7 Tips to Real Estate Agent's Success: Tip #4 - Establish Sales Goals

Sales goals are just as important in real estate as they are in any other business. Successful goal achievement begins with using valid criteria and understanding the linkage between sales goals and strategic planning.

Within your strategic plan for your real estate business, there should be a sales plan. This plan centers around specific sales goals to secure the result of converting those who have received your marketing message to an actual selling or listing client.

After establishing specific goals, then your challenge is to monitor these goals to ensure achievement. If you are new to this industry, it may take 6 months before the first sale. HINT: Use the W.H.Y. S.M.A.R.T. criteria for goal setting.

Many real estate agents have goals, but very few have integrated specific goal setting criteria into their goal planning, goal setting and goal achievement process. The S.M.A.R.T. criteria:

* Specific
* Measurable
* Attainable
* Realistically Set High
* Target Date/Time Driven

are not new, but unfortunately, still not utilized as much as they should be.

One of the reasons for this is because the What’s In It For Me (WIIFM) or the W.H.Y. has not been included. All goals should be committed to Writing. When sales goals are written down, the intangible thought now has some substance and becomes more real. The paper can be not only actually seen, but also touched. Suddenly, the sales goal appears to be more concrete than just a wish or a dream.

Additionally, goal planning, setting and achievement is a process that should become a Habit of behavior. Weekly written grocery lists or the daily "to do" lists are habits that improve performance. Planning, setting and executing sales goals should become a habit that is consistently demonstrated on a weekly, monthly and yearly basis.

Finally, goals need to be Yours. Achieving goals for someone else usually are not successful because of the WIIFM. When the business sales goals can be translated into your specific goals, then you have greater ownership of the goals.

When the W.H.Y. S.M.A.R.T. criteria are infused into sales goals, successful goal achievement has been greatly increased. For example, using the industry average of 6% commission rate with 3% going to the listing broker and 3% going to the selling broker, the typical real estate agent averages 1.5% commission unless she or he listed and sold the property. If the sales goal is to earn $20,000 the first year, this means that the agent must achieve listings or sales of over $1.3 million. By the second year, the goal may have been increased to an income of $30,000 which translates into listings or sales of $2.0 million. By having the marketing research, the sales plan is data and market driven. Consequently, the agent can determine how many homes he or she needs to list or sell based upon the $1.3 or $2.0 million.

How to Create a Lifetime Customer When you Sell Real Estate

How often have you seen a customer buy from one agency and then a few years later, list with a different agency? I've seen it far too often! I always wonder if the agent did something wrong, or just didn't bother to turn that person into a lifetime customer.

I'll admit, real estate customers aren't known for their loyalty. In fact, if you list a house and it doesn't sell right away, they might take their listing elsewhere even if you've spent hundreds on advertising for them. But there are ways to improve your chances of keeping them. And there are ways to turn satisfied buyers and sellers into "Lifetime customers."

And remember, if your commission averages $10,000 per transaction and people move every 5 years, you stand to gain an extra $30,000 over the next 15 years. Then consider those buyers who like to do rehab. They sometimes buy more than one each year. Add in the friends and family each customer could bring you, and there's only one conclusion: Customers are worth keeping!

How to keep a listing: Stay in touch during the listing period. I can't count how many times I've gotten listings that used to belong to someone else, just because the sellers felt ignored.

So, rule #1 is "Stay in touch, even when it's difficult."

It is difficult to call and speak with the seller when there's been no action, but call anyway. You can tell him or her where you've advertised, how many flyers you've given out to office drop-ins, how many flyers you've mailed to long distance inquiries, etc. Perhaps you took new photos and posted them on your virtual tour. Whatever you've done, let the seller know you did it.

In my office we kept track of all activity and mailed a monthly report, along with copies of each ad we had placed in a newspaper or magazine. In addition, we called mid-month just to stay in touch. This practice was responsible for most listing renewals. The important point is, you must make sure that the seller knows you're doing something regularly to promote the house.

OK, you sold the house. Everyone passed go and collected their money. Now what?

Now you send a thank you letter with a brief questionnaire asking for feedback on your service. It will let you know what you did right - and occasionally you'll hear what you did wrong! Don't be afraid of that. Welcome that kind of feedback because it gives you the opportunity to make a friend out of an unhappy customer. Write back and thank them for letting you know and for helping your career by letting you improve your service.

Next, put those names and addresses in a data base and start staying in touch. Every 2 to 4 months is often enough, unless you know that they have friends or relatives who are about to make a move.

Send a magazine article about their hobby, birthday cards, a postcard with a funny joke, a pretty picture, or perhaps an article about getting the house ready for winter. Anything that will interest them and keep your name in front of them will do.

I wrote a monthly newsletter, and if I was late getting it out customers would call to see why it wasn't there. That was before email became so popular. Now you could do it electronically at zero cost if you write it yourself, and you could add a personal note to really special customers.

You're going for "Top of mind awareness," and you can only get that through regular contact. Your goal is for them to think of you first when anyone mentions needing a Realtor.

Home Sales Likely To Level Out

According to the National Association of Realtors, home sales are likely to level out during the next few months.

The Pending Home Sales Index indicates sales that sill be finalized within the next couple of months. Based on the contracts signed in July, the PHSI is down 7.0% for the month. On a year-to-year basis, the index is down 16%.

