Posts Tagged ‘Residential Real Estate’
With the slumping real estate market, many real estate agents are finding themselves struggling to keep afloat. The days when new listings produced multiple offers before the ink dried and open houses produced endless streams of anxious buyers are long gone, at least for now. Residential agents now face the reality that selling real estate may not be profitable, moreover, that it may even get worse before it gets better.
Okay, but given the sagging real estate market, why would it make sense for residential real estate agents to start selling rental income property? Wouldn’t it be better to stay put in your own backyard, clinching the familiar, avoiding things new? I say no.
Foremost, if you’re a residential real estate agent, face the facts. That in this market “sellers still don’t get it and buyers won’t pay for it.” Most sellers believe they can stick on any price tag and get someone to bite, when buyers in this market are not willing to pay what they regard as an unrealistic price to some delusional and pigheaded seller still living in 2005.
Now, consider how all of it directly impacts your business. Your listings are mostly over-priced, and offers you submit are normally rejected. Rather then facilitating the ebb and flow of buyer and seller negotiations as normal, you find yourself in the middle of a tirade, trying to persuade one as to why the other is not obstinate.
Here’s the point.
Real estate agents are in a dire situation with few options. Think about it. You can suspend your license, you can bite the bullet and hope for a change, or you can become proactive by diversifying your business with rental income property and maybe close one or two additional deals this year. Which would you choose?
Here’s what you’ll discover about selling rental income property.
Whereas homeowners may not be in pursuit of a replacement house, they could be ready to make an investment. Whereas homeowners typically won’t sell on a moments notice, investors normally have a price they will entertain. Whereas homeowners may turnover one property in five years, investors habitually buy and sell multiple income properties. Whereas retirement might mean hunkering into a house, it commonly signals a designated time to unload management-intensive rental property.
You get the idea. Selling rental property offers a ton more opportunities to make money than residential property, and as a real estate agent, you’re in the right place to seize it.
So how do you get started selling apartments with little or no experience? You might be surprised to learn that it’s not that difficult.
First, dismiss the idea that you need to become an investment expert. Deals are closed every year by hundreds of residential agents who know little about income-producing property. Secondly, recognize the importance of numbers to real estate investing and think about buying real estate investment software to help you present those numbers in a professional fashion to sellers and buyers. Research your local market and acquaint yourself with income property prices (listing and sold). Use the real estate investment software to create an APOD for each property. Study the cap rates. Become knowledgeable about rental property prices and rates of return. Call your customers and ask whether they want to invest or perhaps own a multifamily property for you to sell. Discuss the market, present your numbers. Let them know you work with income property. Announce to your colleagues that you’re equipped to service rental property and prepared to pay a referral fee. Start attending meetings that promote investment property. Watch the classifieds and call on land or units listed by FSBOs. A colleague of mine called on a vacant lot listed by a FSBO who turned out to be an investor and subsequently listed about 100 apartment units for the guy. Call property management firms in your area and ask whether any of their clients might consider selling or buying property.
Okay, but let’s talk turkey. Am I suggesting that apartment buildings are immune from the hardships of this real estate market, or that investors are on every corner ready to throw money at you? No, investment real estate is still subject to the same murky economy, investors can be obstinate too, and you still have to work at creating your deals.
But rental property gives you the opportunity to diversify your residential business. Rather than having to rely just on the whim of one type of buyer or seller, you can broaden your exposure to multiple types of buyers and sellers. It’s no longer one product you service, but many products.
Sure, it takes effort. But considering the challenge we face, having the backbone and good sense to become creative might see us through. And that, dear colleague, would make it all worth the effort.
By: James Kobzeff
If you’re a real estate agent and particularly an agent that specializes in residential selling, but would like to supplement your business by selling income properties, then this one is for you.
In this article, I want to share with you why residential real estate agents should sell rental property, some truths and myths, and what you should do to prepare.
