Ask Tony's Blog

Reality of Real Estate (2008) Novel Idea? Part 17

Dr. Anthony G. Ziagos, Sr. (Middlesex Properties ~ IRP) — Wed, 11 Feb 2009 14:27:51 -0600

Reality of Real Estate Novel Idea? Part 17 Merrimack JOurnal January 2008

Dr. Anthony G Ziagos, Sr.

I had a conversation recently with another real estate professional and I began to think about what we were discussing. I called a few mortgage lenders and asked their opinion of our conversation. I then called a few real estate appraisers and asked for their opinion. We all arrived at the same conclusion. Our consensus would provide a real solution to avoid a reoccurred of the sub-prime mortgage dilemma. Only lend money to qualified buyers. AMAZING !!!

With just a few telephone calls and a moderate amount of discussion we could save the world!! It is my understanding that most local lenders always had funds available for qualified borrowers and still do. We have also learned that part of the problem might have occurred due to wall street investors willing to risk funds into a high yield,high risk lending pool that did not work out the way the wanted it to. Upon further investigation we have learned borrowers who could not afford to buy property were given mortgages that would "adjust" and neither the lenders or the borrowers paid attention to the disclaimers or the potential for problems disclosed in the mortgage instruments. Is it also possible someone was not totally honest when they filled out the paper work? <look of horror on the writers face>. Oh my !!

Thousands of hard working families will continue to work hard and sacrifice to keep their payments current. Some honest hard working people will be hurt by the economic downturn, as they are in every economic cycle. It is truly unfortunate that people are in this situation. It is our opinion, however, that neither the government nor the tax payers should bail out an investor or a borrower due to their lack of good judgment. ©2008 Middlesex Media Exchange/ All Rights Reserved

Qualified Expert Witness with 30 years experience

All Judicial Matters involving Real Estate ~ Transaction Structuring and Opinion of Value.

Real Estate Counseling, Educational Opportunities ~ Seminars and Lectures Full Day & ½ day

visit our web site: www.Middlesex1031.com

Reality of Real Estate (2007) Bid & Asked Part 11

Dr. Anthony G. Ziagos, Sr. (Middlesex Properties ~ IRP) — Wed, 11 Feb 2009 14:22:25 -0600

Reality of Real Estate Bid and Asked Part 11 Merrimack Journal July 2007

Dr. Anthony G Ziagos, Sr.

Anyone who has invested in the stock market understands the concept of Bid and Asked. Supply and demand determines the price of anything of value. The value of Real Estate like Stocks and Bonds fluctuate with supply and demand. The Asked price of real estate is the perceived value of the seller and what they want in exchange for their property. This perceived value may be real or just something that sellers imagine based on their own preference. The Bid price is what is offered by a buyer who is willing to invest their resources in exchange for real property. Circumstance will determine if a buyer will pay more or less than an appraised value or what a seller is asking. The price is also influenced by the terms of the sale or if a seller is willing to share the risk associated with uncertain or unknown factors regarding the property. What makes real estate different than stocks and bonds, very little. Each one has an opportunity cost or "holding cost" depending on the situation. Usually holding real estate cost more than paper securities, however, the potential gain, short term or long term may outweigh the cost. The "unknown factor" is the gamble. Without a crystal ball, flippers, speculators, and investors always face a risk when buying real estate. Like any other investment, there is risk and reward. If you HAVE to sell, you get what the market offers. When a seller and a buyer cannot agree there is no transaction. Over supply of sellers willing to exchange real estate for dollars and lack of demand from buyers is what we are faced with in the current market situation. Transactions are made when two people agree based on their circumstance and minimizing unknown factors.

Here are two real life examples of current market situations. Both properties need work to move in. Property A is asking $325,000 for appraised property. Buyers 1, offered 260,000, buyer 2 offered 275,000 and buyer 3 offered 265,000. Seller said no to each one without a counter offer or reason. It appears they want to own this property for a long time, costing them $3,500 per month to carry.

Seller B is asking $225,000 for city property. Buyer offers $150,000 and seller counters at $190,000 they are still talking but not close enough for a transaction yet. Seller B appears to be more in touch with reality.

Based on the current market conditions there is a lack of demand for property at current asking prices. Appraisers appear to be at odds with buyers, sellers and lenders. A lack of understanding of the economics of the real estate market, the result slowdown in the overall economic landscape is further exacerbated by inaccurate interpretation of market conditions and economic reality of the marketplace.

Perhaps price is not the problem with the transaction? Maybe terms and conditions make it difficult for either party to accept an offer? High asking prices could be accepted if buyer and seller were to agree on terms and conditions that take into account uncertainty of the market and minimizing unknown factors. Again, write the offer and start negotiating a transaction.©2007 Middlesex Media Exchange/ All Rights Reserved

Qualified Expert Witness with 30 years experience

All Judicial Matters involving Real Estate ~ Transaction Structuring and Opinion of Value.

Real Estate Counseling, Educational Opportunities ~ Seminars and Lectures Full Day & ½ day

visit our web site: www.Middlesex1031.com

Reality of Real Estate Opportunity Part 18

Dr. Anthony G. Ziagos, Sr. (Middlesex Properties ~ IRP) — Fri, 06 Feb 2009 14:29:39 -0600

Opportunity Merrimack Journal April 2008

Opportunity

Dr. Anthony G Ziagos, Sr.

Opportunity is the key word today in the current real estate environment. For the last 18 months we have been offering our readers knowledge and information on how to help them navigate through the current sea of turmoil.

