Common builder blunders - and how to avoid them

When it comes to building a house, there are dozens of opportunities for making mistakes or bad decisions. Not to worry, you've hired a reputable builder who knows what he's doing; these mistakes shouldn't be an issue. Maybe in a perfect world, but all builders can make errors. These may be as simple as locating a shower head too low, causing you to stoop ever time you have a shower, or inconveniently locating a toilet paper roll so that you have to reach. It's not a huge issue, but over time it gets pretty annoying.

Here are a few of the more common builder errors to keep an eye out for.

Outside of the House

Air conditioners should be located on the east or north side of the home for maximum efficiency, but ensure they are not located close to bedrooms. Although the newer units are fairly quiet, you'll still here the compressors when the unit is in use.

Driveways should be wide enough that you don't have to step on the grass when you get out of the car. If you have a double car laneway, you should be able to park two cars, side by side, without dinging the doors. A single lane drive should be no less than 12 feet wide and a double-wide driveway should be 22 feet wide.

A covered porch is a simple improvement you'll thank your builder for time and again. Especially the next time you're standing in the rain with your arms full of groceries, and fumbling for your keys.

Outdoor faucets should be conveniently located at the front and rear of the house. Think of where your gardens and planters will be situated for handy hose access.

Exterior electrical outlets are not used that often, but when they are needed, you want them close by. You'll want them at the front, back and possibly the side, depending on the type of exterior work you'll be doing. It's great to have outlets installed in your soffits for handy Christmas light plug-ins.

Indoors

Interior Electrical outlets can be a huge source of frustration if they aren't conveniently located. You'll want to ensure they're installed in the walls directly behind end tables, next to beds or couches, or on top of a fireplace mantle. You may also want some floor outlets in a home office or coffee table situated in the middle of a room. My biggest source of frustration was not having an outlet in the island in my kitchen.

Traffic flow should be examined when you're planning your floor layout. Ensure that areas designated as pathways, won't be obstructed by furniture. Usually a 36 inch width is chosen for stairways, you'll appreciate increasing this to 42 inches or more in width.

Spongy floors can be avoided if you request extra stiff floors. The average building code for floors is 1/360, ask your builder to upgrade to a 1/480 deflection design instead.

Trusses are probably one of the least concerns of most new home owners, but so important for future renovation possibilities. If you intend on creating added living space in an attic or above a garage, request that your builder install a truss that will allow for added headroom in these areas. Also, have him install a real staircase in these spaces, not a fold-up model.

