The Fundamentals of Real Estate Appraisals That You Should Know

It is of importance that home buyers know the fundamentals of the complex process of buying properties in real estate. An appraisal, which is an essential part of the whole process, is one of the things you should understand. If you are about to purchase a house you have chosen among the available Holly Springs homes for sale, it’s advisable to be aware of its basics.

An appraisal is the estimation of a home’s value made by an impartial third party. It can be acquired by means of matching up similar homes that were just sold recently to the one that is being discussed, which is known or referred to as the subject property. Real estate appraisals assist in determining the market value of the homes, which is the estimated price it will receive if it was sold in a marketplace that is open and competitive.

There are some buyers who fail to differentiate between a real estate appraisal and a comparative market analysis or CMA, so it is important to be aware of these things. A CMA is used to aid sellers in establishing a rational asking price for a house, whereas an appraisal report assists in determining the market value of a home. An appraiser’s report is more inclusive and thorough; it is the only assessment report that lenders take into consideration when settling on whether or not to loan money.

A real estate appraisal is performed by an appraiser, someone who is licensed by his/her own state after fulfilling coursework, as well as a certain number of hours of internship that make appraisers aware of the real estate marketplaces.

During appraisal, the lender may choose an appraiser from its staff or just use an independent one; also, you might be given permission to select the one you want, but if it is someone who the lender doesn’t know well, the report may be put through an assessment before it gets accepted. You should keep in mind that the appraiser has to be an unbiased third party who does not have any financial link or other association to anyone who is involved in the arrangement. In addition, it is highly possible that you would be the one who’ll fund the appraisal if you’re submitting a loan application.

Real estate appraisals are profound and comprehensive reports. Some of the things stated in an appraiser’s report include, but are not limited to, the following:

– A valuation of the whole real estate marketplace in a certain place.
– Elements of the subject property, together with allegories of three similar homes.
– Remarks concerning badly defective elements (for instance, a collapsing foundation)
– Accounts concerning problems that is deemed by the appraiser as detrimental to the value of the house; for example, a bad entrance to the home.
– The sort of area where the house is located, such as in a development, stand alone acreage, and so on.
– An approximation of the property’s standard sales time.

Purchasing a house in Holly Springs real estate is not that simple. There area lot of things you should be aware of and take into consideration. It can be very difficult, but once you own the house of your dreams, everything would just be worth it.

Luxury Real Estate Marketing Essentials – Stay Focused and Be Consistent

As branding and marketing consultants for top producing luxury real estate marketing professionals throughout the country we have identified two of the biggest challenges that agents face when trying to build a high volume practice. The first challenge is discovering one’s winning marketing strategies, the best formula for lead generation. The second is staying focused and consistently repeating the winning formula.

One of our clients was earning about $15, 000 a year in another industry. Now, six years later, she is making close to $1 million a year in her real estate practice as the highest grossing individual agent in her marketplace. What is her success secret?

She discovered her winning marketing strategy. She stays focused and consistent. For one thing, she only goes “fishing” for business where the fish are biting. That is, she determined the neighborhoods where the homes were selling fast and started farming just in those areas. This is a simple but often overlooked strategy.

What made her what we call a “breakaway brand” in her marketplace was her consistency of direct mail to homeowners and her consistency in advertising her listings through media channels that proved successful. She became a master of marketing listings in particular areas.

Do you track where each of your leads are coming from? Are leads coming from referrals, phone calls from signs, advertisements, direct mail campaigns, or the internet? When you test a new lead generation method do you analyze what your return is on your investment? Experimentation with marketing strategies is very important. But, without measuring the return on investment, you are missing a very important step on your way to mega productivity. Discover what is working. then, keep working it.

Once you have identified your winning marketing strategies you must have the discipline to repeat them over and over again. This is very difficult for creative people.

After, Neal Simon, the famous Broadway play writer, rehearses his cast and the show opens he attends the first several performances to experience, first hand, how the audience reacts to his story and jokes. He tinkers with the script until he is satisfied that it is his best work-the winning formula. Then the show is considered “frozen”. The cast, the stage crew and lighting crew must repeat this formula over and over again to deliver a consistent experience.

Great brands are built by providing a predictable, reliable user/consumer experience. This holds true in every price range of products and services. There is plenty to be learned and applied to a successful real estate practice by observing the best practices of name brand products and services that have endured over time.

This is part of a series of articles entitled, Luxury Real Estate Marketing Essentials. It is dedicated to luxury real estate marketing professionals worldwide.

Real Estate Investing: Acting Strategically

The vast majority of investors misses the boat and never takes any action at all. They are stuck in “webinaritis” afraid to implement any of the great strategies and tactics that they learn. Well, the first step toward success as a real estate investor is simply to take action.

The next hurdle is to take action strategically. Strategic action means taking a look at the marketplace and knowing which strategy is work best in that given market and then implementing that strategy in a way that will stand out favorably from all the other players in that market. When you both think and act strategically, this is when you begin to make money consistently, not just hit-and-miss.

1. The first step of strategic investing is to understand your marketplace.

Real estate markets are local and respond differently to various strategies. Even when the market cycle is generally up or generally way down on a national basis, the market may be entirely different in a given local area.

A college community may have a perennially strong student housing market that may be immune to the market cycles. In this type of community the primary way to make money as a real estate investor may be in buying and holding student housing rental properties. In a community that was highly affected by the housing bubble-many cities in California, Florida, Arizona and Nevada for example-the primary market strategy is in transactional flipping of short sale and REO property. These markets will also support a growing number of rental properties to buy and hold as people displaced from owning become renters.

2. The second step of strategic investing is to either adjust the market or the strategy to assure a steady supply of business.

The investor who does not have the money to invest in a community that is largely a buy and hold rental area (like the college community) may need to either find a private money partner to invest with or to invest in a different market where short sales and transactional flipping of property is more prevalent. Transactional investing in wholesale properties requires little or no up front capital, but it may require extending out one’s investment territory in order to find enough business to make this strategy successful as a full time business.

3. The next step is to refine the process so the investor can dominate the marketplace.

Strategic actions to refine the business may include becoming the perceived local authority in real estate investing in the area so people bring their referrals and opportunities to you first. Dominating in online and direct marketing is another way to set your business apart from the competition so that clients come to you first when they want or need to sell. Automate and delegate so that you can get more done and have a wider or broader reach than your competition. Alternatively, find yourself an unmet need and cultivate a niche within your market.

By thinking and acting strategically, the investor can assure greater business success