Five Common Mistakes Real Estate Buyers Should Avoid

Deciding to buy a home or property is one of the biggest financial decisions most people make. But there are also many common pitfalls for veteran and first-time investors. Financial expert Mark Lamkin from Lamkin Wealth Management explains the five common mistakes to avoid when investing in real estate.

• Mistake 1. Lack Of Research: 

Before most individuals buy a car or a television set they compare different models, ask a lot of questions and try to determine whether what they are about to purchase is indeed worth the money. The due diligence that goes into purchasing a home should be even more rigorous.

There are also research considerations for each type of real estate investor - whether a personal homeowner, a future landlord, a flipper or a land developer. (If you're flipping houses, check out Fix It And Flip It: The Value of Remodeling, Five Mistakes That Make House Flipping A Flop and Top 5 Must-Haves For Flipping Houses.)

Not only must the prospective buyer ask a lot of questions about the home, but he or she should also inquire about the area (neighborhood) in which it is located. (After all, what good is a nice home if just around the corner is a college frat house known for its all-night keg parties? Unless of course, you're attracting a student renter.)

The following is a list of questions that would-be investors should ask regarding the home in question:

1. Is the property built in the vicinity of a commercial site, or will long-term construction be occurring in the near future?
2. Does the property reside in a flood zone or in a problematic area, such as ones known for radon or termite problems?
3. Does the house have foundation or permit "issues" that will need to be addressed?
4. What is new in the house and what must be replaced?
5. Why is the homeowner selling?
6. What did he or she pay for the home and when?
7. If you are moving into a new town, are there any problem areas in town?

• Mistake 2. Getting Lousy Financing

Though the real estate bubble in North America ostensibly popped in 2007, there are still a large number of exotic mortgage options. The purpose of these mortgages is to allow buyers to get into certain homes that they might not otherwise have been able to afford using a more conventional, 25-year mortgage agreement.

Unfortunately, many buyers who secure adjustable/variable loans or interest-only loans eventually pay the price when interest rates rise. The point is that home buyers should make sure that they have the financial flexibility to make the payments (if rates go up). Or they should have a back-up plan to convert to a more conventional fixed-rate mortgage down the line.

• Mistake 3: Doing Everything on Your Own

Many buyers think that they know it all, or that they can close a real estate transaction on their own. While they might have completed a number of deals in the past that went well, the process may not go as smoothly in a down market - and there is no one you can turn to if you want to fix an unfavorable real estate deal.

Real estate investors should tap every possible resource and befriend experts that can help them make the right purchase. A list of the potential experts should, at a minimum include a savvy real estate agent, a competent home inspector, a handyman, a good attorney and an insurance representative. These experts should be capable enough to alert the investor to any flaws in the home or neighborhood. Or, in the case of an attorney, he or she may be able to alert the home buyer to any defects in the title or easements that could come back to haunt them down the line.

• Mistake 4: Overpaying

This issue is somewhat tied into the point about doing research. Searching for the right home can be a time-consuming and frustrating process. And when a prospective buyer finally finds a house that actually meets his or her needs/wants, the buyer is naturally anxious to have the seller accept the bid.

The problem with being anxious is that anxious buyers tend to overbid on properties. Overbidding on a house can have a waterfall effect of problems. Buyers may end up overextending themselves and taking on too much debt, creating higher payments than they can afford.; as a result, it may take years for the home buyer to recoup this investment.

Are You Overpaying? To find out whether your dream investment has a high price tag, start by searching what other similar homes in the area have sold for in recent months. Any real estate broker should be able to provide this information with relative ease (particularly with their access to a multiple listing real estate agent database). But as a fallback, or if you are not using a realtor's services, simply look at comparable homes in the local newspaper, and see what they are being offered for. Logic should dictate that unless the home has unique characteristics that are likely to enhance its value over time, the buyer should try to keep any bids consistent with other home sales in the neighborhood.

Buyers should realize that there are always other opportunities out there, and that even if the negotiation process becomes bogged down or fails, the odds are in their favor that there is another home out there that will meet their needs. It's just a matter of being patient in the searching process.

• Mistake 5: Underestimating Expenses

Every homeowner can attest to the fact that there is way more to owning a house than just making the mortgage payment. Unlike renting, there are maintenance expenses that go along with mowing the lawn, painting the shed and tending the garden. Then there are the costs associated with furnishing the house and keeping all of the appliances (such as the oven, washer/dryer, refrigerator and the furnace) running, not to mention the cost of installing a new roof, making structural changes to the house, or other little things like insurance and property taxes.

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Ten Tips Toward a Quality Offer on a Home

For an agent to display an offer to purchase can be very telling, because that form is one to become very familiar with, before you are even close to signing one.

It is a positive sign when an agent educates you. That form can be stressful and scary, or it can be exciting and satisfying. The difference is what you know about how you got to this point and making wise choices; choices based on facts and emotional restraint.

Unfortunately, "fear of loss" is one of the reasons buyers choose a home. There will be another home coming along if you are not successful on one.

To become comfortable with the form before you get involved with the details of signing an offer is a good example of "what you know."

Do not wait until an agent is asking you to sign this document to read it for the first time. Ask an agent you interview to provide a copy of the "offer to purchase" form so you can prepare for the time to negotiate, then reserve a time to read it.

Have a notepad to write questions down about the purpose of certain clauses or when the meaning is not clear.

Read every document in advance of signing in a real estate transaction. Technology has made it convenient to share documents electronically.

While completing documents at the kitchen table or the hood of a car can be very convenient, today there is no reason for not reading them in advance.

We are all accustomed to agreeing to "terms of use" without reading them when we sign into websites, but it is much more personal and perilous when buying and selling real estate.

Ask questions you have by using email. There are a number of reasons for this approach:

• You and the agent can dialogue when it is convenient for both of you.
• You gain time to consider implications in the document's words before you sign it.
• Writing questions down and answering them in writing commits each party to communicate clearly.
• It is more memorable than conversation.
• It is easy to store the information for future reference.

There is an old far-Eastern proverb that will help you apply this practice to your process, "The strongest memory is no match for the weakest ink."

