Real estate development is a growing industry particularly abroad. A developer buys real estate with the intention of adding value to it somehow, then selling or leasing it for profit. Unlike holding the land, you’re actually developing through construction. As you might guess, this takes having some type of financial base from which to work.

Before leaping into real estate development consider your interests – what exactly do you want to develop? That focus point is important because you’ll need other experts to help make that vision into a reality. Professionals ranging from architects to typists play a key role in making everything happen on schedule. But building a mall is different than building a hospital (just as an example) and requires different skill and knowledge sets.

Additionally WHERE you plan to develop figures heavily into the picture too., particularly when developing international real estate. Step one is understanding the link between available land / property and tourism. You’ll definitely pay a little more for land in areas that attract tourists, but you’ll also get greater returns going forward. So, what does your budget allow?

There are other important considerations when developing properties abroad. Step one – research the local laws and building codes. Some areas have very defined restrictions on building heights, for example. Step two: don’t buy land without seeing it personally. You want to know that it’s accessible for work crews and that it truly suits your development needs. 

Step three is considering the option of green development. This is one of the fastest growing sectors in real estate. Consumers want ecologically-friendly real estate and are willing to pay higher sums for well thought-out buildings. A smart design in the right spot equals better assessment values.

Step four: consider hiring local people. This gives something back to the community in which you’re establishing yourself.

Step five: have a good international attorney and avoid “hype.” You want dependable information.

Remember that its essential to know the real estate market particularly with international development. Take the time to do research on the country where you plan to establish the development and make sure all your groundwork is completed to perfection. It’s not worth rushing a deal as that often creates critical errors that impact on your bottom line.

Mortgage rates dropped this week to the lowest rate in 31 years, according to mortgage giant, Freddie Mac. The rates came in at 4.69%,which is very attractive to both homebuyers and refinancers.  However, refinancing has become a difficult task as many homeowners are "underwater" on their mortgage, which is to say that they owe more on their mortgage then their home is worth, therefore, making it impossible to refinance.  According to Chris Brown, Trinity Mortgage Loan Officer in Orlando, Florida, "It's not the desire to refinance; it's the ability to refinance, a lot of the people who can already have."

May marked the 21st consecutive month that sales of existing homes in Florida showed an incline, according to Florida Realtors. Increasing 18%, this type of sales activity is a positive sign for the real estate market in Florida.

In a yearly comparison, the median sales price of existing homes, across the state, has declined by only 2% to $140,400.  Nationally, the median sales price stands at $173,000, which is to say that half of the homes for sale are selling for less than $173,000 and half are selling for more.

To Sell or not to Sell?

That is the question for many homeowners in California. While many people have chosen to leave the stage due to the cost of living, others are holding tight believing that their investment, particularly in beach front properties, still offers hope. Not only could the value improve, but there’s ways the option of retiring to the Golden State for those proverbial Golden Years.

If you visit California, there’s no question that housing away from the ocean is suffering terribly in the current market. People with ocean real estate, however, aren’t seeing the hammer fall. Yes, there might be some compromises since it’s currently a buyer’s market, but generally speaking the waves and sand seem to cast a spell on many people, and also insure value in a home.

Just this week, the median home price in Southern California went up over 22 percent. That's the fastest rate increase people have seen in over five years. There’s a good reason for this. There are state incentives available right now. And where were most of the homes selling? You guessed it – the beach. The second area of sales were in markets like San Diego with upscale properties.

Home owner credits in CA started on May 1. A buyer can get state tax credit if they’re buying for the first time for up to $10,000 spread out over three years. That’s a lot of umbrella drinks and beach side barbecues!

So if you currently own a home on the water in California, don’t be too quick to jump on the sales band wagon. You have a treasure there. If you don’t own a waterfront property – what are you waiting for? The timing couldn’t be better.

New home construction as well as building permit applications declined in May, according to the Commerce Department. Many economists believe that the reason for the fall is the expiration of the Government programs which have been fueling the real estate market, in the spring.

According to James Marple, Senior US Economist, "Sales will almost certainly fall in the months ahead and take some steam out of housing recovery." The struggling market affects many different industries.  The National Association of Home Builders (NAHB) claims that every new home that is built creates 3 jobs for a year, nearly $90,000 in taxes for authorities as well as income for every industry from faucet factories to appliance companies. This loss of income affects the entire economy of the country.

Harry Reid, Senate Majority Leader, announced his intensions to extend the Homebuyers Tax Credit by three months, in order to allow homebuyers that might not meet the closing deadline of June 30th, some extra time.

The Homebuyer Tax Credit, a government run program that offered up to $8,000 in tax credit funds to qualified first time homebuyers as well as up to $6,500 for qualified homeowners looking to purchase another home, expired during the spring.  A stipulation in the program stated that contracts must be signed by April 30th of this year and purchases must be complete by June 30th.  According to the National Association of Realtors (NAR), an estimated 100,000 homebuyers are not expected to meet the June 30th deadline.

Rates on a 30 year fixed rate mortgage dropped to 4.72% this week to the lowest level of 2010, according to mortgage giant, Freddie Mac.  Freddie Mac collects rates from lenders across the nation Monday through Wednesday, as rates are closely tied in with long-term treasury bonds they can fluctuate significantly, even on a given day.

Even though beachfront property is usually a great investment prospect, finding just the right parcel of land can prove tricky. On one hand, just buying land means less expense. Now you can build to your personal specifications. On the other, there may be reasons that the land has gone on the market that could affect future sales potential, not to mention your security and the way you design your new home.

With this in mind, step one in the journey toward owning waterfront land is finding out why the owner is selling it before development. Ocean front properties are a “hot” commodity and open land doesn’t become available every day. If the market is soft, it may simply be that the owner didn’t have development funds. However, there are other possible reasons that the land remains vacant. These reasons might include zoning laws (that would likewise apply to your plans for the land). What else might prohibit building? Endangered species (plant or animal), sinkholes, and erosion come immediately to mind. Don’t sign any paperwork until you investigate thoroughly.

Utilities can also really hinder development. If you can’t get easy access to water, sewer, gas or electric, the cost to install special alternatives can be incredibly prohibitive. What about cable or satellite too? Contrary to impression, satellite does not reach EVERYWHERE. Too many trees can block the signal, or if you’re in a remote location you may simply be out of signal range.

A third problem that can easily happen with beachfront properties is that other landowners decide to develop near you, in ways that you might not like. Whether you want to live there or rent your space, having a super-store go up and block the otherwise pristine view isn’t going to help your property values. Nor will a hotel. While it’s all but impossible to plan for every contingency, keep these possibilities in mind.

Fourth, make certain your real estate agent knows the laws governing investment property where you plan to buy. For example, if you plan on living in the home part of the year, you may find an ordinance limits how often you can be in the home if you rent regularly. Additionally, a good realtor can help you find likewise good tenants who will take care of the property when you cannot be there.  All potential tenants should be properly screened, provided with the rules of the roost, and pay a suitable security deposit just in case.

Finally once you find a good piece of land and develop it, maintenance becomes a very important part of the equation. You have prime real estate here, and it’s worth keeping it in good condition. Keep the smoke alarms and fire extinguishers current. Take care of the lawn and grounds so it attracts return renters. Install security measures for those times when the house remains unoccupied. These are small, common sense things that support your success as a landlord.

In Real Estate terms, beach properties are liquid gold. They represent the most desired houses and bits of land no matter where you are in the world. Of course, thanks to a limited supply, that means paying a little more for an ocean view than you might other properties. That means if you want an affordable beachfront home, wait until you’ve got a seller’s market, look into foreclosure properties, or consider international buying in countries where the tourist industry is still developing.

While buying in a seller’s market means initially the house’s value is lower, eventually real estate tends to level out. Remember that investing in anything is a long-term proposition. It’s not this year or the next that really matters – its 10 years down the road. Just take care that you can manage the monthly payments, and that you’ve done all your research into the manner in which the neighborhood might grow. It’s one thing if you’re adjacent to the water, but land and buildings further up can have that wonderful view transformed by new developments.

Go International:

Some of the least expensive beach property is outside the United States. Latin America in particular has some lovely oceanfront investment locations with incredible sand and surf. Costa Rica is one example. Here you have nearly an ideal climate for the beach bunnies, but you’re well within reach of other types of weather. Prices compared to similar locations in the US are very affordable. Equator is another illustration. Think of Hawaiian-like breezes and sun, and smooth beaches, and it adds up to a fantastic location. It’s relatively inexpensive to fly there, and the country welcomes foreign investors.

