Real Estate Information

Info By – www.dwarkadhis.in
Real Estate Forum – www.dwarkadhis.in/forum


DO HOME-BUYERS ACTUALLY LEVERAGE THIER COLLECTIVE BUYING ABILITY?

Let me make this outrageous statement at the beginning of this post – "Most...... (Please note that I am not generalizing) Most consumers or retail investors in the residential realty segment don’t have an idea on what they look for, what they are bargaining for and what exactly to expect. They pretend to be experts with their source of knowledge or expertise being another one of them".

I will explain the above. Give me some time to draw an analogy. These very consumers, when they go out to buy cars, they don’t pretend to know much more than the car manufacturer.  When these very clients visit a doctor, they don’t try to throw their limited acquired knowledge on the domain of medicine at the specialist. Likewise, when it comes to real estate, we have more pretending specialists than real ones, ON BOTH SIDES OF THE TABLE.

As a member of the CERTES REALTY business group, I have had the opportunity to meet a few client groups, who wanted to go out and source investment opportunities for themselves. Some small groups, some larger. If I have to fix up a percentage to such deals fructifying, I am afraid that it won’t be more than 5%.... just five percent? WHY?

In the first place, these groups attempt to source, compare, negotiate and close the deal, all by them. THEY DO NOT HAVE AN OUTSIDE EXPERT AGENCY TO HANDLE THE ASSIGNMENT. I would deal with the handicaps and threats of this approach, ahead on the article.

As a direct assignment, I interact with these groups of buyers, mostly corporate executives in the age group of 30- 40 from the private sector, and 35-45 from PSUs & government sector. The following are some of the salient observations on my interactions.

Most groups try and nominate a few enterprising fellow employees to spearhead the discussions, with developers / agents. These members need not always be the most competent, diligent or even the needy, as far as that particular investment is concerned.


   1. The groups are large when formed. But with the progress of time, and lack of visible success, the attendance dwindles.

   2. Hardly are any ladies nominated as members. There surely must be a reason!!!

   3. There are no clear leaders, and division of specialization, or responsibility.

   4. There are no clear mandates, and defined time-lines, price points & specs, at the start of the short listing process.

   5. Most discussions start with pricing and every discussion meanders to price per sq.ft.

   6. Having said the above, the groups would like to consider all product categories, including land, even if for academic sake only.

   7. NO FINANCIAL COMMITTMENTS TAKEN, in the absence of the above.

   8. Every order is worth more than 100 apartments, OR, almost 50 crores of sales.



I have also noted that whoever has invited CERTES REALTY into such the first meeting / credential presentation does draw a larger audience, and everyone is hopeful of the experts delivering some immediate solution at price points 30-40% below the market price. Unfortunately, it doesn’t happen that way. More often than not, the members of my team, at the conclusion of the meeting would still be thinking of defining the requirement, rather than delivering the solution.

Having said the above, it is extremely critical that any such assignment is always structured in a win-win situation for all three involved in the deal – The developer, the buyers & the connected parties like Banks, Investors etc. We always endeavour to achieve a higher success rate on such assignments.

In the section above, we looked at ‘what-not-to-do". It would be imperative to focus on "what-to-do-right", and ensure that everyone’s aspirations are fulfilled.

a)    The first & foremost advice that I normally volunteer to clients is – "Don’t try to do it yourselves. Had you been an expert on every related field, there would not have been space for professional organizations". Now, there is no vested interest here. This advice is purely on professional basis. You see, time is money and money saved can only be on the basis of ‘what you know, rather than whom you know’. I have seen people take judgemental calls based on one of their members knowing someone, or having interacted with a brochure, or an individual from a developer organization.

b)    Define what you want, rather than accept what is available – Most groups I have interacted do mention in the first meeting itself that they have the ability to buy a 1000 apartments if it is available @ Rs. XXXX per sq. Ft. That to me is a flawed way of considering a capital acquisition. Pricing of a product is a function of values – Tangible & intangibles. Without recognizing your need, one cannot define the price. In my experience, most such orders fall to below 10% of the initially projected numbers, once the details are under circulation.

