Selective Immersion draws Rave Reviews from Real Estate Students

New Teaching Method helps Students Pass Real Estate Exam

(Birmingham, AL) A new method of teaching and instructing students has recently shown amazing results in students who have attended Real Estate Success Institute in Birmingham, Alabama. The teaching method is referred to as "selective immersion" by the originator of the technique, Mike Carraway.

After spending years sitting through real estate classes and in many cases having trouble staying awake, Mr. Carraway decided to do something about the "old school" methods of instruction to make sure students were engaged and really enjoyed classes and learned from them.

"I have taken the pre-license class in 3 different states and also have had to sit through Continuing Education classes in all these states. One thing they all have in common is that all of them consisted primarily of lecture, lecture, lecture." Mr. Carraway says that is not effective in appealing to all of the different learning styles that students use.

According to Mr. Carraway, because some students are visual learners, some are aural learners, some are active learners, and some are tactile learners, the classroom content must address all of these styles of learning. In addition, classroom content must focus on one subject area at a time. The subject area can contain many subareas, but, all of the learning types and teaching styles must be used to insure that all of the students grasp the main concepts first, and then the sub-concepts second.

"The idea is to totally immerse the student in the subject, and engage them in many different ways", says Carraway. Real Estate Success Institute uses a 2 week or 10 day format for the required 60 hour pre-license class.

"The 2 week format provides an excellent venue for the selective immersion teaching technique.", says Carraway. His students are drawn into the subject with engaging stories that illustrate the main points, role plays that further illustrate the subareas, question and answer sections, challenge quizes, and games akin to Jeopardy. In essence, the student is totally immersed in that particular subject for that day through a wide variety of activities. But it doesn't end in the classroom.

"All of our students are instructed to do 2 activities each evening - read their notes - and make up flashcards." But, Carraway says, the students are told to spend no more than 45 minutes each evening on these activities. He says that during the classroom time, students form new neural pathways in their brains that make new synaptic connections. These new pathways quickly disappear unless they are reinforced a few hours later. That's why the evening activities are so important.

"The first thing we do the next day is a quick review of the day before, further reinforcing these new neural connections." Carraway says he can always tell which students have not completed their 45 minutes of evening activities: he gets blank stares the next day from those students.

The results from this teaching method have been nothing short of amazing. Most of the students that attend the Alabama 60 hour pre-license class pass the state real estate exam the first time they take it. His school, Real Estate Success Institute draws students from the entire state of Alabama from as much as 5 hours away. Some students even book a hotel room for their 2 week stay and return home during the weekend break.

"I am very proud of the students who are accepted into the class, who do the activities, and who are helping us produce a successful track record for this new instructional technique."

Some of Carraway's past students have interesting comments on the classes. Debbie from Montavallo said, "The in-class exercises really reinforced the information; you are actually learning this stuff and didn't even realize it at the time." This comment tends to substantiate Carraway's claim of selective immersion being a really new and unique teaching method. Another student, Joe K., said, "The classroom was filled with real life examples and a multitude of professionals from the real estate marketplace.", which is referring to quick appearances from professionals in the business such as attorneys, home inspectors, and a variety of others.

Carraway says that having quick guest appearances for 10 minutes or so provides even more stimulation for the students. According to Carraway, stimulating the students constantly is what it's all about. "We live in a video game, reality TV show world. Our teaching method takes that into account and uses continual stimulation to help students learn new concepts."

Selective Immersion as a teaching technique looks like it could be the next new wave in schools and instructional programs. "It takes a lot of work on the instructors part, but to me, it's worth it if all of the students pass the exam the first time."

Real Estate Success Institute can be found on the web at www.BirminghamRealEstateSchool.com and can be reached by calling 205-833-6325. The school is located just off of I-59 in the Roebuck area near Trussville, Alabama. The address is 1100 East Park Drive, Suite 104.
"If you are looking for a fast paced, exciting class where you will get the information you need, learn the concepts you need to know, and remember them, then our 2 week pre-license class is for you."

