Planning to sell your home but clueless about its market value? Getting your home and property appraised would help you get an idea about your propertyís value.  However, the appraised value should not be confused with comparative market analysis (CMAs).  The appraised value is the only value honoured by banks whenever you are planning to loan money.  

If you are planning on getting your property appraised, then you would have to consider the banksí preferred appraiser.  Usually, the lender or the banks would have contracts with an exiting appraiser and you are required to get the services from them.  If the banks or the lender would allow you to get a third-party appraiser, it may take a while before the financing is approved.

Appraisal reports are actually very detailed.  They would include details of the property, the status of real-estate market where the property is located, access to the property like roads, flawed characteristics of the property, how long the property would be up for sale, and the type of the neighbourhood where the property is located. The appraiser would also include in their notes if the road going into the property is private.  The bank granting the loan may require a road maintenance agreement to be signed.

Appraisers should also not be confused with inspectors.  Inspectors intend to check the chimney, test appliances, inspect fixtures and recommend repairs to increase the homeís value before putting it up for sale.  Appraisers would write down obvious problems in the property and their observation in the area.

When determining the value of the property, appraisers use three approaches.  The value could be determined by the sales comparison approach or by comparing the property with other similar properties in the area.  It could also be determined by identifying the much needed improvements in the property which is called the coast approach. In the income capitalization approach, the value is determined by the operating income that can be earned from the property.

But are appraiser fees expensive?  Appraiser fees depend on the time needed to finish appraising the property.  It could also be based on the amount appraiser and the person who needed the service agreed upon.  Sometimes, appraisers would state that fees are not final and subject to change based on additional expenses.  

Real-estate appraisal is needed when making bank loans, the property needs to be divided to multiply heirs, the property should be appraised for tax reasons, or for estate settlement. An appraisal documents reduce conflict about the property market value during these situations. However, the values stated by the appraiser are not the absolute value.  

When getting an appraiser, verify his background and identify if they were able to meet requirements.  States would require appraisers to be licensed, while there are others who would require appraisers to be state certified.  They also have strict standards and codes to follow.

Without any question and doubt, if you are looking or aiming for your property to be financed by a bank or get a reputable private or corporate buyer to look at your property, then you would have to have it appraised.  Real-estate is probably one of your biggest investments and you would like to protect and sell it in its proper value.

You have probably heard it before, investing in real-estate is among the best investments you could make.  Usually, the value of real estate properties increases. It may sound easy, but beginners would usually fin out that it is not that easy.  It would require knowledge which could be achieved through research, planning and hard work.   There are common mistakes in real-estate investing which could lead to serious pitfalls.

Before you proceed in investing your hard-earned money in real-estate, you would have to consider several things first.  For example, you would have to identify what kind of money you want to earn, it could be lump sum where you could have to venture into wholesaling and flipping.   Flipping means you would have to buy properties and hold them until you could sell the properties for profits.  

Before you buy any kind of investment, you would have to be familiar with the laws covering the property.  Different states would usually have different laws covering property acquisition.   There are legal procedures that you would have to undergo or complete to fully claim your right to the property.

Your investment could also provide passive income which would require you to look into houses or properties that could house a number of families.  These houses could be rented out.  However, this kind of investment may have drawbacks since the property may end up with bad tenant or without any tenant at all. If directly managing the homes or rental units is not your cup of tea, then you could try getting a real estate investment group.  They would be building or managing the property for you in exchange of a percentage of tenantsí monthly payments.

If it is your first time to venture in real-estate investing, then you would have to be aware of common beginnerís mistakes.  One common mistake is speculation.  Beginners would usually follow the media, buy a property and wait for its value to increase.  This could be risky.  As mentioned earlier, real-estate investing requires research. Aside from that, you would also have to be prepared for the worst. If nobody buys the property, then you would have to think of other methods on how you could generate income from it.  You could lease it, rent it and think about other exit strategies.

Another common mistake is getting emotions involved in their first investment.  Emotions may cause problems when making business decisions like prospect buyers being cut-off even though they are offering the best deal.  Before you start looking for properties, make sure that the real estate team is ready.  

Most people think that they could start investing on their own, big mistake.  A good real-estate team and mentor would surely help you move quickly towards your goal.  Who do you need in your team? You would need a real-estate agent, loan officer, tax adviser, and even a lawyer.  

When property hunting, keep two things in mind: location and value.  There are newly-developing places where real-estate could provide you with greater financial returns in the future.  Usually, you would find a great property in a great location, it may need some fixes but it could be addressed inexpensively. You may also want to think twice about buying a good property or residential house when it is located in areas with high foreclosures rates.  Also, think about buying a property close to your home.  This way you could focus and check on the property without being hassled of travelling for hours.

Real-estate investing would not make you a rich man overnight. It would require you hard work and good marketing strategies.  You would have to be mentally, emotionally and psychologically prepared for it.  But when strummed in the right strings, it could definitely provide you financial stability.

