Home Buyers Guide: What to Check in a Final Walk Through

What an exciting day; the day you close on your new home! A few days before, your Realtor had called to schedule the date and time of the final walk-through. You thought, "This is great! I needed to check the paint color in the bedroom and measure the windows for blinds." But that is not what the final walk-through is for. This is the last opportunity for you to see the home prior to closing. It is an appointment not to be missed or glossed over. It is a time to stay focused on your investment and examine the condition of the property one last time.

The purchase agreement that you sign in the state of Minnesota requires the seller to warrant that the central air conditioning, heating, plumbing and wiring systems on the property are in working order on the date of closing. It also insures you the rights to a "walk-through" review of the property prior to closing. This is not something to forego.

Last year there was a news report of first-time buyers who headed with all of their belongings directly to their new home after closing. They intended to move right in and enjoy their dream home but arrived to find a nightmare. Sometime since seeing the home and writing a purchase agreement, a pipe had burst and flooded the entire home. They had considered the final walk-through unnecessary since they had just seen the home days ago. Now they were the proud but frustrated owners of a huge mess. Although they do have legal remedies for having the home repaired, these buyers would have been in a much better position if they negotiated with the seller prior to closing. Or in the case of this extreme damage, the buyers could have not signed the final documents to purchase the home.

Every buyer should do a final walk-through on the home as close to the closing as possible. I suggest to my clients that we schedule the walk-through immediately prior to the closing. We meet one hour before at the home to review the condition of the property and then go directly to the closing. Any problems are noted and I immediately contact the seller's agent so they have time to discuss the situation with their seller before our arrival.

The walk-through just prior to closing doesn't eliminate every surprise that a new buyer might face. But it significantly reduces the chance of closing on an unknown disaster. Here is a quick guide of some of the areas to consider during a final walk through

Final Walk-Through Guide

Double Check the Paperwork


**Are all work orders complete? Are you satisfied with the results?

Exterior Review


**Check for any changes to exterior since purchase agreement.

Plumbing Review


**Flush all toilets.


**Check all faucets for water pressure and temperature.


**Check operation of all appliances

Interior Rooms Review


**Check for any changes to interior since purchase agreement.

Electrical Review


**Check all lights, outlets, bathroom fans and kitchen fans.

Furnace and Air Conditioning Review

Attic and Basement Review


**Check for changes in any stained, damp or wet areas.

The final walkthrough should be done with a complete checklist and organized plan. (For a complete checklist visit www.terieckholm.com/WalkCheck.htm ). After a review of the home inside and out with a checklist will get you back to exciting part of that final walk-through...Will the couch look better here or there?

Real Estate 401 – The Option Period

The following article is not intended to provide legal opinions or advice, but only to educate buyers about the real estate buying process. You should always consult a lawyer before entering into a legally binding contract.

In Texas, the Termination Option, or the option period as it is typically referred to, provides buyers with an unrestricted right to terminate a contract to purchase property, for a specified fee within a specified number of days after the contract is signed by all parties. In layman's terms, the buyer has the right to say, "No thanks, I decided I don't want to buy your house after all." Since this is an unrestricted right, there need not be a reason for terminating or cancelling the contract. The buyer does pay for this unrestricted right to terminate. Some of the more typical amounts I see are in the $50 - $75 range, but I have seen both larger and smaller amounts. The fee can be credited to the buyer or seller at closing, generally buyers are usually credited with the fee if the sale is completed but it is a negotiable item. The length of the option period, in days, is also negotiable but typical option periods are in the 5-10 day length.

Sellers are motivated to keep the option period as short as possible, since they are basically taking their home off the market and can have the contract to purchase their house terminated for no reason at all. In this case they receive only the option fee, which is a comparatively tiny amount. Buyers do occasionally use the option period as a cure for buyer's remorse – the typical second guessing that buyers have after making a big purchase of any kind, but this is unusual in my experience. The option period is designed to be used as a time for buyers to have home, pest, septic and other inspections done and then renegotiate the price or negotiate for repairs if necessary. In this regard, a 5 day period is attractive for a seller but during a busy season, it can be difficult to get all inspections done and have time to negotiate before the option expires.

When the option period expires, if the seller and buyer have not agreed on specific repairs or price reductions, the buyer is agreeing to buy the house "as is", as long as any repairs originally specified in the contract are completed prior to closing. Negotiating during the option period is done via a form called the Amendment to Contract. Repairs and price reductions are written in the proper spaces on the form and then negotiation commences per the manner described in the previous article: Real Estate 301. Often, the negotiation is done verbally between the agents and then the agreed upon terms are written in on this form and signed by both parties. Often when terms are agreed upon, the seller will ask the buyer to waive any remaining option to terminate, this is also done via the Amendment to Contract. This is to prevent the buyer from coming back asking for further repairs or reductions after an agreement has been reached.

Sellers are advised to refrain from making any repairs specified by either the original contract or the Amendment until after the option period is over. Unless of course, the seller intends to complete the repairs even if the buyer were to opt out, or terminate the contract. A seller might complete all requested repairs only to have the buyer terminate the contract afterward. This is another reason sellers often ask buyers to waive the option to terminate.

The Amendment to Contract also contains places to extend the option period if necessary to complete negotions or inspections. Once the option period is over, agents and sellers (and buyers) can breathe a big sigh of relief. It is one of the last big hurdles that must be cleared on the way to closing. There are reasons that could result in the property not closing, and plenty of things that must happen to ensure that the closing will occur but most of the uphill work is usually over after the option expires. Check back later for the next article in the series – Closing the Real Estate Transaction.

Real Estate Rebates - Good News - Kentucky Changes Its Laws

In an effort to keep the home buying public up to date about receiving an un-advertised home buyer rebate the next time they buy, I have discovered that Kentucky now allows buyer rebates and incentives by agents under the following terms of Kentucky Real Estate Law:

Kentucky Real Estate Professional and the Law

NOTICE: On July 15, 2005, the Kentucky Real Estate Commission and the United States Department of Justice filed an Amended Final Judgment in federal district court. On July 13, 2005, the Commission filed emergency regulations. Because of this Amended Final Judgment and these emergency regulations, Kentucky real estate licensees may now offer any inducement or rebate, so long as it is disclosed in writing to the client or customer. Therefore, any portion of this book that references the inducement and rebate prohibitions found in the old versions of KRS 324.160(4)(m), 201 KAR 11:011, Section 1(5) and/or 201 KAR 11.121, Section 1(2) is now obsolete. Please refer to the Commission's website at www.krec.ky.gov for additional information on the Judgement and the new laws allowing inducements and rebates by Kentucky licensees. Please refer to the box at the top of this Legal Information Section for additional information on the Judgment and the new laws allowing inducements and rebates by Kentucky licensees.

