Jun
23Essential House Selling Tips: Don’t Curb a Buyer’s Enthusiasm
Posted By: Ramon Rivas on June 23, 2010 at 8:10 pmBefore listing your home, some real estate agents will tell you to work on the outside of the house first, but unless there is a major project involved, or your in a hurry to list, it is probably best to save the outside for last. There are two main reasons for this.
First, the first steps in preparing the interior of the house are easier. They also help develop the proper mind set required for selling – beginning to think of your “home” as a marketable commodity.
Second, the exterior is the most important.
A home buyer’s first impression is based on his or her view of the house from the real estate agent’s car. They call that first impression “curb appeal.”
So take a walk across the street and take a good look at your house. Look at nearby houses too, and see how yours compares. Then it may be time to go to work.
Landscaping – Is your landscaping at least average for the neighborhood?
If it is not, buy a few bushes and plant them. Do not put in trees. Mature trees are expensive, and you will not get back your investment. Immature trees do not really add much to the appearance value of the home. For house selling tips about ROI see that section
If you have an area for flowers, buy mature colorful flowers and plant them. They add a splash of vibrancy and color, creating a favorable first impression. Do not buy bulbs or seeds and plant them. They will not mature fast enough to create the desired effect and you certainly don’t want a patch of brown earth for home buyers to view.
Your lawn should be evenly cut, freshly edged, well watered, and free of brown spots. If there are problems with your lawn, you should probably take care of them before working on the inside of your home. This is because certain areas may need to be re-sod, and you want to give it a chance to grow so that re-sod areas are not immediately apparent. Plus, you might want to give fertilizer enough time to be effective.
Always rake up loose leaves and grass cuttings.
Jun
16Brokering Real Estate: How Commissions Are Earned
Posted By: Ramon Rivas on June 16, 2010 at 12:33 pmEven if they split commission from the sales of your property, you can place a good bet that brokering real estate is what you most need when putting up your home for sale and finding that best buyer in town. Sure, the broker and the agent will get what they worked for, but at the end of the day, it will be a win-win solution to all of you.
The real estate broker gets paid and his agent. And why do you need them? Simple. They make everything easier and simpler for you. You tell them you want to find a buyer for your property and they will do the rest of the works until it is sold to another individual and you get the payment minus the commission for your agent and broker. Even so, you might want to know and understand where all these commissions are going.
Here is what the commission is for:
The commission the broker and agent receive is based on the total amount of property sale. You have to understand that a real estate agent is working under a real estate broker. The agent gets paid by the broker after a real estate commission is earned from closed real estate deal. Once an agent lists a customer’s property and acquires a buyer for it, the customer will provide commission fees to the broker, from which a percentage will proceed to the agent. The client then signs an agreement with their enlisted broker.
A minimum of 30% of the total earned commission from brokering real estate is given to the agent. As an example:
If the total home sale price amounts to US$100,000, the real estate broker splits 10% commission from it, which amounts to US$10,000. If the broker is giving out 50% to the agent, the latter will then receives US$5,000.
However, in other cases, the agents can receive the 100% of the commission and just pay their broker a desk fee. This is typically applicable to top selling real estate agents.
In conclusion, how much commission an agent can earn depends on three things:
1. total home sale price 2. the broker’s sale percentage fee 3. agreed commission fee from broker’s fee between the broker and the agent.
Others receive commissions via sliding percentage scale. real estate agencies that do this augment the amount of commissions they receive by having more sales. Also, commercial properties tend to have higher commission percentage than residential properties. However, with the laborious negotiations involved when brokering real estate properties, real estate agents do not always aim for a highest commission possible.
To other people, the commissions spent when enlisting a real estate agent or broker may look over the top, but when they see at the general value, it is well worth it. After all, performing a large number of tasks such as listing and arranging the property, arranging for advertising like open house showing and others, getting help from contracts, inspections, negotiations, and the closing deals are going to take a huge chunk of time as well as effort and money.
