What a Real Estate Agent Will Do For You

A residential real estate agent will offer you several key services that can help you buy or sell a property. There may be a few cases where you might be better off without one, but in most situations you will find their services invaluable.

Helpful in Buyer's and Seller's Markets 
In a seller's market, you may be tempted to think that you do not need a residential real estate agent, as buyers gobble up everything placed on the market at top speed. Yet, while you will probably be able to sell your home without an agent in this type of market, you may not have the expertise to know what if you got the best price.

Real estate agents have inside information about the comparable value of other homes in your neighborhood and can help you figure out how much you can demand from a buyer.

And when conditions have moved into buyer's market territory, an agent can come in really handy. When you really need your home to stick out among all the rest, an agent has the expertise in how and where to list your home. An agent can give you tips on the most important upgrades you should make to your house and the best ways to organize and present your home to potential buyers.

Professional Photography Services 
Real estate agents know how important professional, attractive pictures of your home are in selling it for the best price. Many potential buyers and their agents will not even look at MLS listings without pictures. People are very unlikely to drive out and take a look at a house for sale if they do not even have a preliminary glimpse of it.

And even if you consider yourself an able photographer with good Photoshop skills, the real estate agent's professional contacts are much better because they specialize in making a home look its absolute best.

Marketing Assistance 
In addition to getting you some excellent photographs of your home, an agent is in charge of marketing your home to the widest selection of buyers possible. This means putting up professional-looking, quality signs, placing your home on several multiple listing services (MLS) and perhaps even adding links to virtual tours for the convenience of potential buyers.

He may even advertise your home through fliers and mailers. All of this takes a lot of the work and cost off of your shoulders, allowing you to go about your life as normal while the agent does the work of selling your home.

Good Sales Tactics 
Many people are not comfortable with the fine art of persuasion. Residential real estate agents are typically in their field because they are competent salespeople who know how to entice and influence buyers. This can come in handy when buyers come through your home during open houses or on scheduled visits as the agent can help them picture themselves owning your home. They can point out all the best features and really make the sale seem exciting.

Negotiation Help 
Real estate agents also do the entire price and term negotiations for you. This means you have a professional on your side, lobbying to find you the most profitable deal whether you are buying or selling. That is can certainly be an advantage worth paying a small commission for!

Future Housing Bubbles - Should We Prevent Them?

The deflation of housing bubbles is very financially and emotionally painful, and if possible, housing bubbles should be avoided. The pain of the deflation of a housing bubble cannot be avoided by trying to keep the bubble inflated, or by trying to deflate it slowly. The only way to avoid these problems is to prevent the bubble from inflating in the first place through some form of intervention in the mortgage market. Intervention can take the form of a market-based intervention demanded by investors and ratings agencies, and it can also come about through direct government regulation.

The regulated free-market system in place at the turn of the millennium allowed the creation of the Great Housing Bubble. Some combination of market-based and regulatory reforms is necessary to prevent the same circumstances that created the bubble from creating another one; it is imperative to prevent the next bubble in order to avoid the problems from the bubble's deflation.

A substantive bailout plan to rescue homeowners would be fraught with problems and unintended consequences. In September of 2008, the banking system neared collapse due to the problems of the fallout, and a banking system bailout became necessary. This outcome argues more forcefully for an intervention to prevent future bubbles from occurring in the housing market.

A future bubble in the housing market must be prevented. The economic and personal problems resulting from the deflation of the Great Housing Bubble must not be inflicted on another generation. Just as those who endured the Great Depression struggled to understand what went wrong and prevent its reoccurrence, we must prevent another bubble in the housing market. There are both market-based alternatives and regulatory-based policies that could serve to prevent the next housing bubble. The market based solution proposed herein is to expand the use of the income approach to property appraisal to tether prices to fundamental values. The regulatory solution proposed herein is a multifaceted approach that limits lending to within certain standards. The policing mechanism is a shift to civil enforcement through allowing borrowers to obtain debt forgiveness for amounts lent outside of the approved parameters.

The Great Housing Bubble was an epic event impacting the lives of nearly every household in the United States and around the world. At first it was a giant house party fueled by excessive borrowing and spending by homeowners. The hangover was not pleasant. As of the time of this writing the full history of the fallout is not yet recorded. The decline in prices to this point has been breathtaking and unprecedented. When the full history is written, and the final impact of the bubble is measured, many will remember the Great Housing Bubble as one of the most important historical events of their lifetime.

