Selling Your Home: Market/Sales Price
by: Chris Cates
Whether you are planning to buy or sell a property it is important to become familiar with the terminology of real estate. In real estate the three terms that are commonly used interchangeably are value, cost, and price. Although, all are concepts relating to value, they are not the same. Let?s begin by differentiating between the terms.
Value deals with something that will happen in the future; whereas cost relates to past events, and the amount of money actually paid for the property is the price. Depending on circumstances, the value of a property may be the same, more than, or even less than the price. Several things determine the value of a property: the degree at which it satisfies a need, ratio of supply to demand, transferability, and whether a perspective buyer with need for the property can financially afford the property.
Value is a term, which should be used when speaking of what you think the future benefits will be from the ownership of a particular property. There are several questions that might be asked when trying to assess the value of a property:
1. What is the zoning code? What?s the possibility of it changing in the next 10 years?
2. If the zoning changes, would it impact the use of the property?
3. What are the plans for the surrounding area (a highway, shopping center, amusement park)?
4. What impact if any do the topography, climate, and location have on the value?
5. Will the value be influenced by the interest rate or property taxes?
Market value is the projection of the price the property should bring when the real estate market is competitive and open. Remember ? there is a difference in value and price.
Market price describes an activity that has occurred and, as stated above, is the amount a buyer actually paid for the property. The price paid for a property is dependent on several things: motivation of the buyer or seller, location of the property, needs of buyer, and price of similar properties.
The reason to sell or buy a property is as varied as the seller or buyer and can impact the sales price. If a seller is highly motivated he may be more willing to adjust the price of the property toward what the buyer is asking. Reduction in income, financial inability to pay the mortgage, a change in marital status, too many similar properties for sale, and the desire to be removed from the responsibility of the property are conditions that could motivate a seller to adjust the sales price; thus creating an environment conducive to bargaining for the buyer. However, a less motivated seller may not be willing to negotiate his asking price, which probably is in line with the market value described above?not good for a buyer looking for a deal!
A seller?s ideal buyer is a motivated one. If a buyer, for whatever reason, is determined to purchase a particular property and is financially able, the asking price will be similar to the sales price. A situation such as this can mean little negotiation is needed and we have a satisfied seller.
The amount a property sells for has a direct relationship, normally, with the location of the property and how well the location satisfies the needs of the buyer. The more the gap is closed between how well the location of the property addresses the needs of the buyer the greater the chance the sales price will reflect the asking price and market value. A property 20 miles from the closest major highway will not be a good fit for a buyer needing to be in closer proximity to the highway. Before beginning a search for a property a buyer should identify his needs and motivation. By doing this, he positions himself for effective negotiations.
The closer the needs of the buyer matches the features of the property to be sold the greater the chance the sales price will reflect the asking price and maybe even the market value. As a seller, to identify serious and motivated buyers prepare a couple questions that will outline the buyer?s needs:
1. What features are you looking for?
2. What?s the purpose of your move? (This question will help you assess the buyer?s motivation.)
3. When would you like to close?
Today with the downsizing of many companies, some homeowners have been forced to file bankruptcy. Bankruptcy influences the price at which houses eventually sell because in calculating the asking price of a property a comparison of the sale prices of similar properties should be made. The sale prices of these homes often are lower than the market value and the asking price. If the home you are preparing to sale or buy is located near surrounding communities with high bankruptcy rates then the sales price will more likely be adjusted closer to those sale prices.
Remember: whether buying or selling a home, do not confuse the sales price, which is the actual price a property sells and the market value ?merely a projection and may not reflect the selling price.
About The Author
Chris Cates is a nationwide real estate investor, who co-founded WeBuyTheUSA along with Todd Dotson. In addition, Mr. Cates is a national real estate mentor for Tactical Real Estate, where he has trained real estate investors across the country. For more information, please visit his website at www.WeBuyTheUSA.com.
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Senate Glossary Terms A - C
Senate Glossary Terms A - C
by: Al Loy
Adjourn for more than 3 days - Under the Constitution, neither chamber may adjourn for more than three days without the approval of the other. Such approval is obtained in a concurrent resolution approved by both chambers.
act - Legislation (a bill or joint resolution, see below) which has passed both chambers of Congress in identical form, been signed into law by the President, or passed over his veto, thus becoming law. Technically, this term also refers to a bill that has been passed by one house and engrossed (prepared as an official copy).
adjourn - A motion to adjourn in the Senate (or a committee) ends that day's session.
adjournment to a day and time certain - An adjournment of the Senate that fixes the day and time for its next session.
amendment - A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both....
