The benefits to the Buyer of the "auction" sales method include:
-Buyer knows the seller is committed to selling the property.
-Buyer has had ample time in a non-pressured environment to examine and inspect the property using whatever professional resources they see fit.
-The buyer will know the true market value of the property based on the competitive bidding he or she has engaged in.
-The long negotiation process of "offer/counter offer" is eliminated.
-Purchase terms and conditions other than price are known in advance.
-Buyers know they are competing fairly and openly with other potential buyers.
-The buyer is in control.

Buying at auction is truly an exhilarating experience. It is a fully charged and very competitive environment that is a lot of fun to be a part of. While it is true that everyone wants a good value when they purchase, the purchase process itself should also be a fun, rewarding and enjoyable process. Buying at auction pulls all of these objectives together.

The "accelerated" marketing, or "auction" method, allows the seller to rise above the clutter and grab the attention of the potential buyers. Once the buyer is aware of the property and knows the property will be sold, a genuine sense of urgency has been developed with the buyer. This sense of urgency typically creates a very competitive bidding environment either at the auction event or in the weeks leading up to the event.

Other benefits to sellers of the "auction" sales method include:
-Buyers come prepared to buy.
-Offers have fewer contingencies making for a smoother transaction.
-Quick disposal reduces long term carrying costs, including taxes, maintenance costs and utilities.
-The sales process is very transparent; thus the seller can really see the true market value for the property.
-The seller has an opportunity to sell, or at worst case, a point in which to begin a negotiation.
-By selling quicker, the seller can become a buyer with a "non-contingent" status, allowing him to become a buyer that has more leverage in the purchase of another property.
-The seller can determine the timing of the sale.

Sellers throughout the country are rapidly realizing that selling at auction is a legitimate alternative to the traditional "listing" method. If you think your property is a candidate for our accelerated marketing process, or if you want to discuss our approach in greater detail call now.

According to the 2000 Census, Green Bay's population was 102,313 residents. That was an increase by 6.1 percent from the 96,466 residents in the 1990 Census. During the previous decade, the city's population increased by 9.7 percent from 87,899 residents in 1980.

So what does this change mean? One can clearly recognize that the metro area of Green Bay decreasing, but what about the county in general? Are places like Ashwaubenon, De Pere, Howard, and Bellevue growing or shrinking? The census data shows that although Green Bay shrank during this time in terms of population, Brown County as a whole experienced a healthy growth rate of 7.3% from 2000 to 2007.

The beginning population of Brown County in 2000 was 226,658 while the 2007 population rose to 243,132. This gain illustrates that Brown County added 16,474 new residents over the 7 year period.

The phenomenon of inner city decreasing population with increased metropolitan population is an illustration of changing demographics, demands, and commuting as a way of life. It will be interesting over the next few years to see if there is a resurgence of inner city demand in property due to escalating gas prices and a shift towards a higher acceptance of diversity and urban culture in the Green Bay area. If you have any thoughts about future shifts please share.

Green Bay is a prime example of how the national viewpoint has affected a market that is not nearly as bad as one would think. Lets take number of sales and purchase price from 2006 to 2007 as an example. Many people would believe that there are many "steals" in the market and that sellers will take anything since the market is so incredibly bad, but the numbers show otherwise. In fact, they show that business between these two years have gone relatively unaffected. According to the business news online the following statistics are true of Brown County between these two years:

Sales Volume 2006-2007

2007 Total Sales: 2,716
2006 Total Sales: 2,809
Total Decrease: 93
Sales Price 2006-2007

2007 Median Sales Price: $149,750
2006 Median Sales Price: $150,425
Decrease: -$675
These statistics are eye opening in that they illustrate a slight change, but not nearly enough to panic and run to the bomb shelter.

The point is, that before making snap judgements about market conditions view the actual numbers and check facts before making an irrational decision.