Previously, I had mentioned in other articles that the states of AK, ID, IA, KS, KY, LA, MS, NJ, OK, OR, TN and WV had restrictive laws regarding incentives and rebates. As I further research these state laws, I have found things changing as the DOJ (Department of Justice) investigates and sues these states for their restrictive behavior regarding this subject.

Should You Refinance Your Mortgage Online

The Internet has opened up doors to make it possible to sell just about anything online, including refinancing. The good thing about this is that online there is more competition which usually translates to better deals for the consumer. So when searching around for a mortgage broker or bank make sure you jump online to see if you can get the best refinance deal there.

Often times, people are very concerned with sending personal information over the Internet. With all of the identity theft happening today, it is of great concern. However, there are some practical ways to safeguard your identity. First off, whenever you are looking into a company, verify their credibility with the Better Business Bureau. This will help you to find out how they have treated their customers in the past. Also, be sure that the company you are considering has a secure website. One way to be sure the company has a secure website, is when you log onto their site, the "http" will turn to "https". The "s" indicates the site is secure. A secure website ensures that efforts have been made to prevent hackers from stealing your personal information. One thing to keep in mind is that the "s" may not appear until you access a sensitive area of their site.

Speed is one advantage of online refinancing. There is virtually no need to make an appointment or coordinate schedules. The closing is the only thing that can not be done over the phone or via email. For someone who is extremely busy this is an ideal situation since little or no time needs to be spent in a mortgage office.

Another advantage online refinancing has is the competitive rates. Since there are so many companies competing for your business, chances are you will receive a low interest rate. Many sites will allow you to choose from various firms quotes. If you feel more comfortable with a specific company but another one is offering a lower interest rate you can ask if they will match their competitor's quote. In order to earn your business many companies will match their competitor's quotes.

Obtaining an online mortgage quote is quick and easy. You can simply go through the process from the comfort of your own home. An online mortgage also allows you to avoid uncomfortable meetings with overly pushy mortgage lenders. Often times, you are able to receive a lower interest rate through an online mortgage company, than you can with a traditional mortgage office. Here is a place to have a look at the current mortgage interest rates Sometimes, if you receive a single quote that is considerably lower than the others, you may want to take some precautions. If the quote sounds too good to be true, chances are it is. In order to avoid difficult situations, make sure that you are working with a reputable company.

For many people, online mortgage refinancing is wonderful. Consumers are turning to the internet to take care of their personal finances more and more. Therefore, many great deals, that can better your situation, can be found.

Pros And Cons Of 80 - 20 Mortgage Loans

The concept of 100% financing mortgage loans is becoming increasingly popular. These loan options give prospective homeowners the ability to purchase a home even if they do not have enough savings for a down payment. One popular mortgage options which enables the homeowner to purchase a home without making a down payment is an 80/20 mortgage loan. With this loan the homeowner takes out one loan for 80% of the cost of the home and another for the remaining 20% of the value of the home and is only required to come up with closing cost to purchase a home. This type of mortgage is appealing to many but it is important to consider both the pros and the cons of this type of loan.

Advantages of 80/20 Mortgage Loans

The major advantage of an 80/20 mortgage loan is the ability to purchase a home with very little money down. As previously mentioned, the homeowner only needs to come up with the money for closing costs because they finance 100% of the value of the home. This is ideal for prospective homeowners who have the ability to repay a loan but do not have sufficient savings for a traditional down payment. This is also ideal for homeowners who have enough savings for a down payment but prefer to use this money for other purposes.

Disadvantages of 80/20 Mortgage Loans

The major disadvantage of 80/20 mortgage loans is the uncertainty of the future. If the home loses value, the homeowner would have to come up with additional cash to repay the loan if he decides to sell or refinance the home. This is because the value of the home would not be sufficient to repay the original loan. In the case of selling the home after the value drops, the homeowner would not recoup enough money from the sale of the house to fully repay the loan. In the case of refinancing the home, the refinancing mortgage would be based on the appraisal value of the home.

Loans For Future Homeowners

One of the basic interests of the government is for everyone to have his or her home. This is why the APR's are so low for this type of loan, to make things easier for you.

You Have Made The Decision

Now what? We'll start off with the attitude. It's what governs the rest of your life. So, let us consider: Why are you buying a house? To make progress in your life, right? This feeling of progress should be burnt into each one of the cells in your body, so that you will not suddenly become fearsome when you go to see your would-be lender.

Never Lose Sight Of Your Objective

That's what will make you bold enough to go through every step of the negotiations of both the loan and the purchase of the house. But mind you, I said "bold", not reckless. Study every stage of the process in great detail so as to avoid unnecessary risks or, in the worst case scenario, take a calculated risk.

Calculated Risks

An example of these would be chosing a tight payment term, because you don't want it to go on and on forever. Another would be to take a loan to secure the down payment, having two payments instead of one, for the duration of the personal loan. These risks put you in a tight situation but, if you are committed, everything is possible.

We will continue to recommend the longer periods and an easier monthly commitment, but you must be aware that there are different choices available.

We Must Not Overlook The Security

This is something important, because the back-up of the loan is constituted by the house itself. So, the "only" thing that can happen is that you could eventually lose your home. But… Hey! It's all you've got! So get everyone at home to help.

Any idle person at home can very well do something to help with the domestic expenses. Children can help avoiding waste. Everybody must understand that you are all making an effort to be able to have your own home, and that is what counts now. With that in mind, make your calculations and go off, knowing that the rest of the family is backing you up.

Very Helpful

Having family backup is essential to allow you to keep a sense of assuredness when you go shopping, both for the home and the loan, since you will be a better negotiator. Good negotiators never lose. They are well prepared, knowing what there is to know about the product they are buying.

The Technical Stuff

We'll leave the technical stuff for your wise evaluation when you get your quotes and ask for a contract to see at home. Get yourself a magnifying glass for a couple of bucks and read the small writing. It's there to be read.

Mortgage Exit Fee Deadline Passes

Mortgage Lenders to reduce mortgage exit fees

In a victory for consumers, the Financial Services Authority's deadline set for mortgage lenders to reduce mortgage exit fees came and went last week, meaning lenders now have to slash fees, stick to the original fee or justify why they should be raised at all.

The FSA warned lenders in January that if they charge more than the exit fee originally agreed with the borrower, they will have to explain their position or face investigation. The new rules apply equally to people leaving their mortgage now or those who have been charged increased mortgage exit fees in the last four years and want to apply for a refund.

In recent years, mortgage lenders have been increasing exit fees originally designed to cover the cost of administration in an attempt to stop people from switching to cheaper mortgages and to supplement profits while maintaining low headline interest rates.

Mortgage exit fees more transparent

The FSA's attempt to make the mortgage exit fees more transparent has been welcomed by most experts, although some are warning that homeowners may face something of a struggle obtaining refunds.

Louise Cuming, head of mortgages at Moneysupermarket, said: "So far all of the decisions announced have been in favour of the consumer, representing a significant change from the earlier lacklustre response to the FSA's call to action. Although providers are now saying the right thing this is not the same as actually delivering on their promises."