Mike Carraway is a Real Estate Broker, Certified Real Estate Instructor, Author, Motivational and Sales Training Speaker and is the Real Estate Success Institute administrator. The school website is http://www.BirminghamRealEstateSchool.com Mike Carraway has been active in the real estate business for the last 21 years and owns the 2 office company WEICHERT, REALTORS - Access Realty in Birmingham, Alabama and the website is located at http://www.access1000.com He also maintains a weblog at http://www.access1000.blogspot.com

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

Mike Carraway
Broker/Owner
WEICHERT, REALTORS - Access Realty
1100 East Park Drive, Suite 104
Birmingham, AL  35235
office - 800-840-0165
fax - 205-833-3350
4500 Valleydale Road, Suite 160
Birmingham, AL  35242
office - 995-3939
fax - 995-3929
www.Access1000.com
www.BirminghamRealEstateSchool.com
www.Access1000.blogspot.com
www.WEICHERT.com

Home sales rose, prices fell in February By MARTIN CRUTSINGER, AP Economics Writer
32 minutes ago



WASHINGTON - After falling for six straight months, sales of existing homes posted an unexpected increase in February which may have reflected more aggressive price cutting by sellers in some parts of the country, a real estate trade group reported.

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The National Association of Realtors said that sales of existing homes rose by 2.9 percent in February to a seasonally adjusted annual rate of 5.03 million units. It was the biggest increase in a year and caught economists by surprise. They had been expecting a small decline.

The trade group reported that the median existing sales price in February fell to $195,900. That was the largest year-over-year drop on records that go back to 1999.

Lawrence Yun, chief economist for the Realtors, said that prices in some formerly hot markets in California and Florida were seeing significant price declines now as sellers try to attract buyers.

Analysts cautioned against reading too much into the one-month rise in sales. Many economists are predicting that the steep slump in housing will not bottom-out until later this year after prices fall further and allow huge levels of unsold inventories to be reduced.

"We're not expecting a notable gain in existing-home sales until the second half of this year, but the (February) improvement is nother sign that the market is stabilizing," Yun said.

By region of the country, sales surged by 11.3 percent in the Northeast and were up 2.5 percent in the Midwest and 2.1 percent in the South. The only region of the country to see a decline in the sales was the West, where they dropped by 1.1 percent.

Sales of existing homes fell by 12.7 percent in 2007, the biggest decline in 25 years. Over the past two years, housing has been in a steep downturn made worse by a severe credit crunch as financial institutions tightened their lending standards in reaction to their multibillion-dollar losses on mortgages that have gone into default.

The steep slump in housing has raised concerns about a possible recession. Democrats are pushing the Bush administration to do more to stem a tidal wave of mortgage foreclosures to keep more unsold homes from being dumped on an already glutted market.

Sen. Hillary Clinton, campaigning for the Democratic presidential nomination, on Monday called on President Bush to appoint an emergency working group on foreclosures to recommend new ways to confront the housing crisis.

"Over the past week, we've seen unprecedented action to maintain confidence in our credit markets and head off a crisis for Wall Street banks," Clinton said. "It's now time for equally aggressive action to help families avoid foreclosure and keep communities across this country from spiraling into recession."

Mortgage lenders to pump $200 billion into markets By Patrick Rucker
5 minutes ago



WASHINGTON (Reuters) - Two U.S. home financing heavyweights won government approval on Wednesday to pump $200 billion more into troubled U.S. mortgage markets, the latest step to stabilize credit markets and avert a deep recession.

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Despite intensive efforts to battle rising home foreclosures and calm shaky markets by the Treasury Department and the Fed, which has pledged $400 billion to free up credit, Democratic lawmakers continue to press for bolder action.

"All hands are on deck to try and prevent this U.S. situation from becoming a dire crisis," said David Watt, a currency strategist with RBC Capital Markets in Toronto. "They're doing everything they can, making policy on the fly."

Still, markets were not calmed by the latest move by the regulator that oversees Fannie Mae (FNM.N) and Freddie Mac (FRE.N) to immediately loosen their capital requirements and give them a bigger role in buying up mortgages.

The blue chip Dow Jones industrial average (.DJI) lost almost three-quarters of the 420-point gain notched a day earlier, closing down 293 points, in part on worry brokerage Merrill Lynch & Co may need to write down more bad assets.

More relief, however, is in the works. A separate regulator appeared near a decision to allow the Federal Home Loan Bank System to double some mortgage holdings to around $300 billion -- which would be another big shot of market liquidity.

Sources familiar with the proposal said a vote on the measure was likely this week.

PUSHING FOR MORE

There were no signs, however, that Democratic lawmakers were about to let up in a push to have the government step in to play a larger role.

Rep. Barney Frank, chairman of the powerful U.S. House of Representatives' Financial Services Committee, said the Bush administration was warming to his plan to use the Federal Housing Administration to insure up to $300 billion of shaky home loans for lenders willing to erase some of the debt.

The Treasury, however, said it had "no interest" in the proposal, although it was willing to listen to any new ideas.

