Disadvantages of Investing in Real Estate

Whenever we talk about the real estate economy, we use nationwide data but talk locally. On the flip side the stock exchange is dependent on the national or perhaps the entire world economy. Real estate markets depend on regional or even local economy. What is occurring in Chicago might not have an effect on what is occurring in Toledo. What impacts all markets together would be the home interest rates.There is absolutely no single barometer to evaluate the overall housing market in the US.

Even though research data and financial factors are relevant, using your common sense is more important. We should keep our eyes open and take a peek around and find out what is happening. Speaking with realtors, investors and loan providers in a specific region could be a huge help to gain access a marketplace. These are specific problems you must think about when dealing in real estate.

One serious problem facing commercial real estate professionals are how to successfully control real estate investments in the present marketplace. The second thing is, realtors provide details about utilities, zoning, educational institutions and so forth. But two typical problems a purchaser faces while shopping are, will the home provide you with the proper environment we would like for a house? Another question is will the house have a good resell value when we are prepared to sell?

Another significant concern that any investor encounters is the legal situation. Housing laws and regulations differ between states. You have to seek advice from a lawyer certified to practice law in the state where the home is located.From time to time, the home a purchaser is looking to get is available but is not properly marketed. It might take you some time and energy to look for and identify the best house. Another topic is the significant issue of funding. We should know our financial reserves as well as our borrowing capability. If we understand our present financial savings, earnings and debt, then we can consider assistance from loan providers, banking institutions and mortgage loan companies, which provides some options based on your financial capacity.

In The United States, some real estate organizations and commissions have backed legislation that requires all real estate agents to supply a minimum degree of services, which pushes sellers to purchase products and services they do not want or need. There is the problem of refunds on transaction costs. Some states the united states allow refunds of commissions or charges on housing transactions however, many states have mandated laws which forbid refunds.

Next is definitely the issue of buyer involvement. The Consumer Federation of America unveiled a study that real estate panels and commissions are centered by housing professionals and they suggested better involvement by buyers, which happens to be opposed by professionals, this works in opposition to the interest of normal sellers and buyers. Finally, a great deal of media hype has been going around in the news about the ‘bubble’ concept of real estate and that the housing marketplace is likely to burst, this might have a mental influence on the prospective consumer.

Commercial Investment Property – Keys for Real Estate Agents to List and Sell More

In commercial real estate, getting to a closed deal and final commission is a number of critical steps. You cannot take shortcuts. Most particularly you have to understand the start of the deal and the reason for it. This is the key to long term listing and selling in the industry. So let’s put some of these steps together.

First and foremost, you should be a specialist in a part of the industry that has the opportunity for reasonable growth and reward. This could be retail leasing, retail selling, industrial leasing, industrial selling, or office leasing, and office selling. It doesn’t really matter what part of the industry you are concentrating in, but it does matter that a future exists with the type of property you have selected and that you can relate to the type of property.

The second step in the process of building your business involves understanding your market. You cannot be a specialist without completely understanding the deals that have been done and the deals that need to be done. This knowledge will involve benchmarks of property performance including income, rental type, expenditure, methods of sale, and methods of lease, construction costs, and property usage. When you pick up any information from the marketplace it is best to collate the information for future reference. It is this information that will allow you to negotiate with skill; it is this information that will give you a higher value in the marketplace as a real estate agent.

As part of this process, there is a group of property professionals that you need to know. They are an abundance source of new clients and new business. They are solicitors, accountants, architects, engineers, and property valuers.

The third step in the process of building your business involves understanding the prospects and what they need. This means getting in front of the people who need to do the deals one day in the future. In simple terms this is called relationship building and quite frankly not enough is done by most real estate people. When you establish a face to face contact with the right people you set the foundation of building opportunity. Essentially people need to build trust and respect with you. There are far too many agents are out there who are all fighting for the same prospects. The agent that wins the contact and the commission is the one that has started the relationship and continues it over a lengthy period of time.

Once you have a relationship with well qualified groups of prospects, you can start to drill down on the types of property deals they need. You can actually look for the properties that they require and put the deals together before they even reach the marketplace. In commercial real estate, it is very common to do off market deals.

This property market is currently frustrated by restrictive financing. The banks and the lenders are slow to approve or accept financing proposals on the larger property deals. The property valuers are also very conservative and reluctant to put on any higher values on property for financing purposes. This will change, however and for the moment, we must target the people who have higher equity in another property or business activities, therefore they are less reliant on higher loan value ratios.