An index of 100 is the average level of contract activity during 2001 -- the first year of the index. July's index was 105.6.

"In looking at year-to-year comparisons, the pending home sales index has been very close in predicting the actual pace of home sales," NAR chief economist David Lereah said.

"Based on recent changes from a year ago, the index shows existing-home sales should continue to ease after a stronger-than-expected decline in July, but are likely to flatten in the months ahead."

Lereah continued to say that psychological factors could be attributing to slowing July home sales.

"We've never seen a general decline in the housing market against a healthy economic backdrop where jobs are being created, the economy is growing and interest rates are favorable," he explained.

"Pyschological factors are causing some buyers to remain on the sidelines, waiting for prices to stabilize or for more favorable news about the market and the economy. Contributing to this hesitency is a lot of negative news stories, but in the end we believe that underlying market fundamentals will prevail."

The PHSI for the West saw a decrease of 5.5% for the month and 20.3% for the year. The South experienced a decline of 6.4% for the month and 11.3% for the year. The Northeast PHSI dropped 7.7% for the month and 15.5% for th year. The Midwest index fell by 9.0% for the month and 20.1% for the year.

Take the Time to Find the Right Realtor

If you have ever purchased or sold a home you will have realized that there are many agents out there to choose from. The decision on who handles your real estate transaction for you can affect the bottom line. There are a few things you need to consider when looking for a good realtor.

If you aren't really sure you want to sell your home or if you have all the time in the world, you might just do alright selling in yourself. This will save you on the commission payment, giving you more in your pocket towards your next home. If you have a set time frame for selling your home, you will want to list with a good agent.

To find the right agent for you, you will have to do a little homework.

You need to ask the following questions before you decide:

* Where do they do their marketing? You need to know how the realtor plans to get your home the needed exposure to sell. Ask if they advertise in real estate magazines, on television, radio, in newspaper or on the internet. Ask them to give you specific experiences of successful advertising.
* What is their background? You will have to decide whether experience is more important to you than rookie enthusiasm. Let the number of homes sold in the past six months be an indicator of an agent that is on a roll.
* How long does it take them to sell a home? Find out what types of homes they list, including the price range. Many realtors like to specialize. Find out how many homes they represent at one time. You want to see that they have sold homes like yours before. Don't be afraid to ask for the names and addresses of satisfied customers.
* Is the agent associated with a reputable agency and a member of the state and national Realtor Association?
* What commission percentage will they accept? See if they will list your home at a lower percentage, especially if they expect it to sell quickly. You don't want to list with a agent that will give you a really extremely low commission percentage. After all, you get what you pay for. You can usually find a realtor between four to seven percent commission, if you ask.
* Will they refund a part of their commission if you also purchase a home with them? Many realtors will give you 1% of the commission back to you if you use them in both the selling and the buying.

You want to make sure that the agent is someone you can talk to. They really need to focus on you and listen to what you are looking for in a home. Be wary of agents that want to list your home for an entire year. Ask for three or four months instead. Remember, you are hiring this person. They are looking for your business. There a plenty of agents out there. Just keep looking.

Housing For Alternative Lifestyles

What are alternative lifestyles and why would they require alternative housing? To answer the first part it is easiest to give examples. Then the answer to the second part becomes self evident.

One winter we were camping in our conversion van at a hot springs area in Arizona. We met a man who sold stuffed animals on the side of the highway. Having been through a bad divorce, and having little money, he was living in the van at places like these hot springs. Every day he drove off to the nearest highways and set up his stuffed animals for sale. He claimed to have sold $4,000 worth the first month, so his low cost living meant he could save the money and get back on his feet.

Meanwhile, another neighbor at the hot springs was living in his old RV. He had a house, but he preferred to supplement his social security by renting it out. This meant he lived in his RV for a few weeks at each location, often for free, and spent evenings sitting around campfires talking to travelers like us.

A friend of ours lived in a shack that he built for $3,000 on a small piece of land he bought for $7,000. He was there for enough time to pay off the land and sell it for a profit. This is illegal in many areas, of course, because of things like occupancy permits and minimum square footage requirements. Usually, however, you can camp on your land, so a $2,000 used RV parked on your land makes for a cheap and legal housing alternative.

Other Housing For Alternative Lifestyles

Alternative lifestyle doesn't mean "low income" of course. There are other reasons for living differently and needing different types of housing. Whether to save money, to travel, to live creatively - there are many reasons why people choose to live in tents, RVs, cabins, underground homes, rental rooms and anything else that's less common than the houses, condos and apartments that most people call home. Here are a few more of these housing options.

- RV Boondocking. I've talked to people living in Rvs that cost $200,000 and ones that cost $600, so the selection of accommodations is varied, to say the least.

- Permanent travelers. Housing is whatever works for the moment for those who work various jobs as the travel.

- Houseboats. There are whole communities of people living on houseboats, and they usually don't have to pay property taxes.

- Basements. Even some people with good incomes choose to live in the basement as they build the house above for cash. No mortgage sounds nice, doesn't it?

- Log cabin squatting. Yes, there really are people living out there in the national forests, moving when they get caught every five or ten years.

- School busses. Apparently old busses sell cheap. We met three young men who lived in one in the deserts of Arizona, and anywhere else they could park it for a month.

- Offices. A couple I know almost moved into the office building they owned. It was on the river and had showers, so why not? One less mortgage too.

