Dec
28
Tarun Jaswani asked:
Annual percentage rate (APR) is the simplified counterpart to the effective interest rate the borrower will pay on a loan. In many countries and jurisdictions, lenders (such as banks) are required to disclose the “cost” of borrowing in some standardized way as a form of consumer protection.
APR is intended to make it easier to compare lenders and loan options. The APR is likely to differ from the “note rate” or “headline rate” advertised by the lender, due to the addition of other fees that may need to be included in the APR. However the APR can be found simply by asking the lender, or reading the section about APR in your contract.
Lenders are required to disclose the APR before the loan (or credit application) is finalized (but note that the definition of APR is not the same in these two countries - see below). Credit card companies can advertise monthly interest rates, but they are required to clearly state the annual percentage rate before an agreement is signed.
APR is a term used with regard to deposit accounts as well. However, when dealing with deposit accounts, annual percentage yield (APY) or annual equivalent rate (AER) is the number to be quoted to consumers for comparison purposes.
This also explains why a 15 year mortgage and a 30 year mortgage with the same APR would have different monthly payments and a different total amount of interest paid. There are many more periods over which to spread the principal, which makes the payment smaller, but there are just as many periods over which to charge interest at the same rate, which makes the total amount of interest paid much greater. For example, $100,000 mortgaged (without fees, since they add into the calculation in a different way) over 15 years costs a total of $193,429.80 (interest is 93.430% of principal), but over 30 years, costs a total of $315,925.20 (interest is 215.925% of principal).
In addition the APR takes costs into account. Suppose for instance that $100,000 is borrowed with $1000 one-time fees paid in advance. If, in the second case, equal monthly payments are made of $946.01 against 9.569% compounded monthly then it takes 240 months to pay the loan back. If the $1000 one-time fees are taken into account then the yearly interest rate paid is effectively equal to 10.31%.
The APR concept can also be applied to savings accounts: imagine a savings account with 1% costs at each withdrawal and again 9.569% interest compounded monthly. Suppose that the complete amount including the interest is withdrawn after exactly one year. Then, taking this 1% fee into account, the savings effectively earned 8.9% interest that year.
Some classes of fees are deliberately not included in the calculation of APR. Because these fees are not included, some consumer advocates claim that the APR does not represent the total cost of borrowing. Excluded fees may include:
Routine one-time fees which are paid to someone other than the lender (such as a real estate attorney’s fee)
Penalties such as late fees or service reinstatement fees without regard for the size of the penalty or the likelihood that it will be imposed.
Lenders argue that the real estate attorney’s fee, for example, is a pass-through cost, not a cost of the lending. In effect, they are arguing that the attorney’s fee is a separate transaction and not a part of the loan. Consumer advocates argue that this would be true if the customer is free to select which attorney is used. If the lender insists on using a specific attorney however, then the cost should be looked at as a component of the total cost of doing business with that lender.
This area is made more complicated by the practice of contingency fees for example, when the lender receives money from the attorney and other agents to be the one used by the lender. Because of this, U.S. regulators require all lenders to produce an affiliated business disclosure form which shows the amounts paid between the lender and the appraisal firms, attorneys, etc.
TOBY
Annual percentage rate (APR) is the simplified counterpart to the effective interest rate the borrower will pay on a loan. In many countries and jurisdictions, lenders (such as banks) are required to disclose the “cost” of borrowing in some standardized way as a form of consumer protection.
APR is intended to make it easier to compare lenders and loan options. The APR is likely to differ from the “note rate” or “headline rate” advertised by the lender, due to the addition of other fees that may need to be included in the APR. However the APR can be found simply by asking the lender, or reading the section about APR in your contract.
Lenders are required to disclose the APR before the loan (or credit application) is finalized (but note that the definition of APR is not the same in these two countries - see below). Credit card companies can advertise monthly interest rates, but they are required to clearly state the annual percentage rate before an agreement is signed.
APR is a term used with regard to deposit accounts as well. However, when dealing with deposit accounts, annual percentage yield (APY) or annual equivalent rate (AER) is the number to be quoted to consumers for comparison purposes.
This also explains why a 15 year mortgage and a 30 year mortgage with the same APR would have different monthly payments and a different total amount of interest paid. There are many more periods over which to spread the principal, which makes the payment smaller, but there are just as many periods over which to charge interest at the same rate, which makes the total amount of interest paid much greater. For example, $100,000 mortgaged (without fees, since they add into the calculation in a different way) over 15 years costs a total of $193,429.80 (interest is 93.430% of principal), but over 30 years, costs a total of $315,925.20 (interest is 215.925% of principal).
In addition the APR takes costs into account. Suppose for instance that $100,000 is borrowed with $1000 one-time fees paid in advance. If, in the second case, equal monthly payments are made of $946.01 against 9.569% compounded monthly then it takes 240 months to pay the loan back. If the $1000 one-time fees are taken into account then the yearly interest rate paid is effectively equal to 10.31%.
The APR concept can also be applied to savings accounts: imagine a savings account with 1% costs at each withdrawal and again 9.569% interest compounded monthly. Suppose that the complete amount including the interest is withdrawn after exactly one year. Then, taking this 1% fee into account, the savings effectively earned 8.9% interest that year.
Some classes of fees are deliberately not included in the calculation of APR. Because these fees are not included, some consumer advocates claim that the APR does not represent the total cost of borrowing. Excluded fees may include:
Routine one-time fees which are paid to someone other than the lender (such as a real estate attorney’s fee)
Penalties such as late fees or service reinstatement fees without regard for the size of the penalty or the likelihood that it will be imposed.
Lenders argue that the real estate attorney’s fee, for example, is a pass-through cost, not a cost of the lending. In effect, they are arguing that the attorney’s fee is a separate transaction and not a part of the loan. Consumer advocates argue that this would be true if the customer is free to select which attorney is used. If the lender insists on using a specific attorney however, then the cost should be looked at as a component of the total cost of doing business with that lender.
