Even if you are just starting out in our real estate school or researching how to get your real estate license, you probably want to know what it takes to be successful in the real estate business.
Even if you are just starting out in our real estate school or researching how to get your real estate license, you probably want to know what it takes to be successful in the real estate business.
This leads to the question - what defines success as a Realtor?
Objectively, every business (even the individual real estate agent) needs KPIs - also known as Key Performance Indicators. KPIs are measurable values that businesses and organizations (and Realtors) use to track progress toward specific goals and objectives. They are typically used to assess performance over time and provide a way to measure success or failure in achieving specific targets.
KPIs can be used in a wide range of contexts and industries, from marketing and sales to finance and operations. They are often tied to specific business objectives, such as increasing sales revenue, improving customer satisfaction, or reducing costs. As a real estate agent, knowing what KPIs are and how to measure them can give you a way to look at your business outside of just dollars and cents.
These KPIs are particularly useful to a new agent because there will likely be a few months early in your career where you are getting your bearings and might not see any revenue - but you are still making progress.
In the broad world of business, examples of KPIs might include:
Sales revenue: This might be tracked on a monthly or quarterly basis to assess how well a company is meeting its revenue targets.
Customer satisfaction: This might be measured through surveys or other feedback mechanisms to assess how happy customers are with a company's products or services.
Website traffic: This might be measured using web analytics tools to track how many visitors a website is receiving over time.
Employee productivity: For bigger and more established businesses, this might be measured using metrics such as sales per employee, number of calls or emails answered, or projects completed on time.
By identifying and tracking KPIs, businesses gain insight into their performance and make data-driven decisions about how to improve their operations and achieve their goals. It is important to select the most relevant KPIs for each specific business or project and to ensure that they are tracked consistently over time.
So how does this relate to real estate agents?
KPIs for real estate agents are measurable values that can help agents track their performance and progress toward specific business objectives. Here are some examples of KPIs that real estate agents may use:
Number of listings: The number of listings an agent has at any given time can be a key indicator of their success in attracting new clients and building their business.
Time on market: This KPI measures the average amount of time it takes for an agent's listings to sell. Agents who are able to sell properties quickly may be viewed more favorably by clients.
Sales volume: This KPI measures the total dollar value of properties an agent has sold within a specific timeframe. This metric can be used to track an agent's overall business performance and success.
Conversion rate: This KPI measures the percentage of leads or inquiries an agent converts into actual clients. Agents with a high conversion rate may be more effective at closing deals and building long-term relationships with clients.
Customer satisfaction: This KPI measures how happy clients are with an agent's services. Agents who receive positive feedback from clients may be more likely to receive referrals and repeat business. In order to measure this you or your broker might need to send review forms out to past clients to gauge satisfaction.
So how does the individual real estate agent improve customer service and satisfaction?
One tip is to be responsive - one of the most important aspects of good customer service is responsiveness. Respond to client inquiries, calls, and emails promptly, and make sure you are available to answer their questions and address their concerns.
Don’t forget to listen actively - Good communication is key to providing excellent customer service. Listen actively to your clients' needs and preferences, and make sure you are clear in your communication with them. If they ask for a single story home with a pool, don’t show them 3-story townhomes with no pool.
Another tip is to brush up on your knowledge. As a real estate agent, it is important to be knowledgeable about the local real estate market, trends, and regulations. Clients rely on you to provide them with accurate and up-to-date information.
Its important to be professional and proactive: It is important to maintain a professional demeanor at all times when working with clients. Dress professionally, be on time for appointments, and treat clients with respect and courtesy.
Anticipate your clients' needs and take the initiative to provide them with relevant information and resources. Offer suggestions and advice based on your expertise and experience.
By focusing on these aspects of customer service, real estate agents can build trust and long-term relationships with their clients, which can ultimately lead to increased success and referrals.
Referral rate: The final KPI I wanted to write about measures the percentage of new clients an agent receives from referrals. Agents with a high referral rate may be viewed as more trustworthy by their clients.
Real estate agents can generate more referrals by building strong relationships with their clients, providing excellent service, and actively seeking out referrals. Here are some specific strategies for increasing referrals:
Focus on customer service: Providing exceptional customer service is key to generating referrals. This includes being responsive to clients' needs, providing accurate and helpful information, and maintaining a professional demeanor at all times.
Stay in touch: Keep in touch with past clients through regular communication, such as email newsletters or phone calls. This will help you stay top of mind and increase the likelihood that clients will refer you to others. Make sure to stay active on all the social media platforms so your past clients know you are still in business.
Ask for referrals: Don't be afraid to ask for referrals directly. Ask satisfied clients if they know of anyone else who might be in need of real estate services, and make it easy for them to provide referrals.
Build a network: Develop relationships with other professionals in related industries, such as mortgage brokers, home inspectors, and contractors. They may be able to refer clients to you, and you may be able to refer clients to them.
Provide valuable content: Offer valuable content, such as market reports, home buying or selling guides, or other resources that clients may find helpful. This can help build trust and loyalty, and increase the likelihood of referrals.
By focusing on these strategies and providing exceptional service, real estate agents can generate more referrals and build a thriving business.
By tracking these KPIs real estate agents can gain insight into their performance and make data-driven decisions to improve their operations and achieve their objectives.
Love,
Kartik
|
Preparing for your real estate exam involves looking at a number of concepts that are likely to be on your exam. Financing is one such topic that is worth directing some of your time to. The DRE says
Preparing for your real estate exam involves looking at a number of concepts that are likely to be on your exam. Financing is one such topic that is worth directing some of your time to. The DRE says that 9 percent of the exam covers financing and a financing concept that is commonly tested is “amortization”.
Amortization of a loan refers to the process of paying off a debt with regular and fixed payments over a specified period of time. Each payment includes a portion allocated to both principal and interest.
Principal is the amount of each payment that actually goes to reducing the amount owed. Interest is the fee that is charged for borrowing the money.
The word "amortization" comes from an Old French word "amortir," which means "to kill" or "to deaden." This is rooted in medieval times and idea was that each payment would "kill off" a portion of the debt, reducing it gradually until it was fully paid off.
The modern financial meaning of the term, which refers to the gradual repayment of a loan through regular payments that include both principal and interest, evolved from this earlier usage.
Example: You borrow $800,000 to buy a house and pay off the loan over the 30 year term. At the end of the 30 years, the loan has been “fully amortized”.
In simple terms, amortization breaks the loan into smaller and more manageable payments over a set period. As an example, in the case of a car loan the time to “fully amortize” or “kill” the loan is typically 4-7 years. In the case of a home mortgage, the loan term is usually either 15 or 30 years.
Every loan has an amortization schedule which outlines the amount of the payment and shows the portion of each payment that goes towards paying off the principal and interest.
Because amortization “kills” the loan, each payment made during the amortization period reduces the outstanding balance of the loan by some amount. In the early part of the payment schedule, most of the payment goes towards interest, but as the loan progresses, more of the payment goes towards reducing the principal.
Over time, the amount of interest paid decreases, while the amount of principal paid increases. At the end of the loan term, the full amount borrowed is “amortized”, and the borrower owns the property outright.
Not all loans are full amortized. For example, there is another type of loan known as a straight note or interest-only loan. In this arrangement, the borrower makes interest-only payments and none of the payment goes to actually reduce the principal balance.
Straight notes may be used in certain situations, such as when a borrower expects to have a large amount of cash available at a future date to pay off the principal balance, or when a borrower needs lower monthly payments in order to afford the property.
However, straight notes can be risky for borrowers because they may result in higher overall interest costs, larger future payments, and potentially owing more on the loan than the value of the property. As a result, straight notes are generally less common than fully amortized loans in the mortgage industry.
So which loan is better?
Whether a fully amortized loan or a straight note is better depends on the specific circumstances of the borrower and their financial goals.
A key benefit to the fully amortized product is that it results in the loan being completely paid off at the end of the loan term. This type of loan provides predictability and stability in terms of payment amounts and a clear path toward paying off the debt.
As mentioned earlier, a straight note requires the borrower to pay only interest on the loan for a set period of time. This type of loan can result in lower monthly payments and may be beneficial for borrowers who need more flexibility in their monthly budget. However, because the principal balance is not being paid down during the interest-only period, the borrower will need to make larger payments or refinance the loan to pay off the principal at the end of the interest-only period.
In general, a fully amortized loan may be a better choice for borrowers who want to build equity in their property and pay off the debt over a set period of time, while a straight note may be a better choice for borrowers who need lower monthly payments in the short term but are willing to take on the risk of potentially higher payments in the future. Ultimately, borrowers should carefully consider their financial goals and the terms of each loan option before making a decision.
There is another type of even riskier loan product common before the financial crisis of 2008 is known as negative amortization. It’s called negative amortization because instead of the loan balance going down, in negative amortization the loan balance actually goes up.
The reason the balance rises in negative amortization is because the payments are not sufficient to cover the interest owed on the loan, resulting in the interest being added to the principal balance. This means that the borrower's loan balance actually increases over time rather than decreasing as it would with a fully amortized loan.
Negative amortization typically occurs with certain types of loans that have adjustable interest rates, such as option adjustable-rate mortgages (ARMs), or payment option loans. These loans offer a low initial payment, often resulting in a payment that is less than the interest that is accruing on the loan, causing the unpaid interest to be added to the loan balance.
Although the payment on a negative amortization loan is much lower compared to even a straight-note, this type of loan has several horrific consequences for borrowers, including increased interest costs over the life of the loan, larger payments in the future, and potentially owing more on the loan than the original amount borrowed. Therefore, borrowers should carefully consider the terms of their loan and ensure that they can afford the payment amount both currently and in the future.
Because of all these risks associated with the negative amortization product, when Arnold Schwarzenegger was governor, California passed legislation actually banning new negative amortization loans.
Federally the Truth in Lending Act (TILA) requires lenders to disclose the terms of a loan, including the payment schedule, interest rate, and total cost of the loan over its term. Additionally, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 includes provisions that require lenders to evaluate a borrower's ability to repay the loan, which has led to tighter regulations on certain types of loans, including those with negative amortization.
If you are reading this article and want practice questions related to real estate finance to prepare you for your real estate exam, I’d recommend checking out our exam prep website for tons of practice questions and updated content.
At the end of the day, fully amortized loans can offer several benefits for borrowers, including:
Predictable payments: With a fully amortized loan, the borrower knows exactly how much they will need to pay each month and over the life of the loan. With an interest only loan, on the other hand, there may be a balloon payment at the end of the loan or a variable rate after some fixed period. Full amortized loans can make budgeting and financial planning easier and more predictable.
Reduced interest costs: By design, fully amortized loans are created so that the borrower pays off the loan balance over a set period of time. Because of this borrowers will typically pay less in interest costs over the life of the loan compared to other types of loans, such as interest-only or balloon loans.
Equity buildup: As time goes on and the borrower makes payments on a fully amortized loan, the loan balance gradually decreases, resulting in an increase in equity in the property. Combine this with expected appreciation of the home and equity can start to build quickly- no doubt an important factor for homeowners who plan to sell the property in the future or use it as collateral for another loan.
Lower financial risk: Fully amortized loans offer a lower level of financial risk for owners because the loan balance is gradually paid down over time, reducing the risk of owing more on the loan than the property is worth.
Potential tax benefits: In some cases, the interest paid on a fully amortized loan may be tax-deductible, which can result in additional savings for the borrower.
Overall, fully amortized loans offer borrowers a stable and predictable path towards paying off their debt, with lower overall interest costs and reduced financial risk. Much of the real estate industry (and society at large) learned their lesson in 2008 when borrowers got risky adjustable rate and interest only loans in the few years prior.
As always if you are interested in taking real estate classes with our school and for in-depth instruction to help you pass the real estate exam visit www.adhischools.com.
Love,
Kartik
|
Real estate can be a challenging career for some, but whether it "hard" or not depends on a variety of factors, including your strengths, experience, market conditions, and overall dedication to the profession.
Real estate can be a challenging career for some, but whether it "hard" or not depends on a variety of factors, including your strengths, experience, market conditions, and overall dedication to the profession.
Remember that real estate sales is a highly competitive field, with many agents and brokers vying for clients and listings in the same market area.
Considering how much money a real estate agent can make, real estate has a very low barrier to entry. Think about other lucrative careers like becoming a doctor or lawyer - real estate sales has the potential to make just as much money but becoming a licensed real estate agent requires much less by way of time and money. Our real estate courses are as little as $199 and can be completed in 54 days. The result is that a lot of folks get licensed and end up competing for the same clients and listings.
This sense of competition is especially heightened in a limited inventory market. When the supply of homes for sale is limited there may be more agents and brokers than there are available listings, making it even more competitive to win new business.
Your journey in starting a real estate career will be much easier if you remember that market conditions can change rapidly. Because the real estate market is constantly evolving, changes in interest rates, economic conditions, and local regulations all affecting the demand for housing. Successful real estate professionals need to stay on top of these changes and adapt their strategies accordingly.
Another tip to ease the transition into the market is to remember that building a successful real estate career requires a significant amount of time and effort invested in networking, marketing, and prospecting.
Networking is a crucial part of building a successful career in real estate and I wanted to share some tips for effective networking in the industry:
Attend industry events: Conferences, trade shows, and networking events are great places to meet other real estate professionals and build relationships. Look for events that are relevant to your niche or market, and come prepared with business cards and a clear elevator pitch.
Join professional organizations: There are many industry associations and organizations that offer networking opportunities, as well as education and training programs. Consider joining groups such as the National Association of Realtors (NAR), the Women's Council of Realtors, or a local real estate investment club.
Participate in online communities: Social media platforms like LinkedIn and Facebook can be great tools for building professional relationships and staying connected with other real estate professionals. Look for groups or forums where you can share your expertise, ask questions, and connect with other industry insiders.
Collaborate with other agents: Consider partnering with other agents or brokers on transactions or marketing initiatives. This can help you expand your network and build relationships with other professionals who may refer business to you in the future.
Provide value: Finally, it's important to remember that networking is a two-way street. Offer your expertise, knowledge, and connections to others in the industry, and be generous with your time and resources. This will help you build a reputation as a valuable member of the real estate community and strengthen your professional relationships over time.
As you consider whether or not a career in real estate is right for you (and how difficult it may be) bear in mind that real estate is cyclical. It is cyclical because our industry is heavily influenced by the broader economic and financial cycles that affect the economy.
The real estate market is influenced by the overall health of the economy. When the economy is strong, people have more money to spend on housing, which can lead to increased demand for real estate. When the economy is weak, people may have less money to spend on housing, leading to lower demand.
Another thing to keep in mind is that interest rates play a significant role in real estate cycles. When interest rates are low, it can be easier for people to obtain financing and afford a home, resulting in increased demand. When interest rates are high, it can be more difficult for people to obtain financing, leading to lower demand. The couple of years of the pandemic were great for the real estate industry and a large part of this had to do with interest rates being so low during this period.
Another fundamental truth about the real estate market is that it is subject to the basic laws of supply and demand. When there is more demand for housing than there is supply, prices tend to rise. When there is more supply than there is demand, prices tend to fall.
These factors, and others, all contribute to the cyclical nature of real estate and can impact how “hard” the business is for you as you get started. As economic and financial conditions change over time, so do the patterns of supply and demand in the real estate market. Understanding these cycles is crucial for real estate professionals who want to stay ahead of the curve and succeed in the industry.
Another challenge that real estate agents face it that we often work irregular hours, including evenings and weekends in order to accommodate clients' schedules. Here are a few reasons why:
Client availability: Many real estate transactions take place outside of regular business hours, when clients are available to view properties, attend open houses, or meet with their agent. This means that agents may need to be available evenings and weekends to accommodate their client's needs.
Flexibility: Real estate agents often have some degree of flexibility in their schedules, which can be a big perk of the job. However, this flexibility may also mean that agents need to be available outside of regular business hours to meet with clients, attend inspections, or negotiate deals.
Competition: Real estate is a highly competitive industry, and agents who are available and responsive to their clients are often the most successful. This can mean working irregular hours in order to stay ahead of the competition.
Administrative tasks: In addition to client-facing work, real estate agents also have a variety of administrative tasks to manage, such as paperwork, marketing, and bookkeeping. These tasks can often be done outside of regular business hours, which may contribute to a more irregular work schedule.
All of the above being said, many people find real estate to be a rewarding and fulfilling career that allows them to help clients achieve their goals and build their own businesses. Success in real estate often requires a combination of knowledge, skill, hard work, and a passion for the industry.
As always, if you are interested in getting your real estate license our real estate school is here to help!
Love
Kartik
|
Part of preparing for the real estate exam involves studying as much vocabulary as possible. One vocabulary word that is worth reviewing is the word “lien”. The purpose of this article is to go over
Part of preparing for the real estate exam involves studying as much vocabulary as possible. One vocabulary word that is worth reviewing is the word “lien”. The purpose of this article is to go over a few different examples of liens that are commonly tested on the real estate exam. You might have already read my article on encumbrances - if not that link is worth reading once you are done with this more specific article.
While reading this, bear in mind that liens are quite common and don’t always need to be viewed as scary or fatal to the title to real estate.
Simply put, a lien is a claim or legal right that a creditor has against a property to secure payment of an obligation or other debt by the property. If the debt is not paid, the creditor may have the right to sell the property through foreclosure.
Some liens can affect all property of a debtor. These are called “general” liens and are so called because they affect everything that a debtor might own. Examples of general liens might include judgements and income tax liens.
Other liens are known as “specific” and only affect one particular property. As an example, a mortgage lien is a specific lien because the lien only pertains to the property on which the loan is placed. Imagine you have two houses, one in Los Angeles and another in San Diego. If you refinance your house in San Diego and put a mortgage on it the lien only relates to the San Diego home and not the house in Los Angeles - hence mortgage liens are “specific”.
There are several other types of liens that can be placed on real estate and I’ve outlined some of the most common below. These are worth memorizing and understanding so you have context for the state exam. You might remember a lot of this from real estate school but this article is worth it as a refresher.
Property Tax Liens: As the name suggests, property tax liens are filed by the government to secure payment of delinquent property taxes. If the taxes are not paid, the government may have the right to foreclose on the property. The lien is typically recorded in the county where the property is located and becomes a part of the public record.
If a property tax lien is filed against a property, it may impact the ability of the owner to sell or refinance the property until the taxes are paid or the lien is removed. Again, in some states, the government may have the right to sell the property at a tax sale if the taxes remain unpaid for a specified period of time.
Income tax liens: Like property tax liens, income tax liens can have a significant impact on real estate. An income tax lien is a claim made by the government to secure payment of delinquent income taxes owed by an individual or a business. If an individual or a business fails to pay their income taxes, the government may place a lien on real property to secure payment of the taxes owed.
The income tax lien is recorded at the county in which the property is located and becomes part of the public record. The lien provides the government with a legal claim to the property and gives them the right to foreclose on the property if the taxes remain unpaid. The specific requirements for filing an income tax lien vary by state, so it is important for property owners to be aware of the laws in their jurisdiction.
Mechanics Liens: No - this lien doesn’t have anything to do with leaving your car too long at the mechanic. A mechanics lien is a claim by a contractor, subcontractor, or supplier to secure payment for work performed or materials supplied for the improvement of real property.
A mechanics lien provides a legal claim to the payment for work performed or materials supplied on a property and allows the contractor, subcontractor, or supplier to potentially foreclose on the property if the debt is not paid. The mechanics lien is typically filed with the local government and recorded in the county where the property is located.
In order for a mechanics lien to be valid, certain requirements must be met, such as proper notice to the property owner, the use of proper forms, and timely filing of the lien.
If a mechanics lien is filed against a property, it may impact the ability of the property owner to sell or refinance the property until the debt is paid or the lien is removed. It is important for property owners to monitor any liens that may be filed against their property and to take steps to resolve any liens in a timely manner.
Judgment Liens: A judgment lien is a claim by a creditor to secure payment of a debt that has been awarded in a court of law. This type of lien can be filed against a property if the debtor loses a lawsuit and is ordered to pay.
The judgment lien is typically filed with the local government and recorded in the county where the property is located.
Homeowner Association Liens: A homeowner association (HOA) lien is a claim by a homeowner association to secure payment of delinquent HOA fees or assessments owed to the association. If the fees or assessments are not paid, the homeowner association may have the right to foreclose on the property.
This type of lien is filed by a homeowner association to collect unpaid fees for common area maintenance, landscaping, security, and other services provided to homeowners in the association.
It is important for real estate owners to understand the liens that may be placed and to take steps to prevent or resolve any liens that may be filed against their property. This may involve paying any delinquent debts or taxes, negotiating with creditors, or consulting with a real estate attorney.
In conclusion, liens are a way for creditors to secure payment of a debt or obligation related to a property. Liens can have a significant impact on the ownership and value of a property and it is important for real estate owners to understand the liens that may be placed on their property and to take steps to prevent or resolve any liens that may be filed against their property.
As always - if you are interested in taking real estate classes with our school reach out at www.adhischools.com
Love,
Kartik
|
1. Arrive early at the property
Most buyers are pretty excited about seeing a home in-person for the first time. Sure, they’ve probably seen more than a few pictures online but there’s nothing like
1. Arrive early at the property
Most buyers are pretty excited about seeing a home in-person for the first time. Sure, they’ve probably seen more than a few pictures online but there’s nothing like walking through a home and touching, feeling and smelling it. Taking those first steps into the house comes with hope and all the possibilities of what life might be like when they move in.
With that said, imagine you are a homebuyer and call up a real estate professional and set up an appointment to view the property.
Upon your arrival the the agent is nowhere to be found.
All sorts of red flags start firing off in your mind:
“Am I at the right address?”
“Did the Realtor get lost? Wait - how does a Realtor get lost? Aren’t they supposed to know the area?”
“If they can’t show up on time - maybe they aren’t so reliable after all!”
Basically, when you arrive late for an appointment you undermine your trustworthiness at both a conscious and subconscious level.
Showing up early demonstrates that you are able to manage your time and are able to meet basic deadlines.
Pro tip: Get there at least 15 minutes early so you can verify access and open the property up.
2. Dress the part and groom yourself properly
Dressing appropriately is one of the easiest ways to make a good first impression.
I want to emphasize the word “appropriately” in this sentence because it doesn’t always mean a three-piece suit with a Charvet tie. Your style and your outfit should blend your style with that of your client and even the properties you are going to show. Because details matter how you appear will affect your buyer’s perception of you and the service you provide.
If you are showing beach cottages in Manhattan Beach your outfit will likely be different than if you are showing office space to a group of architects in downtown Los Angeles.
Be smart about your style and understand that how you visually present yourself will affect how your client perceives you.
Getting out of a clean car as a Realtor doesn’t hurt either.
3. Come prepared
Pulling property profiles and running comps isn’t the most exciting part of the job of being a Realtor. But remember that showing up with data in hand is one of the best things you can do to demonstrate your preparedness.
Being able to explain to your buyer why the deal is good and showing them data and comps will increase your credibility make you more trustworthy as an agent. Preparation is key whether you are meeting with a buyer client or preparing for a listing presentation to a seller.
Inevitably there will be something that goes sideways while you are in escrow - the home inspection might show more work than the buyer is mentally prepared to do or an appraisal can come in low. The more of an expert you seem to your buyer the more likely they are to take your advice.
Being perceived as an expert isn’t something that just happens. It’s a series of experiences that your client has with you that will build trust. Preparation is a critical step in building that relationship.
4. Put your phone away and appear interested
If you aren’t sure- yes it is 100 percent rude to swipe through your phone instead of being fully present with your prospect. It feels weird that I have to remind folks of this, but I have seen this time and time again in personal and business settings.
Constantly being on your phone makes your client feel unvalued - and those feelings never make for a great start for a relationship.
I get it though - you’re worried about that other escrow that is falling apart or you want to check TMZ to see if Kim Kardashian really got married again, but resist the temptation.
If you must have your phone out, the least you can do is turn the ringer off and only look at it during natural breaks in conversation.
5. Offer a firm handshake
If we can agree that COVID is over we can get to the importance of a firm handshake the first time you meet a client. The truth is that a good handshake helps to set the tone of your confidence and maybe even how trustworthy you are.
A firm handshake coupled with a smile and solid eye contact (not in a creepy way) can impart a strong first impression with your buyer. This type of introduction can help your image and set a solid foundation.
A strong and warm handshake also can subconsciously show your willingness to compromise and reach a real win-win for you and your buyer.
6. Remember to smile
Like a magnet, we are drawn to people who smile. We are also polarized and repelled by people that have negative facial expressions like frowns and grimaces.
Of course, smiling is seen as attractive and even makes folks assume you embody more positive personality traits.
Smiling more often can also have an ancillary effect of making you look youthful because studies show that the muscles we use to smile lift the face thereby making a person appear younger. I’m not suggesting that smiling is a natural form of botox but I might not be too far off. Smiling helps you look younger and psychologically makes us all feel just a little bit better.
So if you want to look more confident, youthful and give off a positive vibe try smiling a little more consciously and little more often. It might help you win over that real estate client, make you seem more relatable and even more approachable. You might even find that you get a little further along in life.
In the end - smiling suggests success.
7. Ask questions to show you are interested
I have spoken to some real estate agents who say that they don’t feel comfortable asking too many questions of a new buyer because they don’t want to appear too pushy or nosy. Some agents I have spoken with say they don’t even ask about buyer financing on the first meeting.
While these probing questions might seem a little awkward we have to ask these questions just like a doctor would to properly diagnose a patient. In the real estate world questions about financing, buyer needs and wants and timelines are critical.
I know if you have taken our real estate school online you’ve learned about the importance of asking questions of your client to better understand their needs. We talk a lot about this in our Real Estate Practice course.
It is said that the best real estate agents and salespeople keep asking questions until there are no more answers. Also keep in mind that the more questions you ask, the more emotional intelligence you build and the deeper your relationship with your client becomes.
Final thoughts
While many of the above list might be considered common sense, they are all important reminders to be present and focus on the needs of your client.
As always if you are looking to get your real estate license, we would love to talk to you! Call us at 888-768-5285!
TLDR:
1. Arrive early at the property.
2. Dress the part and groom yourself properly.
3. Come prepared.
4. Put your phone away and appear interested.
5. Offer a firm handshake.
6. Remember to smile!
7. Ask questions to show that you are interested.
Love,
Kartik
|
Some of our readers might be in a position where they are looking to build a real estate team or even start their own brokerage. Clearly if you are looking to grow your team, you have transcended
Some of our readers might be in a position where they are looking to build a real estate team or even start their own brokerage. Clearly if you are looking to grow your team, you have transcended simple searches like trying to find find the right real estate school and you are looking to be a more intentional leader.
Having trained tens of thousands of new real estate professionals I have a pretty good handle on what new agents want and how to put together a recruiting plan. I put together a list of value propositions that team leaders, managers and brokers should consider to help in their recruiting effort.
Requirement 1: Structured training scheduleRequirement
The importance of a structured training calendar for new recruits is difficult to overstate. It’s no secret that new real estate sales professionals have a deep desire to be trained properly. Without a written training program candidates don’t have the confidence that they are really going to get the training that they are so desperately in search of.
Beyond the pre-license real estate school curriculum, any good post-license training program should cover two broad aspects of the business.
First - Training on sales and marketing focused on helping the new agent understand how to acquire leads and ultimately close them. Your new hires want to know how to brand themselves to their friends, family and the local marketplace will help ensure their success.
Second - Training on contracts, new laws and procedures governing the day-to-day aspects of the business are also key to getting your new agents the skills they need to go out and compete in a highly competitive real estate market.
In our pre-license real estate course, we recommend that all our students ask potential brokers for a copy of the written training calendar the broker has. We advise them that if the broker does not have a written training calendar with scheduled topics and times the training program probably doesn't exist.
Think back to when you first started your real estate career. If someone simply handed you a desk and a phone and said “go to work” you would naturally feel frustrated and lost and probably eventually quit the business.
A major reason why the majority of newer agents don't end up making it past their first two years is because they get involved with brokers who don’t take training their agents seriously.
Requirement 2: Agent marketing plan and lead generation strategies
You should know that many new agents are going to rely on their broker for a marketing roadmap. Whether you as the broker decide to actually subsidize this marketing is entirely up to you but know that your agent is going to look to you for guidance.
Offering ideas for social media like video topic suggestions or even access to a camera and some lights within your brokerage will scream “value” for new agents. A marketing set-up like this can also help you attract mid-level and experienced realtors to your firm.
Too many real estate agents these days either don't know how to market themselves or are using very generic ideas found all over the Internet. Originality is important.
Showing your new agents that you have ideas for them to market themselves is a real value add.
Requirement 3: Leads + accountability
Few things will entice new agents to come work with your team like the promise of qualified leads. Some brokers and teams pay for Internet leads and others do a lot of direct mail and exploit other marketing channels to attempt to secure leads into the company. These leads can then be distributed to members of the team.
New agents wonder if they can perform well in this business and also strategize around how they're going to do it.
Common questions like “Am I going to be able to get leads?” “Am I going to be able to close those leads?” “How long will it take until I get my first paycheck?” wear on the mind of the new agent.
Some of this apprehension can be alleviated by providing leads to the new real estate licensee. The decision of how many leads you give the sales staff and your budget is a very personal decision - but I can promise you that providing qualified leads to your new sales staff is a very powerful recruiting tool.
Requirement 4: Transaction coordination
There are two schools of thought regarding the use of a transaction coordinator.
Thought #1: Real estate agents should handle all the paperwork on their own
Thought #2: Real estate agents should always delegate out the paperwork to a transaction coordinator.
I recorded a YouTube video about this very topic.
In my opinion, a new real estate agent should handle the paperwork with the supervision of their broker or manager for the first couple of deals, and then slowly start to wean off to a transaction coordinator as they grow more mature in their career. But the new licensee has to be able to at least understand the documentation, know where things go and be able to run a file on their own if needed.
With all that said, transaction coordination is a perk that many real estate offices offer. Being able to tell a new agent that they have support during an escrow is a recruitment plus.
New agents are often intimidated by the volume of documents involved in a typical real estate transaction and a good TC is a nice backstop.
Requirement #5: Available management
As a leader, it’s important to be aware that you must strike a delicate balance between your desire to recruit new agents to your brokerage with your bandwidth to be able to answer their questions and provide needed guidance. Rest assured, there will be an agent of yours that will call you or one of your senior managers on a Friday night at 7 PM because a buyer wants to write an offer and they have a question. Are you or a member of your management team going to be available to take this call?
The truth of the matter is, real estate can be a “nights and evenings” type of business and undoubtedly newer agents are going to have questions. Clients want to see homes on weekends and after working hours and consequently your agents are going to be there to assist them. The big question for you is whether or not you are going to be there as a manager or leader to help them in the event they have a problem?
In terms of retention, if you start missing a bunch of these late night or weekend calls or are non-responsive, it's likely that your agents may end up leaving you for the promise of more available management.
While this might be less than ideal it is the harsh reality of the residential real estate business.
Hope that these strategies will help spark some ideas in your own mind about what it takes to recruit and retain a sales team.
As always, if you are interested in taking real estate license courses or have a new member of your team that needs to get licensed call us at 888 768 5285.
Love,
Kartik
|
Get ready for a little bit of basic math as we define the GRM in real estate investing and compare it to the capitalization rate.
Both the GRM and capitalization rate (also known as the “cap
Get ready for a little bit of basic math as we define the GRM in real estate investing and compare it to the capitalization rate.
Both the GRM and capitalization rate (also known as the “cap rate”) are important metrics for investors to consider when looking at an investment property.
If you are interested in real estate investing this will be a good read for you. I’m guessing that most readers who are interested in getting their real estate license have at least toyed around with the idea of investing in real estate.
The gross rent multiplier represents the relationship between the gross income that a property produces and its potential purchase price or value. It is a simple back-of-the-envelope way to represent the multiple of the gross income relative to the property’s purchase price - the GRM is not a measurement of time (more on that later).
As a general rule, the higher the GRM the more pricey the property is relative to the income. The lower the GRM the more of a “value” investment the property might be. Investors looking for the most “bang-for-their-buck” might seek out properties with lower GRMs as the multiple of gross income to the amount invested is lower.
Examples of the GRM
As an extreme example, consider the property below.
Purchase price = $100,000
Gross yearly income = $100,000
In the above case, the GRM would be 1x. The purchase price of this property equals the gross rent collected. This is an impossible and extreme example but it illustrates just how good of a deal this would be if it were true. Imagine a property that rents for $100,000 per year (or about $8,333 per month) that you could buy for only $100,000. This would be such a good deal that you would have to get in line and fight hundreds of other investors for it.
More likely, is that if a property rents for $100,000 per year that it would cost something like $2,000,000 or 20x the gross rent collected.
Again, lower gross rent multipliers can generally represent better value purchases for investors and higher gross rent multipliers mean that the investor is paying more for every dollar of rent collected.
More Realistic Examples of GRM
Property 1:
Purchase price $2,500,000
Gross annual income of $50,000
$2,500,000 / $50,000 = The purchase price is 50x the gross rent collected.
Property 2:
Purchase price $1,750,000
Gross annual income of $75,000
$1,750,000 / $75,000 = The purchase price is 23.3x the gross rent collected.
Drawbacks to the GRM
There are some drawbacks to using the gross rent multiplier method as the only way to value property. Because only the gross rent is considered expenses are not factored into this equation. This is a key distinction between the gross rent multiplier compared to the capitalization rate of a property.
Unlike the GRM, the cap rate does consider expenses like property taxes, insurance, maintenance and management to name a few to calculate net operating income. The GRM merely looks at the total rent collected relative to the gross income of the property.
Investors may look at both the gross rent multiplier and the capitalization rate to determine whether or not a property is a good investment and compare it with other properties the investor might be considering.
However, rarely will an investor only consider the GRM.
What is the difference between the GRM and cap rate?
The Gross Rent Multiplier and the capitalization rate are two wildly different methods of valuing an investment property.
As I mentioned above, the GRM is a very simple way to find out how many times the gross rent collected will equal the value. The capitalization rate on the other hand is a way for an investor to determine the annual rate of return.
Formulaically, the capitalization rate is calculated by taking the net operating income that the property produces and dividing it into the purchase price.
If you are interested in learning more about the cap rate check out the first in a 3 part series here:
As a matter of practice, most investors will give more credence to the capitalization rate as opposed to the GRM.
Why the GRM isn’t a measure of the number of years it will take to pay off the property
There are several problems with assuming that the GRM is the number of years it will take to recoup your investment. The first fallacy with considering GRM as a measurement of time is that it does not take into account expenses. If a property produces $50,000 per year in gross rent, the GRM does consider property taxes, insurance, maintenance, management nor does it include any debt service that the investor might be paying to secure the investment.
The second issue with considering GRM as a measurement of time is that rent typically increases as time progresses. The gross rent multiplier only considers the current rent not any future rent increases.
For the above two reasons, it is inaccurate to assume that the GRM is some measurement of the “number of years” it would take to recoup your investment because it doesn't include expenses, nor does it include any future increases in rent. Both of these affect the amount of time it will take to get your investment back.
Does a buyer want a high GRM or a low GRM?
Generally, as a buyer, a low GRM is preferred. Lower GRMs generally represent better deals for buyers because the ratio of the gross income to the purchase price is lower.
Higher GRMs generally mean that the buyer of an investment property is paying more for every dollar in income that the property produces.
Closing thoughts
While not perfect, the gross rent multiplier is still a common method that investors used to analyze a particular property. Keep in mind that this is not the ground truth golden method, because expenses are not considered.
If you are considering signing up for real estate school we would love to have you!
Love,
Kartik
|
As some of our readers have moved beyond obtaining their real estate license and passing the real estate exam, I wanted to have some content that is a little more advanced for the reader.
After you
As some of our readers have moved beyond obtaining their real estate license and passing the real estate exam, I wanted to have some content that is a little more advanced for the reader.
After you complete real estate school, you’ll end up working at a brokerage and are likely going to become a member of a local Multiple Listing Service and a member of an Association of Realtors.
As you might already know, the MLS is the Multiple Listing Service and is a database of properties for sale and also contains history of homes that were for sale and those that have sold. It’s really an invaluable tool.
Generally, most MLS systems require that any status updates to a property be reported within two business days of the status change and will result in a status violation if not changed in a timely way.
Broadly, there are two types of MLS statuses:
1. On-market
2. OFF-market
On market statuses are used on properties that the seller is actively soliciting offers on.
The off market status represents those houses that either have sold or those that the seller is not actively trying to obtain offers on.
I have written the statuses below and have used abbreviations of the statuses also. For example, the “Coming Soon” status is abbreviated by a “C” and the “Active” status is abbreviated with an “A”.
On Market Statuses
COMING SOON (C) This status would be used by a real estate professional when they have a valid listing contract on a property and there isn’t an offer accepted as yet. For this status to be used, the listing firm must have specific instructions signed by the seller to submit the listing as “Coming Soon” and not “Active” - there’s a difference.
While under this status, the agent is permitted to market and advertise the property and must include language that the property is “Coming Soon” and must include the date the property’s status will become “Active”. A key point to remember with the “Coming Soon” status is that the property must not be available for showings while the status is such.
The fact that the property is not allowed to be shown to prospective buyers while in “Coming Soon” is a big deal. There may be agents - or buyers - that see the property online and want to see it in person to get a jump start on the market. This is not permitted while it is listed as “coming soon”.
ACTIVE (A) The Active status is much less complicated than the “Coming Soon” one. The “Active” status is used when a property is On-Market and when the agent has a valid listing contract signed by the seller and no offer has been accepted as yet.
ACTIVE UNDER CONTRACT (U) Like the simple “Active” status, “Active Under Contract” is also technically an On-Market status even though the property has an accepted offer on it.
This status is used when the seller has already accepted an offer but wants the property to remain as an on-market status to collect back-up offers.
This might be a prudent status if the sale is subject to court or other third party approval as those third party approvals can sometimes be hairy and take more time than the current buyer is willing to wait.
It's important to keep in mind that even though the property is still active under contract, the seller generally does not have a right to cancel an existing escrow if they get a higher offer later making this not truly an “on-the-market” scenario.
Off-Market Statuses
HOLD (H) Unlike Coming Soon, Active or Active Under Contract, the “Hold” status is an Off-Market status. The agent would tag the property this way when a valid listing contract is in effect but due to myriad reasons the seller doesn’t want any showings. Perhaps this is due to repairs being made to the property or even an illness of an occupant and the seller might not want to show the home on a temporary basis.
WITHDRAWN STATUS (W) If the listing agent on a home is going to use a “Withdrawn” status the agent is indicating that the property is moving to an Off-Market status.
If this contract is going to be used, the property will no longer be marketed through the MLS - despite the fact that a valid listing contract exists.
In other words, the listing is being withdrawn from the MLS but no necessarily withdrawn from the market as a whole. Beware - there is potential to incur a duplicate listing violation if the seller relists with another listing agent and a Withdrawn status is still in effect.
PENDING (P) This status is also an “off-market” one. The listing agent can switch the status to Pending once an offer has been accepted.
The main difference between Active Under Contract and Pending is that when the listing is “Pending” the Seller is no longer soliciting offers through the MLS whereas while “Active Under Contact” the seller continues to solicit offers.
CANCELED (K) Canceled is a unique status as only Brokers and Office Managers have the permission to change a listing’s status to Canceled. The reason for this is that the listing contract is taken in the name of the broker and not the individual agent and as such no individual salesperson has the unilateral ability to cancel a listing.
This is an off-market status once changed to Canceled.
It’s important to note that using Withdrawn instead of Canceled will result in a status violation if tagged incorrectly.
CLOSED (S) Congratulations! If you are switching the status of your listing to “Closed” it means that your transaction has successfully completed and title has transferred from the seller to the buyer. This status is an Off-Market one and a property should be tagged as such after escrow has closed.
If you had a lease listing this could also be used after a property has been successfully leased.
EXPIRED (X) Like the “CLOSED” status, the “Expired” status is an Off-Market status and should be used when the time period of the listing has lapsed and the listing contract has, as such, expired. Most of the MLS platforms will automatically set the status to “Expired” once the time period has elapsed. At the time of the listing being input, the agent is required to specify the Date of Expiration so the system knows when to change the status to “Expired”. If the property sells before the expiration date and the agent has changed the status to “CLOSED” the MLS will not trigger an EXPIRED status after CLOSED.
Closing thoughts:
Choosing the right real estate brokerage to work for should ensure that you are trained up properly and that there are no surprises when it comes to what these MLS statuses actually mean. Some of the above are obvious, but the intricacies of when to use each one can sometimes be confusing.
Hope this helps!
As always, if you are interested in signing up for real estate school reach out to us at 888 768 5285!
Love,
Kartik
|
Many of our readers are just starting their journey into the world of real estate and they want to start a real estate business from scratch. Most of them want to understand the steps of the journey they
Many of our readers are just starting their journey into the world of real estate and they want to start a real estate business from scratch. Most of them want to understand the steps of the journey they are about to embark on and see a path to success laid out for them.
Step 1: Enroll in real estate classes
The first step in your real estate journey is to enroll in a California state approved real estate school and complete three required courses. The courses required to sit for the real estate exam are:
Real Estate Principles
Real Estate Practice +
Elective course
While we offer a selection of elective courses, my recommendation is to choose Legal Aspects of Real Estate because it contains the most relevant information to prepare you for your California real estate exam. Additionally, if you wish to obtain your brokers license at some point,Legal Aspects of Real Estate is a required course so completing this course will serve these two purposes.
As far as options to complete the program go, we have two packages that can get this done for you. One is a package wherein a licensed instructor will walk you through all the material and the other is a self-study option where you read the material on your own.
My recommendation would be to choose the instructor-led Zoom calls mostly because there is so much material to digest and having a professional to ask questions of will make the experience easier and provide more of a roadmap for you.
Step 2: Pass the real estate exam and obtain a real estate license
Once you have enrolled and completed the three required courses the next step is to take and pass the state licensing exam in California. The best way to get ready for this exam is with our famous crash course software. Our crash course offers hundreds of videos explaining each answer choice and why the answer is correct and the others are wrong.
The sales license exam is given over 3 hours and it consists of 150 multiple-choice questions. Passing score is a 70% or better.
Pro tip: Don’t worry about getting 100% on this exam. The state doesn’t even release your score when you pass. The exam is strictly qualifying in nature and as long as you score at least a 70% you’ll be good to go.
Obtaining a real estate license also requires that you clear a criminal background check. This is done through a process called Live Scan. This Live Scan is required even if you’ve gone through this process in the past for another license or purpose. For example, we have many students who are also notary publics or have other professional licenses and certifications that required that they be fingerprinted in the past. This doesn’t matter - you’ll have to go through the fingerprinting again.
Step 3: Choose a real estate broker to work for
If your aspiration is just to get a real estate license, you don't necessarily have to put that license with a broker. However, if you want to work and represent buyers and sellers, the real estate law requires that you find a broker to work for and hang your license with.
As you make the decision about where to work keep in mind that there are many things that determine whether you are working at the right firm.
Learn more about how to pick a broker here:
To a newer agent, the most important thing in deciding where to work should be the training program available and the culture around the office. For example, if your goal is to make a lot of money and help lots of clients, you'll want to make sure that you are in an environment where the broker encourages teamwork, camaraderie and a culture of training.
Step 4: Start working on your sales skills
One of the most underrated aspects of starting as a new real estate sales professional is the fact that people forget that the nature of this job is sales. The successful real estate agent will employ marketing strategies to get their name out there, be able to set an appointment and ultimately close for the contract.
Whether dealing with buyers or sellers there are objections that your client will inevitably throw at you. For example, buyers might want to wait until interest rates come down or prices cool off. Sellers will want to understand what your marketing plan is and may even ask you to cut your commission. Your ability to handle these objections with empathy and professionalism is key to your success.
The best real estate sales professionals continuously practice their skills, role-play, and work on their sales abilities each and every day.
Step 5: Solidify Your Marketing Plan
With over 400,000 real estate licensees in California it's important to be able to be found and recognized as an area expert. The only way to do this is through proper marketing as marketing is the lifeblood of any business. It’s no different when it comes to you as an individual real estate professional.
As a newer agent, the big question is, how are you going to be found? Joining a team can help in this effort because teams generally allocate marketing dollars to lead generation and they pass out these leads to members on their team.
It’s important to bear in mind that these leads come at a cost, however. Commission splits are often lower on a team, because not only do you have to pay the brokerage but you'll also have to pay a split to your team in return for generating those leads for you. Being able to ride the coattails of your team should mean that you don’t have to figure out your own marketing plan.
Whether or not you end up joining a team, I would still suggest doing community and sponsorship events, a lot of direct mail, and maybe even some good old fashioned doorknocking. Consider sponsoring the local chili cook off or the Little League team to get in front of residents in the community.
Remember that sales and marketing go hand-in-hand. Marketing will help you bring in the leads, while sales skills will help you close the leads that you do generate.
Don’t neglect social media. It’s important to be active on Instagram and Facebook and maybe even start your own YouTube channel. Social media is a great way for members of the community to get to know you and gives you the chance to show that you're an active local real estate professional.
Step 6: Continue to grow your career
I understand that reading that you should “grow your career” sounds cliche and I’m aware that this saying means different things to different people. In the context of being a real estate agent, growth could involve branching out into other aspects of real estate like property management or commercial real estate.
The concept of growing your career also involves attending continuous training on sales skills, marketing, social media strategies, or even technical training like new laws that affect the real estate community or updates to the purchase agreement.
Your goal should be to avoid stagnation and always continue to grow and learn. Real estate is an ever-changing industry and technological tools have changed the way the properties are purchased.
Given the fact that our clients are trusting us with what is likely their largest asset, we have a duty to make sure that we are learning all we can and that we are the best real estate agent possible.
I'm hoping the six steps I’ve outlined will help understand the arc of starting and growing a lucrative career in real estate. It can be an extremely rewarding career and I’m looking forward to helping you get started or continue to grow it.
If you are interested in learning more about starting a real estate career, call us at 888 768 5285 or send us a message on Instagram
Love,
Kartik
TLDR:
Here are the six steps to starting and growing your real estate career.
1. Enroll in real estate classes
2. Pass the real estate exam and obtain a real estate license
3. Choose a real estate broker to work for
4. Start working on your sales skills
5. Solidify your marketing plan
6. Continue to grow your career
|
As a real estate professional, it’s hard to overstate the importance of having a competent loan officer on your team. Since most real estate purchases involve financing, the person quarterbacking the
As a real estate professional, it’s hard to overstate the importance of having a competent loan officer on your team. Since most real estate purchases involve financing, the person quarterbacking the buyer’s loan can make or break the purchase of the property - and ultimately affect whether or not you get your commission.
Remember - real estate agents don’t get paid for opening escrows, the only thing that matters is closing them.
As a student in our real estate license course, assembling a great team consisting of a reliable escrow officer, title representative and a mortgage professional might seem completely disconnected from your pre license studies or real estate crash course but it’s an important thing to consider nonetheless. This way, once you do obtain your real estate license you can hit the ground running.
So who do you choose as your go-to lender? I made a quick list of some of the things you’ll want to consider for as you choose a lender for your team:
Reliable Pre-approvals
In short, if a lender is going to write up a pre-approval letter for your buyer it’s important to be sure that the transaction is actually going to close. While there are no absolute guarantees, you and your buyer should at least have some confidence that the transaction is actually going to happen with no foreseeable problems regarding the loan.
Lots of lenders today will issue a “DU” approval as well. “DU” stands for
Desktop Underwriter with Fannie Mae Desktop Underwriter is an automated system for mortgage underwriting that determines if a loan meets approval requirements. Lots of listing agents will also want to see an “approved eligible” printout from DU to ensure that the buyer is well qualified.
As a real estate agent you need to have trust in your lender that their pre-approval letter carries weight. At the end of the day, if that pre-approval letter doesn’t translate into an actual funding it will leave the real estate agent and the buyer with a big problem on their hands as the buyer may end up losing their deposit and the real estate agent won’t get paid.
In the end a pre-approval that doesn’t blow up in your face is a bare minimum you should expect from a lender.
On-Time Closings
There’s nothing worse than a closing that is continuously delayed. It puts the buyer and the seller in precarious positions, forcing them to rearrange schedules, potentially delaying start dates at jobs, and generally giving all parties in the deal heartburn.
To be clear, on occasion there will be delays that are beyond the lender’s control. Perhaps the buyer’s employer is lagging on delivering a Verification of Employment. Maybe the IRS has delays related to a tax transcript. But either way, a lender that has the ability to foresee potential problems related to the loan early on and takes action based on these possible roadblocks is worth their weight in gold.
A Wide Variety of Loan Products
While it’s unfair to expect a lender to be an expert in all loan types, a lender should have the ability to do more than a home loan for a borrower with a 800 FICO score and twenty percent down.
It’s not unreasonable to expect a good lender to have a wide variety of loan offerings -- conventional loans, programs for first time home buyers, FHA loans, VA loans and more. A lender that has these basic arrows in their quiver will allow the Realtor to get more comfortable with the lender and solidify them as the go-to for new clients.
The Ability to Problem Solve
Most loans have some hair on them. Maybe a borrower has a gap in their employment history. Perhaps there is one 30 day late payment showing up on the credit report from 18 months ago that is bringing down their credit score. Either way, most real estate loans aren’t perfect and they require some level of critical thinking in order to close them on time and with minimal hassle.
Finding a loan originator that knows how to deal with small -and sometimes large - problems is helpful.
Superior Customer Service
Excellent customer service makes dealing with a lender less stressful. What defines good customer service? In the lending and real estate world, this means answering your phone and responding to email, communicating often and keeping tabs on the cadence of the loan. Whether the agent or borrower needs the answer to a simple question or requires serious assistance with a major issue, the lender should have customer service resources available. If the lender isn’t immediately available, the lender should make it clear who should be contacted in their absence.
Transparency
Above all else, borrowers today value integrity and transparency. Lenders who change terms at the last minute or mislead homebuyers are not to be trusted. Most real estate agents seek out lenders with proven histories of doing right by clients and respecting the financial burdens of those about to make the biggest purchases of their lives.
When a real estate agent recommends a lender to a buyer they are, in essence, vouching for them and there can be reputational risks to the agent if the lender doesn’t perform. Pairing motivated buyers with reliable lenders is an important job of a buyer’s agent. The right partnership will result in a smooth transaction that becomes a win for all parties.
Love,
Kartik
|
Starting a career in real estate and obtaining your real estate license opens up a new world of opportunity to you. There are so many different career paths that can be taken one you get your real estate
Starting a career in real estate and obtaining your real estate license opens up a new world of opportunity to you. There are so many different career paths that can be taken one you get your real estate license.
While it’s true that most of our students start their career selling houses, commercial real estate (CRE) is also an option for you in California. There are similarities between both areas of practice as they involve helping clients buy, sell and lease property so the desired outcome is the same. The high level difference is that the clients to whom you provide services are simply looking at a different class of property.
A common misconception is that the commercial side of the business is somehow more complicated than residential but in many ways the opposite is true. Commercial files can be thinner because there are many forms and documents that are required in residential real estate that don’t exist in the commercial world.
In any case, if commercial is an area of specialization you find appealing, here are some things to consider and things you’ll need to do:
1. Obtain a real estate license
Every real estate agent, regardless of whether they plan to work in residential or commercial real estate, must meet specific criteria and pass an exam. Individual states set their own criteria, so be sure to research your state’s process. Generally speaking, you must meet eligibility requirements, take approved pre-licensing real estate classes, and pass the real estate exam to obtain a license.
2. Find a firm specializing in CRE
After you choose a real estate school and receive your real estate salesperson license in California, you’ll have to place your license under a broker. Once you select a broker, the firm will dictate the type of real estate you can practice. If you want to pursue work in the CRE market you will have to find a broker that has the bandwidth and resources to conduct commercial sales and leasing. This is where it can get a little sticky because most residential firms don’t offer the tools needed to do commercial real estate and most commercial firms don’t offer the residential tools to sell a house.
3. Get trained up in commercial real estate
Finding someone to mentor and train you to practice commercial real estate is not as easy as finding a residential mentor. Part of why this is true is that there are far more residential real estate agents than there are commercial ones and residential firms are typically more eager to hire than commercial ones.
There are large commercial companies like CB Richard Ellis and Jones Lang LaSalle that might hire you with the right resume and connections, or you can explore working at a more boutique local shop in your area. The key thing here is to find solid training and a mentorship program that will allow you to start your commercial real estate career properly.
4. Identify an area of specialty
Many residential real estate agents specialize in certain types of homes, such as retirement communities, townhouses, luxury homes, or another niche. The commercial real estate industry tends to be even more specialized than this. The commercial real estate world tends to be broken down into five pillars:
Retail - Shopping centers
Industrial - Warehouse type uses
Office - Larger or single tenant office spaces
Raw land - Developer specialization
Apartments/multi family sales - 5 or more apartment units
While there can be some cross-over between these two functions there is still a high level of specialization.
5. Create a marketing strategy
Not unlike residential real estate, you need to have marketing and branding strategies in your toolbox. In addition to the types of properties you want to specialize in, your plan should include factors such as how to target clients, budgets, unique selling points, and strategies to client outreach.
These branding and marketing initiatives can include real estate postcard mailing, really cool property photos, or a social media strategy.
6. Explore other career possibilities
One of the benefits of working in the commercial real estate field is the ability to expand your practice. Besides an area of specialization, there are opportunities to participate in arranging financing for a property, performing property management, or (as mentioned above) negotiating tenant leases.
Just how wide of a net you can cast is going to be dependent on your brokerage and the services that they offer. If your brokerage doesn’t have a trust account and accounting systems created, you won’t be able to legally conduct property management so you’ll want to explain your aspirations to your broker and see if they have a system to support your endeavors.
A final thought
Because sales prices are generally higher on commercial properties than residential ones commercial agents often find they can earn larger commissions, which can equate to higher annual earnings. Many agents who specialize in this area find it to be a lucrative, exciting, and rewarding experience. It's important to know, success doesn't come overnight, it takes effort and experience. The large commercial deal sizes can have a negative impact on the commissioned real estate agent, however. If your entire earnings for the year are dependent on one large deal that ends up falling apart this can put you in a precarious position.
Nevertheless, if commercial real estate sounds appealing to you, you need to start with our real estate license course. Register today so we can help you prepare for a lucrative career in the commercial market.
