Mar
2023

Real Estate Agents: An Indispensable Act

We buy homes. It is like any other business form. To sell or buy a home, it requires a real estate agent’s expertise and experience. The doubt factor is hovering over the question of whether to take professional assistance of a real estate agent or not. People would beg to differ here. There would be various reasons involved. Business is flourishing at an unprecedented rate. With changing environment, business techniques and traditions have also undergone massive change. The official definition suggests that they find potential candidates who are looking to buy or sell their houses. These professionals would also provide customized services depending on the situation. They have long list of duties to perform to.

They are best equipped to handle legal and technical aspects of buying or selling a house. To build or buy a home, it is a life-long investment. It would be advisable to look for an expert who has through knowledge of the subject. Online sites can provide extensive information about the best available local real estate agencies in order. It goes without saying that they have to protect their clientele’s interest first. They are required to sell the house (from a seller’s perspective) convincingly well to earn maximum profit in the process. It was also made sure that customer experience was satisfactory or more than what was expected. It is not merely about selling the house but building future process of business associations with the same person again. Sometime ago it was a precarious question to ask as how to choose a real estate agent.

The responsibility factor becomes tremendously huge given the condition that they need to think of couple of things in advance. Real estate agents are required to build customer base by means of providing impeccable service standards to both the parties. Tough economic situations have not made it either easy for them. It is a long process to buy or sell a house. These business experts must stay in close contact with both the sides to keep them updated about the proceedings. It is often observed that due to inappropriate selection of real estate agencies, customers have difficult time. Please try to check few points before appointing any new agency or agent. One can look out in the neighborhood or ask friends to provide valuable tips. The experience factor is one of the effective techniques to measure the performance level. It must not be forgotten that buying a house is an exciting prospect so equal number of efforts shall be made here.

People looking to buy a house can inform agents in advance about the kind of image or neighborhood picture they had in mind. This is the starting point of what would be an interesting next few weeks of inspecting and checking several houses before finalizing the legal process. Real estate agents have brought enterprising approach into the market. They have taken an initiative to capture the essence here. The process has just begun.

Nov
2022

Should Real Estate Investors Get Their Real Estate License?

Ask a large group of investors, there would be a split in the answers given. Personally, I think it is vital to get your real estate license. There are numerous reasons why you should obtain your license; however, I will highlight a few:

1. MLS – Having access to the MLS is extremely important to your investing career. If you do have your license, you won’t have to rely on agents, friends or colleagues for access. The MLS systems contain hundreds of fields of information about the features of a property. These fields are determined by real estate professionals who are knowledgeable and experienced in that local marketplace. The essential information found on the MLS is the address, sales term, tax information, HOA dues and loan information. In addition, you can obtain historical data from the MLS which is priceless. With proper MLS data mining, you can narrow your searches to exactly what type of properties you are looking for.

2. Networking – After obtaining your real estate license you will have the opportunity to network with other real estate professionals at your selected place of employment. In addition, you will have the opportunity to take advantage of the vendor services that your real estate brokerage office offers. For example, some real estate brokerages offer discounted advertising through local newspapers and magazines. Furthermore, networking with other agents has advantages. These advantages enable you to create some creative relationships. Offering part of your commission to other agents will entice them to close deals with you. In addition, offering part of your real estate commission to other agents over time will result in additional deals being thrown your way.

3. Additional Funds – Being involved in transactions after receiving your license will start to bring additional cash flows your way that would have been included in your expenses. Each and every time you’re involved in a transaction you will have a 3 percent (of the total sale price) commission coming your way. Those additional funds can be used toward any aspect of your business. For example, if you buy $2 million dollars worth of property in one year, that is an extra $60 thousand dollars in your pocket.

With an active real estate marketing campaign, you will come across numerous homeowners looking to sell their home. In a best case scenario, you are so busy that you aren’t really interested in listing the home yourself. Therefore, you refer the listing to another agent, for a referral fee. Keep in mind that you are still subject to commission splits and realtor dues. Using referrals as a part of your business plan could bear some fruit as well as other agents will be more likely to throw deals your way when they see a diamond in the rough or a sale that they can’t handle or do not want to handle. In today’s market, this is probably an unlikely scenario, but I can assure you that when the market is back and booming this will be something to consider. I can also assure you that the market will be back at some point, just like other industries…real estate is cyclical.

4. Controlling the Deal – From time to time you will hear about other investors losing deals because of their agent. Eventually you too will run into this problem, unless you have one of the few truly knowledgeable and dedicated real estate agents. Being a licensed agent will provide you with the ability to deal directly with lenders, appraisers, titles companies, inspectors, and closing attorneys on both sides of the deal. Moreover, you and your company will be controlling the showings to buyers, the marketing of the property, targeting for potential acquisitions and negotiating on purchases. Considering your time and money are involved in the deal you will be more motivated to sell the property than another agent would be.

I would recommend any new investor to get their license for all of the aforementioned reasons, but in addition to that, the knowledge base that the real estate courses provide are valuable as well. I truly believe that it will enhance and speed up your real estate investing career.