Home Sellers! Are You Guilty of the 7 Sins of Home Selling?

Greed: This one is a biggie. It was easy in a seller’s market to get in touch with your greedy side. Feeling like Midas, anything you asked for from a buyer turned to gold in your hands. Drunk with that kind of power, buyers were often left feeling helpless to comply if they wanted your home. In a balanced market, or even in a buyer’s market, many sellers have not kicked the greed habit. Ironically, greed is costing those sellers money. Ask any real estate agent and they will tell you stories of deals that were blown because of a $300.00 item that could not be agreed upon. No longer with the advantage, many sellers are refusing to make any concessions if it means less money in their pockets, but now the buyer’s are free to move along to the next house on their list. A seller may balk at fixing a $500.00 item in the house, or providing an inexpensive home warranty, but when the buyer moves along to an accommodating seller, the greedy seller is left to wait for another buyer – all the while making mortgage payments on the house they can’t sell. Bad move.

Unrealistic Expectations: Anyone who has sold a home in a seller’s market is going to have a hard time grasping a buyer’s market. If you want to sell your house, you have to forget everything you remember about selling your house in the past. Odds are that your home will not sell in a week, nor will you receive multiple offers. Unrealistic expectations are the foundation of blame and resentment, and they keep you from selling your home. The first few weeks of having your home on the market is filled with hope, anxiety, and irrational exuberance. It’s completely normal to believe that your home is somehow more special than the others on the market, and yours will be the exception to the tough market. Once it becomes clear that the bidding war has not materialized, and your home still sits along with the others, a home seller with unrealistic expectations is crushed. Stay positive about your home, but don’t blind yourself to what selling it will entail. A home seller with a realistic view of what it takes to sell a house in a balanced or buyer’s market, can easily adapt to changing market conditions, use constructive feedback to improve their home, and in return sell their home faster.

Pride: If you really want to sell your home, make the promise right now that you will never utter the following phrase: „I’m going to send that buyer a message.“ If you enjoy sending messages, then perhaps you could raise carrier pigeons. If you want to sell your home, drop that phrase from your vocabulary. The message that sellers send, when they respond to buyers that way is „I don’t want to sell my house to you. You have insulted me.“ In the end, all you are left with is your pride, and that house that just will not sell. As an active Ebayer, I have never witnessed a transaction in which the seller of an item got indignant at the lowest bidder. It’s all business. Divorce your emotions from the home selling process, and you have an advantage over the angry sellers in your area, because the buyers that they turn way with their „messages“, are going to buy a home – just not theirs! The message to send to a buyer should be in the form of a counter-offer. Nothing more. Nothing less.

Impatience: You want this home sold. Now! The impatient seller can’t understand why their home hasn’t sold in the first week. By the third week on the market, the impatient home seller is fuming, and wondering how to get out of the listing agreement. Are you an impatient home seller? If you’ve chosen your real estate agent carefully, and believed when you signed the listing agreement that they are up to the job, then sit back and let the market work. The impatient seller calls their agent more than once a day for updates, even if there has been no activity on the house. The question, „why isn’t it selling?“ is regularly pleaded over the phone. Are you, the impatient seller, doing everything you need to do to get your home sold? Have you done the things your agent suggested to get your home in selling condition? Did you really listen to the comparable pricing data your agent provided you? Or did you have a set price in your mind and refused to move from it when listing the home? The impatient seller can create an enormous amount of stress for everyone involved in selling the home, and it’s totally avoidable. In the end, the timing of the sale of your home will be a combination of price, condition, and luck. No amount of impatience is going to change that.

Ignoring the market: Ignorance is not bliss. Ignorance is disaster for a home seller. Yes, we know that your neighbor sold their home for the same price you want for your home, but that was four months ago. The residential real estate market is more fluid than ever now. Educate yourself about current market conditions, not last year’s market, not even last month’s market. A home seller who ignores the market will interview a few real estate agents, read the data provided by the agent, then ignore the data and list with the agent that gives them the least argument about pricing their home unrealistically. Real estate agents do not price homes, sellers do. The agents will provide valuable information and input to help a seller choose a price. Some agents will refuse to take a listing if they feel the seller is unrealistic about pricing, but many others will take the listing with the caveat that the seller be open to reducing the price later. With so many other properties on the market, an overpriced home will sit there like a deli tray at a gathering of vegetarians. Then, the seller will be chasing the market by lowering the price after watching the prices around them fall. Eventually, the house may sell, but the price will be determined by the market, as it always is. If you are guilty of ignoring the market, you can save yourself a lot of time and headache by scheduling a meeting with your real estate agent to go over the current sales data for your home, and setting a realistic price, now.

Stubbornness: When selling your home it’s best to imagine yourself as a supple tree gently swaying with the wind, instead of a donkey with its heels dug solidly into the dirt resisting all attempts to be budged. Stubbornness can show up in many situations. When you are contacted to schedule a showing, do you leave the house? Though it’s a fact that your home has a better chance of selling if you are not there for the showing, do you refuse to be inconvenienced by having to leave? You may tell yourself that the buyers can work around your schedule. They won’t. The chance for a sale often vanishes because a buyer feels uncomfortable with the homeowner in the house, and cannot freely assess the house. Expect to be inconvenienced when you sell your home. It’s part of the process.

