Why hire a Realtor

5 Reasons to Hire a Real Estate Professional

by The KCM Crew on May 14, 2014 in For Buyers, For Sellers3.8k 2.6k 610 449 118 9 Whether you are buying or selling a home, you need an experienced Real Estate Professional to lead you toward your ultimate goal. In this world of instant gratification and Internet searches, many sellers think that they can For Sale by Owner or FSBO.The 5 Reasons You NEED a Real Estate Professional in your corner haven’t changed, but rather have been strengthened in recent months due torising interest rates & home prices as the market recovers.

1. What do you do with all this paperwork?

Each state has different regulations regarding the contracts required for a successful sale, and these regulations are constantly changing. A true Real Estate Professional is an expert in their market and can guide you through the stacks of paperwork necessary to make your dream a reality.

2. Ok, so you found your dream house, now what?

According to the Orlando Regional REALTOR Association, there are over 230 possible actions that need to take place during every successful real estate transaction. Don’t you want someone who has been there before, who knows what these actions are to make sure that you acquire your dream?

3. Are you a good negotiator?

So maybe you’re not convinced that you need an agent to sell your home. However, after looking at the list of parties that you need to be prepared to negotiate with, you’ll realize the value in selecting a Real Estate Professional. From the buyer (who wants the best deal possible), to the home inspection companies, to the appraiser, there are at least 11 different people that you will have to be knowledgeable with and answer to, during the process.

4. What is the home you’re buying/selling really worth?

Not only is it important for your home to be priced correctly from the start, to attract the right buyers and shorten the time that it’s on the market, but you also need someone who is not emotionally connected to your home, to give you the truth as to your home’s value.According to the National Association of REALTORS, “the typical FSBO home sold for $184,000 compared to $230,000 among agent-assisted home sales.”Get the most out of your transaction by hiring a professional.

5. Do you know what’s really going on in the market?

There is so much information out there on the news and the Internet about home sales, prices, mortgage rates; how do you know what’s going on specifically in your area? Who do you turn to, to tell you how to competitively price your home correctly at the beginning of the selling process? How do you know what to offer on your dream home without paying too much, or offending the seller with a low-ball offer?“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.” – Dave RamseyHiring an agent who has their finger on the pulse of the market will make your buying/selling experience an educated one. You need someone who is going to tell you the truth, not just what they think you want to hear.

Bottom Line:

You wouldn’t hike up Mt. Everest without a Sherpa, or replace the engine in your car without a trusted mechanic, why would you make one of your most important financial decisions of your life without hiring a Real Estate Professional?

How to Choose a Realtor

                              How to Choose a Realtor

Whether purchasing or selling a property, whether your personal home or an investment property, you no doubt want to ensure you have the best representation possible.

Without a doubt, the Realtor you select should be personable and friendly...someone that you are comfortable with as a person.

Yet, being a nice guy or a swell lady doesn't necessarily mean the person has the skills, connections and experience to provide the excellent representation you deserve.  Same can be said that the cranky guy may be a bit tough to handle but boy could he do you a great job!!

As you meet Realtors at open houses, or via calls to a Real Estate office, you should be prepared with your questions that can differentiate the pretender from the real deal.

Here is a list of questions that I might suggest.  You should feel free to add to this list as you deem fit.

                Qualifying Questions to ask a Realtor

 1.  Are you a Realtor?   If yes, what value does it have to me?

 2.  What percentage of your potential commission will go to                   advertising/marketing my property?  What sources do you use           and why?

 3.  Where does your company rank among the Real Estate 
      Companies in "your market"?

 4.  What service(s) does your company provide that differentiate it
      from your competition? 

 5.  How many offices and Realtors are associated with your firm? 
     What advantage is that to me?

 6.  Describe your Buyer Pool?  How will that impact the sale of my 
      house?

 7.  How do you ensure I know the available homes I might 
      purchase?

 8.  What Relocation Assistance can you provide?

 9.   What specific experience do you have selling this
        neighborhood?
    
10.  How do you:
       a) Ensure I don't move until I'm ready?
       b) Ensure only qualified buyers see my house?
       c) Ensure I only see homes that I can afford?
       d) Ensure a potential buyer has sold financing?

11.  How does the Standard Purchase Agreement work in my 
       favor as a seller?   As a buyer?

12.  Where do you rank in your company in sales and listings? In
        the broader market?

13.  How many years have you been a Realtor?  Number of 
       Circle of Excellence Awards or any other awards?

14.  Do you have letters of recommendation that you can provide
       or websites where you have been reviewed?

By asking these questions, you will quickly learn experience, knowledge and success a Realtor possesses.  Very valuable information  as you begin working together to make a smooth transition to your new home.

