Sunday, July 31, 2016

How to Assess Any #RealEstate With the Approaches to Value

By Jonas Perov

The valuation steps applied to create a supported conclusion of a defined value based on an analysis of applicable general and specific data. Assessment in creating an opinion of real estate value follows specific sets of processes that reflect 3 different methods. These include:

- Cost Method
- Direct Comparison Method
- Income Approach Method

One or more of these methods can be used in the assessment of real estate valuation. The methods to be used will rely almost entirely on the type of property being assessed or appraised; however may also factor in the use of the appraisal, the scope of work involved, and the data availability for the analysis.

Cost Method

The cost approach to assessment and appraisal is established by understanding the construction methodologies and property attributes related to cost. The cost approach is estimated by adding the cost of land to the current cost of construction related to all improvement on land, and subtracting depreciation in all improvements on the land. The construction costs of buildings would include a reproduction cost or a replacement cost of the same or similar like materials or systems. This approach works best when it used for the assessment of new or newer properties that are not frequently exchanged in the market. The actual costs are usually derived from cost estimator software, cost manuals, builders, and contractors. Note: The land would remain a separate value when using the cost approach.

Direct Comparison Approach

The direct comparison method to assessment of real estate is most useful when there is a large number of similar like properties that have recently transacted on the market or are currently listed on the market. Using this method, the assessment would come from identifying the subject with similar properties, called comparables (or comps). The sale prices that most identify with the subject would have a heavier weight on the value, oppose to one that is further from the subject characteristics. Most of the time the comparables would create a range of value, upon which; opinion must be used to find an exact value. Several elements or factors are used to qualify the degree of similarity between comparables and the subject. This would include: real property rights, financial terms, property conditions of the sale, post sale expenditures, location, market factors, physical characteristics, economic characteristics, use/zoning, non-real estate components of sale (chattels, fixtures). After the best comparables are set, a dollar figure or percentage is applied to the sale price of each property to estimate the hypothetical value of the subject. For instance comparable A has 1 more bathroom than the subject; therefore subtract $9000 from the comparable to hypothetically get the sale to reflect the same characteristic as the subject.

Income Approach

The income method to the assessment of real estate would be from an analysis of present value of the future benefits of property ownership. A property's income and resale worth upon return may be capitalized into a current, lump-sum amount. There are two methods of the income approach; one is direct capitalization and the other yield capitalization. Direct capitalization is the relation between one year's income and worth indicated by either a capitalization rate or an income multiplier. Yield capitalization is the relationship between several years of stabilized income and worth at the end of a specified period reflected in a yield rate. The most commonly used yield capitalization method would be the discounted cash flow analysis.

Article Source:

Sunday, July 24, 2016

How To Make Your #OpenHouse Successful

By Reuben Fine

Open houses offer a tried and true method to generate interest for your listing. When it comes to residential properties, no one buys a house without first checking it out. Although people can now do it online through virtual tours, many prefer actually visiting the house. An open house allows you to interact with numerous prospective buyers in a weekend.

Some of the people who come through will be looky-loo's that just want to see what the house goes for and how it compares to their home in price and size. Yet every so often you'll get a real prospective buyer to come in and since you can't always tell the difference, it's best to stay professional, friendly and build rapport with everyone. When you see a prospect come in a second or third time, then you'll know you may have something.

So how do we get the most out of a open house? See below for six methods for bringing people into your open house and making it a success.

1. Go Online

It doesn't matter how prepared you are, or even how beautiful the home is, if people don't know about it. In today's world, people look for everything on the internet. For homes, it's usually the first place they go (especially for the younger generation of first time home buyers). According to the National Association of Realtors, over 90% of homebuyers rely on the internet when performing their search.

In fact, many of them are using smartphone apps to find open houses near them, and compare sale prices and competing listings. Ensure that you list your open house online. As a real estate agent or broker, you can put the open house dates in the multiple listing service and syndicate it to sites such as, Zillow and Trulia.

Make use of all your social media channels- Facebook, Twitter, Instagram, maybe even Reddit. Your friends, relatives, neighbors, colleagues and followers could know someone who is looking. Content also gets shared fast on these platforms. People outside your direct network may stumble on your posts and tweets, especially if a friend that follows you shares it with them. You can also use a direct mail campaign by mailing 200-300 targeted postcards to the area a week or two in advance.

2. Use Signs to Get Drive-Bys

Use banners and directional signs to direct people to your open house. Before the open house, print out a map of the area and mark the locations of all the signs. Make sure to place some on the nearby high-traffic roads. When you set them up, make sure they're visible and easy to follow. If you don't have many visitors, you may want to do a drive by all your signs to ensure they didn't fall down or get blocked.