Remember that your offer becomes a contract of sale when accepted as written. You do not want to leave any question unanswered unless you have protection with a well-written contingency.

Understanding the language and reviewing the offer beforehand should help reduce last-minute concerns and surprises. Here are just a few of many important subjects:

• Agency disclosure
• The proposed price
• Contingencies
• What personal property or fixtures is included, or not, in the sale
• Deadlines
• Penalties
• Representations of known defects
• Can the buyer force the closing when the seller reneges? Can the seller sue for specific performance if the buyer fails to close?
• What if there is a fire?

When you are selecting an agent to help you find your home, observe how the agent reacts to your question about providing documents in advance.

If they see part of their job is to prepare you for what is to come, they may be a good choice.

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Six Real Estate Mistakes That Can Cost You

In real estate transactions, the stakes are high and even a small mistake can end up costing you thousands of dollars. Whether you’re looking to buy or sell, here are some common mistakes to watch out for. 

1. Not Getting the Price Right: One of the toughest pieces of any real estate puzzle is setting the right price. If you price it too low, you potentially leave money on the table. Price it too high, and it will sit on the market for too long, causing buyers to will wait until you’re desperate and then make you a cut-rate offer. The mistake many sellers make is to simply look around at the price of other homes in the neighborhood without thinking carefully about whether those home are comparable. So if you’re in the market to sell, your first step should be to hire a home appraiser. It might cost a few hundred dollars, but it’s an expense that can save you thousands down the road.
2. Not Fixing It Up: While hurrying through the process of selling a home, many sellers fail to take care of all of the little things, like a door that’s coming off the hinges, an overgrown backyard, or a chipped and peeling paint job. While these problems might seem minor, they add up and can cause buyers to view your home more as a fixer-upper than a dream home. Before you put it on the market, spend a few weekends making sure your home is looking its best.
3. Hiding Problems From the Buyer: Some sellers think they can conveniently “forget” to disclose problems to a buyer. While a buyer might not discover the problems during the inspection or walk-through, they are bound to eventually. And if those problems are severe enough, you could be in for some costly litigation. Don’t try to pull a fast one on buyers. Make sure they are informed in writing about any issues so that there is no cause for dispute after the sale goes through.
4. Wrecking Your Credit At the Last Minute: The home-buying process can be long and drawn out, which provides ample time for buyers to make some big financial mistakes. Many buyers fail to realize that a pre-approval is not a guarantee that you will land a loan. If you do something to change your credit status during that time — such as buying a new car, or missing a few credit card payments — the pre-approval numbers you were quoted can disappear in an instant. The bank might stick you with a higher interest rate, or lower the total loan amount, jeopardizing your chances of landing your dream home.
5. Getting Into a Bidding War: During a heated bidding war, emotions run high, which can cost you dearly. If you have your heart set on a house and want to go above the asking price, make sure you have someone to do the negotiating for you. Many novice buyers, looking to save a few bucks, will venture into the housing market without a buyer’s agent at their side. But a good buyer’s agent will be an advocate on your behalf and will be a shrewd negotiator  during the process.
6. Not Taking the Inspection Seriously: Most lenders will insist on a inspection before they sign off on the deal to ensure that the home isn’t about to collapse in on itself. Unfortunately, buyers often treat this as just another step in the process and fail to take advantage of the inspection. Follow along with the inspector and take detailed notes to get a sense of potential problems. Armed with information about a home’s faults, you can use the inspection as leverage to drive down the price.

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Tips for a Quick House Sale

As natural as the impulse might seem, try not to panic. You’re still in control of your house-selling destiny. You have options that will promote interest in your home and preserve your sanity.

The three most important factors when selling your home are marketing, presentation, and price. Let’s start with the last one, because that’s where the majority of people make the most mistakes in a hot market like ours.

Positive stats might tempt you to shoot for the moon, but you must keep your list price in line with your comparable market analysis recommendation. Those comparables — similar homes that have sold recently, in your neighbourhood — don’t lie. They’re the most accurate bellwether for what the market will bear.

If you haven’t had more than a couple of showings over a two-week stretch, you might want to consider lowering your list price.

(Keep in mind that the average time to sell in Edmonton is about 49 days, according to the Edmonton Real Estate Board; if your home has been on the market for less than a month-and-a-half, you can afford to be patient before moving to a price cut.)

Perhaps you factored in some top-line renovations into your list price — a granite countertop here, stainless steel appliances there. Proceed carefully. Buyers aren’t necessarily itching to honour the complete cost of that work, let alone eat up additional costs just so that you can pocket a profit. Sellers CAN make money fixing and flipping, but it’s not as easy as HGTV leads you to believe (more on that next month).

If you feel your price is solid and you’re still not getting any action, move on to marketing.

Too many A-list homes squander potential viewings and exposure because the photos are strictly B-list. Fuzzy, cluttered, poorly composed shots don’t make your home jump off the page. You’re in a competitive marketplace, with customers who have a lot of options and not a lot of time to consider them. Get professional photos.

Then, move on to the balance between open houses and private showings. Open houses can be very effective at generating interest, particularly after a price reduction, but they can also be a time-waster.

The key is to treat open houses like a business project: maximize efficiency and get the most bang for your time. Don’t spend all day smiling in your foyer. Two hours on a Sunday? Perfect. Too many people let their open houses rule their weekends.

The opposite holds for the private-viewing appointment. Within reason, you have to be willing to move heaven and Earth to make these happen. Buyers can be fickle; if they’re on a six-house viewing binge and they can’t fit yours in, there’s a good chance they’re gone forever. Unless there’s a can’t-miss element in your home that you’ve managed to convey in the listing, busy buyers are going to err on the side of convenience.

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The Tales of a Long Commute Back Home

Whether you are moving to a new apartment or starting out again at a new office, the commute you take everyday is an element of the new chapter in your life that is hard to overlook.

Your commute to your new address or to your new office definitely has its own set of pros and cons to your daily routine. In a nutshell, the commute you take can either be a strain or a benefit to your overall well being. Let's take a look at how that happens.