A national magazine recently did a write-up on people who lived in the jungles of Hawaii. Rents are high in Hawaii, and life on the beach is good - at least for younger people who can tolerate camping out for years. Alternative lifestyles and alternative housing are often more for the younger crowd. Then again, tell that to the tens of thousands of retirees living in RVs.

Port Orange Realtor

If you’re in the Port Orange home buying or selling market, you first need to choose a good real estate agent. You could end up spending a good deal of time with your Realtor®, so it’s important you choose carefully.

What should you look for in your Realtor? Here are some things to consider as you get started:

First, don’t be afraid to “interview” your Port Orange real estate agent possibilities. Don’t be afraid of offending anyone – this is not new to the agent. You want to make sure you find a real estate agent that has your best home needs in mind, but one that also meshes with your personality and is easy to work with.

Second, when you do interview agents, consider yourself to be on a fact-finding mission. You want to know that your potential Port Orange Realtor is licensed, with that license in good standing. In addition, if you are buying a Florida home, be sure that your agent is working for you and not the seller – in other words, you want a buyer’s and not a seller’s agent.

Third, if you are selling your home, get all the details of your agreement with your Port Orange real estate agent in writing. You want to know how your house will be marketed, and if you want it marketed aggressively (and most sellers do) it’s useful to have a game plan in writing so you can have a bargaining chip later if the Realtor doesn’t work as agreed upon.

Finally, don’t be afraid of this process. Buying or selling a home can be a stressful job. But if you work hard to find yourself the right agent who is working for you and who has your best interests at heart (and truly, most of them will), you could have a painless and relatively easy house hunting or selling experience.

7 Tips to Real Estate Agent's Success: Tip #7 - Find a Mentor or Real Estate Coach

In real estate, going it alone is not easy. Taking the time to find a mentor can help you steer through some of the known obstacles and support you during those "peaks and valleys." If you have the resources, you may wish to hire a real estate coach or an executive coach who specializes in small business help.

Given the explosive growth of the real estate market creating a highly competitive marketplace, achieving sustainable success is not easy for today’s real estate agents. One of the potential solutions in overcoming the obstacles such as competition, marketing or revenue is to find a mentor and possibly even hire a real estate coach.

Real estate coaches are a direct result of the real estate market. These individuals specialize in helping small business owners who are in the real estate industry meet and exceed their performance goals. Given that some executive coaches specialize in business performance improvement, their understanding of the variety of issues that small business owners face regardless of industry allows them to work with real estate agents.

Regardless of the type of coach, the real challenge is to find a coach who understands:

* How to achieve sustainable performance improvement
* How processes and tools must be in alignment with the strategic plan
* How to define the desired results

When a coach understands how to leverage your K.A.S.H. Box for Sustainable Change to create even more cash, then you have indeed found the right coach. Each individual has Knowledge, Skills, Attitudes and Habits. Unfortunately, many individuals and even organizations focus their energies on obtaining more knowledge and skills while they fail to address the necessary supporting attitudes and habits. The question for any real estate agent is to ask regarding their success is not "Do I know how to do it?" but "Do I want to do it?" The desire or the want to will always exceed the knowing because if I want to, then I will do what I need to do. However, if I don't want to, then I won't do want I need to do.

Everything must work together from the processes and the tools to even the skills and attitudes. Alignment helps to create balance and keep performance improvement on track.

Stephen Covey is cited as the source for "Begin with the end in mind." This is not a new concept as Plato, Socrates and Aristotle all understood that you need to have a specific destination in mind before starting any endeavor. An effective (doing the right thing) coach will help you, the real estate agent, define the desired results using measurements (numbers). Then, working together, a plan of action will be constructed and executed by you the agent with the coach monitoring your progress.

Coaches can greatly improve the success of real estate agents provided the real estate agent is truly committed to making the changes necessary for success. Remember the words of Peter Drucker: Unless commitment is made, there are only promises and hopes…but no plans.

Are We Entering a Buyers' Market?

No matter where you live, the real estate market will either be a buyers' market or a sellers' market. It might even be slightly in between the two market conditions.

Most real estate agents consider a normal market to be one in which homes take an average of six months to sell. That means that in the MLS, there are at least six months of homes on hand to sell for the number of buyers in the market. If the number is higher than six months inventory, then the market is becoming a buyer's market. If it is less than six month inventory, then the market is swinging towards a seller's market.

Many formerly hot areas of the country are now becoming buyers' markets. In these areas, there are now too many homes on the market for the number of buyers. Homes are taking longer to sell and the prices are falling.

Some buyers believe that winter is always a buyers' market. It is true that there are fewer buyers out looking during the winter, there are usually fewer homes on the market as well. Seasonally conditions aside, a buyer's market is seen when buyers realize that their interest in a home is sought out.

When a buyer gains the control they will increase their demands o the sellers. They ask for things to be conveyed with the property, such as appliances and decor, that normally wouldn't be. They may ask for a home warranty at the seller's expense. Some demand the seller pay an increased portion of the closing costs. The contingencies can go on and on.

Not all sellers will lose out during a buyer's market. People who have owned their homes for a long time are able to sell at a profit, despite the buyer's market, due to the equity they have built up.

Sellers who must sell quickly will often take little or no profit from the sale of their homes, with a few taking a loss. These homeowners often have little or no equity built up in their homes.

