Buy Properties Below Market Value

When advertising your home for sale by owner, you will undoubtedly come into contact with a variety of people.
(there is a free ebook: 101 Tips For Selling Your House,for you to download, from a link at the bottom of this page).
You may come into contact with people of different ethnic groups or nationalities, people of different race, or even people with disabilities or handicaps. Situations can arise where discrimination against different types of people can be a violation of law, particularly regarding housing.
Most types of housing are covered under these laws with the exception of those dwellings that operate under shelter laws, for example exclusively for battered women or for the hearing impaired.
Under the Fair Housing Laws, it is illegal to, based on someone’s color, creed, nationality, sexual orientation, handicap, etc… refuse to sell or to rent housing; refuse to negotiate for housing arrangements; make housing unavailable; deny a dwelling; set different terms, conditions or privileges for sale or rental of a dwelling; provide differing housing services; claim falsely that housing is not available for rent, sale, or inspection; persuade owners to sell or rent (this is known as “blockbusting”); or deny access to membership in a service and / or membership related to the sale or rental of housing. All of the above, if violated, will result in prosecution and criminal charges being brought against the violator. The same, or similar criteria exist for mortgage lending for the purchase of a home.
There exist clauses in the laws that state it is illegal to threaten or coerce, to intimidate or interfere with anyone exercising a fair housing right.
Also, you may not advertise or in any other way make any statement that indicates a limitation or preference based on race, color, national origin, religion, handicap, etc… This prohibition against discriminatory advertising applies to single-family as well as owner-occupied homes that are otherwise exempt from the Fair Housing Act.
Housing discrimination is not always characterized by the slamming of the door in someone’s face or a bigoted remark being hurled at a potential homebuyer.
However, it can be just as ugly and just as hurtful to the would-be buyer. Even without this as deterrence from the act, it is against the law. As a seller, it is important to treat each and every person interested in your home with dignity and respect.
It helps to think of everyone as being a member of the human race instead of seeing them as being undesirable if they do not look like you.
With the legislation that exists, it is best to conduct the sale of your home in a business-like manner and treat the transaction with all seriousness and gravity without allowing personal preferences to interfere, as this is counter-productive to the ultimate goal: the sale of your home.
Your newspaper as well as other advertisements should be directed to the general public with the only descriptive language used being the language that describes your house alone. You must describe the demographic of your neighborhood and especially do not describe what “type” of person you would like to become interested in your house.
If these guidelines are followed, there should be only the technical difficulties of closing the transaction rather than the complex ones dealing with offensive and discriminatory practice.

Everyday, new homes are listed throughout the country. While there are many factors that can impact how quickly a particular home sells, one issue is often overlooked by frustrated sellers. If a home fails to entice any buyers within one month, chances are the listing price is not right. Generally, the listing price should be in line with the current market value of the home. However, many sellers don’t realize that the market value of a home is impacted by many more factors than simple square footage and the quality of the appliances. If you need help determining the market value of your home and setting the right price, talk with your real estate agent and consider some of the tips outlined here.
One of the first steps a seller may want to consider when determining the appropriate property value is a comparison with recently sold properties. By comparing the square footage, lot size and overall amenities of your home to those that have already sold, you and your agent may gain some valuable insight into the true market value of your property and assistance in setting the asking price. Also, as you get closer to putting your home on the market, try to keep track of other properties listed in the area. By looking at current listings, determinations can be made about how well homes in the neighborhood are selling and how your assessment of your own property compares with similar sellers.
Regardless of how long you have lived in the home, take account of your personal investment. If you have lived in the home for several years, you have probably made a number of repairs or upgrades to the property. As you prepare to list your home, take notes on any such improvements and consult your personal records if necessary. By assessing the value of improvements made to the property, you will be able to work with your agent to determine how your investment affects the current market value of your home.
One of the best ways to determine how your home’s amenities impact the value is to make a detailed list of the property’s features. Your list should include all recent updates to the property, any items that might require repairs and an assessment of the home’s overall condition. After compiling your list, work with your agent to establish how each individual feature impacts the overall value of the home and the eventual asking price.
When trying to calculate the market value of your property, you should also account for the neighborhood. Consider how factors such as nearby schools and the proximity to desirable businesses or recreation areas might interest prospective buyers. Furthermore, depending on what type of home you own, you may want consider the home’s location within the neighborhood. A home located at the end of a cul-de-sac can have added value for families with young children hoping to avoid high traffic streets.
After you have analyzed the previous factors, home buyers should try to work with their agent to set the right price for listing. A list price that is either too high or too low could pose a number of problems for a home seller.
If the list price on your home is too high, you may not receive any serious offers. After your home has been on the market for 30 days or longer, buyers may also come to see your property as less desirable. Furthermore, buyers expect sellers to reduce prices and be more responsive to offers if the home has spent more than a month on the market.
On the other hand, if the list price is too low, you will not earn what you truly deserve. In some cases, home buyers might also assume that the house has a number of flaws or is otherwise undesirable when the list price falls too far below the market value. After working with your agent to determine the market value of your home, you should consider setting your list price as close as possible to home’s current market value.
As you prepare to sell your home, there are a number of factors to consider when determining the appropriate property value and listing price. You will have a good starting point if you are able to educate yourself about both local and national market trends. Then, by gaining an understanding of how your home stacks up to the rest of the market, you will have an opportunity to set an informed price that corresponds to the home’s true market value. Finally, be sure to work with your real estate agent and let his or her experience and knowledge guide your decision.