SOLD...Is The Only Word that Counts

  Sold

          Under Contract

                           Pending

These are the only words that matter to a Home Seller.  Yet, the only word that really counts in "Sold".

With the improving real estate market, home buyers truly hope that home owners will be come home sellers in 2014.  The Housing Shortage has continue all through 2013.    Perhaps, home owners didn't believe "Sold" was a true possibility and still walking away with a couple of dollars in their pocket.

In most cases it was in 2013!!  

A truth proven again and again, five factors are common to ensure a home sells.

   *  Knowledge of ever changing Real Estate Market

   *  Competitive pricing

   *  Compelling Offline and Online Marketing 

   *  Large Buyer Bank

   *  Realtor Network

   National Stats, as well as local realities, are that listing with a Realtor nets Sellers about 16% more than if they go it alone.

Imagine selling a $300,000 home and leaving $48,000 on the table.

Did you know that Buyers learn of a home as follows:

    40% Internet(88% start process online)

    35% Agent/Realtor

    11% Sign in Yard

      4% Home Builder--New Home Sites

      6% Neighbor/Friend/Neighbor of Seller

      3% Print advertising

      2% Seller

As you can see, Realtor advertising, online presence, networking brings the buyers!!!  A very low percentage learn of a house directly from a seller.  

Knowing the market place and helping Sellers establish competitive sale prices ensures the house is prepare to match Buyers' expectations when drawn to a given house.

Thus, sellers should be very wary of losing money believing they will be saving money.  For example, languishing on the market due to overpricing can cost an individual with a $2000 house payment to loose $8000 or $10,000 of house payments that can be avoided through proper property pricing.

No one wants to waste money!!!

Remember to get to "Sold"    Call a Realtor!!

In Hampton Roads, you can call me at 757 580-6546 

       

  

Ways to Invest in Real Estate?

Way to Invest

In Real Estate

Are you an individual that seeks to make a sound return on their investment dollars?

Do you like long term investments that have a steady return?

Can you accept a modest risk factor in your investments?

These questions are important as one looks to invest in Real Estate.

As a non-liquid investment, Real Estate has typical factors of such investments:

1) Low Liquidity

2) Steady returns

3) Long Term Ownership

4) Slow Turnover

Yet, there are a number of means to invest in Real Estate.

The primary means that most Americans invest in Real Estate is in the purchase of their personal residence and perhaps a vacation home.   Though seeing the purchase as a place to raise a family or retire, the intrinsic nature of the home is that it's value can rise or fall, as is typical to any investment vehicle that most commonly own such as stocks and bonds.   Many people who own a home for 20 or 30 years will typically see their investment double.  A modest 3% average increase in value per year is all it takes.   And one gets to enjoy living there the entire time.   Try that with a stock certificate some time!

Other avenues to invest in Real Estate are:

1.  Invest in REIT(Real Estate Investment Trust directly or via 

        mutual fund like T Rows Price Real Estate Mutual Fund(lots

         and lots of mutual fund choices)

     REITS and the like Mutual Funds typically results from pools

         of investors investing money to allow a manager(s) to purchase

         property and income from rents

         A second type is a Mortgage REIT that invests in mortgages

          and mortgage instruments with income for interest on 

          mortgages.

        Expect:  Steady returns and low volatility

                    Note:  Closely examine portfolio information to ensure

                               you know the investment objectives

2.  Purchase properties with intent to rent

        Desired Outcomes:    Steady monthly income

                                         Home value appreciation

3.  Purchase properties with intent to renovate and re-sell(FLIP)

         Along with purchasing properties with intent to rent, flipping

         houses is the second most discussed topic in real estate 

         investing.

         Greatest challenges for successful flipping is financing and

          quality contractor availability.   Unless one has very deep

          pockets, bank loans, personal loans and lines of credit

          on main residence are typical to finance homes.  For the

          individual desiring to flip homes, institutional investors(i.e.

          REITS and mutual fund companies) can be tough 

          competition.

          Yet, locating and maintaining a relationship with quality 

          contractor(s) can be an investor's largest challenge. Unless

          one can keep a contractor in work 365 days a year, he/she

          will look for other work.