Benefits of Selling Income Property
The primary benefit of working with rental properties, of course, is the money. When I started selling real estate, the average commission for selling a house was about $1,500 after the broker split. When I made my first income-property sale as a residential agent, I made $15,000 after the broker split.
That sale took place in 1978 and having gotten a taste, I choose to make rental properties my business as a result, have been selling income-producing properties exclusively for the past thirty years.
But I digress.
This article is not about getting you to forsake your current residential business to become a multifamily specialist, it’s about getting you to become a real estate agent who can (and will desire to) sell investment property in addition to single-family homes because the money is good.
Let me give you one example of a residential agent here in Salem, Oregon that merely called a FSBO regarding a small vacant lot that ultimately connected her with an apartment builder who subsequently allowed her to list about sixty apartment units. She never stopped selling houses, but because she thought outside the box and also made an effort to expand her residential business, she unwittingly fell into investment real estate and made a healthy commission as a result.
Another benefit of being able to work with rental property, especially for those of you who have been successful at selling houses and have a sizable customer list, is that you have at your disposal a ton of potential investors. Given this economy and the fact that banks are only paying about 2% to use our money, it might surprise you to discover that homeowners who have never invested in rental property are more open to the idea now than ever before.
Lastly, it benefits you to have the ability to sell income-producing properties because it prepares you to service walk-ins and others who inquire about income property. So you never risk losing a sale opportunity or have to refer it away because you’re not prepared to work with real estate investors.
You Don’t Need to Become a Specialist
The beauty of rental properties is that you don’t have to become a specialist or have any special training to sell it. Naturally, there are exceptions with some types of commercial property, but at the end of the day, most properties associated with real estate investing require little preparation on your part.
How to Prepare
Bear in mind that real estate investing is about the numbers-cash flow, rates of return, and profitability. Therefore, obtain good real estate agent software that will enable you to run those numbers correctly (and easily).
A good real estate agent software solution will provide you with cash flow presentations you can give to (and capture) investors and, just by virtue of using the software, enable you to learn all you need to know to service investment properties adequately. As an added bonus, having the ability to create multifamily cash flow and rate of return presentations, you may even get some referral business from colleagues.
Okay, I admit, I am trying to make you aware of my real estate agent software program. But I wouldn’t risk alienating even one colleague if I didn’t witness for myself the remarkable success residential agents have had with investment software. If it didn’t work, I wouldn’t even suggest that you consider it.
Here’s to your success.
By: James Kobzeff
Honestly, purchasing a real estate property in Florida is never easy. Aside from the financial resources needed to acquire prime residences in the area, you need to be knowledgeable in the real estate business to get the best deals in the transaction. If you think that you don’t know enough about it, then it would be best to let an expert lend you a hand.
Real Estate Agent
A real estate agent can be a big help in your residential acquisition in Florida. They are quite knowledgeable in the real estate business and can help you with any legal matters that you might find confusing.
In most cases, a real estate agent helps both the buyer and the seller at the same time. They assist in the purchase transactions, and are usually paid by the seller in the form of a commission according to the price of the property. They can also become a dual agent and help both individuals arrive at a profitable venture in real estate acquisition.
Note, however, that it would be wise to pick out the best real estate agent the business has to offer. Ask around family members and friends if they have anyone they can refer to you. If not, check the local yellow pages or the Internet for one in your area.
Benefits Of Hiring An Agent
A real estate agent can help you find your dream home in Florida. They are connected and affiliated with many real estate firms in the region, so they can give you a wide selection of residential properties to choose from. All you need to do is to provide them with some specifications of your home from the floor area to amenities. You may also want to include the range of your budget so that they can narrow down their search.
Also, a real estate agent can help determine the price of the property by carefully inspecting every nook and cranny of the real estate that you plan to buy. They can point out flaws and problems in the overall architecture to bring down the home price of the seller; this can also help the buyer determine the overall repair cost when they plan to give the property a complete overhaul.
