The annual house price inflation rate has dropped to its lowest level in nearly a year following slow growth this month, new figures show.
According to Nationwide building society, there was only a 0.7 per cent increase in house prices during September.
While this was an improvement on August's 0.6 per cent figure and overcame predictions that price growth would take a further dip to hit 0.4 per cent, statistics for the entire year fell to their slowest growth rate since last October.
The fact that inflation continued at all is testimony to the strength of the market which is still fuelled by buyer demand, however Nationwide suggested purchases are likely to drop due to the high cost of borrowing due to the recent interest rate rises.
In addition, Nationwide economist Fionnuala Earley warned that the credit crisis could see banks pass on the increased charges they are facing to customers by raising fees and interest on loans.
"The message from lenders is clearly that from now on, risk must have its price," she said.
"As a result, highly leveraged borrowing will remain less attractive and lending volumes in this segment may decline."
This may, however, be avoided if the Bank of England moves to reduce the base rate of interest in the future, which Nationwide said may be on the cards as it suggested the outlook on rates had "shifted from hawkish to dovish".
http://www.stride.co.uk/home-buying-and-hips/house-price-growth-slowest-in-a-year-18297075
Friday, September 28, 2007
What is an Exclusive Buyer's Agent?
he term "Exclusive Buyer Agent", often called "Buyer's Brokerage", came about in the mid-1980s from a lawsuit involving the Sunnyvale Association of Realtors and the National Association of Realtors. Real estate agents and state agency laws throughout the United States were affected.
Prior to the decision, SELLERS and their (listing) agents were stuck with the legal responsibility for any mistakes, half-truths or lies that were made by any one of hundreds of subagents who worked on seller listings which were acquired from the multiple listing service (mls). BUYERS were at the mercy of their own agents, who were really subagents of sellers. These subagents were getting paid by sellers and were legally working for sellers, even when "representing" a buyer. The law at the time mandated that they had to make every effort to get the HIGHEST possible price for their fiduciary, the seller. Any provable action to the contrary could involve them in a lawsuit and/or put their license at risk. Buyers were classified as customers. Sellers were classified as clients.
After the lawsuit ended in the mid-1980s, agents can choose to work as "buyers" agents regardless of who pays them, providing that certain prescribed paperwork is properly done. Buyers agents are now obligated to get the LOWEST possible price for THEIR fiduciary, the buyer.
Equally important, listing agents everywhere are now allowed to declare "No Subagency Offered", avoiding the consequences of any misrepresentations made by subagents.
But what happens when a buyer's agent shows their own listing to a buyer? Or, what if they show their office listing(s) to a buyer? Then, they have a legal and moral obligation to their other fiduciary, the seller. The question comes up, "Who are they really working for?" In this case they are working for the seller (when showing their own listings) or as a subagent (when showing company listings.) They can not also be agents of the buyer except when acting as a dual agent.
Although subagents or dual agents can work with buyers, they are not working exclusively FOR a buyer. To act as an Exclusive Buyers Agent, an agent must fill out certain disclosure forms for the buyer to understand and sign. Agents who are truly Exclusive Buyer Agents will guarantee exclusive representation and loyalty to the buyer, including best efforts to get the lowest possible price at the best possible terms.
It is estimated that only 1% of all agents in the Bay Area are Exclusive Buyer Agents. How does one know if an agent is an Exclusive Buyer Agent? Typically they will discuss the subject of agency up front, explain the laws, provide a copy of a state mandated agency disclosure form and put their commitment in writing with a "Buyer Broker Agreement", and guarantee that they do not take seller property listings. Any agent showing homes without doing these things is probably not an "Exclusive Buyer Agent".
http://www.buyers-advocate-realty.com/rprt1.htm#home
Prior to the decision, SELLERS and their (listing) agents were stuck with the legal responsibility for any mistakes, half-truths or lies that were made by any one of hundreds of subagents who worked on seller listings which were acquired from the multiple listing service (mls). BUYERS were at the mercy of their own agents, who were really subagents of sellers. These subagents were getting paid by sellers and were legally working for sellers, even when "representing" a buyer. The law at the time mandated that they had to make every effort to get the HIGHEST possible price for their fiduciary, the seller. Any provable action to the contrary could involve them in a lawsuit and/or put their license at risk. Buyers were classified as customers. Sellers were classified as clients.
