Dean Graziosi | Dean Graziosi Real Estate | Dean Graziosi Investment

So you’ve narrowed it down to two houses, but aren’t sure which one you want to buy? Making a final decision can be difficult, after all you are investing in a place to live for at least five or so years. When you are faced with a choice like this, there is only one thing to do. Compare them.

Comparing the features of each house will be hard if they are very similar. Then there is a problem of one house having some of the features you want and the other house possessing a certain characteristic or quality you just can’t refuse. Since you can’t merge the two properties into one, or at least not easily anyway, you will have to actually decide between them.

So, how to go about choosing which house to call your home without sustaining any regrets? Begin by allowing the rational part of your brain to make the decision. While you’ll likely have a lot of emotion tied up in the house buying process, a decision based on it will probably be more impulsive than well-thought out. A home is an important investment, and deciding too quickly can lead to a lot of dissatisfaction if you aren’t careful.

Look at the circumstances particular to your decision. You may not be able to take a lot of time, or in some cases even a little, to make your decision. This means comparing the features of each home very quickly.

Consider outside factors when making a choice between two different houses. For example, perhaps you need to be on a bus line. One property is actually on a public transit line while the other is close enough for you to walk to the bus. Here you will need to consider factors such as possibly harsh winters, rainy days, and the amount of time it will take for you to walk to and from the bus each day. Buying the property that is on the transit line will require less walking while the other will mean leaving earlier in the morning and getting home later in the afternoon. What it all comes down to is what you are willing to do or what is most convenient for your specific set of circumstances.

Make a list of your needs and those of everyone else in the household. Then figure out if you have the budget to cover them. The house you choose may depend on these, especially if one property will be  significantly more costly to buy and maintain than the other. Though you may want the higher priced home, you may be better served to go with the less expensive option and save money over time.

Feel good about your decision. This is absolutely a must. Decisions that are made too quickly or on impulse often don’t net positive results in the end. Remember you will be living in your new home for quite some time, so carefully consider all options before signing on the dotted line.

When selling a home, especially for the first time, there are several mistakes that are commonly made. Some of these can be quite costly. The more of these you can avoid, the better.

Selling is all about strategy. The more prepared you are, the better. The better you understand the market and what makes a house sell, the less money you’ll spend in the end.

Mistake One: Don’t put your home on the market before it is ready to be there. This is commonly seen with sellers who are up against a strict moving date or have simply procrastinated until there is no time left. Naturally, both these scenarios cause problems. Instead, take your time. Write down everything that needs to be done before you sell the home and make out a schedule for accomplishing each task. You’ll be happy you did once the house is on the market as it will be likely to sell more quickly.

Mistake Two: Avoid over-improving your home. Making too many improvements can cause your property to stand out too much from those around it. Sure room additions and other features are great, but when they look too obvious they begin to cause problems.

Mistake Three: Don’t base your asking price on what you wish to net. This usually always ends in failure to sell. While you will be able to control the asking price, you won’t have a great effect on the sales price. This will be determined by the market at the time of sale.

Mistake Four: Do not hire a real estate agent based on non-business related factors. Though it is natural to support new agents because you know them, it may not be the smartest move. When selling your home, you want someone with a proven track record. If you decide to use someone you know, be sure that person has a mentor to rescue your deal should something go wrong.

Mistake Five: Avoid getting all your emotions wrapped up in the actual selling process. Once you make the decision to sell, it’s all business from there on out. In order to prepare and sell your property  successfully, you’ll need to begin thinking of it that way.

Mistake Six: Do not attempt to cover up any issues that exist with the property. This can only lead to law suits later on. You can avoid them by disclosing information about problems and repairing those that are significant enough to cause concern. Not telling a buyer information he or she should know will only come back on you on down the road. Most states are equipped with a disclosure form you can use for this purpose.

Mistake Seven: Don’t ignore what your agent tells you. If you have hired someone who has been in the business for quite some time, odds are this person is better acquainted with the buying and selling process than you. The advice you receive will be quite valuable and is definitely worth considering. Ignoring it may wind up costing you a lot of time and money. 

