As a Chicago Realtor who pays my buyer clients a generous portion on my commission, I often receive questions about the legality of such providing such rebates. First of all, as a law-abiding citizen, I would never even consider doing something outside of the law especially where my livelihood is concerned. Second, with very little Google research you will find that real estate rebates are legal in many states, including Illinois.

That doesn’t mean that anti-consumer forces have not been at work here in Illinois. In 2008, legislators in Springfield attempted to pass HB 4313 which would have amended the Real Estate Act of 2000 to outlaw real estate cash back rebates. I never quite understood why any lawmaker would want to pass such an anti-competitive bill that would certainly cost their constituents more in additional real estate commissions. Fortunately for consumers, the USDOJ sent a letter to the Illinois General Assembly supporting cash back rebates and the anti-competitive nature of HB 4313. The billed died in session on January 13, 2009 preserving the rights of taxpayers and maintaining the current brokerage competitive environment.

The U.S. Department of Justice Antitrust Division has prepared an excellent resource concerning Competition and Real Estate. This website contains useful information about broker laws and practices in all 50 states. Upon reviewing this data, you will find that there are currently 11 states that have enacted anti-consumer real estate brokerage laws including making it illegal for brokers to pay cash back rebates to their clients. The USDOJ themselves have deemed these types of laws as “barriers to a more competitive real estate brokerage market”.

Closing Cash Realty provides two programs in which clients can receive cash back rebates when buying Chicago properties: our Buyer Rebate Plan and our Agent Referral Plan:

• Buyer Rebate Plan: We will pay you a rebate of up to 50% of our commission when you buy a qualifying home and use Closing Cash Realty as your Realtor®. You can use your cash rebate for closing costs, to purchase furniture, buy a new pet, or whatever you choose. We provide our buyer clients with this rebate because we know that you’re going to perform most of your search on the Internet anyway, so why shouldn’t you share in the commission?
• Agent Referral Plan: Are you outside of the Chicago metro area but still desire to receive cash at closing when purchasing Illinois real estate? By using our Agent Referral Plan, we’ll pay you 33% of our referral fee after closing. Depending on the purchase of your new home or the selling price of your existing home, this can mean several hundred dollars of cash in your pocket.

Article Source: http://EzineArticles.com/?expert=Louis_Gomez

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Technorati Tags: 303 Dogwood, 62208, Fairview Heights, Home, Illinois

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What can you do if you have to sell your home, want to save your credit, but still need to move to a new city or a new home without selling and loosing tens of thousands of dollars? It’s something I have called the Real Estate Triple Play. What is the Real Estate Triple Play? It’s setup in the following way:

1)Offer your home for sale like you currently have it listed
2)Offer your home for lease option sale
3)offer your home for rent

Depending on your local MLS system, this will effectively double or triple the exposure of your home in your marketplace. At a minimum, your home will now be marketed as at least for rent and for sale, both of which will be pushed out to Realtor.com and other real estate related websites. Look at www.MyIndianapolisHome.com for more information on my marketplace.

How does this benefit you other then the added exposure?

If you have means to support it, rent out your home for 2-3 years until the market recovers. I have had people call me that have moved out of a city and their house has been sitting empty for 12 months! Imagine what $$$ would be in their pocket if they had decided to put their home up for lease or lease option? If their payment is $1,500/month, that would have been $18,000 more money in their pocket! Also, let’s say you rent your home for these 2-3 years until the real estate market starts to recover. When the market recovers, you will be able to sell your home for the price you originally may have wanted to sell it at. Let’s say you have a $250,000 home that you have dropped the price on by $30k and it’s still not selling! So, On top of the $18k in your pocket after one year, you then sell your home in 3 years for the original selling price, that is another $30k in your pocket. So, after renting your home for just one year and selling in 3 years, you have put $48k in your pocket, all by renting your home instead of selling into a down market. Another option would be lease option the home, something I will write about in another article.

What are some keys to making this work right?

1)You need to have a professional property management company in place to manage this property for you. If you do not have experience renting out your home, you must do this or you will more than likely get burned trying to manage it yourself. Most home owners do not have the experience or knowledge to know what to look for in a tenant, how to run credit, verify employment, W2’s, etc. How many of you want to take a call at 2am to fix a frozen water pipe? Oh, and you live 5 hours away? This is where a professional property management company comes into play.

2)You should have at least 3-6 months of reserves sitting in the bank in case something happens with a tenant, as well as the time it takes to find a tenant. Typically, at least in my marketplace, we are getting homes leased within 45 days. Different areas of the country will be different, and it will also depend on how aggressively marketed your home is.

What additional benefits do you receive for renting your home out right now?

1) depreciation expense: Say your home is worth $250k. The tax man lets you write off this over a 27.5 year period. So, each year, you get to write off approximately $9,000/year. If you are in the 33% tax bracket, you just put $3,000 in your pocket.

2) principle pay down: You pay down principle each time you make a payment. Lets say you are paying down the principle by $125 for each payment. After one year, you would have paid down $1,500. You don’t see this money now, but when you sell it, you will. Do this for 3 years, and that’s another $4,500 in your pocket.