Love,
Kartik
|
As a current or former student in our real estate license school you might remember my lecture from Real Estate Practice on listing presentations. I’ve placed a link to the YouTube video here if you
As a current or former student in our real estate license school you might remember my lecture from Real Estate Practice on listing presentations. I’ve placed a link to the YouTube video here if you need a refresher or haven’t seen it yet.
While this video isn’t intended to be a real estate crash course it’s still helpful to watch as you strategize around building your seller-focused real estate business. While buyer clients are important, a scaleable real estate business is built around controlling listing inventory and that means working with sellers.
In order to obtain listings, you must become proficient at generating seller leads and making killer presentations. The high-level goal is to demonstrate you are the best Realtor for the job of selling their home.
Because of the competitive nature of the market you’ll need to have a solid listing presentation. Sellers have options when it comes to listing their home as the number of real estate agents in an area far exceeds the inventory at any given time.
I’ve put together some tips as you work with and negotiate with a potential seller.
1. Introduce yourself
Every meeting starts with an introduction. Keep in mind first impressions matter—so be sure to get this part right—and remember to smile. Be prepared to share your credentials, previous successes, and any other pertinent information demonstrating why you’re the right person to list their home.
2. Know the property
Before you arrive, make sure you’ve researched everything possible about the property and dig beyond surface-level information like bedroom and bathroom count. If you haven’t done your homework, it’ll be obvious to the seller. Make sure that your Comparative Market Analysis (CMA) is detailed, up- to-date and visually appealing.
3. Walk through the selling process
Share a clear timeline with the seller so they know what to expect. Much of this timeline will depend upon the current state of the market, so be prepared to explain any circumstances that will impact the time it’ll take from listing to contract and from contract to close.
It’s also important to also explain to the seller that buyers will generally have the right to conduct an inspection on the home while it’s in escrow. This could cause the buyer to ask for repairs or even ask for a monetary credit as a result of the inspection.
Going through several possible scenarios with the seller will help minimize surprises during the listing.
4. Explain pricing strategy
The main thing that prevents a listing from selling is an inappropriate price. Proper pricing can overcome nearly everything. Does the property have an inferior location? Price it properly. Is there an odd smell or is the home in desperate need of landscaping? Fix the price.
The professional real estate agent should have relevant comps pulled, bearing in mind the condition of the subject property, condition and location of comps, and have the communication skills to convey this information to the seller.
Be prepared and ready to explain the recommended price to the seller. It’s not uncommon for the owner to believe that their home is worth more money than your data suggests, especially in the world of Zillow. I recorded a YouTube video about this here if you need a refresher.
5. Explain pre-listing steps
As a sales technique, speak to the seller during the presentation as though you already have the listing. Educate them on what will be occurring after they sign. Assume that they are going to be listing with you.
It’s important that the seller know that the property won’t hit the market the instant you leave the presentation as there are many things that still have to happen. Photography must be arranged, marketing collateral needs to be created and copy must be written, as examples.
Giving the sellers a heads up about the process will go a long way in establishing rapport, trust and an understanding of the cadence of the process.
6. Explain marketing strategy
If your marketing strategy consists of placing the property on the MLS with one iPhone photo - this isn’t going to be enough.
Since real estate commissions easily run $10,000+ on most homes in California, it’s important to explain to the seller what the plan to sell their home is and why our commissions are as they are.
A well thought out marketing plan will help justify your fee and aid the seller in understanding where their money goes.
Include any syndication, local marketing, and online publicizing—share techniques you use that make their home stand out in a competitive marketplace.
7. Remember to listen
You want to build a relationship of trust with clients. Talk to them about why they’re selling their home and ask what their future plans are understanding their needs will help you better serve them.
Also remember to include all family members in the discussion. Often times a real estate professional might only speak to one spouse, falsely believing that they are the decision maker when the decision to list might be one made jointly by both owners.
God gave us two ears and one mouth-remember to use them run that ratio.
8. Dress for success
Non-verbal cues like body language, grooming and how we dress can say a lot more than verbal communication can. There is little doubt that in a post-COVID world the business climate has moved away from suits, ties and pantyhose in favor of a more relaxed attire.
Depending on your market, how you dress might vary, but generally, business casual is probably appropriate.
One last tip: While the world is a bit more casual it’s better to be overdressed than underdressed so choose your wardrobe carefully.
9. Leverage the power of reviews
If you (or your company) have testimonials or online reviews from previous clients, bring them to the listing presentation.
People are more inclined to trust others who have experienced success with their agents.
These nine tips should help you put your best foot forward when making listing presentations.
It all starts with the right real estate school so choose wisely. I’d love to help you get started in our great business. Call me at 888 768 5285 and I or a member of my team can get you started.
Love,
Kartik
|
In today’s day and age if you don’t have a presence on social media you almost aren’t in business. Both current and potential customers want to feel connected to the brands and individuals they do
In today’s day and age if you don’t have a presence on social media you almost aren’t in business. Both current and potential customers want to feel connected to the brands and individuals they do business with - what better way to foster community than social media?
Promoting positive engagement is a must for a successful social media marketing strategy as a Realtor. Here are a few best practices to bear in mind:
Do’s of Social Media Posting
1. Try to combine posts and content across multiple platforms
Because of the sheer volume of social media posts, you will get lost in the noise of these platforms if you aren’t aggressive in your approach. Post often and recycle your posts across many social media platforms. You don’t need to be selective with the social media platforms you join - the goal is to be omnipresent.
Because busy real estate agents can’t always come up with content daily, consider scheduling a “content day” to write, film and edit a bunch of posts all at one time to be released over the next week or so.
A recent study done by the National Association of Realtors (NAR) found that 97% of Realtors chose Facebook as their preferred network. Facebook was followed by LinkedIn (59%), and Instagram (39%). Roughly one-third choose Twitter.
The lesson really is that content can be recycled and reposted over many platforms to get the widest reach possible.
I understand that your focus now is probably passing the real estate exam but planning out your content strategy while you are in real estate school is a good way to spend your time while also prepping for your exam.
2. Be active
There have been many studies about when and how often you should be putting content out there. Consider posting daily on at least one platform but be careful to not overly focus on self-promotion. Make sure that your content is relatable, and [as a Realtor] concentrate on being part of the online community on which you are posting.
Share posts, make comments, ask thoughtful questions, and give shoutouts to connections. Bottom line, be consistent in terms of activity and be responsive to others.
3. Use visibility strategies
When posting or sharing others' posts, be sure to use visibility strategies to gain traction. Good methods include using keywords with hashtags and tagging others in your network to give them call-outs.
Don’ts of real estate social media posting
Just one blunder can soil your professional standing, but a series of bad practices can really hurt your reputation if not careful. Here are the top don’ts when it comes to social media marketing for real estate agents.
1. Don't be overly promotional
This is #1 on the list of things NOT to do. Don’t try to oversell on your page, but use social media to share interesting news, customer interests, how-to’s, or relatable and interesting aspects of your personal life. By using your page strictly as a personal listing mechanism, people will disconnect from you or scroll through your posts without even looking. Always follow the 80/20 rule when using social media.
2. Use your own photos
Photos are a critical aspect of promoting properties. Ideally, you want to use your own photos to highlight listings you promote. (20% of your posts!) If using others' photos, be sure to first ask permission first and then publicly give credit to the photo’s owner.
3. Don’t post nonsense just to “post”
The trick to social media marketing success is balance. You need to find the “Goldilocks” level of posting. In other words, don’t post so frequently it becomes “noise”, or worse, social media’s version of unsolicited robocalls. Then again, you don’t want to post so infrequently that you become irrelevant. Focus on timely, thoughtful, and interesting posts, spread out. Determine what your audience likes and deliver it.
Savvy real estate agents know how to skillfully use social media to gain the trust of potential clients and maintain strong relationships with existing ones. Focus on good social media practices, avoid bad ones, and you’ll create a standout online presence.
Love,
Kartik
|
As you prepare for your real estate exam you’ll no doubt take at least one of our crash courses. These lectures and online tools can be done in the comfort of your own home and are based on individual
As you prepare for your real estate exam you’ll no doubt take at least one of our crash courses. These lectures and online tools can be done in the comfort of your own home and are based on individual self-study.
But what if you aren’t quite ready for a real estate crash course yet? What if you still need to complete Real Estate Principles, Real Estate Practice and the elective course in real estate school?
While we offer an amazing self-study program to help you finish the required courses there are some students who don’t do well left to their own devices. Does this sound like you?
What if you wanted a professional instructor who walked you through the course material, but didn’t need to drive to a physical location? A plus with gas prices being $7 a gallon.
To bridge the gap between total self-study and a physical real estate school we offer an amazing Zoom-based option.
I made a list of seven benefits of this program to prepare and qualify for the California real estate exam.
1. Eliminate procrastination
By coming to our scheduled Zoom calls, you’ll be less inclined to put off studying the material to qualify for the exam. When working independently, it’s easy to procrastinate, but when you make a commitment to meet with our study group you’ll be more motivated to press on and prepare so you’re ready to cover the material with other group members.
2. You’ll Probably Learn Faster
Members of study groups like those on our Zoom calls tend to learn faster than individuals who work independently. With any type of learning, it’s common to get stuck on a concept and have difficulty getting over the proverbial learning hump. With fellow students and an instructor to talk out concepts with, it can clarify some of the drier material.
3. Fill in Gaps in Notes
While you might prepare for class by watching some of the videos on our YouTube channel questions might arise as you watch the videos or read the textbooks.
Bring you questions to class and the instructor will answer them and encourage you to deep-dive into the course material. You can read the book on your own first, knowing that if you do have a question you’ll be able to ask it to the instructor and bounce ideas off other students in the process.
As a result, fewer gaps exist, when it’s time to take the real estate exam you’ll be better prepared.
4. Sharpen Your Study Skills
Everyone has their own techniques they use to study. However, working with a diverse group of other hopeful real estate agents empowers you to sharpen your own study skills. You’ll be able to learn from the strengths of others and maybe even share your own with them.
5. Break Up Monotony of Studying Alone
Studying alone is very monotonous and it could lead to feelings of isolation, frustration, and loneliness. On the other hand, working with a group pursuing the same goals not only adds socialization, it gives you something to look forward to nearly daily. Check out our schedule of Zoom classes here! <hyperlink to https://www.adhischools.com/schedule >
6. Hone Your People Skills
Working as a real estate agent means you’ll need to hone your people skills if you don’t already possess them. Success in our industry is based on your ability to work with other people. In study groups, you’ll encounter a variety of personalities and this will strengthen your ability to communicate with different people - a must in real estate!
7. Get a Jump on Networking
In a sense, a study group can be your first step into developing your professional network. In any industry, it’s not what you know, but who you know. Often, those on our Zoom calls have built a sense of camaraderie – the perfect seed to grow a professional network. Remember, not only can you connect with members of your group, but they can introduce you and vice versa to other people. Knowing you have friends in real estate upon passing your exam is a great feeling - It’s never too soon to build a professional network!
In order to pass California’s licensing exam you’ll need to gain a full understanding of the topics and concepts used in everyday real estate business. Joining our Zoom calls can put you on a solid path.
If you are interested in getting a free guest pass to check out one of our Zoom study sessions, click here and pick a day and time that works for you. I look forward to seeing you on an upcoming real estate Zoom call!
Love,
Kartik
|
Imagine you have completed all the required classes at our real estate school and now you are in the process of studying for your real estate exam. You’re probably taking our real estate crash course
Imagine you have completed all the required classes at our real estate school and now you are in the process of studying for your real estate exam. You’re probably taking our real estate crash course and are focused on prepping for the test.
You can probably tell from our hundreds of 5 star reviews that we know a thing or two about getting students to pass their real estate exam Still, I wanted to write a quick blog outlining a few things that can actually make it harder to pass your test so you know what not to do.
I’ve read some other articles from folks that incorrectly say that the real estate test is purposely and unnecessarily difficult. This isn’t really the case. If you understand the concepts and study you should have no problem passing.
I’ve read some other articles from folks that incorrectly say that the real estate test is purposely and unnecessarily difficult. This isn’t really the case. If you understand the concepts and study you should have no problem passing.
Consider the below list as you do:
Bad Prep Materials or a Bad Exam Prep Program
Call me a little biased, but I think that our real estate crash course is the best way to study for the real estate test out there. There are alternative products in the marketplace that aren’t California specific or that are written by people who have never even taken the real estate exam.
Obviously, the purpose of real estate exam prep material is to increase comprehension of the subject matter. Understanding that most people are on their mobile devices the majority of the time, our team developed an app for Android and iOS devices that is second to none. If you don’t have this yet, get it!
In the end, prep materials that do not play to your strengths decrease your chances of passing the real estate exam.
2. Too Much Study Time on What’s Not Important
One of the common mistakes real estate examinees make is focusing on items not likely to be on the exam. What too often occurs is that folks can get bogged down in the minutia and lose focus on critical concepts and facts. Some call this not “seeing the forest through the trees.”
I cringe when students send me articles about how to study for the “math portion” of the real estate test or 50 questions on the history of California. The truth is that there is very little actual arithmetic on the real estate test so spending 15 hours studying how to calculate capitalization rates isn’t going to do much good when there are other topics that appear far more frequently on the exam.
The good news about our crash course system is that questions are weighted in the same ratio that the actual real estate exam is. Our system is organized in a fashion that emphasizes primary concepts and focuses your study time in ways that actually matter.
The point is that investing too much of your limited time in minutia might not be a good decision.
3. Procrastination
Procrastinators of the World Unite! Tomorrow.”
People from all walks of life come up with seemingly good reasons to put off studying. These rank among the common reasons people procrastinate.
Feeling Overwhelmed
Lack of Urgency
Lack of Discipline
Don’t Like to Study
Can’t Choose a Starting Point
Giving in to these and other inclinations puts potential real estate professionals behind the knowledge curve. The sooner you crack open the materials and begin learning at a deeper level, the better your chances of passing the test.
I would recommend doing all the questions in the training mode of our real estate crash course at least twice before attempting a mock exam. Focusing on our training mode will expose you to all the questions in our system and eliminate any false confidence from a high score on a random mock exam.
4. Failing to Follow a Study Plan
Possessing an actionable study guide and plan cures some of the reasons to procrastinate. Of course, potential real estate professionals will need to leverage a study plan in a timely and orderly fashion. Common missteps involve jumping around and prioritizing topics you feel comfortable studying. Such practices are more a lack of discipline than an attempt to gain high-level knowledge.
It’s essential to use a study plan designed to build one concept on another. Like many other industries and disciplines, real estate knowledge tasks people with possessing a broad understanding of how things intersect. Rifling through study materials and jumping ahead typically results in fragmented ideas that don’t translate to sound professional skills.
Remember to set aside plenty of time before the test to ensure that you don’t feel overwhelmed - This leads me to my final point.
5. Test Anxiety and Last Minute Cramming
When I was in high school and college, I would love the adrenaline rush of studying for an exam at the absolute last minute and leaving with a good score. While exhilarating, it’s important to realize that the real estate exam should not be approached in this manner. There is far too much material to only study the night before. A study schedule at least two weeks before the test will help you stay focused and ensure you have ample time to review and understand the material.
It’s totally normal to feel a little on edge before the exam starts. Issues such as self-doubt or fear of failure can derail efforts to pass the real estate exam. The good news is that test anxiety does not have to stop you from beginning a new career.
TLDR:
Learn to Study Effectively
Establish a Study Routine
Practice Relaxation Strategies
Exercise, Eat Well, Hydrate, and Get Restful Sleep
Reach out to our office at 888 768 5285 or shoot us a message if you’re having a hard time passing the test.
Love
Kartik
|
One of my early real estate sales managers passed away a few years ago. When I think back on our interactions, one thing that stands out is his advice that an agent isn’t going to make money sitting
One of my early real estate sales managers passed away a few years ago. When I think back on our interactions, one thing that stands out is his advice that an agent isn’t going to make money sitting in the office behind a desk. You’ve got to get out there, pound the pavement and understand the local market.
Previewing property is something that should be a non-negotiable for a real estate professional, especially a newer licensee. Even if you are just starting in our real estate license course you can still play around on websites like realtor.com or other IDX sites to sort of “arm chair” quarterback and see what’s going on in the market.
Once you get your real estate license you’ll want to start physically entering as many properties as possible so you can keep a pulse on what’s happening in the marketplace. By the way, this shouldn’t seem like too much of a chore as most people that take our real estate classes have at least some interest in viewing homes and property for sale. I can’t tell you how many students I have spoken with that say “I love going to open houses! I want my license!” Now get out there and do it!
What is involved in previewing property?
Previewing property involves searching the MLS for homes and then scheduling times to physically walk the properties. As an additional prospecting method, some agents even knock on the doors of nearby homes to let neighbors know of the home that’s for sale. This can be particularly valuable in the event there isn’t a For Sale sign on the property you are previewing. When knocking, a good script could be to ask nearby owners if they know a friend, family member or co-worker that might be interested in the home for sale, it’s a great opportunity to “pick their new neighbor”. This is an easy and natural way of networking with nearby owners.
It’s free for you to do
One of the biggest benefits of previewing properties is the fact it’s an absolutely free method of gaining local market knowledge. The only investment is your time - and most new agents have more time than money. Savvy real estate agents who preview properties on a routine basis find they get more listings, obtain valuable market knowledge in the areas they work in and grow their businesses faster.
You can obtain valuable knowledge about the market
When you follow the strategy of previewing property you will gain a stronger understanding of the local inventory. This will empower you to rapidly identify properties for interested buyers. For instance, knowing a geographical area intimately means you’ll be armed with the ability to quickly answer questions clients have about inventory in the area. This boosts your professional reputation and people will start to see you as an expert.
Agents who have previewed properties may also have earned access to unpublished or not widely publicized information. Additionally you’ll learn what homes are on the market and the routine of previewing property will force you to dig into the local inventory daily.
You’ll have the ability to generate more leads
Physically going out to look at homes in a specific market means you’re also actively meeting people and expanding your professional network. While you could just view Matterport tours from your home or office there really isn’ta substitute to getting out in the field and touching the inventory. An added bonus is that you never know who you’ll meet that wants to hire you.
Buyers will be impressed with your proactive approach to understanding the market and know you’ll be equipped to help them find their dream home.
Sellers will appreciate that you have your pulse on the market and are more inclined to list with you because they’ll have faith you can help them present a solid marketing strategy.
Agents may also find as they preview homes, they stumble across properties not listed on the MLS, such as pocket listings, FSBOs, expired listings, and owners who want to sell but temporarily removed their homes from the market.
Networking is an important activity for any industry but has a special place in a direct sales business like real estate.
You gain information to have a powerful listing presentation
When you are on a listing presentation, rest assured that the seller is looking to hire an agent who knows the neighborhood, knows the street and knows their home. Previewing 3-5 properties daily will aid in your listing presentations because you’ll be able to demonstrate to your seller that you intimately know the market having seen all the inventory in the local marketplace. This is a non-negotiable as you don’t want to be seen as an agent who knows less than the client.
The net-net bottom line is that previewing properties will give you a reason to get out of the office – you just never know where it’ll bring you or what clients you’ll land next.
Remember what that sales manager told me so long ago - the money in real estate isn’t made sitting in the office.
Love,
Kartik
|
The U.S. real estate market changed significantly during 2020 and 2021 during the COVID-19 pandemic. The most obvious change is that many owners fled crowded cities to suburban and even rural areas fueled
The U.S. real estate market changed significantly during 2020 and 2021 during the COVID-19 pandemic. The most obvious change is that many owners fled crowded cities to suburban and even rural areas fueled by the possibility of remote work.
A consequence of this was that home inventory was tight and prices soared. Buyers who were lucky enough to purchase and obtain financing in 2020 or 2021 enjoyed ultra low rates on their home loans. Many are wondering if the 2022 market will be tumultuous or if things will normalize.
The following are five housing trends to keep an eye on this year.
1. Housing inventory will increase
Realtor.com® predicts housing inventory will see a 6.6% increase in 2022, which is good news for everyone. More sellers are comfortable putting their homes on the market, and they’ll still enjoy a market that is favorable to them. However, it’ll be competitive since first-time homebuyer percentages are expected to outpace any recovery in inventory that occurs this year. Buyers will have more home options to choose from as more sellers list homes and new construction continues to be on the uptick.
Homes will still continue to sell quickly, and sellers will definitely retain the market advantage. Although, experts both concede and caution there may be levels of uncertainty ahead in 2022 and beyond.
2. Mortgage rates will climb dramatically
Throughout 2020 and 2021, the U.S. experienced breaking-record mortgage interest rates, with an all-time low for a 30-year fixed mortgage occurring in January 2021 at 2.65%. This situation is slowly correcting itself, and rising inflation and consumer spending are contributing to the recent boost in interest rates.
While rates are still lower than previous years, early in 2022, experts predict interest rates will continue to inch back up throughout the year and with inflation rising at a record rate we may see rates get into the 6%+ range by summer of 2022.
3. Home prices will stabilize or decline
As more housing inventory comes on the market and interest rates rise downward pressure on prices is likely. The best properties based on price and condition will continue to see bidding wars, but these might be more isolated.
As price appreciation finally slows down, this will result in some level of home prices cooling.
4. Demand for suburbia continues
The COVID-19 pandemic sent everyone into isolation as people fled from city apartments and townhomes into the suburbs to buy homes, enabling them to have more space to work and play. As levels of normalcy returned in 2021, urban living has become more popular again, but the suburbs are still taking the real estate market by storm.
Realtor.com predicts urban areas will “continue to be pricier and faster-paced,” but people moving to the suburbs will receive “better bang for the buck,” especially since the housing inventory is creeping back up. Many Americans will continue to work remotely so this will play a significant role in their housing decisions – and many of them want the amenities and lifestyle suburban areas offer.
4. Demand for suburbia continues
The COVID-19 pandemic sent everyone into isolation as people fled from city apartments and townhomes into the suburbs to buy homes, enabling them to have more space to work and play. As levels of normalcy crept back in in 2021, urban living has become more popular again, but the suburbs are still taking the real estate market by storm.
5. Technology’s role in the market will increase
Whether you are taking our real estate courses by Zoom or self study, you already know that technology plays a significant role in the real estate market. Don’t expect this to slow down as tech-savvy millennial buyers dominate the buyer pool and the older members of Gen Z are right behind them. These two generations are highly drawn to tech and have come to expect it in most areas of life.
Today’s buyers expect the ability to hop online, increasingly doing so from their mobile devices, to find, view, and purchase homes. Using features such as 3-D virtual tours, interactive floor plans, and other types of touchless services will continue to be the norm. I wrote an article about the use of Matterport cameras when COVID first hit, feel free to check it out.
Additionally, technology will play an important role in other aspects of the home buying process, such as obtaining mortgage approvals and home appraisals through digital channels. Agents are also getting into the action with digital transaction management tools – the market can also expect to see more data analytics and artificial intelligence integration.
The year 2022 will continue to be a hot market like the previous two years but appears to be on the road to normalization. Bottom line, the U.S. real estate market should essentially expect a whirlwind year with some hiccups. If so, this will be due to the pandemic continuing to play a role in market demands, along with supply chain and labor disruptions for new housing.
An important thing to remember is that whether the market is appreciating, declining or staying flat, real estate agents are simply in the middle of a transaction. Up or down we still get paid.
Love,
Kartik
|
To say that the world has changed over the last few years is certainly something of an understatement. As the pandemic began to take hold in March of 2020, suddenly in-person gatherings of any kind
To say that the world has changed over the last few years is certainly something of an understatement. As the pandemic began to take hold in March of 2020, suddenly in-person gatherings of any kind were all but impossible. In the real estate world, this created a bit of chaos as agents and clients wondered how to show a prospective buyer a house when multiple people can't be in the same place at the same time? Moreover, how do real estate agents operate in a world where everyone is suddenly doing business remotely?
COVID created a perfect storm for the real estate business and allowed for some pretty powerful “virtual” or “cloud” brokerages to come to prominence. Such companies mostly exist online - meaning that there are very few, if any, physical office locations to speak of.
Realtors who join such companies typically feel that having traditional office space doesn’t really matter because the nature of our work doesn’t mean we sit at a desk all day. These online companies also often offer higher commission splits to their agents because of lower overhead. The firm doesn’t have to spend money renting an office space or buy furniture, office equipment or pay utilities.
Some seasoned agents who already have an extensive book of business are attracted to this virtual model as the more experienced salesperson doesn’t need as much basic training and handholding as those who are new to the field.
This type of brokerage does have it’s downsides, however. In a traditional real estate firm, agents have the option of reporting to a location in the morning and leveraging support staff and have the ability to meet with clients and more. Larger real estate firms that have a significant brick and mortar presence are often perceived to have more credibility than a strictly online operation. Local buyers and sellers are often assured by a large real estate firm sign on the side of a building in their hometown that the company - and the agent - are there to stay. If you are wondering how to choose a real estate office to work at consider watching this video.
Another big downside of the “virtual” brokerage can be a lack of community. While some real estate agents are comfortable with the idea of working without the distractions of the workplace, some might find it difficult. Agents are often social beings (arguably even more than the average person) and long hours with only a computer screen and a phone can be painful for some salespeople. Building a career in real estate is hard enough and without a sense of community the journey can be that much more difficult.
Then again a virtual real estate firm might make sense when you consider what the duties of a real estate agent actually are. Most of the actual money making activities in the real estate industry are not performed sitting at a desk. When an agent has a client, they are either at the client’s home advising them on marketing strategy, going over offers, or touring a home or building.
Whether you decide to join a brick and mortar traditional real estate firm or go with a virtual one, just make sure that you will have support from the management team so that in the event you have questions or need marketing or other support you have resources.
Either way, your journey starts with real estate license courses and remember - even though we are a school that operates online, there are real people manning our phones. =)
Call us at (888) 768-5285 if you are ready to get started!
Love,
Kartik
|
It's certainly possible for someone to buy or sell a home on their own without a real estate license. But if they wish to do so in a professional capacity and sell homes for others, they need a
It's certainly possible for someone to buy or sell a home on their own without a real estate license. But if they wish to do so in a professional capacity and sell homes for others, they need a real estate license. More than that, they'll need a license in each state that they plan to operate in. All state's requirements are different, it's important to research as much as possible before starting a career in the field.
But a lot of people don't realize that getting your real estate license doesn't just mean that you're destined to become a realtor. In fact, there are a wide range of different jobs that require a real estate license - all of which are more than worth exploring.
Real Estate Agents
Obviously, the prime example of a job that requires a real estate license is that of the real estate agent Here, a seasoned professional will work with prospective buyers and sellers on a transaction that hopefully meets the needs of both parties.
From the point-of-view of the seller, a real estate agent will try to get them the best price for their home that the market will allow. From the perspective of the buyer, they'll try to find anew home that meets as many of their needs as possible - all at the best price they can. Regardless, the industry is heavily regulated and there are a lot of rules that must be followed - which is why a real estate license is essential.
Brokers
Many people assume that real estate agents and brokers are essentially the same position - but that is incorrect. In the real estate industry, a real estate agent is simply someone who has been licensed to sell property in whatever state they live in. A broker, on the other hand, is someone who has gotten additional licensing and is now able to start their own real estate firm. This means that they're able to hire additional agents and have people working underneath them, thus building a business in a particular area.
Real Estate Paralegals
There are many law firms that specialize specifically in real estate and that is where real estate paralegals come into play. A paralegal is an invaluable part of a firm's support staff in that they help make sure that things are running as efficiently as possible. They provide support to lawyers working on various transactions and, in a larger sense, make sure that documents and other important data are always in the hands of the people who need it the most. In addition to offering help with the legalities of various transactions, they also need to know as much as possible about regulatory compliance in the various fields of real estate as well.
Property Managers
Property managers are those individuals who have been hired by a property owner to oversee the day-to-day operations of said dwelling. It could be the property owner themselves, but this isn't always the case.
In an apartment complex, for example, a property manager would be responsible for all back office tasks like collecting rent and handling maintenance requests. In the context of a private dwelling that someone is renting out, the job may simply come down to handling tenant needs as they come up. With regard to single family homes, it's not uncommon for a property manager to oversee multiple dwellings at the same time - making a real estate license (and the credibility that comes with it) crucial given the fact that it is an income-based property.
Commercial Property Managers
Commercial property managers are those professionals who are tasked with overseeing any non-residential property. This means places like office buildings, retail locations, storage facilities and more. Depending on who they are employed by it would not be uncommon to see them handle shopping centers as well. Commercial property managers will need to be adept at tracking rental income rates, total monthly expenses and other important jobs. They'll also be responsible for handling work orders and general property maintenance and will need to make sure that their properties are following all local and federal regulations.
Foreclosure Specialists
Finally, we arrive at foreclosure specialists - those professionals who deal with foreclosure duties in particular. Their job is a complicated one, as the foreclosure process can often take a great deal of time. They'll need to carefully manage various cases and, for a deal to be closed successfully, they'll have to make sure that it meets all federal, state, and local requirements.
Foreclosure specialists will both work with homeowners who may need to restructure their mortgage as well as investors who wish to sell a recently foreclosed upon property. Regardless, they'll need a real estate license in order to do so.
If you'd like to find out more information about the types of jobs that require a real estate license or if you just have any additional questions about how to get your real estate license, we are happy to help. Call us today (888) 768-5285..
|
The real estate industry is highly regulated, with each state granting licenses to individuals who complete specific studies and pass certification exams. Like any other type of license, a real estate
The real estate industry is highly regulated, with each state granting licenses to individuals who complete specific studies and pass certification exams. Like any other type of license, a real estate license is a privilege and can be taken away if an agent fails to abide by regulations set on the federal level or by their state.
This means individuals who act unprofessionally and, as a result, receive a suspension cannot perform any real estate function requiring a license. Below are 10 common activities agents should avoid lest they face the consequences associated with a license suspension.
1. Mishandling clients’ money
Real estate agents must always pay careful attention when handling a client’s money. Many agents who mishandle money don’t do so intentionally, but can still lead to a suspension (although stealing client money is a huge no-no obviously). In addition to losing a license, criminal charges could accompany the suspension. To avoid money mismanagement, agents should never use a personal account, always maintain accurate bank records, and ensure clients receive receipts for any transactions.
2. Failure to disclose
Agents are required to be transparent about any financial interests they have to all other parties involved in a potential real estate transaction. An example would be if the agent is the buyer, seller, or investor of a property and asks a family member to represent them in the transaction. This rule is put into place to avoid possible conflicts of interests, however, by being upfront and honest by issuing full disclosure of personal interests in transactions, agents can keep their licenses intact. Another example is if an agent convinces a seller to not disclose certain types of problems with a home to make it easier to sell.
3. Criminal conviction
Real estate agents convicted of crimes can potentially lose their licenses. How license losses are dealt with for criminal convictions will vary by state. The State of California is a no-nonsense state when it comes to prior or post-licensing criminal convictions. All agents must submit to a criminal background check and fingerprinting which stays on record. Individuals who receive their license and commit a crime, especially a felony, can find their license suspended. (The crime doesn’t have to be related to real estate.)
4. Mortgage fraud
Agents engaging in mortgage fraud are highly likely to lose their licenses. This scenario typically unfolds when a client isn’t approved for a mortgage and the agent decides to adjust figures or disclose false information to make the sale and tells the client they were approved. This is not just a license suspension activity, it’s a criminal offense..
5. Fail to cooperate with investigators
If a regulatory agency receives a complaint or other red flag during an audit related to a specific agent, they’ll follow up with an investigation. Agents who ignore the requests of regulatory agencies or otherwise act uncooperatively can find themselves in hot water, including a potential loss of a license.
6. Failure to meet licensing requirements
A common reason why agents lose their license is they get too busy to follow up on their continuing education (CE), which is a requirement in most instances (specifics are determined by individual states). This can be avoided by not leaving CE needed for licensing requirements to the last minute or skipping them.
7. Step across the line of other professionals
Good real estate agents know the boundaries of what is in their realm and what’s best left up to other professionals. For instance, an agent should never try to offer advice that is outside their area of expertise. Examples would be inspectors, attorneys, and appraisers—if questionsor concerns arise, they should always be routed to the right individual.
8. Confidentiality
Anything clients tell their agents should be assumed to be confidential. This includes occupation, marital status, family members’ names, or other personal details a client shares. For instance, if a real estate agent nets a huge sale for a celebrity, this cannot be disclosed publicly because it violates the privacy of the high-profile individual.
9. Violation of the Fair Housing Act
The Fair Housing Act was designed to prevent people being discriminated against when they looked to sell, buy, or rent property. This act prohibits discrimination in housing due to race, sex, color, national origin, religion, disability, or familial status. Violations of the Fair Housing Act are serious offenses and agents will lose their license.
10. Failure to supervise
Real estate brokers are responsible for any sales agents they work with and it’s their duty to ensure all agents comply with regulatory standards. To avoid failure to supervise, brokers can provide ongoing training, require regular check-ins, conduct license monitoring, and offer an open-door policy for agents.
These are 10 major reasons why real estate agents lose licenses. However, there are numerous other acts that lead to license suspensions. Real estate professionals are wise to thoroughly understand both federal and state rules to ensure they don’t inadvertently break them.
|
Real estate agents who are new to the game often face real fears and insecurities when it comes to hosting open houses. If you’re a new agent, you’re definitely not alone. However, by following some
Real estate agents who are new to the game often face real fears and insecurities when it comes to hosting open houses. If you’re a new agent, you’re definitely not alone. However, by following some best practices, you can gain confidence and get over the hurdle of being anxious about open houses. In the long-term, your new self-assurance will boost your ability to sell, have happier clients, keep yourself and your clients safe, and earn more commissions.
To help overcome your fear of hosting open houses and enjoying a successful event, try the following four tips.
1. Practice Talking to Strangers
Real estate agents aren’t unlike other people, they too often experience a fear of speaking in front of strangers. To overcome your fear of initiating conversations with strangers, try meeting new people outside of real estate and practice talking with them. Since they’re not a client or a professional you’re trying to do business with, the pressure will be off, and you can focus on having genuine conversations.
Once that fear is overcome, enlist a colleague or two to practice open-house conversations. Be willing to accept suggestions or constructive criticism and lean on their experience to strengthen yours. Before your first open house, practice a script in front of a mirror so you become more comfortable and confident with your words. Then, at least for your first few open houses, ask a partner to come with you to help smooth the path and offer guidance during the event.
2. Visit Other Open Houses
While your colleagues are likely going to be a massive help, nothing beats seeing a seasoned real estate agent in action at an open house. Ask other real estate agents you know if they wouldn’t mind you tagging along to watch them and learn their strategies. You can also attend open houses run by agents who you don’t know and ask them if you can please observe. A benefit here is you can ask them questions and learn how they answer—or you can simply observe what buyers want to know, learn the common questions homebuyers tend to have, and how experienced agents field their questions.
3. Use Good Strategies to Boost Open House Success
All agents, new and veterans, experience a level of fearfulness that no one will show up at their open house. Unfortunately, factors outside of your control, such as horrible or beautiful weather, can impact the number of interested people who attend an open house. To ensure a great turnout, try the following strategies to boost your open house success.
Place directional signs, the more the better. GPS the listing of the home you’re featuring and look for strategic street corners where you can post signs to drive more traffic.
Use social media to send out invites to your open house and post updates as the date gets closer.
Go old-school and walk through the neighborhood and leave invitations brochures at homes or ask local business owners if you can post a flyer advertising your open house.
Place balloons on signs and on the home’s mailbox.
Be sure to include open house dates in your Zillow and other online listings.
Offer free food – this almost always attracts neighbors, gawkers, or potential buyers. Even if visitors have no intention or interest of buying a home, others who are seeking a home and see lots of cars and people at a house will stop by to see what’s causing the buzz or simply to curb their feelings of FOMO.
You don’t even have to invest a ton of money in your marketing strategies. Flyers and signs can easily be made at a local printer or big-box stores, such as Kinko or Staples. For food, skip the caterers and throw a few hot dogs on the grill, buy food platters (e.g. cheese, vegetable, or fruit) at the local grocery, or bake some cookies—as a bonus that’ll make the home smell inviting.
4. Learn Strategies to Stay Safe
While an open house by nature invites you to interact with strangers in a potentially vacant home, many agents rightfully have a fear of what if someone with nefarious intentions approaches them. Always hold open houses in the daylight hours and make sure everyone in the office knows where the home you’re featuring is located. You can also plan to set designated times to check in with other agents by text/
To further increase your safety, never share too much personal information about yourself or your clients to prospective buyers—some may be there to case the house or seek information for identity theft or to commit other crimes. Practicing these and other safety practices will help give you peace of mind so you can focus on the task at hand—selling your listing.
Overcoming the fear of hosting open houses may seem like a tall order, but like anything else in life, it takes familiarity and practice. By using these in your strategies, you’ll be a pro in no time at all.
|
When investing in real estate, it’s important to know the various types and their function. As one of the most diverse industries in the world, many people considering putting money into this area
When investing in real estate, it’s important to know the various types and their function. As one of the most diverse industries in the world, many people considering putting money into this area may not be sure what specific types exist or how they function. Take a look at the 4 main types of real estate.
Residential Real Estate
This is real estate of any type that is used for residential needs. That includes the typical single family home but also other types of property. It is the largest component of the real estate market. Residential real estate is a large component of the investment market. Some examples of residential real estate include:
Single-family homes
Townhomes
Condominiums
Cooperatives (co-ops)
Duplex
Triplex
Fourplex
Mobile homes
Commercial Real Estate
Commercial real estate is any type of property that’s used for business purposes. Also known as CRE property, there are many forms. This type of real estate makes up about half as much of the U.S. market as residential. It is important and can be a valuable investment opportunity. Some examples ofcommercial real estate include:
Retail space including strip malls, indoor malls, restaurants, and other shops
Office space including office parks, medical centers, and office towers
Self-storage spaces
Parking lots and parking garages
Movie theaters
Grocery stores
Leisure and hospitality property
Apartment complexes and mobile home parks fall into commercial property as well, even though people live there. That’s because they are not owner-occupied.
Industrial Real Estate
This type of real estate is typically used for manufacturing and production across numerous industries. This is a working type of real estate because it involves more elaborate fixtures and equipment. Some types of industrial real estate include:
Manufacturing properties
Warehouses
Freezer and refrigerated storage buildings
Production facilities, including food processing locations
Power plants
Data processing locations, including data server locations
Research and development organizations
Land
When the term “land” is used in reference to real estate, it typically refers to vacant or underdeveloped property. It’s easy to see what land entails, but it includes a range of property types, including:
All types of undeveloped land
Recreational land, including areas used for fishing or hunting
Farms
Ranches
Forested areas and timberland
Orchards
Prior to their development, planned urban developments and subdivision properties also fall into this category.
Special Purpose
Some real estate is called special purpose. This type of real estate is typically any real estate that is used by the public. These properties may sometimes be purpose-built properties because they typically have a specific function. Some examples include:
Transit-related properties
Gas stations
Mixed-use projects that may mix residential with office space or retail
Senior living communities
Churches and other types of places of worship
Recreational facilities such as sports courts and golf courses
Schools
Student housing near schools
The more you know about the real estate market, the better you can make decisions about how to invest in it for yourself or for others.
|
The rental market in California has seen some significant changes as a result of the pandemic, the resulting jobs crisis, and changes to the economy as a whole. Large cities have seen some of the biggest
The rental market in California has seen some significant changes as a result of the pandemic, the resulting jobs crisis, and changes to the economy as a whole. Large cities have seen some of the biggest changes. As workers ended up furloughed or even with job loss after pandemic problems hit businesses hard, the trickle-down effect impacted the real estate markets too. Here are some thoughts on those impacts and what they might mean for the future.
Laid-Off Workers Leaving Multi-Family Units
Workers facing job losses or furloughs who live in big cities find themselves in a position where they need to leave their costly apartments. Without income, the rent becomes unmanageable. However, these job losses have extended longer than many people anticipated, and as such many of these apartments have been left vacant.
The result of these vacancies is rent falling in many major cities. Vacant apartments cost landlords money, and they are better served by lowering the rent to bring in tenants than leaving the apartments empty. As uncertainty about the economic future of the country and the state of California lingers, real estate experts do not anticipate seeing a change in this trend.
Fewer People Moving Out on Their Own
Another factor that is impacting the rental markets in large cities inCalifornia is the number of people choosing not to move out on their own. The economic uncertainty and job losses have led many people to choose not to form new rental households. Instead, they are choosing to stay with roommates or family longer because they do not have the money to pay rent for a new household. This trend is further driving down rental costs in these larger areas.
Suburban Areas Seeing Increases
While large cities are seeing decreased numbers of renters, those displaced tenants need to find somewhere to live. As a result, suburban areas are seeing an increase as people flee the high-cost cities in search of more affordable rentals. The multifamily market segment seems to be increasing in suburban communities or areas that have traditionally lower incomes. If the housing market starts to improve, these areas will likely see the growth first before people feel comfortable moving back into the city.
Changes May Last Several Years
How long will these effects last? Only time will tell, but a recent post in the L.A. Times indicates the pandemic’s effect on the California real estate markets may last through 2023. Investors and renters need to be prepared for long-term effects and changes as they navigate this new normal for the next few years.
If you are considering entering the market as a renter or an investor, or if you are currently part of the market, understanding these changes and shifts is important. Armed with the right knowledge, you can enter the markets confidently and make wise choices about your own real estate investments.
|
Single-family rental properties experienced more than 10 percent year-over-year increases during the last quarter of 2021. That exponential growth more than tripled the 3.2 percent seen in 2020. These
Single-family rental properties experienced more than 10 percent year-over-year increases during the last quarter of 2021. That exponential growth more than tripled the 3.2 percent seen in 2020. These and other factors indicate 2022 could be a banner year for single-family rentals, and now is an excellent time to invest in a property.
Understandably, many cash-flush people are hesitant to purchase single-family homes because they see splashy headlines about rising prices. It’s certainly true the value of residential properties advanced during 2021. Reports indicate the median cost of a home rose by more than 16 percent from 2020 to 2021.
Potential landlords may also want to consider data that shows those real estate investments saw values rise by 416 percent from 1980 to 2020. Considering single-family rental units represent a long-term investment in many portfolios, buying sooner rather than later appears to be the best approach. The following are other reasons savvy real estate investors are not sitting on their hands while others cash in on the single-family rental trend.
Stability: Buying stocks tends to be a more risky way to try to increase personal wealth. Real estate does not experience the volatility of the stock market. Property value dips few and far between. Even then, they consistently rebound, making single-family rentals a more secure long-term investment.
Inflation Proof: Fixed-rate mortgages do not suffer the whims of inflation. And just as that monthly premium remains static, real estate prices generally stay ahead of inflation.
Steady Revenue: Single-family rental incomes continue to rise year after year, making them a preferred choice among people who prefer economic stability. The country also continues to struggle with an annual inventory shortage. These factors lead more people to rent single-family homes and property owners continue to reap stability benefits.
Quality Renters: Multi-family properties and large apartment complexes too often struggle to find suitable renters. Issues such as damage, lack of adequate cleanliness, and upkeep failures cause property owners to spend money unnecessarily to make repairs and hire exterminators. Single-family home renters are more inclined to treat the residence as if it were their own.
Opportunities: Investors are not necessarily limited to buying single-family rentals in their immediate area. Buying real estate in places with notable return on investment has become a trending option. Screening potential renters and upkeep can be outsourced to a property management company and that expense can be rolled into the rent. The opportunities are boundless for people who want to generate passive income.
It’s also important for people who are just starting to dip their toes into real estate and other investment markets to consider a single-family rental through a different lens. Long-term thinkers sometimes purchase their last home first and rent it out. The idea is to buy a property for retirement or resale when leaving the workforce. Its growing equity can also be leveraged along the way to take advantage of financial opportunities.
Qualified borrowers have wide-reaching access to single-family rental property loans, and rates remain historically low. That may change as the Fed mulls the notion of raising interest rates. When considering all of the moving factors, it’s abundantly clear the time to buy a single-family rental property is right now.
|
As a real estate agent, your clients may ask you for tips in order to keep the home you just sold them safe. It's important to take safety seriously, and for many buyers this may mean more than
As a real estate agent, your clients may ask you for tips in order to keep the home you just sold them safe. It's important to take safety seriously, and for many buyers this may mean more than simply locking doors at night.
There are some best practices around safety that should be top of mind as you help buyers with after sale service.
Recommend Your Clients Change All the Locks When They Move In
In all likelihood, lots of people have touched the keys to the home before you closed escrow. From other agents, appraisers, termite companies and vendors you don't know who might have a current key. So for obvious reasons, buyers should change the locks right at the close or certainly before they move in and start remodeling.
While changing locks isn’t something that we necessarily teach in real estate school it is a basic thing that should be done.
Conceal Alarm System Wiring
Many clients elect to install an alarm system after the property closes. During the install it’s important to remind the buyers to hide all the wiring thereby greatly lowering the risk of someone cutting it to disable the alarm. Taking the time to hide wiring is much safer, even if it costs a little more for installation.
In all likelihood, if the buyer is using a professional installation company they will hide wires for the client but in the event the client buys a wired system on Amazon or something, they might need to be reminded to conceal them.
Landscape With Safety in Mind
Remind the buyer that when they landscape their new home make sure to keep entryways clear. Large bushes right up against the house, especially near the doors, are prime places for criminals to hide.
Tell Your Clients - Get To Know Neighbors
Neighbors tend to look out for properties in the neighborhood and while your buyer doesn’t have to become best friends with others in your neighborhood it's a good idea to be on (at least) speaking terms with as many of them as possible.
Light Up Any Dark Areas
If there are big pockets of darkness around the home it's generally worth the cost to put up some lights. Most people who break into homes and commit similar types of crimes do so when there's an easy opportunity for them. If the home is well lit criminals are less likely to see it as a good target.
Set a Safety Routine
It's a good idea for all of us to get in the habit of safety to properly protect our home and its contents. Simple steps like a nightly check of all the doors and windows, along with setting a schedule for checking things like smoke alarms, outside lights, and the alarm system.
By following some simple safety precautions your clients can feel secure in your space, reduce theft and get more enjoyment out of their new home.
Love,
Kartik
|
The one constant in home decor is that tastes are always changing. The styles that turned heads just a few years ago are now starting to roll eyes. What can you do to keep your home looking modern?
The one constant in home decor is that tastes are always changing. The styles that turned heads just a few years ago are now starting to roll eyes. What can you do to keep your home looking modern? Here’s a preview of what you’ll see in the coming year.
Patterned Hardwood Floors
Your home is more than just a place to dwell - it’s a way for you to express yourself. And while anyone can get a carpet, having a patterned hardwood floor is a true testament to your unique personality. A shape or pattern on your floor breaks up the monotony of plain flooring while adding an individual flourish that makes your floor all your own.
Taking a minimalist approach can also be highly effective. Instead of making a big shape, you can sporadically accent your floor with wood of a different shade. Think of a basketball court and the different pieces of wood you might see on the floor. It’s a neat way to approach the traditional yet trendy hardwood floor.
Black Accents
An overly black color scheme can appear a bit drab or even morbid. But using black accents to add to a bright color scheme is highly effective. The key is the idea of highlighting negative space -- in other words, the area surrounding objects in the room. If those items simply exist in a white room, they’re just there. A bit of black to accentuate your decor can break up the white, making the room appear bigger, fuller and more elegantly decorated. Of course, it’s easy to get carried away with accents of any kind, so start small and take a slow but steady approach toward getting your rooms to pop.
Natural Lighting
It’s well-known that the sun provides more than light -- it also provides a nice little boost of serotonin, which helps increase moods. Plus, natural light helps to save on lighting costs and reduces strain on the environment. Therefore, natural lighting is a natural fit in modern homes. Large windows and skylights are becoming more commonplace, enabling homeowners to save money while getting more exposure to the sun. It’s a win-win that benefits everyone, while also giving you a more fashionable home.
Light Colored Floors
With carpets less popular in modern times, your flooring matters more than ever. And a light colored floor can help to make your rooms look bigger and brighter. What’s more, light colored flooring pairs well with the patterns floors we discussed earlier, giving you something bold to go alongside a floor that’s easy on the eyes. Best of all, a light floor works in any type of house, from a sleek modern home to a more traditional cottage.
Versatile Spaces/Home Offices
With so many people working from home these days, an office is a must in any home. But what happens when you go back to work, especially if it’s not a full-time return to the office? You want a room that can function as an office, but can also be used in other ways. A room that’s an office now can also become a lounge, a display room, a guest room or any number of purposes. Use your imagination and find decor that works for the office and for any other uses you might have for that space.
Mixing Dark and Earthy Tones
Earth tones -- colors you typically see outside -- are frequently cited as home design staples. However, it’s not always clear how you should work in those colors. Mixing dark colors into those earthy tones helps those unique colors to stand out amid dark backgrounds. The combination can really make your earth tones pop, especially if you’re already utilizing bright rooms with light floorings and plenty of natural light. It’s a winning formula that’s sure to wow your guests and put a smile on your face every day.
|
Real estate is the biggest purchase any of us will ever make. With such a hefty price tag, you want to make sure buying property is worth your while. The good news is that purchasing real estate is
Real estate is the biggest purchase any of us will ever make. With such a hefty price tag, you want to make sure buying property is worth your while. The good news is that purchasing real estate is highly beneficial and can pay significant dividends in a variety of ways, both now and in the future. Let’s take a look at some of the best parts of owning real estate.
Steady Passive Income
Many people think of owning real estate in practical terms -- if I buy a home, I don’t have to worry about paying rent or moving every few years. But real estate provides so much more than that type of peace of mind, regardless of what you’re investing in or your reasons for choosing to invest.
Real estate can yield tremendous financial benefits. The most notable perk is that real estate can be a source of passive income. Houses generally appreciate in value at a rate that far outpaces inflation. Real estate value has increased by just over 5 percent per year over the last 30 years, with increases this year the highest they’ve been in more than 45 years. These increases make real estate a great decision if you’re looking to set down roots or start a family. It’s an even better proposition if you’re purchasing properties for renting.
Financial Security
Regardless of anyone’s financial situation, one constant remains true – everyone wants to have financial stability. Real estate investments help in that area by providing much-needed financial security. The equity built into real estate provides a true cushion and options in case times get tough. Rent payments received can help to pay off your investment virtually by themselves. And the longer you own property and the longer you collect rent, the more those properties will be worth, and the more security you’ll achieve.
Tax Exemptions
Taxes can be a bother to some, but to real estate owners, taxes aren’t so bad. Why? Because there’s so much benefit that can be derived from owning property. If you’re willing to look, you can find some great tax-based incentives that can save you some serious money. From exemptions based on locations and age to religious exemptions, there are plenty of options at your disposal. Tax exemptions and deductions can knock costly property taxes down significantly, if not eliminate them outright. Do your homework and see what’s available based on your situation and desired property.
Stability
We’ve mentioned the steady appreciation of real estate property values, and that’s a benefit that goes beyond making you money. It’s also assurance that your investment won’t go to waste. Stock can lose value for a multitude of reasons, but real estate’s value always remains high. There’s always a demand for property, and the physical nature of real estate means your properties will always be desirable to someone.
Nobody can predict the future. But the proven growth of real estate is as sure a thing as you’ll find. That’s especially important in the modern climate, when the pandemic and supply chain issues can have drastic ramifications on the economy. Real estate is a safe yet lucrative option that will guarantee your wealth if done properly.
|
The California housing market stayed blue-hot through 2021, leaving many potential home buyers waiting in the wings. Whether you are getting your real estate license or are a retail consumer, you might
The California housing market stayed blue-hot through 2021, leaving many potential home buyers waiting in the wings. Whether you are getting your real estate license or are a retail consumer, you might be wondering if home prices will continue to rise through 2022. On the flip side, you’re undoubtedly interested in whether or not the market might cool off, so you can finally make your big purchase. To figure all that out, you just have to take a peek at this guide to learn all you need to know about the housing market conditions in California.
2021 Housing Market Outlook
All across California, the already expensive housing market got even pricier as 2021 went on. This was a surprise to most people, as many thought that the pandemic would wreak havoc on the real estate market. To be fair, I have been a bear since 2018 as evidenced in this YouTube video.
In reality, quite the opposite has occurred since this recording. Prices have continued to rise through the pandemic with record jumps in home prices in the suburbs outside Sacramento, Riverside, and other urban centers. Inside the city centers, property prices continued to rise as well, although not quite as fast as the suburbs. Most people attribute this to the desire for social distancing and being a little further away from one another.
Overall, reports indicate that single-family home prices rose by over 12 percent through 2021 in many areas, landing thei median price tags in the $800,000 range by year’s end. Although that’s double the median sales price for homes across the United States, certain areas of California have even higher typical home prices. In San Francisco, for example, homes sit at $1.5 million on average, while homes in upscale Montecito often have an eye-watering $6.5 million asking price.
Cooling Ahead in 2022
The price hikes naturally result from low housing inventory and high demand, which will probably change at least a little in 2022. The always rosy-eyed California Association of Realtors projects that the cost of homes across the state will increase by a rather moderate 5.2 percent. Their housing and economic forecast points to the economic recovery, remote workforce, and overall supply/demand status as the factors driving the continued price increases.
These price increases will likely be tempered by rising interest rates. Mortgage interest rates have continued to stay at historic and unsustainable lows for more than a decade. The likelihood of rates staying at these low levels is extremely low without triggering massive inflation.
The combination of increased inventory coupled with decreased demand due to higher interest rates will likely cause the housing market to cool in 2022.
Should you buy now?
If you have the means and truly want to buy a home in California, consider getting all your ducks in a row and taking the plunge. Over the long run, California home prices have continued to march ever upward, after all, as California continues to attract people from far and wide. While rates will likely rise significantly in 2022 and there might be short-term downward pressure on prices this will only be for a period until prices rise again.
Timing the market is an impossible feat.
Not sure if it’s smart to start looking for a home to buy? Reach out to me at the office or through Instagram direct message.
Either I or a member of my team will be able to guide you appropriately. We can discuss your options and help guide you through your home buying journey.
If you’re reading this as you study for the California real estate exam I suggest you read more of my blogs to get acquainted with the real estate market.