Fannie Mae and Freddie Mac's regulator, the Office of Federal Housing Enterprise Oversight, said its decision to relax capital rules toughened in the wake of accounting scandals in 2003 and 2004 would allow the two companies to buy or guarantee $2 trillion worth of mortgages this year.

The decision reduces to 20 percent from 30 percent the additional amount of capital they must keep on hand against potential losses, giving them $200 billion in buying power. OFHEO said it may lower the capital requirements further.

Efforts to ease financial market stress helped bring down mortgage rates early this year, but they have risen in recent weeks as investors dumped souring loans to meet margin requirements, undercutting the Fed's attempts to spur the economy by lowering overnight interest rates.

Shares of Fannie Mae and Freddie Mac, which rose sharply on Tuesday in anticipation of the announcement, blasted higher for a second day on Wednesday. Fannie Mae stock rose $2.49 to $30.71 and Freddie Mac shot up $3.88 to $29.90.

The global nature of the credit crisis was underlined as the Bank of England stepped in to dampen rumors that HBOS (HBOS.L), Britain's biggest home lender, might be in trouble. "No meetings have taken place, or been scheduled, to discuss problems with any institution," a BoE spokesman said, taking the rare step to comment on a rumor.

DRASTIC TIMES, DRASTIC MEASURES

In a joint statement with OFHEO, Fannie Mae and Freddie Mac promised to raise "significant capital" in return for easing in their reserve requirements, but the two companies gave no indication how and when they would do so.

The Treasury Department has been pushing financial firms to face losses and quickly raise new capital. That is vital for a return to normal lending and business activity and to avert a full-blown financial meltdown.

Treasury Secretary Henry Paulson, a pragmatic veteran of Wall Street, has so far hewed to the Bush administration's line that it will not countenance a taxpayer "bailout" for people who took excessive risks.

But that argument suffered over the weekend when Treasury helped broker a proposed deal for a takeover of troubled investment bank Bear Stearns.

President George W. Bush said on Tuesday the White House was monitoring financial markets and, if further actions were needed to ease mortgage woes, it would be done "in a way that does not damage the long-term health of our economy."

(Additional reporting by Svea Herbst in Boston, David Lawder and Mark Felsenthal in Washington, Al Yoon in New York and Steve Slater in London; Writing by Glenn Somerville and Patrick Rucker, Editing by Chizu Nomiyama)

Playing the Housing Slump; Is It Time to Make Your Move?

Move?
by Jonathan Clements
Saturday, March 15, 2008
provided by

Financial lore says you should buy when there's blood in the street -- which suggests real estate is a bargain, because there's blood all over the neighborhood.

Time to invest? I wouldn't be surprised to see home prices drop sharply this spring, as long-suffering sellers in hard-hit areas throw in the towel and slash their asking price.

That could spell opportunity for this year's buyers. But what if you already own a home -- and have no desire to become a landlord? Here are three ways to play today's battered housing market.

More from The Wall Street Journal Online:

• Minding the Gap: Home-Price Downside

• Low-Cost Fixes to Make to Make Your Home More Green

• Blacklisting Hits Home Sellers

Trading up. If you're hankering after a larger home or a house in a better neighborhood, this could be your chance to trade up on the cheap.

To be sure, when you go to sell your current home, you will likely get a modest price. Since 2006's second quarter, real estate has fallen 10.2%, as measured by the S&P/Case-Shiller U.S. National Home Price Index. But your new, grander house will also be relatively inexpensive, so you're effectively cranking up your real-estate exposure when the market is well below its peak.

That said, I wouldn't think of this move as an investment. Your new home will probably mean not only a bigger mortgage, but also higher ongoing costs, including homeowner's insurance, property taxes and maintenance expenses. These ongoing costs will offset a large chunk of any future home-price appreciation.

In other words, trading up to a larger home or a better neighborhood is really about wanting to consume more real estate. Still, like any thrifty shopper, you want to buy when there's a sale -- and that is what today's market offers.

"It's like going from a Honda to a Mercedes," says Charles Farrell, a financial adviser with Denver's Northstar Investment Advisors. "It's a lifestyle choice. As long as it doesn't cut into your ability to accumulate capital for retirement, this is probably a pretty good time to upgrade."

Doubling down. Instead of trading up, you might be eyeing a vacation home. If you don't plan to rent the place out, the same logic applies: Once you subtract the annual costs from the price appreciation, you likely won't make very much money -- which means the property won't be much of an investment.

