Archive for January, 2011
Jan
31
Fsbo – Property for Sale by Owner
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FSBO – For sale by Owners Property for sale by Owners – There are some circumstances that could spur people to come up with the decision to sell their homes. People find themselves in situations such as financial difficulties, extreme debt, divorce/separation or any other major turn in life that could make them think of selling their properties. In some cases, homeowners opt to take this action due to a repossession order. This situation can make them realize that it is necessary to free up the capital in their homes in order to pay their creditors back and get themselves out of difficulty before the courts act against them.
As is common practice nowadays homeowners usually employ the services of a real estate agent to sell their propery. But more and more people are looking at selling their homes directly themselves through FSBO sites. Selling properties through For Sale By Owners websites(FSBO) is now becoming a growing trend and is increasing in popularity. In recent years, the percentage of home sales via FSBO in the United States alone is around 12-15% while in Canada, it is higher at 20-25%. Home selling via FSBO is also beginning to gather momentum in the United Kingdom as it reaches the 10% mark of overall property sales..
Today, almost 75% of property buyers globally begin their search on FSBO websites. This increases the potential of selling properties faster without having to deal with realtors or estate agents abroad. Below are some of the benefits of selling your home on your own.
Benefts of selling your home through FSBO Huge Savings on Commission FSBO is a good way to save a huge amount of money as you can avoid the expensive real estate sales commissions. This saving can help you in price negotiation with potential buyers. The disadvantage of FSBO in this regard, as shown by surveys, is that some buyers feel that homes being sold by owners might be overpriced because they do not know the market. However this is a changing attitude as more people become aware of the advantages of selling privately.
Selling can be faster A buyer might not pay the asking price when they know you are using an agent agent because they realise that in some cases there could be a 5% commission involved which they could negotiate off the price of the property if dealing directly with the owner. Hence, they will naturally offer less. The choice is yours between accepting less, losing more equity or waiting for a buyer to pay the inflated price. However, none of these choices are desirable. Always remember that an overpriced home will stay on the market for a longer period of time and what’s worse is that buyers will think there is something wrong with the house and that is why it is still on sale.
Greater market immunity Selling by owner makes financial and practical sense in both buyers’ and sellers’ markets. Lots of similar homes are being sold and the competition is tight. FSBO gives a competitive advantage to that homeowner because they can afford to be more price-competitive than their neighbor who is listed with a real estate agent. The buyer will normally prefer the comparable property which is being offered for a lower cost. On the other hand, buyers’ demand for homes outstrips the supply. Therefore, it is not smart to pay a commission and sacrifice any portion of your equity. FSBO will enable you to retain the maximum amount of your hard-earned equity.
Convenience You are in control when you sell on your own property. You can set the schedule of your own appointments with potential buyers. You don’t have to rush into making your home spotless and clean just in case an agent decides to bring a client that day to show the property. With FSBO, you are completely aware when people are coming for a visit. Therefore, you can make the necessary preparations.
Less stress and frustration This will make you less stressed because you are in control and could act accordingly based on your schedule. You will also know how much effort you should give in selling your own home. Therefore, you will not be frustrated that the agent you contacted is not doing enough work.
Conveyancing Many agents argue that they offer the liaison between the buyer and seller and know the conveyancing route especially as in the UK the new HIPS (Home Information Packs) packages have been introduced. However, do not be fooled there are many independent HIPS agents that can offer you the same services for a set fee.
Best results Since you are the one personally handling potential buyers, you would easily know who are really interested. Being the owner of the home, you are the one who is very much aware of its features. Therefore, you know how to explain it best.
Disadvantages of selling your home through FSBO On the contrary, a homeowner should know that there is no perfect method in selling a home. There are also risks in FSBO.
One disadvantage is that a homeowner might sell with a price that’s too low. This, because the asking price is usually below market value. The aim of FSBOs is to attract buyers who are after bargains and an FSBO buyer usually thinks that he can negotiate for a much lower price because he is aware that there are no agents fees involved in the sales.
