One of the most frustrating things a REALTOR has to put up with in the current market is all of the whining, complaining, and smear campaigns preaching the end of the housing market as we know it. Right now, the media is dead set on the idea that our strong real estate market is crashing down around us. As home buyers and sellers are inundated with this negative publicity, they are slowly beginning to believe real estate is in a downhill spiral. The reality is… well, perception is reality, and whatever consumers believe about real estate is likely to have consequences.

Currently, the real estate market is an example of how “perception as reality” drives the real estate market. What is specifically frustrating as a REALTOR is that numbers can be made to say anything – while nationally overall sales are down when compared to the past few years, the local real estate market is still going strong. In fact, if you were to leave out the past 4-5 years (which saw increasing gains in real estate sales) and compare 2007 to every prior year, you would see that homeowners are still receiving a pretty high rate or return on their investments. Unfortunately, no one wants to talk about this fact, since the overwhelming amount of negative publicity has convinced people that there’s nothing good about real estate right now. However, in smaller market (Rolla, Missouri for instance), a shift in market conditions is much more gradual, so the highs and lows of real estate are much less extreme.

The concept of “curb appeal” also demonstrates how real estate personifies perception as reality. Multiple times, I have been preparing to show a client a house when they were turned off by the outward appearance. Before we even pulled into the driveway, the client told me not to bother stopping. Despite the many hours and countless dollars the homeowner may have spent remodeling the home, the outdated siding or unkempt shrubbery meant the buyer would never see more than the less-than-perfect exterior. If people are unhappy with a home’s curb appeal, their assumption is that the inside of the house must not be to their liking either.

Similarly, buyers perceive a home’s cleanliness as vitally important. If clothes and toys litter the floor and dirty dishes are piled in the sink, the potential buyer is likely to assume there are other “hidden” issues with the home. The assumption is that a homeowner who doesn’t take pride in the daily tasks of keeping a house clean, they are probably neglecting the larger issues as well. Buyers aren’t interested in whether or not you were on vacation until late last night or that your 4-year-old has been sick for a week. Instead, buyers believe that the condition of the home is a reflection of the homeowner. Whether or not that is true, in real estate, perception is reality.

Now, you’re likely to continue to hear gloom and doom media coverage regarding the national real estate market, but remember that perception is reality. In the Midwest, the sky is not falling; believe it or not, people are still regularly buying and selling homes. Whether the “state of the economy” is on a downswing or an upswing, there will always be plenty of buyers out looking for their dream home – and willing to purchase one! Yes, there will be ups and downs, but it is never as good or as bad as it seems at any given point. While perception may seem like reality in real estate, your perception is not always fact.

As hard as it may seem, home sellers have options that can result in a quick sale without losing money.

It is no secret that this is one of the worst times in history to be a home seller. Just ask anyone who has had their house on the market over the last few months. The bad news is that it doesn’t look like it’s getting any better soon and it may get worse, according to economic pundits. So, is there any good news for home sellers? As dire as the housing market looks, home sellers have options that can result in a home sale with money in their pockets.

No, there are no magic waves of the wand that will make your house sell for top dollar in a short time. Nor are there any secrets that a seller can discover that will make his or her house sell before all the others in the neighborhood for the price that they want. But there are some things that a seller can do if selling is a must.

The one strategy that always works and tends to sting a bit and most home sellers recoil at the mention of it, but it is a fact of life and every single real estate professional will back me up on this – the only reason a home does not sell is because it is overpriced. Period. Granite counter tops, stainless steel appliances, and that cool media room that you built won’t matter beans if your home is selling for more than others in the area. If you want to sell your home, price it below your competition.

Location, location, location has been supplanted by price, price, price. With so many fine communities and school systems in just about every locale, home buyers are looking for maximum return on their purchase more than location and they are negotiating hard. Fueled by the news media’s take on the status of the nation’s housing market, espousing the dire straits of sellers and the bargains that can be had, buyers are making low offers and demanding seller concessions. And, oftentimes, they are getting what they want, leaving some sellers bitter and poorer.

Although, in the past, seller incentives were used and worked fairly well to effect a sale in this tough market, their effectiveness has waned because just about every seller is doing that and buyers are too educated to let incentives command a higher price. The best thing to do is just reduce the price of your home and forget the incentives. Buyers want to see real dollar savings. They are comparing your home to dozens and sometimes hundreds of other homes that they are qualified to buy. Your lower price will get the sale, not the flat panel HD TV that you’re willing to throw in.

