Philippine condotels open the door to lifestyle real estate

Condotels, Studio Flats, Apartments, Buy to Let Properties, “How This Little-Known Real Estate Investment Opportunity Could Be Your Secret Weapon To Building Wealth”

The big picture about Philippine Condo-Hotels or “Condotels” one of the hottest products in today’s Real Estate market. Imagine Hotel Style Living 365 Days a Year!

Condo-Hotels provide the resident unit owner with more facilities than regular Condominium buildings. Unit Owners in a Condotel enjoy the benefits and privileges of full Hotel Services in a Residential environment. Condo-Hotels are also the newest trend in vacation home ownership. Live in it when you’re there, and rent it out when you are not. These types of projects are becoming more and more attractive for businessmen, vacation homebuyers and individual investors not only because of the superior facilities and amenities but more importantly the attention to maintenance of the buildings through the 24-Hour Condotel operations

Philippine Condotels open the door to luxury or “Life Style” Real Estate

Many new real estate investors hesitate to jump into the luxury real estate market. They either don’t know how to jump in or where to begin, or they think luxury real estate is too far out of their reach. While it’s true that the price tags on luxury properties can be staggering, especially for individuals new to real estate investing, the only way to get used to dealing with luxury properties is to get started. Condotels offer an excellent way for real estate investors to become quickly acclimated to luxury real estate

The luxury real estate market is not going away. It’s growing steadily, driven by strong demand. Much of this demand comes from a young demographic, which means in the long run, the demand for luxury real estate is likely to increase significantly. As a real estate investor, this is the time for you to become involved in the luxury market, before prices rise further. Your appreciation potential can be tremendous, and the right condotel properties in the right locations can play a significant part in your luxury real estate portfolio

If you’re going to become involved in luxury real estate, including condotels, act confidently. Even if you’re new to the luxury “Life Style” market, act as if you’re familiar with it already. Too often, newcomers fail to do well in luxury real estate because they become overwhelmed. They go to see luxury properties and they act as if they’re overly impressed, as if they’re not used to being around luxury real estate

This is a problem when buying and selling. If you act too impressed or overwhelmed when you buy luxury real estate, including condotels, you won’t get the best deal. If you act too desperate to unload the luxury property when you sell, as if you’re afraid to hold onto it because it’s out of your league, you won’t get the best deal either. In order to succeed in luxury real estate, in order to gain the most profit out of your luxury condotel properties, you have to act comfortable with luxury, even if you’re not

Condotels can help you open the door to dealing in luxury real estate. While to best condotel properties are pricey, they still cost less than some luxury homes you might want to become involved in down the road. Financing is increasingly available for condotel properties. Condotels are located in all the best real estate markets, the places that draw tourists, businessmen, luxury buyers and investors. And condotels are a hassle-free investment, a great way to diversify your portfolio while getting started in luxury real estate

When you select the right condotel property, backed by a reputable builder, in a hotel that offers great service, you won’t have to worry about attracting the right renters and buyers. A professional hotel management will keep your condotel unit occupied with renters, with some condotel properties, one week’s rental can cover a monthly mortgage payment, and they will practically bring potential buyers to your door when you wish to sell the property. When you stay in the condotel yourself, you will become increasingly acclimated to luxury living and understand what your buyers are looking for..

If you can appreciate the long-term growth potential of the luxury market, if you’re willing to jump in and not be overwhelmed or intimidated by luxury properties, you can expand to a new level of real estate investing and develop a lucrative portfolio. The right condotel properties in the right locations can be a great way for you to become involved in luxury real estate

To get started, lean more about the demographic that is driving the luxury real estate market; visit and become familiar with luxury properties, including staying in hotels in the area, for example the Waterfront Airport Hotel in Mactan; and follow the big builders to the best condotel properties in the hottest markets, like Mactan, Cebu and Metro Manila

If you’re willing to become involved in “Life-Style” real estate, via condotel investments in the Philippines, you will have a distinct advantage over other investors that hesitate to enter the high-in-demand realm of lifestyle properties and you need look no further than investments in the Lancaster Cebu Resort Residences in Mactan, Cebu or the Lancaster Suites, Shaw Boulevard, Metro Manila

For those planning to reside in Condotels in Cebu or Manila, Pacific Concord Properties Inc Lancaster Suites owners & residents can utilize the services provided by the Condotel, such as the swimming pool and other recreational facilities, restaurant & bar, concierge, 24-Hour housekeeping and room service.