It is natural to be confronted with different kinds of hassles in a day, and commuting usually takes the cake. Traffic, pollution, the noise and the fear of being reprimanded because you are late are natural offshoots of a long, annoying and irritating commute. These risks of a long commute are hard to control, hence it can heighten stress levels of the roof. 

Add to that the physical stress a long commute brings to the body such as neck pain, back pain and overall fatigue. Hence, if you happen to have a work mate who reports late to work most of the time, he or she is likely to report bouts of physical stress as well.

However, it is interesting to note that there is also a handful of benefits from a long commute.

Especially for those who take public transport to get to where they need to be, freeing their hands from the steering wheel of their car can provide them more options and time for any kind of preparation or relaxation they want before working. 

They can read the morning paper, check and answer their emails, play games on their phone, fix their tie or their laces, or even sneak in a quick breakfast if they can. If the commute from the house to work lasts for an hour, that means you have one full hour to prepare yourself for what lies ahead in your day. 

Commuting by driving can also be a good opportunity for same major catch up with yourself. As you stand by the wheel of your car, you can listen to the morning news on the radio, belt out some of your favorite tunes to beat the traffic and simply cherish some me-time that you won't have if you are taking the subway or the cab to get to work or any place you need to be for the day. 

At the end of the day, the choice is always yours whether to make something good out of a long commute or lament it by succumbing to stress or road rage. Just as there are many options to address a long commute, there are also as many options out there to beat it and how to make a more favorable commuting arrangement on your end.

If you cannot tolerate a long commute from your house to work, then look for a place that is near your workplace. Rent out an apartment for a short-term arrangement or go full out for a new property if you plan to stay in your current job for the long haul. At this point, it helps to seek the services of a real estate agent who can present to you as many options as possible to give you the best and most favorable living arrangement given your circumstance.

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The Perks of Having a 2-Bathroom Property or Apartment

More to clean up. More fixtures to maintain. And you may not even need a spare after all. At least that's how the mind works of a property buyer or lessor currently in the battle of whether getting a 2-bathroom property or not.  

The perks of having a 2-bathroom property may not be imminent, but having 2 can put you at a great advantage in the long run.

Did you know that having 2 bathrooms at home means having less arguments in the house? Unless arguments happen in the kitchen or in the living room, having 2 bathrooms at least lessens the issues from happening at home. But then again, if you do not have a strict bathroom schedule that everyone who lives with you will follow, you definitely need another bathroom to keep the harmony intact.

Having 2 bathrooms also increases your privacy, especially if you happen to be splitting the rent with a roommate. Since you share every inch of space in your apartment already, it wouldn't hurt to have a semblance of privacy in your bedroom and also in the bathroom. Regardless if one bathroom only houses the toilet and the other is the full one with the shower, you still get a dedicated space for each of your toiletries, medicines and other personal items.

Waking up every day to 2 bathrooms is the same as waking up to convenience. Just imagine how unpleasant it is to find your roommate in the toilet since he or she forgot to lock the door. With 2 bathrooms, you do not have to have a schedule for use of the bathroom. No need to rush nor change schedules just to accommodate the needs of one another.

Also, there is nothing wrong with having a backup. A spare and hardly-used bathroom is like a force of angel when the bathroom that you regularly use suddenly becomes out of order. You will be glad you made the decision of having a spare bathroom that you can use immediately.

A second bathroom at home makes it perfect for entertaining guests as well. A second bathroom makes it convenient to accommodate guests when they need to go to the loo. You do not have to excuse yourself with all the personal effects you have in your bathroom. You can design your spare bathroom specifically for your guests’ use.

More importantly, if you have plans of selling your property in the future, this is good news. 

A property that has 2 (or more) bathrooms is usually higher in value compared to a property that only has one. You will be surprised at how your property will fare should you have plans of putting it on the market.

If it is not going to work to the advantage of leveraging your lifestyle, if you think it will not provide you convenience or it's not a considerable source of profits, then the value of second bathroom is worthless to you. If it is the opposite, then you know exactly what to do. 

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Top Tips When Finding Your Real Estate Agent Match

The best real estate agent for your property and your requirements is not always the one with the flashiest ad in the newspaper or the nicest TV commercial. The best real estate agent should match well with you, and to find the best match is a lot of hard work on your part too. 

Professionalism, a good reputation and an impressive track record should be your 3 non-negotiable when looking for a real estate agent to hire. 

But subjectively, you need to keep a list of qualities the real estate agent you will hire should have.

1. Dedicated. Will he be able to meet my actual requirements? A real estate agent may be a professional, but that does not mean he should undermine your needs and impose his own above it.
2. Selfless. Will he be able to serve your interest above his? It is true that real estate agents earn on commission, but that should not mean your interest is served under his. Your interest must be at the centre of his work at all times... even if it means he'll get a small chunk of your sale to make you a satisfied client.
3. High integrity and client service. Do his previous clients and references have positive feedback about his work?
4. Knowledgeable. Is he familiar with the area where you are buying or selling a property from? Does he know the general market value or the price bracket of properties in your area?
5. Word of honor. Is he altering the market situation in his favor? Is he realistic with the details and assessments of the real estate situation?

Fortunately, with the kind of technologies that we have, finding a real estate agent is a piece of cake. 

There are directory websites that feature all the real estate agents found in your locality. You can start from there and if you feel quite confident with a particular agent you find, do your research. If there’s any, access their website, read their blog and assess reviews or recommendations from their past clients. 

It is essential to shortlist at least 3 to 5 real estate candidates. Meet with them personally to validate what you have researched.

Prepare your questions before meeting them up. Below are examples of questions that you can ask them.

• How many years have you been working as a real estate agent?
• How has it been like? 
• Are you a full-time agent or working part-time?
• How long have you been working with properties in this side of town?
• How many sales were you able to close last year?
• How do you represent your clients? Do you represent buyers more or sellers?
• In a month, how many prospective buyers or sellers approach you?
• How many properties are currently listed under your name?
• What's your marketing strategy?

There are definitely more questions you can come up with. It shows what kind of service you most require and the hoops you will jump through to get it.

Appraisals and assessments should not cost you. In the event that the real estate you want to hire offers an appraisal and an assessment for free, remember that it should not be the case. You are no way obligated to one real estate agent at this point in your selection process.