One thing you can always depend on is that the market will eventually flip back to a seller's market. It is a never-ending cycle. If you find that you are a seller in a buyer's market, you could just hold on until the market turns back in your favor. But if you have equity in your home and have wisely maintained it, you may not find the buyer's market too unfavorable.

Tips for Selling Your House

You'll find home selling tips for houses, town homes, villas, and condominiums, scams to keep away from, how to opt a seller's real estate agent, what to set in your contract, real estate agent tricks to watch out for, and negotiating tips for dealing with tough buyers. We'll also assess such as Home Gain which help you locate a real estate agent in your area based on the marketing package that they put forward to sell your house.

Great Expectations

Many sellers have unrealistic expectations for their property value, particularly on condominiums and townhouses. These types of property at least here in Florida do not seize their value very well, and very few of them only appreciate. Often the builders of new condos and townhouses charge buyers too much money and when the buyer resells years later, they are stunned to observe how much value their unit lost. They will have a rigid time selling their condo, especially if the maintenance fees are high.

So how do you price your home?

There are three tools to use, a property appraiser, a listing real estate agent, and a record of recent home selling prices in your neighborhood. If you chose your listing agent shrewdly and they have knowledge in your neighborhood, they can steer you to a ball park selling price, then the appraiser will fine tune that number, and you can utilize a list of current selling prices as a sanity check.

Pretty it up before you list it!

Before you turn your home over to the listing agent, make sure it’s in its best form. First impressions count and the first thing buyers see are your front lawn and garden. Make sure your lawn and trees are fertilized about 2 weeks before you list the house. Also make certain that the lawn is in good shape, and has a perfect edge along the perimeter, make sure the garden looks nice, with no weeds, and repair any cosmetic damage to the house that can be seen from the outside. Replace your AC filter and any other filters that might be checked during the inspection process. Remove any excess rugs and furniture to make the rooms look bigger.

How To Interview And Hire A Real Estate Agent:

You want much more from them than just listing your house on MLS and waiting for results, you want a full scale media blitz. By using popular home buying sites like Home Gain, you are pitting local real estate agents against one another to compete for your business. The agent with the best marketing plan wins. Since agents know that there are other agents competing for your business, you'll get some aggressive marketing plans presented to you. Make sure your house is advertised with color photos wherever possible, and make sure it's outlined in your Real Estate Agent's marketing contract that there will be color photos. Buyers love open houses and half the fight in selling your house is just getting buyers to come look at it.

Stay away from long term contracts!

Do not sign long term exclusive agent contracts. Any decent agent should have your house sold in 90 days in a good market. In fact if they really are as good as the picture they painted for you, they should have your house sold in no time. Only with a 90 day listing period, you put the pressure on your Real Estate Agent to do some work and sell your house.

Have a good Internet marketing plan to sell your home!

Many people don't just comprehend that by adding your home listing to a regional online classifieds, it could get picked up by the major real estate portals sites like Home Gain. Big real estate portals are signing regularly that deals with MLSs and regional home listings for presenting their listings when users of the portals search for a house. Internet listings are crucial to get your house sold, especially to out of town buyers who are unfamiliar with your area, and your listing is the only one they know. Real estate portals sites like Home Gain are good if you live in a questionable area where picky buyers in your city don't want your house, but ignorant buyers from out of town don't know any better.

Mortgage Mates - Property Pals And Home Buying Friends

At some point we've all played the “wouldn't it be nice to live there” game, where we press our noses up to the estate agents window like hungry children eyeing up the cakes in a bakery, wishing we could afford the homes that are way too expensive for us. We all have aspirations far beyond our wallets from time to time, but more and more first time buyers are finding that they simply cannot afford to buy anywhere as property prices in the UK have rocketed to such levels that the first step onto the ladder has begun to look more like an impossible leap.

Now a new breed of buyer has begun to emerge, or maybe I should say ‘evolve’, because that’s what happens when nature finds a way around a problem, who have decided to tackle the issue of affordability head on, they are the co-buyers. If you’ve not been near your TV, radio or favorite newspaper recently you’d be excused for not having heard of this home buying movement. Put simply, co-buying is where two or more people buy a property together to join funds, divide of all the costs, and afford to buy years sooner than they could have done alone. Nothing new there, as friends and family have been doing that for an age now, what is new is the rise in the popularity of searching for your ideal mortgage mate on the internet.

Richard Cohn, Founding Director of Shared Spaces Limited, introduced us to the concept of co-buying with www.sharedspaces.co.uk, launched in December 2005. He explains, “I flat shared for years before buying, and made some great friends along the way, and it was during this time that I came to the conclusion that was to lead to the creation of SharedSpaces. If you can flat-share with complete strangers with great success, why can’t people take it to the next level and buy together?”

Of course there is more to it than just that because buying is a far bigger financial commitment than renting, but Cohn suggests that with the correct legal framework (a document called a ‘Deed of Trust’ that costs only a few hundred pounds from any solicitor that protects your legal rights and provides a roadmap for the relationship), mortgage payment protection insurance (to protect you and your co-owners from hardship should you loose your jobs or are unable to work due to illness), and time (as much time as you need to get to know your potential co-buyer well enough to call them a friend or a business partner in the process), there is no reason why you cannot have a successful co-buying experience.

