Real Estate Networks

Many people think appraisals and assessments are the same thing or at least that they should be for the same amount. The truth is they can vary greatly. Let’s look at each of them.

Appraisals

An appraisal is an estimate of market value. An appraiser can use many methods for coming up with this estimate. For income producing property, the appraiser may capitalize the value of the income stream. (It would take “x” dollars of capital invested at a “y” rate of return to produce an income equal to the rental income generated by this property.) For other properties, an appraiser may use “replacement value.” (It would cost “x” dollars to build this structure if it were being built today.)

Appraisers usually use “comparable sales” when evaluating the market value of a home. They look at nearby properties with similar characteristics, which have sold in the recent past to see at what price they sold. They typically give the most weight to the property they deem to be most like the property they are appraising.

Buyers and sellers generally encounter appraisals when the buyer’s lender has an appraiser make an evaluation of the market value of the property being sold. The lender wants to be sure of the value of the collateral for the loan. An interesting feature that comes into play in this situation is that one indication of value is at what price two unrelated parties will agree to buy and sell the same property. In other words, what is the contract price the seller and buyer of this property agreed on (if they are not relatives).

Assessments

An assessment is the value your local government puts on your property for the purpose of taxing it. How this value is derived varies from jurisdiction to jurisdiction. Some communities say the value is the same as market value. Some say the value is a percentage of market value. Some appear to actually do what they say they do, and some do not.

I was once a partner in an investment property that we were offering for sale at the time the county re-assessed it. Imagine my annoyance when the assessment came in at one hundred and forty percent of the offer price. We weren’t dummies. The partners were real estate professionals. I appealed the re-assessment, but my appeal was turned down. I offered to sell the property at the assessed price to the appraiser the county had hired to handle the appeals when he was telling me why he could not reduce our assessment. He did not take me up on my offer. Our property sold at the listed price months later. We had paid six months’ taxes on the property at a higher than market value.

On another occasion I helped some elderly people sell a farm they’d lived in all their adult lives. The farm sold for a price a great deal higher than the value at which it had been assessed.

I believe the two examples are fairly typical. Many jurisdictions will “puff up” assessments for businesses and investors and “low ball” assessments for people who have lived in their homes for a long time. Sometimes there are formulas for doing this. “Land use” is one such concept, i.e., the property is taxed at its value as a farm and the fact that it is ripe for dense residential and commercial development is ignored or deferred. Sometimes there are no formulas. It is just done.

For these reasons, it is usually not a good idea to put too much credence in the assessed value of a property when you are trying to figure out market value. They may be the same. They may be vastly different.

Raynor James is with fsboamerica.org fsboamerica.org - FSBO homes for sale by owner. Visit our “sell my home” page at fsboamerica.org/seller.cfm fsboamerica.org/seller.cfm to sell your own home yourself with a free 1 month listing.

If you are thinking about selling, buying or possibly refinancing your home, you’ve probably been doing a little research into mortgage rates. It is important to not only find a home in your price range, but also to obtain a loan that matches your budget. Mortgage rates vary in different parts of the country, even within a single state. The mortgage game can be a frustrating, stressful and exhausting experience. But there is something out there to help make the process of researching rates and payments a little easier for you, and it’s free!

Have you ever heard of a mortgage calculator? It’s a handy, little, online device to give you some assistance in the plight to figuring out what your mortgage payments will be. The mortgage calculator bases its estimations on percentage rates, the loan amount you are receiving, and the area where you live or hope to live. They’re simple to use and can give you a pretty accurate idea of what to expect in terms of what you will be paying out each month.

There are several websites that offer the free mortgage calculator service. One excellent online resource is Mortgage101.com. Their website has an electronic mortgage calculator that not only gives you an estimation of your monthly payment based on rates and loan amounts, but offers a total of six different ways to make this determination. Based on how you would like to pay your loan, you can calculate what the payment will be based on points, percentage rates and length of the loan. You can alter any of those numbers to get different estimations and ultimately, a really good idea of what to expect in terms of financing options. By utilizing the Monthly Payment calculator, you can enter information about your property such as value, taxes and insurance requirements to receive an even more accurate estimation of what your payment might be.

