Real Estate Calculators (Real Estate Appraisal)

January 20, 2009 on 8:00 pm | In Real Estate Appraisal | No Comments

Let’s recall now how real estate professionals used to calculate things! They used to write all the figures for calculation on a sheet of paper and then used standard calculators. The results were put back on the sheet and then realtors performed re-calculation to make sure everything was right. That way they figured out commissions, deposits, mortgages, investments and so on. Thus, the figuring process took greater part of time.

Let’s recall now how real estate professionals used to calculate things! They used to write all the figures for calculation on a sheet of paper and then used standard calculators. The results were put back on the sheet and then realtors performed re-calculation to make sure everything was right. That way they figured out commissions, deposits, mortgages, investments and so on. Thus, the figuring process took greater part of time.

Now you can save your time, as there’s software to help you calculate everything you need. Real estate calculators is the software to assist now any real estate pros, but property owners as well.

Real estate calculators are really important for realtors and other professionals related to buying and selling properties. If you are an appraiser and need to evaluate properties calculators for appraisers will help you a lot. All you need to do is adjust the software once and then use it applying the saved settings just substituting necessary figures. If you are a rental agent, Rent Calculator will be the best solution for you. This software is made for counting rental fees. Some of the software programs allow tracing history of cooperation and interlines on any property. Mortgage calculators will help you count and compare the variety of mortgage programs and loans secured on real estate.

Those dealing with real estate investment and involved either in building construction or in any other real estate deals will find Investment Calculators really helpful. The investment calculators allow counting incomes and margins.

Some of the real estate calculators can compare buying real estate versus rent, which is quite important.

If you ever used real estate calculators you’d never ended up counting the way it used to be again.

Go and get the software here:
http://www.pro-real-estate-software.com/real-estate-calculators.html

Real Estate Property Management SoftwareOliver Webber

What is real estate management software?

If you own three or more real estate properties, managing them takes a lot of time. To make it easier for yourself you can either hire a person to manage your real estate or get one of the real estate management software programs.

Of course, it’s easy to hire a property manager. You pay him his salary or let him have commission off you rental income. This is not the worst choice, though quite expensive. As a matter of fact, you give this person or company the money that could be yours. How, in this case, is it possible to reduce the management expenses? The answer is – real estate management software. This will save your money and let you perform all the dos that normally took hours in few minutes.

How many properties can I manage with Real Estate Property Management Software?

Using real estate management software programs you can manage any number of properties. You can own three of them, thirty or even three hundred. With a few mouse clicks you can select a property and check its status. It’s also possible to calculate the required payments.

What options are available with real estate management software regarding payment calculation?

Calculation of payments that already took place and those to be completed on any of the properties you own. You can adjust your real estate management software program to remind you of the coming payment on a property. Moreover, some of the real estate management software programs have option of sending automatic notification to your renters about the approaching payment deadline. Another useful option of real estate management software is tracing the expiry dates of contracts and notifications about that.

Who else may use real estate management software?

Real estate management software can be used by private investors. These tools can be convenient assistants for real estate professionals as well. Application of real estate management software programs by real estate pros will give them greater advantages and bring more order in all the business processes.

Real estate management software means little investment in your efficient management.

Go and get the software here:
http://www.pro-real-estate-software.com/real-estate-management-software.html

Real Estate Appraisal SoftwareOliver Webber

What is real estate appraisal software?

Real estate appraisal requires precision and professionalism. Real estate pros are certain that it’s vitally important to objectively evaluate a property. Calculations with electronic tables are certainly just, but this usually consumes considerable amounts of precious time. Therefore, the best tool for real estate agents, brokers, appraisers, contractors and investors, as well as other professionals related to real estate, is real estate appraisal software.

What is real estate appraisal software capable of?

With real estate appraisal software you can easily and quickly perform any kind of calculation. Using real estate appraisal software you can create a database of properties that are to be appraised by yourself. Additionally, you can add descriptions of any properties and attach a corresponding image or a scheme of a property.