After the lawsuit ended in the mid-1980s, agents can choose to work as "buyers" agents regardless of who pays them, providing that certain prescribed paperwork is properly done. Buyers agents are now obligated to get the LOWEST possible price for THEIR fiduciary, the buyer.
Equally important, listing agents everywhere are now allowed to declare "No Subagency Offered", avoiding the consequences of any misrepresentations made by subagents.
But what happens when a buyer's agent shows their own listing to a buyer? Or, what if they show their office listing(s) to a buyer? Then, they have a legal and moral obligation to their other fiduciary, the seller. The question comes up, "Who are they really working for?" In this case they are working for the seller (when showing their own listings) or as a subagent (when showing company listings.) They can not also be agents of the buyer except when acting as a dual agent.
Although subagents or dual agents can work with buyers, they are not working exclusively FOR a buyer. To act as an Exclusive Buyers Agent, an agent must fill out certain disclosure forms for the buyer to understand and sign. Agents who are truly Exclusive Buyer Agents will guarantee exclusive representation and loyalty to the buyer, including best efforts to get the lowest possible price at the best possible terms.
It is estimated that only 1% of all agents in the Bay Area are Exclusive Buyer Agents. How does one know if an agent is an Exclusive Buyer Agent? Typically they will discuss the subject of agency up front, explain the laws, provide a copy of a state mandated agency disclosure form and put their commitment in writing with a "Buyer Broker Agreement", and guarantee that they do not take seller property listings. Any agent showing homes without doing these things is probably not an "Exclusive Buyer Agent".
http://www.buyers-advocate-realty.com/rprt1.htm#home
The Ins and Outs Of Home Offices
You have a desk, a computer, a phone and a personal trashcan. Does that qualify as a home office? If you watch TV while you work, can you deduct your cable bill? What are the rules -- and what are the consequences if you break them?
Lots of people work at home. A teacher may bring home a pile of papers to grade; a business executive may spend his weekend writing a report; a salesman may sit down at his home computer every night and log his miles and expenses. But even if you have a specific place in your home for activities such as these, you may not be able to claim a home office deduction on your taxes.
The IRS has very strict rules on home offices. If you're considering taking a home office deduction, ask yourself these questions first:
Do you have a room that you use exclusively for business?
Your kitchen table, the computer in your basement recreation room or a desk in the corner of your bedroom probably will not qualify. You must have a part of your home that is used only for business. Your kitchen table, for example, is obviously used for other purposes and therefore is disqualified as a home office location.
Do you have an office somewhere else?
If your employer provides an office and does not require you to work at home, you can’t claim a home office deduction. Sure, you might bring home projects to finish up, but your main place of work is elsewhere.
Do you use your home office on a regular basis?
If you only use your home office occasionally, you can't take a deduction for it -- even if you don't use the area for any other purpose.
Does your job require a home office?
In order to take the home office deduction, your home office must be your principal place of business or the place where you regularly meet with customers.
Because the rules are so stringent, you should consult your tax advisor regarding the ins and outs of the home office deduction. If you qualify, it can be a great tax break. You can deduct a percentage of your utility bills, mortgage payments, home repairs and other costs. However, if you bend the rules you could be subject to fines and penalties. Even if your claim is legitimate, the home office deduction can be a "red flag" to the IRS, triggering an audit.
http://www.homes101.net/home-buying-tips/bt81
Lots of people work at home. A teacher may bring home a pile of papers to grade; a business executive may spend his weekend writing a report; a salesman may sit down at his home computer every night and log his miles and expenses. But even if you have a specific place in your home for activities such as these, you may not be able to claim a home office deduction on your taxes.
The IRS has very strict rules on home offices. If you're considering taking a home office deduction, ask yourself these questions first:
Do you have a room that you use exclusively for business?
Your kitchen table, the computer in your basement recreation room or a desk in the corner of your bedroom probably will not qualify. You must have a part of your home that is used only for business. Your kitchen table, for example, is obviously used for other purposes and therefore is disqualified as a home office location.
Do you have an office somewhere else?
If your employer provides an office and does not require you to work at home, you can’t claim a home office deduction. Sure, you might bring home projects to finish up, but your main place of work is elsewhere.