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Do You Want to Live in the Heart of the City?

There is something glam and glitzy about living in the city. It seems like the world is your oyster. Your life is in your hands.

In a few words, living in the city means living where the night life happens. You live near restaurants, bars and malls plus schools, museums and parks. You can be well assured that transportation will not be your problem as you are most likely well-connected given the trains, buses and cabs that run in and out of the Central Business District (CBD).

Living in the city means living where the action is.

It is also appealing for people whose work is located in the CBD. Aside from the social life, economic and financial activities also characterizes the city center.

The hustle and bustle of city living may be appealing, but definitely not for everyone. In fact, you will be surprised at the number of reasons why a handful of people still opts to live in the suburbs.

Traffic congestion is probably the biggest issues in city living. Traffic jams are everyday headaches that people contend with regardless. Traffic congestion becomes more pronounced as car ownership becomes easier thanks to flexible car plans. However, this is not exactly the case in Singapore, where the cost of cars is purposely made expensive to control traffic.

Pollution is also another reason that puts city living on the challenging side of things. Just imagine the number of cars, buses, and trucks that pass along city roads day in and day out. Truly, pollution is inevitable in busy environments.

Living in the city also makes the cost of housing high. As people become more congested in the urban centre, land becomes extra precious to have. Land cuts also become smaller just to accommodate everyone. And as the demand goes high and supply remains limited, it naturally affects prices to reach ceiling high rates. Land ownership or even just renting out a space can cause a dent in any urbanite’s pocket.

There will always be pros and cons whether you choose a quiet and peaceful life in the suburbs or in a rather noisy, fast-paced and congested nook in the city. You just have to be ready to give up one (or 2) of your comforts to live the life that you want for yourself and also for your family.

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Ways to Declutter Your Home to Help You Sell

A big buyer turn off is a cluttered home. Mess spells chaos and if you want to sell your property quick, you need to find ways to get rid of the clutter. 

Decluttering usually means getting rid of things and throwing them away, but it is not always easy regardless if the property you are vacating is a small apartment or a 2-storey house.

In this article, we will show you ways how you can declutter so your property is ready for the real estate market.

First, get an outsider’s perspective, if your property is indeed a mess and chaotic place. We tend to invest in a lot of furniture and sentimental items and we put them in our house for decoration. For us who see the same things day in and day out, we might think that the effects in our property are clutter instead of a feature of your home that highlights it as a good place to live in. Ask a friend or a family member about what they really think about your property. Your home may be perfectly organised as it is and you only need to declutter on a few rooms and not on your entire space. 

Second, inspect the nooks and crannies of your property. Clutter resides in corners, inside shelves and cupboards, under beds, and in the attic. Prioritise these areas as you declutter instead of attending to the most obvious areas of your property. When a potential buyer inspects your property, he or she will likely open cabinets, see storage rooms and check areas often neglected on a daily basis. Make sure that you do not oversee these areas of your property during home viewing. At its best, these tiny yet important areas of your home help in giving your property the best impression possible. 

Third, get all the clutter away and sort them accordingly. Will you take this clutter with you as move to your new address? Will you donate it? Or will you simply toss it in the garbage? If you think you are getting rid of valuable clutter, but you have no plans of taking with you anymore, hold a garage sale in your neighbourhood. It is a great way to get some value from things you do not need anymore.

Fourth, remember not to declutter everything. It is best to leave a few neutral decorations in its original place to make your property a little more inviting to your prospective buyers. Stow away your personal items and put them in a box for hauling. Saving a few trinkets and home furniture will help you save money on home staging.

Lastly, start decluttering as early as possible. Remember that the clutter you have so far did not arrive all at the same time. These things have accumulated over time and so it follows that getting rid of them cannot be done in one go. Start decluttering on one area of your property and you are on your way. 

You may be able to handle all your decluttering requirements all by yourself, but you definitely need professional help when selling your property in the market. Get the help of professional and experienced real estate agents who can give the best price and the best exposure for your property. 

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Buying a Property? Here's What You Need to Look for As You Make a Purchase

Buying a property should be a calculated move. It is not advisable to go into the act of buying a new property without being careful about what the property has to offer to you. It is not just a new house that you are buying. More than anything, you are buying a new lifestyle.

It is important that you buy a property based on the neighborhood it is situated. Is it located in the city? Is it located in the suburbs? Visit the place and get the feel of the location. If it is an easy drive to the new neighborhood, dedicate a weekend for a personal ocular inspection. Not only will you be able to judge the quality of the neighborhood, but also the safety and security it has.

Aside from the neighborhood, investigate on the transportation system as well. Is it well-connected by train? Does public transportation such as cabs and buses regularly pass by your area? Even if you have a personal vehicle, it is essential that your new place of potential residence can be easily commuted. A well-connected residence is always convenient.

Again, the safety and security of your new property-to-be should be a prime consideration as you make a purchase. There is no point in leaving your old neighborhood if you are migrating to a place where the crime rate is high, and there is the absence of security forces patrolling the area. Be watchful of local news that pertains to neighborhood insecurities. As you perform your personal ocular inspection, check if there is a police station nearby. Look at the different security measures that the neighborhood implements also for your peace of mind.

Is it near commercial establishments such as your place of work, your kids’ school and a mall? Again, there is no point in switching homes if you are simply moving away from these essential commercial establishments that play a role in your routine. You may not mind doing a long commute to work, to drop off your kids at school or to do errands at the mall, but all these will definitely catch up with you sooner or later. Aim for convenience at all times. It is the only way you will be able to measure that you did a good job in selecting a new property to live in.

Definitely, you need to factor in the indoor quality of the property you are buying. Prepare a checklist such as the one below.

• How does the kitchen look like? If you are particularly keen on the kitchen area, you should look carefully into the cabinets, the counters, the flooring and the appliances if ever appliances are included. If the quality of the kitchen does not meet your expectations, factor in the cost of repairs and replacements. 
• What is the quality of the bathrooms? Bathrooms are probably the most expensive to remodel. The replacement of bathroom fixtures and plumbing repairs for leaks can cost quite a fortune if you happen to inspect a home that has poor bathroom quality.
• Is the roof still okay? Next to bathrooms, roofs are also quite expensive to replace and even repair. Look for leaks, cracks, ripped parts, curled edges and missing shingles. If there are segments of the roof that are rotting or have algae growth, ask what the previous owner plans to do with it prior to selling.

