They believe, and rightly so, that real estate practitioners, especially a real estate agent or a realtor, can help them sell or buy a property faster than when they do it by themselves.

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Is A Real Estate Agent the same as A Realtor?

In the eyes of the public, “real estate agent” and “realtor” are the same and used interchangeably. However, there’s a great difference between the two.

Before the passage of the law, the Real Estate Service Act of the Philippines on July 29, 2009, a real estate agent is a salesperson licensed by the Department of Trade and Industry (DTI) upon the recommendation of his/her real estate broker. The real estate agent is given permission to represent the broker in the buying and selling of real estate properties.

A realtor is a licensed real estate broker.  In the Philippines, the right to use the emblem and the term REALTOR® is exclusive to the licensed real estate brokers who are regular members of a realty board duly affiliated with the Philippine Association of Realtors® Boards (PAREB), Inc.

Therefore, not all licensed real estate brokers are realtors, but all realtors are licensed real estate brokers.
Is A Realtor Better Than Real Estate Agent or Vice-Versa?

There is no comparison between the two.  Realtors, as licensed real estate brokers, have lots of success in helping their clients, while some Agents struggle to satisfy their clients.

However,  many people in buying or selling their properties prefer Realtors because they must comply with a Code of Ethics being licensed professionals  and the standard set by PAREB, which in part gives the client some additional assurance of ethical conduct.

Though his real estate investment did not make him rich overnight, it made life for him and his family comfortable.

Presently, Fred has a four (4) door apartment building and three (3) houses which he rents out to tenants, earning for him a sure monthly income.

In fact, the rental income that he was getting now was more than two times his latest salary when he was still employed as a sales supervisor of a trading company before he was retrenched.

If you want to make money in real estate as a landlord like Fred, here’s how:

1. Find an old house or an old apartment building to buy. Buying old houses or apartment buildings are cheaper than buying new.

2. Buy the old house or apartment building for a little down payment as possible from your own pocket, and borrow as much as possible, by mortgaging the property.

3. Increase the value of the property immediately by renovating and upgrading it.

4. Once done, rent out the property. Since shelter is basic and people always need a place to live, a house or an apartment unit is always in demand.

5. Pay your mortgage, as well as the maintenance of the property, from the rental income. After paying the mortgage and the maintenance expenses, the remaining balance from the rental income will be yours to keep, to invest, or to make a living out of it.

Indeed, real estate is always a good investment, and one of these is by being a landlord.

Recently one of my clients, Anne, came to my office, distraught. She told me that her tenants, a family of 5 who had been leasing her second house, was delayed in the payment of rents for two months now. Anne was asking for my advice on what to do.

Anne’s problem is not uncommon for landlords who rent out their properties to tenants.

If you are renting your property or planning to engage in that business, finding good tenants is key to your success as a landlord.

Finding a good tenant is not as simple as a walk in the park. And do not believe your prospective tenant when he tell you that he will pay the rent on time, or treat your property with outmost care.

You have to conduct first basic verification or background check on your prospective tenants before you close the deal. Here’s how:

1. Credit check.  Do a credit check with a prospective tenant. Call the credit association in your area, with the prospective tenant’s prior permission. Ask the tenant who are his creditors and inquire from these creditors the paying history of the tenant.

You should never rent to someone with a poor credit history. If the prospective tenant refuses to allow you to run a credit check, it is a sign that you will have problem later on in collection. Don’t waste your time with him, and move on to the next applicant.

2. Personal references check. Ask for at least 3 character references and call these people about the prospective tenants. This is to ensure that the applicants are good and responsible people.

3. Employers check. Talk to the tenant’s previous and current employers to make sure that the applicant is employed and that he is paid the salary that he is claiming to be.

4. Previous landlords check. The best information about a tenant comes from the previous landlord. Inquire from the previous landlord if the tenant is a good payer, e.g. if he paid the rent on time, damaged the property, disturbed the neighbors, or created other problems.

Be creative about your due diligence. Remember once again: Having good tenants is key to your success as a landlord.

Liza has found out that there were some cracks appearing in the walls of her bedroom, and also cracks in the floor of the kitchen.  She also discovered that the street post in front of her house was not energized yet, making the street dark at night.

As a realtor I have encountered some problems experienced by buyers of new houses. So, to help many would-be buyers of new homes, here are the things to consider first before you make that major purchase of your life:

1. Inconvenient Location. Many subdivisions these days tend to be in far away locations, far from the city center. Thus you may have a longer time travelling or commuting to work, your children to school, and to the malls to shop.

2. Pricier. New homes are now more expensive than existing ones. This is because of the increases in the prices of building materials like cement and steel, and cost of labor.

3. Small yard. Since land appreciates over time, it has become very expensive nowadays, on a per square meter basis. So architects and builders have squeezed in their designs the house on a smaller lot. Five years ago, the lot for a low-cost house is 250 sq. meters, then reduced to 150 sq. meters, then down to 100 sq. meters. Today some low-cost housing projects have only on 80 sq. meter lots.

4. Fees and dues. Like condominiums and townhouses, many new subdivisions now collect from the homeowners monthly association dues.  This monthly membership dues is used for expenses like security, garbage collection, electric lights. This means you have to spend extra from your monthly budget.

5. Settling problems. Every new house has to “settle” into its site. It depends on the soil, the location, and the materials used in the house, as well as the quality of construction. The complaint of my friend Liza was related to this “settling” problems.

Although buying a new home offers many advantages, it also has its own disadvantages.

It is wise to consider the disadvantages, like those discussed above, and weigh them against the benefits of buying a new home, especially if you are a first time buyer. This way, you can avoid a lot of worries and even sleepless nights.

What is the main reason why the Philippines has enacted a new law? The reason is that the government wants to regulate the practice of real estate service in the Philippines.

Under the law, the real estate service practitioners are the real estate consultants, real estate appraisers, real estate assessors, real estate brokers, and real estate salespersons. The real estate salesperson performs service for, and in behalf of, a real estate broker.

In passing the new law, the government recognizes the vital role of real estate service practitioners in the social, political, economic development and progress of the country by promoting the real estate market.

The government, through the new law, wants to stimulate economic activity and enhance its income from real property-based transactions.

Hence, the government has declared that it shall develop and nurture through proper and effective regulation and supervision a corps of technically competent, responsible and respected professional real estate service practitioners whose standards of practice and service shall be globally competitive and will promote the growth of the real estate industry.

For this purpose, the government is creating a professional regulatory board of real estate service, this time to be under the Philippine Regulation Commission (PRC). Formerly, the regulation of the real estate service professionals was under the Department of Trade and Industry (DTI), through its Bureau of Trade Regulation and Consumer Protection (BTRCP).

One of the features of the law is a course leading to a Bachelor’s degree in Real Estate Service, as a pre-requisite or qualification to be admitted to the licensure examination to be conducted by the Philippine Regulation Commission. The new course will be implemented by the Commission for Higher Education (CHED) and will be offered by the colleges and universities in the country.

The law also requires that all real estate service practitioners shall indicate on the documents that they sign, use, or issue in connection with the practice of their  profession the following:  certificate of registration, professional identification card, Professional Tax Receipt (PRT) number, and APO receipt number and the date of issuance and the duration and validity. This is to ensure that unlicensed or “colurum” persons are identified, fined, and penalized by imprisonment when caught.

Indeed, the new law will professionalize the activities of persons engaged in real estate service, particularly the real estate brokers, real estate appraisers, and real estate consultants.

]]> http://www.oneworld-realty.com/the-new-real-estate-service-law-professionalizing-the-real-estate-practitioners/feed/ 2 http://www.oneworld-realty.com/buying-a-home-during-pre-selling-stage-is-risky/ http://www.oneworld-realty.com/buying-a-home-during-pre-selling-stage-is-risky/#comments Sat, 11 Jul 2009 07:59:18 +0000 yen http://businesspherealty.com/?p=116 Many subdivision developers and their sales agents have been enticing the public, especially the would-be buyers, to buy their lot or house and lot packages in the subdivisions that they are constructing, at a cheaper price.

Their promotion pitch and come-ons are like this: The price is cheaper because it is still pre-development price, or pre-selling stage, and that once the project is completed, prices will go up by 50% or even up to 100% of the current price. After all, they will assure you, the project will be completed in a few months, so why not take advantage of the rare opportunity now?

So, what would you do?  Take advantage of the promo and buy a cheaper but a non-existent house or undeveloped and untitled lot at a pre-development price to save a lot?

Many buyers and investors are misled into buying a lot, or house and lot package, at projects at  pre-development stages because of the attractive offers of the developers and their sales agents. However, there are many buyers who regretted their decision, while others have still have unresolved problems to this day, with their hard earned money gone with the wind.

The truth is, buying a house and lot package or just a lot, during the project’s pre-development or pre-selling stage is risky. Some of the documented risks are as follows:

1.. Fake or unlicensed real estate broker and sales agents.

2. Fly-by-night developers.

3. Unlicensed developers who had no permits and licenses for the project.

4. The project violated the ordinances of the local government units, so business permit was not issued, making the sale questionable.

5. The ownership of the property is questionable, as it is being claimed by contending parties, or there is still unresolved issues in court on partition.

6. The mother title or the individual titles were mortgaged in the bank.

7. The development of the subdivision or the project has been delayed because of the financial problems of the developer, which has resulted to its non-completion.

8. The materials used in building the house is sub-standard and not according to specifications.

9. The bank foreclosed the property because the developer could not pay.

10.The project was not be finished and was abandoned by the developer.

So, next time when the developer or his/her sales agents give you an attractive proposal to buy their house, lot or a house and lot package, at a pre-selling price, think again. Now you know better.

So, for the guidance of everybody who are planning to apply for a loan with Pag IBIG for their housing needs, we are writing this post.

In the Philippines, if you are a Pag IBIG Fund member, it is easy for you to secure a loan to purchase a lot and construct your house thereon. You can even transfer to a new house and lot, in a subdivision of your choice, through a loan from Pag IBIG, as long as the subdivision is accredited by it.

Who can borrow from Pag IBIG?  In its guidelines, Pag IBIG Fund provides a loan to members of good standing, defined as a member for at least 24 months or 2 years, and has remitted at least 24 monthly contributions.

What are the purposes of the loan that a member can avail of?  Pag IBIG provides loan for the following purposes:

1. Lot purchase

2.  House construction/House completion

3. Purchase of a Residential Unit

4. Refinancing of a Residential Unit

5. Home Improvement

6. Purchase of a Residential Unit with Home Improvement

7. Refinancing with Home Improvement and

8. Refinancing of a Lot account with House Construction.

What are the loan term with Pag IBIG, its charges and interest?  The loan term with Pag IBIG shall not be more than 30 years, and shall not exceed the difference between the present age and age seventy (70) of the principal borrower.

Pag IBIG charges a processing fee of Three Thousand Pesos, and the loan must be paid in equal monthly payments not exceeding 30 years.

A member can also avail of a second Pag IBIG Housing Loan, if he has already fully paid his first housing loan. Furthermore, he may avail of additional loans for house construction or improvement of a house construction on a lot purchased, or home improvement under the terms and conditions of the Good Payor Home Improvement Loan Program.

]]> http://www.oneworld-realty.com/how-to-build-your-house-the-easy-way-through-pag-ibig/feed/ 3 http://www.oneworld-realty.com/how-to-find-a-perfect-location-when-buying-your-home/ http://www.oneworld-realty.com/how-to-find-a-perfect-location-when-buying-your-home/#comments Tue, 07 Jul 2009 10:56:09 +0000 yen http://businesspherealty.com/?p=91 A client came to my realty office yesterday, telling me to find a buyer for her house as she is selling it.

When I asked her the reason for selling her house, she replied that she could no longer tolerate the noise and traffic in her neighborhood. It appears that her house was located just across the main gate of a well-known private school and every morning there was heavy traffic because of the students coming to classes being brought by private vehicles and public transport.

I have also a friend who recently sold his house located in a subdivision because of thievery and two incidents of hold-ups inside the subdivision, and he was disturbed by the lack of peace and order inside.

That is why as a realtor, I always agree that the three most important words in buying a house are “location, location, and location.” Location is really a factor to consider when you buy a house, and also in buying, you need to think about selling-that is, if you sell your house in the future, whether or not your investment will pay off.

What makes for the perfect location when you buy your home? It depends on your personal needs, but in general there are six basic factors to consider, as follows:

1.  Your safety. This includes a peaceful neighborhood, no gang activity, break-ins of thieves, with presence of the police force or private security guards. Some upscale subdivisions maintain a 24-hour security, but you must pay a relatively big amount of membership dues to include the salaries of the security force.

2.  Access to school. If you have children or having a family of your own, the quality of the schools is important. Your house should not be neighbor to the school, but must have easy access to it.

3.  Shopping, Malls, Medical Facilities, Market. Your home must have easy walking or driving distance to shopping malls, restaurants, hospitals, and markets so that you can live with ease and comfort.

4. Commute Time. Your home should be in a location where travel time to basic facilities and amenities is shorter. In addition, there should be the availability of public transport in going to work, to do shopping, and to school for your children.

5.  Recreational Facilities. If you like to exercise, go to the gym, walking or jogging, or like to spend time outside for recreation or sports, then choose a location or neighborhood that is near a park, walking spaces, jogging path, and other facilities.

6. Neighbors. Your neighbors must be a factor in choosing a location. Your peace of mind, quiet of abode, and enjoyment of your property depend on the kind of neighbors you have.

In summary, choosing a location that is perfect for your needs when you buy a house is an important factor, just as important when you choose a house to buy that is right for you.

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