All About Realestate

By Lanard Perry

If you”re new to real estate you know first hand just how difficult it is for newbies to break into the business.

In 2005 the National Association of Realtors reported that agents who have been in the business for two years or less had an average income of only $12,850 a year. That”s not much money for the heard work they put in.

Now contrast that with long-time brokers with 26 or more years of experience – they had an average annual salary of $92,600. Now we”re talking.

But can newbie agents substantially increase their salaries in less than 26 years?

Absolutely, if they approach their career the same way that they approached getting licensed.

Specifically, they have to learn how to make money just like they had to learn how to get licensed.

Unfortunately, some agents stop learning after they get licensed thinking that the licensing course was enough to guarantee their success.

However, nothing could be further from the truth. If you want to be good at marketing you have to learn how to be a good marketer and if you want to be a good salesperson you have to learn how to sell.

Although everybody is not naturally born with these skills and abilities they can be learned with the right tools, strategies and resources.

Below are 3 real estate marketing techniques that can shorten your learning curve and propel you on your way to earning the kind of income that you dream of.

1. Real Estate Web Site Marketing
If you think that throwing up a web site constitutes web site marketing you”re wrong. All it really means is that you have a web site.

Have you read anything about web site marketing, search engine optimization, web site lead capturing tools, what constitutes good web site content, or why content is important to generating leads?

No? Then your web site is nothing more than window dressing. How can it generate leads and help you convert leads to paying customers if you don”t know it can do it for you.

Recommendation: Google “search engine optimization” and “real estate web site marketing” and read up on what you find – then apply what you learn.

This act alone will push you up the line from last place to 4th or 5th in line, as many agents won”t take the time to learn even basic information about web site marketing. Have you yet?

2. Sequential Autoresponders.
Using sequential autoresponders is a great technique for pushing your way up the line another place or two. Basically, autoresponders allow you to do just that, automatically respond to requests for information.

Sales and marketing is a process, not an event. So, instead of trying to sell your services to a prospect the very first time you meet them you should first seek to establish rapport with them, and there”s no better way to do that than via the use of a sequential autoresponder.

With an autoresponder you can send 1, 2, 3 30, 90 or more messages – or however many it takes to convert them to paying customers.

Recommendation: Get yourself an autoresponder and experience what it can do for you.

3. Real Estate Marketing System.
Get yourself not one, but several marketing systems to generate leads.

There are a couple of lead generating ebooks that offer great ideas for generating leads; including marketing expired listing systems, fsbos, absentee property owners, working exclusively with investors, newsletters, etc.

But the systems and their techniques should not be complicated, because the more complicated they are the less likely you are to consistently apply yourself to them.

A MoneyCNN.com article dated October 3, 2006 says that “During the boom”s peak from 2002 to 2004, the National Association of Realtors (NAR) saw memberships soar 26 percent. Today, over 1.2 million Americans call themselves Realtors.”

That”s a lot of competition and going to the office everyday is not enough. You need a competitive advantage and these 3 techniques can push you to the front of the line.

About The Author

Click http://www.farmingexpiredlistings.com to learn how to average 1 or more listings a week and http://www.real-estate-marketing-talk.com for more lead generating ideas.

By Richard Reichmann

When you make an offer to purchase a property, you will sign a purchase or purchase and sales agreement with the seller. This document will be the binding contract and agreement between you and the Seller and the provisions in that document will spell out certain events which must take place before your escrow can close.

Within the purchase agreement will be a provision for the scheduled date of closing. A date is normally filled in when the offer to purchase is made by the buyer. Once your offer is presented to the seller, the seller may choose to change this date before accepting your offer.

Both you and the seller will come up with a closing date which seems reasonable. The closing date should allow you enough time to apply for and obtain a mortgage, if you will be getting a loan to help finance your purchase, and the seller will choose a closing date which allows ample time to move out and find a new home or property.

The closing date which is agreed upon should also take into consideration such contingencies as property inspections, the title report review, and any special circumstances, such as one or more parties being out of town or out of the country, an estate or probate situation, or other complications which may involve legal assistance.

To set a reasonable closing date, both parties need to understand what their individual responsibilities are before closing can occur.