This area is made more complicated by the practice of contingency fees for example, when the lender receives money from the attorney and other agents to be the one used by the lender. Because of this, U.S. regulators require all lenders to produce an affiliated business disclosure form which shows the amounts paid between the lender and the appraisal firms, attorneys, etc.
TOBY
Dec
27
Michael Shawn asked:
There are hundres of thousands of people who are going to benefit from the current housing depression that has hit this country over the past year. Although homeowners are struggling seemingly everywhere and the news has been going on forever about the drop in home prices. This downfall has openned an uprecidented home buying opportunity!!
If you are one of the fortunate few that is entering the market in this low period. Not, only are you standing to gain from the tax credits and low mortage rates that are still in effect. But, in a few years, once the news has passed and home sales begin to recover and the cycle starts to reverse..home prices will at some point rise.
I personally predict that banks are going to be continuing to raise interest rates and this will prevent home prices from making any quick rise. But, if you have put your time in and purchased a home at a reasonable price., you should gain equity and in such markets as Las Vegas and California you may see these markets make a semi-recovery.
Plan on several years in your investment and purchase a home that you can afford is the first step towards building a strong capital future position that will bear fruit. This is not a time to be sitting around waiting. The current tax credits won’t last long and interest rates are not going to be here forever at these prices.
Please keep in mind that buying a home is not instant equity. Equity is built over time and banks will only value your home in the first 3 years for pretty much what you paid for it. So, when making a home purchase keep that time horizon in mind. It’s important to realize that this is an asset that will apreciate over time. I recommend that people buy homes they will enjoy and not only will you gain the pride of home ownership, you will most likely gain in equity that will put your family in a better financial postition once the recovery is well under way.
I believe we are starting to see that recovery, and the word is going to get out once people see that interest rates are going to rise and home prices will also rise with them, just at a slower more historically correct rate rather than the ultra frenzied rate of 2006!
VICENTE
There are hundres of thousands of people who are going to benefit from the current housing depression that has hit this country over the past year. Although homeowners are struggling seemingly everywhere and the news has been going on forever about the drop in home prices. This downfall has openned an uprecidented home buying opportunity!!
If you are one of the fortunate few that is entering the market in this low period. Not, only are you standing to gain from the tax credits and low mortage rates that are still in effect. But, in a few years, once the news has passed and home sales begin to recover and the cycle starts to reverse..home prices will at some point rise.
I personally predict that banks are going to be continuing to raise interest rates and this will prevent home prices from making any quick rise. But, if you have put your time in and purchased a home at a reasonable price., you should gain equity and in such markets as Las Vegas and California you may see these markets make a semi-recovery.
Plan on several years in your investment and purchase a home that you can afford is the first step towards building a strong capital future position that will bear fruit. This is not a time to be sitting around waiting. The current tax credits won’t last long and interest rates are not going to be here forever at these prices.
Please keep in mind that buying a home is not instant equity. Equity is built over time and banks will only value your home in the first 3 years for pretty much what you paid for it. So, when making a home purchase keep that time horizon in mind. It’s important to realize that this is an asset that will apreciate over time. I recommend that people buy homes they will enjoy and not only will you gain the pride of home ownership, you will most likely gain in equity that will put your family in a better financial postition once the recovery is well under way.
I believe we are starting to see that recovery, and the word is going to get out once people see that interest rates are going to rise and home prices will also rise with them, just at a slower more historically correct rate rather than the ultra frenzied rate of 2006!
VICENTE
Dec
18
Duncan Paul Mitchell asked:
From holiday homes in Spain, vacation rental properties in Florida, beachside villas in Barbados, Antigua and Tobago, luxurious villas in Mallorca, Ibiza and Menorca, beautiful apartments in Tenerife and Lanzarote, idyllic country cottages in England, Scotland, Ireland or Wales, rural holiday homes in France, Italy and Portugal, Cyprus or Turkey, not forgetting the picture perfect ski chalets in the French Alps, Italian Dolomites or Austrian Tyrol- people from all over the world have taken advantage of the increased economic prosperity over the last few decades to invest their hard earned savings in some form of bricks and mortar.
In addition to buying your holiday home for its likley future capital appreciation, I suspect that you are also very keen to generate income from your investment by means of letting our the property for a few weeks or even months each year.
But with so many properties out there to choose from, it is important that you consider and plan a careful strategy in order to market and promote your property in the most cost effective way, to ensure that your efforts ultimately yield more rental income, than you are spending in marketing, advertising and other related costs.
So here are some tips and ideas which I think you will find useful in ensuring that your property achieves and even surpasses your expectations in terms of generating rental income.
1.Know Your Break Even Point!
How much income do you need your property to generate each year to cover any mortgage, maintenance costs and local authority charges and taxes- not forgetting of course, the monies you may have to spend on advertising and promoting your investment property? How much does it really cost you to maintain your property each year. You need to include any mortage costs, maintenance costs, local authority or muncipal taxes and levies etc. Once you have calculated this figure you will then be able to calculate how much each week you need to charge our your holiday property for in order to at least break even and cover your costs. Knowing this may also allow you to be more flexible when it comes to setting the weekly rental price of your property. This is especially useful in a competitive market or during times when, quite simply, there are fewer people looking to rent holiday homes.
2. Set An Advertising Budget (And stick to it!)
Clearly it would be disappointing to find that despite your best efforts, you have actually spent so much money in promotional and advertising costs, that it has wiped out any potential profit from your total rental income. In the world of business, many companies would tend to set a marketing budget of anywhere between 5% & 10% of their total annual turnover. This would seem to make sense, and if you see your investment or holiday rental property as a business- which I suggest you should-then you can use this 5-10% figure as good guideline in helping you to set a sensible advertising budget.
