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Internet Payment Gateways - Should You Make Your Own In-house

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An internet payment gateway is crucial for any online merchant account to facilitate selling goods and accepting payment for the same. This is known as e-commerce.

This process is like any sale made in a physical store, where someone buys a product and passes his or her card to the check out clerk for payment. Only with an Internet payment gateway, the customer does not have to pass his card over but just enter the card data into a secure online form.

This data will include the card number, name of the holder and the CVV number on the rear of the card. The payment will be debited from the card and in a matter of days, will be credited to the merchant’s bank account.

From a security aspect, online payment gateways are quite secure, though the customer should be certain that he or she is using a reputed site. Look for the “s” after the “http” in the URL of the site.

This is a start but not a guarantee to prevent the site from using your card information for illicit purposes. So does it make a difference if you make your own Internet payment gateway in-house? Perhaps yes.

This will give the net savvy customer a feel that you have taken the trouble of developing your own secure software instead of just getting one off the net. It will also merge with your site design instead of displaying other third party ads and logos on your site.

It may cost you a little more, but you will be offering your online customers a sense of security and will have full control of the software. So you will not have to wait for the third party to wake up to rectify any fault in the online processing solution they have set up for you.

Title: 

Marketing Materials You Must Have to Sell Your Home

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407

Summary:

People have the attention span of a gnat, a fact that is true for homebuyers as well. To overcome this, you must have marketing materials to give them when they view your home.

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Article Body:

People have the attention span of a gnat, a fact that is true for homebuyers as well. To overcome this, you must have marketing materials to give them when they view your home. 

Marketing Materials You Must Have to Sell Your Home

Buying a property involves a lot of looking, which can be tiring and confusing. It is the rare day indeed when a homebuyer snatches up the first property they see. Instead, they tend to look at dozens or more if for no other reason than to assure themselves that they have not missed out on that one, golden opportunity. 

This Easter egg hunt mentality can result in buyers passing by a home that is actually perfect for their needs. After three or four weeks, they will start thinking about the home and realize as much. As a seller of the home in question, this does not really help you unless they can recall the specifics of the location or contact information for your property, a dubious assumption.

One of the best ways to circumvent this problem is to make sure every potential buyer leaves your property with marketing materials in hand. In the real estate business, said marketing materials usually consist of either a brochure, a folder of information or some type of flyer. Regardless of the specific format, the important thing is to make sure they have something in hand. 

Your marketing materials absolutely must contain some basic items. First and foremost, you need to include pictures of your property. Images are the key to memory when it comes to real estate. A buyer may forget about the home, but see the flier under a pile of paperwork a few weeks later and realize it was the best listing of the bunch. Whatever you do, include photographs. 

From a practical side, you need to also include some basic information. This includes information such as the address, listed price, number of rooms and bathrooms, special features, square footage, and information on the positive aspects of the area if relevant. 

Ironically, many people fail to include contact information. Do not be one of them! Include a phone number and email address if you can. 

Homebuyers tend to get overwhelmed when it comes to the sheer volume of properties they look at. Make sure to stick your marketing materials in their hands and they may just realize what a prize your property is compared to other listings.

Title: 

Marketing A Home

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322

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The single most important aspect of a home sale is the proper marketing of the home. In years past this was largely accomplished by putting a "for sale" sign in the front yard and hoping that some people too notice. Marketing has come a long way in the past few years and has developed into an entity of its own. Your home now has the ability of being marketed to a worldwide audience and can attract more viewers then ever, if you have the right agent.

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Article Body:

The single most important aspect of a home sale is the proper marketing of the home. In years past this was largely accomplished by putting a "for sale" sign in the front yard and hoping that some people too notice. Marketing has come a long way in the past few years and has developed into an entity of its own. Your home now has the ability of being marketed to a worldwide audience and can attract more viewers then ever, if you have the right agent. There are a number of tools that the real estate agent can employ to ensure the best possible coverage for your home. After all, there is a lot of competition out there.