On the other hand, maybe you're two or three years from retirement and are toying with buying a second home that could become your sole residence once you quit the work force. Does it make sense to purchase now, given the decline in home prices?

Buying today is no doubt appealing, because it'll give you a chance to vacation in your future home. But whether it turns out to be a wise financial move depends on what happens to property prices -- and that's tough to predict.

Still, I wouldn't bank on a rapid bounce back in home prices. At the current sales pace, it would take a whopping 10.3 months to clear January's backlog of unsold homes. By contrast, in January 2005, the supply of unsold homes was at a mere 3.6 months, according to the National Association of Realtors.

The bottom line: If you think you'll get a lot of use from a second home, go ahead and buy. But if you view the purchase as a bet on rising home prices, I would hold off for now.

Helping hand. While buying more real estate for your own use probably won't be a great investment, you could help your adult children make good money -- by transforming them from renters to homeowners.

To that end, you might give your kids an advance on their eventual inheritance, so they have enough money to make a down payment. Yes, that means they will start to incur the housing costs I mentioned above, including property taxes and maintenance expenses. But your children will also replace their monthly rent check with a monthly mortgage check, and that will allow them to start building home equity.

"If you have kids who are first-time buyers in markets that are relatively depressed, this could be a good time," Mr. Farrell reckons. "These days, they might need to make a 10% down payment. You could make a gift to them of the down payment or make a loan to them."

Copyrighted, Dow Jones & Company, Inc. All rights reserved.

How to Buy a Home
Owning a home is a very important step in most people's lives. It's a goal that can easily be reached if you work hard and take the right steps. After years of work and saving, finally purchasing your first home is a reward in and of itself, however its a reward that keeps giving and might put you and your family on the path to financial security.

[edit] StepsGet your credit in order. Find out your credit score rating at http://www.experian.com/. Know what your finance report says about you before applying for a loan. If it is as not as cherry as you would hope work on cleaning it up, and improving your score since this is what a mortgage loan is largely based on.
Find the right loan and lender. You will need to research whether using a broker (who can really help if you have bad or so/so credit), or going directly to a bank or possible friend or family for a loan is the best route for you.
Determine your budget. Often in this day and age, lenders will give you much more money than you realistically can pay on a monthly income. Take the time to realistically sit down and make a budget of what you think mortgage, taxes, and the rest of the expenses will cost then raise this by 30%, and this should be your true budget. Before you start thinking, "I can have this house if I eat peanut butter and jelly sandwiches for a year", be realistic!
Identify property to buy. With your list of needs and wants have your agent prepare a list of available properties in the areas you would like to search in. Make sure you indicate which neighborhoods interest you the most and which interest you the least. If you need help finding schools, shopping, demographics, entertainment and the like in a particular neighborhood, ask your realtor to prepare a demographic report for the area - it will help you determine where the closest supermarket is, the movie theater, schools, businesses and even personal demographics of the residents. (Do you want to be surrounded by Volvo Station Wagons or Harley Davidsons)
Schedule time to tour these properties you've already identified. Don't take a quick look and move on to the next one. Your agent should point out special features or items that might need attention. Take a moment to imagine yourself living in this home. Ask yourself, what would it be like, am I comfortable here, can I see myself living here for a long time? Try to ignore fixtures or cosmetic things that can be easily changed. Buyers walk away from a property because it was poorly decorated. Picture the home with your furniture, family photos, momentos, etc. These are the things that make your house, a home, not the previous owner's Elvis themed bathroom.
Be reasonable with your time on your tour - You should plan to see no more than 3 or four homes in a day. Give yourself time to absorb your observations a decide whether this property might be right for you.
Be ready to write an offer. Your agent will prepare all the paperwork and go over the terms with you. And for goodness sake, if you have a question, ASK!!! Don't sign an offer and then ask, "what does that mean?". Now, lets step back just a tad - If you're looking to buy in an area that has a hot real estate market - don't think too long about writing an offer - You're agent will be able to advise you if there are likely other bids for the property. If you find a home that you want, make an offer and put an offer on the one next door too.
Be prepared to submit an "earnest money" deposit. This indicates that your are serious about buying a property, and a are ready, willing, & able to go through with the transaction. The deposit generally is held by your agent and isn't placed into escrow until the offer is accepted. (so you wont be writing checks all over town)
After your offer is presented to the seller, your agent will review with you the response. There are three possibilities; 1.) Acceptance 2.) Counter Offer 3.) Rejection. Once, the offer is accepted, its time to open escrow. The Escrow company will receive, hold and distribute all monies involved in the transaction. After escrow account is opened and funded, now begins your contingency period.
The contingency period is the time allowed by your purchase agreement to obtain financing, perform inspections, and approve of various reports and disclosures. This is also the time to ask for credit to repair that leaky roof the inspector found.
Home owner's insurance: Your agent should coordinate with your insurance representative to make sure that you are fully covered when escrow closes.
Closing time... When all the conditions of the purchase agreement are met, you will sign your loan documents and closing papers - deposit the balance of your down payment, and closing costs and your lender will deposit the balance of the purchase price. Finally the deed will be recorded with the County Recorder's office and you will be handed the keys to your new home. CONGRATULATIONS! You just became a homeowner.

