How to Value a Freehold Property

There are no yardsticks to measure the value of a freehold property. This is because evaluating a freehold is not an accurate science. However, you can follow certain guidelines on what you need to take into consideration when valuing a freehold, which is produced by the advisory services that give free advice to leaseholders. You must also take these three factors into consideration:

1. The current value of the property

2. The annual ground rent

3. The number of years currently left on the lease

Also, evaluate the expected percentage increase in property value that results from extending the leases of different lengths, along with forecasted long term interest rates and inflation rates.

Take help from an expert valuer rather than trying to work out a figure all by yourself, to present before the freeholder. An expert valuer will be able to give you the best advice, which will enable you to make a practical offer.

You will find expert valuers online. They will help you with the entire process of negotiation and buying the freehold.

For the benefit of the freehold, most surveyors add a little extra to a property’s value. This is done after comparing it with similar property with the same number of years on the lease but no freehold.

First, approach your freeholder informally, before you serve him with a first notice. This document should include your preliminary offer for the freehold, which starts off the legal process of buying it.

A word of caution. Never produce an initial notice without obtaining an expert valuation. If you make the wrong evaluation in the initial notice you won’t be able to take back the offer. After the initial notice, wait for the freeholder to reply to it with a counter notice by a date that you have given. The freeholder must be sanctioned at least two months from the date the initial notice is served.

If the freeholder is not sending his counter notice within this period, the leaseholders can take matters into their hands. They can apply for a vesting order at a court. It is now up to the court to move the freehold to the leaseholders. So freeholder’s should respond on time to the initial notice for their own benefit.

Buying a share of freehold will make little profit if you already have had a decent length lease. You would still have to give the same authorized costs as someone with a short hire, but would lead to a drop in the value of the property.

Tips To Get Your Search For Homes For Sale In The Right Track

Buying a house is a major financial decision that will not only give you a peace of mind, but also a wonderful place to live, and of course, the perfect location to start a family for those who are planning to settle down. Sooner or later, you will have to decide to settle down on your own home that will be considered as the best location to start a family.

That being said, it is important to greatly consider the factors that will affect your everyday living experience. The following tips will help to get your search of to the right start. While it is important to note the number of rooms, the size of the yard and the layout of the kitchen, there are several important things you need to consider before making an offer.

Avoid trying to time the market

- Trying to time the market when you are planning to purchase is impossible. Considering whether the market drops low or gets too high will only prolong and possibly make you lose your chance of owning your perfect house of choice. The best time is when you find the best one that you can afford. The real estate market is cyclical, and waiting for the perfect time will only make you miss out on an opportunity.

Location

- Proximity to essential establishments and the surrounding people can give great impact in your living environment. You can overlook a couple of imperfections in a home if you love the neighborhood and neighbors. As most would say, three of the most important factors in buying a home is location, location, location. When choosing, you need to consider its proximity to your work and other essential establishments, environment or the neighborhood, and public transportation.

Inspection

- Of course, you will need to check everything out inside the house. When you have finally narrowed down your list of choices, it’s time to hire a home inspector. It may cost a little but in the long run, it will end up saving you thousands. This will help you gain the best information regarding the new home so that you can make the best decision as to whether or not take it.

Financial Considerations Of Home Ownership

While we often, refer to, home ownership, as a core component, of the American Dream, it’s important, for us, to take a realistic look, at the obligations, and necessities, involved, if this is, to truly be a dream, instead of a potential nightmare! Before embarking on this house – hunting, process, carefully, introspectively, objectively, examine and consider, your personal reasons, persona, what makes you happy/ satisfied, and whether, it’s a good course, for you. After, you’ve determined, what’s best, for you, and know, what you want, it’s essential to clearly consider, and examine, what you might be able to afford. This means, proceeding, in a responsible, well – planned, and considered manner, focused, on preparing for the many contingencies, of home ownership. With that in mind, this article will attempt to briefly consider, review, and discuss, a few steps, which should, both reduce unnecessary stress and hassle, and maximize the potential enjoyment!