Take advantage of mortgage calculators. They are a free and easy way to get a good idea of what you can expect to pay for your new home or business property. Getting this information in advance might be one way to cut down on the stress of trying to figure out the best way to finance, and give you a little peace of mind knowing, up front, what you can or cannot afford to pay.

Mulitiple electronic

Do you believe in Santa Claus? How about the easter bunny? The tooth fairy?

Of course not. You learned a long time ago that fairy tales are for children. Why then would you even consider for a moment the idea that something created by banks would be something for the benefit of anyone other than the very, very rich people that own them?

Every pusher working the streets knows that in order to sell drugs, all he has to do is give some away, get people hooked, and then clean up.

The cigarette companies know this, too. Make cigarettes look cool to kids, get them hooked on nicotine, and you’ve got them for life.

So the banks know something as well. Get people hooked on the low cost of money, and soon you get to take everything they own.

That may sound ridiculous, but that is exactly what is happening.

The American middle class is nothing but a massive collection of junkies strung out on the low cost of money.

For years of spiraling real estate values we’ve been using our homes like ATM machines. Better cars, nicer clothes, fabulous vacations. Why it certainly looks like the American middle class still believes in fairy tales, doesn’t it? Even as the people we elect to govern us export the business and industries that sustain us, we continue to believe in the rigged two party political system that has turned us all into modern paupers.

Think I’m kidding?

In feudal Europe, the king owned everything, and the land was supervised by barons and earls, and the serfs that worked the land, were “allowed” to keep about half of what they earned. The other half went to the rulers. Now we all know that this was nothing more than a form of slavery, right?

So take a look at your paycheck. After all the deductions, what have you got left? About half, right?

So what makes you different than the slaves of feudal Europe?

Only one thing. The slaves of feudal Europe knew they were slaves. That’s why they were so willing to risk it all for a chance at a better life here in the new world

A lot of Americans will become homeless slaves this year when the banks foreclose and take their homes. The banks are the kings, and our elected officials are the new barons and earls.

What will we be willing to risk to reclaim our country, and the dream our forefathers brought with them to the new world?

America. The land of the free and the home of the slave.

Bob Tracey is a real estate agent and mortgage loan officer practicing in Las Vegas, Nevada. Visit him at willworkforbuyers.com willworkforbuyers.com

In this ever-growing world of marketing and advertising opportunities many people have begun to let go of the “old world” techniques, direct mailing and the like. For this reason, and many others, it is necessary for you to jump in to the world of direct mail marketing to get the very best for your advertising dollar. Don’t let the same old things creep into your mind when this pops in there! Don’t believe that it is a waste of time or a shot in the dark, this can really work if you give it a solid try.

One of the very important concepts to remember when you begin a direct mail marketing campaign is that it is imperative to pay attention to the wording of your direct mailer. Don’t simply make some huge advertisement about buying someone’s house because of foreclosure etcetera, tell them in more compassionate ways that you can make their life easier. They already feel strange, embarrassed, or even a little ashamed of their financial situation, you can get a good step in with them by offering to “take it off of their hands” and take over payments “Quickly”.

Make sure that you are pre-qualifying or sending to an area where you can make no money. It isn’t worth your time or theirs if you send them information about helping them out of their financial hardships only to let them down in the end. Make sure that you are sending to the right people for that reason and this, by getting in front of the right people you are increasing the opportunity of catching their attention and getting that all-important phone call in response!

In the end it is unbelievably important that you look at this as an opportunity to invest in the future of your successful-real-estate-investing-tips.info/Commercial-Real-Estate-Investing.html real estate investing business rather than just a simple expense for the present. At the very least you are beginning to register your name in the heads of thousands of prospective buyers and sellers, if it isn’t this time that it works it will be next time. Be persistent and it will indeed pay off in the end!