For further info please do not hesitate to contact us:

Beth Collingz

PLC International Marketing Networks

Fixer-uppers what to fix

You've bought a house, a fixer-upper you can make some money on. What improvements and repairs should you make? First of all, you need to know this before you buy, as I explained in another article. Before and after you buy, though, you need to have some simple rules with which to start analyzing possible fixes.

Return On Investment

A young couple was very disappointed when I told them there house was worth $110,000. "We just put $40,000 into remodeling the kitchen!" they told me. I looked at the kitchen. It was nice. They had added $10,000 in value to the house by spending $40,000. This is a classic example of a bad return on investment.

With fixer-uppers, you have do things which give the most "bang for the buck." Aim for a three-to-one return on improvements. If you're going to resurface the driveway for $1000, it better raise the value of the home by $3,000. Even when you're just guessing, keep this three-to-one formula in your head, if you want to invest safely.

How To Fix A Fixer-Upper

With things like new curtains, you can't really estimate the increase in value. What you can do, though, is group together the many small repairs and improvements you are considering, and imagine how the house will look when you are done. Then you can estimate whether you will have increased the value enough to justify the cost.

It often is in the small details that you'll get the best return on investment, so look at these first. A new mailbox, flowers on the porch, a raked yard and trimmed trees - $30 total if you do the work yourself - can make a big difference in the first impression potential buyers have. First impressions are important.

Other small investments that pay big include shiny new switch covers (less than $1 each), shelves, a birdhouse, new doorknobs, new light fixtures, curtains, new rocks or wood chips on outdoor paths, new faucets, new woodstain on decks, and general cleaning. Stand in front of the house and imagine what it might look like with various small improvements (flowers, wood-rail fence, birdbath, etc.).

The Big Fixes

Obviously, there are things that just have to be repaired. The basic systems must function. Improvements, though, should be subject to the three-to-one rule. You may have to get creative here. An investor friend of mine once had a wall put up, and for less than $1000 created a new bedroom, probably raising the value of the house by $8,000. Now that's a good return on investment.

Bathrooms and kitchens are important. A $1000 updating of a bathroom can add $4000 in value to a home. Spend $2000 wisely in the kitchen (New fridge, re-finish the cupboards, add a garbage disposal, etc.), and you can add $8000 to the sales price of the house. Look for changes which are most universally valued (don't paint the kitchen pink because YOU like that color), and be sure you get a decent return on investment.

Depending on the fixer-upper, there are many potential improvements that can be worth doing. These include adding a carport, new doors, fences, gazebos, sheds, painting, carpet, benches, a new closet, a new toilet, a new stove, a shower/tub surround, and trees or bushes. The bottom line is the bottom line: be sure anything you do returns more than you spend, preferably three times as much.

How you see the problem is the problem

No real estate investor ever gets beyond the reach of problems. Every investor faces personal and professional problems. The problems come in all shapes and sizes. They can be business-related, financial, physical, or emotional. Although no one escapes problems, your perception of the problem will determine your response to the problem.

Unfortunately, no one has a magical formula to deal with them. You can, however, implement certain principles to help you succeed. At first blush, these principles may seem over simplified, but don’t underestimate their power. If you choose to use them, you’ll reap a harvest of achievement that will far surpass your efforts. Here’s five ways to solve your problems.

1. Be Responsible. When something goes wrong, when you have a problem, it is only natural to think immediately of who made it go wrong, who is to blame for the problem. Most often this makes the problem worse. The person blamed, in order to exonerate himself or herself, promptly finds someone else to lay the blame on or with whom to share the responsibility for failure. It frequently turns into a shouting match of exchanged accusations. "It's all your fault.... "You did....." "Yes, but you said....." All too familiar dialogue, isn’t it?

Don’t blame your problem on others. Accept responsibility for your actions. It’s not what happens to you that matters. It’s your response to what happens to you that matters. The consequences of your actions and choices are yours. Choose wisely.

2. Be Proactive. The worst thing you can do when dealing with a problem is nothing! The world is full of people with great intentions. Take action. Successful investors are not necessarily those who make the right decisions all the time when trying to solve a problem. No one can do that. But once you have made a decision to do something, you will begin to attract the people and things you need to conquer your problem.