The primary weapon in the agent's arsenal is the website. Internet marketing has taken over the real estate industry and agents who aren't web savvy are being left behind. The web is likely the first place your property will be seen by almost every buyer that comes to view it. An established and cutting edge web presence has become an absolute necessity for the realtor who wants to be at the top of the game. This is not to say that traditional marketing is not a necessity, it is. 

Once your home has been established on the area's MLS listing service, the agent can then set about marketing your home via other media. This includes the local newspapers, flyers and sales & marketing packages. Open houses can also be used to show off your property. This is where the sales packages come in handy. Open houses not only show your home off to prospective buyers, but more importantly, they show your home off to other realtors who have a wider array of buyers. These are all important factors in the greater plan for the marketing of a home. Be sure that you find a realtor who will give your home the exposure that it deserves!

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Making the Most of The Outdoors: Decks

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712

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Title: 

Making Money In Real Estate - 10 Basic Ways

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509

Summary:

What are the basic ways of making money in real estate? Buying low, selling high, and eight more are covered here.

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Article Body:

Making money in real estate is an endless topic that includes all the various types of real estate investments. There is land, apartment buildings, homes, commercial buildings and more. Whatever the type however, you'll make your profits in some of the basic ways listed below. Use this list to get yourself thinking of the possibilities.

 1. Appreciation. Making money in real estate can be as simple as holding on and waiting. To really get the most appreciation in value, however, you should buy in an area where demand is growing faster than the supply.

 2. Depreciation. Remember that after all the tax law changes, you still get to declare a loss for depreciation that doesn't really exist. That can save you a lot at tax time, meaning more after-tax profit. To maximize this, buy property that has its value primarily in the buildings,  because you can't depreciate the value of land.

 3. Loan pay-down. You gain equity with every payment you make. Get the lowest interest rate you can and more of each payment will go towards the principal. 

 4. Cash flow. When you buy income property the right way, you not only have your tenants paying all the costs and paying down the mortgage loan, but you also have positive cash flow.

 5. Buy low. When you buy below market you get instant equity that will be converted into a profit when you sell. Offer a reason for the seller to sell low: fast closing, cash, assume some debts or liabilities, etc. Or just make a low offer. The seller may have his own reasons to sell it cheap.

 

 6. Sell high. Clean it up nice, make it easy to buy, and find the right buyer to get top dollar. The next four on the list cover ways to create value, so you'll get more when you sell. 

 7. Offer financing. You can often get substantially more for a property if you offer financing. This is especially true if you let someone buy it with little money down. You can also get good interest on the loan.

 8. Change use. If there is a higher use for the property, you can convert it to make it worth more to the next owner. Sometimes this means making condos into apartments, or apartments into condos. Maybe converting a home into office space will get the biggest return.

 9. Improve and repair. Repairing anything that needs it is obvious, but you need to look creatively and carefully to find improvements to make. Concentrate only on those that will raise the value several times more than what they cost you. 

 10. Sell in parts. In real estate, the parts are often worth more than the whole. For example, splitting off an extra lot to sell for $30,000 will rarely decrease the value of a home by that much, so you'll make more money in the end.

Making money in real estate can be a wonderfully creative process. Just look at the sources of profits listed here, and think of how you can use a few of them on your next real estate investment.

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Make Money As A Slumlord

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377

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The best profits are often made at the extremes. If your aren't going to invest in million-dollar condos, why not consider the other extreme - be a slumlord.

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Be a slumlord? Okay, I got your attention, now the truth. I really don't recommend that anyone endanger their renters with unsafe housing. Much of what people call slum-lording though, is simply providing reasonable housing for those with low incomes. It is of benefit to the renter AND the landlord.

Why Do People Rent Dumps?

People rent not-so-nice places because they can afford to. A house that needs paint, has old rusty hinges on the doors, and a dirt driveway - this is a house that cost less to buy, and therefore can be rented for less. Anything major that the landlord does to improve it will result in higher rents, and possibly drive the renter away.

In fact, this often happens. A few years ago my own town enacted its first rental regulations. The fifteen pages of new rules included many non-safety-related requirements, like a minimum of windows, to allow natural lighting, bedroom square-footage requirements, and no peeling paint.