Love,
Kartik
|
As you look to improve your living situation, that age-old question has likely come up: “Is it really a good time to buy a house?” There’s no one right answer for everyone, of course. But with
As you look to improve your living situation, that age-old question has likely come up: “Is it really a good time to buy a house?” There’s no one right answer for everyone, of course. But with a look at the most favorable months for home buying, the overall market conditions, and your personal factors, you can make the best decision for your needs. To help you get started, here’s a look at what to consider on your mission to find the best time to buy a house.
Find Favorable Months
The time of the year you plan to buy a home matters when it comes to pricing, inventory, and ease of tackling your move. Each real estate market responds to the seasons differently, especially when severe weather systems come into play.
In areas with heavy snowfall, for example, winter brings a marked decrease in inventory because many people don’t want to move in the snow. In tornado-prone areas, the spring might come with lower inventory numbers instead. The silver lining is that inventory decreases bring down house prices due to the low competition for housing.
In general, late summer and early fall offer the best balance of inventory and pricing. To make sure, just ask a real estate agent in your area for the inside scoop about the best months for homebuying.
Look at the Market Conditions
Market conditions can have a big impact on everything from inventory and pricing to mortgage terms and interest rates. To figure out if the market favors your homebuying journey, take a good look at the overall real estate market conditions nationwide and in your area.
Then, look at the current state of the economy along with projections for the coming year. After that, you must look at your local job market, including the unemployment rate, to see how your local economy is faring.
Then, look at the current state of the economy along with projections for the coming year. After that, you must look at your local job market, including the unemployment rate, to see how your local economy is faring.
Consider When It’s the Best Time for You
No matter what the market is doing, your homebuying journey must happen on your time schedule. If you need housing right away and cannot find rentals that suit your needs, then it might be wise to start looking for a home to buy. Before you can do that, you must make sure that your income, savings, and credit score are ready for the mortgage application process.
If everything lines up, use your findings from the prior sections to get ready for what lies ahead. In periods of excellent housing availability, you’ll need to prepare for higher prices, bidding wars, and lots of showing appointments. When inventory is low, prices might come down, but you’ll have to look long and hard for a property that meets all your needs.
As you consider all these factors, it’ll become quite clear if it’s a good time to buy a home or if you should wait it out a bit. Just remember that market conditions can always change either way, so waiting it out might not get you the results you seek. But as long as you practice your due diligence, you’re on the right track to ensuring your success in properly timing your home purchase.
|
Broadly speaking, an encumbrance is some “burden on the title” to a piece of property. If you’re reading this article, you probably already have been exposed to the term “encumbrances” in
Broadly speaking, an encumbrance is some “burden on the title” to a piece of property. If you’re reading this article, you probably already have been exposed to the term “encumbrances” in Real Estate Principles but I wanted to write a quick article about it as a refresher.
I chuckle when I hear people say things like “I would never buy a home with an encumbrance!” because this is essentially an impossible request. All properties are going to be encumbered in some way whether either through zoning regulations, private restrictions like CC&Rs when buying a condo or even something as common as a mortgage.
Encumbrances are of two basic types. Some involve money and others do not involve money. In the sale of California real estate, sellers are required to disclose encumbrances on a property and generally a title insurance company is a backstop to ensure that buyers are made aware of any encumbrances on a property prior to the purchase.
An encumbrance may or may not affect the value of the property – it depends on the type of encumbrance. There are some encumbrances like a lis pendens (explained below) that may prevent the sale of the property altogether.
Mortgages and Deeds of Trust
Mortgages and trust deeds are among the most common types of encumbrances out there. Any time a buyer of real estate gets a loan on a property the lender will place a deed of trust or a mortgage against it. I know we are accustomed to calling any home loan a “mortgage” but in California the instrument is actually a deed of trust.
These are very common encumbrances on a piece of real estate because most properties are not purchased cash.
If you’re interested in learning more about the differences between a mortgage and a trust deed I recoded a YouTube video about it here.
Deed Restrictions
A private owner might restrict the use of his or her property in some way. These restrictions usually stay with the property upon transfer. For example, a member of a church may decide to donate some land to the church on the condition that it be used only for religious purposes.
Prior to the enactment of civil rights legislation, there may have been race or other (now illegal) conditions prohibiting the sale to members of a specific ethnic minority group or religion. Such deed restrictions are neither valid nor enforceable
Zoning
Zoning is a public control on real estate. Every city and county in California is required to have a comprehensive, long-range plan for development within an area. This plan is known as the general plan. If you need a refresher on this, check out this link.
Even though most people do not think of zoning as an encumbrance, it is in fact an encumbrance. For example, a property that is zoned residential generally cannot be used for a commercial business - making it encumbered in some way.
Liens
A property could have voluntary or involuntary liens. A voluntary lien is one that is freely agreed to by the property owner. Reading that, you might wonder why anyone would voluntarily place a lien on their property but these liens are actually very common in the form of mortgages and trust deeds which I outlined below.
On the other hand, involuntary liens are those that get placed on a property by operation of law. Examples of involuntary liens include property tax liens, income tax liens, mechanic’s liens, and lis pendens. These liens are involuntary because the property owner does not need to specifically authorize the creation of the lien. The lien is created by law.
From your real estate crash course you might remember that a mechanic's lien is one that a party can place on your property if you did not pay for labor, services, material or equipment used upon a property.
Mechanics liens (like all liens) are another example of an encumbrance.
Easements
An easement is a type of encumbrance that gives others permission to use a portion of property - often for access. Imagine there are two houses, one in the front and one in the back. Let’s say the only way that the back house can get home is to cross over the front house. The right of way over the front house is known as an easement.
Another example of an easement is an easement in gross which mostly involves utility companies. The water utility, for example, typically has the right to lay underground water pipe through a subdivision and the electricity company will typically have the right to string wires over a subdivision.
Encroachment
An encroachment is a physical invasion of another’s property. Examples of encroachments include walls being built extending onto a neighbor’s property line, structures being built across boundaries or even airspace encroachments where branches of trees extend into an adjacent parcel, for example.
It may be challenging to sell a property that has an encroachment upon it.
A solid understanding of encumbrances will help you not only pass your real estate examination, but also be in a better position to help your clients.
If you need more help passing the real estate exam, call us at 888 768 5285 and we can help.
Love,
Kartik
|
The need for a quick sale is prompted by an opportunity. People, family, job change, or other needs mean that your client has to sell fast. No matter the reasons, a quick sale can often be a tough promise
The need for a quick sale is prompted by an opportunity. People, family, job change, or other needs mean that your client has to sell fast. No matter the reasons, a quick sale can often be a tough promise to make, even in a booming real estate market. Employing the tactics below can give you and your client the best chance of selling quickly for the price that you want.
1. Cultivate contacts with as-is buyers.
House flippers and people who buy real estate for the rental income are two groups who are typically open to as-is purchases and quick closing. Keep a list of these buyers as you encounter them and reach out when you have a property you want to sell in 7 days.
It pays to keep these relationships fresh even when you do not have a home to sell quickly. Email regularly to check in and ask about the types of properties they are currently seeking. Forward news articles that are of interest. By reaching out regularly, you keep yourself top of mind so they are quick to open your emails when you have a great property to share.
2. Give your sellers a crash course on staging.
First impressions always matter, but never as much as they do when you want to sell fast. Helping your sellers prep their home for market can make a huge difference in your results. Talk to them about the importance of tucking away personal items and removing furnishings to make rooms look bigger. Teach them how to show off features like great storage. In some cases, it can be worth the expense of bringing in professional home stagers.
By ensuring that the home looks beautiful and inviting for every open house and tour, you can increase the chances of winning a buyer's heart.
3. Suggest some quick, high-impact updates.
When you want to sell a listing in 7 days, there's no time for an extensive kitchen remodeling project. But, small, high-impact updates can help a lot.
Start with a focus on curb appeal. A freshly painted home entrance and neatly manicured landscaping start things off on the right foot. Inside, a fresh coat of paint can change the entire feel of a room. Finalize the effect with new lighting that makes the home look bright and welcoming.
4. Take amazing photos.
With today's phones, everyone has the ability to take images worthy of Architectural Digest. Increasing your skill with natural lighting photography can help you get great results. Professional photography lighting may be needed to get the best results in some rooms.
The right lighting and composition can truly showcase the elements that makethis property the perfect new home for one lucky buyer.
5. Invest in paid social media.
Organic growth on your social media channels helps with day-to-day exposure. But, when you have a special listing that you want to move fast, it can pay to invest in promoted posts. Careful audience curation ensures that your posts show up in front of the audience most likely to want to look at the home for sale.
It is also a good idea to be on multiple platforms. Facebook is a common choice, but do not neglect Instagram and Pinterest. Even TikTok can be useful. There are a number of agents who have amassed massive followings by presenting home tours on the video short app.
6. Optimize your real estate listings.
Listing sites like Zillow and Trulia offer far more listing customization than the MLS board does. Update your written description of the property with a call to action. Include your name and phone number and tell interested buyers how to get in touch.
You should also update your listing photos for the best impact. These sites automatically add all the images from your local MLS. Choose the best image of the front of the property and put it in image slot #1. For extra impact, edit the photo to add a custom banner with your contact information and your logo.
7. List low and start a bidding war.
An expert with Forbes Real Estate Council said that she had great success listing great homes for around 10% less than their current value. The combination of a well-staged home with great pictures and a low selling price brings in a ton of interest. Potential buyers are intrigued because one of the best looking houses in the area is also going for far less than comparable properties. By the time potential buyers are making offers, they will often push the price much closer to the seller's target price.
There is no one strategy that will guarantee a sale in one week. But, using the tips above can dramatically increase your chances of closing the deal quickly.
Love,
Kartik
|
One of the best ways to ensure success as a real estate agent is to be an active and contributing member of your local community. Being a recognizable face provides you with a sustainable stream of
One of the best ways to ensure success as a real estate agent is to be an active and contributing member of your local community. Being a recognizable face provides you with a sustainable stream of prospects. It also gives you a chance to show your community that you care. Hosting community events allows you to connect with neighbors, build new connections, and highlight the vibrant culture of your local area.
Best Community Events for Real Estate Agents
There are many types of events you can organize to give something back to your community. The right ones for you will depend on your interests, talents, and what works best with the community around you. A few great examples:
holiday events. During the summer months, consider 4th of July outdoor concerts, picnics, and other fun in the sun. Spring provides opportunities for Easter Egg hunts. Get creative with charitable drives at Thanksgiving or Christmas.
professional workshops. These types of events can bring together groups who are interested in subjects like real estate investing or home improvement.
game nights. Choose a local charity to support with raffles or bingo, then invite everyone to have fun.
Benefits of Putting on Community Events
A community event can be a lot of work, but it provides great rewards for you and your community. Some of the benefits you can see from hosting an event:
awareness of your brand. This is a chance to get face to face with members of
your community. Hosting regular events helps you solidify your role as the real
estate agent local people think of first.
networking. People typically find a real estate agent by either approaching one they already know, or talking to someone in the community who they trust. By hosting events, you get a chance to meet new people and make valuable connections.
goodwill. Hosting a memorable evening or contributing to a local cause is something people remember.
How to Host an Event
Putting together a successful event takes a lot of work and organization. Think about what you will need for your event to work.
First, set a budget. This sets the stage for everything else that follows and allows you to determine the scope of your event.
Who is the optimal audience for your event? Think of the types of people you represent as a real estate agent and what would interest them most. If you mostly work with people who have small children, a child-oriented event like meeting Santa can be a great fit. An agent who works with retirees may decide to host a lecture or a classic rock music night.
Will you provide food and drinks at the event? Are there going to be giveaways or gift bags? See who you can connect with in the community for this. For instance, you can hire a local caterer for food, or source gifts and prizes from local businesses.
Partnering with other local businesses can help defray costs and share the benefits. For instance, you can reach out to a local event space for donated space for a charity event. Local radio stations may be amenable to interviewing you before the event or hosting a show from your location. Ask businesses in the community to put up posters and flyers to promote the event.
Determine how you will collect contact information from attendees. For small events, pre-registering or having a sign in sheet is a great way to get names, phone numbers and emails. for larger events, consider options like drawings where people share their contact info on either their business cards or a printed entry.
Once you have a concept and a place to host, it's time to start working out the details. Will you need event insurance? Do you need to set up a schedule and fill it with speakers? Do you need materials like signs, agendas, or worksheets?
Making the Most of the Benefits
A successful event can provide returns for weeks and months afterward. Create an event hashtag and encourage people to post their photos from the occasion. Take quality pictures of your own and print them to display in your office.
After your event, reach out and thank everyone who contributed. This sort of appreciation can cement the good will you generated by bringing everyone together.
If an event works well, consider making it an annual occasion. The more years you are able to host this event, the deeper your connections to your community, and your influence in it become.
Over time, you become the person people think of first when they are ready to buy or sell a local home. You'll be recognized as someone friendly and helpful, and just the sort of person they want in their corner when it comes to this important transaction.
Love,
Kartik
|
Both prospecting and advertising can be great ways to bring in more clients for your real estate business. As an agent, you'll probably want to spend your time doing a little of each. But it's
Both prospecting and advertising can be great ways to bring in more clients for your real estate business. As an agent, you'll probably want to spend your time doing a little of each. But it's important to spend the majority of your energy on the area that will be the most valuable to you and your career. To do that, you need a good understanding of both of these methods of gaining clients. Here's what to know about prospecting vs. advertising, so you can decide where you want to focus your efforts.
What is Prospecting?
Prospecting is the concept of looking for your ideal clients. When you prospect, you need to know who you're looking for, where to find them, and how to attract them. That sounds simple, but in practice it can take a lot of time and consideration. The first thing is to determine your dream clients, and understand who they are. You may be looking for high-end clients only, or you may want to target middle-income people moving to your area for the jobs that are being created. There are all kinds of client groups.
When you prospect for clients, you want to be sure you have the right ones in mind. If you're not sure who they are yet, it's time to do some research and soul-searching. Once you have a client base that you're focused on targeting, the next step is to know where you can find them. You won't find most of your million dollar clients at the same places you'll find clients with more modest home-buying abilities, so knowing where to look is a big part of prospecting for your real estate clients.
As you learn more about your clients, what they like to do, and where they're likely to be, you can start looking at ways to get in front of them. Yes, that translates to advertising. But it's a different way of advertising. You're targeting a much smaller group of people, and you're also looking for people who you want to work with. That's not to say you won't take on other clients, but some are much more ideal to your goals and future plans than others. Prospecting focuses specifically on that client group, above any others.
What is Advertising?
Advertising doesn't take your ideal clients into account. Instead, it casts a broader net when it comes to finding people who want to work with you to buy or sell realestate. In other words, it's open to nearly everyone who needs your services. But that doesn't mean you don't have a target market you're most interested in. You might even direct your advertising dollars toward that market -- but you're not seeking ideal clients. You're only seeking typical clients.
Advertising is more about creating the conditions and interest levels that bring in the dream clients, as opposed to going out and specifically hunting for those clients, instead. As you do that, you'll also attract a lot of other clients that may not be ideal for you, but who will be clients you can work with or refer to others in the real estate profession. You may bring in a larger client base when you advertise versus when you prospect. But you'll need to be aware that some of these clients won't be a good fit for you.
Many real estate agents advertise in ways that are very open and inviting to the largest number of clients. For example, you may want to consider a billboard, or an ad on a bus or park bench. You may also advertise online with sponsored posts on social media, or put magnetic signs on the sides of your car. All of those ways to advertise can work for you, depending on the kinds of clients you're trying to attract, where they're located, and how much they're exposed to the advertising you're creating.
Which Option is Better?
There's no right answer to which option is a better one. They're both good choices, and which one of them will be right for you depends on what you're working toward with your real estate career and client base. Many agents are very focused on a big group of clients, and they want to bring in as many people as possible. Others are more interested in a specific niche of clients, and they'll cultivate that instead of looking for a wider audience. If you work toward ideal clients, you can also help others along the way.
What's the Bottom Line?
The bottom line on prospecting vs. advertising for any real estate agent, is that it's very important to know what direction you want to take. That way, you can spend your time and energy on the right type of clients, and the kind of cultivating that's going to work for your career and your future. In short, prospecting usually takes more work, but can produce more specific results. Advertising may be less detailed, but won't be as targeted toward ideal clients. Many agents use a mix, to build a strong client base.
Love,
Kartik
|
As a newer agent, you might not really be sure about marketing or how much you should budget for your business. The good news is that your marketing budget can be whatever you want it to be, provided
As a newer agent, you might not really be sure about marketing or how much you should budget for your business. The good news is that your marketing budget can be whatever you want it to be, provided you can afford it. But you do need to spend some time setting up that budget and managing it correctly. Here's what to consider, and why you should use and stick to a marketing budget template.
What's In It?
The first thing to think about with a marketing budget template is what you want to put in it. You can find a template that's premade, but that might not give you all the areas you want to consider. It could also contain a lot of things you may not use or don't really need. That's not to say that premade marketing budget templates don't have any value, but only that you should carefully consider whether you want to use one, or would prefer to make a template of your own, that you can use and adjust as needed.
Fixed Costs
Fixed costs are one of the main sections that should be in a marketing budget template. These are the expenses that you have to incur when marketing. For example, that can be the yearly amount you've designated for client gifts or lunches. It could be the amount you spend every year on billboard ad space, putting your name on the side of a bus, or even buying business cards. Whatever you're doing to market yourself as a real estate agent, it's a fixed cost if it's stable and repeating at a certain price.
Variable Costs
Variable costs are just what they sound like. They're expenses that are part of your marketing budget, but that can change frequently. They aren't fixed, because they aren't the same all the time. But they're still very important and need to be included. For example, if you decide to spend more on seller leads one month, or you need to boost the sponsored posts you're putting on social media, those costs are variable. They're going to change all the time, and you can adjust them throughout the year.
How Do You Make One?
Making a marketing budget template as a real estate agent doesn't have to be difficult or confusing. You just need to know what specifics to include. Then you can set your amounts for each area, and come up with a total budget. As you move through the year, and record what you actually spent, you'll be able to see if you're on budget, under budget, or overspending in specific areas. That can mean making adjustments as needed, so the budget doesn't get out of control before you realize the problem.
Monthly Spending
Your monthly spending is one of the most important areas to track. You may create your real estate marketing budget for the entire year, but you don't want to just set it up and then forget about it until the year is over. Instead, you need to take a look at it every month, and make sure you see what you're really spending versus what you had planned to spend. If there's a big discrepancy, correcting it at that time helps to keep your budget on track. It's generally easier to make small changes more frequently.
Defining Channels
Every channel that you're using should be defined in the marketing budget. You don't want to leave anything out, or you'll end up with a budget that generally doesn't work for you. Whether you're a new real estate agent or you've been one for a long time, understanding your marketing budget can be a big part of how you handle your career. The more you plan for a budget that works for your needs, the more comfortable that budget will be. Some channels to think about adding include:
Seller Leads
Buyer Leads
Open Houses
SEO
Social Media
Billboards
Photography
Listing Advertising
Print Advertising
These may or may not be the kinds of channels you want to put into your marketing budget template. If you find that you aren't using some of these, or you need to break some of them down into additional categories, you can do that, as well. It's your budget template, and you should set it up the way you want it, so you'll get the most benefit from it. Keep in mind that a good template is one that you'll use, not one that looks fancy or that works for other people. Make sure you're creating it for you and your needs.
What are the Benefits?
The biggest benefit for you as a real estate agent is being able to truly see where your marketing budget is going. If you're spending too much and not sure why, or you don't feel like your marketing is getting the results you want, setting up a template is a great way to catch those kinds of problems. Then you can make changes that work for your future.
Love,
Kartik
|
Are you looking to improve your home, either to get it ready to sell, or to make it more enjoyable to live in now? There are many DIY projects you can tackle to breathe new life into your home, without
Are you looking to improve your home, either to get it ready to sell, or to make it more enjoyable to live in now? There are many DIY projects you can tackle to breathe new life into your home, without spending a lot of money. Here are some you might want to consider.
1. Add Glass Cabinet Inserts
Glass cabinets are all the rage. They let you display some of your most beautiful
dishes while keeping them off of the counters, and they give the kitchen a bit
more character. You can upgrade to glass cabinets without completely gutting
your kitchen. Pick a couple of your cabinets and swap out the interior wood
panels with glass sheets, keeping the overall look of the cabinet intact while
providing visual interest in your kitchen.
2. Wallpaper Without Losing Your Mind
If the thought of wallpapering gives you flashbacks to serious issues, consider a peel-and-stick option instead of a traditional glued wallpaper. This can add a pop of color to your favorite room or brighten up an otherwise drab corner, and you can do it in an afternoon. When styles change, there’s no need to scrape and scratch to remove the wallpaper. Just peel it off and replace it with something that better fits your tastes.
3. Update Dated Fixtures
You’ll be surprised at the change if you remove a dated fixture and replace it with something more modern. Ceiling fans and lights go out of date quickly, but a simple swap will update the space. Since the wiring is already there, this does not have to be a complex project, and it can add quite a bit of character to the room.
4. Add Smart Home Features
Is your home “smart?” New smart home features, like a self-programmable thermostat or a camera doorbell, can make it more enjoyable to live in, while also helping you add value to your home. You can upgrade your entertainment system to be easily controlled on a mobile device, or add a smart appliance in the kitchen to make cooking easier. Consider adding smart home features that transform the energy efficiency of the space or make it more intuitive to the way you use your home.
5. Make Your Closets More Usable
Are your closets organized or chaotic? Sometimes a little refresh is what you need. Add shelving or hanging systems to the closet, then put in your belongings carefully to ensure you’re only keeping what you love. The closet organizing system will make it simpler to store your stuff in a useful way, and pairing down your items will keep the clutter at bay in the future.
6. Make a Home Office
Many people are working and schooling from home these days, but they may not have a space to do so. Consider turning an unused or non-essential closet into a home office space or transforming the guest room into an office room. In a closet, a desk and custom shelving are all it takes to create an office space, and you can remove the doors to make it less confined. This change will make your home more functional, and it could show additional value to a potential buyer in the future.
7. Swap Out Hardware
If your cabinets or closets are looking a little dated, consider swapping out the cabinet hardware. This will give the space an uplift without a lot of money invested. Updated, modern kitchen cabinet hardware can transform drab cabinets into something appealing, even without refinishing the wood. You can change hardware in your kitchen, bathroom, and closet or bedroom doors to make your home look more modern.
8. Paint It
If something in your home is not fitting your goals for your space, paint it. You can paint walls, trim, doors, and cabinets. Make sure the type of paint you use is appropriate for the surface you are painting, and if you are painting wood, sand it first. Otherwise, a gallon of paint and an afternoon can transform many spaces in your home.
9. Add Some Shelving
Many homes can benefit from additional storage, but knowing where to put it is not always easy. Look around your home and determine if you have any unused spaces where you can add shelving. Floating shelves, corner shelves, and built-in shelving can all give you additional storage and make use of an unused area of your home. You’ll love the function and look that this project brings.
10. Install Crown Molding
Crown molding adds quite a bit of character to your home, and it’s easier to install than you might think. Pick up pre-painted crown molding at your hardware store, trim it to size, and use a nail gun to attach it. If you don’t have a saw, ask the hardware store to cut it for you.
Fixing up your home doesn’t have to cost a lot or take much time. With a little work, you can transform your space and make it somewhere you are proud to live, all while adding value to it at the same time.
Love,
Kartik
|
One of the best and most rewarding ways to grow your real estate business is through referrals. Real estate referrals allow your family and friends to tell other people what a great agent you are, and
One of the best and most rewarding ways to grow your real estate business is through referrals. Real estate referrals allow your family and friends to tell other people what a great agent you are, and they carry quite a bit of weight with new potential customers. Yet asking for referrals from family and friends often feels awkward. Having a script in your back pocket that you can use to request referrals will help you overcome this feeling of awkwardness and get you those valuable referrals.
Tips for Asking for Referrals
Before delving into specific scripts to use, first consider these important tips.
1. Ask in Person
If you are going to ask a friend or relative for a referral, ask in person. You are more likely to get a “yes” response when you are talking face-to-face with someone than if you ask via text or over email, which is much easier to ignore.
2. Request a Favor
Ask for the referral as a favor to you. This tactic makes the person feel like they are your hero, and this positive feeling increases the chances they will do it.
3. Don’t Make It About You
When having a conversation asking for a referral, make it about the person you’re talking to. Tell them were wonderful as a client or as a support to your growing business. Be genuine but supportive because this will help them want to help you out.
4. Leave Your Inner Salesperson Behind
As a real estate agent you probably have a bit of salesmanship inside. This is not the place to let it out. Keep the conversation personable and natural.
5. Look for an In
When asking for referrals from family and friends, you may not be working directly with a past client. These individuals can still give you referrals, but you need to find a way to ask. Watch for opportunists, such as questions like:
How’s the business going?
What’s the market like?
Any big sales lately?
After answering the question, ask for the favor of referrals. You’ll have the chance to show your knowledge and then turn the conversation around toward what you need.
6. Keep It Short
Don’t linger over the referral request. People will zone out, and you won’t get any referrals. Keep it simple and short.
7. Give Them an Out
A phrase like “no pressure” or “if you want” gives someone an out. No one wants to feel pressured into a referral they aren’t comfortable delivering.
Real Estate Referral Program Scripts
So just how do you ask for the referral. As you get more comfortable, the asking will get more natural, but while you’re learning, consider one of these scripts for in-person conversations:
“Hey _____! It was great catching up today. Hey, you know I’ve been growing my
real estate business. Could I ask a favor? If you know someone who is looking for an agent, give them my name. I’d really appreciate it!”
“By the way, most of my business comes from word of mouth. I love how personal it is. If you know someone who could use my help, pass my name along. Thanks!”
“By the way, do you know I sell real estate ? I’ve been doing it for ___ years, and I’ve been wondering if you have talked to anyone lately who’s thinking about buying or selling? If you do, would you keep me in mind? Thanks!”
You should also have a script for social media contacts. Use social media posts to
share a story, then request referrals:
“Check out this recent sale! The Johnson family is so thrilled with their new home. Take a look at those walk-in closets! Do you know someone looking to buy? I can help!” — Make this post about the story of the sale, then tag on the ask at the end.
“Did you know? 75% of my work comes from referrals from people like you. I couldn’t do it without you!” — This is effective because it makes it all about the reader, and you don't even ask! Yet if someone reading it needs real estate help, they’ll know you want a referral.
Remember to tweak the script to make it personal to the conversation, and don’t linger on it. While you won’t get a referral every time, you will get some, and that will help your real estate business to grow.
Remember to Follow Up
Follow-up is key when looking for referrals, but it can feel very sales-y. Try to weave conversation about your real estate business into your conversations about life. It's a big part of your life, so it should be fairly easy to do this.
Start Growing Your Network
Finally, start growing your network of people you know in the local community. Get out and involved in community events and charity work. Add people to your social media pages when you meet them and take a genuine interest in them and their lives. This will help you grow a network that will eventually lead to more referrals.
The key to making a successful request for a referral is to keep things personal. Take a genuine interest in the person you’re talking to, then weave the conversation around to your goal. This will help you appear less like a salesperson and more approachable, which will generate a better number of referrals for your business.
Love,
Kartik
|
![]()
If you are enrolled in our California real estate school , no doubt you would have seen the term “easement” pop up in your studies.
Simply put, easements in real estate are the right of
If you are enrolled in our California real estate school , no doubt you would have seen the term “easement” pop up in your studies.
Simply put, easements in real estate are the right of one party to travel over the land of another for access.
What is an example of an easement?
Consider the case where there are two properties adjacent to one another- a front house and a back house. Assume that the only way the owner of the back house can get to their property is by crossing over the front property. The right of the back house to travel over the front house is known as an easement.
Who are the parties in an easement?
Since the back house has the legal right to travel over the front house for access, the owner of the back house is known as the “dominant” tenement. Because the front house is burdened by the easement they are known as the “servient” tenement.
While the simple example of a front house and a back house is the most common type of easement, there are others as well. For example, an electric company might have the right to string wires over a subdivision or a water utility might have the right to lay underground water pipe through an area. These are also types of easements, but they are known as easements in gross.
So how do you know if you have an easement?
Easements in real estate are almost always recorded with local authorities such as county or city clerks' offices. A title search would reveal easements that cross the property, and would appear in a preliminary title report obtained through a title insurance company.
So how does an easement differ from a license?
If you are taking our real estate crash course you have seen a discussion around the differences between an easement and a license. A license is a personal right to cross over the land of another held by an individual or entity. Licenses are not associated with the land itself, rather they correspond to an individual. An easement, on the other hand, is an appurtenant right. That is, easements are associated with the real property itself and run with the land. As such, easements are transferred to the new owner upon the sale of the property.
Example of a license:
I give Betty the right to travel over my land. I specify that this right is exclusive to Betty and it is able to be taken away from Betty.
Analysis:
This is a license because the right to traverse my property is exclusive to Betty and it not tied to the land. Finally, the right to travel over my land is able to be taken away from Betty hence it is a license not an easement.
To reiterate, remember that an easement differs from a license based on the revocability of a license. In other words, an easement that is recorded in the county recorder’s office generally can’t be revoked by the servient tenement.
A few ways that easements can be terminated, however, are:
Release of the easement by quitclaim deed signed by the dominant tenement.
Merger of both the dominant and servient tenements.
Restruction of the servient tenement.
Abandonment of a prescriptive easement for at least 5 years.
But notice in an easement, the servient tenement cannot unilaterally terminate the easement like the grantor could do with a license.
In summary, remember that an easement is the right to cross over another’s land for access. This simple definition should help you on the real estate exam .
Love,
Kartik
|
Customer Relationship Management software (CRM) can be one of the best ways for a new real estate agent to become more effective at managing the varied aspects of their business. With CRM software, you
Customer Relationship Management software (CRM) can be one of the best ways for a new real estate agent to become more effective at managing the varied aspects of their business. With CRM software, you will be able to make better use of your time, enhance your sales and marketing efforts, gain practical knowledge concerning lead generation and servicing, client contacts, deal forecasting and profitability, and gain a powerful sales reporting tool. Use it to schedule your bookings and appointments, manage more leads and close more deals. Chances are that if you join an established brokerage firm as a newly-licensed agent, there will already be a CRM in place. However, based on 2021 information, here's an overview of the 10 most-highly-rated platforms on the market in 2021. They are tailored to help you become the real estate "superstar" you want to be.
Monday CRM
This award-winning software boasts an extremely user-friendly and intuitive interface and is thoroughly customizable with no need for coding or IT. It's also extremely flexible and allows high-level collaboration between sales, marketing & customer service teams. With a 9.9 rating on a 10-point scale, it also offers a 14-day free trial and is budget-friendly at a rate of $8 per month per user, with a minimum of three users.
Pipedrive
This highly-rated CRM puts the focus on managing leads and closing deals, with the ability to easily track calls, emails and contact history, in addition to more than 150 advanced integrations. It is suitable both for small business and enterprise use, and features an exceptional customer support response time of one minute or less. It, too, is priced per user, at a current rate of $12.50 a month,and has a 14-day free trial.
Fresh sales
This CRM offers an automation solution that simplifies both pipeline tracking and individual account management for sales teams. With drag-and-drop navigation, and a built-in ability to predict revenue and forecast sales, it is highly customizable and relies on AI to help users with sales forecasts and revenue predictions. It is probably best for sales teams that will benefit from insights into the best deals to pursue. It offers a 21-day free review, but its more expensive than the previous two options.
KEAP
This platform, available as a mobile Android app, gives users the ability to easily integrate CRM, marketing and sales automation and payments. Agents can personalize messages sent to clients or leads, automate follow ups, access all client activity in one place, and sync with Gmail or Outlook inboxes. With a strong focus on tracking of customer activity, this is a good CRM for a single user interested in client management and messaging. It also offers a 14-day free trial and is reasonably priced.
Capsule
The biggest advantage of this CRM is its ease of use and quick setup. Although simplicity may be its major attraction, it offers the ability to attach an unlimited number of documents to lead records, in addition to the ability to share leads with other team members. Deemed highly advantageous for new real estate agents, it requires minimal training and offers a generous 30-day trial. It,too, can be integrated with Gmail or outlook. Data import or export is also easy with Capsule.
VCITA
If you're seeking a CRM designed for small businesses, this might be the perfect choice for you. It is flexible and intuitive, but still offers integration with dozens of other platforms, and has strong tools to maximize customer engagement and track follow-up efforts. In addition, it provides a distinctive client portal that allows for some unique self-service use and easy exchange of documentation. It not only includes tools for customizable workflow automation and a built-in billing and invoicing system, but it is available for both Android and iOS mobile apps. VCITA offers a 14-day trial period and pricing varies.
Whether you are a solo entrepreneur or a member of a real estate team, there are many different software packages that you might consider. Each will have pros and cons, and not all are best for newly-licensed real estate agents. Deciding which one will best suit your needs can be difficult. In general, cloud-hosted solutions that can be quickly deployed offer the most flexibility, and those with a large user community and good support network will typically be easier to set up and use.
Many CRMs offer a free trial but beware of "free" or very low-price software. Look for a CRM with the ability to connect or integrate with other services you use. Read the reviews of the various products, thoroughly analyze your personal needs and expectations, evaluate CRM support-team availability and, if possible, talk to other users and ask for advice and insights from experienced brokers and other real estate professionals before making a decision. The free trials offered by most CRMs can provide needed time for you to evaluate the ease of use and suitability of a specific platform. However, understand that there are distinct advantages to be gained from early adoption of a CRM as you begin your real estate career and look forward to success in the exciting world of real estate. To read more about how to begin your career and become a real estate agent and to read more success stories from other agents you can go to our website to learn more https://www.adhischools.com.
Love,
Kartik
|
The basic goal of having a professional presence on social media is to increase your visibility among prospective clients. Your goal should be to establish trust and a professional persona, "friends"
The basic goal of having a professional presence on social media is to increase your visibility among prospective clients. Your goal should be to establish trust and a professional persona, "friends" and “likes" are a by-product of your content but should not be the goal.
I’m going to go through the various platforms in this article and explain how they can be used to obtain business. If you’re wondering what to post online, I wrote an article about this here that might be of interest to you.
You should strive to develop and maintain a social media presence that is diverse and steady and demonstrates to the public that you are knowledgeable and competent and likable.
Does that sound like a tall order? It does not have to be. It doesn't have to take much time each week, but your activity on the various platforms should be coordinated and deliberate. You don’t have to be a professional writer, nor an accomplished photographer, but you should strive for personable and authentic posts.
The Giants of Social Media
The big four social media platforms are Facebook, Instagram, Twitter and LinkedIn with TikTok quickly accelerating and hoping to catch up to the established players. This will change over time, however. If you read old articles on the business of social media you’ll see references to Flickr, Myspace and even Friendster so I know that this article isn’t going to age well - but that’s kind of the point. Being able to bob and weave and pivot to where the puck is “going to be” will help you stay fresh and relevant as a business person.
You really have to be fine with trying different approaches on all platforms. Some real estate agents find YouTube to be highly effective, while others migrate in the direction of short form TikTok videos or more graphic social media sites like Pinterest.
Facebook
With more than 2.7 billion users worldwide, Facebook could be seen as the anchor of your social media presence. Although it may not be the younger generation's favorite, your real estate clientele is likely to be among its users so embrace it.
There is a debate around the ratio of personal posts compared to business ones. A best practice here would be to try all sorts of things until you find a rhythm that works for you and your audience.
We would love to get you know you on Facebook! Connect with us here.
Instagram
Instagram is a quick and effective way to share photos and video content with your followers. With 1.2 billion monthly active users, it is another indispensable way to reach potential clients and boost your following. Another advantage is that, because of its affiliation with Facebook, each Instagram post can be shared on Facebook, and vice versa making posting to both platforms seamless.
Don’t forget that Instagram has cool buttons like “vote”, “quiz”, and question/answer type buttons. These interactive features allow you to get to know your audience and also provides insight into what your followers like. If you are interested in connecting with our real estate school on Instagram we would love to connect!
Twitter
Tweets are short (they have been increased to 280 characters from their former 140) and short-lived, and the platform is instantaneous in a way all its own. It doesn't take much time to get the hang of it, and it can gain you a following fairly quickly as a knowledgeable real estate professional when used correctly. It's an ideal way to share information -- such as a daily change in the interest rate, an interesting new listing, or a price reduction -- with your followers.
LinkedIn
Microsoft purchased this business-oriented social media platform and its influence among professionals cannot be underestimated. LinkedIn also gained importance during the pandemic as the platform for B2B interaction. Be sure your personal profile is complete and that you use a professional photo for your headshot. Regular posts and interaction with other professionals is beneficial.
LinkedIn can also be used to gain referrals for your real estate business from out of area agents. Every referral received by a real estate agent can be worth $10,000+ so being recognized as the go-to agent in your area can be very valuable.
If you are one of our real estate school students, there’s nothing wrong with you posting right now that you are enrolled in our real estate classes online on your LinkedIn so that your audience knows that you are going to be a future real estate agent.
Develop a Posting Calendar
Develop a social media schedule. Aim for a minimum of two or three social media posts each week on each platform in the beginning and share links between platforms when appropriate. Send a tweet to point followers to a Facebook post, for instance, or share an Instagram photo automatically to your Facebook page. Write a short article for LinkedIn and post a short sentence and a link on Facebook. Use Twitter to tell your followers that a specific home you listed just closed, that the price on a specific property was lowered, or that interest rates are slated to rise next week, according to the latest financial news.
Encourage interaction, try your level best to respond to comments, and thank your followers for their support. Introduce a new buyer to the community by posting a photo of them at their new front door (with their permission, of course). Lend your support to a community event or don’t be shy to promote your latest achievement to your audience. Share a humorous story or post a cute "puppy" picture just for the fun of it. Just make sure your posts are believable, accurate and in good taste. And have fun with social media.
When done properly you’ll reap the reward through increased business.
If you are interested in getting started in real estate courses, click here or reach out by phone at 888-768-5285 or @ us! :)
Love,
Kartik
|
Downsizing your home comes with a wide range of different benefits. Sometimes your kids have left the home to go off to college and you just don't need as much space any longer. Other times, you realize
Downsizing your home comes with a wide range of different benefits. Sometimes your kids have left the home to go off to college and you just don't need as much space any longer. Other times, you realize that you never needed as much space in the first place. Regardless, it can be a great way to free yourself of some clutter and also save some money on your monthly bills at the exact same time.
When you do search for a smaller home, there are a few key things you should look for. Chief among these is how much square footage your new home will have. You'll also want to examine the potential for storage spaces depending on the amount of items you're bringing with you. But more than anything, you want to consider WHY you want to downsize. Are you doing this for yourself, or are you doing this because you think you need to? Regardless, once you make the decision and you begin to embark on this journey, there are a few key tips you need to downsize to a smaller home that are always worth remembering.
Downsizing Your Home: What You Need to Know
By far, the most important thing to remember when moving into a smaller space is that you should begin by making a list of all those personal belongings and other items that you don't really need anymore. You should do this before you start to pack, as it can save you a tremendous amount of effort in the long run. Take an inventory of your items and try to separate anything out that you truly know you don't need. If you were a collector who no longer has a passion for what was your former favorite hobby, consider getting rid of those items. If you have four television sets but know that you're only going to need two at your new place, sell them before you have to move to make the process go as smoothly as possible.
Along the same lines, you should also use apps to sell your stuff. Obviously, there is always eBay - you can list virtually anything you want at a certain price and let people bid on it until it sells. But there are also options like the Facebook Marketplace or Nextdoor that allow you to listen items that will be visible to people who are in your immediate geographic area. This can potentially be a great way to not only sell items, but to do so without needing to ship them because you can have buyers come pick them up by way of a "Local Pickup Only" option.
At the same time, you should also start cleaning out your wardrobe for any items that you don't wear anymore. More than anything, you want to try to visualize the new space that you're moving into and how your new items might fit into it. If you have a particular type of bed, for example, walk into your new bedroom and try to envision where it may best be positioned. Do the same with other furniture that you have to try to create a mental image ahead of time of where those items may best be located. This, too, will save you a lot of trouble during the move itself. Just because you don't like a particular shirt anymore doesn't mean that someone else won't, after all.
Maximizing the Space in a Small House
Once you actually move into your new home, you'll probably find that a bit of an adjustment period is necessary. After all, you're used to a certain amount of space and those immediate days and even weeks after the move can begin to feel a little cramped. Thankfully, there are a number of techniques that you can use to maximize the space in a smaller home - chief among them being the installation of wall mounted storage. Many big box furniture stores offer wall mounted storage and you can also likely find custom solutions in your area. The benefit here is that you still get all of the space made available by shelves and cabinets, but you're not taking up any additional floor space, either. This in and of itself is a great way to take an admittedly small room and make it feel as big as possible.
At the same time, you should also consider opportunities to increase storage space in your kitchen. People often don't realize just how many kitchen utensils and other items that they have until it comes time to try to find a place for them. Whether this means installing new storage or coming up with a more inventive solution will obviously vary depending on the situation - but this is definitely one of those areas that you should focus a lot of your attention on.
You can also consider shopping for multi-functional furniture - meaning those pieces that serve more than one purpose. A couch doesn't just have to be a couch - it can also fold out into a bed to give people a place to sleep when they come visit. Oftentimes you can find an ottoman for the living room that acts both as that and as a convenient storage location for remote controls, gaming consoles and similar items. Downsizing can change your life for the better. It can help you free yourself from clutter and save money as well. Overall, if you have the opportunity to do so it's a good idea - and tips like those outlined above will certainly help.
Love,
Kartik
|
Most people, especially adults, are a little intimidated when it comes to taking an exam; it somehow doesn't matter if it's a driving test or an exam to qualify for a license, or the culmination of a
Most people, especially adults, are a little intimidated when it comes to taking an exam; it somehow doesn't matter if it's a driving test or an exam to qualify for a license, or the culmination of a special training program. It can be stressful, but there are a number of ways to calm your anxiety and boost your level of confidence.
The required California Real Estate Exam is one of those tests that determines whether you will become a licensed professional, qualified to act on behalf of buyers and sellers to transact business in the state. It is an important step, and after weeks of serious study, you'll want to make every possible effort to pass the exam on your first attempt. Here are some ways to do just that, and to easily achieve your goals. The test consists of 150 questions; you are allowed three hours to complete the exam, and a passing score requires that at least 70% of the questions be answered correctly.
Review Smarter and Better
There is no magic formula to help you fill in the blanks correctly. Advance preparation is important, and pre-exam review of the myriad real estate topics you have studied is vital. Cramming, however, might lead to greater apprehension. A planned timetable of review is a better idea, and one that will also prepare you more fully for the day-to-day skills and knowledge that a real estate agent or broker requires.
Create a Study Schedule: If you have been enrolled in a real estate course, plan to review your class notes and course materials thoroughly before scheduling the exam. Enlist the help of your spouse, partner, or best friend to help you with concepts and to act as a coach or sounding board as you review the various topics and principles.
Form a Study Group: Learning and understanding are enhanced when you receive input and feedback from others. Keep the group small and informal, if possible, and limit the duration of study sessions to encourage lively discussions and prevent burnout.
Review Vocabulary and Terms: Be certain that you have a grasp of the defining vocabulary and specific designations that characterize real estate roles and transaction responsibilities. Review Concepts to Gain Understanding. Role playing can be highly instructive. Use it to demonstrate the different aspects of any real estate transaction -- from initial contact with a prospective client to discussion of specific prohibitions of language and topics that you may encounter in your real estate dealings.
Watch YouTube Videos: There are some highly instructive materials online. Seek out professionally-prepared videos and presentations that will illustrate the situations any real estate professional must understand.
Enroll in a Review Course: If it has been some time since you first enrolled in a real estate licensing course, you might want to schedule a quick pre-exam review. Online reviews, flash cards, and comprehensive study guides can all be helpful. Take a Practice Test. A practice test will provide basic familiarity with the type of questions you'll encounter. However, use practice tests judiciously, and don't make the mistake of "practicing" too much. Not everything you need to know will be covered in any test; understand that your real estate career will always present you with new challenges, and that it's better to understand concepts than to memorize answers to specific test questions.
On the Day of the Test
During the week leading up to your testing date, try to get plenty of rest and exercise, and try not to stress about the upcoming exam. Prepare yourself by reviewing to the best of your ability and try to be physically fit and mentally relaxed when the day arrives.
Follow your normal routine as much as possible. If you normally eat a healthy breakfast, do so and don't stress unduly about the rest of your day. If, on the other hand, you have only coffee for breakfast, go ahead, but don't overdo the caffeine. Also, remember to bring a snack or something nutritious available for sustenance prior to the exam. Bring water as well; it's important to stay hydrated.
Plan to get your normal quota of sleep the night before the exam. You might want to rise a little earlier than usual, however. Get in some stretches for your body or read something motivational to get your mind in gear -- whatever seems appropriate. Arrive early at the test location, armed with everything you've been instructed to bring, but nothing else. Breathe deeply, get comfortable, and don't stress.
Don't rush through the questions. If there are questions that are confusing, or answers you're unsure of, skip over them and move on. A later question might trigger the correct response for you, and you can then return to answer the questions confidently.
Be confident; don't overthink the multiple-choice answers. Understand that the test is not designed to trip you up, but that some real estate principles and practices are subject to interpretation. In most cases, trust your judgment and choose the one answer that seems to be the most logical and correct. Progress through the 150 questions, answering all that seem easy. Try to allow ample time to review your work and to reconsider answers to questions you were unsure about. Once you have made a final choice, however, move on.
Don't stress. Remember the concepts. Understand the topics. You’ve been preparing for this. Be confident and know that you’ve got this!
|
Regardless of how long you've been engaged with your real estate career, getting a steady stream of new clients is always a top priority. In this particular industry, consistency is king - the more
Regardless of how long you've been engaged with your real estate career, getting a steady stream of new clients is always a top priority. In this particular industry, consistency is king - the more people you have knocking on your door, the more revenue you're able to generate. In an effort to do precisely that, many agents take to the process of farming.
Real estate farming is a specific type of marketing technique that is used to develop business in a precise geographic area. Rather than attempting to cast the widest net possible, you instead attempt to cast the right net - meaning that you focus your attention on what may be a smaller area, but that you know like the back of your hand and that you're already intimately familiar with. Yet at the same time, real estate farming isn't quite as straightforward as it may seem. If you truly want to utilize the best that farming strategies have to offer to find your next client, there are a number of important things you'll want to keep in mind.
Real Estate Farming: Your Guide
The single most important best practice that you can put to use when real estate farming involves making sure that you've found the right area to focus on in the first place. Begin your efforts by comparing multiple areas and even multiple locations to help come to a determination as to which one has the most overall appeal. You can use a variety of data points to do this, including but not limited to average home sale prices, the average amount of turnover, the amount of competition you'll face in the area and more.
To help verify that you've made the right decision, use recent sales to help calculate the average sale price in this particular part of town. Based on that, you'll be able to see what you're likely to earn on a commission per sale. You'll also want to pay close attention to the turnover rate to make sure that there is enough business in the area to sustain yourself. But again - you don't want to do this for just one particular neighborhood. Create a table to show your top three real estate farming areas and weigh the pros and cons of each one equally. At the end of this process, you should have all the insight you need to determine your best neighborhood.
What You Need to Know About Real Estate Farming and Marketing
Along the same lines, you should also be prepared with those real estate farming techniques that will allow you to attract the attention of - and ultimately win - more leads in the area you've selected. This is something that you can do in a few different ways and, in all likelihood, you'll want to use a combination of them to succeed. Create a real estate marketing plan and focus on a niche. If your specialty is single family homes, be sure to find an area with a lot of single family homes. If your specialty is condos, be sure to find an area with a lot of condos. Likewise, be sure to pay attention to the size of the farms so that you don't pick an area that is too big for you to reasonably cover.
On an ongoing basis, you should also make sure that you're always the first person to welcome new homeowners into the neighborhood. Whether that means stopping by and knocking on the door to say "hello," picking up the phone and making a call or even just sending something nice in the mail doesn't matter - what is most important is that you're reaching out and making your presence known.
Moving forward, you should also make sure that you know every time a home goes on the market so that you can be the first to preview it. Especially in a market that is as "hot" as the one we're in right now, newly listed homes move quickly. If something goes on sale that you know would be perfect for one of your existing clients, you need to act fast. Making a priority to understand the current inventory goes a long way towards guaranteeing exactly that.
Understand that having the right materials is always a critical part of knowing precisely how to farm a neighborhood in real estate. These materials can include but are certainly not limited to newsletters, postcards, flyers, market reports, "Just Listed/Just Sold" notices and more. Always utilize direct mail marketing companies to do the work for you, such as sending out farming cards. They can automatically send out postcards as soon as one of your listings hits the market or sells. This can help free up the maximum amount of your attention so that you can focus on the thing that matters most of all: your career.
You can also use a company like FarmingCards, which is an intelligent postcard marketing solution that helps organizations connect with potential clients. It's a convenient, end-to-end, artificial intelligence-facilitated service that helps agents maximize the overall return on investment of their marketing. It allows you to design postcards instantly that let you find your ideal clients using smart targeting and other features. At that point you can sit back and relax as FarmingCards prints and delivers to your farm - precisely the way it should be.
Love,
Kartik
|
One of the most important things to understand about operating successfully in the real estate industry is that you're really trying to sell two distinct things at the same time.
Yes, it's absolutely
One of the most important things to understand about operating successfully in the real estate industry is that you're really trying to sell two distinct things at the same time.
Yes, it's absolutely true that you're helping someone sell or buy a house. A big part of your job is to help them navigate what may very well be the biggest financial decisions they'll ever make. But beyond that, you're also selling something arguably more important:
Yourself
In order to build the type of career you've seen for yourself in the industry, you need to be able to establish yourself as an authority. You need to show, not tell, people that you know what you're talking about. That yours is a voice worth trusting and paying attention to. Only then will they feel confident enough asking you to come along with them on this journey - which is how a book of business is eventually built.
To accomplish that, you need been capitalizing on your Sphere of Influence - something that you've been building with every interaction you've made up to this point, possibly without even realizing it. In the simplest possible terms, a Sphere of Influence is the collection of all the people you know. Not only does this include friends, family members and other loved ones, obviously, but also any loose connections you've forged or acquaintances you've met along the way.
It's also something that will soon become the secret to your success in a wide range of different ways that are worth exploring.
Why is a Sphere of Influence Important?
A number of recent studies have illustrated just how important a Sphere of Influence truly is, particularly in an industry that is as connection-driven as real estate.
According to one report, over 80% of all real estate transactions are the direct result of contacts from people you already know. That means not only previous contacts or any referrals they may bring you but also friends, family members and people you know personally.
This is crucial, as another study revealed that 74% of home buyers say that they would gladly use their agent again in the future and had plans to recommend them to others. Along the same lines, about 84% of people say they also trust recommendations from their own collection of peers when it comes to determining who to do business with.
All of this paints a very clear picture of just how the real estate industry operates. Yes, it's possible to "cold call" people and obtain new clients who you've had no interactions with in the past. But in the vast majority of all situations, your business will come from those people who are already in your life - even if only tangentially. Therefore, your Sphere of Influence isn't just an important asset to capitalize on - it may be the single biggest contributing factor to your future as a real estate agent.
Get Comfortable on Social Media
When it comes time to actually take advantage of your Sphere of Influence, there are a few key techniques you can try. Chief among these is the idea that if you're not already comfortable on social media sites like Facebook and Twitter, now would be an excellent time to start.
Indeed, visualizing your Sphere of Influence through a social media platform like Facebook is actually one of the easiest way to do it. Think about your current contact lists and ask yourself which platforms they're the most active on. Facebook in particular shows you mutual friends and other important metrics like that. Spending a few hours on these sites seeing who you know, and who they know, and who THEY know, is a great way to illustrate how big your Sphere of Influence really is.
All the while, you should also be taking the opportunity to post relevant, valuable and otherwise meaningful content to your pages for these people to see. If there's a particularly interesting industry topic that you can provide insight on, link to the article and write a few paragraphs containing your thoughts. Help people see things from an angle that they may have otherwise missed. Again, it's a great way to establish yourself as an authority - thus expanding your Sphere of Influence as well.
Maximize the Power of Printed Materials
Similarly, distributing printed materials is a tried-and-true tactic and an effective way to create awareness for both you and your business. This, too, is something you can do in a few different ways.
If there was a particularly impressive home sale in the area recently, or if the market is heating up, don't be afraid to print up a flyer and distribute it to the neighborhood outlining your thoughts. Give people information that they don't already have and leave them with something of value without asking for anything in return. It's a great way to both let people know that you're out there and continue to build up your trustworthiness, too.
Of course, it doesn't have to be quite that complicated. Always have business cards handy ready to give to everyone you meet, for example - you just never know who might be looking to buy or sell.
In the end, your Sphere of Influence should always be getting bigger over time - and it likely will in a natural way. You must resist the urge to overlook this critical asset, as it will absolutely be the secret to your success in the future.
|
When the time comes to sell your home, it stands to reason that you'd want to get as much value out of it as possible. But few people realize that increasing your home's value is less the product of any
When the time comes to sell your home, it stands to reason that you'd want to get as much value out of it as possible. But few people realize that increasing your home's value is less the product of any one major move and is more about a series of smaller, more strategic ones. In truth, increasing your home's value is fairly straightforward - you just need to keep a few key things in mind along the way.
Improvement #1: Kitchen Renovations
By far, one of the biggest ways to immediately add value to your home comes by way of renovating your kitchen. This is because kitchens tend to be one of the areas of any house that fall out of date rather quickly. Whether it involves putting in new cabinets, investing in more modern and state-of-the-art appliances, installing new floors or performing some combination of these improvements all at the same time, it's a great way to instantly breathe some much-needed "fresh air" into a space.
Modern appliances tend to be more energy efficient than their older counterparts, making this a great way to help prospective buyers save money almost immediately after purchase. When a buyer looks at a home and sees that they don't have to perform any of these upgrades themselves, it can also help your home sell faster and for a higher price, too. Not only that, it also helps people more effectively picture themselves in a space. They can see how much time they'll be able to save when preparing meals, for example, and it's easier for them to envision what they'll be able to do with increased storage space (in the event that you're putting in new cabinets).
Improvement #2: Bathroom Updates
Another major way to increase your home's value is to invest in a bathroom upgrade. Again, this is a great way to not only reduce clutter, but also to help potential new homebuyers become more ecologically friendly at the same time. According to one recent study, even a relatively "minor" bathroom update can give you a 102% return on investment when it comes time to resell your home. This is the type of thing that prospective homebuyers take seriously, which means that you need to do so as well. Never forget that even the smallest rooms in a house can have a big, big impact on its ultimate resale value.