Your ability to attract the people and things with the right solution may not make sense to some of you. Honestly, I don’t fully understand it myself, but it works for me and it will work for you. I really don’t understand how a black cow can eat green grass, and produce white milk and yellow butter, but it happens. I don’t understand how it happens, but that doesn’t keep me from having butter - and I have the waistline to prove it. So don’t let your lack of understanding sabotage your willingness to solve the problem. Take action.

3. Re-Act. Take charge over your inner-voice. Something in all of us wants to do what's convenient rather than what's necessary. It’s easier and so natural to be negative rather than positive. The voice inside you will tell you why you can't solve your problem and why you don't deserve to solve it. You cannot solve your problem without some change in your perception of the problem.

So how do you change your perception?

Change your thinking and change how you act. As simple as it sounds, changing your attitude toward the problem will change your perception of the problem. A change in your perception will trigger a change in how you act. So you will solve your problem by re-acting. That is, acting differently. In a positive way, of course.

4. Believe in yourself. Sometimes you are your own biggest problem, when you allow your fears and self-doubt to stand in the way of your success. A critical step to conquering a problem is to realize that the answer lies within you. Maturity and experience will give you the confidence that you can overcome any impediment.

Problems are an asset Problems are character builders. Improvements I’ve made in my life and in my business were the result of problems.

5. Wear Your Knees Out. If there were one sustainable remedy I could offer you when the going gets tough, it would be prayer. Many people, depending on their faith, might call it meditation. It doesn’t matter to me what you call it, as long as you have a place to run to. Mahatma Gandhi said, “Religions are crossroads converging upon the point.” Well, I don’t often discuss religion, and I don’t know what works for you; but Christianity is the way I know. However, I am sensitive enough to respect your faith. My whole point is that when everything else fails, prayer works!

A problem can become your breaking point if you let it become the one thing that defeats you. Alternatively, a problem can become your turning point if you choose to take action to defeat the problem. You will never realize what heights you can reach in real estate investing or in your life until you stop blaming reality for what happens to you as you go through it.

Thomas Paine said, “The harder the conflict, the more glorious the triumph. What we obtain too cheaply, we esteem too lightly; 'Tis dearness only that gives everything its value.” In the thick of the fight to overcome a problem, you may not believe it, but the more problems you conquer, the easier the process becomes. Your confidence will be self-perpetuating, and you may come to believe you can conquer a whole range of “mountains.”

Buying older property in bulgaria - an insiders guide

Bulgaria is a big country, despite what some sellers will say there are actually still plenty of properties around to buy at really good prices. Places still cheap include Razgrad and Dobrich which I happen to think are only long term investments, I think they are very poor areas often with not much going for them, not the sort of place where you want to leave an empty house, even empty I have had windows stolen, doors etc even from an empty house.

Although on Ebay some sellers say "Near the sea" you wouldn’t exactly call 34 Miles from Brighton near the sea, besides the sea isn’t everything and in Bulgaria winters don’t help the coastal areas considering that temperatures in winter is similar to London in winter. On the note of the sea, note that there has been a barrage of oversubscriptions to new apartments and houses by the sea, so rentals may be hard because there is simply too many properties by the sea for rent - Some developers are offering guaranteed rental, but these promises are rarely stood by. Buying plots by the sea is equally risky, with Natura 2000 allowing only certain parts to be built on; many speculators who bought land a while back are seething because what was once a development opportunity has now become pretty much a nature reserve. Prices are way huge beside the sea anyway, compared to the market price increases of inland property. Remember, Bulgaria is not Spain; Bulgaria is Bulgaria with its seasons, hot and cold. Nessebar is an exception to my rule, totally stunning, if you can buy there, buy.

In my view, Ski properties are good, but watch out because there have been some flouting of planning laws to get rich quick, so if you don’t do your homework you may just see your dream holiday home getting pulled down before you can say resell. Buying near or in the "established" (I’m saying established because these places haven’t got started yet, I recommend doing some homework and buying in or near these areas).

Although a big sprawl with little thought to planning and streetscape, I think central Sofia is a good investment right now. Given that it is the capital city of Bulgaria, its expanding airport and wealth concentration, I think it’s a safe bet, but be careful because prices are hiking quickly. There is some great architecture in Sofia, so if you can dodge the raging traffic, don’t forget to go have a look. Buying in towns and villages around Sofia, especially to the West, may be a good idea, think Surrey to London.

Around cities like Veliko Tarnovo, Rousse and Vratza are a good buy. Make sure things are happening in the villages (New houses, renovations, flash cars etc) before buying there, otherwise take a long term view as your property value flourishes slowly.

