10 Steps You Need To Take When Buying Your First Property
By: Jason Sands
Is this the first time you are off on a real estate hunting trip? And you are standing clueless about how to go forward with it? Well here are 10 easy steps to follow to come up with a successful real estate investment –return plan. All you have to do is carefully follow every step provided and you shall see that at the end of the day the winner is YOU, and no one else! We have verified our guide with experienced brokers and seasoned real estate hunters and they have given the proverbial ‘thumbs up’ sign to it!So here it goes:1. The Motive – Understand your motive behind making the real estate investment. Do not just go about it with no concrete plans as to what you will do after you have acquired your property. This is a basic problem that is faced by many amateur real estate investors and can jeopardize the prospect of good returns from your investments. 2. Area – Pick your area which you might be interested to invest in. Make a choice keeping in mind the proximity or the possibility of constant surveillance of the property at your disposal. This will help safeguard your property against violations and intrusions.3. The Cycle - The investment cycle in real estates is definite and make sure you are aware. If prices are on a high for the last 5 years it might depreciate soon. This will discourage normal investors but if you are aware, you know that buying it a low price now, might get you a bigger return at the end of another cycle!4. The Plan – Make a logical yet optimistic plan about the real estate investment you are pursuing. Form a budget, the house type you might be looking for and the potential expenses at hand. 5. Get a Broker – Arrange for a good broker or real estate agent who might get you the whiff of a good property or estate land which you as a commoner might not have laid your hands on. 6. The Mortgage Broker – If you cannot manage the issue of getting a good, clean loan, hire some trusted mortgage broker to settle the issue for you. But be very careful, as loans and brokers both are abundant and fraudulent in the same quantity. 7. References – Always try and get a reference for the site. And never ever try and buy a real estate property unseen, if you are an amateur property hunter. 8. Smaller Homes – Try and invest your money into small family homes and single family homes. These usually are easy and safe to invest in, get easy loans and finances and are easy to resell. 9. Hiring the Property Manager – If the estate you have invested in is not close-by, or you do not have the luxury of time to preside over its takeover and other procedures, hire a good and trustworthy property manager for the job. This will relieve you off the tensions regarding the estate issues and will also have the estate or property under proper care. 10. Renting Out – Make longer contracts or leases for your first-time estate or property, if you plan to rent it out. This is because if the tenants leave before you find a suitable deal, the returns will be redundant against the investment.
sorce;www.articlebeach.com
Friday, March 20, 2009
10 Tips For Buy-To-Let Investment Success
By: James Copper
The Buy-To-Let market place is booming. More and more people are investing in a second property as a long term investment plan. As attractive as the proposition sounds, there are a number of potential pitfalls that need to be taken into consideration. Use the steps below to ensure that your Buy-To-Let investment is a success.#1 Choose The Right PropertyThe location is extremely important. Make sure that speak to a number of local letting agents to determine the supply and demand in the area. Look at such things as whether there are local employers or a university. You can get the details of letting agents near you by contacting The Association of Residential Letting Agents.#2 Choose The Right MortgageYou will need to check with your lender to how much you eligible to borrow. Most lenders will allow you to borrow 85 percent of the properties value. Also most lenders will take into account the expected rental income when they are deciding how much they will lend. Make sure that your rental income covers 125 percent of your monthly mortgage payment.#3 Work Out Costs And IncomeWork out how much your monthly mortgage repayment will be and whether the expected rental income will exceed this. Checking out the rental prices of similar properties advertised in newspapers in your area will give an indication of whether this is possible. Also look at whether you could afford your mortgage if interest rates shop up and the property is unoccupied for 3 months.#4 Consider Hidden CostsYou will have to pay solicitors fees, estate agents fees, building insurance, mortgage arrangement fees, stamp duty and possibly service charges and ground rent.#5 Budget For Ongoing CostsYou are responsible for ensuring that the property meets health and safety standards. Local authorities require that you comply with fire regulations, which could mean you have to put in fire doors and smoke alarms.#6 Choose A Professional Letting AgentYou might want to consider using a professional letting agent. They will find tenants, collect deposits and the rent and arrange the inventory and tenancy agreements. But expect to be charged anything from between 10 to 18 percent of the gross rental income that you get.#7 Ensure You Have The Right InsuranceAs you are the owner it is your responsibility to insure the structure of the property, which includes permanent fixtures and fittings. You will need to check your policy as most buildings insurance policies exclude buy-to-lets.#8 Sort Out Your Tax PositionYou have to pay income tax on any rental income you receive, but you can deduct some expenses and you will probably be liable for Capital Gains Tax when you sell. You would be well advised to speak to your accountant before you proceed.#9 Get A Fully Flexible MortgageThese types of mortgages are well suited to the buy-to-let market. This is because you can fluctuate your payments in line with rental income.#10 View Buy-To-Let As A Long Term Investment Do not expect to make a quick profit on rental income and equity gain in the property. You look at the longer terms for profits. Generally about five to ten years.
