By Guest Author Pedro Rodriguez

In some countries “for sale by owner” is quite common. In others the idea of selling a property in this way is perceived to be difficult, tedious and the general attitude is that selling a property should best be done through an agent.

I don’t advocate that selling your home yourself is the only way to find a buyer for your property. On the other hand, I know from many years of personal experience in this market that listing your property with an agent does not mean you will sell your property any quicker, easier or at a better price.

This article is not about trying to prevent you from using an estate agent, or the attempt of portraying agents as unnecessary. There are many good and professional agents around doing an excellent job for their clients.

I just happen to believe, that everyone can sell his or her home just as well as an agent can. But let’s get away for the moment from the merits of either method.

Let us look of how “for sale by owner” actually works in Portugal since this is the market I know well enough to comment on.

Portugal’s property market has essentially two sides. On one hand you have the Portuguese market, on the other the foreign property buyers market.

The Portuguese owners are accustomed to selling their property themselves. One look in Portuguese newspapers will confirm that. One can find a substantial amount of properties being advertised using adverts which read “private sale no agents please” or words to that effect.

A large percentage of Portuguese property owners will try and sell their home themselves since they are reluctant to pay the agent a commission of on average 3%.

A Portuguese property owner quite often will tell the agent the price he wants for his property, and the agent has to increase the price by his commission. Quite a few owners are not prepared to pay the commission from the money they receive. If the agent wants to sell the property he has to increase the price by his commission. So at the end of the day this property is now at the market at 3% more than it needs to be.

Other owners tell the agent the price they want and have already included the commission of 3 %. Which ever way you look at it, there is 3% in the price.

Few sellers will give an exclusive contract to an agent in Portugal. They list their property with multiple agents. It is also not unheard of that the same property is on the market with different agents at different prices.

Very few Portuguese sellers will make use of a solicitor. Their attitude is very simple and clear on this point “It is my property, I have the title deeds in my name, I have receipts showing that I paid all the taxes and bills relating to the property I want to sell, so why pay a solicitor? If the buyer wants to use a solicitor to check all the papers, that’s fine by me”

So here we go, very different attitudes and I am sure quite strange to a foreigner, but absolutely true. The Portuguese owner needs little or no help from an agent other than the introduction of a buyer and more often than not he thinks he can find one himself just as easily by advertising privately. The seller knows that the agent himself will use the same papers to advertise in as he does. So what is the difference?

Many Portuguese estate agents do not have effective websites and little access to foreign markets and are using local advertising only.

The foreign buyers market works a little different, not much but a little. The most significant difference relates to the buying behavior of the Portuguese people and that of foreigners wishing to buy a property abroad. Foreigners who already live in Portugal and have purchased a property once before know their way around and deal with the system accordingly.

Foreigners who wish to buy in Portugal for the first time will often select one or two Agents from the internet, trying to get a feel for the market. They will fly to Portugal a few times or have a holiday to look at properties, meet the agents with whom they have corresponded on the internet and at the end will buy from one or the other agent.

In a nutshell this is what happens 8 out of 10 times. Quite naturally, the overseas buyers are relying more on an agent. Language problems, not understanding the system, not knowing anybody, feeling strange in a foreign country are just some of the reasons.

I don’t believe that foreigners wanting to buy in Portugal are not interested in saving money on the purchase of their home. No matter what nationality Money is important. Very often it is the lack of information on how to best buy a property in a foreign country which accounts for the low percentage of foreigners actually buying direct from the owners. But with a little imagination and effort anyone seriously wishing to buy a property in Portugal could do it and save themselves a lot of money.

Foreign owned real estate agents work normally on 5% not just on 3% commission. This is a big chunk of the overall price. Money better off in your pocket.

Just consider for a moment how easy it is to find a property on the open market and how easy it is to find an English speaking solicitor and how easy it is to go and view properties yourself.

Does that sound too much of a problem? Just sit back and think how much you can gain in monetary terms buy doing a little legwork yourself.

Not every property seller is Portuguese and a lot of Portuguese speak English. And if you really need an interpreter go and see your solicitor. He will help you. He will talk to the seller He will make the viewing appointments for you.

What you need are a few reliable reference points, such as your solicitor and you are in a position to organize the purchase of your new home yourself. I like to leave you with a final thought. Let us assume you are buying a property for say 300,000 Euros.
The agent’s fee is likely to be in the region of 18,000 Euros including 21% IVA (VAT). If you like to receive some more information on how to find a property yourself, visit our website. www.sellandbuydirect.com

Bob Roscoe, Mortgage Marketing Associates, Minneapolis,m Minnesota
Money Saving Home Buying Ideas

By guest author David Cooke

Purchasing a home can be a stressful experience for anyone, but especially for first-time buyers who may not be aware that there are a host of costs associated with buying a home other than the actual purchase price and real estate commissions. It helps to know what those costs are in advance rather than get an unexpected surprise at closing and add to an already stressful experience.