When many people hear the term ‘property investment’ they automatically think of what they have read in the papers: falling house prices, fluctuating interest rates and the failing economy.They see this press. Take it to its word. And forget that hidden beneath its outer exterior the property investment market has got a lot to offer. It is not inaccessible either. All it takes to access the true potential of the property market is the knowledge to know where to look and ‘know how’ to make it happen.  Remember, despite all the hype, property is still an investment vehicle. A vehicle that gives investors – we mean you – the flexibility to control your involvement and how much time you invest within them.Take a look at stocks. Do you really understand how they work? Not many of us do, but we still invest in them because we know there is profit.But imagine what you could achieve with an investment that you could completely control? No worries. No fear. But knowing exactly where you.Well with property you can. Your choices will be endless.Real Estate Stocks and Mortgage instrumentsNow if you wanted to be a passive investor this is the route to take. Here you can place funds into the stock market in the form of equities of major national homebuilder firms, and they will do the rest for you.Or alternatively you can follow another investment strategy: discounted notes.The rules to this investment are simple.  Sellers quite often are quite happy to accept a mortgage from a buyer to begin with but later want to convert it to cash. To do this they need to sell the note to an investor – you – at a discount. And the rest? Well. Whilst they are free of the mortgage, you will be receiving monthly repayments from the buyer – when you have never even seen the house. How simple is that?Appreciation of property valuesThis one is the more traditional routes and one we’d most recommend if you plan to sell your properties later on.Take the current financial climate. You can now invest in properties at 70-80% of their original value without a second thought. Giving you instant free equity.Now consider this. After investing you decide to either rent your property out or live in it yourself. Over time, your property investment will begin to appreciate in value, and if it is anything like what we have experienced before, you will have access to a property that is greater in value than the top properties of 2007.And if you do eventually sell, you will not only experience a return on your investment… you’ll have that initial extra equity to boot too.General Price inflation in the economyEven if your properties are not appreciating in value – as properties are doing now – this is not the end of your property investment. No. Their value can also be affected by economic inflation.So let’s just say for example that you are developing some properties. If the cost of labour and materials is continually rising, then the cost to build an identical property could be more than the original. And if each property you build in one area is costing a bit more each time, then in turn their value as a complete development site will have risen.Meaning at the end your property values will be higher than they were to begin with.Cash flow and mortgage repaymentsCompared to traditional investments that require some money on your part to maintain and pay for them, with rental properties you don’t have to deal with that. Your tenants will essentially pay your repayments for you, whilst giving you an additional positive cash flow each and every month too.With figures like these it is easy to see why property is considered a stronger investment than stocks and a bank account – the gains are much more profitable.And here is the best part. Even if your rental income covers only the mortgage repayments. No more. No less. You will still have the joy of watching the equity in your property grow over time.Buying below market valueLook in the papers and you’ll read many reports of investors who are selling up in the current financial climate in order to maintain their profits. This is a big mistake on their part, but one you can take advantage of. You see they will be so keen to access the equity from it, they will be happy to sell it to you for below value. Great!Then there are other cases when a property has gone into a foreclosure. To sell the property and get their money back, lenders will often take less than the market value so that they can avoid any further marketing expense and begin again with a clear slate.Now here is the advice you have been waiting for… Find one of these properties and you will immediately enter into an equity position, purely based on profits.So if you do spot one… gets investing and buys low. The long terms profits will be incredible.Converting the use of your propertyImagine investing in a run down 5 bed property and being able to convert it into student accommodation or 2 apartments. You could potentially increase your rental income and benefit from having multiple tenants all within one property. Meaning there will always be someone living in your rental property.This is what is so great about property investment. You can do a similar thing to any type of property. Take for example this concept. You have just invested in some apartments that currently have low rental yields.With a little remodelling, you can convert these said apartments into condominiums, and nearly double your rental yields.Create new valueEvery region or neighbourhood goes through a price fluctuation at some point. So spotting a potential hot spot – before its property prices have increased – can be quite profitable.In this one area you can build up your property portfolio and sit back and watch as your properties appreciate in value. Perfect!Get the picture – property investment can offer you consistent ‘positive’ cash flows every single month, plus can come in all shapes and forms for you to choose from.So if you are looking to invest in rental properties consider your options for a moment. There is more to property investment than meets the eye.