As a real estate professional I am distressed to see all the negative and misleading information that is circulating in the main stream media. Here are some reality of real estate facts. Qualified buyers can ALWAYS obtain funding to purchase or refinance real estate. People who write offers get to buy real estate. Property that offers good value to a buyer will ALWAYS sell. Market conditions in Arizona and California are not necessarily the same or relevant to what is going on in New England. Of course there are many more reality checks than these, however, a buyer or seller must work with a qualified professional to determine the "circumstance" and only then can they offer solutions that are right for you.

Buyers who are actively seeking real estate opportunities do not see a distressed market, they see an opportunity to purchase property at great prices. Lease rates have dropped in the last year offering tenants an opportunity to save money. Despite the lack of appreciation in the last few years property is still being offered for sale and transactions are closing every day. Over the long run real estate is one of the best investments you can make. Consult with a real estate professional so you can take advantage of opportunities in todays market. ©2008 Middlesex Media Exchange

Qualified Expert Witness with 30 years experience

All Judicial Matters involving Real Estate ~ Transaction Structuring and Opinion of Value.

Real Estate Counseling, Educational Opportunities ~ Seminars and Lectures Full Day & ½ day

visit our web site: www.Middlesex1031.com

Reality of Real Estate BUY BUY BUY !!! Part 20

Dr. Anthony G. Ziagos, Sr. (Middlesex Properties ~ IRP) — Fri, 06 Feb 2009 14:24:02 -0600

Reality of Real Estate Part 20 BUY BUY BUY Merrimack Journal January 2009

BUY BUY BUY

Dr. Anthony G Ziagos, Sr.

Now is the time, this is the place BUY BUY BUY. Real Estate offers great value if you buy it right. Make your profit when you buy rather than waiting for a sale. In all likelihood, it may not get much better. Any further declines will be marginal at best over the next six to twelve months. Favorable interest rates, under 5%, indicate the time to buy a home or invest in a single family house for income and future growth is right now. We made this recommendation in September of 2007 and we continue to see excellent values and financial packages that make economic sense. The decline in values since September would have been offset by income generated and excellent posture for future refinance given continuation of attractive rates. Qualified buyers will experience an advantage in current economic environment. Lease with an option to buy is another strategy that will yield great dividends.

When the real estate market price curve intersects with the rental market rate curve it signals an open window to buy real estate. EVERYONE has to rent or live somewhere. This article is not intended as legal or accounting advise, however with the guidance of a real estate professional, you can determine where to buy or what strategy to use that best suits your situation. It is a signal to act before its too late. When rental prices are greater than the cost of owning a home it is time to BUY BUY BUY. Any further declines in interest or property prices will not effect the mechanics of a transaction. When the world wakes up, it will be too late and prices will begin to climb once again and the cycle will continue.

Interest rates should be available, in the 4.5% range, and the cost of an average house in many cities and towns is below rental market rates. House sharing can work for many families and at less than $1000 per month anyone who wants to own should be able to own.

Qualified Expert Witness with 30 years experience

All Judicial Matters involving Real Estate ~ Transaction Structuring and Opinion of Value.

Real Estate Counseling, Educational Opportunities ~ Seminars and Lectures Full Day & ½ day

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Blogging for Talent

Dr. Anthony G. Ziagos, Sr. (Middlesex Properties ~ IRP) — Thu, 02 Oct 2008 14:23:40 -0500

Dr. Anthony G Ziagos,Sr. for International Realty Plus

Fort Apache, AZ Talented people never go out of style. The economic situation in the real estate market has caused many brokers and salespeople to evaluate their career opportunities. A professional who understand the real estate market knows that in the long run they will succeed. This cycle has been a bit more of a challenge than the last few we saw in the early 90's and even before that the late 70's when interest rates were above 16% (Can you even imagine that!). Real Estate professionals learn and understand what drives the market and how to use that market force to your advantage. Form fillers, Order takers and phone watchers will fail and move on to what is heralded as the next get rich opportunity.

Those who succeed in real estate market can succeed anywhere by following principals of success. These are the people we are looking for. Stay in real estate, expand your earning potential and share your talent by offering franchise opportunity in your market. Paul Tatham established International Realty Plus in 1994 and is ready to expand again. Veterans of the real estate industry will remember all the flash and growth surrounding the establishment of a new franchise into a market when it was just "another idea". Paul has created a franchise that will help you and your associates grow into the next decade. We all realize how the Internet has changed real estate industry forever. To keep pace with changes in the industry new ideas and a restructuring of the real estate office is the next frontier.

"Jump on the train before it roars our of the station." If you want to improve your own business model, help others compete in the new real estate environment, or just generate a new revenue stream, several State and Regional territories are still available. Call Paul Tatham TODAY, 1-800-FOR-SOLD (800-367-7653) or E-mail tatham@iirp.com. In addition to franchise opportunities, Paul is looking for Area and State Directors. "Border to Border and Beyond"^TM

Solution for Foreclosure Stampede

Dr. Anthony G. Ziagos, Sr. (Middlesex Properties ~ IRP) — Mon, 16 Jun 2008 14:04:38 -0500

Opinion News Service June 12^th, 2008 Merrimack Journal Reality of Real Estate

Solution for Foreclosure Stampede

Dr. Anthony G Ziagos, Sr.

Any Government participation in a Bailout Program for mortgage lenders facing high foreclosure rates in our opinion is a slap in face of every hard working person who struggles to pay their mortgage on time and sacrifices to do so. Economic down turn affects everyone in this country. We ALL have to make tough decisions and decide to have one item or another but not both. Two scoops or one or maybe none this week. Hard working people will suffer through no fault of their own. Others, who bit off more than they could chew will lose out also, and rightfully so.

