So not long ago, I sold a home for someone I had been working with for almost a year trying very hard to get their listing sold.  Ads were run in the local newspapers.  Ads were run online.  All of the major Real Estate websites had the IDX share to the listings so everyone who searched online could see the photos, video, and information on the homes.

For a listing agent, all of this costs a lot of money.  When a seller tells me that they spoke to another agent who will sell their home for a percent or even sometimes TWO percent less than me, I have to wonder if they plan to market the home at all.  So, here I am with all of my expenses…sellers expect open houses, of course AND in the end they want to offer you less to sell the house.

This is one unfortunate aspect of listing property.  The seller does NOT understand that you are the agent spending all of the money to get the house or condo sold.  I actually had a seller think I should pay for some of their inspection repairs.  Now, sometimes I will if they aren’t asking for other discounts without a problem…but it seems that the people who want to most tend to give the least.

This seller already had a discount on commissions.  The other agent and I kicked in to get the home in contract price range appeasing both the buyer and the seller.  It was no measly amount, either.  Then in the end also wanted the repairs paid for by someone else.  I really don’t understand why a homeowner thinks it is ANY agents’ responsibility to be paying for ANYTHING they have not kept up on their home they stand to make hundreds of thousands selling.

Again, want to be real estate agents…this is where the thick skin comes in.  You have to see the big picture of the check in the end.  Sometimes it falls within the ‘am I getting paid for all of this work?’…or not.  Sellers will turn right around and give the listing to someone else, lower that ‘firm price’ they insisted on when you had the listing and then poof, another agent cashes in on that commission you should have been able to get.

Remeber to keep it real.  Try not to give the upfront discounts because later they will ask and expect either way!

 

Why Investing In Real Estate Works

Every day we see businesses being born, they peak, they thrive, they fall, maybe they return and maybe they die off, forever. If you are good with numbers or have a background in construction, the business of buying real estate and land or even condominiums could be worth thinking about. If this business wasn’t so lucrative, the very wealthy wouldn’t take the time to invest so much into it.   You wouldn’t want to invest in something that won’t pan out for you. Unlike other businesses, real estate is generally always a good investment and may be the only real mainstay market if you can get the right price on the property.

Even though the real estate market rises and falls, there are still many benefits to working with real estate. You can expect that if something happens that causes the real estate prices to lower, it will eventually come back up to the point it once was and generally will even surpass that. Mke sure that you can afford what you buy!  There is always a need for housing and people are always moving into different locations, especially retirement and second home states like Florida or California. If you are looking in the specific Florida Real Estate Market check out this Florida Real Estate Agent Facebook Page.  Searches can be done right here!  Another good place to check is the real estate trends 2017.

No matter what type of real estate you are investing in, you can expect that someone will have the specific need to live in that particular property at some point. Buying, selling, and renting real estate is part of basic, everyday life. Not just for some….but for almost everyone. It can be expected that buyers will always be looking to buy, and owners will always be wanting to sell or rent their properties. In a bad

There is always a need for housing and people are always moving into different locations, especially retirement and second home states like Florida or California. No matter what type of real estate you are investing in, you can expect that someone will have the specific need to live in that particular property at some point. Buying, selling, and renting real estate is part of basic, everyday life. Not just for some….but for almost everyone. If you aren’t already an owner a landlord then you are a renter…or a buyer.

It can be expected that buyers will always be looking to buy, and owners will always be wanting to sell or rent their properties. In a bad real estate market, rentals are king because no one can get financing to buy their own homes. Then on the other hand, when the markets are good sales are lucrative so it can be a win-win for an investor if he buys when the time is right.

One of the advantages of real estate that gives it more stability no matter what the economy is that there
will always be something happening in the real estate market. It can be expected that if the market is bad, individuals will be working towards selling their homes to move somewhere more substantial. If the economy is good, then individuals will be looking into buying homes that can offer more. This helps to keep real estate alive and as one of the more stable income positive places to put your hard earned money.

If you aren’t certain about investing in real estate, you don’t need to look any further than the economy of real estate
and how the fluctuation is always to the advantage of those owning property. No matter what the
circumstances, people are always looking for a place to live. If you want to make sure that you are
part of the trend in the market place, then investing in real estate can most certainly be a way to keep
stable income when other avenues fail.

In short, buy what you can and rent it to someone until it is prime selling time.  You can’t build equity if you don’t invest in owning!  If you are looking for a second home in a luxury market you can try this website in Marco Island and Naples FL at http://www.agentkrystalmarco.com/marco-island

I have had my fair share of really great sellers and have been blessed to call so many of them friends.  When a seller has the right mindset they can get their home sold quickly and quite possibly get every dime they expect their property is worth.  The thing is, most sellers for whatever reason feel like their home is worth so much more money than the market supports.  I believe it does take a strong Realtor to help the average person understand markets and how they work.

A buyer always thinks a home is overpriced and a seller always thinks that they are giving it away.  There is a nice balance in there where the asking price is higher than the seller expects but he/she is negotiable in contractual terms.  As an agent, we have to start to be a little more selective when we start to look at potential customers looking to sell.  I ran across this agent’s website that offers a ‘Discovery Form’ and at first, I scoffed at the nerve of someone actually interviewing a seller instead of the other way around but then I actually found it ingenious that the right questions are asked right off the bat to see if the person who is inquiring about their services is serious about getting the property sold or if they are just listing to ‘see what they can get’.

