Selling and renting back your property is a big decision. It’s important you understand the sell and rent back process and how you will benefit. Basically you are selling your property to an investor who is then going to allow you to rent it back. In many cases it is agreed that once you sell your property you will be able to rent it back for as long as you need. However, this should be agreed in writing before you sell.

Why sell and rent back?

· You would like to release equity

· Need to pay off debts

· Avoid repossession

· Divorce settlement

· Bereavement

· Emigration

Advantages of a sell and rent back are that it can prevent you and your family from being evicted should you be facing repossession. It allows you to stay in your home preventing upheaval and disruption to you and your family. If you have a large amount of debt sell and rent back can help you become debt free quickly and privately. Also if you need to sell quickly perhaps because you are emigrating or settling a divorce a sell and rent back scheme could be of use. A sell and rent back opportunity is of particular benefit to older people who no longer wish to be burdened with actually owning a home.

The sell and rent back option is not for everyone and any decision like this should be thoroughly researched. In many circumstances a homeowner can rent back their property for much less than their prevouse mortgage repayments thus relieving financial burden. This is ideal for retirees and people who need higher disposable incomes.



Rent Back Fast

As the news stories about the woes of the property markets continue to pile up in the media, more people are tempted to put their homes on the market in the present climate to see if they are able to sell ‘at the top of the curve’ and take advantage of the capital gains they have made in the past years of the property bubble.

While experts disagree over the size of the market ‘correction’, or the length of any downturn in the market that is likely to take place over the next few months or even years, there is little doubt that more people will be in a position where they feel under pressure to sell their property as quickly as they can. The danger is that in putting your property up for sale you will be tempted into taking a much lower offer than you should, as well as the stress of dealing with demanding buyers.

On the other hand, being unrealistic about the value of your property, the motivation of your potential buyers, and the market conditions could lead to being stuck in a situation with a property that has been extensively marketed and still does not sell, despite discounts to the price.

Some of the situations you may encounter over this period of toughening market conditions are explored here, along with some possible strategies to help you sell your property at the right time and for the right value.

Be Objective – This is particularly important when you are selling your own home, rather than any kind of investment property, but it is vitally important that you are realistic and able to take the fact that agents or buyers may suggest you sell your property for less than you think it is worth.

This does not mean that you should just give in without a fight to the first offer that comes along, when you are convinced that the property is worth far more, but make sure your position is backed up with solid facts. In market conditions as they are at present, research in the local area is even more important, and can be the key to making your sale successful. Check estate agents’ windows regularly to see what at price similar properties are on the market, as well as how quickly they move.

Also, try to compare your property to other similar ones for sale in the same area, and be as objective as you can. Essentially, these similar properties are your competition for buyers, and you need to know where your property stands in relation to them. Think about things like proximity to schools, shops and leisure facilities on the positive side, and main roads, traffic black spots and industry on the negative.

Knowing all of this, and listing where your property is stronger than most of the other similar properties on the market at the time, will allow you to price your property effectively and realistically, as well as helping in its marketing. The knowledge that your property has the best gardens of the type, or has an extension as a utility room should allow you to bring out the advantages in the details as supplied by the agent, as well as helping you to sell the property when you are conducting viewings.

Aggressive buyers and tactics – One of the biggest problems with selling with the current turbulent market conditions is that buyers will feel they are in a true ‘buyer’s market’. This means they will feel emboldened by the prospect of being more sought-after than the property they are considering buying, a situation that has not occurred in the UK for example, in at least five years. Given this fact, buyers are taking up some practices that have not been seen by vendors for a few years – some of which are just a shift in the landscape and relationship between buyer and seller, other which are a degree more unsavoury or even immoral.

One of the biggest differences that sellers will notice in the current climate is the time factor. Buyers are now far less likely to be rushed into making an offer, or improving an existing offer as they will have the impression that you need them more than they need you. While this can be true, it pays to be prepared to wait for offers and responses to come in.

Of course, this is a legitimate buying tactic in the same way that in a rising market sellers are able to make buyers wait for their responses to try to make sure they would be prepared to move their offer upwards. Buyers will feel that by holding out on making their first or follow-up offer, they are sowing the seeds to make sure that you are ’softened-up’ for a lower offer than would otherwise be normal.

Be aware in this situation of the research you have done on the right price for your property, and be prepared to stick to your guns – but not too much. While it is quite fair to ask for a fair price in negotiation, if you are completely inflexible in the money stakes, you will scare off legitimate and fair buyers.

