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Short sales aren’t for everyone, but there’s often a significant amount of money to be made when buying a property from a lender before a home has been foreclosed. So even though they can be frustrating experiences, short sales may be worth checking into as one of your real estate investment avenues. Here are a few suggestions for successfully negotiating short sales owners and lenders.

First, if you approach the home owners sympathetically, you’ll have a much higher percentage of success. Remember, they’re in a financial bind, otherwise they wouldn’t be facing foreclosure and the potential destruction of their credit rating, so when you talk with them about putting together a short sale, bear that in mind. You’re going to need their help throughout the process, so be as gentle and understanding as possible. After all, once the short sale is completed, their loan will show on their credit report as “paid,” rather than being a huge negative mark against their credit score. There will be a notation on their report that indicates the home was sold for less than the original loan amount, but it’s better than foreclosure.

Also, remember that a short sale is being negotiated while the foreclosure clock is ticking. You have to move relatively quickly if you want the sale to be complete before a sheriff sale or public auction is held. (There are some lenders that will halt the foreclosure process until a short sale has been completed or rejected, but that’s not always true, so don’t assume the clock will stop ticking just because you’re involved in a short sale negotiation.)

You’ll generally have to work fairly closely with the home owners to construct a strong hardship letter and to compile all the various things a lender will ask for, such as pay stubs, bank statements, and personal finance information. Lender requirements will vary, but all of them will require a sales contract between you and the homeowners. They’ll also want to see a broker’s price opinion (BPO) before they decide whether or not to accept your short sale offer.

The earlier you can step into the foreclosure process, the better, because you want to be able to help the home owners to jump through all the various hoops in time to close the short sale before the foreclosure date. Generally, 90 days will be enough time, but there are always variables, and the things lenders can ask for can often be frustrating and time-consuming.

Your goal should be to seek out properties in which the owners have little or no equity. Your chances of completing a short sale will increase if there’s not much profit to be made if the lender should decide to go through with the foreclosure process. If there’s a wide spread, the lender might do better to foreclose and sell the property as a repossessed home at a price closer to its market value.

Again, they’re not for everyone, but short sales can often make a significant profit if you’re willing to work closely with stressed homeowners and the sometimes arbitrary demands of lenders.

Each year, Money magazine rates hundreds of American cities in order to help folks who may be yearning to move be able to find the best new place to settle. The magazine compiles statistics on various factors, such as housing affordability, job growth, commute time, schools, weather, access to health care, leisure pursuit possibilities, crime rate, and quality of life, and then publishes its findings once a year.

For the year 2006, the overall winner was Fort Collins, Colorado, followed by Naperville, Illinois, and Sugar Land, Texas. Money magazine was especially impressed by the many parks in Fort Collins, including some sixty miles of biking and hiking trails in a town of 128,000 people located some 5,000 feet up in the Rocky Mountains. There are plenty of jobs in Fort Collins, too, with giant companies like HP, Eastman Kodak, and Agilent Technologies maintaining a large presence in town. Fort Collins is also the home of Colorado St. University and Poudre Valley Hospital, which provide 10,000 more jobs between them.

Rounding out the rest of the top ten most livable American towns were: Columbia/Ellicott City, Maryland; Cary, North Carolina; Overland Park, Kansas; Scottsdale, Arizona; Boise, Idaho; Fairfield, Connecticut; and Eden Prairie, Minnesota.

Money magazine also rates the country’s largest cities annually, as well, and publishes a separate list of America’s top ten most livable big cities. This year’s winner was Colorado Springs, Colorado, making it a clean sweep for the Centennial State, although Colorado Springs was the second smallest city on the list in population, at 369,800. Coming in second was Austin, Texas (690,300), followed by Mesa, Arizona (442,800).

The top ten list of big cities was rounded out by Raleigh, North Carolina (341,500); San Diego, California (1,255,500); Virginia Beach, Virginia (438,400); Omaha, Nebraska (414,500); Wichita, Kansas (354,900); and New York, New York (8,143,200).