How to Make Home Buying Easy
Follow this step-by-step general guidance to purchase a home.

[edit] StepsGet Pre-Approved. This will determine what type of loan you will obtain. Type of loan is needed for sales contract. Your lender will give you a “good faith estimate" indicating how much money is needed for purchase. Once pre-approved, it makes your offer stronger when seller is reviewing – especially if there are multiple offers being presented.
Decide what you must have in your new home (i.e. 4 bedrooms, fireplace, brick). Can you wait on what you want? (i.e. put a fence up later, add a swimming pool). Determine if you want a fixer-upper, like new home, or one that has never been occupied (are you willing to change paint, carpet or other things on your time schedule and at your own expense?).
Search for your new home. Choose one agent to work for you. (Working with many agents can lead to duplicate homes being given to you, confusion on what you have seen with whom & both buyer/agent want trust & loyalty.) Some agents have great rapport with For-Sale-By-Owners (FSBOs) and can handle all of the details for you, just as a home found through the Multiple Listing Service. Once you have received a list of homes, drive by them before you make an appointment. (Does the curb appeal meet your expectations? Is the location acceptable? How is the distance to work, school, church, etc.?)
Make an offer. Be prepared. (Have a copy of pre-approval letter to submit with your offer. Have an offer price in mind. Have an alternative offer or home in mind – in case this particular home cannot be negotiated or another buyer outbids you.) Keep the offer clean. (Are you making a really low offer, asking for an overabundance of seller concessions and an unreasonable possession date? Decide what is most important for an initial offer and then adjust while waiting to hear an answer, just in case the seller decides to reject your offer or counter it.) Earnest money. (Earnest money is collected at the time an offer is submitted and deposited with the selected title company once all parties have agreed upon and signed the contract. The earnest money is credited back to you at the time of closing.)
Get ready to close with these steps:
Wood Destroying Insect (WDI) report. (Most lenders require this report to obtain loan approval & you choose the company).
Home Inspection. (It is not mandatory; however, a good idea to have a home inspection by the inspector of your choice. (You will be told what is working, in need of repair and items that are now grandfathered).
Survey. (Most lenders will allow an existing survey for loan approval if it is less than 10 years old and there have been no changes to the property lines. Be sure to ask your lender.)
Transfer utilities. (About 7-10 days prior to closing, call and transfer water, gas, electric, cable, etc.)
You’ve got mail! Or do you? Be sure to change your address!
Be prepared for the day of closing. Bring your driver's license, social security card, and cashier's check made payable to the title company.



[edit] WarningsNever hesitate to ask questions. This is a general home buying guide and your agent should be able to answer questions and handle the details for you.

How to Stage Your Home for a Sale
Potential buyers make their decision to purchase your home in the first 30 seconds upon entering. First impression is the key to selling your home fast and for top dollar.

In addition, well staged homes sell for 30-50% faster than their counterparts.

[edit] StepsDe-Clutter, Clean, and/or Organize all rooms in the house - This should be your very 1st step.
Address any and all repairs that need attention. Inspect your house inside and out to search for cracks, etc. The small investment of time and money will mean a bigger return when it comes to the sale price.
Remember that improvement in landscapes will add curb appeal to attract a buyer. Use plenty of color in and around the front walkway and porch areas.
Update exterior lighting.
Paint the exterior and interior of the home. Interior paint should be in neutral tones.
Spruce up furniture that is outdated with slip covers.
Keep the bathroom as bare as possible, never leave your personals in view when showing your home. In fact, depersonalising your whole property is a powerful selling tip. Buyers will be more attracted to your house when they can imagine themselves living there. To make your house look lived-in without looking like anyone actually lives there, pack away into storage:


All family photos
Holiday souvenirs
Trophies & certificates
Collectible items
Children’s artwork
Home Gyms that haven't been used in months
Whether selling professionally or by yourself, make sure you have some fliers made up with details and photos of your house for prospective buyers to take away with them.
Know that an open house should appeal to all five of the senses:


