Real Estate Agent - How They Make Money

Have you ever wondered how your real estate agent gets paid? Sure, there is talk of commission, percentages, fees, closing costs- all of these are broken down at closing. But, what does he actually get? Surprisingly, you do not pay your agent a commission. Only a licensed broker can get paid a commission and he is the one who pays your agent. There are also a number of ways to divvy up the pay. The person who worked so hard to sell or find your house may not be making as much as you think. Here are some of the ways the money makes it to your representative:

A real estate agent works for a licensed broker or brokerage house. When he brings a client to the table, either for buying or selling, an agreement is signed between the client and the brokerage house. Typically when a sale is made, an average of 6% of the sale price is commission for the brokers. It is not always a straight split, but close to half, which goes to the broker representing the seller and the buyer.

Once the commission is divided up between the houses, the brokers then decide how much to pass down to the agent who actually did the leg work. This amount varies depending on experience, time with the company and the productivity level of the representative. A brand new representative may only get thirty percent of the cut where as a seasoned pro that brings in a ton of business, may get half or more of the proceeds.

Another option is that the agent gets all of the commission, but pays a monthly fee to the brokerage house. This is sort of a rent. He gets an office and uses the company name to back his reputation. This is an attractive deal to many representatives, because they pay the same amount every month, no matter how much they make. For new people to the business who have not built up a client list and do not benefit from word-of-mouth yet, the traditional split is usually preferable, because they may not make enough every month to make the set payment.

There are some factors that eat into the final profit made by the brokerage house and the representative. If the house is a franchise, there is a fee that must be paid to them out of every commission. Sometimes referrals come into play as well. If a brokerage house sends a customer to you, they will want a referral fee. There is a percentage that also comes out of the commission.

Typically, this commission is paid by the seller at closing. However, depending on the type of market, this is negotiable. Another negotiable point is how the commission is divided. If you are having a difficult time in selling, because the market is flooded with houses, you may want your representative to offer a bigger cut of the commission to the buyer's representative. This may help close the deal.

So, as you can see, there is more to the payment than simply figuring 6%. After everyone else gets the money, your real estate agent is then paid the amount.

How to Hire a Real Estate Lawyer

Most people by now have heard of the benefits of using the professional services of a real estate agent, home inspector or mortgage broker in the real estate transaction process. However some buyers and sellers my not pay as much attention to choosing the real estate lawyer that will be representing them from the time they sign on the dotted line to the closing of the deal itself.

If you are a first time home buyer or seller, it is always a good idea to be safe with the paperwork and transaction. The safest way to make sure everything goes over smooth is to hire a real estate lawyer. They can handle a lot of the details for you and make sure that everything is taken care of properly. But do you know how to hire a real estate lawyer?

It is really a fairly simple process to hire a real estate lawyer. Before you do anything, it is always a good idea to talk with family, friends and neighbors for referrals. If you can get a good referral, you may be able to save yourself the hassle of searching for days for the right lawyer. But even after you get a referral, still make sure to research the lawyer before making any rash decisions.

The next place to look is with local real estate brokers. Real estate brokers are constantly associating with lawyers that deal with real estate. This is one of the many advantages you can get by hiring a real estate broker is the ability to find a quality lawyer. Therefore, talk to local brokers to see who they refer you to.

It is important that you understand you should keep all of your options open. The more referrals you can get the better. Then you can take the time to research and call all of the referrals you got to see who you think would be best for you.

Aside from getting referrals, you may also want to look in the yellow pages under Attorney: Real Estate. This will give you a list of local real estate lawyers you can call and talk with. It can be a bit tedious looking in the yellow pages and calling up random numbers, but it is worth the time to find the right lawyer.

The next step toward how to hire a real estate lawyer is to prepare a list of questions that pertain to your situation. Typically, simple questions lawyers will answer over the phone allowing you to get a general idea of whether or not it is the right lawyer for you.

The last step before hiring a real estate lawyer is to ask how much each charge per hour and request a general time frame of how long it will take to complete the tasks you require. This should include looking over contracts, handling disclosures and helping with the closing. After you have done all of this, choose the lawyer you feel will be best for your situation.

Luxury Beach Villas - Some of the Most Luxurious and Affordable Homes - Just South of the Border

Mexico has seen a lot of growth in the development of luxury beach villas, exquisite surf side residences and vacation homes alike. There are some very affordable luxurious oceanfront property options to explore, just south of the border, and well worth checking into.

Whether you are looking to purchase a home, looking for beachfront real estate investments, or checking out vacation homes for your next holiday, Mexico has a lot to offer.

Why The Move To Mexico?

A large number of Americans have chosen the Baja area as their permanent or retirement home because of its various enticements: beautiful luxury beach villas, ocean views, beaches, mild climate, relaxed lifestyle and the warmth and friendliness of its people. But probably the biggest reason for the move south of the border is the lower cost of living and the close proximity to southern California. Some of the most exclusive beachfront real estate can be found in the Baja area; luxury beach villas, seaside estates, and beautiful vacations homes all at far lower prices than the same type of homes just a few miles away in the states.

