When you're in the market to buy or sell, there's one thing you'll have to deal with: Real Estate Agents. Love us or hate us, we're a big part of any real estate market and can make or break a deal.
Here are some tips on how to work with agents, not against them:
PART I: First Time Buyers
Get a buyer agent, and be loyal to them.
Only inexperienced and lazy agents will work with a buyer who is also working with other agents. I haven't for years. You'll get mediocre service from multiple agents. I work with a small number of 'real' buyers, rather than a large number of 'maybe' buyers. My clients get better service if I limit the number of people I work with. I do that by asking for your loyalty, sometimes in the form of a contract. A good agent will pay for themselves 10 fold.
Don't say 'I only want a good deal'.
I know that you don't want a bad deal. All my clients want and get a good deal. No one buys something they think is a bad deal. Ever.
Besides, your good deal is another person's bad deal, it's simply not that simple...
Don't ask us to 'just email me listings that are good'.
Be more specific. Price range, area, style of home etc. Then meet with me. Sometimes a chat with a pro will open up whole new avenues you haven't even considered. I've seen it happen.
Don't be overly-sensitive.
Sometimes the advice is going to be "Ok, you've seen enough properties, this is the one, you should write an offer". I don't say it lightly. If I tell you you should write an offer, then maybe you should. I've had zero people regret writing an offer. I've had lots of people regret NOT writing though.
Don't mistake good advice for 'pressure'.
Get Pre Approved already will ya!
Nothing screams 'real buyer' more than someone who has already been to see their bank or mortgage broker. Don't have one? You can meet with our in-house mortgage broker at your first meeting!
Don't be combative.
The fact is everyone involved in a negotiation wants the deal to close. The seller wants to sell, the buyer wants to buy, and both agents want to help close the deal. The only thing we're not in agreement on basically, is price.
In fact, we're all aiming for the same thing, which is a deal that makes every party HAPPY...because a happy client refers their friends and family; and that is what allows teams like us to continue to thrive in one of the world's most competitive real estate markets...
10 Important Tips To Successful Real Estate Investing!
Be a Real Estate Investor - 10 Important Secrets When it comes to investing, everybody has certain goals and aspirations. However, we have found that there are certain guidelines every aspiring real estate investor needs to know:
1. Compare Property Values and Rents Financial statistics only go so far; the best measure of a property's market value is often the sale prices of nearby properties. The same holds true for area rents. A low price can often be justified by a reasonable rent; renters who can afford a high rent can afford to buy instead, so reasonably priced rent is a need.
2. Be careful - Tax laws may change Don't base your tax investment on current tax laws. The tax code is constantly changing, and a good investment is a good investment regardless of the tax code. The right property with the right financing is what you should look for as an investor.
3. Specialize in something you Know Start in a market segment you know. Whether you focus on fixer-uppers, foreclosures, starter homes, low-down payment properties, condominiums, or small apartment buildings, you'll benefit from experience by specializing in one aspect of investment real estate properties.
4. Know the Costs going in! Know the financial statements inside out. What are operating expenses? What are loan payments? Vacancy costs? Taxes? What does the cash flow statement look like? These are key issues that must be addressed before making a solid investment.
5. Know where your tenants are coming from If the last rent increase was recent, your tenants may be considering a move. If tenants have a short-term lease, they may be living there simply to attract unsuspecting buyers. It is also important to collect the tenants' security deposits at closing.
6. Assess the tax situation Taxes are an integral part of successful real estate investing, and they often make the difference between a positive cash flow and a negative one. Know the tax situation, and see how it can be manipulated to your advantage. It may be a good idea to consult a tax advisor.
7. Investigate insurance coverage If seller's coverage is based on lower-than-current replacement value, your insurance cost may increase when you pay a higher purchase price.
8. Confirm Utility Costs Ask the local utilities to verify recent utility expenses, especially if any of these costs are included in your tenant's rent.
9. Consult Your Accountant Taxation is a key element of successful real estate investing, so be sure to find an accountant who is well-versed with the constantly evolving tax code.
10. Inspect! Make sure that you always perform a thorough inspection of the property before buying it. Never, ever buy any property without at least examining the site. In some cases, hiring professional inspectors to examine the structural mechanical system may be a sound investment.