Improvement #3: Lighting Upgrades
Lighting upgrades may seem like a relatively minor improvement, but they're absolutely not as far as the resale value of your home is concerned. This is a topic that you can approach in a number of different ways depending on your perspective. In some situations, it could be as simple as replacing all of your existing light bulbs with energy efficient LED alternatives. This is another way to help make your home environmentally friendly, which will make it far more enticing to prospective buyers. You could even take the additional step of installing "smart" lighting, with Philips Hue bulbs being a prime example of that. Smart lighting can be connected to "intelligent" home automation systems like Amazon's Alexa or Apple's HomeKit, allowing you to control your lights using a smartphone or via voice command. This comes with the added benefit of being able to control the lighting in your home while you're away, or by setting automatic schedules that respond in real-time to certain events. But regardless, the brighter a room feels, the bigger it looks. Whenever you're thinking about selling your home, you want every space to look as big as it can possibly get.
Improvement #4: Fresh Paint
As was true with lighting, a fresh coat of paint can also make a space feel both cleaner and brighter in equal measure. According to another recent study, painting the interior of your home can result in a massive 107% return on investment when it comes time to sell. Even painting the outside leads to a 55% return on investment. The same source indicated that while painting the interior of your home costs an average of $987, it could increase the overall value of your home by as much as $2,000 or more.
Having said that, you'll still want to keep a few key things in mind. Always select warm, neutral colors for the best results and know which rooms need your immediate attention. Utilize paint to make smaller rooms look and feel bigger and place an emphasis on your kitchen, your bathrooms and entryways for maximum impact.
Improvement #5: Landscape Improvements
Finally, we arrive at the landscaping of your home - something that is far more important than most people realize. Always pay special attention to the entryway of your home and make sure that it looks as striking as possible - particularly for those listing photos. Be sure to repair or replace any damaged stepping stones, concrete paths and porch plants that you can to generate as much curb appeal as possible. While you're at it, be sure to give the front door a fresh coat of paint. If you don't necessarily have a "green thumb" to the point where you don't want to plant anything, add some potted plants to really cement the effect that you're going for. Overall, you always want people to be excited when they walk through the door of your home. The aforementioned best practices go a long way towards guaranteeing precisely that.
Love,
Kartik
|
The majority of people who are not in the real estate business have little to no understanding of what an emotional rollercoaster it can be to be a realtor. The good days are really good while the bad
The majority of people who are not in the real estate business have little to no understanding of what an emotional rollercoaster it can be to be a realtor. The good days are really good while the bad days can be pretty tough to get through. Here are some of the toughest struggles that every realtor has to deal with on a daily basis.
1. Uncertainty about real estate market
This is perhaps one of the biggest uncertainties realtors have to deal with on a daily basis. Every realtor is worried about not being able to sell their properties and how it will affect his or her commissions at the end of the month. This uncertainty is real and can cause a lot of stress for realtors and their clients. The best realtors really do care about their client's properties and genuinely want to find them a buyer as soon as possible. It’s safe to say, realtors can carry a lot of weight on their shoulders.
2. Constantly being on the go
A realtor is always on the go, they are always thinking of new ways to market themselves and bring in potential buyers for their clients' homes. They spend most of their time on the road or on their phone calling both real estate agents and potential buyers. Not to mention, being on the go can last well into the night. The hours are different every day. It’s not uncommon for a realtor to be submitting offers at 10pm or receiving calls from agents at 12pm or calls from clients at 6am.
3. Commission is by no means a guarantee
In real estate, nothing can be guaranteed. Even if you do everything right to sell that house, from staging it perfectly, to showing the house as often as possible, there is still no guarantee that you will make a sale. The realtor will spend money marketing the home, paying for photography, doing open houses, finding buyers, etc. Even when the home is in escrow there are still occasions where it does not close escrow and you may have to start all over again. Most of the time realtors won’t get a commission check until 30 plus days after their listing receives an offer. There are times however that a everything right to sell that house, from staging it perfectly, to showing the house as often as possible, there is still no guarantee that you will make a sale. The realtor will spend money marketing the home, paying for photography, doing open houses, finding buyers, etc. Even when the home is in escrow there are still occasions where it does not close escrow and you may have to start all over again. Most of the time realtors won’t get a commission check until 30 plus days after their listing receives an offer. There are times however that a listing will not sell and a realtor will essentially not get paid for their time and efforts marketing that listing.
4. Being underpaid for hard work
As real estate agents, they put in more work than any other profession but are only compensated about 3% on the home sale. Just think about it, realtors get paid almost nothing for everything they do. They spend hours upon hours of their time marketing homes and placing phone calls, but real estate agents get paid very little for all of their hard work. There is a ton of time spent going back and forth in communication between escrow, loan officers, listing agents, etc. They juggle going back and forth to communicate with all parties in the deal and may have to deal with major headaches along the way. You never know what kind of setback will come up because someone on the other end isn’t meeting a deadline or doing what was asked. When working with buyers, the real estate agent can spend days, weeks, or even months showing house after house and put in several offers on behalf of their clients. Sometimes offers will not get accepted, other times they will, and sometimes the buyers will cancel even after the going back and forth to communicate with all parties in the deal and may have to deal with major headaches along the way. You never know what kind of setback will come up because someone on the other end isn’t meeting a deadline or doing what was asked. When working with buyers, the real estate agent can spend days, weeks, or even months showing house after house and put in several offers on behalf of their clients. Sometimes offers will not get accepted, other times they will, and sometimes the buyers will cancel even after the offer is accepted. You literally have no idea how each deal with go. Realtors deal with surprises and setbacks all the time.
5. Dealing with difficult clients
All realtors have had to deal with difficult clients at least once in their real estate career. Clients are always coming up with the most ridiculous demands and realtors have to deal with them no matter how crazy they may sound. Most realtors will do anything it takes to make their clients happy because realtors realize that it is all about building long term relationships. Sometimes realtors may have to end relationships with certain clients whose expectations are unrealistic and impossible to attain. It is the realtor’s job to educate their clients as much as possible about the real estate world. If the realtor has done everything they can to give their clients an understanding and guide them in the process of buying or selling and their client refuses to listen, it may be time to cut ties with that client.
So, are the ups and downs worth it?
Absolutely. Becoming educated about the industry and the expectations that come with being a realtor are a necessary part of starting in this industry successfully. Knowing what to expect can help tremendously when overcoming obstacles and dealing with the uncertainty that comes with the territory. Remember, the more experience you get the better you get at something. This goes for anything in life and if you stick with it, your sure to reap the benefits. The harder you work in real estate the more money you can make. The potential is endless. So stay consistent and don’t give up when the going gets tough.
Love,
Kartik
|
At its core, a contingency is a condition that needs to be met before an offer like a real estate transaction is allowed to proceed. From a certain perspective it's a bit like a safety net and it's far
At its core, a contingency is a condition that needs to be met before an offer like a real estate transaction is allowed to proceed. From a certain perspective it's a bit like a safety net and it's far more important than people realize. For the sake of example, let's say a home buyer visits a property that they absolutely fall in love with. After quick negotiations with the seller, they agree to the purchase price of $350,000. Contracts are drawn up, documents are signed and an initial deposit is handed over. Everything proceeds as it should, until the appraisal comes in... and all parties find out that the house is only worth $300,000. What, in that situation, do you do?
If they had an appraisal contingency in the contract, the buyer would walk away without a care in the world. An appraisal contingency means that if the home you want to buy doesn't appraise for the amount that you've already agreed to pay, you get to walk away from the deal with your deposit in hand. This is because an appraisal determines the fair market value of the home you're trying to buy.
All told, they're a hugely important part of the real estate process for a wide range of different reasons, all of which are worth exploring.
How Does the Appraisal Contingency Protect You?
As stated, the purpose of an appraisal contingency is to protect both the buyer and the lender from overpaying for home. No lender will ever want to lend someone more money than a home is worth because from the moment that buyer gets the keys, they'd immediately be underwater. Likewise, no home buyer should ever want to be in that situation because part of the reason you purchase property in the first place is for equity - something that you wouldn't have in that situation.
During the appraisal process, a licensed and trained professional will come to the property in question for what is essentially a physical, in-person inspection. They'll take into consideration specifics like the condition of the outside and inside, the size of the yard, home improvements that have been recently made and more - all in an effort to determine the current fair market value of the property. They'll also take a look at any recent renovations that have been made, or additions that have been built since the last time the home was appraised.
Note that an appraisal is not the same thing as a home inspection and they should not be treated as such. They're similar, to be fair, but they serve different purposes.
Overall, these contingencies protect people financially if there's a serious difference in value between what the home is worth and what they're actually being asked to pay.
When NOT to Use an Appraisal Contingency
Having said all of that, there are a few key situations when using an appraisal contingency as part of a real estate transaction may not be a good idea.
Chief among them is if you're buying when it is a seller's market - particularly one that is as active as it is right now. A seller's market, as the name suggests, means that there are often multiple offers for a single some and buying competition is high. Right it's extraordinarily high - driven in large part by the combination of historically low interest rates and the scarcity of inventory across the country. Things have gotten to the point where it's not uncommon to hear about a situation where a buyer doesn't just waive an appraisal contingency - they waive a home inspection as well. Obviously, this won't always be the case - but it's also the perfect example of when an appraisal contingency will probably lose you a home.
When a seller has the ability to choose between multiple, similar offers in a market that favors them greatly, they're obviously going to choose the one that is the most beneficial to themselves. Any offer that comes with strings attached like an appraisal contingency is obviously less appealing to that person. If you really love a home, you can strengthen your offer by waiving your appraisal contingency. You must also, however, be willing to risk a lower appraisal when that day comes.
You may also consider waiving an appraisal contingency if you're buying a home with cash. Cash sales don't actually require an appraisal because there is no lender involved to deny a mortgage if there is a big difference between what the home is worth and what you're paying for it. Obviously, you could always run the risk of overpaying to begin with - but so long as it's a risk you're willing to take on, this would be considered appropriate.
In the end, the appraisal contingency is one of the more complicated parts of the real estate process - but it's also one of the more important for the protections that it offers. It's also a perfect example of why it's so important to work with a trusted real estate professional to begin with. They can help navigate the market, helping buyers to understand when and why to use things like the appraisal contingency and others. It's just another in a long line of examples of how they assist home buyers in enjoying all the benefits of this process with as few of the potential downsides as possible. If you would like to become a real estate agent , read our success stories to learn more about what the real estate career is like.
Love,
Kartik
|
Regardless of how you look at it, the real estate market in the United States has been impressive for the last several years - something that looks to continue at least for the near future. A massive shortage
Regardless of how you look at it, the real estate market in the United States has been impressive for the last several years - something that looks to continue at least for the near future. A massive shortage of inventory across the country, coupled with mortgage rates that are still at record lows, have created possibly the strongest housing market in a generation or more. Mortgage rates in particular have been on the decline since November of 2018, when they hit 4.94%. Believe it or not, that was the highest those rates had been in five years. Flash forward to January 2021 and rates had dropped to a historic low of 2.65% - contributing to a lot of the activity that we're seeing now.
But it's important to keep in mind that this is a hot sellers' market - something that not every buyer necessarily understands. The pendulum will eventually swing back the other way but it certainly hasn't yet. Because of that, there are a number of common mistakes that they often make that will fall to you as a real estate agent to help them avoid.
By far, one of the biggest mistakes that homebuyers often make in a hot market can be summed up in a single word: hesitation. To say that properties move quickly in a hot sellers' market is something of an understatement. There will be situations where properties sell before they're even officially listed. Bidding wars will break out in a matter of hours. Someone may assume that they can wait for that open house that has been scheduled in a couple of days, but the property may not actually make it that long.
All of this is why hesitation is one of the worst - and unfortunately most common - mistakes that homebuyers often make in this type of situation. Whenever you're working with a new client - especially a first-time homebuyer - you need to make sure they're aware of this reality. Let them know before you even start to show properties that they may have to make fast, firm decisions. Get them ready for the possibility that if they find a home they like, they may have to act on it extraordinarily quickly. Doing so at the beginning of the process will help avoid overwhelming them later on.
Another common mistake that a lot of homebuyers make in a hot market involves failing to look for homes that are actually within their price range. While it's absolutely fair that home values are a bit inflated right now due to the market activity, it's still critical to make sure that someone doesn't stray too far outside of their comfort zone.
Again, during the beginning of your relationship, strongly urge your clients to set a maximum amount that they feel comfortable paying. Verify that this number is realistic in any way that you can. All throughout the process, advise them to stay within their budget when looking for comparable homes. In the event that you see them start to wander and stray too far beyond this budget, remind them WHY they set a limit to begin with.
In large part due to the urgency outlined above, it can be common for homebuyers in a hot market to stumble upon a dream home that is outside their comfort zone, realize that it will be off the market shortly and act without truly thinking the situation through. In a slower market, they'd have the time to come to the realization that no, they cannot afford the property in question. That isn't necessarily always the case when things are moving as quickly as they are, which is why part of your job as an agent is to help keep people grounded and with the perspective they need to make the best decisions possible.
In the end, perhaps the most important thing to understand about all of this is that no two buyers are created in quite the same way. Some people will enter into the situation with a fairly decent understanding of what to do and how to do it when it comes to purchasing real estate. Some believe they are experts in the field and act aggressively - which is where a lot of the mistakes outlined above come from. Others get very confused and overwhelmed and become put off by the whole process altogether.
Regardless of their real estate experience, it's always up to you as the real estate agent to help guide someone to the most satisfying conclusion possible. Especially in a so-called hot market, you'll likely have to spend a lot of time early on educating your clients about the realities of what is happening and, most importantly, why. Neglecting to understand why the market is acting the way it is can often prove incredibly costly to buyers.
Ultimately, you just want what's best for your clients and they want that, too. Helping someone navigate maybe the biggest purchase they'll ever make in their lives will quickly prove that this process is very much worth the effort. Which makes your chosen profession as a real estate agent so rewarding. If you are considering getting started in the industry and would like to take the first step, you can visit and get started on your real estate pre licensing courses! If you are wondering if this profession is right for you, take the quiz: "Should I become a real estate agent?"
Love,
Kartik
|
Before making a move from one brokerage to another, be clear about your motivations and what is driving your desire to make the change. Define the work culture you want. If you prefer to work with a small
Before making a move from one brokerage to another, be clear about your motivations and what is driving your desire to make the change. Define the work culture you want. If you prefer to work with a small company with close relationships with your colleagues, you should look for a brokerage that has that kind of cultures and do research accordingly. See how each brokerage differs and go with the one that fits your needs the most.
If you want an all-business atmosphere, you’ll want to look into the brokerages that are business focused with little to no interaction between colleagues. If you like to work and just do your thing independently, find a brokerage that will fit that need and help you stay focused on business. It’s important to know how the company’s culture, values, and business approaches can affect your ability to succeed there.
An important aspect of brokerages you should consider is the leadership. You should examine the leadership at every level. What is their reputation within the industry and their organization? Ask questions like what does the new brokerage offer that will make you even more successful? Are they forward thinking? Forward-thinking business leaders don't see employees as just putting in the required hours. They see people who are essential to the success of the business. A forward thinking business leader will focus on developing the knowledge and skills of an individual and get them to a place where they can take on more responsibility and leadership roles of their own.
Business support is critical when it comes to running your real estate business. Look into the kind of business support the brokerage offers such as percentage splits, mentorship, technology, and resources. While most realtor’s want the highest pay possible, a higher percentage split should be considered, but should not be the most important decision factor. You should be satisfied with the split you are offered, and you should ask what opportunities there are to earn a higher split. When doing your research, also consider technology and how the right technology can help you. With the right technology, real estate agents can streamline their process to better serve clients. Using innovative tools and services can help you increase efficiency and gain a competitive advantage to close more deals. Email marketing platforms, CRM systems, and other apps are essential in today’s digital world.Make sure the brokerage not only offers these technology services for their agents but look into their efficiency as well.
Before interviewing brokerages, you should have a clear understanding of what kind of support will be most critical to you. What you are looking for in the new brokerage and how they can be the best support to you should be at the top of your list as you examine and compare potential brokerages Whether you are thinking about changing brokerages today or in the future, your choice should be rooted in what is best for yourself and your career. Consider how the potential brokerage can make you happier as an agent and how it can give your clients the best customer experience. Moving brokerages is a business decision and should be treated as such
Be rational and critical when thinking about this change. Do what you know is best for you and don’t let outside opinions affect your decision. Take your time and remember to ask the questions you need about the things most important to you. By keeping in mind what motivates you and the factors driving your need for change, you’ll be sure to find the right brokerage to call home for the long term.To get started on getting your real estate license click here
Love,
Kartik
|
At its core, commercial real estate is exactly what it sounds like - any property that is owned exclusively to produce an income. When people hear the term, they usually call to mind images of office buildings
At its core, commercial real estate is exactly what it sounds like - any property that is owned exclusively to produce an income. When people hear the term, they usually call to mind images of office buildings and similar structures. But really, commercial real estate can include any type of property - and even just the land itself - which has the potential to generate a return on investment on behalf of the person who owns it.
Just a few examples of this include the aforementioned office buildings, retail spaces, industrial facilities, medical and hospitality properties and any other commercial space that can be leased for the express use of the business in question. All told, commercial real estate brings with it a wide range of different benefits for investors - all of which are worth exploring.
By far, one of the biggest advantages of commercial real estate for investors comes by way of the significant cash flow opportunities these properties often bring with them. Once you purchase a commercial property and begin to rent it to tenants, you start to generate a reliable stream of rental income. You can use that money to pay down the original purchase of the property without putting out any of your own money. Not only that but once the property is paid off, that revenue becomes a largely passive form of income - particularly if you hire a third party to actually manage the day-to-day operations of it on your behalf.
If you're purchasing commercial real estate with an eye towards establishing a larger portfolio, you also get to enjoy the advantage of significant equity appreciation. As you build more and more equity in the property, its value naturally rises - allowing you to leverage it to continue to grow your own company without putting yourself in financial risk.
If this is something that you're planning on making a career out of, it also gives you an incredible amount of flexibility when the time comes that you want to retire. You can always choose to continue to own the properties to rely on that "passive" income as outlined above, or you can sell them and collect a significant amount of money to fund the lifestyle that you've always seen for yourself. The choice is yours - which is exactly why so many people do it in the first place.
Experts also agree that investing in commercial real estate is also a great way to fight off things like inflation. One recent report indicated that commercial real estate investments in the United States tend to have the highest correlation to inflation, especially when compared to other types of investments like stocks and bonds. As inflation increases, so does the price of commercial real estate - meaning that you're protecting the value of your money of the long-term, regardless of what is currently happening in the context of the larger economy.
Having said all of that, it's crucial to understand that nothing in this life is a guarantee and success in terms of commercial real estate is chief among them. No two markets operate in quite the same way, which is why you cannot assume there is a "one size fits all" approach to investing in this field properly. Before you enter the fold, you need to analyze the local market and understand current trends and progressions that may give you an indication of which investments are worth your time and which ones may not be quite as lucrative as they appear.
Likewise, long-term success with commercial real estate is always about creating as much value as possible. This means that especially during those early days, you're likely going to be taking a number of steps to improve the quality of the building to improve net operating income as a result. That means investing in more features and amenities for tenants. That means making improvements to the structure itself for the purposes of safety and desirability. The more value you can create, the more money you can generate by way of rent and lease prices.
It’s important to understand that commercial property is valued in a different way than residential property - meaning that you'll want to throw out what you think you know and learn how things really work. The income potential on a piece of commercial real estate like an office building is directly impacted by its usable square footage. With individual homes, that isn't the case. This is a big part of why investors start working with commercial properties in the first place - this different valuation simply opens the door for greater and longer cash flow over time.
For the best results, you need to create a strategy before you begin investing and stick to it as much as possible. Know what your limitations are - what you're comfortable doing and what you're not. Know where the hot properties are in the market and make an effort to understand the current market conditions and, most importantly, why they are the way they are. Know how much you can potentially make on an investment before you actually execute it. The more effort you put in at the start of this process, the greater your chances are at finding long-term success with this and other investments moving forward. To learn more about commercial real estate or a real estate school visit our website
Love,
Kartik
|
At its core, house flipping is a process in which a real estate investor purchases a particular home with the express intention of soon selling it for a profit. For a house to be considered a true "flip,"
At its core, house flipping is a process in which a real estate investor purchases a particular home with the express intention of soon selling it for a profit. For a house to be considered a true "flip," it needs to be purchased with the idea of selling it quickly - usually to capitalize on certain trends in the market at large.
House flipping has become incredibly popular over the last several years, particularly due to the potential return on investment if executed properly. In 2017, for example, one study indicated that just 5.7% of all home sales fell into this category. Flash forward just a few years to 2020 and that number had already climbed to 7.5%.
It's a process that is especially prominent in a "hot" real estate market and in areas where home prices are on the rise. Another study indicated that in 2017, the average gross profit on a flip was over $66,000 - and this is after any investments needed to make improvements on properties before they could be sold. Pittsburgh, Philadelphia, Baltimore and Cleveland were among the most popular markets during that time. But as is true with all investments, one must proceed with a certain degree of caution in order to make sure the process goes as it should. A significant ROI is never a guarantee but by keeping a few key things in mind, you can improve your chances as much as possible.
By far, the most important thing to understand about house flipping is that you need to decide how much you can afford to spend on an investment property before you actually do so.
In other words, it's a bit like gambling - never spend more money than you can afford to lose if things don't quite go your way. Again, given the uncertainty of the market and considering that there are a lot of parts of this process that are outside your control, nothing is a guarantee. Something may seem like a sure bet, but it never is - and you don't want to leave yourself disappointed or financially stretched because of a lapse in judgement.
Along the same lines, you should always focus your investment property search on various types of distressed properties that are themselves in need of major fixes and repairs. This accomplishes a few important things at the same time. First, you can usually purchase these properties at a significantly reduced cost because they've been sitting on the market for longer periods of time. Likewise, families and people who plan on buying a home to actually live there rarely want to deal with the work required to get it to a habitable condition.
But more than that, the amount of money you do pour into the home by way of fixes and repairs will increase its value significantly - meaning that you'll be able to command a premium price once you're on the other side of this process.
For the best results, select a few properties in a particular area to analyze to decide on the most profitable opportunity for a beginner real estate investor. This step is crucial, as it gives you a "bird's eye view" of what is going on in a particular area and what the long-term potential is in that market. It also helps you gain a better understanding of the highs and lows of the process, which should allow you to gain more insight into where you should be focusing your efforts and which "opportunities" aren't nearly as lucrative as they may initially appear.
You can also start building relationships with other real estate investors in the local housing market - a good idea for a few different reasons. For starters, someone who has been involved in this process for longer than you have will almost always have insight and wisdom to provide so that you don't have to make certain mistakes "the hard way." They can give you tips and outline best practices that help you get the most out of house flipping.
Beyond that, there may also come a day when one of your contacts identifies a great opportunity that they themselves cannot take advantage of. Maybe they have too many houses on the market right now and they don't want to take the chance to stretch themselves too thin - but there's nothing stopping them from picking up the phone and informing you about what they've discovered.
In the end, it's important to follow the "70% Rule" in house flipping. Essentially, this means that you should never pay more than 70% of the "after repair" value of a property (minus the costs of the repairs necessary to renovate the home, of course). This will give you an idea of the maximum amount you should spend on a home to achieve the highest possible return on investment. By using this as a general rule of thumb, it will help ensure that you always emerge with a profit - which in and of itself has always been the biggest priority.
Overall, house flipping certainly isn't for everyone - it takes a significant amount of care and attention-to-detail to get right. But those who follow best practices like those outlined above can enjoy a great amount of success - particularly in a market like the one we're in right now. To learn more about how to become a real estate agent or to learn more about real estate success stories visit our website
Love,
Kartik
|
You can finally apply for your real estate license online! It’s easy to do and you can upload all documents on the website https://secure.dre.ca.gov/elicensing/
To get started, you’ll need to create
You can finally apply for your real estate license online! It’s easy to do and you can upload all documents on the website https://secure.dre.ca.gov/elicensing/
To get started, you’ll need to create an account through e-licensing. During the
online application process you can pause at anytime and return later to pick up
where you left off.
Choose from 4 different types of applications:
Sales exam only
Sales exam and license combo
Brokers exam only
Brokers exam and license combo
Keep in mind if you apply for the exam only, you will have to go back onto the
e-licensing site to apply for your license after you pass your test.
If the application type is a combo exam and license, there will be an area for youto enter the main office address of where you will hang your license. If you do not have a designated office yet, click on the checkbox “I do not have a main office address at this time. Please issue my license in a non-working status.”
You’ll need to provide your social security number, driver’s license and proof of education which are your real estate class certificates. If you have changed your name you’ll need to provide any name change documents you have. Acceptable documents would be a marriage certificate or court order. Save all your uploaded
forms as PDF then upload.
Online payment methods accepted are:
For Credit cards
Visa, Mastercard, Amex, & Discover
For Debit cards
Visa & Mastercard
At the bottom of the page, there are two buttons. Click the “Sign and Pay” button when you are ready to submit the application to DRE. If you are not ready to submit the application, click the “Sign Later” button to return to the home page.
To check the current application processing timeframes, there is a link below the existing online applications table, which has more information, or navigate
directly to http://www.dre.ca.gov/Licensees/CurrentTimeframes.html
If you need to get started on your real estate classes here's how
Love,
Kartik
|
When you start your career as a new real estate agent you should know that you will be paid commissions on the sales of property, and you will receive a 1099 at the end of the year. 1099’s are used when
When you start your career as a new real estate agent you should know that you will be paid commissions on the sales of property, and you will receive a 1099 at the end of the year. 1099’s are used when anyone is considered self-employed or an independent contractor. Realtors are considered an independent contractor or self-employed individuals running their own businesses. As a realtor you will be affiliated with a brokerage, however, you won’t be considered a W-2 employee for that brokerage. No taxes will be paid throughout the year so it is important to understand what you can write off when it comes time to filing your taxes.
Your tax preparer will know what can and cannot be deducted but it’s important to know these things before going into this line of work so you can be prepared and keep track of your deductions from the beginning. It’s important to keep evidence of the things you are writing off in case you are audited. The most common expenses that a realtor can deduct are mileage and marketing materials. Realtors are known to drive a lot so keeping track of your mileage is a must. Any marketing materials you purchase can be written off too. Marketing and advertising materials are a common cost associated with starting out in real estate and typically continue for years to come. This can include business cards, open house signs, flyers, staging, photography, and signage. All of which can be deductible through the Internal Revenue Service’s advertising expense deduction. This is one of the best deductions because of its broad requirements!
When you first start out as a realtor, there are costs you should be aware of. After you get your license, you will then be required to join the California Association of Realtors and the National Association of Realtors. You’ll also need to pay the MLS (Multiple Listing Service) to have access to the listings and use the database. Because most listings have a lock called Supra E-Key, you’ll need to pay to have access to the Supra E-Key as well. Your brokerage may charge a desk fee and there may be other monthly dues, all of which are deductible. All these costs a realtor can write off as a business expense.
In light of recent events in the world, it’s important to consider the costs associated with maintaining a home office. With the flexibility of a realtor’s schedule and the lack of need for an office, realtors are most often operating out of their homes. Write offs associated with operating your real estate business from your home can include the cost of the phone, computer, internet, and utilities.
When you connect with clients and help them in the purchase or sale of a home, it is customary to buy gifts for your clients. Or if you are meeting a client in person for the first time, you might be meeting them for coffee or you may be out and about looking at homes with your client and take them out to eat. You should know there is a limitation to this write off. Gifts are deductible to the extent of $25 per person per year and meals are only 50% deductible. All of these are considered business related expenses and can be deductible against your income.
Once your business gets up and running you may start paying commissions to other agents or employees that work with or under you. This is a deduction you should not overlook since commissions can add up quickly!
Keep in mind that to be deductible, the expense must be directly related to your real estate business. Always check with your tax consultant and for a detailed list on tax deductions, refer to IRS Publication 535. Careful record keeping and knowing your eligible write-offs are key to getting all the tax deductions you're entitled to.If you are still considering becoming a real estate agent
Take this quiz!
Love,
Kartik
|
Homeownership is an essential part of the American Dream. Most people that are seeking to own a home turn to buying an existing home. It might not be exactly what you want, but you can see and feel it.
Homeownership is an essential part of the American Dream. Most people that are seeking to own a home turn to buying an existing home. It might not be exactly what you want, but you can see and feel it. You also have the option of building your own home. Let’s compare buying a home versus building a home.
Buying an Existing Home
Shopping for a new home can be fun and exciting as you plot the next journey in your life, but it can also be stressful. In tight markets, you must plan on bidding wars and making quick decisions. Getting pre-approved by a bank will tell you what you can afford and the type of home you can buy.
When you buy an existing home, you see exactly what you are getting. You can envision what the house will look like when you move in. Sure, you need to look past the wallpaper or outdated light fixtures, but those are cosmetic changes you can replace on your own time schedule.
After you find the house you like and agree on a price, you can expect the time it takes to close on your home to be from 30 to 60 days, depending on your bank’s mortgage approval process and the legal process in your state.
Be aware of the competition for the home you want. The better homes will sell fast, often within days of being listed for sale. If you want a move-in ready home, you need to have your paperwork in order and be ready to make an offer.
Building a Home
If the town you want to move to doesn’t have the type of home you are looking for, or you just want to build that perfect new home, then building a home is an exciting alternative. You will need to shop for a buildable lot and deal with zoning regulations, permits and contractors.
Building your own home can be an exciting process. You get to make all of those important decisions like designing the floorplan and selecting energy-efficient appliances. A good architect will guide you through the process.
This process takes time, often more than a year, from the time you purchase a lot to the time you can move in. In addition to obtaining a construction loan, you will need to obtain permits, attend hearings, hire contractors, and oversee the entire process.
It can be a challenge to build your home. You may need to deal with purchasing mistakes, poor materials, construction errors and even environmental factors like bad weather. Home construction projects often run over budget.
When deciding between buying a home or building a home, no matter what direction you take, you should obtain the advice of a licensed real estate professional who can guide you through the entire process from start to finish.To get your own real estate license start here - To take our quiz Should I become a real estate agent?
Love,
Kartik
|
Buying a home is a huge commitment – arguably, one of the biggest commitments you'll make in a lifetime. Because of this, the buying process can’t be taken lightly. Homeownership comes with many new
Buying a home is a huge commitment – arguably, one of the biggest commitments you'll make in a lifetime. Because of this, the buying process can’t be taken lightly. Homeownership comes with many new responsibilities, and finding the perfect property takes both patience and due diligence. However, if done correctly, owning a home can be both financially and personally rewarding.
Whether you’re buying your first home or your “forever” home, it’s incredibly easy to fall in love with a certain property and overlook vital details. If you’re ready to take the leap, you need to ask some key questions before buying a home.
The logical place to start in any home search is determining your budget. If you don’t consider how much you can afford independently of a mortgage company, you run the risk of taking on the maximum loan you’re approved for – whether you can actually afford that payment or not. In general, it’s smart to keep your monthly payment at or below 25 percent of your take-home pay.
While many prospective buyers are under the assumption a 20-percent down payment is required to buy a home, this is simply not the case. In fact, the average first-time buyer puts just six percent down, and certain loans require as little as zero. The right down payment for you depends on your financial situation, savings and goals. However, if you can afford it, a 20-percent down payment allows you to avoid paying for private mortgage insurance (PMI).
The down payment isn’t the only cash you’ll be spending on closing day. You’ll most likely also be responsible for closing costs, which can range from between two and five percent of your home’s purchase price. Your lender will provide you with a complete breakdown of the costs before closing day.
Keep in mind, the longer a home has been on the market, the more motivated a seller might be to make a deal. This means you may have more flexibility in the initial offer, terms, credits Keep in mind, the longer a home has been on the market, the more motivated a seller might be to make a deal. This means you may have more flexibility in the initial offer, terms, credits and more. While many homes sit on the market simply because the original listing price was too high, there are some cases where there is something drastically wrong with the home. Either way, a thorough inspection is important.
Always do your research regarding the local real estate market and recent sales in the neighborhood to help you determine if the asking price for the home you want is reasonable. This data can help you negotiate a lower offer or certain concessions, such as closing costs.
The quality of a neighborhood is one of the main reasons people choose to buy a certain home. It will also affect your ability to sell the home in the future. Because of this, it’s extremely important to research things like safety, convenience, schools and more.
Understanding a seller’s motivations for moving can give you more room for negotiation. A good buyer’s agent should be able to figure this information out and gauge how flexible the seller might be. For example, a seller relocating to a new state for a job will most likely be more motivated to negotiate than a seller simply exploring the market.
Do some research into the property’s history of insurance claims because it may affect your ability to get homeowners insurance and/or the price you’ll pay for insurance coverage. Because of this, it’s important to ask the seller for the full history of insurance claims.
Avoid taking on debt for furniture and decorations. Use what you already have, buy used and take it one room at a time. Many first-time buyers feel the need to take on another loan or more credit card debt to furnish their new place. It’s not always necessary!
Buying a home is a huge financial investment, and it is your responsibility to put in the necessary time and effort when researching potential properties. Asking the right questions and being fully prepared about the home buying process before placing an offer can save you both money and headaches down the road.
Love,
Kartik
|
Over the past year as more people have been working from home, many people are realizing their home needs are also changing. Working from home is on the rise so now is the time to reevaluate your changing
Over the past year as more people have been working from home, many people are realizing their home needs are also changing. Working from home is on the rise so now is the time to reevaluate your changing real estate needs to find the home that works best for you.
Working from Home Gives You Options and Flexibility
You may have found that working from home gives you options you didn’t have before. A majority of the workforce doesn’t need to be tied down to one specific area to do their job. These workers now have more flexibility and can pretty much live wherever they want. This means these workers can now move to a lower cost of living area or the location they have always dreamed of. You may be able to find a home in a more affordable area and get more house for your dollar. You’ll start to enjoy new benefits such as having more space and a dedicated home office. With the requirement of commuting gone, remote workers can now live in an area where they have always dreamed of vacationing, whether this is the mountains or near the beach. Relocating to a highly desired area also means you can live in an area that gives you better amenities, whether it’s the community or weather. Without a specific location for the job, the options are practically endless, and you can find your ideal spot. More people are moving away from the big cities and work centers, such as Los Angeles, Miami, Boston, New York, and San Francisco, entirely in favor of suburbs and more relaxed living. People may choose to go to communities that have a better quality of life but fewer job opportunities since they no longer must live where job opportunities are.
Flexibility Even for Part-Time Remote Workers
Some employees are now going back to the office part time, but this doesn’t mean that all flexibility is lost. Relocating within the region that gives you a better location but is a bit further away from the office can still be a good choice. You may have a longer commute, but you won’t be going into the office every day.The longer commute could be worth it to have a home with more comforts,space, or features. If you are going to be working from home, then finding a home that better suits your needs can be a priority.
Having a Home Office
Whether you are home part time or full time, having a home office is a necessity.Working from home has people recreating rooms in their homes to be used as office space. Some are looking to sell and buy homes with offices already in their new homes. Most people are seeing this as an opportunity to get the house they have always wanted so you can work comfortably from your home and still have a work life balance.
Love,
Kartik
|
In a host of different ways, real estate is a truly great business to get into. Not only does it bring with it the potential to make a significant amount of money, but it also offers flexibility and the
In a host of different ways, real estate is a truly great business to get into. Not only does it bring with it the potential to make a significant amount of money, but it also offers flexibility and the power to be your own boss. But before you decide to get started with your own career in the industry, try taking this quiz, "Should I become a real estate agent?" Do your research and know that there are a few important things to keep in mind.
The Ins and Outs of Being a Real Estate Agent: Your Guide
By far, the most important thing you need to understand about being a real estate agent is that it takes a tremendous amount of time to be successful.
Building your business takes time and consistency. It takes time to build your clientele. Direct mail marketing is a good way to market your business by mailing out direct mail marketing materials to let people know what is going on the local market and that now might be a good time to sell. Let people know who you are, what your focus is and how you can help them. Consistently build your outreach efforts to get your name in front of as many people as possible. By being consistent with this method, you will eventually find a buyer or seller who will become your client!
Likewise, you need to be aware that you can't just wake up one morning and declare yourself a realtor - before you get started you are required to take a wide range of different courses and you'll have to take the state exam. But beyond that, understand that all of those governing laws change on a regular basis - which is why it takes continuing education courses to actually keep your license.
In a general sense, one of the most critical things to understand about a career in real estate is that real estate agents do not get regular paychecks. You would think that people would know that by now, but you'd be surprised by how many people are shocked to hear this.
Real estate is a commission-based enterprise, meaning that the more you work, the more you make. You make more money on more expensive homes, and so on and so forth. But the reverse is also true - if you have a particularly slow period where you're not selling (or helping to buy) any homes at all, you're not generating income during that time.
This can be a difficult thing for people to wrap their heads around, which is why you need to make a business plan and stick with it. Based on your personal financial goals and business expenses, sit down, and calculate exactly how much money you need to make during a given period. With that, you can reverse engineer the total number of transactions that you need to be involved in to meet that goal. That will tell you how many new leads you need to generate on a monthly basis, which in turn will give you a good indication of what you need to be doing every day.
Yes, it's true that there is the potential to make seven figures in real estate. People do it all the time. But it's hardly a passive form of income - meaning that if you want to get to that level, you're going to have to work for it.
Finally, understand that real estate agents work long hours and irregular days - meaning that if you're coming into the business looking for something like a more traditional "9 to 5" experience, you'll likely want to look elsewhere. Oftentimes you'll need to show homes on nights and weekends. You might put in 12 hours or more one day trying to get a home ready for showing. But as stated, the earning potential is incredibly so if you're able to be successful, the effort will be more than worth it.
In the end, there will always be a need to buy and sell real estate - meaning that there will always be a need for real estate agents. The market goes up and down and some periods will be more fertile than others, but if you truly understand trends and "get" how the local market works, you can find a tremendous amount of success in the field.
If you approach your real estate career by having realistic expectations and a good understanding of what you need to accomplish your goals, there is truly no limit to what you can accomplish.
If you want to become a real estate agent, see these motivational success stories from top realtors
Love,
Kartik
|
Great Ideas to Help You Maintain Client Relationships in Real Estate
Almost more than in any other industry, people tend to come into the world of real estate with many pre-conceived notions about what
Great Ideas to Help You Maintain Client Relationships in Real Estate
Almost more than in any other industry, people tend to come into the world of real estate with many pre-conceived notions about what their day-to-day jobs will be like - and which factors are truly important.
Yes, you're helping someone navigate a massive financial purchase - certainly one of the biggest they're likely to make in their entire lives. If you're helping someone sell a home, you're going a long way towards assisting them when it comes to securing their financial future. If you're helping them buy a home, you're potentially allowing them to start a family in a wonderful new place, or to finally begin to build that life they've always seen for themselves. All of this is true.
But a career as a realtor is also about so much more than that. If nothing else, real estate is a business of working with people.
Therefore, more than even an individual sale or a particularly successful quarter, success in terms of real estate will depend on your ability to build relationships. It's crucial to know how to set up and maintain a good foundation with your clients, as the more you do this the more likely it is that you'll have a steady stream of new people coming right to your door.
Building Relationships in Real Estate: Your Overview
By far, one of the best ways to build stronger, longer lasting relationships with your customers involves understanding that listening is a fundamental part of creating a good working client experience.
If you come into a situation and try to cram someone into a "one size fits all" box when it comes to looking for a new home, they're going to start to see you as cold and cynical - because that's exactly what you'll be. People will quickly pick up on the fact that you're not really trying to help them accomplish their goals because you're unconcerned with their wants and needs to begin with.
Instead, you need to ask the right questions and, above all else, listen to the answers. Why is someone looking for a home? What features are important to them and why? Where do they see themselves in five years? Ten years? Are they planning on starting a family at some point in the future?
Along the same lines, open communication is key when it comes to working with clients. If you take someone to a home and they decide they don't like it, don't just rush them along to the next one. Have a conversation with them and figure out what they didn't like and, more importantly, why. Talk about their goals and create an environment where they feel comfortable coming to you with questions, concerns, and advice.
Again - talk with your clients about more personal areas of their lives, such as their family and hobbies, to create a rapport and connection. Let them know that you see them as more than just another client.Never forget that people come to real estate agents because they need legitimate help and guidance. They're often feeling overwhelmed and have more questions than they know how to answer. By taking the time to talk with them and establish that connection, you'll build a tremendous amount of trust and loyalty as a result.
Finally, consider the fact that a meaningful way to express your appreciation and leave a lasting impression is with gift giving. This is especially true of clients that you've already worked with, as you always want to remain at the forefront of their mind.
When Thanksgiving rolls around this year, you could have a promotion where all your past and current clients can stop by the office to pick up a free pumpkin pie. If you know that one of your older clients is having a birthday, feel free to pop a card in the mail. Things like this are small gestures, but they do go an incredibly long way towards making people feel appreciated - which is how relationships are grown and maintained.
In the end, understand that the quality of your business is directly tied to the quality of the relationships that you're able to build with those around you. This is another one of those reasons why most experts recommend picking out a niche and sticking with it. If you choose to "farm" a particular geographic area - particularly one that you're already familiar with - you put yourself in a much better position to bring as much value to people's lives as possible.
Then, with each successful transaction, something magical happens. People see that you're every bit as invested in their success as you are. They see that you're willing to go above and beyond to help them accomplish their goals. They see you as a true partner in every sense of the term - which truly is the target you should be trying to hit, day in and day out.
An important part of maintaining relationships in real estate is reminding people that you're out there, to learn about the types of email campaigns to send to past and present clients click here
Love,
Kartik
|
One of the most important things to understand about being a realtor is that you're never "just selling a house." Sure, on the surface, that's literally what you're doing. But you're also pitching something
One of the most important things to understand about being a realtor is that you're never "just selling a house." Sure, on the surface, that's literally what you're doing. But you're also pitching something so much more important:
Your personal brand.
People aren't going to come to you to buy or sell a home out of the kindness of their heart. They're going to do so because they trust you. Because they consider you an authority. Because they believe you have the skills, the knowledge and the expertise necessary to get them whatever outcome they see for themselves.
To put it mildly, you're not going to be able to get to this point overnight. As the old saying goes,"Rome wasn't built in a day."
That, in essence, is why open house marketing is so important. Over the short-term, it's a great way to help move whatever piece of property you're working with at the moment. In the long run, however, it's also an invaluable way to help show as many people as possible that you have what it takes to succeed - especially during your first year on the job.
The Importance of Open House Marketing in Real Estate: Your Overview
By far, one of the biggest reasons why open house marketing is so essential to new agents in particular is because it gives them a powerful opportunity to learn as they go.
When you walk into your first open house, you're probably going to be a little bit nervous. You're going to be interacting with members of the public and giving people personalized tours of a space. The chances are incredibly high that you're going to make mistakes with your presentation - and open house marketing gives you a chance to make them over and over again.
Now, that may sound scary - but it really isn't. Every mistake that you make is a learning opportunity, and the more you realize how to personalize the experience for the people standing in front of you, the better you get at it over time. Over the course of a day or two you'll probably walk dozens of people through that house and you'll get an invaluable opportunity to refine your process every time. You'll start to get a better sense of what they like and what they don't, and how to play to those strengths in an effective way.
Simply put, you'll get better at the gig the more you do it - and open house marketing allows you to do so as quickly as possible.
From an actual marketing perspective, open houses also allow you to build a brand that lasts. The more people see your name, the more likely they are to remember it. You'll begin to take marketing more seriously than ever, which is a big part of how real estate agents carve out a niche for themselves in a particular demographic area.
As you start to see the return on your investment - meaning as you start to see more people responding to your marketing collateral and walking through those doors - you'll be in a better position to take marketing seriously. That in and of itself may be the most important benefit of all.
The Investments of Marketing
In an effort to get as many people to that next open house as possible, there are a few key techniques that you should definitely lean into.
For starters, there are apps that are available to help with open house marketing right now in both the iTunes and Android app stores. Especially in a market as "hot" as the current one, people are always looking for great new homes in their area and if they're ready to buy, they typically want to move fast.
Therefore, by posting your listings and contact information on these apps, you're more likely to attract the right kind of attention as quickly as humanly possible.
Beyond that, you should absolutely use social media to spread the word about your next open house far and wide. Take to Facebook and Twitter and pay attention to the types of hashtags that are being used in the real estate industry. Make a post letting people know where the open house is, when it's taking place and other relevant information. Continue to post in the days leading up to the event.
Likewise, if you see someone post on social media that they're looking for a new home in a particular area, don't be afraid to send them a message and let them know what you have coming up. They may not necessarily be interested, but they'll immediately become aware - and all of their other followers will, too.
In the end, gaining clients with these open house marketing tactics is a fine line to walk - but it's very much possible. Resist the urge to include every last detail about the property - that's what the open house is for. You don't want to offer too many photos or too much information to the point where someone thinks "no, that's not for me." You want them to be enticed to the point where even if they're not sure, they still want to stop by the place and take a look around.
If you're able to get to that point, you'll have a steady stream of new leads walking right through the door - which in and of itself is the point.
Love,
Kartik
|
One of the most crucial things to understand about lead generation in the real estate industry is that it's both slightly easier and slightly more difficult than you think.
For those unfamiliar, lead
One of the most crucial things to understand about lead generation in the real estate industry is that it's both slightly easier and slightly more difficult than you think.
For those unfamiliar, lead generation is a term used to describe how you not only attract the attention of potential buyers and sellers - but how you also convert them into actual, legitimate clients. In other words, you're trying to reach out to people who are interested in buying or selling a home to let them know that you're out there and that you can help.
The reason why this process is slightly easier than you likely think it is has to do with the fact that there are many, many opportunities to generate leads - especially in a market like this one. The reason why it's also slightly harder is because it takes a great deal of effort to actually do this properly
You need to be willing to put the time in and execute your lead generation strategy in a consistent way. You need to understand what goals you're working towards and how many leads you need to get there. You need to know where your ideal clients are spending their time, along with what they need to hear and how they need to hear it.
Getting to this point is entirely possible, even as a new realtor in your first year. It does, however, require you to keep a few key things in mind along the way.
What You Need to Know About Real Estate Lead Generation
By far, the most important thing to be aware of when it comes to real estate lead generation is that you need to be as specific with your own personal goals as possible.
If you became a realtor for the express reason of "I want to become the most famous and most successful agent around"... well, you're going to need to be a bit more detailed than that.
Think about the financial goals that you have for your own business, especially within the context of the next year. How much do you want to be able to grow? How much money do you want to make? How much money do you actually need to handle things like marketing and potentially even renting a space of your own (if that applies to your situation)?
The answers to questions like these need to inform absolutely everything you're doing, because you can use them to work your way backwards to the exact number of leads you need to be able to generate.
Once you know that number, you can track your progress throughout the year to make sure that you're still on schedule. You'll be better informed as to whether or not your marketing efforts are actually working, and you can ramp up or ramp down as needed. But you can't get to this point without knowing what your financial goals are in the first place, which is why you need to decide on them (or let fate decide on them for you) as soon as possible
There are many tools online that you can use to make this part of the process easier - with income and lead calculators being chief among them. They're often free, simple tools that allow you to specify how much money you want to make over the next year, at which point they'll tell you exactly how many leads you need to score.
You can input how much you want to make in commissions, the current number of leads you're generating per month, and even the average price of a home in your particular area. Some even factor in additional elements like the average percent of the commissions you're making, along with your own personal average close rate.
After including all of that information, the tool will spit out everything you need to know including the number of homes you actually have to sell, the total number of leads you'll need to generate to get to that point, and the average number of leads in a month you should be getting. It's a great way to contextualize your larger goals against all of the hard work you're doing.
Beyond that, a critical part of the process also involves knowing where you'll generate those leads from - something that will vary depending on your situation. For a new agent who has only just gotten your foot through the door in the local area, you'll probably want to use a service like Vulcan7. It bills itself as the "most accurate and effective real estate seller leads resource" that is available to prospect expired, FSBO and FRBO leads in your area.
You'll also want to immediately begin forming relationships with a lot of the other people who will be involved in real estate transactions that you're likely to be a part of in the future. Don't be afraid to make friends with people at local title companies, for example.
You should also begin a social media presence and scour sites like Facebook and Twitter for potential clients. Also, send out direct mail collateral to people in your area to let them know who you are, what you do and why they should be paying attention.
In the end, real estate lead generation isn't something you "do once and forget about." It's something that will require consistent effort over time. Soon, though, your effort will begin to generate its own momentum - and that is a very exciting position for any agent to be in.
Love,
Kartik
|
By far, one of the most common misconceptions that new agents make when entering the real estate industry has to do with the assumption that they need to be targeting the widest possible audience of
By far, one of the most common misconceptions that new agents make when entering the real estate industry has to do with the assumption that they need to be targeting the widest possible audience of potential buyers and sellers at all times.
There may have been a time when this was true - but it has long since ended.
Instead, success involves targeting the right audience with the right message at exactly the right time - which is what building a niche in real estate is all about.
Rather than assuming that you're speaking to "anyone and everyone," you need to develop a niche - meaning a specialty in your business - and use it to gain leads. Once you've decided on this niche, it should inform a large part of most of your daily activities.
Thankfully, getting to this point is a lot more straightforward than most people assume it to be. It simply requires you to keep a number of key things in mind along the way.
Developing a Niche in Real Estate: Your Guide
For most new agents in particular, one of the best ways to develop a niche in real estate and gain leads involves specializing in a certain neighborhood.
This could be an area that you're already familiar with, or one that doesn't have too much competition from other agents. Regardless, you need to pick a location and become a subject matter expert in it as soon as you're able to.
Research absolutely everything you can about this particular area. Off the top of your head you should be able to quote the prices that recent homes have sold for. You should know what types of homes are in the area and what their distinctive features are. You should be able to talk about local features and points of attractions, like the quality of the schools and the distance to interesting entertainment venues.
In other words, you need to know this area as well as you possibly can - all so that you can establish yourself as a legitimate authority and build as much trust as possible at the exact same time.
Obviously, getting to this level of knowledge isn't something that is going to happen overnight. It's going to take a significant amount of hard work and dedication. But when you consider that you'll quickly start to build a reputation for yourself as a real estate agent worth paying attention to, all of that effort will be more than worth it.
Once you've honed your specialization in a certain neighborhood, you can focus on the next most important part of building a niche in real estate: marketing.
Again, you should focus your marketing efforts on a specific group - meaning people who are A) already looking to buy or sell, or who B) may be open to the idea within the next year or so.
At a bare minimum, you should send out marketing collateral introducing yourself and letting people know a little bit about who you are and what you do. This doesn't necessarily have to mean that you're "selling anything" - really, you want people to know your name and you want to pop up on their radar.
Over time, you can expand your offers in a variety of strategic ways to continue to stay at the top of their minds. Whenever a home sells in the area, use it as an opportunity to send an email (or consider using direct mail) letting people know about it. If there are any interesting market trends that you feel people need to be aware of, send them information about it and provide your own unique perspective. Even holidays can be a great opportunity to just send out mailers, wish people a wonderful season, and remind them that you're out there.
The more often you're able to do this, the more likely it is that you'll begin to develop your reputation as the go-to realtor in the area. If someone decides that they want to sell their home, the chances are high that the first person they call is you. Even if people aren't ready to buy or sell today, they'll remember you so that when that day does come, they pick up the phone and give you a call. They'll likely also recommend you to friends and family members who they know are interested in beginning this process.
Beyond that, you'll always want to develop your specialty as much as possible. There's more than enough room in the real estate industry for everyone - you just have to find your own special corner and capitalize on it at your earliest opportunity. Some people choose to build their niche around the purchase of historic properties, for example - something that there are certainly a lot of in California. Others choose to focus on luxury properties, or condos.
Others still choose to focus on distressed properties that can be quickly sold to development companies. Vacation properties, senior homes, it doesn't matter what you choose so long as you make a selection and commit to it.
In the end, building a niche in real estate isn't just a great way to get your career started. It's also a way to gain leads and develop a steady, reliable stream of business for yourself - which in and of itself may be the most important benefit of all.
Love,
Kartik
|
According to one recent study, California home prices saw a major increase of 20% in April of 2021 - shattering another already impressive record and reflecting the incredible surge of activity in the
According to one recent study, California home prices saw a major increase of 20% in April of 2021 - shattering another already impressive record and reflecting the incredible surge of activity in the market over the last two years.
In Southern California in particular, prices hit an all-time high of $655,000. Not only is that an enormous 20.2% increase over 2020, but it's also approximately $25,000 higher than the price record that was set just one month prior, in March.
The Factors That Impact Home Price Appreciation: An Overview
But the strength of the market isn't the only thing having a significant impact on home price appreciation - far from it. Equally important is the growing net worth of the homeowners themselves.
"Net worth" is a term used to describe the total value of all of a person's assets, minus the value of all of their debts and various financial liabilities. It's an important number to know, as it's a quick way to truly understand someone's larger financial health.
It's also important to understand within the context of real estate, because the average net worth of homeowners tends to be dramatically higher than people who are renting. According to one recent study in 2019 the average net worth of people who owned homes was literally 40 times higher than those of renters. Those who fell into the former category had a median net worth of $255,000, while those who fell into the latter had a median net worth of only $6,300. As expected, this is a financial gap that has only been getting more significant since the onset of the Great Recession more than a decade ago.
But if you understand how real estate works, this actually makes a great deal of sense. Someone's home tends to be their primary source of wealth. As average home values skyrocket and houses continue to appreciate, their wealth goes up. You don't get to enjoy the same benefits if you're living in someplace like an apartment, for example.
Another important idea to understand has to do with the fact that home price appreciation and home equity are directly linked. Home equity is described as the total value of someone's interest in their current home. One of the fastest ways to build equity is to make the largest down payment that you can. If you make a down payment of over 20% (assuming you're financially able to do so), it will instantly offer more equity than it would if you had made a smaller payment.
The vast majority of all people don't purchase homes in cash - they get the necessary funds via a mortgage loan. When that loan originally begins, the financial institution who gave it to you has a much larger interest in your home than you do. But as you continue to make payments, your interest goes up while the bank's goes down until the loan has been paid off. Therefore, another way to look at home equity would be to say that it's the part of your home that you actually own - meaning a financial representation of what you've already paid off on the original loan.
