Who’s liable for house defects? – Bob Aaron

April 28, 2007

Who’s liable for house defects?

When a builder wants to construct a new house, he or she applies to the local municipality and obtains a building permit. Construction begins and municipal inspectors regularly visit the house to monitor progress with the foundations, framing, roof, walls, plumbing, electrical and all the other important components of the home.

At least, that’s how it’s supposed to work. Unfortunately, it didn’t turn out that way for Joe and Joanne West, who bought a new home on Lanza Court in Hamilton.

The city didn’t issue a building permit for the house until May 17, 2005 – after it was finished. Nor did it issue any stop-work orders during construction. As a result, some of the necessary inspections, such as heating, ventilation, framing and plumbing have still not been completed some 20 months after the couple moved in.

The Wests have identified dozens of defects with their home, some of them major and some minor.

Despite the fact that the West home is registered with Tarion Warranty Corporation, the owners have not yet received any money at all and are taking some of their complaints to the Licence Appeal Tribunal.

As detailed on its website, Tarion says it “is responsible for administering the Ontario New Home Warranties Plan Act, which outlines the warranty protection new home and condominium builders must provide by law to their customers. The primary purpose of Tarion is to ensure that builders abide by this legislation, and to step in to protect consumers when builders fail to fulfill their warranty obligations.”

Earlier this month, Tarion spokesperson Janice Mandel wrote me saying she “can’t publicly discuss the specifics of the homeowner’s file,” although she did admit that Tarion is in regular contact with the Wests and “the builder has made some repairs in their home both on his own and under the direction of the City of Hamilton.”

However, Rob Mitchell, another Tarion spokesperson, had no hesitation in discussing the West case with the Hamilton Spectator.

He revealed that Tarion is prepared to cover some of the deficiencies claimed by the Wests, but only in the form of a cash payout and not by repairing the builder’s mistakes.

“Because the relationship between the builder and the homeowner has deteriorated, we decided to settle directly with the homeowner,” Mitchell told the Spectator.

I spoke to Joe West earlier this week and he told me that he had yet to receive any money from Tarion.

In the face of what they perceived as Tarion’s unsatisfactory response to their claims, the Wests have decided to bypass the Tarion Warranty Corporation and have commenced a lawsuit against the builder and the City of Hamilton claiming damages of $1.5 million.

Their case against the city for negligent inspection will be based on the law established in a 2000 decision of the Supreme Court of Canada in the case of Ingles v. Tutkaluk.

James Ingles and his wife Valerie Webb owned a 1910 Annex house on MacPherson Ave. They hired a contractor to lower the basement by 18 inches for $46,000.

The City of Toronto issued a building permit for underpinning the existing foundations. It required that the work had to be inspected and the underpinning had to be at least as wide as the existing foundations.

Two inspectors visited the site during the construction of the foundations, but were unable to measure the depth and width of the footings properly.

Within weeks of completion of the job, the basement began to flood. It turned out that the underpinning was only six inches wide instead of the required 24 inches, and they weren’t dug deep enough.

Ingles sued the city and the contractor, winning at trial and losing at the Court of Appeal.
In March 2000 the Supreme Court of Canada handed down the final word in Ingles v. Tutkaluk. A seven-judge panel ordered the city and contractor to pay Ingles $49,368 plus 10 years’ interest at 12.9 per cent and costs of the trial and appeals. In all, the city got hit for a bill of $185,000.

The Supreme Court of Canada has clearly stated that a municipality owes a duty of care to all who might be injured by negligently carrying out its statutory duties. To avoid liability, a city must exercise the standard of care that would be expected of an ordinary, reasonable and prudent inspector in the same circumstances.

Of course, the century house in the Ingles case was not covered by the new home warranty program, but the Wests will no doubt be citing it as precedent if their case gets to trial.
Unfortunately, with the Tarion warranty program not responding to their satisfaction, the Webbs must resort to a potentially long and expensive court case, and a hearing before the Licence Appeal Tribunal, to get the house they expected.

In a telephone interview last month, government services minister Gerry Phillips discussed the Tarion warranty program with me.

“We’ve got almost 500,000 homes enrolled (in the program),” Phillips said. “Just because not everybody’s happy doesn’t mean it’s not working.”

I wonder if Joe and Joanne West would agree.

What do you think? Should unhappy new homeowners have to resort to the courts to get the house they expected? I look forward to your written responses by fax or email, or by snail mail to 10 King St. E., #1400, Toronto M5C 1C3.