Sight: Open the blinds and drapes to let in natural light. Keep clutter away and consider keeping your pet out of the home for that day. Play a colourful family movie on your TV and/or computer (e.g. Finding Nemo) with the sound off.
Smell: Put out flowers in the main rooms of the home, as well as scented candles. Bread in the oven is another good idea.
Taste: Make some cookies or something else for your guests. This will also help improve the aroma of your home. A hot pot of coffee helps with taste and smell also.
Hearing. Turn off the sound on all television sets and computers, and have some easy listening or jazz music playing in the background softly.
Touch. Have your guests sit on the softest couch, and make sure everything is clean and dust-free.
Space. When showing guests around your property, let them enter the room first. In smaller rooms e.g bathrooms, stay at the door. Too many bodies in too small a space causes a problem.



[edit] TipsListen and follow advice from your real estate agent!
You are putting your home on display, so present it well! If you don't think you have an eye for presentation, ask one of your friends or family to prepare your house for you. If you can't see a problem with clothes lying around and sticky floors, get someone else to present your house for you! Pay them if necessary - as presentation is so important in presenting your house.
Remember: you are decorating your home for someone else so keeping that in mind will help you to make purchases that will appeal to the masses.
Do not over-price your home! Have your real estate agent compare your home to others in your area of the same size for sale (get what is referred to in the industry as a Comparative Market Analysis) - They will determine the right price to list your home at. If you home has been on the market more than 3 months, doing this should help you sell your home along with staging your home. The whole point of staging, is getting your home show-able inside and out. If a potential buyer drives by your home and doesn't like the look of the outside (curb appeal) of your home, they will move onto another home. You have to grab their attention and get them in the door, so they will want to view your home.
De-clutter your home as well as deep cleaning will work wonders, and will show to potential buyers that the house is in stellar condition.



[edit] WarningsEvery room in the home, including the garage and decks, should be absolutely clean. Empty waste baskets and garbage pails daily. Try to keep pets out doors along with their litter boxes and food bowls during showings. Try to relax during this stressful process.



[edit] Things You'll NeedYou will need to make a few purchases. As mentioned earlier, sofa slip covers, flowers, and maybe new flooring. Make the purchase needed to update the home so that it will show well. You will certainly see a return on your investment.

Avoid Pitfalls when Building or Buying a Home - wikiHow

Avoid Pitf

How to Avoid Pitfalls when Building or Buying a Home

from wikiHow - The How to Manual That You Can Edit

Buying a home is a complicated process fraught with difficulties. If you want to make sure your home buying or building process is a success, there are some things you can do.

Steps

1. Make sure your architect and builder have worked together before and get along well. Whichever one you hire first, ask him to recommend the other. Otherwise all of their little conflicts will cost you plenty. Before you choose either an architect or a builder be sure to check references!
   
2. If a builder is designing your home, try to choose modest changes on a plan that has already been built. If using an architect, this is not the case. Bring a clear idea of your wants and needs. A good architect will design a plan that suits you better than any design in a cookie cutter plan book.
   
3. Pay the builder as the work is completed. If possible, pay the subcontractors yourself. Otherwise you may fully pay the general contractor and have several liens on your home from unpaid subs. If he pays them directly, get proof of payment.
   
4. Realtors maximize income by shoehorning you into the biggest loan you can qualify for. This will make you "house poor", able to make your payments when all is well, but unable to afford anything else.
   
5. Avoid traditional realtors and their 6% commission and go with a discount broker online. On some sites you can search for your home using satelite images and get more information than the realtor has.
   
6. Adjustable rate mortgages are very dangerous for consumers although banks love them because they make so much money and put all the risk on the buyer.
   
7. Try to borrow for 15 or 20 years to greatly reduce your total interest paid. It will be a higher monthly payment, but less overall.
   
8. Don't assume that buying is better than renting. If you will move in less than 5 years or homes are not significantly appreciating, your home is likely an expense and not an investment at all.
   
9. Most buyers seriously under estimate the costs of taxes, insurance and especially repair. One bad roof, water heater etc. can be very difficult financially.
   

Tips

• Go to your prospective neighborhood and sit in your car at midnight on Friday or Saturday. If it is too loud for you, then this is not the place for you.
  
• Be there when your home is inspected, talk to the inspector, and ask for tips.
  