Being Uncooperative: Are you a partner with your real estate agent when it comes to getting your home sold? Do you resist all suggestions by your real estate agent to make changes to your home that will help it sell faster? I’ve had this conversation with home sellers many times. Is it fair that people judge your home based on the things that are not going to be in it when you move out? No, probably not. Do buyers judge your home based on those things? Absolutely. I’ve seen buyers lose their enthusiasm for a home based on a decorating theme that didn’t suit them. No matter how many times their real estate agent might remind them that they can decorate in their own style, it’s too late. The home is now referred to as the „duck home“, or the „doll home“, or the „pink home.“ Every house gets a nickname when buyers are shopping. Don’t let your refusal to cooperate stop your home from being the „perfect home.“

The sale of your home requires the cooperation of countless people, many of whom you’ll never meet. The key word here is „cooperation.“ We, as home sellers, expect those that are working to complete our sales transaction to be cooperative. What about you, the home seller? Are you willing to meet the buyer halfway in negations? Are you willing to work within someone else’s schedule to get something signed? Remember, you may be selling a property, but in the end, real estate is about humans. Be a good one.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Diana Hathaway Timmons

Returning to the Basics in Funding Real Estate

Beginning in the late ’90s, and in response to the Community Redevelopment Act, the Inland Empire and the rest of this country saw a surge of „fantasy funding“ unlike anything since the practice of buying stocks on margin in the 1920’s. Banks were compelled to make loans to potential homeowners in the spirit of egalitarianism rather than the more traditional profiling used to determine a viable loan candidate.

In response to the frenzy to fund homeowners wanting the „American Dream“, builders, lenders, and realtors in the nation became extremely successful by filling the pipeline. Financing for residential and commercial properties became „exotic“ and such loans allowing „less than principle and interest“ payments became more prevalent than conventional products. Borrowers, as well as short-sighted lenders, weren’t concerned with the realities of economics, and thus began the trend to „borrow any sum, buy at any price.“ Value had no meaning. Inland Empire properties were snatched up buy teams of investors thinking they could lease-option these homes.

The argument was, „Since real estate always goes up, it doesn’t matter how much you pay because you can always sell later for more money.“ It wasn’t trendy to finance under terms which paid down a mortgage, because equity appeared through appreciation. Debt was something to be serviced, not retired; and there was no need to be building equity through the traditional practice of retiring debt through amortization. Besides, paying down the mortgage required sacrifice, thrift, and was a slow process and building equity through the rapid appreciation experienced here in the Inland Empire was much faster and required much less sacrifice. This euphoria appealed to the fantasies of unlimited wealth and spending power.

Today, the fundamental belief in unstoppable property value has been challenged. All the requisite notions allowing such thinking now require facing principles of economics. Fortunately, many people have now begun to modify their thinking. No longer can a home buyer rely on the subterfuge of borrowing real estate purchase money without disclosing and verifying income, savings, and employment.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Mark Randall Richards

Why We Still Play Retro Games

I’ve had many discussions with people who ask me why I am still playing retro games when there are newer games that are visually better on the market. Why am I still interested in playing old arcade classics such as Donkey Kong or Mr. Do. Why have I spent a lot of time tracking down games I used to play on systems such as the Atari St, Spectrum, and Amiga when I can just buy a PS4 and play these amazing games with fancy graphics and effects. What have older games and systems got that the latest consoles haven’t?

NOSTALGIA

The world has programmed us to keep up with the times by replacing the old with the new. I replaced my Atari 2600 with a Spectrum, then later with an Atari ST, then an Amiga, and finally several PCs, each one more powerful than the last. Out with the old and in with the new is how we live our lives. Why go back to something inferior when you have something much better?

I have happy memories of discovering these systems for the first time. Playing classic adventure games such as The Secret of ST Brides and Twin Kingdom Valley on the Spectrum gives me a warm fuzzy feeling when I remember them. Thinking of the many happy hours in my bedroom playing Chuckie Egg and trying to get past the near impossible Level 40 to complete the game. Upgrading to an Atari ST and being wowed by hearing sampled sounds in a game for the first time. I firmly believe that a game doesn’t necessarily need amazing graphics and effects. It’s the pleasure you get out of a game that counts.

HIGH SCORE TABLES

Once you have completed certain games on the newer systems you may find that it’s something you might not play again for a while. After all, you know the story and you have completed the quests. Some older games tend to go on forever, each level getting harder and more challenging and have the benefit of recording your score each time you play. So you get more out of a game when you are aiming to get your name in the high score table, especially if you are competing against a friend. People would get a high score on an arcade game then go back later to see if it was beaten by another player.

EASIER CONTROL SYSTEM

Older control systems would consist of a joystick that could be moved eight ways and a single fire button. You even got the option of defining your own keys. These appeared on systems from the Atari 2600 up to the Amiga. Later systems such as the Megadrive and Nintendo offered more buttons but still kept gameplay easier. An easier control system allowed you to get into the game quicker and was the same for all games for that system. The main control system was up, down, left, right, and fire/jump. Later systems such as the PlayStation 3 started introducing many different combinations which would be displayed in tutorials as you progress in the game.

WIDER VARIETY OF GAMES

The average price of a game on the PS4 can be anything from £40 to £70 so the developers need to provide a lot for that money. This consists of hours of movie footage, huge maps that take forever to explore, and lots of fancy visual effects. On older systems, there was a wider variety of games ranging from free to budget to full commercial price. Games such as static screen platformers, text adventure games, rebound games and simply shoot em ups could be obtained that would never see the light of day on a more modern system unless it was part of a pack or from a subscription service.

NO MORE TO PAY

Once you bought a game in the old days there was nothing more to pay. Today’s games have become a money magnet where people are spending a fortune buying packs to gain extras in games wherein the older games you could earn them by completing certain tasks. Although it is possible to earn things by playing you usually find paying for something saves you many long hours of effort

CONCLUSION

The most important thing about a game is what you get out of it. No need to believe you only have to play the latest games like everyone else. There are many retro fans on Facebook who still play games on the older systems but still enjoy the odd modern game on the PS4. Now if you’ll excuse me I need to get Mario past the castle to rescue the princess.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Dean Sharples

Real Estate Lead Generation Services – A Breakdown Of Those Available

Online and automated real estate lead generation services are provided by companies that do the bulk of your lead generation work for you. In return for payment, they provide you with targeted leads of prospective clients who are investigating the sale of their home, thinking about buying a home or actively searching for a real estate agent.

But who are these companies, how do they work, what information can you expect to derive from their services, and what do they charge? For a breakdown of some of the industry’s most popular real estate lead generation companies, keep reading.