Buying of real estate property is a very tricky and risky investment to make, especially if you are not knowledgeable enough about the market, or about the value of your real estate property.

A lot of people do not know exactly how to determine the value of their property, and end up either pricing it too high or too low, something that you would not want to do, especially if you want to be able to make the most out of your investment. People who price their real estate property too high will not be able to sell the property for obvious reasons.

The price of the property should be reflective of its value, which should be determined not according to your personal assessment, but to the assessment of the real estate market. If you do price your real estate property too low, on the other hand, you only end up getting the shorter end of the stick since you are getting less than what you should be getting from your investment.

In order to be able to put the right value over your real estate property, you will need to have a better understanding of the real estate market in order to get the most out of your real estate property.

One basis for determining the value of your real estate property is called the cost or summation approach. This method determines the value of the real estate property by reducing the cost of any improvements that needs to be done on the property from the value of the land of the property. Basically, what this method does is it makes a person decide if whether the cost of modifying the existing home would be cheaper as compared to buying another home which already has those features. This approach, however, may not be the best way to determine the market value of any real estate property since this method has non-market based components, which is most noticeable when their exists a limited demand of a property in the market.

Another way of determining the value of your real estate property is by comparing the price of similar properties that are being sold in the market with your own existing property. You get the sales prices of the properties that are similar to your own, and you take into considerations the differences that are comparable between the two properties in order to determine the fair market value of your property. However, this type of method is only effective if there are good comparable sales that exist.

If the property’s current rental value and passing income are known, then the property value would be easily determined as well, just as long as the market-determined equivalent yield of the property is present. Also, certain factors, such as the revitalization or rehabilitation of a particular area can also affect the sales prices of such properties.

Determining the value of your real estate property can be very difficult to do, especially if you have very limited to no knowledge and experience about the real estate market. One good way of being able to make sure that you give the appropriate value to your real estate property is by hiring the expertise of professionals.

Vanessa Arellano Doctorhttp://realestatepress.org

Property taxes are one of the largest line item costs incurred by apartment owners. However, many owners do not appeal effectively. Even though owners realize that property taxes can be managed and reduced through an appeal, some view taxes as an arbitrary estimate provided by the government which can’t effectively be appealed. It tends to boil down to the old adage, “You can’t fight city hall”.

Fortunately, the property tax appeal process in Texas provides owners multiple opportunities to appeal. Handled either directly by the owner or by a property tax consultant, this process should involve an intense effort to annually appeal and minimize property taxes. Reducing the largest line item expense has a significant effect in reducing the owner’s overall operating expenses. While it is not possible to entirely escape the burden of paying property taxes, it is possible to reduce taxes sharply, often by 25% to 50%.

Why some owners don’t appeal

Some property owners don’t appeal because they either don’t understand the process, or don’t understand that there is a good probability of achieving meaningful reductions in property taxes. Some owners believe that since the market value of their property exceeds the assessed value, then it is not possible to appeal and reduce the property taxes. Although appeals on unequal appraisal are relatively new, there is a clear-cut way to appeal property taxes at the administrative hearing level based on unequal appraisal. Unequal appraisal occurs when property is assessed inconsistently with neighboring properties or comparable properties. Also, some owners are reluctant to hire a property tax consultant, even though many consultants will work on a contingent fee basis, in which there is no cost to the owner unless property taxes for the current year are reduced.

Overview of appeal process

The following are the primary steps in the annual process for appealing property taxes:

· Request notice of accessed value
· File an appeal
· Prepare for hearing
. Review records
. Review market value appeal
. Review unequal appraisal appeal
· Set negotiating perimeters
· Administrative hearings
· Decide whether binding arbitration or judicial appeals are warranted
· Pay taxes timely

Requesting a notice of assessed value

Property owners have the option of requesting a notice of assessed value for their property annually. Section 25.19g of the Texas Property Tax Code provides the owner the option to request a written notice of the assessed value from the chief appraiser. Owners benefit from requesting and receiving a written notice of assessed value for each property because it ensures they have an opportunity to review the assessed value. This notice should be sent on an annual basis. The appraisal district does not have to send a notice of assessed value if the value increases by less than $1,000. However, if an owner was not satisfied with a prior year’s value and the value remained the same, the appraisal district probably will not send a notice of the assessed value for the current year. In this situation, the owner might forget to protest since a notice of assessed value for the property was not received.