c)    Recognize the handicaps & weaknesses – Many a times, the enthusiasm and optimism overrides. Many groups don’t recognize the fact that realty projects take 2-4 years to complete, and they cannot afford undivided attention to the follow up of the progress of their project. This leads to slips in follow up & eventually, the quality of the agreed deliverable.

d)    It is expertise that you pay for – You need expertise for the due diligence of the land, the approvals, the design, the developer credentials and every facet of the project. If the spread is analyzed, the cost of enlisting an expert organization is less than the cost of a one dinner date with the family. Is it wise to save that?

e)    Charge & pay for services – We always request client groups to form a small society, association or service group and seek a notional amount between Rs.3, 000 to 5,000 from each of the intending members. Whenever these groups have sent our circulars amongst employees, there is a horde of ‘ayes’ for housing. When a membership is proposed, 60& drop out. Why??????? That exemplifies the seriousness. A few enterprising members take on the responsibility for interacting with possible partners. Do they have to pay the costs & expenses from their pockets? DO they make personal commitments to service providers to take them on board? A better way would be to accumulate a small corpus and cover the costs. Also, pay small expenses through this fund. Remember, one would derive a much better valuation by paying Rs. 3000 towards the corpus when you are intending to buy a capital asset valuing more than 30 lakhs.

In our case, we seek a minimalist Rs. 10,000 from a corporate, as token recognition of our effort, the receipt of which signifies the client need. No other fee is leviable at a later date.

Let us not ignore the facts as they remain in the real estate sector

– The success rate is not more than 3%!!!

Having said the above, there are instances of success stories in the Delhi NCR region, on such deals. The moot question to ask is:-


    * WHAT DID THEY DO DIFFERENTLY?

    * HOW DID THEY GO ABOUT?

    * AREN’T THEY HAPPY THAT THEY RELIED ON PROFESSIONAL FACTS, NOT ON PRESUMPTIONS?



Read more: http://www.articlesbase.com/negotiation-articles/leveraging-collective-buying-of-residential-apartments-528630.html#ixzz18uYwIjIq
Under Creative Commons License: Attribution

Info By – www.dwarkadhis.in
Real Estate Forum – www.dwarkadhis.in/forum
Second home sales have been increasing over the last few years with more people becoming second home owners. In 2005 alone, 40 percent of the homes sold were second homes. Demographics, all time low mortgage rates, and healthy rise in home prices have contributed to this development in the second home market. Besides these, a major factor that has helped augment the buying and selling of second homes is the real estate professional.
The National Association of Realtors conducted research on the profile of second-home owners in 2006. According to the NAR report entitled ’2006 Profile of Second-Home Owners’, a majority of second home sales transactions are conducted using the services of real estate agents.
The statistics are remarkable; 64 % of vacation home buyers purchased their home using the services of a real estate agent by the end of 2005 – a marked increase from less than 50 % of vacation-home buyers in 2003. Also, 65 % of investment-home buyers purchased their home with the help of a real estate agent – an increase from 53 % of pre-2003. In comparison, only 14 % of vacation-home buyers and 7 % of investment-home buyers purchased directly from builders from 2003 to 2005.
The growing role of the real estate professional is evident from the following figures:
1. Of vacation home sales made, 71 % of them were second homes and 74 % of the sales were made using the services of a real estate agent.
2. Of the investment properties sold, 85 % of them were previously owned and 62 % of the sales were made using the services of a real estate agent.
The use of real estate agents in second home sales transactions varied according to the home’ location.
1. Buyers used a real estate agent more frequently while purchasing a vacation home located in a suburb/subdivision (56 %) or a rural area (57 %) than for homes in other locations.
2. About 66 % of buyers who purchased an investment property in an urban/central city area or in a suburb/subdivision, used the services of a real estate agent more frequently than those who purchased a home in other locations.
Real estate professionals continue to be the first source of information to second-home buyers (38 % of vacation-home buyers and 34 % of investment-home buyers). The real estate professional also plays a major role when second-home owners plan to buy additional properties. If you are thinking of buying a second home or vacation home, seek out the services of a real estate agent to guide you through your next home purchase.
1. The percentage of second home owners who are more likely to use a real estate agent in their next home purchase is quite high. Among vacation-home owners it is 79 % and investment-home owners 73 %.
2. Among second home owners, 65 % of vacation-home owners and 64% of investment-property owners are more likely to use a real estate agent in their next home sales.
Given these statistics, it is no wonder that the real estate agent plays a pivotal role in helping people buy and sell second homes. So whether you are a second-home buyer or seller, enlist the services of an agent for a smooth, hassle free real estate transaction.
Read more: http://www.articlesbase.com/real-estate … z18uQ9Jv3f
Under Creative Commons License: Attribution

