Cape Coral Florida's Real Estate Guide

The real estate contract is the most often used, yet little understood tool in the real estate business. Whether this is your first or your fiftieth real estate transaction, it is wise to know and understand the basics of the real estate contract.

Real estate contracts are based on common law contract principles, so it is important that you understand the nuts and bolts of contract law: Offer, Counteroffer and Acceptance. In most states there are standardized contracts used by real estate agents and attorneys. The contract is generally drafted in the form of an offer. The offer is usually signed by the buyer (the offeror). The contract is not binding until the seller accepts, creating a "meeting of the minds" (called "mutual assent").

An acceptance is made if the offeree (the seller, in this case) agrees to the exact terms of the offer. If the seller replies, "I'll accept your offer if you agree to close fifteen days sooner," there is no binding contract, but rather a counteroffer. The basic building block of a contract is that there is mutual agreement.

If the offer is not accepted in the time frame and manner set forth by the buyer (offeror), then there is no contract. For example, if the contract specifies that acceptance must be made by facsimile, an acceptance by telephone call or mail will not suffice.

Unilateral Contract vs. Bilateral Contract

A real estate sales contract is a "bilateral" (two-way) agreement. The seller agrees to sell, and the buyer agrees to buy. Compare this with an option; an option is a unilateral (one-way) agreement in that the seller is obligated to sell, but the buyer is not obligated to buy - it is his option to do so. A bilateral agreement with a "liquidated damages" provision yields the same result if the buyer fails to close escrow; the seller keeps the buyer's earnest money and the deal is over.

Basic Legal Requirements of a Real Estate Contract

There are some basic requirements that must be present to make a real estate contract valid:

1. Mutual Assent. As stated earlier, there must mutual agreement or "meeting of the minds."

2. In Writing. With few exceptions, a contract for purchase and sale of real estate must be in writing to be enforceable. Thus, if a buyer makes an offer in writing and the seller accepts orally, then backs out, the buyer is out of luck.

3. Identify the Parties. The contract must identify the parties. Although not legally required, a contract commonly sets forth full names and middle initials (it helps the title company in preparation of the title commitment). If one of the parties is a corporation, it should so state (e.g., "North American Land Acquisitions, Inc., a Nevada Corporation").

4. Identify the Property. The contract must identify the property. Although not required, the legal description should be set forth. A vague description such as "my lakefront home" may not be specific enough to create a binding contract.

5. Purchase Price. The contract must state the purchase price of the property or a reasonably ascertainable figure (e.g., "appraised value as determined by ABC Appraisal Group").

6. Consideration. A contract must have consideration to be enforceable. Consideration is the benefit, interest or value that induces a promise; it is the glue that binds a contract. The amount of the consideration is not important, but rather whether there is consideration at all. It is common for a contract to state that "ten dollars and other good and valuable consideration has been paid and received."

7. Signatures. A contract must signed to be enforceable. The party signing must be of legal age and sound mind. A notary's signature or witness is not required. A facsimile signature is usually acceptable, so long as the contract states that facsimile signatures are valid.

It's easy to fix up your home if you have unlimited cash. However, you need to keep your repairs to a minimum to ensure the sale of your home stays profitable. Properties that are in good shape attract far more buyers. There are the basic improvements, such as carpet and paint, but these can still costs thousands of dollars. The following are some inexpensive ways to improve your home with very little cash.

1. New Electrical Switch Plates

This is such a minor, yet overlooked improvement. New switch plates cost about 50 cents each. You can replace the entire house with new switch plates for about $20. For the foyer, living room and other obvious areas, spring for nice brass plates. They run about $5 each - not much for added class.

2. New or Improved Doors

Another overlooked, yet cheap replacement item is doors. If you have ugly brown doors, replace them with nice white doors (you can paint them, but unless you have a spray gun it will take you three coats by hand). The basic hollow-core door is about $20. It comes pre-primed and pre-hung. For about $10 more, you can buy stylish six-panel doors. If you are doing a rehab, the extra $10 per door is well worth-it. At a minimum, consider at least changing the downstairs doors.

3. New Door Handles

In addition to changing doors, consider changing the handles. An old door handle (especially with crusted paint on it) looks drab. For about $10, you can replace them with new brass finished handles. Replace the guest bathroom and bedroom door handles with the fancy "S" handles (about $20 each).

4. Paint/Replace Trim

If the entire interior of the house does not need a paint job, consider painting the trim. New, modern custom homes typically come with beige or off-white walls and bright-white trim. Use a semi-gloss bright white on all the trim in your houses. If the floor trim is worn, cracked or just plain ugly, replace it! Home Depot carries a new foam trim that is pre-painted in several finishes and costs less than 50 cents per linear foot. Create a great first impression by adding crown molding in the entry way and living room.

5. New Front Door

You only get one chance to make a first impression. A cheap front door makes a house look cheap. An old front door makes a house look old. If you have nice heavy door, paint it a bold color using a high-gloss paint. If your front door is old, consider replacing it with a new, stylish door. For about $125, you can buy a very nice door.

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(ARA) - The proposition of selling a home is getting better with each passing day according to a recently released report from the National Association of Realtors. If you need to sell your home, a few smart strategies can help you increase your profits.

