All about real estate agents

Real estate agents are professionals who help in connecting the buyer to the seller. A lot of real estate agents also do rentals wherein they connect tenants to landlords and even maintain the property on the behalf of the landlords. The real estate agents work by linking together the two interested parties and charging a commission for their services. For sales, they charge commission only to the seller but for rentals (i.e. agent managed rentals) the commission is charged to both parties involved in the transaction. Real estate agents generally calculate their fee as a percentage of the selling price (in case of sales) and as part of the rent (for rentals). People, who want to sell/let their property, leave the details of their property with the real estate agent (and in fact, even leave the keys of the house so that the real estate agent can arrange for viewings without them getting into any hassle). The other interested party (i.e. the buyer/tenant), gets access to this information by contacting the real estate agent. That’s how the real estate agents become a hub of information.

A lot of home seekers (including real estate investors) use the services of real estate agents not just for getting good deals but also getting them quick. Since real estate agents are probably most familiar with the market situation in their region of operation, it makes sense to approach them to get an idea of the going rate for properties in that region. Real estate agents would generally know the prices of various properties of different types and at various locations in the region.

A property seller can possibly get a few thousands more for his/her property by using the advice received from a good real estate agent. A good real estate agent will also analyse the needs of a home buyer/tenant and provide suggestions on what kind of home could be available to them within their budget. So a good real estate agent will not just throw a list of available properties to the buyer/ tenant but will actually discuss their needs and make a suggestion. This, in fact, works in the favour of real estate agent in two ways. Firstly, if the real estate agent is able to sell the house they get their commission and secondly, if they make the buyer happy too they earn a good reputation (and hence more business).

However, it is worth noting that real estate agents work on seller’s behalf. So, beware if they are trying too hard to sell a property.

Real estate investment is about finding good deals

Real estate investments are often treated as one the best ways of investing money. However, what you are looking for is not just any real estate investment, but real estate investment that can give you good returns. By real estate investment we mean investing money into property i.e. buying property at a low price and selling it at a higher price so as to make a profit out of it. So the most important part of good real estate investment is to get hold of such properties which can give you good returns.
Now, how can you get these potential profit-making deals?
Your first avenue for finding good deals is the local newspaper (the property newspaper). Just search for properties that are listed directly by the owners who want to avoid paying commission to the real estate brokers. Since the owner is saving on the commission that they would otherwise have to pay to the broker, they would probably be able to offer a lower price to you and be more open to negotiations. You could also place your own ‘wanted’ ad in the local newspapers. On the same lines, you could use internet to search for the real estate investment avenues. In fact, you would be astonished by the number of real estate investment opportunities you are able to locate on the internet. Not only that, searching for real estate investment opportunities (i.e. property for sale) is much easier on internet than anywhere else.
Another good way to hunt for real estate investment opportunities is by using the services of real estate brokers. Some people use real estate agents as their first (and maybe the only) touch point for getting real estate investment opportunities. The real estate agents act as information hub for people looking to buy property. In fact, a lot of sellers find it much more convenient to sell their properties by listing it with real estate agents.
Multiple listings service is another good way to find real estate investment opportunities. Since the multiple listing book is provided only to the real estate agents and not to the general public (unless you are very lucky), all the cream (good real estate investment opportunities) would have already been taken before you get to see the book. The key here is to look for expired listings that didn’t get converted to a deal.
Another good way to get a property, that is a good real estate investment, is to look for foreclosures by banks/ VA/ FHA or to visit public auctions. You can generally get a good deal here. Divorce settlements are another good real estate investment opportunity.
So, real estate investment is really about finding good deals. And finding good deals does take some effort

Purchasing a house can be an exhilarating experience for everyone in the family. Many different options are open in finding a home. If you choose to have the assistance of an agent, there are things to be aware of. The real estate agents are professional, however they may leave vital information out of the conversations. There are some imperative factors that you must know in order to make wise decisions.

The most important thing to remember about a real estate agent is they are first and foremost an over glorified salesperson. Their goal is to sell a house. They will go through all the hype trying to make the buyer think the best about the worse. Now not all agents are liars. However, keep in mind the point of roles. They are selling and you are buying. Be sure not to forget this major advantage. After all, you might believe you must have an agent. This is not the case. The negotiator is just that, a negotiator. Their primary objectives is buying and selling. When they work they are mostly after the commission.

The real estate agent may not explain to the consumer the problems associated with the property. If the dwelling has ants, termites or any other pest problems it is likely they will not be straightforward with them. Other issues to be aware of are plumbing, water damage or electrical problems. The agent you choose may hold this information back. It is true that they give you a list of house investigators. This is so the purchaser can have the house checked out. However, keep in mind the list is coming from the person who wants to sell the home. Some examiners will receive kickbacks from the real estate agent so they can obtain more business. There are a few representatives who know just about as much of the house issues as you do. Which case in point is, nothing.

Real estate agents will not let you know of properties where they will not receive any commission. Even though, you pay for their services. The properties can include the price range, correct location, and other criteria that you’ve specified. The agent may skip over houses even if they are perfect since they will not profit off of the deal. This is a great reason to do some checking on your own, even if you do have an agent working for you. Then as the buyer, you will know and understand if the agent is really working as hard as they can to help you find that perfect house.

Be cautious of brokers who try to raise the price. Explain to the agent that you can only spend a certain amount of money and stick with that. An agent may decide to show you homes a little higher than the max you are willing to spend. The agent may try to explain that there are no houses in the price range you have stated, which is usually untrue. Or else, they give details on how this particular residence is only a certain dollar figure more. Usually this is not too much extra. Remember, they would like you to pay out more cash so they can increase their commission. This technique can be very subtle. Some people may not even notice they are attempting this method.