Ray Boulger, technical manager at mortgage broker John Charcol, welcomed the deadline but was cynical that the consumer would have it all their own way. Although borrowers who have redeemed a mortgage in the last four years will have a "very strong" case for seeking compensation, he said that many homeowners will have discarded the mortgage documentation and are in a weaker position to make a claim for compensation.

"Around ten million mortgages have been redeemed in the last four years but the number of people who claim compensation will no doubt be largely influenced by the amount of media coverage this topic receives," he stated.

"However, I would estimate that the total compensation payable will be at least 50 million and probably in the region of 100 million."

Some experts believe that the decision will open the floodgates to homeowners wanting refunds worth 190 million and many borrowers are already preparing to make a claim. In fact, more than a million template letters have been downloaded from consumer websites to help people reclaim overdraft charges.

Melanie Bien, of Savills Private Finance, told the Times that lenders are concerned about the scale of claims they are likely to see regarding exit fees, "which may be why borrowers will have to make a claim themselves, rather than wait to be contacted by their former lender".

Mortgage payments rise

Interest rate rises and soaring house prices have added 120 to the monthly mortgage payments of first-time buyers, a new study has shown.

According to Nationwide, recent interest rate hikes added 45 to the monthly outgoings of a first-time buyer last year, while increased property prices added a further 75.

In order to reduce monthly payment, 34 per cent of new buyers now take out a home loan of 26 or more years, despite the prospect of being saddled with debt for many years.

Fionnuala Earley, chief economist at Nationwide, said: "As interest rates have increased to their highest level in over five years, the question of affordability again raises its head.

"House prices alone increased by just over ten per cent in 2006 adding almost 14,000 to the cost of a typical first-time property, but three interest rate rises in six months add considerably more to borrowing costs for this already struggling group."

Miles Shipside, spokesperson for property website Rightmove, has said that many new buyers are taking advantage of the rise in equity in their parents' homes in order to finance a deposit on a house.

Atlanta Georgia Real Estate

Atlanta, Georgia is among the rapidly growing cities in the United States. As the capital of Georgia, it is also the most populated in Georgia. After being the 1996 Olympics venue, Atlanta has been recognized in the international economy and has steadily continued to grow, according to Atlanta Georgia Real estate agents. The downtown area has seen a recent influx of homebuyers. Ever since IKEA set up office two years ago in Atlanta, it is obvious to see why many developers are investing in Atlanta real estate.

Atlanta is a charming city with the Blue Ridge Mountains in the north and the Atlantic Coastline in the east. Atlanta has ten counties and sixty cities. Home buyers usually opt for new homes in Cobb County, Cherokee County and Fulton County. Buckhead, in northern Atlanta, is one of the most affluent communities in the US. An Atlanta real estate agent can show you multi-million dollar condos and homes in this luxurious area. Atlanta, or 'Hot-Lanta' as it is fondly referred to, is the base for many Fortune 500 companies like Coca-Cola, Home Depot, UPS etc. The Atlanta real estate market has been cited as one of the top ten for real estate investors in 2007. CNN rates Atlanta as one of the best cities for retirement. The North Georgia mountain region is a great place for people looking for a vacation home or a second home.

You can find a Georgia real estate agent, new homes and home builders in the Atlanta Real Estate Directory, which has a huge database of home builders who assist home buyers who want to invest in Atlanta. The real estate agent's website can show you real estate listings in Atlanta, Georgia, and you can also ask for information or make arrangements for model home visits.

Most Atlanta Georgia real estate agents are members of the Northeast Atlanta Metro Association of Realtors, the Georgia Association of Realtors and the National Association of Realtors. Getting listed on a realtor's website enables them to send you listings regularly so that you can preview them. These realtors make your home buying experience a pleasant and smooth one since they have all the information on selling local properties, mortgages, and the best areas.

The Advantages Of Buying And Renting A Home

Buying or renting is one of the biggest decisions you will ever have to make. One of the advantages of renting is you will not have to take on a big debt, if you buy a house and you can't pay the mortgage you will lose the house and all the money you put into it. Another advantage of renting is less responsibility. If something breaks or something needs to be replaced there is no money coming out of your pocket. One last advantage of renting is less liability. If someone gets hurt on the property if it's no fault of your own, you don't have to worry about being sued.

When it comes to buying it also has its advantages. One of the advantages of buying is ownership of the Property. You can do certain things to a property you own that you can't do if you're renting. If you own a property you can paint the walls add tiles and change anything you want. This is not always the case if you're renting. Another advantage of buying is the building up of equity. The money you pay towards the mortgage can be use if necessary to pay off other expenses by using some of the equity.

One last advantage of buying is paying off the mortgage.

When you pay off the mortgage the largest expense you have will be gone. If you don't have to pay mortgage any more it can free up a lot of money to do other things. Buying and renting both have their advantages, ultimately its witch advantages you find more desirable that will determine your decision in the end.

Drawbacks of Interest Only Mortgages

The number of Interest only mortgages has increased in recent years. They provide an opportunity for people to take out a mortgage loan and pay the minimum mortgage repayments possible. However they have been criticised for increasing the total repayment costs to borrowers. The desirability of an interest only mortgage will to some extent depend on your circumstances. However if you are thinking of taking out an interest only mortgage then it is worth bearing in mind these potential problems.

1. You will end up paying more interest payments over the course of your mortgage term. With a standard repayment mortgage the value of your debt diminishes therefore the interest payments decline as the debt diminishes. At the end of your mortgage term, the interest on the debt will be quite small. With an interest only mortgage all your monthly payments do nothing to reduce your debt.

2. Negative equity is more likely. When house prices fall homeowners might be more likely to experience negative equity. With a standard repayment mortgage the value of your debt diminishes making negative equity less likely.

3. Alternative investment schemes can be more risky. In the 1980s many took out endowment mortgages, these are similar in principle to an interest only mortgage. However the investments proved to be generally unsuccessful and so many mortgage owners were left with significant shortfalls. Relying on an alternative investment plan can leave you exposed at the end of the mortgage term because you may not be able to pay back the mortgage loan. It may mean you have to take out another mortgage and be paying into your retirement.

4. Interest only mortgages are more sensitive to changes in the base rate. Taking interest only mortgages means that any change in the base rate will have a correspondingly bigger impact on your disposable income. This has proved to be a problem recently in America with interest only mortgages proving a major factor in record defaults on sub prime mortgages.

5. Interest only mortgages may have a penalty charge if you wish to switch to a conventional repayment mortgage. Check small print of deal as it may be a good option to consider switching if you were able to afford higher payments in the future.

Despite these drawbacks of an interest only mortgage it may still be desirable for many first time buyers. Interest only mortgages have become a workable option for first time buyers to get on the property ladder.

