The Perfect Home in Real Estate

Home buyers must often deal with deferred maintenance or repairs. For example, you may have found a terrific house and like many competent home buyers, you included a structural inspection contingency in your purchase agreement. What happens when you find out that your "perfect" house needs some work? Do you ask the sellers to pay for the repairs? Before you answer "yes", there are some important considerations.

Some contracts require that all of the home's systems, such as plumbing, heating, electrical and central air conditioning, be in working order. In this case, the sellers may be obligated to repair any problems with these systems. Leaky roofs, damp basements, or other structural problems may not be covered, however. If you ask the sellers to make these types of repairs, you may void the contract by doing so. The sellers might prefer to negotiate the repairs to keep from losing the sale. If there are other buyers waiting in the wings with back-up contracts, you run the risk of losing the home.

Ask your Real Estate Agent for advice on how to handle the needed repairs in an acceptable manner that will keep both parties on tract and focused on the priority - completing the sale!

Real Estate Walk Through Woes

Buyers can be a little cranky on closing day if things go wrong during the walk-through inspection. For example, the sellers' dependable old dishwasher might stop midway through its cycle and the bathroom sink might clog unexpectedly. These situations can create anxiety for the buyers and sellers, but such problems are quite common and usually simple to resolve.

Most purchase agreements require that the major mechanical systems and the appliances being conveyed are in working order at the time of the closing. Defects are often discovered during the structural inspection, allowing the sellers plenty of time to have the repairs made. Occasionally there are last-minute breakdowns or defects that are not spotted until the walk-through inspection. In that case, an agreement can be made with the sellers at the closing to escrow funds for the repair or replacement of the items in question.

Remember to stay focused on the main reason you are there - "The purchase of your new dream home."  Carefully handle the situation and then move on to the closing.

Careful Property Inspections

Many home buyers today are investing in a professional structural inspection before they finalize their purchase of a home. You should choose an inspector carefully and be prepared to learn important facts about your new home that could save you money.

When you have a ratified sales agreement, the Real Estate Agent will set up an appointment for you to see the home with the inspector. Bring a notebook, even though you will get a written report of the inspection. Write down any questions or concerns that may occur to you as you tour the house, such as cracks in the walls, spots on the ceiling, or noises in the air conditioning system. And remember that no house is perfect. You should come away from the inspection with a fundamental understanding of what you are buying and how much the maintenance will cost.

Need to find that top quality home inspector?  Go to www.askaboutrealestate.net and request the best.

Buyer Protection in a Real Estate Transaction

There are situations in which you as a homebuyer may be in need of protection: here is one example. You have finally found the home that is right for you, but you have some questions about the structure and condition of the home. A home inspection is the best place to get answers that will help protect your interests as a buyer. There are companies that specialize in inspecting new and used homes. Most sellers allow a reasonable amount of time to have the property inspected after the purchase agreement is agreed upon and prior to closing. It is wise to have a home inspection, even if the house is new or everything appears to be in perfect condition.

The inspector can provide important information about the house. Where are the gas and water shut-off valves? How do the circuit breakers operate? What type of routine maintenance should be done for each system?

NOTE:  The inspector's fee is an investment that can save you money later!

The Real Estate Inspection Report

Are you looking for a home and becoming tired of house-hunting? If so, you may be tempted to buy a bargain-priced home "as is" and forego the home inspection. But without the inspection report, do you know what the "as it" refers to? Wouldn't it be better to know what condition the home is in before you buy it?

The inspection contingency allows the buyer to enlist the services of a licensed home inspector within three to seven days after the purchase agreement is signed. The inspector will go over the property from top to bottom, evaluating the condition of all the basic systems and structures of the home in order to identify conditions that may be considered material defects and thus may affect the market value or the safety of the home.

The inspector's report is the only documented proof of the actual condition of the property that is being sold. It is a valuable tool that helps you negotiate the sales contract and gives you information about future maintenance projects. The cost of an inspection is well worth the peace of mind it provides.

Looking for a great home inspector?  Request their services at www.askaboutrealestate.net.

About Termites in a Real Estate Transaction

Many real estate offers require an inspection by a licensed exterminator to determine that the house doesn't have termites or other wood boring insects. The inspector will look for two signs in deciding whether or not to pass a house--an active termite infestation and evidence of a past infestation.

If your house does not pass the termite inspection, get a list of qualified exterminators from your Real Estate Agent. Find out what treatment options they offer and what they charge for the service. Exterminators are usually quite competitive. If your home was treated for a past infestation, the company which performed the extermination may be willing to re-certify your home without a second treatment. Arrange for the termite inspection as early as possible, so you will have time to determine the best way to get rid of them, if they are found.