Additional Considerations About Home Value Appreciation
Of course, real estate is a complicated topic - and home value appreciation is no exception. While the factors outlined above are certainly important, there are a number of others that will directly impact a home's price appreciation, too.
One of these are the neighborhood comps - something that a lot of homeowners in California are benefiting from right now. When similar homes in a neighborhood sell - meaning ones with similar floor plans, features or other qualities - that can absolutely cause a home to appreciate much faster. Because the real estate market across the country is so hot right now, a lot of people are finding that their homes are growing in value much faster than they otherwise would have had things been more stagnant.
Location is also another factor that impacts home price appreciation. The quality of the local school district, the total number of desirable employment opportunities, and even the distance to points of attraction like shopping or entertainment venues can all make a home's value increase.
Finally, any upgrades or updates that have been made to a home can also cause the value to appreciate. This is especially true in older homes that may have already had outdated features.
If you own a home in Los Angeles with a current estimated value of between $150,000 and $250,000, for example, choosing to remodel your kitchen could add between $19,000 and $23,000 to the value of your home immediately after the project is completed. Adding a bedroom could add between $8,000 and $10,000, and even adding just a full bathroom could add between $1,900 and $2,300. Obviously, how much value certain upgrades will add depends largely on the area of the country where you live.
In the end, understand that home price appreciation is still somewhat at the mercy of the local market. If someone is buying in a buyer's market, they'll be able to negotiate on the price of a home far easier than they would if it were a seller's market for obvious reasons. But the good news is that in California in particular, home prices are expected to continue appreciating for the foreseeable future - a trend that shows absolutely no signs of slowing down anytime soon.
Love,
Kartik
|
The real estate business is not only competitive for buyers and sellers, but also for real estate agents. Your business thrives on constantly bringing in new clients to fulfill their home dreams. Yet
The real estate business is not only competitive for buyers and sellers, but also for real estate agents. Your business thrives on constantly bringing in new clients to fulfill their home dreams. Yet what you wear can have a significant impact on whether the client wants to work with you or if they move on to the next firm.
One of the interesting things about the real estate business is that many agents believe anything goes when it comes to dress attire because this is their chosen career. Since they may work for themselves instead of with a brokerage that has a dress code, they believe that their dress decisions should only matter to them. This factor may often lead to them wearing things that may turn off buyers or sellers, such as see-through clothing, over-gaudy jewelry, or even tacky shorts.
However, your dress attire will be the first impression that buyers and sellers get about how knowledgeable and professional you will be with your services. Clients know that they could be working with you for several months. They do not want to have the impression that you do not want to take the job seriously, or that you may be so new to the real estate industry that you won't quite know how to handle negotiations or closings. Find out what the appropriate dress is that you may want to stick to when working as a real estate agent.
One Size Does Not Fit All
The good thing is that you do not have to stick to the strict cookie-cutter business suits and dresses, unless that is what you desire. There is no one-size-fits-all when it comes to what to wear in this profession because buying and selling buildings are not restricted to corporate developers or big city Realtors. No client would expect their real estate agent to show up to the beach wearing a three-piece suit or selling a ranch while wearing oxfords as you step around the livestock.
Think About the Region
Certain regions have a particular type of clothing trend that is popular to that area. Straying from this trend can often make real estate agents stick out in a negative fashion, as if they are someone new who is just muscling into the real estate game in that location. For metropolitan areas, a more formal business attire would be expected when working with clients interested in hi-rise apartments or commercial spaces. In more rural towns where everyone basically knows just about every neighbor by their first name, a more casual attire would be expected.
Think About Your Clientele
Based on the types of real estate that you work with, you may have clients of a specific demographic, such as families, retirees, empty nesters, and young couples. Some demographics may be a bit more lenient when it comes to the attire you pick. Others, such as older clients, can expect a more formal business attire. For families, they may look toward semi-formal to business casual. Consider the clientele so you can make the best first impression possible while developing a loyal customer base.
Clothing to Avoid
While you should dress in such a way as how you want to portray yourself as a real estate agent, there are usually a few pieces of clothing that should strictly only be worn during personal hours. Some clothing not to wear as a real estate agent includes:
• see-through clothing
• ripped jeans
• workout clothes
• graphic t-shirts
• short shirts that show the midriff
• tube tops
• shorts
• tight-fitting clothing
• miniskirts
• hats
It can be left to debate on whether some of these items can be worn for real estate work, such as wearing a graphic t-shirt with the name of the real estate firm on it. While this may be acceptable in certain circumstances, always remember that you do not want to cause any friction with a client who may not want to see certain graphics. For example, you may want to show team spirit by wearing a t-shirt of your favorite sports team. But if the client roots for an opposing team, this can sometimes create bad vibes at the first meeting.
Dress to Impress
You cannot go wrong with dressing to impress your clients. If you are working at a firm, ask the managers and coworkers about the best attire to wear when meeting clients inside and outside the office. Then consider the location, regional dress trends, customer demographic and your personal branding as factors when choosing the appropriate attire. You are sure to come up with your go-to real estate clothes that will help you find the perfect clients and professionally close deals while you become the top real estate agent in the country. To read real estate success stories from some of the top real estate agents click here If you are inspired to become a real estate agent visit our website or give us a call!
Love,
Kartik subramaniam
|
So you finished real estate classes, you’ve chosen a broker to work with, you’re sitting at your desk and thinking: Now what? to buy a home right now. Sure, they know that they want to and that
So you finished real estate classes, you’ve chosen a broker to work with, you’re sitting at your desk and thinking: Now what? to buy a home right now. Sure, they know that they want to and that special day may very well be on the horizon. But they could also be waiting for a job transfer to come through, or for more savings to hit their account. They could even be trying to improve their credit - a process that certainly isn't going to happen overnight.
For most of the students that go through our real estate school, the potential for unlimited income played a large role in the decision to get licensed. Truly, there is no limit to how much you can earn thanks to the commission-based structure that the real estate industry provides. This, coupled with the fact that real estate agents can set their own schedules and the added satisfaction that comes with helping people achieve their dreams of homeownership, creates something of a perfect storm in the best possible way.
But at the same time, the chasm between becoming a Realtor and becoming a successful Realtor is a deep one, indeed. Rising to the status of the latter is something that takes an incredible amount of hard work and perseverance - often more than people are expecting when they begin their first day on the job in real estate.
In fact, the first 30 days as a real estate agent are critical for setting the tone for everything that transpires afterwards. Because of that, making sure that your career launches properly is mission critical to your long-term success in our business.
TL/DR - What you should expect in your first 30 days:
1. Join the Association of Realtors
2. Get MLS access
3. Get your eKey
4. Tell your friends and family that you’re in the business
5. Update all your social media
6. Preview at least 5 properties a day for at least the first 30 days
Getting the logistical stuff squared away
Standing up the logistical tools needed to get your real estate career started might seem obvious but they are worth mentioning. Simple items like ordering your business cards, getting your Board dues paid, making sure you have MLS access and Zipforms should be done in the first week at most.
Some companies may hold your hand through this process of onboarding but many real estate companies have so many new hires that these items could slip through the cracks. Take things into your own hands if needed and get them done quickly.
You also will want to write a professional bio, get your headshot done, as well as update all your social media profiles. Registering and creating profiles on sites like Zillow, Yelp, LinkedIn and Facebook won’t take long but they need to be done. If someone should Google your name, you want the first thing to come up to be a professional bio (complete with that previously mentioned headshot) to instantly give off the impression that you mean business and have social proof that you’re in the game.
I’d also recommend gathering the names, addresses, emails and other bits of contact information of everyone you know - this will act as the new sphere of influence that you will slowly build from over time.
Once that database is complete, you'll want to create a short letter or email to send out to every last name on it. The goal is simple: you want to let as many people know that you're now in the real estate profession and it isn’t just a hobby. Unless you hit this list, you’ll never know whether they're looking for a house right now or whether they're considering selling at some point in the future. The worst feeling is seeing one of your friends post on social media that they are selling or buying and would have done the deal with you had they known you were an agent.
This is also the period when you'll want to make an effort to truly understand your market. There are a lot of real estate agents who know how to help someone buy or sell a home. The key to your competitive advantage will be your ability to do so better than anyone else and become the local real estate expert in your community - which is why you need to do research, and lots of it.
Venture out into the area and show yourself around a few homes on the market. Test out that eKey, get comfortable with the process. Drive by homes that are for sale in your MLS. Not only will this help you get more familiar with the area you'll be operating in, but it'll also help you get more comfortable with the very process itself.
Speaking of the MLS, use the first 30 days as an opportunity to run real estate market reports to make sure you're aware of all current market conditions. At any given moment you should know how fast homes are selling, the average prices they're going for, the list-to-sales price ratios and more. You could also consider offering free home valuation reports to all of your friends, to both get comfortable with the process and to show as many people as possible how serious you are about your new career.
Networking and Beyond
Your first month as a Realtor will also be one where networking with other agents is critically important. Plan on attending every open house that you can and preview plenty of properties listed by other agents. Ask to shadow a seasoned veteran for a day. It doesn't matter - connect with as many people as possible, because you never know who will be able to help.
You should also draft a business plan to set some straightforward goals (not to mention a budget) for your first 90 days and beyond. Make an effort to set realistic goals for each week over the next few months, both to make sure that you're always moving in the right direction and so that you avoid feeling too overwhelmed.
Finally, you need to understand that even beyond your first 30 days, you need to take advantage of every opportunity to learn and grow as a real estate professional. Take classes with your local Association of Realtors. Determine and understand what your unique selling proposition is and be able to communicate why someone should care about it. Attend any new agent orientations you can find. Review as many real estate contracts as you can get your hands on and write some of your own. I remember when I was just starting in the industry, I would draft purchase contracts on random houses at night just so that I could learn the contract.
If you're able to find time for all of the above, you'll have done more than just make excellent use of your first 30 days. You'll have created a rock-solid foundation that the rest of your career will be built upon.
For more resources to help in your first 30 days see blog
Good luck!
Love,
Kartik
|
As a real estate agent, one of the most important things for you to prepare yourself for is the inevitability of coming across a client who isn't quite ready to buy a home right now. Sure, they
As a real estate agent, one of the most important things for you to prepare yourself for is the inevitability of coming across a client who isn't quite ready to buy a home right now. Sure, they know that they want to and that special day may very well be on the horizon. But they could also be waiting for a job transfer to come through, or for more savings to hit their account. They could even be trying to improve their credit - a process that certainly isn't going to happen overnight.
Regardless, that doesn't mean that you don't still have an important role to play in their lives. If you really want to prepare your long term buyers for their next big home purchase, there are a number of things you'll want to keep in mind.
1. Advise Them to Postpone Large Purchases
By far, one of the most important things you should advise your long term buyers on is the fact that they should hold off on making any large purchases for the foreseeable future. This means that if you hear that they're thinking of running out and buying a car, or are financing large amounts of furniture (they are getting excited about the prospect of moving into a brand new home, after all), you'll definitely want to get them to think again.
Large purchases can absolutely impact someone's credit, and not necessarily in the way that they need right now. There are few things more important than buying a new home, so make sure that this is where their priorities are for the time being.
2. Encourage Them to Pay Their Bills On-Time
Likewise, you'll want to make sure that they know they need to continue to pay all of their bills on-time. Again, missed payments can absolutely have a negative impact on their credit and most people would be surprised just how easy it is for issues like this to delay the home purchasing process - or in some cases, make it outright impossible. In the event that they do feel like they're about to miss a payment, encourage them to reach out to their creditors to see if something can be worked out. This isn't necessarily always going to be possible, and someone's ability to do this will be impacted by their previous relationship with that creditor. But they should at the very least try something to avoid this type of black mark on their credit.
3. Have Them Hold Off on Making Large Bank Withdrawals
Along the same lines, they also need to be aware that they should not make any large withdrawals at all - or even make any large, unsourced deposits to their bank accounts. During the home purchasing process, mortgage lenders will go over nearly every nook and cranny of someone's financial history with a fine-toothed comb. If they see anything that is suspect - or anything that gives credence to the idea that they may not be as responsible as they should be, they can absolutely use that as justification to deny a mortgage application. This could take them out of the running for that home of their dreams before they even realize it, so make sure that they're crystal clear on the subject.
4. Avoid Applying for New Credit
Finally, you need to make sure that they are aware that they should not apply for any new credit at all. This means not only resisting the urge to sign up for new credit cards, but also avoiding financing any large purchases. Also be sure to ask if they're on any recurring payment plan with their phone carrier, with the iPhone Upgrade Program being one prominent example. These programs allow people to automatically upgrade to a new smartphone every year, which is great - but the iPhone Upgrade Program in particular may do a "soft pull" of someone's credit every time that upgrade happens. This, too, could cause a negative impact on theircredit at the worst possible moment so these are the types of things that should be avoided at all costs.
Remember to Stay in Touch With Your Long-Term Buyers
All told, as an agent you should continue to stay in touch with the buyer on a regular basis. At a bare minimum, be sure to put them on an MLS drip system where properties that come onto the market that match their needs get automatically sent to them. This will be a great way to keep them informed, stay at the top of their mind and make sure that when the day does come for them to make that home purchase, yours is the first number they call.
In the end, just keep in mind that not every buyer is going to be ready to jump at the next available property the moment you contact them. You'll have a lot of potential clients who fall into that category, but you're also going to have a large number that aren't quite ready either. More than anything, the ability to follow up and stay in communication with them is going to not only make your life easier, but it will also go a long way towards helping you convert more of your long term buyers in the future.
Love,
Kartik
|
As a new real estate agent, making the right first impression is critical . Details matter. That includes the way you look, your approach, and your personality. It also relates back to the type of
As a new real estate agent, making the right first impression is critical . Details matter. That includes the way you look, your approach, and your personality. It also relates back to the type of image you portray with your vehicle.
Why Your Vehicle Matters
First impressions matter to home buyers and sellers. They want to know that the person they are working with is successful, even if they are brand new. Having a car that is both functional and impressive enough is a key part of the process. Since most real estate agents will help buyers see a variety of homes often by driving them around, this can be an important decision to make. To be clear, packing everyone into the same car while COVID rages probably isn’t the wisest decision, however, COVID will be behind us and it will be back to business as usual.
Most agents aim to find some balance between their image and the relatability of the vehicle. That is, while you want to have a nice and comfortable vehicle, you do not want something that’s too flashy that could scare away some of your most likely buyers. How do you do that?
What Every Real Estate Agent’s Car Should Have
One of the first things to start with is the basics. There are some features that are critical that every vehicle has. These make a difference in the type of experience the buyer and seller may have. Some key starting points include the following:
Air Conditioning: Comfort matters. You want to be sure that anyone that is in your vehicle is comfortable. A nice feature to have is adjustable cooling for the backseat. That helps your buyers to be able to control their heating and cooling to find the right temperature of comfort. It helps keep them happy on a hot day.
Radio: It’s a good idea to have a reliable radio. You may not need surround sound and top-of-the-line speakers, though. It is a good idea to have some music playing in the background when you pick up your buyers. When it is silent in the car, people feel uncomfortable. A big part of what you are doing now is keeping everyone enjoying the experience. You may even want to create a playlist for your car that is upbeat, positive music.
4 Doors: There’s no situation in which your buyers want to try to climb out of the backseat of a car. More so, it should be a roomy enough backseat that they are able to sit comfortably even if they are a bit taller or need more room. Be sure to choose a four-door vehicle that’s designed to accommodate your needs outside of work, too.
Clean: Perhaps the most important part of your vehicle is how clean it is. People who are stepping into your vehicle expect it to be comfortable and sanitary. This is very important, especially in a pandemic world. If you are buying a car then, be sure to look for features that make it easy to keep clean. That may include leather or leather-like material. If you can choose a vehicle that has easy-to-remove or clean carpeting, that can help as well. Keep it litter free as well.
What Kind of Car Should I Drive?
New real estate agents are often overwhelmed by this decision. It does not
have to be a complex process, though. You want to provide a positive
experience for your buyers. They do not expect a top of the line vehicle, but
they want something reliable.
There is no benefit to you, especially as you are just starting, to have a too expensive car. If it has features that make a difference to you, such as a navigation system, that’s great. If not, you still have your smartphone you can use to help with getting around. What’s most important is not to overspend at the beginning of your career and to choose a car that fits into your budget as a new real estate agent . Over time, you can upgrade as you see fit.
Choose a car that is not going to break the bank. It’s okay to buy a car that fits your personal needs, too, especially since most agents will use their car for this as well. Take the time to find a car that fits your personality and your client’s most likely needs. Then, be sure to take care of it to keep it looking sharp.
Love,
Kartik
|
As we move deeper into 2021, home design trends are predicted to be rather bold and personalized. This makes sense after the nation has been spending so much time at home. More and more people are
As we move deeper into 2021, home design trends are predicted to be rather bold and personalized. This makes sense after the nation has been spending so much time at home. More and more people are becoming attuned to their daily surroundings, noticing the nuances that add character and taking joy in some of the simpler pleasures. We'll look at what's on its way out and what everyone is making room for.
Interior Design Trends Going Away in 2021
Modern farmhouses, white kitchens, fast furniture, and single-use spaces look like they're soon going to be a thing of the past. The modern farmhouse look, with its barn doors and somewhat impractical sinks, was becoming far too ubiquitous for people's tastes. While it might work in the country, it's just not natural for an NYC apartment.
Perhaps more surprising for 2021 is that open floor plans also seem to be going out of style. As people turned their homes into makeshift schools, gyms, and home offices, there was a certain drawback to having so many undefined spaces in the home. Instead, people are starting to see more advantages to walled-off rooms that can be used for a variety of activities throughout the week.
2021 Predictions for Home Interior Design Trends
Here's what's likely to dominate the interiors of the most fashionable homes this year. Don’t forget to keep these in mind when hosting an open house this year.
Self-Expression
In a world of strip malls and housing developments, plenty of homeowners long to do something a bit more daring. The pandemic has only intensified this need for creativity, with more people viewing the empty space as a fun challenge rather than a daunting threat. So whether a person drags out old souvenirs from past trips or clears out a space for a more minimal interpretation, more decisions will have a larger purpose for the homeowner.
Post-Modernism
Post-modernism doesn't always have the best of connotations, sometimes prompting us to think of horrifying photos from the 1970s of busy rooms in all the wrong colors. But there's been a comeback in this movement as we round its 50th anniversary. Essentially an adverse reaction to the bare spaces of modernism, post-modernism is debuting new materials and ornaments for this year. It's a fun trend that can breathe a little life into an old room.
Industrial Styling
If even the latest twists in post-modernism don't suit your tastes, you might consider industrial styling as an alternative. The stonework, metal elements, and neutral colors have some of the same principles as minimalism or modernism, yet incorporate more details to explore in the home. This blend of styles is most often recommended for multi-purpose spaces with high ceilings. (It's a great way to pay homage to talented craftsmen in your area too.)
Black Kitchens
White kitchens were once the rage for luxury kitchens, but as with any song that's been played too long, they're starting to wear out their welcome. Now, people are looking for sleek black countertops, cabinets, and lighting as a way to distinguish the living room from the kitchen. If you have an open floorplan, this is especially recommended if you're not planning to build any walls. Of course, don't necessarily expect this trend to replace the beloved Carrara marble just yet though.
I’m also starting to see a lot of brass and copper tones set against these darker colors.
Sustainability
This one has clearly been on the rise for a while, but worth noting for 2021. This design trend goes hand-in-hand with transparency. People are looking for brands that aren't afraid to share how their products are made and how they treat their employees Rather than giving people vague promises, this year's customers will be looking for companies that highlight diversity in their staff and how the company is doing its part to protect the Earth.
Natural Shapes
Few things in life are picture-perfect. (The edges of a flower petal would be difficult to measure with a straight ruler.) Maybe that's why we're starting to see wavy shapes nearly everywhere. These more organic choices are thought to remind us of nature and stimulate our creativity. When we've been so cooped up at home, it makes sense that we're all gravitating toward this particular form of expression — whether they're found on a table, painting or pillow.
More Plaster
On a more practical note, plaster could see more of a resurgence this year. For years, drywall has been the favorite. It's easy and fast to install, plus it offers a clean and uniform surface for the owner to decorate. On the other hand, plaster has to be layered over wood, presenting logistical challenges that don't always end well. But there's also a depth to plaster, one that offers more texture and (you guessed it) personality to the room. If you're interested in this one, experts recommend coating a drywall with a thin layer of plaster to see how it looks (and avoid demolition cost).
So there you have it, an educated guess as to what's to come. Considering the unpredictability of 2020 though, anything can happen with home design. It will all come down to how different design elements speak to the homeowners and what promotes functionality for all of the home's residents.
Love,
Kartik
|
Before I get deeper into this article, it is worth noting that I love California. I’ve lived in southern California nearly all my life so this article isn’t meant to sound cynical about the state
Before I get deeper into this article, it is worth noting that I love California. I’ve lived in southern California nearly all my life so this article isn’t meant to sound cynical about the state of affairs around here. I just thought this would be an interesting article to research amid rumors that COVID lockdowns, taxes and regulations are chasing Californians out of dodge.
Just in case you were concerned that the reported exodus of California residents to other states has been exaggerated, it seems to not only be true, but perhaps it is gaining momentum. That in itself is maybe a bit surprising, and some of the other facts surrounding the reports will also surprise you.
Just to clarify, according to the California Department of Finance, the population of the Golden State was still increasing, but ever so slowly, in the period between July 2019 and July 2020. The state showed a net growth of just 21,200 residents, translating to a percentage growth rate for the 12-month period of just one 1.5%. The growth rate has slowed over the past two decades, but this was a record-setter, something that had not been matched since 1900.
During the same period, Los Angeles County reported a net loss in population of more than 40,000, and Orange County is said to have lost nearly 25,000 residents. If you're wondering how to reconcile those numbers, you must dig deeper. The United States Census Bureau confirms that in 2019, 653,000 residents left the state for what they considered greener pastures in other parts of the country. Only 480,000 U.S. residents traded zip codes for one within California. That represents a net loss of 173,000 residents. And that was pre pandemic. But foreign-born new residents were still arriving.
The Facts Behind the Stats
California, with a population nearing 40 million, grew dramatically for most of the 20th Century. With enviable weather, great natural beauty and plenty of space left for new homes and businesses, it seemed to be the land of opportunity, with a booming job market, lively culture, and great cities, food and entertainment. In the second half of the century, the population almost tripled, but for the last 20 years the growth rate has been relatively flat, and it slowed dramatically in 2017. Reasons include a higher than average cost of living, rising home prices, taxes and overall costs, and a slow but steady change in demographics.
As in the rest of the country, California's population growing older, and its birth rate has also declined. But its average age is still young when compared to other states. Unlike the majority of states, however, California is heavily populated by immigrants and minority groups.
According to the Public Policy Institute of California (PPIC), the state has unique diversity. Its share of foreign-born residents in 2018 was larger than any other state, estimated at 10.6 million. It is also a state with no single race or ethnicity constituting a population majority. Latinos now account for 37% of the population, surpassing the white population in 2014. Other substantial population groups include Asian-American at 15%, African- American numbering 6%, multi-racial groups at 3%, and American Indians or Pacific Islanders under 1%.
Reasons for Relocating Out of California
In order to understand why California residents are leaving, you cannot discount standard explanations. People relocate for many personal reasons, including new job opportunities, wanting to be closer to family and friends, or simply wanting to taste a new lifestyle. But why aren't people moving into the state? That may also not be difficult to answer.
There is no doubt that traffic and weather play a part in the decision-making process. California has suffered more than its share of natural disasters in the past few years. Rising prices of goods and services, a scarcity of affordable housing -- particularly in major cities -- government regulation on business and rising taxes on individuals, and political considerations all have an effect.
Rural areas lose residents primarily because jobs disappear, while cities seem to lose people due to rising prices and a lack of safe and affordable housing. California's operating farms have been decreasing for generations by some estimates, and its major cities have become known not for their cosmopolitan atmosphere but for their problems that include escalating prices, a culture of drugs, crime and homelessness, and questionable governance.
The effect of COVID-19 also must be considered, and it is not insubstantial. The state has been viewed as a hotspot of infection, and has faced a lot of criticism for its handling of the crisis on local levels. It should be noted that some residents left and sold their home during the pandemic, but that the virus also prevented others from crossing the border into the state, which affects total population numbers.
Where Are People Going?
Favored destinations for California expats are Texas, Arizona and Idaho, for various reasons. Texas mounted a serious campaign to attract new business, especially from California, several years ago, and it has paid off. With no state income tax, a stable economy, a relatively favorable climate and a friendly vibe, new residents feel at home in Texas. Real estate agents are quick to point out the advantages of selling high and buying low, something that is entirely possible when moving to Texas from other places in the nation. That has helped sustain a building boom in Texas that began shortly after the crisis of 2008. Texas is a hot market for buyers from out of state. Austin and the Dallas-Fort Worth Metroplex are the prime areas.
Other California residents, especially those who can continue to work remotely for their employers, head for Phoenix or to Boise, Idaho, which each have some of the same lifestyle, tax and housing advantages, and favorable climates. California real estate spokesmen are quick to confirm the trend. Some of them have even joined the expats, working remotely from new homes out of state, while continuing to represent sellers and buyers in California.
What Does the Future Have in Store for the California Population?
Will the trend be reversed in the future? It's hard to say, but right now it seems as if California is on the downward slope in terms of population. It will, however, no doubt retain its status as the most highly-populated state for at least the foreseeable future.
Love,
Kartik
|
Part of becoming a real estate salesperson, the law requires that you work for a broker. In case you are new to the real estate industry, examples of brokers are Keller Williams, Coldwell Banker
Part of becoming a real estate salesperson, the law requires that you work for a broker. In case you are new to the real estate industry, examples of brokers are Keller Williams, Coldwell Banker and Century 21. It’s important to company to work for - and making the right decision to that end - can absolutely turn into something of an existential question for any new salesperson.
But at the same time, all hope is certainly not lost. By asking yourself a few key questions at the beginning of this process, and by understanding the potential pitfalls you could fall into if you make this decision haphazardly, you'll go a long way towards making the best possible choice in terms of both your career and your future.
Do this company's values line up with my own?
Obviously, the most important question you want to ask yourself before you choose a real estate broker to work for is, in many ways, the most immediate. Does the option you have in front of you line up with your own values? Meaning, is this the type of company you would feel good about working for to begin with?
If you're the type of agent who likes to take a more personal and intimate approach to what you do, obviously you wouldn't want to work for a "real estate mill" who is simply trying to turn over agents as quickly as possible. Likewise, do the social values of the company and its leadership line up with your own?
Making the wrong choice here could get you into some hot water. Don’t fall prey to the broker who claims to give you all the support in the world but then disappears when you actually need help. Make sure that you talk to some other agents at the company who have been there for at least a year and get the scoop on what it’s really like to work there.
What are the opportunities to learn and grow within the organization?
Another important question to consider before you choose a real estate broker to work with has to do not with the position you'll be starting at, but what that job might grow and evolve into over time.
Obviously, the "right answer" here is going to vary in large part depending on the career trajectory you see yourself in. Some people aspire to be a part-time real estate agent - that's it - and they're totally fine sticking with those basic responsibilities for the duration of their career. But others want the opportunity to find a mentor and maybe even start their own team or have ownership in a brokerage. This will likely require that you get in touch with someone who will teach you the "tricks of the trade" and who can help mold you into a far more sophisticated agent than you could ever be on their own.
Which of these two camps you fall into depends on what type of real estate broker you should look for. Again, some leave very little room for growth in the long-term and you may hit your ceiling pretty fast as far as advancement is concerned. Depending on your perspective, that may be okay - but if it isn't, you'll want to find the type of brokerage that actually offers those opportunities.
Why Picking the Right Broker Matters More Than You Realize
Again, all of this matters so much in large part because picking the right broker can absolutely set the tone for the rest of your career. This is especially true if you're a new agent, as you don't really have a standard definition of what "normal" is supposed to look like yet. You don't want to find yourself short-changed right away, or worse yet forced to accept that this is all there is to your career. You want to pick a company with a vision that aligns with your own to help bring that vision into reality. Likewise, being around a group of productive, like-minded people can definitely help put your career on the right track.
But most importantly, starting with what might seem like a better offer initially - and then having to restart with a whole new firm later when you realize that wasn't true - may very well set you back. It's nothing if not costly to switch brokerages, mostly because the broker often makes the agent pay for things like their own business cards, "For Sale" signs and other collateral material.
Therefore, picking the right broker today can help you avoid a lot of major issues and potential career setbacks tomorrow.
Need help picking a broker? Reach out to me and I would be happy to talk through it with you.
Love,
Kartik
|
According to one recent study, the vast majority of all experiences between a services provider and customers still begin in the exact same way: with a search engine. If you needed just a single statistic
According to one recent study, the vast majority of all experiences between a services provider and customers still begin in the exact same way: with a search engine. If you needed just a single statistic to underline the importance of your online presence as a realtor, let it be that one.
Thanks to the rate at which technology continues to advance, consumers are doing more research before purchases than ever before. They want to collect as much information as possible and weigh all of their options carefully before making the decision to part with their hard-earned money. If they're putting in hours upon hours of careful research before investing in something like a new computer, how much effort do you think is going towards some of the larger purchases they'll ever make like a home?
In short, quite a lot.
This is why it's critical for you to understand that, as a realtor, your online presence is one of the most important elements of your business that you need to keep a careful eye on. This is true for a wide range of different reasons, all of which are worth exploring.
Keep an Eye on Google – How Well Does Your Brand Rank?
As stated, most experiences between you as a realtor and the people you've dedicated yourself to serving are going to begin with a search engine like Google. This means that if you go to Google right now and type in your business' name, you'd better show up as high on the page as you possibly can.
This means not only creating a real estate website or using an online social media platform to showcase yourself, but elevating it above acting as a simple "virtual business card" and into the realm of a helpful online resource that people actually want to use. You need to write blog posts, record videos and offer other helpful content to help people understand why you're someone worth paying attention to in the first place. People have questions and concerns when it comes to buying a home - your website is an opportunity for you to answer them in a way that builds trust and empowers your larger SEO (search engine optimization) efforts at the same time.
Improve Your Reviews on 3rd Party Sites Like Zillow and Yelp
Of course, people aren't just going to take your word for it that you know what you're talking about when it comes to real estate - they want this confirmed from other real people that you've worked with in the past. Reviews on Zillow or even Yelp may also come in handy when servicing new clients.
Use Facebook and Instagram to Make Yourself Available 24/7
It's equally important for you to keep in mind that when it comes to the level of research people are doing ahead of a major purchase like a home, they're not limiting their activities exclusively to "normal working business hours." They're doing research early in the morning and in the middle of the night. They're pouring over options on weekends and at virtually all hours of the day. This means that a successful online presence as a realtor depends on making yourself available 24 hours a day, seven days a week via sites like Facebook and Instagram.
Think about it like this: if someone has a question, they want an answer now. They're not going to wait for you to get back to them - they're going to keep trying until they find someone who will. By giving people the opportunity to contact you anywhere at any time, you're making sure they complete the majority of their customer journey with you.
In the end, traditional word of mouth may still be the best way to secure real estate leads - but that doesn't make an online presence any less important. Still, both of these things are in service of the most important marketing opportunity of all: doing whatever it takes to generate as many satisfied customers as you can.
Love,
Kartik
|
As a first-time home buyer, one of the aspects of the process that people may not be prepared for has to do with the sheer volume of documents that will be required to get qualified for a loan. Of course,
As a first-time home buyer, one of the aspects of the process that people may not be prepared for has to do with the sheer volume of documents that will be required to get qualified for a loan. Of course, it's in their best interest to get these items ready as early on as possible as most sellers expect you to have a pre-approval letter for a mortgage. Having this ready not only shows that they're serious about the process, but it also makes sure that everything goes through without delay.
Not only that, but getting pre-qualified for a mortgage can also act as a useful estimate of how much someone can actually afford to spend on a home - thus making sure that they (and you as their real estate agent) are not focusing their attention on the wrong areas. Thankfully, gathering all of these documents together won't be nearly as difficult as you may be assuming. You just need to keep a few key things in mind along the way.
Proof of Income
By far, the most important document that will be needed to qualify someone for a loan involves some type of proof of income. This will usually require that the buyer produce their W-2 wage statement from the past two years, but recent pay stubs and proof of any additional income (like bonuses) may also be needed. Likewise, buyer's will probably have to produce their most recent two years worth of tax returns.
Proof of Assets
At that point, buyers will have to produce their proof of assets - which will typically involve bank statements and investment account statements to prove that they have the money necessary for any down payments or closing costs.
A Credit Check Containing Your FICO Score
Typically speaking, buyers will also have to have good credit in order to qualify for a loan - which means that they'll need to produce what is necessary to run a credit check. For a conventional loan, this means having a FICO score of at least 620 if not higher. If the buyer will be getting a Federal Housing Administration loan, they can usually get by with a score of at least 580.
Employment Verification
Next, buyers will have to provide some type of employment verification as lenders usually only deal with people who have stable employment. In addition to providing pay stubs, a lender will likely call the buyer's employer to verify that they actually work there.
Driver’s License and Social Security
Finally, buyers will have to produce a copy of their driver's license and their Social Security number. In addition to being necessary for running a credit score, this will help make sure that the lender has everything they need to confirm that someone is capable of paying back the type of mortgage they are requesting.
Final Step: Getting a Mortgage Preapproval Letter from the Lender
Once the buyer has all of these documents prepared, their lender will have everything they need to approve a specific loan amount and that will be valid for somewhere between 60 and 90 days. Loan officers will use these documents, along with their own internal systems, to qualify the buyer based on what they've provided and underwriters will be a big part of this process, too.
As a real estate agent, you should always ask buyers if they are pre-qualified for a loan BEFORE putting a lot of work in to help them find a home. If nothing else, this will be a useful indicator of what types of potential homes you should be steering them towards. It will also instantly help you separate the more serious home buyers from people who may just be casually looking, thus freeing up as much of your own time as possible to focus on those matters that really need you.
Love,
Kartik
|
Regardless of the type of business you're running or even the industry that you're operating in, marketing is all about getting the right message in front of the right person at exactly the right time.
Regardless of the type of business you're running or even the industry that you're operating in, marketing is all about getting the right message in front of the right person at exactly the right time. This is especially true with regards to the real estate industry, where listings need to do everything they can to differentiate themselves from every other house available on the market in an effort to move as quickly as possible.
Once you've put in the hard work of collecting all information about the property you're trying to sell, taking stunning photographs and putting together that perfect listing, you then need to pull out all the stops to make sure that people actually see it. Therefore, if you really want to craft the perfect marketing campaign to make sure your listing moves quickly, there are a number of factors you'll want to take into consideration.
1. Take Full Advantage of the MLS
The first step you should take when marketing a new real estate listing involves using a multiple listing service, also commonly referred to as an MLS, to get the word out about your property. This is a database built by cooperating real estate brokers to provide data about homes for sale in a particular area. This lets agents see each other's listings of properties for sale, commission and agent details, all in the name of connecting buyers to sellers as efficiently as possible.
Important Note: The MLS and Zillow are not equal
Note that an MLS and a site like Zillow are NOT the same thing and should never be treated as such. That's not to say that sites like Zillow won't be effective for getting the word out about your property, because they will be. Buyers can visit Zillow on their own and see great information and pictures of homes currently for sale, all without ever leaving their computer chairs, but also direct them to use www.realtor.com. This provides access to the MLS database on a user side.
2. Get Active on Social Media - Connect with Your Audience
Another important step you'll want to take involves harnessing the full power of social media sites to your advantage. Sites like Facebook, Instagram and even Twitter don't just connect you to countless potential buyers - you can also use social media to target your efforts to specific geographic areas and even towards precise demographics to help get your message in front of as many of the RIGHT potential clients as you can. Be sure to include an overview of the property and as many of your standout photos as possible. Even if someone sees your information on Facebook and isn't ready to buy a home, they may know someone who is - thus allowing them to share the post and get people to contact you as well.
3. Send Emails to Past and Current Clients
Along the same lines, you should also send out email blasts to both current and past clients, as well as to all real estate contacts you've established. Again, you never know who is ready to buy a home and you shouldn't write anybody off at any point. By making people aware of the property, you could end up motivating someone who was "thinking of maybe moving in the next year or so" to get excited about doing so sooner rather than later.
4. Send Postcards to Your Real Estate Farm
Finally, be sure to send postcards to farm the area to drum up as much attention for the listing as possible. In real estate, farming is when you pick a particular geographic area and establish yourself as the local market authority. By bringing this new listing to everyone's attention, you'll likely increase the chances of selling it as quickly as you can. If nothing else, this is a way to stay in contact with those current and past clients to show them how active you are in their community.
So from that perspective, it's killing two birds with one stone, so to speak. You're not only selling your listing quickly, but you're further cementing yourself as the authority that people in the area can trust.
Love,
Kartik
|
As a real estate agent, one of your main jobs is to help people navigate through what will undoubtedly be one of the biggest financial transactions of their life: buying a new home. But keep in mind that
As a real estate agent, one of your main jobs is to help people navigate through what will undoubtedly be one of the biggest financial transactions of their life: buying a new home. But keep in mind that you need to approach this in more than just a literal sense. Yes, the "nuts and bolts" process of buying a home is as difficult as it is time consuming, so people are going to need someone they trust (read: you) to help make sure that everything proceeds exactly as it should.
But there are a lot of agents out there who can help people BUY a house. They're also going to need your assistance in terms of FINDING that perfect house to begin with. They don't just want any old house - they want "the one" that is everything they've been searching for and then some. Therefore, in an effort to help your clients choose that home of their dreams and walk away as satisfied with the process as they'd always hoped they would be, there are a few key things you'll want to keep in mind.
Provide Objective, Constructive Insight About the Home
By far, the most critical thing you can offer your clients as they search for a new home involves objective, constructive insight whenever possible. Even if a client walks through the door and is immediately enthusiastic about the property, you still need to make sure that they're thinking clearly.
Help Them Weigh the Pros and Cons of the Home
This means helping them weigh both the pros and the cons. Consider things like the status of the property and even the age and let them know what they might expect five or even ten years down the line. No home is perfect by any means and part of being a homeowner involves dealing with unexpected issues. Use your experience to offer guidance about THIS property in particular and make sure they understand the situation from all angles.
Determine the “Wants” and “Needs” of Their Dream Home
Likewise, go through a checklist of "wants" and "needs" with your clients and see how a particular property aligns with those goals. What are the elements that a client's "absolute perfect" home MUST have? How any of those boxes does this particular property check? What are the odds that they're going to be able to find a home that meets every last qualification on their list? These are the things you need to be thinking about to help someone make the most informed decision possible.
Assess How Your Client is Feeling About the Home
Of course, there are certain questions you need to ask of yourself during this period, too. Chief among them is simply "how is the client feeling right now?" Are they excited to the point where they can't stop thinking about the property? Are they already to the point where they're thinking about furniture placement and they can see themselves building a life in this house? If they are, the chances are high that you might have helped them find "the one." If they're not, you'll likely want to continue your search, at least for awhile.
Consider the Aspect of Time
Finally, you need to consider things from the perspective of time - something there just isn't as much of as people want. How much longer can the client keep looking? What are the current market conditions, and how fast is a property like this one likely to stay on the market? Is inventory high enough where it's even possible to keep looking for a new home indefinitely? Even if someone looks at a home and doesn't consider it to be "the one," can they work with a general contractor and eventually get it to that point one day? This may be what you need to recommend if this property is likely to move fast.
While it's possible to follow all of the best practices outlined above and STILL not locate "the one," doing so will still put you in an excellent position to offer as much value to your clients as possible and help them get over the house that got away. That's not just how you help someone buy the home of their dreams - it's also how you turn them into a loyal, lifelong client who will continue to return to you for years to come.
Love,
Kartik
|
The ongoing COVID-19 pandemic has changed just about every industry you can think of dramatically over the last year, but that's especially true in the world of real estate.
Gone are the days where
The ongoing COVID-19 pandemic has changed just about every industry you can think of dramatically over the last year, but that's especially true in the world of real estate.
Gone are the days where you could comfortably hold massive open houses on a Saturday or Sunday afternoon, gathering everyone together in a confined space to try to drum up as much attention as possible. Thanks to COVID-19, you'd be hard pressed to find anyone enthusiastic about drawing that many people together - to the point where some might not feel comfortable stepping into a stranger's home at all.
However, all hope is not lost. As savvy real estate professionals have shown, it is entirely possible to manage a successful listing during COVID-19. You just have to keep a few key things in mind to help people stay as safe as possible before, during and after the period in which your listing goes live.
Be Prepared and Purchase Personal Protection Products: Hand Sanitizer, Face Masks and More
At a bare minimum, real estate agents should purchase general hygiene and other personal protection products when both pulling together the information needed for a listing, as well as when showing off the home at a later date.
This means bringing along hand sanitizer with at least 60% alcohol, for example. Likewise, face masks and other coverings should be worn for all in-person activities. Experts also agree that you should bring along plastic bags for the disposal of all personal protective equipment and related items that you have brought onto a property.
Best Practices to Follow if an Inspection is Needed
When it comes to the listing appointments themselves, keep in mind that any initial listing interviews need to take place remotely for the foreseeable future. If any type of inspection needs to be done of the property to guarantee accurate pricing or to assess safety issues, you should keep all of the following best practices in mind:
Limit the number of people who will be present for the in-person listing appointment as much as possible. Generally speaking, there should be no more than three people: the agent and the two parties involved in the sale of the home, if applicable.
Anyone who lives in the home but who is not directly related to the sale should be asked to leave until the appointment has been completed. If that isn't possible, adequate social distancing rules (staying at least six feet apart at all times) should be followed.
Anyone who is going to be at the listing appointment should be prepared to complete a verbal health screening prior to it beginning.
All people at the listing appointment need to use hand sanitizer and wear face masks.
How to Hold an Open House During COVID-19
With regards to actually showing off the property to potential buyers once the listing has gone live, it is recommended that you encourage the use of virtual showings whenever possible. Yes, this is a significant change from the way things are typically done. But to look on the bright side, virtual showings could attract the attention of a wider range of potential buyers who may not have otherwise been able to see the property. This is especially true for any buyer who may be out of state but who can't travel right now for obvious reasons.
Finally, all showings must be held by appointment only and you should schedule at least 30 minutes in between showings for proper sanitization of the environment.
If possible, you may want to consider limiting potential showings to only people who have been pre-approved by a mortgage lender. Or, you could do so for people who demonstrate that they have the money and/or financing available to actually buy the property. Doing so isn't just a great way to maximize the use of your time - it can also help significantly cut down on the risk by making sure that you're only showing to people who are actually interested buyers in the first place.
Love,
Kartik
|
As a real estate agent, the importance of keeping in contact with your past clients is something that simply cannot be overstated. On the one hand, if you've just put someone in a new home that they're
As a real estate agent, the importance of keeping in contact with your past clients is something that simply cannot be overstated. On the one hand, if you've just put someone in a new home that they're overwhelmingly enthusiastic about, you may be asking yourself "what's the point?"
Why Staying in Touch with Real Estate Clients is So Important
The point is, unless they've told you that they are 100% confident that this is their "forever home," they're eventually going to move again one day or even purchase income property. By staying in consistent contact with them over the years, you'll increase the chances that when that day comes, the first person they pick up the phone and call is YOU. Along the same lines, just because THEY aren't looking for a property doesn't mean they don't know someone who is - and with real estate being a word of mouth business, this is one effective way to generate as much of it as you can and a great way to create a real estate referral system.
All of this is to say that keeping your clients for life means staying in contact with them, and email campaigns for your past and current clients are an effective way to accomplish precisely that. Creating the most helpful and effective campaigns, however, requires you to keep a few key things in mind.
How Often Should You Email Your Real Estate Clients
One of the most important things to consider throughout all of this has to do less with the type of emails you're sending and more about how often you're sending them to begin with.
Running these types of email campaigns depends on consistency, but at the same time you don't want to send out messages too often or you run the risk of people tuning out. Typically, be prepared to send a few general updates once a month, or every two months, just to keep people informed as to what is going on in the community around them. This will help you stay at the top of their mind, all while continuing to establish yourself as the local market authority.
4 Email Campaigns You Should Send to Past and Current Clients
1.Reach Out to Your Real Estate Clients During the Holidays or to Celebrate Birthdays
Having said that, there are certain situations where you should break from this consistency and send out messages more frequently. Whenever the holidays come along, for example, you'll absolutely want to check in with everyone and wish them well. If you know that one of your past clients has a birthday coming up, you'll also want to reach out to them with a personal message to show them that you're still thinking of them and paying attention. Any other types of big life events (if you know a past client just welcomed a baby into the world, for example) will absolutely fall under this umbrella.
2. When the Seasons Change, Share Home Décor Tips
If you DON'T have a new listing on the market that you want to show off to people, you can still use these periodic check ins as a way to bring something of value to past clients, too. You could always send out an email message dedicated to nothing but home decor tips, for example - especially as the seasons change and people are thinking of switching up their current look.
3. Share Home Renovation Project Ideas
If you know a certain number of your past clients have been in their homes longer than five years, you could also offer insight on potential renovation projects they may want to participate in. This would have been particularly helpful if you were able to do it at the onset of the COVID-19 pandemic, as people suddenly found themselves stuck indoors with a lot of free time on their hands.
4. Send Delicious Recipes That Pair Well with the Holidays
You could even just send out messages with recipes that people might want to try when they get the chance. Did you sell a lot of homes to first time homebuyers last year? With the holidays here, you could send out a message giving them all the ins and outs of cooking the perfect holiday treats to really "break in" their new home in style.
Remember to Keep in Touch
Regardless, you'll always want to capitalize on any opportunity you have to remind people that you're out there, and these are the types of email campaigns that allow you to do precisely that.
Love,
Kartik
|
To say that the stakes are high when purchasing a home is an understatement.
Not only is any new home purchase one of the turning points in most people's lives, but it also represents an enormous financial
To say that the stakes are high when purchasing a home is an understatement.
Not only is any new home purchase one of the turning points in most people's lives, but it also represents an enormous financial investment - the likes of which you may never actually make again. One of the most critical parts of this process is also, unfortunately, the one that a lot of people tend to overlook until it's too late:
The home inspection.
Why Buyers Should Never Skip a Home Inspection
Buying a home is costly, yes, to the point where you may be tempted to capitalize on any opportunity to save a little money where you can. But you shouldn't do so with regards to your home inspection. A good home inspector is worth their weight in gold and the inspection brings an array of benefits that you literally cannot afford to ignore.
Reason 1: It Protects the Buyer by Identifying Potential Safety Issues
By far, one of the biggest reasons why a home inspection is so important comes down to how it can protect the buyer before they move in. A trained home inspector can help detect issues that you won't necessarily see on a simple walk-through, ranging from radon to carbon monoxide problems to mold and more. A home inspector will also be on the lookout for any work that was done on the house without a proper permit, or in a way that wasn't up to code.
For example, this expertise can be critical in terms of the home's electrical system, which should only ever be worked on by a qualified electrician. Just because the lights work or because "the house hasn't burned down yet" doesn't mean you're out of the woods from a safety perspective.
Even if there are no major issues but you still have work that wasn't completed without the proper permits, it could impact the amount you'll pay in insurance, taxes and even your ability to re-sell the house again in the future. All of this is to say that if you needed a single reason to underline the importance of a home inspection, let it be that one.
Reason 2: It Uncovers Costly Repairs in the Future
Of course, the benefits certainly don't stop there. A home inspector can also give you valuable information about the age (and condition) of the home your Realtor might not even have. They'll be able to take a closer look at things like plumbing, your HVAC system and more - all so that you can get a better idea of how much (and when) you'll have to pay for upgrades in the future.
Reason 3: It Can Be Used as a Negotiation Tool
On that point, this can also be a particularly useful negotiating tool before the sale itself goes through. If a home inspector tells you that the heating and cooling system needs to be replaced and it'll cost an estimated $3,000, you could potentially have your real estate agent negotiate to have the seller take care of it (or, conversely, have them drop the price or credit you by that same amount to get the sale completed faster).
Reason 4: The Inspector Can Give Valuable Homeowner Advice
Your home inspector should also be able to suggest specific, actionable tips for how to maintain your home as well - which itself could save you thousands of dollars over the lifetime of your ownership.
Additional Considerations About Your Home Inspection
One thing to keep in mind, however, is that home inspectors in the state of California aren't actually licensed by the state - meaning that anyone can start their own home inspection business without any type of regulatory oversight to speak of. Therefore, you should do your research before deciding on a home inspector to go with.
In the end, a new home is one of the most important investments you'll ever make - and that investment deserves to be protected. Getting a home inspection is a great way to accomplish precisely that, all while giving you enough actionable information necessary to make smarter and more informed decisions through the purchasing process.
Love,
Kartik
|
Without a doubt, real estate is primarily a sales-driven job. Regardless of how skilled a particular agent happens to be, getting objections from both buyers and sellers is a common part in the daily life
Without a doubt, real estate is primarily a sales-driven job. Regardless of how skilled a particular agent happens to be, getting objections from both buyers and sellers is a common part in the daily life of a Realtor . Sometimes they'll be completely legitimate concerns and it's part of your job to ease the client’s mind. On the other hand, on occasion there are instances where the client may be acting more out of emotion and not reason, and you'll need to figure out how to deal with those types of situations, too.
How to Handle Common Real Estate Objections
Still, HOW these objections are handled - and knowing what to say and how to say it - will no doubt lead to more sales moving forward. Therefore, if you want to get better at handling objections from both buyers and sellers, there are a few key things you'll want to keep in mind.
Take the Time to Understand Their Point of View
By far, the most important thing to keep in mind when fielding an objection from anyone is that you need to be proactive about trying to understand someone's position. Don't just think literally about what the objection is - try to go beyond the words and really get a sense of where this is actually coming from.
Buying or selling a home is a major transaction (not to mention a significant moment in someone's life), and that's naturally going to put people on edge. Likewise, some people are simply more risk adverse than others. By really trying to understand someone's position and by getting a better sense of their point of view, it can help focus on exactly what you need to say to move forward with the deal, and how to best present it moving forward.
Be Sure to Validate Their Opinions
Similarly, you'll also want to make sure that the prospect feels validated. Don't simply write off their concern as irrelevant because that's only going to put you farther away from your goal, not closer to it. Even if an objection is coming up simply because of someone's fear of change, that's okay - you can't help that someone feels the way they feel.
As an example I’m writing this six months into the Coronavirus pandemic and prior to a presidential election. Your buyer might want to wait until after the election to make a buying decision. This may or may not be a wise decision but I would dig deeper into their motivation for buying a home. Do they want to get wrapped up into a one year lease and pay a year worth of rent while they “wait it out”. Are they willing to risk interest rates increasing while they try and wrap their minds around the market? Are they willing to risk losing out on their dream home if one is available now?
The major reason why all of this is important is because your ability to handle objections to everyone's satisfaction also helps build trust, an invaluable part of the relationships you're currently navigating. Remember that trusting someone isn't as simple as turning on a light switch - it ultimately takes time and care to build.
Build Trust by Actively Listening
By showing buyers and sellers that you're really listening to them and that you're paying attention to what they have to say, you're naturally in a better position to use trust to overcome the objection. Because at that point, they'll be able to see that you care about their success and that you clearly have their best interest in mind. Most of the time, that's all someone is looking for in the first place and sometimes objections happen when that sense of trust just isn't there yet.
As Always, Remain Positive
Whenever objections come up, try to remind both buyers and sellers of the positive side of what is going on. With rare exception, those positives will far outweigh the negatives and if you can just get them to say focused on those qualities that really matter, the situation will undoubtedly resolve itself and you'll be able to move forward in no-time.
Love,
Kartik
|
One of the most important elements of the real estate process is also, for many people, among the most misunderstood: escrow.
At its core, escrow is simply a legal arrangement in which a third party
One of the most important elements of the real estate process is also, for many people, among the most misunderstood: escrow.
At its core, escrow is simply a legal arrangement in which a third party (typically referred to as an escrow company) temporarily holds a large sum of money or a piece of property until a particular condition has been met.
In other words, if you're about to buy a brand-new home, an escrow company might hold onto some funds until the transaction has been finalized. At that point, the money would move into the hands of the seller and the title into the hands of the buyer and everything would close exactly as it should.
Why Escrow Matters and When Is It Used?
Depending on the transaction, escrow will be used for one of two different reasons. For starters, it's a way to protect the buyer's good faith deposit (also commonly referred to as earnest money) so that the money is guaranteed to go to the seller according to the conditions that have already been laid out for the sale.
Secondly, escrow companies hold onto a homeowner's funds for the purposes of taxes and insurance for a lender and borrower - thus making sure that they actually get paid and that nothing holds up the completion of the transaction for any of the other parties.
Special note: Escrow accounts don't cover ALL of the expenses related to one's impending homeownership. Things like homeowner's association fees, or money needed to pay current utility bills, would not be covered by escrow accounts.
The key thing to understand here is that earnest money is designed to show a seller that a buyer is serious about making a sale. If the contract falls through due to anything having to do with the buyer, like if they suddenly decide to back out at the 11th hour, the seller is supposed to be able to keep that money. If no third-party escrow company was present, it's feared that buyers would try to keep funds that are no longer rightfully theirs.
Likewise, the reverse is true. If the home purchase goes through successfully, that earnest money is supposed to be applied to the buyer's down payment. If that money were just handed over to the seller ahead of time, there is a fear that they might try to find some excuse to keep it.Obviously, this is problematic because of the sheer sum of money that you might be talking about.
Additional Situations When Escrow is Critical to a Real Estate Transaction
Another related concept it's important to understand has to do with what is called an escrow holdback - or a situation where funds are held in escrow beyond the completion of a transaction.
One of the most common reasons why this might happen has to do with a buyer who may find something problematic with the home during a final walk through and home inspection . The seller may agree to fix the issue,but it will take a week or two - thus triggering the hold back and the funds to be held in escrow.
Another situation that may require a holdback is when a buyer agrees that the seller can stay in a home for a longer period of time beyond the closing date. This, too, is quite common as sometimes sellers need additional time to get their new home ready.