Realty Generator

Realty Generator syncs your local MLS listings with your website, manages search engine advertising spending, offers cell phone alerts, and includes CRM (Customer Relationship Management) software.

House Values

House Values is a website that lets homeowners type in their zip code and real estate property info in exchange for a home evaluation, provided by you. In turn, they collect the visitor’s contact info and pass it on to you for a nominal fee.

House By Mouse

Through a variety of websites and MLS listings, House by Mouse collects visitor information and passes it on to you. You get email updates, including those local prospects‘ contact info and, in turn, pay per lead generated. They charge about $12.95 per lead.

Realtor Exposure

Realtor Exposure works by providing you with a personal website that is designed to capture leads from buyers and sellers who are searching for home information in your area. Those leads are delivered to your cell phone or email. They also guarantee that your site will appear on the first page of search engine results, but this isn’t confirmed.

1to1Red

1to1Red allows you to set your monthly budget and then creates a personalized lead generation program based on that budget. They can manage advertising, online campaigns and pass on potential leads right to your inbox. Their focus is on quality leads and providing you with all the tracking information you need to stay on top of your marketing.

For an average of 5-15 quality leads per month with 1to1Red.com, you can expect to pay approximately $500.

HomeGain

HomeGain’s biggest selling feature is that you only pay a referral fee if you close a deal. They offer customized coverage areas for a low monthly subscription rate and, in turn, provide you with the contact information of web searchers looking for a home evaluation or realtor.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Cole Stevens

The 5 Steps to Selling Your Home on Your Own

While it’s not always advisable, it’s definitely possible to sell your home on your own – in other words, without a Realtor. If you’re organized and follow the steps below, you can potentially save 2-3% in Realtor commissions. On an average home price, this means savings anywhere from $3000 – $4500!

Now please keep in mind: this will mean spending around $1,000 up front to really do everything correctly. You can simply look at this as an investment in saving money, however, once you actually sell the home.

Step 1 – Get your home professionally inspected.

Depending on the size of your home, this will cost anywhere from $200 to $400. Almost all buyers will get a home inspected, but I recommend you – the seller – do it yourself before putting the home on the market.

The reason for this is simple: you need to know more about the home than your buyer does when it comes time to negotiate price.

Normally the home goes under contract at a specific price, then the potential buyer gets the home inspected. This puts you, the seller, at a disadvantage. The reason being, it’s better for you to know any potential problems when you are pricing the home, rather then finding them out once you have a buyer.

Let me put it this way: do you know if your home is wired up to code? Unless you’re an electrician, you probably don’t. Now think about this: which would be better, for you to know that your home isn’t wired up to code and price it accordingly, or for you to find this out after a buyer has your home under contract?

In a home negotiation, knowledge is power! It’s worth $300 to get the edge in this department.

Also make sure you get a termite inspection if termites are an issue where you live. Termites can destroy your home quickly, and many times you won’t know this until it’s too late. The good news is most termite companies will inspect your home for free as a way to earn your business. You can even have more than one company do this inspection.

I recommend you do these inspections before you do anything else. The home inspection usually takes about 3 hours, and the termite inspection takes about 1 hour. Other than letting the inspectors inside, you don’t even have to be present in the home! Most inspectors can schedule their work to be completed within a week’s time.

Step 2 – Get three contractors‘ bids on each major item that needs repair.

After the inspections, you will know what’s what. You then should consider repairing major items. These include: foundation, electric, plumbing, HVAC, framing, and roof work. If any of those things show up on the inspection report, get three different contractors to look at the issue and give you a bid. Make sure you get these bids in writing

Additionally, you’ll want to bring in contractors on any big cosmetic issues. If you have old carpets, holes in the wall, broken windows, etc, you will want to know what is costs to fix or redo them.

Now, none of this means that you need to actually fix anything. This depends on how the housing market is doing in your area. If homes are selling quickly, I recommend not making any repairs and just selling the home „As-Is,“ with the cost of these repairs subtracted from the price.

If it’s a tougher market for sellers – or what’s often known as a „buyer’s market“ – then you may need to look at getting the major items fixed or allowing for an additional „repair allowance.“

This will be a big help in your price negotiation. If your buyer brings up an issue, you will already have contractor bids in hand. You can simply adjust the price in a way that works better for you both. Plus, when you show that you’ve done your homework, a buyer is usually less likely to resist in whatever price adjustment you offer.

Step 3 – Find out what homes are selling for in your neighborhood.

I emphasize the word selling as it doesn’t matter 1) what a home is listing for or 2) what you think it’s worth. A home’s value is what a buyer is able and willing to pay for it.

You may need to consult with a Realtor to find out what other homes have sold for. Many will be happy to do a market analysis and let you know a good selling price for your home. This does NOT lock you into working with that Realtor, but make sure you let them know in advance that you are going to sell the home on your own. That same Realtor can always find you a buyer, so doing this number analysis can benefit both parties.

Pricing the home correctly is critical, so you need to also factor in the price of any repairs needed. My suggestion is to simply subtract their cost from your asking price and sell the home „As-is.“

Having the bids from contractors about the repair costs will help show your potential buyer (and the buyer Realtor involved) that you are serious and organized. It can speed up the selling process as sometimes the buyer won’t even require a new inspection, and this open transparency on your part is the key to getting a deal done fast.

Step 4 – Clean, de-junk, and stage your home

You want your home to be as clean and clutter free as possible. If this is easy for you, then by all means do it yourself. If not, I’d recommend „Got Junk“ to get rid of any clutter and then a cleaning service.

You want as few of your own personal items in your home as possible. You might even consider renting out a storage place for a few months as well.

You want to stage your home which basically means removing personal items and arranging your furniture in a simple way.

The basic idea behind staging is that your potential buyer will start to „see“ their own furniture in your house. Once this happens, they’ve started to buy your home already. It might sound strange, but homes that are staged sell 79 percent faster!

The other benefit of doing all of this is that it will make your move much easier. Let’s face it, you need to get rid of that junk sooner or later anyway. So why not do it before you move out and make a faster, more profitable home sale along the way!