Going Green - How to Fight Global Warming
Take these steps and you'll help reduce global warming pollution.[En Español]

Overpriced Real Estate

In the real estate world, a large group of people are looking to buy homes at any given time. These are the seller's best prospects. This ready group of buyers is wasted, however, if your house is overpriced.

People who have been shopping around and are accustomed to comparing properties will probably refuse to look at your home with an unrealistic price tag. You and your Real Estate Agent may know that you would sell for $10,000 less, but the buyers do not know this. As a result, your overpriced property receives little attention.

Don't be fooled into thinking that your house is worth more than someone is willing to pay for it, or that it's just a matter of waiting for the "right" buyer to show up.

Surveys show that the longer a house is on the market before being sold, the greater the drop in price from the listing price when it does sell. The buying public eventually sets an accurate price.

An overpriced house just sits on the market, waiting for a price adjustment before it will attract a buyer.

Price and Condition in Real Estate

Pricing a house is one of the most important parts of the marketing process. You want to get as much for the property as you can, but if you set the price too high, you can turn away qualified buyers. Your Real Estate Agent can tell you the selling price of homes comparable to yours. Pricing strategy depends on market conditions, and it is different in a buyers' market than it is in a sellers' market.

If your home is overpriced, the marketplace will reflect that to you. When a property fails to sell in a reasonable period of time, you and your real estate agent should have a frank discussion to determine whether too high a price tag is the reason. Your real estate agent will also be getting feedback from other agents who have shown your home.

Remember that price is only one factor. Consider ways you can make the property more attractive to show by handling needed repairs, improving curb appeal or making cosmetic improvements.

Sellers remember:  Improve the condition of your home and you will improve its chances of selling.

Keeping Your Earnest Money Safe

When you make an offer on a house, it is accompanied by an earnest money check. Earnest money is intended to demonstrate that you are "in earnest" about purchasing the property. The earnest money check is made out to the listing company. What happens to this check?

The party holding the check acts as an escrow agent until you go into closing. At that time you will receive credit for the amount of your check against the down payment and closing costs. Real estate brokers are required by law to keep escrow funds in a special account. These funds cannot be used to pay any other expenses associated with the sale. If you don't complete the transaction, the purchase contract determines the disposition of your earnest money funds. Be sure to review this part of your contract with the Real Estate Agent.

If you are in default on your agreement, the funds may go to the sellers, so be sure that you understand the deadlines in order to avoid breach of contract and forfeiture of your deposit. If you have any questions, be sure to ask your Real Estate Agent for advice.

Evaluating the First Offer in Real Estate

Your dining room table is the scene of high drama. Your home has been listed for sale for six weeks, and finally, the first offer has come in. You are meeting with the agents, and are very excited until they mention the price--it is a lot less than you expected.

Before you feel offended, however, remember that the first offer is often just the beginning of a negotiating process. Your agent can help you weigh the good and bad points, evaluating the price in relationship to the terms or conditions of the sale. Sometimes an offer with a low price can look quite attractive once you understand all of the terms. If you are willing to make some compromises, the buyers may accept a counter offer that will give you more money. A lower price from highly qualified buyers may be better than one from people who may have difficulties with financing. Keep in mind that your first negotiated price is often your best price!

Good Faith Deposits in Real Estate

After many months of searching, you have found your ideal house. You are a little older and a little wiser now, so you want to give the impression that you are serious without appearing to be too eager. What should you do? In the marketplace, "money talks."

There is no absolute rule about how much "good-faith" deposit you should put down--but it is a tool to make your point with the seller. The typical $1,000 will hold many homes for you, except in larger-home markets where it may be critical for you to show that you are an especially serious and able buyer. You don't want to make a deposit that is too large in case there is a problem getting your money back, but if your offer is substantially below the asking price, a larger deposit--$5,000 or $10,000--might influence the seller. If you make a low deposit with your offer, be sure to provide for an increased deposit when the offer is accepted or upon removal of the contingencies.

Bargaining in Real Estate

You found a house that seems perfect and you really love it. The chemistry is there, and the price is right. If you are like many buyers, you start off by asking the Real Estate Agent if the sellers will take less than they are asking.

A Real Estate Agent doesn't know what the sellers' bottom price is. The sellers often don't know themselves until they get an offer. In many cases, the price is negotiable, but the only way to test it is to make the sellers a written offer to accept or counter.

Attractive, well-priced homes usually sell quickly in any market. If you get involved in offers and counter offers, another buyer could come in with a better offer while you are negotiating back and forth. If you cannot qualify for financing at the asking price and you are willing to risk losing the house, you can make a lower offer. But if it will break your heart to lose a home you really love and you can afford it, it may be better to avoid bargaining and simply pay the asking price.