SharedSpaces.co.uk has over 2,500 registered members across the UK looking for someone else to buy a property with, joined by a common goal, to fight the affordability gap. Whether you are a key worker or a city high flyer if you’re looking for a mortgage mate, a property pal or a future friend to buy your first home with there seems to be plenty of people to choose from. I don’t know whether co-buying solves the long term problem of property prices rising faster than salaries, but it sure does seem to offer an option for those who have been left behind.

Moving - The Keys To A Successful Move

Every single year, the moving industry charges into action (usually during the summer months) as millions of people move from one place to another.

There are always war stories shared by those that have lived through a move, usually detailing experiences that could have been avoided.

Here we investigate the process of actually performing the move, and doing it safely and successfully. Afterall, so many take real care in the financial aspects of buying or selling a home. Why then, is there so much less concern with moving your home from one place to another? Aren't the things inside your home as important as the home itself?

Step 1: Take inventory of the items in your home!

Very often, there is little to no time to actually determine what items are really worth taking to the new home. Therefore, the typical approach is to PACK EVERYTHING! This is a safety mechanism that can add serious dollars to your cost of moving. To move those items you no longer want or need may require a larger vehicle, or more moving supplies.

Some items you may offer to the buyer to help increase the sale price. Other items you may be able to sell on eBay or at a garage sale. Did you ever consider that the money made from a garage sale could actually pay for your move?

Step 2: Organize and Pack your valuables wisely!

The most organized person I have ever met was my sister, who sorted all items into boxes by room, even if it was the attic or garage for storage. She had separated everything based on which room they were going into, not where they came from, packed them into boxes and used marker to write the contents and designated room.

Step 3: Buy the right moving supplies!

The one thing everyone needs, but no one wants to buy are moving boxes, moving supplies and packing materials. Consider how much your valuables are worth, and then consider whether or not it is worth spending some money to ensure that your valuables are kept safe during the move. Whether you have your big buddy helping you or a professional moving company, you are still much safer if your valuables are packed securely. DON'T use your friend's recycled boxes as they may no longer be sturdy.

You can find moving boxes, moving supplies and packing materials you need online at wholesalers like www.promovingboxes.com. Sites like these are all over and offer fast free shipping. Imagine, that old bike or furniture set you sold on eBay may even pay for your order!

Step 4: Hire a Moving Company!

Bluto the large may be a close personal friend, but very often should not be relied on to supplant a professional moving company. For one thing, favors are always repaid with other favors, which involve some manner of costs. Also, either your stuff, or worse your friends could get hurt in the process. Professional movers are insured, and so are your valuables. If a mover drops grandma's china set that was given to you as an heirloom, you may remember it forever, but you'll probably never see that person again. Your friend may not be so lucky. They could wind up with a permanent black mark when all they were trying to do was help you out.

Step 5: Take time Off before and after!

Don't leave a deadline of a weekend to move your home. It is never long enough. True, that most people take vacation to simply go on vacation. But here, you have 1 opportunity to get it all right! From start to finish, you have the opportunity to do everything right! Ever hear of someone who wanted to paint their new home first but couldn't because they had to get their stuff out of the moving truck?

Leave yourself plenty of time to perform all of the steps in your move. You will feel much better for it in the end. Those who take off often find that they have accomplished so much more. Either by organizing their new home, or cleaning their things as they unpack them. Most importantly though, those who take off can take time to enjoy their new home, and begin to plan for their future there.

We wish you the best on your move, and hope that you learn from the experiences of the many who have gone through it already

Calculate Cost Basis

How to calculate cost basis can be a confusing concept to those who contemplate selling their real estate. Along with fair market value and holding period, cost basis represents one the three key components in identifying the amount of potential tax that may be due on the sale of the property.

Unfortunately, how to calculate cost basis is not a common concept ingrained in us through our normal day-to-day educational experience. However, it very quickly becomes very real as we explore various real estate exit and transition strategies.

A good place to start in developing an understanding how to calculate cost basis is by defining capital gain. What are capital gains and how do they apply to real estate? In simplest terms, a capital gain is the appreciation between the original cost and current sale price. The federal government and most state governments tax this "gain" if the asset is sold.

The sales proceeds less any associated selling costs represent the "value" of the property being sold. It does not matter if the property is encumbered by debt or not in this calculation. And, it does not matter if all proceeds are received at the time of sale or not. The net result is still the value of the property at the time of sale - the top number in our simple mathematical equation to determine the amount of "gain" in the property.

In contrast, cost basis is the bottom number that is subtracted from value to give us the answer to our gain question. Simply stated, cost basis is the original cost of the property, plus any improvements made by the owner. Improvements can be items such as:

* Installing utilities on a building lot (electrical pole, well, septic system, etc)
* New roof or deck
* Remodeling the interior of the home
* Numerous other improvements performed by the owner

When selling property, it is imperative to define the cost basis of the investment. Accurately define any improvements made on the property and compare it to the current value. The difference is the capital gain and subsequent amount that could be taxed by the government during the sale. By having developed an accurate cost basis, you will be better prepared to take advantage of the various capital gain tax planning options.

Buyer Agents Vs Seller Agents: What's The Difference And Should I Care?