These professionals can also assist in the legal matters of real estate acquisition. They can act in your stead while penning up the purchase agreement between you and the home seller. They can also take a look at the deed, title, insurance, and other encumbrances of the property in question so that you won’t have any worries later on.
They can also help you with the closing deals in your purchase. Considering that they have contacts and acquaintances in almost any legal bureaus and agencies in Florida, they can easily expedite the acquisition process without any difficulty.
By: Vanessa A. Doctor
One of the most efficient ways to invest in residential real estate is to do a lease/purchase. The reason a lease/purchase is so effective, is because it provides a win-win situation for both the seller/landlord and the buyer/tenant. For the owner, it provides a potential buyer and a tenant that will be willing to take care of the home. For the buyer, it provides the right to purchase the home for a fixed price, and time to save money and improve their credit. Here is how it works.
The owner and the buyer enter into a contract whereby the potential buyer agrees to lease the home for a set amount of time. At the end of the lease, the buyer then has the option of buying the home for the price agreed upon in the contract. In order to secure that price, the buyer pays an option fee up front. If the buyer chooses to buy the home at the end of the lease, he can apply the option fee and any other money saved toward the down payment. If they choose not to purchase the home, the owner keeps the option fee.
For the owner, the lease/purchase offers several different ways to make money from the home:
- The goal is to buy the home for 10-20% below market value.
- The monthly rent you collect will exceed your mortgage payment.
- You can right off mortgage interest and other expenses on your taxes.
- You pay down the principle on your mortgage and build equity in the house.
- The price of the home will appreciate.
- If the potential buyer decides not to buy, you keep the option fee.
This is just a basic outline of how a lease/purchase works and the opportunities it presents. It is still a real estate investment strategy that is unknown by many and discussed by too few. For more detailed information, a recommended read is “Buy Low, Rent Smart, Sell High” by Scott Frank and Andy Heller.
To apply this investment strategy in a growing real estate market, visit http://www.buyandsellnorthtexas.com.
By: Michael Stazko
Florida is considered as a prime location for home acquisition in the region. The tropical climate all year round is perfect for various activities that those in the area might find to their liking. If you want to make sure that you get the perfect home, all you need to do is to follow these helpful tips to get you started on your acquisition.
Tip # 1: Plan In Advance
We can never deny the fact that Florida offers prime properties in assorted locations. From Miami Beach to Sarasota, the options are practically limitless if you don’t know what you’re looking for. Such residential properties in the region include single-family homes, apartments, condos, bachelor’s pads, and so on.
For starters, you need to determine what type of residential unit would be perfect for your needs. Check out the different residential properties in various locations by searching them out using the Internet. Consider the architectural design, home feature, built-in amenities, landscape, and the facilities in the surrounding areas that you might possible need if you plan to settle down in the region.
While you’re at it, you might want to settle your finances first, since the prime residential properties in Florida can be quite expensive. The best choice in Florida home acquisition is through a mortgage loan. Look for a financial lender that can offer you affordable interest rates and payments terms that won’t strain your budget while purchasing a residential property for your very own.
Tip # 2: Consult A Real Estate Agent
You can hire a real estate agent to look for the perfect home for you if you want to avoid looking for them on your own. These real estate experts are well connected with real estate firms and developers in Florida, and can look for these properties in a shorter period of time.
Provide them with your home specification, budget, and preferred location so that they can narrow down their search. When they have all the properties at hand, they will be showing them to you one-by-one and will be offering you some advices on how to acquire them on your own.
If you let them take care of the entire deal, they will prepare all the necessary requirements, as well as meeting with the home seller with your best interest at heart. Considering that real estate agents are familiar with legal agencies and real estate bureaus, they can expedite the legal process in home acquisition in record breaking time.