Picturesque Vratza (Just over 70 Miles to the North East of Sofia) has the backdrop of the Vratza Balkan (Huge mountain range) and Leva River running to the front of the city.

Veliko Tarnovo with its amazing Tzarevetz Castle (Watch the famous light show) and Great River Yantra running through the city is a great city with a huge amount of things to do for everyone.

Rousse is the gateway between Romania and Bulgaria. In my opinion, Rousse is a hotcake of the future, along with Veliko Tarnovo (Which in my opinion is a better place to invest in)

Don’t let the prices you see guide you to what the prices are and will be when you get to Bulgaria. Prices on EBay, on catalogues and anywhere else vary wildly, so there is no guide price etc for property in Bulgaria.

Quick tips:

Local prices are often different from so called tourist prices - Don’t look like a tourist and you minimise on paying like a tourist.

Don’t make decisions on the spot, take your time. Buy what you like, in an area you like with the money you would like to spend - Not the max you can

Remember - Bulgaria is not cheap, it’s only cheap to us, so don’t go saying "Ј5000, that’s cheap" because the estate agent may just think you have loads more to spend and price the houses as he wishes.

When buying, see if there is a regional airport, while it may not be operational now or small, it may expand in the future; think Luton, Inverness and Stansted before they became international airports.

Make sure there are "things" around your village or town to make it an interesting place for renting or prospective future buyers, is there a mountain nearby, a ski range (Or future ski range)

When you are looking for a Bulgarian property, especially since distance buying at auction, you need to look closely at the photos to see if the house you are looking at is the one you really want.

Bulgarian properties were built without much planning in the past, generally they have been built by local (Often unskilled) tradesmen using traditional teqniques that are sometimes forbidden in todays cautious building world.

When looking at photos of houses at auction, check:

-The corners, the bottom of the walls, the top of the walls. Is there dark spots (Could indicate dampness), is there painted spots (Could indicate an attempt to "paint over" the dampness). Obviously there is dampness somewhere or another with older Bulgarian properties, but not in every room, you may as well live in a dirty sauna! If a whole houses has been painted, look carefully at what has been covered up, it could be large areas of dampness or cracks, at least if there are cracks you should see then to work out if they need sealed or pinned.

-The roof. Is it slanted, is it not straight or bowed at some point? If a roof is not straight it may mean just bad design (Remember these houses were generally built with little or no actual physical plans) or it may mean that it could collapse because it is weak (Could be woodworm, weak joist etc) so this may cause issues in the future. As a general rule of thumb, we check the roofs are straight and even before selling to others, sometimes the roof is solid though and able to withstand some more years or rain, heat and cold.

-Check the village in the background. Is there people, is there modern cars, do the houses around the house you are looking at look like they are well looked after? It depends what you are looking for, but you generally want a village which is vibrant (Or is aspiring to be vibrant) and that money (Or skills, or love...) are coming into the village.

The walls. Is there large cracks on the houses, if they have been painted you may not see them.

-The floors. Many Bulgarian properties (Including many we sell) have compressed mud floors rather than plain old concrete or wood. Although traditional Bulgarians have been happy with these for years, you dont really want to put a new wall to wall carpet down on these. If a floor has mud on it instead of wood or concrete, then it may be necessary to dig out the mud and re-lay the flooring, which actually isnt so expensive.

Selling your own home pet issues

If you are selling you own home, you need to consider the effect of pets. People who are working with a real estate broker are sure to get coached about the potential negative effect of pets. If you aren’t working with a broker, this article discusses the pet issue.

When You Show Your Home

If you are selling you own home, you must realize a lovable pet might cause the following problems:

1. The potential buyer may be so nervous about dogs that she doesn’t picture herself living in the home,

2. The potential buyer doesn’t like pets and thus doesn’t see her furniture in the home in her mind’s eye,

3. She doesn’t picture the route she’d drive to and from work, and doesn’t imagine where she’d stop for errands or fun along the way home.

In short, the presence of pets makes it difficult for the potential buyer to see the house as their own. Is a potential buyer in that frame of mind likely to buy that home? No.

Defense Against Pet Damage

If you have pets and you’re selling your home as a FSBO, take heed. Board your pet or pets while your property is on the market. You can visit it, and take it for walks and to the park, but don’t take it home. Have carpets shampooed. If they’re really holding odors, you might even replace all or some of the carpet. Get any damage the pet has done repaired. Store or get rid of furniture you do not want to repair. Reseed the lawn and repair any damage to plantings. You’ll find this is money and labor well spent.