For more information on becoming a successful successful-real-estate-investing-tips.info/Commercial-Real-Estate-Investing.html commercial real estate investor try visiting successful-real-estate-investing-tips.info, a popular website that provides real estate investing tips, advice and resources to include information on how to profit from forclosures and flipping houses.

Buying a second mortgage for homes has emerged as a feasible option for people who are unable to make the requisite down payment for the property. First of all it is important to understand how a second mortgage works. Suppose you wish to buy property and don’t have the required 20% of the sale price as the amount to make the down payment. One option for you is to opt for private mortgage insurance for the required amount. In this, you will again need to make a small down payment and then make monthly installments for the rest of the value.

Another option is to take loan in two installments. Let us, for example, assume that you are in a position to make 10% down payment. That means you will require 90% of finance. In this case, you will get 80% loan as the first mortgage and the remaining 10% will be financed as the second mortgage.

This is also called piggyback financing. But you must keep in the mind that interest rates for second mortgage is higher than that of the first mortgage. This is because the risk factors are greater with the second mortgage loan as compared to the first mortgage loan. If there is a financial crisis, the primary loan or the first mortgage loan will be paid first. The second mortgage or the subordinate loan will be paid later.

To sum it up, second mortgage loans are loans with a fixed rate of interest. As in the case of the first mortgage loan, the second mortgage loan will depend upon your credit history and also the current rate of interest prevalent in the market. Generally the rate of interest is higher but the fees involved are lower.

Second mortgage loans provide an excellent opportunity to raise money for homebuyers facing financial difficulties in raising the requisite money required for the down payment. Therefore, buying a second mortgage is fast gaining popularity for raising the cash needed for buying property.

e-mortgagebuyers.com Mortgage Buyers provides detailed information about mortgage buyers, first time mortgage buyer advice, first time mortgage buyers and more. Mortgage Buyers is affiliated with homeloans-web.com Home Equity Loans.

A commercial mortgage or commercial remortgage is a business loan which is secured against a commercial property.

Commercial mortgages are often used to buy business premises, such as offices, shops, restaurants, or pubs.

But they can also be used to buy other business assets such as plant or machinery.

As well as being a useful way of financing the purchase of business premises for a new business, commercial mortgages can also be an excellent way of funding the expansion of an existing business.

A commercial mortgage can also be used to fund investment in land or property which will be used for commercial purposes.

A commercial mortgage can be used to buy most types of commercial buildings, such as shops and offices, for both new and existing businesses.

The interest rates on commercial mortgages tend to be lower than the interest rates on unsecured business loans and the repayment terms are usually longer. This makes them useful for all sorts of business financing requirements.

What About a Remortgage?

If you already have a commercial mortgage on your company’s business premises, you might find you could benefit from remortgaging.

A commercial remortgage allows you to unlock some of the equity that is currently tied up in your commercial property. It could also be a chance to switch to a more competitive, cheaper mortgage, especially if your or your company’s credit rating and business history have improved since you took out your original commercial mortgage.

The money you free up through a commercial remortgage can be used for all sorts of things for your business. For example, you could purchase additional stock, or invest in new machinery or other fixed assets such as vehicles. Another use for the extra money can be to pay off outstanding bills, or clear other borrowings such as the company’s overdraft.

Here are some typical uses for a commercial mortgage or remortgage:

Borrowing money to buy a shop
Raising finance to purchase an office building
Buying a pub
Financing the purchase of a restaurant
Buying a hotel
Buying a house to convert to a Bed & Breakfast (B&B)
Raising finance to buy an existing business
Clearing a business overdraft
Improving business cashflow
Buying new plant or machinery
Financing the purchase of company vans and other vehicles
Borrowing money to buy extra stock for your business
Funding the expansion or refurbishment of your offices
Borrowing money to pay for training
Buying land for business purposes

Further information on commercial mortgages and business loans can be found at the online-commercial-mortgages.co.uk” >Online Commercial Mortgages website.