How to file and appeal

On or before May 31st of each year, the property owner should file an appeal for each property. However, while many owners are comfortable with an assessed value, in many cases there is a basis for appealing. Two options for appealing include:

You can appeal by completing the protest form provided by the appraisal district and indicating both excessive value (market value) and unequal appraisal as the basis for appeal. In addition, the property owner can simply send a notice that identifies the property, and indicates dissatisfaction with some determination of the appraisal office. The notice does not need to be on an official form, although the comptroller does provide a form for the convenience of property owners. (You can access the protest form at www.cutmytaxes.com .)

House Bill 201 – helpful information

House Bill 201 is the industry jargon for a property owner’s option to request information the appraisal district will use at the hearing, and to receive a copy 14 days before the hearing. The name House Bill 201 is derived from the bill used to enact the law. The details for House Bill 201 are located in sections 41.461 and 41.67d of the Texas Property Tax Code. When filing a protest, the property owner should additionally request in writing that the appraisal district provide a copy of any information the appraisal district plans to introduce at the hearing. The appraisal district will typically require the property owner to come to the appraisal district office to pick up the information and charge a nominal fee, typically $0.10 per page. While the cost for House Bill 201 requests are quite low (typically $0.50 to $2.00 per property for residential and commercial) the information is invaluable in preparing for the hearing. In addition, filing a House Bill 201 request is important because it limits the information the appraisal district can present at the hearing to what was provided to the property owner two weeks before the hearing.

Preparing for the Hearing

Start by reviewing the appraisal district’s information for your property for accuracy. If the appraisal district overstates either the quality or quantity of improvements, this will justify a deduction. The next step is to review the information on market value and unequal appraisal provided by the appraisal district in the House Bill 201 package. If the subject property is an income property, review the appraisal district’s income analysis versus your actual income and expense statements. Consider the following areas as opportunities to rebut the appraisal district’s analysis:

· Gross potential income
· Vacancy rate
· Total effective gross income, including other income
· Operating expenses
· Amount of replacement reserves
· Net operating income
· Capitalization rate
· Final market value

Many property owners and consultants start with the actual income and expense data, and use one or two of the assumptions provided by the appraisal district. However, they primarily utilize information from the actual income and expenses in preparing their own income analysis and estimate of market value for the subject property.

When comparable sales are the primary issue in determining market value, start by reviewing the comparable sales data provided by the appraisal district versus the assessed value for your property. Convert the sales prices from the appraisal district to either a per square foot or per unit basis. Then compare the sales to the per square foot or per unit assessment for your property. Sales can be helpful during the hearing.

The cost approach is not typically used in the property tax hearings except for brand new or relatively new properties. If your property is new, the appraisal district will probably want to review the cost information and you probably won’t want to show it to them. In many cases, the actual cost of a property is higher than the estimate provided by the appraisal district. If this is the case, you will likely want to appeal on unequal appraisal instead of on market value. No matter how good your argument or how passionately it is expressed, the appraisal district staff and Appraisal Review Board (ARB) members tend to believe that cost equals value for new properties.

Deferred Maintenance and Functional Obsolescence

Another issue that is important for the market value appeal, and to some extent for a unequal appraisal appeal, is information on deferred maintenance and functional obsolescence. Deferred maintenance could include items such as:

· rotten wood
· peeling paint
· roof replacement
· substantial repair
· landscaping updating and other similar items

Most appraisal districts give minimal consideration to requests for adjustments based on deferred maintenance, unless the property owner provides repair costs from independent contractors. There are some exceptions where a cooperative informal appraiser or sympathetic ARB will take an owner’s estimate of deferred maintenance and make adjustments based on those costs. Most appraisers and ARB members are much more inclined to make adjustments if third-party cost estimates are provided. In addition, the appraisers and many ARB members are inclined to only deduct a portion of the total cost using the argument, “we’ve been giving a replacement reserve allowance for this item for the past years and it’d be double-dipping to deduct the whole value off it in the current year.” While this is an incorrect appraisal argument, it does tend to be the practice at many appraisal districts. The reality is, the cost of curing deferred maintenance is deducted from the offer by a prospective buyer.