Pets are an integral part of many people’s lives and rightly so. While you may love your pet, keep in mind potential buyers may not.

1031 exchange companies

The easiest method to begin a 1031 Exchange transaction is to contact a good Exchange Company. The information concerning the exchanger, time and place of the closings, and a copy of the contract to sell the relinquished property are the preliminary papers to start the process.

From this information, the company makes exchange documents and forwards them to the attorney or customer. The lowest fee charged on a standard deferred exchange is $600.

A 1031 Exchange, like any real estate transaction, involves balancing competing pressures in speed and quality. Therefore, companies in this line recognize pressures and design their service to satisfy both.

Good companies manage all aspects of the exchange. They provide service that is quick, easy to use and backed by experience. In good companies, experienced attorneys are the managers. The senior staff will be rich in experience with regard to investment property transactions. The specialized team of attorneys mainly deals with more complex reverse and build-to-suit exchanges.

The main parameters that distinguish a good and bad exchange company are speed, service and the security they offer the client. Speed lies in the pace at which the company prepares the document. The documents are then sent to the closing table, allowing the seller to close and proceed with the exchange. Service is the dexterity in preparing all documents required for the exchange, including reminders of 45 and 180-day time limits and extensive complimentary consultations.

Security comes in the form of an unconditional guarantee on exchange funds from Insurance Companies: high value fidelity bond coverage and Professional Liability insurance cover.

These days, banks are working with Exchange Service providers. The Cole Taylor Bank of Chicago is one of the largest independent banks in Chicago, and joined hands with Nationwide Exchange Services (NES) of Cupertino in California in a strategic alliance for handling Cole Taylor's tax-deferred 1031 Exchange business. This Chicago bank specializes in serving the business banking, real estate lending and wealth management of closely-held and family owned small and mid-sized businesses. Cole Taylor Bank is an Equal Housing Lender.

Nationwide Exchange Services is a leading Qualified Intermediary for Tax-Deferred 1031 Exchanges and has conducted thousands of successful 1031 Exchange transactions. It is applying advanced technologies and secure business processes to enhance standards of financial security, visibility and customer service to establish new standards for products and services in 1031 tax-deferred Exchanges.

The alliance enabled the Bank to become part of the NES team and benefited in becoming the primary financial custodian for NES in the Midwest Region. The alliance also helped the bank to offer their customers an expanded set of tax-deferred 1031 Exchange products, such as reverse and build-to-suit exchanges, at the most competitive cost structure.

The systems from NES combined with the bank Cole Taylor's financial security and brand recognition has spurred confidence in the customers. Collaboratively, they bring distinct advantages to all 1031 customer sets, right commercial developers and corporate entities to individual investors.

Real estate appraisal - do it yourself

For single family homes, there are two basic methods used in real estate appraisal. They are replacement cost analysis, and using comparable sales. A third appraisal method, based on capitalization, is used for income properties, and is covered in another article.

In figuring replacement cost the question is: What would it cost to buy this land and put this house on it? If the land (improved) would cost $40,000, and the house could be built for $150,000, the value indicated would be around $190,000 - if the house is fairly new. If it has used up 10% of its useful life, you can deduct $15,000 for depreciation.

Replacement cost is not really a very useful measurement. It is difficult to say what the land is worth in a city center where none is left for sale, for example, and tough to gauge depreciation. It is used as a secondary method, and for unique homes that can't be compared easily with others. The primary method of real estate appraisal used for homes is a market analysis using comparable sales.

Real Estate Appraisal 101

To get a good idea of what a home should sell for, you need to compare it to homes that have sold. Find at least three similar homes in the same area that have sold within the last year, preferably within the last six months. This information is available in the county records, or from a real estate agent with access to the MLS (multiple listing service).

Now the confusing part. You start with the selling price of each of your comparables. If your subject home has a second bathroom, and the a comparable doesn't, you add the value of the bathroom to the sales price of the comparable. If a comparable home has a blacktop driveway, and the subject home doesn't, you take the value away.

You are rectifying differences, to see what comparable homes would have sold for if they were like yours. So if a comparable sold for $140,000, and a bathroom is worth $15,000 in your area (ask a real estate agent for help with these figures), you ADD $15,000 for the bathroom it doesn't have. Then you subtract, say $4,000, for the paved driveway it does have. This gives you a comparable sales price of $151,000.