Put more money in your pocket now and sell your home later for a profit!

Craig Bartels

http://www.articlesbase.com/real-estate-articles/creative-ways-to-bring-in-money-if-your-home-is-not-selling-752005.html

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Selling a home as a distress sale involves the following:

. Cost savings
. Price reductions
. Low down payments
. Low purchase price
. Less competition
. Better terms

The following ways would help you sell your home fast, at a distress sale:

Online selling: The Internet plays a significant role in selling homes via a distress sale. It helps sellers, buyers as well as the real estate agents, as it offers them with a wide range of clientele. It also provides them with specifications related to size, location, number of bedrooms, bathrooms, kitchen, study-rooms and other significant information, required by prospective buyers. Apart from this, online selling also provides additional information related to a house at a distress sale. Most of the time the prices are also mentioned and that helps both, sellers as well as buyers, to avoid the stressful task of enquiring before quoting a price. They even mention the address, contact numbers as well as the most suitable visiting hours, to add to the comfort of the buyers and sell the house fast as possible.

Multiple Listing Services: The multiple listing services, commonly known as MLS is a database that allows the real estate brokers to represent sellers under a listing contract. Multiple listing services operate is easily accessible by buyers and real estate agents. It basically ensures effective dissemination of information. This helpful to a real estate agent, to search the MLS system and retrieve information about the other homes for sale in the specified area.

Selling your house to a real estate investor or investment company: You could also sell your house to a real estate investor or investment company, as it involves no contingencies for financing the sale of your house. You do not need to invest anything in the repairs of your home. Moreover, you need not wait for a month to receive the money from the buyer.

Upload details of your home on the Internet: In order to sell your home fast at a distress sale, you should upload the picture of your home on the Internet, specifying the details of your house. This enables the property to instantly attract the attention of potential buyers. Try to place photographs that would define the exterior as well as the interior of your house at its best. If possible get it done by a professional photographer.

Publish advertisements in newspapers: To sell your house fast at a distress sale, you should publish advertisements in the daily local newspapers. You should highlight the necessary details concerning the house. You should also mention your address and contact number, to add to the convenience of prospective buyers as well as yours.

Kris Koonar

http://www.articlesbase.com/non-fiction-articles/selling-your-home-fast-as-a-distress-sale-86879.html

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Recent research shows that the average upscale from a two to a three bedroom property now stands at £27,100. Those looking to upscale from a three to a four bedroom house face the biggest hike in price at £64,032.

As a result of these differences in price, coupled with the fees involved in moving home, more and more people are looking to use homeowner loans to improve & extend their current home to take the effect of upsizing.

When buying a property, many property developers will look at the potential to improve, modify and extend in order to increase the value. This is also a technique now used by many buyers looking at the potential for home improvement.

It can be difficult enough to buy property, with many considerations that must be taken into account. There are many issues that can reduce property value let alone increase it; however the type of property you buy can dictate your ability to improve it or even make any additions at all.

The type of property that best suits improvement will depend on the nature of work you would like to perform. For example, if you are planning to convert a loft in an extra room then it is important that there is enough room to stand up in.

Sometimes the easiest and cheapest way to increase your home’s value is to invest in an improving, up and coming area using a homeowner loan. Signs that an area’s property market is set to improve can be relatively easy to find. These signs may include looking at particular areas or streets that are already popular with buyers. It is often the case that as particular streets or areas increase in value, buyers are priced out of their preferred location, so move as near to it as they can afford.

The important thing to remember is that there is no guarantee that any improvements made on your property will result in an increase in value. Buyers in different locations will be after different things. It is an important consideration to ensure that you are offering potential buyers what they really want. For example a conservatory may be appealing to some but not to others

A good yardstick is often to consult the local estate agents who much a property would be worth subject to improvements being carried out, such as a new kitchen or a conservatory.

Often it’s the smaller, cheaper improvements that can generally offer higher returns than the more expensive ones. The larger and more expensive jobs such as converting your loft or basement may seem appealing to buyers, however they are often unwilling to pay a premium that meets the expense and effort of carrying it out.

The cost of any home improvement and the likely return will vary hugely on the type of property and the area that it’s located. Very few developments come in under budget with the majority coming in over budget. Quote received from builders can often be on the optimistic side. It is therefore prudent to over budget for works

Below is a rough guide of the costs versus the benefits:

Loft conversions:
Cost: £15,000 to £35,000
Potential value increase: £20,000
Difference: – £5,000
A loft conversion must be done properly in order to increase the value of your home. A very important consideration is that it cannot be classed as a loft conversion unless it meets specific building & planning regulations. Your local council will be able to give advice on what those rules are.

Basement conversion:
Cost: £100,000
Potential value increase: £20,000 to £25,000
Difference: – £77,500
A basement conversion is among the most expensive of home improvements. Recouping the initial outlay when selling the property is very difficult let alone making a profit. In some case it can however be very beneficial when selling the property if used as an extra bedroom.