source,articlebeach
By: James Copper
The Buy-To-Let market place is booming. More and more people are investing in a second property as a long term investment plan. As attractive as the proposition sounds, there are a number of potential pitfalls that need to be taken into consideration. Use the steps below to ensure that your Buy-To-Let investment is a success.#1 Choose The Right PropertyThe location is extremely important. Make sure that speak to a number of local letting agents to determine the supply and demand in the area. Look at such things as whether there are local employers or a university. You can get the details of letting agents near you by contacting The Association of Residential Letting Agents.#2 Choose The Right MortgageYou will need to check with your lender to how much you eligible to borrow. Most lenders will allow you to borrow 85 percent of the properties value. Also most lenders will take into account the expected rental income when they are deciding how much they will lend. Make sure that your rental income covers 125 percent of your monthly mortgage payment.#3 Work Out Costs And IncomeWork out how much your monthly mortgage repayment will be and whether the expected rental income will exceed this. Checking out the rental prices of similar properties advertised in newspapers in your area will give an indication of whether this is possible. Also look at whether you could afford your mortgage if interest rates shop up and the property is unoccupied for 3 months.#4 Consider Hidden CostsYou will have to pay solicitors fees, estate agents fees, building insurance, mortgage arrangement fees, stamp duty and possibly service charges and ground rent.#5 Budget For Ongoing CostsYou are responsible for ensuring that the property meets health and safety standards. Local authorities require that you comply with fire regulations, which could mean you have to put in fire doors and smoke alarms.#6 Choose A Professional Letting AgentYou might want to consider using a professional letting agent. They will find tenants, collect deposits and the rent and arrange the inventory and tenancy agreements. But expect to be charged anything from between 10 to 18 percent of the gross rental income that you get.#7 Ensure You Have The Right InsuranceAs you are the owner it is your responsibility to insure the structure of the property, which includes permanent fixtures and fittings. You will need to check your policy as most buildings insurance policies exclude buy-to-lets.#8 Sort Out Your Tax PositionYou have to pay income tax on any rental income you receive, but you can deduct some expenses and you will probably be liable for Capital Gains Tax when you sell. You would be well advised to speak to your accountant before you proceed.#9 Get A Fully Flexible MortgageThese types of mortgages are well suited to the buy-to-let market. This is because you can fluctuate your payments in line with rental income.#10 View Buy-To-Let As A Long Term Investment Do not expect to make a quick profit on rental income and equity gain in the property. You look at the longer terms for profits. Generally about five to ten years.
source,articlebeach
Things You Need to Know Before Buying A Seized And Foreclosure Property
By: Paul Mileny
At some point in our lives we feel the need to own our very own property. I mean, for how long are we going to rent. Renting works out to be expensive. True, buying or investing in real estate is rather expensive, and can literally drain you of your resources, however there are many options that you can choose in order to buy property. Ever heard of seized and foreclosure property? Well, if you haven't, then you better start reading up on it and getting to know about it, for buying a seized and foreclosure can really help save you a lot of money. If you look up the Internet, there are many websites that can assist you with this information. One such website is which is perfect. This website gives you all the inner most secrets, that you don't normally have access to otherwise. Just become a member and you'll know what I'm talking about. In addition, you can search for seized homes by using their search tool, the seized search tool (http://www.choosetheprice.com/rzipcode.html) to search for seized properties in your area. It's pretty cool, and tons of people have benefited from this site. Check out the testimonials and you'll know what I'm talking about. Here are 10 handy tips that you must be aware of before going in for a seized and foreclosure property.Tip 1: Decide on what type of property you wantThere are many different types of properties that you can choose from. However you need to know what your requirements are, so that will help you choose the property accordingly. How many bedrooms do you want? Do you want a pool, a backyard? Make a list of what you want and then go about looking for properties. It's pointless searching for properties and not being sure what you want. Tip 2: Do Your ResearchNewspapers are a good place to start, however there's nothing like getting all your information online, especially with sites like to help you. Tip 3: Know the Value before you settle on somethingIts all good that you're excited that you've found an excellent home, moreover the price is great as well. However make sure that you know the value of the home before settling on something. Not having much experience, you may be be a victim of high prices, for what is normally