The Smart Pounder

When assessing the value of a property, many investors and other commercial property buyers look at comparable sales to determine the true current market value of a property. The comparable sales can show you exactly what properties are selling for, not just the asking price. If you know three or four properties of similar characteristics sold for about the same amount, then you can determine what the value of your property is. Don’t ever just look at the asking price, as it can be as far off as the owner wishes. He or she may be dreaming in regards to what the property is really worth!

Comparable sales, or comps, are the properties that have sold around the subject property that are zoned identically, and are about the same amount of acreage. It also helps if the comparable sales are from properties that have similar uses.

Comparable sales may not always be the most accurate for your specific property. They could be from many years ago, may not be of similar use, many not have the same characteristics such as the availability of utilities, or may not have a comparable amount of road frontage, or could be a considerable distance from the subject property.

In order to get around this problem, you must use the closest properties that you can. You simply adjust the price according to the changes in the market or property characteristics.

For example, if a comparable sale was from 2001, and the current year is 2006, then you can adjust the price according to the appreciation the overall commercial market has experienced in a specific area.

Or, if the subject property has a total road frontage of 200 feet, and the comparable sale property has frontage of 1000 feet, you can adjust the price or value appropriately.

As you can see, finding the true current market value of a property can take some investigation and adjustment in relation to the properties that have sold in the past. The more recent and similar the comparable sale is, the easier and more accurately you can assess the true value of the property.

It is a good idea to collect as many comparable sales as possible and take inventory of each. What are the characteristics? What are the uses? Assess each one individually and then group them together to determine an overall consensus. You should be able to determine the current market value at this point. The more properties you have to pool from, the more accurate a number you will have.

Very often brokers or agents supply you with comps from the area of interest as part of the service of selling the subject property. If you are not familiar with the area, you must be leery of the comps that they send you.

I have received comps of properties in the most affluent areas for a subject property that was positioned in a lower to medium class area which completely misrepresented the true market value of the property. Unless I had investigated further and asked many questions, I could have easily taken this property as a true comparable sale, and would have expected a far greater return than what I really would have experienced.

Unfortunately, as much as you want to trust the information that you are given by a source, you must always perform your very own investigation because brokers and agents are there to sell their properties. Many of them are honest and will do the best they can to give you the most accurate information. However, there are those who will dupe a buyer in order to sell the property and receive their commission. It is important to be aware of these tactics. Although we don’t like to admit that they happen, they most certainly do.

Comparable sales are really the only way you can determine the true value of a property. It may take a comparable from another city, or even county of identical characteristics to determine the most accurate value. If necessary, ask a trustworthy broker or agent for assistance, as they will know their market inside and out, and be able to point you in the right direction as to what the property is really worth. Get two or three opinions in order to validate any information you might receive.

Notwithstanding the fact that PropertyIndex.com is really a newcomer agency, starting their business only in March of 2007, they were fast to advance to expert status. De facto, they are a rather hip bureau entirely focused on proposing expert advice to everyone who is meaning to buy land in the most popular regions of the world. Their avowal is to lend you a hand to ferret out smack what you require fast plus, obviously, painlessly.

Realty can easily be purchased across the world presently, one of the most fashionable areas being properties on the market in Italy. It’s straightforward to list some of the great realty you can purchase in Italy, one motive for selecting property here being high quality estate you can purchase and the possibility to live amid such a exciting, keen and energetic populace. If you are looking to buy property abroad try Property Index, specialists in overseas property.

This is one of the most well-liked regions of the world nowadays, and considering the lovely landscape and climate surrounding you, you cannot go wrong. Land in Italy is immersed in culture, art and history, this part of the world has long been home to various sophisticated nations. Around twenty years ago there’d be merely a trickle UK citizens looking into real estate in Italy. Today that trickle has turned into a flow. Ask just about anyone who has moved to Italy and they’ll certainly back this up…

There are two ways of earning from your real estate investment: sell it at a higher price, or rent or lease it out.

Finding possible tenants are not that different from finding buyers for your homeyou place ads, distribute flyers, arrange appointments (or open houses) so they can view the property, and negotiate for terms.

The obvious advantage of renting out the property is that you earn money while still retaining ownership. But it does have its own share of headacheslike the occasional tenants-from-hell who either skips on monthly payments or damages it during his stay. Of course you could always kick them out, but you’ve already incurred losses: the cost of repairing the property, the earning opportunities lost while finding another tenant, and the devaluation of the property because of the damage.

