Posts Tagged ‘Real Estate’
Role Of Real Estate Agent In Vacation And Second Home Markets
Second home income have been increasing over the last few years with more people becoming second home owners. In 2005 alone, 40 percent of the homes sold were second homes. Demographics, all time low mortgage rates, and healthy rise in home prices have contributed to this development in the second home market. Besides these, a major bourgeois that has helped augment the buying and selling of second homes is the real estate professional.
The National Association of Realtors conducted research on the profile of second-home owners in 2006. According to the NAR report entitled ‘2006 Profile of Second-Home Owners’, a majority of second home income transactions are conducted using the services of real estate agents.
Do You Need A Real Estate Agent?
Real Estate business has seen tremendous growth and so has been the need of Real Estate agent. This day more and more people are getting interested to become home owner and as the demand for real estate need increases the role of Real Estate Agent becomes more important. In the past one agent use to wage services to both seller and buyer but as the real estate market changed people started to realize that specialized service is more logical and beneficial. In Real Estate industry now buyer/seller are looking for specialized agents who can wage specialized related expertise, information and services required to complete the process. When a real estate agent represents both buyer and seller it really restricts agents to wage impartial service to either party.
Let’s look at the both (Seller/Buyer) scenario separately. A real estate agents who is a listing agent of seller has a fiduciary, ethically and moral duty to represent seller only.
By getting Exclusive Right to Sell Listing, the real estate agent is promising seller that he will live no stone unturned to market the home and find the ideal buyer at maximum doable market value for the home.
Avoid Top 10 Mistakes Made By Real Estate Investors
Real estate investment is perhaps one of the most lucrative forms of investment today. But it is also equally risk bound especially when one is not well versed with the trends and nuances of the real estate market. So if you are contemplating on investing in real estate, it is ideal to refrain pricey mistakes in real estate investment especially when you invest your hard attained money into it. Knowing the most common mistakes prefabricated by real estate investors helps one steer away from making such mistakes in the future and ensures good return on investment.
Here are the top ten mistakes prefabricated by real estate investors, according to bankrate. com. Bankrate has place together the top ten mistakes after talking to established, full-time real estate investors and other professionals involved in real estate investment such as bankers. Read on to know them and refrain them.
1. Not planning up ahead. Lack of a proper plan is the biggest mistake prefabricated by novice investors. Finding a home after forming a proper investment strategy is the right way instead of looking for a home to fit the plan. Many make the mistake of buying a home because it seems to be a good deal and then trying to see how they can fit it into their plan. Instead of buying a home and thinking one can plan in due course, investors should rather concentrate on the numbers and try to make offers on multiple properties. This will ensure a good property that not only matches their investment model but also works out well with the numbers they had planned for.
2. To believe you can make money quickly. The second major mistake that real estate investors make is to think it is very simple to get rich in real estate. This is only a myth and the reality is that investing in real estate is a long term project.
Second Home Investment
Most people know that the ideal way to start building wealth is to purchase real estate. After all, real estate is one of the few investment markets that is independent from other economic trends. Regardless of recession or inflationary periods, or wild rides on the stock market, real estate provides investors with a strong, steady increase in values.
This return on investment, and the capability to save money, is one of the reasons most people try to purchase a home. But what many people don’t realize is that not only does it make a lot of sense to invest in a primary residence, it makes just as much sense to purchase a second home, and receive many of the same financial benefits. There’s never been a superior time to make a second home investment.
In fact, many experts are suggesting that purchasing a second home for investment purposes is one of the smarter investments an individual could make. Investing in real estate isn’t just for the rich and famous. There are a number of real estate opportunities that are quite inexpensive for the average investor, like condominiums and small homes. There are financing options that make the investment painless.
Let’s suppose you’ve always wanted to own a second home for a pass property. How much of the year would you or your family be using the property? For most people, the pass property will be used a couple of months of the year at best. The rest of the year, the home can be rented out, sometimes creating more rental revenue than the mortgage payment. And of course, there’s the appreciation of the property as well. In a few short years, you’ve grown a minimal investment into a substantial return, and had the benefit of the use of the property for your family vacations.
Another option is to think about a second home with permanent renters. Again, you can easily find mortgage options that require tiny or no down-payments, low interest rates, and low monthly payments. Your rental income covers the monthly payment, and you have a property that will only appreciate in value.
Second homes are also great transitions into retirement. Envision having a second home rented out for the time being, but acquirable for your use upon retirement. You might even have the home paid for by your retirement.
If you’ve owned your primary home for a few years, you might be unaware of the number of mortgage plans acquirable that make owning a second home so affordable. Contact your mortgage agent to get information on these mortgage programs, and you’ll soon be enjoying the wealth and security of a strong second home investment.