quite low.Tip 4: Learn how to bid for the propertySince it's the first time that your buying a seized property, and your buying it at an auction, get acquainted as to how the bidding works, and how not to get too caught up in the frenzy of the auction. Tip 5: Do check out the PropertyDo make it a point to check out the property before closing in on the deal. Check everything out, after all your going to be putting in all your savings on the line. Take note, if there is any maintenance work that needs to be done, do some calculations as to how much it will cost you. Tip 6: Get an evaluation doneHave the property evaluated if your able to.Tip 7: Seek AdviceIf you're not sure of what to do, and how to go about doing things, please do seek advice. Online sites such as will offer you valuable insights as to things that you may miss. Ultimately the choice is in your hands, but don't be afraid to ask for help.Tip 8: Finance ArrangementsIt's good being prepared with regards to financing your deal. Know in advance how your going to finance your agreement. It's possible that you can avail of a home equity loan, so take that into account as well. Tip 9: Be clear and upfrontYou should always be clear with your requirements. Being upfront and honest is always a good idea. Also with regards to how you're going to be paying for the property. Tip 10: Enjoy your new propertyFinally after closing the deal, it's time to enjoy your new property. While it may require some work, you can feel proud that you have taken the right step to investing in real estate property and that too at such excellent rates.
source;www.articlebeach.com
By: Paul Mileny
At some point in our lives we feel the need to own our very own property. I mean, for how long are we going to rent. Renting works out to be expensive. True, buying or investing in real estate is rather expensive, and can literally drain you of your resources, however there are many options that you can choose in order to buy property. Ever heard of seized and foreclosure property? Well, if you haven't, then you better start reading up on it and getting to know about it, for buying a seized and foreclosure can really help save you a lot of money. If you look up the Internet, there are many websites that can assist you with this information. One such website is which is perfect. This website gives you all the inner most secrets, that you don't normally have access to otherwise. Just become a member and you'll know what I'm talking about. In addition, you can search for seized homes by using their search tool, the seized search tool (http://www.choosetheprice.com/rzipcode.html) to search for seized properties in your area. It's pretty cool, and tons of people have benefited from this site. Check out the testimonials and you'll know what I'm talking about. Here are 10 handy tips that you must be aware of before going in for a seized and foreclosure property.Tip 1: Decide on what type of property you wantThere are many different types of properties that you can choose from. However you need to know what your requirements are, so that will help you choose the property accordingly. How many bedrooms do you want? Do you want a pool, a backyard? Make a list of what you want and then go about looking for properties. It's pointless searching for properties and not being sure what you want. Tip 2: Do Your ResearchNewspapers are a good place to start, however there's nothing like getting all your information online, especially with sites like to help you. Tip 3: Know the Value before you settle on somethingIts all good that you're excited that you've found an excellent home, moreover the price is great as well. However make sure that you know the value of the home before settling on something. Not having much experience, you may be be a victim of high prices, for what is normally quite low.Tip 4: Learn how to bid for the propertySince it's the first time that your buying a seized property, and your buying it at an auction, get acquainted as to how the bidding works, and how not to get too caught up in the frenzy of the auction. Tip 5: Do check out the PropertyDo make it a point to check out the property before closing in on the deal. Check everything out, after all your going to be putting in all your savings on the line. Take note, if there is any maintenance work that needs to be done, do some calculations as to how much it will cost you. Tip 6: Get an evaluation doneHave the property evaluated if your able to.Tip 7: Seek AdviceIf you're not sure of what to do, and how to go about doing things, please do seek advice. Online sites such as will offer you valuable insights as to things that you may miss. Ultimately the choice is in your hands, but don't be afraid to ask for help.Tip 8: Finance ArrangementsIt's good being prepared with regards to financing your deal. Know in advance how your going to finance your agreement. It's possible that you can avail of a home equity loan, so take that into account as well. Tip 9: Be clear and upfrontYou should always be clear with your requirements. Being upfront and honest is always a good idea. Also with regards to how you're going to be paying for the property. Tip 10: Enjoy your new propertyFinally after closing the deal, it's time to enjoy your new property. While it may require some work, you can feel proud that you have taken the right step to investing in real estate property and that too at such excellent rates.