That’s why it’s very important to screen your tenants through the rental application form. It includes all the information you need to do a background check, evaluate their ability to pay, and even track them down in case he trashes your beloved apartment and skip town before you find out.

Once you’ve found your best candidate, you also need to protect yourself (and him!) with a residential lease. This basically outlines the terms in which he can use the property, his obligations (and yours), and any rules on damage and repair. It also has a description of the propertyso you never end up fighting over whether or not the bathroom tiles were cracked before or after he moved inand your policy on subletting.

In other words, the residential lease prevents the ugly squabbles that often occur between tenants and landlords. What if the dog ruins the carpet? What if the roof leaks or the cabinet door falls off? What if he abandons the property? What if he misses a payment? Better clear it now, than argue about it later on.

Real Estate Forms

Buying a house is one of the most expensive things most people will ever do. With the average home in the United States now costing more than $200,000, it will take a half a million dollars to buy it outright once the interest on the loan is taken into consideration and for most people, thirty years of hard work. But what if something happens to you during the life of your mortgage? What will happen to your family if you should die before the house is paid off? Will they have a place to live?

One solution to this scenario, called mortgage life insurance, is offered by most lending companies. This is an insurance policy that the buyer purchases along with the loan; the premium is added to the monthly house payment. Should the buyer die or become disabled, the home loan will be paid off.

This may sound like a good idea. Should you buy it?

That depends. The idea is certainly a good one; no one wants their family to become homeless in the event of an untimely death. On the other hand, such a policy is rather limited. It does one thing only – it pays off the mortgage. A better alternative might be a term life insurance policy, which would simply pay cash to a designated beneficiary. He or she could then use it to pay off the mortgage or they could use if for other needs. This might offer greater flexibility than would mortgage insurance.

Term life insurance might be cheaper, as well. This will depend on the age and health of the applicant. For someone under 40 in good health, term insurance might be a great deal cheaper. For someone older, someone with poor health, or someone who smokes, the mortgage insurance might be a better deal, as premiums for life insurance can increase dramatically under those circumstances. Most people who wish to protect their assets would probably be best served by a term life insurance policy, anyone who has any questions about it should probably consult with both their insurance agent and a representative from their mortgage company.

©Copyright 2006 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to personal bankruptcy, debt consolidation, establishing credit and credit counseling and HomeEquityHelp.net, a site devoted to information regarding mortgages and home equity loans .

Reducing consumer debts will ease anxiety and open the door for better
rates on a home loan or mortgage. Unfortunately, becoming debt-free is
a long process, and it may take several years to achieve this goal. If
you own a home, refinancing your existing mortgage – even with poor
credit – may present extra cash to payoff high interest credit cards.

What Does it Mean to Refinance a Home Mortgage?

Refinancing a home loan is an everyday practice. There are several
reasons to contemplate a refinancing. For starters, if you attain a
cash-out refinancing, the mortgage company will hand over a lump sum of money
at closing. Prior to this, homeowners apply for a new home loan, which
replaces the old. In addition to creating a new mortgage, homeowners
also borrow money from their home’s equity. For example, refinancing an
existing $125,000 mortgage, and borrowing $25,000 of the home’s equity
will produce a new mortgage of $150,000.

Advantages of Refinancing an Existing Mortgage

If your intent is to become debt-free in the shortest amount of time,
refinancing your home is a great alternative. High interest credit cards
are difficult to eliminate. Unless you are able to make large payments,
it may take ten to twenty years to payoff a $2,000 credit card balance.
Moreover, a new mortgage is great for acquiring funds to make home
improvements, build a savings account, or plan for retirement. Homeowners
with poor credit may increase their credit rating upon reducing or
eliminating consumer debts.

When is the Best Time to Refinance?

For many homeowners, now is a good time to refinance their current
mortgage. Individuals who obtained home mortgages before rates began to
decline are likely paying two or three percentage points above the current
average. Refinancing for a lower rate may decrease your mortgage
payment. Moreover, refinancing may eliminate private mortgage insurance.

With low mortgage rates, refinancing for a fixed rate or interest-only
option may be favorable. Before refinancing, count the costs. Remember,
refinancing will entail paying closing costs. If the monthly savings
are insignificant, or you plan on moving in less than five years, you
will not benefit from a refi loan.

View our recommended
Bad Credit Mortgage Refinance lenders or view all of our Recommended Refinance Lenders.