Since many people are concerned about crime, Money ranked cities according to crime rates, and the safest city in America turned out to be Wayne, New Jersey, followed by a pair of Connecticut towns, Fairfield and Greenwich. Two Nevada towns, Paradise and Sunrise Manor, were next, and the rest of the top ten was comprised of another Connecticut town (Manchester, 7th); and four more New Jersey cities (East Brunswick, 6th; Cherry Hill, 8th, Edison, 9th, and Hamilton, 10th).

If you’re single and yearn to live in a city with lots of other single people, Money magazine’s data suggests moving to Bloomington, Indiana, where 58.2% of the population is unattached. There were nine other American towns in which more than half the residents were single, including New Brunswick, New Jersey (54.6%); College Station, Texas (54.3%); Ames (52.5%) and Iowa City (52%), Iowa; Cambridge (52%), Somerville (51.3%), and Boston (50.4%), Massachusetts; Berkeley, California (50.3%); and Champaign, Illinois (50.2%).

If you’re thinking about relocating, there are many factors to consider. Explore your options and make your own list of priorities.

If you’ve been dreaming about buying your first home, you’ve undoubtedly experienced more than a little discouragement, especially when it comes to saving enough money for a down payment. If that describes you, I have some good news: you may be able to get into that home quicker than you realize. Because of all the many loan programs available, you might not need a large down payment. You can buy a home with nothing down if you have a decent income and credit.

A little money in the bank makes your home financing more attainable. You will get better interest rates and lower mortgage costs, plus you will qualify easier. Here are a few suggestions on how to save for your first house.

First, set a realistic savings goal. It’s important to set a figure that’s attainable if you want to have success, but that will generally mean that your first home will be smaller than your ultimate dream home. But there’s nothing unusual about that. It’s entirely possible that you won’t get your dream home on your first try.

If you’ve been living in your parents’ home, you may be surprised to learn that they probably traded up at least once, and probably more than once, before they were able to move into the home you now know. They worked hard to get where they are, and you’re going to have to work just as hard, so don’t expect to start at the top. After all, you couldn’t afford a $600,000 property with a $30,000 income, anyway, no matter how hard you budgeted, even if you managed to save enough to get into it in the first place.

The next step is to create a plan of attack. Find your affordable target area and then get to know the market in that area. You want to know what’s available and how much homes are selling for. In essence, you’re becoming a shrewd shopper. You’ll know approximately what homes are worth as you drive around the area, because you’ve done your homework and you’ve become an expert in that area.

Part of your plan is to set up a budget that includes an honest appraisal of your income and expenses. If they’re about even, you’ll have to begin economizing somewhere to create a positive cash flow that can be channeled toward your down payment. You’ll probably need to pay close attention to your finances for several months to find places where you can trim expenses, but you can do it! Pay down all your credit cards, because they might cost you the chance to qualify for your new home, even after you’ve accumulated the down payment.

As you’re saving, seek out professional help from a knowledgeable real estate agent and a helpful lender. They’ll both prove invaluable. There are a number of programs available for first-time homebuyers, and when you finally find the home you want, you’ll need as much information as possible about what the seller needs and about your financing options. That way, you can structure an offer that will satisfy the seller’s needs while keeping your payments at a manageable level.

Buying your first home can be a frightening and daunting experience, but it doesn’t have to be. In fact, it can actually be enjoyable, if you take the necessary steps to make sure you’re ready to go through with the transaction. Here are some ideas on how to make your first home buying experience more enjoyable and less traumatic.

First, it’s important to know just how much home you can afford. That will help you avoid the heartache of finding a home you love, only to discover that it’s beyond your means. Find out what price range you need to be shopping in BEFORE you start looking!

One of the best ways to do that is to call or visit your local lenders and find out what types of loans are available and how much you can qualify for. There are many different types of loans available, and if this will be your first home, you’ll have even more choices, because there are a number of programs specially designed to help people make their first home purchase. Talking with loan officers will also give you a chance to find out what other fees are involved in getting a loan. That way, you won’t receive any unpleasant surprises when it comes to finalizing your mortgage transaction.