Related wikiHows

• How to Navigate the Home Building Process
  
• How to Find a Good Real Estate Agent
  
• How to Invest in Preconstruction Real Estate
  
• How to Pay Less Real Estate Commission
  

Article provided by wikiHow, a collaborative writing project to build the world's largest, highest quality how-to manual. Please edit this article and find author credits at the original wikiHow article on How to Avoid Pitfalls when Building or Buying a Home. All content on wikiHow can be shared under a Creative Commons license.

alls when Building or Buying a Home - wikiHow

Get Your Alabama Real Estate License in 2 Weeks!

Real Estate School Announces 2 Week Pre-License Class

 

(Birmingham, AL)  The Real Estate Success Institute has just announced the start date of it's next 2 week Alabama Pre-License Class.  It will begin on Monday, February 18th at 9am and will run from Monday thru Friday from 9am to 4pm for two weeks concluding on Friday, February 29th, 2008.

 

For anyone wishing to enroll in the class, the school has a website at www.BirminghamRealEstateSchool.com .  Students can get directions to the school, download a school application, make payment for the class, and get questions answered. 

 

Past students from the class have raved about the format and how well prepared they were to take the state real estate exam.  Interviews with previous students indicate that nearly 90% of the students passed the exam on their first attempt.

 

"I am so glad I chose this school.  I passed the very first time I took the state exam and so did most of the students in my class." Dennis P., Cullman.

 

With the real estate market already coming off of it's recent bottom and markets around the country and in Birmingham heating up, there has never been a better time to make real estate a career.  You can call 205-833-6325 for information on the classes or visit the website.

 

www.BirminghamRealEstateSchool.com

Find a Good Real Estate Agent - wikiHow

Find a Good Real Estate Agent - wikiHow

How to Find a Good Real Estate Agent

from wikiHow - The How to Manual That You Can Edit

Steps to take when looking for a real estate agent. A highly-experienced agent is not necessarily the right agent for you.

Steps

1. Meet agents out in their working environment, not in their offices. Good agents spend very little time at their desks.
   
2. A good place to meet agents is at open houses. Don't worry that you are not interested in that particular property. The agent knows that open houses rarely produce a buyer for that home.
   
3. Another good method is to contact the agent with whom a friend or relative worked. If this agent produced positive results for a friend of yours, there's a good chance s/he will do the same for you.
   
4. Interview a couple agents. Whether you are looking for a buyer agent or seller agent
   
5. Look for signs that the agent is busy. A hard-working, go-getter of an agent is what you want. But if you feel slighted, like if your agent spends most of his time with you on his cellphone with another customer, find a different agent.Or if he / she passes you on to an "assistant" it means the agent you hired is not the one who is going to be working with you along the line.
   
6. It is important that your agent is knowledgeable. Ask questions about things you have learned through your new-found interest in real estate. If she doesn't know substantially more than you - after all, this is her livelihood! - go on to another prospective agent. Local knowledge is particularly critical.
   
7. A good agent is important to you when buying a home for the first time. She should be able to guide you through the mire of paperwork and lenders that you will have to wade through.
   
8. View the agent site and see how he/she is using content to market themselves.
   
9. Check her references that she should provide in your first interview.
   
10. Ask your agent where they live. An agent that lives and works locally will have their finger on the pulse of the market and be able to answer important questions about the community.
    
11. Ask how long s/he has been a realtor. It is not that newer agents aren't capable. It just is a fact you should know to factor in to make an informed decision. Many "experienced" agents are not always the best choice either.
    
12. Ask Who the agent is working for in the transaction, the buyer or the seller.
    

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Sources and Citations

• http://www.first-time-home-buying.net
  
• http://www.connieshomesonline.com
  

Article provided by wikiHow, a collaborative writing project to build the world's largest, highest quality how-to manual. Please edit this article and find author credits at the original wikiHow article on How to Find a Good Real Estate Agent. All content on wikiHow can be shared under a Creative Commons license.

Get a Better Deal on a Home Loan - wikiHow

Get a Better Deal on a Home Loan - wikiHow

How to Get a Better Deal on a Home Loan

from wikiHow - The How to Manual That You Can Edit

It is often said that for most people, the purchase of their home will be their single greatest expenditure. In truth, however, the purchase of a mortgage--the points and interest paid over the life of the loan--often equals or exceeds the sale price of the house. Thus, as everyone knows, it's essential to get the best deal on your mortgage as possible. Doing so, however, is not an easy proposition. To get a truly great rate, you'll need not only to shop smartly for a mortgage, you also need to establish yourself as a good credit risk before you apply.

