Everything A Real Estate Agent Doesn’t Want You To Know-Part 1

MONEY MATTERS

Are you planning on buying or selling a home? Maybe refinancing? Perhaps you’d just like to pick up a few tips on home buying, selling and mortgage borrowing-if so you may want keep track of Money Matters in the months ahead as I will be giving out all kinds of tips and insights as we approach the home buying-selling season. I will be discussing a wide variety of real estate and mortgage financing issues you should know (Things real estate agents don’t want you to know). Well, good agents won’t have a problem with you knowing this information but the part-timers and less ethical operators would certainly prefer you not know what I am going to share with you!

You see, buying or selling a home is the largest investment of a lifetime for most people and it is a BIG business deal…a transaction composed people, emotions, contracts and cash…all the ingredients for legal and financial pain if you don’t know what you are doing. Real estate agents earn a commission when a home is sold whether they are the listing agent, the selling agent or both. Real estate agents typically (and legally) represent sellers in a real estate transaction and not buyers. Yet, every day, homebuyers refer to the real estate agent as “my real estate agent”…they are not your real estate agent…they are the home seller’s agent and agents have a legal duty to get the best selling price for the seller. Further, anything you tell them can and probably will be used against you to extract a higher selling price out of the deal. Sellers on the other hand are often manipulated into signing long term listing contracts for up to a year by an agent who will simply throw the listing into the multiple listing service (MLS) and hope another agent sells the property for them.

For agents, the name of the game is to get listing contracts…a common slogan amongst real estate agents is: “if you don’t list, you don’t last”. Once an agent gets a listing contract from a home seller, they will get the bulk of the commission when the house is sold whether they sell it or another agent sells the home. Not many sellers know this fact and many are swooned into long term listing agreements with hopeful promise of selling their homes at the highest possible price only to find out they don’t. Agents will say and do most anything to get a listing contract shy of breaking the law. And the big question for home sellers is are you working with a part time or full time agent? What is their background in marketing and sales? Do you really want to sign a long term listing agreement with a part timer that has one toe in the tub and no business background? Were talking about a business deal right?

Whether you are buying a home or selling a home you should be clearly aware that you will enter into legally binding contracts and relying on mortgage lenders to provide financing for the project. The question then becomes; how much do you know about contract law and mortgage financing? What are the most important elements of a contract and how does that impact you as a buyer or seller? This series of articles is generally drawn from my E-Report (101 Real Estate Tips for homebuyers, sellers and money borrowers). The report is designed as a crash course to provide you the information you need to know to protect your legal and financial interests whether you are a homebuyer or seller. This series of articles will touch upon the information you should know to keep from making blatantly stupid mistakes that could hurt you legally and financially and we’ll try to have some fun in the process…

Which reminds me! If you would like to receive a FREE copy of my E-Report: 101 Tips For Homebuyers, Sellers And Money Borrowers, go to smart Books website, send us an email and requesting a copy and we’ll send it to your email address within 24 hours-absolutely free-Another Ezine Articles Exclusive! Don’t forget to say you saw it at Ezine! Stay tuned!

Copyright © 2006

James W. Hart, IV

All Rights reserved

Are You A New Real Estate Agent? Tips to Keep You Growing

Beginning a new career as a real estate agent can be stressful, overwhelming and sometimes even intimidating. There are so many things that happen all at once; brokerage classes, preparing marketing materials, drawing up a business plan, selecting vendors and more. Here a few real estate agent tips to help guide new agents like yourself through the beginning steps of becoming a successful agent.

1. It’s OK to Start Small.

When you’re new to any project, it’s tempting to daydream about what your future successful business will look like. Then you’ll want to spend thousands of dollars to get a high end website and blog, all the glossy advertising you can manage and any other costly gimmick you think will benefit your business. The trouble is hard work and advertising alone won’t make you successful. Just like any other business, cash flow is the most critical component to success in the start up years. 

Plan for success to take longer than you expect and give yourself a margin of error. Consider the less expensive options for your start up needs and gradually work your way up to the premium items you would like further down the road. Resist the urge to overextend your finances or you may find that all the great real estate tips on the web are no help as your brand new business sinks in red ink. 

2. Hire a Coach or Find a Knowledgeable Mentor.

Nothing can replace the value of actual hands on experience gained from sitting in on a listing presentation with a successful veteran. Watching and learning from an experienced agent is one of the most valuable real estate agent tips you can get if you re just starting out. Consider working as an assistant to someone you respect and admire. And learn how to model your own practice on theirs. This will save you countless hours of missteps and years of bad decisions made in ignorance.