Greening Your Business
Tips on how to start making your business operations easier on the planet -- and on your bottom line.
[En Español]

When you start to green your business operations, you're helping to reduce global warming pollution, preserve forests and biodiversity, and keep our air and water clean. And you can also help protect your bottom line because environmentally responsible businesses are efficient businesses. This guide provides a few simple tips on how your business can start to go green.

Use Better Paper, and Less of It
The average office tosses out about 350 pounds of paper per employee, per year. Reducing your waste and purchasing paper with postconsumer recycled content can help save trees and nudge the pulp and paper industry, one of the most environmentally destructive industries in the world, toward a less damaging path.

• Set your printers to print double-sided, or designate a draft tray and fill it with paper that's blank on one side.
• Buy copier paper with a minimum 30 percent postconsumer recycled content. (100 percent is best!)
• Collect used paper separately for recycling, and coordinate with your building manager and waste hauler to set up a recycling system that works for everyone. If you can, also recycle other materials, like aluminum, glass and plastic.
• Stock bathrooms with postconsumer recycled tissue products. Tissue manufacturers destroy forests when they turn virgin wood into throw-away paper products. See our guide for ecologically preferable brands.

Get Energy Efficient
Using less energy reduces the demand on power plants, the nation's leading contributors to global warming pollution and mercury pollution. And it saves a bundle on your energy bills.

• Contact your utility company to arrange for a free (or inexpensive) energy audit. An engineer will examine your operations and provide you with a detailed report about how your firm can save on energy costs, from rebates to improved maintenance.
• Turn off lights and unplug electronics after hours -- computers and other electronics use energy while they're plugged in, even when they're switched off. (Plug all your appliances into a power strip and you'll only have to flip one switch at the end of the day.)
• Set computers to sleep and hibernate when inactive, and lose the screen savers. Flying toasters and slideshows can use up about $50 of electricity in a year. Look for power management or energy saving features on the control panel for Windows, or system preferences under the apple menu for Macs.
• Use Energy Star office equipment -- most major brands carry energy-saving models marked with the Energy Star label.

Cut Water Waste
One billion people on our planet can't get safe drinking water. In the United States, some rivers are being drawn down faster than nature can fill them up. Using water efficiently today will help ensure that future generations have access to the water they need.

• Install faucet aerators and low-flow toilets
• Check for and fix leaks
• Recycle water
• Landscape for maximum water efficiency

Create a Greener Working Environment
Employees are on the front lines of any sustainability initiatives your company chooses to make. Participation from all levels of your staff is a crucial part of any greening effort.

• Buy less toxic cleaners to improve indoor air quality and reduce risks to employee health.
  
• Create a green team with members from all divisions of your organization to help implement plans and bring new ideas to the table.

Stay Tuned NRDC offers comprehensive getting-started guides to green building and to smart paper-use practices. If you are a business owner or manager and you'd like to hear from us when we add resources to help you green your business, sign up here.

RESOURCES Building Green: Safeguard Indoor Environmental Quality EPA Nontoxic Household Products Fact Sheet GreenSeal Database of Certified Cleaning Products Green Biz: 10 Keys for Education and Engaging Employees

Find more green guides in our Green Living section and in the NRDC Action Center

The Language of Real Estate Agents

Technical terms can be confusing to people who do not work in a profession, and Real Estate Agents use language that may be confusing to many home buyers and sellers.

If you find your eyes glazing over when your Real Estate Agents starts talking about escrow, clear title, easements, encroachments, contingencies, financing, appraisals and the closing process, don't hesitate to ask for a translation. Buying or selling a home is a major step, and professional Real Estate Agents are totally committed to helping you understand the process thoroughly so that you can make informed decisions.

The simple transaction of trading the sellers' house for the buyers' money has become complicated by several hundred years of custom, common law, and state and local government requirements. Consumer demands have resulted in up-to-date rules that communication be as clear and understandable as possible. Real Estate Agents work to create an atmosphere in which you feel comfortable to ask questions.

Refinancing Your Home

Interest rates fluctuate as changes occur in the general economy. If you purchased your home when interest rates were higher, you may want to consider re-financing your loan at a lower rate.

You will have to apply for the new mortgage and have your current income eligibility assessed. Depending on how long you have had your present loan, a current appraisal may be required. There are closing costs, such as attorney, title fees, recording and notary fees, and appraisal charges. The biggest factor in your decision should be the length of time you plan to remain in your home. If you will be there for only a year or two more, it might not pay to re-finance. If you will be in your home longer, re-financing could provide you with lower mortgage payments.