If those two locations aren’t quite your cup of tea, how about Granada, Panama, and St. Lucia instead? Again, you’ll get a lot more house for your money in these locations by about 50% (if not more). Note, however, that you should never sign any paperwork until you’ve personally visited the country in question and seen the property. That visit can save you a ton of money as in-person buying often means a better price than trying to work out a long-distance deal.

Think Belize:

Belize is rapidly becoming a good investment property location. You can get pristine beachfront property for very affordable prices. Better still the government here does what it can to make your buying experience trouble-free. You could do much worse than land in a region where people speak English, where you can dive a barrier reef, and where your U.S. dollar is worth twice as much as the local currency.

In terms of financial benefits, Belize charges to tax on any income you might make from your new beach house. You don’t have to worry about capital gains. If you use the space for business, there’s no business tax. And should you be so lucky to inherit a house, there are no inheritance taxes either.

While some of Latin America experiences upheavals, Belize is very stable. The likelihood of a coup is akin to one happening in Brittan. Additionally, you’re not stuck with just hunting for houses here. There’s still plenty of land for the taking if you want to build, or just hold it for appreciation. Note that not all that land is next to the water either. If you want mountains – you’ve got them. If you want forests – you can have those too. And all this comes with exotic wildlife, palm trees and weather that can’t be beat.

When the stock market gets soft, some people begin looking to invest in real estate. Having said that, not everyone is cut out for being a landlord, or for buying and selling homes as a commodity. If you’re considering moving in this direction, take a little time to learn the ropes.

If you’re a small investor plant to own whatever investment property you choose for at least 10 years. This helps insure potential appreciation that isn’t wholly offset by ongoing maintenance and repairs. During that time the real estate market will have its ups and downs, but you’ll have plenty of opportunities to sell should you ever wish to. Additionally, knowing your time framework helps you determine how much you want to spend on the house initially and what the rent values should be in order to bring in supplemental income.

Overpaying for property is the worst proverbial sin in using real estate as an investment. There’s no perfect way to calculate what equates to overpaying. What you really need to be certain of is that all your costs for owning the property including potential repairs and vacancies is covered by the rent you plan to charge. Work with the numbers several ways before singing on the dotted line of a mortgage. If those rents get too high – you won’t have any renters!

Hint: get a house inspection. That will give you a good feel for repairs that need to be done NOW to get the property ready for renters, particularly fixing any code violations. Those costs are part of the financial overview for calculation purposes.

Note that when you’re first buying a rental property it’s good to start small. Give yourself time to learn the ins and outs of securing rental property and uncovering good tenants. If you find success with that one property then you can consider more. At that juncture you’ll want to begin networking with agents, family, investor groups, etc. all of whom can help you land great properties at the best possible prices. Some investors try approaching owners of rentals and/or abandon properties to see if they’re interested in selling too. A motivated seller usually means better buying power. Another option still for good prices are foreclosure properties.

Warning: expanding your rental properties is very difficult if you’re carrying a high interest to debt ratio or if your credit rating is iffy. Those factors mean either big down payments or very high rates of interest (that, in turn, raise your rent). Over-valued rent decreases the chance of full occupancy, and undermines the bottom line. When your debts or credit rating aren’t the best, you can consider land contracts or leasing for a while instead. That gives you time to restructure your finances.

From a financial management point of view, rental properties should not be your only form of investment. In general diversification is the key to having a balanced portfolio, let alone one that makes money for you. Find equities, bonds, etc. with comfortable risk levels and add them into the mix. This acts as a buffer for those times when the real estate market drops.

People sometimes use the terms, “land contract” and “land trust” interchangeably but they’re not the same thing. A land trust gets set up to protect estate assets, but it’s revocable. Typically the buyer sets up the trust anonymously and may, at some point, assign the trust to an investor. Alternatively a land trust may be set up by a nonprofit group that utilizes the trust to protect specific tracts of land (Conservation Land Trusts).

By comparison land contracts are used for financing. Here, the seller allows the buyer to pay for a property in installments. During this time the land and house remain in the seller’s name. Alternative names for this arrangement include contract for deed or even “rent to own.”

Both land trust and land contracts offer buyers ways of getting a house or property using owner financing. This is particularly advantageous if the seller already has a low interest rate loan in place that’s assumable.

More about Conservation Land Trusts

There are numerous natural areas that receive Trust protections because of the resources they represent – be it rare animals or endangered plant species. Once the trust goes into place specific rules govern what can take place there. For example, many trusts forbid mining or drilling. Some of these properties become part of National Park systems over time. This, in turn, allows for some visitors (which also provides an income to the trust).

Managing rental property takes a lot of work and a decent amount of know-how. Step one in this process is finding a good property to use for rental purposes. The building’s location is very important as is the neighborhood. You want an area that illustrates stability so that should you decide to re-sell down the line, your investment is safe.

In looking at the various potential properties don’t only think about the mortgage. Consider how difficult the property will be to upgrade and maintain. Safety, security, and attractiveness all matter to potential renters. Additionally as a landlord there will be specific zoning laws to which you must adhere. Do your research so you know what to expect.

After locating a suitable property you’ll have to finance it. Owner occupied buildings with less than four units aren’t regarded as investment buildings so you won’t have to come up with a huge down payment. By comparison the absentee landlord with more than five units has to pay larger down payments and higher interest rates, usually as much as 30%. The risk factors for investment properties is always higher, and gets reflected in those percentages and rates. Note that Adjustable Rate Mortgages aren’t recommended for rental properties. If the rate goes up substantively there’s no way you’ll be able to adjust rents to cover the additional expense.

There are other costs too. For example, your property insurance and taxes are going to be higher when you rent. Since the landlord doesn’t have 24-7 control over the property, renters represent a damage risk. Additionally it’s a good idea to have liability insurance on the property in case of personal injury lawsuits. Note that the cost for insurance, the interest you pay on the mortgage, and some of your rental property repairs and renovations are tax deductible.

The Tennant Equation

If finding a good property and handling all the financials wasn’t complex enough, now you have to find tenants. It’s strongly advised that you screen tenants using credit checks, bank references, previous landlord recommendations, and employment verification. Additionally get a security deposit in the form of a bank check. If you want extra verification you can pay for a renter’s evaluation through a national database. This costs about $25 each and will tell you if the renter has a criminal record too.

After a tenant moves in, it’s time to consider how you want to handle complaints and rent payment. Complaints are best handled in writing so you have a document trail (this protects you and your tenant). Rent receipts are also a very good means of keeping track of things. Note that some landlords encourage timely rental payments by offering a small discount to individuals who pay early or on time.

Summary:

This is only a very small portion of the overall landlord equation. For example, what happens when you want to go out of town? Who will handle things in your absence? How will you handle renter-to-renter issues? What do you do when someone’s in arrears?

These kinds of questions makes it clear that becoming a landlord isn’t something to do on a whim. Educate yourself, get advice and input from your accountant or tax advisor, and really take your time. At the end of the day ask yourself if you want to trust 4, or 5, or 6 complete strangers in an investment property. If the answer is no, being a landlord is not for you.

Blog warning: Rant Ahead. This BHA is so weary of companies who turn us into a numbers game. I realize it’s an employer’s market – but what happened to ETHICS? What happened to valuing talent and commitment? What happened to supporting the little ape in your neighborhood? All of these seemed replaced by a mindset that minimalizes good work and creativity for the bottom line, or worse – giving in to quotas or slimy apes who abuse the “corporate compliance” system. It’s disgusting. It’s wrong. It’s unhealthy and the only way to change it is by a ground level movement from “We the Apes” (no matter where you live).

Around the world apes of all sizes and shapes are struggling. We are trying to find ways to support our tribe and community and feel totally un-empowered. Quite frankly this sucks. Somehow with all our technology and innovation we’ve lost site that our leaders work for US. When they screw up – we should be shouting, loud and long and hard until we’re heard. Unfortunately however, in recent history that “shouting” has turned into quiet grumping until the next election (followed by a knee jerk reaction thinking the other “party” will somehow fix what no one else has for year after year).

We need fresh ideas. We need ethical apes in the driver’s seat. Unfortunately the current systems in many nations support corruption, back-patting, pocket-lining, all while ignoring that average Jo or Jane are HURTING. Hell, so long as you’ve got your Kobe, yacht, Jag, a souped up Tire Swing, and groupies – what do the “commoners” matter. Feel insulted by that statement – look in the mirror. You’re part of the problem. It’s like Feudalism all over again but “prettied” up and marketed so the unwitting ape buys into it. Hey, why fight it – it’s all good, right? NOPE. Wrong answer.