If the second is the case, it almost always is an expensive lesson for the real estate agent who has taken their listing and is battling the general public to get a price that the selling party expects to net.  In short, if you are interviewing for the spot of selling agent on a home or condo that will never sell because of price or issues you could be in for large expenses and headaches.  Choose carefully when you are getting into an agreement.  Unless it is for a year and you have the idea that the difference between what is and what is ‘probably not’ I would pass.

Until next time……

I Listed a Timeshare that Haunted Me For Years

So I got a call from a family who had bought a timeshare in the height of the market and it was worth about a seventh of what they paid.  But even at the seventh….it still wouldn’t sell.  It was in a great location, great building that rented easily and for the most part was always full.  I knew when I listed it that the sale would be tough.

Once the listing went live my phone rang off the hook.  I got calls from all over the United States.  I would get people so excited that they were willing to make a cash offer over the phone!  Now, that might sound great…but these folks thought that they were making an offer on a purchase.  Like a condo for pennies that they owned full time.  I stated in the listing on the FIRST line in capital letters the fact that it was a TIMESHARE and the week it was listed for.  I happen to live in a resort market where there is not a condo under 200K that isn’t a studio around 500 sq/ft.

I could not believe how many calls from people who believed they were going to get a 2000 sq/ft luxury condo for under 10,000.  It was ridiculous.  I have never fielded so many calls for nothing.  So, like the other listings before it, the time expired on the contract and still…..no buyer.  I now get others who call me to list in the same building and tell me how their unit is worth at least 3 times what this one was worth.  It is unfortunate because when you tell a seller that condos have been listed and at what price they are beside themselves.

Sometimes, sellers think that we the agents are just making things up to try to swindle them out of a better price on their property.  In some cases that could be true but a seller HAS to know the local market.  They just have to pay attention to what neighboring homes are selling for and why theirs is likely to do the same.  Then a rational decision can be made on which agent to use and why.  Find an agent who will take the time to not only give you comps but is willing to work with you over time if you are unsure about pricing.  After you watch the market, you will know….

Trust me….not having a real estate agent is like not knowing your rights when you get pulled over.

 

In my last post I mentioned that I used to work in the Investment Real Estate Market more than anything during my first year of holding a license.  It was certainly an eye opener.  Appraisals were crazy.  Appraisers had the freedom to overvalue a property by hundreds of thousands of dollars and then buyers were able to take out the equity in properties they bought with a mortgage on both!  So let me tell you about what my first employer and many others were doing at that time.

This company went into a neighborhood that was growing.  The homes were newer and waterfront so they were climbing in value as every investor’s eyes were much bigger than their stomach so to say….or their wallet for sure!  The company had me to go in and find subject homes for sale that were basically in a subdivision that the other homes had sold for more.  They would then make an offer to the sellers and then hold a contract that was assignable and they honestly could not get investors quick enough.

The homes were going up and up.  Way faster than a market should be climbing but hey, I was new and didn’t really know what they were up to.  I was the perfect agent to do the job.  I was hungry, motivated and had plenty of time on my hands to search high and low for these homes.  Now, hey had pretty much risen the values of the other closed properties by themselves, CREATING a market that was ripe for the picking.

Pretty soon, a hundred thousand in equities was not enough.  They wouldn’t accept a spread under 150K to 250K.  It got out of hand.  And of course, they were getting the difference in the first value of the home they were paying the sellers and the ‘equity’ already built in these houses.  Needless to say after a short while us agents working for them started to realize what was happening.

When I walked away from this company I had 6 homes in contract.  I wrote letters, walked away and thank God I did.  Shortly after the FBI came in and took them to jail.  We were all questioned but since they actually disclosed what they were doing on the HUDs….it was legal.  Until they breached the agreements they had with the buyers which had absolutely nothing to do with the agents.

After that ordeal, I resolved to do traditional real estate only and nothing that seemed anything from the normal transaction.  The market in this town fell hard and really, they were to blame for driving up the prices and once things fell the equity was gone.

Finally, the community is growing again.  It is a great place to buy and no doubt will be stronger than ever in the future.

 

Becoming a Real Estate Agent

When you are considering becoming a real estate agent there are many things to take into consideration.  Are you a patient person?  Can you multi-task?  Are you responsible and detail oriented?  Can you put up with people who will use, abuse and discard you like an M&M they dropped on the floor?  If you answer NO to any of these and so many more similar questions…..Real Estate may not be for you.

I became a Realtor over 10 years ago.  Since then I have learned that just like in every day life….you can learn a new lesson every single day.  Whether it be about Real Estate Laws, contracts, procedures, commissions, agents actions or negotiating there are things you learn throughout your career.  My first year in real estate was the best grossing year I had until this past year.  The market was hot and I was fresh and ready to hit the pavement.  It was great!

Then the following year, the market took a huge fall and I found myself figuring out what I wanted to do next.  Luckily, I have a background in a few different things so I participated in real estate part time and went back to a regular job.  I basically made sure I did a few rentals during the year to pay for my dues, supra and MLS access.  I learned and learned that it is not a steady income until you truly “build a business’.

After a few years passed I decided to return to more and more transactions until I was ready to ‘get back into business’.  This was a time of short sales and foreclosures.  Not after the banks figured out how to do them.  When we ALL had to figure out how to do them and they took forever!  Some could not even get close to the closing table.  It was chaotic and no one had answers because the recovery had not begun and Realtors were still trying to make a living doing what they were licensed to do.  Sell houses!

In short, the Real Estate industry is an ever changing career and if you don’t have the nest egg to start and the commitment to stick it out you could be out of business before the first year is over.  It isn’t as easy as folks try to look at it.  An agent shows a house…then gets a check for $20,000.  But more on that next time….