Many of the costs are a factor of the purchase price, the value of the home and/or the amount of financing you are obtaining.

Closing costs. These generally refer to legal fees, property tax and utility adjustment costs and, in some provinces, land transfer taxes.

Legal costs go to cover lawyer (notary in Quebec) fees and legal transactions such as reviewing the terms of the offer, preparing and signing a mortgage, conducting a title search on the property, registering a new title, obtaining relevant documentation and determining appropriate adjustment costs.

You should consider hiring a real estate lawyer to handle your transaction. If you don’t have or know of a lawyer, your best referral source is family or friends, or through the law society in your area.

Land transfer tax. In some provinces this tax is levied when property changes hands. It varies with the purchase price of the property.

Other costs. Costs other than closing costs can include but are not limited to the following:

Property Survey. This is undertaken to verify the location of property’s boundaries, measurements and structures and identify any easements, rights of way or encroachments on your, or adjacent properties. Title insurance is often an alternative to a property survey.

Interest Adjustments. This covers any interest accrued between the closing date of the purchase and the first regular payment date of the mortgage.

Goods and Services and Sales Taxes. GST and sales taxes will depend on the type of property being purchased. Always ask if either or both of these taxes apply before signing an offer to purchase.

Service Charges. These are charges to hook up utilities such as electricity, gas, and telephone service.

Home Inspection. It can be a good idea to have an inspection done before completing the purchase to evaluate the structural and mechanical condition of the property. This could save you lots of money in future repairs.

Appraisal fees. Some purchasers want to ensure they are paying a reasonable market price for the home they are purchasing. You may want to condition your offer subject to a satisfactory appraisal by a member of the Appraisal Institute of Canada.

Mortgage Life Insurance. Special insurance coverage to cover the cost of discharging your mortgage in the event of death or severe illness is available from most lenders.

Moving costs. Although it may sound obvious, purchasers may not consider moving as a cost of buying a home. Moving costs will depend on the distance of the move and the amount of furniture and goods to be transported. Get several movers in to give you an estimate before choosing one.

Appliances. Check to see whether appliances are included in the purchase agreement. If not, you will need to go out and buy them.

Landscaping, Fencing, Decks, etc. If purchasing a newly constructed home, keep in mind that there will likely be a need to landscape and fence the yard in the first year or two.

Annual maintenance. Homes like other possessions require care and maintenance to maintain their value. You need to plan for future painting, and replacement of any needed items like roof shingles, appliances, furnaces, depending on the age of the home you are buying.

Additional information is available from Genworth Financial Canada (formerly GE Mortgage Insurance Canada) at http://www.genworth.ca.

David Cooke is a mortgage agent in Calgary,Alberta. You can find more information on mortgages on his website at http://mortgagealliance.ca/davidcooke or by calling 403-836-1201

Bob Roscoe, Mortgage Marketing Associates, Minneapolis, Minnesota
Money Saving Home Buying Ideas

By Guest Author Simon Fox

Income tax rates have been cut, the marriage penalty done away with, and the “death tax” is also on a path to no more. All of this is a result of the Bush administration’s Economic Growth and Tax Relief Reconciliation Act which was passed by a Republican congress in 2001. Another provision of that act goes into effect on January 1st, 2006, a hybrid of a traditional 401k and a traditional Roth IRA called the Roth 401k.

Yet another employer sponsored savings plan, the new Roth 401k works in almost the same way as a traditional 401k plan. Workers invest a portion of their income into a fund along with contributions from their employer (if any). The difference is that the traditional 401k is funded with “pre-tax” dollars and the Roth 401k plan uses “after-tax” dollars. However, with the Roth 401k, withdrawal of your money at retirement will be tax free like a Roth IRA. The traditional 401k plan defers the tax owed during your career until retirement.

Although it may sound like the best of both worlds, it is important to note that no employer is required to offer this new Roth 401k plan. In fact, a recent survey by employee benefits consulting firm Hewitt and Associates found that only 31 % of employers currently offering the traditional 401k plan are considering implementing the new Roth 401k.

Employees may now want to begin inquiring whether their employer will be offering the new retirement plan in 2006. Contribution limits for the retirement plans are: in 2005, $14,000 for a 401k and $4,000 for an IRA, whether Roth or traditional. In 2006, this amount will increase to $15,000 for both 401k and IRAs.