Is real estate software complicated in use?

As a rule, real estate appraisal software programs have user-friendly and handy interface that helps these powerful tools to become easy and clear in use. With real estate appraisal tools all the complicated terms and notions are simplified to make them usable not just for real estate professionals but for other people as well. You don’t need a degree for using real estate appraisal software. Tips and small video-tours showing every function in operation will make your work with the programs easy and fun.

How do I save my time with real estate appraisal software?

Owing to real estate appraisal software you can optimize your work and reduce the time you normally spend on appraising. Some of the programs support the great deal of appraisal peculiarities (like ‘neighbors’ for instance), that allows you to perform your appraisal not just of precise math, but all set logically.

Is there any real estate appraisal software for Palm OS and Pocket PC?

There’s real estate appraisal software specially made for Palm OS and Pocket PC’s allowing you to make fast and sharp calculations being right on a property you appraise. After coming back to the office, you can synchronize information on your Pocket or Palm with the database on a standard office computer. Even the toughest sides of appraisals are within the power of real estate appraisal software. Having made a sketch with the tool like that, you can paste it to any document or file, as well as save it as a separate JPEG-, GIF- or PNG-file and sand it via e-mail.

Thousands of real estate appraisers are already using real estate appraisal software! It’s high time to try!

Go get the software here:
http://www.pro-real-estate-software.com/real-estate-appraisal-software.html

Welcome to Pro Real Estate Software!Oliver Webber

Pro-Real-Estate-Software.com is aimed at providing information on real estate software programs for real estate agents, brokers, appraisers, property managers and other professionals, as well as people who are not directly involved in real estate business.

You will find information on real estate loan software, real estate management software, real estate appraisal software, real estate analysis software, as well as on real estate calculators and software for Pocket PC and Palm PC.

The information was initiated by the research our we made on the most frequently asked questions regarding real estate software. We tried to answer the question to help you take your decision when purchasing real estate software or downloading free of charge.

Go find the information you need in our Left Menu and learn what benefits you get from it.

Go and get here
http://www.pro-real-estate-software.com/

Real Estate Loan SoftwareOliver Webber

What is Loan Software all about?

Loan is a common way to purchase things – from a washing machine to real estate. Can you really make sure you’ve managed all the financial calculations right? Are you sure you are not spending your money for things you’d never need? How to check whether I calculate my mortgage rates right?

Is you are a customer, loan software will help you find the right answer to these and other important problems that have to do with loans.

What are the advantages of Loan Software?

Using loan software you can calculate your loan charges and check the precision of dues. The main purpose of loan software is to save your hundreds and thousands when someone made a mistake. Provide yourself with good rear in finances!

With the help of loan software you can do important calculations on your own and then print them on paper. Then meet your dealer and check how precise his calculations are if he’s clear with you. You can compare several loans and choose the one you can afford without spending too much. With loan software you can change deadlines to see how you can save money.

How do I use loan software if I deal with loans?

If you are offering loans and mortgages, you can use loan software to calculate monthly charges, dues and interest. Of course, you take care of your clients and you don’t want them to feel you cheat. Then you really need to use loan software. Loan software tools are relatively inexpensive. You can even find free downloads of loan software; however, most of the online resources will offer you free trials. But, look what you get! You can evaluate monthly payments, make amortization schemes, compare loans and working with accounts.

What are the extra options?

You can print the loan repayment history for any exact period. Loan software will give you an opportunity to check the final reports on gained or expected profits during the entire loan term, as well as for every consecutive year.

Professionals will have fun using loan software for Palm OS and Pocket PC. You will be able to perform any kind of calculation being at your client’s home or during the meeting at a restaurant.

Go get the software here: http://www.pro-real-estate-software.com/loan-software.html

From desktop to doorstep the Affinity Button – a new concept in armchair shoppingAndy Key

A recently launched shopping portal website, www.affinitybutton.com , is creating widespread interest in the UK offering visitors to its website a means of generating funds for a charity or good cause of their choice simply by browsing through the wide selection of products and services on offer through the website.