Copyright 2004 David Miles. You are welcome to reproduce this article on your website, so long as it is published “as is” (unedited) and with the author’s bio paragraph (resource box) and copyright information included. In addition, all links to external websites must be left in place.

David Miles is the editor of a number of personal finance and business websites including thecashclinic.com The Cash Clinic and employee-contracts.co.uk Employee Contracts.

Save time and money doing your own repairs before a new tenant signs a lease. I am not suggesting that you try to do the job of a Plumber or an Electrician. I am however suggesting that you consider doing repairs like caulking a shower or tub, fixing a garbage disposal or installing dimmer light switch.

Sometimes calling a professional for a quote and to perform the work can take a lot more time and money than you may have. Many professionals have a service charge just to tell you the problem. Once the problem is diagnosed, you usually have to schedule another appointment to have the work completed days or weeks later.

Some retailers like Home Depot and Lowe’s have recognized that people want to know how to do certain types of projects and repairs on their own. Both retailers offer in-store or online workshops weekly.

Home Depot offers tips on how to install cabinet doors or troubleshoot an electrical problem. Their website offers more than 150 home improvement projects with tips and ideas. There are in-store clinics and online workshops available for projects including: tiling floors and walls, simple ways to manage your lawn and installing laminate flooring.

Lowes allows you to sign up for email newsletters. They also offer step by step tips on projects for installing a ceiling fan and to how to perform simple toilet repair. There are in-store clinics for projects including: how to install hardwood flooring, how to update your bathroom and how to decorate with crown molding.

Before you try to do a repair you should determine if a professional is needed. The next thing you should do is decide if you feel comfortable doing the work yourself.

Recently, I decided to install some dimmer switches on several areas where there are recessed lights. I went to the store and found the switches I wanted. I asked the Salesperson for assistance to make sure I had the necessary tools and parts. Once I got home, I read the instructions on how to install the switches and then proceeded to install them. I ran into problem with the lights that had double switches. Fortunately for me there was a 1-800 number for the manufacturer. I called the number and Representative in the technical support department was able to answer my questions within minutes.

I was also able to use a 1-800 for the manufacturer of my ceiling fans. I had an electrician install three ceiling fans that were the same model. When the electrician installed the ceiling fans he did not set each transmitter on a different frequency signal. Every time I turned on one fan, it would also turn on another fan.

Had I called the electrician to install the dimmer switches or to change the frequency signal I probably would have been charged $75 per hour for about two hours of work. Both jobs took me under 45 minutes to complete.

The following is a list of repairs that are fairly easy to complete on your own. As always, if you have any concerns consult a professional.

* Caulking - bathtubs, showers, window sills, door jambs, stringers on stairs

* Painting - rusted porch railings or mailboxes, touch up paint and front doors

* Plumbing - unclogging a toilet or drain, changing the sink or shower fixtures, resetting or unclogging a garbage disposal

* Yard Work - cutting grass, edging up around sidewalks and driveways, applying new mulch, trimming or cutting bushes and trees

* Installations - microwaves, wall shelves, blinds, tool racks and crown molding

Whether you are handy or not, the next time you have a repair consider doing it yourself. Not only will it save you time and money, but it will also teach you how to complete a repair if necessary when a professional is not available. If you do hire a professional, having completed a project in the past will allow you to have a better understanding of how much time the project may take.

For more information or assistance with setting up a real estate investment team (REIT), mortgage planning options or property management, contact Jennifer Johnson, your trusted real estate investment advisor.

Copyright© 2007 by Jennifer V-E Johnson. Others may not copy this material without written permission of Jennifer V-E Johnson. The views expressed in this RE News are those of the author(s) and do not necessarily reflect the official policy, position, or opinions of RE/MAX. If you are currently working with a Realtor® this is not intended as a solicitation.

_______________________________________

Ms. Johnson has been a licensed Realtor since 2004. She currently holds real estate licenses in Virginia, DC and Maryland. She is a member of Dulles Area Association of Realtors (DAAR). With over 70 active clients, Jennifer specializes in working with Professional Investors, while increasing their net worth and diversifying their real estate portfolios.