Info By – www.dwarkadhis.in
Real Estate Forum – www.dwarkadhis.in/forum
Gurgaon is the address of most important IT companies and it makes available the most excellent infrastructure in terms of schools, roads, housing societies and medical facilities. Traveling from Gurgaon to Delhi and other adjacent state is not a problem because of the frequently available services as buses, cabs and taxis.
Gurgaon is the major preferential destination for investments to the people who are investing never before on the properties. Now Real estate sector in Gurgaon has seen major progress and development over the past few years. Residential properties in Gurgaon are well increasing with new residential ventures and projects by famous developers and builders. Presently there are many available residential properties for sale in Gurgaon. Mainly these residential properties are available in the major areas such as Sushant Lok, Sushant Lok I, DLF Phase IV, Sector 52, DLF Phase V, Nirvana Country, Sector 30, Andee City, DLF Phase I, Udyog Vihar I, DLF Phase II, Golf Course Road, National Highway 8, M.G.Road, sohana Road, etc. if you want to buy a independent house then it is better to look for a well known housing projects which will provide you the best facilities along with other residential projects like apartments or flats and villas by the major builders in Gurgaon.
Commercial properties in Gurgaon includes office buildings, industrial property, medical centers, hotels, malls, retail stores, shopping centers, farm land, multifamily housing buildings, warehouses, and garages. In many places, residential property containing more than a certain number of units qualifies as commercial real estate for borrowing and tax purposes. You can find these commercial properties in all places but you have to search for the real estate which will be very useful for you in the prime location. You can find commercial properties in Gurgaon near by Sohana road, Acharya prui, sector15, sector12, MG road, Rajeev nagar, Shusant Lok-I, Shusant Lok-II, Palam vihar and IMT Manesar etc. The commercial real estate cost in Gurgaon will be somehow costly compared to residential real estate.
People will have peace and safety in Gurgaon because the residential societies are well guarded by security executives. Infrastructural facilities like schools, roads, hospitals and markets make the place suitable for relocation. Major people realize that the city is friendly for staying as there are many available residential properties in Gurgaon such as flats, apartments, housing societies, residential colonies and independent homes where accommodation is available at affordable rates. To buy a real estate in Gurgaon is the best choice for the people whom will available in affordable rates.