Added to that is the effort, money, and time spent when acquiring pertinent information about and around the property, like the home, its community, and even the neighborhood. The agent will also have to learn of the values of the surrounding amenities and nearby homes. These things are tedious enough that the seller himself might not be able to sustain without a help gotten from brokering real estate.
Sometimes it’s helpful to sell your home before you really want to move. This often happens when you are having a new home built, but aren’t sure of the completion date. Is there any way you can sell your home so you’re sure of the funds available for the new purchase, but continue to live in your old home until construction of the new one is complete. Yes, there is with the renting back strategy.
<b>Enter the Lease-Back or Rent-Back Agreement</b>
The particulars of this strategy vary from state to state, but in the strong seller’s market we’re experiencing, buyers will often agree to let the seller stay in the home for a period of time as long as rent is paid. In a competitive situation, the buyer willing to do this will often have the winning bid even though there is another offer as high as his.
The agreement covering the situation states the length of time the seller will remain. It can be done with a specific date named or wording that allows the seller to remain up to a specific date with the possibility of her moving sooner. The amount can be a fixed figure paid out of the proceeds of settlement or a monthly amount, or a daily amount. It is usually, but not always, tied to the amount of the mortgage payment under the buyer’s new loan. Sometimes there is a deposit against damage, sometimes not. There is usually a clause saying the seller will hold the buyer harmless for any damage to himself or his property which occurs after the sale is consummated and before the seller moves.
The attorney who draws up your contract offer can create such an agreement. If you’re using online forms, you should be able to find one for this situation. If you’re working with a real estate broker, he or she can handle it for you.
<b>An Example:</b>
I’ve recently seen a very pleasant example of this idea in action. An elderly widow contracted to have a one level condo unit built in a new community which provides all exterior maintenance. She had had hip replacement surgery and wanted to get away from the drawbacks of the home in which she’d reared her children. The home was large, had stairs and was located on a large, partially wooded lot with many mature perennials and shrubs. Both the home and garden were beautiful, but high maintenance.
Her contract to purchase required a series of deposits and a firm indication as to her source of funds well before settlement on her new condo. The widow put her home on the market. A young couple with two sons was very anxious to buy it. The situation was competitive. They made the widow an offer. She countered their original offer. She did not raise their offer price, which was slightly below her asking price. She did not believe the young couple would qualify for a larger loan. Instead, she did something rather creative.
The widow countered with a proposal that she “rent back” for a period of “up to” a certain date (a date beyond her scheduled competition date on the condo) in exchange for a modest flat sum to be paid to the buyer at settlement. The total rent back period was less than two months. The flat fee was less than the amount of the new mortgage payment for the buyers. However, since they made no payment on their new mortgage the first month, it wasn’t too far out of line. The couple really wanted the home, so they accepted the counter offer.
Another win, win situation was created. The widow only had to move one time and the young couple got a house they probably wouldn’t have in a straight bidding war. If you find yourself in a situation similar to either the widow or the young couple, perhaps you can work out a similar solution.
| Filed Under: Articles Tagged with Completion Date, Elderly Widow, Exterio, Lease Back, Length Of Time, Lt, Mortgage Payment, Particulars, Period Of Time, Proceeds, Real Estate Broker, Rent Agreement, rent back, Renting, renting back, S Market |
Jun
06Brokering Real Estate: Good Marketing Strategies To Keep The Business Growing
Posted By: Ramon Rivas on June 6, 2010 at 9:06 pmBrokering real estate has always been one of the most popular businesses for a long time. People get involved with it because not only it is a great career to start with, but given the right formula to succeed, can be a lucrative income-generating business as well.
With the potentials that real estate business can give, it is not surprising that a lot of ways are not being offered in the industry so almost anyone can get a hand into it and try their luck. But as in every business, there is a success and there is a failure. How can you avoid the latter? Keep your clientele. How can you do it? Here’s how:
The key is to look for the right market that attracts or brings in clients. There are different ways to do this.