These things are done in the name of low income renters, and yet the result is always the same: higher rent. With that and the regulations against mobiles homes, low income families are moving further away from town and jobs. I mention all this to let you know that if you offer an ugly, but safe and affordable rental, you are providing a real service.

Why Invest In Low Income Housing?

If a nice two bedroom house in a small town costs $130,000 and rents for $800, an old mobile home on a lot will probably cost $45,000 and rent for $500. Notice that the house costs almost three times as much, but the rent you get isn't even doubled. This means the mobile gives you MORE CASH FLOW. That is why old houses and mobile homes (on land) are such good investments. 

It's important to note that you'll have more risk and management problems with low income housing. Repairs come up more often, and rent will be late more often, on average. This is why you deserve a higher rate of return. Otherwise, who would want to provide low-cost rentals?

Treat your renters well, and make your places safe. Do these things, and you can enjoy a good return on your investment - even if some want to call you a slumlord.

Title: 

No Money Down - Really?

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778

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Can you really buy real estate with no money down? Yes, you can, if you understand what the seller wants out of the deal, and you know these simple techniques.

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Article Body:

No money down may mean no down payment. That's what most people think it means. A seller actually agreeing to get nothing at closing is rare, though. Most sellers need something as a down payment. They want a little bit to show for the sale, and may even need it just to cover their closing costs, like paying the real estate agent.

Also, most banks won't finance the entire purchase price of a property. This is especially true of real estate that is purchased as an investment. The bank won't loan you 100%, and the seller needs something as a down payment, so how do you buy real estate with no money down?

By understanding what the parties involved really want, and giving it to them. The bank wants a secure investment, meaning the property is worth more than what they are loaning on it. The seller may want enough money to move, or may want a to finance the property to get a good return on his equity. He may just want all of his money out of it now. The point, then, is to find a way to give him (and/or the bank) what he wants, while putting none of your own money into the deal.

You see, no money down just means that the down payment won't come from your own money. Where will you get it? Anywhere you can. Time to get creative.

A No Money Down Example

Recently, an investor told me that he had found a fixer upper, but couldn't arrange financing. What did he do? He assigned the contract to another investor who was at our real estate club meeting, for $6,000. All he ever had into the deal was a $500 "good faith" deposit, and this could have been from a cash advance on a credit card. The other investor saw the potential to make $20,000 on the property, so he was happy to pay $6,000 to take this man's "position." This is called "flipping." 

The new investor had the ability to finance the deal, so the seller got his cash. The bank had a good loan, especially considering that the home value would be improved with the rehabilitation.. The key here was that the first investor knew how to find a good deal, and he included in his offer the right to assign the contract to another investor (or take on a partner) if he wanted to.

More No Money Down Ideas

Suppose you wanted to complete the purchase, renovation and sale with zero down, and none of your own money invested? One way would be to find a partner. We were recently talking to an investor who wants to use our money to complete the profitable renovation of a property. We would like a share of those profits. If a deal is good, there are people who want to bring their money into it.

Here is another example. Suppose you find an owner who is tired of being a landlord. He wants $80,000 for his run-down house. With $6,000 worth of clean-up and repair it could sell for $116,000. Your total costs (including closing and holding costs) would be around $11,000, leaving $25,000 potential profit in the deal. That sounds good, but what can you do with no money?

You could offer the seller more than he wants. For example, offer $85,000, using a $500 credit card cash advance for a good faith deposit. Your offer, however, is for $5,000 down, with no monthly payments, and the entire remaining balance to be paid within one year, with 7% interest. Why should he agree?

As you would carefully explain, he'll get more than he wanted - and a few thousand in interest too. His collateral will be safe, since unlike his renters who ran the place down, you'll be pouring money into fixing it up. He'll have a first mortgage on a home that will soon be worth much more than what he is owed.

Okay, so he agrees (if not, find another seller and another until one does agree). Now how do you find the $5,000 for the down payment, plus the $11,000 for repairs and holding costs? Find an investor who has about $16,000 to put into the deal. No money down for you, and half the profits for him. Complete the house quickly and on budget, and you'll get over $10,000 profit each.