It would be foolish for your first experience with a listing presentation to be one in which you are the presenter. Those opportunities are too scarce and far too competitive to waste on your inexperience. Find a reputable and longstanding professional and follow their lead.

3. Be Doing From Day One.

This is the most practical of today’s real estate agent tips. It’s so easy in the early phase to plan and dream of success rather than actually doing anything. But if you jump in and get hands on experience as soon as possible you will fair much better. Call your friends and family members and let them know you’re in the real estate business. They’ll want to work with you because of the relationship that already exists, and they can be a wealth of referrals. 

The fact is that calling is hard–even to people you know. The sooner you start making calls, the faster you’ll become comfortable with them.

Hopefully these top three real estate agent tips for new agents are helpful. There is much more in depth information out there, but keeping these three at the top of your priorities will certainly help guide you along the way.

Choosing a Realtor – Tips to Help You Choose a Real Estate Agent to Sell Your Home

Having a Hard Time Choosing a Realtor?

Choosing a Realtor when selling a house can get confusing and difficult especially taking into account the fact that there seems to be as many real estate agents trying to get your business as there are houses. Okay that may not be at all true but you get the picture.

There will be so many real estate agents promising you the stars whilst charging fees that vary wildly. One has to learn to pick the best one that not only will find you the buyer who is willing to purchase your house at the best price but also the one whom you can trust and work well with.

Follow These Tips to Choose a Realtor That Is Right For You

Always Ask For References – Don’t be so confident about your ability to judge a person’s character. If the agent is really good then ask him or her for references on recent sales. Contact those references and let them narrate to you their experience with the agent. Chances are if there are negative reviews, comments, or complaints about the Realtor then you would know about it soon enough. 

Cheaper Is Not Always Better – Do not always go for the real estate agent who charges the lowest commission. Realtors and real estate companies often shoulder the cost of listing and marketing your house to potential buyers. A huge pay-cut in commission may mean at the very least a listing in the open market but very little assistance and effort from the agent beyond that. Also, a relatively higher incentive will motivate your agent to drop everything and hurdle any challenges that may come his or her way. Simply put, you will get what you pay for.

Benefits Of Choosing Wisely – Another thing to consider is that in a selling transaction two real estate agents are often involved in every sale. Often times, it is a practice by the real estate agents to cede fees to the buyer’s agent. If commissions for your agent is tight then he or she might not be willing to cede fees to buyers’ agent thereby decreasing the chances of a completed sale.

Important Tips to Consider When Selecting a Real Estate Agent

The ample amount of online information regarding how to hire a real estate agent can be helpful for homebuyers and sellers, but finding the right one can still be a challenge. Professional agents should have the necessary skills and expertise to help find exactly what the client desires. These four qualities can clue in buyers and sellers that a real estate agent is a great choice.

Suggests Realistic Prices

When planning to sell a house, it is recommended to get listing presentations from several agencies. They will provide the market prices of comparable homes, as well as the amount of time it usually takes to sell similar properties. Working with professionals to ensure that a home is priced appropriately will make the process less time consuming and stressful.

Works Full Time

Some real estate agents connect home buyers with sellers as a part-time job; however, it is wise to choose one who works in the industry full time to get the best results. Such professionals are in a better position to provide accurate recommendations and tips as they have more experience and a deeper understanding of the industry. A full-time agent will likely spend more time scouting for a home on various listings or showing prospective buyers the house to ensure that the clients acquire or sell a property quickly and at the right price.

Charges an Appropriate Commission

In most states, the commission ranges between five and seven percent and is split between the selling and buying agents. Ask agents about commission rates when putting a home on the market or beginning a new home search. This is an ideal method to ensure that all parties understand the agreement. Also, be sure to ask about any offered rate rebates, as some companies actually pass on a percentage of the commission to the seller or buyer.

Has Experience in the Area

A buyer who is interested in purchasing a full-time residence should pick an expert who specializes in selling such properties in the area. On the other hand, people who are looking for investment properties are better off working with someone who has been facilitating such deals with other investors for years. It is also important to note that most professionals in this industry have multiple specialties.

Even if a candidate meets these four qualities, organize a face-to-face meeting with the home expert to get a full picture of his or her skills and expertise. Most professionals are more than happy to speak with potential customers to answer questions. Finding a real estate agent by following these guidelines will make the entire process of buying or selling a home far simpler.