(to better understand how net operating income is calculated refer to this article: http://greenbayproperty.blogspot.com/2008/05/what-is-real-net-operating-income.html ) ,

Cap rate = NOI / Price of Property or NOI / Cap Rate = Price of Property

To use a simple example lets say an apartment complex sells for $100,000 (cheap I know, this is an example). The NOI on the property is $15,000. If we plug those two numbers into the equation:

15,000 / 100,000 = 15% cap rate

But how do we know if this is a good rate of return? The best way to judge how good the cap rate is, is by reviewing comparable sales' cap rates. If the similar properties have a lower cap rate then the 15% is a higher than average rate and could be considered a deal. Cap rates are also directly affected by interest rates and correllate when they go up or down. Similarly each type of property and each market has cap rates that differ from different property types and markets. It is best to do substantial research into what type of property you're looking to invest and what typical financials are for those that are sold in that particular market and price point.

Cap rates are just one of many ways to analyze a property, but they are a fundamental form of investment analysis and should be done on any investment property to determine if it's worth the asking price.

2006 % of change 2007 % of change 2008 % of change
37 -21.3% 31 -16.2% 30 -3.2%
43 7.5% 39 -9.3% 20 -48.7%
63 -11.3% 47 -25.4% 32 -31.9%
43 -38.6% 52 20.9%
45 -44.4% 43 -4.4%
52 -5.5% 39 -25.0%
51 -15.0% 30 -41.2%
71 2.9% 38 -46.5%
58 -10.8% 25 -56.9%
52 -20.0% 32 -38.5%
36 -34.5% 41 13.9%
41 -39.7% 47 14.6%
592 -20.6% 464 -21.6% 82 -29.9%

Net operating income is the gross income less the operating expenses.

The following items are often referred to as operating expenses.

-Real Estate Taxes
-Property Insurance
-Utilities
-Repairs and Maintenance
-Janitorial
-Interior/Exterior Decorating
-Management

The operating expenses determine how much is taken away from the gross income and what is left in your bottom line (which of course is taxed). Therefore, if two properties have the same gross income of say $100,000 a year and one has operating expenses of $20,000, while the other has operating expenses of $40,000, your net operating income will vary from $80,000 for the first property to $60,000 for the second! That's quite a chunk of change.

When looking at any investment property looking at operating expenses is just as important as looking at income streams. However, it's just less flashy and attractive than dealing with cash flow. Smart investors will find properties that have strong gross income, and have room for expense cutting. For example, if you can eliminate the standard 5% management company fees, you've saved yourself $5,000 a year if you used the same numbers as the example above. Therefore, if you can find ways to reduce the operating expenses of a property you could find a diamond in the rough.

Keep in mind that gross income (all cash inflows) is limited in terms of investment analysis. Net operating income is the most important number on the balance sheet and will affect how much you keep in your pocket and the value of the property.

Is the paint faded badly? Is it peeling significantly? Are you using an outdated color scheme? These are a few things that you have to ask yourself when assessing a house. Check if the roof is not leaking. See to it that the rain gutters are not rusty.

It is also good to let an expert see if you have any termite infestation. If any of these questions apply to you then giving your home a fresh coat of paint can be a very good investment. It is also good to make sure that everything in the house is functioning properly. There should be no water pipe leaks or problematic electrical wirings. Make sure to keep the house clean and tidy.

Your lawn should also be kept clean and orderly. The grass should be cut short as this will add to the good impression of the potential buyer. This can significantly help you sell your piece of property sooner and for a better price. However, it is advisable to check with your strata council before starting any major work on your house.

Your yard:

* Low maintenance yards are normally more desirable since they are easier and cheaper to keep.

* Make use of colorful plants since this gives inexpensive but helpful visual interest.

* Potted plants on your front entrance can generate a positive effect. See your local gardening shop to get information about different inexpensive plant choices.

* Keep your yard clean and well kept. Even if the strata looks after your yard, you might want to take the time to assume responsibility of your front area for a few days to help your place become more sellable.

* Grassy areas should be trimmed to an acceptable height. Bushes and grass should be edged and leaves on the ground should be raked.

* Make sure there are no pet or animal feces on your lawn. It would be such an unfortunate experience if your potential buyer accidentally steps on dog poop.

* A wonderful view can add to the value of your home by at least ten percent. It would be impossible to create a beautiful view where none exists. You can however maximize and improve your existing view by asking your neighbors if they might allow you to do some selective trimming of the trees that surround your house. Getting the services of a local arborist may cost a few extra hundred dollars but this can help you achieve a better return on your investment.