Step 5 – List your home on MLS fee sites and all the other important online places

One of the best things that a Realtor can do for you is list your home on the MLS (Multiple Listing Service). There are Realtors out there that will do this for a small fee (usually around $200). They take no commission, just the upfront fee. This will expose your home to all the Realtors who have buyers.

The second thing I recommend is to put your home on Postlets. It’s a free site that will put your home on Zillow, Yahoo, and Craigslist. These sites have a huge number of potential buyers for your home.

The last thing you may want to do is put up a „For Sale By Owner“ sign. Some people prefer not to do this for various reasons related to privacy and safety. I personally don’t think it’s too important to use a „For Sale By Owner“ sign unless there are a lot of car and/or pedestrian traffic near your home.

The most important thing once you’ve done the previous 4 steps is to make sure as many qualified buyers as possible know about your home. By putting your home on the MLS and Zillow you are making serious homebuyers aware of it.

If you want to minimize tire kickers even further, you can opt to only show the home to buyers who can prove they are pre-approved by a lender or have enough cash to buy your home outright. Serious buyers will have no problem doing this, especially if it’s a competitive market.

Conclusion

Those are the five crucial steps I’ve used on every site built and mobile home that I’ve sold. The vast majority of the homes have gone under contract in less that 28 days, so it’s worked well for me – it should work for you as well!

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Carter Fisk

Are Zero-Day Inspections Deal Killers in REO Investing?

Usually a buyer of real estate had the seller give him an inspection period in which the buyer will have the property inspected by a professional to see if there is anything the buyer missed. These inspections are very inexpensive insurance for the buyer and should always be done when buying a personal residence. For investors, the inspections are equally important but often investors do these themselves.

An increasing trend in REO (bank-owned) properties is for the addendum that comes back from the asset manager or the realtor, to have a short inspection period. The usual inspection period for REO varies by the area of the country where the Reo is located. In some very distressed areas, it is not uncommon for 15 – 20 day inspection periods. In active markets, the inspection periods are usually 5 to 10 days.

The inspection period is very important to investors because this allows them to market the property to his buyers list and re-sell the property at a profit. If the only advertising medium that sold REOs was the MLS, many would go unsold as the average investor doesn’t have access to the MLS and the best buys are the REOs that are not sold in the first 30+ days on the market (DOMs). So investors put the properties under contract, provide proof of funds or letter of credit and make a deposit to the closing agent chosen by the asset manager or the realtor.

However, the REO brokers and agents may have trouble closing these deals because the investor put it under contract at too high a price. He now knows this because he can’t resell it to another investor who will rehab or keep it as a rental. Therefore, the investor uses the inspection period to get out of the contract and get his money back. This usually infuriates the realtors as they have to re-market the property all over again. If this happens too often the realtor will not only lose this listing but may lose the asset manager (bank) as a client.

A trend in REO contracting is happening that gives the buyer a zero day inspection. This means that as soon as the buyer signs the contract he can no longer get out by using the inspection period as a legal loophole. We are even seeing the realtors‘ addendums say zero day inspection while the asset managers‘ addendums allow 5 days. Obviously, this is a realtor lead movement because the outcome is detrimental to the final sale price of the property. These investors who are returning the properties are doing so because the price they paid was too high. The result is the asset manager has to drop his price to attract more buyers.

While a small group of investors are wholesalers who use the inspection period to abandon an offer, the vast majority of investors do not and these are the end-buyers who should be bidding on the properties. Because of this onerous requirement of zero-day inspection, the inexperienced investors are paying more money to the seasoned investors, often for the same properties. This profit differential could be going to the asset managers‘ accounts but they may not even know this anomaly is happening as their only input is the listing realtor.

In summary, in an attempt to have fewer failed deals, realtors have tightened the requirement of the inspection period and often the amount of the deposit. Most REO deposits are in the range of $500 to $1,000, but some realtors are requiring the greater of 10% or $5,000. The net result is fewer bidders willing to buy the properties and further price declines when the properties are finally sold.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Dave Dinkel

The Real Estate Sector

Boom & Bust of Indian Real Estate Sector

Engulfing the period of stagnation, the evolution of Indian real estate sector has been phenomenal, impelled by, growing economy, conducive demographics and liberalized foreign direct investment regime. However, now this unceasing phenomenon of real estate sector has started to exhibit the signs of contraction.

What can be the reasons of such a trend in this sector and what future course it will take? This article tries to find answers to these questions…

Overview of Indian real estate sector

Since 2004-05 Indian reality sector has tremendous growth. Registering a growth rate of, 35 per cent the realty sector is estimated to be worth US$ 15 billion and anticipated to grow at the rate of 30 per cent annually over the next decade, attracting foreign investments worth US$ 30 billion, with a number of IT parks and residential townships being constructed across-India.

The term real estate covers residential housing, commercial offices and trading spaces such as theaters, hotels and restaurants, retail outlets, industrial buildings such as factories and government buildings. Real estate involves purchase sale and development of land, residential and non-residential buildings. The activities of real estate sector embrace the hosing and construction sector also.

The sector accounts for major source of employment generation in the country, being the second largest employer, next to agriculture. The sector has backward and forward linkages with about 250 ancilary industries such as cement, brick,steel, building material etc.

Therefore a unit increase in expenditure of this sector have multiplier effect and capacity to generate income as high as five times.

All-round emergence

In real estate sector major component comprises of housing which accounts for 80% and is growing at the rate of 35%. Remainder consist of commercial segments office, shopping malls, hotels and hospitals.

o Housing units: With the Indian economy surging at the rate of 9 % accompanied by rising incomes levels of middle class, growing nuclear families, low interest rates, modern approach towards homeownership and change in the attitude of young working class in terms of from save and buy to buy and repay having contributed towards soaring housing demand.

Earlier cost of houses used to be in multiple of nearly 20 times the annual income of the buyers, whereas today multiple is less than 4.5 times.