With careful planning and a little help from real estate agents, you can easily pick out the perfect family home that will suit your needs — less effort.
http://commercial-realestate-florida.xon.us — Florida Residential Real Estate
By: Vanessa A. Doctor
In many ways 2006 was the non-year for real estate. The National Association of Realtors(R) reported that sales will be down in 2006 about 9 percent from 2005, a record setting year.Many markets waited for spring market which was disappointing. Markets then believed buyers would re-group in summer,and buyers were a no-show. Fall and last market hopes were dashed when fall came and went, with plenty of traffic at open houses, but few contracts.
Pent-up demand from a lackluster 2006 should drive buyers back to market. But, these savvy buyers will be on the lookout for realistic prices and seller give-backs. Most buyers will tell you point-blank that their income gains in the last five years have not matched rises in home home prices. Real estate markets won’t bounce back until home sellers realize as prices go up, the pool of buyers shrinks proportionately. Buyers with a home to sell will include a home-sale contingency, so sellers should be prepared to accept one.
Inventory levels will remain in the six to seven moth range. Listing leftover’s from 2006, will roll into 2007. The leftovers are either un-realistic sellers whose pricing is from the “froth years” or their homes haven’t been updated to keep up with the stiff competition and time-starved buyers.
Mortgage rates will remain in the 5.5% to 7% range. Historically low, but low rates by themselves haven’t motivated buyers to write real estate contracts in 2006.
Foreclosures will rise. Risky loans such as Interest-Only, Option ARM’s and 100% financing will tap out buyers whose used these “appreciation-oriented” mortgages.
Prices will drop 4-10% before leveling off in the majority of non-seller’s markets. Homes that are priced right and are in good condition which offer features and finishes that buyers demand, will sell close to list price in moderate market times. Flat or negative appreciation.
Florida, Arizona, California and Washington D.C., will have unstable markets. Until sellers get a reality-oriented wake-up call markets in these locales will sputter and hiccup.
Ten states posted solid sales gains in the second quarter of 2006 versus 2005. Reported the National Association of Realtors(R). The gains ranged from an impressive 48% in Alaska to a low of 5.3 percent in Georgia. The other eight states included Arkansas, Texas, North and South Carolina, Vermont, Tennessee, New Mexico, and Wyoming.
Residential real estate will return to being viewed as shelter and housing and trend away from being viewed as a speculative investment.
What about 2008? Stable, pre-frenzy market with appreciation at 1% annually.
By: Mark Nash
A real estate agent is the person you hire to help you buy or sell your home. Beyond that simple statement of information, many people do not know what working with an broker means and what it entails. Here is a detailed list of how to successfully work with a residential realtor.
Understand the Legal Restrictions
Real estate brokers are bound to strict anti-discrimination rules by the Fair Housing Act. This means that an agent cannot use or provide information about race, color, religion, national origin, gender, handicaps, or familial status of owners or neighbors of a property they are selling.
So do not ask them to find you a home next to a particular church or ask them about the racial makeup of a certain neighborhood. That kind of information is considered discriminatory and it is illegal for a broker to help you select a home based on any of the mentioned factors.
Realize that Agents Are Not Free
Most residential real estate agents work on commission. That means they are not paid by the hour or by the visit for their time with you. They get paid a percentage of the home sale when the deal closes. So to work most successfully together, you should develop a relationship of trust with your realtor and not be overbearing in your requests.
Common Courtesy Goes A Long Way
Just as you expect your agent to be considerate of your time, you should pay your realtor the same respect by being punctual to appointments and let them know as soon as possible if you need to cancel a showing. And a quick call is always appreciated if you know you are going to be late for an appointment.
Talk Openly About Your Expectations
Realtors are used to working with all sorts of people and personality types on residential real estate deals. That means that they are usually very accommodating, but they need to know what your expectations and preferences are. You need to tell him the best way to communicate with you and what the best times are to contact you.