She was voted ‘Most Favored Agent’ to work with from the top producing Loan Originators among internet Mortgage Brokers in 2005.

Some Estate Agents double up as Letting Agencies too but there are also Letting Agencies that operate as nothing more. Like the Real Estate agents, the letting agencies of Bangkok and Thailand, do not focus too much on the lower priced dwellings due to the smaller commissions.

A lot of people stay clear of these agencies as they think the service will cost them more in the long run. This can actually be a bit of a misconception as their cut, commission, call it what you will, is not simply added to your monthly rent. Though they do make commission on their service, it’s quite often at the expense of the landlords as opposed to the tenants. Let me explain further.

Often, a private owner, especially an inexperienced one, will attempt to rent out his property using his own resources in order to save on agency fees. He is quite often over ambitious with his expectations for rent. After a few months without any luck he reluctantly seeks out the services of a letting agency to see if they can do any better. Here, they often inform him that to make his property desirable, he needs to spend a few thousand Baht on a bit of fresh paint, wash away the mildew from the bathroom, get rid of any tacky or broken furniture, fix the broken window, and sling a bit of bleach in the toilet prior showing people around etc.

They may also inform him that he’s asking well over the top for this property type. The greedy landlord may point out that he can’t afford to let it go any cheaper. The agent may reply to this by highlighting the amount of months his vacant property has already lost him by sitting empty, and if he doesn’t do something soon, it could remain in this unoccupied state indefinitely.

A plan is then drawn up, the agent takes over the management of his apartment, and the property soon reappears back on the market cleaner, smarter and cheaper than before.

As with the Real Estate Agencies, there are a minority of bad Letting Agencies among the good, and it’s always advisable to be mindful of this. Apart from personal recommendations there are no easy answers.

To summarise then, a letting agency acts on behalf of landlords, not tenants. In most cases they are paid by the landlord. There are various different types of letting agencies too. Some just find tenants for properties (sometimes referred to as accommodation agencies). Others manage properties on behalf of landlords and the tenants may never have any direct contact with the landlord.

First tip: When renting a private home whether it’s through an Estate Agent, a Letting Agency, or a private owner, never be afraid to negotiate the price. Be prepared to walk away and you could be surprised at the discounts available.

Second tip: If you definitely want the viewed property and you’re ok with the asking price generally, don’t push the above too far as you could lose it to someone just as eager as yourself.

Good luck.

“Andy Maingam” is a proficient publisher and webmaster of mrroomfinder.com mrroomfinder.com where he owns an operates a 100% free property portal for the tenants, landlords, and agencies of Thailand. The site proves a very useful resource in helping new tenants make informed renting decisions, and is a great tool for home seekers and landlords either looking for or renting out mrroomfinder.com Bangkok Apartments

So you have driven by the house received a release from the homeowner, received a price which the manager is willing to pay and have knowledge of the market value. How do you move the homeowner from the market price to the price we want to pay for the home?
In our experience we have found that you can walk the price down from market value or up from the mortgage or give the homeowner terms they want to get to the right price for the property with the homeowner. In this article we are going to walk the price down.

This technique requires you to start with the market value of the home in pristine condition unless the homeowner volunteers a price that is lower than the actual price. How you get to the price is one of three ways.

1) The manager can provide you with local comparable homes that have sold in the neighborhood which you can bring with you.

2) You can print the index and show them what properties traditionally sell for on that street.

3) The homeowner can tell you what they think the home is worth; if that number is lower than the first two you can use it in your calculation.

Remember this is the pristine condition (no rehab necessary price). A house with deferred maintenance sells for less and takes much longer to sell.

Walk Down the Price

If you have a property that has a market value of $200,000 either by (comparable value, Index or homeowner) what do you do next?

You use that price as your value and then begin the process of netting out what a homeowner would receive if his/her property was placed on the market for that particular price by a real estate broker.

Reduction 1
Market Condition:
Asking Price vs. Actual Sales Price

Most Homeowners do not know that realtors keep statistics on the price a house went on the market and the price it actually sold for. The difference is always a few percentage points at least, even in the strongest market.