Your Real Estate Agent can help you work out the numbers and can refer you to reputable home appraisers and mortgage lenders.

Professional Appraisals in Real Estate

Before your mortgage application is approved, the lender will order a professional appraisal of the home to make sure that the agreed-upon selling price is justifiable based on the current market value of the property. The cost of the appraisal will be based on the complexity of the appraisal report and the time required to complete it.

A professional appraiser will choose the appraisal technique that is applicable to the particular property to arrive at an unbiased opinion of value. One approach is to look at comparable homes in the area that have sold within the last six months. If there are a number of similar properties that have sold recently, the appraiser's job is easy. It is more complicated to arrive at the appraised value if your home is located in a rural area or a diverse neighborhood.

The appraised value will usually be very close to the sale price. If the appraisal comes in lower, the real estate agent may be able to provide the appraisers with additional information on recent sales which will result in increased value.

Lender Appraisal in Real Estate

Many sellers think that the price of their home is determined solely by what they are willing to accept and what the buyer is willing to pay. However, there is one more variable that can affect the sale of a home assuming that a bank loan is involved -- the lender's appraisal.

To protect the interest of their investors, the buyer's mortgage lender hires a licensed appraiser to give an independent, objective opinion of what the property is worth.

The appraiser compares the house with similar homes in the neighborhood that have recently sold. Square footage, amenities and the condition of the home are taken into account. Renovations and home improvements made by the seller usually add value to the home, while defects such as needed repairs or code violations decrease the property's value. The seller's real estate agent can provide the appraiser with up-to-date information about neighboring homes that have sold to support the seller's asking price

Real Estate Terms (the N's)

negative amortization
A gradual increase in mortgage debt that occurs when the monthly payment is not large enough to cover the entire principal and interest due. The amount of the shortfall is added to the remaining balance to create "negative" amortization.

net cash flow
The income that remains for an investment property after the monthly operating income is reduced by the monthly housing expense, which includes principal, interest, taxes, and insurance (PITI) for the mortgage, homeowners' association dues, leasehold payments, and subordinate financing payments.

net worth
The value of all of a person's assets, including cash, minus all liabilities.

no cash-out refinance
A refinance transaction in which the new mortgage amount is limited to the sum of the remaining balance of the existing first mortgage, closing costs (including prepaid items), points, the amount required to satisfy any mortgage liens that are more than one year old (if the borrower chooses to satisfy them), and other funds for the borrower's use (as long as the amount does not exceed 1 percent of the principal amount of the new mortgage).

nonliquid asset
An asset that cannot easily be converted into cash.

note
A legal document that obligates a borrower to repay a mortgage loan at a stated interest rate during a specified period of time.

note rate
The interest rate stated on a mortgage note.

notice of default
A formal written notice to a borrower that a default has occurred and that legal action may be taken.

Real Estate Terms (the M's)

margin
For an adjustable-rate mortgage (ARM), the amount that is added to the index to establish the interest rate on each adjustment date, subject to any limitations on the interest rate change.

master association
A homeowners' association in a large condominium or planned unit development (PUD) project that is made up of representatives from associations covering specific areas within the project. In effect, it is a "second-level" association that handles matters affecting the entire development, while the "first-level" associations handle matters affecting their particular portions of the project.

maturity
The date on which the principal balance of a loan, bond, or other financial instrument becomes due and payable.

maximum financing
A mortgage amount that is within 5 percent of the highest loan-to-value (LTV) percentage allowed for a specific product. Thus, maximum financing on a fixed-rate mortgage would be 90 percent or higher, because 95 percent is the maximum allowable LTV percentage for that product.

merged credit report
A credit report that contains information from three credit repositories. When the report is created, the information is compared for duplicate entries. Any duplicates are combined to provide a summary of a your credit.

modification
The act of changing any of the terms of the mortgage.

money market account
A savings account that provides bank depositors with many of the advantages of a money market fund. Certain regulatory restrictions apply to the withdrawal of funds from a money market account.

money market fund
A mutual fund that allows individuals to participate in managed investments in short-term debt securities, such as certificates of deposit and Treasury bills.

monthly fixed installment
That portion of the total monthly payment that is applied toward principal and interest. When a mortgage negatively amortizes, the monthly fixed installment does not include any amount for principal reduction.

monthly payment mortgage
A mortgage that requires payments to reduce the debt once a month.

mortgage
A legal document that pledges a property to the lender as security for payment of a debt.

mortgage banker
A company that originates mortgages exclusively for resale in the secondary mortgage market.