          If these two hurdles can be managed well, flipping houses

          has two expected outcomes:

      

           1.   Quick turn on investment

           2.   Substantial return(excess of 10%) per project

           Note:  I didn't mention finding properties as an obstacle.  

                     Distressed properties are always available in

                      every market.

4.   Provide funding for investors looking to flip homes.

         Hard to believe?  You can make money in Real Estate if you

         have cash, stock, a line of credit with available credit even

         if you never walk into some distressed house.

         This concept is for the savvy Real Estate investor that is

         willing to make money based on another person using his/her 

         money to renovate homes. Such RE investors make money

         by sharing profits with the individual that renovates a house

         to sell.   A common term for this investment is Hard Money

         Lending.

         Should you invest in Real Estate in this manner, you must

         be very savvy about the market you are investing in, the 

         before and after value and in vetting the investor that

         comes with you with this opportunity.

Without a doubt, a Realtor experienced with flipping houses and working with such investors is a key ally in items 2, 3 and 4 above.  To make money in these three ventures, knowing the market, the competition in the market and home values is absolutely necessary. Such knowledge can't be attained by looking up homes on Zillow or Truila or by driving a few neighborhoods.  It takes a professional real estate agent knowledgeable of all factors involved with the Real Estate Investment.

Yet, as to REITs and Real Estate Mutual Funds, you need to talk to your financial advisor.   The returns, history and company information that he/she can share will be very valuable.  In addition, the financial advisor can evaluate how such Real Estate ventures will fit in your portfolio.

If you have questions, let me know!!  I have that Real Estate experience in all these avenues.  So if you want to get started, I can help.  I will share what I have learned and know to help you make 

a nice return on your Real Estate investment.

Call today   757-580-6546         

What to Seek In Your Next Realtor

In purchasing or selling real estate, selecting a Realtor is a key consideration.   Like choosing an attorney, financial planner or a doctor, you must choose carefully as you must trust the advice provided in the same way as you would in these other professions.

Frequently, the home purchase or sale is the largest financial transaction(s) in a person's life time.   Thus, good counsel is essential.

So how to choose a Realtor??

Experience, Availability, Personality and Knowledge are key factors.

Experience counts!!   Though a new agent may have a good working knowledge of a contract, the experienced agent should know means to leverage the terms of the contract to his/her clients advantage.  In addition, experience brings a broader knowledge of the home values, historical and present, negotiating savvy and vetted marketing strategies.

I must note these factors should be self-evident in talking with an experienced Realtor in the Realtor responses to questions and description of experiences.  IF YOU AREN'T COMFORTABLE THAT THE AGENT HAS THE EXPERIENCE NEEDED, HE/SHE MAY LACK THE EXPERIENCE.

Availability may seem a mute topic.  Yet, even the best Realtor in town can be too busy at a given time to help you.   It is so true that if you want something done, ask someone that is busy.  

As you speak with the Experienced Realtor, inquire about their availability on week you plan to come in town to tour homes or the weekend that you want to list your home.  A truly good Realtor will always discuss availability openly to ensure your needs are met!!

Personality can not be ignored.  Though Realtors like me believe we can work with anyone as we just love to help, you, as buyer or seller, must be comfortable with me or any Realtor that you are considering.  IF the agent wasn't as outgoing as you would like or has failed to respond to texts as quickly as you will expect or some other such attribute that "bugs' you,  you should seek to talk to another agent.

Knowledge should be self-evident from the moment that you start speaking about the house you seek or the home you need to sell.
If BUYING, does the Realtor ask specific questions to qualify the type of house you seek?  Or notes the rarity or the ease of finding the house that you seek?   Or brings up other buyers helped finding the same king of house. Such actions shows knowledge of what needs to be know to find the right house...but it will go much deeper as the transaction progress to knowing the best way to negotiate for the best deal, in handling home inspection and handling issues to ensure you close on time with little headache.  

If SELLING, does the Realtor bring extensive market related data that shows in depth knowledge of the specific neighborhood and the broader market?   Do they quickly recognize both good aspects of your home and those aspects needing work with a value based input on these aspects of your home?  Does he/she know how he/she will market your home and why he/she do it that way?

Knowledge will show itself quickly or it is absent.

THE BEST WAY TO GET THE BEST REALTOR IS TO ASK A FRIEND, CO-WORKER OR FAMILY MEMBER FOR A REFERRAL.


Referrals get you a known successful Realtor.  I know I appreciate every referral I get!!  It validates that I am what a buyer or seller seeks.