Examples of functional obsolescence would be a three-bedroom apartment unit that only has one bathroom, or a two-bedroom apartment that does not have washer/dryer connections in an area where those connections are common. Another example would be an apartment that has a window air conditioner in an area where central HVAC is typical and expected.

Unequal appraisal analysis

The Texas Property Tax Code, section 41.43(b)(3), provides for appraising or appealing on unequal appraisal including ratio studies and “a reasonable number of comparable properties appropriately adjusted.” Virtually all unequal appraisal appeals involve a reasonable number of comparables that are appropriately adjusted. Comparables are similar properties.

This is primarily because of the difficulty and cost of performing a ratio study. Historically, the position of many appraisal districts was that the property owner needed to get a fee appraisal for each comparable property and compare the market value estimated by the appraiser to the assessed value. The cost of getting multiple appraisals made this process financially impractical. Compiling a reasonable number of comparables appropriately adjusted is simple and straightforward. The first step is to choose a reasonable number of comparables. Usually four to five comparables is the typical number used at a property tax hearing, but in some cases, property owners choose ten to thirty. In some cases, there may only be one to four comparable properties that merit consideration. Most unequal appraisal presentations include three to ten comparables. The number of reasonable comparables depends on the location, type, size and age of the property. For example, there would be fewer five-year-old bowling alleys in the northern part of Harris County compared to recently built apartment complexes.

After choosing a reasonable number of comparables, array them in a table format, including fields of data such as account number, net rentable area, year built, street address, assessed value and assessed value per square foot.

The next step is to determine whether or not to make appropriate adjustments. For the administrative hearing, if you have truly comparable properties, most boards (appraisal review board or ARB) won’t be concerned with you not making adjustments. If you make adjustments, those would typically be based on factors such as differences in size and age compared to the subject property.

You should also review the information in the appraisal district’s House Bill 201 packet on an unequal appraisal. In many cases, the appraisal districts unequal appraisal analysis will document a reduction in your assessed value! If the appraisal districts unequal appraisal analysis documents a reduction, either the informal appraiser or the ARB should make the adjustment in assessed value for you. Having the opportunity to get an assessed value reduced automatically based on the appraisal districts unequal appraisal analysis is one of the reasons to appeal every property every year.

Completing Hearing Preparation

After reviewing the appraisal district’s information on your property, the House Bill 201 package, and your market value and unequal appraisal analyses, determine the strengths and weaknesses of each approach and decide which basis of appeal provides the best opportunity for a meaningful reduction. Although appeals on unequal appraisal have clearly been the law of the land since 2003, some appraisal districts and review boards have chosen to disregard the option for unequal appraisal put forth by the Texas Legislature. Although there is litigation underway which should resolve this issue within the next year, it would be prudent to visit someone who is knowledgeable in local property tax appeals to determine whether the county appraisal district and ARB in your area are considering appeals on unequal appraisal.

Set Negotiating Perimeters

After reviewing the information, it is important to set the highest level of assessed value you will accept at the informal hearing because after you accept an assessed value, the appeal process will be complete for the year and you will not be able to appeal further.

Administrative Hearing Process

The two steps to the administrative hearing process are the informal hearing and the appraisal review board hearing.

The Informal Hearing

The following procedure and rules are typical at the informal hearing:

· Meet with an appraiser representing the appraisal district. You should be polite and prepared at this meeting. While many property owners are frustrated and angry at the high level of real estate taxes, the appraisal district appraiser does not control the tax rate set by various entities nor the policy regarding property taxes in the area or the state. The appraisal district appraiser is trying to execute his job in a professional manner and appreciates it when property owners work with him on that basis.

· Provide the appraiser information on your property and he will review that information and information he has available.

· The appraiser will likely make an offer to settle the assessed value of your property fairly quickly. You can either accept the value or negotiate further. Either way, you should know within ten to twenty minutes whether the appraiser will offer an acceptable value. If the value is acceptable, conclude the negotiation by agreeing to the value for the current year. If the value offered is not acceptable, ask to go forward with an ARB hearing.

Appraisal Review Board Hearing (ARB)

The ARB hearing panel consists of three impartial citizens selected and paid by the appraisal district. The age of most ARB members ranges from fifty to eighty. There is an unfortunate bias in the system since the ARB members are selected and paid by the appraisal district, but most ARB members are reasonable people who want to make appropriate decisions.

Like the appraisal district appraiser, the ARB does not set tax rates or tax policy. The members are also not responsible for the effectiveness of local government. It is unlikely to help your case if you complain to the ARB members about either the high level of property taxes or the poor quality of some aspect of local government.