According to 11th five year plan, the housing shortage on 2007 was 24.71 million and total requirement of housing during (2007-2012) will be 26.53 million. The total fund requirement in the urban housing sector for 11th five year plan is estimated to be Rs 361318 crores.

The summary of investment requirements for XI plan is indicated in following table

SCENARIO Investment requirement

Housing shortage at the beginning of the XI plan period 147195.0

New additions to the housing stock during the XI plan period including the additional housing shortage during the plan period 214123.1

Total housing requirement for the plan period 361318.1

o Office premises: rapid growth of Indian economy, simultaneously also have deluging effect on the demand of commercial property to help to meet the needs of business. Growth in commercial office space requirement is led by the burgeoning outsourcing and information technology (IT) industry and organised retail. For example, IT and ITES alone is estimated to require 150 million sqft across urban India by 2010. Similarly, the organised retail industry is likely to require an additional 220 million sqft by 2010.

o Shopping malls: over the past ten years urbanization has upsurge at the CAGR of 2%. With the growth of service sector which has not only pushed up the disposable incomes of urban population but has also become more brand conscious. If we go by numbers Indian retail industry is estimated to be about US $ 350 bn and forecast to be double by 2015.

Thus rosining income levels and changing perception towards branded goods will lead to higher demand for shopping mall space, encompassing strong growth prospects in mall development activities.

o Multiplexes: another growth driver for real-estate sector is growing demand for multiplexes. The higher growth can be witnessed due to following factors:

1. Multiplexes comprises of 250-400 seats per screen as against 800-1000 seats in a single screen theater, which give multiplex owners additional advantage, enabling them to optimize capacity utilization.

2. Apart from these non-ticket revenues like food and beverages and the leasing of excess space to retailer provides excess revenues to theatre developers.

o Hotels/Resorts: as already mentioned above that rising major boom in real estate sector is due to rising incomes of middle class. Therefore with increase in income propensity to spend part of their income on tours and travels is also going up, which in turn leads to higher demand for hotels and resorts across the country. Apart from this India is also emerging as major destination for global tourism in India which is pushing up the demand hotels/resorts.

Path set by the government

The sector gained momentum after going through a decade of stagnation due to initiatives taken by Indian government. The government has introduced many progressive reform measures to unveil the potential of the sector and also to meet increasing demand levels.

o 100% FDI permitted in all reality projects through automatic route.

o In case of integrated townships, the minimum area to be developed has been brought down to 25 acres from 100 acres.

o Urban land ceiling and regulation act has been abolished by large number of states.

o Legislation of special economic zones act.

o Full repatriation of original investment after 3 years.

o 51% FDI allowed in single brand retail outlets and 100 % in cash and carry through the automatic route.

There fore all the above factors can be attributed towards such a phenomenal growth of this sector. With significant growing and investment opportunities emerging in this industry, Indian reality sector turned out to be a potential goldmine for many international investors. Currently, foreign direct investment (FDI) inflows into the sector are estimated to be between US$ 5 billion and US$ 5.50 billion.

Top most real estate investors in the foray

Investors profile

The two most active segments are high networth individuals and financial institutions. Both these segments are particularly active in commercial real estate. While financial institutions like HDFC and ICICI show high preference for commercial investment,the high net worth individuals show interest in investing in residential as well as commercial properties.

Apart from these, the third most important category is NRI ( non-resident Indians). They mostly invest in residential properties than commercial properties. Emotional attachment to native land could be reasons for their investment. And moreover the necessary documentation and formalities for purchasing immovable properties except agricultural and plantation properties are quite simple. Therefore NRI’s are showing greater interest for investing in Indian reality sector.

MAJOR INVESTORS

o Emmar properties, of Dubai one of the largest listed real estate developer in the world has tied up with Delhi based MGF developments to for largest FDI investment in Indian reality sector for mall and other facilities in Gurgaon.

o Dlf India’s leading real estate developer and UK ’s famous Laing O Rourke (LOR) has joined hands for participation in airport modernization and infrastructure projects.

o A huge investment was made by Vancouver based Royal Indian raj international cooperation in a single real estate project named royal garden city in Bangalore over period of 10 years. The retail value of project was estimated to be around $ 8.9 billion.

o Indiabulls real estate development has entered into agreement with dev property development, a company incorporated in Isle of Man, whereby dev got subscription to new shares and also minority shareholding the company. But in recent developments indiabulls have acquired entire stake in dev property development in a 138 million-pound sterling (10.9 billion ruppees) share-swap deal.

o Apart from this real estate developments opens up opportunity for associated fields like home loans and insurance. A number of global have shown interest in this sector. This include companies like Cesma International from Singapore, American International Group Inc (AIG), High Point Rendel of the UK, Colony Capital and Brack Capital of the US, and Lee Kim Tah Holdings to name a few.

Following are names of some of the companies who have invested in India

International developer Country Investment

(US $ million)

Emmar properties Dubai 500

Ascendas Singapore 350

Salem & ciputra group Indonesia 350

GE commercial finance U.S 63

Tishman Speyer Properties U.S 300

Simultaneously many Indian retailers are entering into international markets through significant investments in foreign markets.

o Embassy group has signed a deal with Serbian government to construct US $ 600 million IT park in Serbia.

o Parsvanath developers is doing a project in Al – Hasan group in Oman

o Puravankara developers are associated with project in Srilanka- a high end residential complex, comprising 100 villas.

o Ansals API tied up with Malaysia’s UEM group to form a joint venture company, Ansal-API UEM contracts pvt ltd, which plans to bid for government contracts in Malaysia.

o Kolkata’s south city project is working on two projects in Dubai.

On the eve of liberalization as India opens up market to foreign players there is tend to be competitive edge to give quality based performance for costumer satisfaction which will consequently bring in quality technology and transparency in the sector and ultimate winners are buyers of this situation.

However this never ending growth phase of reality sector has been hard hit by the global scenario from the beginning of 2008. Analyst say situation will prevail in near future, and latest buzz for the sector comes as a „slowdown“.

