4 Serious Secrets for Buying Real Estate

One of the best methods of making a profit, as long as anyone can remember, has been by investing in real estate. One of the key features that distinguish real estate from other forms of investment is the very obvious fact that you can live in it. The next layer of complexity in the investment scenario is the phenomenon of "flipping," which is buying a house to remodel and sell for a profit. Whether you plan to invest in a home for your own use or buy a property to fix and resell, approaching it as an investor is something that can benefit you in either case. No matter what type of investment is being considered, having a plan is essential. In the case of real estate, particularly when you need a place to live, this may be the most important element of the whole process. The planning must be completed before even getting started on choosing a property as the target for your investment.

1. Allow Plenty of Time
It is a good idea to begin your search well in advance of needing to make your move. Begin looking and learning with plenty of time before you might feel any pressure to get something settled. Sign up with a number of home-search sites. Check out different firms to find out what their listings are and what is on the market. Sticking with just one could limit your options, and checking out all the available resources so you don't get stuck in what can be seen through one agent's or company's (possibly) narrow field of view takes time. A home purchase involves significant time, money and commitment regardless of whether you plan to use it as an investment Doing it in a hurry could hurt you in a big way.

2. Getting Prequalification Is Important
Another step before buying real estate is getting qualified in advance for a loan. The lender should be located in the community and should have a good reputation. This will help you in setting a maximum price for the transaction. A lender should be able to assist you in determining a reasonable amount to spend, taking into account your household income and other existing debts. Just knowing that you have a lender who is prepared to give you that predetermined amount can boost your confidence. Having that information at the ready as you shop is a significant factor in your favor.

3. Ascertain What You Are Going After
You have to be clear on what it is that you are looking for. You have to really think about it until the details are crystal clear. Set your standards as high as you logically can. If you shoot high, you can always adjust as necessary. You shouldn't have a minimum mentality in the serious matter of buying your home. Target your aspirations for the best, taking your budget into account of course. There is no great loss in bringing it down a tad in case things change, or to be more realistic. Sometimes, some features just aren't available where you are looking.

4. Work with an Expert to Represent You
Locate Realtors who are buyer agents. Don't just rely on whoever is selling the home because that agent has an obligation to look out for the seller. Choosing someone you can work with is something you have to do with careful attention. You must do this with care. It may or may not be advisable to go to a friend in the business, unless you are certain that friend has a good professional standing independent of the relationship.

That's not so bad, is it? Take enough time, find out the level of your buying power, determine your standards, and get yourself a good agent. Using these few steps will help you find the right home for you.

This content was provided by Automated Homefinder, your Colorado home experts.

Seller tip: Hire your own appraiser

Whenever you sell your home, whether it's a villa on the Mediterranean coast, a mud hut in the jungle or your old suburban hideaway, the same principle applies: Buyers are going to have doubts about the asking price. Whether you like it or not, that's just the way it is. They're about to make the biggest investment of their lives.

Buyers can't get much better assurance than an uninterested third party validating the value of your home.

Since real estate dealings involve such a large financial commitment, sellers can boost their home's likelihood of selling by getting a certified opinion from a real estate appraiser. Real estate appraisers have only one job to do. That job is to estimate the worth of a home and they don't have a vested interest in the transaction. Their job is to document an unbiased estimate of the value of the home. An advance appraisal can help you get the most money possible because of the feeling of security the appraisal offers to the prospective buyer.

During the inspection of the home, the real estate appraiser determines the quality of construction, the condition of the total property, and how dated (or outdated) the home may be. They compile data on the property as a whole by making notes and searching public records for the details of other property assessments, past sales and leases, and any other transactions.

Negotiate ahead of time for the appraiser to transfer the appraisal to the buyer.

The home appraisal is a valuable asset that is part of the home, but it loses its value to the seller as soon as the home is sold. Why not offer that appraisal to the buyer? The borrower would save $250 to $500 (or even more), which, in turn, can help you get more money during negotiations. In addition to helping reassure the buyer of your home's worth, you can, for all practical purposes, get all or most of the appraisal cost reimbursed by simply transferring it to the buyer. In addition to saving the buyer money, you also guarantee that the loan won't fall through because of a different (lower) appraisal, because if the borrower hires their own appraiser, it's possible that that appraiser will think the home isn't worth what they're paying.

For a very small charge, usually $25 to $50, you can have the appraiser re-write the appraisal to the new owner. In this real estate market, buyers can walk away from a contract for any reason; sellers need to do what they can to close the deal fairly. Getting an appraisal in advance is a good, inexpensive bone you can toss into the deal to show your good faith and cooperative spirit as a seller. Not only does it increase the buyer's confidence in you, but in most cases it will increase your bottom line as a seller.

Visit AutomatedHomefinder.com for all of your Colorado real estate needs.

What's With The "We Buy Ugly Houses" Signs All Over The Place?

In recent years, the number of signs proudly proclaiming "We Buy Ugly Houses" has started to appear everywhere. This unique advertising campaign was developed in the early 1990's by a man named Ken D'Angelo. His vision was to focus on recycling and reselling single family homes. Starting in Dallas, Texas, he eventually expanded throughout the United States.