Do you use your home office on a regular basis?
If you only use your home office occasionally, you can't take a deduction for it -- even if you don't use the area for any other purpose.
Does your job require a home office?
In order to take the home office deduction, your home office must be your principal place of business or the place where you regularly meet with customers.
Because the rules are so stringent, you should consult your tax advisor regarding the ins and outs of the home office deduction. If you qualify, it can be a great tax break. You can deduct a percentage of your utility bills, mortgage payments, home repairs and other costs. However, if you bend the rules you could be subject to fines and penalties. Even if your claim is legitimate, the home office deduction can be a "red flag" to the IRS, triggering an audit.
http://www.homes101.net/home-buying-tips/bt81
Ready To Be A Landlord? - Finding A Great Rental Property
Think rental property might make a good investment? It can -- if you choose wisely!
Just as with any real estate purchase, location counts! Your best bet for a solid rental property will probably be in an established, high-demand rental area, with easy access to schools, universities, shopping, and other amenities. Avoid "white elephant" buildings with an unusual design or location, or isolated units stuck out in the boondocks. Look for a location that you would find attractive if you were renting.
Once you select a general area, you'll need to decide whether you prefer single-family homes or multi-unit apartments. Both can make good rental properties, though there are some important differences. Single-family houses are often in shorter supply as rentals. And because they're more desirable from a tenant's standpoint, they generally command a higher rent per square foot than apartments. A single-family home will also have a broader resale appeal when it comes time to sell. But it will be harder to buy a single-family residence at a price that allows you to break even or generate a positive cash flow unless you're prepared to invest a hefty amount down.
Multi-unit apartment buildings, by comparison, may experience a somewhat higher turnover rate than a single-family house. But they are often priced to allow you to generate a close-to-break-even cash flow with a smaller down payment.
Thinking seriously about a particular property? Run the numbers carefully before you decide to buy. Ask the seller for information about the building's vacancy rate over the last 2-3 years, and factor in anticipated vacancies when you estimate cash flow. Be sure to include a reasonable allowance for maintenance. Copies of recent maintenance records can tell you not only what has been done to the building lately but also what hasn't.
TIP: For multi-unit buildings, make sure you're given the opportunity to inspect all units personally before closing, not just a "representative" apartment.
TIP: During the walkthrough, ask current tenants if any repairs need to be done to their unit, and listen to any complaints about maintenance. Unless they're fixed before closing, these are things you can expect to hear about later!
TIP: Looking for a bargain? Chat with a REALTOR® whose office also handles rental property management. They may know of owners anxious to unload a rental at a discount price!
http://www.homes101.net/home-buying-tips/bt26
Just as with any real estate purchase, location counts! Your best bet for a solid rental property will probably be in an established, high-demand rental area, with easy access to schools, universities, shopping, and other amenities. Avoid "white elephant" buildings with an unusual design or location, or isolated units stuck out in the boondocks. Look for a location that you would find attractive if you were renting.
Once you select a general area, you'll need to decide whether you prefer single-family homes or multi-unit apartments. Both can make good rental properties, though there are some important differences. Single-family houses are often in shorter supply as rentals. And because they're more desirable from a tenant's standpoint, they generally command a higher rent per square foot than apartments. A single-family home will also have a broader resale appeal when it comes time to sell. But it will be harder to buy a single-family residence at a price that allows you to break even or generate a positive cash flow unless you're prepared to invest a hefty amount down.
Multi-unit apartment buildings, by comparison, may experience a somewhat higher turnover rate than a single-family house. But they are often priced to allow you to generate a close-to-break-even cash flow with a smaller down payment.
Thinking seriously about a particular property? Run the numbers carefully before you decide to buy. Ask the seller for information about the building's vacancy rate over the last 2-3 years, and factor in anticipated vacancies when you estimate cash flow. Be sure to include a reasonable allowance for maintenance. Copies of recent maintenance records can tell you not only what has been done to the building lately but also what hasn't.
TIP: For multi-unit buildings, make sure you're given the opportunity to inspect all units personally before closing, not just a "representative" apartment.
TIP: During the walkthrough, ask current tenants if any repairs need to be done to their unit, and listen to any complaints about maintenance. Unless they're fixed before closing, these are things you can expect to hear about later!