Senate Glossary Terms A - C
Projection tv > Senate Glossary Terms A - C
Senate Glossary Terms A - C
Senate Glossary Terms A - C
by: Al Loy
Adjourn for more than 3 days - Under the Constitution, neither chamber may adjourn for more than three days without the approval of the other. Such approval is obtained in a concurrent resolution approved by both chambers.
act - Legislation (a bill or joint resolution, see below) which has passed both chambers of Congress in identical form, been signed into law by the President, or passed over his veto, thus becoming law. Technically, this term also refers to a bill that has been passed by one house and engrossed (prepared as an official copy).
adjourn - A motion to adjourn in the Senate (or a committee) ends that day's session.
adjournment to a day and time certain - An adjournment of the Senate that fixes the day and time for its next session.
amendment - A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both....
Senate Glossary Terms A - C
Projection tv > Senate Glossary Terms A - C
Selling Your Home: Market/Sales Price
Selling Your Home: Market/Sales Price
by: Chris Cates
Whether you are planning to buy or sell a property it is important to become familiar with the terminology of real estate. In real estate the three terms that are commonly used interchangeably are value, cost, and price. Although, all are concepts relating to value, they are not the same. Let?s begin by differentiating between the terms.
Value deals with something that will happen in the future; whereas cost relates to past events, and the amount of money actually paid for the property is the price. Depending on circumstances, the value of a property may be the same, more than, or even less than the price. Several things determine the value of a property: the degree at which it satisfies a need, ratio of supply to demand, transferability, and whether a perspective buyer with need for the property can financially afford the property.
Value is a term, which should be used when speaking...
Selling Your Home: Market/Sales Price
Projection tv > Selling Your Home: Market/Sales Price
Lens Flare - The Hidden Enemy Of Rear-Projection TVs
Lens Flare - The Hidden Enemy Of Rear-Projection TVs
by: Eli Aloisi
While one expects CRT-based rear projection televisions to deliver good black levels, there is a factor that can compromise black level performance in any rear-projection display.
This factor is something called lens flare. Lens flare is most commonly seen in photographs. It usually occurs when the photographer is shooting in the general direction of the sun. Bright sunlight enters the lens at an angle and bounces around inside the lens body. As it reflects off of the interior parts of the lens, some of it ends up getting on to the film, usually in the form of bright circles or shapes, broad smears of light, or lines.
Binocular, telescope, and camera lens manufacturers all try to make the inside of their optical assemblies as dark as possible and also add light baffles to try to waylay the misdirected light so that it does not spoil the image
Rear projection televisions...
Lens Flare - The Hidden Enemy Of Rear-Projection TVs
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LCD TV Checklist: Are you Prepared?
LCD TV Checklist: Are you Prepared?
by: Tim Jeffries
LCD flat screen TVs provide a superior picture as compared to a traditional television - and they can come in more attractive styles to boot.
A flat screen LCD TV can be mounted on a wall, under a cabinet, on the ceiling? or can sit on a stand or on top of furniture.
LCD TVs are versatile, flexible, and provide a better entertainment experience? but how do they work?
LCD flat screen TVs, and LCD technology itself, is based on the properties of polarized light.
LCD TVs consist of two, perpendicularly arranged panes of polarized glass "stuck together" by a liquid-crystal-filled polymer solution. When they are exposed to electrical currents, the crystals untwist to varying degrees, permitting specific amounts and colors of light to pass though them.
Flat screen LCD TVs are, in effect, projection TVs that depend on an extremely bright lamp as their light source,...
Projection tv > LCD TV Checklist: Are you Prepared?
Successfully Obtaining a Small Business Loan
Successfully Obtaining a Small Business Loan
by: Rebecca Game
Working with a bank to obtain a small business loan can be an easy or difficult process, depending on how prepared you are to meet with the lender and discuss your business' situation and needs.
One of the leading causes of business failure is insufficient start-up capital. Ironically, though, lenders rarely approve loan requests for the businesses that have the highest need for a small business loan. Instead, lenders tend to prefer to offer small business loans to those businesses that have been in operation for two or more years.
According to All Business, it is estimated that 95 percent of all entrepreneurs opened their businesses with capital from their own pockets, or from money they borrowed from relatives, friends, or another person in their community. Lenders want to see business owners risk their own funds in the business venture, and often require that the business...
Successfully Obtaining a Small Business Loan
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