Find a real estate agent you’re comfortable with, but also make sure they’re knowledgeable about financing, real estate prices, and sales procedures in your area. They should also be able to demonstrate some success in negotiating sales. That’s not to say there aren’t good people in the field who are also brand new, but you’ll want someone who can hold your hand throughout the process.

Don’t sign an agreement to work with just one agent. If you agree to pay a commission to an agent, it obligates you to do that, even if you find a house yourself that’s being sold by an owner. Keep your options open!

Create a checklist of the things you want most in your new home. It will help you stay focused on the things that are important to you and will serve as a reminder to look for those things in every home you visit. That way, you won’t get overwhelmed by seeing many homes or get swept away by a home that’s dramatic but doesn’t contain the elements you’re looking for.

Once you’ve found a home you like well enough to make an offer on, have a home inspection done by a reliable person. Especially if you’re looking at a For Sale by Owner (FSBO) home, you may not want to agree to use the home inspector they suggest. Ask around and find one of your own.

Finally, don’t let anyone pressure you into signing either the purchase papers or the loan documents without examining them closely. You have the right to read and to understand what you’re signing, so take all the time you need. If you feel as if you need legal advice, ask to be able to show the papers to your attorney.

Buying a home doesn’t have to be an exercise in frustration and terror. If you pay attention to details, gather the necessary information, and stay focused, it can be one of the most exciting things you’ll ever do.

Buying a home is one of the greatest investments you will ever make. The best — and least stressful — way to purchase a home is to be well educated throughout the process.

Before you even start looking for a house to buy, you need to review your financial situation. This will let you know how much of a down payment you can afford and how large a monthly mortgage payment you can handle. Lenders will look at the ration of how much you make to how much you owe. Most will require that your monthly housing costs remain under 28% of your total monthly income and that your total debt is less than 36% of your monthly income.

But you should look at what fits into your budget, not what the lender says you can afford. If you are currently making a rent payment of $1200 a month and barely getting by, how could you expect a mortgage of that size with the added insurance and maintenance costs of owning a home? You have to go with what works for your budget and finances. Remember, you can always work your way up to a larger home over time.

Once you have determined how much home you can afford, you need to check on your credit report and score. Lenders will rely heavily on your credit score when deciding whether or not to lend to you. It will also help decide how much interest you will pay. Your credit score is determined by the information in your credit file. If something is incorrect, your score will be affected.

Your score is made up of your payment history, your outstanding debts and how often you apply for credit. Most lenders will use your FICO score. If you have a score of over 700, you should have no problem finding financing.

The best way to improve your credit score is to pay your bills on time. You can also pay off your credit card debt and hold off from applying for new credit to raise your score.

It is best to review your report to make sure it is accurate well in advance. It may take time to clear up any errors before you apply for a mortgage.

In today’s real estate market, sellers like to work with buyers who are pre-approved for a mortgage. Pre-approval means that you have submitted a complete loan application and that the lender has verified your information, checked your credit and determined how much mortgage you can borrow. When you are preapproved, the lender is saying that you can borrow a certain dollar amount.

With pre-approval, the seller knows you have financial backing and you know exactly how much you can spend. This keeps you from a lot of stress of worrying if you will be approved for a mortgage for your dream home. You already know what you can afford.

Take the time to prepare to buy a home before you even start looking, it will save you a lot of stress and make the process much easier.

Builders aren’t the only ones seeing stock prices slump from the weakening real estate market, mortgage lenders are seeing shares begin to sink as well.

Countrywide Finanical has seen stock prices fall 20.9% since May 2006. Accredited Home Lenders, a subprime lender, stock has fallen by half. Thornburg Mortgage, an adjustable rate specialist, has seen stock fall by almost 20%.