One other disadvantage of selling without an agent is that many direct sale transactions never close. Some of these deals are aborted because the buyers aren’t properly qualified for financing before they enter into a purchase contract as opposed to this, a good real estate agent will make sure that you won’t accept an offer from a buyer who isn’t qualified. If you know how to call for assistance especially when it is appropriate to do so, prequalification and pre-approval can be accomplished quickly. One reason why many FSBO deals have not become successful is that no experienced person is working to move the transaction along and resolve problems when they arise of which, negotiations are often involved.
Summary Given these facts, property for sale by owners (FSBO) is considered to be an easier option to sell a home as there is no real secret because the truth is that homes sell themselves. Present your home attractively, give your client a fair price, be consistent with your market, advertise it and then expect offers. It only takes enough knowledge, patience and a little bit of business acumen.
View our Property for sale by Owners page filled with properties for sale directly from owners across 60 countries worldwide.
Quick Property Sale
Jan
30
DETAILS: Bought a large 3800 sq. ft commercial building in 2000 and have run a gift,stationary,craft & office supplies business inside it. The business was gang busters in sales…until two years ago. Now sales & the market are soft. I barely make enough to pay my mortgage. I virtually work for free. Have tried to sell it–lowering my price again and again and realtor for sale sign in side window by busy highway. No bites. I’ve used Craigslist–no avail.
So now I am stuck with a nice condition but large building, a business that is boring and barely breaks even. Can’t find renters for a building this large. Can’t afford to divide it in half. Savings going down the drain to pay building taxes. Sale of my inventory would not allow me to buy enough for new inventory–building is too large.
ARE YOU CREATIVE?? WHAT can I do??
I’m not headed for bankruptcy or foreclosure. I pay my mortgage every month. I just work for free–make no profit. And it’s boring, and I’m totally tied down, and make no extra money. Can’t afford to close the business down, as I’d still have a large mortgage to pay. Not fun.
Sell and Rent Back
Jan
29
Easy to get a Commercial Mortgage in the UK with UK Financials LTD
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Easy to get a Commercial Mortgage in the UK with UK Financials LTD
UK Financials Ltd provides vital capital for predominantly the small and medium sized business. Each case can be considered against criteria other than audited accounts and detailed projections – information that is increasingly costly and less relevant for small and medium sized businesses.
Our process is geared towards being simple, quick and flexible. Our mortgage products are available with terms up to 30 years, generally up to 79% LTV (for transactions up to £500k). 100% advances can be made with additional security (either residential or commercial property) from the borrower. Early repayment charges apply.
Commercial Lifeline is independent Commercial Mortgage brokers saving you money on your Commercial Mortgage and Bridging Finance through lender choice.
Get our free Commercial Mortgage guides by visiting our Commercial Mortgage Guide page.
As is the case when applying for any mortgage, be it a residential or a commercial mortgage, the better your credit and the better the collateral, the easier the process becomes. But that doesn’t mean that if your credit is less than perfect, or you want to purchase commercial property in a less then desirable part of the city, that you are automatically locked out of getting the money you need. It just means that you need a "friend" in the business.
When you are applying for a commercial mortgage your potential lender will consider your credit rating, your business’ balance sheet, the purpose of the loan, and the type and location of the proposed property as well as that property’s appraised value. If every one of these items do not fall within the lender’s acceptable guidelines then you may get a "no thank you" instead of a pile of money. Considering the amount of paperwork that you may have to complete in order to get a decision, be it a positive or negative one, you want to make sure that you have the best chances of securing that loan before you even start. And that is where having a "friend" in the commercial mortgage business comes into play. If you were going duck hunting, and only had one shell with you, then you’d better be a pretty good shot. On top of that, you’d better not be planning to serve roast duck to a crowd because you’re only coming home with one duck if any. Oddly enough, the same holds true when you are applying for a commercial mortgage.