There are many property investors and businesses out there that are quietly waiting to seize the opportunity of a new property purchase if the right properties become available. These successful businesses and investors are the ones that you need to know in this market. The more people you know, the more opportunity you will generate.

So how many prospects should you be working in a market like this? Your database should include at least 300 high end prospects, and at least another 300 other prospects that can be converted to higher value. Before you start saying that it is a high number, I will let you into a little secret. This database formula is built on the basis of five new contacts every working day. Within a period of six months, you will have built the database of this size. As you proceed down the path you will also have achieved extra sales and leasing deals that you didn’t have before. Success in the industry belongs to those that can get highly organised in the prospecting process. Persistence pays rewards in ‘bucket loads’. Good luck.

How Do You Know If Your Real Estate Agent Is Doing A Good Job?

Many home seller’s hire a real estate agent either from a referral from a friend or relative or from a piece of the real estate agents advertising. Once the seller interviews the agent many times they are hired on the spot. After this how as a seller do you know if your home is getting the exposure that it deserves or know if your agent is doing a good job on your home sale? Many times this is hard to distinguish especially when you as a seller have many other concerns and other items to worry about I.E.: work, imminent move, other normal things going on vs. your real estate agent and the job they are doing for you.

Here are a few tips for you to know exactly what type of job and representation you as a seller are getting from your agent/ brokerage company. The first is how often does your agent communicate to you updates and market conditions about your home sale? A good rule of thumb should be at least once every 2 weeks and preferably once a week at least a call to you with a detailed update, for number of showings, sign calls, and other measurable ways to see how the marketplace is responding to your home. I would also recommend that agents should complete at least one open house during the first 30 days your house is on the market many times this will help get neighbors, and others that live close by to see the property which in turn sometimes makes a sale because someone that they know gets told about what the relative or friend saw at the open house down the street. As a seller you should also try to ask all questions about the transaction as you think of them so that your concerns can be taken care of ASAP, this will also help you to determine how much knowledge your agent truly has.

Agents that also seem to be exceptionally knowledgeable about every aspect of your sale should also be given more room to operate then someone who never really has an answer to your questions quickly. I say this because many times as a seller you will have questions about the transaction process as it evolves, the agent that does not give you answers right away and feels confident in the answers given should be watched very closely. There’s nothing worse then an agent that does not give you confidence as a seller that the right things are being taken care of correctly for your transaction.

A real estate agent as everyone knows is typically well paid to obtain a buyer and handle the transaction of your home sale, which for most locations is in the hundreds of thousands of dollars if not more. The reason agents are so well paid is simple they are in charge a large sums of money and only when they get a property closed do they get paid for their services, having said this I would only consider a real estate agent or brokerage that was going to market and advertise my property in several areas. For me as an agent I know every marketplace is different and what works for a single family home here in Tucson Arizona may not work for a large farm property in the center of Ohio, but the general advertising that works for most properties IE: Internet advertising, newspaper, and home magazines should all be considered by the real estate agent you employ. I employ a very sophisticated and complete internet marketing portfolio for my sellers and it works for them because in this part of the nation many people move here from across the nation and the internet is the best way to expose the property to those buyers who would not know of the home any other way. I would suggest that regardless of what advertising avenue your agent wants to use that the advertising is a complete and solid plan to give your home exceptional exposure. If they say they are going to run newspaper ads make sure you get the run dates and then buy a paper that day and look up the ad yourself to see what it looks like. A sloppy written ad or an ad with a poor picture of your home should set off alarms that maybe your agent is not doing a good enough job representing your home, and your interests. This is extremely important don’t think because your agent maybe “works for the largest brokerage around” or “Has been in the business for 20 years” means that they do a good job, I cannot tell you how many agents out there do the absolute minimum for their sellers and nothing more and only you the client suffers.

Hopefully these quick tips help you to select a highly competent real estate agent to represent your home. Many people have “bad” experiences with real estate professionals and think they (real estate agents) in general are horrible and the clients themselves could do a better job of selling their home. Well unfortunately they are probably right, but not because all real estate agents do a bad job BUT because they happened to hire the wrong agent to represent them. It’s a fact that 90% of the real estate sales are completed by the top 10% real estate agents in the local marketplace. DO yourself a favor when hiring an agent and get a top producer that knows how, and has the track record to get your home sold and get you top dollar. If you need help selecting an agent I have an extensive amount of contacts across the nation and will have no problem recommending one for you, just send me an email to moliver@SellingTucsonRealEstate.com and give me some details about your home. Also if you live in the Tucson or Phoenix Arizona or surrounding areas please consider my team in your choice of representation to get your home sold.