Loan Modification - What Really Happens?

The housing market is a mess right now. Millions of Americans are unable to make their mortgage payments. When a mortgage goes unpaid for too long, then a foreclosure follows. This hurts the housing market more because every foreclosure drags the cost of homes down lower and costs lenders even more money. To answer this problem homeowners can now seek and receive a loan modification. But what happens with a loan modification?

First of all, the entire point of a loan modification is to lower a monthly mortgage payment so that it's more affordable. This is done by one or more of the mortgage terms being changed. The loan modification has to be agreed upon by both the lender and the mortgagee. However, there are certain criteria that must be met in order for a mortgagee to qualify for a loan modification.

Three of the biggest conditions that must be met are:

1. The homeowner has to demonstrate a hardship that resulted in an inability to pay the monthly mortgage payment. There are many different types of hardships that qualify.

2.The mortgagee has to prove that the new monthly payment obligation set forth by the loan modification is affordable and can be made on time.

3.The current home has to be worth less than the current amount of the mortgage. With the crash in the value of homes, this is the case for millions of Americans.

Unfortunately, once a homeowner falls behind with a couple mortgage payments, the late fees and penalties make it almost impossible to ever get caught up with the payments. What often happens with a loan modification is that those late fees and penalties can actually be rolled right into the principal of the loan.

So, what happens with a loan modification is that the mortgagee and the mortgagor agree to change one or more of the terms of a mortgage. Then the mortgagee basically starts all over with a new lower monthly payment that is much more affordable. This keeps the mortgagee in the home and it allows the lender to continue getting paid on the loan.

That's what happens with a loan modification. It's a great alternative for many homeowners, and many lenders, since it allows homeowners to stay in their home and won't continue to add more weight to a housing market that is already near its breaking point.

Loan Modification Application Forms - Do You Know How to Complete Them Properly?

Homeowners facing financial hardship can increase their chances of getting help by learning how to complete the required loan modification application forms properly. Do you know how to prepare your loan modification forms so they have the best chance of meeting your lender's guidelines? The truth is that your lender will base their decision to approve or deny your loan modification application based in large part on the information you provide. Make sure you know how to present your proposal in the best possible light. Here is some helpful information.

Frustrated and confused borrowers may think that they have no control over whether their lender approves their loan modification application-but you can greatly improve your chances of getting your loan modified by learning and preparing before contacting your bank. When you take the time to learn how to best complete your loan modification forms ahead of time, you will not be caught off guard when your lender asks you questions about your current financial situation. You will not be under pressure because you already know how to answer properly. You can take your time, work on your budget, debt ratio and final proposal so that it has a good chance of meeting your banks guidelines for approval.

You will be asked to prepare a financial statement that is basically a snapshot of your current situation. You will also need to prove to them that you can afford to pay and maintain the new modified loan payment. This can be tricky, because you have to show that you cannot afford the current payment but will be able to afford the new payment and have a little left over for emergencies. When you know how to present your situation so it conforms to your lenders approval criteria, your loan modification forms can be completed accurately. Make sure your guns are loaded and ready before you contact your lender by knowing how to complete the loan modification application forms properly.

Real Estate Agent - Choosing the Best One

Buying or selling a home is a huge time and financial investment that can create stress and anxiety. Inexperienced buyers and sellers often make the mistake of doing it alone, losing money and falling into legal or other hardships along the way. Don't make such monumental decisions without expert guidance. Employing a real estate agent can save you money, time, and heartache.

Unfortunately, choosing a real estate agent can be more confusing than choosing a home. Although you may be tempted to open up a free real estate booklet and choose according to portrait, (look for the obligatory agent with cowboy hat) you'll want to take your time and interview a few different prospects before making your decision. Here are some questions to ask and the answers to expect.

1. How long have you been working in real estate and with this agency?
Let's face it-experience is invaluable. When buying or selling, you want to hire an expert, not a novice. You also want someone who has been with an agency for a good amount of time, or at least has been in the area for many years.

A realtor that knows the location well gives you the upper hand in seeking property and making negotiations. Newly licensed realtors can be helpful if you're seeking trendy hotspots, but be sure that they are well versed in legalities, or at least are not afraid to ask for help from mentors.

2. How much?
This might be a good question to save until the end, but it is important. Realtors are expert negotiators, so the first percentage they quote doesn't have to be set in stone.