Now if you’re nodding while reading this blog, which I understand is totally controversial, you may be asking – what can I do? A lot depends on where you are and your situation, but first and foremost support local business. Don’t go to the big guy when you have an extra buck or two to give to the store on your block (or just down the way). Community building is very important. Get to know your neighbor (remember talking over the fence… or no fence at all?). Get to know local businesses and find out how you can work with them and help each other.

Secondly get vocal and stay involved. Be it online or in your community, make your voice matter. The more people you gather and inspire the better. Even if you don’t see yourself as a leader, find someone who IS, and who wants to make a change for the better.

Third, educate yourself on issues close to your heart. Find out what’s happening on Federal and State levels including initiatives, protests, polls, surveys, and petitions. Hop on those that help.

Fourth, and perhaps most importantly, do not give up your ethics to the system. At the end of the day you have to be able to look yourself in the mirror and sleep with your approach to business and life. Sometimes you simply cannot stay silent, nod and comply. That kills your spirit and turns people into automatons. I don’t think anyone really wants that. Be unique, be YOU, celebrate YOU and don’t let that person disappear in the sea of otherwise apathetic bodies.

There are many reasons I’m writing this today but the biggest one is that I see a space where everyday good-spirited apes and small businesses could make a HUGE change in their communities and the world by the way they work. Let’s bring back honest business – reasonable pay for good work, strong work ethics, strong business ethics. It sounds like such a small thing – but the trickle down effect is huge. 

Everyone has seen at least one commercial spot where a person tells you that fortunes will be made in real estate and that you need no money whatsoever to succeed. The sad part is that some consumers fall for this ruse and spend money on their “foolproof” method, which (of course) has more holes in it than a watering can.

Having said that, if you really want to buy real estate there are ways to do it even if you have bad credit or only a little bit of cash. One way to accomplish this is not by actually buying a property out right, but rather negotiating contracts with sellers that then selling that to a retailer. Called assignment contracting, all you need for this type of buying and selling is earnest money. It’s fairly easy to make upward of $3,000 on each contract sold.

Note that if the retailer feels uncertain of closing the deal they may put the sale amount in escrow pending actual receipt of the deed and loan documents. This process is called a double closing, and while it’s a little riskier for the dealer, the profit is usually higher.

If both of these approaches still make you nervous, you could become a real estate scout instead. In this case you get paid for gathering information. What type of information? The address and picture of a house that has potential for fast resale, the name of the owner, and a means of contacting the owner, sale price, any available mortgage data including payment history, and most importantly if there’s a known reason for the sale (is the owner moving or retiring, for example). Real estate scouts who provide solid, reliable information often get paid as much as $1,000 per lead.

Another way to obtain property without a down payment or credit check is by finding a seller who simply wants you to assume the mortgage. This is most likely a private transaction, often negotiated with family or friends who trust you will make timely payments.

Option purchasing is yet another, well OPTION! This resembles contract buying except in this case you negotiate for the option to buy within a certain amount of time. You will have to have option money for this transaction and loose that money if you do not exercise your option. Why? Because while you have a buy option, the seller must take the house off the market and continue making mortgage payments. From the buyer’s perspective this gives you time to gather funding that you might not have had available when you found a perfect house.

Slightly less risky is leasing the property and contracting an option to buy. This contract includes the ultimate buy price for the property and the date by which the seller must exercise or renew the option. In this case lease payments sometimes go partially toward the buyer’s down payment when the deal goes through.

As you can see, there are ways to get property without having a huge down payment or perfect credit. Even so, this should still be a well-considered endeavor as real estate represents an investment, including personal time. Take care that you get the right property for your needs and goals.

When a real estate market becomes soft, short sales become very popular. The short sale market is designed specifically for homeowners who have homes that are not worth the amount of their loan. Short sales work cooperatively with the mortgage company, who commits to accept the sale proceeds as “paid in full” on the house even though the debt will be more than the buying price.

Sellers obviously do not turn a profit from a short sale, but they do get out from a burdensome debt without having to foreclose. The lender’s advantage here is the chance to sell a property quickly, which saves money.

The major beneficiaries from a short sale are the buying agents and listing agents who get commissions. Title companies, appraisers, and insurers also get a cut from a short sale because a new title policy, appraisal, and homeowner’s coverage must be written for the buyer. Should the seller get legal consult, that real estate lawyer will see apiece of this pie too, as might tax consultants. Of course I should add that buyers get something too – more house for their money and a lower mortgage payment.

Short Sales & Credit Ratings

Normally a short sale isn’t even a consideration unless you’re behind on your mortgage payments. Those late payments directly impact your credit rating. Being just 30 days late drops your rating an average of 80 points, while a foreclosure or short sale drops it around 120 points.

While that sounds terrible, there is an upside here. If you’d foreclosed on your property you could end up waiting as long 5 years to be considered for another mortgage (at least one with a reasonable interest rate). When you complete a short sale, by comparison, you can look to buy again in about two years.  If you were current in your payments and moved into a short sale, the FHA and Fannie Mae says you can try to qualify before that time. The question then becomes finding an amenable loan institution.

Deciding on the Short Sale

If you’re not certain whether a short sale is right for you, there’s a lot to think about. Financial advisors disagree somewhat as to what’s worse – short sales or foreclosures. The scales seem tipped toward foreclosures having a worse credit impact. Then too, if you know you will eventually want to own another home and don’t’ want to wait too long, the short sale is a much better option.

Just bear in mind that it can take several months to obtain short sale approval from a lender, and the documentation that goes with the sale can be incredibly complex and cumbersome. Make sure that you work with professionals who understand the ins and outs of this process for the best possible outcome.

Sometimes it simply isn’t feasible or practical to buy a home or condo. That leaves renting. Because almost every rentable space has a contract attached, finding the right space is nearly as complex as is buying a home. How do you go about this process so that you find the right apartment that also suits your budget and lifestyle?

One answer is to read consumer reviews. Use discernment. Some of these reviews are written by tenants with an axe to grind. The complex might actually be wonderful, but there are some folks who just like to complain. Other reviews may be written by paid professionals who have never even SEEN the place. Obviously, those aren’t overly dependable. That leaves you with trying to talk to current tenants or neighbors, which is really the best option. It will give you a feel for the people who you may soon be living near as well as a current assessment of the property from an “insider” view. 

Fair Housing

The fair housing act went into place to protect prospective renters from discrimination. The long and short of fair housing is that it’s illegal to refuse to deny dwelling, or set different terms on rental based on a person’s religion, race, color, gender, marital status or handicap. This law applies to advertising too. Any statements that imply that a space only accepts certain type of renters are, for the most part, against the law (there are a few exemptions, but they’re pretty specific).  For individuals with disabilities the protection extends even further. For example, if you need a wheelchair ramp put in, you are legally allowed to do so at your expense. Likewise if you need a guide dog, buildings with no pet policies must allow that animal on the premises with you.

If you’d like more information on fair housing, go to HUD’s website.

Pushing through the Process

When you’re ready to apply for a rental, there are things you can do to make this process go faster. For example, bring letters from previous landlords attesting to their experiences with you. Likewise, bring a recent credit report. That saves the landlord a lot of time and illustrates upfront that you’re able to afford the space. Hint: read over your credit report carefully. If you find mistakes, get them cleaned up before applying.

If your application goes through, step two is the lease. You may want to ask if the landlord offers short term leases. That way if you find out the space isn’t what you hoped, you can move after three months. Otherwise normally you’re locked in for a year.

Review your lease with the same diligence you would any other legally binding document. Be aware that some rentals forbid you to make any changes in the space, or run a business in the space. Additionally your lease should detail what situations allow your landlord to enter the space (and how much notice they must provide). Privacy counts.

This is the time to get everything in writing. For example, if you speak with the landlord about necessary repairs, get documentation that the landlord has agreed to those repairs. This avoids a lot of misunderstanding. Oral agreements only go so far. Then if everything looks amenable, sign on that dotted line.

Insurance and Security Deposits

Before you move it’s a good idea to get a renter’s insurance policy. Your landlord insures the property, not your personal possessions. Should anything go wrong, renter’s insurance and help you replace stolen or damaged items. The cost is very reasonable for the peace of mind provided.

Speaking of which, on the day you receive your keys there are things you can do to safeguard your security deposit. I recommend taking pictures or a video of the entire space, making particular note of anything that needs touching up or repair. This way the landlord cannot claim you caused those problems when you move out. Note that these pictures can be very useful for your renter’s insurance too; they prove what you have in the building.

You’ve been living in an apartment for years. Each month you write out a check and know that your money will never see any type of appreciation. You can’t deduct any of your rent from taxes, and at any moment the landlord could sell the building. Maybe it’s time to consider buying your own home. If you’re financially stable, a home can be a great investment and also something that’s wholly yours.