Bob Aaron is a Toronto real estate lawyer.He can be reached by email at bob@aaron.ca, phone 416-364-9366 or fax 416-364-3818.Visit the column archives at www.aaron.ca/columns/toronto-star-index.htm.

Pick your niche and market it – Stan Albert

Stan Albert: Pick your niche and market it

Apr 27, 2007

“In the field of observation, chance favours only the prepared mind.” – Louis Pasteur 1822-1895

Ever heard of The Long Tail? It’s the name of a book that you should read, written by Wired Magazine’s editor-in-chief, Chris Anderson.

This article was partially gleaned from the website Prof-IT, The Technology and Marketing Newsletter for Real Estate Professionals. (Issue 42). Quoting from the article: “If you’ve got any plans to see your real estate business succeed online, especially with the aid of search engines, then you better read on.”

The basic premise of TheLong Tail is that the market at large is starting to evaporate and is being replaced by dozens, if not hundreds or thousands, of “mini-markets” or “niche markets.” I’ve written and preached to agents over the years about niche markets and yet few of the registrants have heeded this call.

The book describes this trend as the “tail of a comet”. There are relatively few large players who market to the mainstream, pursued by an almost endless trail of individuals who can get almost anything they want.

Let’s illustrate this with what is happening in the computer business. Companies like Intel, Microsoft and Dell face sluggish computer sales. All are under siege from free open-source software, which uses the Net rather than the P.C., and a vast number of free unnecessary upgrades on the Internet.

Look what is happening to one of the largest icons in the computer industry. Dell is restructuring its business units and slashing costs. They’re spending $150 million on customer service, and will forge partnerships with retailers to stock its computers and open stores of their own.

So, what should we take from this example in the real estate industry? It’s about being unique. In every market, consumers will be surfing the Net to find a home that suits their wants and needs – and then they will be looking for an agent who is knowledge-specific.

In the media, the area of specialization happened shortly after Ted Turner’s CNN, 24-hour news appeared on the scene in 1980. Now look what’s happening – Google Earth, YouTube, Itunes and I could go on and on. From only a few companies in the area of Internet marketing a few years ago, we now have search engine experts, pay/click experts, article marketing, blogs and so forth. It’s as Anderson describes in his book, a niche within a niche.

So, again, I pose the question, what has this got to do with you as an agent?

Almost everything.

If you look at most Realtor’s websites, even successful ones, they get less than 50 per cent of the traffic from main keywords. If your main keywords are “Brampton Real Estate,” and you somehow managed to get to a top ranking, it would only be attracting a fraction of the loads of traffic that you should be attracting.

If I were looking to move to Brampton, but really wanted to move to a specific area like Milton, where my friends or business would be located, why would I just choose a site that was marked Brampton?

The obvious answer is that I would choose an agent who specialized in a specific area because, like a normal consumer, I would want true expertise. Maybe you’ll choose to specialize in “I sell only bungalows” or “I sell only waterfront views,” or “I specialize in large family homes.”

I think that you get the idea by now!

In Anderson’s book, he says: “The whole Long Tail thing is a big topic with BIG potential for your real estate business on the Internet.”

There is no real quick fix, but you must address this in your present and future marketing if you are to survive. Pick a niche, no matter how small, and you will rise quickly and will surpass your competition.

We are advancing so fast that it makes my head spin. I read just the other day that the technology university and college graduates are studying today will be out of date next year!

As a Realtor, you have to adapt quickly to the changes around us and use it to your advantage. Ask yourself: “How can I be more of a specialist? Where can I dominate? What niche can I completely dominate?”

Most brokerages have a decent website, but is it time for a makeover? There are many excellent web providers out there. My suggestion is to contact your current provider and go over what will make you “The Niche Marketer” in your area. See http://www.computersuperguy.com/ for some great ideas.

Now, let me remind those who are becoming involved with their websites that one guiding principal remains: You must continue to expand your spheres of influence daily in order to maintain your business. As stated in my last column, a successful Realtor will treat this business as a business and not one that is transaction-based.

And that’s the way I see it from my desk this month.

Thought for the month: “Change your thoughts and you change the world.” – Norman Vincent Peale

Stan Albert is celebrating his 36th year in active real estate. He serves on the Complaints, Compliance and Discipline Committee at RECO, and on two committees at the Toronto Real Estate Board. He is an established trainer and business consultant and can be reached at mailto:salbert@trebnet.com

Housing Boom threatens Jobs?!? – What the @#!$%

Are you kidding me?!? Apparantly Mr. Mayor David Miller thinks so. What he forgot to tell you is that the Housing Boom in Toronto threatens the tax base of Toronto. What the political pundits of Toronto, and the Mayor as well, don’t want to happen is that Toronto becomes a residential community. With more businesses in Toronto it lowers the tax burden on residents. Anyways, that’s the way I see it!