Notice that the seller gets more than he is asking, and the other investor gets a great return on his investment. You make more than $10,000 without investing a penny. Find out what everyone wants and create a way for them to get it. This is the surest way to make a deal work with no money down.

Options for Improvement with Refinancing

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You have the house, you have the loan, and you have everything set in place.  You know that it feels great to have a place to call home.  However, there is something that is not fitting quite right.  Maybe your home feels like it needs more investment or maybe you want to find a different way to approach your loan.  If you are looking at options for improvement, refinancing is the way to turn.  

Refinancing is a step that you can take if you want to put in a little extra investment to your home.  Whether it is to feel more comfortable or to get more out of your investment when you sell, refinancing is a great option for building up your home investment.  Not only will it be good for you to invest more and get more in return, but it can also help you to build credit from the investment.  

Usually, refinancing will begin with you applying for a second loan or mortgage.  Home equity loans are one way to help with refinancing your home.  There are also lines of credit and other considerations that you can make in order to get some extra money into your home.  The advantage of this is that when you go to sell your home, you will be able to value the price higher than it would have been with just the regular loan.  

If you are deciding on whether to refinance your home, you will want to consider several parts of the refinancing.  First, you will want to make sure that you are not taking your home out of the market.  You can determine this by researching to see what the market value of the area is and how this relates to your home.  If you are using a refinancing loan in order to consolidate bills or improve your credit, make sure that your finances are stable enough to allow you to pay off the refinancing loan.  

If you begin to refinance at the right time and with the right idea in mind, you can benefit off of a second mortgage and with some home improvement.  Polishing the floors and removing the old to put in the new can be beneficial not only for your check book, but also for your future.  

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The Timeshare Secondary Marketplace: The Rest of the Story

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2185

Summary:

Aside from the obvious, there are two major differences between traditional real estate ownership and resort vacation ownership. First, traditional real estate is a necessity item and vacation ownership is a luxury item. Second, in traditional real estate, the consumer seeks the product, and in timesharing, the consumer is enticed to the product. These two facts alone allude to the difficulties of selling timeshares.

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Market Differences

Aside from the obvious, there are two major differences between traditional real estate ownership and resort vacation ownership. First, traditional real estate is a necessity item and vacation ownership is a luxury item. Second, in traditional real estate, the consumer seeks the product, and in timesharing, the consumer is enticed to the product. These two facts alone allude to the difficulties of selling timeshares.

In traditional real estate, there is both a primary market where the residential or commercial developer takes the risk of marketing and selling; and a secondary market where the individual owner bears the burden of marketing and selling. Owners in the secondary market often choose a real estate professional for assistance. These two markets comprise the total traditional real estate marketplace. Both are clearly understood, accepted within the industry and readily accessible to the consumer.

Traditional real estate is usually a local (neighborhood) market and has a distinct marketing advantage over the timeshare market. According to the National Association of REALTORSÆ, the most effective medium for selling homes is an inexpensive yard sign on the seller's property. This is not an option when selling timeshares because the resorts do not allow it. Typically, purchasers of residential real estate preview the property. This option is not always available to timeshare purchasers because many resorts refuse to cooperate with reselling owners and brokers. Due to the discretionary nature of vacation ownership, leisure is the motivation not necessity, as with traditional real estate.

When qualifying traditional real estate buyers, the buyers generally want a certain subdivision or a certain part of town. Timeshare buyers usually have several generic vacation choices such as snow skiing in Colorado, the beach in Cancun, or a golf course at Hilton Head. This is a much harder sale to consummate... and for a lot less money.

In traditional real estate, the two biggest complaints by sellers are (1) the price was too low and (2) it took too long to resell. Timeshare is no different.

Resale Difficulties

There is a growing demand for a viable timeshare secondary market. Lifestyles change, children grow up, people divorce, encounter financial hardships or just get tired of their timeshare and want to sell.