Info By – www.dwarkadhis.in
Real Estate Forum – www.dwarkadhis.in/forum
Money market is witnessing a sudden boom in real estate industry, as various investors and real estate business owners are getting great monitory benefits and investing more and more money in it. With the ever-increasing size of the real estate industry, real estate business procedures are becoming more complex and demanding extra attention and better handling. In such situations, when all sections are getting complex day-by-day, the only task that needs to be put in first priority is accounting, as it is the ruling function of every organization. If truth be told, well maintained accounting section of a real estate firm decides over the exact status of growth and investors concern. Accounting is considered as the most tedious and time consuming task and real estate accounting is the perfect example of this as it not only consume maximum human resources but also includes maximum steps and procedures.
Due to the complexity involved in the real estate accounting task, every real estate business owner need to pay more attention and to put extra endeavors for managing a flawless accounting system. Being a wide spread industry, real estate business owners need to be more conscious and watchful for its accounting section. As this industry is prone to have sudden changes, real estate accounting section of real estate firms should be very quick to adapt these changes for walking shoulder to shoulder with other firms. For dealing with problems that are raised due to these changes such firms should have efficient accounting staff, so that all the problems may be solved without hampering essential financial tasks. For accounting professionals, real estate accounting can be a challenging job, as it needs extra precision than any other industry.
In fact, any ordinary accounting professional cannot deal with the complexities of this industry; therefore, efficient professionals who possess expertise in this field should be recruited for a real estate firm. Since every real estate firm deal with the most complicated financial systems, tax filing for such firms can be a very annoying process. At the end of every financial year these firm struggle to take out exact amount of profit and loss from huge financial data; in cases where this data is unavailable or mismanaged, possibilities of wrong assessment of tax are higher. Obviously, this data is managed on daily basis as everyday numerous financial transactions take place in real estate business; proper recording of these day to day transactions is very helpful in easy tax evaluation.
If you own a real estate business, who is facing difficulty in managing financial data properly, then hire the services of an outside firm and make it less burdensome. You can also entrust the entire accounting task to that firm but in case you are worried about security of confidential financial statements
, then entrust only that portion of the accounting task that does not contain any confidential information. With the help of these firms, you can also monitor the cash flow within and outside the organization, so that the unnecessary usage of available resources can be avoided. Whether you take help of an outsider firm or do it with your available accounting staff, it is for sure that well managed real estate accounting system will help your firm in flourishing at a faster pace.
Read more: http://www.articlesbase.com/real-estate-articles/leave-your-competitors-behind-with-real-estate-accounting-259858.html#ixzz19J7zwQ8Z
Under Creative Commons License: Attribution

Info By – www.dwarkadhis.in
Real Estate Forum – www.dwarkadhis.in/forum
The real estate market tends to be cyclical with some periods favoring buyers and other periods favoring sellers. As with other free markets, the pricing and availability of real estate is directly related to the forces of supply and demand. While many real estate markets in the United States are experiencing a substantial slowdown, other markets remain robust, and some even continue to grow. What makes the situation even more complicated is that even within a particular city or county, there may be some areas that are hot and others that are cold.

In regions of the country in which the real estate market is slowing, there are some things homebuyers can do to increase their chance of getting the property that they want on terms that are favorable. Below are some strategies to consider:

1. Clarify What You Want. Be sure to understand what kind of property you want (e.g. bedrooms, bathrooms, size, yard, location, etc.). Identify items that you "must have" and items that you would be willing to forego if your other priorities were met.

2. Consult Experts. You've no doubt heard the saying that "all real estate is local," so arm yourself with the best information available. Consult a local real estate expert who can guide you about what communities are hot and which ones are not. Obviously, you are more likely to find deals in communities that have excess supply and limited demand than vice versa.

3. Understand Market Data. Obtaining and evaluating data can be one of the most powerful tools in your arsenal. Identify communities that you find desirable and ask your real estate agent to provide you relevant sales statistics. For example, your agent can provide you:

a. A summary of how many properties are available in communities that you deem desirable.

b. How long properties are taking to sell this month, last month, last quarter, last year, etc.

c. How many properties have sold this month, last month, last quarter, last year, etc.

d. Changes in the median and average price of properties for a community this month, last month, last quarter, last year, etc.

e. Data on the sales price to list price ratio (SP: LP). This ratio provides information about how much, on average, sellers are reducing their price.

f. Detailed data on properties that are similar to the type of property you desire (often known as "comparables" or "comps").

