Short Sales And Related Issues

Short sales have grown to become more prevalent simply due to the fact we have been in a recovering economy. They happen when a homeowner cannot maintain keep the mortgage current along with other financial issues. To minimize potential losses, the financial institution may agree to permit him/her to sell the house for the current FMV even though that may be less the balance of the mortgage. If the lender does agree to the course of action, the alternative for the lender to seek a foreclosure which takes both time and money. With this type of sale, the bank shortens the time to resolve this matter and, potentially, maximize its net proceeds.

Since the buyer (usually a house flipper) will be buying the property at its current fair market value and, usually in a weakened real estate market, they will probably be paying less in a short sale than they would if the current owner listed the house at a price sufficient to pay off the full balance of the mortgage. In exchange for the lender agreeing to this course of action, there are usually a few drawbacks for the homeowner to understand and agree to.

To do this type of transaction, the homeowner must demonstrate that he/she is in financial distress. And, when this occurs, the homeowner is also likely not to have the funds to maintain the home in good condition as well. So, when the buyer purchases a short sale home, neither the property lender nor the homeowner will typically have made the necessary repairs to maintain the home. The buyer will get the house as-is, complete with any physical problems the homeowner was unable to fix. Hence, even if the property is purchased at a discounted price, the buyer will probably have to invest funds to make certain necessary repairs.

To complete a short sale, both the lender and the homeowner/borrower must agree to any short sale offer. The lender must accept less for its collateral than the balance of the mortgage and some lenders may require the homeowner to be financially liable for the difference between the sales price and the mortgage balance. If the homeowner doesn't agree to this negotiated point, the lender may not agree to proceed with the sale. However, lenders may forgive the difference and write it off which gives the homeowner some incentive to agree to the short sale.

Short sales usually take longer to close than traditional sales. The lender will probably want to have the home appraised by a certified appraiser and it will also take time to consider the ramifications of the proposed sale. It might amend or outright reject the offer. It's possible for a short sale to continue unresolved for months. And, a second lender adds even more complexity. If this is the case, then all lenders must agree to the short sale.

The law surrounding short sales is complicated and the facts of each situation are unique. It is recommended that a homeowner start this process by engaging a good real estate attorney and local and experienced real estate agent. They will guide you through this difficult course of action.

Commercial Construction Tips - Facts About Construction Projects

Commercial construction is often an arbiter of changing economic conditions. Construction projects mean both an improving economy and a way to improve the economy of a given area. Read on to learn more interesting facts about it.

This type of construction helps public sector agencies as well as private firms. Big new schools in areas where people are moving give students a chance to learn in state of the art facilities. New office buildings bring jobs to the area, and the upward spiral continues. Not only do the buildings benefit the users, but the building process itself gives workers a solid job for several months, and the expenditures from the construction project go directly into the local economy.

The United States is second in the world in terms of this construction, regardless of where the company doing the building is headquartered. As much as 10% of all commercial construction takes place in the US, and New York is the city with the most commercial construction going on - $8.5 billion (that's billion with a B) in 2013. A lot of the construction was for residential buildings. Following New York were Houston and Dallas. Those two cities spent $10 billion in 2013 on commercial projects. 

One of the biggest trends in commercial construction is green building. Experts from the Environmental Protection Agency expect that by 2017 as much as 48% of new building will be done with green building materials. To put that in financial terms, it could mean as much as $145 billion dollars.

By 2018, 84% of residential construction companies plan to have at least some of their construction projects classified as green. To get an idea of just what kind of impact this has on the overall economy, consider that residential projects total as much as 5% of the current gross domestic product of the US. As more and more firms add green building to their plans, it might mean that as much as 18% of GDP will be based around green construction.

Big commercial office buildings are going green, too. LEED certification is becoming the main standard, and builders are up to 41% green as of 2012. Just how rapidly is this growing? Consider that only 2% of commercial construction, non-residential, projects were green in 2005. It's no surprise that states like Hawaii and California are leading the way in LEED projects.

It's not just the US that is interested in green construction, though. LEED certifications around the world are becoming more common. A study released earlier this year showed that as many as 69,000 LEED projects are going on globally in 150 different countries.

This construction is as important to the global economy as it has ever been, and the increases in such projects over the last few years signal a positive change after the worldwide recession of 2008-09 and the soft recovery that followed. With even more green projects being planned than ever before, commercial construction projects will also be kinder to the planet, meaning everyone will benefit for years to come.

Real Estate Prospecting Calls - Getting Conversions

Finding leads and actually converting them into legitimate appointments is one of the most difficult parts of the job for a real estate agent. There are a number of ways that they can go about advertising their services, with the particularly proactive choosing to undertake prospecting calls in the hopes of bringing a potential client on board or at least getting them face-to-face for a conversation.

However, there is a fine line between making such tactics a success and simply coming off as an annoyance to the people that you are calling. It's a difficult balance, so be sure to follow these tips to make sure your call campaign gets off to the right start.

Be Legal

The very first thing that any cold calling campaign needs to ensure is that it is operating within the confines of the law. That means obtaining data from legitimate sources and only calling numbers that are listed as being willing to accept calls from businesses.

Always respect the call receiver's wishes. If they ask to be removed from your database or for you to not call them again, this is not a sign to be more persistent. After all, they have legal recourse to take if you keep harassing them.

Get The Right Script

There is no point going into a prospecting call without any idea of what you are going to say. It will make you sound unprofessional and reactionary when you should be aiming to impress the receiver as quickly as possible in an effort to hook them in and get them interested in the service that you have to offer.

As such, you should have a tight script for each type of prospect that you might call, which delivers the important information quickly and effectively without sounding too over-the-top or salesly. Practice the script and you will build confidence, which in turn will allow you to deviate from the script if needed.

Confidence

Speaking of confidence, it is most certainly needed if you are going to be calling prospects that you have never met before with a view to advertising your services. Your tone needs to be inviting and you have to know what you are talking about and be able to answer any questions thrown your way.

If you can't show confidence in what you are calling about then the receiver simply isn't going to be able to show confidence in you. Know the subject area and be willing to answer questions. As one final tip, if you don't know an answer be sure not to lie to the customer. Instead, be honest with them and tell them you will do everything you can to find out for them.

Pick Your Battles

Certain prospects have a better chance of converting into an appointment than others, so it is important to pick and choose carefully to get the best conversion rate.

Those whose listing have recently expired and people who are trying to sell the property on their own are usually good first choices, as both are actively trying to sell their home and thus have reason to listen to anybody who could make that easier.