Today, the timeshare industry is older and larger, with more timeshare owners. Even though the market has matured, many resort developers choose to ignore and leave to chance the resale difficulties faced by their owners.

If the owner's resort offers no resale program, there are very few options remaining for the owner to resell the property. As in traditional real estate, timeshare buyers often presume that they will have at their disposal a secondary marketplace.

More than half of U.S. timeshare resorts have no on-site resale program. The same resorts offer no resale program whatsoever and many advise against the use of other programs.

From the 1970's (when the timesharing industry was still young) through today, owners find themselves in the predicament of wanting to sell their units but having few choices to do so. Many timeshare resorts are simply not equipped to handle resale services for their owners; and neighborhood real estate offices have neither the expertise nor the desire to enter this specialized field of real estate. In the beginning, the only option available to owners was to sell it by advertising it themselves or give it away to a friend or relative.

It is literally cost prohibitive for the consumer to advertise timeshare property in the manner necessary to get crucial national and international media exposure. The cost to advertise in USA Today with a minimum four-line, four-day classified ad is $1,136.

Credible Resale Services

In many instances, without timeshare resale specialists supporting the secondary market where individual owners can operate, resort foreclosure can be the end result. Projects must rely upon the owners paying maintenance fees to support its operations once the developer sells out the resort. A strong resale market is essential to the timesharing community. In order for the industry to thrive, timeshare owners must have access to credible outlets through which they can resell their property.

The ability to resell is critical for the industry to prosper. Today, there are several suitable timeshare resale assistance options available to timeshare owners.

Some of the more pro-active developers and Home Owners' Associations (HOA's) have resale programs available on site to accommodate their owners who want to sell. However, only about 40% of resorts offer on-site resale services. Most on-site resale service programs are not independent of the resort. The resort subsidizes such programs. The HOA on-site reseller may obtain free inventory to sell (repossessions and foreclosures) -- thereby pocketing not simply a commission but the entire sales price. These on-site resellers receive the marketing advantage of access to renters, exchangers and those owners who desire to sell. Many on-site resellers require that the HOA provide office space, utilities and a high visibility location. Regrettably, this ìmarketing advantageî is actually paid for by the individual owners' maintenance fees.

It creates a conflict of interest when a timeshare broker sells on his own behalf and at the same time, takes listings from owners.

A few real estate offices located near some of the timeshare resorts also offer resale services. These offices generate their income from the traffic going to and from the resort.

These two programs (on-site at the resort or in close proximity thereto) sometimes work but do not satisfy the demand. They can be credible, and they may produce some results. Sadly, they are limited to only certain resorts and certain locations. With the majority of U.S. timeshare resorts offering no on?site resale program, there is a huge unserved market.

Timeshare Reselling: Itís A Global Market

The international broker specializing in timeshare offers timeshare consumers resale assistance that corresponds to the global nature of the business, regardless of the location of the resort, the buyer or the seller.

To further illustrate the widespread geographical reach of timeshare, multi-state and international exchange programs are considered to be the number one motivating factor in new sales purchases. Following is a typical resale scenario: A resident from Canada buys a Florida timeshare property from a resident of California who also owns another timeshare located in Colorado that he purchased from a resident of New Hampshire. This sale scenario does not even address the residences of the other ten or twenty potential buyers that were solicited to effect this one sale.

The above example shows the interstate nature of the industry and the need for brokers operating on a national and international plane.

High Resale Marketing Costs

High marketing cost is one of the underlying problems associated with both timeshare resales and new sales. It is estimated that the marketing costs alone are over 40% of the new sales price paid by the consumer. Individual timeshare owners and the general public have a negative perception of these inordinately high marketing costs. This is one of the reasons developers elect not to become involved with resales. Timeshare buyers are not aware that the marketing costs are so high ñ until they try to resell their units. The developer's 40-50% marketing costs on a $10,000 new timeshare sale often exceed the resale price.