3. Bribe them

One of the earliest records of using incentives to attract buyers was in 1952. A Dallas realtor gave free soft drinks to visitors and offered the lucky buyer a Cadillac. The promotion attracted 30,000 people to the open house. How do you bribe the buyers today?

Add refreshments and snacks. Is the weather cool? Have a big tray of freshly baked cookies ready with hot chocolate and paper cups. Is it hot? A big pitcher of iced lemonade will relax and cool down each visitor as they walk through the home. If there's a big game that day, put it on the TV.

4. Follow up

Have a sign in sheet when they walk in. Ideally you have something to offer when asking for their email address such as a special report outlining the key features that sell homes in that area or low-cost ways to improve your home's value. After the open house, email them a copy of the listing flyer and thank them for coming in. It will help in keeping the property on their minds. You can also use this opportunity to show them similar properties in the area and any other upcoming open houses.

5. Create partnerships

Get local artists and interior designers to use the home as a platform to stage their work. Flaunt the home and their work at the same time. For new homes, having furniture makes it much easier for each prospect to imagine themselves living there.

6. Be generic

You want other people to picture the house as their home. You also don't want them to feel like they are strangers walking through another person's home. That's awkward. If you are showing a home that still has a tenant, remove all personal items if possible.

Put away the family pictures framed around the house and the reminders of doctor visits that are pinned on the refrigerator. Turn off the volume on the answering machine to prevent the visitors from hearing new messages. If certain rooms are packed with furniture, see if you can move excess pieces to the garage to make more space during the open house.

Creating an open house is not a 2-hour picnic. It takes time an effort, from getting people to show up, hosting it, and following them up after the event. It requires a lot of prep work, a positive attitude, and excellent conversational skills.

You spend a lot of marketing dollars to get prospective buyers into your open house. You only need one person to be interested and make an acceptable offer. Open houses exponentially increase the chance of this happening. When is your next open house?

Reuben Fine is the creator of; a simple fill-in-the-blanks Real Estate Flyer Templates for Top Producing brokers across the US and around the world.

Turnkey flyer templates provide agents and brokers a fast, reliable, and differentiated way to create high impact marketing that separates them from the competition.

They are the perfect flyers for agents that aren't computer savvy and don't want to waste hours on complicated or expensive design software.

Article Source:

Sunday, July 17, 2016

#Land Purchase Considerations

By Mark Pustka

If you are looking to purchase land, there are several important items to consider.

  1. What is the cost of the land? If I pay $1,000,000 for 10 acres to build a shopping center does that cost fit within my budget? Or is $500,000 the most I can pay and still have a profitable project?

  2. Does the location work for the intended use? For example if someone is trying to build a convenience store is the site in a high traffic area? Or if someone wants to build expensive homes is the location suitable for million dollar homes or is it too close to commercial uses?

  3. What jurisdiction is the land located in? The City Limits? Is it in the Extra Territorial Jurisdiction (ETJ) of the City? Is it in the County? The jurisdiction that the property is located in will dictate which rules and regulations need to be followed. It might be advantageous to be in a particular jurisdiction (City A vs City B) rather than another. There may also be state and federal laws that will impact the property as well.

  4. If the property is in the City, what is the zoning category assigned to the property? The zoning category dictates the land use allowed on the property. If a property doesn't have zoning or if a zoning change is to be requested then that will add to the time and cost. Something to keep in mind is that zoning change requests are not always approved.

  5. Deed restrictions are private agreements and restrictions specific to the land in question. They are noted in the deed, and restrict the use of the real estate in some way. Deed restrictions can be attached to property whether it is zoned commercial or residential and are in addition to local, state and federal rules. Deed restrictions can be more restrictive than other governing rules.

  6. Have utilities been extended to the site? Utilities would include water, wastewater, electricity, natural gas, telephone, and cable television. Water is the most important. Water and wastewater are typically the most expensive utilities to extend to a property. There are other ways to get water service such as drilling a well or for wastewater constructing a septic system. However these solutions also involve ongoing maintenance and a limited lifespan.

  7. Is any portion of the property in a floodplain? If so then the build-able or develop-able area of the property will be reduced. This in turn typically will reduce the value of the property.

  8. What are the topographic conditions of the land? Is it flat or is there slope to the land? The more steep the slope the more it will cost to develop the land because of the necessary cutting and filling of the soil. In general flat land is preferred although a hillside location for a home or office can provide a very nice view.

  9. Is there roadway access to the property? If so is there an existing driveway and curb cut in place or will this have to be permitted and constructed? How likely is it that a permit can be obtained at this location or is there already a driveway nearby which might diminish the chances? Is the roadway in a state of disrepair? If so then what are the chances that the roadway will be repaired and how might this affect my planned use?