In every industry there are those who take advantage of the weak, and walk a fine line between fraud and a legal hustle. You can never pass enough legislation or industry rules to protect the consumer against their own bad judgments. No matter how good the sales talk is, at some point, the buyer has to bear some responsibility for their actions.

In our opinion, the only logical step for the government to consider is a stop gap measure to halt any foreclosure until a hearing of the facts surrounding the loan, mortgage instrument, and pending foreclosure action can be determined. Both parties can contribute to the cost involved for a judge or magistrate and court time. If one party is found to have violated the law they can be sanctioned. A judge or arbiter can determine is short order if a foreclosure is warranted or the parties have to live within the statues of the law. Even the cost of this solution will be pale in comparison to another lender bail out at taxpayer expense.

Reality of Real Estate Two Faces of Anything Part 19

Dr. Anthony G. Ziagos, Sr. (Middlesex Properties ~ IRP) — Wed, 07 May 2008 10:07:57 -0500

Two Faces of Anything Part 19 Merrimack Journal May 2008

Dr. Anthony G Ziagos, Sr.

In the Chinese language, characters are used instead of words. To the untrained eye they appear to be complicated and difficult. To the people of China, it is normal and easy to understand. Twenty years ago, at a real estate seminar, I learned an interesting piece of information and to this day I refer back to the wisdom and diversity of that observation. The Chinese character used for the word "Crisis" and the word "Opportunity" are the same.

Observation and perception are a lot like crisis and opportunity. When you observe an event you look at it based on your perception and your values. If you do not understand the history of an event or why it occurred your view is limited and bias. You cannot see the big picture if you do not have knowledge and information about the past.

Anyone observing an auto accident can attest to this. Same accident, two witnesses, two different stories. If you own a large block of "Oil Company Stock" your view of the oil crisis is very different than someone who has to fill their tank to get to work. If you depend on dividends from a pharmaceutical company for your retirement income, you may be less aggravated about the cost of prescription medication. If you want to buy a house you are more concerned about good value and less concerned about the seller's circumstance.

During these difficult times and economic crisis, opportunities are plentiful. People who are resourceful, creative and hard working take advantage of this time to become more efficient and look for ways to conserve and make every dollar count. The lazy and unimaginative and those who prefer entitlements to work, sit and moan about how bad things have become. ©2008 Middlesex Media Exchange/ All Rights Reserved

Qualified Expert Witness with 30 years experience

All Judicial Matters involving Real Estate

Transaction Structuring and Opinion of Value.

Real Estate Counseling, Educational Opportunities

Seminars and Lectures Full Day & ½ day

visit our web site:

www.Middlesex1031.com

What's it Worth?

Dr. Anthony G. Ziagos, Sr. (Middlesex Properties ~ IRP) — Wed, 12 Dec 2007 09:40:51 -0600

Use this article to help get that giant commercial listing that needs experience and other players to close.

What's it worth?

Dr. Anthony G Ziagos, Sr.

The answer is not so simple. Just ask George Tournas of Red Stripe Inc.. With over thirty years of experience, his answer is always the same, to whom?

The popular PBS television show "Antiques Road Show" has made the public aware of the potential value of merchandise. While this particular show deals with antiques and personal property, the current economy and tight credit markets make business owners more sensitive to the value of their machines, their manufacturing equipment and the value of their business as a whole. Documented valuation is important for Personal Property Taxes, Lines of Credit, Estate Valuations, Tax Write Down and Liquidation. This is just a few examples of what George does for the business community. Knowledge and information is the key to preventing a costly mistake in both the commercial sector as well as the private sector.

Red Stripe looks at what you have, compares your equipment or business with sales records and auction data of what has recently sold across the country. They then analyze the in place value or "quick sale" scenario and provide you with documented valuation that your banker, lawyer accountant or the business owner can rely on to determine "What's it Worth". For more information contact george@redstripeinc.com

This article originally appeared in the December 2007 Edition of the Merrimack Journal.

Reality of Real Estate (c) 2007 Auction or One Hand Tied Part 15

Dr. Anthony G. Ziagos, Sr. (Middlesex Properties ~ IRP) — Mon, 22 Oct 2007 13:52:45 -0500

October, 2007 Part 15 Auction or one hand tied? Merrimack Journal

Reality of Real Estate Auction or One Hand Tied? Part 15

Dr. Anthony G Ziagos, Sr.

There has been much reported main stream media about rise in foreclosures. The foreclosure process occurs when a debtor fails to honor their commitment to a lender. The lender must protect their financial interest and the collateral that was pledged for a loan. Terms and conditions of a loan are spelled out in advance as well as default and recovery procedure. There are numerous options prior to Auction of property that can be considered. If lender and borrower cannot agree on a resolution, property is auctioned off to the highest bidder. Despite every effort that a lender and borrower make an auction sale may be the only resolution. Auctions do not necessarily mean distress sale. In Massachusetts the regulations and rules that must be followed are very specific and designed to prevent errors during a stressful time.

I can tell you from experience, sometime the rules get in the way of resolving the issues. No one can blame anyone for protecting their rights. Every auction presents its own set of circumstances that may or may not contribute to the desired result. Mortgage holders refuse settlement offers in hopes of getter a higher bid an auction. Sellers may or may not cooperate during the sale procedure. Due diligence and "AS-IS" are frightening concepts for most buyers. Cash requirement is the biggest hurdle to a successful auction sale. Most lenders miss out on a great opportunity to fund buyers for this type of sale.