The resale dilemma is further magnified by a sales technique commonly used by resort developers at the new sales table. Following is an example of this technique, referred to as ìthe drop.î The salesperson initially presents the property for $15,000. To increase the urgency for the consumer to buy, a manager is brought in to offer it for $10,000 ñ today only. This common practice increases the buyer's motivation to purchase because it infers that the property is worth much more than the buyer is paying. This inflated perceived value of the timeshare, created by the developer's sales team, is a tremendous problem throughout the industry.

The reality is that the owner's false perception of the high market value of his property coupled with non-recoverable high marketing costs (which results in a lower resale price) has produced an almost untenable position for the timeshare owner wanting or needing to sell. The consequences of this reality are (a) the developer does not want to confront the owner with a resale program because the owner has become aware of the original distortion, and (b) without developer support or broker pooling of ownersí funds through registration fees, the traditional commission-only program does not work for the independent, non-subsidized secondary market.

Unwanted Competition

Once an owner makes the decision to sell, the owner actually becomes a competitor with the developersí new sales in the open marketplace. Many developers view resales as unwanted competition and tend to avoid the entire resale issue. The developers have arbitrarily created a distinction between the new unit sale and the resale unit -- when in most cases the only difference is the price the consumer pays. All timeshare units are new only the first night of the first ownerís stay. The next morning, the unit is no longer new. Vacation timeshare ownership is either deeded, right-to-use or club membership, which entitles the owner to the exact same product whether it is new or a resale. To limit competition for their new sales, the industry itself has developed programs and hybrids of the original product to inhibit resales outside of their resort network.

One means of inhibiting competitor resales is by penalizing the timeshare owners. This is accomplished by making the points and rewards programs non-transferable from the current owner to the new owner if sold by the individual owner or a broker. Bonus points and rewards are special benefits commonly associated with giving up use rights in exchange for hotel accommodations, rental cars or airline miles-- similarly offered on credit card purchases or airline frequent flyer usage programs. These points and rewards programs generally are not published or recorded. They are, however, essential use aspects and benefits that may only be deemed transferable when sold through the developer. Unfortunately, the original purchaser typically misunderstands this major issue. These secret limitations are a source of ever increasing consumer complaints.

Often the developer creates policies that hinder an owner trying to resell through an independent broker. For instance, it would be illegal for a traditional real estate condominium project or subdivision to prohibit a bona fide owner from receiving his CC&Rs (Condominium Covenants and Restrictions) if he were reselling his property. In timeshares, this type of hindrance to resales is widespread.

Any Timeshare Developer with a negative attitude toward resales is a large part of the resale problem.

Timeshare Value Factors

As in traditional real estate, the desirability of a property for sale as well as the supply and demand for that property weighs heavily on timeshare valuation. However, this is where the similarity ends between traditional real estate and interval ownership price assessment. In traditional real estate, it would be difficult to find two similar properties where one sold for almost half the price of the other. Two houses located next door to each other, both in similar condition and size, and both built the same year by the same builder would not sell for $50,000 and $100,000, respectively. In the timeshare resale market, this scenario is common.

Standard comparative market analysis appraisal techniques can be questionable for timeshare, and there is currently no bank bluebook for timeshares.

Timeshare properties have value factors unique to the industry. These factors (e.g., season availability; exchange benefits; extraordinarily high marketing costs; types of ownership; area and project amenities; etc.) are unrelated to traditional real estate

Purchase value is determined by the following factors: (a) What a buyer is willing to pay and what a seller is willing to accept. (b) Seller inducement or motivation to sell (e.g. divorce, death of family member, financial hardship, or just being tired of using the unit, etc.) (c) An auction format that encourages buyers to bid against one another. 

A good auction format is one that includes special sales incentives for its agents. These incentives help promote the highest marketable price, which in turn helps to prevent price erosion.

Since the resale market is diverse and the result of individual negotiation, it is impossible to predict the sales price of any specific interval.

