your price range. Make sure to bring a camera and a pad of paper, so you can take pictures and write down phone numbers and addresses for future reference. You might end up making an awful lot of phone calls, but it can be worth it.

While you're in your new potential city or neighborhood, pick up the local paper. The classified ads are still the time-honored way to get a house onto the market and you'll find no shortage of listings. Prepare yourself to make some more phone calls and do some more driving. We didn't say this would be a quick process!

Then again, it can be. For those in a time crunch, there are many ways to find houses for sale that don't involve legwork. Many websites offer specialized house searches, which charge a small fee and do the ad-scanning for you, sending you information on properties that meet your criteria. There are also several companies in your local yellow pages which offer this same service. For those who need to move quickly or don't have the resources to hunt, these services can be lifesavers!

Finally, whether you're in a hurry or just browsing, talk to local real estate agents. They'll be able to give you information on what properties they are personally representing, as well as a feel for how prices are running in various parts of town. Keep in mind that agents make money selling houses, not explaining markets, so they won't be able to offer you specialized help unless you're purchasing from them. But if nothing else, their information may be able to point you in the right direction.

House hunting is an exciting process no matter how you do it, and there's no right or wrong way to begin. When it's time to go, weigh your priorities and choose your weapon, whether it's a pad of paper and a pen or the World Wide Web. The right property is out there somewhere. The secret is to have fun finding it!

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First time home buyers are faced with a maze of financial decisions. It's a daunting task to sort through mortgage rates, credit scores, and monthly payments to determine exactly what your price range will be for your future home. Although bankers and real estate agents are there to assist you, it helps to start with a general idea of your bracket. Consider the following things when trying to make sense of your own cents.

First of all, how much of a down payment will you be able to make? Down payments are the reason why first time home buyers are well advised to sack away cash for at least a year before they purchase. The more you can put down up front, the less you have to borrow... and the less interest you'll accumulate.

Once you figure out your down payment, do some research. This is where banks and real estate agents can be particularly helpful. You'll need to get a feel for what kind of interest rates you could get on a home loan, as well as how much you can expect to pay in property taxes and insurance. Once you get an idea of what those numbers would be in your area and with your credit standing, you can get a rough idea of what kind of mortgage you may be looking at. Take a possible price for a home you may be considering. Subtract your down payment from that amount, and then add on the accumulation of interest, property taxes, and home insurance. This is the principal amount you will need to borrow in order to purchase that home. Now you need to discover whether or not you're eligible to borrow that amount, and if you can afford the payments it would require.

Keep in mind that when you do apply for a mortgage, the amount you're able to borrow will be influenced by more than just your credit score. Lenders will also investigate your wages, your expected earnings in the near future, and any outstanding debts. All of this will factor into the calculation of how much you're able to borrow, and what kind of rates you will receive. If the loan for which you're approved turns out to be less than what you'll need for the home you're considering, you must either find a different lender and try to recalculate your terms, or find a less expensive property.

If you're considering purchasing a home in the future, start cleaning up your credit now. Work out payment plans on any outstanding debts, and get a copy of your report so that you can contest any errors. It's also a good idea to start saving for your down payment well in advance. Having a good credit score and cash in the bank are the two most effective ways to get a good loan with a decent rate. If you don't have those two things yet, you should consider putting off your home purchase until you do.

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Getting an appraisal done on your home or property is one of the first things you want to take care of when you decide to sell. Just because you think you have some idea of what your home or property is worth, the dollar amount that you come up with is most likely drastically different from the dollar amount that a professional appraiser would come up with.

An appraisal on your home is basically a professional opinion of the worth of your home or property from someone who is trained to analyze such things. Small factors such as a sun room, porch or deck, number of bathrooms and whether they are whole or half bathrooms are all factors that play into the net worth of your home. Good appraisals also take neighborhood characteristics into consideration, such as proximity to local schools, hospitals, and grocery stores. Especially when families are concerned, convenience is something that people are willing to pay for, and the closer a property is to these things, and the better quality of the schools, markets, etc, the more value added to your home in that respect.

An appraisal is a professional opinion and is to be respected, but keep in mind that it is just that--an opinion. Opinions are not set in stone, no matter who they come from whether it be your disapproving mother, a circuit court judge, or a professional appraiser. If an appraisal is too high or low, a bank or mortgage company may reject the estimate, there by causing problems and delays for your prospective home buyers, yourself, and any body else that is involved in your real estate transaction.

Depending on the nature of the property, a professional appraiser may take one of several approaches to determining the value of your home. The cost or replacement approach is, in essence, a determination of what the home would cost to rebuild should it burn to the ground. This includes everything; your windows, porch, pool, and even any money you have invested into your landscaping, yard or garden are all taken into consideration. The comparison approach to the appraisal takes into consideration all of the houses that are similar to yours that have sold in your particular area in a given set of time, usually the last six months.