At a recent sale the mortgage holder refused offers on a defaulted loan the the $250,000 range. After six months the property was auctioned and the mortgage holder only got $ 180,000. Another example was an auction sale, subject to confirmation, that only produced a high bid of $150,000. The lender declined to sell and subsequently resold the property for $250,000. The original asking price was closer to $300,000.

Rarely are canceled auctions reported. I have been to several sales where the mortgage holder didn't even show up for the sale or report a settlement prior to the sale date. Lenders buy back property at the auction sale to "perfect their right and title" then subsequently offer property for sale hoping to cut loses but offering a potential buyer a less complicated sale even after incurring more selling costs.

The auction process is not for the amature. Due diligence and experience is at the heart of successfully buying at auction.

Reality of Real Estate (c) 2007 BUY ! BUY!! BUY!!! Part 14

Dr. Anthony G. Ziagos, Sr. (Middlesex Properties ~ IRP) — Wed, 12 Sep 2007 11:39:44 -0500

BUY ! BUY !! BUY !!!

Dr. Anthony G Ziagos, Sr.

September 2007 is here and we are advising all of our clients to BUY BUY BUY ! The cycle has reached near bottom levels and the banking system will not allow red ink to flow much longer. When main stream media reports the market has bottomed out, it will be too late to profit from the current real estate cycle. In May of 2005 when we advised our clients to sell the philosophy was; "There is no profit until you sell." Paper profits were erased quickly and those that waited saw the real estate market prices decline as much as 25% from their peak. Real Estate is a long term investment, and it is cyclical.

It is our opinion that NOW is the time to BUY and your new philosophy should be "Make your profit when you purchase real estate not when you sell." Any further decline in real estate values will be marginal. Interest rates will decline over the next 30 to 60 days and with winter weather approaching in the Northeast sellers MUST sell or dig in for another six months.

Buyers should try to obtain extended closing dates and terms if you cannot buy at Hugh discounts. If you have cash do not be afraid of leverage in this market. The market will begin to accelerate upwards when rates drop and public perception is convinced the bottom has arrived.

As always, look for superior locations, value added projects, or expanding square footage without additional land costs.

For the more adventurous, syndicate funds with a few friends. Look at fixers and bank owned turn around transactions. Real Estate cycles and there is no profit until you sell.

Reality of Real Estate (c) 2007 What Next Part 13

Dr. Anthony G. Ziagos, Sr. (Middlesex Properties ~ IRP) — Wed, 12 Sep 2007 11:36:17 -0500

What Next? Part 13

Dr. Anthony G Ziagos, Sr.

There it is. You found the right home in the right neighborhood that appears to be what you have been searching for. What Next? After careful inspection you discover the inevitable. The property needs work. Sometime its cosmetic, (paint, wallpaper, minor decoration and cleaning). Sometime it may be repair work that is still manageable, repair of steps, new driveway, replace flooring and /or carpet, landscaping. Maybe you discover after a home inspection that major work should be done prior to moving, new furnace or boiler, window replacement, roof work, winterizing. All these are real world situations that buyers and sellers face every day. Unless you are selling an AS-IS "fixer upper" you need to consider the cost and how it impacts the value. How will your lender view these items, and more importantly; " Can you afford the down payment, closing costs AND the repairs to make your new home safe and protected from farther wear and tear."

This is where a professional real estate broker earns their fee. Structuring transactions to accommodate a buyer and a seller requires, experience, knowledge and information and the ability to mediate two parties with differing objectives. Unfortunately many brokers are just "form fillers" they have not developed the professional skills necessary to bring the parties together. When you have a seller with unrealistic expectations it is the brokers responsibility to educate the seller regarding market conditions and discuss in advance what financial options the seller will and will not consider.

Reality of Real Estate (c) 2007 Curb Appeal, Inside & Out Part 12

Dr. Anthony G. Ziagos, Sr. (Middlesex Properties ~ IRP) — Tue, 31 Jul 2007 13:01:10 -0500

August 3, 2007 Part 12 Curb Appeal Merrimack Journal

Reality of Real Estate

Curb Appeal, Inside and Out Part 12

Dr. Anthony G Ziagos, Sr.

Curb Appeal is the term used by the real estate profession to describe a property that looks appealing to a buyer when you drive up and see it for the first time. It could make the difference between a profitable real estate transaction, a low offer, or no offer at all. In many cases the look of the neighborhood is out of a seller's control. An inconsiderate neighbor can cost a seller thousands of dollars. However, the look of your property is something you can control and make a substantial difference in the curb appeal of your property. Curb appeal extends to the inside of your property also. Every buyer is not inclined or able to do renovations and upgrades to property. They must hire contractors to do most repairs and maintenance also. Busy lifestyles and/or lack of skills to renovate property can work in your favor when selling a house, and ultimately the price a buyer is willing to offer. Unless you are selling a "fixer upper" you should consider getting your house ready for a sale.

Based on the current market conditions, there are several improvements you can do that will give you a substantial yield on a small investment. Cleaning, uncluttered rooms, painting, lawn and landscape maintenance, driveway seal coating to name a few of the most popular options. Each and every one of these line items is a specialty and it is not my intention here to cover every detail. If you are not comfortable with your own ideas, call a friend or a decorator for a few tips. An entire cottage industry has grown out of home staging and decorating for resale. Everyone's taste is different so keep to neutral changes. Professional outside lawn maintenance can improve your bottom line by thousands.