Lenders are starting to see a gloomy outlook as the real estate market continues to weaken. Borrowers are seeing higher prices to both purchase and build combined with higher borrowing costs. Sales of both new and existing homes were down 4% in July, according to the National Association of Realtors, while the inventory of unsold homes is hitting high levels.

With fewer people taking out mortgages, overall applications are down 25% for the year.

“The volume of loans is declining,” said Bose George, an analysist for Keefe Bruyette & Woods. “The market expects declines for the next few years. And that is obviously a drag on revenue and earnings, because lenders will have to compete more aggressively.”

The market is also beginning to see fallout from the high usage of exotic mortgages over the past few years. An increasing number of borrowers have chosen adjustable-rate mortgages over the past few years. With these products beginning to reset to higher interest rates, delinquency rates are beginning to see slight increases. Delinquencies for the first quarter of 2006 were up 0.1% when compared to the first quarter of 2005, according to the Mortgage Bankers Association.

“Borrowers are missing more of their payments than before,” said Matthew Howlett, an analyst at Fox-Pitt Kelton.

H&R Block reportedly has set aside $61.3 million to offset potential losses from its subsidiary, Option One Mortgage, due to delinquent mortgage payments.

The fear of a worsening, even steep, housing slump will continue to result in investors continue to sell mortgage lender stock.

The Economist reported recently that residential property investment amounted to $48 trillion, while commercial real estate investment (CREI) was ‘only’ $14 trillion. This is certainly in part because CREI is much more complex.

Unlike stocks and other investments of that sort, real estate has a solid and very specific, tangible location. Investors may be many miles away, but the property exists as a part of its own very local market, which affects how it is appraised, bought, sold, and used. And unlike residential properties, commercial property is intended for business purposes. As a result, there are different considerations for valuing, financing, leasing, and maintaining these types of properties

A commercial investor must generally invest a great deal more into the purchase and sale of the property. He or she must be savvy, and willing to incur greater risk (and consequently, reap greater reward).

You’ll need to know how to estimate the Capitalization Rate (cap rate) and the Gross Rent Multiplier (GRM). The cap rate can be found by dividing a property’s annual net operating income by its purchase price. In the past, an investment with a 10% cap rate was considered a wise financial decision. Recently, though, that number has dropped to 8%, corresponding to a greater risk and lower expected return. To find your GRM, divide the purchase price by the property’s monthly gross operating income.

You should also consider the difference between a property’s assessed and appraised values, and the total income and replacement costs.

Commercial properties are more susceptible to market fluctuation, which makes them a greater potential risk. Be aware and sensitive to changes in general economic conditions. A smart investor should be concerned always with outside factors that will affect occupancy rates (domestic factors, and foreign alike). Issues across the globe can press heavily upon American business conditions overnight

Commercial property investment requires knowledge of local zoning and leasing regulations. Do your research. In addition, you will need to consider other financial issues. Rented properties need to be heated, cooled, supplied with electricity, and so forth. You will need to provide a security system, and fire suppression. Tenants will need telephone and Internet facilities, as well.

Mortgages and insurance is also more complicated than with residential properties. An exception is the triple-net lease, in which the tenant is responsible for any additional expenses related to building maintenance and repair. In this arrangement, the tenant would also be liable for insurance costs.

The risks are many, and CREI requires very specific local knowledge, but the potential for reward is far greater than residential property ownership. There is also something to be said about the satisfaction one may receive as part of the promotion and maintenance of our collective economic growth. Entrepreneurial dreams will be made and carried out between your walls, and you should certainly take some comfort in that.

Q. My property went into a sixty day escrow. The escrow amount was $3,000.00. Five days prior to closing the buyer’s agent notified me that the contract would be cancelled due to the fact that the property did not appraise for the agreed upon value. Is the buyer’s escrow forfeited?

A. In any situation, you must first turn to the closing contract itself. You should look for deadlines for certain things to occur, such as appraisals. Did this appraisal occur after the deadline? Were any other terms involving deadlines not met by the buyer? This will give you some insight as to whether or not the escrow monies must be returned. A general rule of thumb is that escrow monies cannot be released without the consent of all parties.