source;www.articlebeach.com
How to Hire a Property Management ServiceBy: John Sern
Regardless of the current condition of the housing market it is very well known that investing in real estate and properties is one of the most stable and most profitable activities in the long run. In order to keep your Investment Property profitable it is important that you manage it correctly, that means that from the moment you put your property for rent, you need to make sure that the person you are renting your property to is responsible hence keeping your risk at a minimum.While property management does involve screening and hand picking your tenants it doesn't mean that it stops there, the property itself needs to be maintained and there needs to be a high level of accountability regarding all the financial transactions resulting from your properties equity growth as well as from the revenue generated by renting it to a tenant.Many property owners who think about saving money often end up hiring a single person to manage their property, whether it be an apartment complex or a house, the only problem with this situation is that not everyone is fully qualified to run your property, give it proper maintenance while making it a profitable investment.Because of the fact that managing the property is not an easy task and is not laughing matter either, your number one concern as an investor and as an owner is to hire a qualified company that will provide you with financial statements that are accurate and that the services they lend you will keep your asset performing at the highest level possible.If you are the owner of an apartment complex or an even bigger piece of property then you definitely want someone who knows what they're doing and is able tool assess your financial goals. All properties should be treated as businesses because of their ability to generate cash flow for their owners so when you are ready to hire a management company to take hold of your investment is necessary that you consult with them in order to create the business plan because only those who treat your investment as an actual business are the ones who are going to be capable of handling your asset, lowering your risks and returning balance sheets that will in turn favor your finances.As you see, there is so much at stake that when you choose a company to run your asset and keep it profitable it is important that the company and the overall presentation inspires trust which is actually the bottom line when it comes to giving your investment for someone else to manage. Making the right decision when it comes to property management and assessing the experience of the company you are about to hire can dictate whether are not your investment will be a success.
Regardless of the current condition of the housing market it is very well known that investing in real estate and properties is one of the most stable and most profitable activities in the long run. In order to keep your Investment Property profitable it is important that you manage it correctly, that means that from the moment you put your property for rent, you need to make sure that the person you are renting your property to is responsible hence keeping your risk at a minimum.While property management does involve screening and hand picking your tenants it doesn't mean that it stops there, the property itself needs to be maintained and there needs to be a high level of accountability regarding all the financial transactions resulting from your properties equity growth as well as from the revenue generated by renting it to a tenant.Many property owners who think about saving money often end up hiring a single person to manage their property, whether it be an apartment complex or a house, the only problem with this situation is that not everyone is fully qualified to run your property, give it proper maintenance while making it a profitable investment.Because of the fact that managing the property is not an easy task and is not laughing matter either, your number one concern as an investor and as an owner is to hire a qualified company that will provide you with financial statements that are accurate and that the services they lend you will keep your asset performing at the highest level possible.If you are the owner of an apartment complex or an even bigger piece of property then you definitely want someone who knows what they're doing and is able tool assess your financial goals. All properties should be treated as businesses because of their ability to generate cash flow for their owners so when you are ready to hire a management company to take hold of your investment is necessary that you consult with them in order to create the business plan because only those who treat your investment as an actual business are the ones who are going to be capable of handling your asset, lowering your risks and returning balance sheets that will in turn favor your finances.As you see, there is so much at stake that when you choose a company to run your asset and keep it profitable it is important that the company and the overall presentation inspires trust which is actually the bottom line when it comes to giving your investment for someone else to manage. Making the right decision when it comes to property management and assessing the experience of the company you are about to hire can dictate whether are not your investment will be a success.