After showing hundreds of houses, you begin to hear the same comments being made by buyers over and over again. A cluttered house makes your rooms appear smaller. Unnecessary or unused furniture should be placed in storage. Since you are moving anyway, start to sort out what you want and what you plan to dispose of. Replace items that appear to be "shop worn". Have your floors cleaned and polished. Be certain to wash all the windows inside and out. Let plenty of light into your home to give a bright and open feeling to your property. Replace worn carpet or have it cleaned.

Get it ready to sell and start negotiating a transaction.

Reality of Real Estate (c) 2007 Write the Offer Part 9

Dr. Anthony G. Ziagos, Sr. (Middlesex Properties ~ IRP) — Tue, 31 Jul 2007 12:58:55 -0500

NOTE: May SE, 2007 Merrimack Journal Publications

Reality of Real Estate

Write the Offer Part 9

There are several reasons for a buyer to write an offer. First and most important an offer brings the parties to the table to negotiate a price, terms and conditions for a transaction. Secondly, each party in the transaction can share information that might help to understand each parties "circumstance". Thirdly, you have an opportunity to point out your observations and concerns about the property and determine the needs of the parties so a transaction can be structured to benefit both parties. Forth, it can be determined if a transaction is not possible due to demands of one or both parties.

A major part of the brokers responsibility is to encourage their client to write an offer. Without this step in the transaction process you will never have the opportunity to help your client, either the buyer or the seller, achieve their goals and objectives in the real estate market. Since buyers and sellers have different objectives, negotiating the final price of a property is just one piece to the puzzle. Inspection and research of the property, (due diligence), timing of the closing, appraisal, financing terms and conditions also play a role in structuring a transaction.

If the listing broker, representing the seller, does a complete and thorough job of documenting the property, the purchasing process can be expedited quickly and efficiently. If the buyer's broker or real estate counselor has advised his client, the buyer, correctly, they are prepared to close the transaction without unnecessary delays once a price has been agreed upon. Third party documentation and verification always delay the process. "A property properly listed is half sold.", a valuable lesson in today's market. No offer can every be written without verification of market conditions, and accurate information regarding the property being offered.

Price negotiation is a delicate dance buyer and seller engage in when purchasing anything of value they desire. Major purchases including real estate, automobiles, boats, major appliances, and expensive jewelry are usually at the top of the negotiation list. Of these items, real estate transaction especially is influenced or assisted by third parties, since so much is at stake. Without an offer the dialog cannot begin.

The reality of any real estate market is always tempered by, "the circumstance of the buyer and the circumstance of the seller." It is not the brokers' responsibility to decide for anyone what the right price should be. A professional broker along with their client's other professionals team, advise market conditions to help their client, the buyer or the seller, determine based on their circumstance, what price will satisfy all parties concerned. Brokers are obligated by law to present all offers. No transaction or negotiation can begin unless you write an offer.

Reality of Real Estate (c)2007 Appraisal, Assessment, Opinion Part 10

Dr. Anthony G. Ziagos, Sr. (Middlesex Properties ~ IRP) — Fri, 08 Jun 2007 08:48:24 -0500

Note: June 7. 2007 Merrimack Journal Publications

Appraisal, Assessment, Opinion! Part 10

Dr. Anthony G Ziagos, Sr.

The public is often confused or misled regarding the definition of the three most often used terms in real estate valuation field. Each one has a distinct and specific meaning and should not be interchanged. Each approach to valuation is based on different criteria designed to accomplish different objectives. Each approach to valuation has components of fact, historic basis and opinion. As we examine each approach you can see the difference and it's impact on the buyer and the seller.

Broker Price Opinion (BPO) or Competitive Market Analysis (CMA) This valuation approach is strictly an opinion of the real estate person preparing the report. The information is typically obtained from in-house statistics compiled by a broker or salesperson who may be well seasoned or a beginner. You cannot borrow money based on this report and it is used primarily as a listing tool or a guide to decision making. The document normally has no legal ramifications. They are provided at no charge or for a nominal fee.

Assessment An Assessment is the valuation of your property used by municipal government. When tax rate has been established and certified by each City and Town the Assessors then determine the amount of your real estate taxes by multiplying the tax rate times your Assessment. By definition in accordance with statue law it should reflect "cash price a property will bring if offered for sale in a free market given a willing buyer and willing seller". This valuation must be certified by your state every time a new valuation occurs. Most cities and towns use a computer generated model based on historic sales data, market information, and guidelines established by law. An outside vendor usually provides this service. Your Assessment has legal ramifications and must be defended in court if challenged. There are many laws which govern and effect how Assessors can treat property, when and how often assessments can be done, and rights of the owner to dispute assessments. Historically, Assessments usually fall just below "fair market value". Because of the large number of properties in a given city or town there are always a few property assessments that are either too high or too low. Don't be surprised when you see this discrepancy. You have the right to file an appeal with the assessor. Assessments are not usually effected by short term market conditions.