7 House Hunting Tips: Buying Your First Home Together

Congratulations on the decision to buy a home. Isn't it exciting? Shopping for the perfect place to call your own and knowing that there aren't any lease agreements, issues with the landlord or the recurring feeling that you are paying someone else's mortgage when you could be paying you own is a terrific feeling. In this article, you will learn 7 very important tips to house hunting as a couple.

Choose a location. When you buy a home with your spouse, there's a lot to consider. What, if any, length of a commute would the two of you be comfortable with? Do you prefer the bustling city life with access to all of the amenities or would you enjoy a quiet country setting? When choosing the location of your new home, these are all important factors. In addition, price is an issue for most couples and rural areas often provide the most square footage and/or acreage for your money.

Discuss your budget. In most cases, a home is the largest investment you will make. When it comes to buying, your budget will be the single greatest determining factor in what type of home you will be able to purchase. Credit history is important, but most lenders offer programs for those with a few blemishes in their financial past. The bottom line is that your budget can make or break your dream of home ownership, so it's a good idea to sit down as a couple and write out your monthly income and expenditures. If you currently rent, you can leave this out of the equation because you will stop renting when you buy a home and the money that you are now using to rent can be applied toward a monthly mortgage.

Review your credit reports. When you are ready to approach a lender and request a mortgage loan, you will want to make sure that your credit report is accurate and, besides, it never hurts to know your credit score. If you find any inaccuracies, now is the time to correct them. You may find that derogatory comments on a credit file could result in high interest rates or, in some cases, the denial of your loan application. Make sure to check your credit report from Equifax, Experian and TransUnion at least two months prior to applying for a loan.

Talk about what you want. When you purchase a home with someone else, your desires aren't the only ones that matter anymore. There's another person in the equation now and their choice of home features is equally important as your own. If you are just starting out, a small home may be fine for now. But, if you plan to have children in the near future, you will need to think about whether or not a small home will be ideal for a growing family. The number of bedrooms and bathrooms will become an important choice and careful planning now could save you a lot of drama later.

Be willing to compromise. Ok, so you want a private office and your spouse wants a fireplace. But what can you do if the homes that you both like simply don't have these two amenities? Do you walk away from what otherwise may be your dream house or do you compromise? In most cases, the latter would be the most obvious choice. If it's a fireplace that you want, you can purchase a freestanding fireplace that looks just as beautiful as the real thing and you can create an office nook in one of the spare bedrooms.

Make an offer. If you are trying to sell a home, every realtor will tell you that you will likely receive offers that are lower than your asking price. When someone lists their property, they are usually asking more than what they will actually accept and this means you have some negotiating to do. When you find the home that you like, make an offer that is somewhat less than you can comfortably afford. This way, if the current owner comes back with a counteroffer, you can still accept and be within your budget.

Move in. This is the final step and, in most cases, the most fun of all. Now that your house hunting is over and all of the loan papers have been signed, it's time to move into your new home. Ok, so maybe moving day isn't the greatest but all of that hard work is going to be worth it in the end. When you can stop throwing your money away on rent and start building equity, both you and your spouse will be happy homeowners.

Adjustable Rate Mortgage Refinancing – Managing the Risks

Many homeowners shy away from Adjustable Rate Mortgages because they associate the risks with a chance of loss. While it's true that Adjustable Rate Mortgages are riskier than fixed rate loans, this risk is manageable and can save you thousands of dollars. Here are several tips to help you decide if Adjustable Rate Mortgage Refinancing is right for you.

What Are The "Risks?"

The risk comes from the possibility for payment shock when your lender adjusts the interest rate. Adjustable Rate Mortgages are tied to a financial index and when the lender changes your interest rate it will based on that index plus margin. Margin is the lender's markup of your interest rate for their profit. Your loan is adjusted at regular intervals specified in your loan contract, often 12 to 24 months. The risk of payment shock comes from the lender raising your monthly payment because the interest rate goes up and your budget cannot support the higher amount.

Many homeowners who abuse the riskier types of Adjustable Rate Mortgage loans ultimately lose their homes because they do not fully understand how these loans work. Adjustable Rate Mortgages can save you money if you take advantage of their built in safety features and use the loans properly. Adjustable Rate Mortgages have safety features called "caps." Caps limit the amount your interest rate and payments go up when the lender adjusts your payment, and over the lifetime of the loan. You can learn more about Your Adjustable Rate Mortgage options, including costly mistakes to avoid with a free mortgage refinancing tutorial.

Charlotte North Carolina Real Estate – A Win - Win Situation

Charlotte North Carolina real estate is a thriving market. Charlotte is the largest city among the Carolinas and is growing at a very fast pace. Roughly 20,000 people relocate to Charlotte every year. The cost of living in Charlotte is below the national average. It has everything that both young and old might seek with access to very good schools, great residences and good employment opportunities. Residents of Charlotte enjoy living here. Charlotte was voted among the ten best cities to live in the United States. It has one of the largest banking centers in the US, with some of the best-known Fortune 500 companies settled here. This makes it a great job market and as a result, ensures that there is a booming real estate market in Charlotte.

Charlotte boasts a high quality of life. The weather is mild without extremes and there are four seasons, with a fabulous fall. The area is green with foliage, most of the residents enjoy outdoor life with golfing, fishing, sailing and professional sports. Just a few hours from the Great Smoky Mountains, beaches and Blue Ridge Mountains, it is a pleasure to live in Charlotte.

You will find that websites related to North Carolina real estate agents contain all the information you need about various parts of Charlotte. It is a good idea to visit the website to request real estate agent assistance because these contain valuable information about buyer tips, property and Charlotte real estate agent listings. Moreover, signing up with these websites keeps you updated about new listings and keeps you notified about relevant details that match your specific search criteria by email. It saves a tremendous amount of time. Some Charlotte real estate agents even compare your home search with other listings in the area you desire.

Real estate-wise, Charlotte has nine zones - uptown, northeast, east, old south, new south, southwest, northwest, Lake Norman and Lake Wylie. The property around the lakes are said to be the most valuable. The northeast parts are less expensive. There are many exclusive buyer agents in Charlotte who earn their commissions from buyers. They work hard at getting the best price for their customers. Exclusive buyer agents in North Carolina are enrolled as members with the National Association of Exclusive Buyer Agents.

If you want to enjoy great weather, good people, good culture and a nice work environment, consider getting in touch with a North Carolina Real Estate Agent.

Mortgage Refinancing Online - Watch Out For Hidden Fees

If you are refinancing your mortgage loan on the Internet there is a hidden fee you are likely to encounter that could cost you as much as $1,300. You will be required to pay this fee simply because you typed your name and address into a form on the wrong mortgage site. Here are several tips to help you avoid this unnecessary garbage fee when refinancing your mortgage online.

The Internet can be an excellent resource for finding a good deal on your mortgage loan. The problem with shopping for a mortgage online is that it can be difficult to determine who the actual mortgage lender is. There are plenty of websites out there masquerading as mortgage lenders, even well known websites with catchy phrases you see on television. These sites actually have absolutely nothing to so with mortgage loans. They only collect your personal information and sell it to mortgage lenders and brokers.