When there are few buyers in the market, as we are experiencing now, home sellers need to concentrate on three key factors in order to stand out from the crowd. The first is the price, as has been harped upon above, but it cannot be emphasized more. If your home is not priced lower than comparable properties around you, then your home will linger on the market along with those comparables.

The second strategy for selling your home is to hire a competent real estate agent who is a marketing expert and is internet savvy. Up to 90% of home buyers now search the internet for real estate information at sites such as Realtor.com, Homes.com, and thousands of private real estate sites from around the country. If your home is not marketed all over the web, you are losing out big time. The internet and email has become the way most people prefer to communicate today when it comes to buying or selling a home. Make sure your agent knows how to promote your home online effectively.

The third method that will accelerate a home sale is to offer the buyer’s agent, the real estate agent who brings a buyer to show your home, one percent more commission than what other sellers are offering. A higher agent commission will make the buyer’s agent do the promoting and selling for you. He or she has a significant monetary incentive to showcase your homes over others that their buyer clients are also interested in. This is a powerful way to get both your agent and the dozens of other agents who have buyers to promote and market your property.

The bottom line is that times are hard and there are no easy and quick ways to sell a home today without some pain. If you don’t have to sell, don’t. If you do have to sell, you need to be realistic and understand the market and the habits of today’s home buyers and demands by mortgage companies. Like it or not, if you want to sell your home, you need to price it where the market tells you. And remember, buyers are the market.

Till Next Time,

Bernie Rosellen, Auctioneer

In the current real estate market, the ideal of a cooperative assignment is becoming more and more popular. In such an arrangement, a middle man comes in to affect what the home seller could not himself. Very often, it is used when a middleman gets a seller to agree to a lease purchase agreement and places a tenant buyer.

If there are serious prospective buyers for a property, then the owner has no need for a Cooperative Assignment process, but if not, then such a process may offer them a tolerable alternative to continuing to lose money. The vital component for the seller is that the property has a fixed mortgage rate, as it is much more difficult to lease out property when the monthly payment is subject to change.

Once a distressed home seller is found that is willing to accept a lease option that covers the PITI (principle, interest, taxes and insurance), thereby securing the seller’s financial position, the person organizing the Cooperative Assignment then tracks down an appropriate renter that is looking to purchase a property through a lease option. The pool of candidates is much larger than those that qualify to buy the home outright, especially in the current climate where the bank’s lending standards have significantly tightened. The great thing about a lease option for the buyer is simply that they get to live in the prospective home for a number of years prior to actually buying it, a number of years in which they can improve their financial position and be prepared to purchase once the option becomes due.

For the person organizing the Cooperative Assignment, most of the fees for the service are collected from the renter/buyers. Further, if the renter/buyers need some help with the upfront fees, this can be lent at a high rate of interest by the person organizing the Cooperative Assignment. The exact mechanics of the process, the fees charged, and the profit made depends entirely on how the organizer chooses to organize the arrangements. In some cases the organizer may serve as a fee-based third party consultant, while in other cases the organizer may become a principal in the arrangement organizing the entire matter as a “Sandwich Lease Option” (where the organizer serves as the official leaser with control of the lease option and then subleases the unit to the renters). The number of ways that a Cooperative Assignment can be organized is solely limited by the organizer’s imagination and the willingness of the other principals to go along with the proposed agreement.

Despite the hurricanes in 2004, Florida real estate was on fire. Pre-construction developments, commercial buildings, and home constructions dotted the coast. The lenders have a field day handing out mortgages to interested investors rushing to buy properties. Even the hurricane threat and the stigma of being a hurricane country did not stop investors of Florida real estate from backing out. What’s surprising is that after every hurricane, new rebuilding projects seem to rise up from wave-washed lands.

Then Katrina came in 2005 and wiped almost everything out. Almost everybody expected the collapse of the Florida real estate bubble. But no, the Florida real estate developers faced the challenge of rebuilding the cities and coastal areas. The result? Before the year ended, Florida real estate was back and stronger than ever. It was as if Katrina never came, and healthy business backlog sustained the finance and real estate blocks making them even more active than before. The only problem developers expect to have other than the rising cost of construction is the source of their skilled laborers. Now, this is not what you would call a dead industry, is it?