Appraisal An appraisal is a legal document usually provided by a licensed professional who is train in the art and science of valuation. You can borrow money based on this document, you can settle legal disputes in court, you can rely on this information to make important decisions. Most appraisals are prepared based on "fair market value". By definition, "a willing buyer and a willing seller under no adverse conditions". There are three parts to an appraisal each effecting the final outcome. Replacement cost, Comparable Sales, and Depreciated Valuation of the property. However, you must apply "circumstance" in todays market to determine a final transaction price. Real estate transactions are based on a balance between the art and the science of valuation. Opinion of the professional drafting the information at that given time and at that given place can change rapidly due to market conditions, availability of lender financing and circumstance of a buyer or the seller. An appraisal prepared by a licensed professional has responsibility and must be defended in a legal depute. When determining valuation only a written appraisal by a professional can be relied upon with certainty to accurately report the on the property as it exists, replacement cost based on local conditions, historic data of the comparable, and the price per square foot of previously sold properties.

When buying or selling any property the first piece of information you should have is an appraisal. This document will tell you the facts about the property and with the help of a professional broker or real estate counselor you can interpret market conditions to help you decide whether to buy sell or hold! It's your move. ©2007 Middlesex Media Exchange/All Rights Reserved

Qualified Expert Witness with 30 years experience

All Judicial Matters involving Real Estate

Transaction Structuring and Opinion of Value.

Real Estate Counseling, Educational Opportunities

Seminars and Lectures Full Day & ½ day

Visit our web site: ~ www.Middlesex1031.com

Reality of Real Estate (c) Cost of an Unsold House Part 8

Dr. Anthony G. Ziagos, Sr. (Middlesex Properties ~ IRP) — Fri, 04 May 2007 13:21:41 -0500

Cost of an unsold house

Dr. Anthony G Ziagos, Sr.

Unsold houses cost sellers thousands of dollars per month. Gambling on the economy will not give you much better odds than the casino industry. The ideal situation would be a crystal ball but mine broke several years ago and since then I have had trouble predicting the future. The best I can offer is an educated opinion based on thirty five years of market study and analysis.

I cannot emphasize enough the value of having an appraisal done before listing your property for sale. Appraisals provide two important functions. First they verfiy and document your building and property dimentions. This allows your broker to list your property with accurate facts and information. Secondly, an appraisal allows you to have a good idea of the value of your property given today's market condition. With the help of a real estate professional you can interpret the appraisal calculations and determine how they apply to your "circumstance". Final sale price of real estate can be effected by so many factors. The appraisal ,however, gives you a figure to start your negotiations with and raise or lower the asking price depending on your particular objectives and "circumstance".

Lets look at an example. Seller A has a house worth $300,000 that he wants to sell. What is the monthly cost of holding this property?

6% yield on $300,000 value equals $1,500.00 per month

taxes $300.00 per month

insurance $100.00 per month

utilites $100.00 per month

maintenance & upkeep $150.00 per month

TOTAL $2,150.00 per month

How can this be? If the house is unsold or empty for six months this amounts to $12,900.00 WOW !!! Almost as much as a 5% discount if you sold the house right away! Your particular figures may vary slightly but the formula is still the same. An unsold asset produces no income or benefit in a flat or down market. Any property can be sold in less than 30 days. The issue always becomes percieved value of the buyer, what are the other options are available, and how much of a discount will the seller have to give to sell for cash TODAY?

Determine what the current condition of the financial marketplace and interest rates are for a qualified buyer. Look at the rental market for a comparable property and compare rents and mortage payments. The numbers have to work. Whenever you convert an asset to cash, there is a cost for the transaction. What happens when you cash in a CD before it matures? The same thing when you have to sell a house before the market is ready. You pay a penelty.

Aside from the financial loss, what will make your property desireable among so many others for sale in a flat market? If there are more sellers than buyers you have to take a hard look at what a buyer considers "value". A smart buyer is not emotionally attached to a real estate property. Your circumstance will determine who makes a profit, you or the buyer. It's your choice.

Reality of Real Estate (c) 2007 Ten Strategies for Today's Real Estate Market Part 7

Dr. Anthony G. Ziagos, Sr. (Middlesex Properties ~ IRP) — Wed, 11 Apr 2007 10:13:35 -0500

Note: April 5th,2007 Edition Merrimack Journal Publications

Reality of Estate (part 7)

Ten Strategies for Todays Real Estate Market

Knowledge and information will give you advantage in buying or selling real estate. Do your homework.
Interview several real estate professionals and find the right fit to help you with your transaction. Brokers representing sellers do not represent buyers. Hire your own broker to represent your interest in the transaction.
If you are selling get an appraisal BEFORE you list your property. This information will help you determine if you are ready to sell and how attractive your property will be to a potential buyer compared with other property already sold or on the market.
If you are a buyer get pre approved by your lender BEFORE you shop for a property. Let your broker and seller know you are pre qualified and serious about a transaction. Discuss your financial situation with your accountant or other qualified professional to determine not only what you are qualified for but what you are comfortable with. Your accountant will help you determine tax advantages and other strategies best suited for you.
Real Estate professional time is valuable. Think about what you want before you "drive around" looking at houses.
If you are a seller, ask your broker or home stager what you need to do to prepare your house for sale to maximise value. A good broker will help you prepare your property for sale to maximize "curb appeal" and obtain the highest value in a transaction.
If you are buying or selling and find yourself in a rut, seek the advise of a real estate counselor to work with you and your broker if necessary to resolve questions and provide information to help you structure a transaction that will work.
Minimize emotional factor when you buy or sell. It's the steak not the sizzle.
Look at the property potential not what is there now. Use your imagination to see a new kitchen or an added family room. If the property can be expanded you can add value to the property and profit when you resell or refinance.
Final sale price of a property is always effected by CIRCUMSTANCE. Appraisal value by definition indicate a willing buyer and a willing seller, neither under any pressure to execute a transaction. When one party has to sell or buy due to CIRCUMSTANCE, the final price may be higher or lower than the appraised value. ©2007 Middlesex Media Exchange/ All Rights Reserved

Reality of Real Estate (c) 2007 Supply & Demand Part 6

Dr. Anthony G. Ziagos, Sr. (Middlesex Properties ~ IRP) — Thu, 08 Mar 2007 16:19:02 -0600

Note: March 8, 2007 Edition Merrimack Journal Publications

Reality of Real Estate . . . Supply & Demand

Dr. Anthony G Ziagos, Sr.