The bad news is that the mortgage lenders and brokers don't pay the fee. The fee these company pay for mortgage leads is added to your settlement costs when closing on the mortgage. The fee appears on your Good Faith Estimate as a "Computerized Loan Origination Fee" and in the case of one well known "mortgage website" that advertises on television, it will cost you as much as $1,300. This is money out of your pocket just because you filled out a form on the wrong website.

How can you avoid paying Computerized Loan Origination fees when refinancing your mortgage loan? Before you fill out any contact forms on the web read the fine print. You'll find the information in the Licensees and Disclosure section on many "mortgage" websites. If you visit a site that does not have this disclosure statement, consider scratching that site off your list because they probably represent a special category of mortgage lender that is exempt from the Real Estate Settlement Procedures Act. You can learn more about your mortgage refinancing options, including costly mistakes to avoid with a free mortgage refinancing tutorial.

Cheap Home Improvement Loan for Enhancing Home Value

You surely would like to complete improvement works on your home at a low cost. And if you intend to take a loan, it should come at cheaper rate so that you can repay the loan easily without burden. Cheap home improvement loan is a perfect choice. Through cheap home improvement loan you can finish improvement works at low cost. Bad credit people also are fully eligible for cheap home improvement loans.

Cheap home improvement loan means that loan is offered at cheaper rate of interest. This cheap rate is approved for the borrower who offers some security of the loan to the lender. The security may consist of a valuable asset like the home of the borrower. Cheap rate of interest can easily be availed if the borrowed amount is kept below equity in the property placed as collateral as it secures the loan more. Usually lenders approve £5000 to £75000 as cheap home improvement loan. The rate of interest can go down for a borrower who has excellent record of timely paying previous loan. So if your credit history is excellent or good you are sure of getting a cheap home improvement loan at cheap rate of interest.

You can choose to repay cheap home improvement loans in larger duration that ranges from 5 to 30 years. So on opting for larger repaying duration your monthly payment for the loan installments gets reduced substantially and you repay the loan easily as cheaper rate has already reduced the repayment burden.

Bad credit is usually no problem in getting cheap home improvement loans but the rate of interest may be a bit higher. However the rate will still be cheaper as compared to any unsecured loan as you take the cheap home improvement loan against your property. Compare different lenders for interest rate and apply online for fast and cost free loan approval.

Mortgage Refinancing – Watch Out for Teaser Interest Rates

Mortgage lenders often use teaser interest rates to hook unsuspecting homeowners with unbelievable low mortgage rates. These teaser rates and the mortgage payments they are based on are only valid for a short period of time before the contract mortgage rate takes over. Here are several tips to help you avoid payment shock from a teaser rate when refinancing with an Adjustable Rate Mortgage.

Mortgage lenders frequently use teaser rates on Adjustable Rate Mortgages to get their phones ringing. The problem with these loans is that many homeowners think the teaser rate is their contract mortgage rate and don't understand that the teaser is only valid for a short period of time. At the end of the introductory period, often only six months, the lender adjusts your mortgage to the contract rate and the payments go up. For homeowners who have budgets stretched to the limit before the adjustment, this results in payment shock.

Teaser rates are a largely responsible for the soaring number of foreclosures in the United States. Homeowners who do not fully understand their interest only or option Adjustable Rate Mortgages overextend themselves and cannot afford the payments when the lender resets their payments. When used for the short term Adjustable Rate Mortgages have very little risk and offer low payments; however, if you have little tolerance for financial risk you should avoid using Adjustable Rate Mortgages for the long run.

You can learn more about your mortgage refinancing options, including costly mistakes to avoid with a free mortgage tutorial.

Intellectual Property Law – EU – Commercial Litigation - Patent Infringement in the UK by Defendant

The case of Celem SA and Another v Alcon Electronics PVT Ltd [2006] concerned jurisdictional issues relating to patent infringement. The claimant companies were engaged in the manufacture of components for the electrical induction heating market, and were the holders of a European patent in relation to certain capacitors.

The defendant was an Indian company also engaged in the manufacture of products for the electrical induction heating market. The claimants had alleged various breaches of their UK intellectual property rights by the defendant. They argued that the manufacture of certain capacitors by the defendants infringed the UK patent. Furthermore, the claimants' particulars of claims made numerous allegations in relation to the importation and distribution of the infringing articles within the United Kingdom.

The claimants were granted permission to serve their proceedings on the defendant in India. The defendant made an application which challenged the jurisdiction of the English courts. As a result, two questions fell to be determined:

§ Whether there was a serious issue to be tried; and

§ If so, whether the court had been right to exercise its discretion in accepting jurisdiction.

The application was dismissed.

In the instant case, the documentary evidence connected to the parties had demonstrated a number of serious issues to be tried in relation to the alleged infringements occurring within the United Kingdom. In addition, given the Indian court's reluctance to entertain a claim which sought to protect UK intellectual property rights, it appeared that the only forum in which the claimants could protect those rights was the English courts.

In those circumstances, it was held that the court had been right to exercise its discretion in accepting jurisdiction.

If you require further information contact us at enquiries@rtcoopers.com

Visit http://www.rtcoopersiplaw.com or http://www.rtcoopers.com/practice_intellectualproperty.php

© RT COOPERS, 2007. This Briefing Note does not provide a comprehensive or complete statement of the law relating to the issues discussed nor does it constitute legal advice. It is intended only to highlight general issues. Specialist legal advice should always be sought in relation to particular circumstances.

Over 100% Financing For Home Improvements

Though the loan market has become increasingly competitive, this is not the reason why lenders are offering this kind of loans. Equity and the way it generates is the main responsible for these benefits you can obtain through certain cash-out refinance home loans. And the reason for this is rather simple and uncomplicated.

Home Equity Generation Explained

There are mainly two ways how equity generates. One is by the continued repayment of the mortgage loan that reduces the debt guaranteed by the property and thus increases the difference between the property's market value and the overall debt that the property secures (Definition of Equity).

The other one is an increase on the property's market value due to different factors that also increase the difference between the value of the asset and the amount of money it guarantees.

In any case, home equity generation doesn't occur from one day to another, it's a slow process but a continued one. Yet, since equity provides a lot of benefits, it is worth the time it takes.

Home Improvement And Equity Generation

Home improvements tend to increase the value of the property and thus contributes to increasing the available equity on your property. However, the actual increase doesn't take place till the home improvement project is finished and thus, there is no additional available equity on a property till then.

Nevertheless, when a lender is considering approving or denying a cash-out refinance mortgage or a home equity loan, the fact that the money will be used for making home improvements will contribute to increase your chances of approval because the loan will be used to increase the value of the property that will be used as collateral for the loan itself.

Secured Loans for Home Improvements

Thus, whenever you are seeking a secured loan for home improvements it is important that you state to the lender that the money will be used for home improvements. The lender might have special loans designed for home improvements that can provide you funding over the actual value of the property.