3 Know Which Methods Are Working (Keep Records)
A marketing director of a well-known company was once alleged to have said that he believed about 50% of his marketing budget produced profitable returns. The problem was, he didn’t know which 50%! This may sound funny, but alas, it is an easy trap to fall into and its cause is largely down to not keeping records or tracking exactly where each new business enquiry comes from.
This problem is so widespread amongst all businesses that it goes to explain somewhat, why many companies have now started to ask their potential and actual customers that most valuable of $64,000 questions- “Where did you learn about us?”, or “Where did you find us?”.
Some sage business guru once said “Turnover is vanity, but profit is sanity!”. In other words your campaigns must be cost effective and generate more in ultimate rental income than the cost of the promotional activity itself. Some campaigns may well bring in rental enquiries and even some actual bookings but at what cost?
4. Understanding Your Cost Per Enquiry.
If you are going to be able to understand which of your advertising campaigns are more successful and produce the best results, it is vital that you have a mechanism for recording the results of your various marketing and promotional activities. This will allow to ditch those methods which have a very low return on your investment, conversely it will also allow you to focus more on those methods and areas where the majority of your enquiries and bookings are coming from.
5.Use The Pareto Principle (The 80/20 Rule!)
In 1906, Italian economist Vilfredo Pareto created a mathematical formula to describe the unequal distribution of wealth in his country, observing that twenty percent of the people owned eighty percent of the wealth. In the late 1940s, Dr.Joseph M.Juran inaccurately attributed the 80/20 Rule to Pareto, calling it Pareto’s Principle. While it may be misnamed, Pareto’s Principle or Pareto’s Law as it is sometimes called, can be a very effective tool to help you manage effectively.
Despite all of your various efforts at promoting your property, you will probably be amazed to calculate that most of your booking enquiries will come from one or two sources- this is what we mean by the 80/20 rule. Providing you are not like our unnamed hapless marketing manager referred to in point 3, then you should be able to use this valuable information to really focus on those activities which achieve the most profitable results.
Summary
So there you have it! Some tips and examples as to how you can leverage the rental income producing ability of your holiday home, whether it be a villa, townhouse, cottage, ski chalet or apartment.
In future articles I will be covering the issues of where best to advertise your property and how to ensure you are promoting your property in the most advantageous and effective way.
JAKE
From holiday homes in Spain, vacation rental properties in Florida, beachside villas in Barbados, Antigua and Tobago, luxurious villas in Mallorca, Ibiza and Menorca, beautiful apartments in Tenerife and Lanzarote, idyllic country cottages in England, Scotland, Ireland or Wales, rural holiday homes in France, Italy and Portugal, Cyprus or Turkey, not forgetting the picture perfect ski chalets in the French Alps, Italian Dolomites or Austrian Tyrol- people from all over the world have taken advantage of the increased economic prosperity over the last few decades to invest their hard earned savings in some form of bricks and mortar.
In addition to buying your holiday home for its likley future capital appreciation, I suspect that you are also very keen to generate income from your investment by means of letting our the property for a few weeks or even months each year.
But with so many properties out there to choose from, it is important that you consider and plan a careful strategy in order to market and promote your property in the most cost effective way, to ensure that your efforts ultimately yield more rental income, than you are spending in marketing, advertising and other related costs.
So here are some tips and ideas which I think you will find useful in ensuring that your property achieves and even surpasses your expectations in terms of generating rental income.
1.Know Your Break Even Point!
How much income do you need your property to generate each year to cover any mortgage, maintenance costs and local authority charges and taxes- not forgetting of course, the monies you may have to spend on advertising and promoting your investment property? How much does it really cost you to maintain your property each year. You need to include any mortage costs, maintenance costs, local authority or muncipal taxes and levies etc. Once you have calculated this figure you will then be able to calculate how much each week you need to charge our your holiday property for in order to at least break even and cover your costs. Knowing this may also allow you to be more flexible when it comes to setting the weekly rental price of your property. This is especially useful in a competitive market or during times when, quite simply, there are fewer people looking to rent holiday homes.
2. Set An Advertising Budget (And stick to it!)
Clearly it would be disappointing to find that despite your best efforts, you have actually spent so much money in promotional and advertising costs, that it has wiped out any potential profit from your total rental income. In the world of business, many companies would tend to set a marketing budget of anywhere between 5% & 10% of their total annual turnover. This would seem to make sense, and if you see your investment or holiday rental property as a business- which I suggest you should-then you can use this 5-10% figure as good guideline in helping you to set a sensible advertising budget.
3 Know Which Methods Are Working (Keep Records)
A marketing director of a well-known company was once alleged to have said that he believed about 50% of his marketing budget produced profitable returns. The problem was, he didn’t know which 50%! This may sound funny, but alas, it is an easy trap to fall into and its cause is largely down to not keeping records or tracking exactly where each new business enquiry comes from.
This problem is so widespread amongst all businesses that it goes to explain somewhat, why many companies have now started to ask their potential and actual customers that most valuable of $64,000 questions- “Where did you learn about us?”, or “Where did you find us?”.
Some sage business guru once said “Turnover is vanity, but profit is sanity!”. In other words your campaigns must be cost effective and generate more in ultimate rental income than the cost of the promotional activity itself. Some campaigns may well bring in rental enquiries and even some actual bookings but at what cost?
4. Understanding Your Cost Per Enquiry.
If you are going to be able to understand which of your advertising campaigns are more successful and produce the best results, it is vital that you have a mechanism for recording the results of your various marketing and promotional activities. This will allow to ditch those methods which have a very low return on your investment, conversely it will also allow you to focus more on those methods and areas where the majority of your enquiries and bookings are coming from.
5.Use The Pareto Principle (The 80/20 Rule!)
In 1906, Italian economist Vilfredo Pareto created a mathematical formula to describe the unequal distribution of wealth in his country, observing that twenty percent of the people owned eighty percent of the wealth. In the late 1940s, Dr.Joseph M.Juran inaccurately attributed the 80/20 Rule to Pareto, calling it Pareto’s Principle. While it may be misnamed, Pareto’s Principle or Pareto’s Law as it is sometimes called, can be a very effective tool to help you manage effectively.
Despite all of your various efforts at promoting your property, you will probably be amazed to calculate that most of your booking enquiries will come from one or two sources- this is what we mean by the 80/20 rule. Providing you are not like our unnamed hapless marketing manager referred to in point 3, then you should be able to use this valuable information to really focus on those activities which achieve the most profitable results.
Summary
So there you have it! Some tips and examples as to how you can leverage the rental income producing ability of your holiday home, whether it be a villa, townhouse, cottage, ski chalet or apartment.
In future articles I will be covering the issues of where best to advertise your property and how to ensure you are promoting your property in the most advantageous and effective way.
JAKE
Dec
15
Home Buyer’s Expenses
Filed Under Moving And Relocating | Leave a Comment
Sonia asked:
Home buyer’s costs or closing costs are the expenses in relation to yourith your purchase of a home. Both the buyer and the seller pay the closing costs’ depending on what is written in the contract of sales and what both agreed on. Some of these costs are paid upon closing the deal and others as your transaction progresses.
Home buyer’s costs are explained below. Some closing costs may or may not be applicable depending on the custom of the area where you make your home purchase.
1. Tax Fees. A property will not be transferred to your name unless you pay the tax fee. Exact cost depends on the location of the property. Most commonly, the tax is one percent on the first two-hundred thousand of the value of the property and two percent in excess of the two-hundred thousand value.
2. Goods/Service Tax. When you purchase a newly constructed house, you will pay the Goods and Service Tax, or the GST. The price depends on the area and the rates applied.
3. Property Tax. If the current owner of the home you are negotiating to buy has already paid the property tax for the year, you have to reimburse them as your share of the year’s taxes.
4. Appraisal Fee. This is a fee required by the lending institution home before they approve your loan.
5. Survey Fee. Your mortgage lender will require you to submit a land survey form. The survey form serves to establish the boundaries of the property. If the current owner does not have one, you will have to contact a surveyor and pay him or her for surveyor’s fees.
6. Mortgage Application Fee. Most mortgage lender require you to pay an applicationa fee once you apply for a mortage loan. The fee varies, depending on the mortgage lenders rate.
7. Mortgage Default Insurance. This insurance is required on mortgages that exceeds the seventy-five percent of the appraised property value. This serves to ensure that the lender will not lose money in the event that you cannot pay your mortgage and your property value is not sufficient to pay the mortgage.
8. Fire Insurance. Your mortgage lender will insist that you purchase an insurance policy. This is a guarantee to them that in case of fire, they will receive whatever balance you have on your loan before you receive any insurance proceeds.
9. Legal Fees. When transferring the property to your name, this will be recorded in the Land Title Office. You may hire the services of a lawyer of a notary public to act for you on this matter.
10. Other Fees. Your home buyers’ costs may include the moving expenses like hiring a professional moving company or do the moving yourself. Expect additional expenses on repairs, purchase of new appliances, curtains or carpets.
It is best to consult the exact fees in the area you plan to buy a new home. Be sure you have this home buyer’s costs covered in your budget as you start hunting for a home.
LELAND
Home buyer’s costs or closing costs are the expenses in relation to yourith your purchase of a home. Both the buyer and the seller pay the closing costs’ depending on what is written in the contract of sales and what both agreed on. Some of these costs are paid upon closing the deal and others as your transaction progresses.
Home buyer’s costs are explained below. Some closing costs may or may not be applicable depending on the custom of the area where you make your home purchase.
1. Tax Fees. A property will not be transferred to your name unless you pay the tax fee. Exact cost depends on the location of the property. Most commonly, the tax is one percent on the first two-hundred thousand of the value of the property and two percent in excess of the two-hundred thousand value.
2. Goods/Service Tax. When you purchase a newly constructed house, you will pay the Goods and Service Tax, or the GST. The price depends on the area and the rates applied.
3. Property Tax. If the current owner of the home you are negotiating to buy has already paid the property tax for the year, you have to reimburse them as your share of the year’s taxes.
4. Appraisal Fee. This is a fee required by the lending institution home before they approve your loan.
5. Survey Fee. Your mortgage lender will require you to submit a land survey form. The survey form serves to establish the boundaries of the property. If the current owner does not have one, you will have to contact a surveyor and pay him or her for surveyor’s fees.
6. Mortgage Application Fee. Most mortgage lender require you to pay an applicationa fee once you apply for a mortage loan. The fee varies, depending on the mortgage lenders rate.
7. Mortgage Default Insurance. This insurance is required on mortgages that exceeds the seventy-five percent of the appraised property value. This serves to ensure that the lender will not lose money in the event that you cannot pay your mortgage and your property value is not sufficient to pay the mortgage.
8. Fire Insurance. Your mortgage lender will insist that you purchase an insurance policy. This is a guarantee to them that in case of fire, they will receive whatever balance you have on your loan before you receive any insurance proceeds.
9. Legal Fees. When transferring the property to your name, this will be recorded in the Land Title Office. You may hire the services of a lawyer of a notary public to act for you on this matter.
10. Other Fees. Your home buyers’ costs may include the moving expenses like hiring a professional moving company or do the moving yourself. Expect additional expenses on repairs, purchase of new appliances, curtains or carpets.
It is best to consult the exact fees in the area you plan to buy a new home. Be sure you have this home buyer’s costs covered in your budget as you start hunting for a home.
LELAND
Dec
15
Don’t forget the small stuff to increase your chances of selling your home
Filed Under Home And Family | Leave a Comment
Jenny Smith asked:
Spring is traditionally a popular time to put property on the market and, after a long winter, the housing market may be showing signs of recovery. Interest rates have shifted and mortage approvals are showing a slight increase. To boost your chances of selling your home, one of the key things to consider is those first impressions and the small stuff that can really make a difference to getting and sealing an offer – crucial stuff during the current recession.
While numerous television programmes have left some buyers feeling that all properties should be immaculate, neutral showhomes, this is unrealistic for most people who have to live in their houses and don’t have lots of spare cash (or desire) to restyle it before then moving out!
However, you can help buyers to see through your lifestyle and project their own on your home. So what makes a real impact?
Don’t put people off before they’ve even stepped foot in your house.A tidy, clean looking exterior, neat front gardens or paths, nice plants and flowers, nice paintwork around the front door – all of these things immediately make your house look more welcoming.
Well lit homes always seem light, airy and welcoming – simple things like cleaning the windows and the right lighting (no bare bulbs!) can make a real difference.
Homeliness also rates highly as it’s very hard to sell a house that looks unloved. If it looks as if you don’t care about, why should anyone else? Lighting the fire, clearing away clutter and touching up painted interiors can help with this.
A clean and tidy house is attractive. A smelly, uncared for one isn’t. Household odours can really put people off. Think fresh bread rather than fried breakfast! Similarly pet odours or fur can be hard to get rid of and not everyone loves Fido. These details are easy to get right but, believe it or not, can lose you a sale if you get it wrong.
According to some recent surveys, poor building work or DIY is a big turn-off for up to 90% of potential buyers and nearly the same amount would think twice about putting an offer in on a house with a garden that lacked privacy. Where you are restricted on what you can do in this capacity, just bear it in mind and make the best of what you have.
The kitchen comes up as one of the most important rooms, closely followed by the bathroom. No real surprises as these are the rooms that often have or require the most investment and work and therefore reflect the effort you have put in and perhaps means the new owners won’t have to. You don’t have to redo either of them completely, but again, making the best of them through use of light, cleanliness, lack of clutter and tidy paintwork and details (handles, finishes, blinds and flooring) can make the difference between having your house in the running for an offer or having them running out of the door.
PERCY
Spring is traditionally a popular time to put property on the market and, after a long winter, the housing market may be showing signs of recovery. Interest rates have shifted and mortage approvals are showing a slight increase. To boost your chances of selling your home, one of the key things to consider is those first impressions and the small stuff that can really make a difference to getting and sealing an offer – crucial stuff during the current recession.
While numerous television programmes have left some buyers feeling that all properties should be immaculate, neutral showhomes, this is unrealistic for most people who have to live in their houses and don’t have lots of spare cash (or desire) to restyle it before then moving out!
However, you can help buyers to see through your lifestyle and project their own on your home. So what makes a real impact?
Don’t put people off before they’ve even stepped foot in your house.A tidy, clean looking exterior, neat front gardens or paths, nice plants and flowers, nice paintwork around the front door – all of these things immediately make your house look more welcoming.
Well lit homes always seem light, airy and welcoming – simple things like cleaning the windows and the right lighting (no bare bulbs!) can make a real difference.
Homeliness also rates highly as it’s very hard to sell a house that looks unloved. If it looks as if you don’t care about, why should anyone else? Lighting the fire, clearing away clutter and touching up painted interiors can help with this.
A clean and tidy house is attractive. A smelly, uncared for one isn’t. Household odours can really put people off. Think fresh bread rather than fried breakfast! Similarly pet odours or fur can be hard to get rid of and not everyone loves Fido. These details are easy to get right but, believe it or not, can lose you a sale if you get it wrong.
According to some recent surveys, poor building work or DIY is a big turn-off for up to 90% of potential buyers and nearly the same amount would think twice about putting an offer in on a house with a garden that lacked privacy. Where you are restricted on what you can do in this capacity, just bear it in mind and make the best of what you have.
The kitchen comes up as one of the most important rooms, closely followed by the bathroom. No real surprises as these are the rooms that often have or require the most investment and work and therefore reflect the effort you have put in and perhaps means the new owners won’t have to. You don’t have to redo either of them completely, but again, making the best of them through use of light, cleanliness, lack of clutter and tidy paintwork and details (handles, finishes, blinds and flooring) can make the difference between having your house in the running for an offer or having them running out of the door.
PERCY
Dec
14
Real Estate Q&A
Filed Under Real Estate | Leave a Comment
realestatebase asked:
A neighbour have stored some materials on my estate and refuse to remove it.Can i move it and dispatch him a bill?
I enjoy tried to settle amicably but he is a bully and will not sense.The materials,lumps of stone and tyres hold be at hand since i bought…
A potential renter of my townhouse is getting upset because I’m requiring rent surrounded by finance.Isn’t this standard?
i.e. paying rent by March 31st for the month of April.
A press for landlords or leasing agents?
I live in a pretty nice apt. consequence they are in virtuous shape and things, for the most part, are taken meticulousness of when needed. When i came to look at the apt it be daytime. I should have come…
A private tenant ask me to do a western confederation verbs on my dub to my partner mark?
and to scan and send it to him via email before i own seen the flat to prove that i have the money for deposit and that we will pick…
A query for agents. - Homebuyer.?
I am contained by the process of waiting on a counter-offer from a dealer. It is a forecloser. The home is contained by great condition–no sea defile, verbs, etc.. On the encyclopaedia it say the merchant will not turn on electricity. Does this…
A query for Realtors?
I was a Realtor for 5 years so I know how things work. Now I work for the Pest Inspector who did adjectives my termite inspections when I was Realtor. The problem I’m have is that when the Buyers Agent orders the termite…
A Question About Business Plans?
There is a section in the business plan where on earth I need to talk in the order of the staff that I shall have to work for me, and there is another passage named operations where I obligation to talk about my…
A Question About Making Money From The Property Ladder?
There are 2 ways to make money from property: 1) A property is purchased, put on rent and if the monthly rent is greater than the mortgage, a profit is being made. 2) A proprty is purchased,…
A really upright convincing?
we are doing a small lawn service me and my friend were 13 and we are doing spring cleaning because we are good for laptops. what should we say when we walk up to a doorto convince them really really honourable so we can…
A realtor showed up at my residence end Fri next to a communication from my innkeeper stating she be selling the place.
The landlord stated in her notification that she doesn’t want to be a landlord. We are approx. 5months into our lease. She also stated in…
A request for information in the region of bidding on a Home?
Hello, I am currently in the process of putting in a bid on a home. I am bidding on the home next to hte money in my savings narrative. The realtor told me that I would…
A restaurant rubbish odors surrounded by my apartment?!?
A restaurant lately open around the corner surrounded by our one-story apartment building. However, the restaurant’s waste have brought flies and a horrible odor that creeps around the corner to my front door. My boyfriend have also notice little black pellet…
A solid estate nouns cross-examine — should the agent own disclosed?
The property subsequent to mine is up for public sale. The house is a derelict which is beyond repair — the foundation is toast — and it have to be demolished contained by proclaim to build…
A subprime borrower preparing for refinance?
When I bought my house a year ago I be a subprime borrower. I own a mortgage through Option One a specified predatory lender. However I own made adjectives my payments on the dot and havnt have one problem. In one year my…
A woman passed out while driving and run her vehicle into my house. What are my rights?
I do not have Renters Insurance, do I have a skirmish here?
Aarons Leasing?
i am renting to own a laptop from them, i have read several articles stating that clients originally were to remuneration say like 600.00 for something but done up paying over 3000. why is this? i have had several problems next to aarons, but my…
Abandon houses?
does anyone know how to find or look up who owns an abandon house or property, anybody know of free sites to go to?
Abandoned Buildings and Properties?
I found a very ancient bomb shelter which was built contained by the 60’s and left completely forgotten. It is unnoticed partially underground among the corn field. It can be very glibly missed with adjectives the growth around it. The…
About business plans.?
Can I have details on what the mision and objective of the plan is? And also, more details on marketing?
About commercial renting?
hay there. I was curious of the make-up in commercial renting. i tried googling it but i got zilch to insightful. to be more specific, I am really curious about the more common rules and leasing language. thanks.
About how much do radio hosts earn?
I’m 13 and I wanna be one when I grow up so I was wondering… And do they get their money per month/hour/?? Thanks!
About how much does an accountant cost?
How much does an accountant cost for a small business (1 employee)? And if you do hire someone can they just come in and set things up for you approaching a one-time deal and then you can nick it from…
About how much does it cost to live on your own surrounded by Orange County, CA?
I’m just curious to know because my friend requirements to move out (rent an apartment) and she seems to have an idea that that the only piece you have to verbs…
About how much is a great deal of home within Missouri that the state owns?
Hi there. I just this minute (with a year) purchased my lovely home that I love. The main aim we fell in love near THIS home is because of the…
About Real estate companu?
I am Equity investment analyst (Traninee) and i hold be asked to receive a company (real estate) stop by to ask them some question on company aobjective and their strategy, so i can forcast, what things i can ask. Thank you
About Small Business or personal grant?
I would like to know if they are really real, and where on earth do I look to began to look for this information?
About taking over someones home mortage?
i am buying my own home paying my mortage i recently was told a friend of mine who lives surrounded by a two story that she was moving we want to take over within house whats the best way to do this…
About tangible estate, is it time to buy one surrounded by USA?
As the subprime mortgage problem arise, I hear some said that genuine estate price is tremendously much cheaper immediately. Should I loaf for more price deteriorating or should I buy one right away?
About the law when tenant and hotelier don’t own rental agreement?
I would like to know what is the ruling if landlord and tenant don’t own the rental agreement? What is the rights for both sides? Tenant lived with proprietor more than 2 years and they didn??…
About to buy a home,not going to be capable of hide away money…?
Hi, I’m 24 yrs old and I am in the order of to buy my first home - a condo. I make clad money. However, after all my expenses respectively month -…
More Real Estate Q&A Please visit : Real-Estate-Base.com
SCOT
A neighbour have stored some materials on my estate and refuse to remove it.Can i move it and dispatch him a bill?
I enjoy tried to settle amicably but he is a bully and will not sense.The materials,lumps of stone and tyres hold be at hand since i bought…
A potential renter of my townhouse is getting upset because I’m requiring rent surrounded by finance.Isn’t this standard?
i.e. paying rent by March 31st for the month of April.
A press for landlords or leasing agents?
I live in a pretty nice apt. consequence they are in virtuous shape and things, for the most part, are taken meticulousness of when needed. When i came to look at the apt it be daytime. I should have come…
A private tenant ask me to do a western confederation verbs on my dub to my partner mark?
and to scan and send it to him via email before i own seen the flat to prove that i have the money for deposit and that we will pick…
A query for agents. - Homebuyer.?
I am contained by the process of waiting on a counter-offer from a dealer. It is a forecloser. The home is contained by great condition–no sea defile, verbs, etc.. On the encyclopaedia it say the merchant will not turn on electricity. Does this…
A query for Realtors?
I was a Realtor for 5 years so I know how things work. Now I work for the Pest Inspector who did adjectives my termite inspections when I was Realtor. The problem I’m have is that when the Buyers Agent orders the termite…
A Question About Business Plans?
There is a section in the business plan where on earth I need to talk in the order of the staff that I shall have to work for me, and there is another passage named operations where I obligation to talk about my…
A Question About Making Money From The Property Ladder?
There are 2 ways to make money from property: 1) A property is purchased, put on rent and if the monthly rent is greater than the mortgage, a profit is being made. 2) A proprty is purchased,…
A really upright convincing?
we are doing a small lawn service me and my friend were 13 and we are doing spring cleaning because we are good for laptops. what should we say when we walk up to a doorto convince them really really honourable so we can…
A realtor showed up at my residence end Fri next to a communication from my innkeeper stating she be selling the place.
The landlord stated in her notification that she doesn’t want to be a landlord. We are approx. 5months into our lease. She also stated in…
A request for information in the region of bidding on a Home?
Hello, I am currently in the process of putting in a bid on a home. I am bidding on the home next to hte money in my savings narrative. The realtor told me that I would…
A restaurant rubbish odors surrounded by my apartment?!?
A restaurant lately open around the corner surrounded by our one-story apartment building. However, the restaurant’s waste have brought flies and a horrible odor that creeps around the corner to my front door. My boyfriend have also notice little black pellet…
A solid estate nouns cross-examine — should the agent own disclosed?
The property subsequent to mine is up for public sale. The house is a derelict which is beyond repair — the foundation is toast — and it have to be demolished contained by proclaim to build…
A subprime borrower preparing for refinance?
When I bought my house a year ago I be a subprime borrower. I own a mortgage through Option One a specified predatory lender. However I own made adjectives my payments on the dot and havnt have one problem. In one year my…
A woman passed out while driving and run her vehicle into my house. What are my rights?
I do not have Renters Insurance, do I have a skirmish here?
Aarons Leasing?
i am renting to own a laptop from them, i have read several articles stating that clients originally were to remuneration say like 600.00 for something but done up paying over 3000. why is this? i have had several problems next to aarons, but my…
Abandon houses?
does anyone know how to find or look up who owns an abandon house or property, anybody know of free sites to go to?
Abandoned Buildings and Properties?
I found a very ancient bomb shelter which was built contained by the 60’s and left completely forgotten. It is unnoticed partially underground among the corn field. It can be very glibly missed with adjectives the growth around it. The…
About business plans.?
Can I have details on what the mision and objective of the plan is? And also, more details on marketing?
About commercial renting?
hay there. I was curious of the make-up in commercial renting. i tried googling it but i got zilch to insightful. to be more specific, I am really curious about the more common rules and leasing language. thanks.
About how much do radio hosts earn?
I’m 13 and I wanna be one when I grow up so I was wondering… And do they get their money per month/hour/?? Thanks!
About how much does an accountant cost?
How much does an accountant cost for a small business (1 employee)? And if you do hire someone can they just come in and set things up for you approaching a one-time deal and then you can nick it from…
About how much does it cost to live on your own surrounded by Orange County, CA?
I’m just curious to know because my friend requirements to move out (rent an apartment) and she seems to have an idea that that the only piece you have to verbs…
About how much is a great deal of home within Missouri that the state owns?
Hi there. I just this minute (with a year) purchased my lovely home that I love. The main aim we fell in love near THIS home is because of the…
About Real estate companu?
I am Equity investment analyst (Traninee) and i hold be asked to receive a company (real estate) stop by to ask them some question on company aobjective and their strategy, so i can forcast, what things i can ask. Thank you
About Small Business or personal grant?
I would like to know if they are really real, and where on earth do I look to began to look for this information?
About taking over someones home mortage?
i am buying my own home paying my mortage i recently was told a friend of mine who lives surrounded by a two story that she was moving we want to take over within house whats the best way to do this…
About tangible estate, is it time to buy one surrounded by USA?
As the subprime mortgage problem arise, I hear some said that genuine estate price is tremendously much cheaper immediately. Should I loaf for more price deteriorating or should I buy one right away?
About the law when tenant and hotelier don’t own rental agreement?
I would like to know what is the ruling if landlord and tenant don’t own the rental agreement? What is the rights for both sides? Tenant lived with proprietor more than 2 years and they didn??…
About to buy a home,not going to be capable of hide away money…?
Hi, I’m 24 yrs old and I am in the order of to buy my first home - a condo. I make clad money. However, after all my expenses respectively month -…
More Real Estate Q&A Please visit : Real-Estate-Base.com
SCOT
Dec
6
Ben Franklin asked:
Even if you have questionable credit, there are things you can do to ensure you get a good mortgage interest rate on a refinance. You’ll find getting a decent rate for a refinance is generally a bit easier than going for the initial mortgage. This is because, hopefully, you’ve built up equity and a track record for making payments on time. And, considering you now have time, along with money, invested in your home, you’ll want to make sure you do everything possible to protect your home by getting the best possible interest rate.
Since getting a good mortgage rate on a refinance can mean the difference between payments that are easy to handle and those that strap your entire life, it behooves you to make sure your credit is in good shape before you go for a refinance. To ensure your rate is the best, do these things before you go for a mortgage interest rate quote on a refinance:
* Check your own credit rating. You can do this by contacting the three major credit bureaus. You should be able to pull your own score once a year in writing or over the Internet. You’ll want to read your credit report carefully and inspect it for anything that’s inaccurate.
* If you haven’t kept your credit squeaky clean, you will want to make moves to repair it before you apply for a mortgage interest rate quote. This means paying all your bills on time, cleaning up any past blemishes on your credit report and working to ensure your income to debt ratio is low. This could take time, but you will find it’s time well invested. The better your credit rating when you go for a quote, the better rate you’ll get.
* Pay off old bills and set money aside in a savings account. The more financially stable you are, the better you will look to potential lenders. This again will take time and dedication to pull off, but it can save you a lot in the types of mortgage interest rate quotes you get.
* If you’re considering taking out a mortgage refinance loan that involves cash out, make sure you don’t ask for too much. The closer you get to the 100 percent of equity mark, the higher your mortgage interest rate quotes will likely go. The less cash out you take, generally the lower your rate quote will be, too.
Getting a mortgage interest rate quote for a refinance isn’t difficult. Banks, credit unions and mortgage brokerage companies all offer these. Just make sure you have all your ducks in a row before you start inquiring. The better prepared you are, the more likely you are to get a quote you can live with.
It’s important to remember, however, that when you’re going for a mortgage interest rate quote that you also want payments you can handle. Agreeing to pay more than you can easily handle can put your home and your peace of mind into jeopardy.
ROSS
Even if you have questionable credit, there are things you can do to ensure you get a good mortgage interest rate on a refinance. You’ll find getting a decent rate for a refinance is generally a bit easier than going for the initial mortgage. This is because, hopefully, you’ve built up equity and a track record for making payments on time. And, considering you now have time, along with money, invested in your home, you’ll want to make sure you do everything possible to protect your home by getting the best possible interest rate.