For in depth answers to your retirement and investment questions, visit to http://www.HowMuchAnswers.com - providing simple and easy to understand information about 401k plans and IRA accounts.

Bob Roscoe, Mortgage Marketing Associates, Minneapolis, Minnesota
401k for Down Payment

By Guest Author Braxton Voyles

Ever thought of owning vacation rental property? You can! Even the “Average Joe” can do it. I know this because I’m an average Joe. At least I was before I started building wealth as a vacation property owner.

Imagine having your own vacation rental property where others are paying the mortgage while you benefit from the price appreciation that’s typical with vacation properties. Oh, and even better! You get to use the property yourself.

Let me tell you how I got started, in hopes of showing you that vacation property ownership is within the “average Joe’s” reach.

In 2000, my sister invited me down to Jacksonville Beach, Florida where her family rented an old beach cottage for a week. I rode my beach cruiser around the neighborhoods and noticed many of the little beach cottages, condos, and houses were for rent for short term vacation renters. I had always been interested in real estate but never had the money to begin investing, but this piqued my interest. The thought of owning beach property that my family could use and rent out in the meantime was intriguing.

I began to call on some of the “for sale” listings and my enthusiasm was quickly tempered when I learned that an 800 square foot condo cost more than my 3 bedroom home in Tennessee. But then the thought occurred to me that every market is different and surely there was a beach market with affordable properties.

When I got home, I began to ask co-workers (at my insurance job—average Joe, right?) where they vacationed at the beach. Several people told me of Florida’s Emerald Coast. In fact, one lady gave me a directory of vacation rentals from Panama City Beach to Destin. There were hundreds of these properties. Surely, with this much volume, two things were certain in my mind: 1) lots of people must be vacationing there and, 2) competition should make prices relatively affordable. I was right on both counts.

My plan for financing the purchase of my vacation rental property was to cash out a $12,000 pension benefit received from my previous employer when I switched jobs earlier in the year. After all, the fall of the dotcoms had already damaged the stock market, and I was less than enthused about putting my money in stocks. I headed to the Emerald Coast on Labor Day weekend of 2001 to try my hand in the real estate market.

I had in my mind 2 bedroom condos for around $100k, since that would fit my family’s needs best. As we looked at properties, it was evident that a 2 bedroom condo was going to be too far outside of my $100k price range. It was then that I learned a valuable lesson in vacation property ownership: it is for an investment first, for personal use last. We found a cute little one-bedroom 700 square foot condo in an upscale beach community where one realtor had told me “you’ll never find something in that price range here.” Well, we did and we made an offer for $109,000 and the seller accepted.

This was a rather interesting time to purchase vacation property as September 11th occurred while we were contemplating making the offer. We came close several times to dropping the idea since travel and vacationing seemed to be the furthest thing from the general public’s mind after 9-11 hit. But the thought occurred: Americans won’t stop taking vacations but may change their vacation habits. Where people were FLYING before, they will simply DRIVE to closer destinations for their vacations. Our intuition turned out to be correct and we were able to list our property on the internet, renting it out ourselves and hiring local cleaning and maintenance people to help keep an eye on the property. We’ve managed to break even every year and have enjoyed many marvelous family get-a-ways.

Property appreciation? We’ve enjoyed that as well. Three years after our purchase, we were offered $350,000 for our little condo, and we turned it down because the offer was way below market price and admittedly, we’re still enjoying the property too much to sell right now.

The price appreciation enabled us to tap some of our equity and with no money out of our pockets, we purchased a second property in 2004 - another one bedroom condo for under $130k. But we had to move to a new market—this time in a beach community on the other side of Florida, near Daytona Beach, where prices were still affordable. The model worked again: Guests cover the mortgage; we enjoy the price appreciation and the use of the property. Eighteen months later, prices for similar units well surpassed $200,000. So we tapped the equity in this property just enough for the down payment and closing costs on our 3rd vacation rental: a three-bedroom condo in a beautiful gated resort near Disney World.

For our fourth property, we opted for something a little closer to home. Once again, using equity from our properties and using none of our own cash, we bought a two-bedroom cabin in the Smoky Mountains of Tennessee.

Since becoming a vacation rental owner, I have met so many people who say, “I thought of doing that but…” But, but, but. Don’t let that be you. Any “Average Joe” can do it.

About the Author
Braxton Voyles, Ooltewah, TN, USA
bvoyles@centurytel.net
More Details about vacation rental property here. Braxton and Eileen Voyles manage vacation rental properties in Florida and the Smoky Mountains of Tennessee. Braxton also consults others who wish to venture into the vacation property management.

Bob Roscoe, Mortgage Marketing Associates, Minneapolis, Minnesota
Home Buyer Don’ts