It’s a positive thing for Florida real estate that developers took the hurricane threat and turned it into a profitable venture. 2006 saw that other than coastal and beach front developments; developers started to develop properties within the cities. An example is the ongoing downtown Miami pre-construction trend that is touted to be a new Manhattan. Developers are also busy with many top priority projects certain to keep the state on the top of real estate choices as well to attract new businesses. Town centers were built in Palm Coasts and Orange City, while extensive “Gateway” complexes were started in Daytona Beach and Port Orange.

Other developments in Florida real estate include the building and development of properties in higher areas like the cliffs. Aside from the sea and beach view, these new properties also offer another feature which coastal units cannot match: elevation. Studies show that the high prices of real estate on the coast and hurricane scare shifted the demand and need towards inland areas that has higher locations, which are scarce on Florida coast.The developers saw a market for more elevated properties in the light of the recent hurricanes. People are getting interested in procuring higher level real estate as a precaution against typhoons and floods caused by hurricanes. The development of an experimental property called Owls’ Head is touted as a test for the higher elevation market. From this vantage point, I think Florida real estate braved the waves and came out on top.

It is difficult to understand the tricks and trends of Houston real estate deals. For this reason, when clients contemplate Houston real estate purchase, it is advisable to work along with real estate companies or brokers who are equipped to find affordable deals that fit in an individual’s budget. Real estate encompasses commercial and residential property. Certain residential real estate purchases are made keeping in mind, their revenue generation potential. As such, it gets complicating for a layman to comprehend options, calculations, and price considerations of real estate.

Houston real estate companies could be listed firms with multiple employees. Individuals may also choose to work on their own as independent agents or brokers. In case of firms, employees may be likely to receive a regular salary. Their actual source of income is proportionately related to the number of successful deals they are able to close. Houston real estate companies inform prospective clients well in advance about their service charges, terms, and conditions. A large number of real estate agents have regular jobs elsewhere and this business is their secondary source of income. Other individuals treat their real estate jobs as part time options.

Houston real estate companies undertake most dealings pertaining to property. This includes, lease, rentals, sale purchase and appraisals. Real estate companies offer all of these services at varying service charges. Income for real estate companies is entirely dependant upon luck and conversion rate of deals. Since this business is dependent upon local factors, the price of adjacent neighborhoods, inflation, and global trends, the business is considered highly volatile.

Most Houston real estate companies provide special listings regarding types of property. Companies often offer online information that is easy to access. When deciding to join a Houston real estate company, interested individuals may enroll with a real estate school that provides certified courses. People who do not opt for real estate education may also start practicing with a reputed company or agent.

The “Pecan Street Festival” has been a part of Austin for 31 years. The festival hosts over 250 arts and crafts venders, musical and performing artists. There are also art classes, dance classes, a scholarship competition, a petting zoo and a carnival.

The Pecan Street festival is scheduled for Saturday, May 2nd and Sunday, May 3rd. All the fun starts at 11:00 am each day and runs until 10:00 pm on Saturday and 8:00 pm on Sunday.

The festival will have five stages with some of the most eclectic performances around. Tommy Tutone is scheduled to open the festival on Saturday night.

The Pecan Street Festival is a bi-annual event. The first festival is in the spring, and then there is another festival held on September 26th and 27th. Both festivals bring an estimated $43 million to the Austin economy.

The shows benefit local charities and is the primary fund raiser for the Old Pecan Street Association; an organization established to preserve 6th street.

When the street were first laid out for Austin the north-south streets were given the names of Texas rivers in the order in which they appeared on the Texas map; the east-west streets were given names of trees. Later these streets were replaced with numbers. This is how Pecan Street became 6th street.

Austin is known as being different and “weird” and this festival is just as diverse and weird as Austin. All kinds of people from all over the region and country flock to this festival. The admission is free and everyone is welcome.

The festival is located on 6th street, which is also the heart of live music and is why Austin is known as the “Live music capital of the world.”

