Monthly Archives: June 2016

Ways to Start Investing in Real Estate

Real estate has always been a good investment option. It is also a much safer option compared to other forms of investment such as the stock market. However, before you invest your hard-earned money, it is necessary that you are aware of the risks and expected returns from the investment. So, this article will give you some pointers on how you can go about beginning your foray into the real estate business.

Market Study
If you wish to invest in real estate, but have a limited budget, then conduct a thorough market research to know about attractive investment opportunities. By doing a careful study, you will understand which property deal suits you the best and will generate the maximum returns.

Fix Your Budget
First fix the budget for your realty investments. Decide what is your investment capacity first. Before you decide the amount to be invested, take into consideration factors such as your annual income, current liabilities, monthly expenses, etc.

Finalize the Type of Property
There are different kinds of properties you can choose from. Apartments, row houses, independent villas, bungalows, penthouses, offices, shops, residential plots or commercial land are some options which you can explore. Be aware that commercial establishments will cost much more than the residential ones.

Finalize the Location
Location plays a crucial role in all kinds of real state investments. Whether you get good returns for your property will depend on where your estate is located. So, study the areas in the city and find out the current property rates and scope for further price appreciation there. Ideally, you can try to invest in upcoming locations where you can get properties at cheap prices.

Check the Developer’s Reputation
Checking the reputation of the property developer/builder from whom you will be purchasing the property is extremely important. You should buy a property from a developer who has a good track record of delivering properties on time and having the best construction standards and quality in the real estate industry. Make sure that the developer has followed all the necessary laws while constructing the project and there are no controversies and legal hassles.

Check the Plan
The next step is to check the floor plans with the developer. Visit the developer and understand each and every minute detail and specification of the project. Take along a property agent/realtor whom you know so that he can guide you in your property selection.

Get Finance from Lenders
Real estate is one of the biggest investment options in the life of any person and a lot of money is required for that. So, you might feel the need for finance and hence you should approach top banks with your income and personal information details. Also take the project details to get your loan sanctioned easily.

One way to invest in real estate is by selling a property you own and buying a new one for higher returns. So use these tips and some advice from an expert before you dabble in the world of real estate.

Hiring a Real Estate Agent

Buying one’s own home is a serious matter for many people. Apart from the fact that residential properties aren’t exactly that cheap, the process of securing one can be challenging as well becausethere are a number of things to consider and a lot of paperwork to settle. But if you have someone to help you out, buying a home can be a breeze. This is why whether this is your first time purchasing a residential property or not, it’s advisable that you always enlist the services of a real estate agent.

The Benefits of Working with Real Estate Agents

While it costs money to hire a real estate agent, the services and assistance he or she can provide are definitely worth every dollar you’ll spend. Here’s why.

1. Use the agent’s education and expertise to find the perfect home

Having an agent by your side saves you from the trouble of having to know everything there is to know about buying or even selling real estate. A real estate agent can provide you timely and useful advice that can help you make good buying decisions and avoid real estate traps that can cost you a lot of money in the long run.

2. Get comparable sales

To ensure that you’ll make a good offer, it’s important that you familiarise yourself with the neighbourhood you want to buy in. This is something real estate agents can help you with. They can offer you comparable sales and other nifty information about the neighbourhood or area where the property you want to buy is located. They can also help you verify if the neighbourhood in question is suited for your needs and lifestyle, which is a very important factor when buying a home.

3. Have someone else to handle the paperwork

Real estate agents can manage important documents, such as deed of sale and title of the property, so you don’t have to. With this, you can save a lot of time and effort since there are other people who can do this task for you.

4. Negotiate better

Reliable real estate agents are often trained to present their client’s case in the best light possible. If you want to get a good price for the property you want to buy, your agent can help you in this matter by providing you with assistance during your negotiations with the home seller.

Do Your Research

Real estate agents, however, are not cut out from the same cloth. If you want to get the best results possible when shopping for houses for sale, see to it that you do your research well before hiring a particular real estate agent.

 

Best Tips on Choosing a Realtor

A realtor is a real estate professional who is a member of the National Association of Realtors. This association follows very stringent code of ethics and the members work full-time as real estate professionals. They are licensed by the state to help people in buying and selling properties, and need to meet set standards of education, experience, and examinations. A real estate agent may not be a realtor. If you are interested in buying a property, it is better to choose a realtor over a real estate agent.

