Real Estate Update

Archive for December, 2010

2008 and 2009 are certainly those years, which Indian and global realty companies won’t like to remember. During these two years, realty companies were hit hard by the impact of global slowdown and a drastic fall in the demand for properties. The meltdown badly shook the investors’ confidence and global markets fell like a pack of cards. People preferred to remain in their safety shell and also tighten their purse strings, and this was something which the realty companies didn’t even think in their wildest dreams. Almost all companies in this particular sector suffered huge losses and many had to sell-off their assets to pay-off their mounting debts. Leading realty companies such as Unitech group and DLF group were clueless as to how to handle the overall situation. At present, residential sector is probably the single bright-spot for retail investors in India. Though the sector did face the impact of slowdown, it is now showing revival signs. GDP growth, labour and market stability are among the various factors which will be crucial for the long-term growth of this sector. However, when compared to Western and European counterparts, real-estate companies in India are in a better health position and are expecting better balance-sheet figures in the upcoming months and years. In the recent few years, Bangalore, Hyderabad, Delhi, Noida, Agra, Kolkata and Ahmadabad are becoming popular destinations for these companies. Indian realty firms are now looking beyond the geographical boundaries as well, and are making efforts to lure NRI customers. One such property exhibition is scheduled to be held in Kuwait, where the renowned property-developers will showcase their thousands of properties to NRIs. It is not only the Indian realty companies which are taking such initiatives, but even foreign companies are eying Indian investment in their countries. Malaysia is one such country which is holding a three-day property fair in India to attract Indian investment in its real-estate. Many such programs are in line and this will definitely give a much-required boost to the real-estate firms all over the globe. From the customers’ point of view, this is the best time to go ahead and turn their long-cherished dream of making a sweet home into reality. When compared to the previous few years, prices of properties have come down drastically. Banks have also cut down their home loan interest rates and many are also offering some special home loan plans. What more, banks have also simplified the whole-procedure for getting a home loan. In a bid to revive domestic demand, both realty firms and banks seem to have come together and are offering attractive home loan schemes to their customers, and the move is surely going to uplift the demand and may help the firms to pull themselves out of the recession blues.

Buying cheap property for sale and selling it quickly and making huge gains is the aim of most property speculators, however buying cheap property for sale often leads to disaster for many property investors.

They simply don’t understand one fundamental fact:

Cheap property for sale is cheap for a reason!

No one wants it.

Now, some cheap property for sale will become expensive but most will not and it is here you need to balance the risk to reward carefully and keep these two points in mind:

1. Don’t buy markets that have not turned up

If you are buying an area of your home country or are buying cheap property for sale in the booming overseas markets don’t buy a market that may take off for reasons you believe in, look for the facts to point to it has taken off and that means rising prices.

Of course, we all want to buy the bottom of a market but the risk is high.

If you want to be a pioneer go ahead, but keep in mind some made huge rewards and most got the arrows and its the same in property investment.

Property trends last for decades, so what if you miss the absolute bottom? If you can still buy cheap property for sale and make triple digit gains who cares?

2. Buy only locations where the infrastructure points to higher prices

This means buying the cheapest property for sale with lowest risk to highest reward.

Normally, this means buying near new infrastructure.

New roads, airports, marina’s etc are great locations. When their built, the herd comes in and property values soar.

Don’t buy a property in the middle of nowhere and think that it may increase in value!

You may be waiting a long time to see grow, if at all.

Cheap property for sale a great market

A fantastic market offering affordable property is Costa Rica.

With beach view property up to 70% less than in the USA and a rising number of retirees and second home buyers coming in from abroad and you could be piling up some huge gains with the right location.

At present the central Pacific coast near Jaco offers great returns with low risk and is rising in popularity.

Buy cheap property for sale here and you could be looking forward to some fantastic capital growth potential

One of the most important things to do when purchasing a home is to find a great real estate agent to make the process flow smoothly and effectively.  A question many people ponder is how to find a good real estate agent.  The best agent may not necessarily work at one of the top ten agencies in the area.  The agent who will work best for you would be an experienced agent who will listen to your needs, act in a professional and ethical manner and knows the market in your area.