Business owners are always looking for ways to lower their overhead costs and now Office 2.0 is giving businesses a new use for space.  The term Office 2.0 refers to a form of cloud computing that allows multiple users to share the same computer resources.   Businesses who run these sorts of operations are finding they are able to use less physical space to house their companies.

One of the main reasons they are able to run their business from a smaller building is that there isn’t a need for the company to house their own server room.  Server rooms tend to take up a large amount of space that essentially is just a waste of money.  Not only are they a waste of space, but they also require extra cooling mechanisms which means more power use which means more money spent on servers.

Office 2.0 gives businesses a new use of space because the products they need will be housed in the internet cloud on a remoter server.   Businesses can now use that wasted server room for something that could potentially make them money instead of cost them money. 

Businesses who use Office 2.0 are also realizing that they can allow some of their workers to be full-time or part-time telecommuters.  Virtual offices allow workers to access all the systems they need from anywhere that has an internet connection.  If a company is able to reduce the amount of staff that needs to be in the office every day, then they can also reduce the overall space they need to lease or purchase. 

Office 2.0 has also changed the way businesses use their internal space to create a more collaborative environment where employees are encouraged to work together more freely.  The cloud computing environment allows documents to easily be shared with one or more people with the simple click of a mouse.  This means that business owners who run these types of environments are looking for wide open spaces rather than cordoned off office units. 

 Some property owners are getting nervous that businesses will stop leasing large spaces because everyone will be working from home, but that probably will never happen.  Even with the ability for managers to monitor remote workers, there is still something to be said for giving a team of workers a home base where they can interact with each other face-to-face. 

However, property owners who rework their available spaces to better suit Office 2.0 businesses new use of space will have a better shot at leasing their properties.  The real upside is wide open spaces are a lot cheaper to turnover than ones where walls need to be torn down or built up.  

Choosing to sell your home is a big decision, and one not to be taken lightly. Another important decision that goes along with it is who to trust with your time and money to make sure you get the best possible outcome. Realtors can help in this endeavor, but the big question is, how much will it cost you?

A realtor’s services are technically free to buyers, because their pay comes out of the seller’s commission. The “typical” commission for realtors is 6%, though Frank Borges Llosa of FranklyRealty.com explains that this is a figure that got stuck in the public’s head as the “norm” rather than an actual average commission price—in fact, the average realtor commission in 2010 was 5.4%. The reason the idea of the 6% commission has stuck is because, though the commission comes from the seller, it is usually split 50/50 between the buying and selling agents. Many agents have an Exclusive Buyer Agent Agreement that insures they will be paid a 3% commission; therefore, if a selling agent is selling a house for less than 6% commission and plans to split it 50/50, it could jeopardize the sale. In that type of situation, if a buyer was still interested in the house they might have to pay the difference in commission to their agent.  The same is often true of short sales, which typically only offer a 2.5% commission to the buying agent. However, if a selling agent lowers the commission, the buying agent’s will usually still be 3% or higher and the selling agent’s is the one that will go down.

Now, is quibbling over half a percent really such a big deal? Well, consider this: for a $500,000 home, each percent is $5000, meaning that a mistake in your commission could be incredibly costly. But is it worth it? A study published through Kellogg School of Management at Northwestern University and written about in the New York Times found that having a realtor didn’t necessarily boost the price of the sale, going against the idea that a realtor’s commission is a reasonable cost because they sell the house for a higher price than you could have by yourself. The study found that homeowners who sell on their own are generally more knowledgeable about the market, more patient, and more willing to negotiate than homeowners who pass off a lot of the responsibility to a realtor.

Llosa urges sellers to remember that you don’t always get what you pay for when it comes to realtors. Some 6% commission realtors don’t pull their weight, while others will go above and beyond for less than 6%. It’s important to meet with several different agents to find the right fit.

