Real Estate Tips that you Should Know
Are you a homebuyer or an aspiring real estate agent? Are you looking to sell your property and hopefully make money? There are some real estate tips for you here.
The real estate tips we have listed below are just for you! In this article, we will share with you real estate tips and tricks that you can use.
First real estate tip of the day: Get your starter home ASAP!
Whether you are looking to buy a home to live in or just to resell it, the time is now! Real estate agencies predicted that more than half of the home sales (52% to be exact) in 2017 are sold to first-time buyers.
Since many of them were moving from urban rentals, it is expected that prices for starter homes will increase due to higher demand.
Real Estate Tips for Sellers: Choose the right agent
If you are looking to sell your property, make sure that you have the right person for the job. A bad hire can cost you thousands of dollars and months of time, which in real estate world is a big deal.
Time spent on finding a new real estate agent is time well spent. In case you are wondering if the person you are planning to hire is the right candidate for the job, look at the agent’s online marketing material and listings.
Things to look for are good photography, maybe a video, and accurate descriptions without exaggerations. Then you can check their profiles on social media such as LinkedIn and Facebook, and read their web reviews.
Using this method, you should be able to narrow your search down to two or three agents. Now it is time to interview them in person! Feel free to ask them for sales-activity reports, existing listings and time-on-the-market averages, plus the requisite local comps.
Real Estate Tips For Buyers: Use a money loan
If you are looking to purchase a property but don’t have enough money to pay for it upfront, you can choose to take a mortgage loan. We recently learned that borrowers with FICO scores of 690 are being confirmed for mortgage loans.
Quick real estate advice, the higher your rating is (750 and above), the better rates you will get.
Borrowers that don’t have the required 20 percent down payment will still pay private mortgage insurance (PMI) until they hit the 20 to 25 percent equity mark. We strongly suggest avoiding interest-only loans which look affordable on paper. We do not want to repeat the Great Recession of 2008, don’t we?
Time to make the purchase!
Things to know about real estate are that the prices can be very volatile, and the market is always changing. With that said, now is the time for renters to buy the property!
With mortgage rates unchanged, rents are rising much faster than home values. When you put it down on paper, you can see that, if you plan to stay put for several years, buying a house is a better option.
The rule of thumb here is: unless it is not written in a signed contract, the house or the property is not yours. Do not believe the sellers or listing agent’s verbal promises, especially because they can use your offer to bid up the price of their preferred buyers.
You can use strategies such as preapproval, closing flexibility, proof of funding and inspection and repair contingencies to help sway buyers.
How to start a career in real estate?
If you consider yourself a beginner real estate agent, then there are a couple of things you must do before you can take on your first deal. You may be looking for a best real estate company for new agents with the intention to get interviewed and hired.
A real estate agent is engaging, curious, assertive without being aggressive and off-putting, and pleasant in both appearance and manner. They always present themselves as professionals.
Having a degree in finance and understanding how the real estate business works are very useful and it can certainly help, but it is not necessary.
How do I buy and sell real estate?
Before you jump in the business, you must complete a real estate course, especially if you are a beginner. They educate you about local, state, and federal regulations regarding every step of a property sale or purchase. Additionally, many of the courses include:
- Teaching your rights and responsibilities as a real estate agent,
- Showing you how to sell a property correctly,
- Voicing out the importance of continuing education,
- Showing you how to represent your client most professionally and ethically.
The subjects may vary from course to course, and most of them are state-specific, meaning that you will have to take a similar course if you choose to move to a different state, or if you want to practice in a multi-state region.
Getting your real estate licence
After completing real estate classes required and studies by your state, you can take a test and apply for licensing. Depending on jurisdiction criteria for completing a course varies, so you may have to take additional courses even after you receive your licence.
This is important because some brokerages, especially the big ones, require meeting the required criteria to ensure that you are ready to work with their systems.
I want to work independently, so why do I need a brokerage?
As you will learn on a real estate course, for consumer protection purposes, most states require real estate agents to be affiliated with a brokerage. Besides, brokers have at least three additional years of real estate education and training, which makes them valuable for beginner real estate agents.
Before you decide to join a brokerage, check the following criteria to make sure that it is the right one for you:
- How much experience does the brokerage have?
- Does it have a good reputation?
- What experience do agents and clients have with the brokerage?
- At what point will you start earning commission?
- Do you have to complete any additional courses, or will you be given a mentor?
Yes, but will I be working independently?
Every real estate agent is independent, yes – but the amount of hours you have the option to set depends on your brokerage. The more you work though, the more commission you will see.
Now, you may think that getting a license as notary or appraiser will help you out, but truth be told; it will not. What does make the difference is you being an informed and knowledgeable agent.
Before you set foot to buyers or sellers market, make sure that you have a decent wardrobe and at least a couple of months’ living expenses put away. Just in case.
What’s my expected salary?
The amount of money you can earn depends on where you are practicing, what’s the market in your area, and your characteristics. Good salespeople can hit the six figures and more per year, while weaker agents can make a couple of thousand dollars per year.
Make sure that you are keeping up with trends in your market, as well as more “upscale” markets near you.
Ending thoughts on a real estate tips
There is much money to be made in real estate business, and the profession is quickly gaining popularity. Many beginner real estate agents think that it is a simple job, but the reality is much different. It is much more than just: buy a house, sell it and make money, repeat.
We hope that these home buying tips and tricks will be helpful to you.
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