More than 200 charities and good causes have registered with the website since its launch in January this year, and visitors to the site are growing every day at a significant rate.

Give us a year, says Project Manager Andy Kay, and we aim to see every desktop in the UK equipped with one of our Affinity Buttons. They can be downloaded very easily, cost nothing and give our Buttonholders the chance to window shop from the comfort of home, see a range of great products on offer and raise money for their selected charity automatically whether they decide to buy anything or not. Every Buttonholder has a unique account with us, and can check exactly how much activity they have generated, and how much they have raised for their selected charity or good cause

The number of companies offering their products and services on the website is also growing very quickly. Everybody I speak to sees the tremendous potential of this website to attract business for them, says Andy, as the number of our Buttonholders grow, and very soon we expect our registered buttonholders to reach the million mark, anybody wanting to offer products and services to an on-line audience really cant afford to ignore this website. We can bring them hundreds, even thousands, of visitors after that, its up to them, and what they are offering, to attract business.

The Companys latest initiative, clicks for schools, aims to attract schools nationwide, their pupils and parents/guardians as Affinity Buttonholders, and is focussing on vendors attractive to this category of web shopper/browser. We are careful to ensure that all products and services offered through the Affinity Button website are entirely safe for all age groups to view, explains Andy. Whilst parents can set parental controls on what their children are able to view, we want to be sure that this sort of control is unnecessary so far as children visiting our website is concerned, and this policy is also re-assuring to our site vendors also.

For more information about affinitybutton.com and details of current promotions and offers available, telephone Andy Kay on 01260-299735 or e-mail andrew@affinitybutton.com

ABOUT THE AUTHOR

Real Estate Appraisal – Hagens Berman Investigating Wells Fargo and Rels Valuation’s Home – PR Inside

January 19, 2009 on 2:00 am | In Real Estate Appraisal | No Comments

Hagens Berman Investigating Wells Fargo and Rels Valuation’s Home – PR Inside
Hagens Berman is investigating Wells Fargo (NYSE: WFC) and its appraisal subsidiary, Rels Valuation, based on reports the companies allegedly engaged in a rigged appraisal process designed to boost profits at the expense of homeowners and independent

New incentivised schemes for (Real Estate Appraisal) affordable housing in offing: Planning – Newstrack India

January 18, 2009 on 4:00 am | In Real Estate Appraisal | No Comments

New incentivised schemes for affordable housing in offing: Planning – Newstrack India
New Delhi, Jan 14 (ANI/Business Wire India): In its forthcoming mid-term appraisal, the Planning Commission is likely to unveil couple of new incentivised schemes for real estate sector so that it acquires a priority status at times of meltdown and

Appraisal – Subsidized (Real Estate Appraisal) Housing

January 17, 2009 on 5:00 am | In Real Estate Appraisal | No Comments

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All charts may be viewed at {A HREF = http://www.poconnor.com}/article.asp?id=48

The purpose of this article is to analyze valuation methodology for several atypical types of apartments. Various circumstances and situations can cause an apartment complex to have above-or below-market rental rates, occupancy rates and operating expenses. This analysis examines the following two situations: low-income subsidized apartments, which receive above-market rental rates from HUD or another government agency, and projects that are part of the Low Income Housing Tax Credit (LIHTC) program.

The LIHTC program was established by the U.S. Congress to encourage development of affordable housing in economically disadvantaged areas. Project developers receive a tax credit for following the guidelines established by the program. They typically sell these credits to Fortune 500 corporations for 45% to 60% of the total project cost, excluding land.

The first step in the valuation process is analyzing market value definitions. The following is the definition from the Texas Property Tax Code, Section 1.04 (7): market value means the price at which a property would transfer for cash or its equivalent under prevailing market conditions if: exposed for sale in the open market with a reasonable time for the seller to find a purchaser, both the seller and the purchaser know of all the uses and purposes to which the property is adapted and for which it is capable of being used and of the enforceable restrictions to its use, and both the seller and the purchaser seek to maximize their gains and neither is in a position to take advantage of the exigencies of the other.