Three major factors adversely impact the sale of real estate. Supply & Demand, uneducated seller, inexperienced broker. Supply and demand is the harsh reality of todays residential real estate market. Demand reflects buyers perception of stable economy and affordability. Over Supply (lack of demand) is created by seller perception that cash yeild is maximized. Actual physical inventory varies very little. It is the desire to sell that creates larger inventories and longer marketing time (days on market). Demand is measured by units sold.

This simple yet classic economic model drives the market and determines buyer and seller motivation. Real estate is and always will be a secure and liquid investment, however, the market is subject to short term fluctuations of supply and demand or should we say the perception of factors that determine supply and demand. The real estate market reacts like the stock market. You can buy and sell stock everyday of the week based on current market conditions and settle for cash in short period of time. The real estate market mirrors this activity. You can sell or auction off a property any day of the week and settle for cash in a short period of time. Like the stock market the demand and supply of houses on that day determine market conditions and subsequently what a buyer is willing to pay for a property.

If a stock price is not what you want it to be you cannot force the market. You can either wait, or settle for what the market will bear. This point is often lost in a real estate transaction. An uneducated seller and an inexperienced broker stumble through a transaction hoping to get what they want without stopping to think about the dynamics of the market. Most real estate by its nature is a long term investment not designed to be bought and sold like a commodity. Buyer, seller and broker need to take necessary steps to increase their chances of closing a sale in todays market.

Knowledge and information are a top priority for both seller and broker in a over supply market. The educated guess of a broker in determining value is only as good as the brokers professional experience and ability. An appraisal done by a qualified and licensed professional is the ONLY way to effect a real estate loan from a conventional lender. This must be done BEFORE you list your property. Most brokers are not prepared to guarantee their opinion of value and I do not know of any conventional lender who will loan money on real estate based on the guarantee of a broker opinion unless the loan to value is about 50%.

The point here is simple. Any qualified broker will request a buyer get pre-quailified before they shop for a property. It makes sense to get an appraisal of your property by a qualified appraiser BEFORE you list your house for sale and avoid adversarial position with your broker. Circumstances of the seller or favorable terms will determine whether a reduction or premium may be warranted. A Broker can provide a valuable professional service in your real estate transaction, however, other qualified professionals are necessary to complete the transaction are appraisers, accountants, attorneys, and lender.

What distinguishes your property for sale among the over supply that exsist? A Seller is looking to maximise their yeild. A well listed property prepared for sale is half sold. Again, knowledge and information should be a top priority for a seller. Make sure your listing is detailed and complete. List ALL upgrades and unique features your house has to offer. Offering good value and a property that shows well will increase your chances of closing a sale. Staging has become a popular way to entice a buyer to look at the potential of a home. Buyer incentives are another good way to make your property more attractive to a buyer. Automobiles and trips are common incentives in todays environmentt. Proceed with caution however not to violate disclosure laws.

Supply and demand will ALWAYS determin market conditions. Seller should make every effort to place your property in favorable situation to maximize the efficiency of your transaction.

Qualified Expert Witness with 30 years experience

All Judicial Matters involving Real Estate

Transaction Structuring and Opinion of Value.

Real Estate Counseling, Educational Opportunitites

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News and Information

Dr. Anthony G. Ziagos, Sr. (Middlesex Properties ~ IRP) — Fri, 23 Feb 2007 11:53:05 -0600

The Merrimack Journal is a Community Newspaper delivered to 15 suburban communities that will give you the flavor of Middlesex County and the cities and towns located here in Northern Massachusetts along the New Hampshire Border. Feature articles discuss Bird Watching, Gardening, Real Estate, Health and Fitness and tell the stories of people who work and live in our communities

News and Information

Dr. Anthony G. Ziagos, Sr. (Middlesex Properties ~ IRP) — Fri, 23 Feb 2007 11:50:44 -0600

News & Information

Dr. Anthony G. Ziagos, Sr. (Middlesex Properties ~ IRP) — Fri, 23 Feb 2007 11:48:39 -0600

News & Information

Dr. Anthony G. Ziagos, Sr. (Middlesex Properties ~ IRP) — Fri, 23 Feb 2007 11:46:16 -0600

News and Information

Dr. Anthony G. Ziagos, Sr. (Middlesex Properties ~ IRP) — Fri, 16 Feb 2007 09:08:53 -0600

News and Information

Dr. Anthony G. Ziagos, Sr. (Middlesex Properties ~ IRP) — Fri, 16 Feb 2007 08:58:51 -0600

Reality of Real Estate (c) 2006 Buying Single Family House Part 5

Dr. Anthony G. Ziagos, Sr. (Middlesex Properties ~ IRP) — Tue, 13 Feb 2007 11:46:41 -0600

NOTE: February 8, 2007 Edition Merrimack Journal Publications

Buying a Single Family House

Dr. Anthony G Ziagos, Sr.

