For single family homes, there are two basic methods used in real estate appraisal. They are replacement cost analysis, and using comparable sales. A third appraisal method, based on capitalization, is used for income properties, and is covered in another article.

In figuring replacement cost the question is: What would it cost to buy this land and put this house on it? If the land (improved) would cost $40,000, and the house could be built for $150,000, the value indicated would be around $190,000 – if the house is fairly new. If it has used up 10% of its useful life, you can deduct $15,000 for depreciation.

Replacement cost is not really a very useful measurement. It is difficult to say what the land is worth in a city center where none is left for sale, for example, and tough to gauge depreciation. It is used as a secondary method, and for unique homes that can’t be compared easily with others. The primary method of real estate appraisal used for homes is a market analysis using comparable sales.

Real Estate Appraisal 101

To get a good idea of what a home should sell for, you need to compare it to homes that have sold. Find at least three similar homes in the same area that have sold within the last year, preferably within the last six months. This information is available in the county records, or from a real estate agent with access to the MLS (multiple listing service).

Now the confusing part. You start with the selling price of each of your comparables. If your subject home has a second bathroom, and the a comparable doesn’t, you add the value of the bathroom to the sales price of the comparable. If a comparable home has a blacktop driveway, and the subject home doesn’t, you take the value away.
(more…)

If you run a real estate business, you are well aware of the importance of marketing. If your potential clients don’t find you, they are likely to find your competitor and give their commissions to them.

Internet marketing is an excellent solution for real estate agents. A real estate agent can reach people who they would not be able to meet otherwise by using Internet marketing. Here are five tips to help you reach your potential customers:

- Create A Professional Web Site For Your Real Estate Business. You need to present a professional online image to attract real estate clients. Potential clients who find your web site will equate the professional look and feel of the web site to your own professionalism, since the web site is the only piece of information they have to evaluate your real estate business.

The web site for your real estate business should have a professional look and feel and have information about you, your business, and services that you provide to your clients. There should be a way for potential clients to contact you. After all, you would like these people to get in touch with you and start working with you.

- Publish A Real Estate Newsletter. Not everyone who comes to your web site is going to be in need of your services immediately. Many people shop around, reading information about dozens of real estate agents before picking a real estate agent to work with. Others may not need to buy or sell a house now, but they maybe in need of your services at a later date. You need to be able to keep in touch with people who come to your web site, but are not ready to hire you yet.

A newsletter is a great tool to keep in touch with your web site visitors, share information with them and educate them about your products and services. Make sure that you have a newsletter subscribe form on every page of your web site, and that you offer a compelling reason for your web site visitors to subscribe to it.
(more…)

Texas is a very big state, nearly 900 miles from east to west, with dramatic diverse landscapes and over 500 cities to explore. This remarkable state is organized into seven regions, each with its own Texan personality. Texas real estate comprises of Texas homesites, farm and ranch properties, riverfront properties on the Colorado River, fine custom homes and commercial properties in different counties inside Texas.

People who are involved in active buying and selling of real estate properties to earn commission are realtors or real estate agents. There are many real estate agents working inside Texas to help people in buying, selling or relocating a home.

A good agent will first listen to your needs, desires, and will help you find a dream home. Customer satisfaction will be their first priority. They will also help the customer to sell their home for top dollar and in a timely manner. Again, if someone is moving to Texas, the agent will assist him/her in collecting the information; they need and make their transition as smooth as possible.

Role of a real estate agent in Texas;
(more…)