You should also make it clear whether you want to simply meet your broker at all showings or have them pick you up and drive you there. You should feel comfortable enough talking about anything you are not happy with and finding reasonable solutions.
Let Your Agent Fully Represent You
There is a whole system of protocol in the residential real estate business. This typically includes bringing your agent with you to open houses. Going alone is considered a sign that you are not a serious contender for the sale. If you cannot bring your realtor to a particular open house, at least present their card to the host to show that you are represented and have taken the proper steps to start the home buying process.
Under no circumstances should you start talking figures and prices with the hosting agent; that is a broker’s job and your questions will probably not be well received from the hosting agent and your agent will likely be miffed that you didn’t let her handle that arena.
The main key to a successful relationship with your agent is communication. Open communication will help you understand the bounds of the agent’s job and help your realtor understand your real estate desires.
By: Andrew Stratton
The buzzword today with residential real estate agents is staging. Staging a home can change a homes atmosphere that appeals to homebuyers and which may bring a higher price and accelerate market time. By adding small decorative touches, rearranging or deleting furniture or creating vignettes a home can look like a professional stager was hired.
Mark Nash author of 1001 Tips for Buying and Selling a Home has seen the best and worst in home staging as a real estate broker in Chicago and he shares some do’s and don’ts for home sellers that want to try to stage their home.
Do’s
-Pick-up recent home decorating magazines. If your not up to speed on current decorating trends it will help familiarize yourself with how interior design is being marketed. Tab pages with low-cost ideas that which will make your home say today.
-Invite a friend or real estate agent over. A second or third pair of eyes will help you accent the best and edit the worst in your home. Be prepared for some constructive criticism. You want to hear it before you put your home on market, not as feedback from prospective buyers. Go room-by-room with a worksheet so you can take notes. Depending on how much time you have available for an update or a makeover, you will need to prioritize and figure out what will give you the biggest return. Do this at least two months before you put your house on market.
-Stage a home office if you don’t have one. They’re not a trend; they’re required for homebuyers in 2006. Many homebuyers today work from home part or full-time or want a space where they can organize their life and park a computer. Find an extra bedroom, walk-in closet or an unused corner and convert into a home office. Make sure there is a convenient electric, telephone and cable supply.
-Focus on living spaces. These areas are where the majority of homebuyers will spend their time. Place a side table and a floor lamp next to a comfortable chair as a reading corner. Float sofas and coffee tables away from walls for a designer look. Use area rugs to anchor furniture groupings on bare tile and wood floors. Living spaces must have matching table lamps. Streamline family photos and place green plants in room. Fireplaces should always be operable and on in season. Place groupings of candles and clear glass bowls filled with natural potpourri on side and coffee tables. Substantial wicker baskets can organize magazines, remote controls and toys. Limit knick-knacks to make room for staging materials.
-Give attention to Kitchens. Put away in a handy drawer all dish towels and rags. Reduce recipe boxes, barrels of cooking utensils, excess-cooking machines, and cookbooks by two-thirds to open up counter spaces. For a quick update put new hardware on cabinets. Find an out-of-the-way place for a portable dishwasher. Clean off everything on the refrigerator door. Omit throw rugs scattered around the kitchen. Clean off windowsills to open up exterior views. Organize cabinets with clear containers. If you can’t see the back wall of a cabinet, buyers will think you don’t have enough storage space. Ditto closets. Budget to keep a variety of fresh fruit in a glass bowl on the counter. Edit family bulletin boards. Remove old curtains and install new wood blinds on windows.
-Spend time on sleeping and bathing spaces. Often over looked in the frenzy to get a home on market, these spaces can make or break a home. Buy a set that consists of a matching bed skirt, bed spread, pillow covers and blinds to match. Buy a new shower curtain and separate liner. Wash the liner often if mold develops. Add complete sets of towels that coordinate with your new shower curtain. Clear all cosmetics off vanity. If you have an over-the-toilet cabinet consider removing and place a piece of artwork in its place. Remember to keep items in the “too much information” category, out of view. If you have a king-size bed in a small room, you’ll pay to have buyers over come this negative, so get rid of it now. Clear off dresser and nightstands of excess. Make sure the bedroom receives the maximum natural light. Install closet organizers in closets. Eliminate wall and door hooks for clothes. People might look under your bed, no surprises please.