Article Source: http://www.articlewarehouse.com
Regardless of the current condition of the housing market it is very well known that investing in real estate and properties is one of the most stable and most profitable activities in the long run. In order to keep your Investment Property profitable it is important that you manage it correctly, that means that from the moment you put your property for rent, you need to make sure that the person you are renting your property to is responsible hence keeping your risk at a minimum.While property management does involve screening and hand picking your tenants it doesn't mean that it stops there, the property itself needs to be maintained and there needs to be a high level of accountability regarding all the financial transactions resulting from your properties equity growth as well as from the revenue generated by renting it to a tenant.Many property owners who think about saving money often end up hiring a single person to manage their property, whether it be an apartment complex or a house, the only problem with this situation is that not everyone is fully qualified to run your property, give it proper maintenance while making it a profitable investment.Because of the fact that managing the property is not an easy task and is not laughing matter either, your number one concern as an investor and as an owner is to hire a qualified company that will provide you with financial statements that are accurate and that the services they lend you will keep your asset performing at the highest level possible.If you are the owner of an apartment complex or an even bigger piece of property then you definitely want someone who knows what they're doing and is able tool assess your financial goals. All properties should be treated as businesses because of their ability to generate cash flow for their owners so when you are ready to hire a management company to take hold of your investment is necessary that you consult with them in order to create the business plan because only those who treat your investment as an actual business are the ones who are going to be capable of handling your asset, lowering your risks and returning balance sheets that will in turn favor your finances.As you see, there is so much at stake that when you choose a company to run your asset and keep it profitable it is important that the company and the overall presentation inspires trust which is actually the bottom line when it comes to giving your investment for someone else to manage. Making the right decision when it comes to property management and assessing the experience of the company you are about to hire can dictate whether are not your investment will be a success.
Regardless of the current condition of the housing market it is very well known that investing in real estate and properties is one of the most stable and most profitable activities in the long run. In order to keep your Investment Property profitable it is important that you manage it correctly, that means that from the moment you put your property for rent, you need to make sure that the person you are renting your property to is responsible hence keeping your risk at a minimum.While property management does involve screening and hand picking your tenants it doesn't mean that it stops there, the property itself needs to be maintained and there needs to be a high level of accountability regarding all the financial transactions resulting from your properties equity growth as well as from the revenue generated by renting it to a tenant.Many property owners who think about saving money often end up hiring a single person to manage their property, whether it be an apartment complex or a house, the only problem with this situation is that not everyone is fully qualified to run your property, give it proper maintenance while making it a profitable investment.Because of the fact that managing the property is not an easy task and is not laughing matter either, your number one concern as an investor and as an owner is to hire a qualified company that will provide you with financial statements that are accurate and that the services they lend you will keep your asset performing at the highest level possible.If you are the owner of an apartment complex or an even bigger piece of property then you definitely want someone who knows what they're doing and is able tool assess your financial goals. All properties should be treated as businesses because of their ability to generate cash flow for their owners so when you are ready to hire a management company to take hold of your investment is necessary that you consult with them in order to create the business plan because only those who treat your investment as an actual business are the ones who are going to be capable of handling your asset, lowering your risks and returning balance sheets that will in turn favor your finances.As you see, there is so much at stake that when you choose a company to run your asset and keep it profitable it is important that the company and the overall presentation inspires trust which is actually the bottom line when it comes to giving your investment for someone else to manage. Making the right decision when it comes to property management and assessing the experience of the company you are about to hire can dictate whether are not your investment will be a success.
Article Source: http://www.articlewarehouse.com
10 Questions To Ask Your Real Estate Investment Advisor (Part 1)
By: Norbert Taylor
Whether you are an experienced investor or just a beginner, you should always beware of the guru who read a couple of books and armed himself with some general information. I'm not talking about the book and tape salesperson here, but rather the realtor, wholesaler or self proclaimed real estate specialist who is trying to sell you an investment property. Whether you're buying a property or going into business with someone, you should always do your homework.In this article, the first of two parts, I'll offer some of the questions you should ask anyone before working with them. 1) Are you, yourself, an investor and how many properties do you own in the local area? If they answer "none" or say they just rent an apartment, run! Watch out for the slick book and tape sales people who don't own any investment property and know nothing about the local market. They will take your money and run. I met a new investor last year who had paid over $5,000 to attend a two day seminar taught by a guy out of California who knew nothing about the Atlanta market. Nothing good can come of that. Deal with locals who not only know the concepts but can help you find the right properties to invest in.2) Can you provide me with a list of bank owned and foreclosed properties in my area?If they can't