Read for yourself HERE.

Green Living

As many of you know, the environmental movement is attaching itself to all sectors of the economy including real estate. Yesterday I attended the Toronto Real Estate Board’s Realtor Quest Trade Show. Realtor Quest bills itself as Canada’s largest Realtor trade show. Well, at the trade show there was an exhibition titled “The Sustainable Condo – Using Less, Enjoying More.” It was a very interesting display of technology and nature working together to provide a healthy environment to live in.

Keep your eyes here next week as I will post pictures and a write up on this fantastic vision. In the meantime, here is a very interesting article I came across today…..

New York City Aims to Make Affordable Housing Sustainable

EDC Magazine

NEW YORK, April 12, 2007 — The Arker Companies, The Domain Companies and Neighborhood Housing Services of Staten Island announced the closing of financing for the rental component of the $60 million redevelopment of Markham Gardens, an affordable housing complex located in the West Brighton neighborhood on Staten Island’s north shore.

The redevelopment initiative — a participant in the LEED for Homes pilot program — will create a total of 290 new affordable residential units comprising 240 rental apartments and 25 two-family homes. The rebuilding of Markham Gardens is part of Mayor Michael R. Bloomberg’s 10-year New Housing Marketplace Plan to build and preserve 165,000 affordable housing units for 500,000 New Yorkers; the largest municipal affordable housing plan in the nation’s history.

Designed with environmentally sustainable, energy-efficient and green building techniques, 150 of the 240 mixed-income rental units will be reserved for Section 8 voucher recipients referred by the New York City Housing Authority, including former Markham Garden tenants wishing to return. The remaining 90 units will be affordable to residents with incomes between $30,082 to $85,080 for a family of four.

The redevelopment also includes 50 units in 25 for-sale two-family homes for moderate-income families, as well as a park, outdoor seating areas with extensive landscaping, and a 6,000-square-foot recreational center consisting of an indoor basketball court, exercise facility, computer center and classrooms.

THE Destination for Real Estate Information that MATTERS introduces…

Bob Aaron!

Bob Aaron was called to the Ontario Bar in 1972 and is a sole practitioner in the areas of real estate, corporate and commercial law, estates and wills and landlord/tenant law.

Bob was first elected a Bencher of the Law Society in 1995 and is now in his third term after being re-elected in 1999 and 2003.

He has served on a number of Law Society Committees. He is vice-chair of the Law Society Foundation and served as Vice-Chair of the Lawyers Fund for Client Compensation. In 1993 he founded the Ontario Real Estate Lawyers Association.

Bob has been a speaker at a number of continuing education programs for the Law Society, the Ontario Bar Association, the Real Estate Institute of Canada, and the Continuing Legal Education Society of Nova Scotia. He often writes legal opinions on real estate issues for other lawyers to use in litigation matters.

He writes the Title Page column every Saturday in the New in Homes section of the Toronto Star.

Bob can be reached at bob@aaron.ca and www.aaron.ca

Paralegal licensing is good news – Bob Aaron

Paralegal licensing is good news

For the first time in Ontario, paralegals are about to become a regulated profession

For the first time in Ontario history, independent paralegals will become a regulated profession when new legislation comes into effect on May 1.

On that day, the Law Society of Upper Canada becomes the regulator of those paralegals who provide a limited range of legal services directly to the public and who do not work under the supervision of a lawyer or other business employer.

Regulated paralegals will continue to be able to practise in cases before the Small Claims Court, provincial boards and agencies (such as the new Landlord and Tenant Board), and provincial offences before the Ontario Court of Justice.

As at present, they will not be able to practise in areas such as real estate law and cases before the Superior Court of Justice.

The new legislation will lead to the creation of standards of conduct and other regulatory requirements, providing better protection and recourse for consumers of all legal services.
Over the next six months, the Law Society will issue licences to paralegals who qualify for registration under the new scheme. Once the licensing regime is fully operational, the public will have access to paralegals who are regulated, educated, licensed and insured.

In recent years, the need for regulating paralegals has been the subject of considerable comment by Ontario judges and in two Ontario government reports. The most recent comment occurred in a Superior Court decision of Justice Deena Baltman last October. It was published last month in the Ontario Reports.