The ARB will expect you to make your presentation in about three to ten minutes. They will typically wait patiently while you make your presentation and may have questions after you conclude. An appraiser from the appraisal district, who may or may not be the same person who attended the informal hearing, will represent the appraisal district at the ARB hearing. The appraiser will comment on the evidence you presented and will often present other information the appraisal district has available. If you requested a House Bill 201 package for your property, it substantially limits the evidence the appraisal district appraiser can offer at the hearing. The ARB members may have questions after the appraisers presentation. Then the property owner will be given a final opportunity to rebut evidence presented by the appraisal district appraiser and quickly summarize the evidence. The ARB members strongly prefer you not repeat your entire presentation at this point.

After hearing the evidence, the ARB members will confer and make a decision. This decision is not subject to negotiation and they will not revise the decision if further evidence is presented. When this decision is announced, the hearing is effectively over. The ARB will send a letter two to four weeks later summarizing their decision and notifying the owner of a 45 day limitation from the date receipt of the ARB decision to either request binding arbitration or file a judicial appeal.

Binding Arbitration or Judicial Appeal

Beginning September 2005, owners of properties with an assessed value of $1 million or less may file a request for binding arbitration. The owner must file with the appraisal district no more than 45 days after receipt of the notice of the ARB’s decision. The binding arbitration option is interesting because it includes a loser pays provision. The appraisal district pays for the arbitrator’s fee if the final value is closer to the owner’s opinion of value, and the owner pays for the binding arbitration if the final decision is closer to the appraisal district’s opinion of value. Binding arbitration was passed to provide an alternative to judicial appeals, which can be expensive to prosecute.

Many owners pursue judicial appeals to further reduce property taxes. In 2005, O’Connor & Associates filed over 1,200 judicial appeals on behalf of property owners in the state of Texas. The judicial appeals can be expensive if the property owner and attorney don’t understand the process and have a plan in place to minimize the cost of legal and expert witness fees. Judicial appeals are typically successful. However, success requires cooperation from the property owner, such as providing responses to questions, documents and a deposition if requested. The judicial appeal is meaningful as an option to minimize property taxes since it reduces the base value. This is important because the appraisal district and ARB consider the base value in the subsequent year when setting the administrative hearing value.

Conclusion

Property owners can generate substantial reductions in property taxes by appealing annually. Consider appeals on both market value and unequal appraisal and obtain the House Bill 201 information when preparing for the appeal hearing. Property owners should consider all three levels of appeal: informal hearing, ARB hearing and judicial appeal/binding arbitration. While the ARB hearing and judicial appeal/binding arbitration can be an intimidating process, each is straightforward once you understand the mechanics.

Right now in the U.S. there hundreds of thousands of home owners who want to sell their property, but can find no buyers.
If you are a qualified buyer you are currently more valuable that an NFL first round draft pick. Yes, you are king and every home seller is your subject to do with as you will – almost!
The point is, this is one of those rare periods in time when you can get the best possible deals simply for the asking. The trick is to know what to ask for.
Financing
You will find that in most cases you have the least amount of maneuvering room in the area of financing. Most highly motivated sellers have little or no equity in their homes. They either bought near the top of the real estate bubble or they have refinanced every penny of wealth out of their home.
If you are lucky enough to find there is some equity in a home there’s a good chance you can do a no money down deal by asking the owner to carry-back that equity in the form of a note and second mortgage. That’s called a “seller carry-back”.
The seller carry-back was very popular in the early 1980’s. That was during a period when it was near impossible to sell property without some form of seller financing like the carry-back. That was possible in those years because mortgages were assumable by the new buyers. Investors learned how to use an All Inclusive Deed of Trust (AITD), sometimes called a “wrap around mortgage” to buy with no money down.
Since mortgages are no longer assumable it is rare that you will find a deal that works with a wrap around. You may find a mortgage that allows a buyer to assume the financing after qualifying. That seldom works in an investor’s favor, but it is worth investigating if all else fails.
To use the seller carry-back today you have to buy ’subject to’ the existing financing. That means that after you sign a promissory note secured by a trust deed for the owner’s equity, you take title to the property and just continue making payments on the first mortgage. Investors should learn the details of how to buy ’subject to’, because it can be very powerful in this real estate market.
Among the other methods of buying, you might consider a lease-option or a ’short sale’.
Inspection and Repairs
Homeowners are desperate to sell, so they will be open to performing any repairs or improvements that you ask for in your purchase offer. That means you should require is through pre-inspection of the property. That inspection should include:
Heating and air-conditioning system
Plumbing and electrical systems
Roof and attic, including insulation
Walls, ceiling, floors, windows, doors
Foundation, basement
Any built-in appliances
Septic, wells
Swimming pool
Landscaping irrigation
Those are the things you should check before writing the purchase offer. Then you can include any repairs or replacements required in your offer. Don’t stop there. In the purchase offer you state that the offer is contingent upon your approval of a report by a qualified home inspector.
A-S-K
Finally, you should ask for at least a few things that are not vital to the deal. If they have two cars, ask for one of them. Ask that they leave the lawnmower, child’s swing set, exercise equipment, dining room set, etc.
If you don’t A-S-K you will never G-E-T. If the home sellers are really motivated they may want to move as quickly as possible and be willing to give you anything that will make packing and moving easier.
Compensate for Falling Values
When you consider making a purchase offer on real estate, keep in mind that values continue to fall in many areas of the U.S. You must buy at a deep discount to compensate for the fact that the property’s market value will be less in 12 months than it is today.
Whether you are buying for personal use or as an investment, there has seldom been a better time to be in a position to buy homes. Use your power with compassion. Be a wise and benevolent king!