You and the seller should list the tasks you each must perform and then try to calculate a time limit for each of these tasks. The seller, for example, may find that there are liens or other encumbrances on the title of which he was not aware, and these clouds on the title will need to be cleared up before the title can be transferred. The property inspection might show up minor defects which the seller may be required to repair, or major defects might become evident, in which case you and the seller may need to come to an agreement as to who will pay for these repairs.

These types of events are not unexpected in a property purchase and should cause no delay in the closing, as long as they have been provided for ahead of time. Before setting the closing date, try to think of any situations which must take place before you go to closing.

The seller may request that the closing date be contingent upon the sale of his present home. This date may be rather arbitrary, but a tentative 30, 60 or 90 day closing date could be set and when the actual closing date can be set, then an addendum to your purchase contract can be drawn and signed by both you and the seller. In this case, you would want to be sure to notify your escrow or closing officer of any changes in the date for closing.

Keeping the escrow officer informed of exact dates is very important, as she will be prorating and calculating certain expenses and credits, such as interest, taxes, and insurance and these will be calculated right up until the day of closing.

The lender may have an important role in setting the closing date. Your loan may take longer than traditionally expected, perhaps you have additional items the lender needs to verify, or perhaps you are self-employed and the lender will require profit and loss statements and other documentation to document your financial profile. Perhaps the lender will require that certain repairs on the property take place before they will agree to fund the loan.

To avoid any unnecessary delay in closing by a lender, you might want to consider getting pre-qualified by a lender and asking them if they see anything unusual in your credit which could hold up your loan. If property repairs are required, you could ask that money be held in escrow for these repairs, rather than hold up the agreed upon closing date.

The closing agent may have a role in controlling the closing day. Check with the escrow officer to get an idea of how long it will take to issue the title reports and how long it will take to prepare the closing documents.

Schedule your closing as soon as possible in the transaction, as escrow officers often are busier on some days than others and you would want to be sure to reserve your time and day. When scheduling your closing with the title or escrow company, let them know that you want ample time to go over and review all the paperwork.

Oftentimes, buyers and sellers are rushed through this critical process, as the closing agent may have a busy schedule that day and these documents are all standard and commonplace to her. Closing agents may forget that each provision and each commitment listed in a document may be new to the party and will need to be explained carefully.

When an attorney is involved in the transaction, whether representing the Buyer or the seller, normally the attorney will explain each provision in detail. Keep in mind that the escrow officer or closing agent is a neutral third party only.

The title company cannot give legal advice or interpret documents for you. The closing officer can explain each item and review how the numbers were calculated, but for any legal opinions, you will want to consult with your attorney.

About The Author

Richard Reichmann is internationally known as a millionaire maker. He”s a leading consultant in real estate and internet marketing strategies that are profit proven.

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By Kris Koonar

Every home seller wishes to sell his home without much paper work or legal problems and for a good price. Selling your home requires clear visualization and a transparent plan of action. You can enhance the sale of your home by breaking the sale process into some easy steps so as to make the procedure more pleasurable.

. Understand your Buyers

Analyze the vicinity and the buyers who are interested in your home. Are they purchasing the homes to move up? This point is very important for marketing and designing as each buyers psychological needs differ considerably.

. Prepare yourself to sell your home

Selling is not effortless if your home is in a clutter. You have to really struggle hard to clear out and sell it for rip-off basement price. Try getting rid of all unwanted stuff and reduce the clutter around. This allows the buyer to visualize himself or herself in your home. So pack your personal belongings and then look at your house though a buyers perspective. Handle all the repairs and make your home more appealing; you can reduce your stress by seeking professional help.

. Dress your home

This is the most important phase of the selling process. If you find the interior of your home quite empty then try accommodating some plants like delicate ferns, spiky grey foliage and some cut flowers to support and showcase your emotions to the buyer. You can sooth the buyer sense by spraying a mixture of aromatic oils into the water or the air. Look further away from the normal staging and instead fill your home with furnishings and stage little vignettes like a board game or a tea setting. Draw attention to your homes best feature with a decorative portion or activity so that the buyers retain information about your home decor. Your goal to make the buyers think about your home after they have left can be met with such ideas.

. Budget concerns

Always purchase necessary items, as it will enhance your home and make a difference in your selling price. So spend on painting, repairs in the bathroom or updating the kitchen or the lighting fixtures etc, as these are the best way to enhance the sale value of your home. Sometimes by engaging professionals, you can really get a great deal and it would be worth that extra expense. Professionals work more speedily and often cost less than the day laborers.

