Real Estate and the Economy

Real estate prices are affected by a country’s economy and likewise, a country’s economy is affected by the price of real estate. When an economy is bad, it is harder for people to secure loans in order to buy a home but if the economy is good, those loans are far easier to come by.

When people have difficulty in securing loans, obviously the number of property sales goes down and as the demand is therefore less, the property prices also o down. If however the country’s economy is strong, it is easier for people to find loans and so more people buy houses. As with anything else, when the demand is high for something, the prices go up and that is the same with real estate.

How this affects the overall economy is because it is loans and spending that help to keep an economy flourishing and so when there is a drop in real estate sales, the economy can see a further decline and even perhaps trigger a recession.

The state of a country’s economy is a factor that therefore has to be considered by any house buyer. If the economy is bad but they are still able to secure a loan, they will probably be able to buy the house they want at a far lower price than if the economy was good. On the other hand though, although a loan may be easier to obtain when the economy is good, the price you pay for a house will probably be higher.

Other factors that an estate agent must take into consideration when recommending an asking price to a house seller, is the location of the house, the condition of the house and of course the size of the house.

Although a real estate agent may recommend an asking price for a property, it is of course up to the owner themselves to determine how much they will ask. A usual practice is to ask for a price perhaps 5 % to 10% above what the agent recommends as by doing that, when you get a lower offer, it may be the actual recommended price that you receive.

There are some people that like to gamble by placing a price lower than that recommended and the reason why they do that, is that they hope they will get a lot of people who want to buy it and as they try to outbid each other, you may even end up getting more than recommended asking price.

This certainly is a amble though and so not really suitable for the faint of heart. If a potential buyer makes a bid which is lower than the asking price, the estate agent will probably suggest that the seller and buyer negotiate a price which is acceptable to both and the agent will usual offer to mediate between the two in order to try and get them to meet an agreement.

I would always advise you listen to your estate agent. They have often had years of training and experience in dealing with clients.

Estate agents are typically not as on the ball when it comes to online marketing, and tend not to follow seo strategies for estate agents. However they certainly understandle people and properties.

If an economy is at a low, many home owners will try and hold back on selling until it picks up and they can place a higher asking price on the property.

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Real Estate: What to Do With Your Pets During the Showings

If you are ready to list your home, then you will want to make sure the house is in perfect shape. Something you do not want to overlook is the pet. Your house should not be so pet friendly that it is not people friendly. Here are a few things to consider about your furry friends, reptiles, canines, and winged babies.

You cannot control the situation if the prospective buyers have allergies to any animals. The best you can do is to let them know as they enter the home that there are pets within the house. If the buyer gets to the point where he or she wants to make an offer then maybe you could be more accommodating about moving the pets to a friend’s house during any future visits.

Escaping Pets
If you have any pets that like to try to escape the moment the door opens, save yourself some heartache and put them in a back room or their cage in order to prevent them from getting lose.

First of all you must keep on top of the litter box. At no time should someone enter your home and smell your pets before they see them. If you have a kitten that likes to do the drive-by scratching that so many kittens do, then warn the people.

Also check the furniture and make sure there is not cat hair all over it. Sweep up or vacuum the floors for the hair, as well.

Most people keep their birds caged, so you probably do the same. Just warn the visitors about the birds, some people are actually scared of them. And if your bird has bad language problems, you may want to cover the cage during the visit. Keep the birdcage clean and odor free.

I have a watchdog that also likes to bark. Consequently, he is loud and aggressive to strangers. He would need to be removed during showings and there should be none when I am not at home. This particular case is no negotiable. Assess your dog and his nature to decide what to do about him.

Additionally, make sure that the dog has not had an accident on the carpet or floor. The accident might have been a month ago, and in that case make sure there are no lingering smells.

Snakes, Spiders, and Rodents
Let me put this plainly, the majority of people may be scared of your pet reptiles and spiders. And your gerbil or hamster, may elicit the same response in some people. You need to let anyone who enters the home know these pets live in the home. And if the snake has free range of the house, do yourself a favor and cage him for a while.

As you ready your home to list and to show in the hopes of getting the sale, do not forget what role your personal pets may play in the showing of the home. Be smart when it comes to your pets.

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Buying a House

If you decide you want to buy a home, you basically have two choices in how you can find a suitably priced house to buy.

The first way is to spend hours and hours driving around any area where you think you would like to live, looking for “For Sale” signs. Once you have found several and made a note of which estate agency is in charge of making the sale, you visit all of them to try and determine a price and times when it may be available to visit each one.

The second way, the more popular way, is to approach an estate agency in the area you wish to live. Inform them of a price range you are prepared to pay and any specific requirements you need, like 3 bedrooms or two bathrooms.

You will also inform them of times you will be available to visit any they may suggest looking at. Once the agent has found some that meet your requirements, they will arrange for your visits to the properties to be at the times you stated you would be available.

It is therefore easy to see why the second option is the popular choice for most people, ensuring the state agency businesses will be around for the foreseeable future. In fact at a time when many types of jobs are on the decline, it is estimated that the number of estate agents will have increases between 2010 and 2020, by an impressive 20%.

One of the main reasons why it is so popular to use an estate agency though, is that if you didn’t, you would have to spend a great deal of time reading different criteria which have to be met by either national or local laws, in order to ensure any purchase was legal and binding.

The estate agents do not therefore only arrange visits to properties and accompany potential buyers on those visits, answering any questions they may have, they also have to know all the laws regarding the buying and selling of properties in their particular area.

These laws can of course vary depending on which type of property you want to buy. Although you may want to buy a home, which would be classed as a residential property, someone else may want to buy a commercial property through the same agent and so an agent’s knowledge must be in depth and varied.

Some people also buy houses in order to rent them out for profit. An estate agent can also assist investors in these types of purchases and in many cases, take on the responsibilities of the property manager after the sale is complete.

As different rules may apply to rented property than to a property which is lived in by the owner, an agent must also be fully aware of all aspects of property management and will be responsible for rent collection and maintenance of the property. They may also be able to advise the buyer as to whether or not a property would likely make a good investment.

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