Why would a lender do a short sale

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There are many ways to lose a home but signing away ownership in a manner that destroys credit, embarrasses the family and strips an owner of dignity is one of the hardest. For owners who can no longer afford to keep mortgage payments current, there are alternatives to bankruptcy or foreclosure proceedings. One of those options is called a "short sale."
When lenders agree to do a short sale in real estate, it means the lender is accepting less than the total amount due. Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose; moreover, not all sellers nor all properties qualify for short sales.
If you are considering buying a short sale, there could be drawbacks. For your protection, I suggest that all borrowers:
* Obtain legal advice from a competent real estate lawyer
* Call an accountant to discuss short sale tax ramifications
As a real estate agent, I am not licensed as a lawyer nor a CPA and cannot advise on those consequences. Except for certain conditions pursuant to the Mortgage Forgiveness Debt Relief Act of 2007, be aware the I. R.S. will consider debt forgiveness as income, and there is no guarantee that a lender who accepts a short sale will not legally pursue a borrower for the difference between the amount owed and the amount paid. In some states, this amount is known as a deficiency. A lawyer can determine whether your loan qualifies for a deficiency judgment or claim.
Although all lenders have varying requirements and may demand that a borrower submit a wide array of documentation, the following steps will give you a pretty good idea of what to expect.
Call the Lender
You may need to make a half dozen phone calls before you find the person responsible for handling short sales. You do not want to talk to the "real estate short sale" or "work out" department, you want the supervisor's name, the name of the individual capable of making a decision.
Submit Letter of Authorization
Lenders typically do not want to disclose any of your personal information without written authorization to do so. If you are working with a real estate agent, closing agent, title company or lawyer, you will receive better cooperation if you write a letter to the lender giving the lender permission to talk with those specific interested parties about your loan. The letter should include the following:
* Property Address
* Loan Reference Number
* Your Name
* The Date
* Your Agent's Name & Contact Information
Preliminary Net Sheet
This is an estimated closing statement that shows the sales price you expect to receive and all the costs of sale, unpaid loan balances, outstanding payments due and late fees, including real estate commissions, if any. Your closing agent or lawyer should be able to prepare this for you, if you do not know how to calculate any of these fees. If the bottom line shows cash to the seller, you will probably not need a short sale.
Hardship Letter
The sadder, the better. This statement of facts describes how you got into this financial bind and makes a plea to the lender to accept less than full payment. Lenders are not inhumane and can understand if you lost your job, were hospitalized or a truck ran over your entire family, but lenders are not particularly empathetic to situations involving dishonesty or criminal behavior.
Proof of Income and Assets
It is best to be truthful and honest about your financial situation and disclose assets. Lenders will want to know if you have savings accounts, money market accounts, stocks or bonds, negotiable instruments, cash or other real estate or anything of tangible value. Lenders are not in the charity business and often require assurance that the debtor cannot pay back any of the debt that it is forgiving.
Copies of Bank Statements
If your bank statements reflect unaccountable deposits, large cash withdrawals or an unusual number of checks, it's probably a good idea to explain each of those line items to the lender. In addition, the lender might want you to account for each and every deposit so it can determine whether deposits will continue.
Comparative Market Analysis
Sometimes markets decline and property values fall. If this is part of the reason that you cannot sell your home for enough to pay off the lender, this fact should be substantiated for the lender through a comparative market analysis (CMA). Your real estate agent can prepare a CMA for you, which will show prices of similar homes:
*Active on the market
*Pending sales
*Solds from the past six months.
Purchase Agreement & Listing Agreement
When you reach an agreement to sell with a prospective purchaser, the lender will want a copy of the offer, along with a copy of your listing agreement. Be prepared for the lender to renegotiate commissions and to refuse to allow payment of certain items such as home protection plans or termite inspections.

Fsbos the secret of after settlement escrow to solve problems

Most FSBOs (people who are selling their own homes) are aware of the conventional use of escrow. In this article, we look at ways to use escrow to solve problems.

Escrow

Escrow means different things in different parts of the country. In California it’s part and parcel of the settlement process. In Virginia, while there’s no formal escrow before settlement, the settlement agent gathers title information, draws or has a deed drawn, coordinates with the lender, receives various inspection reports and in general conducts an informal escrow in the days before settlement. The difference is that, in Virginia, usually documents aren’t signed by the parties until they meet at the settlement table. It’s the use of escrow after this period that we’re concerned with here.

A Problem Rears Its Head

What’s possible varies from state to state, but creating an escrow account (usually held by the settlement agent) after a home is sold can solve problems. What sorts of problems? Let’s look at a few.

First of all, let’s assume the buyer or seller needs, or wants, to settle by a certain date. Lots of things can cause this including the date school starts, the date a breadwinner starts a new job or the date of settlement on the seller’s new home.

Now, let’s suppose a problem crops up which would prevent that settlement deadline from being met. Such problems might be caused by the discovery of termites and termite damage, the discovery of encroachment on a utility right of way by a garden shed on the property being sold or the discovery of high levels of radon gas within the home.

Let’s further suppose that the buyer and seller have agreed on the basic solution of the problem. In the above examples, typical solutions might be that the seller will have the home treated for termites and have a licensed contractor repair the damage. Or the seller will have a contractor move the shed out of the right of way. Or the seller will install a radon mitigation system. Of course, everything is negotiable, and a buyer who wants a property badly enough could agree to fix the defects himself.

What if the pest control company, contractor or the radon mitigation company can’t finish their work until after the planned settlement date? What happens then? Most frequently, settlement is delayed until these sorts of things are taken care of, but sometimes that isn’t desirable. Sometimes delay of settlement can be a deal killer.