Once you have accepted an offer for the property, there are other things that buyers may now feel emboldened to do given the market conditions. For one thing, the agreements for fittings and fixtures may go on longer and be more intense that you might expect. Again, buyers will feel that they are in a stronger position to demand that some of the items you would have taken with you remain in place or are prepared to pay less than you want for them.

In this situation you would be well-advised to try to keep the two issues separate, while the buyer may be keen to suggest that unless you move on the fixtures and fittings the whole deal could fall apart. If they continue to be stubborn on this point, and you feel that they are close to pulling out of the sale, there may come a time to make a difficult choice. If you give in to their demands, can you be sure that this is the only issue on which they will be aggressive, or will it be a signal to them that they can push you into a corner in any of the negotiations? Would you prefer to keep this sale, no matter how much you have to smile through gritted teeth, or are you confident in finding a buyer? There is no blanket answer to this, and each situation can only be judged upon your feelings at the time.

One of the more worrying trends in recent weeks has been the idea of buyers gazundering sellers. Gazundering is a process by which buyers agree a sale price and put the wheels of the sale in motion, only to demand a hefty discount on the property price at a very late stage, often just days before completion. The discount demands can be anything up to 20 per cent off the agreed price, and sellers are left with the option of either giving in to the demands of their buyers or risking losing their sale, the house they want to buy and causing the rest of the chain to collapse.

Some websites are deliberately promoting gazundering as a legitimate bargaining tool in the house buying process, and even go so far as to say buyers should have offers accepted on three different properties to maximize the chances of one of their gazundering attempts being successful. Most people will see this as a morally-questionable way of entering into a sale, but be aware that there may be some people out there who are willing to try it.

Make the most of what you have – Many of the properties that are coming on to the market at the moment are quite similar – in some areas there are so many two-bedroom apartments for sale at the moment that sellers are dropping their prices by up to £100,000 (approx $200,000) in order to attract attention from a smaller pool of potential buyers than has been seen for some years.

In this situation, the best thing you can do is to make sure that you have maximized the features of your property that are going to attract buyers and make it stand out from all of the other properties of the same type they will have viewed already. If you have a huge kitchen, make sure it is clean and tidy but that people can see you enjoy spending time in there, if the garden is 30 yards longer then the neighbouring properties, make sure it is tidy, the lawn mowed and some colour and life are evident. You may even want to demonstrate the its lifestyle possibilities by putting out garden furniture to show how it can be used.

A recent survey also suggested that spending a small amount of money on refurbishing and remodeling parts of your property can not only get you back almost the same amount of money as the investment you put in, but will also help to make the property stand out to buyers. Purely on a monetary basis, it is said that a minor remodeling of the main bathroom in a property is the best way to spend on the interior of a property, with up to 100 per cent of the investment being made back on the property sale.

Making your property ready for viewings is also important. Some say that brewing fresh coffee or baking bread in the kitchen is the best way of making an impression on people viewing the property, but nothing will stick in their minds more than a well-presented, well cared-for home. The much-vaunted ‘kerb appeal’ factor is very important in creating the right first impression and setting the tone of the viewing. Pets and clutter should both be banished for the duration of the viewing, and if possible and necessary, you may want to send the children and partner to the park for an hour while people are viewing the property.

What you really want to create in a competitive market like we have at the present time is a lasting impression on potential buyers. If you can let each of your viewings leave with a sense that they want to be in your property, and can see themselves happy there, you have won half of the battle and will have a better chance of sticking in their minds.

Think differently – Don’t be afraid to do something a little different in marketing your property to the buyers that are out there. Remember that there are always people who are looking to buy property, even if there aren’t as many as there were, or as many as you might want to see. In fact, many buy-to-let investors are looking to expand their property portfolios now as they see it as a perfect time to buy the properties they want, as well as a time when there will be more people who have to rent instead of buying themselves and getting on the property ladder.

Some sellers will see this as the right time to look into selling their property on their own, and not using an estate agent. Certainly the fees that will be saved on any purchase are a welcome bonus, and perhaps that will allow you to be a little more flexible on your pricing than someone who also has to pay their agent a commission at the end. Selling without an agent is not something that should be tackled without careful thought and preparation however, as doing things wrong will waste time and money, and will ultimately make it difficult to sell the property later through an agent if the independent route fails. Many agents will be reluctant to take on a property that has been on the market independently in the recent past, as they will feel that it has been overexposed to the market, and their chances of success are therefore diminished.

Even if you are using a real estate agent to sell, you can still get creative with your own marketing strategy. There are some wild and interesting ideas of how you can bring attention to your property sale, from having bumper stickers made up and taking out advertisements in local papers on your own. One of the more targeted approaches works very well if your property is in the catchment area of a well-regarded school. Some sellers have been known to hand out flyers at the time when parents are arriving to collect their children, as they often know someone who wants to move to the area.

