Archive for January 28, 2014

Rent-to-Own House Advantages and Disadvantages for Sellers

A few years ago, you hardly heard the word rent-to-own in the real estate market. But now there are so many homes in the market and these are rising. There are no exact terms for these contracts. Generally renters and the property owners sign contract with mutually acceptable rent for one to three years. The rent paid by the renter is usually higher than normal that compensates the down payment. At the end of the period, the renter will pay the final amount to get the ownership. The rent-to-own contract has some advantages and disadvantages to the sellers.

Advantages: Advantages with the rent-to-own house to the sellers are as follows:

  • If the seller was taken a mortgage on the home, he has to pay the interest for the mortgage. In the rent-to-own method, the property ownership is not transferred to the buyer until the final payment. So, the seller can deduct the tax for paying interest.
  • The sellers can enjoy the benefit of non refundable option fee when the buyer is not willing to buy the house at the end of the contract. This fee has to be paid to the seller. It will be helpful to the seller to reduce the risk when the buyers defaults with respect to agreement, or walks away from the deal.
  • The real estate agent’s commission on a sale of home can be thousands of dollars in total. The sellers can avoid to pay the commission to real estate agents if they choose for rent-to-own option. As well it is easy to find a good buyer to sell the property quickly.
  • When seller opts for this option to sell the home, many buyers are attracted because of financial terms offered are good. It even allows time for the home buyers to get the credit or finances. These are the advantages to the sellers to command a good price even in tough market conditions.
  • Rent-to-own option provides an advantage to the sellers to avoid the vacancies in their houses. Once they are advertised for selling a home in this way, buyers will come quickly and choose one them to enter the contract.

Disadvantages: Disadvantages with the rent-to-own contract to the sellers are as follows:

  • The rent-to-own contract do not bind the buyer or renter to buy the property compulsory, and they may opt to out from buying the property at the end of the period. In this case the seller again need to start the selling process from the beginning.
  • This option may give less profit than the traditional method of selling.

A lease agreement includes rent amount, length of the leas period, rent credit for down payment terms, responsible persons for home owner fee, insurance, property taxes, repairs, maintenance and utilities during the lease period. It is sensible to review with a lawyer because multiple issues have to be addressed.
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Pros and Cons of Internet Marketing

Marketing involves promoting products and making them attract potential customers. Before the advent of the internet, most of the traditional marketing was about oral and physical advertising of the products and services. Now it is more with online and electronic advertising. Internet marketing has both technical and creative aspects including sales, advertising, development, and design. Now we will see the pros and cons with the internet marketing.

  • Pros: The following are the pros with the internet marketing
    • Easy to track: Tracking is a good advantage with the internet marketing. With the data available from the ad server, it is easy to know how many clicks are happen on the advertisement, and how many are converted into sales. It helps to understand the behavior of the customers.
  • Higher customer appeal: With the Internet marketing businesses have the advantage of attracting the consumers in a way that can results quickly. It provides a range of marketing choices for the businesses to selected or targeted audience. Thus, the overall effectiveness and the strategy of internet marketing campaigns depend on investment in marketing and goals of the business.
  • Targeted: You can pinpoint your target market for your business as per your strategies and reach them in a cost effective ways. With an ad server you can find the blogs and websites that gives updates relevant to your business, place your ad in that blog, you can get some better deals. Because consumers are already there for seeking information about the product or service.
  • Cost effective: The ads that you are placing through the internet are having lower prices than the traditional marketing methods like placing in billboards, newspapers, and magazines.
  • Cons: Cons with the internet marketing are as follows:
    • No physical presence: The main disadvantage with the Internet marketing is, customers do not feel the product physically. Even there are many pictures and videos to show, it will not give the impression as direct shopping. Because of this, many customers prefer for direct shopping. However, it is not applicable for some products as well to the services.
  • Security concerns: In the online business, security is very important for both customers and business. Some customers feel hesitate to purchase online, because they do not believe that their personal information remain private. Some business databases are offering to remove the customer information from the database if they want.
  • If the Internet marketing data is analyzed wrongly, may lead to the fault decisions.
  • Many buyers do not trust the electronic payment system to transact through online.

There are both pros and cons with the internet marketing. These will vary based on the industry and the business model that you are following. Some pros may become cons some businesses and vice versa.
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Types of Listing Contracts

There are various types of listing contracts, but a few of them are used. The Exclusive Right to Sell is the most common one, but there are the “one-time show,” the “exclusive agency listing,” and the “open listing”. Now we will see them in detail.