  10. An easement is a legal right to use another's land for a specific purpose. Are there any easements on the property that might restrict or otherwise unduly affect my ability to improve the property? Examples of easements include public utility easements which allow utility providers to install and maintain utilities. Easements can also be the means of providing access to properties that do not otherwise have roadway frontage.

  11. A lien is an encumbrance on one person's property to secure a debt the property owner owes to another person. Before purchasing property it is important to determine through the Title Search and Commitment process if there is an outstanding lien on the property. It is best to have the property owner take care of liens before the buyer closes on the property because it is easier to leverage a lien being released.

Are you considering a land purchase? Do you know the details about the property? Do you know what to look for, what to stay away from, what to make sure you get with the land when you purchase it?

Article Source:

Monday, July 4, 2016

#GreenArchitecture: Changing the #HomeDesign Trends of Today

By Silvia Stefanova

Whether you are considering a home renovation or exploring designs for a new house, one of the common suggestions that you will get both from architects and engineers is to make it adaptive and earth-friendly. For those who may not be too inclined on the technical details of home designs, "adaptive" and "earth-friendly" are just words, that also often appeal to be expensive and complicated to achieve.

However, with the ever changing trends in home designs, we need to start equipping ourselves with knowledge on economical yet safe home design choices. With this, we will try to look into the basic concepts of earth-friendly and adaptive homes - two concepts that are closely interrelated.

Earth-friendly Home Designs

These designs are born out of the campaigns of several countries for an environment-friendly lifestyle or sustainable living, which of course includes house designs. Along with this, professionals in home construction and design have also innovated their skill set to meeting these new standards.

When we speak of environment-friendly home designs, this has a lot to do with the materials used to build or renovate the house. For instance, some architects have been practicing the use of biodegradable materials in house interiors.

These design techniques closely resemble that of the ancient times, when majority of the house materials come from natural sources. Even the paint products for the house have to be eco-friendly, which is not only safer for the walls, but for the occupants' health, as well.

Other strategies being applied by architects is the creation of outdoor rooms in the house.

This means using natural light and air to save on energy for the room. All these, along with eco-friendly household practices easily contribute to having an environmentally sustainable lifestyle.

Adaptive Home Designs

This type of home design deals with two major things:

1) the ability of the house to adapt to the changing lifestyle of its residents, and 2) ability of the house to adapt and withstand the various environmental changes.

Also operating around the concept of sustainable living, these designs are meant to make the house last longer and the family living in it safer. Common feature of these homes are sturdy lumber and concrete, insulated panels, and dome-shaped ceilings. These type of house built has been proven to be more resistant to storms, tornadoes, and even earthquakes by the Wind Engineering Research Center. With natural calamities hitting the country almost every year, it pays to be keener in the construction materials used for your house.

When it comes to adaptive spaces for home, this is where secret rooms and sliding door comes in. This is also an innovative trend that architects and interior designers are looking into, in order to make a house with limited floor area still spacious enough for a growing family. Aside from choosing space-saver and multi-purpose furniture, it is also important to choose a house design that is easier to renovate in case the need for expansion arises. And this is exactly what your architect mean when they speak of adaptive home design.

Silvia Stefanova is a green-living advocate. She is also fond of scouting DIY home projects for home decor and improvements. Currently, her latest project is the DIY Home Energy project, which can be used to save on electric costs in an enviornment-friendly way.

Article Source:

Saturday, June 25, 2016

4 Smart Tips for a New #RealEstate Agent

By Ravi Telaga

When it comes to real estate business, we could write a book about the subject, including its pros and cons. There are real estate technology tools, marketing tidbits, sales tips, and best practices to look into.

You need to consider these must-have suggestions for new realtors. Marketing is an essential part of any business. This post offers you a wealth of details to help you market the business to prospective clients. These tips will help you to navigate the new career path.

Follow these tips to ignite your career and succeed a realty business.

1. Planning

The main thing about getting into any business is the planning; freedom is the main reason that many people start their career here. It is the biggest contributor to your career. Start your day with a set of goals, plans, along with step of action to achieve those dreams. This could be creating a new listing, developing a new lead, or online help to generate some strategies. The main purpose here is to get a roadmap, which leads to success while helping you avoid costly risks during the process.

2. Build Your Brand

You can start with famous brokerage, as it comes with its own benefits. But, in the actual method, you're still on your own when it comes to failure or success. Build a brand of your own, with advertising and marketing materials in your niche. Hire people and work with them, but lead the team as a star.

3. Go Online

You're here to promote your business locally and globally. As per a recent survey, around 80% of house purchasers search over the internet during their buying or selling process. If you want to compete for the remaining 20%, who're looking offline, you need to promote well outside the web premises, though the chances are less here. Begin by establishing your house online with a professional, branded website. Since you're a new agent, you should keep your credibility secure, so that it reaches the right hand.