You do this with all differences between the subject home and each comparable. When done, you average the three comparable prices. So if the three comparables have adjusted sales prices of $151,000, 162,000, and 149,000, you add the three figures and divide by three. The indicated value of the home is $154,000.

Of course all appraisal is an inexact science. If you can only find comparables sold over a year ago, you have to estimate appreciation in the area. If one sold with seller financing, you have to decide how this affected the price. For all of it's flaws, however, for single family homes, this is the most accurate method of real estate appraisal.

Private sale fsbo property pricing

The property price dilemma

As a homeowner selling your home you are faced with a dilemma when setting the asking price for your property. Ask too much and you risk your property sitting on the market for months without attracting any offers. Ask too little and you lose out financially. Faced with this choice many homeowners set their asking price too high believing that they can always lower the price if the property doesn’t sell. However this can have disastrous consequences for the value of your home.

Setting the correct price is the most important part of selling your home. Whether selling your home FSBO or through a real estate agent it is vital to get the asking price right first time. Your aim is to sell your property in a reasonable amount of time and to get on with living your life, in order to do this you must set a realistic price.

Buyers know the real estate market

Buyers are often well researched when it comes to the current real estate market. Therefore if a property is overpriced, it simply won’t sell. As a homeowner you may well feel that a prospective buyer can always make you an offer but in many cases buyers will simply walk away. It is said that a reasonably priced property will attract reasonable offers but an excessively over priced property will attract no offers.

If a property is over priced and doesn’t sell it will sit on the market and will quickly become stale. Buyers will recognize the property as having been on the market for some time and assume that there must be something wrong with it; the property will have gained the reputation of being a lemon. If you overprice the house to test the market and then reduce the price later, it signals to buyers that the property was and may still be overpriced. Homes that are listed through real estate agents are particularly vulnerable as many agents give homeowners inflated valuations on their property to try and secure the listing. The owner is later conditioned by the agent to accept a lower offer that is often less than the true value of the property.

Factors affecting the price of your property

The amount of time that you have to sell your home will affect its sale price. Any property will sell if the price is low enough. If the real estate market is slow and you need to sell quickly you may have to accept a lower price to sell you property. By offering a property for sale at a lower price the pool of potential buyers is expanded as the property becomes attractive to real estate investors who either want to rent the property to tenants or renovate and sell at a profit. If you are not in a hurry to sell your property you can concentrate on appealing to homeowners rather than investors. Homeowners are less likely to be concerned about rental yield and profit margins and will pay more for a home that they fall in love with.

Some factors other than time that affect the price of a property are:

Location: You can’t get away from this one; the clichй location, location, location is well known because it is true. If your property is located in a desirable area that is in demand, you will be able to get a higher price than you can for the same house in a less desirable area.

Condition: A house that has been well maintained and can be moved into without the new owners having to undertake any major renovations will always sell for more than one that has been neglected and needs work.

Desirable amenities: If your house has popular amenities such as parks, schools and shops close by, it will sell for a higher price.

FSBO and property prices

As a FSBO homeowner you are in a fantastic position in that you can under cut your competition (properties listed with real estate agents) and still keep more of the equity in your pocket as you have no real estate agent’s fees to pay. However a significant number of FSBO owners erode their competitive advantage by asking the same or more than properties listed through an agent.

Opinion is divided as to whether buyers would rather buy direct from the owner or through an agent. Some people feel that buyers prefer to negotiate through an agent, as they can be more honest in their feedback, therefore if these buyers are to be enticed to consider FSBO properties they need a reduced price to attract them. Others feel that buyers would rather deal direct with owner rather than have to put up with the deceit and games played by some agents. Having dealt with many agents and FSBO owners I would rather deal direct any day.

Whether the prospective buyer prefers to deal direct or would rather be negotiating through an agent one thing is for certain. The buyer knows that the homeowner is saving a considerable amount through not having to pay commission and will expect the homeowner to share some of this saving with them.

Any sensible FSBO vendor will share the saved commission with the buyer by accepting a slightly lower price. The homeowner is still ahead in terms of the equity they have in their pocket and can move on and get on with their life in their new home. It is important to focus on selling your home not how much you can save.