Problem Solving 101

Enter the “after settlement escrow.” The parties agree that an amount of money (usually a bit larger than the estimate) is set aside in escrow pending completion of the work. The escrow agent has clear (usually written) instructions about what must be done before the money is released to the person who put it up (or before the work is paid for and any excess returned to the person who put it up).

The funding of an after settlement escrow usually comes from the proceeds of the sale, so it can be used where there are no funds to take corrective action any other way. Even if the person responsible could get a loan for the purpose, the process could take too long to meet the settlement deadline. In that way, it can be a “cash flow” solution, too.

No matter what problem you encounter, it’s usually possible for a willing seller and a willing buyer to work things out. Remember that all sorts of needs can be accommodated without anyone’s being a loser. Situations in which both buyer and seller are winners happen frequently. With any luck, that’s what will happen in your case. It just takes creativity and persistence.

The truth about realtors

Recently I read that an annual poll taken among Americans rated Realtors as one of the least respected professions in the country. For the first time in history, Realtors fell not only to the bottom of the list, but even below non-licensed, non-governed professions. Yes, we finally beat out used-car salesman as the least respected profession. Different polls have yielded different results, but this particular poll focused on 'the trust of a professional to give good advice.'

Now, for me herein lies a particular conundrum. To start, certain significant differences exist between professions. For example, Realtors are licensed, and as such, they are governed by three governing bodies: their local board of Realtors, their state board of Realtors, and the National Association of Realtors. To be licensed, each Realtor must pass a number of significant signposts. For example, in Texas, a minimum of three college level courses must be completed to obtain a license. Of course, this only applies to college-degreed individuals: more courses are required if the candidate does not possess an accredited degree. Next, they must pass the licensing exam.

Once their license is obtained, continuing education is mandatory to retain the license, as is common in many professions, such as Accountancy, Law, etc. This requirement is strictly enforced and must include a minimum amount of real estate law. Thus Realtors stay relatively abreast of changes in real estate and law, and, in particular, nowadays, of the growing problem of mortgage fraud, which can in some instances, implicate the seller, even if the seller is ignorant of the law, they can potentially face criminal charges and substantial fines as an accomplice. (Ignorance of the law is no excuse).

A Realtor, as a seller's agent, can usually spot the red flags related to mortgage fraud and alert their client to the possibility and possible sources of relief to avoid an undesirable outcome (like jail). In short, the Realtor is a professional, and, in some cases, can not only sell your house, but keep you out of legal troubles.

Additionally, Realtors, per the National Association of Realtors, are bound by a code of ethics, which they must agree and abide by, for if they do not, they can (and usually are) brought before a court of inquiry through their local or state boards to determine their guilt or innocence and receive appropriate disciplinary measures. In short, if a Realtor is unethical (not just operating outside the law, but operating within the law unethically), they can (and will, if found guilty) lose their license to practice.

Did you know that a real estate agent is governed by the same body of law that governs attorneys? That's right; it's called the Law of Agency and it varies a bit state by state, but fundamentally, it says that a Realtor is required by law to put your interests above their own. The point is this: Attorneys and Realtors are bound by the same set of laws. Yet, somehow, Attorneys rate MUCH higher in the poll.

Ever consider what it cost just to practice real estate? Between the expense of joining the local, state, and national boards, as well as the local MLS dues, showing service fees, website fees, errors & omissions insurance, advertising costs, AND broker related fees and dues, a Realtor pays thousands of dollars (even tens of thousands) each year just to be a Realtor.

And we're not finished yet. Once a Realtor is licensed, they must find a Broker to sponsor them. Now, this really isn't that hard, but if you have a bad reputation in the field (and in real estate, everyone knows everyone), this might be much harder than you might think. In these cases, where reputations are poor, no broker will touch them, so a Realtor's only choice is to become a Broker (which means more classes, more expense, more training, and another licensing test) in order to continue to practice real estate. This isn't saying that all small brokerages are probable crooks, in fact, in most cases, small brokerages are just entrepreneurially oriented individuals trying to build a legitimate business, but there are cases where this is the last opportunity for some Realtors to practice real estate before being run out of town on a rail, so to speak.