For buyers, it varies between %1 and %4. Sellers generally pay more depending on if they must cover the buyer's agent as well. Don't be afraid to haggle and don't be afraid to decline an offer and move on. There are plenty of great realtors, especially for buyers, who can be talked down.

3. Why should I choose your agency?
It may sound hard, but what makes this realtor so special that you shouldn't just walk down the street to the next one? There is no shortage of realtors, especially in big cities. If you're buying, are they going to put in enough time?

Will they scoff if you're picky? How good are they at negotiating? How much time can they devote to your search? For buyers, how aggressively will they market your real estate? How many clients do they reach?

Do they have an online presence? You should feel confident and secure that the realtor is going to devote enough time and energy to the job.

4. Can I see a few references?
The answer to this question should be a resounding yes. They should supply you with phone numbers and emails of non-related, professional references that can adequately vouch for the real estate agent's professionalism, as well as their personality and work ethics.

Don't be afraid to ask these and many other tough questions to potential real estate agents. A good agent will not take offense and readily provide you with all of the answers you need.

A Perspective on Real Estate - Never Again in Our Lifetime So Be Prepared

In recent years lots of people have been playing the real estate markets thinking there was little risk, even trying to flip houses. An associate of mine told me a story about an MD that committed suicide over multiple investment properties where his properties were "under water" (the houses were worth less than the mortgages).

Everyone thinks he or she is an expert, like gambling addicts who think they can make up their losses with one more bet.

The Rude Awakening is Upon Us.

It's sad, but true that Real Estate doesn't always go up in value.

It might take a generation or more for real estate prices to recover in some locations.

To illustrate this point with a real life example from the Great Depression, we knew a woman who was living off real estate in the 1990s her father bought during the 1920s and 1930s.

60 years is a long time to wait for an investment to pay off.

It should change the way we manage our personal real estate investments. If you are paying on a big mortgage you experience severe risk in the event of job loss or an economic downturn.

Owing the bankers and loan companies just puts you under more pressure. So what should you do?

You want to get rid of the obligation as soon as possible. It makes you vulnerable to any income glitch like a layoff. If you own the structure outright, it means you only have to pay taxes, insurance and utilities.

Here are some good strategies.

1. Save up a down payment if you are buying.
2. Get a short-term mortgage.
3. Pay it off as fast as you can.
4. Buy or trade down to a smaller house that is more affordable.
5. Taxes will be more reasonable on smaller homes.
6. Get some land where you can grow food or add on other structures.
7. Look for tax breaks for agricultural land and homestead exemptions.
8. Avoid car payments and apply the income to your home. Cars are terrible investments. Even now real estate is better. I've seen car payments greater than many mortgage payments. You can't live in a car.

Finally, prepare for an even further drop in real estate prices and many more foreclosures creating a self-perpetuating downward spiral. If you prepare for the worst and it doesn't happen, think how much better off you will be.

New US President and Real Estate

With a new President of the United States only days away from being sworn into office, are we bound to see a light at the end of the recession tunnel? Things are bad across the United States, but will a new leader truly make a difference in the world of personal finance and real estate? We can all hope the promises of the new leader end up boosting the economy and bringing back the powerful economical reign the United States has come to love.

With a new President comes much of the excitement a child feels with a new toy. That excitement is enough to make people believe in the practices, rules and regulations that the leader preaches will turnaround our financial world. Along with that novelty, comes the fact that the current President of the United States is facing approval ratings lower than anyone every thought possible.

Is a Turnaround Out of the Question?

Some people, including the President Elect, believe the state of the financial crisis is bad enough that a change needs to be made today in order to save the United States from years of recession. Not unlike the months before President Bill Clinton took office, the United States economy is in a slump and needs a boost. It took President Clinton four years to change the slump and four more years to gain the total trust of the United States people. Unlike that time in history, today people are looking for change and President Elect Obama may be the change the people need.

How Will The President Elect Change Real Estate?

The real estate market is directly related to the financial well-being of the people of the United States. If there is money flowing in the economy people are more likely to invest in a home of their own or investment real estate. When the media, friends and family are facing harsh economic times, lost jobs and reduced pay, the money is just not there to invest. And, even if the money is available, the savings rate in the United States is on the rise because people are saving that money in wait for the final financial shoe to drop.

The entire real estate community and agents across the United States stand together in hopes that the President Elect will be able to make good on many of the promises responsible for his election. A new day is on the horizon and we all can only cross our fingers that President Elect Obama understands what the American people and the real estate community need to climb out of the recession and become the financial leaders we once were as a nation.