For individuals who wanted to sell their homes quickly and didn't mind selling them at a discounted price, this program was a dream come true. D'Angelo's company was willing to purchase the home, even if it was badly in need of expensive repairs that the homeowner could not afford to make.

Franchise OpportunitiesSome of the properties were resold to other real estate investors and some were repaired and sold to new homeowners. This process improved the quality of the neighborhoods in which the company operated and generated so much positive publicity that many more homeowners began to choose this route to get rid of substandard properties.

Because of the number of individuals interested in the program, D'Angelo decided to turn his vision into a franchise operation, teaching other real estate investors how to follow his formula to extract a profit from substandard homes while improving neighborhoods and providing a much needed service to the communities in which they operated.

HomeVestorsD'Angelo's company was named HomeVestors of America. It provides training and support to real estate investors specializing in properties that are in need of repair. Today, the company has more than 260 franchise locations across the United States and is constantly adding new locations as homeowners with limited choices for their properties choose to use the services provided by the company. Unfortunately, D'Angelo did not live to see his vision become a nationwide reality. He was diagnosed with a deadly cancer in September of 2004 and passed away soon after.

HomeVestors of America was the first franchise operation of its kind, but in recent years many more individuals have entered the market to rehab and resell distressed homes. Many real estate investors choose the "We Buy Ugly Houses" system, because it allows them to find homes to purchase using a proven system with a minimum of hassle. Homeowners generally come to them due to the creative and aggressive marketing campaign created by the HomeVestors marketing team.

This creates a continuous flow of business for the individuals that purchase a franchise. HomeVestors also allows franchisees to borrow funds to purchase and repair their initial properties. Because of the system created by HomeVestors, many real estate investors are able to create a thriving business by purchasing and reselling distressed properties. Many homeowners can sell properties that they would not be able to get rid of any other way, and many neighborhoods are enhanced by the repaired properties and new homeowners that begin to appear.

This information was provided by the Denver real estate specialist, Automated Homefinder specialist, Automated Homefinder.

Buying a Home With a Cat: How a Black Light Can Be Your Best Friend

When a home is for sale, homeowners tend to go out of their way to make sure that it is in the best possible condition at all times, especially when a prospective buyer is expected to visit. Therefore, when you are shopping for a home, it is really important to remember that you aren't really getting the full effect of how the home usually looks or smells.

When you are looking at homes, you need to be on the lookout for things that might have been disguised so that the house will show well that could potentially become problems down the road. Animal odors, for example, can be masked effectively in many cases. However, masked odors don't always stay hidden, and can become a real problem if they surface after you have already purchased a home.

What's That Smell?
Have you ever walked into a home and been instantly hit by an overwhelming smell that lets you know that cats have been marking their territory inside the home? If you tour a home that has cat odor problems on a warm day, you are very likely to notice this smell if it is present right away. However, on a cold day, the smell might not be so easy to detect.

You certainly don't want to be surprised by the smell of cat urine emanating from your carpet as winter turns into spring in your new home. As a homebuyer, there are steps that you can take to protect yourself from such a problem. You can actually buy a tool at your local pet store or department store that will allow you to detect if there is a problem with cat urine in the home.


Black Light to the Rescue
When you are looking at a house that is currently (or was previously) occupied by cats, you should purchase a black light urine detection tool. Most people don't realize that urine glows when it is under a black light. This simple inexpensive piece of equipment will allow you to see if there is a problem with cat urine in the house, and just how extensive the problem might be.

You are certainly better off finding out about this type of problem before you purchase your home rather than after you have moved in. If you know that there is a cat urine problem in the home, but you still love it, you can always use the knowledge you gained from using your black light to try to negotiate new flooring as part of the purchase agreement.

When it comes to dealing with problems related to cat urine and other pet odors in a home, an ounce of prevention really is worth a pound of cure. When you are making an investment as significant as the purchase of a new home, you need to do everything that you can to learn as much as you possibly can about the home's condition. A simple black light can save you a lot of trouble and expense when it is used to help you flush out hidden animal odor problems.

Contributing author: Highlands Ranch real estate experts, Automated Homefinder of Colorado.

Home Remodeling Tips - Where to Get the Most Bang for Your Buck

Are you a homeowner? If you are, and you have been for a while, you are probably considering remodeling. If you are looking to sell, it might be a good idea to remodel the home, and raise the value. Money doesn't grow on trees, so, of course, the average homeowner is going to try to get the nicest changes done with minimal cost. Saving money is important to a majority of people, but that doesn't mean you don't want to get a cheap remodeling job done.

Real estate is a big business, and if you don't do things right, you could over-invest. Remodeling could be for one room, just the outside, or the entire property. Hiring a quality professional is one way that you can get a good job done at an affordable price.