I know this seems like rambling, or I'm complaining over something small, but I'm really not. I have an MBA; I am a Certified Management Accountant; I am Certified in Financial Management; I spent 23 years in banking and as a business consultant. Two years ago I got disgruntled with the internal political machinery that constitute 'success' in corporate America and quit in order to look myself in the mirror at night. So I joined my wife to build a credible, honest business based on integrity. I became a Realtor.

What I found was that no one trusted me and that somewhat astounded me. People thought I took a listing, sat back, watched TV, drank beer, and waited for someone to sell their property. I'm not making this up - they really thought this. They complained about the fact I wasn't doing anything for them.

Wow! If they think I wasn't working for them, they should take a long look at corporate America!

Now, get this, I would receive these complaints around 8:30 p. m. while I was still in the office working. For some reason, these clients didn't add it up that it was 8:30 at night, and I was still at work. I have found that to remain competitive in real estate, I work seven days a week starting around 9:00 a. m. and end the day somewhere between 9:00 p. m. and midnight--every day, and I am usually so busy, I forget to eat lunch (I used to tease my wife how she could possibly forget to eat lunch, but now that I'm in the business, I understand). That's just what it takes to get all the phone calls answered or returned, the negotiations put to bed, the inspection issues resolved, the photos and virtual tours taken and posted, the newspaper ads ordered, the just listed cards sent out, the just sold cards sent, the monthly newsletter and other marketing materials in the mail, the website and MLS updated, the flyers designed, printed, and delivered to the property, the books balanced, the supplies replenished, the equipment fixed, the computers/printers/fax kept operational, the emails read and processed, the mail read and processed, all the paperwork completed perfectly and processed (the then verified for accuracy), the prospecting done, the client follow-ups finished (time permitting), the closings attended, the closing gifts purchased and delivered, the listing presentations prepared and made, the comparative market analyses done, potential homes identified for buyers, the potential homes shown to buyers, the bills paid, the mandatory education completed, the 800 numbers recorded, all amendments signed and filed correctly, putting out 'for sale' signs/lock boxes/flyer boxes (or picking them up after a sale), the open houses held, the flyers prepared and distributed in every broker's office in town for the open house, holding realtor luncheons, flyers prepared and distributed at every broker's office in town for the realtor luncheon, buying and preparing the food for the realtor luncheons, talking to other agents to get feedback on home showings, and talking to others agents about our listings, fending off frivolous lawsuits, AND telling our clients that we ARE working on selling their home even if they don't hear from us every day or even if they don't see us doing anything.

That covers some of what our day is like. Every day is different, but that covers some of it.

My point?

Well, if it isn't obvious, how are Realtors rated so low? We are we at the bottom of the list of all professions? How is this possible? With all due respect to used car salesman (and I mean that - I've met a few wonderful used car salespeople), how can a licensed, governed profession, subject to stringent ethical and educational standards, that costs thousands of dollars per year just to practice (our costs to practice exceeded $50,000 last year), how can a profession that requires about 80+ hours of work per week -- all week -- well, how can this profession possiblly be less respected than a profession where NONE of these items are required? It boggles the mind. Are there licensed used car salespeople? Are they held to ethical standards? And -- think about this -- do they pay thousands to tens of thousands of dollars per year to be a used car salesman?

This isn't to say that every Realtor walks on water. No. Not even close. But neither does every attorney, doctor, engineer, or accountant. There are levels of skill related to all professions, including Realtors.

So, what I want you to know is that the polls aren't justified. Yes, they reflect that Realtors are one of the least respected professions in America, but the justification for this is MIA. I know, I worked in corporate America right next to hundreds of CPAs, engineers, systems analysts, programmers, and I lunched with CEO's, COO's, and multi-millionaire entreprenuers. I've seen it all, I've worked with them all, and truthfully, the best bunch (by far) I've ever been associated with is the 130 agents in the Ebby Halliday Office in Arlington, Texas.

Are Realtors really one of the least respected profession in America?

Get real, folks.

Use a licensed Realtor. I recommend you find one by getting a referral from someone you trust, but for heaven's sake, use a licensed professional.

Per National Association of Realtors statistics, you stand a 46 times greater chance of selling your home through a Realtor than on your own, and on average (if you listen to your realtor's advice) you'll end receiving a higher price for your home.