Different lenders have different requirements for granting an approval. Since your goal is to make getting a commercial mortgage loan approval as easy as possible, then you need to carry more than one shell with you
We provide term finance on properties including:
· Farms
· Pubs, restaurants, take-away units
· Shops and shops with living accommodation
· Hotels, guest houses, B&Bs, holiday lets
· Industrial units, factories, offices, warehouses
UK Financials Ltd represents you and submits your commercial mortgage loan application to many lenders. Your "one shell" turns into a whole case of ammo as your application makes it across the desk of potentially hundreds of lenders. The odds are greatly in your favor that you are going to get an approval from at least one lender and, the truth is, many borrowers end up with several interested lenders and can actually negotiate the terms and conditions which suit them exactly.
Since your commercial mortgage loan broker doesn’t earn their fee unless you get approved, they work with you to make getting a commercial mortgage loan as easy as possible. And, since the broker gets paid by the lender and not you, there is absolutely no reason not to engage their services. Even if you had access to the same quantity of lenders as a broker does, you would have to fill out a separate commercial mortgage application and submit it to each lender. That process alone would take you more time than it takes to drive across the continent. A broker uses the same application and sends it to all of their lenders. That fact alone makes it easier to get a commercial mortgage than doing it yourself does. Even better is the fact that the broker already knows the terms and conditions that each of their lenders utilize. The broker will only send your application to those lenders whose qualifications you already meet.
Ravi Mishra is a Marketing Manager of UK Financials Ltd; expertise in searching and researching the best and competitive deal for clients. The team of expert arranges the loan for you at low cost. for more information about us visit :http://www.ukfinancialsltd.co.uk.
UK Financials Ltd,
501, International House,
223 Regent Street, London – W1B 2QD
0203 051 4841
Sell and Rent Back
Jan
27
On a California Commercial Lease, must we pay interest on the refunded security deposit?
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When a tenant moves out and everything is finished, is interest owed on the security deposit? I have searched the ‘net but cannot find the answer!
Passive Income
Jan
26
Buying Commercial Properties in Delhi
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Are you planning to buy some commercial properties in India? The first question that comes to your mind must be “where in India should I buy?” There can be two reasons for your buying decision, it can be either for investment purposes or you may be planning to use that property yourself for any business purposes.
Depending on the reason behind your decision for buying commercial property, you must now be thinking about deciding the city where you can buy that property. Though all or most parts of India have seen a tremendous growth in the real estate sector, some cities are better, investment wise and some are good if you are planning to start your own business. But one Indian city that scores ahead of all cities is New Delhi, the capital of India. No matter whether you are buying the commercial property for investment purposes or for personal use, New Delhi is one city where you can get it all.
Talking in terms of buying the commercial property for the sole purpose of investment and benefiting from the appreciation in property prices, Delhi is the leader. Though all the major Indian cities have seen an appreciation in the property prices, but New Delhi, has experienced the maximum rise in property prices. Property prices in and around New Delhi have increased by up to 5 times within a few years. It’s not that the property prices in New Delhi have suddenly seen a rise.
Prices of property whether it be residential, commercial or industrial have been rising in New Delhi over the last few years. The returns on the investment on the capital value of the property are among the highest in the world, approximately 10 to 15%! And with the industry expanding at 30% annually, who would want to miss the opportunity?
And the reason behind choosing Delhi for buying the commercial property for your own business purposes is the fact that being the capital of worlds largest democracy, Delhi has always attracted people from all walks of life. And with Delhi being the host of Commonwealth Games to be held in 2010, considerable investments are being made by the public sector to improve the overall infrastructure.
With a huge list of commercial properties for sale in Delhi,Farmsandvillas is your one stop online source for buying, renting or selling commercial properties in Delhi.
Quick Property Sale
Jan
25
Please could someone define ‘net yield’ and give an example of how to work this out?
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Jan
24
I am looking for a mortgage on a home that is currently residential, but zoned commercial/mixed – the house would remain residential – I need to find a company that can handle that kind of mortgage.
Real Estate Professionals
Jan
23
Attributes and Advantages of a Commercial Mortgage Loan
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A commercial mortgage is a type of loan which is taken from a financial institution by using property as collateral. This loan is available only for business purposes. The borrower needs to be a business partnership, incorporated business, or a limited company. In case of default in loan repayments, lenders can seize the collateral to recover the loan.