  • Open listing: The open listing is largely used by the people trying to sell their property or home by owner that those who are also willing to work with the real estate agents. Basically it gives the right to the real estate agent to bring buyers to bring the buyers around to view your home. The agent earns commission when their client buy your home. The home seller can give out open listings to every agent who comes around, because there is nothing exclusive about open listing. Due to this reason, no agent who accept this listing put in the Multiple Listing Service or going to market your home. The open listing is useful when, the agent feel that your home is convenient and fits the clients criteria then the agent may be willing to show it to them.
  • Onetime show: In many respects the onetime show is similar to an open listing. It is mostly used by the real estate agents those who are showing a For Sale By Owner (FSBO) to one of the clients. The home or property seller signs on the agreement, which identifies potential buyer and the guarantees agent a commission should that buyer purchase home. This prevents the seller and buyer from negotiating later and trying to avoid the agent’s commission paying.
  • Exclusive agency listings: This listing is not a popular type of listing agreement. The exclusive agency listing allows the agent to market and list your home. As well it is guaranteeing them a commission if house sells through any of the real estate agent or the company. It also allows the home seller to seek out buyers on their own. In this listing, there is no incentive to the company or to agent to spend time and money to market your home. If the seller come up with his/her own buyer, the agent or company have spent time and money cannot be get back through the commission. It is too easy for a lack of ethics and greed to enter the picture. Some unethical sellers or buyers will try to cut the agent, even it was the agent’s effort.
  • Exclusive right to sell: The exclusive right to sell giving to a real estate agent means not that your property will not be other agent involved. Your agent is the listing agent, and most important part of his/her job is to market the home to the other agents those who work with the buyers. The buyers agents will show the home to their clients. Regardless of who sell the home, the agent will earn the commission. If you are looking for full service from an agent or his/her company, this is might be the only listing they will accept.

Make clear about the listings you are going to be signed with the real estate agent or the company. There may be little changes as per the company and with the local and state government policies.
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Learning a Language Online or In-Person

Learning a language online is a new concept. The internet has exploded the community from last 10-15 years. With this technological advancements, one can talk to anyone living abroad sitting at home. In learning language, distance is no longer a factor. But for some language learners, they think that the only effective way of learning language is from the private tutor, as this can cause you to get motivated because you would be keen in knowing about how you are improving and practicing the language.

Whether online or offline, it is good idea to have knowledge about a new language.

Benefits of learning language online
When learning a language online, you can communicate with the people from around the world. It enables you in speaking German to people living in Munich or Japanese to people/teacher living in Tokyo, thus opening up lot of opportunities for varied conversation. You can easily get exposed to different types of speakers and their accents as opposed only to your language tutor.

Benefits of in person learning
Many people like learning language in person, as they feel that there is something about learning lively with a person, while there are some drawbacks like interaction in person is not matched with the technology when compared to learning language online. But when learning language in-person, there are no delays or problems with the picture and moreover, you can learn through body language, non verbal clues and many things that cannot be conveyed in online learning.

Both online and in-person language learning has its own advantages and disadvantages. The best way is the mix of both and also taking some standardized language classes with self study. It is better to have exposure when leaning a new language. The more quality exposure you get, the better you will be in long run.
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Benefits of Learning Foreign Languages Online

Many people think that learning a foreign language online is not beneficial. However, it is not correct because learning online yields more benefits than learning offline. There are many best online language courses you can approach to start learning. Apart from these, there are many sources available online in the form of materials, tools etc. benefits your learning. Check all the benefits that you can get from the following information.

Many learning methods
Online courses offer via different approaches from old to new in learning a foreign language. For various concepts of a language from vocabulary to the grammar they will offer you a variety of lesson plans along with multimedia tools that helps in reading, writing and speaking a language. This helps in the growth and understanding the language through various ways.

At the first attempt itself you cannot learn a language. Repetition is one of the method for becoming the master in that particular language you are learning. This helps you remember the words of the language. In fact, online classes makes the learners to engage throughout the language learning process, clears all the doubts of the learners through online then and there itself. You can even watch the online class video until you acquire it.

Online courses facilitate for you the best multimedia tools to learn the language, which helps you to improve the learning process at various levels i.e., from basic to the expert level. It is not that easy to learn a foreign language though the technology has exited. So, online courses have incorporated new ways that include technology or multimedia elements such as, video, audio, language learning tools (especially for spelling and grammar), webcams, etc. to make the language learning process easy. This makes the learner more interactive to learn and correct their mistakes.

Great freedom
Online classes give the learners more independence for planning, analyzing and grasping the online classes whenever they are interested. But, all that’s necessary here is self-motivation, which plays a key role in learning. Unless you are self-motivated you cannot learn any the language.

One of the best things about online courses is accessibility of the resources for learning a language at anytime, anywhere at a glance. Therefore, flexibility is the major advantage of the online classes which is not with traditional classes. You can review the lessons any number of times which gives a grip of the foreign language.

The ease and flexibility in learning a foreign language online is attracting many people to language courses online than offline.