Providing the customers with quality service is a backbone of any successful business. It gains their confidence and therefore will trust to do more business with you now and in the future. Buyers are astute and perceptive of what they are dealing with. And so, they choose real estate broker or agent carefully on the basis that they are experienced, trustworthy, and knowledgeable. This is the right characteristics combination which will keep good business and is essential to attain business referral, in this case, from word of mouth.
Knowing and understanding the real estate business really well is an advantage to you because it will enable you to provide accurate services to the customers. You would not provide accurate services if you lack the best and genuine information of the property you are brokering with. Remember that clients will be doing a significant decision in their life, purchasing a property, so give them top quality information and service.
While scouting for new buyers can be a tedious process, they exist in numbers. In fact, there are methods to reach out to them, no matter where they are located in a specific state. Advertising is vital in this phase but nowadays when technological advancement is becoming more evident than ever before, there is no limit on how you can Advertise.
The internet, for instance, reaches a substantial amount of individuals, all across the globe. And of course, working on your landline phone is the traditional but still capable of reaching out to people effectively. Personal contacts as well will keep the business always on moving.
Just like in any business, selling quality products is a big plus factor to keep a solid, whole base of customers. If people know you are selling properties that are good in quality, you will earn their respect, will keep them coming back and give you a good Advertisement through word of mouth.
Having a list of moderately yet reasonably priced properties will attract majority of the buyers’ budgets. However, it is also important to have a diverse clientele, as this helps improve the business; therefore, it is also good to sell affordable and more expensive homes.
Having a good marketing strategy in brokering real estate is a sure way to keep the business going. In an industry where competition is apparent, it is vital to keep your clientele and keep attracting for more as this is one of the best ways to increased numbers of referrals. And the more improvements you make the greater potentials of returns it could make to your business.
May
12Brokering Real Estate: Use Media Channels To Your Advantage!
Posted By: Ramon Rivas on May 12, 2010 at 10:58 pmThings have been drastically changing with the way brokering real estate has been doing in the past years. No, it is not about the difficulty to find potential buying clients because of the low downturn of the economy. As much as it is disappointing to see the real estate business going down in the last years, it is good that the technological advancement of internet has been compensating. Why is this so? Because doing the property advertising is much easier now than the good old days when although things were pretty much familiar and simpler, take a lot of time and are relatively not applicable in these days and age.
During the old days, the real estate broker has agents who knew exactly how to cope in their daily routine of work. They knew who to call and they just need to meet clients over cups of coffee. They just put in little sponsoring over the league teams, buy spots on some high school or church bulletins. But with the advancement of the technology, how could one resist what the internet has to offer? Would it be simpler than the good old days? Would it be effective?
Let’s see.
If you keep yourself abreast with the technology updates, you will find that there are a lot of formats, creative challenges, and mass media that your business is facing with. You and your agent can find sorts of things that will actually serve as platforms to Advertise your business and make it always on top of the game. Among them are video, brand displays, pay per clicks, search engine marketing/optimization, mobile, syndication prints, etc. Even social networking sites such as Facebook, Friendster, Myspace, Twitter, and others are there available for business owners to take advantage of.
Can you use them to your brokering real estate business? Absolutely!
In fact, the plethora of choices can be to your advantage since all of the mentioned formats all a great way to put the name of your business in the popular arena market. However, make sure that you are picking the appropriate method or media platform before you even engage into one. If your business marketing office has a competitive designer, he can make display Advertisements. Or you can use search engine marketing as a perfect option if you got a great writer in your marketing team.
They can create a website and write articles which would be set up for the search engines to find and let internet visitors read. Quality, information, relevant articles are a great way to attract visitors to your website. Of course, you have to ensure your website has the right tools so that when these visitors are engaged, they will know where to find them when they want more information to locate and buy their perfect property in mind.
Other media platforms mentioned above are also great tools for advertising your business. You can even apply most of them especially if your team is resourceful. But always remember to keep the overall presentation a persuasive yet attractive and sophisticated one. Do not get yourself overwhelmed with those media channels and platform though. Keep it always simple so you don’t get lost somewhere. After all, brokering real estate business is never about the frills but keeping the business where it caters to the needs of home buyers and home sellers.