From there, the appraiser adds value and takes away value in accordance with the specifics to your home. If you have a basement and most of the other homes similar to yours that sold in the past few months didn't have basements, the appraiser would be able to estimate the value that having the basement adds to the property. If everyone on the block with homes similar to yours had basements, but theirs are finished and yours is not finished, or partially finished, then the appraiser should have some approximation of how much value to take away from the house in accordance with that. The last approach is the income appraisal approach, and it is used more commonly when commercial properties are in question.

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Fixing up your home to sell is a big responsibility.  The way you go about decorating your home can be a big factor in the selling power of the house, adding up to 20 percent to the selling value of your home, although you may not see that much yourself.  A lot of newbies to the home selling business can be under the common misconception that making your home as "homey" as possible will make people want to buy your property.  Supposedly, seeing a home the way you have it should cause them to wish that they lived in such an environment and this is not the case.

It is strongly recommended that you keep your decorating prowess to a bare minimum when fixing up your home to sell.  One's natural impulse is to clean up the entire house, rearranging things and making everything look nice, and that is all well and good.  When fixing up your property to sell, put yourself in the shoes of your prospective home buyers, who will be walking around your house and sizing it up for themselves.  Most people are looking to purchase a home for themselves, to raise a family in and all that jazz.  In that respect, while they may like you and your family just fine, they are not going to want to see your son's cement handprint hanging over the doorway, or your daughter's kindergarten art project framed over the mantel.  It is to your benefit, as the seller, to remove as many visible personal items from the home as possible, especially the living room and dining room, or other areas where the prospective buyers, agents, or others may congregate to discuss your property.  Take down your wedding pictures, and if you just can't bear to do such a thing make sure they are straight on the wall.  Arrange sofa pillows, ottomans, and other objects neatly.  Having too much clutter in the home when you are showing it to prospective buyers can hurt your chances of selling the property quickly.  When your personal items are in the way, prospective home buyers may sometimes find it hard to envision their own belongings and their own family in the house.

It is also recommended that you bake cookies, a cake, a pie, or even just set potpourri dishes around the house.  Aroma does a lot for the senses, and baking in particular brings a homey, personal effect to the property.  Furniture placement can mean a lot as well.  Less is more! Once again, give your prospective home buyers the opportunity to envision their own belongings in the home.  A small sofa, loveseat, and table is more than enough in this case.  Of course, if you are still living in the home you must be able to continue doing so, but grandpa's easy chair, the old out-of-tune piano, and the bean bag chair can all be temporarily stored in the basement or attic.  Yes, parting with belongings like that, especially if you are a pack rat, can be such sweet sorrow, but it will pay off in the end when you sell your home for your asking price.

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Most people in the real estate business didn't start out buying and selling properties that cost hundreds of thousands of dollars, making a hefty profit for their pockets.  True--some do, but not all.  Many good, successful people whether they are in the real estate business or looking to purchase their first home for themselves, start out with fixer upper properties.  The term fixer upper can range from an older house built in the 1900s to a duplex that was built twenty years ago that has plumbing problems, little or no landscaping, or a bad roof.  While it is important to assess the number of repairs that are needed in any home, it is even more important to do so when purchasing a foreclosed home or a home from the city or any government organization.  These types of homes come with lovely little price tags attached to them that can cause any person to turn their head to all of the potential problems involved in fixing the place up.

In your real estate business endeavors, you may want to consider purchasing a property that needs a little work.  Fixer uppers can be purchased at amazingly low selling prices, allowing you as the new owner to either make your improvements and repairs with the intention of selling the property for a profit or using the property for your own personal or business use.

We have all seen the For Sale By Owner signs while driving down the street.  Most of the times when people sell houses or properties that are in need of work, they do so because they either lack the time or funding to get the work done themselves.  Properties that need fixing up can be cash buckets for the person with the right eye, proper skills, and/or the proper monetary reserves to rise to the occasion. 

While it can be a great idea for a lot of people, do not purchase a property that needs work without thinking the situation through completely, analyzing the pros and cons of the situation.  It is important to determine whether or not the property is even a good value; ask yourself if you have the time and willingness to make the repairs yourself, or the money to hire someone to make the repairs and improvements for you.  If the costs of the repairs outweigh the profit that could have been made were you to turn around and sell the property for a higher price after the improvements have been made, you are wasting your time and money.  In this situation, one could potentially end up getting stuck with land, commercial property, or a home that is useless to them personally.  Keep in mind that not every one out there is willing to purchase a home or property as you were when you purchased it.  If, upon finalizing the deal you discover that this is so monumental of a task that you are not up to it, you cannot just give the property back, so it is important to analyze and think through the situation as thoroughly as possible.