There are some ways to reduce your potential commission cost, one of which is to negotiate the commission with your agent. This is especially applicable if the house is priced fairly high, but is still worth a shot even if it’s in the middle ground. It never hurts to ask; they might agree! If this route doesn’t work, you can always try a big chain for discounts and rebates. California-based ZipRealty docks commission and gives a rebate, while sister websites LendingTree and RealEstate.com offer non-cash rebates such as airline miles or gift cards.

Still, if a realtor isn’t the right decision for you, you don’t have to go completely alone. FSBO.com (For Sale by Owner) offers access to the Multiple Listing System for a flat fee, allowing the exposure you’d get with a realtor without the cost.  There is a whole slew of other websites who are willing to help with parts of the process; you just need to figure out what you can do yourself and what you’d rather pay someone else to do.

It is common for many homebuyers to make a decision based on their emotions.  They may end up overpaying for a home simply because they have fallen in love with one particular element of the home or they may end up letting a good deal slip through their hands because they have a negative feeling about something in the home.  These decisions are signs of an emotional buyer, and we are going to give your some tips on how you can avoid this from happening to you.

Some buyers may pass on a home that is in great condition and relatively inexpensive because they believe that something better will come along.  This has become more of an expected way of thinking since home values became so low.  Many buyers will see a home that has everything they are looking for with a price that is within their budget or in some cases even under their budget and they will simply walk away from it.  To avoid this from happening to you, it is recommended that you conduct some research on the area you are interested in living in.  This will help you notice a good deal when it shows up.

Another common problem that buyers encounter is falling in love with a home at first sight.  This can cause you to overlook flaws that may have otherwise convinced you to walk away from the home.  It can also lead you to pay too much for a home simply because you believe you cannot live in any other home except for that one.  Buyers who are acting in this manner also often overlook key elements when rushing back to their agent’s office to submit an offer.  In many cases it is these details that can end up ruining the deal as time progresses. 

Overpaying is another common issue among potential buyers who are letting their emotions control their decisions.  This commonly occurs in buyers who believe that they have found the perfect home.  To ensure that no other buyer takes this home away from them, they will often end up overpaying.  This can happen when more than one party is interested in a particular property and a bidding war get started.  In order to make the home their own, a buyer will likely pay any price even if it is well above their budget.

Purchasing a home is a huge decision, in order for you to make the best decision possible it is recommended that not allow your emotions to force you into making an irrational decision.  Acting on your emotions can leave you with a huge case of buyer’s remorse and stuck in a home that you now regret overpaying for.

There are many different types of services available that can help buyers and owners navigate the real estate world on their own.  While these may be appealing to both parties because there is relatively little fees involved, some deals may still require the use of an experienced real estate agent.  Saving commission fees may be a money saving decision, but there may be situations that arise where you will wish that you had enlisted the help of an experienced real estate agent.

Working with a real estate agent will grant you access to more available homes.  Agents are often aware of more homes that are for sale than someone acting alone may be able to find.  Because agents are regularly sharing listings with one another in the hopes of closing a deal, they are aware of the homes that they have listed as well as those that other agents in the area have listed.  This opens up your available selections a great deal.  Rather than simply being able to view the homes that you stumble across while driving around town or looking online, you will have access to homes that may not have even been listed yet.

Another reason why it is wise to work with an agent is that they are experienced in negotiating prices.  Trying to negotiate the price of a home can be a tricky process, especially if you have never done it before.  While you may believe that you have excellent negotiating skills, you may find them tested when it comes to negotiating with a seller who is unwilling to budge when it comes to their listing price.  An experienced real estate agent has been through the process many many times; they know how to handle sellers and work a deal that will be beneficial to both parties.