This means that you can obtain over 100% financing of the value of the property because the lender knows that as soon as the project is finished, the value of the property will exceed the amount owed and thus, the extra percentage will be reduced to a number equal or below 100% thus dissipating the additional risk.

And that's the reason why more and more lenders are offering home equity loans and refinance home loans with higher loan amounts than the actual market value of the property being used as collateral. The temporary extra risk that the lender is taking will be compensated with a slightly higher interest rate though.

Sarasota Real Estate Investing

How many times have you said that you want to enter into Sarasota real estate investing, but after how many months where are you, still haven't invested any property at all?

If you really want to enter to Sarasota real estate investing or to any real estates, knowledge, action and determination are very important factors. These factors are needed to anyone who plans to invest in Sarasota real estate.

Knowledge is an important factor in real estate investing. You have to be prepared in entering to real estate investing. You have to gain the necessary information, and you can do this by researching. Do a lot of research. You have to research about the market, research for properties, and so on. You can get information with lots of books and even through the internet. If you are truly determined, then you can do everything just to obtain the information you need in Sarasota real estate investing. There are actually plenty of ways to have that information; all it takes is the eagerness, determination and action to obtain it.

Soon as you gain the knowledge, you can now search different properties or houses for sale, better to take time to look at them all. Jot down the positive and negative points of each house while you're into the house tour. The information you listed can be useful in deciding which property to invest.

After searching for a lot of houses, it is time to choice which property that fits your qualifications. As soon as you pick out the house you want to invest with, making offer is the next step to do. Indeed, there are lots of people who want to invest in real estate, but all they do is research and research, they are afraid to do the next step. You see, if you really want to be successful in Sarasota real estate investing, action is very important. After all the preparation and learning, it is time to make it happen. Make an offer. And close a deal. These should be done to make the plan of yours in investing to Sarasota real estate happen.

Let us say for an instance, if you want to lose weight, determination and action are needed. If you want lose that unwanted weight, you have to be determined and take that into action. If you said you won't be eating chocolates, pastas and sodas and just replace it with fruits and vegetables, then do not let yourself be tempted with chocolates, pastas and sodas. In doing so, you are making that losing weight to happen.

It is like in Sarasota real estate investing, if you are determined to invest, make it happen. You have to make your plan into action. If you already gave a lot of your time in real estate investing, then you do not have to be afraid, it is time for you to come out of your shell and make that investing happen.

If you finally found a good deal, grab it and go for it. Do not just let yourself feel fearful and suddenly needing more time. You've been spending much time and effort in Sarasota real estate investing, so you deserve to collect the reward.

Why Invest In Real Estate?

Wow, it was another exciting month in Calgary's Real estate Market. Real estate prices are continuing to rise like there is no tomorrow with a bit of assistance from the volatile stock market. Earlier this week when I had tuned into the business news all I could hear is how the stock market has done it again. The biggest drop in one day since 9/11, leaving people staring like deer in a headlight and asking the question of now what? The stock sell off had started in the Asian markets, continuing to Europe and finally it finished in the North American market. Millions of people worldwide were going to bed not knowing what they're going to face the following day. Should I sell my investments now to minimize my losses or wait and maybe it will recover in the long run?

Over the last couple of years in Calgary, more and more people had decided to inject some of their savings into the real estate market. Especially after the dot.com bust in the early part of the millennium. Including myself and many others were getting tired of the continuous fluctuations of the stock market. It was extremely stressful to wake up everyday and hoping that nothing bad is going to happen in the stock market and not being able to control my investments differently than buy or sell. As history has already provided many examples to us about how a company could disappear overnight and completely wipe out your investments, yet I have never seen a house disappear from the face of the earth so suddenly. If it did by some unfortunate event, usually an insurance provider has reimbursed the owner.

comes from directly applying the power of leverage. It doesn't matter what kind of business we are talking about. If you want to be successful, you will need to find a way of multiplying your knowledge, power and time. If you choose to invest in stocks, you will get your returns one on one. Meaning that if you invest $1,000 and that particular stock goes up in value by 10% your ROI will be $100. When you put your dollars into a piece of real estate, the banks will usually require 25% of your own money and they will put up the remaining 75% of the purchase price for you. The beautiful part of this arrangement is that if the purchased real estate increases by 36% like it did in 2006 than your ROI will be 4 x 36%. Now that's the true power of leverage.

Real estate values most definitely won't be increasing by 36% forever. However even if we make a very conservative assumption of prices to only increase by 6% annually than you are still anticipating a 24% ROI. In many of my client's opinion it sure beats any of the G.I.C. investments available today.

Right, but I am not cut out to be a Landlord. What if the tenant doesn't pay or damages the property? What if...? Excuses can be created in every situation in our lives just to rationalize why not to do something. Sometimes to move ahead in life, we need to get a little more comfortable with being uncomfortable when we decide to get involved with new ideas. However, if you prefer not to deal with tenants you can completely circumvent that challenge. Once again, if we examine some of the other evidences that successful people have left behind we can easily find the solution to this problem. You not only need to leverage

Piece of mind – is the first thought that comes into my mind when I think about real estate as an investment vehicle. Security, predictable future and leveraged growth are the number one reasons why many choose to invest in real estate. According to Andrew Carnegie "Over 90% of all millionaires become so through owning real estate". Now that's a powerful statement. Let it sink in for a minute. Even if you are somewhat skeptical about the future of Calgary's real estate market we cannot pass by such an important statement and not to acknowledge it as part of a major footprint of success.

Real estate values go up for many reasons. The number one cause of increasing real estate prices is the scarcity of supply or where the demand of the influx of people to a geographical area will outperform the supply. The good news for us in Alberta is that our provincial government has done such a great job of creating an economical atmosphere for business that there will be new business opening up and moving to this province for many more years to come. Not to mention the billions of dollars of projects already in the books that requires a constant feed of new employees from outside of Alberta.

Why real estate vs. the stock market? Unfortunately, many media outlets don't understand the concept of the power of leverage when it comes to calculating actual ROI (return on investment). Every time I look at a news clip or read an article in the paper where they are comparing the performance of real estate prices to the stock market, I am ready to kick something to calm my frustration. The secret of many successful investors. your money, you will also need to leverage your time and knowledge by hiring the right professional to be on your team of success. Can you imagine Donald Trump taking phone calls at 2:00a.m. about a leaky toilet? Or personally collecting his rental cheques every month from his tenants? I didn't think so. So, why do you think that you need to do it all alone? Why not do exactly what some of the major players in this investment business have already done? If it worked for them why wouldn't it work for you?

It's absolutely essential to hire the best professional experts on your team of advisors to propel your investments to the top and not to leave anything to a chance. Some of the professionals you should absolutely consider on having on your real estate team are Property Managers, Accountants, Contractors, Lawyers and knowledgeable REALTORS® who will not only advise you but allow you to stand on their shoulders and push you up to achieve your goals.