We can and will provide you with the statistics in your county and in the zip code where the property you are trying to purchase is. For example if the property was in the 02360 zip codes. Houses stay on the market for 139 days and sell for 96.4% of the asking price. Personally, I would rather use the 10% reduction of the market price instead of the actual percentage. The reason is that the percentage is a look back procedure and the market may have changed in the last quarter.

Based upon the market conditions as of the first quarter of 2006. A house on the market for $200,000 in pristine condition would sell for $192,800.00 dollars.

REDUCTION 2
BROKERS COMMISSION DEDUCTION SIX PERCENT 6 %

If the property were to sell for the price of $192,800 less the brokerage commission of six percent (6% or $11,560.00) $181,232.00

REDUCTION 3
Time On Market Carrying Costs

In the example above property in the 02360 zip code sells in 139 days on the average. Some are longer some are shorter. During that period of time the homeowner is obligated to make the following traditional payments:
1) mortgage payments (1,200.00)
2) taxes (200.00)
3) Insurance (200.00)

Each of those payments should be added up and then multiplied by 4.5 (139 days =4.5 months) This would be deducted from the amount they would receive at the sales table.
For example the mortgage is $1,200 per month x 4.5= $5,400.00
Taxes 200 x 4.5=$900.00
Insurance $200 x 4.5=$900.00
Traditional Payment reduction $7,200.00

Balance due to homeowner $171,032.00

REDUCTION 4
Foreclosure Fees and Charges

In the current situation the homeowners are normally required to pay the following bank charges:

BPO fees and inspections: the bank has the right to charge for inspections which are drive-by inspections of value of the property. This expense is charged to the homeowner’s back due payments.
Attorney fees: the bank will continue to charge legal fees during the process of foreclosure including fees for advertisements in the local newspapers, filing fees in the land court and superior court (Prothonotory court).
Late fees and forced place insurance. Because the homeowner is not paying the mortgage they will be charged for late fees and insurance by the bank.

All of the foreclosure fees will add up to approximately $10,000.00 or more.

171,032.00-10,000=$161,032.00

REDUCTION 5
Payoff Mortgage and other Liens

The homeowner needs to pay off the outstanding balance of the mortgage as well. This in our example is $120,000.00.
This number would be deducted from the $161,032-120,000=41,032.00

REDUCTION 6
CLOSING COSTS REDUCTION

The homeowner would also have to pay closing costs including deed preparation, taxes, excise taxes, stamps. These fees are usually 1.5% of the sale price ($2700.00 in our example)

$158,332.00 or net (41,032-2,700=38,332.00)

So in the best of all worlds the homeowner would receive net $38,332.00 in 139 days from today.

REDUCTION 7
Deferred Maintenance (home inspection)

Pristine condition means that their would be nothing to do to the house, no painting, no rug
Replacement, sanding and refinishing floors. Everything is new including the mechanicals.

From your notes and the interior walk through you may have noticed that some of the items are not in pristine condition. You should mention these items and the rehab budget to drive down the net price less the deferred maintenance issue price. For example, maybe the house needs an entire interior paint job, new rugs and one new bath, some landscaping and a new heater. This would add up to approximately a $12,000.00 dollar budget.

158,332-12,000=146,332.00 Net to the homeowner (38,332-12,000.00=26,332.00)

REDUCTION 8

Uncertainty of the market, mortgage contingencies and other matters that may stop a sale from being completed before the auction.

In a normal sale the homeowner needs to worry about home inspections, mortgage contingencies and the matter of closing before the auction comes about. These uncertainties cause added stress to the homeowner and may cause them to lose most if not all of their equity.

Our offer takes away those uncertainties and reduces the homeowners’ equity by what we consider to be a fair profit margin.

The homeowner needs to know that we only purchase properties to resell them and that means we need to have a profit margin built into the property when we purchase it. The quicker they sell to us will give them more net money. They will have a reduction in attorney fees and foreclosure costs. They will not have to worry about the mortgage contingency of a regular purchaser or the results of a home inspection or the time crunch involved in a foreclosure case.