How to determine the price of your property

In order to determine the price of your property it is necessary to compare your property to other homes that have sold in your neighbourhood. There are three ways that this can be done:

1. Online valuation service

These services compile reports based on historic sales data for a particular suburb or street. They are a useful overview and provide information quickly and easily but provide fairly high level information e. g. you may be able to find out the average house price in a street but may not know how many bedrooms the average house has.

2. A professional valuer

A professional valuation is the most accurate way to find out how much your property is worth. A valuation from a professional valuer is not the same as a valuation that you might get from a real estate agent. A professional valuer has no financial interest in your property and is legally responsible for their valuation. Banks will require a valuation from a professional valuer in order to issue a mortgage. Banks will not accept a valuation from a real estate agent, as they know that these are not reliable.

In order to value your home the valuer will visit the property to make measurements and assess the condition. They will then consider how your property compares to other properties that have sold in the local area.

3. Comparative market analysis

It is possible to conduct your own market analysis by comparing your home to others that have sold in the area. The key here is to compare to the selling price of other properties and not the asking price.

Find 4-5 houses similar to yours that sold in your area over the last 6 months. Ask agents or owners or use property records to find out what the properties listed and sold for. Keep an eye on newspaper property pages for examples of recent sales.

As no two homes are exactly the same it will be necessary to make adjustments for differences between your home and those in the comparison e. g. if the home in the comparison has a renovated bathroom and your property does not you will need to reduce the comparison price.

Setting the asking price for your property

It is difficult trying to subjectively value your home because of the emotional attachment that you have. This can lead you to over emphasise the property’s good points and to overlook any shortcomings. In order to get the most accurate valuation we would recommend investing in a professional valuation.

When setting the asking price it is important to remember that the only thing that is relevant is how much a buyer is prepared to pay for your home today. It does not matter how much you paid for your home five years ago, nor does it matter how much your new home is costing or how much you still owe on your mortgage. It is only your property’s value as determined by the current real estate market that is relevant.

You may however wish to include a small buffer to allow for some negotiating room. 5% more on the asking price will give enough room to negotiate but will not overprice the property so much that buyers are scared away.

How to maximise your equity

In order to maximise the amount of money that you end up with in your pocket we recommend using a professional valuer to determine the property value.

Once you have decided how much to sell your property for listing with a good FSBO website (also known as private sale) means you avoid paying commission to a real estate agent and can maximise the amount of equity you are left with.

Putting your estate in order

Estate planning for business owners.

For business owners, an effective estate plan addresses a number of concerns over and above the desire to care for surviving family members. Control over who will run the business, conservation of the owner's assets in the face of legal expenses and taxes, and the liquidity to pay estate taxes due shortly after death are just some of the most pressing issues.

For the sake of their heirs, business owners should plan for the orderly transfer of their wealth — including their business interests — well in advance.

Prepare for Estate Taxes:

Depending on the value of business and personal assets at the time of death, the law may require that estate taxes be paid on the value of the business. If there is not enough cash on hand, heirs may have no choice but to sell the business prematurely or for less than the real value.

Some business owners use an irrevocable life insurance trust to purchase policies on their life, collect any death benefits, and distribute the money according to prearranged terms. The proceeds can be used to pay any estate taxes due, so heirs are not forced to sell a business, property, or other assets they would prefer to keep in the family. The use of these approaches can involve a complex web of tax rules and regulations. You should consider the counsel of an experienced estate planning professional before implementing such strategies.

Plan for Successful Succession:

A buy-sell agreement may be forged between the owners or shareholders of a business, outlining the terms for a buyout in the event of death or disability. It usually includes a pre-negotiated sale price, but can also explicitly request individuals to sell their interests to others or indicate who should manage the business operations.

Payments from a life insurance trust may also be used to buy assets from an estate, such as transferring ownership of a family business according to a pre-existing buy-sell agreement.

Your business is not just your livelihood. It's likely to be the largest portion of your estate and thus the core of the legacy and security you intend to leave behind for your family. A solid estate plan can help keep your business intact through the most difficult transition of all.

Richard R L Evans

Making the most of the outdoors decks

With spring approaching, many of us are dying to get outdoors, some of us are itching to refinish our wooden decks and others of us are resisting the urge to rush out and plant our seeds too early!

Decks usually need re-finishing every three years or so, and it will soon be dry enough to make a start. Preparation of decking (or any exterior wood) is very important. Wood is more prone to difficulties than other materials are and it must be well protected from the elements, particularly direct sunlight and heavy rain.

Decks cannot be finished until the weather is quite dry; this is because the deck wood needs to be completely dried out before applying sealers etc.

