_{On real estate property .. Buying or selling…}

What items comprise the price of real estate?

Let us start by knowing that I started giving online info and blogs more than ten years ago in text, audio and video.

This year my world changed due to tongue cancer. I can talk with you on the phone if you are patient and listen carefully and is I work to speak clearly. Sometimes my words are not clear due to a tongue which came from my thigh muscle. My thoughts are clear, but it is hard to use my tongue flap. Therefore he voice you may hear, came from artificial intelligence software. I voice banked my real voice, but have not yet decided to use that past voice. It is just past digital also.

Phone me to talk on the phone at 2812368189

Moving forward …….

What information is important? It may depend on how the property information is presented ….. or depend on when it is presented….

It is common that real estate agents are experienced in certain types of properties, but do not want to pass up on making money.. representing properties without enough experience in that industry type….

Frequently house seller agents till tell you that they can help. Does selling a automobile repair shop require the same knowledge.. as selling a multifamily apartment building. … If an agent sells new homes, should they also sell country acreage … with has water rights written by an attorney….. That is a changing environment….

Do the clients understand the changes to tax law concerning.. 1031.. Tax ..Deferred ..Exchanges….

There are 3 methods to determine the value of a property….

They are the comparable approach, replacement and also the income approach.

The Comparable approach – normally used on residential homes…

Replacement approach – how much is the value if we build a new building on the same or similar land ….. then depreciated the new building and assumed it to be a certain age, the same age as the building we are considering….

Investment income approach….. how much is the value of the annual net income this year….. What is the value if we spend X dollars in repairs and get Y in future income cash flow… How long will it take to stabilize the income from new tenants?….. What lender offers bridge loans?… Do we want a big New York lender or a home town local lender? Is your brother-in-law the right lender?…..

We ask these financial questions to know the future value, after the property is repaired and stabilized.

Sometimes you can not use the income approach to determine value.

A good real estate agent should understand how to correctly determine value, because the property may not appraise for contact value. If not renegotiated for new contract. The buyer may lose acquisition costs, such as contract option feasibility fee, building inspection fees, appraisal fees and the cost of your.

It is common for a multifamily four plex buyer to try .. to use the income approach to determine a value…. However, that approach is not recognized by licensed appraisers, nor the County appraisal District because there must be 5 doors to rent to be recognized as a commercial property to get a commercial loan….. The licensed regulated appraiser does not have a space on his/her form to input the expenses… only rental revenues… to use the gross multiplier of rents to determine value. This may not be accurate, especially if using the wrong multiplie number. Multiply gross revenues by 5 to get a value 20% higher than a multiplier of 6 times gross.

This may be especially true if owner pays all tenant utility bills and rents are higher to cover the costs of “All utility Bills Paid” rental price ….

Some buyers of investment property use the income approach which it is not appropriate.

4 or fewer apartments are considered to be residential buildings with residential regulations….

If a home or a 4 plex needs minor repairs, should the owner accept and sign a contract whereby the lender loan is guaranteed by a Veterans lender or the FHA … Fair Housing lender…. The property condition requirements are too strict …. Maybe, But the home seller real estate agent does not know that…. Thus The contract can not happen…. But the seller signed the contract and loses time and maybe a good buyer tomorrow.

Many agents do not know about 15 new legal forms required by the Texas Real Estate Commission…. If you do not use some forms,… then the broker may be legally required to pay damages to your tenant or subject to civil financial liability to a buyer or seller….

The Houston Association of Realtors is offering a free course to Realtors which is 3 hours long to discuss the new forms which go into effect on August 17th….

This is because there were numerous class action lawsuits by consumer buyers and their attorneys against the real estate brokerage firms in the United States and Canada in the amounts equaling 900 gazillion dollars….. which may be larger than the cigarette law suites….

So now the Realtors and their lawyers have 15 new or revised forms concerning ……. How to sell or lease a property….

Real estate commission paid by sellers and now from buyers….

Who pays who and when and why?…

Where are the forms and who signs and when they sign?….

Basically, there are NO standard real estate brokerage percentages…. All brokerage commission amounts are negotiated…. The fee paid to buyer brokers is no longer advertised…. Buyer brokers must phone the broker for each buyer to find out the dollar amount of fees to be paid to buyer for ancillary costs, such as …. buyer broker sales commissions,… closing costs,;; etc…, etc…… All real estate compensation is negotiated for each transaction and sellers may not be required to pay buyer brokers…. Buyer negotiate to pay buyer brokers in advance of signing a buyer broker representation agreement……

A sales contract can predetermine how much money the seller will pay for closing costs and buyer broker fees… However that amount can be used in anyway the buyer wishes….

Now we can switch to real time live discussion…. Please excuse my tongue surgery….

The point is …. On August 17th the real estate brokerage contracts became more complicated and require buyers and sellers to understand their contracts signed to engage a broker and how much money they have to pay and what services the buyer get for money paid….

Continue browsing our website at …. Houstonius.com…

Phone me,…. Lester Langdon…. at… 2812368189

Many clients use me to solve real estate problems.