. Exterior design

Select the right shades of paint as it can make an enormous difference. Look at other homes near your home and try complementing your paint shades; exterior shades can work wonders, while a wrong shade can put of a potential buyers urge. Colors generally tend to look darker exteriors and the entryways should beautifully blend with the exterior colors.

. Make showing a pleasing time for the buyers

When you are presenting your house to the buyer, it is wise to have someone with you. Always send kids and annoying pets out and turn on the lights even in the daytime as the buyers get the feel of warmth.

About The Author

You can Sell Your House Fast with absolutely no cost to you. http://www.asisnow.com will buy your home for cash Sell Your Home Fast Orlando or in 14 other major cities. Visit our website for more information.

By Kris Koonar

It hardly matters whether you own a condominium, manufactured home or a small family home, staging can always add attraction to it. It is one of the simplest ways to arrange your home in such a way that buyers imagine themselves staying there. Many times even the slightest cosmetic change can help you sell the home fast. Studies suggest that staging can increase the sale price of the home to be sold by seven to ten percent.

Spending a little on a simple fresh coat of paint can bring brilliant changes to the look of the house. Even a slight cosmetic change done to the house can help you sell your home very fast. Mostly buyers do not want to clean the house before settling down in the new house. They believe that the new house would already be clean and perfect to settle. A coat of neutral paint can quickly brighten the room and remove all the fingerprints that your kids might be responsible for. Besides, you may also opt for minor modifications like mending peeling paint or the drainage system of your house.

Generally, the interior of a house is connected with peoples emotions and it is also associated with the underlying physiological response to several design details like colors, textures, designs and furnishing. A house well presented with such things can be very effective in selling your home fast and getting the complete worth of the house. In fact, the emotions attached to the house determine the choice of home. People often believe that it is the price that mainly makes a difference in the choice of house, but unlike the common notion, it depends upon how a person feels while visiting a house.

Colors are considered to be one of the most important factors that brighten the house. The right kind of color combination makes a lot of difference, which can either attract or repel. Color certainly reflects the moods and emotions of people. So, as a seller you need to choose bright colors for interiors, so that it gets a lively ambience. The choice of colors also depends upon the class of people you want to attract. If you want to sell your house to a wealthy or highly educated class, you can opt for muted and complex colors. However, earthy colors tend to attract low-income groups or comparatively less educated people.

While staging your house, you can modify the color scheme according to different moods of the room. It helps the buyer to identify an attachment to the house, which can increase the chances of selling home fast. If you want to make rooms spacious, you can clear all the clutter. You can even increase the kitchen space by removing extra appliances like the dishwasher. You can fit in more clothes in the closet by selling or donating unused clothes.

Make sure that the lighting in the house is proper. If possible buy high voltage lamps and tubes to brighten up the ambience. Besides, it is important that all the rooms should have furniture. You can include a new set of cabinet hardware and update your kitchen or bathroom. It is one of the most inexpensive ways to attract the attention of potential buyers.

About The Author

You can Sell Your House Fast with absolutely no cost to you. http://www.asisnow.com will buy your home for cash Sell Your Home Fast Orlando or in 14 other major cities. Visit our website for more information.

By Kris Koonar

When a seller decides to sell his house without utilizing the services of a real estate broker, he considerably profits from doing away with the broker commission. Since you do not have to shell out the usual high price of a selling commission, you can manage to put a better price tag for your home. You must quote a price that cannot be refused by the prospective purchaser. The lesser you keep the price, there is a greater chance that is will sell fast. You would yet be able to profit and save in thousands, and quicker.

The steps that are necessary to sell your home or property without the services of a costly real estate agent are simpler than what most people think. However, it takes a little modest effort on the side of the seller. You will be doing all the things that real estate brokers generally do. The appearance of your home is extremely important when you want a fast and simple selling procedure. People interested in buying a house are drawn to dirt free, roomy and striking homes. Your aim should be to make an impact on every single one of the potential buyers. You must carry out a small amount of necessary repairs to make sure that your home is in the perfect selling condition.