In December 2002, Pamela Elliot received an eviction notice from her landlord claiming rent arrears of $2,700. Shortly afterward, the Ontario Rental Housing Tribunal issued an eviction order against her.

Elliot contacted Vince Chiarelli, a paralegal, to stop the landlord’s eviction. He promised her in writing that for a fee of $1,200 plus expenses he could file an appeal to Divisional Court and obtain a stay which would “prevent or significantly delay the eviction proceedings.”
Chiarelli confirmed his retainer in a letter which said, “leave when you want to, not when they want you to leave.” He confirmed Elliot’s request for “an injunction to stop this very unfortunate and unjust eviction.”

Elliot borrowed money from her mother and paid $1,790.45 in fees and expenses to Chiarelli in two installments. He spent a total of two hours working on the tenant’s court application.
Shortly after Chiarelli filed his application to stay the eviction, the landlord applied to the court to set aside the certificate staying the proceedings. The request was successful and the tenant was evicted on March 20, 2003. She ended up living in her car after she and her children were thrown out of their apartment.

Eventually, Elliot sued Chiarelli in Small Claims Court to recover the money she paid him, based on professional negligence, breach of contract and alleged violations of the Business Practices Act.

When her suit was tossed out in Small Claims Court, Elliot appealed to the Superior Court of Justice, where she succeeded in getting an order against Chiarelli for $1,790.45 plus interest and costs.

“As a legal service provider,” Justice Baltman wrote in her decision, “Mr. Chiarelli had a duty to provide good advice. Instead, Mr. Chiarelli advised Ms. Elliot to pay him nearly $1,800 so that he could postpone her eviction by what he knew could only be a matter of weeks. That was bad advice.

“A competent legal service provider would have recommended that she use that same money for first and last month’s rent in a new apartment.”

“It doesn’t take a lawyer – or even a paralegal – to figure out that spending $1,800 to buy five weeks’ worth of time is throwing good money after bad,” the judge added. She noted that the flat fee of $1,200 for two hours’ work was “an unconscionable amount of money” for a paralegal to charge.

She also commented that some of the statements in the letter Chiarelli wrote to Elliot to confirm his retainer were “misrepresentations” or “the most blatant falsehood.”

Finally, the judge referred to a long-standing gap in the law, “as there is currently no legislation that specifically governs the behaviour of paralegals.” She expressed the hope that the then-pending paralegal legislation would close the gap in consumer protection for individuals choosing to use paralegal services for basic legal matters.

Over the next six months, paralegals will apply to the Law Society for licences to provide limited legal services to the public. These will be issued subject to proof of experience, education and good character.

Once the licences are issued, paralegals will be subject to a regulatory scheme that will require minimum standards of conduct, education, and insurance.

Hopefully, in future it will not be necessary for consumers like Pamela Elliot to resort to two court hearings to enforce minimum standards of paralegal conduct.

Bob Aaron is a Toronto real estate lawyer. He can be reached by e-mail at bob@aaron.ca, phone 416-364-9366 or fax 416-364-3818. Visit the column archives at www.aaron.ca.

New Tax Bill Codifies Tax Treatment of Canadian REITs

Thank you to KPMG for the following information:

New Tax Bill Codifies Tax Treatment of Canadian REITs

The federal government tabled a bill in the House of Commons on March 29, 2007 to implement the new tax on distributions from publicly listed or traded trusts and partnerships. For real estate investment trusts (REIT), the new bill changes some of the previously announced conditions for exemption from the new tax. Some of these changes add clarity and flexibility for existing REITs regarding their eligibility for the exemption, while others will put more REITs at risk of being offside.

For more information, read TaxNewsFlash-Canada 2007-17, available on the KPMG website at:

http://www.kpmg.ca/en/services/tax/taxnewsflashcanada.html

Taxation of Real Estate Investment Trusts

Also available is a new publication from KPMG International titled “Taxation of Real Estate Investment Trusts”, which offers a high level summary of the REIT regimes in Europe, Asia, the United States and Canada.

For a copy of this publication, visit our website at:

http://www.kpmg.ca/en/services/tax/taxationofrealestate.html

Latest INTERESTING Real Estate News!

CIBC recently came out with their version of the Housing Report. They forcast 20 years in the future. To read the report for yourself CLICK HERE.

Hey Realtors, did you know that the next homebuyer is young, single and female? You did! Great! If not, read THIS.

How much do you think this house is worth? $139,000 CDN.

Read the story on The Little House HERE.

Hey MOM! Can I move back in? To find out why I want to read HERE.

Tips for a higher home sale price

(DISCLAIMER: The following was taken from an email I received from MSN Money)

Tips for a higher home sale price

By Gordon Powers
April 11, 2007

With the busy spring housing market now finally upon us, everyone is looking for a way to help entice potential buyers. And they’re willing to spend some money to do it. How much? Well, 54% cent of Canadians think that $2,000 or more is the appropriate amount to spend in preparing a house for sale, while a surprising 25% are willing to pay over $5,000, suggests research by Royal LePage Real Estate Services.
While most observers are expecting the housing sector to slow this year, there are plenty of signs that the boom, now in its eighth year, could hang on for awhile yet. In fact, prices in Canada are still running more than 10% above year-ago levels and existing home sales up more than 6% on the year. It can’t last forever though, so if selling is on your mind this spring, consider the following:

Understand the market

If you really have to sell now, get going. List your house based on what the market dictates today, not the prices that friends and neighbours got last fall. Are home prices in your area trending upwards or downwards? Are certain types of homes selling quickly and others languishing? Is the local job market strong or is everyone around you sweating potential layoffs or factory reductions?

Don’t depend on anecdotal “facts.” Information gathered at open houses can be worth considering, provided it’s backed up with data from other sources. Invite at least three real estate agents to visit your home and give you their opinion of its likely selling price, backed up by a comprehensive analysis that shows the prices of comparable homes that did sell, those that didn’t, and why.

Be realistic from day one. If you set the price too high, nobody is going to come to have a look, even though it may be much nicer than other homes on the street. It’s always tough to match that flurry of initial activity you would have had with a realistic price.

Get some professional help

Due to the popularity of home makeover television programs, buyers are much more familiar with interior design trends than they once were. And their expectations have jumped accordingly. While not everyone can afford Debbie Travis, you’ll probably need some professional help. Enter the fluffers.

House fluffing or staging is the art of decorating a home to sell quickly and for top dollar. Interior arrangers can change the look of a room using only the things you already own – not to be confused with the interior designers and decorators, whose standard services include shopping for new stuff.

According to Royal LePage, the top three interior features when selling a home are freshly painted walls (30%), flooring (29%) and organized storage space (20%). However, when asked how important storage space was to a potential buyer, 86% ranked it as a seven out of 10 or higher, with 43% grading it as the “most important.” Another interesting finding was that while 32% of men ranked storage space as the “most important,” the number jumped to 54% for women.
When quizzed about exterior features, the number one answer was a well-maintained yard (40%). A clutter-free entrance and driveway ranked second (28%), while a newly painted exterior was third (18%).

One of the first things that Debra Gould, owner of Six Elements, a home-staging consultant in Toronto, looks at is lighting. Upgrade light fixtures and use higher-wattage bulbs since brightly lit rooms appear bigger and are more inviting, she advises.

Another effective staging technique is removing, rearranging and resizing furniture, creating space by removing oversized pieces. According to Royal LePage, three quarters of Canadians would remove furniture from their house if they thought it would increase the value of their home. Removing less frequently used items from kitchen counters, closets, and attics makes these areas more inviting as well.

Hold off on the big projects

In preparing your home for the market, spend as little money as possible. Unless you have a very long-term view, most large scale upgrades don’t offer a big payback. Kitchens and bathrooms are still considered to be the projects with the highest potential to add or maintain value in a home. An upscale siding replacement is also considered a good bet if you don’t live in a brick house.

According to the Appraisal Institute of Canada, if you are remodelling your kitchen as a face-lift prior to selling it, it’s recommended that you spend no more than 10-15% of the cost of your house. If you’re going to remain in your house for more than five years, you can spend 25% or more – and in most cases you should be able to recoup the cost of the renovation when you sell.

Try to be calm

Although agents will often talk to prospective purchasers about their new “home”, most will refer to it as a “house” when talking to vendors. Buying real estate is a very emotional decision, but you don’t want that to be true when selling. The goal is to get others to see the house as their potential home, not yours.

Is your fridge covered in photos, magnets, and school notes? Put them, along with sports trophies and collectibles, out of sight. Rent a storage area if you have to, but help foster the illusion about them living in the house themselves… hopefully, in just a few weeks time.