Extension:
Cost: £30,000 to £50,000
Potential value increase: £20,000 to £25,000
Difference: – £17,500
An extension is fast becoming a popular alternative to moving home in order to upsize. You will usually have to sacrifice garden space which can of course have a negative impact on your home’s value. Before commencing with any planned work it is important to consult your local council as there may be restrictions on the height and proximity to boundary lines of any addition.

Off-Road Parking:
Cost: £1,000
Potential value increase: £5,000
Difference: + £4,000
Again, this work requires consultation with the local authority as the job may involve altering the height of the curb. This can prove to be one of the cheapest and most effective improvements that can be carried out.

Conservatory:
Cost: £10,000 to £15,000
Potential value increase: £12,000 to £19,000
Difference: £3,000

Conservatories may not seem quite as attractive in today’s market as they once would have done to the potential buyer. Adding a conservatory is an expensive exercise and would perhaps be best considered for personal use rather than as a tool to increase the value of the property.

Chris Copper Jnr

http://www.articlesbase.com/finance-articles/homeowner-loans-to-add-value-to-your-property-95031.html

Technorati Tags: buying a property, homeowner loans, property ladder

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Always ask them for a quote which they are obliged to give you without you being tied in to a contract. Prior to that you need to know what you want or need when you are moving with the investment.

No matter whether the market is a good one or a bad one, there are always different moves that you can make in order to get the right person moved in to your property. And if you buy a property always remember the number 1 rule: location, location, location.

One of the several ways that you can move into a real estate investment is with Leasing. If you are having difficulty selling your home or property, then you can consider leasing as an option instead of selling it. If you decide to use the lease option for the property, then it means that you will become the landlord for a period of at least one year.

The tenant will have a contract that is signed for this amount of time that says to take care of the property and pay rent. After the time period is up, the tenant will have the option of buying the property from you.

If you are considering buying a home, this is a good first step to get into. You will have lower payments, will be able to build your credit, and will have the option of trying out the property before you buy it.

If you are selling the property, it can also be beneficial, as it allows you to demand a higher price and move into a better market when it is time to sell. Usually, by the time you are ready to sell, you will be able to offer a price that is ten to twenty percent higher than it would have been a year before.

If the market is not a sellers market and you find it hard to sell your home and you have not found any interest regarding your property, then leasing is a second option that you can consider. Leasing the property gives you the ability to profit from both sides.

Leokadia Angela

http://www.articlesbase.com/non-fiction-articles/should-you-buy-or-should-you-lease-your-property-108658.html

Technorati Tags: buy your property, lease your property

1. Buy, fix and flip

The flipping strategy can be started on several common forms. It involves buying a property in the real estate market, then fixing the price for the property, and then again selling the worked property in the retail market for a consideration. This flipping strategy will work in the market very well. The deal finds to be good, depending on the market. The risk of this strategy is fixing and flip is either paying too much or underestimating repairs. Conservative in the fixed up cost and length of time may take to resell. Also consider the cost paid to the real estate agent for the services rendered by him.

2. Buy, refinance and lease option

This is the second strategy where instead of selling the property on cash, it will be sold for terms. When rehab has been completed, refinance the property for the new appraised value. If calculation is done correctly, then you have little or no money in the deal. If you sell the property on lease, sell with the option to buy. The rent payment of your tenant should cover with mortgage payment. When the tenant exercises his option, you reap the larger profit, since you don’t have to pay broker fee. If the tenant exercises his option, you benefit lower capital gain tax rate.

3. Buy and flip

Do not improvise work. Selling the property is the light fixer upper. If the local market is hot, then the property should be sold in the poor condition in the market. This case is especially when the houses is in transitioning neighborhoods. Ensure that the property you acquire is cheap enough and you can sell the property below the market quickly and at profitability.

4. Wholesale

The fix and flip strategy is very popular in the market. It means that there are lot of investor is looking for rehabs. The property can be purchased cheaply and you can sell to another investor without performing any work. You do not have to make any work has the rehabber, but you can realize the profit quickly.

5. Pre construction

If the real estate market is very hot, then the prices will be appreciating very month. If the time you are investing is right, then you can create the contract in the preconstruction house or condominium, and then flip the property to someone else when the development is complete. If the development is complete, you can make more in a year. You could end up the contract by losing money in the local economy and also end up with a worthless condo that you can’t sell for more than you paid.

6. Scouting

A scout is the information gatherer and he is not a technically property flipper. He finds potential deals and sells the information to the other investor. Many people started working as a scout for other investors because it does not take any cash or prior knowledge to look the distressed property. The scout will find the property which are for sale and gather necessary information about the property and provides necessary information to the investor for a fee. The fee charges will be varying depending on the price of the property and profit potential.

7. Illegal flipping

Illegal strategy is also done in flipping and this approach will be avoided since it is illegal. They do careless renovation to the property and sell the property to the unsophisticated buyer at the inflated prices. Sometimes the investor, appraiser and mortgage broker will combine the fraudulent loan documents and false appraisal. At the end the buyer is to pay too much for the house without affording loan amount.

Ron Victor

http://www.articlesbase.com/finance-articles/flipping-the-real-estate-property-98352.html

Technorati Tags: buying a property, flipping, real estate property