mortgage broker
An individual or company that brings borrowers and lenders together for the purpose of loan origination. Mortgage brokers typically require a fee or a commission for their services.

mortgagee
The lender in a mortgage agreement.

mortgage insurance
A contract that insures the lender against loss caused by a mortgagor's default on a government mortgage or conventional mortgage. Mortgage insurance can be issued by a private company or by a government agency such as the Federal Housing Administration (FHA). Depending on the type of mortgage insurance, the insurance may cover a percentage of or virtually all of the mortgage loan. See private mortgage insurance (MI).

mortgage insurance premium (MIP)
The amount paid by a mortgagor for mortgage insurance, either to a government agency such as the Federal Housing Administration (FHA) or to a private mortgage insurance (MI) company.

mortgage life insurance
A type of term life insurance often bought by mortgagors. The amount of coverage decreases as the principal balance declines. In the event that the borrower dies while the policy is in force, the debt is automatically satisfied by insurance proceeds.

mortgagor
The borrower in a mortgage agreement.

multidwelling units
Properties that provide separate housing units for more than one family, although they secure only a single mortgage.

multifamily mortgage
A residential mortgage on a dwelling that is designed to house more than four families, such as a high-rise apartment complex.

Real Estate Terms (the L's)

late charge
The penalty a borrower must pay when a payment is made a stated number of days (usually 15) after the due date.

lease
A written agreement between the property owner and a tenant that stipulates the conditions under which the tenant may possess the real estate for a specified period of time and rent.

leasehold estate
A way of holding title to a property wherein the mortgagor does not actually own the property but rather has a recorded long-term lease on it.

lease-purchase mortgage loan
An alternative financing option that allows low- and moderate-income home buyers to lease a home from a nonprofit organization with an option to buy. Each month's rent payment consists of principal, interest, taxes and insurance (PITI) payments on the first mortgage plus an extra amount that is earmarked for deposit to a savings account in which money for a downpayment will accumulate.

legal description
A property description, recognized by law, that is sufficient to locate and identify the property without oral testimony.

liabilities
A person's financial obligations. Liabilities include long-term and short-term debt, as well as any other amounts that are owed to others.

liability insurance
Insurance coverage that offers protection against claims alleging that a property owner's negligence or inappropriate action resulted in bodily injury or property damage to another party.

lien
A legal claim against a property that must be paid off when the property is sold.

lifetime payment cap
For an adjustable-rate mortgage (ARM), a limit on the amount that payments can increase or decrease over the life of the mortgage. See cap.

lifetime rate cap
For an adjustable-rate mortgage (ARM), a limit on the amount that the interest rate can increase or decrease over the life of the loan. See cap.

line of credit
An agreement by a commercial bank or other financial institution to extend credit up to a certain amount for a certain time to a specified borrower. See home equity line of credit.

liquid asset
A cash asset or an asset that is easily converted into cash.

loan
A sum of borrowed money (principal) that is generally repaid with interest.

loan commitment
See commitment letter.

loan origination
The process by which a mortgage lender brings into existence a mortgage secured by real property.

loan-to-value (LTV) percentage
The relationship between the principal balance of the mortgage and the appraised value (or sales price if it is lower) of the property. For example, a $100,000 home with an $80,000 mortgage has a LTV percentage of 80 percent.

lock-in
A written agreement in which the lender guarantees a specified interest rate if a mortgage goes to closing within a set period of time. The lock-in also usually specifies the number of points to be paid at closing.

lock-in period
The time period during which the lender has guaranteed an interest rate to a borrower. See lock-in.

Fair Market Value in Real Estate

What is the best price for a piece of real estate? Mortgage lenders, appraisers, and real estate brokers use what is called the "fair market value" (FMV). FMV has been defined as "the price that a buyer is willing to pay and the seller is willing to accept, when both parties are knowledgeable about the property and neither is under any time pressure to buy or sell". Sounds great, but how is this price determined?

The starting point for determining a fair price may be an opinion of the value or "comparative market analysis". Such an analysis uses information on similar properties which are: 1) currently for sale, 2) already sold, or 3) expired properties (those which did not sell). Local, national and international trends and market conditions must also be evaluated.

By comparing similar properties in each of the three categories and the market conditions, appraisers, lenders and agents come very close to the maximum price that buyers would be willing to pay for a house.

Best Interests of the Real Estate Buyer

Who represents the homebuyer in the transaction? The most common scenario is for homebuyers to purchase a home with the help of the seller's listing agent. In this case, known as "dual agent representation," the Real Estate Agent assists both the sellers and the buyers. However, it is also possible for the buyers to ask another realtor to represent their interests exclusively, acting as the "buyer's agent," a service which is available at no additional cost to the homebuyer.