Likewise,if you're a buyer in the process of actually building a new home from the ground up, that money will likely remain in escrow not until the completion of the transaction, but until you've had a chance to sign off on all the work.
Remember, Escrow Companies Are There for Your Protection
Regardless, escrow (and by association, escrow companies) are essential in that they protect the best interests of ALL parties involved in a real estate transaction. They are seen as objective third parties with a tremendous amount of responsibility and they're often one of the major reasons why transactions are completed successfully at all.
Love,
Kartik
|
In a lot of ways, the real estate industry is unique in that there are so many moving parts at play. Every property is different, and the same can be said for every buyer and seller. But the one common
In a lot of ways, the real estate industry is unique in that there are so many moving parts at play. Every property is different, and the same can be said for every buyer and seller. But the one common thread that runs through it all is that there is often a passionate industry professional involved.
What kind of personality does best in real estate?
But of course, this begs the question - exactly what makes for a good real estate agent anyway? What personality traits are required to move from real estate agent to “successful" real estate agent as quickly as possible? The answers to those questions are largely straightforward - they simply require you to keep a few key things in mind.
1. Having a Problem Solver Mindset
By far, one of the most important personality traits to have as a real estate agent involves a true problem solver mindset.
Every transaction you're a part of will have several "moving parts," and sometimes things can go unpredictably. You'll be asked to come up with creative solutions to interesting problems and issues on a daily basis. Likewise, something as simple as showing a home can be a challenge as every property is truly unique in and of itself. None of this is a problem at all if you're the type of person who genuinely loves coming up with solutions to these and other types of issues.
What happens if you are on the listing side of a transaction and the buyer completes their home inspection and asks for a laundry list of repairs? How are you going to handle this and keep your deal together? How will you deal with a difficult client? What happens if you are in a divorce transaction and suddenly one spouse no longer wishes to sell the home after you’ve spent 30 days heavily marketing it? You can see that the ability to think on your feet and problem solve is paramount.
2. Being an Ambitious Self-Starter
Likewise, the importance of being a self-starter is hard to overstate. Even if you're working in a firm with a lot of other agents, you're still the "master of your own domain," so to speak. You'll largely set your own hours and you'll need to be a driven, self-motivated person if you're going to make it work.
3. Tenacity
This relates to another one of the most important personality traits to have as a real estate agent - the type of tenacity that will serve you well all throughout your career. In addition to a great work ethic, you need to understand that leads in real estate aren't just going to generate themselves. You'll have to market your clients' properties - sometimes in aggressive ways - in order to attract as much attention as possible from qualified individuals.
There ARE buyers out there for every property, just like there is a home out there for every home buyer. It's just that they aren't going to suddenly land in your lap - you're going to have to go out and find them and some days that will be easier than others.
4. Be Engaging and Having a Winning Attitude
Finally, a critical personality trait that all successful real estate agents share is that they have an engaging and winning personality. A big part of your success as a real estate agent involves marketing yourself every bit as successfully as you market those properties. Being personable, acting with integrity and having confidence as an agent are significant pieces of the puzzle.
In the end it's important to note that despite all of the above, it's absolutely true that any personality will do well in the real estate industry provided that you know exactly what to expect. It's certainly not a profession for people who cherish the ability to work a standard "nine to five" job. It also may not be the best fit for someone who likes a rigid, predictable structure in terms of their professional life.
While the above traits are certainly helpful, they are not a requirement to succeed as a real estate agent. Provided that you have a deep passion for what you do and relish the opportunity to help people in your area find the types of homes they've always dreamed of, you will absolutely be able to succeed and make a real career out of it.
Love,
Kartik
|
While this topic might be a little more advanced, especially if you are just starting real estate school online, it’s an important topic, nonetheless. Generally speaking, the way the real estate industry
While this topic might be a little more advanced, especially if you are just starting real estate school online, it’s an important topic, nonetheless. Generally speaking, the way the real estate industry typically works goes a little something like this:
A real estate agent works for a broker (think any company like Century 21, Coldwell Banker, etc.) and together, they combine their resources to help sell a home. More often than not, the company keeps some percentage of the overall commission fees that are paid out after the transaction in question has closed. As a direct result of their hard work and dedication, the real estate agent gets to keep some percentage of that commission. This process repeats itself, again and again, as each home is sold.
Over time, the real estate agent will sell more and more homes. Sometimes the average value of the homes they are selling increases. Sometimes their frequency increases. Regardless - this person continues to build experience and generate business for the broker and, as a result, the amount of money they get to keep should increase, too.
However, this doesn't necessarily happen automatically.
Typically, there will come a time when a real estate agent actually has to go into the broker’s office and negotiate to keep a higher percentage of the commission - something that can be particularly scary if you haven't been in the real estate industry for very long. But thankfully, the process itself is quite straightforward - provided that you're able to keep a few key things in mind along the way.
Most companies are going to have a published schedule wherein the commission splits are very transparent but what if you want to move up quicker? What if you have a huge deal you are working on and want a special arrangement on that transaction?
3 Negotiation Steps to Getting a Higher Commission Split
1. Analyze your Progress
What may be the most important thing to understand about this process is that before you even think about walking into the boss' office and asking for what amounts to a salary increase, you need to do your due diligence.
Decide on a period of time and pour over the data about each transaction to essentially track the trajectory of your career. Use cold, hard numbers to show not only how you've improved in your position, but how the value that you've been able to bring to the broker has increased, too. Maybe you've been selling more homes than you were when you first started. Maybe the average transaction price has increased exponentially. Maybe it's both at the same time.
Regardless, at a large company your broker might not “just know this” and they might not take your word for it. You need to be able to clearly illustrate the value that you're currently bringing to the operation and why that value is worth a higher commission split. You're not going to be able to get to that point without preparation, so this process begins here.
2. Do your Research
Likewise, you need to make sure that you're well aware of what commission split plans are in place to see exactly what you qualify for to begin with. Not only is this a great way to enter into the conversation armed with as much information as possible, but it's also a way to proceed without seeming too demanding as well.
So instead of going into someone's office and saying "I want X," start a conversation about your current split and why you have earned more. See which ones you qualify for and ask if there is one that will promote your growth within the company faster than the one you're currently on.
3. Review your Goals
Finally, you always want to make sure you know where you're headed before asking for your next commission split increase. Essentially, you need to know what your goals are for your career in the next five years to determine what you should be asking for to begin with.
If you know what the next "level" is and what you need to do to achieve it, suddenly something that was once overwhelming doesn't seem so insurmountable anymore. You've broken the process down into a series of smaller and more manageable steps, which will absolutely help you stay motivated at the same time.
If you can find time to do this between managing your client expectations and meeting your broker’s, you can be sure that you’re on the right track to taking your career to the next level.
Love,
Kartik
|
An interesting thing about the real estate industry is that there are far more people involved in the sale of a home than a lot of people realize. Of course, there is a buyer, a seller and their respective
An interesting thing about the real estate industry is that there are far more people involved in the sale of a home than a lot of people realize. Of course, there is a buyer, a seller and their respective licensed real estate agents - that much is obvious. Sometimes, the roles are clear - nobody questions what an appraiser does, because the job description is explanation enough.
But one of the most often overlooked positions in real estate is also, in a lot of situations, among the most important. The role is that of the transaction coordinator, and in a lot of ways their specific job may very well be one of the most important of all.
What is a Real Estate Transaction Coordinator?
While a transaction coordinator is not a legal requirement in a real estate transaction, as the name suggests, a transaction coordinator is a real estate professional tasked with managing all of the paperwork and deadlines involved in a real estate transaction. If you've ever purchased a home and felt overwhelmed about the sheer volume of paperwork you're expected to read and sign, just think about how the person who had to prepare all that paperwork must feel.
Why are Transaction Coordinators Important to the Home Selling Process?
The reason why this role is so important is because a good transaction coordinator is trained in every step of the sales process. A big part of their job involves monitoring the life of the transaction, from the moment a seller and buyer enter into contract all the way through the steps required to properly close.
What Does a Transaction Coordinator Do?
Just a few of the jobs they have to perform on a regular basis include but are not limited to ones like:
Opening escrow
Coordinating inspections
Overseeing repair negotiations
Communicating important updates to clients
Monitoring all documentation that is submitted
Coordinating the closing process and more.
In a larger sense, this is the person who is making sure that the wheels don't fall off the car, so to speak. It's their job to both make sure that an agent never gets bogged down by administrative tasks so that they can always focus on the client, as well as to make sure that nothing falls through the cracks and everything gets done properly and on-time based on the purchase agreement.
Transaction Coordinators Help Simplify a Complex Process
Overall, they're in charge of making sure that no unnecessary delays happen during this admittedly complicated process, all in service of the most important goal of all: closing a transaction and helping to create the most positive experiences for clients, no exceptions.
|
If you had to make a list of some of the most important traits that any successful real estate professional should have, confidence would undoubtedly be right at the top. In a lot of ways, being a real
If you had to make a list of some of the most important traits that any successful real estate professional should have, confidence would undoubtedly be right at the top. In a lot of ways, being a real estate agent involves selling yourself every bit as much as you sell those properties in your area. There are so many real estate professionals in your area - people don't just need to know that you can get the job done. In a matter of moments, you need to be able to convince someone that nobody does what you do quite like how you do it, and why that will be such an advantage to them in the weeks and months ahead.
Without confidence in yourself and your abilities, that won't just be difficult - it'll be impossible.
But at the same time, a lot of people often come into the real estate business as a second or even a third career - making it a scary prospect for a lot of them. After all, there is no base salary. There are no health benefits. Most agents are independent contractors and, as stated, the competition is fierce.
If you truly want to separate yourself from the pack, increasing your confidence is how you do it - and this is something you can accomplish in a wide range of ways, all of which are worth exploring.
3 Ways to Build Your Confidence as a new Real Estate Agent
1. Find a Real Estate Mentor to “Show You the Ropes”
By far, one of the best opportunities you have to build confidence in your abilities as a real estate agent involves finding a mentor who can "show you the ropes," so to speak. They'll do more than just help build your skills and knowledge – real estate mentors also teach you how to better yourself in a way that you'd be hard-pressed to replicate on your own.
If you work day in and day out with someone who is a proven success, you'll be able to see first-hand what works and what doesn't. You'll see everything that goes into each victory and how they deal with each failure. It's a process that takes years but it's also one that is more than worth it.
2. Be Patient – Give Yourself Time to Learn and Gain Experience
Another one of the best ways to be more confident as a real estate professional involves giving yourself permission to be patient with your abilities. You're not going to come right out of the gate and be an overwhelming success in your field. You're probably not going to sell your first house immediately after you stage it. You will make mistakes and some days will be more difficult than others.
All of this is more than okay, because each part of it is a big factor in determining your career trajectory.
There's an old saying that tells us it takes a long time to become an "overnight success" - whoever coined that phrase was talking about real estate whether they realized it or not. In other words, try not to be too hard on yourself and just be patient. Slowly but surely, your confidence will build as a result.
3. Master Your Craft by Continuously Learning
Finally, you need to understand that continuing education and a willingness to keep learning and keep improving is one of the core components of a confident real estate professional. Anyone who tells you they've "done enough" to develop their career or they've "learned all they can" about the industry or their local real estate markets is someone who lost a game they never truly understood in the first place. Any confidence they have is unearned at best.
You should always look for new opportunities to improve your abilities. You should always capitalize on a chance to hone your skills, or develop a new trait. Your willingness to grow and learn will always impact your ability to do both. Once you acknowledge that, you'll see each incremental growth step - regardless of how small - as a victory in and of itself. Truly, the confidence that comes with that alone is more than worth the effort for most people and it certainly will be for you, too.
Love,
Kartik
|
According to one recent study all of the popular social media networks combined have nearly 3.725 billion active users between them. To put that into context, this represents the vast majority of the 4.54
According to one recent study all of the popular social media networks combined have nearly 3.725 billion active users between them. To put that into context, this represents the vast majority of the 4.54 billion Internet users worldwide - and a pretty significant percentage of the 7.8 billion people on our planet.
Whether you're attempting to reach the largest audience possible as a Realtor or want to attract the attention of a small, niche and decidedly local market, social media can help you do all of this and more. But it's important to understand that you need a genuine strategy at the heart of your efforts - something to not only help make sure you're moving in the right direction, but that is also custom built to help you accomplish your specific goals (regardless of what they happen to be).
Therefore, if you truly want to succeed on social media sites like Facebook, Instagram and Twitter as a Realtor in the modern era, there are a number of best practices you'll want to keep in mind.
It All Begins and Ends With Value
By far, one of the most important opportunities that you have to leverage social media to your advantage as a Realtor involves communicating the raw value you're able to bring to the table as clearly and as concisely as possible.
Really, this is a best practice that you should be following across all of your marketing endeavors - not just social media, but it will certainly help. Generally speaking, everyone you're going to be communicating with probably already knows what a Realtor does in a large, over-arching sense. They don't need you to provide them with an overview of your job description.
This means you shouldn't be afraid to dive deep into the parts of your job that a lot of people don't think about - like how you're an expert in the ever-changing conditions of your local market. Showcase your knowledge of the average time on the market for homes in your area and provide insight into what it means to be a buyer's market versus a seller's market.
Ask yourself what you would want to see if you followed a local Realtor.
The answers to this question will guide every piece of content you create - not only for social media sites like Facebook and LinkedIn, but all across your marketing strategy. Always place the emphasis on the people you're trying to reach instead of yourself.
You Have to Play the Numbers Game
Another important thing you need to be aware of in terms of leveraging social media as a Realtor involves the fact that you should NOT be shy to send direct messages on sites like Instagram, Facebook, LinkedIn or even Twitter. If there's a particular niche that you serve, always go out of your way to reach out and make direct contact with someone to see if you can begin a conversation online and continue it in "real life."
Now, the critical thing to understand about this is that you should NOT expect every single person that you message to write you back. They may never see your message at all - or they may leave you on "read" and never respond.
This is perfectly okay... so long as you're aware that it's an inevitability and that you do NOT take it personally. Just keep reaching out to the people in your target audience in a concise, consistent manner.
But if you send messages to 100 people, maybe 20 will respond. Good news - now you have 20 opportunities to convert prospects into genuine leads that you didn't have before you started.
Always, Always, ALWAYS Research Someone First
But while reaching out to people via direct messages is always recommended, it's definitely not something you should do blindly. Luckily, you already have a resource that will tell you just about everything you need to know about someone:
Their social media profile.
Before you send any type of message, make sure that you take a long, hard look at their account for five or ten minutes. This is critical because if someone just posted a picture 20 minutes ago about how their cat passed away earlier in the day, they're definitely not going to be receptive to a hard sales pitch. At best, you're wasting your time and you'll never hear a response from that person. At worst, you'll inadvertently cause such a negative experience that they'll tell their friends and family members about you and at that point, every one of those people is cut off from you permanently.
Personalize, Personalize, Personalize
Speaking of personalization, one of the biggest mistakes that you can make in terms of establishing your social media presence as a Realtor involves simply copying and pasting messages from person to person.
There's no faster way to get someone to hit that "Delete" button than to open a message with "Dear Sir/Madame."
These days, people don't want to be "sold to" any longer. They simply don't have the time or the patience for it, considering that they're being bombarded by marketing messages nearly every minute of the day. They get ads in their email inboxes. They get ads on the websites they visit. There are already paid ads on social media. People have started to tune them out - they're little more than "white noise" at this point.
The Power of Visual Communication
For example, don't be afraid to send pictures through direct messages of houses or buildings that you or your company has recently sold. Sure, you could go into detail about the transaction and what the property has to offer - but you won't be able to make the same type of immediate impact that a picture can with text alone.
Overall, this visual approach helps you accomplish a number of things, all of which are critical to your social media success. For starters, images again are just naturally more engaging than text alone and if there's one thing you need as a Realtor on social media, it's engagement.
But secondly, images are a great way to show off that you or your company (in the case of new agents) are very active in your community and the area you've dedicated yourself to serving. If people can see all of the real estate transactions you've been a part of, it again starts to establish you as someone worth paying attention to. This in turn generates an enormous amount of social proof as people start to share those images, thus exposing even more potential clients to your brand.
Whether you are just starting out in our great real estate business or you are a veteran Realtor it doesn’t hurt to lean into social media as far as possible and cultivate new relationships.
Love,
Kartik
|
The truth is that any marketing can work it’s just a matter of how effective it is. As it relates to direct mail, it’s hard to envision a world where the volume of mail is dropped to absolute zero.
The truth is that any marketing can work it’s just a matter of how effective it is. As it relates to direct mail, it’s hard to envision a world where the volume of mail is dropped to absolute zero. As a consequence, direct mail marketing should be here for a good while.
The question really comes down to what are some best practices to succeed in making connections that start at the mailbox.
1. Test the Market
It may take a few tries to get your target market down. But don’t give up — once you figure out what works, it will be so much easier to continue. Every real estate market has different types of clients, different price points and potential clients with varying needs. Consider creative approaches like sending direct mailers to those living in apartment complexes to convert them to buyers. Consider sending mailers to a down market on an up market listing and aim for two transactions from one mailer.
As an example, let’s say you have a $900,000 listing. Consider sending information on that $900,000 listing to a $650,000 neighborhood encouraging them to sell their smaller house and upgrade to a larger one.
To this end, A/B testing is absolutely critical. Keep track of what you are sending and to who you are sending it and note the response rates. Pour resources into it.
You never know who is thinking about buying real estate and if they see your marketing materials, you’re going to get the call.
2. Point Your Direct Mail To Your Web Presence
The world of print should always point to easy-to-find information about how to contact you on social media or online. People want to see that their potential agent is relevant online and has a web presence. By checking you out online, potential clients get a feel for whether you're a good fit. If they find you easily accessible and active, they’re likely to refer you to friends after you work together — or even call you again if they make another big decision!
Consider linking all your social media channels on your postcard or letter to make it easy for leads to connect with you. Folks tend to lose interest if they have to search high and low to find you.
3. Be Personal
Ever get mail that just reads “current resident” with your address? How impersonal does that feel? Include the person’s name, because a personal detail goes a very long way. If this person gets two mailers, the one that has their name will likely stick around awhile — at least longer than the one they received that could have gone to anybody.
Most title companies will pass this information to you in the .csv file for your farm mailers.
4. Speak Highly of Yourself
Include ratings, success stories or testimonials if possible. You could even center your whole campaign around a few happy customers in your target market. Hesitancy will decrease significantly if someone sees that other people have been happy with a service.
5. Make It a Keeper
When considering USPS mail, consider adding features that will make your information less likely to go in the trash. As it relates to real estate, this means market data that is hyper local and relevant to the area you are mailing to is less likely to be thrown away.
6. Focus on Cohesive Horizontal Design
Picture your client walking up the steps from their mailbox, likely at the end of the day, fumbling with groceries, keys or even more. Most of their mail, envelopes, postcards and menus will have a horizontal orientation. Don’t be an outlier, or you’ll likely get tossed. Design your mailer to be cohesive and not intrusive. Make sure they don’t have to turn it every which way to get your message. Make it easy for them.
Direct mail is a great way to get exposure. It’s often less expensive than billboards or other advertising methods and it can be passed around and seen by many sets of eyes. Figure out what works for you, and you'll see success.
Whatever the marketing channel, remember that consistency always beats out creativity so just keep going!
|
In any real estate transaction, there are closing costs that are to be paid by both the buyer and the seller, and it's important to remember that these can vary from state to state and transaction to transaction.
In any real estate transaction, there are closing costs that are to be paid by both the buyer and the seller, and it's important to remember that these can vary from state to state and transaction to transaction.
I wanted to give you a quick run down from both a buyer and a seller perspective for California.
Typical Closing Costs Paid by the Seller
Let’s start with closing costs that are typically paid by the seller. A back of the envelope estimate would reveal that it would cost most sellers between 6 and 8 percent of the sales price to sell their home. The majority of the this is going to be wrapped up in real estate commissions as the seller generally pays between 4 and 6 percent of the sales price to sell it. The other 1 to 3 percent may be in other closing costs like back property taxes that are owed by the seller that will have to be paid at the close of escrow.
Even if the property taxes are not delinquent, these taxes are a seller responsibility until the escrow closes. For example, if the transaction were to close on April 10th, the property taxes up until April 10th would the responsibility of the seller. Anything after that date would be passed to the buyer side of the closing. Sellers will also have to pay their share of escrow fees and any back homeowner association dues until the date that the escrow closes.
The seller will also pay for any repairs that the buyer successfully negotiates during the escrow process. A home inspection, for example, might reveal that a roof is leaking and instead of the seller fixing the roof, the buyer may ask for a $7,000 credit to fix the roof in lieu of the actual repair. This would be deducted from the seller's proceeds at the close of escrow.
The industry standard in California is also that the seller will pay for a title insurance policy protecting the buyer.
Common Closing Costs Paid by the Buyer
As it relates to the buyer, a quick estimate of their costs would reveal a range between 1-3 percent of the sales price, with most of this is going to go to fees charged by the lender.
A lender may charge a fee, known as a point that is equal to one percent of the loan amount. The point could be categorized as either a discount point or an origination point. The difference between the two is that a discount point is a point paid to the lender to lower the interest rate on the loan. An origination point, on the other hand, is a fee that is paid to the lender to compensate them for actually doing the loan.
Generally, buyers will also pay the lender a credit report fee and are also responsible for their share of prorated property taxes. Generally, buyers will also pay for a title insurance policy covering the lender. This is different than the owner's title insurance policy that I described above that the seller paid for to protect the buyer.
What this means is that there’s two policies of title insurance in connection with a real estate transaction on which there is a loan. First, there is an owner’s policy to protect the buyer as well as a lender policy covering the lender. Buyers will also pay for their share of any escrow fees which are negotiable in California.
Speaking of escrow fees, it’s important to note that there’s usually a base escrow fee of between $200 and $400 and then the escrow fees themselves are often $2-$3 per thousand per side. Larger real estate transactions of several million dollars might have a lower per thousand escrow fee. It's also helpful to remember that many of these fees are negotiable. Certainly real estate commissions are negotiable but an often overlooked point is escrow fees can also be negotiated with the escrow holder.
How to Calculate Closing Costs – A Simple Example
As an example on a $600,000 purchase the base escrow fee might be:
$300
+
$2/$1,000 = 600 x $2 = $1,200
$1,200 + $300 base fee = $1,500 for each side of the deal.
Buyers also generally pay for an appraisal on the property as required by their lender and a home inspection and other inspections as part of their due diligence.
Before you get your real estate license in California, it's important to familiarize yourself at some level with the typical closing costs, so you can properly inform your client. Often, real estate agents will produce something called a net sheet which estimates the costs to complete a transaction. Your broker should train you on how to properly fill these out so you can demonstrate that you're as informed as possible.
Love,
Kartik
|
Generally speaking, it's common knowledge that real estate agents are required to be licensed in the state in which they practice. This is more than just a simple formality, of course. Taking the real
Generally speaking, it's common knowledge that real estate agents are required to be licensed in the state in which they practice. This is more than just a simple formality, of course. Taking the real estate classes and becoming a licensed agent proves that you've gone through the training and education necessary to do the job. It's also an example of your commitment to follow the industry ethics and standards of your specific state when it comes to marketing, sales, negotiations and the completion of transactions.
But more than that, a real estate license is also proof of your dedication to all of these ideas in the eyes of your potential clients - thus allowing them to move into a deeper and longer-lasting relationship with you with as much peace-of-mind as possible.
As you progress in your career you may have to hire an assistant one day who might not be licensed to help you manage some of the day-to-day aspects of your operation. Because of this, questions often arise as to exactly what these assistants can or cannot do. Are they a real estate agent in everything but the name? Are their duties limited in some other type of way, especially in the eyes of the law?
Luckily, the California Department of Real Estate has issued a set of guidelines specifically for these unlicensed assistants who work in the real estate industry, shedding insight into exactly what is expected of them and, more importantly, what isn't. It's an invaluable resource for anyone involved in a real estate transaction and understanding it requires you to keep a few key things in mind.
What Unlicensed Assistants CAN Do in California: An Overview
In the state of California, unlicensed assistants are definitely allowed to assist in the performance of cold contacting potential prospects. Indeed, this is a large part of the reason why real estate agents may seek out their help in the first place.
This includes not only making telephone calls, but also using electronic communication like emails or social media sites like Facebook and Twitter to try to generate as much interest in the services of the real estate agent as possible. The unlicensed agent can answer questions about what types of services that the agent can provide, and they can even schedule an appointment so that all parties can meet.
It's important to note, however, that this type of canvassing can ONLY be used to develop general information about the person being called. An unlicensed agent can call to determine whether or not someone would be interested in the services of the real estate agent, for example. They can NOT try to induce the person to use the agent's services in any way.
Another way that unlicensed agents often prove invaluable ultimately comes down to the role they play in open houses. Unlicensed assistants are absolutely allowed to place signs in public areas throughout the neighborhood, for example, and can provide factual information about the house in question either verbally or through pre-printed materials. They can greet the general public when they walk through the door and can even schedule times for further appointments. All of this can again save the agent an incredible amount of time, thus allowing them to devote more of their attention on those tasks that truly need them. They have to do all of this with the express consent of the owner however - they can't just decide to do it on their own.
The Administrative Roles of the Unlicensed Assistant
Unlicensed assistants are also allowed to help their agent in other ways, too, particularly when it comes to a lot of those "back office" duties that are important but that also require a tremendous amount of time.
In the state of California, an unlicensed assistant can:
Make, conduct and even prepare a comparative market analysis for a particular property. It's just that only the licensed real estate agent can actually use it when conducting business, and they have to approve everything contained within the document first.
Unlicensed assistants can let a prospective buyer into a property to inspect some or all of it, so long as this activity is necessary for the preparing of a report regarding future repairs that will be made. So an unlicensed agent can give a home inspector access to a property prior to a sale, for example. It's just that they cannot provide them with any supplementary information to actually complete that report - that will need to come from the agent directly.
Unlicensed assistants are not only allowed to prepare advertising relating to a transaction for their employer - they can actually have input on the design elements of those materials, too. Once again, the agent with the license will need to approve everything before it is published and made available to the general public.
Unlicensed assistants are also allowed to both prepare and complete documents before and during a transaction, so long as they do so under the supervision (and at the direction) of the licensee.
Unlicensed assistants can also mail, deliver and pick up documents relating to a transaction - including obtaining signatures. While they are doing this, however, they are not allowed to discuss the content or relevance of those documents. An unlicensed agent can bring something to a client's house to have them sign it, but the conversation isn't allowed to get any more detailed than that.
On the subject of documents, it should be noted that the guidelines state that unlicensed assistants are also able to thoroughly review the types of materials commonly coming into and going out of a real estate brokerage - so long as their employer has specifically directed them to do so. Overall, they can review documents for completeness or compliance, for example.
Finally, unlicensed real estate agents are allowed to not only accept but also account for and provide a receipt for any trust funds received from a client or other party to a transaction. Of course, this means they can also communicate with those same individuals in connection with the transaction about topics like when reports or other information will be delivered.
In the end, it's important to think of an unlicensed real estate assistant in the state of California as exactly what they are: an assistant in nearly every sense of the term. Under Section 10131 of the California Business and Professions Code, the state government has made it very clear which activities actually require a real estate broker license to execute. Nothing in these guidelines supersedes them in any way, shape or form.
But that's okay, because an unlicensed assistant isn't supposed to replace the need for a real estate agent at all. Instead, it's supposed to support and empower them - helping to relieve as many of the administrative tasks from their plate as possible so that they can focus their attention on actually running their business and executing real estate transactions.
To that end, an unlicensed assistant in the real estate industry really might be thought of as a paralegal in the legal profession. Paralegals are usually employed by lawyers to devote their attention to specialty tasks like case planning, development, management and others. They research legal topics and provide support for any tasks that don't require a law degree. They're not a replacement for an attorney, but then again they were never designed to be and that's not what is expected of them. An unlicensed real estate agent really does operate in much the same way, albeit via an entirely different field.
Finally, it’s important to remember that the rules can change on what the state allows an unlicensed assistant to do so it’s important to check your state’s rules periodically to ensure that you are following the rules.
These guidelines are intended to help not only real estate agents but also the members of the public that they've dedicated themselves to serving - which is ultimately the most important goal of all.
If you are unlicensed and would like to obtain your real estate license visit our website for more information or take one of our free classes
|
In the real estate world, building an effective real estate team is a growing trend. Rather than working independently, real estate professionals, and even our real estate students are starting to plan
In the real estate world, building an effective real estate team is a growing trend. Rather than working independently, real estate professionals, and even our real estate students are starting to plan ways to build teams of agents that work with them to make their business run.
These teams have one leader normally known as a “rainmaker”, then a number of support staff underneath who make things happen.
If you are considering the team approach to real estate, getting a team off the ground can be your biggest hurdle. Here are some tips for starting and growing an effective real estate team that will fuel your success.
Step 1 – Self-Evaluation
The first step in building a real estate team is your own personal self-evaluation as the potential team's future leader. What are your strengths and weaknesses? By pinpointing these, you can start building a team that will support your weaknesses and build on your strengths.
Next, consider what you need out of your real estate team. Do you need more buyer agents so you can list more properties? Are you looking for a Transaction Coordinator to help you with the paperwork on your files? Do you need help with your marketing and advertising copy? The answers to these questions will help guide you as you build out your organization.
Finally, prepare your systems. Before connecting with people for your real estate team, make sure you have a foundationally successful real estate business and know how to generate leads. One of the biggest things that potential recruits will want to know is whether or not you have a system in place to bring in leads for them to handle. Once you have a system in place, people will be more willing to buy into your vision.
Step 2 –Choose Your Professionals
Next, choose the professionals you need on your team. Your needs will vary depending on your goals and your skills and weaknesses. It will also vary depending on the structure of your team, whether you are looking to manage a team of sales professionals to support your efforts as an agent or are looking to lead a team of agents.
Some common pieces to a well oiled real estate team include:
Buyers agents
Contractors
Appraisers
Attorney
Accountant
Inspectors
Copywriter
Marketer
Make your list, and start looking for qualified individuals to fill those positions.
Note that lots of these folks don’t necessarily need to be full-time and on your direct payroll. Starting out as a new agent, you’ll want to build out a list of vendors that you know and trust to do the job right for your client.
Step 3 – Start Hiring
Now you are ready to start looking for qualified people and bringing them on to your team. Be careful about the professionals you hire. Make sure they are ready to work in a team environment and have the skills you need.The first person to bring on board as you build your team might be a virtual assistant or transaction coordinator. Your virtual assistant will manage email and office work so you can focus on the client facing aspects of your business. Your TC should ensure that your files are compliant and that all parties are receiving and signing paperwork in a timely way.
The nice thing about building out the administrative functions of your team first is that the virtual assistant can often be turned on and off as needed and the TC can be paid on an a per-file basis.
Make sure you're finding people who are a good fit for your team. One way to determine this is through personality testing. Personality testing will tell you if the person you're interviewing is a good fit for a sales-based business. Look for positive people with a passion for real estate to add to your team.
The personality testing can be critical in preventing turnover of your team. The innate personality of a buyer agent will be vastly different than someone in a dedicated administrative role.
Step 4 – Delegate, but Stay Involved
Once you have a team working well under you, start delegating responsibilities. However, make sure you stay actively involved. This is not the time to walk away from your real estate business. Instead, it's a time to jump in and lead by example. If you've hired well, you should be able to delegate responsibilities with confidence, while still taking an active role in the day-to-day operations of your real estate business.
Step 5 – Keep Recruiting
Even after your initial team is set, continue recruiting quality talent, especially talented agents. If you have proven sales systems in place with active lead generation they will be attracted to your team. Once you have them, make sure you have the right incentives to keep them invested in your team. Retention is just as important as recruiting, and you'll only retain quality people if your team provides them something of value.
Remember it is far more expensive to hire a new person than to retain an existing one.
Step 6 – Focus on Lead Generation
So what could you bring to the table that would make qualified real estate agents want to be part of your team? For many real estate teams, the answer is qualified leads. Finding a source for leads and then offering those leads to the professionals you bring on to your team is a key factor to the success of any real estate team. Your source may be direct-mail campaigns, social media postings, or other online marketing, but find a lead generator and use it well.
Step 7 – Take Care of Clients
Make sure you have a system for your team that keeps clients comfortable while they list with you. You may delegate this to one particular agent or team member, or you may have a proven system in place that each agent follows with their delegated clients. Keeping clients satisfied throughout the sales process will make your team more effective and help with your team member retention.
Step 8 – Keep Refining Your Processes
As you get the freedom to step away from the direct sales of your business, use your new time to refine your sales process for your team. Constantly evaluate what is and isn’t working and make changes and adjustments accordingly. Check with your team members regularly to ensure they are using the systems you have put in place to run their part of the business. Keep lines of communication open to ensure everyone knows what their responsibilities are and what they can expect from you.
Step 9 – Add Training as You Continue Building
After you start your team and get it moving along successfully, you may wish to grow it. Before on-boarding new licensed real estate agents or other real estate professionals, make sure you have solid training in place. Teach your new recruits what you expect and how your business operates, so they can come on board as solid, productive team members. Soon, your process will replicate itself as your team, and your income, continue to grow.
Real estate teams should allow you to make more sales and close more deals than you can do on your own. With these tips, you can build a successful team, retain the talent you recruit, and see your income continue to increase year after year.
Love,
Kartik
|
People considering signing up for real estate classes commonly ask the question “Can I do commercial real estate once I get my real estate license?” The answer to this may vary depending on your state.
People considering signing up for real estate classes commonly ask the question “Can I do commercial real estate once I get my real estate license?” The answer to this may vary depending on your state. In the case of California, our Department of Real Estate makes no distinction with regard to licensing commercial or residential real estate agents. The same license to sell a house would be the same license to sell a large building .
While this is encouraging for the new licensee considering beginning a new career, it’s important to understand that there are different specialities as it relates to the world of commercial real estate.
The five commercial real estate disciplines are office, retail, industrial, multifamily and raw land sales. With the exception of land, each of these areas have a couple of different ways to make money: Leasing and sales.
While real estate commissions are negotiable in California, the typical percentage earned is 3-6 percent of the transaction value regardless of whether you are leasing or selling the underlying real estate. As an example - Let's start with a commercial lease.
Imagine you are a commercial leasing agent and you have a dentist looking for 3,000 square feet of space in Los Angeles, and the rent is set at $3 per foot. She is likely going to be signing a lease for a five year term or 60 months. 60 months x $9,000 per month is a $540,000 lease value. This doesn't take into account annual rent increases that you'll likely be paid on also. Generally, representing this dentist would yield you a $16,200 commission. ($540,000 x 3% = $16,200)
This is a handsome payday considering there's no escrow period, no appraisal, and there’s no home inspection. No request for repair or even a termite report. You sign the lease, generate an invoice and get paid. On commercial sales, the commissions can be even larger. Imagine a $6 million office building. You would generally get 3% of this. Your commission would be around $180,000. Not bad.
Commercial real estate can be a lucrative career for someone seeking something a little different from the day to day life of selling houses. What's also nice about commercial real estate is that there are so many different disciplines. You can focus on selling shopping centers or office buildings, or even helping developers find land on which to build. Each one of these practice areas requires a different skill set and has unique vocabulary depending on what you are selling.
For example, in industrial real estate the wiring and power capacity might be important. Do we have 3-phase power? In retail the co-tenancy would be a consideration. Who are the other retailers in the center and how can they help drive traffic to my store? Office and the other disciplines have their own unique considerations.
When you get your real estate license in California, it doesn’t have to be about just selling houses. There are a lot of other career choices that are less competitive, but more lucrative than residential. If you are considering doing both it’s important to bear in mind that very few real estate companies do both well. The skillset, paperwork and databases to sell houses are actually different than those associated with selling commercial.
That's why it's important to make sure that when you do get your real estate license in California, you are lined up with a brokerage that can set you up to succeed. Commercial real estate databases like LoopNet or CoStar can be quite expensive and most residential real estate companies don't have active subscriptions. Similarly, most commercial real estate companies don't have MLS access like a Century 21 or Keller Williams would.
If you have any questions about getting your license or if I can help you get started please call me at 888 768 5285 or drop me a message.
Love,
Kartik
|
A question I get frequently from first year real estate agents is “How should I prepare for a listing appointment?” A real listing appointment. Not your mom’s house or your best friend from college
A question I get frequently from first year real estate agents is “How should I prepare for a listing appointment?” A real listing appointment. Not your mom’s house or your best friend from college but a genuine listing appointment from someone you don’t really know.
I wanted to put together a quick guide that will help you as you move through the process of pitching your first seller client! While this is not exhaustive, it should get you closer to a signature than just winging it.
1. Make sure that the person you are meeting with is the owner
The first step to having a great listing presentation is to ensure that the person you're meeting with is in fact, the true owner of the property. As an agent, you don't want to be on the wrong side of real estate fraud. While you don't necessarily need to see a driver license on the first meeting, use common sense. If the person on title is a female, for example, and you're meeting with a male who says they're the representative of the owner, it's important to dig deep and ask additional questions. In that case, that person may have power of attorney over the recorded owner, but your title insurance company and escrow company will need those documents anyway so ask for them upfront.
2. Research liens on the home
The second step is to call your preferred title insurance company and have them pull title on the home to examine liens against the property. This is a prudent second step for a lot of reasons. First, you want to make sure that the market value of the home is greater than any existing liens. If not, this could turn into a short sale, which would trigger an additional set of documents and an entirely different process.
Additionally, a search of the title will reveal if there are any notices of default recorded on the property, which in many states will require a different purchase agreement. A title search is also important because it shows the owner that you were prepared for the listing appointment and are able to work with title to eliminate any liens that may be showing on the property in error.
3. Have a well researched CMA
The main reason that most properties expire out is an improper pricing strategy. A CMA will examine three aspects of the market:
1.The active listings
2.The expired listings
3.The recently sold listings.
Clearly the most important part of this research are the properties that have recently sold as they represent a willing buyer and a willing seller doing a deal with one another. However, the active properties are also important because it shows the seller what the competition in the area is. Finally, the expired listings indicate a warning as to where you should not be pricing the property.
4. Have your documents ready
All documents should be ready for the listing at the time of the listing. You should bring any state required forms you need to take a listing as well as a listing contract itself. The worst thing in the world is to have the seller say that they are ready to list, and you not have the appropriate documents.
Bring multiple copies of the listing contract with you incase you need to make notes or changes.
5. Leave your judgement at the door
If the seller has experienced a loss in income or a layoff requiring them to sell the property, it's important to be empathetic to the needs of the seller and listen while working diligently to try to maximize the net proceeds to the seller.
Understand what your unique selling proposition is, have confidence that you and your company can get the property sold. And don't forget to smile. =)
6. Handle objections professionally and with ease
It's quite likely that you'll face some objections when making your presentation. Invariably, you may get questions about whether you'll “do it for less”, “price it higher”, or “how many years you've been in the business”. It's important to research as many of these potential objections as possible, and have scripted and truthful responses to the seller’s concerns.
There are a ton of free resources online to help in this if your broker doesn’t provide enough training. There are YouTube videos, blogs, and articles that can help you wade through the sea of a dozen or so objections that are most common in our real estate business. Remember that proper prior planning can prevent poor performance and the more you prospect, role play, and rehearse the greater the likelihood of you taking every listing appointment that you go on.
Remember you have to list to last!
Love,
Kartik
|
Generally speaking, helping a buyer purchase a home should be one of the most fun and exciting times ever. However, sometimes life has other plans for you and your client.. and they don't necessarily
Generally speaking, helping a buyer purchase a home should be one of the most fun and exciting times ever. However, sometimes life has other plans for you and your client.. and they don't necessarily line up with your own.
Experienced agents have all been here - Imagine for a moment that you're helping your buyer shop for their dream home. You've done a tremendous amount of research and have put in significant time and effort into finding something that meets the needs of your client. You’ve written the strongest offer possible and the communication with the listing agent looks good. Things are finally starting to go your way...
... but you end up not getting your offer accepted.
The sense of defeat you feel in that moment can be crushing, to say the least. But that DOESN'T mean your search for the perfect home should come to an end.
As a buyer's agent, one of the most important things you can do in that moment involves helping the buyer get back on track so they can continue to shop and finally secure that home they've been waiting for. Getting to this point isn't necessarily difficult, but it DOES require you to keep a few key things in mind along the way.
Let the Mistakes of the Past Inform the Decisions of the Future
After getting outbid on a terrific home, it's natural for buyers to start to second guess nearly everything that led them to that point. Obviously, they don't want to make the same "mistakes" again in the future - regardless of what those mistakes happened to be.
As a buyer's agent, part of your job is to instill confidence in your client to the point where they believe they won't fall into the same trap a second time. Of course, this involves taking a look back at what happened and helping them learn from the experience in the most positive way possible.
If part of the reason why your buyer was outbid had to do with their insistence of lowballing, help them understand that buyers can often lose out on their dream home by engaging in exactly this type of behavior. Not only can a really low offer offend a seller - even unintentionally - but it can also make them less likely to negotiate upwards, even if your client is more than willing to do so.
Let your client know that they should find out what type of situation they're entering BEFORE they make their bid. Don't be afraid to come right out and ask if there are other offers and where those offers stand. At the very least, this can help manage their expectations prior to engaging in another bidding war over a property.
Encourage your buyer to consider things that go above and beyond a simple monetary offer. Let them know that they can write a letter to the seller, for example, outlining why they love the home and why it means so much to them. You'd be surprised by how much of a difference this can make when a seller is trying to decide between similar offers.
Put in Backup Offers in the Future
At the same time, you should also encourage your client to put in a backup offer on any home that they're serious about in the future. Even if a seller has indicated that they're going with someone else, this is still a great best practice to follow.
You really never know exactly what is going on across the negotiating table. That "accepted offer" from another buyer could fall apart due to a myriad of different reasons. Maybe those buyers got cold feet, or they were unable to secure the type of financing they thought they could. In any event, let your client know that there are still ways to be the "first in line" if that current deal should happen to fall through.
Have Them Believe Another “Dream Home” Is Out There
But in the end, the most important thing you can do to help your buyer get over a house that they lost involves getting them to believe the simple truth that another "dream home" will absolutely come along.
Don't forget that part of why they're working with an agent like you comes down to your negotiating skill. Not only do you have the knowledge from your real estate courses, you (or your company in the case of a newer agent) have been around the block more than a few times and at this point, you've likely seen it all.
With the real estate market developing as it is the chances are high that you'll be able to find a similar home for your client to the one they lost. You'll probably be able to find one that's even better, provided that you're given enough time to do so.
Indeed, that may very well be the most important piece of advice for this situation: tell your client that it's time to stop looking backwards and to return their attention to the future once again.
Love,
Kartik
|
"Why do I need a Realtor, anyway? My house is beautiful and it should be easy to get the best price for my home. How hard can that really be?”
Many people pondering selling their home ask themselves
"Why do I need a Realtor, anyway? My house is beautiful and it should be easy to get the best price for my home. How hard can that really be?”
Many people pondering selling their home ask themselves some variation of those questions early in the process. On the one hand, it's natural to wonder why you need help during a process that seems fairly simple with the help of the Internet.
But at the same time, selling a home is so much more than just another transaction. It can be a long, complicated and precise process that is unfortunately easy to "get wrong" - which is why partnering with a Realtor isn’t only a recommendation these days.
For most people it's become a requirement for a lot of reasons that I wanted to outline below.
Why Realtors Matter: Breaking Things Down
1. A Realtor’s Experience is Invaluable
Maybe the most important reason to bring in a Realtor is that the process of successfully selling a home isn't just lengthy - it can also be inherently complicated. A Realtor brings with him or her a wealth of experience that you simply won't be able to match on your own.
Think about all of the forms, reports, disclosures and other documents that you'll need to complete as a part of this process. Typically these number in the dozens - all of which are filled with reams of technical jargon that can be difficult to understand. Unless you're prepared to become a master in the field while also devoting as much of your attention as possible on getting the best deal for yourself, the chances are high that you may be looking at unfortunate delays (or worse - costly mistakes) if you get this part of the process “wrong."
A Realtor, on the other hand, can help you avoid all of these issues so that you can focus on the big picture piece that matters most: the sale itself. Indeed, they're a partner in the best sense of the term - one that is every bit as vested in your own success as you are.
2. A Realtor Possesses Market Expertise
Another one of the major reasons why working with a Realtor is a good idea is because they're true experts in the state of the market. Active real estate professionals study the market intently. Not just from behind a desk, but also in the field. They are out there each and every day looking at homes and properties just like yours. They really have their finger on the pulse of the market. An overpriced listing is one of the main reasons that property doesn’t sell. A solid Comparative Market Analysis done by an active Realtor can help ensure that your property is priced realistically and competitively.
Everyone wants to get the best deal when selling their home, but everyone has a different definition of the term "best". By providing you with access to objective information rooted in the study of the local real estate market, a Realtor can make sure that everything about your deal proceeds properly.
Note that oftentimes the peace-of-mind that comes with this alone is more than worth the decision for most people.
3. A Realtor Knows How to Market
At the end of the day, one of the most important reasons why consumers hire a Realtor has to do with getting your property in front of as many eyes as possible, all in the name of building anticipation and excitement through all marketing channels.
One of the biggest mistakes that a lot of people make when trying to sell a home on their own involves the assumption that properties sell based largely on advertising alone. "All I have to do is take some incredible pictures and create listing on all of the popular sites like Redfin and Zillow", they tell themselves. "At that point, my house will pretty much sell itself!”
Wrong.
A lot of people don't realize that a significant portion of real estate sales actually come from the contacts that a Realtor brings with them. This includes relationships with past clients who may be in the market for a home again, renters looking to buy, and their own personal network of friends, family members and other associates. Because of this, a Realtor can expose your property to a wider audience than ever - something that you would again be hard-pressed to replicate on your own.
4. A Realtor Brings Negotiating Power to the Table
But overall, maybe the biggest advantage of working with a Realtor ties directly into the negotiation power and knowledge that they've spent their careers honing and perfecting.
All of this is to say that yes - it is entirely possible in 2020 to sell your home on your own. Some people even find success in it. But at the same time... is this actually something you want to do alone, especially if you've never done it before? When the stakes are this high, would you really want to turn down the opportunity to bring someone into the conversation who has been in this situation many times in the past?
In the vast majority of all situations, the answers to those questions are "no" - which is why partnering with a Realtor you trust is and will always be a good idea.
Love,
Kartik
|
As a potential real estate agent it helps to understand how you will likely get paid for your time and expertise. I wanted to examine how agents commonly earn a living, how everything is split, and what's
As a potential real estate agent it helps to understand how you will likely get paid for your time and expertise. I wanted to examine how agents commonly earn a living, how everything is split, and what's risks you take on as a real estate agent in hopes of a payday.
The Common Standard: Commissions
The most accepted way for real estate agents to be paid is to charge the seller a commission which is then split among the buyer's and the seller's agent. This amount is typically between four and six percent of the sale price.
Like most sale transactions, there are exceptions to this rule. Raw land sales, for example, sometimes can be as much as ten percent of the total sale price.
On the other end of the spectrum, there are agents and companies that will work for a flat fee that is substantially less than on a percentage basis. Compensation programs like this are generally more common in seller markets where there are far more buyers than listings for sale.
How Everything Is Split
There are a few caveats to note about this seemingly simple arithmetic. The agent does not get to keep all the commission because they must work for a broker in California who will certainly take some portion of the total commission.
When it comes to how brokers split the money with their agents, a lot of it depends on the agent's experience. A brand-new agent may agree to work for a much smaller percentage as a means of getting their foot in the door. A seasoned agent may take all of their commission and pay their broker a fee to rent their desk in the office.
When starting out in our real estate industry, you can expect to keep between 50 and 70 percent of the commission starting out and this should increase with sales volume and experience.
The Risks of the Agent
It's not always easy to see the risks that the agent assumes if you aren't behind the scenes. Not only do agents have to pay the MLS fees as well as the costs of their insurance and dues, but you’re also taking some of the responsibility for the sale.
For example, let's say the agent spends six months trying to sell a home. They've found an interested party, but the buyers haven't quite formalized their offer. If the seller gets cold feet at the last minute, the real estate agent will typically not be paid. (If the seller had received a formal offer and then refused though, then the broker may have still been entitled to their commission.)
These risks explain why some agents seek salaried positions in property management for example rather than be beholden to the commission. These jobs do exist although they are on the rare side. The vast majority of real estate agents are commission-only for the duration of their careers.
Agents do more than just showcase a property in its best light. The right agent can spot red flags before they turn into legal hassles, counsel sellers about the quality of the offers, and give buyers a better idea of when to jump at a deal. Their efforts are rewarded when the sale goes through, according to the terms of the listing agreement.
Hope this helps explain a little about the world of the agent. If you’re interested in taking real estate classes, please give us a call at 888 768 5285.
Love,
Kartik
|
For most real estate agents, a cornerstone of their business is conducting successful open houses. Because of this, I wanted to write a quick article about how to have a successful one.
Open houses
For most real estate agents, a cornerstone of their business is conducting successful open houses. Because of this, I wanted to write a quick article about how to have a successful one.
Open houses are a good way to get business because it's a marketing tool that is completely free. An open house is akin to a popup retail store without actually having to pay rent. Think about it - You’re able to set up shop and have potential buyers and sellers meet you, give you their information and walk through a property that you or your company are representing. It's a great way to get business without spending any money.
There are a few things that we can do to maximize our efforts conducting open houses and making sure that we have a positive return on our time.
Tip 1: Make sure you are choosing the right property to hold open
This means the property should be easy to find as well as be priced properly. When I say easy to find, I mean that a great listing at the top of a mountain might be a good listing to have, but it might not be such a great listing to do an open house on. If it takes two GPS systems and a satellite to find the open houses, it's probably not the one that's going to get a lot of traffic.
Having the property priced right is also important. The more fairly a property is priced, the more interest it will garner and the more traffic you're likely to have at your open house.
Tip 2: Check out other homes in the area
It's pretty likely that on a sunny weekend your house is going to have a ton of competition from other agents looking to attract buyers. For this reason, it's important to understand what the competition is. If a buyer comes into your open house and asks you about the house around the corner, an easy way to establish your credibility as a real estate agent is to be familiar with all the homes in the area. For example, it would be nice to say something like, "Yes. I've seen that property. It's a four bedroom, three bathroom for $800,000. Ours is also a four bedroom, three bathroom for $780,000 and has an upgraded kitchen." This is a great way to show a buyer that you know the market well and that your product offering is superior to any alternative.
Tip 3: Make sure you market the open house properly
This means lots of signs, lots of exposure on social media, inputting it in the MLS and advertising it on other websites. You may even want to consider dropping flyers on the doorsteps of some of the neighbors, inviting them to an open house. Consider sending mail to downstream markets that might have buyers for the house you're holding open. For example, if you're holding a house open for $800,000, it would be great to send a postcard a couple of weeks before your open house to a $600,000 neighborhood. The marketing piece will inquire whether those $600,000 owners might want to list their house and upgrade to your listing.
Remember that the more traffic you have, the more lead opportunities you are going to get to pick up other buyers and listings for the open house and even other homes.
Tip 4: Follow up strong on walk in leads
The last step to a productive open house comes after the open house is completed. You'll want to follow up strong on all the leads that walk through your open house that day. This does not mean calling them two days later or even the next day. As an agent, if I hold an open house from 1:00 PM to 4:00 PM, at 4:00 PM I'll go take down all my signs, come back in the home, make sure it's clean and presentable. Next, I'll leave a handwritten note to the seller of the house I just held open.
It might say something like, "Dear Mr. and Mrs. Seller, thank you for sneaking away for a few hours so I could conduct the open house. We had 22 people come through and I'm going to follow up with them aggressively. Thank you again for sneaking away for a few hours." Put yourself in the shoes of the seller - I would want to know how much traffic walked through my home and an update from the agent will help accomplish that.
Before I leave the open house and lock up, I’ll make phone calls to all 22 of those people, thanking them for coming and asking them for any feedback they might have on the property. The reason I don't want to wait until the next day is that I know that my competitors are making those same calls later. I want to be top of mind and I want to be the first person those buyers think of when considering buying or selling a home. Following up quickly and aggressively is something that will help achieve that desired outcome.
Remember that holding open house is still a great way to meet potential buyers and sellers while exposing your listing to potential clients. Open houses also please the seller of the home because it indicates marketing activity. The internet will never replace face-to-face contact and holding open house is a great way to capitalize on a time honored tradition.
Best of all, it's free.
Good luck with your open houses.
Love,
Kartik
|
Prepare for the day
The first step in a great day as a Realtor is to prepare for the day itself. This includes going over your schedule, verifying and confirming appointments you may have for the
Prepare for the day
The first step in a great day as a Realtor is to prepare for the day itself. This includes going over your schedule, verifying and confirming appointments you may have for the day, and studying market statistics. The act of studying the market data can be especially helpful for a newer agent as they have time to check the Multiple Listing Service to see what new properties have come on the market, examine properties that have gone under contract, as well as properties that have closed escrow in their marketplace.
This 30-60 minutes of quiet time will set the agent up for business success.
Make sure you role play
As the morning progresses, the second thing that a real estate agent should do is role play. Role playing scripts and dialogues can be extremely helpful for the newer agent, especially because most buyers and sellers have a consistent set of objections that they will give the agent, and understanding how to respond to these objections smoothly and confidently can help increase sales. For example, if you're calling for-sale-by-owners, and the seller doesn't want to pay you a 6% commission, or is hesitant to set the appointment, there are several things that an experienced salesperson could say to increase their chances of success. Consistent role play will help delivery as well as syntax to ensure greater success.
Ensure that you are prospecting
The third thing, once role playing has been done, is to actually prospect. Daily prospecting must be the cornerstone of the salesperson’s day. Finding potential buyers and sellers is the lifeline of your business. As you continue in your career, you will come to realize that income for December actually has to do with how committed you were in October. An October client leads to a November escrow which leads to a December closing.
Understanding the longterm nature of our business means that prospecting must be the cornerstone of your day. High-performing real estate agents typically will spend a minimum of two hours on this activity.
Lead follow up
The fourth thing that should be in the schedule of every high-producing real estate agent is lead follow-up. Simply put, lead follow-up is, as the name implies, following up on the leads as a result of your prospecting. The worst thing that an agent can do is spend a lot of time, energy, and effort into prospecting only to cultivate leads that never get called back or followed up with. The nature of the real estate business is such that the sales cycle can take days, weeks, or even months. Consistently following up with your leads via email, phone, and text message will increase the chance of those prospects ultimately turning into clients and closings.