If your property is particularly attractive and stands out from the crowd, you may want to consider holding an open house for potential buyers to come along. This is a particularly good idea for desirable properties – it brings in interested parties to have a more leisurely look around the property and even to take a little more time to discuss finer points with you personally, and if you are lucky it will also mean that they will see other interested potential buyers arriving to look around and spur them into making a good offer.

Don’t panic! – Despite some of the media stories to the contrary, there are still properties that are being bought and sold across the country, so there are buyers out there. They may not have the huge and easily-accessible finance options that were available a year ago, and they may not be as willing to enter into a bidding war to get your property, but they are still out there. A well-presented, loved, realistically-priced property will sell, as there will be a buyer out there who wants it.

Try to be patient in waiting for viewings, offers and negotiations – not only will you find it stressful; you will also transmit a kind of desperation to the buyer that they can use to drive your price down.

It is also a good idea to have a set of limits and a back-up plan if the market turns out not to want to buy your property in the timeframe you have in mind. Set a lower limit for offers that you will accept, a time limit that you want to lave the property on the market. Should a sale not happen, or the price you are offered is too low, consider updating and improving the property you already have – either for you to continue to enjoy, or for a fresh assault on the market.

If you need to sell quickly – Should you get to the point where you need to sell your property quickly, there are a couple of options that should at least allow you to escape from a sticky financial situation. Sometimes these options are looked down on by many in the industry, and while they do offer opportunities to those involved to make money from buying your property cheaply, they can offer sellers a way out and still give them some equity to play with.

Auctioning property in the UK has not really taken off significantly, despite numerous efforts to promote it as a good way to buy property. Some properties are auctioned, and it is often repossessed or probate properties that make up the lots. This can be a good way to make sure that you achieve a reasonable sale, so long as you don’t put an unrealistic reserve price and are prepared to accept a slightly below market value price. If you are lucky enough to have two or more bidders who are keen to get hold of your property you may get a higher price than you imagine.

Another option is to go to one of the quick sale companies in the UK market, who offer a range on service to allow you to sell your home quickly and get your money out in a short space of time. Backed by the fact that they have cash reserves, these companies are able to offer cash within days to most sellers. They make their money from buying properties below the true market value, but that is the price you pay for being able to get your hands on a significant amount of capital in a short space of time. For people who are in more dire financial straits, these companies also offer ‘sale and rent back‘ schemes to allow them to get their capital out of the property and still have their home to live in.



Repossession

When considering renting versus buying a home, forget the biased advice of those who think it is always better to buy. Instead, consider the important questions you need to ask. Here are four of them.

1. How long will you be there?

Generally, if you will be moving in the next few years, you’ll be better off renting. Of course this wasn’t true during the last real estate bubble, when home values in some areas were going up 20% or more annually. But then some of those who timed it wrong and bought in the summer of 2006 saw a 20% decline in value in the following years. How would you like to be facing a move when you owe more on your home than it is worth? Unless you want to gamble, consider buying only when you’ll be in the home for a while.

2. What will the cost of owning the home be?

Add up all the various costs. Include the mortgage payment, taxes, insurance, utilities (guess if you have to), any immediate updates or improvements you’ll be making, and a reasonable amount for maintenance. Figure the total average monthly cost of owning the home. Once you have that, you need to answer the next question.

3. What is the cost of renting a home?

Include rent plus renters insurance (if you’ll buy it) plus utilities (guess). Now you have a basis for comparison. If it’s dramatically more expensive to buy, it may be better to rent for now and bank the difference. For example, a few years ago we lived in a city where a home that was worth $160,000 could be rented for $750 per month. Utility costs would be the same in either case, and the total cost of owning worked out to about $1,250. Had someone bought the home then, they would be in a home today that is worth about the same $160,000 (that was the top of the market). Had they rented and banked the $500 per month difference, they would have almost $20,000 saved today, meaning they would be that much further ahead if they bought that home (or a different one) now.

There are a few more things to note here. Some of that mortgage payment is principle, not interest. In other words some equity would have been built up even without a rise in value – but not much. Of course if the home were sold now, there would be expenses associated with that sale, eliminating any equity gained. On the other hand, rents can rise, while a fixed rate mortgage payment will remain the same. All of this gets back to the first question about how long you’ll be living there. The longer the time, the more likely it is that buying makes more sense, at least financially. But don’t skip the next question.