Oh, and you just might keep yourself out of jail in the process.

Buying your first home is a big decision

Buying a home is one of the greatest investments you will ever make. The best -- and least stressful -- way to purchase a home is to be well educated throughout the process.

Before you even start looking for a house to buy, you need to review your financial situation. This will let you know how much of a down payment you can afford and how large a monthly mortgage payment you can handle. Lenders will look at the ration of how much you make to how much you owe. Most will require that your monthly housing costs remain under 28% of your total monthly income and that your total debt is less than 36% of your monthly income.

But you should look at what fits into your budget, not what the lender says you can afford. If you are currently making a rent payment of $1200 a month and barely getting by, how could you expect a mortgage of that size with the added insurance and maintenance costs of owning a home? You have to go with what works for your budget and finances. Remember, you can always work your way up to a larger home over time.

Once you have determined how much home you can afford, you need to check on your credit report and score. Lenders will rely heavily on your credit score when deciding whether or not to lend to you. It will also help decide how much interest you will pay. Your credit score is determined by the information in your credit file. If something is incorrect, your score will be affected.

Your score is made up of your payment history, your outstanding debts and how often you apply for credit. Most lenders will use your FICO score. If you have a score of over 700, you should have no problem finding financing.

The best way to improve your credit score is to pay your bills on time. You can also pay off your credit card debt and hold off from applying for new credit to raise your score.

It is best to review your report to make sure it is accurate well in advance. It may take time to clear up any errors before you apply for a mortgage.

In today's real estate market, sellers like to work with buyers who are pre-approved for a mortgage. Pre-approval means that you have submitted a complete loan application and that the lender has verified your information, checked your credit and determined how much mortgage you can borrow. When you are preapproved, the lender is saying that you can borrow a certain dollar amount.

With pre-approval, the seller knows you have financial backing and you know exactly how much you can spend. This keeps you from a lot of stress of worrying if you will be approved for a mortgage for your dream home. You already know what you can afford.

Take the time to prepare to buy a home before you even start looking, it will save you a lot of stress and make the process much easier.

Real estate investing - some tips on investing in apartment buildings

Once you have decided that you want to invest your money in something or just want to get rich more quickly than with a regular job, you have many options to choose from. One rather profitable investment seems to be the real estate investing business, which is at the height of its popularity nowadays.

Having chosen real estate investing is just the very first step and you have many more choices to make. You could start for example investing in single-family homes or go for commercial estates and apartment buildings. Generally, you may have to invest less to buy a single-family home, however you can make significantly more money if you choose apartment buildings or commercial buildings for your real estate investing. Moreover, though apartment buildings may seem to be risky sometimes, they can actually provide a more stable income than single-family homes do. Here, I will present some tips for real estate investing in apartment buildings.

The First Steps

As an essential very first step, if you do not know enough about real estate investing, you will have to educate yourself because money from real estate investing comes from diligent, hard work and this hard work already starts at the basics. If you do not have the necessary theoretical background, it is very likely that your real estate investing will turn out to be a failure, resulting in your going bankrupt. So educate yourself, get education in financial matters and in real estate investing, you may have a university degree in a related subject, or you may have to learn everything from scratch. Read books, search for tips on the internet and get the advice of some experts. Some websites or even books may present you with a get rich quick-scheme, and you can possibly get quite rich quickly in real estate investing but only with the theoretical background.

Now, assuming you have learned everything you could, you should start exploring the market of the apartment buildings. Look into many apartment buildings, their finances, the possible income and the necessary expenses. You should also pay close attention to their locations. As a general suggestion, buying apartment buildings to rent out later is best in relatively good neighborhoods. In excellent neighborhoods you may not have as many tenants, as more people want to buy houses in these areas. However, in poor neighborhoods, though the apartment building may be cheaper, your income will not be as stable as a result for example of the tenants not being as trustworthy as in better areas, and you may also face additional problems. After exploring the market thoroughly you can now buy one or several apartment buildings.

Tips On Managing Apartment Buildings

Naturally, real estate investing does not stop when you buy the apartments. You will have to maintain them, manage them and the more you work with them the more income you will be getting.