Schedule time to go on appointments
The goal of lead follow-up, of course, leads us to our fifth activity - going on appointments. Time should be in your schedule every day for face-to-face meetings with clients. This could be listing appointments or showing appointments for buyers who want to look at homes. Sticking to a strict schedule for showing can help you take control of your day. Many newer real estate agents will show property or meet with the client within minutes of them asking. This will lead to burnout because if you're always jumping without any direction, it's easy to get discouraged if deals ultimately don't happen. Having respect for your own time will translate into clients having respect for your time also, so put that appointment block in your calendar, and make sure to follow it as strictly as possible.
Examine the prior day
Finally, at the end of each day, 15 to 20 minutes should be spent reviewing the activities of the day prior and setting up for the next day. Ask yourself questions like, "How productive was I today? How much time did I spend actually and actively looking for business? Are there things that I could have done better today? How can I avoid making the same mistakes tomorrow?" At the end of the day, productive real estate agents ask these questions so they can improve daily.
Incremental improvement on a day-to-day basis will help you ultimately achieve success in the long-term.
Hope this helps.
Love,
Kartik
|
If you were looking for a single statistic that underlined why smart home and home automation technology has become so popular over the last few years, let it be the following:
One recent study revealed
If you were looking for a single statistic that underlined why smart home and home automation technology has become so popular over the last few years, let it be the following:
One recent study revealed that the average amount of money a person can save from using smart home products is about $98.30 per month, adding up to roughly $1,179.60 per year. Equipment like smart thermostats, connected sensors and "intelligent" security systems are more than just a "modest convenience" for many people. They're a true investment in every sense of the term - and one that will essentially pay for itself over time with the right application.
But as is true with so many other areas of technology, smart home and home automation tech is evolving all the time. That's why there are a few important trends in this area that all real estate professionals should be paying close attention to in 2020 and beyond.
The Top Home Automation Tech Trends to Pay Attention To
1. Standardization
One of the most critical home automation trends for 2020 is also one that, for many people, couldn't have come along at a better time: standardization.
A major pain point for so many real estate professionals and home builders trying to use home automation as a marketing tool always involved the fact that there were so many platforms to choose from. Ecosystems from Amazon, Google and even Apple all exist - but rarely do they work together in the way someone would want. Limiting users to one ecosystem also limits device compatibility, while trying to put together a system with a mishmash of ecosystems could easily lead to security vulnerabilities, among other issues.
Thankfully, the major technology players have banded together to create a set of standards designed to make smart homes easier to embrace and more secure at the same time - which is something that professionals will absolutely want to keep a close eye on moving forward.
2. Improvements in Smart Home AI
Another essential trend to watch out for involves the continued evolution of the relationship between smart home technology, home automation and artificial intelligence. A lot of smart home devices are already leveraging AI in impressive ways, like with smart thermostats that "learn" your daily usage habits and automatically make adjustments to regulate a home's temperature without the intervention of the actual homeowner.
2020 may very well be the year that this concept shifts to the next level, when things like facial recognition software driven by AI and machine learning allow security and surveillance systems to become more proactive. Rather than simply telling you "there's someone at the door," your smart doorbell may soon be able to tell you that "John Smith is at the door," thus creating an environment where both threat detection and regular alerts are more personalized than ever.
Even going beyond that, smart devices powered by AI will be able to handle more complicated instructions than their current counterparts. This means that the average smart home user will be able to allow their devices to handle even more complex tasks than they can right now - thus freeing up more of their time and attention to focus on those activities that truly need them and that they're more invested in. This will likely drive a major boost in adoption in smart home tech across the board, too.
The Impact of Smart Homes on the Future of Real Estate
While it’s easy to be impressed by these home automation trends it's equally important to consider the impact they will have on both home building and the real estate industry moving forward.
Reports indicate that 43% of all smart home technology users are currently between the ages of 18 and 34-years old. As those that fall into this demographic mature financially and begin looking for houses, home automation is naturally going to become more of a priority - making it more of a selling point for first-time home buyers too.
Indeed, smart home tech is already having a major impact on people who fall outside of this category, too. There are reports that as many as 81% of people who already use some type of smart home tech said that they'd be more likely to purchase a home that already came with some level of connected technology that they could then add onto in the future.
You're already seeing the inclusion of smart home and Internet of Things-connected devices included in a lot of home listings in markets both large and small across the country. This is one trend that shows absolutely no signs of slowing down anytime soon.
All of this is to say that smart home equipment is more than just a novelty or another passing fad. It's already changed the way that many people think about what a home should include - to the point where it will impact the way real estate professionals think about how to market a property.
All this is to say that if you're a real estate professional who isn't currently paying attention to the hottest trends in smart home and home automation technology, now would be an excellent time to start.
Love,
Kartik
|
It has been said that branding first started in ancient Egypt as herders and livestock owners branded their cattle as a means to distinguish their property from another's. This way, if cattle was stolen,
It has been said that branding first started in ancient Egypt as herders and livestock owners branded their cattle as a means to distinguish their property from another's. This way, if cattle was stolen, whoever saw the branded symbol could figure out who the actual owner was.
In modern times, branding is a way of marketing and communicating one company, or in the case of real estate, one real estate agent from another. Proper branding results in brand awareness, which is essentially the ability of a customer to understand what products belong to a given company and what products belong to another.
The goal of effective branding is to have what marketers call “top of mind” awareness. Essentially, this happens when the customer thinks of a specific need and a brand will immediately come to mind in a given product category. A good example of branding are the following associations:
Bleach = Clorox.
Face tissue, Kleenex.
Coffee=-Starbucks.
These companies have done an excellent and deliberate job of branding and creating top of mind awareness with their consumer. How does this relate to the individual real estate agent? One of the first steps to branding for a successful Realtor is defining the market area that they are attempting to be an expert in.
Become an Expert in a Defined Market Area
Consider web and print assets that specifically are tailored to these farm areas. For example, if you are focused on a specific condo community in your town, consider registering some domain names that have the name of that condo complex in them and frequent updates as to the market in that building or area will help solidify your brand as an expert in that neighborhood.
Example:
If the condo complex is the “Jolly Arms Condos” the agent might register the URL www.jollyarmscondos.com.
Create a Strong Logo
As it relates to branding, a strong logo is critical. If you work for a national real estate company like Coldwell Banker or Keller Williams, you may want to check with their brand compliance guidelines before executing your strategy. Generally if you have colors or a marketing scheme that fits the area you're branding in, this can help give you top of mind awareness. Remember to choose your colors wisely in your logo. We've all walked through a department store and it's obvious that professional branders and marketers use certain colors to elicit certain emotions. Red and yellow tend to pop more than more muted colors.
Invest in Offline and Online Marketing
Also, remember to use both online and offline methods of branding and advertising. Open house signs, yard signs, and door knocking, along with direct mail, are all strategies to employ to effectively brand you as the local expert in that area. There is a need for differentiation. Remember, there are a lot of real estate agents out there. Over one million people have membership with the National Association of Realtors once they obtain their real estate license. Consumers have a lot of choices and it's important to be able to differentiate your strategy and marketing from your competitors.
Is a Niche Market Right for You?
Consider adopting a specific niche market. Do you focus on retail tenant representation? Do you focus on short sales or bank owned properties? Do you focus on condos or luxury marketing? Being able to brand yourself as an expert in any of these niches is useful to building your brand.
Above All Else, Stay Consistent
Finally, remember that consistency is more important than creativity. Branding is a marathon, not a sprint. Even if your marketing isn't perfect, it's important to remember that consistent branding and marketing will help keep you top of mind in the eyes of the consumer. If you're going to do a blog, make sure your blog comes out with some regularity. If you're going to record YouTube videos, make sure that you have a predefined content calendar and schedule. This will help the public see you as a consistent and reliable source of information when they are considering buying and selling a piece of real estate.
Love,
Kartik
|
Maybe you’re considering getting your real estate license because it’s time to sell your house. If you are grappling with the prospect of selling a property for the first time the process can seem
Maybe you’re considering getting your real estate license because it’s time to sell your house. If you are grappling with the prospect of selling a property for the first time the process can seem downright overwhelming.
It doesn’t have to be.
With a bit of information and the right support, you can sell your home for a fair deal with minimal hassles. Here are some best practices to keep in mind.
Step 1: Choosing The Right Real Estate Agent
When I get calls from folks that consider selling their house, one of the first questions most people ask is about real estate agents. While there is no law that says you have to use a real estate agent, there are some advantages and costs to consider.
One of the most basic advantages to using a real estate agent is that they have access to the MLS, a system that compiles all data about the property and gets it in front of other agents and their buyers. Being on the MLS is a huge win because it means more people are likely to see your home.
Another key benefit of working with an agent is that their service is all-inclusive. That means they will handle the marketing, negotiations, and contracts for you.
While there is no legal minimum or maximum commission in California, most real estate agents are going to charge between 4 and 7 percent of the home’s sale price to get your deal done. Typically, that amount is divided to cover both the buyer’s and the seller’s real estate agent fees. This is paid by the seller.
Do you really need an agent? The answer to this question really depends on what you want. Here are a few things to keep in mind:
Do you have the tools and funds to market your home on your own?
If you’re in a competitive market, you may benefit from an agent’s ability to negotiate terms and potentially increase what you get for your home.
You’ll need to meet with prospective buyers, show them your home, and deal with push back over the property.
Some buyers may not wish to work without their real estate agent. That means, if you want to sell to them, you’ll probably need to cover the costs of their agent.
Agents have access to the legal contracts and tools necessary for this transaction. You may need to hire an attorney to help you with the process if you don’t use an agent.
Since most people don’t want to do the above, real estate agents are engaged.
Step 2: Pricing Your Home
The next step is to price your home properly. This is another task that a knowledgable real estate agent can help with. Clearly, the value of your home is dependent on what buyers will pay for it. It is not dependent on what you’ve put into it or how much you think it is worth.
There are websites like Zillow which provide you with an estimate for your home. These websites use data from recent sales in your area to determine the value. Yet, they don’t come into your home to create an accurate assessment of the true worth they only use the broad data available. These site can be a good starting point for knowing what homes like yours are selling for but not the complete picture.
Your agent, if you choose to use one, will help you by creating a comparative market analysis. This provides insight into your home’s true attributes and features along with data on homes like yours that have sold recently.
Step 3: Listing Your House with Confidence
The next step in the process is to get your home listed on the market to be sold. As noted, you can do this with your real estate agent but before you list, it’s important to ensure your home is sell-ready. Here are a few things to keep in mind:
When to Sell
You can sell your home at any time during the year. The spring and summer markets tend to have more buyers, which can mean faster sales and, in some cases, better pricing. However, in the winter, there’s less competition, which can help your home stand out in a desirable market.
Prepare Your Home For Sale
Take the time to walk around your home and create a list of what needs to be updated, repaired, or cleaned. Work to remove as much clutter or extra furniture from your home as possible. This will help to make your home look larger, organized, and clean, making it attractive to buyers. Tackle any types of problems with the home that could lessen the value or throw red flags during a home inspection.
Photos and Videos
Also important is to capture beautiful, professional photos to showcase your home. That’s critical in today’s home buying process. Homebuyers shop online first. If you don’t have photos, they’ll wonder why. If the photos are not professional, that may create the wrong first impression. Professional videos provide clear information to prospective buyers. That means you’re not wasting your time on buyers who won’t fit your home’s specs.
Step 4: Managing Offers and Making Decisions
Ultimately, you do not have to sell your home for anything less than you want, but most of the time, there will be negotiations in the process. When someone comes to your home and places an offer on it, that is an opportunity for you to either agree to the offer or to make changes to it. You can also reject the offer outright. It tends to be best to counter their offer with one that fits your needs. Key things to consider include:
The sale price
Who is paying what closing costs
Any stated repairs or conditions you’re willing or not willing to make
The timeline for closing on the home
Home inspection and repair requests
After you come to an agreement with a prospective buyer, a home inspection will likely be ordered by and paid for by the buyer. Nearly all contracts will be contingent (or dependent) on the home being inspected by a professional. This is a time for the buyer to walk around the home with the inspector to learn about any concerns. They will likely examine the major systems in your home, such as the roof, HVAC, and appliances. If there are concerns, the home buyer may ask you to make adjustments to the contract or to make the repairs necessary. You don’t have to do this, but that may mean your home goes back on the market if the buyer pulls out during their contingency period.
Step 5: Handling the Legal Aspects
Once you and the buyer are ready to move forward, your real estate agent will work with you throughout the escrow process. There are multiple steps involved, including waiting for the buyer’s lender to obtain an appraisal and formally approve the loan and and to close on it. This can take some time, usually 30-60 days. Once the home is ready to close, you’ll need to work with the title and escrow companies to sign the deed and other requirements. This will involve transferring money to you from the buyer or the lender to complete the sale.
I could literally write a 50 page guide on selling real estate, but I wanted to keep this somewhat short.
If you are obtaining your real estate license in the hopes of selling your own property and saving the commission this is totally possible.
Let us know how we can help.
Love,
Kartik
|
Doing well on your real estate exam is the first step to getting your career going. If you are like some of our students, this can be a daunting thing especially if you’ve been out of school for a while.
Doing well on your real estate exam is the first step to getting your career going. If you are like some of our students, this can be a daunting thing especially if you’ve been out of school for a while.
It doesn’t have to be.
What’s important is that you understand the information necessary to pass the real estate exam. To help relieve some frustration and improve your chances of success, consider these study tips.
1. Review What’s on the Exam
Take a few minutes to review what’s on the actual real estate exam. If you were a student of ours, this is outlined for you in your Principles book. Merely having a basic understanding of what’s on the exam can calm a lot of fears for students.
The state publishes a percentage breakdown of topics that are tested and our real estate exam preparation website is tailored so the questions are in the same ratio that the government exam is. This way there are no surprises on test day.
2. Create Digital or Physical Notes for Key Concepts
As you are reviewing your notes from your pre-license coursework, consider creating notecards or flashcards with key concepts. Write them in a question format with the answer on the back. There are flashcard apps you can use as well if you want to have access to studying on your phone.
Also, it’s been proven that the act of physically writing things down can go a long way to help retain information.
3. Read Your Notes
If you haven’t done so yet, read through all of the materials you’ve been assigned. Create notes on topics that relate to your real estate exam. It’s a good idea to create notes for topics you are unsure about or very specific elements such as vocabulary terms or other more broad real estate concepts.
As you do, remember how important it is to retain this information. It’s not just about the exam, but it is applicable for day-to-day work as an agent. For example, if there’s a topic that is complex to you, look for a real-life example of how this would apply to your career or the work you do. That way, you’ll better understand what to expect.
4. Don’t Reach Out to Practicing Agents
I would avoid having long drawn out conversations with other real estate agents. Most of the time, they will say things like “Don’t worry what’s on the real estate exam, you won’t use any of that stuff anyway.” The constant repetition of how academic and impractical the concepts tested are can actually discourage some of our students from properly preparing and studying.
While it is true that the real estate exam contains a broad set of topics, all of which are not applicable to every deal, it’s still important to stay focused on the goal of actually passing the real estate exam.
If you can’t help yourself, make sure you talk to agents that support you in making key decisions and learning how to navigate complex topics. These agents can give you insight into real-life applications of the material you’re learning. They can also put your mind at ease.
5. Take Several Practice Real Estate Exams
It’s important to have state-specific real estate license practice exams available to you. You can find them on our website. Luckily for you, our system is modern and up to date to ensure they include the most recent updates to the real estate test itself.
Focusing on our real estate practice exams can point out areas where you need to focus a bit more on your studies. Refrain from taking them one after another. Instead, use them as you study to see areas you should focus on going forward.
6. Understand How To Take Tests
While the material you need to pass the real estate license exam is critically important to know, it’s also helpful to have some test-taking skills, especially if you haven’t dealt with high-pressure tests recently. Consider these strategies:
Read every word slowly in every question. Sometimes, you’ll miss words such as “if” or “all” – and that can change the answer.
Don’t rush through the test. Take your time to read the data and analyze it from a strategic view.
Breathe through your test. If you find yourself overwhelmed or under too much pressure, that’s when you know you need to close your eyes, breathe in deeply, and calm your heart rate.
Make sure you sleep well in the week leading up to your exam. Don’t binge the night before as that can limit your cognitive capacity later on.
Arrive on time for your test. Get a good idea of the layout of the area. You want to feel comfortable.
If you don’t know the answer to a question right away, skip it. You can go back to it later. Don’t put too much time into a single question.
Don’t rush through the exam. Make sure you take your time and focus.
If you’re really struggling with test-taking itself, do a few practice exams in a formal environment, such as in a library or office space. This can help give you some peace of mind.
7. Stay Positive and Upbeat
Passing your real estate exam is a step towards starting a new career. It is a lot of work – and that can seem like a big mountain to climb. However, focus on the big picture. This is a career that you are going to love. The more hands-on experience you have, the better your outcome will be.
Practicing for your real estate exam can be a very eye-opening experience. This is what you’ll soon be an expert in, helping others to achieve their goals of property ownership.
Love,
Kartik
|
One of the most difficult skills for new Realtors to learn is budgeting. Along with good time management, the two skills are probably the core requirements for first-year success in this challenging profession.
One of the most difficult skills for new Realtors to learn is budgeting. Along with good time management, the two skills are probably the core requirements for first-year success in this challenging profession. What does it take to create a realistic budget for a new agent? In one word, the answer is "planning." Approach the task in much the same way as a family might make an annual or monthly budget, with research and tracking. Here are the three steps to building a budget that can work for any new agent and is adaptable as time passes.
Track and Analyze
Carefully log every penny you spend for two weeks running and then apply some honest analysis to what you come up with. Logging of all the money you spend will reveal where there are "leaks" in your current monetary habits and will also show what expenses are absolute necessities. The effectiveness of this step, the only one that takes place before making a pro-forma budget, is based on the ancient adage, "Know thyself." Until you know what you spend, when you spend it, and why, there's no way to make a realistic budget.
Build a Budget
List every monthly expense and use a worst-case scenario to estimate average monthly income. If there's more income than expenses, you're still not off the hook. Be certain to go through each expense item and determine whether it can be reduced or cut out entirely. Are you spending too much on eating out, clothing, gifts? If so, snip those expenses down to levels that make sense.
After working with all the data in a spreadsheet and getting a feel for what an "average" month looks like, write out a separate document called "Pro-forma Monthly Budget," and save it to your desktop. For the next two months, allow yourself to fine-tune the pro-forma budget with new revelations or data your forgot on the first go-round. At the end of 90 days, you should have a pretty accurate and useful monthly budget that can serve as a guideline for at least the first year of your practice. In several months, your skills and network will have changed enough to require another round of budget-making. Remember, budgets help you identify ways to cut costs and increase profits, and those are good things. The budget is your friend, not an entity to be feared.
Plan for Emergencies
Real estate agents can take a tip from personal budgeting theory: it's essential to have an emergency fund in place that can cover at least three months' of expenses. Every smart family has a fund like this and so should every real estate professional. Especially in a field where income is notoriously volatile, an emergency fund will help to smooth out the natural income vicissitudes.
Final Thoughts
There's no reason to reinvent the wheel, so do some online research about typical real estate agent budgets to get ideas about common expense categories that might not occur to you as a new agent. Be careful, however, not to assume anyone else's categories or specific dollar amounts will apply to you. Always do the hard work of tracking and analyzing before you begin to create your own personal budget.
Remember, the real estate business is a marathon not a sprint. Being able to weather the storm is more important than ever now.
Love,
Kartik
|
The process of buying a home can be complex. What’s even more complex is helping a person to make the best decision for their family. For most people, this is the single largest investment they’ll
The process of buying a home can be complex. What’s even more complex is helping a person to make the best decision for their family. For most people, this is the single largest investment they’ll make during their lifetime. It’s a huge financial commitment. As a real estate agent, it’s your job to help them through this process, ensuring they not only buy a home, but they buy one that’s right for their needs.
It comes down to managing client expectations. From the start of your relationship with a client, it’s essential to create a clear understanding of what their needs are. Managing their expectations isn’t just about closing a deal. It often includes providing complete insight and guidance. Here are some tips to do that.
1. Be Honest, Every Step of the Way
It is quite common for people to make decisions based on perceived thoughts or opinions. Sometimes, your client will be downright wrong. Other times, you need to share with them the other side of the coin. When you meet with your client, be honest with them from the start. Tell them you’re going to point out the good and bad, and always provide authentic information.
2. Don’t Overpromise
When a client walks in the door with too little money, no mortgage pre-approval, and little in the way of a down payment, don’t promise them a home. This is particularly important with first-time home buyers. You’ll do your best, but they need to be realistic about what their money can buy. This is a hard talk to have, because you may feel as though you’ve failed to meet their needs. However, if you’re frank with them and show them data, they’ll understand how they need to adjust their budget.
3. Create Clear Goals
To manage your client’s expectations, you need to know what those are. This often means sitting down and going over what their needs are and what they would like in addition to that. You also want them to know what you’re going to do for them, including the marketing, negotiations, and research you’ll put into the work. Then, outline what you need from them – accurate information, fast responses, and flexibility throughout the process.
4. Ensure Near-Constant Communication
You don’t have to break away from an important meeting with your family to answer client calls every time, but be there for them. In the day and age of text messaging, it’s rather easy to do this. You want them to know you’re available to discuss. Talk about the best ways to communicate and how often is right for them and for you.
5. Provide Them with Reports
Whether you are listing their home or helping them buy a home, you want them to know what you’re doing to support the process. Be sure to provide them with data on the market on a weekly basis. Offer insight into what’s taking up your time on their project and communicate what you’re doing to change things up as needed.
Managing client expectations improves outcomes while also ensuring a more steady and smooth process is possible. You can’t please everyone every time but it’s important to understand that your ability to manage the client through the process is critical to long-term success.
Love,
Kartik
|
For real estate agents, past clients represent a wealth of new business in years to come if the relationship is nourished and kept up after the sale. The problem for some agents is that they lose touch
For real estate agents, past clients represent a wealth of new business in years to come if the relationship is nourished and kept up after the sale. The problem for some agents is that they lose touch with past clients after doing business with them, but there are a few reasons you should devote extra time to making sure you remain connected.
In generations past, people often bought their home and stayed there for their entire lives, sometimes even leaving the property to following generations. Today, people are far more mobile than ever before. For real estate agents, there are two big reasons to maintain contact with past clients:
They May Need Your Services in the Future. People rarely stay in the same home for the duration of their lives and many people also invest in other properties. Return business is great because you build an ongoing relationship of trust and friendship. It’s much easier to keep a current client happy than to try and obtain a new one.
Happy Clients Recommend You to Others. Even for clients who will rarely, if ever, need your services again, it's important that you maintain a positive experience and connection. These clients will often have friends and acquaintances who are looking to purchase or sell homes and that can mean a great pipeline of referral business for you. We even see this with our real estate school. The great majority of our new students have been referred to us by a former one.
4 Ways to Rekindle a Connection with Past Clients
If you haven't previously made it a point to market to past clients, you're not alone. Many agents lose or drop contact with one-time clients over the course of months or years since a sale. The good news is that it's never too late to reconnect.
Here are a few ways you can reach out to old clients to build an ongoing relationship.
Start By Going Through Your Past Client Lists. The first step to rebuild these relationships is setting some time aside to go through your past sales. Review notes and old emails on clients to give yourself a quick refresher on who they are and their lifestyle. As an agent, you deal with a lot of people throughout the day, so taking the time to review all the past information you have can be a great start. Remember, though, if a good deal of time has passed, that client has likely experienced some major life changes and may be in a different place financially so tread lightly.
Send a Personalized Note. A great way to reconnect is by simply being honest. Send them a personal note. This can be through email or physical mail. If you do send a letter by mail, hand addressing it can be great because people are less inclined to see envelopes that are handwritten as sales material. The note can be a simple re-introduction, maybe an apology for not being in touch, and a personal note about something in their life. You can also include your personal social media accounts and contact information and let them know you'd like to stay in touch.
Acknowledge an Anniversary. If sending a note out of the blue sounds a bit awkward to you, it's always great to go with the old stand by of sending a card or note for an occasion. This might be the anniversary of the purchase of their home or their birthday.
Find Them on Social Media. Social media can often be the best way to resume contact with old clients. People often accept friend requests from a wide variety of contacts. Take some time to hunt for your past clients on your favorite platforms and use those channels to reconnect. You might include a personal note right when you reach out or once they've accepted your request to connect.
Ways to Maintain an Ongoing Connection
There are a lot of ways to reconnect with old clients, but maintaining that relationship is the real goal. Here are a few ways that you can cultivate an ongoing relationship with these contacts so that you stay in their thoughts if they ever need an agent for future real estate dealings.
Send a Thank You for Referrals. If a past client referred you to someone, make sure you acknowledge that. You can send them a quick thank you note to show your gratitude for the trust and recommendation.
Plan a Coffee or Small Gathering. Small events can be a great way to maintain a connection. You can host a small thank you event for past clients or offer a seminar on some aspect of property ownership. There are a million different ways to plan an event that make it worthwhile for contacts to attend and it gives you the opportunity to build an in person relationship. If your office has a large training room consider using that as free space to host your event.
Send Them Updates On Property Sales in Their Neighborhood. Many people really appreciate knowing when a home goes on the market in their area. They may also be interested in knowing when one sold, so they can introduce themselves to new neighbors.
Keep Them In Your Future Marketing Lists. Whether you send out email campaigns or routinely do newsletters to give your prospects worthwhile information, it's a great touch to keep past clients in the funnel on these efforts.
Past clients can represent a great market for future sales and you've already cultivated their goodwill by doing a great job on the property needs they've had so far. If you've let a lot of time lapse between contact, it's still worth your time to try to reconnect when possible.
If you are considering taking online real estate classes call us at 888 768 5285 and we can help you get enrolled
For additional ideas, check out this blog:How to Keep in Touch with Real Estate Clients Using Email
Love,
Kartik
|
When most people think about working in real estate, they immediately think of selling houses. While residential sales are the most common occupation for those with a real estate license, it’s far from
When most people think about working in real estate, they immediately think of selling houses. While residential sales are the most common occupation for those with a real estate license, it’s far from the only option. In fact, there’s a lot you can do within real estate that has nothing to do with the conventional sale of houses. Here are some of the real estate jobs available for those that don’t want to just sell houses.
Commercial Real Estate
If you like sales but don’t love the idea of selling homes to residents, you can still find the career of your dreams within real estate. Instead of selling homes, you’ll sell and lease office space and property to businesses. But the differences between commercial and residential real estate sales don’t end there. In commercial real estate, agents must be knowledgeable about the sectors in which they work and provide valuable analysis to potential buyers. Since newcomers to an area might not know much about the region’s demographics or traffic levels, it’s the commercial real estate agent’s job to fill them in and help find the best location or tenant for a given area. Because of this added analysis, it can be a longer and more difficult process to make a sale in the commercial realm than in the residential space, but the rewards can be greater -- a commercial Realtor can make a great living.
Real Estate Broker/Owner
Although it’s commonly believed that a real estate license is the same across the board, most states actually have levels of real estate licensure. And if you’re not content to act as a conventional real estate agent -- or if you’ve been an agent and want to try something else -- there’s still a way for you to get involved in real estate without being an agent. Becoming a real estate broker requires a healthy dose of ambition, but there could be serious benefits down the road. As a broker, you’ll have your own firm where real estate agents will work for you. It’s a way to keep your hands in a lucrative business while also allowing you to start your own business, applying your knowledge and expertise in an industry for which there’s always demand.
Property Manager
Earning a license also opens up the door to becoming a real estate property manager. Property managers oversee buildings for owners. A common role for a property manager that’s responsible for the units within an apartment complex (or a series of homes owned by a person or company) and is charged with fixing repairs, collecting rent and finding new tenants when existing tenants move out. This type of job is for someone who loves real estate and likes accounting, but doesn’t want to become a Realtor. Property managers are generally paid based on the gross rents collected; property managers can also receive leasing commissions for screening and finalizing deals with tenants.
Real Estate Assistant
The life of a real estate agent isn’t for everyone. Not everyone wants to travel to open houses and to meet with clients. However, for those that simply want to work in real estate while remaining in one location, there’s a way to make it happen -- and you may not even need a real estate license to do it. A real estate assistant provides support for agents and brokers, including answering phones, posting listings and preparing paperwork. These tasks help the agents tremendously as they manage their workflow. It’s also a good introduction for those who are unfamiliar with the inner workings of real estate. A real estate assistant may realize that they want to be an agent after all, and they can continue to work as an assistant while they take real estate license courses.
Financial Analyst
Real estate agents and brokers are often too busy with their everyday duties to take note of emerging trends in the marketplace. That’s where financial analysts come in. Analysts look at real estate data and attempt to predict where real estate is going, particularly in the local area. Financial analysts that work in real estate are also tasked with finding attractive investment opportunities so that the company can properly allocate its resources. Being a real estate financial analyst means being based largely in an office; it also doesn’t require a real estate license. Most large commercial real estate companies will have analysts on their team.
Real Estate Appraiser
If you like numbers, but don’t want to be tied to a desk all day, real estate appraisal might be the career for you. You don’t need to go to real estate license school but you will need to obtain a separate appraisal license. Once you do that, you’re able to determine accurate property values for the houses you examine, based on the home’s characteristics and comparable sales data. Appraisers are used when houses are sold or refinanced.
Inspector
Outside of the agent, the bank and the buyer, an inspector is the most important part of any real estate transaction. Inspectors visit properties before they’re sold and look for potential issues that would not only impact the sale, but would cause problems for the buyers down the road. Inspectors must be highly knowledgeable in all areas regarding houses; they don’t need a real estate license, but if you’re interested in being a real estate inspector, you’ll need to understand the inspector requirements of your state.
Loan Officer
Real estate loan officers don’t actually issue loans. Instead, they’re the intermediary between the bank and the buyer. Loan officers help buyers to get approved for financing, point out any issues that inhibit a buyer’s ability to obtain a mortgage and recommend products based on the unique situation of each home buyer. To become a loan officer, you don’t necessarily need a real estate license. Instead, you’ll have to take a 20-hour pre-licensure class that covers the laws and legalities around real estate lending. After that, you only need to pass the NMLS SAFE Mortgage Loan Originator Test and you’re ready to start working as a real estate loan officer.
There are plenty of cogs in the real estate machine. If any of these fails to function properly, the entire operation fails. Even if you don’t want to be a Realtor or obtain a real estate license, there’s a career option for you in our great business.
Love,
Kartik
|
Real estate is most often thought of as being a numbers business. This is probably because it’s an intricate business that includes heavy regulations, lots of red tape, and major financial intricacies.
Real estate is most often thought of as being a numbers business. This is probably because it’s an intricate business that includes heavy regulations, lots of red tape, and major financial intricacies. For many people, their home purchase represents their largest investment. With that in mind, agents sometimes concentrate on the business and legal sides of real estate.
While you certainly don't want to overlook the hard and fast figures, real estate agents need to remember that the core of our industry is people. Unlike other investments, the home you buy is less about the money as it is about emotion. If you need a statistic to back up that premise, look no further than reporting suggesting that staging a home makes it sell faster.
Of course, real estate agents know that the psychology of staging a home is all about helping prospective buyers imagine the life they would have once they purchased their home. It's not about the dollars. It's about the quality of life.
How to Approach Real Estate in a People Centric Way
Whether you're a new real estate school student, experienced agent or investor in properties, it's important that you understand that the end client is looking for more than a great financial investment. That's not to say that buyers and renters aren't looking at the bottom line at all. People have budgets they need to adhere to. But when they do make a final decision on where they're going to live, they're going to choose the best home that meets their lifestyle and emotional goals within a given price range.
For a real estate agent, this means meeting your clients' needs in a proactive way. You have to recognize that they're not only investing in a property, they're planning the kind of life they want to have. The neighborhood and community will play into their decision almost as much as the actual structure of the home.
This is why so many real estate agents use drones and spend a great deal of time learning as much as possible about the neighborhoods. These extra insights help you find the right community and neighborhood for your specific buyer. A couple with a young family may be more interested in a neighborhood with a lot of family friendly activities and amenities. On the other hand, a single professional might be more concerned with culture, nightlife, and easy access to travel.
Finding the right home for a buyer is about finding the right atmosphere, too. A great agent will listen to the types of things their buyer is saying and ask pointed questions about the type of life they enjoy. A buyer might not know all the things they're looking for until they see it, but the right agent will have a great way of getting to know the buyer and showing them all the amenities in a property and area that they will love and appreciate.
It's Not Only About the Property, It's Also About the Experience
Real estate is a bit of a juggling act. You have to know the ins and outs of contracts and loan documentation. You need to know the neighborhoods and market pricing. You need to be up to date on the latest construction and property trends. But the biggest piece of the puzzle is your ability to connect with your buyer.
The home buyer's experience should be a primary goal for any agent. This includes listening to what they're looking for and having the knowledge and foresight to find the best properties that meet their ideal home needs. A great agent knows how important this purchase is for the buyer. A home is unlike any other purchase because, at the end of the day, you're investing in the place that you will raise your family and make your memories.
An agent needs to place customer service as the highest priority. In any business, you want to be receptive to the client and always follow through on the things you agree to - like making sure you remember meetings and scheduled showings. In the real estate industry, you may also need to do a bit more hand holding with some clients.
It can't be overstated how important this purchase is to the client. They may want to view a property more times than average or have extra questions about the property history. Ideally, as an agent, it isn't just about getting the client to purchase. It's making sure that they are happy with their home for years to come.
The big reason I wanted to write this blog post is because I want all our real estate license students to realize that the experience of buying a property is almost as important as the property itself.
Love,
Kartik
|
First-time home buyers need all the help they can get. That's not a derogatory statement; it's the absolute truth. Put yourself in their shoes for a moment. Making a decision to spend several hundred thousand
First-time home buyers need all the help they can get. That's not a derogatory statement; it's the absolute truth. Put yourself in their shoes for a moment. Making a decision to spend several hundred thousand dollars is not one that should be taken lightly. Because of this, some real estate professionals specialize in working with new buyers and have come to understand the unique challenges they face.
Whether first-time home buyers are your specialty or not, at some point in your career you're bound to deal with newer buyers. There are even continuing education real estate classes you can take to learn the intricacies of working with this unique group of buyers. If you find yourself with a client who has never purchased a home before, keep the following points in mind so you can do your very best for them from day-one until after closing:
House-hunting: You should help the buyer find the right location, type of home and price range of homes that fit their budget. This means taking into consideration what they want in terms of school district, nearby social amenities, prices, and much more. What comes naturally to you, as a real estate agent, is a brand-new universe to first-time buyers. Help them hunt for the ideal home.
Pre-approval: Explain the key difference between pre-qualification and pre-approval to your clients. The former is not nearly as important as the latter. Pre-approval will let them know what they can afford, and it will guide you as you begin to show them homes that fit their budget. It's equally important that you advise the buyers not to do anything that will change their financial situation between now and closing. They should understand that now is not a good time to buy a car or apply for other loans. Doing so can really jeopardize their chances of being approved as their debt-to-income ratio will be skewed.
Inspections: Help your new buyers choose a competent inspector. Remember, they haven't a clue about any of these issues. In a state like California this is extra important because there is no licensing or regulatory oversight of home inspectors in our state. Perhaps they know about having to get an inspection, but you can guide them to a professional with relevant experience on the kinds of homes they're looking at. It is also essential that you attend the home inspection. Your presence will give vital first-hand knowledge about any issues that come up. Plus, you can walk your buyers through the process of how to use inspection report data to negotiate their position if needed. This is one area where first-time home buyers often lose their way by hiring so-so inspectors and failing to use the report to tweak their offer.
Negotiation: Experienced real estate professionals know how to get the upper hand in a negotiation. First-time buyers often believe that the asking price is carved in stone. You need to show them how to make an offer based on what the house is really worth based on objective criteria. Many buyers report that when they purchased their first home, the real estate agent helped them get a significantly lower price than what the seller was originally asking. Use the tactics you learned in real estate school along with your real-world experience to get the best possible deal for your buyers.
Communication: You, the agent, are solely responsible for keeping the lines of communication open among the parties. All the parties look to you as the quarterback because you are essentially speaking for the very people who will ultimately come up with the funds to make the deal happen. Don't let anything slip through the cracks. Touch base with everyone on regularly. Being a reliable communicator is one of the things you sign up for when you get a real estate license.
Loose ends: Follow up on all the loose ends that crop up just before and after closing, and stay in touch with your buyers after they move in. As an agent, you know there are lots of little things that can slow things down on closing day. Do they have all the ID they'll need for the notarizations, for example? Remember, the buyers will think of you as a friend and mentor long after the deal is done. Maintaining this relationship can mean referrals and lasting relationships with people you enjoy spending time with. Think of it as long-term networking.
After you get a real estate license and work for a few years in the industry, you'll learn that some home buyers are much more experienced than others. People setting out to purchase their very first home need all the encouragement and support you can give them.
Agents learn a lot from their real estate course about different kinds of buyers, but it takes "on the ground" experience to fully comprehend the many ways you can put your knowledge to work for special first-time ones.
Call us at 888 768 5285 for more info on how to get a real estate license.
Love,
Kartik
|
If you were searching for a home in the 1950s, you essentially had to do so "the old-fashioned way" - by driving around to available properties in your area and seeing as many of them as you possibly could.
If you were searching for a home in the 1950s, you essentially had to do so "the old-fashioned way" - by driving around to available properties in your area and seeing as many of them as you possibly could. Not only was this a time-consuming process for most people, but it was also inherently ineffective. There are only so many hours in a day and you needed to be very judicious about how you spent them while on the hunt.
Then, in the early 1990s, something incredible happened: the World Wide Web was born. It's not a surprise that the prevalence of the Internet in the homes of average people (as opposed to college campuses and businesses) is directly related to the rise of real estate photography. Around that time, real estate agents realized that by including color photos on websites and listings for properties, they could generate more interest - and more leads - than ever before. Home buyers could benefit too, as now they could not only see properties in an adequate amount of detail without ever actually getting in the car, they could suddenly see homes for sale in other cities or even states.
This gave everyone involved more options than ever and thus, one of the most important real estate trends of the last quarter century was born.
Over the years, this technology has continued to advance and the visual side of the digital experience has become more crucial than ever. Now, it's not uncommon to see real estate agents buying drones so that they can capture high definition videos of a particular property from the air. All of this is in service of an essential goal for any agent: helping someone get a sense of what it might actually be like to live in a property through any means necessary.
But as is true in so many other industries, technology in real estate has never really sat still for long. Advancements like the Matterport camera have not only changed the way that agents and buyers alike think about what a listing can be... they've also essentially changed the touring process itself, both for the better and for all-time.
Enter: The Matterport Camera
Image Source via matterport.com
Originally founded in 2011, Matterport is a company that offers premium camera solutions designed to capture, store and share three dimensional images and models. Based out of Sunnyvale, California, the company's founders say that they started their business to support any customer that relies on integrated 3D models to operate their own organizations - which is a large part of the reason why the platform has been so successful particularly in the real estate industry.
How Does the Matterport Camera Work?
The actual Matterport devices themselves can be paired with any compatible camera, or a smartphone or other mobile devices like an iPhone. Though the specifics will obviously vary depending on the model you're talking about, in general the process goes like this:
First, you use your camera and Matterport to capture HDR panoramic imagery. What makes this solution different from a standard camera, however, is that sophisticated depth information of the environment is captured at the same time.
The Matterport platform synthesizes all of that spatial data and visual imagery, essentially combining it in a way that creates a dimensionally accurate 3D digital "twin" of the environment in question.
The platform provides further tools that real estate agents can use to generate photo galleries and even virtual "walk-throughs" of a space.
The Matterport SDK can be used to integrate this content into an agent's own website or branded applications, thus making it possible to share with anyone, at any time, and from any device.
In other words, it's a way to transform standard 2D images into 3D "twins" that are spatially accurate and engaging in a way that regular photos can never be.
What Are the Benefits of the Matterport 3D Camera?
At the very least, it's a way to allow the photos of a house or other environment to "come alive," offering an experience that is far more interactive than ever before. Matterport images naturally have a bigger sense of dimension to them by design, meaning that people can get a feel for how big a room is or how tall the ceilings are without ever physically stepping foot in that place.
Over the last decade, savvy real estate agents have started to use it to make those early stages of buying a home not only more efficient for their customers, but more fun and exciting as well.
But as is true for so many other examples of state-of-the-art technology, a lot of people viewed Matterport as little more than a "fun addition" to the buying process up to this point. Yes, it's helpful to get a better sense of the way a home "feels" from the comfort of your computer chair. But for most people, it was a way to quickly disqualify a few homes from their tour list so that they can spend more time in those that remain when they scheduled their in-person tours. It was an asset to real estate professionals, to be sure - but few looked at it as something that was really going to "seal the deal" when it came to actually making a sale.
Transitioning to 3D Tours During the Coronavirus Pandemic
Until, of course, the Coronavirus pandemic hit in early 2020.
Just because roughly 60% of Americans are currently under stay-at-home orders does NOT mean those people don't need to buy a new house. A lot of people were likely already in the process of searching when the COVID-19 situation first hit, and others knew that this summer would be the one when they finally moved into the home of their dreams. Being required to stay in your home for an indefinite period of time has certainly hampered those efforts, but luckily the wonders of modern technology have been able to step up and lend a helping hand the same way they always do.
According to one recent study, Zillow in particular said that it saw a massive 191% increase in the creation of 3D home tours in one week at the end of March, 2020, when compared with the average number that were created in February. Likewise, real estate brokerage Redfin indicated that it saw a 494% increase in requests for virtual walk-throughs and agent-led video home tours, up dramatically since the beginning of March.
Truly, this is something that couldn't have come along at a better time - though even those at Matterport would have had no way of knowing that just a year ago. For so many areas in the country, people have no idea how long current social distancing requirements will stay in place. Even once stay-at-home orders are lifted and things begin to get "back to normal," it'll be difficult to find people willing to walk through what is essentially a public space for a home tour with an in-person agent for the foreseeable future.
Thanks to devices like Matterport, however, they don't have to. Virtual tours like those offered from Matterport are a perfect opportunity to show prospective clients a finished, furnished interior in a way that still keeps them as active and as engaged in the buying process as ever, all in a way that seems like it was tailor made for the current environment that we're currently living in.
Tomorrow's Technology, Available Today
In the end, it was already clear that the Matterport camera (or at the very least, something like it) was going to be the future of the real estate industry as we knew it. It's just that thanks to Coronavirus, few people likely could have predicted that the "future" would have arrived quite as quickly as it did.
Even on a basic level, Matterport tours bring with them a host of unique advantages for real estate professionals that can't be ignored. First off, they save a tremendous amount of time because customers can see a property on their laptops, phones and other devices with an incredible sense of immersion. They can instantly get a feel for what it would be like to live there without physically seeing it, thus preventing the need for agents to field constant phone calls and allowing them to focus on other aspects of their business that demand their attention.
They're also an incredible opportunity for real estate agents to cut costs, as they no longer have to spend countless hours driving back and forth to meet potential clients only to have them quickly realize that the property in question just isn't for them.
But in an age when it will be difficult to get people to feel comfortable with actually walking into a home for quite some time, Matterport tours and other 3D options are a perfect way to keep the real estate industry moving forward as efficiently and as strongly as it can. It's also something that is going to continue to get even more popular as the technology at the heart of it continues to advance.
Love,
Kartik
|
Many people who are in the market for a home consider purchasing a foreclosure for various reasons. The two most common motivating factors include getting an inexpensive place to live and purchasing so-called
Many people who are in the market for a home consider purchasing a foreclosure for various reasons. The two most common motivating factors include getting an inexpensive place to live and purchasing so-called "investment properties" that can be renovated and sold for a nice profit. There's nothing inherently wrong with these concepts, and a good number of buyers do indeed find major bargains.
But like everything else in the world of real estate, there are pros and cons to purchasing a house that is in foreclosure. The best way to approach the question is to look at what it means for a property to be categorized as "foreclosed," and what the most common advantages and disadvantages are when it comes to buying foreclosed properties. Learning how to invest in real estate can be an important tool for any consumer.
What is a Foreclosure?
In the broadest terms, a property becomes a foreclosure when the original owners can no longer make the payments and the bank takes ownership and possession of the home. At that point, buyers aren't dealing with the former owners of the house. They're buying directly from the bank (different than a short sale discussed below).
Banks don't like being in the home-selling business, so they're often anxious to unload whatever houses they are holding in inventory. There are lots of reasons a home can go into foreclosure, but the inability of the original owners to honor the terms of the original note is the most common scenario.
What are the Main Advantages of Buying a Foreclosure?
Foreclosures can be attractive buys for a number of reasons:
Low price: The most common advantage for buyers is a price that could be lower than market value. In some cases, banks are willing to accept offers that are less than you would pay if the home were being sold by its original owners. As far as banks are concerned, the high level goal of selling a home is to recoup their investment. If they can do that, and if there aren't several other buyers bidding the price up, then they're usually glad to get the asset off their books and into your possession through a sale. Prices on foreclosures can be lower than market value.
Title can still be clear: If you are buying an REO from a real estate broker and there is a standard escrow you can often get title insurance on it guaranteeing that the title is free of clouds.
Financing is virtually the same: In many cases, you can still use FHA, VA or conventional financing options to purchase a foreclosure. The only difference is that you're submitting your bid to a bank rather than a person. Expect the bank to make a counter-offer if they aren't happy with your first bid.
Investment opportunities: If you don't plan to live in the house and have the funds for upgrading or repairing it, then a foreclosure can be a smart way to invest in a potentially profitable piece of real estate. Some people have slowly built up a small portfolio of homes for sale by acquiring low-cost foreclosures and having them repaired.
What are the Disadvantages of Buying a Foreclosed Home?
There's a downside to buying foreclosed homes. Here are common disadvantages:
Closing can take a long time: Depending on the reason the home went into foreclosure, it might take you several months to close on the property after you decide to buy it. If you're in a hurry, or need to use the house as your main residence, time may not be on your side.
This is more true with a short sale. A short sale is different from a bank-owned foreclosure because the seller is not the lender in a short sale. The reason that short sales can take a longer amount of time to go through is because in a short sale, the seller needs approval from their lender to sell the property for less than the amount owed on the home. This third-party approval can take time to process.
Condition is usually "as-is": This is the main disadvantage of buying a foreclosed home. The condition is often quite bad and you have to do your best to figure out how much it will cost to bring it up to par. Generally banks selling foreclosures are exempt from providing a buyer with many of the disclosures that you would otherwise get from the prior owner. That means a thorough inspection at the very least. Next, you'll need to hire one or more contractors to give you estimates for repair work. Perhaps the roof needs to be replaced or there are plumbing problems.
You'll need to be approved and have good credit: You need to check with your lender and see if you can get approved for financing on a foreclosure. That typically means you'll need at least "good" credit and perhaps much better than good. Like any real estate deal, do not venture into the foreclosure market until you get a go-ahead from your own lender.
There's a reason it's still on the market: Foreclosed properties that have been up for bids for a may have "hidden problems." Think of it this way: why have so many other potential buyers passed on the chance to buy the house? By far, the most common reason is the condition and the potential cost to repair it.
The Big Picture
The key point to keep in mind is that buying a foreclosed property can be either a very good or very bad financial move. You have to perform your own due diligence and find out what the pros and cons of a specific property are. Are extensive repairs needed? Do you have the funds to bring the house up to a high standard of quality and sell it for a profit, or live in it comfortably? Will your lender approve your application to purchase a foreclosed property? Are you ready to have the home inspected and take care of the necessary repairs? Are there unknown facts about why the property has been on the market, with no buyers, for x number of days?
Be sure to do a thorough analysis and try to get answers to all your questions. One thing that can be of great help is working with a Realtor who specializes in foreclosures. That way, you'll have the added advantage of expert advice every step of the way. What's the bottom line on buying foreclosures? If you take your time, work with a professional and do plenty of research, it's possible to find good deals. But never approach the process if you're in a rush, know nothing about the real estate market or are expecting to guarantee yourself a quick profit.
If you are interested in learning more about the real estate market or becoming a real estate agent so you can invest on your own, call us at 888-768-5285.
Love,
Kartik
|
Referrals are perhaps the most powerful tool you have for building your real estate career. While you can market heavily online and locally, there is nothing more powerful and meaningful than having an
Referrals are perhaps the most powerful tool you have for building your real estate career. While you can market heavily online and locally, there is nothing more powerful and meaningful than having an existing client recommend you to their friends and family. Consumers trust other consumers in every business. The question is, how do you encourage your clients, then, to recommend your services to others?
Be the Type of Person People Will Want to Recommend
The first step in getting referrals is the most challenging. You have to go above and beyond, exceed expectations, and deliver more than what the client expects. That’s a lot to ask for, of course, but it is what helps people to remember you and want to tell the world about you and what you did for them.
At the very heart of this, you should provide excellent service to your clients:
⦁ Respond to them as soon as possible.
⦁ Find solutions to their concerns.
⦁ Work outside of the normal business hours if they need you to.
⦁ If they are worried about the cost of a repair on a home, set up a quote for them.
⦁ Provide recommendations for service providers they may need within their budget.
There are many simple things you can do to address the needs of your client. Most importantly, listen to them. See what their goals or concerns are and provide solutions.
Ask for the Recommendation
When a transaction is successful, it is always important for you to thank your customers. Yet, that is not enough. Take a few minutes and talk about how important they are to you. Ask that if they have friends or family planning to buy or sell that they take the time to recommend you.
You can also ask for your satisfied clients to also share a review of your services online. While real estate agents may find this to be a bit awkward, most consumers are more than willing to do so when they are happy with the service they received. Send them an email with a link to streamline it. Don’t be shy :) - Link them to your Yelp or other review pages.
Build Relationships in the Community
Whether through the local Chamber of Commerce, city council, religious organizations, or professional associations, the more connections you make, the more opportunities you create for referrals. The key is to get to know people who work or live within your ideal area.
When you got your real estate license, you knew the value of developing networks – it is a key component of learning to market your services. Now, work to build those relationships on an ongoing basis. You don’t necessarily have to donate money to create these opportunities or spend a lot of money on the process. Instead, focus on just getting to know people. Give people the opportunity to say to their friends, “I know a really good Realtor…”
Provide Follow-Up Service
When the home sells or the buyer moves into their home, your job is not done yet. While officially it may be, this is the perfect time to follow-up with the buyer or seller to get more insight and clarity. Perhaps a month later, send them a note. Provide a card with a few recommendations of local restaurants. You can even reach out to those restaurants and small businesses to request a coupon you can offer. You can also just send a bouquet of flowers.
If you want to create more of a personal relationship, connect with your clients with a formal email or even a lunch appointment. Ask them what they thought of the process. What could you have done better? Learn more about what their expectations and needs are going forward. Provide a few business cards, so they can recommend you to their friends.
Keep in Contact with Leads – Even Those That Don’t Buy
Some of the best referrals come months – even a year – after a client has approached you about the prospect of buying or selling a home. This is a big decision for most people. As a result, they need to be able to think about and work out the details of the transaction before they commit to the process.
Be sure to have your new inquiries provide an email so you can send them information about current market conditions, new opportunities that come up, or other services and offers that may help. Emails sent consistently and over a period of time, allow you to remain fresh in the minds of your would-be clients. When it is time for them to do their deal they are more likely to call you.
Give People Something to Remember You By
Another fantastic way to keep your image and name in front of people is by giving branded material away. Whether it is a water bottle they can use for years with your logo on it or a t-shirt, the goal is to keep your brand in front of them long term.
Imagine the client that buys a home from you having a branded hoodie from you – perhaps you gave it to them as a thank you gift. They wear it often. They receive questions about it and can tell their friends and family all about your business as a result. This is a fantastic way to get your clients to keep talking about you long after they purchase a home.
Ready to Get Started?
When you become a Realtor, value every relationship you create. Whether it is in meeting friends of friends or connecting with clients that call your office, you need to build a connection. When you really do connect with these leads, you create long-lasting opportunities for them to remember you and the services you offer. People love to share good things about those they know. You want to be one of the people they talk about in a positive manner.
If you are interested in learning more about a career in real estate and how to get a real estate license, call us at 888 768 5285.
Love,
Kartik
|
The truth is that becoming a real estate agent is a lot easier than becoming a successful one. Taking real estate classes online and passing the real estate exam is the easy part. After you get your
The truth is that becoming a real estate agent is a lot easier than becoming a successful one. Taking real estate classes online and passing the real estate exam is the easy part. After you get your real estate license, the next step is to get connected with a brokerage and jump into production as quickly as you can.
One way that newer Realtors accelerate their chances of making it in the business is by getting paired up with a mentor. There are many reasons why mentors work and can bend the learning curve for a newer agent. I wanted to share a few of these so you know that you aren’t going to be thrown to the wolves in most real estate offices. You’ll have help in the form of a mentor.
Mentors Increase Your Chances of Actually Staying in the Business
Ask any big broker and they will tell you that the biggest burden they face in their business isn’t actually getting sued by an angry client. It’s actually recruitment and retention. The burnout rate for newer agents is so high that most companies have a stated goal of hiring 5-10 new agents per month because so many new agents don’t end up making it. This in turn means that the broker has to put resources into recruitment leaving them less time to train their newer sales staff. It’s a vicious cycle.
A great mentor can give 1:1 advice to a mentee and help them work through concerns which helps retain great salespeople.
By keeping agent turnover low, the broker can build a strong network of experienced and qualified agents rather than dealing with the constant task of recruiting newer agents to replace the ones that leave.
Time Savings for The Broker
Imagine large real estate brokerages. I define a “large” real estate company as one with at least 100 agents. There is really no effective way that one man or woman can be there to answer questions, coach and train a staff that large and do it consistently.
For this reason, a well thought out mentorship program is an easy way to save the broker time and hassle. By leveraging mentors, newer agents with questions can look to their mentor for help as opposed to hunting down an already stretched-too-thin broker/owner. This frees the broker up to only answer those high-level questions that stump even the best of mentors.