provide this, run!If they can provide you a list, pick a property on it and ask this next set of questions.3) What's the property's tax value?This is a "DUH" question - if the Realtor or Investment Specialist can not give you the assessed value of a property, they need change careers. You would be surprised by the numbers of "PROS" that don't even know where to start to look for that information.Generally, the tax value or the accessed value put on a property in Georgia is typically 10 to 20 percent below the market value. When I start my search for possible deals, the first thing I look for is properties priced below the accessed value of the property. Example #1 List Price is $200,000Accessed Value is $220,000This might be a possibility because I estimate the Retail Value of the house to be 10% higher than the Accessed Value or $242,000.Example #2Just reverse #1 - list price is $220,000Accessed Value is $200,000I probably would not consider this house because I estimate the Retail Value of the house to be $220,000 - no deal here!Remember tax value is only one of the factors you should consider before buying a house but I consider it a good starting point. If someone is trying to sell you a property and they can't provide tax value, it could be they don't want you to know. 4) Can you give me a list of comparables in the area?Another "DUH" question. Most Realtors can pull a Comparative Market Analysis (CMA) which will show the sales history for the past year to include the following categories: Sold, Expired, Under Contract, and Active Listing. Additionally, the Realtor should be able to provide a Area Market Analysis (AMS) which will provide the average Days On Market by category. 5) How many days has this property been on market (referred to as Days On Market, or DOM)?If their reply is “I don't have access to that information”: run. Any Realtor should know that information is available but finding it is the trick. Keep in mind the length of time the property has been on the market does not coincide with the foreclosure date. It could take 30 to 60 days after a property has foreclosed to get it listed with a realtor and into the MLS.Why are days on market important? The longer the property has been on the market - the more flexible the seller. Banks and other financial institutions are not in the property management business. Everyday expenses include loss of income, maintenance, insurance, and possible vandalism. I like to submit low offers on properties that have been on the banks books for over 4 months. Offer cash with a quick closing - you will be surprised how flexible the banks will become considering it may be the only offer they have received on the property.
source;articlebeach
By: Norbert Taylor
Whether you are an experienced investor or just a beginner, you should always beware of the guru who read a couple of books and armed himself with some general information. I'm not talking about the book and tape salesperson here, but rather the realtor, wholesaler or self proclaimed real estate specialist who is trying to sell you an investment property. Whether you're buying a property or going into business with someone, you should always do your homework.In this article, the first of two parts, I'll offer some of the questions you should ask anyone before working with them. 1) Are you, yourself, an investor and how many properties do you own in the local area? If they answer "none" or say they just rent an apartment, run! Watch out for the slick book and tape sales people who don't own any investment property and know nothing about the local market. They will take your money and run. I met a new investor last year who had paid over $5,000 to attend a two day seminar taught by a guy out of California who knew nothing about the Atlanta market. Nothing good can come of that. Deal with locals who not only know the concepts but can help you find the right properties to invest in.2) Can you provide me with a list of bank owned and foreclosed properties in my area?If they can't provide this, run!If they can provide you a list, pick a property on it and ask this next set of questions.3) What's the property's tax value?This is a "DUH" question - if the Realtor or Investment Specialist can not give you the assessed value of a property, they need change careers. You would be surprised by the numbers of "PROS" that don't even know where to start to look for that information.Generally, the tax value or the accessed value put on a property in Georgia is typically 10 to 20 percent below the market value. When I start my search for possible deals, the first thing I look for is properties priced below the accessed value of the property. Example #1 List Price is $200,000Accessed Value is $220,000This might be a possibility because I estimate the Retail Value of the house to be 10% higher than the Accessed Value or $242,000.Example #2Just reverse #1 - list price is $220,000Accessed Value is $200,000I probably would not consider this house because I estimate the Retail Value of the house to be $220,000 - no deal here!Remember tax value is only one of the factors you should consider before buying a house but I consider it a good starting point. If someone is trying to sell you a property and they can't provide tax value, it could be they don't want you to know. 4) Can you give me a list of comparables in the area?Another "DUH" question. Most Realtors can pull a Comparative Market Analysis (CMA) which will show the sales history for the past year to include the following categories: Sold, Expired, Under Contract, and Active Listing. Additionally, the Realtor should be able to provide a Area Market Analysis (AMS) which will provide the average Days On Market by category. 5) How many days has this property been on market (referred to as Days On Market, or DOM)?If their reply is “I don't have access to that information”: run. Any Realtor should know that information is available but finding it is the trick. Keep in mind the length of time the property has been on the market does not coincide with the foreclosure date. It could take 30 to 60 days after a property has foreclosed to get it listed with a realtor and into the MLS.Why are days on market important? The longer the property has been on the market - the more flexible the seller. Banks and other financial institutions are not in the property management business. Everyday expenses include loss of income, maintenance, insurance, and possible vandalism. I like to submit low offers on properties that have been on the banks books for over 4 months. Offer cash with a quick closing - you will be surprised how flexible the banks will become considering it may be the only offer they have received on the property.
source;articlebeach
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