There are definitely more things that you need to watch out for when buying a property. Consult the help of a real estate agent too to make the selection and inspection processes a lot easier to manage on your end. If you are looking for a property to buy in Victoria, consider Raine and Horne to help you in your selection process. 

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The Why's and How's of Property Inspections

If you make it a point to test drive a vehicle before buying it, the same goes when buying a property. Inspections are everything when it comes to property buying. You will never know what you are going to get or what you are getting yourself into 100% without a careful and calculated inspection of the property you are a few inches away from buying.

Why inspect?

• Property inspections will provide you the features and conditions of the property and its local area. If you are inspecting more than 1 property for the week, make sure to take down notes or take pictures. Of course, ask permission from the real estate agent if taking pictures is allowed. 
• Property inspections will let you know if the property indeed meets your basic (and not-so-basic) requirements. 
• Is the location convenient to commercial establishments such as a mall or a school?
• Is the size good enough for my family of 4?
• Is the location prone to flooding?
• Does the property meet my style?
• How old is the property?
• Regular inspections of the property you want to buy will tell you about the repairs and structural concerns you need to address eventually.
• Do the floors need replacing?
• Are there blisters on the wall painting?
• Are there cracks or stumps on the walls?
• Are there leaks in the roof?
• Property inspections will tell you if there were alterations made to the property. Especially if the property was extended or renovated, you need to know that these improvements were permitted by the local council. Not only do you buy the property, but you also inherit the responsibility in case the alterations were made illegal.

How to inspect?

• Attend an Open for Inspection. Check websites and the real estate sections of newspapers for Open for Inspection dates. If you are attending an inspection, you might have to show a proof of identity to the real estate agent for security.
• Get a professional to inspect the property. The cost of hiring an inspector is smaller than the cost of a property that comes with a lot of structural challenges. The inspector - an actual building inspector, an architect, an engineer or a surveyor - will tell you all the faults in the property, the repair potential of these faults and how much the repairs will cost you. An inspector can also identify structural faults that have been addressed with cosmetic cover ups.
• Do pest inspections. Investments need to be protected especially from tiny invaders that can crumble that piece of investment down. Do pest inspections with an exterminator present. This is a small price to pay to ensure that your property will not fall into pieces. 

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Selling a Property? Let A Real Estate Agent Do It!

Now that you have prepared your home for pre-selling, it is now time to look for a real estate agent who will do the actual selling for you. While there are many ways and reasons for you to sell your property on your own, there are a lot of advantages if you leave it in the hands of real estate professionals.

Do you want to sell your property? If so, it’s best to look for a real estate agent who is also based in your location. Having deep local property market knowledge with strong ties to the neighborhood is one of the prime factors when looking for a real estate agent.

What exactly can a real estate agent do if you are selling your property?

1. He will give you a realistic value for your property. It is natural for a seller to get a really great amount of money in return for the house they are planning to sell. No matter how ambitious, your selling price should be reasonable against the many factors that determine property values. Factors that affect the value your property are:
• Supply and demand
• Interest rates
• Economic growth
• Demographics
• Parking
• Home improvements
2. Your real estate agent will help you how to sell. They can advise whether selling your property by auction is better than conducting a private sale or vice versa. Let’s say you plan on auctioning off your property. What are the benefits of selling at an auction? If you want potential buyers to be competitive with your price, set an auction. A property that looks good will be competitively bid on by potential buyers.  You can exceed your property’s expected value. You can also set your own terms. If you do not want any cooling off at an auction or if you want to approve settlement terms as requested by your buyer, you can do so in an auction. At an auction, there is a sense of urgency. If you want it to sell fast, sell your property at an auction.
3. Organise your property for viewing. Inspections and property viewing are imperative for prospective buyers. At this point, you need to stage your home such that it looks enticing and appealing for buying. A real estate agent can organize inspections and property viewing to your prospects. 
4. It helps to hire a professional stager if you want the best front for your property. The stager can arrange your furniture and spice up your interiors and exteriors. Ask your real estate agent for a stager they can refer to you. Increase your property's exposure to other buyers. Real estate agents have their own database of prospects. Moreover, they have the technology (such as a website), international capabilities (so that your property is not marketed only to your chosen locality) and brand recognition (especially if the real estate agent you hire comes from a known real estate company) that you can take advantage of by hiring them to sell your property. 
5. Handle all negotiations on your behalf. Especially if you are new in property selling, you need someone who can handle all negotiations for you. A real estate agent who has your best interest at heart will strive hard to make all negotiations to give you the best price possible. 

If you want advice in professionally marketing your property, scheduling inspections and viewing, increasing your property's exposure across local and international markets and finalizing your property's sale, get a real estate agent who has in-depth knowledge of local property market.  

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Know These Six Ways to Keep Your Business Safe

Now that you just bought a business that you like from its previous owner, now is the time to keep it safe from all possible dangers. This is your business now and it is essential to keep your investment all in one piece by doing all or any of these 6 ways to keep your business safe.