4. Networking

No matter you're new to this business or a pro- nothing could compete with the effort of social media marketing. It is essential to connect with clients, customers, and prospects in a face-to-face environment and social media is the right media for it. Spend enough time conversing with forums, or social community, offering them with valuable content, so that online readers can turn into valuable leads.

Cater to your client's requirements, narrow your niche, and practice professionalism to gain a handful of reference.

Do you have ample time to scout for the 'right property'? Think Again! Before you lose out on best properties try

Article Source:

Sunday, June 19, 2016

First Time #Home Buyers: The Housing Market’s Key Players

In fact, a recent survey commissioned by reveals that 23 percent of adults plan to purchase a home in the next five years and that more than half of them (53.5 percent) will be first-time homebuyers.
Consider that every time a renter buys a home, they make possible a chain reaction of transactions worth many times more than the actual value of the home they purchase. Because first-time homebuyers aren’t selling properties, they don’t put new homes on the market when they buy. As a result, first-time homebuyers reduce real estate inventories and allow existing owners to trade-up or relocate.
The growing number of first-time homebuyers suggests that conditions are finally attracting buyers back despite the critical picture in the overall economy.
In the past, high prices and large down payments made buying a home for the first-time difficult. The right mix of attractive listing prices, tax credits, improved financing and a wide choice of properties seems to be attracting the first-time buyer.
For first-time homebuyers looking to be players in today’s real estate market, offers the following tips:
– Research Your Market. All real estate is localized and the key to a successful purchase is to know the market. In fact, the real estate market is so localized that prices among similar homes vary greatly even between neighboring towns.
– Make a list of what you want. Let your realtor know your criteria in order to find homes that meet your needs. You can go to to view homes that fit your specifications. This will give you an idea of what is possible in your price range and in the location you prefer.
– Get pre-approved. Although not a final loan commitment, a pre-approval letter can be shown to listing brokers when you are bidding on a home. It demonstrates your financial strength and shows that you have the ability to go through with a purchase. Lenders can be found in the finance section of
– Make a decision. Once you find the best home that fits your needs, take action. Homebuyers often hesitate, and this could mean you miss the best home that meets your needs. If you have chosen a good mortgage broker and a sharp realtor, you should have the facts to make the right decision.

Saturday, June 4, 2016

Keys To Advertising a House for Sale

By Alfred Ardis

Before putting your home on the market or setting a price, take the time to do some research and make some preparations to ensure that you get the best possible price for your property. The first step to successful selling is to know your target customer. Where is your house located and who lives in the area? What types of similar houses are selling and who is buying? What types of houses are pulling the highest prices and who is buying them? Once you've narrowed the buyer pool and decided on a target demographic, monitor the housing market for a while to better understand pricing.

To estimate an asking price, you first have to know the market. You need to know selling prices for several other homes in the area, as well as for homes similar to the one you're trying to sell. Average them to get your beginning estimate. It also helps to be willing to invest some cash to make your property more appealing to buyers. Even if you are unable to make significant structural renovations, there are simple techniques you can use to move your property quickly off the market and raise your asking price.

- Renovations

While you don't have to renovate to sell a house, updating key rooms such as the kitchen can be a great investment.

- Open Spaces

Keep your decor light, airy and neutral. Create a space potential buyers can imagine as their own while keeping it comfortable and warm. Utilize natural light and remove all clutter.

- Stage the House

If you're currently living in the place you're trying to sell, make sure you remove all family pictures and personal items. You should also thoroughly clean the home and consider removing excess furniture. If the property is empty, you should seriously consider hiring an interior designing company. Some designers even include rental furniture and staging.

- Photography

To generate interest in your house for sale and draw potential buyers, you or your realtor will need to list it in various places. For these listings, you need well-done professional photographs of the inside and outside of your property. Numerous, quality photos and accurate contact information are vital to success.

Once you have your house for sale listed it's time to move on to showing and negotiating. If you did a good job listing, you should start receiving calls from buyers wanting to set up a viewing. You can also advertise and host open houses to get buyers in your home. Hopefully, more than one of these potential buyers will make you an offer. Rarely do buyers and sellers see eye to eye on the initial offer, so be prepared to negotiate. Your degree of power during negotiation depends on the condition of the market as well as the degree of your need to sell.

The services of an accredited real estate agent can be quite helpful during the selling process. Getting rid of a home can be hard, time-consuming work. If you have a house for sale and are unable to prepare it for the market and list it on your own, consider hiring a design company and reputable agent to help move the place for you. Good luck!

When considering houses for sale, Syracuse residents visit Kirnan Real Estate, Inc. Learn more at

Article Source: