If you’ve ever dreamed of becoming a real estate investor, you’re not alone. But that phrase is deceptively simple, because for 99.9% of all people who share your dream, it remains just that – a dream. Why? Because they don’t know how to do it, they don’t take the time to LEARN how to do it, and then they simply don’t go out and DO IT!

The first step is actually the one we listed last. You have to get out of the dreaming mode and get into the DOING mode! Dreams without action will always remain dreams. They’ll never become reality.

There are a million “good” reasons not to get started, but every one of them is just an excuse – not a reason. So if you want to become an investor, you have to BE one, and not just a wannabe.

Once you’ve gotten up off the couch and put yourself into action toward achieving your dream, you need to seek out a coach or teacher. There are many, many choices. All you have to do is get on the Internet and begin to read as much as you can. You DON’T have to spend ANY money at first, because there is a vast amount of free information out there, just waiting for you to soak it up. Then, once you have a grasp on the basics, you may want to seek out a coach, but ONLY after you have a working knowledge of what real estate investing is all about. That way, you can choose your coach wisely, from an informed position.

Finally, you need to learn the techniques so thoroughly that they become second nature to you. Those techniques will involve finding properties that have great potential, becoming an effective negotiator, structuring deals that will make you the most money with the least amount of capital outlay, and then how to resell the properties for the greatest amount of profit.

Make no mistake: you CAN become a real estate investor. It will take time, knowledge, effort, and BELIEF on your part, but first of all, it will take ACTION. So believe that you can do it (because you can), get educated in how to do it (the information is readily available), and then, most importantly – DO IT!

Copyright � Jeanette J. Fisher

Every industry has its scam artists, and real estate is no exception. While most of the professionals who work in real estate are ethical and honest, there are people in the industry who want to take your money and run. Worse, there are scam artists who use real estate as a cover. These fraudsters may know nothing about real estate but simply use properties to extract money from victims. Sadly, properties mean large amounts of cash and this can attract criminals. You don’t have to be a victim, though. Whether you are investing in real estate or buying your own home, there are a few things you can do to stay safe:

1) Get it in writing.

The simplest and most effective way to stay safe is to assume that nothing is concrete until it is in writing and signed. Any verbal promised made simply does not count unless it is in a legally binding contract, so never assume anything until you have a contract in hand. Never assume that someone will follow through on a promise of any kind unless there is a viable contract.

2) Get professional advice.

An experienced real estate attorney should be looking at any property contracts you sign. If you are interested in investing, join a real estate club so that you can get advice and help from professional investors. If you are buying a home, get the help and input of a professional assessor and inspector. Interested in learning about real estate investing? Make sure that your instructor is an experienced and qualified investor themselves. Aim to work with the best professionals you can find. Whether you need to find the value of a home or the loopholes in a contract, turn to the appropriate professionals. They will help you uncover shady deals.

3) Keep abreast of common real estate schemes.

Thank goodness real estate scam artists (like other fraudsters) are not too original. In many cases, criminals will use the same scams again and again. If you are buying a home, refinancing, selling, or investing, find out from the media and from the IRS about common scams. That way, you can watch out for red flags.

4) Deal only with professionals.

Make sure that anyone you are dealing with – from a real estate agent to a real estate attorney – has the right qualifications for their job. If you are dealing with a buyer, make sure that they are honest about their employment and credit history. Scam artists will often invent elaborate backgrounds in order to gain your trust. If you detect the lie, you can detect the fraudster, so do your research.

5) Ask lots of questions.

Be willing to trust yourself to walk away if an offer is too good to be true or if your questions are not answered to your complete satisfaction. Any real estate deal you make should have a benefit for you and a benefit for the other party. If the deal seems to favor you, find out what the other party is getting.

6) Keep an eye out on your credit scores and accounts.

In many cases, real estate fraud ends with identity theft. Fraudsters may take your property under false pretenses or use your personal information to open accounts in your name. You are entitled to one free credit report per year from credit bureaus. This shows you how much you officially owe and which accounts you have open. Keeping tabs on your finances ensures that you don’t become a victim.

7) Don’t pay more than you can afford for real estate.

If you are buying, don’t pay more than you have to. Fraudsters will often try to have you spend too much or sell for too little so that they can pocket the difference. A classic scam in real estate involves a con artist with charm or an urgency encouraging you to sell your home for nothing or encouraging buying a property for far more than it is worth. Always know the value of real estate you are dealing with and budget accordingly.

These simple tips can prove helpful when doing business in real estate. These basic tips cover most types of real estate fraud and help you avoid the real estate scams that are out there. Good business common sense can help you stay safe.

This article is free for reproduction provided that the author biography, complete with links, is included along with this disclaimer.

Tampa is a city that presents variety in the way it offers something for everyone. For sports aficionados, Tampa has professional football, arena football, hockey and baseball teams to go see. For the party lovers, Tampa has Channelside, Seminole Hard Rock and Ybor. With respect to scenery, Tampa offers well kept community parks, beach fronts, and gardens. Entertainment ranges from the sophisticated type found at the Performing Arts Center, to the popular type shown in St. Pete Times Forum, Ford Amphitheater and Tampa Convention Center.

Generally, Tampa Real Estate market has been seeing trends that are consistent with the Real Estate market all over Florida in the last couple of months. There is an inherent shift from a seller to a buyer’s market. The inventory piles up steadily, thereby lowering sale prices. Tampa is clearly presenting a great deal opportunities for real estate investors. As of July 2006, 510 homes have been sold in Tampa at a median price of $245,000, whereas Florida’s overall median price is $257,800. Hence, Tampa Real Estate is still relatively affordable in comparison with other metropolitan areas around Florida. Comparing with 872 homes sold during the same period in the previous year, a marked decrease of 42% is evident in the number of homes closed. By the end of the month a total of 4413 homes were for sale in Tampa Real Estate. This is even less than 15% of the available homes that were sold last month. The Tampa Real Estate area is clearly becoming a buyers market with several opportunities for real estate investors.

Tampa Bay Real Estate has been experiencing this year a significant shift from a “red hot sellers market (1 month inventory)” into a more “normal real estate market (6 month inventory),” effectively posing some great oppportunities for buyers and investors. Tampa Bay Real Estate continues to attract a large number of families and professionals as indicated by the boost in sales price from $225,000 to $243,950. Most of this growth took place during the summer and autumn of 2005. In most areas, the prices stabilized and have even, in some cases, started to decline as compared to the end of 2005.

The number of homes for sale has boosted dramatically over the last few months, The factors the brought about such increase in inventory are investor homes that are flooding the market, home builders offering deep discounts and incentives to keep new home sales moving, and typical summer home sales. Clever buyers look for home sellers who offer buyer incentives. In addition, buyers are making offers that are typically several thousand dollars below the asking price in order to see how willing these sellers are to negotiate. Generally, buyers are being more selective this year than last year because of the relatively greater variety of homes to choose from. The rate at which homes are being listed for sale outpaces the rate of sales approximately 2 to 1.

The next several months are going to be very favorable for buyers because interest rates are still relatively low, and sellers are showing more than usual flexibility in terms of price negotiations on their real estate properties because sales are slowing down. This trend in the Tampa Real Estate market will probably persist for another six months before the market equilibrates again.

By Earl Juanico

Tampa Real Estate

Every couple of months while we’re driving from one property showing to the next a client says begrudgingly “you have such an easy job driving around looking at houses all day”. Yeah,right. The recent flurry of articles proclaiming that today’s real estate commissions are too high in relation to the amount of work agents do to receive them, haven’t provided the new Internet brokerage models large market shares. And haven’t convinced buyers and sellers to say “I wish I knew how to quit you” to realty agents.

It’s easy to stand on the outside looking in on the residential real estate industry and say, you’re overpaid. After working as a real estate broker full-time for nine years, I have to admit I’ve never worked harder. My typical day starts at 7 a.m. picking up email and voice mail, formatting electronic property brochures, editing virtual tours and booking print advertising for the coming weekends public open houses. During business hours the outwardly visible part of my day includes meetings, showing appointments, staging a new listing, returning phone calls, faxing documents, writing copy for a new listing, organizing a multi-day property tour with incoming relocation buyers, and all the other duties a sole proprietor is responsible for. It ends around 9 p.m. confirming an appointment to show a listing, receiving a counter-offer on a purchase contract and consoling a buyer who needs to back out of a contract because her boyfriend (who’s income is required for the mortgage) broke up with her. This goes on 24/7, 365 days a year.

In the purpose of full disclosure here is a list of what listing and buyer agents do. This list is excerpted from my second book “Starting and Succeeding in Real Estate” Thomson 2003.

Duties performed in the sale of a property.

Agent time and marketing expense to receive listing appointment.

Marketing material expense and time to prepare CMA (Comparative marketing analysis).

Actual time spent on listing appointment to review CMA.

Market knowledge to prepare CMA.

Actual time to meet with seller’s to sign listing agreement and related documents.

Prepare listing for market. Time and cost to prepare property brochures, order yard sign, take property photos, virtual tour, inputting into Multiple Listing Service, and marketing to other agents and public.

Time to prepare and hold brokers open house(s).

Time to prepare and hold public open house(s).

Telephone calls to set appointments.

Time spent traveling to and from property, showing property for each appointment.

Call property sellers with showing feedback.

Receive; return phone calls concerning property from public and agents.

Write ads, place ads in local/regional newspapers.

Receive contract and related documents on property, review and present to sellers.

Present acceptance/counteroffer to sellers

Counsel property sellers through negotiation.

Courier contract for changes, final signatures.

Courier earnest money deposit.

If condo procure and deliver condo declarations, by-laws, rules and application information.

Prepare brokerage worksheet for transaction.

Change property status in Multiple listing services.

Attend property inspection(s).

Negotiate inspection issues.

Contact and forward contract to attorneys, escrow agent and mortgage lender.

Communicate contract status to property seller and buyers agent.

Place under contract sign rider on for sale yard sign.

Set up and attend showing appointments for buyers to measure or have contractors, friends, and family to view property.

Set up and attend mortgage lenders appraiser’s visit to property.

Ongoing assorted phone calls/e-mail to transaction participants.

Prepare brokerage documents (closing statement, etc.) for closing.

Set up and attend final walk through before closing.

Time spent during and to, from closing location.

Attend closing.

Preparing and submitting final closed paperwork to brokerage on property.

Expense and time for client gift and thank-you.

For some seller’s: arrange for movers, inspection repairs, snow/yard maintenance, move out cleaning, utility shut off, winterizing of pipes, etc.

Duties performed in the purchase of a property.

Agent time and marketing expense to receive buyers call or email to meet with them.

Floor duty in office, weekly, monthly.

Attend office sales meetings, weekly, monthly.

Attend company sales/ award meetings.

Attend continuing education and professional development courses.

Time to prepare buyers packet for meeting.

Actual time spent meeting in office for first time with prospective buyers.

Meeting with prospective buyers to meet with mortgage lender.

Making appointments to preview properties.

Previewing potential properties for buyers.

Making appointments to view potential properties with buyers.

Accompanying buyers looking at potential properties.

Attending brokers open houses to view new inventories of homes for sale.

Write contract, disclosures etc. on buyer’s prospective property to purchase.

Deliver and present contract to seller’s agent and sellers.

Negotiate terms of contract to agreement.

Counsel buyers through negotiation.

Courier contract to buyers for sign off on changes as agreed upon in negotiation.

If condo procure and deliver condo declarations, by-laws, rules and application information.

Prepare brokerage worksheet for transaction.

Contact and forward contract to attorneys, escrow agent and mortgage lender.

Attend property inspections.

Negotiate issues.

Communicate contract status to buyers, attorneys and escrow agents.

Accompany buyers on property showings to measure, meet contractors or show property to friends and family.

Ongoing assorted phone calls/e-mail to transaction participants.

Prepare required brokerage documents for closing.

Set up and attend final walk through before closing.

Attend closing.

Purchase client thank-you gift and deliver.

Assist buyers with movers, repairs etc.

Post closing follow up with buyers.

Having your own horses is one thing and to have appropriate property to accommodate these magnificent animals’ needs is another. While it may be easy to buy your own horses as you can afford, finding an equestrian property, farm or ranch that meets your preferences and needs can be a difficult task. Especially that this type of real estate property is unlike typical residential or commercial spaces, you have to be careful in investing.

The first thing you have to prepare is your finances. All real estate endeavors rely heavily on ample funding, but with this property type, you need to have more than a few hundred thousand. Being prepared for expenses as demanded by the estate itself and your horses would be your ultimate tool to be lucrative in this investment venture. Once you have assured your financial capability and stability, you are definitely ready to purchase such asset. Meanwhile, there are certain components you have to look into buying an equestrian real estate. Prepare your own criteria for judging and searching the perfect horse farm or ranch. Here are items you can include in refining your property hunting:

Property area

There are many facets you need to consider with respect to this component. You have to look into the size. See how many horses and outhouses it can accommodate. It would be preferable if you can build or it already has a comfortable house that would enable you to stay in proximity to your animals. The entire area should be able to have room for the following:

- Barn – if the estate already has existing shelter for the horses, ensure that you will check for the soundness of the structure. Check out its storage facilities, proper ventilation, feeding and tack rooms. As for the storage facilities, assess if there is enough room to stack up ample amount of hay, grain and other sustenance needs for your animals. It is vital that the feeding rooms are secured, meaning it has locks and other security measures. This is to protect your horses from over-eating once they get loose from their stalls.

- Stalls – you have to evaluate if these provide safety for your horses. Those built with matted and non-slip stall floors and solid concrete or wood walls are preferable. Once again, size matters. You must ensure that the doors, ceilings and dividers per stall offer minimized risks of injuries. Usually, a 10 x 10 stall can provide ample room for ponies and small horses, while a 12 x 12 stall is appropriate for larger animals.

- Surroundings – most experts in equine breeding suggest that the whole horse property should have vast number of trees. During the hottest summer days, your animals would require the need for a cool shade. They could then live longer and healthier. On the other hand, there are certain locations with distinct warm climates that can still be adaptable to horse rearing. Thus, it would be best to check for the suitability of such endeavor in your region or district.

Fencing

Some properties already have existing fences. However, being the probable new owner, you can always opt for a new job done to your property. Just remember that the primary goal of this component is to secure your animals contained only within your area. Also, such essential land security measure may also add more appeal and aesthetic value to your estate. There are fencing options that are varied according to the material to be used.

- Wood – this traditional material is preferred by most equine property owners due to its natural look and beauty. However, it is one of the most expensive and difficult to maintain.

- Vinyl – most common alternative to the previous material. This is also safe and durable.

- Electric and Barbed Wire – can be used with other types of fencing. However, these both pose harm to animals. The horses could be massively injured which could lead to their poor health or eventual death. Be cautious if you opt for this that you provide another fencing layer to be established as a buffer zone.

Other facilities

The water supply or source must be guaranteed safe for drinking. Horses especially need water as they have significant muscle mass. They generate tremendous amount of body heat and sweat, thus, they easily lose bodily fluids. It is very crucial that they have generous amount of water supply all the time. If the property you have scouted has limited water supply, constructing augment irrigation system would be ideal. Also, you can make their fluid needs suffice by feeding them fresh green grass, which has 50 to 90 percent water.

Accessibility to roads and for transportation is another chief requisite for a full-functioning equine property. Delivery trucks can be accommodated easily. With well-built roads, you can also guarantee smooth operation of all your facilities.

The prospect of owning an equestrian real estate may be more expensive than other real estate ventures. But this type of property opens you up to enjoy a lavish lifestyle or even to an opportunity to profit from an ingenious business. Carefully assessing your finances and searching for the right property can surely give way to your passion for horse rearing and equine business venture.

In the aftermath of the U.S. housing bust, one California woman recently sued her real estate agent for fraud, blaming him for getting her into a home with an inflated price. The woman claimed that other comparable homes in the area were selling for much less, but the agent concealed the information from her in order to collect a hefty commission on the higher sale price.

Unfortunately, this is not an exceptional tale from the now-past housing boom. With home prices appreciating at light speed in many areas of the country, greed took over for not only real estate agents, but homebuyers, speculators, mortgage lenders, home appraisers, and Wall Street investors. The traditional rules that guided the home-buying process were tossed out the window as people on all sides of the deal saw ways to get rich quick.

So whose fault is it? Who created the mortgage mess and is there still a place for ethics in the real estate market? The answer is varied and complicated, but two things are clear. One is that many different participants share the blame for the housing crash. The other is that the real estate scene can only properly function with the ethical cooperation of all involved.

Where does the guilt start? Let’s begin with speculators. Several years ago, investors across the country started pouring money into homes in order to fix them up, rent them out, or sell them for greater profits. This led to a buying frenzy as people heard tales of the financial killing that was to be made from flipping houses. The result was an abundance of homebuyers. Homebuilders stepped up to the plate by overbuilding in many areas to capitalize on the housing frenzy.

As homes were being bought up after only minutes and hours of being on the market, the prices started to increase. Increased demand equals scarcity and higher prices, right? At that point average homebuyers started to have difficulty getting into the market as their incomes were not growing as quickly as were home prices. In order to get around this, many lied to their mortgage lenders, claiming higher salaries and greater assets.

Banks and mortgage lenders were willing to go along with the fraud because home prices were escalating so quickly that most buyers would be able to refinance or take out home equity loans with ease if they needed more cash to pay for the mortgage. Largely forgotten were the time-honored requirements of 20 percent down payments and good credit reports. Lenders created and pushed creative financing programs that included little or no down payments, risky adjustable interest rate plans, and plenty of no-income documentation loans.

Borrowers gobbled up these loans like crazy, barely pausing to read the fine print or find out how much they would be paying for their mortgage after the initial low interest period.

And of course real estate agents and housing appraisers got in on the act. They inflated appraisals to make more commission money and steered buyers into homes that were not worth as much as they were selling for.

Don’t forget Wall Street. Investors across the country and the world invested billions into these risky loans because they seemed like a sure bet with the housing market on fire. With more investors, demand for these loans increased, causing many lenders to guide borrowers into exotic mortgages even when they were not a good fit.

The result is that millions of homeowners are facing high resetting interest rates and payments, hundreds and thousands of homes are in foreclosure and default, and the stock market has plummeted with the related losses.

Rebalancing has already begun in the real estate market with lenders reverting back to strict standards of good credit and large down payments. Borrowers now have to wait and save instead of diving into huge purchases and stock investors have started looking elsewhere for safer ventures. The process will likely take several years to complete and many have suffered and will suffer financial ruin in the mean time. Only ethical and wise behavior on the part of all involved can save the market from another devastating crash.

There is a type of investor fraud in which an unsuspecting Real Estate investor believes he is buying a property worth a certain amount, when in reality the property is worth much less. This places the investor in a hopelessly upside down situation, owing more money than the property will ever be worth.

The primary way that this type of scheme is enabled is by the use of a “bogus” appraisal that over-inflates the value of the property. Once the investor has closed the deal, there is virtually nothing he or she can do to avoid the consequences of having put a 300% Loan To Value mortgage on an investment property.

This basically means that the investor will owe too much to be able to cash flow the property as a rental, and there’s no possible way that he or she will ever sell the property for enough to cover the mortgage payoff. This essentially leaves one with a bankruptcy/foreclosure, “take-your-pick” financial situation.

Investors who realize they have bought a property that will never be worth what they owe on it, may continue to make payments for months or even years in order to preserve their excellent credit rating. However, once the damage is done, this is essentially throwing good money after bad. Given that this is one of the worst scenarios an investor could ever experience, it behooves each one of us to take the necessary time to carefully examine the appraisal for the property that we are about to purchase, BEFORE we purchase it.

Since this type of fraud is dependent upon an over-inflated appraised value, an appraisal with incorrect or deliberately misleading market information will be necessary to perpetrate this fraud. Therefore if a prudent investor is careful to take the time to examine the appraisal prior to closing, or better yet, have their own appraiser do an independent appraisal, one could avoid this scenario completely. In a nutshell, it is potential investing suicide to accept an appraisal at face value without verifying for yourself the information in that appraisal.

When you just don’t know the market, it would be an excellent idea to simply pay the $250 or $300 necessary to have your own independent appraisal done.You do not want to take anyone else’s word for the appraised value of a property. YOU are going to guarantee the loan, so you are the one who must make sure you
are not being misled into paying too much.

The vast majority of investor fraud and loan fraud would be avoided if someone took the time to verify the information in the appraisal.

The greater part of a typical appraisal will deal with what are called “compable properties”. These properties are supposed to be very similar in style, quality, and size, to the property
which is the subject of the appraisal. The concept of Compable Market Analysis” or CMA, means simply that one property in a given neighborhood should be worth approximately the same amount as other similar properties in the same neighborhood.

A valid appraisal that is a reasonable and accurate estimation of market value would only use similar properties that are within a very small radius from the subject property being evaluated. The official rule is within one mile of the subject property. But in Atlanta, one mile can be the difference between a $50,000 and $500,000 ARV. So, I prefer to see comparables that are located within the very same neighborhood. One mile can make a very big difference.

The question is, “who is responsible for generating the appraisal being provided as an estimate of value?” In typical transaction between a home seller and a home buyer it is the buyers lender who orders the appraisal as part of the process of underwriting the loan. But, in most investor type transactions, the seller may provide an appraisal. When you are the buyer, you should always plan to verify any appraisal provided to you by the seller.

Many fraudulent schemes perpetrated against innocent real estate investors involve a seller who got an appraisal that was over inflated simply by paying an appraiser and asking him to provide
a specific value, in order to “make the numbers look good”. Therefore the prudent investor buyer does not want to accept the appraisal provided by the seller at face value. The appraisal should be verified or you should obtain your own independent appraisal prior to closing.

In extreme cases of well organized fraud, it is possible for the seller, the seller’s agent, the closing attorney, the appraiser and even the lender to be involved in trying to lure a buyer into a bad deal.

Usually in this type scenario, the investor buyer is offered a “full-service” type arrangement, in which everything is taken care of for them. One should always careful of any deal in which
“everything is taken care of for you”. The single most important piece of due diligence on any property is to verify the real market value before you buy. ***

Real estate scams are more and more popular, even though we can’t see them yet. Compared to robbing a bank, stealing $200,000-worth property via a false deed or an identity theft is trivial – and remarkably safe for the thieves. Their imagination is remarkable and oftentimes we can’t do much more than minimizing the damage they inflict. By becoming aware of the most common real estate scams, you may be able to protect yourself or someone you know.

False Deeds, Part 1

Most real estate frauds revolve around forged deeds. The most popular scam is using a false deed in order to get a loan secured against a property. The thief then vanishes with all the money, leaving the real owner in danger of foreclosure by the bank – oftentimes the danger is real if the owner doesn’t react on the first warnings received from the bank.

False Deeds, Part 2

Another common real estate fraud is selling a property without the owners consent. The uninhabited, recently inherited and otherwise unguarded property is the most probable target for such scams. The most inventive thieves are able to even sell the same property to several buyers at the same time. However, if they have sold it only to a single buyer, the fraud can go unnoticed for months or even a year. By that time, the “owner” is long gone, usually in another state, selling another home to someone else.

Real Deeds

The false deeds are bad enough, as such scams usually hit at random and they often can be reversed after the deed is thoroughly checked. However, the problem begins when the fraud is performed using a real deed, one that was either stolen or simply taken from the owner. The sad thing is that such thieves often recruit from our family and closest friends, people we would never suspect of anything.

The most popular way is to get some kind of authorization (or truly, just a signature) from the owner in addition to a deed. This way the thief can do whatever they like without any real risk for being caught. This is an especially popular scam used against elderly people – a nurse or a family member either take a loan in the name of the elder or just force them into taking it.

Another, even more outrageous, real estate fraud is performed by unethical door-to-door loan sellers. Under the pretext of making home repairs, they force the seniors into signing some documents which are truly high-rate loan contracts secured against the property. As most seniors are unable to repay such debt, their homes are taken by the creditor (which was its goal from the beginning) and the elder is left homeless.

Defense

Defending against such frauds is difficult. If the thieves use false deeds, it is possible to prove that you had nothing to do with the loan or purchase. However, if they use a real deed and/or have your authorization, this gets dicey. And taking effective legal actions is next to impossible if you sign the loan papers.

Here are some tips to help protect yourself from such scams: 1) never sign anything you haven’t thoroughly read and if you are in doubt have your attorney review the documents before signing; 2) throw out any peddling loan lenders; 3) keep important documents, such as your deed, in a safe deposit box.

Let me start by offering my credentials. After all, what good is advice from someone who lacks any credible knowledge or experience on the topics about which he or she purports to be an expert?

I was a licensed real estate agent in New England (I am deliberately vague for reasons that will later become obvious). I took the courses required to even sit for the real estate exam and subsequently passed the exam with one of the highest scores on record for that state. Even my broker was shocked to learn that I scored better on my exam than he had. Thereafter, I became a member of the National Association of Realtors, earning the right to the title of Realtor. I paid my required dues, and they were substantial, and attended all the required continuing education to maintain my license and Realtor title. I was recruited by and joined the ranks of Century 21, the #1 most recognized and trusted name in real estate, and endured several more weeks of the most intensive training in the industry. I completed an exhaustive course in marketing, wherein I learned all the many facets of competing for listings and representation of buyers. In my first few months as a licensed real estate agent, I grossed more than $2 million in sales. Shortly thereafter, I left New England and my real estate career behind. That, however, is another article in its own right.

Thus, I have first hand knowledge of the many tricks of the trade and marketing exploits employed to win the confidence and, ultimately, the business of homeowners and buyers. Some of these methods are legitimate marketing tools utilized by reputable real estate agents. Others are nothing more than cons designed to manipulate na�ve and, perhaps, desperate people into signing contracts that can, and usually do, result in financial hardship for the unwary homeowner or buyer.

Please do not misunderstand me. There are a number of extremely dedicated and trustworthy agents out there. I have had the privilege of working with some of them myself. Even so, I doubt I have to elaborate on the reasons why real estate agents are the subject of so much scrutiny and distrust. In recent years, real estate agents have been the target of numerous lawsuits alleging fraud, misrepresentation and negligence. Much like lawyers and used car salesmen, real estate agents have earned a nasty reputation as sleazy, money-hungry vultures in polyester suits. I, for one, never wore polyester! More importantly, my extremely heightened sense of justice precluded me from mastering the finer points of consumer deception. My opinions, therefore, on the tactics of some of the masters were not well received.

The most disreputable of all the agents I knew or had the misfortune of working with was, ironically, the hometown boy whom everyone knew and believed to be honest. Despite the fact that this man deviously plotted for months to open his own agency, while employed by a prominent and long-established agency, and subsequently stole agents and clients from his employer, the tiny, unaware community continued to offer him its support. What relevance does this have to my article? This same man, who boasted about his rather lax standards and admitted with glee to selling the wrong property to a buyer, now claims a significant portion of the real estate business in that area. He is charming, clean cut, and appears to be knowledgeable. Before long, unsuspecting potential clients begin to feel comfortable with him and actually buy into the cunning bill of goods he sells. He is not unique. Therein lies the danger.

I am sharing this information with you now to help the average homeowner or buyer gain a much deserved and overdue advantage in the treacherous world of real estate.

Real estate agents earn their living strictly by commission. They do not get paid unless they close a real estate transaction. In any given locale, there are literally hundreds (in some cases, thousands) of real estate agents all vying for a very limited number of real estate closings each year. Competition is more than fierce. Therefore, agents are forced to find ways to set themselves apart from their competition. Commission wars, like airline fare wars, are quite common. However, what use is a reduced commission if the agent you hire completely botches your transaction and causes you to lose your shirt anyway?

Real estate agents are shrewd salespeople. They are quite adept at picking up on the fears and naivet� of potential clients and will, unfortunately, not hesitate to tell you what they know you want to hear. They justify their actions with the argument that they, too, need to earn a living and must protect their income stream. Who, then, is protecting you, the consumer? Only you can protect yourself from the pitfalls of hiring the wrong real estate agent.

Here are some of the important things to consider when choosing a real estate agent:

Price – the single most critical factor in selling your home, especially now that home values are stagnating or receding. The market has definitely turned in favor of buyers. Therefore, you MUST know the comparable sales of homes in your neighborhood or town and price your home appropriately. A good real estate agent will provide you with a Comparative Market Analysis detailing all the sales of like homes in your area and will have a definitive opinion about the listing price for your home. In fact, the best agents will likely refuse to take your listing if you, the seller, have unreasonable expectations for listing price. Be wary of any agent who promises you that you can get more for your home than the comparable sales will allow. One of the favored bait-and-switch methods of unscrupulous agents is to convince you that your property is so much better than the comparable properties (this is a play on human nature and our natural yearning for compliments). They will often disparage more honest agents who may have quoted you a fair and reasonable listing price just to get you to list with them. If questioned, these agents will assure you that if all else fails, you can simply reduce your price. I have seen questionable agencies parade dozens of its agents through a home to bombard the homeowner with “expert” opinions about the value of the home to remove any doubt that the homeowner should not only list with that agency, but should also list at the suggested and over-inflated price. What do you suppose happens in nearly every one of these scenarios? The homeowner becomes frustrated when months pass without a contract and, out of desperation, reduces the price of the home. Such a drastic reduction in price signals many things to a potential buyer, none of which helps the seller. The buyer will think that the home has significant problems or that the seller is desperate to sell. In any event, the seller loses most, if not all, bargaining power and will either have to remove the home from the market or accept much less than they should to sell the property.

Marketing – more and more buyers are turning to the Internet to help them search for their next home. Very few buyers turn to newspapers or other periodicals anymore. Thus, as long as your real estate agent is a member of their regional, online multiple listing service (MLS), then your home will have the same exposure as the other homes similarly listed. MLS services are great equalizers. They generally have rules and regulations prohibiting any one agency from developing advantages over another. Nevertheless, this doesn’t stop agencies from attempting to create a perceived marketing advantage over their competitors. Some will claim that multiple ads in magazines, newspapers and other publications will give your listing more exposure and, thus, sell your home faster. Although such claims are not impossible, they are extremely improbable given the overwhelming propensity of buyers to rely on the ease and convenience of the Internet. So, be cautious if an agent claims to offer significant marketing advantages.

Brand Name Recognition – indeed, some agencies will claim that its very name will provide you some advantage in selling your home. This rarely happens. The fact is that sellers just want to sell their home for as much as they reasonably can, and buyers want to buy their home for as little as they reasonably can. That’s it. Neither could care less what name appears on the listing. Some people may claim some allegiance to a particular agency because that agency helped them in the past or someone they know works there. However, I worked for the #1 ranked agency in the world, and I can tell you with unabashed honestly that it seldom helped me to compete for listings. I lost listings to smaller, nearly unknown firms for a variety of reasons.

Experience and Reputation – this is, by far, the most important element in choosing a real estate agent, in my opinion. Other than the listing price, the only other factor that can make or break your plans to sell your home or buy a home is in selecting an agent whose reputation and experience will work to your advantage. Longevity in the business, while important, is not the only consideration. I know several agents who have more than ten years experience, yet cannot decipher the simplest contract terms. Scary, huh? You, the consumer, place your trust in these individuals. Don’t do so lightly. Whenever possible, choose a Realtor, as they are bound to abide by a stringent code of ethics. Interview agents. Ask them penetrating questions. Put them on the spot. Ask for references, and actually call them. You want results. You want an agent who has sold enough homes, successfully, that they have a large clientele and repeat business. Such an agent, after taking your listing and pricing your home correctly, will likely already have an idea of a suitable bank of potential buyers for your home. Now, I caution you to steer clear of marketing scams used by even the most well-known and successful names in real estate purporting to have buyers waiting to buy your home. Incredibly, I received such a postcard from an agent, employed by a prominent agency, claiming that I should list my home with her because she had buyers interested in my home. Instinctively, I picked up the phone to question her about her claims. Of course, it was a scam. She was embarrassed when she found out that I was a fellow agent, though she angrily tried to explain away her actions. Learn as much as you can about a real estate agent before you hire them. Found out if the agent is respected and involved in his/her community. Ask local lenders, home inspectors and appraisers which agents in your area are reputable. These individuals work with real estate agents every day. I guarantee you they will have opinions and stories to share with you that may help you to choose the right agent for you.