Property investment in Turkey is quite straightforward. There are 2 ways to own land for property development. The first is paying cash up front. The second is less financially straining: acquiring ownership of the land against units built. The second method is the most preferred by both investors and construction companies in Turkey as it does not require any initial funds against the ownership of the land. Any funds needed are for the construction expenses of the development on the land, subsequently alleviating the burden of fronting the purchase price of the land.

HOW DOES THIS WORK

A land owner offers his/her plot for property development instead of trying to sell it for cash to a construction company. This method also becomes more attractive for the land owner as he/she will receive units built on their plot, and when the land owner decides that he/she wants to sell the units that are left for them on the plot, will, in most cases, likely receive more money than if they were to sell the land for current market value. Or they simply put their share of the units built up for rent, creating a great source of positive cash flow.

A contract is drawn up between the construction company and the land owner.

Once both parties agree on the terms of the contract, a property development company takes up the offer to build on the land owner’s plot. A less than 50% share of constructed units eventually belongs to the land owner, and the remaining units belong to the construction company. Normally the construction company will sell the units that they acquire off this deal, to property buyers.

How is the ownership of the land/units built for the construction company get acquired?

At different stages during the construction of the properties, deeds are issued to the construction company by the land owner. Units are allowed to be sold to property buyers even before the construction company acquires the deeds for the units. The cost of the units built by the construction company for the land owner becomes the cost of the land for the units that the construction company eventually owns. It basically means that the ownership of land for the builder becomes payments in installments over a agreed period of time between the two parties. This method alleviates the burden of having to front the cash by the builder; for the land, before they begin building, and the funds by the builder are used to pay for all building materials, manpower, taxes, permits, etc.

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Many people dream of buying their dream property. When people are looking to buy a nice piece of property, it can often be confusing figuring out if they are getting a good price. Everyone wants to get a good deal on property, especially during these difficult economic times; however, there are many things to be aware of before signing a purchase agreement.
The following is a list of tips on how to buy property at the right price:
Research Property: Because of the development of the internet, it is now easy to research many properties in many locations. It is easy to compare properties to look for differences in prices. As well, you will find such details as pictures of the property, size of the property, and any unique features. Many real estate sites feature a variety of properties in the area that you are researching. As well, most of these real estate sites provide the prices of similar properties in the area that are for sale.
Property Sales Market Fluctuations: It is important to be aware that the real estate market goes through market fluctuations. You should check to make sure that the area you are interested in is not going through a period of high property sale prices. The price being offered may be the result of current economic conditions.
Negotiation: It is important not to accept the first price offered. In most cases, the seller is expecting to have to negotiate a sales price. Negotiation is a key tool to ensuring that your purchase becomes a wise investment. You should also be aware that sometimes sellers will raise their price a bit because they expect to have to lower it during the negotiation.
Reject Pressure to Purchase: If you feel you are being pressured to buy and you think the price is too high, it is important to walk away from the deal. You want a dream property, but you do not want to pay more than the property is worth.
Inspect Property: Never purchase property that you have not looked at. You want to make sure there are not any problems with the property such as poor drainage. You also want to be able to consider the potential of the property.
Real Estate Agent: It is always wise to enlist the services of a real estate agent. They are a valuable source of information such as the property values in the area and their asking price. They can also negotiate a fair price and locate property with features that you want.
Appraiser: If you are unsure about the asking price of a particular piece of property, you can always enlist the services of an appraiser. An appraiser will be able to assess the value of the property.
It is important to remember that property prices vary according to the area. As well, as the demand for properties change, the prices will also change. Make sure you have the right knowledge about asking prices and transacted prices from as far back as a year.
Because properties are constantly coming onto the market, it is not a serious mistake if you lose out on a particular property. It is better to lose out on a piece of property rather than make a bad investment. By doing your research and acquiring the right information, you will purchase the right property at the right price.