1. Invest in secure door locks: Even if you plan on having a 24/7 operations for your business (such as a convenience store), you need door locks that will keep your business premise safe and tidy in one piece. Fit deadbolts to your doors so that your premises become totally untouchable to outsiders once you are officially closed for the day. Make sure that all entry and exit points are fortified with locks and that spare copies of your keys are left in the hands of staff members who you trust.
2. Get a security camera: It is impossible to keep an eye on every activity that goes inside your business premises. You need to pay attention to your customers, to your staff, to the deliveries that take place everyday and so on. You cannot keep an eye on every single activity most especially the fishy ones. With the technology that we have today, it is easy to get a reliable yet an affordable security camera that can monitor and survey your premises for as long as you are open for business. And in case something really fishy is happening, you have evidence to show to the courts. 
3. Install safe windows: Invest well on the fixtures that go in your premises starting with your windows. If you cannot get your windows to have secure locks, invest in burglar-resistant window panes instead. While the purchase of a glass break sensor alarm may be a tad expensive, there is always a price to pay when it comes to your premises' security. Moreover, make sure that window treatments you invest in for your business premises align with the Building Code of Australia.Check with your builder or contractor. 
4. Property lighting: Proper lighting for your business premises goes a long, long way in keeping you, your staff and your customers safe. Make sure that your premises' perimeter is well lighted to avoid threats to your security. It is your best protection against burglaries, vandalisms and more. Keep all doors and other entry points well-lighted. Invest in LED and CFL lighting so you do not shock yourself with a pricey electricity bill at the end of each month.
5. A secure cash register or a safe box: Get a tamper-proof, burglar-resistant and fire-proof cash register or safe box and keep it away from plain view. Keep it locked at all times if you are not by the counter. If you are keeping a safe box, make it a habit to change the combination code whenever you release someone from your employment. If possible, do not give out combination codes to your safe box to someone you do not trust 100%.
6. Keep confidential details confidential: Especially if you recently bought an existing business, make sure that all paper works are transitioned to you and that includes all business contacts, contracts and policies. It is important that these are not divulged so as to protect your interest as the new business owner and proprietor.

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Are You a Financially-Fit Home Buyer?

It is every peoples' dream to be a home owner, but dreams, no matter how ambitious, should always be practical and realistic. It does not help to advance your mind and your focus on what’s ahead if you do not have the means right in your own hands as we speak.

Buying a home is a big financial commitment and it should follow that your finances is committed also in your effort to call a property your own. Are you financially-fit to take the plunge?

You are sure and clear-cut on what you can afford

If you can honestly and straight out say to yourself an amount that you know you can afford in buying a house, then you can say that you are indeed financially-fit to take on a big commitment.

Know how much you can afford and the kind of property and location you want to put your money in.

When identifying how much you can afford, it is important to:

• Factor in your lifestyle.
• Look into the different types of properties that are available given your price range.
• Know whether it is near public transportation facilities and commercial establishments.
• Know its potential for sale in the near future.

You can buy a house given your regular monthly spending

Know how much you spend in a month in terms of your:

• Household bills - electricity / water / Internet / cable TV
• Groceries
• Leisure - shopping / travel
• Debts - credit card / loan settlement to help you tidy up your credit history

Given the amount you have for each of these monthly mainstays, will it still allow you to buy a house that you want?

By reviewing your finances, you will be able to know how much you should borrow from your lender. When borrowing money, factor in the cost that will go for:

• Inspections
• Conveyancing
• Stamp duty
• Real estate agent fees

Do not borrow money that will only help you shoulder the cost that your current finances cannot cover, but factor in your upfront and ongoing costs also when borrowing money. You wouldn't want to make a second loan and go through the hassles and the paperwork for the second time around, right?

You have a well-built savings account

Especially if you are applying for a home loan, you need to show to your lender that you are a good candidate to be granted with a loan. 20% deposit may no longer be a requirement these days, but keeping a well-built savings account should be your priority.

If you are about to open a bank account, aim for a high-internet savings account or a time deposit that has promising interest rates. Do a lifestyle check too. Now that you are building your savings account, maybe now is the best time to move back in temporarily with your parents so the money you pay for your rent can go to your savings account instead. Or maybe you can lessen the number of times you eat out by cooking more at home instead.

Final words

The answer to whether you are financially-fit to become a home buyer definitely takes a lot of time. And a lot of dedication and hard work. Sooner or later, you will reap the benefits of what you saved as reflected in the home that gives you comfort and security.

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Questions Every Buyer of an Existing Business Should Ask

Starting a business from scratch is a lot of work. That's why for those who want their own business, an existing business that is for sale is hard to pass up.

Purchasing an existing business for sale could mean preventing the inconveniences of starting a business from the ground all the way up. For first time entrepreneurs, an existing business is a safer option since they can acquire the customer base, the regular cash flow, the goodwill associated with the business name (hopefully) and the contacts from the current business owner. It's a full package. 

Despite its appeal, it does not mean that an existing business that catches your attention is the one that you will buy on the spot. Set the path straight by asking the right questions.

• Why is it on sale?: Asking the owner why he is selling can either raise red flags or just confirm your intention of buying it. The response is also an indication of the seller's motivations. An owner may sell his business because he is retiring and no one in his family wants to continue what was started. It is possible that the owner is migrating and the better option is to sell the business than closing it. Worse, it is possible that the owner wants to try a different industry. If the owner is selling because the business is failing, that is one example of a raised red flag that you should not miss. 
• What is the business’ reputation?: A business' reputation is essential to its survival. Reputations are formed and characterized by the trust and confidence it has gained from its customers. This is a question you can answer on your own. If the business is still operational, try to visit the place. Try to evaluate the kind of customer service available. Are they attentive to their needs whenever their attention is called? Do you feel valued as a customer? Are they appreciative of your presence in the store? If the business is already closed and waiting for a buyer, try to ask for customer feedbacks and assess from there. 
• What is the future of the business?: When buying a business, what you should look for the most is its profitability. There is no point in buying an existing business that has no future and will require you to exert the same effort as if you started a new one from scratch. Buying an existing business means acquiring its potentials as well as its problems. Request for financial statements from the seller. Buying an existing business means buying its income stream and the expenses of its operation. Seeing the financial statements will also let you know how you can recast it once you acquire the business. It is possible that you will not see the financial statements on the first meeting, but you will need this eventually. If the seller does not want you to see the financial statements (maybe it's really bad, he doesn't have any documents to show at all or he thinks that you are not a credible buyer), that should be your cue to look for another opportunity.

There are definitely more questions to ask when you are in the market for an existing business to buy. Keep your questions aligned with your objectives and plans. Always think of the future and how this can be a sound decision you can make today.

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Manila in Fragments WTA Architecture and Design Studio in La Biennale 2014

Metro Manila continues to witness major transformations on its landscape. What were once barren districts are now thriving with structures that host multinational companies and iconic commercial and residential developments.