Unless you have a legal background, understanding the fine points of a real estate contract can be somewhat confusing and overwhelming.  This is one of the most vital parts of any real estate deal, if you make an error during this step it may end up costing you money that could have been saved had you enlisted the help of an experienced agent.  Experienced real estate know which elements should be included in a real estate contract; they also know which clauses should not be included and areas where the seller may try to gain an advantage in the sale.  To avoid paying money that you don’t have to, or agreeing to terms that are not fair, you should work with a real estate agent.  As tempting as it might be to try to navigate through the process alone, it is always a wise decision to have someone in your corner that has the experience needed to ensure that you do not make any costly mistakes.

A person that decides to invest in real estate doesn’t just wake up one day and decide to go out and purchase a property and think they will make money. It takes time and a well thought out strategy to decide what approach is the best for that person.

In order to invest in real estate means that you need to have to have the finances, or the credit to obtain loans to actually purchase real estate. You will also need to be able to deal with the financial responsibility as well as have the time to maintain the condition of the properties that you purchase.

Within a person’s strategy will be the decision of what type of real estate they will be investing in. There are several types of investments that a person can choose from whether it is residential property or commercial, industrial and or offices, as well as the purchasing of land for further development.

When looking at a residential property an investor might look at the possibility of purchasing properties that are going through a foreclosure and deal with the homeowners directly or they might decide that they will only purchase a property that will require a very minimal amount of updating so that they can obtain a potential home for resale profit.

 If someone decides that they will choose the commercial property route of investing, they will need to know that this type of investment takes longer to accomplish then it would by purchasing a residential one. Whether you decide to purchase an office building or an industrial property or land for future development, you will need to be able to decide what your goals are and then purchase according to that particular strategy.

In order for any real estate investor to achieve their financial goals, they will need to create an investment strategy that includes when they will begin purchasing, have a well-planned strategy for completing their goal, know what their financial objective is, as well as planning what timeframe that the investment will be completed in.

There have been changes in real estate that are noticeable enough to think about becoming an investor in real estate in the near future. Now is the time to start educating yourself, start talking to others that specialize in real estate investments, start making your plans, goals and strategy. Now is the time to take advantage of the lower costs and lower interest rates, because the prices will eventually rise along with the interest rates, don’t sit around waiting because it will happen eventually.

Without a well thought out plan that includes how you will obtain your investment goals you will not be successful at choosing a real estate investment. 

One of the most important factors of selling a home is the exterior. What prospective buyers see at first glance will make a huge impression on them. There are several steps you can take to ensure that what they see will be appealing and enticing enough to raise curiosity.

Pay close attention to the landscaping and lawn. Plant flowers and shrubbery around your home that will give it some color and character. Installing flower beds or boxes is also a great idea because they can set your home apart from others in the neighborhood.

An immaculate lawn will also go a long way toward buyer enticement. Make sure the grass in all yards is cut and that all trees and shrubs are trimmed. A neat lawn and well-landscaped home will sell more quickly.

Remove any clutter from the area surrounding your home. This means cleaning out the garage or carport and getting rid of items sitting in the yard. This looks much more appealing and gives buyers the opportunity to picture themselves living in a clutter-free environment.

Paint the outside of your home. Peeling paint will make your house look old and shabby. Adding a little new color can go a long way toward selling others on the idea of buying your home.

Clean the gutters. While this may not seem as important, in reality it can really matter. Taking the time to remove leaves and other types of debris from the gutters will exhibit the great care you take of the space in which you live. It will also dramatically improve the appearance of your home.

Replace your roof if necessary. A damaged roof likely won’t pass inspection, so you might as well take care of this before putting your home on the market. It will also add to aesthetic appeal.

Install or replace siding on the exterior of your house. There are several different types to choose from, all of which will improve your home’s appearance while providing protection.

If you have a wooden front porch or deck in the back, assess whether or not any repairs or replacements need to be made. Boards can become warped or loose over time and need to be replaced. This is especially true of a wooden porch or deck that was left untreated. If the entire structure is damaged, consider replacing it altogether. Prospective buyers will feel much more comfortable about walking on sturdy boards that aren’t exhibiting wear from water, weather, or age.