4. Do you want the responsibility?

As you can see from the example above, renting versus buying a home can be the smart move at times. But even when buying puts you further ahead financially, that is not always the final determinant. I like owning a home, and in large part because of the financial advantages. But my wife and I also plan to stay here a long time. If not, we might be renting, because I don’t actually like taking care of a house.

It is something to consider, especially in those situations when buying may have such a clear asset-building edge over renting. A landlord takes care of the roof, the heating system, the painting, carpeting, and even the yard work in many cases. With your own home, all of that is in your responsibility, along with buying and repairing large appliances, resurfacing the driveway and spraying for bugs. Do you want the work of being a home owner?

Eventually most people probably should buy a home. The cost of owning a home usually won’t go up as fast as rents, at least if you have a fixed-rate mortgage. Nobody can tell you to leave. A house is a great way to build assets too. After all, even when renting versus buying a home costs less each month, how many renters really do bank the difference? But as you can see from the questions above, there are times and situations when renting makes sense.

 



Repossession

Top Quality contractors charge top dollar and nothing less. When you are budgeting for those costly updates to your home, make sure your estimates are on the money.

A basement renovation of about 1000 sq/ft would cost you around $10,000 just for drywall. Building walls add another $3,000. Bathroom at least $10,000 Laundry room another $8,000. Oh don’t forget the electrical $5,000 easy.

Of course this is a cheap renovation, It really depends on your taste. Trying to get it cheaper means the contractor will have to cut corners. What about permits! Better to get them first! You can get them yourself or we can get them for you. Permits alone can be a big hassle sometimes.

Master bathroom renovations with to of the line stuff will cost around $20,000 and up!

Vinyl Siding depends on the sq/ft, corners, sizes, colors. Standard White $1,000 $3,500 installed

don’t forget removal. $500.

When getting estimates, always remember to shop around get 2 or 3 estimates. If you see one guy a is lower than everybody else skip it! You will thank Me latter. That’s some good advise from a quality contractor.

Abba’s Service is a renovation company that can handdle you reno project from stat to finish. All workmanship is done by real pro’s. There is a difference between DIY and pro workmanship! Cost is one of them. Good companies charge good money and have good warranties to go with it. Top contractors will always install the best products for your money.

Most times it will pay to stay away from cheap companies because they are out to make a quick buck! Good companies are reputable and easy to find!



Repossession

The ability to rent video games from home without leaving the house has always been a true dream of mine. Not only does renting video games online keep you busy, but it can be very satisfying knowing you can rent as many titles as you want at anytime and generally receive them within a day or two.

Here are some Video Game Rental Statistics you might find interesting: •”U.S. consumers spent $633.6 million renting video games in 2001, and a record-breaking $6 billion buying video game software (including PC software).”

But why are people renting video games instead of buying? I guess I can’t say gamers are not buying video games. “The U.S. computer and video game software sales grew four percent in 2004 to $7.3 billion — a more than doubling of industry software.”

But why rent games? I would estimate that people rent for 4 primary reasons. 1.The convenience 2.Its cheaper 3.Able to test games 4.Time sensitive

Convenience is truly a luxury worth having these days. People are looking for ways to save time and effort. Everything these days has to be fast and easy. Online video game rental companies provide that and much more. First of all and most important they deliver the game right to your front door. No more wasting your gas going to your favorite rental store, only to find out that the game you wanted is no longer available and won’t be available until you make that drive again. Gas is too expensive these day, who wants to spend all that money driving to a video store when you can easily accomplish the same task on your home computer?

Second of all it’s simple alot cheaper. The average video store charges from $4.00 to $6.00 dollars per video game rental. That could get expensive, specially if you’re renting numerous titles per week. Most of the well known game rental clubs like GameFly, Gottaplay, Intelliflix and RentZero only charge $12.95 to $19.95 per month for unlimited video game rental. So let’s say you rent 2 titles per week at the local video store. That equal around $30.00 dollars per month compared to $12 to $13 dollars per month with the online alternative. This is a large savings at the end of the month.

Now here is the greatest part. Have you ever purchased a video game and just hated it. You can’t just return the game, you’re stuck or you have to exchange it in for store credit. So you just have to suck it up and move on to the next game, which might not live up to your standards. Renting video games online gives you the chance to test the game first before you purchase. The companies will even allow you to purchase the games at discount rates and just keep the game if you enjoy it that much.

You can keep the games as long at you like just pay the monthly fee. If you want to play 6 to 7 games a month or more you can just pay the one time monthly fee and be done with it. You don’t even have to pay for postage. That’s a deal that I can get use to.



Repossession