Make Big Money In Real Estate – Gregory Wadel

Real Estate is one of the oldest forms of investing known to man. Real Estate investing is easy and fortunes are made in a simple manner. For example, and investor decides that a desert area will eventually become an industrial development. He purchases a number of acres at a very low price. If his guess turns out to be correct, ten years later he sells the land hundred times more than what he paid for it.This can happen in any part of the country and is not an exceptional case. As the population keeps growing in the U.S., land prices continue to raise and it means that Real Estate will continue to offer one of the best investment opportunities in the country. Compared to most forms of investment, Real Estate offers greater profit potential. Of course, not every piece of land will turn out to be a winner, and despite the great potential rewards in some cases risks are involved, so the necessity of careful study before invest. One of the problem of Real Estate is his lack of liquidity. Liquid assists are those easily converted into cash like stocks or bons. Most Real Estate investments take years before you can make some money, so it is not wise to tie up all your assets in this type of investment. Your financial situation will determine how much you can wisely invest in properties. There is a difference between a land speculator and an investor. A speculator buys land with the intention to make a quick sale and fast profits and will not hold land for a long period of time. An investor, on the other hand, looks for a long time gain, and usually buys only what he can afford to keep for an indefinite period of time. If you are new at this field, it is wise to refrain from any a speculation until you become more informed, and you will have to devote considerable time to study and research. It is wise also to consult specialists before you act. Without realizing it, you already made a very successful investment in Real Estate if you bought your own home. Before you look for areas to invest, consider the condition of your own house. If you have any plan for selling it, good landscaping has been known to considerably increase the value of a home. Large profits can be attained by purchasing run-down homes and restoring them for eventual selling, but some factors have to be considered: * You must know something about architecture and remodeling and get and idea of how much it will cost to get the house back into shape. Consider what you will be able to do yourself and what it will cost you if you have to have it done. * The location of the house is the most important factor to consider. Study the neighborhood, shopping, and transportation facilities. It can also be profitable to lease land for commercial use. Land which borders highway is extremely valuable for purpose such as warehouse, gas station, etc. Land development companies frequently run advertisements offering country retreats. Be wary of these offers as they themselves make a large profit at the time they sell you the land, so it is much more profitable for you to buy your own. When you buy property, buy at a price that involves a minimum financial risk. Invest only a modest amount of your own capital, when you sell, determine if a cash or installment sale is the best, based on your over-all income tax status. Learn by looking back on the mistakes made in the past and by reviewing the opportunities you have missed. Prepare a list of all properties available in your area and think up the best future use of the properties. Learn to purchase land before there is a demand. To buy land well in advance is the only economical way at today’s prices. Then hold the property until you can resale for large profits. Don’t sell all your desirable properties and keep just lemons. If you are willing to leave the cities, you should not have any trouble finding inexpensive land for sale. If you discover a tract of land appealing to you but not listed for sale, contact the Country Register’s Office and he will tell you who is the owner. Get in touch with him and he could be willing to sell. As a rule purchasing tracts of land within thirty miles from a growing city is often a sound investment. Deal only with qualified realtors. Be careful of individuals who offer quick profits. Before taking any action, study what has been written about the subject. Know why you should and should not buy. Stay conventional and don’t buy white elephants. Look for hidden defects and make the property attractive before offering it for resale. Study local conditions and be sure it is practical. Constantly look for bargains and quality properties with exceptional features that will make the sale easier. Follow up on For Sale signs, make inquiries. When discouraging elements occur, minimize your losses by whatever means available. Don’t throw away money on repairs for poorly located property or in an area of surplus rental units. Before you attempt to sell, find out how the prospect can use the property profitably. Ask yourself if you would purchase it if you were in the prospect’s shoes. Ask yourself if the future use will fit any of the many types of specific businesses. Can a hospital, a bank, an apartment complex, condominium or professional building be located on the property. Learn to analyze the pros and cons of a real estate problem. Break it down into its various elements. Know if the answers you come up with are satisfactory and practical. Try different approaches to the problem. You are necessary looking for the “top” or “bottom” of the market, or the current economic situation. You are looking for a variety of properties which have a higher value dependent on the use that can be established for them. There are always opportunities in Real Estate during good times and bad, but it is up to you to pick and choose only those very best deals, especially during times when it appears that Real Estate values and demand have reached their peak or in times when it is practically impossible for most anyone to get bank loans due to the tight money market or impossible interest rates. You can make big money in realestate.

About The Author

Gregory Wadel If You would like to find out More about RealEstate, Please Check Out my Blog at: http://eaw-realestate.blogspot.com