1.)Word-of-Mouth or Referral
Most real estate professionals attract a sizable amount of business because of a satisfied client who recommends them to a friend, family member or neighbour.  When you are thinking of purchasing a home, it is a good idea to ask those around you who they have used and ask them to elaborate on their specific experience with the real estate agent in question.  Successful real estate agents strive to make customer satisfaction their number one priority and will do everything they can to facilitate a good experience for a customer.  Try to find an agent that has a proven track record and reputation for delivering quality service, customer satisfaction, and have experience in the neighbourhoods that you are looking in.

2.) Do an Online Search For Real Estate Agents
There are many online resources available when searching for a real estate agent referral, but this by no means ensures quality.  The agents referred online may have paid a fee to the website owner to be listed in the directory.  Performing a Google search of the top agents in your area and then reviewing their websites will give you a good list of agents to interview.  Agents who have experience in the field will tell you, but a newer agent will more than likely have the extra time to spend working with you.  Review any customer testimonials or feedback about an agent you may be interested in retaining.

3.) Visit Open Houses in the Area
You should visit some area open houses where you can actually meet with a potential agent in a non-threatening manner.  Here you can see how they work, collect business cards, formulate an opinion and talk with them on a personal basis.  If you are thinking about selling a home, pay close attention to how the agent presents the home.  Make sure the agent is polite, informative, approachable and professional.  Does the agent promote the home by handing out professional looking feature sheets or other related materials?  Is the agent trying to play up the features that make the home more enticing?  Or is the agent in the corner, back turned and uninvolved in the whole scenario?  

4.) Pay Attention to Real Estate Signs
Carefully monitor the real estate signs in your neighbourhood.  Observe how long from the day they go up until the home is actually sold.  An agent who has a high sales turnover might be a better choice than an agent who has lots of for sale signs but few sold signs.  An agent who gets results is what you want.

5.) Why Agents Use Printed Advertising
There are two main reasons real estate agents use printed advertisement.  First is to advertise and sell a specific piece of real estate.  Secondly, advertising is used to promote the agent handling the transaction.  By checking the local Sunday real estate ads in your neighbourhood and then checking the agents website, you can find the agents who may specialize in your particular neighbourhood.  Contact the agent and inquire about their expertise and ask any other relative questions you may have.

6.) Seeking Recommendations from Other Real Estate Professionals
Ask around and seek out other real estate agents for a referral.  Most agents are happy to refer a buyer or seller to another associate, if the service you require is not a specialty they can provide.  Some agents only specialize in resale property, while others work predominantly with the sale of new homes.  Other agents work exclusively with commercial or investment properties.  Mortgage brokers are a great resource for agent referrals; many brokers have first-hand knowledge and can point you in the direction of a top-quality real estate agent and remember professionals tend to refer like-minded peers. There is also typically a referral fee involved for the referring professional so be careful that they refer you to the best Agent not the one that pays the highest referral fee.

Gary Keller and Joe Williams established the “Keller Williams Realty” in the year 1983. Gary Keller and Joe Williams used to work in a real estate company in Austin, Texas. It was the biggest real estate company at that time. It was at this place that both the person came together to form a long lasting friendship. Both of them believed in the idea that the company should work for the employee. This idea led to the formation of “Keller Williams Realty” in the subsequent years.

The “Keller Williams Realty” And Their Franchisees

The “Keller Williams Realty” started franchising in the year 1987, four years after their establishment. The company is head quartered at Austin, Texas. They have the policy of encouraging agents to recruit others through the profit sharing. Currently, the “Keller Williams Realty” has one hundred and seventy five employees. There are another fifteen employees working at the franchise department for “Keller Williams Realty”. According to the 2009 reports; the “Keller Williams Realty” has six hundred and seventy five franchises throughout the length and breadth of United States. The number of franchises in Canada is thirteen. Presently the “Keller Williams Realty” company is seeking franchisees in the Unites States and Canada. As a gesture to social responsibility; the “Keller Williams Realty” is attached with habitat for humanity and food bank drives.