-Remember first impressions in entries. A simple consol table with mirror over makes a nice entranceway. Make sure this space is well lit day or night. Place adhesive under rugs so buyers don’t trip or slide.
Don’ts
-Use inexpensive silk flowers. Nothing distracts buyers more that silk flowers that are past their time, inappropriate for the season or thrown together. Throw them out, now.
-Forget to upgrade Fido’s bowl. I’ve experienced more unhealthy pet food bowls, watering stations and litter boxes than I care to remember. We know you love your pet, but prove it to homebuyers.
-Overlook window coverings. Buyers today think less is more in window fashion. They want the most light and the least embellishment on windows. And no layered treatments with sheer panels please.
-Use low wattage light bulbs. Dark, dim rooms are unappealing to homebuyers. They want to see what they might buy. Replace bulbs with manufacture recommended wattages and especially the burned out ones. The newer low-energy bulbs don’t cast home or people in flattering light.
-Think that everyone loves wallpaper. No two people have the same taste in this instant decorator finishes. If it’s more than three years old, take it down and paint in a neutral color. And wallpaper boarders are out.
-Paint with commitment colors. If you’ve determined that you need to paint, stay away from bold or as I call them commitment colors. Commitment colors are those buyers either love or hate. It can be difficult for buyers to overlay their style on them. As one client said to me ” I don’t live in a magazine.”
-Think cleaning is a part of staging. Cleaning is what you do before staging. Everything should shimmer and shine. Don’t forget the windows.
Use these do-it-yourself tips to place your home on the stage of your local home sale theater.
By: Mark Nash
Property in Verona has always been desirable, and that have never been more true than in today’s market. Verona real estate is snapped up as almost as soon as it comes on to the market. At least these are the findings of the real estate agents involved in the Italian Network.
The Italian Network consists of a wide base of real estate agents from all over Italy. Through the network, both local and indeed national coverage of real estate is met allowing the customer to have access to and view a very wide selection of properties held all over the world. Clients are also able and encouraged to take advantage of the huge number of collective years of experience held amongst the network of agents.
Verona is outstripping other parts of Italy at the moment in terms of popularity and desirability. There are many sumptuous properties available currently in and around the city of Verona. Whether it’s a stunning city centre apartment you are after or a delightful country house situated on the outskirts, through the Italian Network, you will be sure to lay eyes on your dream Verona property.
The range of properties offered in Verona through the Italian Network are some of the most exclusive in Italy and as it is part of the Sotherby’s International Reality Network, you know it is a name you can trust to provide a service that is second to none.
Verona is a delightful Italian city based in the heart of the Italy’s north. Its rose-washed mediaeval buildings and Roman remains attract visitors from around the globe, and let’s not of course forget that it said to be the location where the great love story of Romeo and Juliet took place. The famous balcony of Juliet’s is visited today by tourists in their droves.
Part of the Veneto region, it is in close proximity to Venice, the town of Treviso which is set within 16th century walls and one of the most ancient cities in Italy, Padua. The region itself stretches right across from the Alps to the Adriatic coast and with the stunning scenery, lakes, ancient towns and bustling life that encompass the area, it is of little wonder that Verona property is hungrily sought out. In addition, the excellent links to the popular ski areas held within the Dolomites provide yet further investment potential to real estate in Verona.
If it is buying or selling an exclusive property in Verona, let the Italian Network help. With our clients placed at the centre of everything we do and our strong commitment to providing outstanding service, you can be sure you are in safe hands. We will find your dream Verona property!
By: Ian Baker