Credit Issues

Before you go to look at houses, get a copy of your credit report. Now is the perfect time to make sure that’s in order. Clean up any errors before you try to prequalify for a mortgage. Even if your credit isn’t great, you may still qualify for a federal mortgage a homebuyer’s program in your neighborhood. Alternatively you might look into a HUD home where your payments are likely to be lower.

Using a Broker

A lot of people wonder if they should get a real estate broker to help with house hunting. Brokers are highly recommended particularly for first time home buyers. There are a lot of technicalities to purchasing a home from the financial end, to a forest worth of paperwork and knowing fully about various areas where you’re considering living, a Real Estate agent can help you navigate more confidently. Additionally, an agent can assist with determining your budget and what type of mortgage would be best for you.

Cash In Hand

First time home buyers often wonder how much money they need to have to buy a home. Unfortunately there’s no pat answer to that question. Various factors go into the monetary question including:

• down payment
• earnest money (this is a deposit made at the time of your offer)
• type of mortgage
• whether you closing costs are rolled into the mortgage (if not that’s about 3-4% of the total price of your home)
• points

If you’re getting a federal loan you’ll need about 3% as a down payment. However, other types of mortgages require much more, up to 20%. This is another area where your real estate agent can guide you.

Prequalification

Every real estate agent will offer you the opportunity to get pre-qualified for a loan. This is very helpful to you, particularly in a seller’s market. Offers from people who are not prequalified are often put to the bottom of the heap because sellers want to know that they can move their home quickly. Note that your agent can also help you “shop” your loan to find the best interest rate possible.

Other Home Owner Costs

In determining how much of a mortgage you can afford, remember that you have other regular bills to pay. Sellers can provide you with a feel for utility costs, and the broker can give you the total in property taxes annually. There’s also food and other necessities. Credit counselors agree that you should not carry more that 35% dept-to-income ratio. Use that baseline as a guide.  

To give you an example. Say you have a car payment of $350.00 a month. On top of that you’re carrying a $200 credit card payment. Utilities and food run another $500 a month, and you earn $4,000 a month before taxes. A healthy credit-to-debt ratio is no more than $1,750 a month in payments. That means you can afford about $700.00 a month in mortgage.  

What to Expect at Application:

When you apply for a mortgage you’ll be given a list of items you need. Bring your social security numbers, 6 months of checking and savings account statements, proof of investments, proof of earnings, a complete list of debts (and the account numbers), and two years of income tax statements.

Offers and Rejections:

In coming up with an offer on a house the overall condition of the home, the real estate market, and the value of the home all play a role. Houses that have been on the market longer typically have more wiggle room as the sellers are likely to be anxious to move their home. Competing with other bidders also plays a role, usually meaning your first offer will be a little higher than it might be otherwise. Again this is something your agent should help with.  

If your first offer is rejected you can come back with a counter offer. This is a normal part of the negotiation process. In some cases, the seller will ask for certain considerations (such as helping with closing costs). The key to this process is making sure you don’t offer more than the house is worth, or more than you can really afford to spend.

In a buyer’s market house flipping often becomes very popular. People buy a home and then resell it quickly to make a little money. The key is approaching this whole process with enough cash to actualize the profit. Effectively you need enough to buy, make renovations and then carry the mortgage until you re-sell. The asking price of the house when put back on the market also has to be in line with what’s financially equitable for that house/neighborhood. If you pay to much on the front of a flip, you will not make money.

One thing that may safeguard you from getting in too deep is a house inspection. It doesn’t cost that much and can root out problems that otherwise would be too expensive to fix and flip.  Remember that when you’re done with the house your prospective buyers are likely to want an inspection, and if they find something you don’t know about, sales potential drops (as does offering prices).

A third way to keep costs down in a flip is (believe it or not) hiring experts to do the necessary painting and repairs for you. If it is going to take you twice the amount of time as a professional to get his work done – you’re not saving money doing it yourself. Also, most people simply don’t have all the skills to do carpentry, plumbing, roofing, painting, tile, etc. A DYI flip can turn into a nightmare when a person tries to take on too much. Additionally some items like wiring will require the work of a licensed profession followed by the building department’s inspection – so why not skip to getting that help right off the bat? 

Remember a key to flipping is doing things quickly. The only warning here is to choose your renovation projects carefully. Invest in those things that are budget-friendly and value-added. Don’t buy high end appliances, for example – just have ones that LOOK good in the space. You want to put the house on the market for about 2 percent below the going price of other similar homes. That will land you a fast sales, but you can’t do that if you over-spend.

Different Types of Flipping

There are different types of house flipping. The type described in this article thus far has been a fix-it flip where the buyer gets a well-priced home that needs some serious TLC. However, the repairs are not so extensive as to disable the opportunity to make a profit. Other types of flipping include

• Buying to sell to another investor, who then in turn puts the property on the market “as is”. 

• Buying low, selling high (this is much easier to accomplish in a seller’s market)

• Neighborhood remodeling (typically a commercial endeavor to improve the living and working spaces and decrease crime, all of which increases home values)

Buy and Lease

The buy and lease approach to flipping is a little different.  In this case you rehab the property then lease it with a buy option. Here you get a little each month above and beyond the mortgage from rent. Then when the renter buys the property there’s no need to enlist a broker, which is where profit comes in (along with less in capital gains tax).

Pre-construction

There are some areas where homes and condos are still a prime market. If buy a house before it’s constructed you gain the benefit of the growing market. By the time the home is complete, the appreciated value provides the profit to your flip sale.  Note this is a very risky undertaking. Don’t invest more than you’re willing to loose if that market suddenly turns south.

Consumer Warning

There are some very unethical flippers in the market who will get a cheap property and do very little to it. Then, they inflate the price and try to re-sell it (sometimes using fraudulent appraisals). This leaves the buyer with a home that’s over-valued and a high monthly payment that they may or may not be able to afford. Of course its easier to commit this crime when working with new home buyers who know little of how real estate transactions should work. If you discover any such activities it should be immediately reported to local authorities as the practice is illegal and typically results in jail time.

The real estate market has its ups and downs. When it’s down it becomes a little more difficult to sell your home for the amount desired. There are, however, things you can do to give your home an advantage over other houses potential buyers may see.

Home Repairs – Inside and Out

First off, take care of all those little things that you’ve been putting off. Put a new light switch cover in the bathroom, clean the dust off the chair rails and baseboards, put a new light bulb in the closet, trim the hedges, weed the garden, and tighten a stairway railing. You’re used to those things, but a buyer is looking at every detail. The more effort you put into the details, the more your house will shine. 

Keep it Clean

Speaking of shine, cleanliness and neatness counts. If you have children, let them know toys have to be put away. Shoes should be orderly, coats hung up, etc. Now, I know in a work-a-day world it’s not always easy keeping all the dishes done and other chores on task. However, if you do a little bit every night, you’ll find you have much less fussing come “open house” day. You also won’t panic when you get a call from your broker for a walk-through.

Home Staging and Pets

In terms of how your house impacts the buyer, some people hire a professional home stager. This person acts like an interior designer who specializes in making your house even more appealing to potential buyers. If you really can’t afford that try to look at your space critically. Get rid of clutter and put away highly personalized items. You want your buyer to be able to see their family living in your space. By the way, personal items include your pets. With strangers coming into the home, keep the cats and dogs in a safe spot where they won’t run out the door or nip at a house-seeker. Make sure pet beds and cat pans are immaculate. Pet odor is not a “selling tool.”

Sometimes it helps to be out of the house when it’s being shown. Your presence can make people uncomfortable. Additionally, listening to buyers nit pick your home can be emotionally frustrating. Talk to your agent about the possibilities.

Curb Appeal

The value of curb appeal shouldn’t ever be underestimated. Look at all sides of your home, tidy up the yard, and make your front door area very welcoming. Sometimes all it takes is a few well-placed flower pots!

Finicky Buyers

Buyers know they have it good, so they’ll be more critical now than ever. The kitchen and bathrooms are by far the most important rooms into which you should put spruce up efforts. If you’re dishwasher is old and your cupboards look yucky, focus on the cupboards first. You don’t want to over-invest and not recoup that value.

Listing Companies

Call several recommended listing companies in your area and interview them. Ask them how they would market your home and what kind of turn around you could expect. Choose a company that’s working for YOU, not just for a commission.

Home Inspections

In a buyer’s market it’s not unusual for a seller to pay for a home inspection. An inspector will find the kind of problems that a potential buyer is also watching out for. If you can show buyers you’ve had the inspection and already done that work, it’s a huge advantage to both them and you.