1. Reasons for buying that house: Why do you want to buy, any specific house? Does it meet your present needs, and into the future? Or, are you looking, at a shorter – term, and want to live, there, for a shorter – span, and, then, relocate, when needed and necessary? Are you the type of person, who enjoys moving, or would you rather, remain in your present quarters? What are your needs, goals, and priorities, in terms of location, neighborhood, schools, costs, transportation, conveniences, etc? Why, this house?

2. Down – payment: Do you have the necessary funds, to have the down – payment, while avoiding, placing too much stress, on yourself, because of using these funds? Smart homeowners prepare, and make their journey, far less stressful!

3. Needed reserves: The best way, to proceed, is to put together, several reserve funds, in order to ease your way, forward! Once, you’ve purchased your house, most people face monthly fixed expenses, which includes mortgage payments (including principal, taxes, and escrow items, such as insurance, etc), utilities (electric, heat, telephone, television, internet, etc). Realize, owning a house, requires preparation, for affording the costs of regular repairs, including appliances, heating, water, etc. Create a reserve fund, for this specific area. Also, realize, houses require attention, and certain items, have useful lives, and will need replacing, such as roofs (rated from 20 – 40 years), appliances (including washer, dryer, refrigerator, oven/ stove, dishwasher, etc), painting or power – washing, etc. At some point, many realize, their house needs certain upgrades, renovations, etc. The better prepared, the easier this process!

Evaluating the Market to Decide on a Price to Offer

The easiest way to obtain such data is from a licensed real estate agent. They can provide you with details about recent condo sells and the prices they sold for. This includes the location so you can compare prices for various neighborhoods. Such information is public record so you can get it on your own too if you aren’t using a realtor. It does take time to compile though.

Get it in Motion
You don’t want to drag your feet when it comes to getting one of the condos for sale in though. Most of them don’t stay on the market long at all. If you wait, the prices are going to continue going up. You also risk the locations where you would like to live not offering much. Prime locations such as the downtown area sell very fast!

Evaluating the market to find out what the price range is will help you to make an offer. You want to get the best deal you can. Avoid emotionally making an offer because you can’t stand the thought of not getting the property. If you can’t afford it, you will be stressed very month about the payment. Don’t put yourself in a position where they could possibly foreclose on you.

Offer Versus Asking Price
You may assume the demand for condos for sale in means the sellers can set the asking price and they always get it. This is why you need to do your homework before you place an offer. If a location is priced thousands more than what others in the area have recently sold for, you need to question why. Does it offer more value or is the seller after more money?

You can’t blame the sellers of condos for sale in for trying to get the most money they can for their property. If someone is willing to pay it, they are going to ask for it! However, most of them are also willing to accept a reasonable offer that comes to them. If you put that offer out there, they may accept it!

What if they Don’t?
One of the fears is the seller won’t accept your offer. You don’t have to worry too much about that when you try to buy one of the condos for sale in. Just put the reasonable offer out there as a starting point and see what happens. If they don’t accept it, are they willing to negotiate at all?

If the answer is no, you have to decide if you are willing to pay the price they are asking. If not, you need to look at one of the other properties available and repeat the process. If they give you a counteroffer, it will be somewhere between what you offered and what they asked for. You can accept it or you can give another counter offer.

This process can continue until you agree on a price or until one of you is no longer willing to budge. This process takes a bit of time, but it can save you a great deal of money on one of those condos for sale in high in demand. It certainly doesn’t hurt to give it a try!

Tips for Getting New Clients As a Realtor

Admit it or not, finding clients on the vast real estate market is very challenging. It is challenged by the existence of big real estate firms which employ hundreds of experienced real estate agents on their teams. If you are a newbie, you could easily be swallowed by the efforts exerted by the established firms. But have you ever think that they also started out as rookies in the field? If you are in this situation, here are some tips to at least give you a leverage on finding the right clients for you.

Create your own circle of offline connections and influences. As much as the online world is essential to widen your connections, the offline connections and influences is equally essential. Start with your family and friends. Then add your past classmates even those from your elementary days whom you still remember. Your teachers can be great additions. Move on to those whom you are tapping services as professionals such as your doctors, dentists, hair stylists, pet groomers and fitness coaches. The parents of your children’s classmates and friends can also expand your offline connections. If you have business contacts, add them as well. Don’t forget your neighbors. They can be great sources of referrals.