A number of real estate pundits are pointing to the recent decline in home inventory and the fact that interest rates have increased on the 30-year fixed mortgage as a positive endorsement of a healthier housing market.

Joanne Sebby, a licensed real estate broker in Chicago, and operator of a local Two Men and a Truck moving franchise, believes shes benefitting from what could be the start of a real estate "bloom," if not a full "boom."

"Bargain hunters are beginning to make moves on homes that are still way undervalued Sebby says. "The key for sellers is to get creative in marketing your homes offerings so you can become one of those homes that get a look, and hopefully sell your house in a reasonable amount of time."

While the real estate outlook is the best its been in recent memory, home loans are still more difficult to come by and home values are down an average of 20 percent, according to the NAR.  Its likely that if you are selling your house today, youll likely do so at the cost of higher profits that you may have realized in healthier markets.

Regardless, Sebby suggests there are a number of creative ways home sellers can mitigate their losses on the sale.

"Most home sales involve some service-oriented companies such as moving companies, carpet cleaners, painters or other services," she says.

Sebby suggests sellers need to think of their bottom line when selecting service companies in order to maximize profits on their home, and consider pitching in to keep costs down.

"Determine what budget you have to work with and be up front with the people providing you with estimates," Sebby says. "Ill often counsel people who call our moving company to maybe box and label everything themselves, or have all the boxes collected in the room closest to the front door. If theres a number we have to work with, well make suggestions on how to make it work to suit their needs."

Sebby suggests using the same tactics with home inspectors, painters or other service personnel.

"Do a little research and find what portion of the work you can comfortably do yourself. If youre saving money along the way its going to impact your profit on the house. A little bit here and there can really add up."

Brig Sorber, president and chief executive officer of Two Men and a Truck -- the nations largest franchised moving company -- believes the current housing market provides more opportunity than risk.

"As a business owner, you look at your operations a little closer and ideally come away with a clearer understanding of what your company needs to do to stay competitive," Sorber says. "The same principle applies to homeowners looking to sell. In an optimal market, a buyer may just scan the Internet, find a local mover and sign on the dotted line. Todays customer is more aware; theyve done competitive research on what to expect from a legitimate moving company, and that benefits those of us who value long-term relationships with our customers."

Chances are, even sellers with the best intentions wont realize the full value of their home in todays market. However, as Sebby suggests, theres no harm in optimizing your profits with a little extra effort and a do-it-yourself approach.

Courtesy of ARAcontent

Real estate values are falling too fast causing homeowners to owe more on their homes than they are worth. To try and help struggling home owners, the Obama administration has enacted a plan to give mortgage lenders incentives for refinancing homeowners' loans. The goal is to have the lender reduce homeowners' monthly mortgage payments to no more than 38% of their income. The government will then step in and match funds to get the mortgage payment down to 31% of the homeowners income, making their mortgage affordable for the long haul. Sounds good, so what's the catch?

Unfortunately, the government isn't offering mortgage lenders enough of an incentive to participate in this program. Only $6,000 per refinanced loan is being given and banks stand to lose a lot more than that on many of these loans. Some critics feel that not enough mortgage lenders will participate in this program, rendering it ineffective overall. Supporters, such as FDIC Chairman Shelia Bair, feel that it will work because lenders will participate but it is going to take time. She anticipates that there is going to be a flood of borrowers contacting their lenders so people should be patient when attempting to modify their mortgages.

Millions of people stand to be helped from this plan but the truth is that millions of people will still lose their homes. Why? Because they simply cannot afford to be homeowners. Some people entered into the real estate market before they were ready and they may not be able to helped by this plan. If you are a homeowner who is currently behind on your mortgage, contact your mortgage lender today to see what can be done to help you avoid foreclosure and keep your home.

In these tough economic times, many people in Cape Coral are suffering financially and finding it harder to pay their bills, including their mortgages, everyday. Families are thinking out of the box and trying to find new ways to pay their bills and save their homes. Lately in the news, there has been mention that tapping into your 401K or IRA might be an option to access the funds needed to make your monthly payments. It is true that you may be able to draw on your 401K for needed monies, but is it really a good idea?

On the downside, by tapping into your 401K, you are taking money from your future. Saving for your retirement these days is essential to ensuring that you have a comfortable lifestyle during your golden years. Without that savings, you may face the tough question many seniors are facing today: how can I live on just social security? In addition to that, you will pay heavy withdrawal penalties along with income tax on the money.

On the upside, you can access your 401K through a loan. You will avoid the tax penalty that comes with withdrawal of the funds and get a fixed prime rate for the life of the loan. This can help you to preserve your credit and potentially your Cape Coral home. To start the process of acquring a 401K loan, talk your employer providing that they are the employer that originated your 401K to see if they process 401K loans. If you are no longer working for that employer, you will need to start a solo 401K account with a loan option. You will have access to the lesser of $50,000 or 50% of your solo 401K account. For this loan, there is no credit check and both the interest and principal payments are returned to your 401K account.

If you know without a doubt that you will be able to repay the loan, a 401K loan may be a good option for someone facing foreclosure. Keep in mind that if you are unsuccessful that you will lose not only your Cape Coral home, but your retirement savings. Talk to a financial advisor to see if accessing your 401K account to save your home is a good option for you.