Area Attractions and Features

The Baja area attractions include tours of its wine country and colonial era missions, ecotourism options in several natural parks, deserts and protected areas, hunting and sport fishing, and water sports like snorkeling, surfing and sailing. Whale watching is another favorite attraction and tours are quite popular during the season from January to March. With so much to offer; a warm and friendly atmosphere, mild climate and accessibility by land, sea and air, the Baja area has been the choice of tourists for decades when in search of the best value vacation homes.

Not only do visitors to this area receive more amenities for their money but the vacation homes located on oceanfront property in the area have the most breathtaking views of the Pacific Ocean and most beautiful sunsets in the world.

Living a Luxurious Lifestyle in your Affordable Dream Home

Known for their architecture and amenities, luxury beach villas, exquisite surfside residences, and private homes on oceanfront property are all favorite choices for Americans moving to Mexico. The reason the move to Mexico is more affordable is just a matter of economics. You get far more home for your money. More space, more amenities, more luxuries, and more enjoyment from living a life that would be less affordable in the US. Beachfront real estate has become overpopulated in most areas stateside leaving the opportunity for privacy and enjoyment at a far lower level.

The trend for development of beachfront real estate in the United States has leaned more toward the building of high-rise condominiums and large resort type residences. In Mexico there are many communities that were developed to cater to those wanting to get away from it all and enjoy a more private less inhibited lifestyle.

Now that we've taken a look at why other Americans are moving south of the border to improve their lifestyle and save some money, you may want to check it out for yourself. Finding a new home in the Baja area or any other area of Mexico isn't as daunting of a task as you may think. A simple search on the internet will help you start your search. For an up-close look find a community with homes for sale and ask about their free tours and specials. Many new communities offer you first-class service tours and are very helpful in assisting you in finding the oceanfront property home of your dreams.

Do you want to escape to your very own beachfront paradise?

If the answer is YES, we have an exciting online private tour you've got to see!

The Benefits of Becoming a Real Estate Bird Dog

The best benefit of becoming a real estate bird dog is that you get paid for your information while learning real estate investing. Check out the following list of benefits of bird dogging real estate:

You don't need to have a college degree in order to get started real estate bird dogging. Unlike real estate agent, you don't have to sit for examination. So long as you have the right attitude and willing to learn the trade, you can make money by locating properties for real estate investors. Investors will be more than happy to work with you and accept your offer to work and generate leads for them.

You don't need to buy properties. Your task is to locate properties and then compile the required information such as parcel address, lot no, name of owners, title records and so on for your investors. Therefore, you don't need to worry about your credit, your bank balances as you are not required to buy any properties.

You can start in your spare time and work at your own hours. You can start bird dogging in your spare time and supplement your full time income. So, you are basically your own boss and you don't need to report to anybody but yourself. You decide how many hours you want to work every week. You can start out as a a part timer and the best part is, you get to write your own pay check.

Generate income without risk - Bird dogging is basically a risk free method of generating extra income in your spare time. You can easily make few hundred dollars a month by passing information to investors.

Bird dogging real estate is an attractive way of learning real estate investing while getting paid for the information. It is never too late to get started as the demand for the service is huge.

The Bright Side to the Slow Housing Market

Believe it or not, there may just be an upside to the slow housing market. There is a lot more bad news out there than good news, with record numbers of foreclosures, the largest inventory of homes for sale ever, and a mortgage industry that is increasingly stingy with loans. What could possibly be good when so many things are bad?

As only a pure optimists would, I have come up with a few things that may brighten up the dark void of the housing market. We know that new construction has slowed down considerably, and home prices are dropping due to the foreclosures. Can anyone make money in a market like this? Absolutely. The laws of investment tell us to buy low and sell high. If you have the opportunity and the means, now is the time to invest in property. Prices are at a low, inventory is high, and rates are at their lowest levels in years. If you can afford to sit on property for a little while, then the benefits in the future may far outweigh the cost.

This poses a problem for the middle class citizens though. Gas prices are at an all time high, the dollar is weakening, and expendable income is decreasing with rising fuel and food cost. If we can't invest in a new home, what options do we have?

With interest rates as low as they are, it may be a smart option to try to refinance your existing mortgage. If you have equity, you can try for a cash-out refinance, and take your homes equity and pay off consumer debt such as credit cards, loans, and other monthly payments. You can also use these funds to make additions or improvements on your home to increase its value, such as finishing a basement, adding tile, updating fixtures, or remodeling bathrooms and kitchens. These will prove to be valuable investments when the market turns around, and you may find that you get your money back in equity faster than you think.