Build a better online network of friends. Through social media, you, as a real estate agent is bestowed greater power to enhance online connections. Your network can be a greater web of interconnected persons starting with your family members down to their own friends, acquaintances, friend of friends, and so on. Before you notice it, your network has expanded to include professionals of diverse titles not only in your locality but also in adjacent towns and nearby cities. If you think they are not relevant, you may be wrong with the impression. Anyone in your online network of friends can always be a great source of referral even those who you seldom see to be adding activities in their social media accounts.

Send mailers, both online and offline. Now that you have established both your online and offline connections, it is time to introduce yourself as the rookie real estate agent. For offline mailers, be sure to have a formal tone. Give your full name, license number, the firm you are connected too, its address, and contact numbers of you and the firm. Inform them of the services you are offering.

For online mailers, the same can be followed. But since it is an electronic form, you may want to add some enhanced graphics and video.

Create your own website. For personal branding, having an own website is an essential. This is where you can provide listings, value added services, frequently asked questions, and even informational articles that can help spark the interest of your potential clients. Support it with a blog, and connect it with your social media accounts in different real estate online platforms.

Consider Resale Value Before You Renovate

When doing renovations, people rarely think about long-term resale value. Most families just want a really nice place to live and they work to create their forever home. However, life can be unpredictable. So while it is joyful to make a dream home, those dreams need to be balanced with an understanding of whether or not those granite countertops or that second story are good investments in the long run.

What is resale value?

We hear the idea of resale value quite often pertaining to real estate. The ideal is to buy a property that is a good investment and to have its value appreciate. Good maintenance and appropriate renovations help ensure that when it comes time to sell again, the property has gained equity and you’ll make money.

However, the amount of money you’ll make depends on market appreciation. Which is why it’s important to make improvements that fit the property and the neighborhood.

Location the key factor to consider

If you’ve bought a property by a highway or another not-so-great location, you probably got it for a good price. If that location’s value doesn’t increase during the time you own it, you’ll probably have to sell it for a similarly good price, even if you’ve done a lot of work on it.

Many property owners invest in renovations that aren’t in keeping with the neighbourhood. As a result, they end up selling for less than they invested, which can be heartbreaking.

Before you renovate, look at what has been selling around you – at what cost for what quality? If the most expensive home in your neighborhood sold for $400,000 after being completely renovated, it doesn’t make sense to style your house to a value any higher.

And really, how special are those $10-per-square-foot tiles anyway? Go with the $5 tiles instead.

Focus your investment to one or two elements per room. Make pricey items such as granite countertops, a fancy backsplash, or a higher end faucet; work like show pieces, similar to a piece of art.

Smallest may be best when it comes to resale
As for adding a second story to create more space for an expanding family, it may be worth it in the long run to hunt for a bigger home.

If you invest an extra $100,000 on a two-bedroom bungalow in a neighborhood full of two-bedroom bungalows, you may never recover that full investment. It may be a much better idea to take your equity and find a larger home in a neighborhood where your investment will hold and even grow in time.

When it comes to resale value, it’s always better to have the smallest house in an area with mansions rather than a $600K house surrounded by $300K houses.

Of course, creating a joyful home should always be the first priority. Just make wise decisions that will bring you prosperity and happiness for years to come.

The Power of Momentum

3 Steps That Will Guarantee Your Success

I am a big football fan. I watch every Bronco game, and the one thing that really stands out to me week after week is that momentum can often times win or lose a game. When a team can get the momentum on their side and stay motivated and consistent, they should always win the game. They only lose if the momentum shifts. Real estate is no different.

Once you get the momentum, you need to stay motivated. When you start to experience success, the last thing you should do is take it easy, which is probably what you will want to do. It is a good idea to reward yourself for your success, but do that and come back focused.

Sometimes it is hard to get the momentum in your favor because you are not sure what activities will get it going. Momentum always starts with a single success and builds from there; and it should be able to build as your confidence goes up. You should feed off your accomplishments. Here are three sure fire steps to get momentum in your real estate business.

Set your goal

This needs to be a short term goal that is challenging but realistic. Short term is thirty days or sixty days at most. An example would be to have a house under contract in the next thirty days.

