Tips

Real Estate Tips for Consumers

October 23, 2017
Real estate terms explained

Remember that first day on a new job when it sounded as if your colleagues were speaking a different language? Most industries have their own jargon and real estate is no exception. In fact, this industry seems to be the King of Jargon. What’s worse is that those who use it assume that the rest of us know what they’re talking about. Today we’re going to help you master this language by defining some of the most common terms you’ll hear throughout the process of buying or selling a home. Soon you’ll be slinging this jargon as if you were a real estate pro! Addendum – This is a document that is attached to and made a part of the original contract. It is typically used to provide clarity on certain parts of the contract. An example of an addendum is the Addendum for Seller’s Disclosure of Information on any liens on a property as Required by Buyer. Another example is the “As-Is” addendum, used to disclose to the buyer that the seller refuses to warrant the condition of the property and that the seller will not be responsible for the replacement, repair or modification of any defects in the home. The[…]

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October 23, 2017
The 3 immutable laws of home selling

The sun will always rise in the east and set in the west. All people will someday die and, as long as you make a certain amount of money, you’ll always pay taxes. There are some things in life we cannot change, no matter how much we wish otherwise. Real estate, too, has its immutable laws and there are three very important ones you should pay attention to as you get ready to put your home on the market. 1. No, your home in need of repair won’t be popular, unless you price it at rock bottom Unless you absolutely cannot afford to fix what’s broken in your home, making repairs is a must. At least if you want to make the most money possible. Don’t make repairs and your home is like chum in shark-infested waters. The buyers most attracted will be investors who won’t pay you anywhere near what you hope to make. And, if the necessary repairs are major, few mortgage providers will loan a buyer the money to purchase the home unless and until the repairs are made. Even a home in need of minor repairs – dripping taps, broken tiles, damp walls with peeling paint[…]

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October 23, 2017
Budgeting Income and Expenses For Your Rental Property

While every property owner will agree that budgeting is essential to proper management since the ability to maintain and improve the property rests with the budgeting process, most small property owners fail to prepare budgets adequately. A budget is a forecast of future income and expenses. As such, it is an absolutely essential management tool. Unless you take the time necessary to analyze past income and expenses and forecast future income and expenses, you just won’t know whether or not you’ll have adequate cash flow for the ongoing expenses necessary to operate and maintain your property. Income is the starting point on any budget. You need to determine what is an acceptable rent level for each apartment in your building. This determination is crucial. If you raise the rent too high, you may force many of your tenants to move. On the other hand, if you don’t raise the rent or raise it too little, you may find that you have insufficient income to properly manage and maintain the property. Rent increases should be based in large part on comparison with the market. If your building is the best in the neighbor- hood and a building down the block, that[…]

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