Real Estate & Property Smart Investing

Another popular property-flipping strategy that is being taught today is concurrent closings, which are better known as simultaneous closings, double closings, and double escrows.

Under a typical concurrent closing scenario, Buyer A signs a purchase agreement to buy a property from Seller B; in the meantime, Buyer A turns around and signs a purchase agreement to sell the property to Buyer C at the same time Buyer A buys the property from Seller B.

In theory, this sounds as easy as boiling water, but in reality, it is next to impossible to pull off, especially when there are lenders involved in the transaction, because, nowadays, almost all lenders issue closing instructions to title and escrow agents doing concurrent closings, which require: Read more…

April 5th, 2008 | Buying & Selling | No Comments

When it comes down to the nitty-gritty, your home is worth what someone is willing to pay for it. In a super hot market with several buyers bidding against each other, the value can escalate in minutes to thousands of dollars over the starting price.

In fact, buyers in some markets know they have to start thousands of dollars over asking price just to play in the game. Buying a home can get ugly as more buyers chase fewer properties in a market that seems to increasingly defy gravity.

In a normal market where the numbers of buyers and sellers are more balanced and homes aren’t selling before the seller finishes pounding a sign in the turf, the usual valuation rules apply. The five most important are: Read more…

March 19th, 2008 | Valuation & Appraisal | 1 Comment

Everyone knows when a real estate deal closes: It’s when you get the keys to the house and the sellers get their money. But when does the closing process actually begin? In truth, it starts when you make an offer to purchase. How that offer is written up determines what steps you have to take in order to eventually receive possession of your new home.

There are many steps involved in the closing. These can include getting financing, clearing contingencies and title, and paying closing costs. There also can be many stumbling blocks. For example, your lender or escrow company may charge excessive garbage fees or may refuse to fund, or the escrow holder may make mistakes, or clouds (defects) may appear on the title. Or it could go quickly and smoothly.

To get started, it’s important that you have a sense of what’s involved in a typical residential real estate closing. So here it is, step by step: Read more…

February 28th, 2008 | Buying & Selling | No Comments