Any licensed Real Estate Agent can act as your buyer's agent, helping you to locate and look at properties in your price range. However, if that Real Estate Agent works for the same brokerage that is listing a particular property, dual agency or designated agent rules will then apply. The buyer's agent will advise the buyer if issues arise such as termite damage or significant material defects appearing on the home inspection report. If the home appraisal comes in at less than the asking price, the agent will represent the buyer's interest, working with the seller and the lender to negotiate a satisfactory resolution.

A Market Analysis in Real Estate

Setting the right price is an important first step in the process of selling a home. Is it necessary to spend $200 to $400 for a professional appraisal of your property before placing your home on the market?

A professional appraiser's opinion of a property's market value is based on the recent sales of similar homes in the neighborhood, and on the square footage and condition of the property. Different appraisers might come up with different figures. Even if all of them agreed on a value, there is no guarantee that you would receive that amount for your property.

An alternative to a professional appraisal is to ask a professional real estate agent for a written market analysis of your property. This analysis will include information about recent home sales in your neighborhood, as well as how those homes compare to yours. Real Estate Agents may provide this service with no charge or obligation. If you are still unsure of the value of your home, you may wish to pay for an appraisal.

Working With Appraisers

After the buyer and seller come to a "meeting of the minds" on the price of a house, there is one more person who must be convinced that the house is worth the selling price--the mortgage company's appraiser.

The appraiser looks for three similar houses that have sold in the same area within the last several months, and compares the selling prices of these homes with the one that is now on the market. The appraiser makes adjustments to account for the differences in each property, and averages the adjusted prices of the other three homes to arrive at a final opinion of value. In subdivisions or condominium projects where there are many similar properties and numerous recent sales, the appraiser's job is relatively easy. In neighborhoods of older homes that have been renovated or remodeled over the years, it can be like comparing apples and oranges.

If the appraiser's evaluation is lower than the selling price, it can stall the transaction because the lender may decline the buyer's loan because of the discrepancy. A Real Estate Agent can work to minimize potential delays associated with the appraisal process by helping the seller to price the home as close to fair market value as possible.

A Real Estate Agents Expertise

If you are using the services of a professional Real Estate Agent to find a new home, good communication is crucial to the transaction. A Real Estate Agent who knows your most significant criteria can work much more effectively to show you homes that will meet your needs.

Let the Real Estate Agent know why you are interested in a specific location. Discuss specific requirements such as proximity to your job, good schools, or recreational activities. If there are no houses available in your price range, the agent may suggest alternate neighborhoods with the same amenities. Do you need a home office or do you have hobbies that you want to accommodate? Is there a particular style of architecture that you prefer?

Agents sometimes have to be intuitive when we work with buyers. The more you can describe to your agent what elements in the home are essential and where you are willing to compromise, the easier it will be to use their expertise to find a home that's perfect for you.

7 Low Cost No Cost Ways to Network

Effective networking is one of the best ways to gain good market exposure. The good news is that you can do this at low cost!

Effective networking is one of the best ways to gain good market exposure. The good news is that you can do this at low cost! Whether it is the list of friends and acquaintances you have or meeting someone new, it always helps to have more contacts. Here are some low cost ways to improve your network of contacts.

a. Calling up: If you are scared or have inhibitions about cold calling then shed them right away. Pick up your telephone and start calling your contacts. You could contact journalists and media persons right away. Contacting such persons will prove to be very beneficial for your organization as having relations with them can mean good publicity for you in future. At a later date whenever you need to introduce a new marketing campaign or product, just contact these media persons and you are assured of publicity.

b. Social media websites: With the recent wave of Web 2.0, it’s foolish not to leverage this wonderful technology for increasing one’s network of contacts. With various blogs, forums and online discussion groups, there is no dearth of opportunity for building on your contacts. You never know - one contact can lead to another and may even land you a business deal!

c. Introduce yourself: If you are the shy and reserved kind of person who takes time to open up to a conversation, you can forget about networking. Successful networking is all about being proactive, talking and meeting people as much as you can. Make sure to go meet as many people in your niche segment and introduce yourself and your business to them.

d. Free speeches: Free speeches help any business person establish authority in the niche segment. So if you speak well and know your subject matter fairly well, consider giving a free speech at a common and popular venue. You will not only find large crowds gathering but once you give out your business cards you’ll be amazed at how soon customers start enquiring about your products.

e. Group meetings: Group meetings and public body associations are great ways to socialize and network. Make sure to carry plenty of business cards when you reach the place. Once you are there, be proactive in introducing yourself and handing out your business cards to clients. This really helps create an impression on potential business partners and you will very soon find yourself receiving enquiries from customers.

f. Events: By having a fun-filled and interesting event in your office premises, you can get to network a lot. Try having a dinner party or an informal luncheon and invite everyone you know. Anyone who is interested in this niche vertical can also be invited. This way you get to meet plenty of new people and add them to your contact list.

g. Help out: If you know some associations or professional groups, consider getting involved in an active manner. You may not be able to volunteer for a lot of the work but trying to help out in little ways can really help build on your network of contacts. You will not only meet more people but also be able to propagate your business in this manner.