4. High Inventory Communities. Identify, or ask your agent to identify, communities that appear to be particularly slow, and that have an unusually large inventory of homes. You will have a broader variety of options in these communities, and you may increase the likelihood of finding a better deal.

5. Loan Pre-Approval. Be sure to consult with your bank or mortgage broker and obtain a loan pre-approval document. This not only let's you know how much you can afford, but it also demonstrates to sellers that you are a serious buyer and that your offer is worthy of serious consideration.

6. Seller's Motivation. While information about why a seller is selling is usually confidential, there are situations in which the seller will allow their agent to disclose important factors regarding their personal situation. Be sure to ask your agent to inquire about any information that the seller has disclosed to his/her agent that can be conveyed to your agent. This information may help you decide on making an offer on a property and the price you wish to offer.

7. Home Inspection. A home inspection conducted by a qualified inspector can provide you valuable information about the condition of a property. Moreover, if there are items that need repair or replacement, you can use this information to modify your offer price or terms.

8. Expand Search Scope. As mentioned above, even within a particular city or county, there may be some areas that are hot and others that are not. Be sure to provided detailed information about what you want to your agent, so that he/she can provide you a variety of community options.

9. Be Patient. Time is on your side when there is excess supply and insufficient demand. Try not to "fall in love" with a house so much that you cannot be objective. It may be that multiple offers and counter-offers occur before you either get the property you want or decide to walk way from a deal. You may also want to look at more properties than you normally would, so that you are exposed to a variety of options.

While the above is not an exhaustive list of strategies, it is a good starting point of issues to consider when buying real estate, particularly in a market that favors buyers. Obtain the services of a knowledgeable Real Estate agent who can provide you with additional strategies to help you reach your real estate objectives.

Read more: http://www.articlesbase.com/advertising ... z18uYMUWbP
Under Creative Commons License: Attribution

Info By – www.dwarkadhis.in
Real Estate Forum – www.dwarkadhis.in/forum
There are some myths about real estate agents, many of which are not so flattering. But when it comes down to it, real estate agents are not too out there, and there is a logical explanation to each misconception. Let’s straighten out a couple myths and facts.

Myth #1: They have big hair.
Fact: Though occasionally real estate agents do have big hair, most are regular people who get up in the morning just like you do, and go to work just like you do. Many real estate agents, in fact, are going bald due to stress related hair loss. Same with the fancy dagger-shaped manicures; in actuality, many real estate agents have bitten their nails down to nubs.

Myth #2: Real Estate Agents drive luxury cars while talking on their cell phones.
Fact: Itâ??s true that real estate agents are often trying to do too many things at once, but they like to be careful about it. And though real estate agents would like to make a good impression on you, more often than not they drive Hondas and Toyotas and hope that their hard work will sell you, not their Lexus.

Myth #3: Real Estate Agents know your area.
Fact: Just like normal people, real estate agents canâ??t know everything. Though they do spend a lot of time driving around town, they canâ??t be in all places at once, and they themselves probably have preferences for one neighborhood versus another. Make it clear to your realtor what kind of area you want to live in, and they can help you look within that section of town.

Myth #4: Real Estate Agents live outside of time.
Fact: Real estate agents have lives too, and those lives happen to take place in the same physical realm as yours does. While it might seem like they spend a strangely disproportionate chunk of time speaking with you, they are actually trying to be as time-conscious as possible, so that you can move more quickly into your home and they can move more quickly to helping their next client.
Myth #5: Real Estate Agents just want your money.
Fact: What real estate agents actually want is an easy life. They want to help you find a home you love, and they want to make their (often small) bit of commission off of it (and thatâ??s off the sale, not out of your pocket). They do not want your soul or your firstborn, just some patience, consideration, and a positive home-buying experience for all.

Read more: http://www.articlesbase.com/real-estate … z18uPrhkNd
Under Creative Commons License: Attribution