Believe you have already accomplished your goal

I cannot overstate the power of this. You will accomplish the goals you believe you can, or better yet, believe you already have accomplished. The concept is simple, but the implementation is challenging. If you have never done a deal how can you believe that you will have one in the next thirty days? There are several strategies for this, but something that I have used with a lot of success, are affirmations.

Affirmations are statements that are repeated to yourself over and over until you believe it to be true. This works best when the statement is specific, personal, in the present tense, and positive. It is even more affective if the statement includes the goal as if you have accomplished it with the steps you took to get there. Here is an example of a statement that could be used to get a deal in the next thirty days:

“I got this house under contract that will net me $30,000 within a thirty day period by calling at least ten potential sellers every day from lists including, FSBOs, FRBOs and foreclosures.”

Once you have structured a quality statement print it out and put it in your car and one on the bathroom mirror. Say it out loud at least fifty times a day.

There are entire books and home study courses teaching this stuff, and all of it works. I recommend studying the law of attraction and picking up one or two strategies that works for you.

Massive action

Do ten times as much as you think you need to. If you think you need to knock on twenty doors a week or make ten calls a day, do that, but also send out mail, put up signs, call all potential referral sources and go to networking meetings. Focus all of your energy on accomplishing this one small goal.

To me, massive action means not watching any TV, not hanging out with friends, and not going out to eat. To me, massive action is working long and hard hours on productive activities. To me, massive action is doing what others are not willing to do. I know this is harsh, but it is temporary and could be necessary to get the momentum going. I like to compare this to flying a plane. The plane takes ninety percent of its energy to get off the ground but once it is in the air it stays consistent and gets results.

Once you accomplish your goal, set another one and do this process again. The momentum will build and once you have it you just need to maintain. While you maintain the momentum you need to stay consistent with your activities. I want to be clear that maintaining is not the same as massive action and you will not be working as hard, but if you feel the momentum start to slip, I suggest starting the process over again. It is really amazing how easy success comes when you get momentum that you can build on.

Transaction of Property Through a Real Estate Company

When it comes to transaction of property, even the wisest, boldest, smartest and the ‘know it all’ becomes nervous. After all you wish to make either a great investment or a profitable sale. Property matters are always stressing. Yes, they do cost your peace of mind. The process of selling and buying of property is complex as well as tiring. There are subtle fears and doubts’ regarding everything till the deal is not done. When selling a property your ultimate goal is to complete the sale at a profitable price and hand over your property in the right hands. When buying a property you aim to get a property which satisfies your needs at an affordable and right price. But how to do that?

The long and tiring process

Lets us first talk about how to sell your property yourself. The first obvious step is to know the market value of your property and then set a price which is convenient to you. The next move is to get a buyer. But, how? Put hoardings, pamphlets and banners to advertise your property and tell people it is for sale. Inform your acquaintances that you wish to sell your property as they might get you buyers in their contact. Buyers will approach you when they get to know that your property is for sale. They will check your property and if they are impressed by your offer they will buy your land/ house. Then comes the paperwork which concludes the deal. When buying a home, you need to collect info about properties for sale either from advertisement on different platforms or from friends and family. Visit the property and check it in the next step. Then comes the negotiation for price with the seller and the purchase concludes with paperwork.

Why you need an agent?

Well! All this might sound easy, but it is not buyers have to wait for the type of property they want for long. Sellers too have to wait as long as 6 months on average to find the right customer. Even the legal work required in papers makes it mandatory for you to visit Law attorneys dealing with property matters, making the process all the more cumbersome. It is exactly here real estate companies and agents come to your aid.

Perks of contacting a Real Estate Company

Many a times you need to buy/ sell homes in a hurry. Like if you have got transferred to a new place you would like to sell your previous home quickly and buy a new one as soon as possible. As already mentioned the process of transaction of property is complex and time taking. But this tiring burden can be reduced to a great extent when you contact and associate with a real estate company or agent. They have all information about which house is for sale at what price and who are people looking for a house in what location and at what price. So you see the first work of finding and waiting for customers when you wish to sell your property is eliminated. When looking to purchase a house you don’t need to hunt anymore. Your property agent will let you know. Not only they end the hunt, but also assist you with legal paperwork relating to the deal.