Long-standing buildings from old avenues are being preserved through furthering its purpose and role in the growth of its provenance. The number of city centers, or at least those that are aspiring to serve as one, is on the rise—bringing together the live-work-play aspects in a single dense area to fulfil the promise of convenience and modern living.

Despite such renovations, the paths that identify the richness of Manila’s history are still visible— how the metropolis sprung from cohesion of small communities in the form of barangays, as well as the influence of the colonial era. Picturing these elements, when combined, the city has an immense contrast of edifices that help strengthen the character and diversity of its entirety. 

These are just some of the ideas that make up WTA Architect and Design Studio’s installation for the Global Art Affairs Foundation Architecture Exhibition, a collateral event for the 2014 Venice Architecture Biennale. Carrying the theme Fragments: Uncertainties and Characters, WTA will be presenting the various cultural, social, and political influences that mould the urban character of cities in the Philippines, particularly that of Metro Manila. Dissecting Manila’s Urban Fabric “Our exhibit seeks to elaborate how uncertainty and informality allow for a greater growth and creativity,” shares Founder of WTA Architect William T. Ti. 

WTA Architecture and Design Studio is the first Philippine-based firm to take part in the Biennale. The firm’s participation aims to show the international community what is going on in the Philippine architecture scene. “Fragments: Uncertainties and Characters” will show the city of Metro Manila as seen through the lens of the firm's experiences, highlighted by a selection of WTA’s projects that are envisioned to create the biggest positive impact in the landscape. 

To date, the Venice Architecture Biennale is one of the most prestigious cultural institutions in the world that showcases architecture installations and large-scale contemporary art crafted by different artists and designers across the globe. The exhibition is held once every two years in Venice, Italy, and for this year, the show will run from June 7 to November 23, 2014.

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Ten fully-furnished condo units to be won in the SM Supermalls Shop and Win Promo

Ten lucky shoppers will get to experience star-life condo living as the country’s largest chain of malls, launches their biggest and grandest promotion, the SM Supermalls Shop and Win an SMDC Condo Promo. The country’s largest shopping mall operator teamed-up with SM Development Corporation (SMDC), the leading real estate company in the Philippines, to give away 10 fully-furnished condominium units in prime locations. 

To join, one need only to shop or dine for a minimum of P1,000 single or accumulated purchase in any of SM Supermalls’ 56 mall locations nationwide including SMDC Jazz and Sun Mall. Shoppers simply present their receipt/s along with their E-Plus Loyalty card, SM Advantage card, SM Prestige card or BDO Rewards card for an e-raffle entry. Double e-raffle entries will be given with the use of the E-Plus Loyalty card. 

Every month, two condominium units from SMDC’s prime properties will be given away, strategically located in key areas across Metro Manila. These are Field Residences, M Place South Triangle, Light Residences, Sun Residences, Princeton Residences, Blue Residences, Grass Residences, Sea Residences and Jazz Residences and an 80-square meter penthouse at Mezza Residences.

Steven Tan, Senior Vice President for Operations of SM Supermalls said during the recent Shop and Win Promo launch last June 24, 2014 at the SMDC Grand Showroom, “SM will continue to provide not only affordable luxury and family fun mall experience but also a chance to experience the SMDC star-life condo living!”

The SM Supermalls Shop and Win Promo starts from June 22 up to November 22, 2014. Visit www.smshopandwin.com for more details. Like and follow SM Supermalls on facebook.com/smsupermalls and on Twitter and Instagram (@smsupermalls) for regular updates.

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Home Selling 101: Simple Strategies in Preparing Your Home for the Big Day

Coming up with several strategies (and fulfilling them) can make a world of difference when it comes to selling your property. You can get a higher price than just settling for an average rate. Aside from the price, property sellers should be also  keen as to what they can do to market their property better.

Your strategy for your property should include the following:

• Your ideal selling price
• The presentation of your home
• The marketing and advertising as recommended by your agent

Ultimately, the end goal of your strategy is for your property to sell maybe not now, but at least eventually. And the best way to do it? First, appeal to the emotion of your prospects.

• Strategy 1: Appeal to Buyer’s Emotion
• Buying a house is unlike any other decision people make in their lives. A house is where life happens. That said, establish a connection between your property and your prospects. When they decide to view your home, allow them to visualize your home as if they were living there already. Take out whatever personal items you have, such as picture frames and family heirlooms. Help prospects imagine the life they could have if they buy your property. For instance, if you know that the prospects who requested to view your home is expecting a child soon, prepare your home for viewing accordingly. Empty out a room and suggest that it could be made into a baby room. Be proud about the amount of space their child can roam around in when he reaches 4 or 5 years old. 
• Strategy 2: Have a great real estate photographer
• With thousands of ads in circulation, it is crucial that your property ad stands out from the pile. You can do so by hiring a photographer who can take great photos of your property. Let your hired photographer know the features of your home that are worth highlighting in the photographs. Don't make it hard for your prospects to see why your property is a good deal to consider. If you want inspiration, ask your agent about the kinds of photographs that worked in their past campaigns.
• Strategy 3: Stage your property!
• Complement the real estate photographer you will hire with a property stager. A stager can help you:
• Sell your property faster
• Sell your property for a higher value
• Decrease the time it takes for your property to be viewed by prospects
• A staged property looks better on ads and other promotional materials
• Attracts more prospects and offers

A few added tips:

1. Keep an open mind when hiring professionals to help you prepare your property since your style may not match with what your agent tells you or what your real estate photographer or stager suggests. 
2. Remember: their expertise and experience should be your assurance that their decisions will always be in your best interest.
3. If you are getting a property stager, get certified staging professionals only. Check with the ACSP for your peace of mind. 

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Tips When Leasing a Commercial Property

Commercial property leasing is similar to residential leasing since you need to inspect the property well. You need to draw the necessary paperwork and sign them. You need to check whether your finances are sufficient and if not, what are loaning options you can get from the bank. You also need to get property insurance for your peace of mind.

However, what separates commercial real estate from is the fact that you need to check whether the property you want to lease is located within the correct business zone and if it has proper planning and building permits for commercial operation. If you are looking for a commercial property for lease, zoning, planning and permits are 3 factors you need to look for. 