You will perhaps be able to increase your income by what some call forced appreciation. If you spend on your apartment building, get washing machines, paint the walls, renovate the buildings, get new equipment or generally anything that raises the standard of living in the apartment you will be able to ask for more rent, and your expenses will come back to you in the form of income in no time at all. This strategy is not too risky, as tenants will appreciate a better environment and will be ready to pay a little more for that.

You may also consider transforming your real estate investing into a source of passive income. You may be able to live your life, be with your family, travel or manage your other job, while having a stable income every month from the apartment buildings. You can hire a professional managing company to do the work for you or, especially if the apartment complex is smaller, a live-in manager to do the work in place of you and you will be able to sit back and relax.

On the whole, real estate investing and investments in apartment buildings can be really lucrative. And especially with apartment complexes, if you have enough theoretical background and have researched your possibilities thoroughly it is very likely that you will have a high income in just a few months.

No more financial distress foreclosure assistance provided

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Being in a difficult financial situation is no picnic and most people have a hard time trying to cope with the possibility of losing their homes. Everyone dreads foreclosure and unfortunately, a large percent of those who are in debt see no other way around. In an effort to prevent such drastic measures from being taken, Arizona foreclosure prevention companies have started to present their solutions online hoping that more homeowners would seek assistance in order to stop foreclosure. They service the ones with multiple financial debts, bad credit and also those who are late on payments. The many years of experience can be noticed in the quality of services provided and they are especially to be prized when it comes to the foreclosure assistance provided.

Aside from credit repair, Phoenix foreclosure prevention consists of repayment plans and refinancing options. By resorting to experts in the field, homeowners are not forced anymore to accept the foreclosure of their properties and they can benefit from some of the most ingenious strategies. If you are late on payments and creditors have threatened you with foreclosure, you have to find someone to provide the help you so much need. If you do nothing, you will end up losing your home and regretting it all your life. With the aid of a specialized company in Arizona foreclosure, you will be provided with more than one option and you will definitely feel glad that you have taken such a decision.

Let’s talk about the possibility of refinancing and how you can use that solution in order to stop foreclosure. If you have a home loan and you are finding difficult to pay the monthly rates, then you can resort to the services of experts in the field in order to discuss the possibility of refinancing. The general amount of the loan will be raised of course but you will be able to pay your debts and escape the dreadful foreclosure. You have to pay increased attention when it comes to refinancing as the terms of the loans will change and you will have to pay an interest rate that is greater than usual. Make sure that this is the decision you want to take and that you are able to meet up to the demands of the new situation.

No matter if you go for credit repair, refinancing or actual selling of the property, the important thing is to ask for help. Listen carefully to what the specialists in foreclosure have to say and research information about the Arizona foreclosure law. Be realistic and don’t expect miracles to happen. Find a company that is dedicated to your goals and that wants to help you stay in your home. Foreclosure help is available for all those out there in financial distress and these services are invaluable when it comes to avoiding foreclosure. A true professional is not concerned with the reasons that got you into debt in the first place and is occupied with finding solutions that will best correspond to your case. State foreclosure assistance is available and these specialists will come up with intelligent plans that will allow you to manage your financial obligations much better in the future. It is very easy to go online and ask for foreclosure assistance, so don’t hesitate too much and ask for help.

Niche social networking for the realtor

Facebook and MySpace are starting to get recognized as useful tools in networking for the online realtor. However, as social networking sites have become one of the front runners in connecting people on the Internet, people are starting to get interested in “niche” social networking: sites that connect people interested in specific subjects.

Active Rain is a network that has taken this concept and turned it into a growing community of realtors, real estate-related professionals and people looking for the right agent for them. It has pages for individuals to post information about themselves and the services they provide, forums, blogs, and a Q&A forum where people can post questions about real estate. So far, 60,000 people have become members, which makes for a lot of exposure on the site.

One does not need to be an Internet guru to create a “niche” network, though. It can be done with existing networking sites and applications. The key is to start out creating decent, useful information on your focus in the market. If you are selling homes in the Sunset Hill neighborhood of Seattle, by all means, start a Facebook group or your own message board about the Sunset Hill neighborhood. Whatever it is, make sure that it allows people to weigh in, ask questions and post answers.