Agents may tell you that a certain property is will be a great investment for the future. An agent may even state that the land will double in five or ten years. This may or may not be true. Some real estate is sure to increase in value while others will not. However, a broker is not one to ask this information from. They are not experienced in this kind of detail. The agent is, again, trying to sell. Do not take any advice the real estate person is claiming to be true as face value. If you want to know if something they have said is true or untrue you must explore this knowledge yourself.

Using a real estate agent is everyone’s choice. There are some excellent agents that are ready to help. For the most part, beware of the ones who just want the money. Be wary of the run-around. Make very sure the agent will return phone calls or e-mails. Buying a house is a very big step. Review all the facts and figures before taking the plunge.

You want to either sell or buy a new home, but you are unsure of what realtor to go with in the process. Understanding the role of a realtor and how they relate to you if you’re a seller or buyer is extremely important. For the first time home buyer or seller you need to be aware of a few facts, and clear out the cobwebs of confusion on the responsibilities and duties of a realtor.

Depending on what state you live in realtors may be committed to act only as the seller or buyer agent. Many times however a realtor may take on a dual role of representing both the seller and buyer, or known as a dual agent. In other words they have a duty to sell the home for the best possible price for the seller, and at the same time are committed to get the best asking price for a buyer. This can be a little nerve racking for many people, but the best defense is being in the know about the legal and moral responsibilities associated with a realtor’s dual agency representation, and how you can feel confident about working with them.

The legalities of the fact for realtors are that in most states they are required to share the knowledge of which party they work for. Most of the time realtors work for the individuals that are selling a home. If you are unclear make sure to ask, so to ease any nervous jitters on your part. Always assume that any realtor is working for a firm that represents both a seller and a buyer, and if you are a buyer, make sure to hold close any information that may affect any deals that are offered for your purchase of a house. Buyer’s agents have a loyalty to the buyer only. This is verified by a signing of a contractual agreement between both the agent and the buyer. The buyer should be aware that agents are held to a legal and moral obligation to not disclose any personal facts not only to the home seller, but to the realtor’s agent. Material disclosure is permissible though about the property, such as any known pest infestations, or problems with the structure itself. A dual agency for a realtor is usually assumed for them if they represent a buyer; make sure to check into the realtor’s status for your own peace of mind. However, contract protection is afforded for anyone that is interested in purchasing a property through an agent that represents a seller’s interest by signing a contract to represent both.

If you are in the market to buy a home you need to expect a reasonable amount of service from any real estate agent that represents you. The goal should be to fully represent your best interests. You need to be informed clearly from your agent if they will require you to sign an exclusive clause contract. This legally binding contract will require you to work with that agent only. Always search for an agent that will allow you to have other realtors working on your behalf. All buyers agents should work diligently to help you sell your home by providing comparisons studies of the in your area, and to handle any inspections, or working with a lender and the loan application process. He or she should be more than willing to consider and respect your wishes when planning an open house for either other realtors or the general public. Agents should always be courteous about general appointment times to meet with you, and should always leave a cell phone in case of unexpected issues surrounding the sale of your home. Your buyer’s agent should clearly explain all aspects of the contract to you. Issues such as contract compensation and their exact fees for selling your home, along with things such as how long you must list your home with them should be covered in a written contract.

Over all the experience of either buying or selling a home should be one that is pleasant for both the seller and buyer. Selling and buying is a serious decision that can affect your financial and emotional well being for years to come – consequences of how informed you are will be long lasting, many years after you have walked away from the bargaining table.  

Real estate law: Not for you?

Real estate is indeed one of the safest investments and a lot of people use real estate as an investment avenue. Real estate law is not the forte of real estate attorneys and real estate agents only. Every real estate investor should understand at least the basics of real estate law. In fact, a short course or a concise book on real estate law can sometimes be of great help (and is generally sufficient for understanding the basics of real estate law).

What you need to understand is the real estate law with respect to the legal procedures that you need to follow for ensuring a smooth transfer of title to the property you acquire/sell and other related procedures. You need to understand the fee structure (e.g. stamp duty, etc) that you need to take care of as per real estate law. You can also understand the classification of properties and how the basic real estate law applies to them. How the commercial and residential properties are treated differently by the real estate law. The tax laws with respect to real estate are one of the things that would be of most interest to you. So, your study on real estate law should also cover all the aspects related to taxes. How mortgages are treated in the perspective of real estate law is another thing that you should know about. Then again, the real estate law with respect to tenancy should also be well understood by people who wish to rent out their property.

However, you should not overdo that i.e. you should not start becoming hysterical about learning real estate law (lest you end up wasting a lot of time in trying to learn everything about real estate law and be left with no time to evaluate your real estate investment). Leave the intricacies of real estate law with the real estate attorneys (and to some extent real estate brokers who too are taught real estate law as part of their course for obtaining broker license).

Understanding the various legal terms referred to in real estate laws can help you in not only enhancing your understanding of real estate but also help in making your conversations with real estate attorneys/agents really fruitful. You should also note that though some of the basics remain the same, the real estate laws vary across various states. Also, real estate laws (especially the tax related real estate laws) can undergo a change over a period of time, so you need to keep a tab on such changes. Any big changes will anyhow appear prominently in news and you will get to know of them anyhow.
So knowing a little bit of real estate law can really be helpful (and is, in fact, essential).