Networking is crucial to business growth. This especially holds true if you’re in the service sector. So use these proven methods to network your way to more business and more profits!

About the Authors

Doug and Claudia Brown use their 40 plus years of business building experiences to educate people and businesses on how to dramatically increase their revenues. Free Report "17 Strategic Steps to Steps to Achieving a Six Figure Income or More" at http://www.whatisyourplan.com/

Are you ready to get started on your journey to clutter control?

Here are 10 things you can do right now:

1. Get rid of your largest items first. Eliminating exercise equipment and large stuffed animals that don't belong in a room can result in an immediate improvement in clutter reduction. Once you get rid of the big pieces, it will make it easier to move on the the smaller pieces.

2. Return everything that has been borrowed from someone else. Magazines, books, CDs, videos and tools are just a few of the things that may below to friends or neighbors. Return them to the people they belong to.

3. Pick up everything that is on the floor. Sort into boxes, baskets - and most importantly - trash bags. Take laundry directly to the laundry room.

4. Recycle newspapers, magazines and catalogs. If you've read them, throw them into your recycle bin. If you haven't, put them into a "to read" basket or shelf. Cut out articles that you want to keep and toss the rest of the magazine.

5. Have you looked into your closet lately? I mean really looked? How many pieces of clothing and shoes are there that you never even wear? Donate them or put them in a box for your next garage sale.

6. Go through your dresser drawers and toss old socks, pantyhose and lengerie. Also, get rid of sweaters and jeans that no longer fit you. Are you really going to be able to wear them within the next few months?

7. Now, go to your office. How many old pens are in your desk drawers that don't work? Toss them! While you're there get rid of used ink cartridges and other things that you're never going to use.

8. Clean off your desktop. Go through each piece of paper and decide how important it is. Put bills and statements into your "in" box to pay. Throw old newspapers and flyers away.

9. Empty all of the wastebaskets where you have tossed your decluttering efforts immediately - before you decide there's something in there that you just can't part with. Believe me, after a few days you won't even remember that item!

10. Wash each room's windows. There's nothing that will make a room look brighter and cleaner than a little sunshine.

There it is. Start with this ten items to make a huge difference in the clutter of your rooms. You'll be glad you did.

New Year in Real Estate - New Opportunities

(Successful Business Plans)

“Out with the old and in with the new?” is a popular saying and one many Real Estate Agents are hoping means improved business opportunities in 2008. As independent business owners you don’t need to wait for the end of a calendar year to revamp your business plan, but it is often an easy time to reflect on the past and look forward to the future.

Business planning need not be a complicated, time consuming, cost leaden process that takes you away from finding consumers willing to use your business services. But it does require you to take an honest look at what you have done in the past and whether it has worked or failed.

Below we have put together a short and concise model for you to follow. You can add to or subtract from the process as you desire. The more business planning you do the better and more rewarding your plan will be.

Step one is getting started. Many people fail to complete a business plan because they think it is too complicated or too difficult to follow. Begin with establishing a goal for 2008. First have a goal for the year, and then break it down by month and by day. This may be harder than you think.

You need to consider not only what you have done previously, but how many transactions you need to make to cover your business and household expenses. As an independent contractor you are both employee and boss, so you must make sure that when building your sales goals it takes into account not only the costs of running a business, but also the cost of your number employee – you!

Let’s say you live frugally and set a goal of 12 homes in 2008 based upon the average commission dollars you collected in 2007. Does that mean 1 home a month? Not necessarily. More homes may sell in May and June than in December and January. That means you need to determine what percentage of homes sell in each month. If 100 homes are sold in a year, and 14 sell in May and 12 June, that means 26 percent of all sales happen in those two months. That means to stay on track with your goal you must sell 4 homes in those two months!

TIP – don’t use one annual year to establish a sales curve. Use 4-5 years of transactions to come up with this number. 2007 was not a typical year and the sales curve would be skewed toward spring. By using 2001-2006, and 2007, you will get an overall sales curve that takes in account different market situations and fluctuations.