Offers

When it comes to receiving offers, remember that your flexibility matters. You might, for example, find someone willing to pay a better price if you’re willing to move out early, or if you’re willing to pay some of the buyer’s points or make space for some of the buyer’s belongings in the garage before moving day. 

If the offers feel low, remember to look at what values have been like throughout your neighborhood. Remember the offer isn’t something personal; it’s a judgment call based on the buyer’s outlook.  Instead of turning down these offers outright, consider making a reasonable counteroffer. This shows you’re willing to work with buyers and find a happy medium.

Discovering mold in your house is not pleasant. While molds are perfectly normal and even have a role to play in the life cycle of organic matter, mold has numerous spores that can irritate allergies, asthma and even make people or pets ill. Mold spores stick to damp areas, and they cannot live in a dry environment.

A mold allergy typically evidences itself with cold-like symptoms and sometime with a skin rash. Being around mold may produce itching eyes, sneezing or coughing and a runny nose. Besides this nuisance, mold often causes damage to your home as it grows.

Having mold present when you’re trying to sell your house is a huge issue. Not only does it devalue your home, but it’s also something that most states require be disclosed to potential buyers. So if you’re planning to put your house on the market, take a good hard look now and make sure you’ve gotten rid of the mold before you list the house.

Controlling Mold:

Because mold moves through the air you will probably always have some spores in your house. However, if you’re diligent about keeping your home dry it will reduce the risk of the spores actually landing and growing greatly. Any leaks, any damp spots, etc. must be fixed. If you don’t, mold will come right back and start growing again.

Cleaning up the Mess

According to the EPA, if you’re dealing with a small are of under 10 square feet, you can probably clean up the mold yourself. Anything larger than that should be handled by a professional. Also if your air ducts may be affected, that’s also a situation for a contractor who knows how to handle mold (note: don’t run air/heat until remediated if practicable). 

Step one in your clean up is to dry the area as completely as possible. Remove any porous material from the area that’s affected (it’s really best just to replace those items). Wash all surfaces with soap and water, followed by some type of cleanser like bleach. Dry thoroughly. To safeguard your self from potentially harmful exposure it’s a good idea to wear eye and hand protection while cleaning. When your done there should be no visible signs of mold in the area, and the air should smell fresh. Continue to watch this spot to make sure the situation does not recur (as mold is often NOT just a superficial issue).

Note: if you do use a biocide cleanser, make sure the area in which you’re working is properly ventilated. Do not mix such cleansers with anything else as hazardous gases can result. You want to kill the mold, not put yourself in the hospital.

Keeping it Dry:

I mentioned previously that a moist environment invites mold. That means keeping things dry becomes the key element to protecting your home from mold and mildew. When you have a leak, condensation or dampness, the faster you clean it up the less likely it becomes that mold will develop. Experts say that if you get this work done in under 48 hours, you shouldn’t have any problems.

Along with fast cleanup, proactive maintenance of your home is vital Watch your gutters and roof for issues. Check downspouts making sure they’re pointing away from your house. Get a dehumidifier for known damp rooms (note a house that has humidity below 50% is ideal). Remember to use any ventilation fans you have in bathrooms and the kitchen (particularly when taking a shower or doing dishes).

Unseen Dangers

Mold all too often hides behind paneling, dry wall and wallpaper. It may also grow in insulation and the backside of carpets. Figuring out if you have a mold problem in these locations can get expensive as you have to get underneath and behind things that are usually firmly in place. Before you start tearing off bits of wall or wallpaper consider getting professional input. Some of these regions house a colony of mold spores that you could accidentally release into your environment making matters all the worse. There are test that can be run, checking for mold and a variety of professional companies that are trained specifically in the removal of this environmental hazard.

As you’re driving down a tree-lined street it creates a distinctly different impact than a cityscape. Both visually and emotionally those trees reflect a sense of permanence and longevity for a neighborhood. And while it’s hard to put a firm value on trees, we can certainly measure it in various ways.

Psychological Impact

Since many potential home buyers often do drive-bys before attending an open house, trees can impact how quickly your house sells. Generally speaking people feel happier when they see trees.  Aesthetically a well placed tree makes a house feel more inviting and welcoming. Interestingly enough studies conducted show that people who live near trees and green landscape are less prone to mental stress and illness, and when sick even recuperate faster! In short – trees are good for what ails you.

Community Building

Trees are a great medium for a community building activity. Many a neighborhood has had tree planting parties on Earth Day for example. The trees remain long after as a standing reminder of improved cooperation and focus on environmental sanity.

Longevity

Trees live for a very long time. Trees planted around the times of specific historic events later become landmarks for that event. Imagine if you found a tree planted by a famous person 70 years ago, for example. That tree would have historic value for that reason alone. Additionally, most communities strive to protect their historic trees feeling that to tear one down is nearly criminal unless the tree poses a safety issue due to disease or natural disaster (like lightning strike).

Being Green

No, not green with envy unless your yard doesn’t have any trees. Trees are fantastic for the environment. They help protect your yard from soil erosion, improve water distribution, and even cut down on noise from those pesky neighbors and local cars. Trees that are planted with the angle of the sun in mind can decrease the cost of air conditioning in the summer (hey, just turn off the switch and go sit under the tree!). The same shade you’re enjoying also keeps your driveway and sidewalk cool, meaning they won’t radiate heat and make the day feel even warmer.

What about cold days? Well it’s harder for heat from the earth to escape if there’s a tree in the way. Have you ever noticed how the ground under a tree may show no signs of frost when the rest of the yard is white? If you put temperature-sensitive plants around a tree’s trunk it helps protect them.

Finally surrounding yourself with trees improves the area’s air quality. Trees remove particulates from the air. They’re absorbed in the process of photosynthesis, which also helps reduce carbon dioxide.

Mulch

The trees and bits of wood that fall out of trees land on the ground and add to making good, healthy soil. This natural mulch becomes a home to earthworms, who are hard at work keeping our soil aerated.

Water Absorption

Some trees like weeping willows help keep a plot from having too much ground water. They’re ideal for wetland dwellings, houses at the bottom of a hill, etc.

Putting Dollar Values on it:

Having at least one tree on your property can improve its listing value by as much as 10 percent. When combined with other landscaping that figure can double. This figure is based on the fact that villages, cities, and towns all put monetary value on trees and add that value to your assessment. The way they come up with that value varies from area to area. Come may measure the tree’s trunk. Others consider the height of th e tree, and others still consider the age of the tree and its overall condition.

There is no question that most buyers love landscaping. If that weren’t the case there would be far less emphasis on the curb appeal of a house on the market. Trees offer a sense of privacy, while the rest of the landscaping creates a backdrop for the house. When you’re facing a very difficult market, trees and landscaping could make or break the sale of your home.

If you’re considering adding trees to your lot, take the time to consult with an arborist or landscaper. Not all trees are suitable for all lawns. For example, while that willow was fantastic in a yard that gets lots of water run off, it becomes a huge problem for someone with an underground drainage system. You want your investment to improve your home’s value, not create a repair problem.

Among early humans a simple cave would suffice for hanging one’s club and having a shelter from the storms and occasional hungry tiger. Hunt by day, eat and sleep by night was pretty much the routine among hunter-gatherers. It wasn’t until humans became more agrarian that the idea of a “real” house was born.

At first a family or tribe would lay stake to a piece of land, and if they could protect the land – they got to keep it from would-be usurpers. Settle, defend, farm, defend again – the cycle was pretty consistent. The person most successful in keeping land safe often became a leader, who then parceled out land as a reward, payment, or even as a means of settling disputes between people. For this great service, of course, the people showed gratitude with various gifts and privileges (hoping to remain in good favor).

As tribal society became more organized, efforts toward irrigation and improved farming techniques followed along with population growth. Having children meant having people to help with the labor so the society as a whole could continue expanding. Home now was a hut, which certainly was a step up from living on a rock floor, and the tools of the household were also improving (let’s hear it for cooking pots!). The biggest hut, of course, belonged to the leaders and/or the wealthiest members of any group (some things never change).

Many of these farming villages slowly transformed into towns and cities. As they did, land and homes were passed down through generational lines, albeit not always in a simple progression (my father’s, cousin’s, aunt, once removed). Among families of “royal” lineage, land was given by deed and title, but along with this change came the ever-dependable taxes (you knew it was coming didn’t you?).

At this juncture the amount of tax you paid often depended on the whims of the ruler and the needs of the military forces. It’s worthy of note that it wasn’t until the Normans came into England in the 1100s that the idea of “legal land ownership” began. William felt that he owned England – it was a right of conquest. This new King gave his friends and supporters various land grants (humm that sounds familiar too!) and the Feudal system was born. Lords held the land at the King’s pleasure, being considered Tenants-in-chief. These individuals would become the infamous British Aristocracy over time.

