Dean Graziosi Real Estate Blog

Putting your house up for sale requires a great deal of time and money, both of which can take an emotional and financial toll. That’s why it’s so important to get all the facts before you decide to sell your home.  And the first question  you need to answer is: Will I hire a real estate agent?

Reasons in Favor of Hiring an Agent

1. A real estate agent is a trained, certified professional with the necessary experience and expertise to sell homes and properties in your area.
2. Agents tend to be more objective and detached from your personal point of view, and will work hard to sell your home since it is how they make e their commission.
3. Real estate agents will help you establish a reasonable price for your home, based on their knowledge and training.
4. You do not always need to be present in order for your agent to show your home to prospective buyers.  Your agent can absorb some of the responsibilities that tend to get in the way of the things you need to be doing as a buyer and a seller.

Cautions When Hiring an Agent

1. Make sure you are hiring someone with enough experience, who is connected to the community in which you are both selling and buying a home.
2. Choose an agent who charges a reasonable commissions by comparing the commissions of other local agents. You could spend more money than necessary on an unreasonably high commission.
3. As the seller, be aware of the pricing and value of your home.  Make sure your agent has not priced your home too low simply to make the sale.  The price should be in your best interest and should be comparable to the listing prices of other similar homes in your area.
4. Sometimes, your agent may arrange showings for your home at short notice which may prove difficult for your busy schedule.  Good communication is key.  Let your agent know your expectations upfront and communicate any dissatisfactions with him/her immediately.

The  bottom line:  While many people decide to sell their homes themselves, the decision to hire an agent is a big decision that shouldn’t be taken lightly. Diligently research your local market, get recommendations and referrals from friends and family, and interview a few real estate agents that seem like they might be a good fit for your needs.  And most of all, take the time and do the work needed to make the most informed decision possible for yourself and your family.

Bookmark With

Face it, real estate investing is a complicated, risky, and time consuming process that is not for the faint of heart. Investing in real estate can gross large amounts money in relatively short periods of time. It can, also, utterly destroy your livelihood if it’s not done with patience and a little guidance. Below, is a list of 10 tips I’ve accumulated to help you make the proper investment decisions.

1. Inspect the property thoroughly. This is the most important aspect of any real estate purchase. Hire professionals to come in after your initial inspection. You can, also, check with neighbors about the history of the house, who lived there, did they take care of it, were they breaking things and always causing a ruckus. If that is the case, an in-depth inspection must be done, you never know what a person can do to a house they know they’re leaving.

2. Specialize in one type of real estate. There are many different types of real estate in the world, trying to be trade-smith of them all is going to bring more frustration than profit.

3. Get to know local and state tax law on a personal basis. Local and state tax laws can have a huge impact on the final price of loans and payments, which will have a direct influence on your cash flow.

4. If you’re renting out the property in question, get to know the tenets. It’s very tempting to take the first tenet who has the cash needed on hand. While, it is important to get a cash flow moving from a that property, it’s equally important to get tenets who won’t destroy your rental. In the long run, following this tip will save you more money than you’ll profit by rushing tenants, unchecked, into your properties.

5. Learn when to cut your losses. Losing money can cause anyone’s hair to turn grey and fall out. It’s one of the most stressful situations an investor can be in. So, be honest with yourself and note any problems that are going to affect the cash flow of any given property. If necessary, realize you’ve gotten in over your head and deal with the problem accordingly.

6. Get a mentor. A mentor can be save a new investor a tons worth of personal setbacks and frustrations along their chosen career. A mentor, even paid, can give vital pointers in the art of real estate negotiation, how to handle short sales, REO’s, and foreclosures.

7. Once a surplus of cash has been created, the best avenue for that cash, if you’re interested in growing your career, would be to start your own real estate business.  At this point, you need to be very experienced, 5-10 yrs. minimum, and have a high level of confidence in your own ability to find, rehab, and sell properties.

Use these tips and your own business savvy common sense and you’ll find your way through the real estate maze to get that all elusive profit.

Bookmark With

Experienced agents that have gathered the comparable statistical data reports still rely on their instincts to guide them.  Active agents are familiar with many properties in the area.  They are engaged in the market and have command of information and experience.  These agents can explain why one house sold for more than another house.

However, that does not mean the seller will welcome the information or is interested in facts that do not support their wishes.  That happens.  It is tricky.  But, it is a bridge every agent is forced to cross at some point in their career.  Often the key to success is confidence in the knowledge of the marketplace and confidence in the substantive data used to determined market value.

An important consideration that can serve as a useful reference point is square foot analysis. In some real estate offices, this is required information.  Experienced agents track selling prices and track the square footage of homes in certain price ranges.  Care is needed in these comparisons because square footage selling prices may include amenities and differences in lot sizes that can affect market value.  However, square footage analysis works and is a useful guide in crosschecking values.

Agents should always know the square footage cost of building a new home.  That is important data and it affects the market value of every listing and home in the area.

Additionally, when the home is under contract, the appraiser will use square footage comparables.  With changes in today’s approved appraisal practices, this is becoming mandatory.  The listing agent must be able to justify pricing on homes that sell at a higher square footage rate than comparable properties.

To apply a square footage comparison, the agent must know the value of certain amenities, the desirability of those amenities as well as the impact of the lot on the square footage average.  Certainly a two-acre lot has added value to a comparable home on a half-acre lot.  The question is how much added value.  At first, homeowners may not want to listen to square footage comparisons.  The fact is that they are difficult to ignore.  Properly documented, the square footage approach to substantiating market value is extremely effective.

Bookmark With

When your real estate investment business is ready to add a short sale real estate agent to your team, you should be clear as to your expectations.  The main reasons agents are used:

·                     Fill the need for an excellent negotiator who will have credibility with the sellers and lenders.

·                     Give your investment business access to the Multiple Listing Service (mls).  Of course, you will always be on the lookout for properties before they are listed but the mls has great value when it comes time to sell your properties.

·                     Help find tenants for concluded transactions that you will be holding for a period of time.

·                     Assist with any listing, selling or closing details.

·                     Assist with showings of your properties.

Another benefit on a short sale real estate agent is that they work on commission.  If they fail to negotiate well or fail to rent properties or sell them, they are not an expense. 

Some investors feel that the commission arrangement is their greatest weakness because they are not your employees.  Real estate agents are independent contractors.  If they think you are wasting their time, they will be on to the next opportunity.

If you opt to use an agent, you must clearly define the agent’s role and then assess their qualifications. A few of the questions you may want to ask are:

·                     Is the agent in a position to find short sales before they hit the mls?

·                     What short sale experiences does the agent possess?

·                     Has the agent taken the National Association of Realtors Short Sale course?

·                     Has the agent ever worked directly with one of more lien holders?

·                     Is the agent experienced at creating BPO’s?

·                     How many short sales has the agent actually closed?  Ask them to explain the workings of a typical short sale.

·                     How many short sale purchasers have they assisted?

·                     Do they own any short sale properties themselves?

·                     Is the agent comfortable helping locate tenants for your properties?

Answers to these questions will give you a clear picture of what you can expect.  Move slowly through the agent selection process.  Selecting an agent who is too busy or who does not have enough time for your business will set your mission back.  Only hire the agent that fills al your needs.  The chances are good that this agent will not be a personal friend. 

Bookmark With