According to the Federal Trade Commission (FTC), homeowners should be aware of the scams of so-called contractors, architects, and designers. The FTC warns about these red flags that your hired help may be running a scam:

• Offers you a discount for finding other customers


• Just happens to have materials left over from a previous job


• Pressures you for an immediate decision


• Only accepts cash payments


• Asks for all the money up front


• Asks you to get the required building permits

Those are some of the signs that you should walk away from the deal. Sometimes these con-artists will also try to get you to borrow money from a lender that they suggest. The worst case scenario of a home improvement load scam could rob you out of house and home.

Precautions to Take
There are several precautions that you can take to avoid being taken advantage of. Interview your prospective contractors carefully. The FTC suggests that you ask about the length of time they have been in business, license details, permit laws, and insurance offerings.

One other, very important suggestion is to ask for references. You should not only collect a list, but you should check those references. Ask these references about the quality of the job and service. Question them as to whether or not there were surprise expenses, and other problems.
Make sure that your payment terms are clear and agreed upon before they start. Some local laws do set limits on how much higher the actual cost of a project can be from the estimate. Find out the laws in your area, and make sure they are followed. Don't pay in full until you are satisfied with the remodeling work.

Article contributed by Colorado's Fort Collins real estate service, Automated Homefinder.

3 Quick Landscaping Tips to Make Your Home Shine

Selling a home would always be easier if the home looks as attractive as it is well constructed. The esthetics is always very important when it comes to the real estate. You could compare this with the packaging of an expensive gift - it if often that the cover is an important as the gift itself. This is why most real estate agents typically advise the owners before selling a home to pay sufficient attention to the overall packaging of the house - both inside and outside.

The outside is vital because that is what the buyer sees first, and they say "you never get a second chance to make a first impression". This would determine whether or not they would still want to pursue the matter with your house. Hence, some quick landscaping would be great before selling a home, as this would not only attract buyers, but also give the home a good "curb appeal".

3 Top Landscaping TipsThere is a lot you could do on the landscaping aspect. However, this time you would need something that is not very expensive, yet it is quick and impressive at the same time.

Here are some great suggestions:

1. Spruce up the gardenYou could just run the lawnmower over the lawn, and then create a edge with the flowering plants of the season enclosing the lawn into a bright rectangle of flowers. Flowers always create an welcome impact on the eye. In case it is too much trouble to make a bed of flowers, you could just add potted plants around it in a similar manner. You could then take the pots with you after the same of the house.


2. Fencing You would be surprised how much fencing would improve the looks of the outside of a home. You could use synthetic fencing materials which are less expensive but no less impressive looking to highlight the front yard. You would need to judge at what height the fencing you look most attractive. Alternatively, you could build fencing with hedge plants which would look as impressive, if not more.


3. Clean upIf you could nothing else for whatever reason, you could simply clean up everything both in the front and back yards. You would need to pay special attention to the driveway asphalt, gutters, and downspouts. Cleanliness by itself has a great impact on the value of real estate.

Besides the above, you could also clean the facade of the home, the garage, paint the windows, polish the door and window knobs or completely replace them, among other things. It is important before selling a home that you ensure everything looks new and inviting. This would not only increase the real estate value of your property, but also have it sold fast.

Contributing author -- Cherry Hills Cherry Hills real estate company - Automated Homefinder.

Buying Real Estate & Getting a Home Loan: What are Discount Points?

Are you buying a home and need a good home loan? Before you go for shopping for the best mortgage you would need to understand what these offer and how you could get the best possible offer. For example did you know that you could lower your interest with discount points?


What Are Discount PointsDiscount points are basically prepaid interest. Normally these points represent one percent of the loan and the maximum point you could avail of would be four. The points are usually exchanged for lower interest for the mortgage home loan, though some use it for negotiating other terms as well. The means you could bargain for better terms if you could pay an amount of extra (up to) four percent of the total home loan.


The discount point negotiations usually are applicable for those who have less than perfect credit history. This is a way of making up for the lacking in certain aspects regarding the credit records. Hence, before buying a home you should take your time to research well regarding the basic terms and conditions that a mortgage would impose and what you need to do to qualify for the best home loan.


Why Pay Discount Points?If you have a good credit record you do not need discount points. However, if the credit record is not that sound, then the discount point might become a pre-requisite for the mortgage home loan. If your credit is just so-so then it would depend on the lender and your negotiating power whether you would have to pay or not the discount points.
The advantage of paying for discount points even when you have a perfect credit record is that it may bring you some relief in terms of lower interest rates or other similar benefits. Find out from different lenders what the discount points would offer you in terms of getting a lower rate. Also you would need to find out how much leverage the discount points can give you in choosing the mortgage home loan lender.


When to Avoid Discount PointsBe careful that you do not pay for discount points without having any real benefit from the payment. If the benefits are not worth it then it better than you avoid paying anything extra for the mortgage home loan. It is good to know that these points are tax deductible but this benefit by itself might not be sufficient to justify buying discount points.
Good background research would help you find out the best rates offered by different lenders so you could avail yourself of the best possible mortgage for buying a home.


This article was provided by Automated Homefinder -- a Castle Pines real estate company.