Having said that, the increasing number of populated regions made for tremendous growth in trade and turned many a peasant into a merchant or skilled laborer. This is important because now you have houses and stores that have nothing to do with farming, many of which could be rented, bought or sold by folks just like you and me. This is the era of everything from castles to hovels, some of which remain as historical landmarks in the history of real estate.

As monarchies slowly went by the wayside, land and housing became more of a real “market”. Then with the industrial revolution, you also get a wide variety of specialized labor some of which is focused on making homes better, nicer, and more convenient. Automated processes created consistency in building parts and tools.

Fast forward to the late 1800s in the United States. At last the idea of having a formal real estate association popped up in the communal mindset leading to the establishment of the National Association of Realtors by 1908. Canada was also on task with formalizing real estate sales and organizations. Lower class housing also started cropping up in both countries (like track housing) that laborers could afford.

With more and more consumers wanting houses throughout the world, banks responded in kind and began offering mortgage loans to anyone who represented a good risk (hey we had taxes, lawyers were bound to follow). Unfortunately some individuals took on more than they could chew, leading to foreclosures. One of the roles of the Real Estate agent particularly in modern times has been to act as a consumer guide, telling prospective buyers what’s truly a “deal” and what’s really affordable.

Figure it out this way, a healthy debt to income ratio is 35%. If you’re buying a home and the monthly payments will be 50% of your income, that house is way over your budget! Nonetheless, thanks to the real estate industry as a whole, everyone can at least try to own a home should they wish, not just the ruling class. So, keep shopping, you’ll eventually find something that fits your tastes and your budget.

As for me… thankfully, I don’t have to sweep out that dusty cave anymore.

When it comes time to revise your homeowner’s policy or get a brand new one for a house you just purchased, it helps to understand the types of homeowner’s insurance in the market. Superficially buying insurance seems simple, but when you start getting into language and coding, all of a sudden your head starts to hurt. When that happens, grab some aspirin then finish reading this blog.

What Year was your Home Owner’s policy issued?

First some basics. Any house insured before 1990 probably doesn’t have adequate coverage. Why? Because policies before that date weren’t required to recoup one hundred percent of the cost to rebuild a structure. So the issue date on your policy will be the first clue as to whether your policy needs revision.

Homeowner’s policies by the Numbers:

There are eight categories of Homeowner’s insurance available. An HO-1, for example, is the most basic policy. It only covers a few types of damage (sometimes also called a Fire Policy). Some absentee landlords use a State-provided HO-1 to cover their properties with renters. Other types of risks covered under an HO-1 are vandalism, lightning, theft, and hail). Some states no longer use this type of insurance because it proved to be too limited.

HO-2: The HO-2 policy is a slight step above the HO-1, covering more potential damages (17 dangers in all). One thing that’s particularly appealing about the HO-2 is that it doesn’t cost that much more than an HO-1 and covers water damage stemming from plumbing and hot water systems. The extra cost for this policy can typically be offset by opting for a higher deductible.

HO-3: Where HO-1 and HO-2 only protected the homeowner from very specific hazards, the HO-3 flips coverage. In this case you’re covered for everything except those perils specified in the policy (flood being a common example). Sometimes the items this policy excludes can be added with the use of an endorsement, which of course costs more.

HO-4: This is a renter’s policy and covers only those items inside the home and liability against the potential risks of all the hazards of a HO-2 policy. The building itself has no coverage.

HO-5: The HO-5 picks up where the HO-3 left off. The HO-3 names the perils it will not cover, while the HO-5 covers close to everything. For example, if you left a window open and rain came in damaging your wooden floor, the HO-5 would cover that. The only exceptions to the HO-5 policy are things like war, nuclear explosions, earthquake and flood. The HO-5 is written for both the structure of the home and your property and is considered the best type of insurance on the market today.

The last three homeowner’s insurance categories are the HO-6, HO-7, HO-8.  HO-6 is for condo owners wanting more coverage than what’s provided by their condo association. It also affords liability coverage. The Ho-7 is insurance for mobile home owners.

Finally the HO-8 may be offered to you when you buy an older home. Depending on the age, condition, and safety issues in an older home, it may not qualify for an HO-3 or HO-5. This coverage is modified typically without replacement cost coverage on the building materials.

One night at dinner mom or dad (or both) suddenly announce they want to sell the family home. Once children reach a certain age and begin moving out many family homes become too much for the aging parents. There’s a very empty home with a lot of upkeep and no extra hands.

Now comes the kicker – they want your help! Many people face this moment feeling a wide variety of emotions. The word “home” means something. The memories of dancing to the Beetles, finger painting on the walls, and getting cooled down by the garden hose in summer still linger in your mind. The impact of effectively packing up those memories with little ceremony seems distasteful.   

Going thru the Attic:

First off, realize that this situation is nothing new particularly in our very mobile society. You need to pace this endeavor in such a way that works for everyone. After all you have decades of “stuff” that has to be sorted. That alone isn’t a fast or easy task, and needs to be handled with sensitivity. Some items will be sold (as your parents are likely scaling back to a much smaller residence). Some might be gifted to you, other siblings, extended family members and friends. Others still might go out for a yard sale, or be gifted to charity. Where everything ends up is up to your folks (with likely some input from you), but try to really listen. This is one of the most difficult aspects of selling the family home. Note that if there are some items that prove difficult to decide about, you can always consider a small storage facility until you (or your parents) are ready to figure out what best to do with Aunt May’s sideboard (for example).

The New Living Space

Once the sorting process is completed the next best step psychologically is to begin moving your folks into their new space. You can transport the tried-n-true familiar items so that the new house feels welcoming (yes, even that beat up chair.. in fact that may be one of the most important items to move right away!).

Beyond getting mom and dad settled and comfortable, moving them out before the family house sells has another advantage. They (and you) will not be subjected to strangers tramping through the house and criticizing every nook and cranny. From the potential buyer’s perspective this also gives them a more “open” house that doesn’t have other people’s personal items everywhere. This allows the buyer to really picture themselves in the home and may move your family house along nicely.

Children and Selling a Family Home

Even when children are grown and in college some may have a very negative reaction to the idea of selling the family home. When they come back to visit, it’s no longer “home” to their mind. In this case it’s very important that everyone involved sit down and talk things through (even by telephone, but in person is better). Understanding the reasons for the move is vital emotionally. Also if the child has personal belongings still in the family home, they should have a say in what happens to those items.

If mom and dad are moving out of the area the scenario gets even more difficult. Now not only are children coming to a completely strange home, but also a town where there’s no other friends or family. It leaves them out of sorts and with a sense of abandonment that can impair relationships if not handled delicately. The comfort zone is gone.

Use Your Words

Overall psychologically good communication seems to be the key to making the process of selling a family home go more smoothly. Recognize from the outset that there are going to be uncomfortable moments throughout the ordeal. Be ready to laugh, cry, feel anxious or frustrated, and generally get a bit stressed out. This is perfectly normal. Find a coping mechanism (exercise helps) and just keep those lines of communication open.

Family Home Sales due to Death

A death in the family can make selling the family home even more of an emotional whirlwind. Did you know that if a person dies at home you may have to disclose this information to potential buyers? Check the laws in your area.

Because the house is likely to be unattended for a while as legal issues work themselves out, you will want to get new locks on the family home and forward the mail to you or the estate executor. This helps safeguard the home from thieves who watch for mail to pile up as a sign that there’s easy entry.

When you’re cleaning out the home, take care to set aside important documentation like insurance declarations, bank statements, and bills. You’ll need all of this to properly wrap up the estate’s holdings. Also keep anything that has personal information on it that could be used for identity theft (yes, this even happens after death). Once you’re certain you have all of these types of documents, then you can move forward and prepare the house for sale as you might any other home.

Get a Realtor

When everyone is on the same page, and knows what’s coming then you can start looking for a real estate agent who has experience in this type of sale. There are real estate companies and lawyers who specialize in estates, and they’re well worth a look. Having such a person gives you a little more emotional distance from the sense of loss that often accompanies every family house showing. You’ll also know that the ins-and-outs of all the associated family paperwork will be handled correctly by experienced hands.

Best wishes, and look toward the future knowing your mom and/or dad will be situation in a home that far better suits their needs well into their elder years, and that you've handled your family's home with loving care.