Post information on the schools there, and the issues about them, the job scene, house care when dealing with Seattle weather... anything and everything that has to do with Sunset Hill and Seattle homes. Make sure it's relevant, make sure it's up-to-date. Look beyond selling houses and post about what people buying homes in Seattle and Sunset Hill are concerned about.

If you have happy clients who have conducted their home transaction through you, keep in contact with them and let them know about the site. Many home owners would be interested to know about a site where they can find the latest in local property values, information about the new mall being built or the issues facing the schools of the Sunset Hill area.

If you have people coming to your site for information on their neighborhood, even if they aren't planning to buy or to sell, you have succeeded. The huge success of some sites through advertising has come about through popularity gained by giving stuff away for free. If you have a decent amount of steady visitors who come to your site for the information you post, you have a decent amount of leads who might mention you to real estate-minded friends and family.

Strong housing market in the coming months

Traditionally, spring is the season when the housing market picks up.

An increase in the number of buyers, helping boost the number of sales agree, points to a much stronger market in the coming months.

City bonuses have ignited the housing market in London.

Big houses are selling fast, often going to sealed bids.

In one case a property was reported to have attracted 33 bids.

Furthermore, the growth that started in the prime areas of London is showing signs of spreading out across the rest of the capital.

London continues to be the engine for national house price growth with values in the capital moving 1.2% higher over the month and by over 3% over the last quarter.

In contrast, growth in the regions away from the south of England has totaled less than 0.5% over the last three months.

The strong performance by London is down to an on-going mismatch between the number of homes coming to the market for sale and the growth in demand.

The Hometrack index shows the supply of homes for sale has grown by 14% over the last quarter, whilst demand has grown in excess of 50%.

Incomes are rising, interest rates are low, employment remains high, the demand for homes is growing with immigration and the creation of new households, and new house building still struggles to keep up with demand.

On the supply side, estate agents are reporting some increased levels of supply on their books as new sellers come to market perhaps encouraged by the recent upturn in prices.

But supply is still at a relatively low level and in spite of strong buyer interest, this, coupled with higher house prices choking off some demand, suggests that activity will fall towards its longer term average over the coming months.

Capital Economics' Ed Stansfield commented: "There is clearly still some appetite for buying at these high prices and banks and building societies seem to be keener than ever to lend the money.

As long as interest rates remain low nothing too bad can happen."

How to build a million pound property portfolio

Looking to quickly build a million pound property portfolio? You could try a high risk and speculative technique that has been used over recent years by investors hoping to make big profits from property.

The technique relies on re-mortgaging and negotiating good discounts on off-plan property to take a Ј50,000 deposit and turn it into a million pound property portfolio within a couple of years or less.

How does it work?

The technique only works in areas where house prices are rising fast and opportunities exist to purchase off-plan properties, where discounts of up to 15% are not uncommon.

Investors begin by purchasing one or two off-plan properties. These are properties that are not yet fully developed or have only just received planning permission. Developers tend to offer larger discounts to people who are prepared to buy properties at this stage of the build.

On completion, the investor will refinance the properties. A combination of rising house prices and the discounts gained at purchase, ensure that the property is refinanced at a higher figure than the original purchase price. The extra money gained through refinancing is then be used as a deposit for another two properties.

This cycle will be repeated a number of times by the investor until they have built up a strong portfolio of investment properties, with a combined value of more than a million pounds.

High-risk strategy

Sounds easy, so why doesn't everyone do it? Although many investors have made a lot of money using this technique over recent years, it does contain a very high element of risk and relies on a number of market conditions being right.

Potential obstacles include:

-- Falling house prices

-- Inability to obtain genuine off-plan discounts

-- Poor quality or undesirable developments

-- Difficulty in finding tenants to maintain rental income that in turn pays the mortgage costs

-- Potential capital gains tax problems if the properties are sold

Further advice

Before deciding to use this property investment technique, it is essential to get further advice on the legal, tax and financial issues.

A number of property investment companies exist to help advise their members on these very speculative investments, but be wary of the less scrupulous companies that charge their members Ј1,000s to attend seminars or build portfolios on their behalf.