Be Informed and Decisive – finally, know what your goals are in selling or buying a home. Decide, in advance, what results you can and cannot live with. Do your own homework. Research the home sales and buying process. Know key terms. Unscrupulous people, regardless of the industry, most fear an informed consumer. Choose NOT to be a victim of fraud and questionable business practices.

Seek Legal Assistance – above all, remember that YOU are in charge of your own real estate transaction. Real estate agents work for YOU. Ask questions. Demand answers. If something sounds fishy or too good to be true, then it probably is. When in doubt, seek the advice and representation of a qualified attorney. Don’t allow things to escalate to the point of disaster. I base this advice on personal experience. Before I became licensed, my husband and I had a terrible experience with an agent who claimed to have more than 15 years experience. We thought we were in good hands. Nothing could have been further from the truth. Thankfully, we were sharp enough to realize that our transaction was in serious jeopardy and sought legal assistance.

Buying or selling a home is a complicated and difficult endeavor under the best of circumstances. Consequently, you need a genuine professional, a truly dedicated and experienced advocate, to guide you through the process. Be diligent in your efforts to find the right agent for you. Don’t yield to sales pressure. Take your time. Your efforts will pay off in the long run.

An article in Forbes talked about a report released by the Federal Bureau of Investigation this week stating that real estate fraud cases were on the rise. They said reports of suspicious mortgage filings increased 36% during fiscal 2008 compared with 46,700 filings the year before, and that 2/3rds of all pending FBI mortgage fraud investigations last year involved more than $1 million at a clip, putting a rough estimate of the total at $1 billion.

It’s easy to understand why people would try to exploit a bad economy to help themselves, since that’s what criminals do, but it’s scary to see just how pervasive it is. Just this week, there were four instances in four different states confirming what the FBI stated.

In North Carolina, banking regulators fined mortgage lender North American Real Estate Services Inc. $320,000 and revoked its state operating license after ruling the firm used shell companies and fictitious names to avoid state regulation. They also ordered the company to refund $60,000 in what it called “illegal” broker fees to 13 borrowers. Regulators allege the firm was engaged in a practice known as “net branching, which is where an existing mortgage company gives a franchise to another mortgage company in order to carry out its business in a particular area.” Only, in this case, all the companies were under the same umbrella. The North Carolina Commissioner of Banks’ office says it has taken enforcement actions against a number of net branch companies in recent years, with fines and settlements exceeding $1.3 million.

In Georgia, former attorney Steven H. Ballard pled guilty in federal district court to defrauding over a dozen victims in Georgia, Florida and Tennessee in a real estate investment scam. Ballard collected over $2 million between September 2002 and May 2006 in what officials called a Ponzi scheme. In a news release from federal officials, they stated “He told the victims that he was making ‘lucrative’ real estate and other investments which were not actually transacted. He often used bogus HUD-1 settlement statements, warranty deeds and sales contracts to reflect non-existent property purchases, while using a portion of the scheme proceeds to repay former victim investors. While the repayments included investors’ principal plus “returns” often exceeding 50 percent of their initial investment, those repayments were all funded with money from new victim investors.”

In the Philadelphia area, Jason Bloom was charged with keeping more than $1 million that was intended for mortgage and tax payments, according to the U.S. Attorney’s Office there. He was charged in one-count information, which is considered to be the prelude to a guilty plea. He did this over an almost 4 year period, and could be sentenced to 30 years in prison and fined $1 million.

And finally, in the Detroit area, 7 men were charged in two separate real estate schemes. In the first instance, 5 men were accused of using straw buyers (people who use, or allow their credit to be used, for the purchase of a property they never intend to use or control) to get fraudulent loans and sell homes with fake appraisals and buyers. A fifth man was arrested for finding people to pose as home buyers. In the second instance, a mortgage broker was charged with buying foreclosed, rundown or uninhabitable properties cheaply, then selling them using fake appraisals that overvalued the properties, while his partner paid underwriters to disregard any irregularities.