Q. We had a closing date set. I have just been informed that the seller is requesting a delay in the closing date. Do I have legitimate grounds for renogiation of the purchase price?

A. The reasons that a seller may wish to delay closing may vary, from the legitimate to outright procrastination. If you attempt to renegotiate the purchase price, it may be considered as a new offer, which replaces the original offer. This may therefore void the original offer and all terms negotiated pursuant to that offer. The safest way to approach this is to simply ask yourself if you are willing to wait for the property at the originally agreed upon price.

Q. I am purchasing a property. The seller has not found a replacement property, and has requested an extension of the escrow period. If I do not agree to the extension, do I lose appraisal and inspection fees, as well as my deposit?

A. The deposit will likely be refunded less a small cancellation fee. The appraisal and inspection fees will most likely be lost. If you agree to the extension, be sure to place deadlines on the seller, such as a time by which a replacement property must be found.

Q. I decided to purchase a particular home, however I have now changed my mind. How do I go about cancelling the contract?

A. A contract is a legal document which you have made with the seller. Cancellation for certain reasons may be allowed, however cancellation on the sole basis of “changing your mind” will likely come with ramifications. You should strongly consider these ramifications prior to backing out of the deal. You should consult an attorney regarding your potential liability in this situation. Typically, a contract cannot force parties to a transaction, however you may be responsible for paying damages to the seller. These damages can take many forms, including the lost opportunities that the seller missed as the result of taking his or her home off the market.

Q. I signed a contract to sell my home. Now I have changed my mind and want to keep the property. Must we sell our home?

A. Again, the first thing to do is to look at the legal document itself. Look for contingencies which will allow you to back out of the transaction. The buyer may decide to enforce the contract in court. You should consult an attorney. It would be wise to make the cancellation more palatable to the buyer by compensating him or her for all of their out of pocket expenses, and maybe an additional amount for their time and effort in negotiating the transaction.

Q. I made an offer on a property. The seller came back with a counter offer. May the seller subsequently sell the property to another buyer?

A. Typically, the seller is free to sell the property to the first buyer who accepts an offer. If you have not accepted the counter offer, chances are the seller is free to do as he or she pleases.

Q. Can I negotiate the selling price of a newly-constructed home?

A. You can always negotiate the selling price of any real estate. However, the seller of a newly-constructed home is usually not willing to budge on the price, for a variety of reasons, not the least of which is the small profit margin for transactions involving newly constructed homes.

Fripp Island realestate has been a popular tourist destination for many years. With a limited rental inventory, many investors are looking at Fripp investment property, and especially Fripp waterfront property, as a potential transition investment/reinvestment strategy. This article looks at the pros and cons of this market.

Located in Beaufort County, South Carolina, Fripp investment property has many of the same real estate and economic dynamics of other barrier islands in the area. First, it is home to many resorts and golf courses and only has a small number of full time residents. Indeed, out of all of the residential properties on Fripp, only a small percentage are used for primary residences. You will find that most of the 450 permanent residents live in the island’s upscale gated communities and homes. The rest of the island is devoted to the tourism industry, and in the peak season, the amount of people who flood the island looking for vacation accommodations can range anywhere from 2 to 3 thousand. With only one 290-room hotel, the demand for Fripp rental properties is extremely high.

Overall prices are as follows: according to published reports, median prices for new and existing homes have risen dramatically from $127,500 in 1999 to over $600,000 in 2006. Fripp Island ocean front property prices now range from $750,000 to 1.7 million and up – still about 30% less than those on neighboring islands. Land values are currently higher than structure values, and as the demand for homes to help accommodate the influx of tourists continues to grow, many property owners are demolishing their current homes in order to build larger ones, or selling the newly vacant lots to developers.

Whether this represents a good opportunity for those looking to reinvest their real estate portfolio is an open question. There is no clear consensus as to whether property values will continue to rise, stay flat, or decline. But if you can make the numbers work for cash flow purposes, owning Fripp investment property might still make smart business sense because Fripp island rental properties have this supply and demand imbalance.