Sliding phase of the reality sector

In this present scenario of global slowdown, where stock markets are plunging, interest rates and prices are mounting, the aftermath of this can now also be felt on Indian real estate sector. Overall slowdown in demand can be witnessed all across India which is causing trouble for the major industry players. Correcting property prices and rentals are eroding away the market capitalization of many listed companies like dlf and unitech.

Fundaments behind slowdown…

Propetry prices move because of the basic principle of demand and supply

o when demand is high and supply low prices will go up

o When demand is low and supply high prices will go down.

For example let’s assume that somebody has bought a property for Rs X and he is trying to sell the property (say after a year), there can be three options, assumption being that the owner is in need of money and cannot wait for more than 3 months to sell the property.

1. When the property prices are gliding everywhere : now owner will try to add as much premium to the property as possible, in order to book profits, therefore he will wait for 3 months and sell off in last month at the highest bid. Where he ill get total of Rs X + Rs Y.

2. When property prices have stabilized: here owner will not be able to sell at premium and book profits due to market stabilization & since he don’t want to sell at a loss, he will try to get same amount he brought the property for. Where he’ll get total of Rs X = Rs Y

3. when property prices are going down : owner will try to sell the property at least profit or least cost. Therefore he ill get Rs X-RsY.

Reality deals in major cities like Delhi, Mumbai, Bangalore, Chennai and Hyderabad have shown enormous downfall from October 2007 – March 2008. The downfall had been cushioned by fall in stock markets as it put a stop for wealth creation, which leads to shortage of capital among investors to invest in real estate activities. Apart from this in order to offset their share losses many investors have no choice, but sell their real estate properties.

Other factors which have contributed to this slowdown are raising interest rates leading to higher costs. Due to this almost all the developers are facing serious liquidity crunch and facing difficulties in completing their ongoing projects. Situation seems to be so disastrous that most of the companies have reported 50-70% cash shortfall. The grade A developers which are facing cash crunch include DLF,MGF, Emmar, Shobha developers, Unitech, Omaxe, Parsvnath Developers, Hiranandani Group, Ansal API, BPTP Developers and TDI Group. As a outcome of this liquidity crunch many developers have started slowing down or even stopped construction of projects which are either in their initial stages of development or which would not effect their bottom line in near future.

Also with increasing input costs of steel iron and building material it has become it has become inviable for builders to construct properties at agreed prices. As a result there may be delays in completion of the project leading finical constraints.

At the same time IT industry which accounts for 70% of the total commercial is facing a slowdown. Many residential buyers are waiting for price correction before buying any property, which can effect development plans of the builder.

Aftermath of reality shock to other sectors

Cement industry hit by reality slowdown

The turbulence in the real estate sectors is passing on pains in cement industry also. It is being projected that growth rate of cement industry will drop down to 10% in current fiscal. The reasons behind such a contingency are higher input costs, low market valuations and scaled up capacity which are in turn leading to reduced demand in the industry. High inflation and mounting home loan rates have slowed down the growth flight of real estate sector which accounts for 60% of the total cement demand. The major expansion plans announced by major industries will further add to their misery as low market demand will significantly reduced their capacity utilization.

Setting up new facilities will impart additional capacities of 34 million tone and 45 million tone respectively in 2008-09 & 2009-10. This is likely to bring down capacity utilization in the industry down from current 101% to 82%. Even as it loses power to dictate prices, increased cost of power, fuel and freight will add pressure on input costs.

Ambuja Cements too is trading at a higher discount than previous down cycle, suggesting bottom valuations. However, replacement valuations for Madras Cements and India Cements indicate scope for further downslide when compared to their previous down cycle valuations.

All this has added to stagnation of the cement industry.

Dying reality advertising

The heat of reality ebb is also being felt by the advertising industry. It is being estimated that all major developers such as DLF, omaxe, ansals & parsvnath have decided to cut down on their advertising budget by around 5%. The advertising industry in India is estimated to be around 10,000 crore. This trend can be witnessed due to weakening spirits of potential buyers and real estate companies call it a reality check on their advertising budgets. A report from Adex India, a division of TAM Media Research, shows that the share of real estate advertisements in print media saw a drop of 2 percent during 2007 compared to 2006. According to Adex, the share of real estate advertisement in overall print and TV advertising last year was 4 percent and 1 percent, respectively. It’s a known fact that infrastructure and real estate companies are responsible for advertising industry maintaing double didgit growth rate. Therefore its understood that a recent slowdown in iindian reality sector has made things worse for advertising industry. The Adex report indicates that the top 10 advertisers shared an aggregate of 16 percent of overall ad volumes of real estate advertising in print during 2007. The list include names such as DLF Group, Parsvnath, Sahara, HDIL and Omaxe group. However, the real estate had maximum share in South India publications followed by North and West publications with 32% and 26% share, respectively, during 2007.

According to many advertising agencies consultants, this phenomenon is taking a toll as all real estate companies want a national foot print and also these companies are turning into professionals. Therefore they are setting standards when it comes to advertising to sales ratio.

Falling stock markets knock down reality stocks

Reality stocks have been hard hit by uncertainties prevailing in the stock market. The BSE reality index is the worst performer having shed 51% of its 52-week peak reached in reality. The BSE benchmark index has shed 24% since January. The country’s largest real estate firm DLF scrip lost 54% while unitech lost 64% from its peak. The scrips of Delhi bases parsvnath and omaxe have lost 68% each since January.

The sector is facing a major downfall in sales volume in most markets of the country. The speculators have exit the market and Mumbai and NCR, the biggest real estate markets in markets are cladding subdued sales. In Gurgaon and Noida, which had seen prices almost treble in four years, sales are down 70%, leading to a price correction of 10-20%.

Lets us have a look how major cities are affected by reality downfall.