Uses of Commercial Mortgage Loans
-For purchasing the premises to conduct business.
-For the extension of existing premises.
-For making residential and commercial investment.
-For developing property in other manners.
How to Qualify
To get a commercial mortgage loan in the UK, the borrower needs to fulfill some pre-defined qualifications related to:
-the borrower’s company credit history
-income resources
-the worthiness of the guarantor
Commercial Mortgage Loan Versus Other Loans
In the UK, commercial mortgage loans are more popular as compared to other types of loan due to their certain advantages. These include:
-In a commercial mortgage loan, the borrower can have the full ownership of the loan as the lender can only claim an interest return on the mortgage. In no way, the lender can have a share of the percentage of ownership.
-On this type of loan, the interest payments are tax deductible. As the interest payment can be made with pre-tax funds, the borrower can obtain a tax break, if need be.
-With a commercial mortgage loan, it is possible to have a smoother cash flow as it comes with a very reasonable repayment plan along with some lower up-front payment options which make the capital amount accessible to the borrower. The borrower can repay on a biweekly, monthly, quarterly or annual basis as per the agreement.
-A Commercial mortgage loan makes it possible for the borrower to manage their finances efficiently.
What You Must Do
Looking at all these advantages, it seems a good idea to avail a commercial mortgage loan. But, before doing so don’t forget that you need to repay the loan within the given time. Failing to do so can lead to the seizure of your property by the lender.
In case you wish to secure a commercial mortgage loan in the UK for your business, the first thing that you might need is an appropriate business strategy and a detailed plan of your business finances.
However, as the interest rates for commercial mortgages are usually higher as compared to residential mortgages, one need to study and compare various lending institutions before applying for the loan, so as to get a good deal.
Repossession
Jan
22
Office Building Commercial Mortgage Loan
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An office building property is one that has multiple tenants where the primary purpose is to provide a workplace and working environment primarily for administrative and managerial workers. An office building can accommodate as little as one tenant or multiple tenants depending upon the size and building layout. The most common example of an office building would be a property with multiple floors and multiple tenants.
The number and type of tenants in the property can influence how these properties are underwritten. A property with multiple tenants with a long history of occupancy and sufficient remaining lease terms are generally considered a more favorable property than one with a single tenant. An exception to this however would be a single tenant property with a credit rated tenant. A credit rated tenant is generally a publicly traded company that has sufficient credit ratings on their publicly traded debt.
Structure:
Office building commercial mortgage loans are generally written with 5, 7, 10, 25 and 30 year terms with or without balloons. In general for a purchase a borrower will be expected to put down a minimum of 20% plus closing costs. We do offer office building commercial loans with as little as 10% down dependent upon the borrower occupying sufficient space in the building as a commercial tenant.
Paperwork:For this type of loan expect to provide full documentation on the property to include the income and expense statements or property tax returns and property rent roll. If the loan is a refinance you would be expected to provide any available property third party work such as appraisals, environmental reports, title work, or copies of notes.
This type of commercial mortgage loan can be taken in the name of the individual or the non person entity such as a corporation however the borrower or individuals that have ownership in the holding company would also be expected to personal guarantee the loan. As such anyone that is personally guaranteeing the commercial mortgage loan would also be expected to provide personal tax returns, personal financial statements, and have eligible credit. If the loan size and property qualify it may be possible to do the commercial mortgage loan non recourse with simply means that the borrowers do not have to personally guarantee the loan.
Fees
The fees associated with the transaction will include the costs of reports such as appraisals, title work, environmental reports if necessary, and other typical closing costs by http://www.pro-bargainhunter.com.
Quick Property Sale
Jan
21
A. It provides competent, thorough inspection reports to assist the client in making a buy
or no-buy decision.
B. It provides the client with a positive inspection report, omitting any negative findings.
C. It provides the real estate sales industry with a professional inspection service that will
help them sell property to their customers.
D. It’s a trusted source of information on homes and commercial properties.
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