The ultimate goal is to find creative ways to make the best of the situation. It's time to reverse the effects of spending more than we make. If the average consumer can use the low points of our economy to find ways to decrease debt, lower interest rates, or make good investments, then the long term results are more usable income for really stimulating the economy and investments in retirement accounts. The most important thing to keep in mind is economic discipline and planning ahead for the future.

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Find Your Dream Spanish Properties - Which Are Available For Sale

Spain is different!

Spain is a wonderful country and so big, vast and widely known for Flamenco music and dance, bull-fights, fantastic beaches and lots of sunshine, Spain has to offer much more than that. Spain has beautiful cities and towns, offering really old monuments as well as futuristic architecture. Its various regions are all different one to each other, geographically, climatically and even in personality. It is a fascinating country to know and to know more about it before planning to buy Spanish property for sale you must have a sound knowledge of the Spanish property market. Use one online database service to manage your Spanish property. Online you can have a quick access to genuine requests for properties within hours of listing Spanish properties for sale.

Essential things about Spanish property:

1) Learn the Spanish language first if you are foreigners. This will help you
-to understand what will ease the process.
- To negotiate prices better
-to prepare you for settling down in Spain.
2) Know the health care facilities and the basic medical supplies offered.
3) Schools and education
-this information will help you be better prepared when you land there
-prepare your children for their education.
4) Seek a real estate agent's help
-hire a real estate agent who will guide you better and get you the best deals in the market.
5) NIE number
-to invest in any Spanish property you will need an NIE number.
-It is a unique tax identification number that will enable you to complete formalities of any property purchase.
-You will get this number through a solicitor.

Owning a Property in Spain, Living in Spain or even Retiring in Spain is a dream of many people. There are two million foreign property owners in Spain and vast majority of who are happy with their Spanish property purchases and encountered negligible or no problems when buying their homes. Currently 50.000 houses in Spain were sold each year and a group of Spanish property organizations estimated that 226,000 British, 135,000 Germans and 35,000 Scandinavians are living here.

Advices when buying property:

1) Visit the site and consider more than one region.
2) Watch legally and take high degree of protection under Spanish law.
3) Take and pay the services of reputable Spanish lawyers.
4) Check out all the legalities prior to signing any documents regarding the sale.
5) Don't buy during inspection trip.
6) Don't buy just because it seems cheap - it might not be!
7) Research the Spanish property market first and then drive a bargain from a position of market knowledge and strength.

Bend Oregon Mortgage Defaults Skyrocket

The Bend Bulletin reported Sunday that the Bend Oregon real estate market is not doing well. There were 788 notices of default filed in Deschutes County for the first six months of 2008.

A notice of default occurs when the mortgage lender files a notice of foreclosure. Lenders generally file notices after a borrower is two to three months behind on their payments. As foreclosures increase lenders tend to file notices sooner to try and cut their losses.

There were 192 notices of default filed in 2007 over the same time period. This year's defaults show a 410% increase over last year. Prices continue to fall as more bank repossessions come on the market.

The Bulletin reported that 75% of the notices of default filed this year were on homes purchases made in 2006 and 2007 at the peak of the Bend Oregon real estate market. Not all of these notices of default will result in foreclosure. Borrows have an opportunity to bring the loans current. If they do the default notice and foreclosure proceedings will be stopped.

Most homes purchased in 2006 and 2007 are currently worth substantially less now than they were then. If a purchaser bought a home during these years with nothing or little down they cannot sell their homes and pay off the mortgage.

Some lending institutions are allowing owners to sell their homes for less than they owe. The bank takes the loss. These are known as "short sales".

If a loan is not brought current after 90 days of the notice of default the lender will put the home up for auction on the court house steps. If the home isn't sold for more that the delinquency the bank takes possession. Thus the name "bank repo".

The increasing number of short sales and bank foreclosures will add additional lower priced homes to the market and continue the price decreases we are currently experiencing. Prices are currently down approximately 23% from this time last year.

The latest market report for Bend showed that the median prices of homes rose slightly for June 2008 over June 2007. Statistics can be tricky though. There were 22 homes sold over $500,000 and one of those homes was a sale for $3,000,000 during that period. Naturally that increased the median price substantially. The average price per square foot was up also.

The fact is our prices are still falling and will continue to fall until bank foreclosures slow down considerably. A decrease in notices of default will predict a decrease in Bend foreclosures. The current amount of notices of default guarantee more bank repos will be hitting the market this year.

Bank repos can sometimes be a good buy. The banks have to sell them to get them off of their books. Country Wide and other lenders made mortgage loans of question over the past several years and they are now coming back to haunt the banking industry.

There are currently many homes on the market in Bend that are over priced. The values continue to fall and people won't lower their prices to market value to sell their property.

Inflation is up. Gas prices are up. Unemployment is up and it seems that interest rates are inching up also. I don't think the Federal government will let interest rates get too high. But you never know. They raised them to 16% in 1981.

Keep an eye on mortgage notices of defaults and they will tell you where the real estate market is headed in Bend Oregon.