One of the biggest differences between single family and commercial real estate, other than the obvious number of units, is the way in which the properties are valued. Residential real estate, including most single family homes, is valued almost always as a function of recent sales, or “comps”. Commercial real estate, by contrast, is valued based upon income. The reasons for this are primarily three in number.

First, residential homes are usually in a lot of company. When there are plenty of similar properties in a given area to compare to, the ability to use comparable and recent sales is enhanced. It also makes the valuation of residential real estate much easier because sales trends are pretty easy to track with modern technology. By contrast, commercial properties have fewer properties out there to compare to, making a comparable sale model far less effective.

Second, residential real estate is primarily owned by homeowners, making the income production of property rather in irrelevant feature, from the standpoint of assigning property value. Sure, some neighborhoods have more rental homes, but there are still usually enough comparable sales to determine a value that way.

Commercial properties are less often owned by someone who also lives in the property. This is more common among income properties that have 2-4 units but these are also typically valued similar to single family homes. Larger commercial properties are primarily purchased as investments so the income model works most effectively when valuing them.

That leads us to the last reason for different valuation, and that is the type of buyer the properties most appeal to. Residential properties appeal most to owner occupants, who place the greatest value upon what other homes in their area have sold for recently. Commercial properties (especially larger ones) are almost always purchased by investors, who appreciate the importance of numbers (or at least should) and want values to be based upon the property’s value as an investment.

This last point is a big plus for investor purchasers of commercial real estate. We can often find bargains because properties that are expense heavy, under rented (value wise), or both are going to be valued accordingly. Motivated owners who don’t manage their expenses well or who do not perform updates that will command higher rents are often left with undervalued property.

A new owner who gets expenses under control and who brings rents up to market levels can often dramatically increase the value of a property in a short period of time. This ability is due to the income based value model for commercial real estate and is one you simply need to be aware of when looking for good deals.

Once you have decided that you want to invest in property, you need to decide how to source your property at a good price.
There are several methods that you can use to source property below market value. Three such methods are listed here.
The Internet
One of my favourite Property Mentor’s Dolf de Roos talks about the 100 – 1 rule (he calls it the 100:10:3:1 rule) in his book:
“Real Estate Riches”
If you don’t have this book, I would highly recommend that you buy it. It’s one of my favourite ‘right-to-the-point’ books on real estate.
The 100-1 rule stipulates that if you were to look at 100 properties, you may end up buying one good deal! Property is very much a numbers game. The more you look at, the more chances you have of knowing exactly what it is you’re looking for, and henceforth finding your deal.
Not a day goes by when I’m not looking at property, if not physically, I will be analysing deals in the local property paper or on-line. I prefer on-line as I can literally analyse hundreds of deals in one sitting.
If you are a beginner and are not sure of the type of property that would best meet your needs, it is definitely worth spending time doing research on the internet. You can also search for properties to let.
This will allow you to understand rental values and help you to decide how much funding you will need in you purchase, as buy to let financing tends to be based on rental valuations.
Estate Agent
Regardless of what people say, I find estate agents to be a valuable resource when it comes to buying property. I have bought several below market value properties through estate agents.
By being persistent, and proving to an estate agent that you are a serious investor, you will have them ringing your phone of the hook with potential deals. However as with anything, you need to be careful that you are not receiving ‘dogs’ and that the deals are indeed deals. Once you understand your market, this should be simple.
Get to know your local estate agents and get them to know you. Be persistent in your approach. Go around in person and speak to them. Use them to give you their opinions on any particular area. If you are serious about investing in property, you need to maintain regular contact with at least three good estate agents in your preferred area. Over time, as I have found, these agents will be worth their weight in gold!
Do Your Own Marketing
This is my preferred method of acquiring property. You could start off by advertising in your local newspaper.
Typical adverts might read:
“Properties wanted. Cash buyer waiting, any area considered”
“Repossessions stopped. Don’t wait for your house to be repossessed.
Ring now for an instant decision”
TEST your adverts. What works in one location may not work in another area for any number of reasons ranging from social demographics to the type of newspaper you’re advertising in.