Real-estate developers and investors are now adopting more environmental-friendly practices.  Buildings are redesigned; investors and developers would incorporate the goal of achieving greener buildings and properties when doing renovations.   The market of clients looking for greener buildings and houses are also increasing.  This is just a reflection that people are starting to become more aware of the earthís environmental concerns.

Aside from the increasing environmental consciousness of those who are house hunting, the government are also implementing regulations making the industry greener. Developers and investors are building and looking for houses that would be able to meet the government environmental standards.  International organizations and institutions are also playing major roles in pushing both the private and public sectors in rethinking their environmental actions.

In fact, construction companies which are indispensable to real-estate developers, are working hard to be ìgreen certified.î  According to the U.S. Green Building Councilís Leadership in Energy and Environmental Design (LEED), 5% of commercial construction companies were able to secure LEED certification in the previous year. Aside from that, major companies like IBM, JP Morgan Chase, etc. are moving into green buildings.

According to the McGraw-Hill report, there are developers that would buy houses and properties which they would convert into green buildings and homes.  The McGraw-Hill survey reported that green buildings tend to bring 3%  and 7.5%  higher revenues.
The National Association of Home Builders stated that the market is experiencing increase in demands for eco-friendly homes.  As a matter of fact, the American Institute of Architects in their 2006 survey stated that 90% of people are willing to pay $5,000 more just to have a house that uses less energy and earth-friendly.

According to the U.S. Green Building Council, more homes are becoming environmental-friendly due to its numerous benefits. What are these benefits?

Greener homes use less energy which means less money on bills.  The price of fuel is constantly increasing over the past years.  Reducing your energy bills would allow you to allocate your budget for other important things needed in the household. According to Energy Star, a program of the U.S. Environmental Protection Agency and the U.S. Department of Energy, about 15 to 20% of house energy is lost because of poor construction.

Better and healthier air quality.  Indoor air is two to five times more polluted compared with outdoor air, according to the U.S. Environmental Protection Agency.  Indoor air can aggravate allergies and asthma. Using home materials and machines that produce better air quality are those materials (paints, stains, glues) that have low content of toxic chemicals. They could cost more, it would be better for the homeownersí health, in the long run.

Opting for greener homes and buildings means that you are helping save the earth. Homeowners and real-estate developers are reducing waste-production because they are working with materials that would last longer and recycled items.  Also, less consumption of energy means you are consuming less fossil fuel, and less carbon footprint.

When thinking about making your real-estate property eco-friendly, you could always coordinate with a local or regional green building organization.  They have network of architects and builders who would be able to help you improve your home.  There are also guideline when building green houses, so make sure that you are properly informed. Before proceeding with any green real-estate developer or builder, make sure to check their previous works or generate as much information from former clients.

Having a real estate agent to help you out is essential when aiming for a quick and good deal, whether you are buying or selling your home or property.  Selling your house is not just about placing a ìfor saleî sign in your lawn or placing your house in the classified ads.  A real-estate agent would be able to help you sell your home for the right price and get the best deal possible.

There are many real-estate agents out there, how do you choose the right person?

Do the interviews yourself

The best way of getting to know an agent is by talking to them personally.  You could directly discuss with them what they think about the property, know about their qualifications, ask about their previous transactions, any kind of problems with previous deals and seeing if the personality would be able to match yours. You could directly inform them what kind of communication you are expecting from them and it they would be able to reciprocate that expectation.

Qualifications and history

Check if they have enough experience and expertise, especially in your location.  They may have an impressive record in other places but they would have limited knowledge in your area.  Also look for any complaints filed against the agent in the State Board of Realtors.

Referrals

Ask your friend, family or relatives if they would be able to recommend somebody.  If they would be recommending an agent, make sure to ask about their experience with the person.  You could ask about how the agent communicated with the clients and of course, their fees. Before hiring the agent, identify first if they would be able to provide your needs and work with you.   

Customer service

Your agent maybe good, but they may be difficult to contact or does not maintain open communication with you.  That would surely create problems.  If your agent has an assistant communicating with you, it is okay as long as they are present in important transactions and would go over the contracts themselves.  How the agent communicates with clients show how they value the property and how serious they are in dealing.

Familiarity

The agent that you should be getting should be familiar with the market in the area where you are buying or selling your property.  The agent should have an idea about the competition in the area, the neighborhoodís history of transaction and the usual price range in the location.

Contacts and access to tools

It is great to have an agent that would be able to find contacts that would match your needs as a client.  Your real-estate agent should have access to Multiple Listing Service (MLS).   This would allow your agent to have access to different properties in different areas to look for houses or properties which would match what youíre looking for.  

Attend open houses

Attending open houses would allow you to see real-estate agents while working.  You would be able to see how they handle transactions.  You could observe how they promote the house (if the house is for sale) and you could even get a few business cards from other real estate agents.