Top 4 metros taking the lead – in slowdown

Delhi &NCR

While bears are ruling the stock market, the real estate sector in Delhi & NCR region has started facing departure of speculative investors from the market. According to these developers based in region the selling of flats has become very complicated at the launch stage due to lack of interest from the speculators. Developers attribute this to stability in prices against the past where prices were up surging on monthly basis. The scenario has changed so much in the present year that developers are now facing difficulty in booking flats which may delay their projects and reduce their pricing power for instance a year ago, if 100 flats were being sold in month at launch stage now it has come down 30-40 per month. Till mid 2007 speculators made quick money by booking multiple flats at launch of the project and exiting within few weeks or months. But now due to the stabilization of the property prices little scope is left for speculators to make money in short term. Therefore outcome is their retreat from the sector.

Mumbai

Mumbai real estate market, which witnessed huge increase in prices in recent years, which made the city to enter in the league of world’s most expensive cities, is now feeling the heat of slowdown. Property sales that have been growing at a clank of around 20% every year have been plumped by 17% in 2007-08.

Though slowdown news of property market in country’s financial capital has been much talked about, but it was first time that figures proved the extent of slowdown. Information about residential and commercial property sales from the stamp duty registration office show almost 12,000 fewer transactions during the last financial year compared to the year before. From April 2007 to March 2008, 62,595 flats were purchased in Mumbai as against 74,555 in 2006-07.

According to reality analyst sales volume can die out further in south as developers persist on holding to their steep prices and buyers anticipate a further fall with current rates beyond reach. They further add that market is on a corrective mode and downward trend is anticipated for another 12 months.

Between 1992-96, the market ran up the same way it did during 2003-07. Post-’96, the volumes dropped by 50%. This time again it is expected to drop substantially though not so steeply. The demand is now extremely sluggish and customers do not want to stick out their necks and transact at prevailing rates.Chennai in past few years we witnessed reality index gaining huge heights on BSE and it also impact could be felt allover India. Amongst them Chennai was no exception. With IT boom in past few years and pumping of money by NRI’s have led to prices touching skies. Chennai also witnessed a huge boom property prices over the last few years. However in past few months it has been facing slowdown in growth rate.

Following factors can be attributed to this:

o This is one of the common factor prevailing all over India- rise in home loan interest rates, which has made it extremely difficult for a normal salaried person to be able to afford a house.

o Depreciation of US dollar, which means NRI’s who were earlier pumping money into the real estate are now able to get less number of rupees per dollar they earn in US. Therefore many of them have altered their plans for buying house in India.

o The Chennai Metropolitan Development Authority (CMDA) has imposed stricter norms for apartment construction and penalties for violations are more severe than before.

o Failure of the legal system of chennai to prevent intrusion, forged documents and illegal construction has added to the problem as many NRI’S are hesitating to buy plots in chennai.

o Apart from this tsunami of 2004 has shaken the confidence of many investors to invest in real estate.

However many analyst are quite bullish about this region. Especially in areas like old mahabalipuram, south Chennai etc because of numerous IT/ITES/ electronics/automobile companies are expected to set up their centers in these areas. Once these projects are complete and companies begin operations their, many people would like to live near to such areas and outcome will be boom in residential sector.

Bangalore

As discussed for above cities Bangalore is also dwindling between the similar scenarios. Bangalore seems to be in midst of low demand and supply. This trend is due to myopic developers, due to sudden growth in Bangalore in last few years, lot of builders have caught the opportunity of building residential houses thinking their will be lot of employment, increase in salaries and hence demand for housing. Past few years have been jovial for Bangalore as IT industry was doing well and banking and retail sectors were expanding.

However with this sudden economic slowdown, due to which Indian stocks markets are trembling, interest rates are high, jobs and recruitment put on freeze have led to cessation of investment in local property markets.

According to the developers real-estate industry of Bangalore has experienced a drop of about 15- 20% in transaction volumes. Adding to it grade A developers have faced a dropdown of 50% on monthly levels of booking compared to what they enjoyed in December 2007.

Future outlook

The real estate explosion in Indian real estate is due to by the burgeoning IT and BPO industries. The underlying reason for all these moves is that the Indian real estate is tremendously attractive, because of basic demographics and a supply shortage. Truly Indian real estate is having a dream run for last five years.

However in the current scenario Indian real estate market is going through a phase of correction in prices and there are exaggerated possibilities that these increased prices are likely to come down.

In this scenario hat will be the future course of this sector?

Many analyst are of view that tightening of India’s monetary policy, falling demand and growing liquidity concerns could have negative impact on profiles of real estate companies. Slowing down would also aid in the process of exit of some of the weaker entities from the market and increasing the strength of some of the established developers. A prolonged slowdown could also reduce the appetite of private equity.

Its also been projected that large development plans and aggressive land purchases have led to a considerable increase in the financial leverage (debt/EBITDA) of most developers, with the smaller players now being exposed to liquidity pressures for project execution as well as a general slowdown in property sales. Property developers hit by falling sales and liquidity issues would need to reduce list prices to enhance demand, but many still seem to be holding on to the asking price – which, would delay the process of recovering demand and increase the risk of liquidity pressures.

It was being witnessed that before the slowdown phase the projects were being sold without any hook at an extravagant rate. But at present negative impact is highly visible as lot of high end projects are still lying unsold. In such a scenario, there may be blessing in disguise as high profile speculators will be out making way for the actual users.

But here also sector faces trouble as correction in prices has been accompanied by increase in home loan rates by the banks which have led to erosion of purchasing power of middle and upper middle class majority of whom are covered in the category of end users or actual users.

Therefore for future of real estate sector analyst call for a wait and watch method to grab the best opportunity with the hope of reduction in loan rates.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Manish Marwah

Buying a Property in Cyprus – A Good Investment

Known among many as the „Island of Love“, Cyprus is one of the most famous tourist destinations and the 3rd largest Mediterranean island attracting thousands of tourists every year. There are many reasons why so many people opt to buy a property in Cyprus.

As well as the warm climate which prevails throughout the year; Cyprus is home to many breathtaking beaches, world class cuisine and conditions suitable to peaceful living.