Are you unsure of what type of real estate agent to use when you are selling your home and/or buying a new home? Understanding the function of a real estate agent and what their relationship to you as a seller or buyer is tremendously important. For a first time home buyer or seller you should be aware of some facts, and clear out the cobwebs of confusion on the responsibilities and duties of a real estate agent.

Real estate agents, depending on the state in which you live, may only be allowed to act only as a seller’s or buyer’s agent. In many instances however a real estate agent may take on a dual role of representing both the seller and buyer. This type of agent is known as a dual agent. In other words they have a duty to sell the home for the best possible price for the seller, and at the same time are committed to get the best asking price for a buyer. This can be a somewhat upsetting for many people, but the best defense is being in the know about the legal and moral responsibilities associated with a real estate agent’s dual agency representation, and how you can feel positive about working with them.

In most states real estate agents are legally required to state which party they are working for. Most of the time real estate agents work for the individuals that are selling a home. Make sure to ask, if you are unclear so to alleviate any nervousness on your part. Always presume that any real estate agent is working for a firm that represents both a seller and a buyer, and if you are a buyer, make sure to keep to yourself any information that may affect any deals that are offered for your purchase of a house. Buyer’s agents have a loyalty only to the buyer. This is established by a signing of a contractual agreement between both the agent and the buyer. The buyer should be aware that agents are held to a legal and moral obligation to not reveal any personal facts not only to the home seller, but to the real estate agent. Material disclosure is allowable though about the property, such as any known pest infestations, or problems with the structure itself. A dual agency for a real estate agent is usually understood for them if they represent a buyer; make sure to check into the real estate agent’s status for your own serenity. Nonetheless, contract protection is afforded for anyone that is interested in purchasing a property through an agent that represents a seller’s interest by signing a contract to represent both.

If you are selling your home and you will be searching to buy a home in the same area you need to expect a reasonable amount of service from the real estate agent that represents you. The agent’s goal should be to fully represent your best interests. Your agent needs to clearly inform you if they will require you to sign an exclusive contract. This legally binding contract will require you to work with that agent only. You should always search around for an agent that will allow you to have other realtors working on your behalf to locate a new home for you. All agents should work diligently to help you sell your home by providing comparisons studies of the properties in your area, to handle any inspections or appraisals, and to work with your mortgage lender and in the loan application process. He or she should be more than willing to consider and respect your wishes when scheduling an open house for either other agents or for the general public. Agents should always be courteous about appointment times to meet with you, and should always leave a cell phone in case of unexpected issues surrounding the sale of your home. Your buyer’s agent should clearly explain all aspects of the contract to you. Issues such as contract compensation and their exact fees for selling your home, along with other important details such as how long you must list your home with them should be covered in a written contract. Never take their word for it. Get everything in writing. Be careful, verbal contracts, maybe legally binding.

Buying or selling a home should be a pleasant experience. Selling and buying is a serious decision that can influence your financial and emotional well being for years to come – consequences of how informed you are will be long lasting, many years after you have left the bargaining table.

Realtors Predict Falling Home Prices

According to the National Association of Realtors, home prices will probably fall temporarily as the housing market corrects itself.

Prices are expected to bounce higher in a few months "as the market works through a build in housing inventory," said David Lereah, chief economist for the NAR.

Median home prices are expected to increase 2.8% this year, with 2007 seeing an increase of 2.2%. Median new home prices are expect to rise only 0.2% in 2006, but are said to increase by 2.4% in 2007.

After inflation adjustments, the realtors project that median home prices will be lower at the end of 2007 than they are now.

Existing home prices have been rising at an average of 9.6% a year for the past four years, ahead of the inflation rate. New home prices were up 13.3% in 2004 and 9% in 2005.

"This year sales are slowing, home are plentiful and sellers are negotiating," Lereah explained. "Under these conditions, we'll probably see prices dip temporarily below year-ago levels as the market works through a build up in housing inventory."

The real estate group is forecasting existing home sales to fall 7.6% in 2006 and an additional 1.7% in 2007. New home sales are predicted to fall 16.1% in 2006 and 7.1% in 2007. Housing starts are expected to be down by 9.6% this year.

Getting The Most Out Of Your Investments

Money can be easily found, and then lost, in Las Vegas. The place is not called the ‘gambling capital’ of the United States for nothing, so you should be very careful with your money when investing in Las Vegas. Setting up investments in Las Vegas is not like gambling, where you rely on chance to win. In fact, professional gamblers don’t rely on luck to win, so you should never rely on luck. This is especially true if you are investing into stocks and bonds in Las Vegas.

When investing in stocks and bonds in Las Vegas, always remember that you would be better off with an agent or a broker. There are many things that you should watch for when making investments in stocks and bonds. You should never make the mistake of thinking that investing in stocks and bonds is just as easy as going to a restaurant and buying your favorite food. Buying stocks and bonds requires specialized knowledge, which a broker or an agent could very well provide to you. For instance, high yielding stocks and bonds entail the highest risk. If you were not aware that high yielding bonds and stocks involve great risk, you would probably go for them and put most if not all of your money into them. Consequently, if the investment failed, you would end up losing most of your hard earned money. On the other hand, a good broker or agent knows the odds. So he or she would probably advise you to only put money that you can afford to lose, into high yielding stocks and bonds that involve great risk. Having an agent or broker to assist you will prevent you from losing large amounts on your investments.