Advantages of Living in a City

City life is commonly described as fast-paced. It is a life that is tangled with having a busy lifestyle such that every second counts. Despite this scenario, the advantages of living in the city still speak best about why there are still may families who choose to dwell in the urban jungle.

Transport accessibility. Even if you don’t own a car, transportation is relatively easy to take you from one part of the city to another. There are many modes of public transport such as buses, trains, and taxis. There are designated points or stations to where you can ride so looking for them won’t be a problem at all.

Variety in lifestyle spots. If you’re one that is active day and night, then the city is perfectly yours as a playground. From shopping malls, restaurants, entertainment spots, bars, and a lot more – the city is that big to accommodate them all. These establishments are made to lure you more into being a city dweller.

Better opportunities in choosing school institutions. Admit it or not, it is a well-known fact that educational institutions are concentrated in cities. While there are school districts which closely monitors those in other areas, there is still a better opportunity of choosing from many schools when you are in the city. Aside from designated public schools, there are also private schools that can give you more options to where to send your kids. If you’re looking for specialty schools and training schools to enhance your skills or upgrade your knowledge, the city can also offer several options.

More job opportunities. Because a city is where population is usually concentrated, then there is also a tendency that more establishments are constructed. From government offices to private institutions, a city has numerous employers which offer jobs to its residents. whether you’re inclined to government service or your skills is for private firms, you have options to choose from as a city job hunter.

Diverse social interaction. More than the advantages anchored with the presence of lifestyle spots and government offices, city life has more to offer. Social interaction in the city is so diverse. There is variety in culture and religious beliefs. This is attributed to the presence of numerous races and ethnicities within the city particularly those that are classified as metropolitan. Living in the city is one great opportunity of expanding your horizon. After all, making real friends and acquaintances is essential in making one’s life worthwhile and productive.

Multi – Family Rental Property: Buying, Selling, Renting

Many of us, consider, whether purchasing a multi – family, rental property, is a good fit, in terms of being, a component of one’s investment strategy, and process. Like anything else, a wise consumer researches, and becomes familiar with the possible, pluses, and minuses, and whether it, is for them. It is important to understand, and evaluate, the best, buying – opportunities, whether it should be sold, or if renting, is the best strategy. Should one purchase a new property, or an existing one? With that in mind, this article will attempt to briefly consider, examine, and review, when, and, if, someone should buy, and whether it is the best time to sell, and/ or, if renting, might be the best strategy and approach.

1. Before you buy: There are many considerations, before you should purchase, a multi – family, rental property. Are you going to live in one of the units, or rent the entire property? If you live there, your mortgage interest rate, will be lower, because it will be considered, an owner – occupied property, but, you also, will receive less revenue from rentals. Those doing so, often, look at this, as a way, to use rental revenues, to significantly, reduce one’s own, housing costs. If you are looking at this, as an investment, then, your mortgage interest rate, will be slightly higher, your down – payment, a little more, and you might have to justify the viability of the purchase, based on rentals. A formula, I suggest, is receiving a 6% return, and a positive cash flow. This means, if the property costs $500,000, you must have a rent – roll of a net of $30,000 per year, after deducting real estate taxes, and owner/ landlord paid utilities, and basic maintenance. Therefore, if taxes were $10,000 and anticipated utilities and basic maintenance were an additional $5,000, then you must collect, at least $45,000 per year, in rents. Do this calculation, based on 10 months rents, in order to prepare for potential vacancies, etc. In addition, calculate the rents, and compare them, to your expenses, and proceed, only if this is a positive cash flow, and the 6% return, is achieved.

2. Selling: Is owning the best idea, for you? Are you prepared for the unanticipated expenses, and will you commit to putting aside, a reserve fund, for maintenance, repairs, and renovations? Is the real estate market, the right one, now, to get the best results, from a sale? Consider competition, the local market, mortgage interest rates, and how much, you feel, you need, from any transaction.

3. Renting: Ensure you do, a quality, legal, enforceable, screening process, and seek the finest tenants. There is no guarantee, but pricing correctly, to ensure, you are not the most expensive, often, creates the best opportunities. You must also, either, have the abilities, to do, lots of the repairs, etc, or have qualified service technicians, to prepare for the possibilities, and obstacles.