TIP: Looking for a bargain? Chat with a REALTOR® whose office also handles rental property management. They may know of owners anxious to unload a rental at a discount price!
http://www.homes101.net/home-buying-tips/bt26
Buying vs. Renting
Is buying better than renting? It depends on whom you ask.
If you question your financial planner, she'll probably assert, "Yes!" and pull out a spreadsheet showing the investment and tax advantages.
If you ask a globetrotting couple you know, they'll probably disagree with her emphatically, arguing that a home will leave you little time or money for recreation.
The truth is, buying a home is a highly individual decision, dependent on a variety of lifestyle and financial factors. Ask yourself these questions to help determine if it's right for you:
How long do I plan to stay in my current community?
Homes take time to appreciate in value. If your employer's hinting around at relocation, or the walls of your small town are closing in on you, consider that you might only break even - or even take a loss - if you have to sell your home quickly.
If your job situation seems secure, however, and you enjoy the amenities your community offers, buying is a next logical step.
Do I have time to maintain a home?
Unless you're currently leasing a house and handling all the maintenance yourself, home ownership will generally require more of your time than renting. Of course, for some homeowners, the associated work - raking leaves, mowing the lawn and painting the family room - serves as recreation in itself.
Some buyers will purchase a condominium in order to avoid time-consuming outdoor chores. If you're looking at that option, be sure to factor in property management fees in your housing estimates.
Can I afford it?
Most renters assume that buying costs considerably more than renting, but you may be surprised. First, if you consider the monthly total on your rent, utilities and renter's insurance, you might be paying more for housing than you thought.
Second, even if you don't have tens of thousands saved for the standard 20 percent down, many lenders today offer lower down payment options. Some will even finance your closing costs. Remember though, the more you finance, the more your monthly payments will be.
Do I want to personalize my living quarters as I please?
Maybe you've grown tired of the eggshell white walls of your cookie-cutter apartment, or you can't convince your landlord to replace the brown shag carpeting in your rental. When you own your home, you can mostly do with it as you please - paint the kitchen in Green Bay Packers gold, cover your den in knotty pine paneling or wallpaper your bedroom ceilings in Laura Ashley florals. True, it all costs money - but when you buy your own place, it's a choice you get to make.
http://www.homes101.net/home-buying-tips/bt25
If you question your financial planner, she'll probably assert, "Yes!" and pull out a spreadsheet showing the investment and tax advantages.
If you ask a globetrotting couple you know, they'll probably disagree with her emphatically, arguing that a home will leave you little time or money for recreation.
The truth is, buying a home is a highly individual decision, dependent on a variety of lifestyle and financial factors. Ask yourself these questions to help determine if it's right for you:
How long do I plan to stay in my current community?
Homes take time to appreciate in value. If your employer's hinting around at relocation, or the walls of your small town are closing in on you, consider that you might only break even - or even take a loss - if you have to sell your home quickly.
If your job situation seems secure, however, and you enjoy the amenities your community offers, buying is a next logical step.
Do I have time to maintain a home?
Unless you're currently leasing a house and handling all the maintenance yourself, home ownership will generally require more of your time than renting. Of course, for some homeowners, the associated work - raking leaves, mowing the lawn and painting the family room - serves as recreation in itself.
Some buyers will purchase a condominium in order to avoid time-consuming outdoor chores. If you're looking at that option, be sure to factor in property management fees in your housing estimates.
Can I afford it?
Most renters assume that buying costs considerably more than renting, but you may be surprised. First, if you consider the monthly total on your rent, utilities and renter's insurance, you might be paying more for housing than you thought.
Second, even if you don't have tens of thousands saved for the standard 20 percent down, many lenders today offer lower down payment options. Some will even finance your closing costs. Remember though, the more you finance, the more your monthly payments will be.
Do I want to personalize my living quarters as I please?
Maybe you've grown tired of the eggshell white walls of your cookie-cutter apartment, or you can't convince your landlord to replace the brown shag carpeting in your rental. When you own your home, you can mostly do with it as you please - paint the kitchen in Green Bay Packers gold, cover your den in knotty pine paneling or wallpaper your bedroom ceilings in Laura Ashley florals. True, it all costs money - but when you buy your own place, it's a choice you get to make.
http://www.homes101.net/home-buying-tips/bt25
Buying A Second Home - Living The Dream
It used to be that most people didn't buy a second home until they sold their first one. But times have changed and more and more people are realizing that it might make more sense than they had originally thought. There are a couple main reasons why people buy a second home, to get away from the day-to-day stress now or in some cases later, by saving it for retirement. And the other reason is the investment opportunities. Whatever your priority, be it peace of mind, or financial gain, or both, for that matter. Owning a second home may be the right choice for you and your family.