Step two is contacts. You must determine how many consumers you must come in contact with before getting a sale. This is an age old process of determining how many people you must talk to about your service business before one is converted into an appointment. From here you must determine how many appointments are converted into actual contracted clients. Then you need to determine how many clients end up in purchase agreements.

Let’s say as an example you convert 15 contacts into one appointment. For every 3 appointments you are able to get a signed buyer or listing contract. For every listing taken you sell 50 percent and for every buyer contracts you are able to convert 1 out of 3 into a sale.

If your goal is two a month, that means for every listing sold you need an inventory of two. If you are planning on selling two in March, you will need an inventory of four. In order to get four listings, you will need to make 12 listing presentations which means you will need to contact 180 people about your services. That means you must be explaining your listing services to at least 6 people a day and requesting an appointment, based upon your 15 to 1 contacts to appointments ratio.

The 15 to 1 ratio may not be enough based upon what prospecting activities you are pursuing. When pursuing buyer leads, the formula could easily top 20 contacts before you can secure an appointment. That means you must talk to lots of people considering a home purchase before you will be able to set an appointment, sign a buyer contract and ultimately sell a property.

Step three is activity. This step is looking at how you are going to come in contact with consumers looking to utilize the real estate services you provide.

• How many people are coming through your open houses (buyers & sellers)?
• How many cold calls does it take to get an appointment?
• How many expired listings do you need to contact before one sets an appointment with you?
• How many FSBO’s do you need to call upon before you get an appointment?
• How many ads, mailings, brochures etc. does it take to get the phone to ring once?

This is where you need to error on the high side not the low side. If you think it takes between 8 to 10 people during an open house setting to get an appointment, use either 10 or 12 in your planning. The worse thing that can happen by erring on the high side is that you have more sales than you planned to sell.

Step four is commitment. Talk to your broker and significant other(s) about your goals and how you are planning to achieve them. This accomplishes two things:
1) It makes your commitment public so your broker and significant other can hold you accountable;
2) Your family and friends will understand why you are working so much.

Also, post your plan with your daily contact goals in front of you at your real estate office, home office and if need be your fridge or bathroom mirror. You need to see these goals constantly in order to keep yourself motivated and on track. Make a personal commitment not to quit working until you have made the necessary contacts daily.

One of the most common problems for Real Estate Agents is diversions. You get busy showing homes or preparing listing presentations and fail to prospect. You sell one more house in March then you had planned and decide since you are ahead of plan you’ll take a week off. Don’t stray from the plan. If you take time to vacation, you must alter the daily contact plan. As an example, if your business plan calls for 6 contacts a day and you take off 5 days, you need to spread those 30 contacts over the next week or ten days or you will fall behind.

Step five is to continually update your plan. If you are not converting enough contacts into appointments, you need to increase your number of contacts. If you are not selling enough of your listings, you will need more listings and hence need to make more contacts.

You also need to adjust your financial budgets. If revenue is not flowing as you planned, you need to make adjustments on the expense side. That means cutting out as many unproductive or relatively unimportant expenditures. You probably cannot cut out auto fuel, but perhaps lunch out of the office or shrinking or eliminating some advertising will help get you on track. As tough as it is, household expenses may need to be adjusted. That includes extras like super sized cable packages, vacations and other activities that do not directly impact the bottom line of your business.

When you make your business plan make sure you focus on what your business is – you are selling your ability to assist a buyer or seller in a housing transaction. All of your marketing materials, including your verbal script must focus on why a consumer should utilize your service when buying or selling a home.

Best Wishes as you prepare to for a successful 2008.

Save Money at the Pump and Stay Safe

INFLATE TIRES. Under-inflated tires waste nearly 4 million gallons of gasoline annually, according to the US Department of Energy. They're also a leading Cause of tire failure, which can cause accidents. Check tire inflation frequently - even good tires lose pressure from month-to-month.

EASE OFF THE ACCELERATOR. On the highway, you can improve gas mileage by about 15% by cruising at 55 to 60 miles per hour, rather than 65 to 70. Slowing down also saves lives. Speeding is a factor in nearly 1/3 of fatal crashes, according to the National Highway Traffic Safety Administration.

LIGHTEN UP. The heavier your vehicle, the more fuel it requires - and the longer it takes to come to a stop. Every 100 pounds of needless cargo weight can cost you a half mile per gallon. Overloaded vehicles can also lead to tire failure.

DON'T BE IDLE. If you're waiting somewhere for more than a few minutes, turn off the engine. Idling burns more fuel than restarting. If 145 million vehicles idle five minutes per day, about 4 million gallons of gas are consumed without anyone going anywhere.