For instance, you are a business owner and you plan on leasing a space in a shopping center. As a potential tenant, what are examples of good questions you need to ask a landlord?

1. What kinds of businesses are leasing in the shopping center? Especially if it is a large shopping center, you need to know what your competitive advantage is should you decide to lease a space. If the shopping center houses many businesses similar to yours, then you have to think about your decision to lease well. You might not be able to survive the competition.
2. What are the facilities associated with the lease? Aside from having a clear identification of your leased area, ask if there are associated facilities that comes with the lease such as parking space, stock room use and storage.
3. What are the trading hours of the shopping center? It is logical to lease a space in a shopping centre that matches your operating hours. A 24-hour business is definitely not a match with a shopping centre that operates form 8 in the morning to 8 in the evening. Negotiate with the landlord in such instances.
4. Are there plans to renovate the shopping center soon? Any improvements in the facade or within the premises can impact your operations. As a potential tenant, you are entitled to know what plans they have as far as site development goes. 

It is equally important to know how the law can protect you whether you are a tenant or a landlord. Again, taking from the viewpoint of a business owner planning to lease a retail space. A landlord also has a right to take action if the tenant suddenly abandons the leased premises without notification and without paying rent. The retail lease signed by both parties is a legal document and is binding to all those who are signed in.

If you encounter issues and discrepancies in your lease, take a proactive step by addressing the issue on your own. Speak directly, politely and calmly with your landlord. Try to negotiate your terms and aim for a win-win outcome as much as possible. Request the help of your commercial real estate agent if ever you hired one to help you with issues on your lease. 

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Practical Points You Need to Consider When Buying an Existing Business for Sale

Practicality is integral when owning and managing a business. While it is essential to have business sense and entrepreneurial instincts up your sleeves, it would be such a waste to turn your entrepreneurial dreams into a mess if you limit yourself on those 2 points.

• Practical knowledge
• Investing on your hobbies is a good foundation if you want a successful business venture. If your hobbies include baking, quilting or even mixing bar drink concoctions, it is best to look for an existing business for sale that will allow you to hone these hobbies and make it part of your daily work. Find an existing business that will allow you to exercise your hobbies. It is a great business opportunity worth investing in. Aside from your hobbies, you should also invest in your skills. People management, interpersonal communication, salesmanship, advertising, marketing and strategic planning are examples of skills that can come in handy for an entrepreneur-to-be. Combining your hobbies with these coveted skills can make you a successful business owner. 
• Lifestyle changes
• Owning and managing a business will require you to make lifestyle changes and sacrifices. Especially if you are transitioning from being a regular employee to a full-time business owner, you need to dedicate time managing your enterprise, which means making significant sacrifices about your lifestyle. This could mean sacrificing your weekend and supposed non-working holidays for doing inventories, mixing lunches and dinners with business meetings, spending less time with friends and family members to be there at your store premises and waking up extra early to accommodate more responsibilities related to your business.
• Connections
• A successful business owner does not rely solely on one’s personal resources, but also in the wealth of connections he has. Connections are practical for an entrepreneur. It is the foundation of enduring and mutually-beneficial relationships. Having connections can get you to far places. You can have a myriad of contacts for suppliers, for your staffing needs and for your advertising and promotional requirements.  Aside from having a web of connections in the world of entrepreneurship, being well-connected to estate agents who are in the business of selling existing businesses can put you on the right track as well. 
• Location and other fixins
• Nothing can be a more practical consideration when factoring the location of the existing business you want to buy. You need to be on the business premises at all times and the location will obviously play a crucial factor. Aside from location, the inventory, the furniture and equipment, the staff, the existing customer base, the cash flow, financial records and plans of improvement should be included as part of the different practical points you need to consider whether it is a good idea to buy that existing business or not. 

If you are buying an existing business from an agent, get his counsel too, as you would not want to enter the state of business ownership without being well-advised. After all, it is probably the most monumental transaction you will make in your life.

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What You Need to Prepare for When Buying an Existing Business for Sale

Buying an existing business for sale has its own set of advantages and disadvantages. Jumping into the idea of buying an existing business may not be for everyone, but it pays to know within yourself if you are cut out for it or not by having preparations done.

Planning starts by knowing the industry the existing business you want to buy belongs in. For instance, the possible industries an existing business for sale may belong to can be the following:

• Building and Construction
• Defense
• Design
• Food and Beverage
• Information and Communication
• Manufacturing
• Professional Services
• Financial Services
• Retail
• Science, Technology and Innovation
• Transportation and Logistics

Once you categorize the business according to the industry it belongs to, get to know the specific information about that industry such as statistics, average performances, grants and other benchmarks that will let you know how much you can earn from buying an existing business or how much it will cost you for the business turnover.

If you are looking for existing businesses for sale, search according to industry so you don’t waste your time looking at industry listings that do not interest you at all.

Next, you have to know whether you can buy an existing business you want based on your current resources. If you are buying a business in a certain place and you need financing, research on banks in that place that can provide you with different loaning options that will complement best your current financial state. As you research on banks, it is also best to research on financial management such as tax basics and obligations to prepare you for what's ahead.

Think about whether buying an existing business for sale is a good move for you or not by listing the advantages and disadvantages of engaging in one. See the table below for a preliminary list.

Advantages	Disadvantages
The business is already in operation	You still need to learn the rhythm of the business; you cannot dictate how it should be operated
Your focus is continuing the business and not establishing it from the ground up	Need to replace old equipment, stocks and tools, which are expensive
Benefit from the goodwill associated with the business you are buying	The business may have a bad image, which can be challenging to change
You keep the customers, suppliers, staff, equipment, stocks and contacts	Customers, suppliers, staff and contacts may leave knowing that the owner is different

There are several questions too that you can ask yourself whether buying an existing business is right for you or not.

“Why do you want to buy an existing business?” “What are your motivations for doing so?” “What industry do you want to a buy a business in?” “Do you have the resources to buy one?”

It is also important to ask yourself why the business owner is selling his business. For a business buyer, such as yourself, you need to know whether there is a future in that business or not. There is no point investing in it if there are no returns that you can calculate and anticipate should it be turned over to you.

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