There are so many tax advantages, you may not be aware of all of them. You can write off 100% of the mortgage interest, and you can write off property taxes. New IRS rules allow for a capital gain on the principal residence whenever people sell. Up to $250,000 for singles, and up to $500,000 for couples. Living in your second home for two years or more, entitles you for the same capitol gains break. If the return on your investment bears more than the bank interest will pay you, then you just made a smart investment.
Another thing to consider is that you have the option to rent in order to cover your second mortgage. You need to decide if you are going to declare it as a vacation home, or rental property though, because the IRS has different rules for both. Also remember that if you declare it as a rental your mortgage could be slightly higher. So the benefits include tax breaks, a getaway for the family on vacations or holidays, a future retirement home, renters making your mortgage payments for you, or just a smart investment. On the downside, there is a second house payment, potentially higher mortgage if declared as rental property, and some hassle in upkeep involved. Just make sure to look at all your options and every angle to see if this is the right move to make for you.
http://www.homes101.net/home-buying-tips/bt36
There are so many tax advantages, you may not be aware of all of them. You can write off 100% of the mortgage interest, and you can write off property taxes. New IRS rules allow for a capital gain on the principal residence whenever people sell. Up to $250,000 for singles, and up to $500,000 for couples. Living in your second home for two years or more, entitles you for the same capitol gains break. If the return on your investment bears more than the bank interest will pay you, then you just made a smart investment.
Another thing to consider is that you have the option to rent in order to cover your second mortgage. You need to decide if you are going to declare it as a vacation home, or rental property though, because the IRS has different rules for both. Also remember that if you declare it as a rental your mortgage could be slightly higher. So the benefits include tax breaks, a getaway for the family on vacations or holidays, a future retirement home, renters making your mortgage payments for you, or just a smart investment. On the downside, there is a second house payment, potentially higher mortgage if declared as rental property, and some hassle in upkeep involved. Just make sure to look at all your options and every angle to see if this is the right move to make for you.
http://www.homes101.net/home-buying-tips/bt36
Buying Your First Home - Making The Right Move
There are few things as rewarding as buying your first home. The sense of pride you feel can be enormous. When you make the decision to go from renting to owning, you are taking a step in the right direction. Home ownership can offer tax benefits, freedom to make decisions about your home, and investment benefits.
Still renting?
There are some benefits to renting; such as, short-term obligation, no commitment to maintenance, and no responsibility to other financial costs associated with ownership. But renting should be viewed as a temporary lifestyle. There are no long-term financial gains to renting. In some cases, monthly mortgage payments can be as low as renting. And by owning, you have an investment you can use as collateral.
Homes appreciate in value, especially in steadily growing communities. And, you can actually reduce your house payment when interest rates fall, by refinancing. You can't say that about renting! In fact you can count on your rent increasing annually and in some cases semi-annually.
Owning a home
Home ownership is a highly leveraged investment that can yield substantial profit on a nominal front-end investment. However, there can be costs incurred in ownership versus renting. Such as the down payment, maintenance costs and yearly tax payments. But again, these costs are being applied to an investment. At the end of the day, if you rent, you pay until your lease ends with nothing to sell. In ownership, the money you spend goes towards your profits from appreciation in the value of your home.
Did you ever wonder how some people afford such expensive homes? Chances are that may be their second, third, or even fourth home! Don't be discouraged if you can't afford the house you want the first time you buy. Make sure the area is right and you buy a house that fits your needs and budget. Buying at or below your price range allows you to use the extra money to do home improvements. Then in a few years time you can put the house up for sale, sometimes at a ten to thirty percent profit. You can then take that profit and put it towards your next home - bigger, newer and so on.