* Make sure to get rid of any items or mess that may have accumulated around the outside of your unit.

Article Source: http://EzineArticles.com/?expert=Andrew_M_Szalontai

Pay Down Your Debt

When you begin the process of looking for a lender, you will find that most want your total debt to be no more than 38% to 40% of your gross income.

For example, is your income is $3000 a month, and then the bank figures your total debt can be $1240 a month. If you already have $1000 in debt, you will only have $240 left over for mortgage payments. By paying off credit cards and car loans, you will greatly reduce this number an increase your borrowing power.

Begin with the highest interest items first, normally credit cards. Then move onto car loans and lastly, student loans.

It is always a good idea to get into the habit of paying off your credit cards completely each month and never carry a balance. Few things can kill the dream of homeownership quicker than credit card debt.

If you are finding this difficult to do, then follow the rule of pay yourself first. That means, take 20% of your pay check to pay for something you really want or to put into savings. In this case, it is making a credit card payment.

If you take care of everything else first, you may never have enough to pay down your credit card debt.

Get the Down Payment Together

If you don't already have a savings account, get one now. If you find it hard to save money, use the pay-yourself-first technique. Every time you get a paycheck, put a pre-established percentage into your savings account and then make certain you leave it alone while your down payment accumulates.

Even have a separate savings account for your down payment will allow you to see what you are accumulating toward your dream of homeownership. You will be surprised at how fast the balance grows if you pay yourself from every pay check.

A large down payment is the key to loan qualification, especially if you want to qualify for a larger home loan.

Clean Up Your Credit Report

Good credit not only helps you qualify for a loan to begin with, you get a better deal when you do get the loan.

Lenders will look at your credit report.Bad credit doesn't mean you will not get the loan, it just means you will have a much higher interest rate and you will be required to pay a much larger down payment than someone with a good credit score.

Credit Report vs. Credit Score

Did you know that your credit report and your credit score are two different things? Your credit report is a list of thing like your credit card and bank accounts, outstanding loans and you payment history. Your credit score is a rating of how good your credit is, based on your report. In other words, your credit report is a bunch of pages and your credit score is a number from 300 to 850.

Taking a few months or even a couple of years to get your finances in order will help you get your dream home.

Article Source: http://EzineArticles.com/?expert=Karen_Vertigan_Pope

The second, and often more lucrative option is to conduct a 1031 exchange. A great way to keep more of your investment funds making you more money is to conduct an exchange instead of making an outright sale. Section 1031 has a non-recognition provision, meaning you do not have to pay the taxes immediately; in fact, you can defer the taxes indefinitely, while your wealth is compounded by the extra income produced by investing your tax deferment.

As an example, let’s say you own some small investment properties, like duplexes, whose values have increased over time. At this juncture, your first inclination might be to make an outright sale and reap the benefits of your investments. But a wise investor with an eye to the future might decide to conduct a 1031 exchange and place the proceeds from these smaller investment properties towards the purchase of another, larger property, which will, itself go on to appreciate in value over time, meanwhile continuing to make you more money. Additionally, the money available to you from your capital gains deferral will function to increase your ability to leverage for greater loans, maximizing your potential profits.

1031 exchanges aren’t just for land and buildings, either. It is possible to make a 1031 exchange on any sort of real estate held for investment in your business or trade, as well as certain kinds of personal property, from cranes or backhoes to an aircraft or collector car. Section 1031 is especially beneficial for those who have money in antiques or collectibles like collector cars, because of the higher capital gains liability on the sale of these items. It is important to note, however, that you cannot make a 1031 exchange on stock, bonds, or interest in an REIT.

So, next time you find that you are planning to sell an appreciated piece of real estate or other property, pause for a moment to think of the future dividends you could reap were you to make an exchange. If you decide to conduct an exchange instead of selling your property up front, you can maximize your wealth and come out on top.

Section 1031 Exchange (Of The IRC) States That Property Investors Can Use A 1031 Property Exchange When Selling And Buying Like Kind Investment Property. To Find Out More Visit http://www.Top1031Exchange.com

Article Source: http://EzineArticles.com/?expert=Trisha_Coppley