Ape nature, being what it is, sometimes leaves me scratching my head. It's true that some Big Hairy apes won't treat people of different genders or races equitably. That has been one of our "caveape" lingering habits from which I hope we evolve soon. Nonetheless, why on earth anyone thinks they can effectively regulate equality is sorely mistaken. You cannot simply slap a law together, title it "Equal Opportunity" and think that any ape with more than two brain cells to click together won't know that it's unequal protection for specific groups of people.

Many homeowners have begun using auction houses to move property rather than engaging real estate brokers. In the last 10 years, home auctions have increased a dramatic 10 percent, which adds up to somewhere in the area of 20 billion dollars moving through the auction industry. In 2010, auctions are up even more – now close to 14 in the first quarter according to the National Auctioneers’ Association.

Advantages of Selling a Home at Auction:

The main advantage to a seller in terms of auctioning a house is that it doesn’t have to take a lot of time. You can actually move a house in 10 weeks by putting it up for bidding. Additionally it is much more difficult to wrangle out of an auction. The rules are set up so that once the gavel sounds, that’s it. The property is sold.

While you can find real bargains this way, particularly in foreclosure properties, currently many houses are selling at close to market value. This is good news for sellers who may have tried to sell their house on the open market for months, if not longer. Rather than continue to feel buried under debt, and slash the house’s price yet again, putting the house on the auction block can turn things around quickly with less loss. 

How to buy a House at Auction:

Because more and more properties are becoming available at auction, it helps to know what’s expected of you before you head off to bid on properties. First things first. You need to get your finances in order. Go to a bank and get pre-approval for a mortgage and have this paperwork with you at the auction house.

Step two is figuring out what properties interest you. Your local newspaper will typically have ads for housing auctions, and you can also often find listings on the Internet. Auction houses usually offer more than one property at a time, and set up specific times and dates when you can walk through the property. If the Auctioneer doesn’t offer preview dates, call them and get as much information about the property as possible and set up a home inspection if you’re really interested. Do not bid on any house if you haven’t had an inspection or gotten written agreement for one as a contingency of sale. If a property is being sold “as is” you probably won’t be able to get that in the deal.

Step Three is the bidding itself. It is very important that you stay within your financial comfort zone here. If you go over, your lender may not agree to the extra money. When that happens you either have to find another source of funding or face steep penalties for withdrawing your bid (this can be upward of 25%).

Helps & Hints

When you’re researching foreclosure properties, find out how much is currently owed on the house and where the auction house is starting bidding. Use that information as a basis for comparison to recent home sales in the same neighborhood as the property. Remember to compare apples to apples – you want to see the numbers on houses with a similar amount of space, and the same number of bathrooms, bedrooms and various amenities (like a pool).

Even though you’re trying to buy a house remember that other people may be bidding on the property too – and some of them will have LOTS of auction experience. Additionally if there are any liens on the property, you need to be prepared to pay these along with whatever you bid on the property.

Sometimes an auction may be postponed or cancelled without notice. Before you head out, call and confirm if the auction is still active, and re-confirm all the requirements for bidding. For example, you may be required to have a cashier’s check for 10 percent of your bid to secure yourself as the high bidder until your loan comes through.

If you’ve never been through the auction process before it doesn’t hurt to go to one and just observe. You’ll learn a lot, and don’t be afraid to ask questions. Each state is a little different in terms of the laws and rules that govern home auctions as well as taking possession of the property.

Last but not least, it’s perfectly acceptable to walk away. If the bidding goes beyond your budget or becomes too rich compared to what you’re actually getting for that dollar, just stop. Auctions can become very competitive and it’s easy to get caught up in the atmosphere, forgetting that furious bidding doesn’t necessarily mean a fantastic property. The best property for you is one that you can afford, and that also meets your lifestyle needs. Keep your goals in mind. There will always be anther day with another block of houses for your consideration.

Choosing a new home is one of the most important decisions in a person’s or family’s life. That building impacts every aspect of our lives from how well we sleep to our overall contentment. That’s why some home buyers have begun using Feng Shui principles when they’re looking at potential homes. By applying some Feng Shui basics as you’re reviewing potential houses you can avoid buying a structure that will only bring you grief and improve your chances of finding that dream home.

Getting your Qi

No, not key, Qi (Chi), which is energy. The fundamental principle behind Feng Shui is that life energy is all around us. By designing homes and buildings specific ways, you can encourage the flow of good energy throughout your living space. When you’re buying a home that’s already built, however, you have to look at the positioning of the house and each room therein to get a feel for whether the home will have auspicious Chi.

Initial Assessment

Just like any other house hunting expedition, you’ll still be considering the home’s price, location, and overall condition. No amount of Feng Shui is going to help a house that’s over priced, run down or in a terrible neighborhood.

As you’re looking at each house, there’s an added level of assessment based on what Feng Shui considers positive placement and history. For example, Feng Shui experts don’t recommend buying a home that’s up for sale due to illness, divorce or bankruptcy. Those negative situations imply that the Chi in and around the house is negative and unhealthy (and likely difficult to remedy). On the other hand if the owner is moving because of a promotion or win fall – that’s a sign of good Chi.

Lot:

Look for a house with a lot where the back of the home has an upward slope or grade. This implies life’s upward movement in a positive way. When land slopes downward the symbolism is one of loss. Lots with an open front, where the entry way faces southward and where there’s plenty of “white space” are considered the most auspicious as there’s nothing blocking the Chi from entering your home. Low, well-maintained landscaping is fine, but trees that block the home (particularly the door) should be trimmed back.

Also look for a lot that is either square or rectangular. Irregular lots aren’t good for Chi.  

Access Roads

For access routes a house that has one road that doesn’t lead directly to the house is best, particularly when combined with a gently curving driveway. Positive Chi doesn’t like harsh angles. Houses in cul-de-sacs face some difficulty as the Chi can’t move easily. If the house has other good Chi features, you can correct this using living plants and wind chimes.

Location, Location, Location

The overall ambiance in your neighborhood affects the way energy moves in and around your home. If you’re looking at a home near areas where buildings are sorely in need of repair, that’s not a positive thing. Ditto a neighborhood void of living plants, and those close to busy thoroughfares. Avoid buying a home where the houses on either side of you are bigger than yours. The energy from those homes will overwhelm your space.

On a positive note if there’s water near the front of the home (like a pond or stream flowing nearby) that’s very good Chi energy.

Entryway:

Stand across the street from the house you’re considering. How’s the overall curb appeal? Does the front door feel welcoming? Is the front door blocked by any telephone poles or other obstructions? The more open and unobstructed an entryway, the better Chi can flow into the home.

Note that a house with a door below ground level is one that’s prone to loss (emotional, financial, etc.).

Interior Layout

There is also the overall interior of the home to consider. When you walk through the main door is there a stairway in front of you? This directs the Chi upstairs, leaving the main floor wanting. To correct this you can put a mirror at the top of the stairs so the energy returns back down.

If the front door and back door of the home line up this isn’t good either. Chi might come in, but then go straight back out! Other interior considerations include:

A fireplace or stove in Northwest brings problems for men in the household; A fireplace in the southwest burns away prosperity

Bathroom in southwest brings problems for women in the home; bathroom in the middle of the home leave people weary (it literally flushes away energy).

Ceilings shouldn’t be too high or too low for a comfortable welcoming space, and there should be no skylights in bedrooms (these can disrupt sleep)

Lighting: Natural lighting is very important in Feng Shui. How are those windows?

Center part of the house closed or blocked will cause a blockage in the Chi.

Still Uncertain?

No house is going to be absolutely perfect from a Feng Shui perspective unless you build it from the ground up yourself with the help of a professional. And hiring a professional Feng shui expert wouldn’t hurt when you’re house hunting either. A qualified person will be able to locate potential problem points in the perspective house and also tell you if there’s a simple remedy to them. This way you can buy more confidently knowing the overall Chi for your home will resonate with “good vibrations.”

If you’ve purchased land so that you can build a “dream” house from the ground up, then you can apply Feng Shui design techniques in the layout of the home. Note that you may need to find an architect who is amenable to working with Feng Shui concepts, but that shouldn’t be hard. This represents a fast growing sector in home building because of increasing consumer demand for this philosophical application of the “art of placement.”

Land Selection:

Feng Shui recommends having a parcel of land that has some type of protection in the rear, and openness in the front. If the back of the land is higher than the front, that’s even better. If there’s water near your land, you’ll want to keep that to the front of the house (but not directly pointing AT the house).

Design basics

The entrance to your home is very important. It should be a single door easily seen and free of clutter. Avoid having a stairway directly beyond the entry way if possible (that deters getting Chi into the main level of the house). In your layout, long hallways can be problematic too (particularly one from the front to the back door – you can usher in good chi and have it go right back out again!).