Since getting a good mortgage rate on a refinance can mean the difference between payments that are easy to handle and those that strap your entire life, it behooves you to make sure your credit is in good shape before you go for a refinance. To ensure your rate is the best, do these things before you go for a mortgage interest rate quote on a refinance:
* Check your own credit rating. You can do this by contacting the three major credit bureaus. You should be able to pull your own score once a year in writing or over the Internet. You’ll want to read your credit report carefully and inspect it for anything that’s inaccurate.
* If you haven’t kept your credit squeaky clean, you will want to make moves to repair it before you apply for a mortgage interest rate quote. This means paying all your bills on time, cleaning up any past blemishes on your credit report and working to ensure your income to debt ratio is low. This could take time, but you will find it’s time well invested. The better your credit rating when you go for a quote, the better rate you’ll get.
* Pay off old bills and set money aside in a savings account. The more financially stable you are, the better you will look to potential lenders. This again will take time and dedication to pull off, but it can save you a lot in the types of mortgage interest rate quotes you get.
* If you’re considering taking out a mortgage refinance loan that involves cash out, make sure you don’t ask for too much. The closer you get to the 100 percent of equity mark, the higher your mortgage interest rate quotes will likely go. The less cash out you take, generally the lower your rate quote will be, too.
Getting a mortgage interest rate quote for a refinance isn’t difficult. Banks, credit unions and mortgage brokerage companies all offer these. Just make sure you have all your ducks in a row before you start inquiring. The better prepared you are, the more likely you are to get a quote you can live with.
It’s important to remember, however, that when you’re going for a mortgage interest rate quote that you also want payments you can handle. Agreeing to pay more than you can easily handle can put your home and your peace of mind into jeopardy.
ROSS
Dec
4
Using Your Homes Equity for Debt Consolidation: Things to Consider
Filed Under Mortgage | Leave a Comment
Seth Daugherty asked:
So there is obviously good things about owning a home. One is that you can easily consolidate all of your debt into one easy monthly payment. There are many options for debt consolidation through the equity of your home, but most will have something to do with a 2nd mortgage that will be an additional and separate payment on top of your first mortgage on your house.
- Lenders:
Lenders from banks to ebanks and more, offer personal loans for the consolidation of debt. Banks and credit unions will typically require a very strong credit score and collateral, due to the markets of late, this is no surprise. Of course, again, the collateral will be the value of your home and as long as your credit score is decent this should not be an issue.
- The Benefits:
Obviously, the only other way to consolidate debt and eventually eliminate large amounts of debt would involve the acquisition of a sum of money equal to the debt. This could be done in many ways all of which are probably unlikely for most of us. This is why there are very real and practical reasons why the second mortgage, also known as an equity loan, might be the best bet for trimming down the debt and putting it all in one place. This makes it easy to make monthly payments and depending on the market, you could get a very good interest rate.
- The APR:
The interest rate is determined by the FED which keeps a close eye on the economy and makes its decision on the interest based on specific markers. The only thing you need to know is that this APR (annual percentage rate) is one of the main things you should be thinking of when deciding whether or not a 2nd mortgage is the answer to consolidating your debt. Keep in mind that you will also need to account for origination fees, mortgage insurance premiums, points, inspections, prepaid interest and other items required to obtain a mortage. This is not meant to overwhelm you, but these things must be considered when deciding to trim down your debt via a second mortgage.
- What Else?
For the most part, it is a very simple process these days when it comes to obtaining a second mortgage. The next thing to do is to research some of the more reputable 2nd mortage companies online and find out which have the best rates and make sure to ask a lot of questions so you are not surprised by a monthly payment that is above and beyond what you can resonably pay. Remember that this could be a very good way to lower your debt and consolidate all of your debt into one simple payment per month. This is why so many people decide that the equity on their home should be used for this purpose.
IVAN
So there is obviously good things about owning a home. One is that you can easily consolidate all of your debt into one easy monthly payment. There are many options for debt consolidation through the equity of your home, but most will have something to do with a 2nd mortgage that will be an additional and separate payment on top of your first mortgage on your house.
- Lenders:
Lenders from banks to ebanks and more, offer personal loans for the consolidation of debt. Banks and credit unions will typically require a very strong credit score and collateral, due to the markets of late, this is no surprise. Of course, again, the collateral will be the value of your home and as long as your credit score is decent this should not be an issue.
- The Benefits:
Obviously, the only other way to consolidate debt and eventually eliminate large amounts of debt would involve the acquisition of a sum of money equal to the debt. This could be done in many ways all of which are probably unlikely for most of us. This is why there are very real and practical reasons why the second mortgage, also known as an equity loan, might be the best bet for trimming down the debt and putting it all in one place. This makes it easy to make monthly payments and depending on the market, you could get a very good interest rate.
- The APR:
The interest rate is determined by the FED which keeps a close eye on the economy and makes its decision on the interest based on specific markers. The only thing you need to know is that this APR (annual percentage rate) is one of the main things you should be thinking of when deciding whether or not a 2nd mortgage is the answer to consolidating your debt. Keep in mind that you will also need to account for origination fees, mortgage insurance premiums, points, inspections, prepaid interest and other items required to obtain a mortage. This is not meant to overwhelm you, but these things must be considered when deciding to trim down your debt via a second mortgage.
- What Else?
For the most part, it is a very simple process these days when it comes to obtaining a second mortgage. The next thing to do is to research some of the more reputable 2nd mortage companies online and find out which have the best rates and make sure to ask a lot of questions so you are not surprised by a monthly payment that is above and beyond what you can resonably pay. Remember that this could be a very good way to lower your debt and consolidate all of your debt into one simple payment per month. This is why so many people decide that the equity on their home should be used for this purpose.
IVAN