If owners are limited in their options for resale assistance, it will literally feed the price erosion problem. Sellers can end up with their backs against the wall as a result of fruitlessly attempting to sell the unit themselves or trying to sell through an Internet bulletin board. These bulletin boards or advertising websites may provide a price list, photograph and general description of the property, but not the other essential services (e.g. consulting, negotiations, contracts, etc.) These bulletin boards and advertising websites actually increase price erosion and do not offer the consumer the professional assistance needed to complete negotiations. Procuring prospects is only one step in facilitating a sale. Contracts have to be prepared, escrow must be held, and ownership must be transferred and properly filed to assure the new ownerís usage. A licensed resale broker specializing in timeshare resale can represent the seller and perform all the services needed in a proficient manner.

Title: 

The home inspection process

Word Count:

791

Summary:

Information about home inspection

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Article Body:

When Home Inspection is required?

As a home buyer/seller or real estate professional, you have the right to know exactly what a typical real estate inspection is. The following information should give you a better understanding of exactly what your inspector should or shouldn't do for you during the course of a home inspection.

A home inspection is an independent visual examination of the physical structure and systems of a house of an apartment, including all sections from the roof down to the foundations. Having a home inspected is akin to giving it a physical check-up. If problems or symptoms are found, the home inspector may recommend further evaluation.

First and foremost, an inspection is a visual survey of those easily accessible areas that an inspector can clearly see. No destructive testing or dismantling is done during the course of an inspection, hence an inspector can only tell a client exactly what was clearly in evidence at the time and date of the inspection. The inspectors eyes are not any better than the buyers, except that the inspector is trained to look for specific tell-tale signs and clues that may lead to the discovery of actual or potential defects or deficiencies.

Inspectors base their inspections on the current industry standards provided to them by their professional societies. These Standards tell what the inspector will and can do, as well as what the inspector will not do. Many inspectors give a copy of the standards to their clients. If your inspector has not given you a copy, ask for one, or go to the American Home Inspector Directory and look for your home inspectors association.

The Industry Standards clearly spell out specific areas in which the inspector must identify various defects and deficiencies, as well as identifying the specific systems, components and items that are being inspected. There are many excluded areas noted in the standards that the inspector does not have to report on, for example; private water and sewer systems, solar systems, security systems, etc.

The inspector is not limited by the standards and if the inspector wishes to include additional inspection services (typically for an extra fee) then he/she may perform as many specific inspection procedures as the client may request. Some of these additional services may include wood-boring insect inspection, radon testing, or a variety of environmental testing, etc.

Most home inspectors will not give definitive cost estimates for repairs and replacements since the costs can vary greatly from one contractor to another. Inspectors typically will tell clients to secure three reliable quotes from those contractors performing the type of repairs in question.

Life expectancies are another area that most inspectors try not to get involved in. Every system and component in a building will have a typical life expectancy. Some items and units may well exceed those expected life spans, while others may fail much sooner than anticipated. An inspector may indicate to a client, general life expectancies, but should never give exact time spans for the above noted reasons.

The average time for an inspection on a typical 3-bedroom home usually takes 2 to 4 hours, depending upon the number of bathrooms, kitchens, fireplaces, attics, etc., that have to be inspected. Inspections that take less than two hours typically are considered strictly cursory, "walk-through" inspections and provide the client with less information than a full inspection.

Many inspectors belong to national inspection organizations such as ISHI, ASHI, and NAHI. These national organizations provide guidelines for inspectors to perform their inspections.

All inspectors provide clients with reports. The least desirable type of report would be an oral report, as they do not protect the client, and leave the inspector open for misinterpretation and liability. Written reports are far more desirable, and come in a variety of styles and formats.

The following are some of the more common types of written reports:

1. Checklist with comments

2. Rating System with comments

3. Narrative report with either a checklist or rating system

4. Pure Narrative report

Four key areas of most home/building inspections cover the exterior, the basement or crawlspace areas, the attic or crawlspace areas and the living areas. Inspectors typically will spend sufficient time in all of these areas to visually look for a host of red flags, telltale clues and signs or defects and deficiencies. As the inspector completes a system, major component or area, he/she will then discuss the findings with the clients, noting both the positive and negative features.

The inspected areas of a home/building will consist of all of the major visible and accessible electro-mechanical systems as well as the major visible and accessible structural systems and components of a building as they appeared and functioned at the time and date of the inspection.