As for evaluating the risk in buying a home, do your homework. Take some time to investigate the communities you are interested in, at least a few months in advance to buying. Make sure you look at the growth of residential and commercial building. Look into the school systems to make sure they are right for your children. By spending time in your desired communities before hand, you can make an informed decision regarding whether or not the community is right for you and your family. Don't make the mistake of buying in an area where the housing and property are more expensive in hopes of increasing your profit. More money spent on a property up front does not guarantee you an increase in property value over less expensive communities. Don't be in a hurry to just buy a house. Buy the right house; remember you may be there a very long time. By utilizing your real estate agent's expertise and experience, you can find the house that is perfect for you.
http://www.homes101.net/home-buying-tips/bt31
Still renting?
There are some benefits to renting; such as, short-term obligation, no commitment to maintenance, and no responsibility to other financial costs associated with ownership. But renting should be viewed as a temporary lifestyle. There are no long-term financial gains to renting. In some cases, monthly mortgage payments can be as low as renting. And by owning, you have an investment you can use as collateral.
Homes appreciate in value, especially in steadily growing communities. And, you can actually reduce your house payment when interest rates fall, by refinancing. You can't say that about renting! In fact you can count on your rent increasing annually and in some cases semi-annually.
Owning a home
Home ownership is a highly leveraged investment that can yield substantial profit on a nominal front-end investment. However, there can be costs incurred in ownership versus renting. Such as the down payment, maintenance costs and yearly tax payments. But again, these costs are being applied to an investment. At the end of the day, if you rent, you pay until your lease ends with nothing to sell. In ownership, the money you spend goes towards your profits from appreciation in the value of your home.
Did you ever wonder how some people afford such expensive homes? Chances are that may be their second, third, or even fourth home! Don't be discouraged if you can't afford the house you want the first time you buy. Make sure the area is right and you buy a house that fits your needs and budget. Buying at or below your price range allows you to use the extra money to do home improvements. Then in a few years time you can put the house up for sale, sometimes at a ten to thirty percent profit. You can then take that profit and put it towards your next home - bigger, newer and so on.
As for evaluating the risk in buying a home, do your homework. Take some time to investigate the communities you are interested in, at least a few months in advance to buying. Make sure you look at the growth of residential and commercial building. Look into the school systems to make sure they are right for your children. By spending time in your desired communities before hand, you can make an informed decision regarding whether or not the community is right for you and your family. Don't make the mistake of buying in an area where the housing and property are more expensive in hopes of increasing your profit. More money spent on a property up front does not guarantee you an increase in property value over less expensive communities. Don't be in a hurry to just buy a house. Buy the right house; remember you may be there a very long time. By utilizing your real estate agent's expertise and experience, you can find the house that is perfect for you.
http://www.homes101.net/home-buying-tips/bt31
Why use a Fast House Buyer when Selling your Home?
There are many reasons why people are now selling their properties to companies which buy homes for cash.
Firstly if they decide to sell by this method they are in control of the sale of their home and therefore are not reliant on Estate Agents to make that all important sale for them.
Secondly, by using this method of selling their property they are provided with some privacy as there will being no “for sale” boards outside the house and not having to deal with the endless viewings that the Estate Agent sets up. Plus these companies provide them with complete confidentiality when buying the property.
Another advantage to selling a property by this method is that people are able to decide upon a moving date which is agreeable to them rather than to the purchaser and sometimes you will find that these companies will purchase a property because the seller has to sell (say due to a divorce, need to relocate quickly etc) and allow them some concession on the time period for when they leave the property.
Also many of these companies are willing to purchase all sorts of properties and will even consider a property that is in need of some renovation.
The next point people should consider when thinking of selling their home by this method is that they may well be in a situation where they wish to break a property chain rather than waiting to find the right purchaser for their home as they have already found the property that they want to buy. It has been found that being in a property chain can be quite stressful especially if people are having to do everything within a certain timescale (i.e., needing to relocate because of work commitments etc., or because they are likely to lose the property that they wish to buy).
These companies offer you the chance to sell your property in a quick and efficient timescale and will provide you with a competitive price for your property. Also by selling your property by this method you will find that you will save on having to pay Estate Agent, Survey and Legal Fees.
Finally, such companies will normally be able to provide you with a offer for you property within 24 hours of viewing it.
http://www.wirral-estate-agent.info/Why-use-a-Fast-House-Buyer-when-Selling-your-Home.php
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