If you decide to re finish your deck, you will need to do it in two stages; first there is the stripping and cleaning and then there is the finish - either paint or stain. All decks need to have water repellant and preservative applied to them, preferably not by spray but by hand painting. Even redwood and cedar need a water repellant.

Common problems include flaking paint, mold and discoloration, usually from exposure to the elements. If you find isolated patches of flaking paint you can scrape and sand it off and simply re-prime it then paint it over.

Mold will usually indicate moisture from somewhere, so check your down pipes or see if your gutters are full of leaves. This can be remedied by washing the wood with a fungicide and then once you are sure it has been rinsed off and dried properly, apply primer and paint.

In some cases there may be mold or rotting wood from termites, in which case cut the wood, burn it and replace. Keeping the paint jobs up to date is often a deterrent for termites. Bare wood soon turns gray but the color may be able to be brought back with wood cleaner and then you can apply a natural finish.

Bad cracks need to be filled with filler that has some flexibility before priming the area and repainting. When you apply stripper, roll the stripper onto the deck (water based stripper will not harm plants) and force yourself to wait 20 minutes.

Use a garden hose to wash off or a power washer. (Note: if you use a power washer you may have to sand the wood afterwards to get rid of the fuzzy effect from the friction of the washer.) After two or three days to let it dry you can finish off the prep.

If you are using paint, the higher the price - the better the quality, the words premium or quality may be an indicator. Of course, you will pay more, but how long does it take you to paint a deck? Maybe you will save yourself extra labor time if you do not have to repaint it for five years instead of three. Look for water repellant qualities and UV blockers.

Some painters recommend two coats of primer sealer and one of top coat and some recommend two coats of top coat and one of primer! It would seem that one or the other of the paints better have two coats! Using a quick drying self priming alkyd paint is ideal.

If you want to go with staining, a stain that is heavy bodied will show up the grain but not the texture, whereas lighter bodied will still show the texture. Coat the stain with a sealer once it is dry, one that says it is 'non chalking' to avoid your finish being rubbed off with wear.

A protective finish will make your work last longer no matter which effect you are going for. If the deck is new remember to let it weather for a month or two so that it will better absorb the stain; also seal any knots in the wood before you primer.

If your deck is new redwood or cedar and you want it to have that bleached and weathered look, you can now buy decking bleach to get this 'aged' look almost instantly (well overnight!). Well, now you know how to make an old deck look brand new and how to make a brand new deck look old. Yes, life is strange at times ....

Indiana real estate racing amateur sports and college football

Indiana is the home to a proud tradition of racing with the Indianapolis Motor Speedway. Indiana real estate prices are very reasonable, particularly for first time homebuyers.

Indiana

Considered a crossroads state, Indiana is hub of activity for the upper Midwest United States. Good coming from the Great Lakes intersect with agricultural products heading from the heart of the country. Basketball permeates the state at all levels with movies such as “Hoosiers” being based on true stories in the state.

A state of rolling hills, Indiana is undeniable an auto racing state. The Indianapolis 500 is a traditional memorial day event followed around the country on television and drawing a small city worth of people to the track. You’ll also find tracks throughout the state catering to less glamour events on weekends, but ones that are just as fun.

Indianapolis

The dominant city in the state, Indianapolis suffered for years from a reputation as boring place. While potentially true in the past, the city has moved forward with new developments in sports and culture that have made the city anything but boring. Museums litter the city, giving art lovers much to explore and do.

When it comes to sports, Indianapolis has developed a strong presence with two professional teams, and the development of major amateur sports complexes. The United States Olympic Trials are held in the city and residents can be found playing practically every type of sport throughout the year, even during winter. The White River State Park is a great place to walk, jog and generally get off you couch.

South Bend

Home to the University of Notre Dame, South Bend is a college town with a historic feel. College football rules the day with the Fighting Irish, the College Football Hall of Fame and a classic midwestern atmosphere. A strong Catholic influence is present in this beautiful little city sitting on the shores of the St. Joseph River.

Indiana Real Estate

Indiana real estate is very reasonable and a good place to raise a family with traditional values. A single-family home in either Indianapolis or South Bend will set you back roughly $175,000, a typical figure in the state.

With such low prices, one can’t expect Indiana real estate to appreciate much. In 2005, the appreciation rate was a miserly 4.7 percent, beating only Texas for the lowest rate in the nation.