This welcomes positive energy (Chi) into your home. The path leading to your door shouldn’t be too straight, and include some live plants along the way. This guides both the eye and good vibrations where you want them. This improves the overall hospitable feel in your new home.

Ceilings & Windows

Light and air are key to positive Chi. You want mid-height ceilings (a balance between masculine and feminine energy) so the area feels open yet cozy. Good sized windows that let in natural light also strongly affect your home’s ambiance. The more natural light you can use, the less you have to depend on electrical lamps, that don’t do much to improve moods. Adding ceiling lights to your home building plans give you the best of both worlds!

Doors and Edges

While doors are necessary to home construction, having too many can block Chi and even cause tension in a home. The same holds true with having too many sharp corners (think – flow).

Room by Room:

In laying out the interior of your home with an archetect there are areas that will complement specific areas of your life based on Feng Shui principles. For your main bedroom, look to an area of the home that’s Northward. This direction is associated with passion and also relaxation. If you’re planning on an office, workout room, or a study space for students, then North East is the best choice. This is the center for clarity and focus, along with a good amount of energy for manifesting goals.

Moving to the East of the home you’ll find your center for positive thoughts and overall happiness. This makes the Eastern portion of your home ideal for the kitchen, or maybe for a “me” room (a place where you get to play). In the South East you move into your money center and an area that inspires creativity. So this would be an alternative area for that home office, or just a spot where you balance your checkbook!

For your dining room consider the Southern part of your building plan. This area symbolizes your social interaction. The alternative would be to use this region for a living room if that’s where you do most of your entertaining. 

Family rooms work well in the Southwestern area of a home as this region focuses on sustaining healthy relationships. For a couple, this might be a good spot for a bedroom too.

Turning Westward we meet the area of a house associated with family, love, commitment, and prosperity. That makes the west good for many rooms from a small office to a family room, bedroom for children, or dining room.

Put your pantry or cleaning room in the Northwest of the home – this helps you stay organized and on task.

And what about the center of the home? This is where all the Chi mixes and mingles to perfection. That means keeping this region clear of clutter is very important. The center of your home should be designed to be as open as possible with no major obstructions to deter the good Chi you’ve worked so hard to achieve.

Summary:

By applying these basic Feng Shui Home Building tips you will find that the final design and presentation of your home is open, uncluttered and very welcoming. Many architects are ready and willing to work with you on creating a space that's uniquely yours and that will welcome the best energies into your home.

Before you buy a home, one of the things worth looking at is whether the prospective community where that house is located has any type of community building efforts in place. Community building focuses on connecting people with common interests and goals that can also improve the overall tenor of that neighborhood, town, or city. When you find such a region, it makes moving in and getting to know proverbial neighbors much easier.

Take a peek at the area’s official website (you’ll find lots of links right here at BHA). Then check out community activities. Are there book clubs? Pot luck dinners? Regular festivals and gatherings? Community renovation projects? All of these kinds of endeavors help to build stronger communities not only by an awareness of each resident’s strengths and aptitudes, but also by “branding” (in marketing terms). Community building creates the overall aura for a region and sets it apart as something special for the apes who live there and businesses considering coming there.

In modern time our sense of community has been often undermined by many things, the biggest of which is population. It was only 100 years ago that settled apes would rarely see anyone from out of their own town, and pretty much knew everyone in the area by face AND name. There are very few of us outside of rural areas who can say that today. While apes are certainly social creatures, being lost in a jungle of strangers isn’t exactly social, and often leads to negative behaviors. This is where community-building groups step in and try to remedy things.

Unfortunately not all such efforts are successful. Some fail due to poor organization and planning. Others fail by not communicating effectively with their members. But by far the main reason that community-building fails is that it is not inclusive enough, and the individuals or organization involved don’t truly understand the heartbeat of that neighborhood. Community organizations with very narrow scopes tend to create more division than harmony.

Another reason community-building fails is when the organization doesn’t provide the tools or funding needed for success.  These projects require sound leaders who understand the human element in community-building, and those who know how to fundraise, facilitate, and fan the flames of enthusiasm. Community development groups are effectively partners with a community, but they’re also guides that have to be able to motivate the desire for change and improvement.  

Having said all that, community building can prove very valuable and even contribute to the renaissance of many of our struggling towns and cities. Consider the Mission District of San Francisco as one example. They turned the problem of graffiti into ART that now draws thousands of tourists annually. In this case, people were given a mode of expression that helped them, their neighborhood, and in turn the region.

If your prospective house isn’t located somewhere that has community building activities in place, that may not be a reason NOT to buy (particularly if you’re a go-getter who wants to really get involved in your town). However, you may find that until such activities begin to occur there’s a disconnect – it won’t be as easy to settle into your new space and really get to know folks.

Best wishes in your new home (and community)!

Lemmings, that’s really the only word that I can come up with that accurately portrays the overall feeling. I honestly don’t know why people are not rioting in the streets.  Corporations are killing us all. One way or another this now, human entity,  Corporation,  controls our lives and destroys our world. It’s like a plot to a bad scifi movie. The masses run and hide in fear as the Corpor-umans destroy, rape , pillage and defile their way until they run out of planet, then…..well…what?

The Wall St Copor-umans took out Wall St. by ripping off and lying to hard working people and stepping on their corpses in the race to line their bank accounts. Driven by the desire to “succeed” by collecting "wealth", never stopping to consider that that outlook is flawed and contributes to the overall demise of the species.

BP, Halliburton, Transocean, are destroying the Gulf of Mexico, the coastal communities of most of the Gulf States,  the entire economies of small towns and Counties, wiping out pristine beaches, coral reefs, seabeds, grass, mangroves, birds, turtles, dolphin, grouper, sea bass….you get the idea. BP has created or participated in the death of a significant portion of this planet. 20% of the Gulf of Mexico, is closed to fishing. You can read that as Polluted. Oil has begun to wash upon the shores in mass quantities.  Reporters are being denied access to video these areas, being told that it’s BP’s rules. What? BP’s rules? Since when did BP make the rules that govern access to the sovereign land of the United States?  This really happened:  http://www.youtube.com/watch?v=ReSMDCnI90U The journalist was threatened with arrest. Wait until you see what they tried to stop her from seeing!

Oil is turning up everywhere, huge clouds of it are suspended thousands of feet below the surface of the Gulf, floating clouds of death in the Gulf, slowly being drawn into the loop current and soon to be spread through all the world’s oceans. This will further contribute to the demise of the only planet we have.

We wipe out the rainforest, killing the planets ability to create oxygen, which most of you recall we need, right? We don’t know how to make enough of it ourselves to sustain life after we kill all the trees that are currently doing that job for us. We don’t have an Automatic Oxygen Maker available from a late night hawker screaming his imported, slave made products into our bedrooms. In other words, when there are no longer enough trees standing to produce the oxygen we need, we all die. Perhaps you’ve noticed the alarming increase in child asthma over the years. Perhaps it’s because the air we breathe is changing faster than our bodies can adapt.

It has to stop. It just has to or we may as all just lay down and die. A meaningful existence has to include contributing to the propagation of the species, or it loses any perceived meaning when the species perishes.  Our current outlook and attitude is a means to The End not an end. The focus needs to be on learning, using, implementing, demanding that those that can, do for our future not for their bank accounts. Not for our children, not for our grand children, but for the human race as a species.

The dinosaurs lived a long long time on this planet. They died off through no fault of their own. They got hit by a rock. Can’t really place blame on them. But in our case, we profess knowledge, wisdom, even profess to a certain Manifest Destiny, but world wide consider ourselves to be smarter than dinosaurs but we actively seek to bring about our own demise as a species and form of life. Perhaps as some suggest, the only form of life.  Perhaps…we now know why. We’re just too stupid to live.

Long live the dinosaurs, soon to become THE most success life form this planet has ever seen.

You’ve fixed up the curb appeal, you’ve redecorated the interior – what else can you do to sell your home more quickly. How about a little Feng Shui?

Feng Shui has been around for thousands of years. Initially this “art of placement” was used in the Far East as a means of determining the most propitious locations for important buildings and even for determining where a town might be settled. It continues to be utilized today, predominantly inside homes and offices as a means of keeping positive “vibes” (called Chi) flowing. Sounds good? Better still, it’s not difficult to give your home a Chi face lift.

Begin at the front door. If you can have something red near to your entryway, this attracts prosperity. You can use a potted plant if red paint isn’t quite a trim you can use with the remaining backdrop. Make sure your door LOOKS nice. This is where you welcome potential buyers and a clean, hospitable front door becomes a letter of invitation. Also if yo