To help you further decide if this is a good market, consider the following information:

The island is also home to a wide variety of wildlife including the spring nesting ground for a population of endangered Loggerhead turtles limiting future land available for development.

Another thing to keep in mind is that although Fripp Island’s natural wildlife helps to make it a popular spot for vacationers; for homeowners the same wildlife can present many day-to-day problems. Indeed, according to a recent survey, many homeowners have experienced recurrent problems with deer depleting the grass and shrubbery on residential lawns and golf courses. Other animals, like gulls and herons, are so numerous that they reportedly also encroach on private and public residences.

One of the best kept secrets among top selling real estate agents, and the most successful home builders in the country, is that “staged” homes sell faster and for more money than homes that are not “staged”.

So what is a “staged” home? A “staged” home is one where the interior elements of the home, such as furniture, paint and accessories, are well considered, and arranged or postitioned in a manner to highlight the best features of the home, while offering the most desirable “look and feel” that buyers want.

Just as you would “set the stage” to create a mood for a scene in a play, you’ll “set the stage” at home to create the look and feel your audience, potential buyers, are looking for.

Staging a “lived in” home versus a newly built home usually involves removing many items from the home. Moving, or even taking furniture out altogether for the sake of appearance and flow are typical when staging a home.

Most of us move to a new home because we want and need more space. One thing that can make a room seem smaller than it actually is, is clutter. Removing clutter is a must. To make the most of the space you have, you must de-clutter.

Too many personal items, such as collectibles and multiple family photos, can be a distraction to a buyer. You want potential buyers to concentrate more on the features of the house itself, not what’s in the house. Buyers need to be able to visualize themselves in the home.

De-personalize: A house full of your personal pictures and your favorite “gone with the wind” collectibles might make a you feel warm and fuzzy all over, but odds are pretty good that they’re merely a distraction to a potential buyer. When you’re selling a home, your home needs to appeal to the greatest number of buyers possible and that’s hard to do if your home is over “personalized”.

Moving or removing furniture: Sometimes all it takes is just “angling” a sofa a little differently to really open up a room, make it look larger, and give it a better “flow”. Also consider removing some furniture if that’s what it takes to make a room look and feel more comfortable.

Highlight the positive aspects of each individual room. Give each room a purpose and focal point. In the living room for example, draw the eye to the fireplace or mantle by angling furniture toward the fireplace. Place only three or five items on the mantle. Group smaller items, such as candles, together in odd numbers to look best.

In a bedroom, you might have a chair in a corner with an afghan draped over the back, a reading light behind it, and a book on the seat cushion.

A great kitchen can literally “seal the deal” for many buyers. Buyers love to see lots of clean, clutter free counter space. Give them what they want. Remove all but necessary items. The fewer items you have on a counter, the more spacious it appears. Do the same in the cabinets and pantry. The kitchen should be clean, uncluttered, organized, and well lit.

In bathrooms, it’s much the same. Buyers are impressed with clean, uncluttered, organized rooms. Get rid of the messy soap dishes and all the bottles of shampoo and conditioner. Hang a new shower curtain along with a few new towels. Maybe even put a couple of candles out by the bathtub.

In the dining room, set the stage as you would for an elegant dinner party. Put out your best place settings, a bottle of wine, a couple of nice wine glasses … and of course, a couple of candles. Make it romantic and memorable.

Fresh cut flowers, or a bowl of fresh fruit will help add color and fragrance in the kitchen or dining room.

And just before your “Open House”, go ahead and put a batch of pre-made cookies or brownies in the oven. It’s easy and memorable to buyers. Do you remember wonderful brownies and cookies smell “right out of the oven”?

What’s the best way to get some “staging” inspiration? Visit a few of the “decorated” model homes near where you live. The designers and decorators that “stage” model homes are paid to know “what’s hot and what’s not”. Use their expertise to help you “set the stage” at your home