Taking care of your home’s exterior is just as important as tending to the interior. People driving by your house will notice the appearance and will likely never ask to see the inside if it doesn’t look appealing. On the other hand, a well-cared for exterior will go a long way toward a prospective buyer requesting a showing.

You have finally found the home of your dreams after searching for months, everything has fallen into place, the price is right, the neighborhood is perfect and your agent feels that the deal is excellent.  But do all of these things mean that your potential home can be a money pit?  It is possible, home buyers often become so infatuated with a home that they may overlook certain flaws in the home which could end up being costly later.

To help you avoid purchasing a home that may be a money pit, we have compiled a list of areas that you should carefully inspect prior to purchasing the home.  These are some of the most common areas that potential home buyers tend to overlook when inspecting a home. 

• The Basement – If the home you are considering purchasing has a basement you should make this the first area you look at.  Carefully looking at the basement will provide you with a quick understanding of the care that was taken by the owners.  The basement holds a lot of valuable information, from the type of materials that were used to construct the home to care and quality of work that the builders put in when building the home.  It is also where the heating, cooling, electrical and plumbing systems are generally located.  By carefully looking at those elements, you will generally be able to form an opinion as to how old the equipment is and how well it has been cared for.  The basement will also show any signs of flooding or water damage that may have occurred.
• Schedule a Tour During Bad Weather – it is common for many potential homebuyers to schedule a tour of the property on a nice warm sunny day.  But to get a true idea of how the home handles inclement weather, you should tour the home when bad weather is expected.  Visiting the home during a heavy rainstorm can help you notice any areas of the home that may be experiencing leaks.  You will also be able to notice if an excessive amount of air flow comes through the home during a storm.  This may be an indicator of poor insulation or weather proofing.
• Consider The Design – Many potential homebuyers may find that they are drawn to one particular area of a home and focus on that.  While that may what initially attracted you to the home, you should also carefully consider all design aspects throughout the home.  There may also be design features that may not be as sound as the rest of the home; these areas should be noted before you make an offer.

There are many misconceptions associated with becoming a landlord, it’s easy and won’t take much of your time; all you have to do is sit back and wait for the rent checks to come in.  Many landlords wish that was the case, there is a lot of hard work associated with becoming a landlord and you should be aware of everything that is involved before you decide whether or not becoming a landlord is the right decision for you.

One of the first things you are going to need in order to become a landlord is a rental property.  Some people may think that all they need to do is go out and purchase an investment property wherever they find one.  This couldn’t be further from the truth, in order for your rental property to produce the income you would like, it should be located in the proper area.  For your rental property to be productive it needs to be located in a low vacancy, fair credit area.  This will help ensure that your property does not sit vacant for long and that it is rented by tenants who can afford to pay the rent.

Finding the perfect investment property can be a time consuming process.  Before you get started you need to ask yourself if you are ready to spend countless weekends and evenings looking at properties.  If you do not put in the proper care when choosing a rental property you may end up losing money because you jumped at the first property you saw.  You need to spend as much time as possible visiting different neighborhoods, investigating crime statistics and ensuring that you choose the best possible investment property within your price range.

The second step in becoming a landlord involves managing the property once you have purchased it.  Many prospective landlords have the misconception that homes rent themselves and that all of their tenants will pay when the rent is due.  This is not how it works.  In order for your home to be rented in a timely manner it is important that you properly market the property.  When interested parties contact you, it is your responsibility to perform any credit checks or look into their employment history.  While they may tell you that they have perfect credit and a stable job, you may discover otherwise once you have performed the proper research.

In addition to marketing your vacant property, as a landlord you are also required to deal with any unforeseen issues that may arise.  These include floods, plumbing problems, broken appliances, leaky roofs.  If a problem should arise in any of these areas, it is up to cover any costs associated with the repairs.  Becoming a landlord can not only be a time consuming process but it can also be an expensive one as well.  Before committing to becoming a landlord you need to take all of these scenarios into consideration.  Make a well informed decision and weigh all of your options before committing to becoming a landlord.