I truly believe that everyone can succeed at investing in real estate if one puts their mind to it. But it's up to you to decide and take actions. You owe it to yourself to further explore the possibilities of investing in real estate. As you are probably aware, real estate is and has been a solid blue chip performer over the long term (after all they're not making any more land!).

Mortgage Refinancing – What You Need to Know Before Taking Out a New Home Loan

Mortgage refinancing can be a stressful process for anyone. No homeowner wants to pay too much or accept unfavorable terms for their loan. Here are several tips to help you comparison shop and avoid the perfectly legal hidden fees mortgage originators use to boost their profits.

The most important hidden cost you need to avoid is Yield Spread Premium. Every mortgage in the United States is sold as a retail product and includes this hidden markup. The good news is that homeowners who learn to recognize how mortgage originators mark up mortgage interest rates can avoid paying this unnecessary mortgage interest and save thousands of dollars.

The first thing you need to know when shopping for a mortgage is what wholesale mortgage rates are at the time you are applying. You can find the approximate going mortgage rate on Fannie Mae's website under the weekly yield. The weekly yield is posted with Fannie Mae's press releases. The mortgage rates posted on Fannie Mae's website are a week old but still give you a good idea where mortgage rates are headed. Now that you have an idea of what wholesale mortgage rates are you need to find a mortgage company or broker that agrees not to mark up your mortgage interest rate.

When shopping for mortgage companies tell the loan representative you will pay a reasonable origination fee for their services and all necessary third party settlement charges, but will not pay any markup of your mortgage interest rate by their company. A reasonable origination fee (often called origination points) is no more than 1.5% of your loan amount. The markup you are trying to avoid is called Yield Spread Premium and if you unknowingly agree to pay it you will spend thousands of dollars for your mortgage unnecessarily.

You can learn more about refinancing your mortgage without spending too much for the financing with a free mortgage tutorial.

How To Advertise A Property For Sale

Selling your home without using a real estate agent is not difficult but as many buyers as possible need to know that your property is for sale if the process is to be a success. The key to getting the message out to buyers is an effective advertising campaign.

Homeowners who chose to go down the private sale (FSBO) path should consider the advertising tools that traditional real estate agents use and think which ones would work best for their property. Sellers should also remember how much they are saving in commission and commit to investing part of this in advertising, a rule of thumb is to allow 1% of the property value for promoting the property. Scrimping on advertising is a false economy, if buyers don't know that the property is for sale the property wont be sold and you may end up having to pay far more in commission to a real estate agent.

The following methods are often used by homeowners looking to sell their homes and by professional real estate agents:

Internet listing


The internet has revolutionised how we buy real estate. Buyers are able to view thousands of potentially suitable properties from the comfort of their own home 24 hours a day. In today's real estate market an internet listing is an essential part of marketing a property for sale. Good FSBO websites will let you write a detailed description and post pictures of your property.

Internet research enables buyers to make a short-list of potentially suitable properties, which they will follow up with a visit. If a property is not listed on the web it may not even make it onto a buyer's short-list.

For Sale sign


Although the internet has made a huge impact on the real estate market one of the most effective tools used to advertise a property for sale is one of the oldest. A simple but well-designed sign in the front yard lets buyers know that the homeowner is looking to sell.

More than one third of properties are sold to buyers who learnt that the property was for sale through a for sale sign. Many buyers drive around a neighbourhood that they are interested in, getting to know the area and looking at for sale signs. If your home is for sale and you don't have a sign you've already excluded one third of potential buyers.

Newspaper Classified Adverts


Despite the rise of the internet newspaper classified ads are still a popular way of advertising a property for sale.

Classified ads work well with an internet listing as only the basic details of the property need be included in the ad with buyers referred to the internet listing for more details and photos. As charges for classified ads are usually based on the number of characters or words, referring buyers to the online advertisement can save the seller money.

Flyers


Many buyers come from the local area with most moving less than 7km away from their previous home. These buyers can be reached by distributing well-designed flyers that help spread the word about the property for sale.

A letterbox drop in the streets surrounding the property helps spread the word. Posting flyers in letterboxes of smaller properties targets buyers looking to upgrade to a bigger property. Posting flyers in letterboxes of larger properties targets empty nesters looking to move to a smaller property. This also creates great word of mouth advertising and may attract buyers looking to move closer to family or friends.

Sellers should think about where their target market goes and make sure that a flyer is displayed prominently. Local stores, cafes or libraries often have notice boards where flyers can be pinned up. Local businesses sometimes have staff looking to buy so sellers should find out if their local hospital, school or large company has an accommodation officer or notice board to display flyers.

Word of mouth/networks


An often overlooked but very powerful method of advertising a home is to use existing networks. Sellers should make sure that all their friends and relatives know that their home is for sale and get them to pass the details onto their friends.

Here again an internet listing can aid the selling process. Some buyers may feel uncomfortable about approaching a close friend or relative to find out the asking price or may not want to risk offending them if they visit the property to find it is not to their taste. By viewing the property on the web buyers need only proceed if there is a good chance that the property will be of interest.

Landlords should tell their tenants that they are looking to sell and ask them if they might want to buy, after all they must like the property as they are paying rent to live there. It's amazing how many landlords prepare their property for sale by giving the tenants notice to leave when they may have been interested in buying all along.

Any homeowner who is serious about selling their property would be well advised to use all of the advertising techniques described above. By spreading the word to as many buyers as possible a seller is more likely to achieve a quick sale at a good price.

Not Only Mortgage Interest Rates Affect Your Payment

We all keep a close eye on mortgage interest rates when shopping around for a mortgage. After all, the interest rate on your mortgage has a dramatic effect on your monthly payment. Even a small difference in your mortgages interest rate can have a large impact over the life of your mortgage.

We would like this rate to be as low as possible, simply because the lower the interest rate the more buying power. However, there are several additional factors that will affect your interest rate. Some of these factors are completely out of your control, while others can be controlled.

Interest rates in the United States are controlled by the Federal Reserve (The Fed). The Federal Reserve adjusts interest rates up or down in an effort to keep inflation down, and the economy strong. The rate adjustments made by the Fed are one of the factors that are out of our hands. So there is no point in worrying about them.

Instead, place your focus on those factors that are within your control. First off, decide whether you prefer a fixed-rate mortgage, or an adjustable rate mortgage (ARM). An ARM will start off with a lower interest rate, but will rise or fall with the adjustments made by The Federal Reserve. A fixed rate mortgage has a slightly higher rate, but remains at that rate for the length of your mortgage leaving you protected against any interest rate hikes.

You may also have to pay discount points in order to lower your interest rate. Paying one point is equal to paying 1% of the amount borrowed. For example, if you were borrowing $100,000, paying one point would cost you $1,000.

