Know the Real Estate Law
Every part of real estate involves the law. There are many complicated legal pieces and many different people are involved in any real estate transaction.
First and foremost, the contract is most important part of buying and selling property. The primary purpose of a contract is to show mutual assent – the agreement by both parties to the exchange- in writing. Verbal agreements are not binding. To be valid a contract, it must include the following:

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Identification of the parties involved and the agreed upon price

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Specific “consideration” must be stated – something of value that’s being exchanged, usually money

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Signatures of each party involved
There are checks-and-balances to protect people in every situation and to protect the overall system. Appraisals are used to ensure that the property is worth what the lender and seller have purported. The appraisal prevents shady deals being stuck between investors and mortgage brokers. Commercial property has its own laws regarding use and sale. If there are tenants living in the property, there are specific laws to protect the landlord and tenants. Lenders are held to the law by how much they can loan, what documents and insurance are required, and even how they market their financing programs.

It’s important to know about tax law, or get advice from a professional, since it greatly impacts your success in real estate investing. Mistakes are costly, and by protecting yourself you can make decisions that will help your bottom line rather than take away your profits.

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When negotiating, arm yourself with information and knowledge and you will be well equipped to broker a fair deal. Find out as much as you can about real

estate law, the current market, and the other person’s situation. If you are buying the house find out why they are selling. Are they in foreclosure? Has something happened personally that makes them eager to get rid of the property at any reasonable price? Find out how long the place has been on the market, the number of other offers, if any, and at what amount. Is there outstanding debt on the home, and if so how much? Are they up-to-date with their payments?

Most sellers won’t just give out this information. Try to determine their status by giving up a bit of your own information first. Be careful about what you say because the seller might be able to use it when negotiating with you later.

When you are engaged with the other party in negotiating a contract, you’re trying to come to a mutual agreement on the price of the property and terms. Consider the area comps, true condition of the property from the inspection report, and seller’s situation. Before getting involved in any negotiation have your financing in place by being pre-approved. Before signing any written offers or contracts, seek legal counsel.

TIP: Make your offer in a non-round number. An offer of $233,200 vs. $230,000 might catch the seller off guard and leave them curious about what information you have that they don’t.

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Real estate markets go through cycles. Depending where in the cycle you are, you may find it easy, or difficult, to sell your investment property. If the market has hit a plateau or gone down, you might have to wait for buyers. This will tie up money and make you have to wait to make a profit, which can be frustrating.
There are a few strategies you can use to get yourself out of this type of situation.

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If it’s your primary residence and you can afford to do so, wait it out. The market typically changes every 1 to 5 years, and you can sell on the next upswing.

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Look at your property from the point-of-view of the buyer and make all necessary improvements. This will make your property more attractive to buyers. Think of what might be a deterrent and account for it. For example, if you live next to a loud highway, close the windows and play soft music to take away from this drawback.

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Stage the house. Set out a few bouquets of flowers, turn the lights on, put on some light background music, bake some fresh cookies for a homey smell and welcomed snacks for visitors. Put out a flyer on the property with plenty of attractive pictures, a reminder of the property highlights and your contact information. Make it so the buyer can see themselves living there. Buyers want a home they that makes them proud.

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Encourage your neighbors to help you improve the appearance of the neighborhood.

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Make sure you’ve priced the home correctly. Markets shift frequently, so you might not be priced competitively priced for the current market.

If you’ve tried these tips and the property has still not sold, try taking it off the market for awhile, and then list it again after re-checking your pricing. When houses sit on the market too long, potential buyers assume there must be something wrong. Extensively advertise your property. Making the extra effort to get your house sold will only help you make a profit.

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Like it or not, you usually need to spend time marketing your property in order for it to sell. What is marketing? Marketing is the creation of a strategy used to sell an item. Research, promotion, advertising and sales are all part of marketing.

Research your local market, and the prices at which comparables sell. You’ll need to have your finger on the pulse of the market during the entire sales process, which can take months. This is important because you may be in negotiations over a long period of time, and knowing the up-to-the-minute standing of your property will help you make educated negotiation decisions.

Advertising is needed to pull together a large group of interested buyers. By having many parties that want to purchase your property you may be able to create a bidding war which will drive up the sale price. How should you advertise? Use all of your advertising resources, like the newspaper, word-of-mouth, flyers, targeted mailings, special trade booklets, and the internet.

The internet is one of the most effective ways to market. There are many real estate investment websites that allow you to post your property with pictures. A comprehensive marketing campaign includes these online marketing tools. Find a site with good traffic and include flattering photos of the interior and exterior of your property. You can consider adding a virtual tour.

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Selling your home yourself, also called FSBO or For Sale by Owner, is a realistic option thanks to the internet. People sell their own property without an agent because they avoid costly real estate agent commissions. This commission is typically about 6% of the property sale price. Agents work hard for their commissions, and provide valuable insight into the market and sales process. They usually have valuable experience selling other properties in the area. If you sell it yourself, you stand to save thousands of dollars, but you are taking on all the work that the real estate agent does. Is selling your property FSBO right for you? Think about these points when making this decision:

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Pricing it right the first time. To price your property correctly, you need to know the market. A poor pricing decision can cost you – under pricing will result in lost potential earnings, and over pricing will cause the home to sit on the market while you are paying expensive carrying costs. Home prices vary depending on the square footage, lot size, age, and other factors. Use neighborhood comparables to judge the most appropriate list price.

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Get the word out. If you sell FSBO, you won’t have access to the largest, most valuable marketing tool, the MLS. But thanks to the internet, the MLS isn’t the only way to market your home. Put out signs, list it on websites, and place ads in the newspaper to let buyers know about your house.

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Can you negotiate successfully? Some people are born with this skill, and other have to work at it. If you are not a seasoned real estate negotiator, research the subject and learn enough about it to avoid losing money.

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Be a fast learner. You’ll need to do what an agent does. Learn about the sales process, legal issues, contracts, closing process, insurance, and many other aspects of the selling real estate.

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Patience is important. Selling FSBO is a lot of work and small details, and you are in charge of managing them in order to get the job done.

Making the decision to do it yourself can be rewarding and save a lot of money, but a half-hearted attempted will most likely be unsuccessful.

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