Section (b) of the Texas Property Tax Code further requires: the market value of property shall be determined by the application of generally accepted appraisal techniques, and the same or similar appraisal techniques shall be used in appraising the same or similar kinds of property. However, each property shall be appraised based upon the individual characteristics that affect the property’s market value.

The definition of market value, according to the 10th edition of The Appraisal of Real Estate published in 1992 by the Appraisal Institute, is: market value is the most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress.

The term which requires further review in the above definition is “knowledgeably.” Is the purchaser knowledgeable regarding the effort required to comply with subsidized housing program requirements and tenants? Does he consider the effort to be rent for real estate or compensation for services? Does the purchaser of an LIHTC project understand that maximum rents are now established for at least 15 years based on deed restrictions? (LIHTC deed restrictions are now required for 30 years in Texas and most other states.)

Fee simple estate is defined in the third edition of the Dictionary of Real Estate Appraisal published by the Appraisal Institute as: absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat.

The practice in Texas is to base the assessed value on the value of the fee simple estate as opposed to the leased fee estate. This analysis is based on valuation of the fee simple estate instead of the leased fee estate.

The definition of leased fee estate in the third edition of the Dictionary of Real Estate Appraisal is: an ownership interest held by a landlord with the rights of use and occupancy conveyed by lease to others. The rights of the lessor (the leased fee owner) and the lessee are specified by contract terms contained within the lease.

The primary difference between the fee simple estate and the leased fee estate is that the tenant and landlord are each bound by commitments to pay rent and allow use of the property for a term. The contract rent agreed to between landlord and tenant may or may not be equal to market rent. For example, if a landlord entered into a 30-year lease for rent of $5 per square foot 15 years ago (when market rent was $5 per square foot) and the current market rent is $10 per square foot, the tenant has a substantial advantage. The tenant has a leasehold estate which may or may not have value depending on the term of the lease, the contract rent and market rent.

The Dictionary of Real Estate Appraisal defines leasehold estate as the interest held by the lessee (the tenant or renter) through a lease conveying the rights of use and occupancy for a stated term under certain conditions.

Conversely, if the tenant agreed to a rental rate of $15 per square foot in a strong market 10 years ago, and is committed to pay that rent for another 10 years, there is a substantial advantage to the landlord, and the tenant has a leasehold estate with a negative value. Practice in Texas is to establish the assessed value based on the fee simple estate instead of the leased fee estate. Therefore, the relevant criteria for determining market value includes market rent, market expenses, market occupancy and market derived capitalization rates. If a taxpayer made a poor business decision 10 years ago and has substantially below-market rent, it is inequitable for the taxing entities to reduce their ad valorem tax due to the bad business decision of the property owner. Conversely, if a property owner made a fortuitous or wise business decision and entered into an above-market lease, it is not appropriate to collect an above-average level of ad valorem tax from him because of his luck or prudence.

Market rent is defined by the third edition of the Dictionary of Real Estate Appraisal as: the rental income that a property would most probably command in the open market; indicated by current rents paid and asked for comparable space as of the date of appraisal.

Market rent is the compensation paid for the use of the real estate. It should not include compensation paid for factors other than the use of the real estate such as additional services which are not typically provided.

The next step in this process is to analyze valuation of properties which participate in subsidized programs which receive above-market rental rates. The final section will address valuation of projects in the LIHTC program.

Valuation of Subsidized Housing

This analysis will consider both the income and the sales comparison approaches to value. The cost approach is not utilized since it would provide similar results after calculating external obsolescence due to differences in rental rates.