How to Choose a Realtor

  • The first step is identification. You can ask your friends and relatives for referrals, or look for advertisements in websites and local newspapers. Identify around three or four of them, call them up and fix appointments for interview.
  • Interviewing realtors will help you in understanding their approach and personalities. This will let you access whether any one of them would be the right person to help you search a home or not.
  • It is important to check whether the person you are interviewing is actually a realtor or not. You can ask him to show his work permit so that you can rest assured that you have chosen a genuine agent.
  • During the interview ask questions like – how often will you provide new listings? When can I expect to hear from you? How fast will you call back if you miss my call? etc. The realtor’s answers to these questions will give you a clear picture about his capabilities and style of working.
  • An experienced realtor has more contacts and is generally more updated than newcomers. Therefore, ask for the agent’s work experience and try to figure a rough idea about the number of dealings he has conducted so far.
  • Ask the agent if he is Internet savvy because agents who are well-versed with the Internet are more likely to send an immediate email about new property listings, and respond to your queries quickly.
  • Look for strong negotiation skills. An agent who is an expert negotiator can be of great help in settling issues between the buyer and the seller, and can conduct the whole process in a clever and efficient manner.
  • Select an agent who has mostly handled dealings from the buyer’s side as he will be proficient in it.
  • A realtor who handles property dealings under your price range and understands your requirements will be able to help you better in your search.
  • Referrals and testimonial letters can help in identifying a good realtor who knows his business well. Therefore, do not hesitate to ask for these documents during the interview.
  • Even though the seller party is liable to pay commissions to property agents, do not simply assume it. Talk about the agent’s charges for the complete process so that there is no confusion about it.
  • After the interviews, take time to analyze which realtor will be the best for you, make up your mind and appoint him as your property agent.

Selecting a realtor over a regular real estate agent helps, because they can access Multiple Listing Services (MLS) which is specifically available for members. This service informs members about new property listings in a particular area and increases the chances of finding a suitable house for the buyer. You can also choose to buy a house without a realtor, but then, you need to be extremely cautious and take legal advice, if required. As said before, owning a property is a dream and buying a house involves a lot of money. So it is simply not viable to choose a person who is not competent enough to help you find the best deal. That’s why, do all that it takes to find a good and reliable realtor and once this job is done, he will help in cracking the best property deal for you.

Ways to Become a Real Estate Agent

Are you a people person? Do you possess good communication and social skills like empathizing, instructing, persuading or negotiating? If yes, then this job could be apt for you. Now, when are real estate agents consulted? They are in need when a customer has decided to sell, buy or rent a particular property that could be residential, commercial, industrial or agricultural. Customers usually prefer seeking help from real estate brokers and sales agents because of the complexity involved from legal documentation to appointing the beneficiaries with the seller’s property.

Requirements

• To become a successful real estate agent, you would require a combination of the right education, a state license, and significant technical skills and expertise with regards to the job.

• A high school degree or a college degree with a state-accredited pre-licensing course and an additional business course in marketing, finance or law will definitely boost your chances of surviving in this industry.

• Specialize and take additional courses; customers usually prefer agents who are specialists or realtors in a particular area. So, being known as a Seniors Real Estate Specialist (SRES) or Certified Residential Specialist (CRS) acts as an extra armor up your sleeve.

• The qualities which are essential for becoming a real estate agent are:

  • Good communication skills
  • Presence of mind, ethics and common sense
  • Interpersonal skills
  • Marketing and persuading skills
  • Ability to learn new things and work independently

• Getting a mentor, and learning the tips and tricks of the trade from an experienced professional will not only give you experience in the field, but will also help you establish yourself in the market.

• A real estate agent’s salary can range from anything between $54,000-100,000 annually and varies as per his education, experience, skill and place of work.

Responsibilities

• Like a dozen other sales jobs, this job, too, is highly dependent on the personal drive, motivation, and sales ability of the agent.

• As a real estate agent, you will need to keep an extensive and up-to-date database of the available and upcoming properties, along with the details of banks that offer loans.

• Researching on property prices, cost per square feet and having a thorough knowledge of the current happenings in the real-estate business is a must.

• The source of earning is in the form of commissions, which the real estate brokers and sales agents charge their clients for signing a deal. So, more the number of clients, more will be the profit.

• Advertising and promoting properties for sale or rent online, taking customers to inspect and see the place, presenting the purchase offers and negotiating between the buyer and seller are the responsibilities of a real estate agent. After finalizing the deal, the real estate agent has to prepare the necessary documents, contracts and agreements accordingly.

• Going weeks or months without a sale is common in this industry, so make sure you have enough savings to eat and pay your bills. In such a scenario, you could utilize your time by broadening your contacts, socializing or joining the National Association of Realtors to discuss and exchange valuable information.

• Set up blogs/websites and keep promoting and introducing properties online, with a virtual chat facility to communicate with your customers over the Internet.

If you can picture yourself outside the typical office job setting and prefer exploring, analyzing and showing properties, meeting new clients, and researching the real estate market, then this could be your dream job. Here’s wishing you the best in your pursuit.