Usually, in such a direct sale, the homeowners can be quite happy walking away with just a modest amount of cash. Here in this case, we would probably offer them 135,000 dollars for the home if they are out in 30 days.

This would leave them with approximately 12,000 dollars of their equity top start a new life. It is not $26,000 but there is no uncertainty about the figure and they have saved themselves from a foreclosure. It also allows them to live rent free for 30 days.

Reduction 9
More time to move reduction

Frequently, your negotiation of the terms, such as how long the homeowners can stay in the property and which items they can take with them after the sale, will determine how easily you can reach agreement on the price.

If the homeowners need to stay longer than 30 days we will price in the cost of our ownership and take it out of their equity. This would be a price that will allow us to pay all the bills of the property plus a management fee. We would rather have them move-out at the closing than stay anytime after the closing.

Conclusion:

You should use a blank piece of paper and go through this with actual figures with the homeowner. We have a form in the resource section of the website to use. I have had more success with actual blank paper than using a form. People want to think that you are doing something unique for them. Good hunting.
frontgateconsulting.com/

frontgateconsulting.com/ frontgateconsulting.com/

The flexibility afforded by a “zero-commute” combined with the skyrocketing price of gasoline has strengthened the case for full time teleworking and telecommuting. According to an Environmental Protection Agency (2004) study:

“Americans spend an average of 46 hours per year stuck in traffic. Gridlock produces more than $63 billion in congestion costs per year”

The artist community has been well acquainted with the use of work/living spaces for years, but improvements in technology have made the benefits of teleworking and occasional telecommuting more attractive to general consumers. According to the key findings form the International Telework Association & Council (ITAC) Telework America (2000) study:

““Home-based teleworkers also have larger homes, on average, than non-teleworkers; the difference amounting to about 500 square feet. The most popular place for an office in these larger homes is a spare bedroom, with the living room a distant second. The primary home telework activity is computer work (55% of total activities), followed by telephoning, reading, and—averaging 7% of the time—face to face meetings.”

As you purchase your next home, there are certain factors to consider if you need to set up a new home office:

Make sure that your high-tech needs can be met. Have a qualified electrician inspect the wiring of the house to see if the system can handle the extra power load that your home office requires. Older homes may need significant upgrades to handle the extra power, while newer homes are built with more energy-efficient systems to handle the additional power along with heating/air conditioning requirements. If you use cable, DSL or satellite internet access, check with your local service provider to see if access is available in your new neighborhood. Shop around for your telephone provider—in some cases, business service bundles may be more cost effective than regular residential service.

Designate where your office space will be. Determine the amount of space you will need to accommodate your work style and space. In many cases a spare bedroom or living room space can be used, if a formal den option is not available. If your work requires heavy telephone usage or just heads-down concentration, you may want to consider utilizing a room with a door. Doors can be closed to reduce interruptions from other family and household noises.

Plan your office blueprint to include all required furniture, bookcases, computers, fax, and printers. Make sure to allow for filing and storage space for files and extra office supplies. Lighting is critical for computer or assembly work, so make sure to allow for direct sunlight along with any specific task lighting that may be necessary. Select flooring options that will allow you to work comfortably—-you may wish to go with hardwood or laminate flooring to allow for your chair to move smoothly across the floor. Install enough phone lines to cover your home, business and fax machines needs.

Is the office easily accessible? If you will expect regular package deliveries, make sure that your designated office is easily accessible to the front door of the home. This is also necessary if you will need to meet clients or visitors in your office and would like to ensure a professional appearance for your business.

Find out about local business requirements. Some cities have zoning restrictions and guidelines for work/living spaces along with tax implications. Make sure to check with your local government to determine if special restrictions exist.

Cecelia Taylor writes for bayarearealaestateadvisor.com Bay Area Real Estate Advisor, which profiles communities and neighborhoods in the San Francisco Bay Area.