The discount as a result of paying points will vary from lender to lender, but are usually around a quarter of a percentage point for every discount point payed. For example, should you pay one discount point your 6.50 interest rate would be lowered 6.25 percent.

Now before rushing to pay discount points in order to lower your interest rate, you must consider how long you plan to live in the home. Compute and compare the numbers both with and without the points. This will clearly show you which is the better deal.

Another option you can control is the length of the mortgage loan. You may choose a fifteen year mortgage over a thirty year mortgage. This fifteen year election will come with a lower interest rate than the thirty year mortgage. Bear in mind that the payments will be substantially higher as a result of paying your loan back over a much shorter term.

The best thing you can do when shopping for a mortgage is to help keep the offered interest rate down by staying on top of your credit report. The higher your credit score the more favorable interest rate you will qualify for. Be sure to obtain a copy of your credit report, check it for errors, and fix any mistakes to clean up any possible black marks. Make sure to pay your bills on time. It only takes a few late or missed payments to have a major impact on both your credit score, and on your interest rate.

Copyright &copy2007 Carl DiNello

Mortgage Refinancing Information – What You Need to Know About Yield Spread Premium

So you've never heard about Yield Spread Premium? You're not alone. The HUD Secretary was recently quoted saying that Americans overpay 16 billion dollars in unnecessary mortgage interest every year. If you're unfamiliar with Yield Spread Premium and you have a mortgage loan, you're contributing to this statistic. Here are several tips to help you pay less when refinancing your mortgage.

Yield Spread Premium is the markup your mortgage company or broker adds to your mortgage interest rate, often without telling you. Taking out a mortgage loan is very similar to purchasing a car. There is a retail market where mortgages are sold to consumers, and a wholesale market that provides the loans to mortgage companies and brokers. Just like a car dealership marks up the price of your vehicle, your mortgage company marks up your loan to boost their profits.

When you qualify for a mortgage interest rate, the wholesale lender that approves your loan provides a specific interest rate to your Mortgage Company or broker. The mortgage company marks up the interest rate you qualified for because the wholesale lender pays them a bonus for every .25% you agree to overpay. For every .25% you agree to pay over the mortgage rate you qualified, the mortgage company receives a bonus of 1% of your loan amount. This incentive is built into every mortgage loan sold in America. Not much of an incentive to keep mortgage companies honest is it?

The good news is that you can avoid paying Yield Spread Premium. Homeowners who learn to recognize this unnecessary markup can negotiate with mortgage companies and brokers for loans that do not include Yield Spread Premium. To learn more about refinancing your mortgage without overpaying, register for a free mortgage tutorial.

Aspen Real Estate - Advantages Of Using A Buyers Agent

I was recently looking for a second home in the Aspen real estate market.

When shopping for real estate, whether it's a first home, second/vacation home, commercial investment or raw land, it's almost always a good thing to enlist the services of a Buyer's Agent. I found a buyers agent available at Aspen Snowmass Homes.

What is a Buyer's Agent? To answer that properly, we'll have to take a look at the business end of the Real Estate Industry. At the top of the food chain is a Broker. This person has to have been in the business a number of years, and now has Agents that work for and under that Broker. The Broker makes money off of each Agent's commissions. In exchange, he provides office space, receptionist services, and may offer some advertising budget. If there is an affiliation with a larger national franchise, the Broker is the one who arranged that and is responsible for those costs as well.

The Agent makes a percentage of the sale. Generally speaking, that percentage, as established by industry standard, is 6 percent for improved property, and 10 percent for raw land. Of course, like any other contract, it is whatever is agreed upon by both parties, and what the market will bear. When an Agent secures a listing on a property, that is an exclusive right to sell the property. Generally speaking, the contract requires that the Agent/Broker will make efforts to advertise the home, show it, etc., and that they will be paid that percentage as their fee, should the house sell within the term of the listing agreement or to a buyer which they have produced. In order to provide fair compensation, sell more houses, and as a professional courtesy, when a Buyer comes from a fellow realtor, that (Buyer's) Agent will split the commission with the Listing Agent; Each will get 3 percent of the selling price of the home. This costs the buyer nothing.

Why, then, would you want the services of a Buyer's Agent? For starters, you'll then have an industry professional who knows what it is you are after, what your tastes are, what is and isn't acceptable to you, what your financial situation is, etc. This will save you a lot of time wandering around looking at properties that a realtor is trying to push. As Listing Agents stand to make the entire 6 percent for themselves, they're naturally more interested in persuading you to buy what they have in their own office. What you need is someone who's on your side, concerned with what YOU want. That's where the Buyer's Agent comes in.

Not only will a Buyer's Agent filter out the time-wasting listings that a realtor might have pushed on you, but they'll also be in your corner during negotiations. Of course, they don't get paid if you don't buy anything, so they're still going to want to make a sale. But if they already know you aren't going to pay more than X dollars for a house or other property, they'll be pushing hard to see to it that the Seller comes down to that price. It behooves you, then to not let the Buyer's Agent know the full amount you're able or willing to pay. You can always decide to come up, but you can't back the magic number down once the Agents (either of them) know what you're able to spend, if you decide to do so.

A Buyer's Agent can be any realtor you feel comfortable with, one that you trust who is knowledgeable and has some business savvy. Sometimes we become friendly with an Agent who has sold us a home before. That shouldn't be the basis for choosing that person as a Buyer's Agent. Find someone who you believe will be on your side, working for you and your best interests.

I came across such an agent years back, while looking for raw land in Southern California. I wanted to spend only a few thousand dollars. Every realtor I'd checked in with in the Joshua Tree area had summarily informed me that no such listings existed, that they had nothing under $10-15k. (Fact was, they didn't' care to be bothered for anything less expensive because their commission was 10 percent.) One lady heard me, and we went through the MLS search there in her office. Lo and Behold! A ten-year-old listing for 2 acres on a corner, with water, for a mere two thousand dollars!

Needless to say, I wanted the property. When the Selling Agent tried to jack up the price, she informed him in no uncertain terms that the listing was in the MLS, a public offer, and we had agreed to the full asking price. We closed the deal through the mail.

That goes to show the value of a Buyer's Agent. Parcels (much further away from the blacktop highway than the one she found for me) were listed at $6-15! In all, we found over a dozen listings UNDER $5,000, because she had taken on the role of Buyer's Agent. She went about finding what fit my needs and requirements, rather than what would give her the largest commission. This same agent refused to accept any bonus or tip, wouldn't even take a night out on the town for her and her husband. She insisted that she made her commission and that was good enough. THAT is the sort of person you want for a Buyer's Agent. She was friendly and efficient, went after what I wanted, and landed the deal for me.

By this example, you can see why you will want someone like that in your corner when you're in the market for a real estate investment. The business is full of all kinds of people. Some Agents are very honest, decent folks. Others are land-sharks; you can't trust a word that comes out of their mouths. It makes both dollars and sense to get yourself an expert who's on your side, a Buyer's Agent to work for you.

© 2007 RightNow Communications