Is an old home for you the cons

So you think you might like to buy an old home? Perhaps even something old enough to be historic? It’s a good idea to carefully evaluate the pros and cons before you decide. There are plenty of both. Will the pros be valuable enough for you to be willing to cope with the cons? Where shall we start? With a cautionary tale, I think.

The Cons of An Old Home

In 1972, my husband and I bought a house built in about 1825. We moved in on August 15th. My husband had an out of town business meeting and left about 5 AM the next day. (What makes him so smart?) About an hour later, I started downstairs and flipped the switch to turn on the chandelier in the downstairs hall. Boy did I get light. There was a flash, and then what looked like lightening ran up the cord. I turned the switch off, but the fireworks continued. I ran and yelled for our sons (10 and 11 years old at the time). We got out a door off another hall and ran to our next door neighbor’s house to call the fire department. (This is a very exciting way to meet one’s new neighbors.) The fire department was really fast and got to our home before we got back ourselves.

By the time my husband returned late that evening, we had been visited by not just the fire department, but also an electrician (old wiring needed to be reworked and a fuse box replaced with circuit breakers), a painter (to get a price on fixing water and fire damage), and a floor refinisher (same reason as the painter), and both our sons had been offered marijuana. (Did I mention that beautiful old houses are often located in intercity areas and sometimes the whole neighborhood has not yet been completely restored to its original state of gentility?) We were asking ourselves, “What have we done?”

Well, we had the wiring fixed, put off having the floors worked on and did the painting ourselves. We also paid tuition and fees to keep the boys in their old school district.

You have to be flexible to happily live in an old house. Nothing is a standard size. Right angles are purely coincidental. (The water damage mentioned above had showed us that the floor on the outside edge of the front hall is about six inches higher than floor on the far side of the living room.) Go to Lowes or Home Depot to buy a standard replacement this or that? Forget it. You’re probably going to have to fabricate it yourself or have it done. You need to either have a large home maintenance budget, be prepared to invest a lot of “sweat equity” or both.

We’ve lived in this same old house for over thirty years now. Items we’ve had adventures with include:

1. Plumbing,

2. Bringing in more electricity,

3. Replacing the heating system,

4. Repointing the chimneys,

5. Having dampers made for the chimneys so heat doesn’t escape from them when they’re not in use (did I mention we have four working fireplaces?),

6. Increasing the insulation, and

7. Painting many, many times.

Our house is real wood, not vinyl, and the roof is standing seam tin – the original roof. That, of course, means there is a lot of surface to paint, and, since the house is two stories and has high ceilings, some of the surfaces are pretty high. (Did I mention that my husband has fallen off the roof twice?) We’re in the process of having our home painted (not a do it yourself project this time) yet again. The bids we got ranged from $15,000 to $20,000. (Did I mention you need a larger maintenance budget with an old house?)

Whew! I think the cons are clear, don’t you? Owning an old home is wonderful. Just make sure you understand what you are getting into.

Being comfortable with your home purchase

Let's get down to brass tacks with the home buying process. You as a buyer are spending a lot of money and have the right to be comfortable and happy with your purchase right? Of course you do. So essentially the question is what needs to be done in order to ensure that this is so? Well, probably the most important things is communication. It's a good idea to remember that your realtor is there for more than simply helping with some contracts. Your realtor is your info source of information on anything that you might not know or be familiar with. The more you communicate with your realtor the smoother this process will be.

Another way to ensure that you are completely happy with the home that you have bought is to never settle for anything less than what you need. This happens a lot when buyers are too eager to purchase quickly and in that quickness, things get overlooked. Remember that this is going to be your home, take the time to learn everything you can about the home in question. Does it have enough room for you and your family? Is there some extra room in case your family grows? Forward planning is an essential part of buying a home, and should never be overlooked.

When everything is said and done you should be left feeling like you have made the most intelligent purchase of your life. You should also have a financial arrangement that fits your lifestyle and payment abilities. In order to make this happen you need to be in complete control of your financial life, you should have your credit completely sorted out and dealt with so that there are no bridges that have to be crossed in order to secure the necessary funds for the purchase. Follow the advice of your realtor and the process should be a lot more fun than it is stressful.