The Investment Amount To Become A Franchise

The net investment for becoming a “Keller Williams Realty” franchise; varies between $ 1, 74,647 to $ 5, and 57,495. The “Keller Williams Realty” charges franchise fee and ongoing royalty fee. The franchise fee is twenty five thousand dollar and the ongoing royalty fee is a flat six percent rate. The terms of agreement is valid for five years and is renewable. The franchise fee, start up cost, equipment cost, inventory cost, receivable accounts and the payroll cost is not financed by the “Keller Williams Realty”.

The Desired Qualifications And Operations Of A Franchise

The “Keller Williams Realty” doesn’t have any mandatory net worth requirement for opening a franchise. However, they do have $ 1, 50,000 cash liquidity requirement. The “Keller Williams Realty” expects the franchise owner to have industry and general business experience. Thirty percent of the franchisees own more than a single unit. Three to four employees is required to run a franchised unit. “Keller Williams Realty” allows absentee ownership of the franchise. Fifteen percent of current franchise owners are absentee.

The Extended Training And Support

The company provides ongoing training courses at their head quarter and franchise location, throughout the year. The ongoing support is extended to all the “Keller Williams Realty” franchise, through news letter, meetings, and internet and field operations. The national media advertisement and exposures provide substantial marketing support to the franchisees. In-house marketing department is another great support for the “Keller Williams Realty” franchise.

The “Keller Williams Realty” is a well known name in its business domain. The franchise friendly attitude of “Keller Williams Realty”, combined with the great sales support makes it an attractive option for taking up the franchise.

Many people decide to sell their homes every year for a variety of reasons. Sometimes you may be looking for something else in a home, want to find a cheaper home, or even to relocate to another area. You may find yourself in this situation at one time or another in your life and when you do it may be useful to hire a real estate agent.

The profession of a real estate agent entails helping individuals both buy and sell real estate. The real estate agents skills include getting meetings set up to discuss negotiations, setting up the open houses for viewing and showing, contacting the accountants and lawyers working on the transaction, and finalizing the sale and everything that it entailed there. The Los Angeles area has many professional real estate agents who are very good at their jobs. In order to get the best service and the smoothest transaction it can be a bit easier to find an agent who will do all of the services you will need during the home selling and buying process.

The Los Angeles real estate agents are the same as agents from any other cities. A good agent will be familiar with the area and know the properties and areas as well. Using a local real estate agent gives you this benefit because you know they are experienced with the area and familiar with the conditions of the real estate market.

You should keep a few things in mind when you are looking for the right real estate agent in Los Angeles. You will want to look at how experienced the agent is working in the market and what types of services these real estate agents offer to people. Not all of the real estate agents work in the same manner and give the same services to their customers. Using the right real estate agent can dictate whether or not the home gets sold and for how much it ends up getting sold.

One of the major considerations you should be looking for when you decide which agent to use is whether or not they are duel agents and work with buying and selling both. A duel real estate agent will help you by putting your home up for sale and help potential buyers who are possibly considering buying your home. You might get a larger number of buyers interested in your home if you use a duel agent who can handle all aspects of the transaction; it is possible that interest may be spiked.

The best chances of a real estate agent being successful are if they participate in using an MLS Marketing Service. This acronym stands for a multiple listing service and these can be operated by many different municipalities whether they are towns, cities, or counties. These MLS can allow the homes to be all listed in the same spot for easy viewing by possible buyers. Your home will be most likely to get sold if it is used with a real estate agent that uses an MLS.

Choosing the right real estate agent can also determine how much the home ends up selling for as opposed to if you listed it yourself. When you decide to choose a real estate agent ask them why they are listing your home for the price and how the number was determined. An appraiser is often used to check the fair market value of the home to determine how much the home is worth being sold for.

Checking the Los Angeles real estate agents will provide you with the best possible agents for the job. They are one of the most important pieces of the puzzle that dictates your home sale price.