Steps

1. Wait. The easiest way to get a lower rate is to wait until the interest rates on loans across the board are at low levels. Interest rates fluctuate a great deal, sometimes even during the same day, but there are times when they are simply far lower than at other times. Keep in mind, however, that (all other things being equal) periods of low interest rates often see increased home prices.
   
2. Improve your credit. Make loan and other payments on time, especially over the months leading up to the loan application. Every delinquency will result in a lower credit score The better your score, the better your deal. Keep in mind, however, that it typically takes at least a couple years to significantly improve your credit.
   
3. Get the mortgage first if multiple financial obligations are going to pop up in the near future. Numerous credit inquiries, such as new applications for credit cards, can hurt a borrower's score, especially if they're filed in the months prior to the home loan review process. In addition, if you add new debt expenses shortly before applying for a mortgage, the loan underwriter may question whether you'll be able to make all your payments, so avoid making large purchases in the months before you apply.
   
4. Save as much money as possible for your down payment. A major determinant of your interest rate will be the loan-to-value ratio. These days you can sometimes get a mortgage for up to 125% of the value of the home, but if you can reduce the loan amount to 80% of the value, you'll get a better rate. The larger your down payment, the more equity you will have in the home from the start. With more equity, the loan is a lower risk for the lender, and you'll be rewarded with a lower interest rate. A lease option may also help you build equity if you're not in a position to make a large down payment.
   
5. Reduce upfront expenses. Points--1 point equals 1% of the loan amount--and other upfront fees can drive the cost of your loan through the roof. Always take these into account when shopping for a mortgage.
   
6. Think small. Don't shop for that 6-bedroom house right off the bat. Lenders consider "payment shock" when approving loans. If you go from a relatively low monthly housing payment to a huge one, you'll either end up covering too big a loan with too little money, or you won't qualify at all.
   
7. Shop around. Mortgage rates for the same person can differ widely from lender to lender, so explore your options. If you belong to a credit union or if you've been with a bank for a long time, you'll often find your best rates there, though it's still a good idea to check around. A mortgage broker, who sifts through many lenders, may be able to find you the best rate.
   
8. Get pre-qualified, or "pre-approved". The difference is a pre-qualification is based on information voluntarily submitted by you to a lender, who then provides an 'estimate' of the maximum mortgage amount you can afford. A pre-approval means the borrower, has had the lender perform credit checks, income verification, and various other underwriting tasks and has been approved for a specific mortgage amount. A pre-approval is a much stronger tool, obviously.
   
9. Lock in a low rate. Simply being approved for a loan amount doesn't mean you'll get the interest rate you've been quoted. You'll need to lock in the rate.
   

Tips

• Do the math. Don't just listen to what the broker or loan officer tells you. Get out your calculator and calculate the total cost of the home including the loan. If the lender doesn't provide this information, simply multiply the monthly payment amount by the number of payments, and add any points or other upfront fees. For adjustable mortgages, however, there is a bit more uncertainty about the total cost because after an initial fixed period the interest rate may go up or down. However, you should still be able to calculate the minimum and maximum cost according to the terms of the loan.
  
• Be honest. If your lender doesn't have a truthful application, your quoted rate won't mean a thing (and you could be prosecuted for fraud in some cases). Discuss your personal situation, ask questions and make sure the options presented by the lender are best for you.
  
• Prioritize your debt, and if you must miss a payment, miss it on a low-priority loan (i.e. a credit card) rather than on an existing mortgage. Credit scoring systems look at the performance of similar loans first when deciding what type of score to assign. The most weight will be given to the performance of another mortgage.
  
• Which type of mortgage offers the lowest rate. It depends on the lender and on market conditions, but generally a shorter term (10 or 15 year) fixed mortgage will offer the lowest rates. Very short term (i.e. 5 years) adjustable rate mortgages (ARMs) may also offer excellent rates, but the upfront fees on these may drive the total cost up quickly.
  

Warnings

• If you do have credit problems, beware of credit repair agencies and lenders that advertise a fix for people with bad credit. Often these end up costing you more money and don't do a significant 'clean up' of your credit. Be honest with a trusted loan officer or mortgage broker, and ask for things you can do to help your credit.
  
• This article is a general guide only and is not intended to replace professional financial or legal advice.
  

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Article provided by wikiHow, a collaborative writing project to build the world's largest, highest quality how-to manual. Please edit this article and find author credits at the original wikiHow article on How to Get a Better Deal on a Home Loan. All content on wikiHow can be shared under a Creative Commons license.

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