. Check out your flooring and see if there is anything that needs to be done.
. Examine all your plumbing fixtures thoroughly; see that nothing leaks.
. Take a close look at the lighting fixtures and also check to see if the ventilation and heating systems are functioning properly.
. Check out every door and window in your house.
. See if the paint in the interior of your house is in good condition.
. Look at the exterior of your house and see if the exterior paint has worn off or needs another coat.
. Make sure that you are the drainage systems are functioning properly and are not clogged.
. Just go around your driveway and see if there are any cracks.
. Check out your outdoor watering systems and make sure they work.
. See to it that your roof is in good condition.
. Go to every corner of your home and see if there is anything that needs alteration or improvement.

Make sensible decorative enhancements to improve and boost your capability to sell the home.

. Make the front entrance to your home as attractive as you can.
. You could even think about flowers in the front yard for an unforgettable look.
. Get rid of any clutter that may probably take away the usual look of a room.
. Refurbish the bathrooms as well as the kitchen so that you can raise the value of your home.
. Ensure that all the potential buyers that are driving by can read the numbers of your address clearly.
. Make sure each electrical fixture is in proper working condition like the garage door, doorbell and lights of your home.

About The Author

You can Sell Your House Fast with absolutely no cost to you. http://www.asisnow.com will buy your home for cash Sell Your Home Fast Orlando or in 14 other major cities. Visit our website for more information.

By Steve Kroening

Owner financing can be very profitable, as long as you take steps to keep yourself safe throughout the process. I”d like to show you four ways to both protect your finances and make life a lot easier if you decide to owner-finance your property.

(1) Make sure you do a background check on any potential buyers. With all the new laws regarding sex offenders, you could easily find yourself in a bad situation if you sell to one and break the law in doing so. Background checks can also save you from any potential fraud or con games along the way. And, if your buyer runs a drug lab (such as methylamphetamine), the government could seize the house and cause all sorts of problems for you. It”s best to avoid these situations — and any others — with a simple background check.

You can find a multitude of background check companies on the Internet. Just enter “background check” in the search engine and you should find plenty that can help you. The average cost is $25 to $50, depending on how much information you want. And this simple step could definitely save you a lot more money down the road.

(2) Ask for references and check them. Make sure their job checks out. And character is important too. So call a few of the professional and personal contacts as well. You want to make sure the buyer is trustworthy.

(3) In addition to a background check, you must run a credit check. After all, you don”t want to require mortgage payments of someone who has a history of not paying bills. There”s no guarantee they”ll change their ways once they have to start paying you. You can get a credit check through any of the major credit organizations. These include Equifax, Experian, and TransUnion.

(4) Finally, establish in your contract specific limits on when you will allow pre-payments. If you allow prepayments any time, it makes the amortization very difficult (you can find out more about amortization, including how to build a table, at www.bankrate.com). So I suggest you allow pre-payments one time per year. It”s easiest if you limit it to the note”s anniversary. It will make your calculations much, much easier.

Once you”ve taken care to cover your bases, owner financing is a great way to sell your house faster and make more money on it. But you”ve got to do your homework. Otherwise, it could be a major headache.

About The Author

Steve Kroening writes for Success magazine and also publishes Wisdom”s Edge. You can get Biblical tips on health, finance, relationships, parenting, and success, delivered to your email inbox every week. Simply visit http://www.wisdomsedge.com and sign up for this free e-zine.

By Ki Gray

People always ask me if this is a good time to buy real estate. Or they ask me if now is a bad time to buy real estate. I have the same answer for both questions: I don”t know. More importantly, I don”t care.

Don”t get me wrong – if you”re buying a property and plan to flip it in a few months, then the current direction of the market is very relevant. But if you”re buying a house to live in its less important.

Ok wait, let me explain that. I”ve been in real estate a long time, and have made a decent amount of money buying and selling properties. But whether the market is going up or down, I continue to buy and sell properties. Regardless of whether the market is hot or cold, it”s going to change at some point in the future. A “hot” market will cool down. A “cool” market will heat up.

Sure, it would be helpful to know the exact time a market will turn. Indeed, there are a lot of people that say they know exactly when the market will turn. They”re all 100% sure, but no one agrees. Because it”s impossible to be “100% sure.” Simply knowing that the market will change in the future doesn”t give you a competitive advantage, anyway. It”s like saying it will rain at some point in the future – it”s true, but it doesn”t help you know when to bring an umbrella.

Lets look at an example. I have a friend in California. We talked about the fundamental problems with the California market, like lax regulation enforcement. He told me he was happy that he hadn”t purchased a specific property recently, because he knew the market was going to tank. So we talked about the property. It turns out that the property he almost purchased at the time was worth 350k. It eventually rose in value to 800k at the peak. Today it”s worth 740k. (Oops.)

My point is that knowing the market will eventually change is not as helpful as knowing when the market will change. In the last 20 years, the Austin real estate market has gone through many cycles. Simply knowing that there are more cycles in the future is not helpful. If you are buying a house to live in, its possible you”ll see many hot and cold cycles in the real estate market before you sell your home.

So what”s important? When I purchase a property I look at how the appreciation of the neighborhood compares to other neighborhoods in the same city. I”m not looking for a property that always appreciates. I”m looking for a property that does better than average in a slow market. This might mean it depreciates at a slower rate. I also want a neighborhood that appreciates at a greater rate than average when the market is hot. While its hard to find anything other than general appreciation rates for a city, a good place to start is a local realtor who knows the market well, and who can tell you how different neighborhoods have performed in the past.

Secondly, I look for properties in what I call “emerging areas.” In the past, I”ve seen the largest appreciation for properties that were not in stellar neighborhoods, but properties in “rougher” areas that were improving. Even if the market is currently cool these properties can be purchased relatively cheaply. And if you wait for the next hot cycle these areas might turn from transitional neighborhoods to the new “hot spot.”

While I can”t predict when a market will turn, I do look for different things that might affect a neighborhood. Is there a new strip mine moving into an area? It might be a good idea to avoid surrounding neighborhoods. On the other hand, there could be a new development that might increase properties. For instance, if you hear that an old chemical factory is about to be turned into a mixed-use development with cute little shops and expensive houses, it might be a good idea to look at surrounding neighborhoods.

In summary, it”s hard to predict the turns of the real estate market. But if you do your research on the property you are interested in and the comparative appreciation of your neighborhood, you can ride out the ebbs and flows of the market and come out ahead in the end.

About The Author

Ki Gray lives and works in Austin Texas. Working as a realtor in the Austin Texas Real Estate market. Escapeso Austin Texas Real Estate http://www.escapesomewhere.com/ is dedicated to providing its clients with honest and experienced advice when they are looking to purchase in the Austin market.

By Charles W. Moore

We shall examine some of the more common dumb things agents do. Put sold signs on houses that have gone under contract. In some states, this is illegal to do unless the house has closed. Have you ever had a contract fall through? If you haven”t, you probably are new in the business, lucky, or don”t do many transactions. As the listing agent, you are supposed to protect the seller and get the best offer. Putting sold on the signs usually stops any offers coming in. This is not good for the seller and can lead to them dropping the listing, or yes, filing suit. It is not good for the agent as it tells a potential buyer not to call you. Pretty dumb. Your sign is your billboard announcing your business. Sold sign says this is no longer your business. So, never put sold on a sign. Putting pending or sold on a magazine ad. Same logic as above. Advertise homes for sale to solicit business. People don”t call on pending or sold.

Being a buyer”s agent involves a fiduciary responsibility to protect your client. Agents do several dumb things as a buyer”s agent. One is they don”t stress the importance of the buyer getting an inspection from a licensed home inspector. The public thinks that an agent knows houses and is the same as an inspector. Wrong! It is also dumb to recommend a particular inspector. If they mess up the buyer can try to sue you for the recommendation. If the buyer doesn”t want an inspection, get it in writing, this protects you from a later suit saying you didn”t recommend one. Some buyers are liars!

When representing the seller one way to protect a seller is through a home warranty. You should sell the advantages to the seller of the protection during the Listing and a good selling feature for the buyer. If the seller fails to do this at time of listing, don”t be dumb, have them sign that you suggested it and they declined. As a buyer”s agent likewise to protect your client, encourage your buyer to ask the seller for one. If the seller refuses and the buyer doesn”t insist on one, get it in writing, or you are leaving yourself open to exposure, which is real dumb. If the seller in negotiations with a buyer agrees to pay for a warranty and you represent the seller, don”t be dumb and let the seller pay at closing and the buyer”s agent writes the warranty. If the seller agrees to pay, you need to be their advocate by protecting them during the duration of the listing until closing. Don”t be dumb and nice by letting the other agent provide it at closing.

Termite companies and Heating and Air Companies can be unethical and so can Agents. It is dumb to let a buyer”s agent pick their buddy to do inspections. Give them a choice of three to select from. If a problem is diagnosed, before the inspection, tell that company they are only to do the inspections and no repairs. This prevents the dumb mistake of letting them generate work for themselves for questionable repairs. If a huge repair is suggested it can be dumb to get one opinion. Being nice to fellow agents does not protect your client! Don”t be nice and dumb.

It can be dumb to suggest a mortgage company for the buyer. If they could have gotten a better deal somewhere else, they can blame you for it. Suggest places they can compare. Always encourage them to get prequalified before you show them any houses. It is dumb to waste your time with deadbeat buyers. Make sure they get a good faith estimate of financing costs. Let them drive their cars with you as a passenger or follow you to avoid lawsuits from accidents. Don”t be dumb. Protect yourself with an umbrella policy.

Cash buyers are a good thing for the buyer”s agent. Don”t be dumb and give away their bargaining position too early. In the initial offer, suggest they need financing. Offering $250,000 cash for a house of this price is dumb. Offer less and act like the buyer is coming in with 20% down.

Closing costs are a necessary thing. If you represent the buyer, try to get the seller to pay them for your buyer. It is better for your buyer to use their cash towards the down payment. Dumb if they don”t.

Many agents are dumb when it comes to contracts. When you make offers: get all initials and signatures of owners. Some investors have control but are not on title. Get good faith estimates for the sellers and the buyers. Get dates on all initials and changes. Write in the final acceptance date. Give small windows to respond to offers and counters. Get all expiration and extension dates in writing. Provide all written documentation as required for inspections. Reports, summaries and signed addendums. Failure to do so waives the right of the buyer. Very dumb to provide partial information.

When representing buyers make sure you are not dumb about contingency contracts. Put in a time frame to get first right of refusal to remove the contingency if another offer comes in. When removing contingency, provide contracts or mortgage info expediently or you may forfeit this important contingency. Dumb, and good for greedy lawyers and buyers to sue you.

About The Author

Charles W. Moore, has a Real Estate and Computer background. Bob Mandel a Real Estate Broker in South Carolina, was one of the first to offer discount brokerage. Together they built http://www.scflatfeemultiplelisting.com South Carolina”s premiere Flat Fee & Discount MLS Provider.

By Steve Kroening

The sinking housing market was recently big financial news. The trouble in the subprime lending arena has been around for several months. But now it”s not just the risky loans that are going bad. The rising interest rates are putting more and more people into financial trouble. What can you do if you”re one of the millions of people who needs to do something to avoid foreclosure?

One of the first things you need to do is talk to your bank or mortgage lender. Banks know foreclosures are bad for business. They would much rather get you into a different product than lose your business altogether. In fact, some of the big banks have joined forces with the American Bankers Association to prevent more foreclosures.

The banks also know they approved a ton of bad loans. They know they”re on the hook for millions of dollars worth of homes if these loans go belly up. So they”re looking for a way to save face. That doesn”t mean you”ll get out of your loan scot-free. But you might be able to make a deal with your lender.

Ask your lender if it”s willing to do a “work-out” deal. If so, you might be able to get the lender to reduce the loan amount (giving you a lower amount is typically far better than sending the property to auction) or they can help you refinance into a better loan you can afford.

If you need to refinance, and can”t afford any of the standard loans offered by your lender, look for one of these types of loans:

* Federal Housing Authority — An FHA loan is insured by the government, but offered by private mortgage companies. The FHA has taken action in recent days to make it easier for low- and middle-income homebuyers and owners to get into its loans. These loans fell out of favor when the subprime loans came into vogue. But now that subprime loans are on the outs, FHA loans are gaining popularity again. You can get an FHA loan with very little down. And you can even get an FHA adjustable rate mortgage, to keep your payments down. Make sure you shop around for the best rates, as each lender sets its own rates based on FHA rates.

* If you”re a veteran or the surviving spouse of a veteran (who died in connection with their service), make sure you check out Veterans” Affairs. VA loans are easy to get for veterans, even if they have poor or slow credit. And the rates can be competitive with many subprime loans.

* You also should check to see if your bank offers a Community Reinvestment Act (CRA) loan. When banks move into a new community, they”re required to offer loans to help the entire community. These CRA loans are available to low and moderate income earners. And they come with some of the best rates around right now.

Before you let your house go into foreclosure, make sure you look at all your options. It”s possible to find alternatives. But you”ve got to do some legwork to make it happen.

About The Author

Steve Kroening writes for Success magazine and also publishes Wisdom”s Edge. You can get Biblical tips on health, finance, relationships, parenting, and success, delivered to your email inbox every week. Simply visit http://www.wisdomsedge.com and sign up for this free e-zine.

By Ed Lathrop

I was watching a market report station on TV. The headline for the upcoming real estate news segment was, the real estate market has crashed! The bubble has burst! What”s next?

What had these people in such a tizzy? The reporter stated, “housing starts are down, way down. Only a year ago, housing starts were over 1.8 million. Now, the latest number is hovering around 1.4 million and the forecasters are looking for the drop to continue, precipitously for another 11/2 to 2 years.”

Well, I guess this reporter may have a point. Though you may think forecasts don”t always hold too much water, it is hard to argue with a 25% downturn, and 25% is what housing starts are down over the last year. One would have to conclude the evidence is clear, the real estate market has crashed; the bubble has burst!

What are housing starts and what do they mean to the economy?

Basically, the term “housing start” is used when the permits to build a house are in place. In other words, the project of building a house has started.

When the economy is strong, more houses are being built in order to fill the need that is created when people are looking to buy new houses. A strong housing start number means people are able and willing to spend money on real estate.

A strong housing start number also means the banking industry is sound because they have enough money to lend people to buy these houses. It also means interest rates are reasonable because if borrowing money were expensive, as it is when interest rates are high, few people would qualify for mortgages.

Of course, housing start numbers can”t always be up. Housing start numbers start to slide when:

Interest rates go up. This makes the effective price of a house higher and takes the house out of the affordable range of many potential buyers. And/or

The unemployment rate goes up. If more people are unemployed fewer will be in the market to buy a home. Also, if more people fear they may become unemployed, a common sentiment when unemployment is high, these people will not commit to buying a house. And/or

Prices for building materials rise. This will drive the price of houses up to a point where it will cause them to become too expensive for a lot of potential buyers. And/or

Consumer sentiment is down. The general populace has the impression that something bad economically has happened, or is about to happen and therefore, not many people are comfortable investing their money in a high price item like a house.

Which of these things has happened this time?

Let”s take a look at the economic numbers and see what has gone awry that would cause housing starts to plummet.

Interest rates? Interest rates are looking good right now. While they are not at an all time low, they are not very high either. Certainly, if interest rates went to 8% it could cause a slow down, but not a crash. Anyway, right now interest rates for a 30-year fixed mortgage are about 6.5 %. Not bad at all!

Unemployment? Actually, we haven”t had a severe unemployment problem since the early 80”s. At this time the unemployment rate is 4.5%. Historically speaking this is a very good number. We”ve been fortunate, the unemployment rate hasn”t been over 6% since 1994 and during the last 13 years, 4.5% falls in the lower middle part of the range.

Building material prices? The price of copper and lumber are high, but these prices haven”t shot up all of a sudden. In fact, they”ve been stable over the last few years.

Consumer Sentiment? No problem here. Consumer sentiment is at 90.5. This is a very good number for consumer sentiment.

Then, what”s wrong?

It looks like there is no real clear reason the housing starts number took a hit last month, we”ll just have to wait, but consider this; the previous month”s 1.8 million was phenomenal, but the 1.4 million it dropped to, isn”t bad either.

So, let”s hang on. All this “crash” has given us so far is a dynamic headline. Could it be foreclosures are up due to the large amounts of negative amortization mortgages that lenders have sold in the past several years and this is putting a drag on the housing sector? Maybe.

Could it be builders perceive the “guest worker program” bill going down to defeat in congress will be a problem? After all, many construction companies have made a lot of money over the past several years on the backs of illegal immigrants. Without them, these companies would have to charge more for their finished product and they may feel there will not be a market for these higher priced houses.

It is kind of funny how housing starts fell just as momentum was building in the “grass roots” to deport all the illegals. Maybe, there”s something to that. Then again, maybe it”s all just much ado about nothing.

About The Author

Ed Lathrop is a successful Real Estate investor. He has developed EzCalculator, a Mortgage, Student Loan, Credit Card and ROI Calculator. The Mortgage Calculator includes the famous “How to Make $100,000 on Your Mortgage” calculator. Come visit this free site at http://www.ezcalculator.com