Real Estate And Professional Development Courses
Those who have decided to take on a career in real estate will no doubt benefit by taking up professional courses and classes. Since this is a highly specialized profession with its own set of rules, protocol and etiquette it is highly advisable to do so. Real estate has many legal trimmings also and these have to be mastered by the aspiring real estate agent. And there are classes on going throughout out Canada and the territories such as Manitoba and Quebec for example.
When you have decided to take up these classes it is advisable that you do a bit of research first on what kinds of real estate course are available. There are quite a few to choose from depending on how you want to map out your career in this field. Of course no doubt you will start out with a starter class.
Later on you may decide to take on appraisal courses, upgrading courses and the like. Many of these courses are offered in the local chapters of your association for real estate. It is just a matter of asking the right people.
In the mind of the ordinary person the classes are relegated to a class that prepares you to get your license so that you can start selling, but actually there are professional courses that deal with other kinds of skills and knowledge in the industry. These professional courses can take the shape of reviewing for a renewal of your license, legal matters, up and coming developments in the profession amongst many others. These classes and courses can also serve as a venue to meet and collaborate with your peers.
The advantage of taking classes to prepare you for your examination cannot be stressed any stronger since most people wanting to enter the field have a very small inkling of the many quirks and subtleties that are involved in the profession. Therefore your very first class is probably the most important.
And schools do exist to provide these classes and courses, so there is quite a selection to choose from once you decide to look for one. Most importantly however in choosing the school for these classes is the faculty complement of the school in terms of ability, and professionalism. The school that you choose should have a track record and should be adequately priced in terms of its offerings.
Most of us do not want to go to school, but this is a repeated reality in the world of property markets where the classes can last for a few weeks on end. Other high return industries like direct selling organizations also provide training that will not last for more than a few days, and you do not need a license to sell their products. This is quite an attractive option for some also.
Thus perhaps you can weigh the options between direct selling and real estate, both give considerable returns but definitely quite different paths in achieving them. Both require a lot of personal dedication and rapport with customers and a lot of a go get them attitude.
6 Reasons to Avoid Short Sales When Buying a Home
A short sale is an agreed upon sales transaction that occurs when the value of a home falls below the amount outstanding on the mortgage loan. For example, suppose a property was purchased for $400,000 and the buyer secured financing for $350,000. If the value of the property drops to $320,000, the buyer is "upside down." He owes more than the home is worth.
In such cases, the current buyer can approach the lender and negotiate the sale of the property for an amount less than the outstanding loan. If the lender consents as an alternative to foreclosing, the property is prepared for a short sale.
New buyers are attracted to these properties because they initially seem like a bargain. In reality, there are many reasons to avoid them.
Tip 1 - Long Wait With An Uncertain Outcome
As the housing market began to crumble a few years ago, lenders' portfolios of short sale candidates started to grow. As a result, a backlog formed and quickly grew worse; lenders found themselves overwhelmed with the number of "troubled" properties on their books. Few deals received adequate attention.
For this reason, it's not uncommon to move forward with a potential purchase only to watch the transaction languish for months. Many realtors refuse to pursue these properties.
Tip 2 - Phantom Equity
A common mistake on the part of short sale buyers is to presume a home that has declined in value has built-in equity. This is a fallacy based on a misunderstanding of market values.
Using our earlier example, it would be a mistake - a costly one at that - to presume the home has $80,000 ($400,000 less $320,000) in built-in equity. The equity evaporated with the decline in market price.
Tip 3 - Additional Expenses Before Purchase
Most of these homes for sale are listed on an "as is" basis. The lender, in agreeing to accept a lower offer than the amount outstanding on the loan, is rarely willing to pay for repairs, inspections, and certifications. That means you will need to pay for termite inspections, roofing repairs, a home warranty, and other costs typically handled by the seller.
Tip 4 - Lack Of Seller Urgency
During a conventional transaction, the seller is usually eager to move forward. He or she is anxious to cover costs associated with buying and moving into a new home.
With a short sale, the dynamic is completely different. The seller is merely trying to avoid a foreclosure. However, when he or she discovers the impact of a short sale and a foreclosure on a credit report are similar, their urgency disappears. This can needlessly prolong the transaction.
Tip 5 - Lender Savvy Eliminates Bargains
Those who are looking for short sales often think they'll stumble upon astounding bargains (for example, houses with built-in phantom equity). Lenders are informed about property values. They are unlikely to offer distressed homes for sale at a price that is significantly below its market value.
Tip 6 - Last-Minute Changes
Short sale transactions are unpredictable because the lender can make last-minute changes to accommodate their interests. Making matters worse, the lender may not be particularly motivated to sell the distressed property in the first place. For buyers, this can be endlessly frustrating, especially given the already longer-than-normal sales process.
Is it possible to uncover a bargain in short sale properties? Yes, but doing so is rare. The market is more efficient than many buyers suspect. If a short sale home is priced at $320,000, it is because that is the market value for that property, not because of an inefficiency in the market. If you are still interested in pursuing troubled homes for sale, work with a realtor who has experience with this type of transaction.
