The Real Estate Blog

Every REALTOR® who has been practicing real estate for any length of time has encountered at least one individual who is trying to list or sell a property which he does not own. Before opening negotiations on any property—REALTOR® listed, or for sale by owner—be sure to check the ownership information on the property first.

This information can be readily obtained from title companies or directly through tax records (sometimes the local revenue commission will even provide a web interface for searching local property tax records).

If you ever encounter this situation, keep an open mind and extend the benefit of the doubt. In many cases, individuals trying to sell property without ownership simply misunderstand their rights to the property.

Choice examples:

• Tenants without an understanding of the law
• Handymen working for a cut of the sale proceeds
• Estate heirs trying to sell before probate has officially transferred title
• Life Estate holders who cannot deed fee simple ownership to the buyer

So, regardless of whether you are a buyer or an agent, trust but verify before negotiating the purchase and sale of real property.

Under the current macroeconomic climate, inflation is the rule of the day. Every year, the average buying power of the dollar decreases two to four percent. That should be discouraging news for savers, but it’s music to the ears for any buyer who has just taken out a fixed-rate 30-year mortgage on the home of his dreams. Why?

As the value of the dollar decreases, businesses increase prices to make up for it. As prices go up, wages also have to go up so that workers can maintain their current standard of living. While prices keep going up for the same goods, and wages keep going up for the same services, the principal and interest payment (the bulk of the monthly payment) on a fixed-rate mortgage remains the same!

As a result, housing expenses as a percentage of monthly income will shrink over time for buyers who take advantage of traditional fixed-rate financing. A monthly payment of $700—which may be back-breaking today—could end up costing less than your monthly fuel and utilities in as little as five years time.

Just something to think about…