Single family home is more than likely the largest single purchase you will make in your life time. Historically, property values have always grown. I believe you would be hard pressed to show even one example of long term real estate decline. In my opinion, it is probibly the best investment you will ever make. It has consistently out paced most other forms of savings and investment. However, investing in real estate is not the same as buying a home. The biggest mistake most people make is trying to use one property as a home and an investment vehicle. Most people use a house for both purposes but the objective of home ownership and an investment yield often compete with one another. Tax advantages, utilitarian benefit, investment objectives all must be considerd when buying a house and you must understand these objectives are not the same for everyone or every property.

In my 1988 market letter; "Invest now the Market is Terrific" we discussed the four things you need to invest in real estate. Almost twenty years later time has proven the theory to be correct and it holds true in todays economy. The secret to a successful real estate transaction in this type of market is to think outside the box. Follow basic principals of Real Estate 101 and then start to write offers. Don't allow the myths of the real estate marketplace to cloud your judgement. Circustance of the seller along with talents of your real estate counselor often determine whether a transaction will work or not. Always remember: "Cash is helpful but not necessary to buy real estate."

When structuring a transaction consider the following guidelines. (1) You have to live somewhere. Shelter is a basic need for everyone. Consider what you can afford and use this as a starting point for any financial decision you make regarding real estate. (2) Consider what the tax implications might be if you purchase a property. The payments in the first few years of any real estate purchase is mostly interest. This may be tax deductable and the savings might be enough to make a difference when considering what you can afford. (3) Some buyers use their home as a forced savings account. Building equity for future use may offor you a solution to structring a transaction allowing you buy a home. (4) If you are handy and want a part time job consider rehab or upgrading a property. Plan to restructure your loan in the near future to take advantage of the time and talent you invested in your property in place of a large down payment.

If buying a single family is not right for you today. Consider purchasing a multi family housing as a stepping stone. The property can be placed in property management freeing you from the headaches of day to day upkeep. You become just another tenanct and let a third party manage and collect the rents. Building equity and steady flow of income will help you purchase another piece of property at a later date.

There are as many solutions as there are properties for sale. Finding good value in a real estate transaction is hard work requiring skill and commitment. Find a professional to work with and write lots of offers. "This article is not inteded as leagal advise. When purchasing Real Estate or any other equity please seek professional advise and counsel of an attorney, accountant and real estate professional.

Qualified Expert Witness with 30 years experience

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Reality of Real Estate (C) 2006 "Invest Now the Market is Terrific" Part 4

Dr. Anthony G. Ziagos, Sr. (Middlesex Properties ~ IRP) — Tue, 13 Feb 2007 11:41:21 -0600

NOTE: January 11, 2007 Edition Merrimack Journal Publications

Reality of Real Estate "Invest now the Market is Terrific"

By Dr. Anthony G Ziagos, Sr.

The seller's market was vibrant and prosperous. For the last several years we saw financial gains for home owners fueled by low interest rates, high unemployment and optimism. For those who traded up and preserved their equity, you have a nest egg for the future. At the end of 2006 mortgage underwriting is still at a record high. Does this mean more sales or refinancing to fuel spending? For those of you who remortgaged and tried to keep up with the "Joneses" the bill is now due. Higher interest rates, softer demand, and lack of confidence in the economy all contribute to the current soft real estate cycle. The buyer's market has once again emerged. The Chinese's understanding of human nature use the same character (sic) word for crisis and opportunity. What side of the fence are you on? Buyers now can enjoy the same advantages that sellers had for the last several years. If you study the market carefully and follow sound principals of Real Estate 101, you can engineer a successful transaction.

Now is the time to shop around for good values in real estate. Just as sellers took advantage of the buyers' demand for housing, the buyer now can negotiate with a seller given the abundance of housing supply in need of sale. Real estate experts have always known about the "hidden marketplace". A qualified real estate counselor knows how to use "circumstance" to their advantage. Anyone with stable income can look for an opportunity in today's marketplace and take advantage of the buyer's market. If you have recently sold property and have access to cash and credit lines, you can make a profit when you purchase.

Here are some strategies you may want to consider: Consult with a real estate professional to determine your potential and establish economic parameters as a "qualified buyer" ready to purchase. Even if you do have a down payment or cash, you may be qualified for a lease option or partnership program with an investor. Look beyond what is offered for sale and determine the potential for expansion or remodeling. While brokers and sellers set asking prices for property only qualified and licensed appraisers determine final value of property. You cannot borrow money or mortgage property based on the seller's asking price or a broker's opinion. Look at lots of property and "write offers" that fit YOUR "circumstance", ability and comfort level. If you have an expert in your corner, you may want to look at foreclosure auctions. This is not for an amateur or someone that does not understand the real estate process. This strategy offers great rewards but equally has great risk. Proceed with caution.

Structuring a transaction that suits your needs and your economic comfort level requires an understanding of the marketplace and a plan of action. Always remember the listing broker represents the seller's interest in the transaction and the buyer has a right to have their own professional represent them to protect their interest in a transaction. Fees for professional services of any real estate professional, counselor, or broker for the buyer or the seller are negotiable and are determined in advance. The fees are paid from the proceeds of the transaction and documented in the terms set forth in a Purchase and Sale Agreement. In any real estate transaction always seek the advice of an attorney, an accountant, and a real estate professional. "Invest now, the market is terrific."

Qualified Expert Witness with 30 years experience

All Judicial Matters involving Real Estate

Transaction Structuring and Opinion of Value.

Real Estate Counseling, Educational Opportunities

Seminars and Lectures Full Day & ½ day

visit our web site:

www.Middlesex1031.com