Income Approach:

Apartment owners who participate in subsidized housing programs may or may not receive above-market rental rates. For many years, HUD offered above-market rental rates as an inducement to property owners to participate in the program. There are two reasons for HUD paying an above-market rental rate: to compensate for the inconvenience of dealing with a bureaucratic government program which mandates detailed inspections not typically required in the private market; and to compensate for working with residents who tend to be at the lowest socioeconomic level in our society. It has not been unusual for HUD to pay contract rent of $0.70 to $0.80 per square foot per month for subsidized housing projects, even though the market rent for competing projects might only be $0.45 to $ 0.50 per square foot per month. The rent and sales comparables used in this analysis are located in a neighborhood characterized by income levels in the bottom quartile of the Houston area, minimal new construction of residential or commercial buildings for 25 years and heterogeneous levels of quality and appeal. Some sections, such as Riverside, have experienced gentrification, but other areas are marked by poorly maintained properties. Both the market rent projects and the subsidized rent projects are located in the area south of downtown Houston, bound by 288 to the west, Interstate-45 to the east, and Almeda-Genoa to the south. Consider the following tables which list rental rates for projects which do not participate in a subsidy program (market rent projects) and projects which do participate in a subsidized rent program:

CHART

The average rental rate for the market rent complexes is $0.45 to $0.50 per square foot per month and $311 to $391 per unit per month versus $0.70 to $0.87 per square foot per month and $458 to $538 unit per month for the subsidized rent projects.

Sources at the Houston HUD office indicate that expiring contracts for subsidized properties are being reviewed – if the owner so desires – for only one year. After that term, it is uncertain which course the plan will take. Indications that are subsidized programs are changing from the current contract rent method to a resident voucher program. The voucher method would involve issuing certificates to individuals who may then use the voucher at any participating property. The voucher amount would be based on individual’s income. In addition to the plan to phase out above-market subsidized rents, another reason not to use contract rent when valuing subsidized housing is it is inconsistent with national public policy to penalize apartment operators participating in this program since the difference between market rent and contract rent is compensation for participating in the program and working with the low-income residents. It would also be inconsistent with practice in Texas to use contract rent instead of market rent when performing the income approach to value. The three reasons contract rent should not be used in valuation are: it may include compensation for participation in the program and may not be equal to market rent, current plans are to eliminate the program and, it is inconsistent with national public policy Another factor to consider when performing the income approach is the market occupancy. Since tenants at the subsidized housing projects do not pay their rent or pay very minimal rent, the occupancy tends to be at above-market level. Consider the following tables which list the occupancy rates for both market rent projects and subsidized rent projects:

Market Rent Projects

CHART

Note that the average occupancy rate for market rent projects in only 73% compared to 97% for subsidized rent projects.

Sample income approaches to value for a market rent project and a subsidized rent project are shown below. Both approaches assume a 300-unit apartment complex with 160,000 net rentable square feet.

Market Rent Projects

CHART

The example above uses rent of $0.50 per square foot per month for the market rent project and $0.70 per square foot per month for the subsidized rent project. The vacancy rate is 10% for the market rent project versus only 5% for the subsidized rent project. The operating expenses are estimated to be $3.50 per square foot for the market rent project – which is within the range typically used for low-income multifamily housing in the Houston area. The level has been increased slightly for the subsidized rent project to account for the cost of communications with the government and compliance with their special requests. The capitalization rates for both these cases has been estimated to be 15%, which is low as will be demonstrated by the sales price per unit in the sales comparison approach. Note that the value indicated using market rent is $2,026,667 versus $4,512,000 based on using the subsidized rent. The higher contract rent and lower vacancy for the subsidized rent project results in a value via the income approach that is 23% higher than the value indicated by the market rent project.

About the Author

Pat O’Connor, MAI is president of O’Connor & Associates, 130-person firm in business since 1974. O’Connor & Associates is the largest tax consultant in Texas, handled more than 43,000 administrative appeals in 100 counties in 2005 and is currently coordinating over 2,000 judicial appeals. O’Connor & Associates also provides real estate appraisal, cost segregation and market research services. For more information, visit {A HREF = http://www.cutmytaxes.com}