People say Cyprus is the place to go when one is retiring. It allows a simple and a leisurely life where people devote a greater part of their time to meeting friends and relatives, organising social gatherings and other pleasures in life. Cypriots are a friendly people who welcome visitors warmly. It is an ideal country for those who want a slow paced peaceful life.

Cyprus is an unpolluted country and buying a property in Cyprus can be a great investment since the property value is considerably higher than other European countries. Buying a property can be intimidating and a time-consuming task which can deter a lot of people. However, people can seek the assistance of property sellers and resellers based in Cyprus who are experts when it comes to buying a property there. The most practical and advisable procedure is to check out the options with them.

Whether it’s a beach-front property, a convenient town house within easy access of all the local amenities or a peaceful country house in the suburbs, property sellers can easily find the best location for you.

Owing to the improvements in international trade, tourism, public services, education and medical facilities, a recent survey has shown how the economy of the country has improved dramatically. In addition, there is a highly developed transport infrastructure so one doesn’t have to worry about getting around.

One reason why most people opt to buy a property in Cyprus is the low cost of living and with the entry of Cyprus in to the European Union more benefits have been added in relation to human rights.

Cyprus is a haven for those who love fun and entertainment. Night life is active in major towns and restaurants and cafeteria are in abundance. Cyprus is home to a large number of sites listed in UNESCO. Tourists fall in love with the wonderful beaches, mountains and scenic locations. It is also a great location for outdoor activities such as hiking, cycling, skiing, bird watching and walking. Among the most famous sites are Akamas national Park, the Troodo Mountain range with Mount Olympus, the Church of Ayios Lazaros, Stavrovouni Monastery, the Byzantine Museum, Tamassos – ancient city kingdom and many Tombs of the Kings.

Considering the above attractions and advantages, it is no wonder why so many people vie to have their own property in Cyprus.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Allison Cooke

6 Tips To Help You Buy A Condo

The condo is short for condominiums. Typically, a condo is one unit in a multiple-unit real estate. In other words, it’s a building or community that looks like an apartment. Plus, it may include public places, dog walking areas, gyms, playgrounds, swimming pools, and parks, just to name a few. In this article, we are going to share a few tips that may help you buy a condo. Read on to find out more.

1. Consider your Lifestyle

If you don’t like to mow the lawn, condo living can be an ideal choice for you. Similarly, if you can’t afford to spend $5000 on your HVAC system, you may consider this option. On the other hand, if you like a large backyard, you may give a go to a different type of property, such as a townhouse.

In the same way, if you don’t like to share the floors, ceilings, or walls of your house with your neighbor, a condo may not be a good choice for you.

2. Work with a Good Realtor

Make sure you look for a good real estate agent should you have made your mind to buy a condo. Ideally, it’s better that you find someone who enjoys a good track record and plenty of experience in the field. They will guide you through the process.

The real estate agent may have a great idea of the developments in your area and the issues they may have.

3. Decide on the Type of Amenities

Condos may provide a list of amenities. If you work with a good real estate agent, don’t forget to find out about the type of amenities in your area. Besides, you should consider other important factors, such as your budget and the location. This will help you find the best place.

Don’t forget to leave out amenities that you don’t want to have, such as a swimming pool. But having these amenities may still worth it as they will add to the curb appeal of the property.

4. Look for an FHA-Approved Condo

Getting a mortgage against your condominium involves more complications than other types of properties. The reason is that the development of the condo may go through scrutiny including your personal finances.

If you check the website of the FHA, you may find a list of condos that are approved. Therefore, we suggest that you get help from a good mortgage professional.

5. Find out About the Maintenance Aspect

It’s important that you know to find out who is going to take care of the maintenance of the condo. After all, you don’t want to end up with a condo that is not properly maintained. Apart from this, poor management may have a negative impact on the value of your property.

Therefore, it makes sense to find out who is going to supervise the maintenance of your property.

6. Consider the Association Fees

Aside from the mortgage, make sure you consider the condo association fees as well. If you review the fees, you will come to know what it includes. Typically, the services include cleaning common areas, lawn care, and snow removal, to name a few.

It’s a good idea to know the house rules of the community. There may be some noise level restrictions. If you understand these regulations in advance, it will help you find out whether the community is the right one for you.

In short, if you follow these tips, you can make the best choice.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Shalini M

Tips To Sell Your House Quickly For Cash

Traditionally, when it comes to selling a house, people were getting in touch with estate agents for getting their property appraised and for installing a signboard in the yard and they were waiting for potential buyers. But, when this technique is followed in the current situation, where you are in need of immediate money, this option will not work out as it will take a longer period for the sale deed to complete. After waiting for long, if the right buyer cannot be found, your plan to go for a new house will go in vain.

If you are intending for a fast house sale, you should search the option for achieving the same and this is possible in the current circumstances as there are firms offering this sort of service. These firms are actually running with the team of house cash buyers, who are ready to provide immediate cash for the houses. They can get the work done at a faster pace as compared to an agent. These service providers have clearly specified on their website as to how do they operate and how they make the dream of the sellers to come true immediately within a short period of just seven days.

Some of these firms are providing different options for the sellers to select from. They can either go for an option of selling within 7 days or they can also opt for a sale within 30-60 days, where they can get 80% of the market value. They also market the property via their network of quick buyers and local agents for homeowners selecting the second option. In both these options, they take care of the valuation and legal fee and the sellers are also relieved of paying the estate agent fee.

Some of the best firms offering fast house sale are providing free evaluation to the sellers. Once they receive an online application from the homeowners, their representatives will be visiting the house for making an evaluation and will make the quotation accordingly. Even, some of them are providing a guide for quick sale via their website as they have a network of house cash buyers.

Some of them are assuring a good sale price and as they list the property via their portal, it can easily get the attention of intended buyers. They are also assuring an average sale-time of 12 weeks, which is actually 8 months when you hire a real estate agent.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by John S. Mavrick

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