Finding Help

Have you ever tried buying investments in Las Vegas on your own and ended up with a bad investment that drained you financially? Making investments is supposed to give you income and not drain you financially, so it is never a good practice to make investments without consulting a good investment consultant. This especially includes those that involve a large amount of money. You may not have thought about it before, but you could easily make the wrong investments when you don’t take every precaution. It could cost you a lot and even drain you financially. So make sure that before you do make any investments, you get all of the information you need, including the expert opinion of an investment consultant.

There are many advantages in getting an investment consultant, especially if you can afford a top-rated investment consultant. What are the advantages of getting top-rated consultants? First, an investment consultant is very knowledgeable on certain investments that you may want to engage in. With their specialized knowledge in certain fields, they can give you sound advices that could help you make the right investment. Secondly, a good investment consultant can help you plan out your investment schedules. If you have a large amount of money that you want to invest, the consult can help you plan out your investment in such a way that you could reduce the investment risk. Third, with the help of an investment consultant, you can find the best investment opportunities in Las Vegas. Investment consultants can guide you and help you earn profits from your investments, which is the best reason to ensure you get one before investing.

3 Tips To Buy A Cheap Foreclosed Home From Government Auctions

How to buy a cheap home? Well, the answer most people could come up to address that question is through buying foreclosed home from government auctions.

National and most of local governments are regularly holding or sponsoring foreclosure or auctions of repossessed homes. There are governments that offer such on a monthly basis, while others make it quarterly, semi-annually, or even yearly.

However the repossessed home is priced, the more important thing, and the significant idea you should always bear in mind is that you must always aim to buy at cheap prices.

Here are some useful and practical tips that could help you forge a cheap deal if you are aiming to cheaply buy a foreclosed home from a government auction.

1. Inspect the home very carefully. Check all the minor and negligible details. Sometimes, you could be surprised at how some homes are overvalued when in fact, the damages and defects can practically scrap or significantly mark down the tag price.

2. Bring an expert when looking or inspecting a foreclosed home during government auctions. Sometimes, you have to recognize other people's profession and expertise during times when they are needed. Buying homes is an activity expert home buyers and valuators can easily get across at. Take the sidelines, for a while.

3. Bid, but start at a low bid. Since the auction is just like a contest, where you would aim to compete with other bidders for a home, make sure you do not over price the foreclosed home. Otherwise, back out, and let other 'willing' people have it if they are willing to pay the premium price.

The most important thing to bear in mind when buying foreclosed homes at government auctions, is to maintain focus, both on the home and on the tag price. The two should never be separately seen.

Just the Facts: The Duties of a Real Estate Agent

As a real estate agent, you will help people buy and sell houses. You will enroll in a real estate license program to get the knowledge you need to accurately and legally perform your job. This will give you the knowledge to know how much a house is worth, and the skills to accurately represent the cities and neighborhoods in their area. You need to have practicing knowledge of the laws involved with the real estate process. You should also know where a buyer can secure financing.

If people want to buy or sell a house, they get the assistance of a licensed real estate salesperson. Your duties may vary, but you will typically perform the following tasks:

Buying a House

You will meet with the buyers to determine what kind of house they want.
You will discuss how much money they can afford to spend.
You will take them to see houses for sale.

Selling a House

You will complete the proper paperwork to list a house for sale.
You will assist the seller with selecting the sale price for their home.
You will create and place advertisements to get potential buyers into the house.
You will hold open houses.

After the Sale

You will fill out special forms to transfer ownership.
You will help the buyer secure a loan from the bank.

As a real estate agent, you will generally work in an office setting. Since much of the information about properties is available over the Internet, you can also work out of your own home. You might need a formal office, however, to meet with current and potential clients. A lot of time will be spent showing potential properties to buyers, as well as finding new business.

After you get your real estate license, you will work for a broker. When you sell a house, you will receive a commission, a percentage based on the total purchase price of the house.

Mortgage Marketing - How to Find Your Niche

Your success in the mortgage industry is dependent on you becoming an expert. A mortgage marketing plan built around a niche helps you become one.

For instance, if you were remodeling a kitchen with top of the line appliances, would you go to a high end appliance store or a discount department store?

The department store will offer you all kinds of appliances, as well as tools, clothes, etc. while the high end appliance store is an expert at their products. The high end store has a reputation with being cutting edge and finding the best available appliances. And that reputation is well deserved.

With a reputation for excellence, these high end stores don’t have to spend time cold calling for clients. Instead, new prospects seek them out to do business with them. These businesses have successfully found their niche and they are reaping the profit of being positioned as experts.

It’s not difficult to become an expert. It’s possible that you are already on your way. You become an expert when you combine repetition with disciplined research, self-study, continuing education, and practical experience.

When you establish a position within a particular niche, you become a source of information, for clients and real estate agents.

Realtors want to work with someone reliable; someone that understands all the potential problems that can arise in a loan application process. Agents want to work with someone that can save them time and money.

Loan Officer Marketing - Creating Expectations

A loan officer marketing to generate loans doesn’t need to be difficult. Sometimes it’s simply knowing where and how to start. Your best starting point is to create expectations. Loan officer marketing that focuses on building expectations captures easy opportunities and makes your job easier.

For example, remember the experiments of Pavlov and his dog? Pavlov trained his dogs to receive a treat each time a bell was rung. Eventually he removed the reward and simply rang the bell. The dog responded by salivating every time the bell was rung, expecting a treat.