6th street is lined with historical houses and commercial buildings that were built as far back as the late 1800′s. Many of the old buildings now house numerous bars and host many live music venues, art galleries and restaurants and cafe’s. Many are landmarks and have interesting history behind them. 6th street is a very beautiful street and has many pecan trees lining the road on both sides. Many people flock to the famous street to listen to live music and see bands or just to say they’ve been to 6th street!

The Pecan Street Festival will also have many other venues besides music and arts and crafts. Austinites love to eat, and there will be plenty of food booths to choose from. Everything from “fair” food like turkey legs and funnel cakes to hot dogs and hamburgers, they’ve even added something new this year, there will be healthy food available for those who are conscious of their diet and health.

Another famous treat is ice cream. There will be venders serving various flavors of ice cream, so be sure to take time to sample some of your favorite flavors and keep cool.

If you live in Austin or are just traveling through, it is worth your while to stop by the Pecan Street festival. It is an “Austin” thing and is one way to keep Austin weird.

By and large, year 2009 was not a good one for real estate sector. There were price declines, financial crunch, foreclosures, mortgage defaults, short sales, lots of properties lying vacant in the markets that were once considered quite strong. So what do we expect after a couple of tumultuous years (property markets have been in tank throughout 2008 as well).

If truth be told, real estate is not that attractive in terms of investment opportunities and short term yields at this point in time, since the recovery process will take some time. However, the downfall of previously strong property markets doesn’t mean there’s no place left to invest in property. As the saying goes “somebody’s loss is somebody’s gain” (for real estate, we can change it to “some property market’s loss is some other real estate market’s gain). Take Abu Dhabi for example, as it will be getting the benefit of Dubai’s property market downfall.

Similarly, we can expect some emerging markets to get hold of the investor’s attention, as the year 2010 approaches.

Costa Rica Real Estate:

A steady economy, good overall quality of life (known as the greenest country of world), stable government, fast growing tourism industry, all of this makes Costa Rica one of the best places to live, as well as a great place to invest in property sector. Good living conditions mean high end-user demand for houses, and high end-user demand means good yields on investment. The prices are not too high either and it’s relatively easier to obtain a piece of property in this part of the world.

Indian Real Estate:

India is going through a quite impressive economic growth, attracting foreign investment in many sectors, and real estate is one of them. Then there’s an ever growing population along with an influx of foreign companies targeting India as the next money spinning market. As a result lots of construction is going around. There’s a constant upsurge in the housing prices in its major cities which hasn’t really been affected by the global financial crisis, despite having close links with Dubai property market.

Abu Dhabi Real Estate:

Recently, nominated as the most promising property market in the Middle East by a group of highly regarded investors, Abu Dhabi has got the money and resources to build like Dubai (and a lot to learn from what’s going on in Dubai at the moment). Slowly but steadily, Abu Dhabi is affirming its position as the regional leader when it comes to attracting foreign investment.

Today investments in real-estate business is regarded as one the most profitable investments. But at the same time it’s accompanied with equally bound financial risks, especially when an investor isn’t well versed with prevailing trends of real-estate market. So in case if you are considering investing your money in real estate business, then it is essential to avoid most common costly mistakes. By knowing these mistakes made by numerous investors, you can avoid them and ensure better returns on the investment.

Below is a list of most common mistakes committed by investors according to real-estate experts and professional involved with real estate market.

No proper planning: Lack of planning is one of big and costly mistakes made by the beginners or new investors. It is better to find a property after planning an investment strategy, but instead most of the investors would purchase a property because of its price and later try to fit it into their action plan.

Believe in truth and invest for long term profit: Most of investors conceive that it’s easy to earn profits in the real estate business. But in fact this is just a myth and truth is that real-estate investment is a long term plan.

Doing real-estate business single-handedly: Today the investors don’t want to build a team, instead they want to do everything single handedly. On the other hand to run a profitable real estate business an investor should have real-estate agent, home inspector, appraises, lender and closing attorney for assistance.

Excess payment: This is another reason why investors fail to earn profits. In these cases the investors would investment or pay excess amount on a property for purchase. By investing extra money on a property, an investor will be left with no money for redemption.

Miscalculation of money flow: Majority of the investors whose basis policy is to purchase, hold and then rent out real estate property to generate enough cash for maintenance. The investors never allocate their funds to meet expenses like mortgage tax, advertising cost and insurance. As a result an investor’s asset would be turned into liability.