Pavlov created an expectation for the reward and his dog quickly learned the drill. We aren’t all that different from the dogs. People frequently have a perception about an experience, and our perception creates an expectation about our experiences.

Let’s say you’ve read a newspaper rave review about a restaurant. When you walk into the lobby of the restaurant you are impressed by the elegance and luxury, you’re sure you’ll get a great meal. Because you’ve built your expectations to believe that you’ll get a great meal, the food and service is remarkable.

There are many examples of how our expectations shape our perceptions, but it’s more important to consider how you can use perceptions of service to your benefit. Keep reading to learn how you can you shape expectations about your business.

Improve Your Materials

Take a look at your marketing materials. Do they give the impression or create an expectation of a trusted and highly skilled loan officer? Is there anything about the materials that make you look smart, competent, and experienced?

Your materials create the first impression with your prospects. They establish the expectation for your service. Do you need to improve your materials?

There are two important elements in your materials: brevity and image. Your window of opportunity is narrow. For instance, a loan officer marketing to Realtors only has an agent’s attention for a brief amount of time. This isn’t a good time to expound on your services. It’s a “just the facts” moment. Images can sometimes covey powerful emotions. Consider using pictures to communicate part of your message.

A Website Shapes Expectations

Your website may be your most powerful loan officer marketing tool. Your prospects will often first look at your website to see if you look like a competent professional.

Does your website look like it was developed by a professional? Is it easy to navigate? Does it present information clearly? Does it appeal to both Realtors and consumers?

One way to evaluate your website is to compare it to other mortgage professionals. Your site should be an educational source. And it should distinguish you from the competition.

To get the attention of Realtors and establish an expectation of excellent service, your site has to address their needs. Just like with your other materials, the use of images can pack far more powerful punch than mere words.

Use Touchpoints For Emphasis

The expectation delivered with loan officer marketing materials is reinforced by those occasions of contact between you and the prospect. This contact is referred to as “touchpoints”, and can refer to human, product or system touchpoints.

For instance, when a client calls your office and the call is answered by your friendly and courteous receptionist, this is a human touchpoint.

When you send Realtors an invitation to meet and discuss opportunities, you set an expectation with the quality of your letter and materials. This touchpoint is a product touchpoint.

When a Realtor calls your office and receives your voicemail with a professional greeting, that is considered a system touchpoint.

Each touchpoint is an opportunity to establish an expectation for your service. Think about every possible contact as an encounter and make those encounters a clear expectation of your professionalism and competence. Your loan officer marketing will seem exceptional, and just what the prospect is looking for.

Jeff Nelson helps loan officers increase loan originations by attracting quality relationships with real estate agents from the development of customized relationship-building strategies.

Save Money and Move Yourself

Have you decided to save some money on movers and move your furniture yourself. If so you have taken on quite a job. Moving can be difficult and tiring but this article will give you some tips to help make your move go smoothly.

First off you need to make sure that you reserve a moving truck well before your move. Rental companies can and do sell out of truck rentals. Order your truck at least 3 weeks in advance. Longer if your move is at the end of the month when most trucks are rented. If you want to save some hassle you can rent one during the middle of the week. They are easier to get during the week and the rental store will not be as busy so you will get in and out faster.

Next be sure to pack a few days before the actual move. There is nothing worse than having to pack the day of the move or the night before it. Moving will go much easier if all you have to do is load on the day of the move. Be sure to mark the boxes accurately so that they get put into the right room. Pack a separate box of things that you will need immediately like a change of clothes and toiletries.

Lastly when you load the truck fill up the granny's attic (if so equipped) with boxes first. Then load the heavier items towards the front of the truck. If possible load the items that you will want immediately last.

After you load the truck and are preparing to leave use caution. A loaded moving truck does not handle well. Give yourself extra time to stop and turn at a slower speed. Good luck and happy moving.

Consider Homeowner's Insurance When Purchasing Real Estate

Whether it’s a buyer’s market or a seller’s market, real estate is always a hot business. Sure, everyone likes a good deal, and many buyers choose to purchase a home when prices are low, but the fact is people always need places to live; that doesn’t change just because property prices are high at a particular time.

There are ways to save money when shopping for real estate that go beyond just shopping during a buyer’s market. Once you’ve figured your budget and have a general idea of what kind of home you’d like to buy, it’s time to go house hunting. This is where saving money comes into the picture.

In order to save money on real estate costs, many people opt to purchase “fixer upper” real estate. A “fixer upper” is a home that needs a lot of work; maybe new floors, new windows, even a new roof. Buyers choose a “fixer upper” not only because the price is less than that of a home that’s in move-in condition, but also because they see great potential in the home.

While it’s true that buyers can save money by purchasing “fixer upper” real estate, they can also lose money in the long run. Aside from the costs of repairs during the “fixing up,” homeowner’s insurance tends to run much higher for people whose homes aren’t in the best condition. Homeowner’s insurance isn’t usually mandatory, but if a buyer has to borrow money from a bank in order to purchase the real estate, the bank may just require the buyer to purchase homeowner’s insurance until the debt is paid off.

So, the next time you head out to purchase real estate, keep in mind that you may be required to purchase homeowner’s insurance, as well. A “fixer upper” might sound good when you’re making your offer, but it might not sound as good once you start looking for homeowner’s insurance.