Additionally, mentors also play a vital role in reducing the “on-the-job” training necessary for newer agents working on their first escrow. In effect, the mentor can act as a ‘project-based’ sounding board for help on a deal-by-deal basis. This will allow the broker to invest more time working on higher level training rather than putting out deal specific fires.
Mentors Offer Encouragement and Act as a Cheerleader
Great mentors should help us see those things that we would not otherwise recognize. For newer agents this means that their mentor is able to realize what you are capable of achieving and will put you on the track to realize your potential.
This is especially true in the real estate business where there are several ups and downs in the course of a day and that every deal is on life support at some point in the escrow process.
Helping a newer agent manage their emotions and keep their eye on the finish line is a critical aspect of the business.
A great mentor can give a boost to the confidence that a newer agent needs.
Mentors Have Experience That They Can Pass On
Every veteran real estate agent has had a buyer buy from someone else or a seller who didn’t give them the listing. Understanding how to navigate these emotional ups and downs is critical.
A mentor who is transparent about their experience has likely been where you are, and has made the same mistakes you might have made or are about to make.
A good mentor will share their own mistakes, so they aren’t repeated by a newer agent.
Before you get a real estate mentor, I’m guessing that you need to sign up for online real estate classes. Please call me at 888 768 5285 and I would be happy to discuss your career and help you get started in our great business of listing and selling real estate.
Love,
Kartik
|
Whether you are a brand-new real estate agent trying to launch a career or are a seasoned agent looking to increase production I wanted to write a quick article for you. The below is a list of some of
Whether you are a brand-new real estate agent trying to launch a career or are a seasoned agent looking to increase production I wanted to write a quick article for you. The below is a list of some of the common traits I have observed in successful real estate agents.
Whether you are considering enrolling in a real estate class or are about to take a crash course to prepare for the real estate license exam the below list should prove useful
1. Manage Your Energy Level
Being able to run at a high level for a sustained period is critical to your success as a Realtor. It isn’t enough to just say “Work smarter and not harder.” You have to do both. Managing your energy level throughout the day is critical so you can work as hard as possible and continue to push.
The reason that this is so important is because many real estate agents and other outside salespeople tend to eat poorly, work long hours and lack consistent exercise.
The highest producing real estate people consciously try and escape this trap. How do they do this?
A consistent eating schedule of things that (for the most part) fuel their energy long-term - meaning plenty of vegetables, fruit and water. This also means a consistent program of vigorous exercise for at least 30 minutes a day on a ritualistic basis.
2. Focus on Improving One Area at A Time
There is a famous proverb that says “If you chase two rabbits, you will catch neither.”
The best businesspeople attack and focus on one target at a time, reach it and move to the next goal.
The secret is to cut up each goal into bite sized pieces that you can accomplish in short bursts so that you can rapidly move on to reaching the next one.
For example, if your goal is to have a better listing presentation, you might cut the entire presentation into 1/3 pieces.
The first third might be the verbal presentation itself.
The second third might be the physical presentation and other collateral material.
The final step might be objection handling practice.
The best agents don’t move on to tweaking their physical presentation until their verbal presentation is right.
Breaking the broad goal of “I want to have a better listing presentation” into pieces like this will result in the broader goal being achieved but in a shorter period of time.
3. Start with Baby Steps, Then Accelerate
It’s an interesting thing when I talk to newer real estate agents about their goals. I will often ask students why they want to get into real estate and what they plan on getting out of the course and their new career. Often they will say things like “I want to be rich!” Or “I want to make $250,000 my first year!”
I never want to crush someone’s dream or tell them that the thing they seem to want so badly isn’t possible. I think back to when I was a young 20 year old starting out in the business and if someone told me that my goals were unrealistic I would have dismissed them as being too negative and pessimistic.
With that being said, setting goals just for the sake of sounding overly ambitious can be dangerous and not useful.
The best businesspeople set rational and attainable goals with specific deadlines.
In the context of real estate sales this process might involve initially calculating how much you need to live on a monthly basis. Next, determine your average sales price in your area and the average commission per deal. Finally, ask yourself how many deals you need to do to achieve that income amount.
Example:
Average sales price = $600,000
Average commission = 2.5%
Average commission= $15,000
My expenses = $7,000 per month
Needed income = $84,000 per year
I need to sell 6 homes per year to survive.
My goal = 6 homes per year
Once you have proven that doing 6 deals a year is possible, you can then set loftier goals.
Remember that being great doesn’t happen by accident and a process must be followed. I would encourage you at this early stage of your real estate career to adopt habits and set goals that give you the greatest chance of success in a highly competitive industry.
Love,
Kartik
|
First time homebuyers are a fulfilling market for the real estate agent. You're helping people move from spending money on rent that they'll never recoup to investing that same money into a property they
First time homebuyers are a fulfilling market for the real estate agent. You're helping people move from spending money on rent that they'll never recoup to investing that same money into a property they actually own. This is a huge leap for most people and, as their agent, you get to help them find a starter home, or even their dream house.
All of this is empowering and inspirational. The problem is that many agents find it difficult to convert renters into buyers. People often rent because they don't feel financially stable enough to own a home. There may be a plethora of obstacles in their way, from salary to down payment to a lifestyle that means more mobility.
The reality is that many people can afford to buy and most would agree that buying would be beneficial for them financially. As their real estate agent, your goal is to educate potential buyers - But first you have to find them.
What Demographics Are Included in the First Time Home Buying Market?
There are different segments of first-time home buyers. Often real estate agents zone in on the ones who have already expressed interested in buying a home. This is an easier demographic to market to because they're already looking for your services. You don't need to educate them on why buying could be beneficial for them because they've already come to that conclusion.
The second hidden demographic are renters who haven't considered buying yet. Renters are often thought of as folks who haven't yet saved enough money to buy. That's not the whole of this demographic, though. There are those who aren’t in a position to buy right away, for certain. But every demographic is accounted for here for various reasons. Some prefer the mobility that renting allows as they are able to move more frequently with less hassle. Some simply prefer the location and amenities available in rental space in their locations.
First time home buyers may not be what you would think without researching, as well. For instance, single women make up a surprisingly high percentage of new homeowners.
When you're considering how to reach first time homeowners, there are a number of channels you can use to capture them. You'll also find that your geographic location will give you more information to help you target your market.
For many homebuyers in California rents have been rising so quickly and consistently that home ownership becomes more and more appealing with every rental increase notice. Remember that your buyers don’t necessarily need 20 percent down like in the olden days. There are many programs that offer down payment options of 0-5% making homeownership possible for more people.
How to Market to Renters to Help Convert Them to Home Buyers
For the renters who have already decided that they want to purchase a home, the marketing campaigns should be tailored more for sales than education, though value based content can still be used here. These future buyers can be considered warm leads because they already have an interest in purchasing.
To reach renters who have not already committed to buying a property, real estate agents sometimes need to use more creative solutions in order to educate and convince this market. The good news is that many renters would prefer to be homeowners. They often believe they can't afford it but in many cases they simply need more education about the buying process.
Educate Prospective Buyers on the Affordability of Buying
There are a number of ways to do this but the reality is that many would be buyers don't even research the idea of buying property because they mistakenly believe they can't afford it. Many of them can and should consider buying rather than renting. They also often believe that their monthly mortgage payment would be higher than their current rent, but that's often not the case, either.
Here are some ways you can reach these renters with more information that can help them to see buying as a good alternative for them:
Online Campaigns. You can use your social media channels and newsletters to help educate renters on the financial realities of buying. This can include statistics and personal stories showcasing the benefits to owning a home over renting.
Value Packed Blog and YouTube Posts. Use your website blog to host informative pieces that can be helpful for renters looking to buy. This can include tips on saving for the down payment for a home and information on finding the right property to fit your budget and lifestyle.
Articles in Local Publications. If renters aren't currently looking to buy a property, they may never visit your blog or pay attention to any of your campaigns. But articles in local publications have a broader reach. This might include town newsletters, local papers, and magazines.
Personal Outreach. Hosting webinars and classes about home buying can be a great way to educate first time buyers.
You'll find that many would be buyers are simply misinformed about the process. Helping to educate them on the benefits of home ownership can be an excellent way to reach this fantastic market
I wanted to write a blog about this because many of our real estate school students start out working with buyers and many of these are first time homebuyers. Having a solid plan of action to target and convert this market segment can prove profitable to the newer real estate agent.
If you are interested in taking real estate classes call us at 888 768 5285 or visit us at www.adhischools.com
Love,
Kartik
|
While historic homes don’t make up the bulk of sales for most Realtors, there are some agents who specialize in historic home sales. Still, this doesn't mean that you shouldn't venture into this great
While historic homes don’t make up the bulk of sales for most Realtors, there are some agents who specialize in historic home sales. Still, this doesn't mean that you shouldn't venture into this great market, or that you should defer to a local agent that has more experience with historic properties.
Historic homes can be an amazing acquisition for the right buyer. But there are some things specific to these types of properties that you should be aware of in order to best serve your clients.
Why Historic Homes Can Be an Amazing Purchase
Historic homes and properties within historic districts have amazing features that many buyers prize. For the home buyer who loves classic architecture or enjoys the history behind their residence, no new construction could ever compare. You may have a client who just falls in love with a historic property or you may have a client who is specifically looking for something with historic significance.
Each geographic location has their own historical homes that bring some flavor of past residents to life. The amazing thing with many historic homes is that they've gone through numerous generations and the history of each family is often present in the home itself. You can see this through additions made to the original architecture and a layering of the original design with more modern elements added over time.
The architectural and historic appeal is often the biggest benefit that your clients might be looking at in making their decision. But there are some other benefits that might be available that you should research and point out when applicable.
6 Things to Keep in Mind When Buying Historic Property
While many home buyers fall in love with the romance and history of historic properties, there are some things to consider which are unique to these types of property. Unlike new construction or homes built in recent years, historic homes have some quirks that can at times be costly to maintain. They've weathered many seasons and, depending on the local weather and type of construction, they may be in need of some extra TLC in regular maintenance.
Here are some things to make sure that your clients are aware of when purchasing a historic home:
1. Does the Property Include Elements Besides the Home?
Some historic properties are larger than a typical home lot and may include other structures which may also be historical in nature. They also often include great gems in landscaping, such as very large, beautiful trees, carefully planned gardens and hedges, greenhouses, gazebos, and even ponds.
2. Is There A Mass Appeal to this Home's History?
In cases where the property of someone with great local or national significance or where the architect was someone of note, the home might be used for touring or parts of the property might be useful to rent for events. If you're not interested in opening up your private residence in this manner, you might still find this a major perk just to own a home of this value and showcase it for your own purposes.
3. Possible Tax Incentives and Funding
In many areas, there are available funds and lower interest loans available for people who buy historical homes and wish to renovate them. These loans do come with some strings attached. The renovations often need to be done to certain specifications in order to maintain the home's integrity as a historic place.
4. Higher Than Average Renovation Costs
Each property is different. If your client is looking at a historic home that has already been completely renovated, they may not need to worry over renovation costs. However, in a case where there is major renovation work, it can often be more costly than renovating a newer home. This is because you'll often need to replace pieces that are no longer made or commonly used in newer construction. To maintain the historic significance, you may need to hire specialty contractors or preservationists to work on the home, which can be way higher in cost than a do it yourself project.
5. There May Be Restrictions
In many places, there are restrictions on the types of changes you can make to a historic property. This might include rigid restrictions on the outside aesthetic, such as paint color schemes and landscaping. It also might mean that you're prohibited from enhancing the property with new additions. It's important that buyers know these parameters in advance because they may need to live in a home where the architecture and design is less convenient for today's lifestyle than it was for the generation who built it. In most cases, those historic differences will add to the charm of the place.
6. More Likely to Have Hazards Than Newer Properties
Older properties were often built with materials that are no longer in use because they were found to be hazardous, such as asbestos. They also may be more prone to issues like mold because of the age of the home itself. It's important to have the home thoroughly inspected by a professional before purchasing. They can tell you if there are any issues in advance.
Historic homes provide a wonderful glimpse into past generations and can often be a dream residence for the right buyer. If you want more information about the historic properties in your area, contact the National Register of Historic Places.
As always, the first place to start your real estate journey is with a great online real estate course like ours. Call us today at 888 768 5285 if we can be of service.
Love,
Kartik
|
When you're in sales, the first impression can be the gateway to success. For real estate agents, it's the first step down a long and potentially lucrative path. The good news is that working on your first
When you're in sales, the first impression can be the gateway to success. For real estate agents, it's the first step down a long and potentially lucrative path. The good news is that working on your first impression will serve not just your career, but every other relationship you have in life. I wanted to write a blog post to take you through what a solid first impression looks like, how it helps you better relate to your clients, and what their takeaway will mean for your bottom line.
How to Create a Great First Impression
1. The Basics
Most of making a good first impression is common sense. However, just because it's easy to understand, doesn't mean it's easy to do. Even natural extroverts have to continually practice their manners and mannerisms before they get it right.
Smile: Nearly half of all Americans say that the smile is the most memorable feature after meeting someone new. A fresh-faced smile sends a signal to people that you're happy to work with them and you're ready to get the work done.
Focus: When it comes to meeting new clients, the nervousness of making a good first impression can be enough to force your head down. Eye contact is both polite and helps forge an instant connection with clients.
Listen: Anyone who's ever dealt with a salesperson knows how frustrating it can be to feel as though your words are going straight into the wind. Active listening means paying attention, asking questions, and responding to the clients' real concerns.
2. Dig a Little Deeper
A first impression is more than just following the basics. Picture the guy with the comically huge grin plastered on his face, the woman with off putting eye contact, or the agent who effusively responds to every statement as if it's the most fascinating thing they've ever heard. In the strictest sense of the word, they're smiling, listening, and focusing, but they still aren't leaving the right impression.
To really master the directions, you need to practice sincerity with each step. Express genuine emotion when appropriate, but remember that subtlety can also go a long way. Give a small grin when meeting people and save the teeth for the last minute. Follow-up on client statements that are vague or need further information. Blink normally when making eye contact and don't be afraid of looking down for a second if the conversation is getting too intense.
3. Practice Makes Perfect
Practicing your first impression doesn't necessarily mean going to your local bar and talking to endless strangers. It can be as simple as setting up role-playing with people you already know and trust. Have them provide honest feedback and constructive criticism about the sincerity of your smile, the volume of your voice, and the firmness of your handshake. These comments can go a long way if you're trying to understand how other people see you during their first interaction.
When you're shaking someone's hand, look into their eyes and strike a balance between death grip and limp. Use the first name as quickly as possible during the conversation so you're less likely to forget their names halfway through. Make sure that you’re annunciating your words and the volume of your voice is appropriate for the context of the environment.
4. Do Your Prep Work
Once you've taken care of some of the more subjective aspects of the first impression, you should have a much easier time addressing the more practical work of meeting someone. Being prepared can be as simple as getting to a meeting early or donning a sports coat or blazer to make your outfit just a touch more professional.
Before you meet with clients, it helps to know as much as possible about what they're looking for. Even if it's as simple as knowing they want a duplex rather than a single-family. The art of sales can get complicated, so it helps to hit the ground running.
5. Express Yourself
As tempting as it can be to remain neutral during your meeting, blandness will ultimately not help you be memorable. The truth is that even the most successful real estate agent may turn off a client or two with their personality, but it's ultimately better than being seen as forgettable. You can still be polite and respectful while expressing your personal opinions.
To stay on topic and to maximize the first few seconds with a client, some agents may give a short elevator speech where they emphasize their particular brand. So whether you're a bulldog in negotiations or the master of the short escrow, letting clients know upfront can be a good way to stand out.
Unlike most traditional sales, successfully navigating a property sale can take months or longer. If you hope to maintain your reputation and relationship with your clients for that long, you need to get off on the right foot. Use these tips to stand out from the crowd, so you're the one who ends up growing customer base.
This may be a slightly different blog post than I normally write, but so many of our real estate school students express their nervousness in meeting clients early in their careers. Hope this helps.
If you are interested in taking online real estate courses please visit our website or call us at 888 768 5285.
Love,
Kartik
|
Changing careers and becoming a Realtor is a major step in anyone's life. As such, a real estate agent has to budget for pre- and post-licensing expenses as accurately as possible. But it isn’t only
Changing careers and becoming a Realtor is a major step in anyone's life. As such, a real estate agent has to budget for pre- and post-licensing expenses as accurately as possible. But it isn’t only real estate agents who have to account for these sorts of expenses. Most professional service providers like accountants and attorneys are just a few of the similar models that budding real estate agents can look at as a model.
.h2head{text-transform:none;color:grey;font-weight:500;margin-top:40px;}
.bull1{margin-left:50px;}
.bull2{margin-left:50px;}
.bull3{padding-right:20px; padding-left:20px;}
.bull4{padding-right:15px;padding-left:20px;}
.bull5{padding-right:15px; padding-left:20px;}
.bull6{padding-right:20px; padding-left:20px;}
@media(max-width:800px){
.bull1{margin:auto 0;}
.bull2{margin:auto 0;}
.bull3{padding-left:-0px;}
.bull4{padding-left:-0px;}
.bull5{padding-left:-0px;}
.bull6{padding-left:-0px;}
}
Real Estate School Cost
Before becoming a Realtor, prospective agents have to pay for real estate license classes in order to sit for the state examination. Real estate courses aren't free and as such you should budget the cost of real estate school into your plans.
ADHI Schools’ real estate license courses: $150-$499
Real Estate Exam Fees
In addition to the cost of the licensing courses at a state approved real estate school, there are exam and license fees to consider as well. Also, remember that this article is written and published in March of 2020. These fees can change over time. You are encouraged to check our website or call us at 888 768 5285 to ensure that you are looking at the most recent set of fees.
State examination: $60
4 year real estate license: $245
Criminal background/Livescan fee: $80
Real Estate Broker Fees
Once you complete all these pre-license costs, the broker you decide to associate with will determine the next set of costs. When shopping for a place to hang your hat in the early days of your real estate career, be sure to find out about:
⦁Desk fees, if any, that you will have to remit to the broker. These are fees that the broker charges whether or not you actually sell anything.
⦁ The commission split you have to pay to the broker. Most brokers will take some portion of the commission you pay to them from every transaction that you close.
⦁ What day-to-day expenses, if any, the brokerage will cover.
⦁How and if the brokerage will help you get leads.
Ongoing Costs: Marketing Expenses, Continuing Education, Travel
All the factors listed above should play a part in your decision about which broker to choose after you get your real estate license. Remember, there's much more to your upfront expenses than real estate courses and tuition for real estate license school. Note that, like most other business professionals and entrepreneurs, you will have some expenses even before getting a license. After that, there will be other costs, only some of which should be considered "upfront" in nature. A few, like ongoing marketing expenses, continuing education costs and travel expenses should be put into the "ongoing" category since they need not be paid before you earn your first commissions.
Realtor Membership Dues
Don’t forget that to join professional associations like the National and California Association of Realtors will also set you back over $1,000 annually in California. This will cover your access to the Multiple Listing Service, the contract generation software and an eKey that will allow you to open homes with lockboxes.
Marketing Fees
As an active real estate agent, you will also likely have ongoing marketing fees of at least $1,000 or more per year: This category includes necessary items for getting your name out there, like business cards, flyers, advertising, signs, websites and similar items.
Keep in mind that your broker might cover some of the above expenses for you. That's why it is essential that you discuss all the details of expense coverage, desk fees and commission splits with your prospective broker. Those factors will have a profound effect on what comes out of your pocket as opposed to what someone else will pay once you decide to become a Realtor.
Now That You Know the Cost, It’s Time to Start Your Career
Starting your new real estate career with eyes wide open is helpful. I wanted to write a blog post specifically about this as I know that the newer real estate licensee will likely have many of these questions.
If you haven’t taken the first step to become a real estate agent, enroll in our real estate license courses today! Check out our real estate success stories for inspiration! Call me at 888 768 5285 if we can be helpful.
Love,
Kartik
|
Welcome to the world of people. Some clients you have are going to be just terrific. Others can make you regret getting into the real estate business altogether. Most are probably going to be somewhere
Welcome to the world of people. Some clients you have are going to be just terrific. Others can make you regret getting into the real estate business altogether. Most are probably going to be somewhere in between.
With that said, one of the benefits of working in our real estate business is the ability to work one-on-one with people. Not only are you helping to fill their needs, but also create positive, long-lasting relationships in many cases. Remember that after you finish real estate school with us and get out into the real world you’re going to find that not all people are as easy to deal with as you might like. Sometimes, you’re going to have a client that is.. well.. let’s just call them challenging.
Whether you are a seasoned real estate agent or a new Realtor who just passed the real estate license exam, there are a few simple things you can do to make these difficult relationships easier to manage.
#1: Keep Your Calm
No matter how awful the things are that the client may be saying, it’s essential to remain professional. If you have to rant and get some of your frustrations off your chest do so in private (not with agents or other clients). It is always important to keep the focus on the transaction. Remember, you do not have to work with them again.
Consider this. When a client is difficult, you may feel as though they are not worth your time or energy. Keep in mind that some difficult clients may be self-aware enough to recognize this about themselves. If you stick with them long term, they are more likely to continue the process and transact. They may even surprise you and refer you other business. It’s not always going to be easy, but it can be necessary to stick it out and maintain your composure and professionalism.
#2: Listen to Their Underlying Concerns
What happens if you encounter is a client that’s seemingly always unhappy? They complain about every property even though they’ve just asked to see it. They may say that the price is too high and the neighborhood isn’t good enough.
A true leader can recognize that constant negative behavior like this may point to a larger, underlying problem. Sit down with your client and talk about what you’ve looked at and the concerns you have had thus far. Then, ask them what they really want. Try to uncover their concerns. Are they truly ready to buy? Perhaps they are not sure if they have their finances teed up. In other cases, they may be be a fear of completing the purchase and make this type of commitment. Their complaints are just symptomatic of another issue.
Bear in mind that there are situations where their concerns will be valid. Perhaps they don’t feel you’re putting enough time into them or that you aren’t giving them what they need. It’s important to get them to clarify the root of the problem so that you can address it and move on.
#3: Respond to Them Sooner
Let’s say a client contacts you at 9 pm. What he or she said is irritating to you. You want to clarify the situation, but it’s already so late. Are you going to spend the night tossing and turning as a result of this situation? If so, it’s better to respond now and get it over with, so you can sleep.
The key here is when a client raises a concern about any factor, make it a priority to get it figured out as soon as you can. This helps to validate the client’s concerns. That doesn’t mean you are agreeing with them or even accepting any type of blame. Rather, you are simply moving things forward to the next step in the process.
Be sure to restate their claim or concern. For example, you might say, “Thank you for your email. I understand you are concerned with the timing of this sale….” You do not have to provide a solution right away, but you can tell the client you’re working on it or set up a time to talk about it.
#4: Let Go of Fear
Let’s say there is a client that just downright doesn’t understand the rules of the game. The buyer may want to underbid every property you show them. What about a seller who is adamant about overpricing the home? Worse yet, what about a seller who is refusing to make proper disclosures to a buyer? In these situations, you may be afraid to lose the client, but you have to step outside of that fear.
Be frank and honest with your clients all of the time. Tell them what is going to happen in any given situation. “If we underbid this by that much, we’re going to lose it to a competitor’s bid. Here’s what I think we should do.” Or, state, “It’s legally required to communicate this information. If you are not willing to do that, I need to step away from this relationship to protect my real estate license.”
Sometimes, you have to say what they need to hear frankly. Taking charge like this doesn’t mean being aggressive, but it means reminding them, in a positive way, that you know what you are doing.
#5: Find a Solution as a Priority
When clients are difficult, there is generally a reason for this. Your goal is not to ignore that concern. Rather, it is to find a compromise or solution that works for them.
We are in the business of helping people, and that often means figuring out what they want and need without them clarifying this. There will be times when you will miss the mark or make a mistake. The great real estate agent will admit those mistakes and find a solution to recover the client. How can you improve this situation if you were wrong?
On the other hand, if the client is wrong, you may want to throw your hands up and walk away. Before you do that, explain what’s happening. Then, offer more than one solution. By giving your client an option, you put the ball in their court. They now remain in charge of the outcome.
Difficult clients happen in every business. As you work to build your real estate career, you will find that there are 10 good clients for every bad one. Those are good odds, and it can mean that that one individual is pushing you to become a better agent, one that has to step outside of their comfort zone to support their client and your real estate sales business.
I’m always looking to bring our readers value. If I can be of service, please let me know. Feel free to reach out on Instagram or by phone at 888 768 5285.
Side note - If you read this and aren’t scared away at the prospect of real estate sales and want to enroll in our real estate school, feel free to do so here. We would love to have you as our newest student!
Love,
Kartik
|
Making the decision to invest your time in real estate school is a big one. After all, starting a new career does take work in order to be successful. The process starts with getting the right education
Making the decision to invest your time in real estate school is a big one. After all, starting a new career does take work in order to be successful. The process starts with getting the right education to prepare you with the tools and resources to thrive in our great real estate business.
The question many people ask when starting their journey is whether or not real estate school is “hard”?
It’s Not Hard – It’s New
Real estate school itself isn’t difficult. However, a new skill set can take time and a little effort to develop. Think about all the things you’re good at now that took a little getting used to. For example, you didn’t learn to drive in just one day. You probably didn’t learn your favorite hobby instantly, either. The fact that skills take a little time to nurture have more to do with the rules of nature, not real estate classes.
To be clear, there is plenty to learn. To prepare for the real estate exam you’ll have to understand property taxation, landlord:tenant rules and basic real property ownership laws. Some topics can be a bit complex but with the right real estate school the process can go a little smoother.
You Have Varied Learning Options
Everyone learns at a different rate and with an individualized learning style. What’s great about our real estate school is that our students can choose the learning method that works best for them.
Some students do best in a classroom with a teacher lecturing them. Perhaps that’s the way you’ve always learned new things. You may like having a dedicated space to go to at a set time to learn. We offer over 20 classroom locations with expert instructors ready and able to answer your questions. We also offer over 500 YouTube videos on various real estate related topics. Finally, each one of our students gets college-level textbooks filled with real estate goodness to help you get started and more importantly finish up and get your real estate license.
So whether you like the classroom, the online world or physical textbooks we have you covered from all angles.
ADHI Schools Offers the Solutions Right for You
Here’s the really good news. At ADHI, you can learn any way that works for you. We offer both online and optional in-person educational programs. They are structured to give you the best opportunity to explore the material in a manner that fits your goals.
How Long Do I Have to Finish?
With ADHI Schools, your enrollment in the real estate program lasts a full year. That is more than enough time to learn the material and to do so at a pace that’s right for you. Perhaps you’re still working another career, or you are balancing personal life responsibilities. With this program, you don’t ever have to feel rushed.
Most of our students finish the program a lot quicker than this
but this type of flexibility gives you the ability to be in control. If you find some of the subject matter difficult, you can use the resources provided to dive deeper into that area than others that you find easier to take in.
The net-net bottom line is that real estate education isn’t too hard, but it is a new skill you need to learn, and that means it takes some commitment on your part. Even if you have no real background in real estate prior to this, it isn’t insurmountable. You may even enjoy all that you are learning. =)
With the right school (like ADHI Schools), and the best support team, (like our staff), you’ll get through every course and topic with ease, walking away with the confidence in what you’ve achieved.
Want to talk? Call me at 888-768-5285.
Love,
Kartik
|
Happy holidays! Did you finish your real estate license courses as yet? Have you prepared for the real estate exam?
In a way, I almost feel bad for our real estate school students who get their real
Happy holidays! Did you finish your real estate license courses as yet? Have you prepared for the real estate exam?
In a way, I almost feel bad for our real estate school students who get their real estate licenses during the holidays. Becoming a Realtor in December can be a tough thing. A common objection that real estate agents get around this time of year is that sellers and buyers say they want to “wait until after the 1st”. While potential clients are waiting you aren’t earning.
I wanted to write an article to answer the question of “Is selling your home during the holidays, a good idea?”
Traditionally, home selling during November and December can be a bit slower depending on your market. People often put it off until the New Year for no real reason other than the perception might be that the first quarter of the next year is better than the fourth quarter of the prior one.
It’s important to recognize that there is no “best time” to sell a property - the best time is when your client is ready to move. There are a few key reasons why selling during the holidays could be the ideal choice. If you have clients that are on the fence about moving now, communicate the following as to why this could be the perfect time to list.
There Are Far Fewer Homes on the Market
Perhaps the most compelling reason to list during the holidays is that there tends to be less competition. Depending on where you live, inventory can be a concern. People are buying homes throughout the year – including the final quarter. At the same time, fewer sellers list at this time, creating more opportunities for your listing to sell faster and for more money.
Compare this to the spring and early summer when there are more listings that tend to hit the market. This increase in supply can contribute to more of a buyer’s market as supply increases which can drive marketing times up and prices to soften. When your home hits the market during the holidays and it fits a buyer’s needs, and it’s the only one that does, buyer don’t have that luxury of tire-kicking. This can work in your favor as a seller every time.
You Might Sell Faster, Too
Along with that increased demand for your property is the likelihood that your home will sell faster. Redfin did a study back in 2013 that found homes listed during the fall and winter months sold 65 percent of the time – which is more than any other time of the year. They also found that homes that sold between December 21st through March 21st sold closest to their listing price.
For sellers, this means a sale more likely closer to list price.
Holidays Buyers Are More Committed
When selling a home during the spring and summer months, you’ll find that many of the showings rarely write offers. While that may be for many reasons, one key fact is that many people looking at homes during summer might not be ready to buy. They are browsing or window shopping during the summer. The weather is nicer and open houses can be a “thing to do” on a lazy Sunday afternoon.
However, buyers looking for a home during the winter months are likely to be far more serious. They are ready and tend to be qualified buyers, too. Consider why this may be. A person buying a home in December probably does not want to spend all of their extra time going from home to home – there’s much more to do. Family might be in town during the holiday season, the kids may be off of school - personal time is at a premium this time of yet. Net-net wintertime buyers are often serious buyers and ready to go.
You Can Create Some Holiday Magic to Show Off Your Home
Though you shouldn’t overdo it, adding a bit of holiday magic to your listing can be an excellent way to move buyers into action. For example, if you live in an area where people routinely decorate for the season, adding a few holiday decorations and creating a formal, but elegant display can help people see themselves in that home next year, doing the same. In other words, the holidays can work for you here.
As a real estate agent, the holidays present an opportunity to light up the fireplace and to bake some cookies, too. Why go to this trouble? You’re setting the stage and creating an opportunity for the potential buyers looking at your listing to see what life could be like if they buy from you. What other time of the year is your home as inviting? The holidays can be magical.
People Moving for Jobs Need Homes Before January
Many people switch positions and relocate around the beginning of the year meaning they might be forced or at least incentivized into buying a home in December. You may find that this creates an influx of buyers for you in the last few weeks of the year. If you live in an area where job growth is plentiful and high-paying positions are common, this is a key reason to take listings now rather than wait until the New Year.
When Is The Best Time To List A Home for Sale?
There’s no right answer to this question. We should be ready to help our clients whenever they need it and do what’s in their best interest. The perceived benefit of waiting until the spring months to list might not be real. Remember that the spring and summer periods are when sellers may have increased competition to sell.
If you are considering enrolling in our real estate license school, please feel free to reach out on Instagram or call the office at 888 768 5285.
We are always happy to help! Just like selling a home, starting real estate school to get your real estate license doesn’t have a “best time”. The best time is when you are ready. There’s no time like the present!
I'm looking forward to having you as our newest student!
Love,
Kartik
|
I don’t think that anyone can deny that nearly every business should have a website of some sort. To the extent you can, it’s far better to control your own digital footprint rather than have the
I don’t think that anyone can deny that nearly every business should have a website of some sort. To the extent you can, it’s far better to control your own digital footprint rather than have the world do it for you.
According to one recent study, an incredible 93% of all interactions between a business and its customers begin in the exact same way: with a search engine like Google. For that reason alone, the quality and execution of your real estate website is of paramount importance - especially in those fragile early days of your career.
OK so you finished real estate school and have passed the real estate license exam and obtained your real estate license. Your career can begin in earnest. But without the right, thoughtfully designed website to make your presence known, you're not going to get as far as quickly.
Thankfully, designing the perfect real estate website - one that is compelling, that properly speaks to what you do and your value proposition - isn't necessarily as difficult as you might think. All it requires is the right approach, and for you to keep a few core things in mind.
Understand Your Goals
Before you think about the actual design of your website, you need to come to terms with exactly what that design needs to do. Yes, there's a certain element of marketing at play here in that your website is supposed to be selling something. Only instead of pitching your products and services, in our real estate business you're really selling the most valuable asset of all: yourself.
But even more than that, you need to understand that your website is more than just an advertisement. It's a way to make people aware of your unique perspective on the real estate industry, it's an opportunity to establish yourself as an authority in your market and it's a way to begin building trust - essentially all at the same time.
If your site comes off as little more than an expanded advertisement that someone might see when searching through Google, you're not going to be able to do any of those things. Therefore, your real estate website needs to be genuine, honest, informative and legitimately helpful - all in equal measure. These four qualities need to inform every decision you make moving forward, from design all the way down to the type of content you create and share.
Get Specific With It
There's a common misconception out there that the right real estate website needs to appeal to the largest audience that it can. But the truth is that your visitors will rarely come to your site looking for a home across an entire state, or even in a larger city. They're going to be looking for information on current listings in specific neighborhoods, and you need to be able to capitalize on that.
All of this is to say that you shouldn't build your site in a way that claims you're an authority on "real estate in California" or even "real estate in San Diego, California." Hone in on specific neighborhoods and communities that you have the most experience with. Integrate Multiple Listing Service (MLS) and Internet Data Exchange (IDX) search capabilities into your site in a way that allows people to focus their efforts on those places they really want to live in. Establish yourself as an authority at first in a few specifically targeted areas and work on building your reputation - and your client list - over time.
You can always expand your focus later as your business does the same, but in those early days don't be afraid to get as granular as you possibly can.
It's Also About Supplementary Features
Remember that the goal of your real estate website shouldn't JUST be to offer listings for homes in those areas, though. Listing sites are a dime a dozen - the chances are high that people will have seen information about a lot of those current homes in other areas before they ever stumble across your domain.
Instead, you need to go above and beyond that idea - turn your site into a true informational and educational resource in every sense of those words. You should absolutely be writing blog posts that give insight on current trends in the industry. Poke around my blog. I’ve been in our business for almost 20 years and I have written over 200 articles and recorded over 1,400 videos on real estate topics. This helps to establish me as an industry expert. Remember, however, that I started out just like you - 0 followers and 0 content. It takes time and consistency to make it work. The sheer volume of content being produced every second is making it harder and harder to get noticed. This underscores the fact that you have to pump out as much high quality content as possible to get known.
So what to do? As a new agent take the time to write a few hundred words that take an important real estate topic and break it down in a way that is easy for anyone to understand. Write about what people should look for in a first home and what they shouldn't be focusing so much of their attention on, for example. Try and integrate videos, a comment section, mortgage calculators and other things that will make the house hunt as easy as possible.
Don't forget that you're not just trying to get someone to buy or sell a home. You're trying to convince them to buy or sell a home with YOU. To get to that point, people need to see you as an authority - articles and videos go a long way towards establishing precisely that.
Reviews, and Lots of Them
Last but not least we arrive at the concept of reviews - something that is particularly important in terms of your long-term success in real estate.
People aren't just going to take your word for it that you know what you're talking about. Real estate has always been built on relationships - someone wants to buy a new home and they immediately turn to their friends and say "hey, do you know anybody I can call for help?"
The Internet operates in exactly the same way, to the point where a massive 90% of people who responded to a survey who read online reviews claimed that those positive reviews absolutely influenced their eventual buying decision.
When you close on a deal with a client, ask them to write you a review. Then, get that review up on your website as soon as you can. Then, share those reviews on social media sites like Facebook and Twitter - which should also be integrated into your site. Do this as often as you possibly can.
This will help you establish social proof, which truly is the currency of the modern era. The more someone sees that others value what you do, the sooner they'll start to value it, too. At that point, you'll have a steady stream of hot new leads headed straight to your door.
At the end of the day don’t be afraid to shine and show off a little. If you can add value somewhere by earning a 5 star review or writing a blog or recording a video do it! Don’t be afraid to show the world that you are a real estate expert and you know what you’re doing.
If I can be of service, please let me know. You can connect on Instagram here or reach out by phone at 888 768 5285.
Love,
Kartik
|
It’s Saturday and I’m at a local coffee shop banging away on the keyboard. I like working on stuff like this on Saturday and Sundays. It’s quiet.
Yes i have a few people in the office today,
It’s Saturday and I’m at a local coffee shop banging away on the keyboard. I like working on stuff like this on Saturday and Sundays. It’s quiet.
Yes i have a few people in the office today, but it’s nothing like the sometimes pandemonium associated with a weekday.
I wanted to write a quick article about why weekends matter to the entrepreneur because it’s not hard to argue that there’s never been a better time to start your own business. Between the ability to reach a large audience and access to technology, individual people with great ideas and a solid work ethic have a better chance to succeed in today's market. However, that does not make success an easy thing to achieve.
Statistics indicate that around 62% of adults think that becoming an entrepreneur can be an excellent career. When you break down those numbers, though, you'll find that nearly 50% think they themselves are equipped to become an entrepreneur and 40% believe it's easy. Let's just cut to the chase — the people who think it's easy are mistaken. Ask any entrepreneur who has even a modicum of success and they have likely taken ridiculous risks and worked very hard to make their baby fly.
Notwithstanding those “entrepreneurs” who have “Phds”. If you're wondering, a PhD means “Papa Has Dough”. For the most part, I’m not talking about those who had a family member give them money to “start their own thing”. I’m talking about the real entrepreneurs who started from nothing and actually built something great.
Entrepreneurship sounds like a great business because Instagram and other social media outlets inundate us with information about the benefits of being self-employed. Some of this propaganda includes an excitement about the work you're doing, the ability to make a living doing the things you love and being your own boss. What you might not be aware of is that small business owners often work longer much longer hours than their employees. At least they do if they're building a successful business.
I'm not totally complaining about the glamour that the Internet has put on the business of real estate. It's helped push lots of people to enroll in our real estate license school and pass the real estate exam.
Still, it's important to remember that there is only so much time in a day and time is your most valuable commodity. This is why many entrepreneurs work every day and set their schedules so that they can optimize the time when they're working. If you have a great idea and are launching your business, here are some reasons you should consider working weekends.
Why Entrepreneurs Don't Follow the Typical Weekend Schedules
For a typical employee, there are set number of days where work is required and specified days off. The most common model by far is Monday through Friday, 9-5. This may vary but, for the most part, Saturday and Sunday are days off to catch up on personal errands or spend time with family and friends. These are the reset days for the typical working world.
For an entrepreneur, taking these days off completely may not be possible if they want their business to thrive. Because the rest of the businesses they deal with are likely closed on one or both of those days, the weekend becomes a fantastic time for entrepreneurs to catch up, refocus, and innovate.
This doesn't mean that you have to work around the clock to run a successful business. In fact, doing that can easily lead to burnout. A work/life balance is important for healthy relationships outside of your career. But most entrepreneurs do find ways to use their hours creatively to improve their productivity. This might mean taking downtime on a weekday so that you can work through the weekend. It might also mean working part of the day on a weekend so that you can participate in social events around your work schedule.
Benefits to Using Weekends for Work Time
There are a few reasons that entrepreneurs work through many of their weekends. Here are a few benefits to working through other peoples' downtime:
• Fewer Distractions. Working on a weekend allows you more time to focus uninterrupted. This is true whether you're a business owner or work on a team. Because your clients and other professionals usually don't work on Saturday or Sunday, you won't have to spend time fielding calls from clients, attending conference calls, or attending to different things that might pop up during a regular business day. This gives you the uninterrupted time you need to focus on a single task.
• Time to Plan. Weekdays tend to fly by with many demands and few chances to catch up. This is especially true for small business owners who often take charge of multiple aspects of their company. With the rest of the world off the clock, the weekend gives you time to assess your previous week. You can check to make sure you've stayed on schedule with assigned tasks (and catch up on tasks you didn't get to). This time is also a great way to plan ahead for the following week. If you choose a day over the weekend to plan and assess your progress every week, you'll be more likely to keep your benchmarks in mind and achieve short term and long term goals.
• Less Rigid Schedule. Working on weekends doesn't have to feel like you never get a day off. You don't necessarily have to work from the office and you can even plan your hours to suit your mood. I’m sitting in a coffee shop right now with my laptop and a latte. It feels little less like work when I’m in a pair of Jordan’s and jeans as opposed to a suit and tie.
There Are Down Sides, Too
Successful entrepreneurs build their businesses to a large degree because they've put in the work and effort. That does come with sacrifices. While it's true that many small business owners use weekend hours to help them get ahead, that doesn't mean it's always easy.
For lots of us including myself the work is something we love and are excited about. We often enjoy putting in long hours and have a sense of pride and purpose in what we are doing. However, that doesn't mean it's always easy to spend your Saturdays and Sundays working when the rest of the world is getting that time to take care of their personal needs.
Here are a few negative points to working weekends that you should be prepared to navigate:
• Loved Ones May Not Understand. If your significant other is on the “regular” world schedule, they may not understand the long hours you put in at your company and it can lead to arguments.
• Most Personal/Social Obligations Are On Weekends. This is especially true if you have children but even single people will find their social calendar is mostly full of events on weekends.
• You Miss Out On Some Great Events. It's not all about obligations. Working those hours also means you'll miss out on fun events that you'd enjoy attending. A football game in the middle of a Sunday might be something that is playing on the TV or online in the background as opposed to you being able to physically attend the game.
Building a thriving business means working longer hours than you would as an employee. That's simply a truth. Weekends offer you hours to catch up and get ahead of your competition.
I’m always looking to bring you value. If there is anything I can do to help, please reach out on Instagram or call the office at 888 768 5285.
If you are interested in becoming a real estate agent, please call me or my team. We are happy to be of service.
Love,
Kartik
|
A little different type of blog from me this time. I wanted to write something for those that have already finished our real estate license courses and are working in the field.
I was browsing some
A little different type of blog from me this time. I wanted to write something for those that have already finished our real estate license courses and are working in the field.
I was browsing some listings on the MLS recently and was horrified at some of the pictures agents were uploading but even worse was of the copy used to describe the listings. Problems with syntax, punctuation and tense were not uncommon.
If you have a listing now or are going to take one soon, I would recommend making sure your ad copy is extra tight. Remember that besides pictures, the ad copy is the most important part of your listing marketing material.
There are really no hard and fast rules for writing real estate ad copy, but guidelines exist to help you capture reader attention and generate responses. The goal is to highlight enough desirable features to prompt an online visitor to click through to the full listing, or to prompt a reader to call for additional information.
The prime directive is to avoid the temptation to "oversell." Use superlatives in moderation and be sparing when including value judgments in your descriptions. Remember that only one home can be the "best value" in a neighborhood, and even that is subjective to the point that it has little meaning to a prospective buyer.
Readers tend to gloss over phrases like value-priced, priced to sell and won't last long. Common terms like amenity-filled, chef's kitchen, memorable views, and stunning architecture are overused and ineffective. The goal is to be descriptive in a manner that is meaningful, while still leaving something to the imagination so that the reader wants to know more.
Writing Real Estate Copy 101
Writing ad copy that gets results isn't difficult, but it can require thought. Here are specific elements you can employ to make your efforts more effective.
First, define your target audience: Online property descriptions will have a different focus, and a different tone, than a printed brochure or an open house handout. But all copy should include, at minimum, a headline or title. It might be as simple as the property address; however, if you can use a catchy descriptive phrase, do so. Something like "Come Home to a View of the Ninth Hole" would appeal to someone looking for golf course property.
Then, add gas to the fire of imagination: Place yourself in the potential buyer's shoes and provide a "hook" that makes them want to continue reading. Focus on the lifestyle that can be theirs if they move into the home. "Enjoy a refreshing cool drink on your expansive poolside patio as you look forward to your next tee time at the award-winning course adjacent to your property." A brief description of the overall appeal of the community and the home's general description can be included here.
It can be as brief as you wish, or it might run to several paragraphs, depending on actual space and your purpose. Say something like: "This 3-bedroom, 4-bath, 3-car garage contemporary offers everything necessary for living the good life -- privacy, convenience to schools, shopping and entertainment, an easy commute to the business center, and abundant leisure time enjoyment options with neighbors and friends."
Finally, highlight the most important home features: This is where you should strive to paint meaningful word pictures. Be descriptive, but not overly detailed. Leave some specifics out. You might say something like "Old-world craftsmanship is evident in the finishes used throughout the home's 4,200 square feet, especially in the fine wood paneling and bookshelves of the home's private office."
Or, you can point to the evidence of upscale options and trendy finishes that "include an eco-friendly, sustainable choice of recycled glass countertops in the kitchen, low-VOC paint throughout, and main-level flooring crafted from reclaimed timbers."
Whatever you write in words is always better when accompanied by professional photographs that graphically illustrate the same features. It's not necessary to include a book's worth of photos, but words and pictures are better when they go hand in hand. There is little more disheartening for a prospective buyer than to read a glowing description of a home spa retreat only to find that there is no photograph of the space included with the listing or in the brochure. Coordinate your efforts with your photographer and your marketing team.
Keywords and Buzzwords
Define your potential market. Imagine what prospective buyers would type in to an online property search: Don't simply toss around phrases like "high-end finishes, family-friendly neighborhood, or spectacular views." Instead, utilize popular keywords to generate interest, adding filters and qualifiers as needed, such as the city or subdivision. Examples include:
• Beachside Cottage
• Ski Retreat
• Urban Condo
• City Lights
• Mountain Views
• Polished Wood Flooring
• Gated Community
Know Your Market
The copy you write about a high-end home will naturally be different from the copy that describes a mid-price starter home, but the same principles apply. However, don't make the mistake -- in either case -- of believing that buyers on one end of the price spectrum are any less concerned about quality and value, energy savings and sustainability, style and safety, or built-in features and community amenities.
Make every effort to describe a lifestyle rather than listing specific features. Weave specifics into general descriptions of rooms and spaces. While studies have confirmed that online readers appreciate skimmable copy and bullet points, lists can be overused. Typically, 8 to 10 bullet points are sufficient. Always stop short of making your property description simply a "laundry list" of features.
To write meaningful copy, acknowledge that there are some home features that should be specifically mentioned:
• A backyard pool, because it can be either a selling point or a deal killer, depending on the buyer;
• An eat-in kitchen;
• Ensuite baths for each bedroom;
• A detached garage, casita or other type of auxiliary building;
• Specialty spaces, including an exercise room, home theater or media room, finished attic, in-law or au pair quarters; and oversize lots or adjacent acreage or public land.
• Solar panels, or alternative energy provisions, including 240V electric car charging stations.
Use your in-depth knowledge of the local market to determine what other features deserve mention, knowing that your decision might vary substantially from one neighborhood to the next, and even from one season to another.
Monitor reactions and responses you receive, and adjust the way you write your next property description based on the feedback offered by clients.
Finally, never forget to include your contact and broker information (along with Department of Real Estate license number) and a call to action. You never know who will become your next client, or when and how they will appear. Ensure that you can be reached by anyone in need of your services!
Of course if there’s anything I can do for you, including helping you get started in our real estate license courses, please let me know or call 888 768 5285.
Love,
Kartik
|
For those starting in our great real estate business it’s natural to ponder the best way to go about becoming successful. A well-known shortcut between starting a new career and achieving success is
For those starting in our great real estate business it’s natural to ponder the best way to go about becoming successful. A well-known shortcut between starting a new career and achieving success is to model what others before you have done.
Observing the most successful people and implementing the best of their strategies is going to ensure your success more quickly than trying to reinvent the wheel altogether. This is especially true in a simple business like real estate sales. It’s important to recognize that I said “simple” not “easy”. Our real estate sales business is a simple one as long as you do the things daily that are required to succeed. Again, this is a simple process but one that is not always easy.
I wrote down a few characteristics of the most successful real estate agents. As you embark on the journey of obtaining your real estate license I would encourage you to be cognizant of how you are implementing the following:
THE BEST AGENTS UNDERSTAND THEIR LOCAL MARKET
There is an old saying in real estate that “All real estate is local”. To the newer agent this might not make sense but let me explain. Essentially this means that the real estate salesperson that has the most intimate market knowledge and is most deeply connected to the neighborhoods they serve will generally win.
Great real estate salespeople tend to be known in the community. They may sponsor the local little league, help out with local garage sales or door knock frequently. They send direct mail postcards every month or post frequently in local Facebook groups or on nextdoor.com. Whether this connection is established through physical marketing or digital makes little difference.
Net-net: The best real estate agents are known in their local marketplace.
THEY UNDERSTAND THEIR CLIENTS' NEEDS
This one might sound a little too broad to be helpful. You might read the above sentence of “understanding your clients’ needs” and think - “Great but what does this actually mean?”
When representing a buyer, for example the best agents have their client requirements nailed down. If the client requests a property with a bedroom and full bathroom downstairs, don’t bother to show them homes that do not. If they are deeply against having a pool, make sure you check this on the MLS and verify with the listing agent before emailing it to them.
Getting to know your client and being able to anticipate their needs will go a long way to helping you become a successful real estate agent.
THEY HAVE A SYSTEM PERFECTED
Do you have a particular time of the day when you're checking emails? Spending time with clients? Marketing your business? Having a schedule for your routine and daily activities will help keep you organized and be sure that nothing falls through the cracks.
THEY KEEP THEIR SALES PIPELINE FULL
It's one of the things you hear with any real estate sales business. Always be selling. If marketing and prospecting for new clients is a part of your every day routine, you'll never have to worry about a seasonal slow down or slump, because you know that the marketing system you have in place will have the next client through the door soon.
Also, if your Facebook ads aren’t doing as well as they normally do A/B test the ads to ensure that you are staying on top of social media trends.
Don’t ignore door knocking and telephone prospecting either. These activities might not be the most relished by the real estate professional but they are sure to give you more control over your pipeline. Hit a slump? Talk to more people.
DEVELOP RELATIONSHIPS AND MAKE CONNECTIONS WITHIN THE LOCAL COMMUNITY
Successful real estate agents take the time to build a large network of people in the market that they serve. They don’t limit themselves to creating a database of only past, current, and potential clients. Great real estate agents should also make contacts with other experts within their industry, including appraisers and mortgage loan originators. You’ll have a ready list of vendors to refer your clients to and potentially be on the receiving end of referrals when the time comes.
You should also consider building a network of other brokers and agents in outside areas. Remember, it is customary for one broker to pay another broker a referral fee for a client upon closing. (Not among service providers though, that would be. RESPA violation)
THEY USE SOCIAL MEDIA PLATFORMS AND THE INTERNET TO THEIR ADVANTAGE
The impact that social media platforms like Facebook, Twitter, Instagram, and YouTube have on business are undeniable. Formerly, these platforms were looked at as only a way to connect with friends and family or share photos but they have made their way into the fabric of our society.
According to Statista, 91% of U.S. businesses will use social media for marketing purposes. Some of the largest companies in the world are using social media as a way to connect with their customers and potential customers. Why would the individual real estate agent be any different?
As a real estate agent, if you aren't using social media, you are missing out on a huge opportunity.
At a minimum, each agent should have a Facebook page to reach their potential audience. If you have the budget, a highly-targeted Facebook ad can provide additional reach to new potential clients you may not be able to find through your more traditional marketing mechanisms.
THEY ARE PARTICULAR ABOUT THE DETAILS
When it comes to selling real estate, the smallest details can make the biggest difference. Things like staging a home or how to position a property in certain markets can be the difference between a good and a great real estate agent.
Also the intricate details of the purchase contract or the listing agreement are critical to ensure that your client’s interests are protected.
THEY ARE AWARE OF SPEED TO LEAD
A saying that I live by in business is that “Time kills all deals”. The best agents know that the sooner they can get back to a lead the more likely they are to convert that lead to a contract.
This is especially true regarding Internet leads. Whether you are selling residential or commercial real estate, the best agents know that the sooner they respond to an inquiry the more likely deals are to close. I can’t emphasize this enough - in this day and age speed is probably the most important aspect of sales. The faster you move the more likely you are to win.
I’m always looking to bring you value. If I can be of service to you please let me know on Instagram or Facebook. Of course if you are looking to get enrolled in real estate license school, reach out here.
Feel free to also call the office at 888 768 5285.
Many of our students have gone on to be very successful real estate agents! Click on the link to read success stories from past ADHI School Students!
Love,
Kartik
|
Most people think that in order to become a great Realtor we need to be good at showing and selling property," we tell ourselves. "What more is there?”
In reality, it turns out there's quite a bit
Most people think that in order to become a great Realtor we need to be good at showing and selling property," we tell ourselves. "What more is there?”
In reality, it turns out there's quite a bit beyond that.
If you’re interested in obtaining your real estate license and become a full-fledged Realtor, it’s probably useful to learn a little bit more about what someone in that role actually does daily.
Once you finish our real estate license school and head out into the real world, you'll find that the daily responsibilities of a real estate agent are actually a lot more involved than you might think. Not in a bad way — but in a way that you should be familiar with before you begin those early days of your career.
The Life of a Real Estate Agent: Breaking Things Down
One of the most important daily responsibilities of any real estate agent actually has little to do with "selling houses" at all. Broadly, you need to be excellent at providing customer service to a wide range of people in a myriad of different situations.
Be The Calm in the Storm
Think about it like this: Buying a home is one of the most important moments in a person's life, particularly if it's the first time they're doing it. So it's an inherently stressful experience and one where people will be looking for an expert to guide them. The best real estate agents understand that they are the calming force in any transaction. You need to be able to provide people with the information they need to make the best decisions possible and you need to do so in a way that simultaneously instills confidence.
It's a lesson you'll begin to learn in our real estate license school but that you'll have to perfect over time on the job.
Understanding Contracts and Paperwork
Another major daily activity of a busy Realtor involves drafting and preparing things like offers and other types of paperwork. This requires a deep understanding of not only the laws and regulations in your particular market, but also the needs and requirements of the people you're actually working with. Remember that as an agent, you are someone else's advocate — they're trusting you to bring a level of experience to the deal that they themselves do not possess. To get to that point, you need to not only be aware of HOW to handle the paperwork that comes with buying and selling real estate, but organized enough to do so in the right way.
That customer service element also intersects with the marketing side of the business — only instead of selling a property, you're really selling your most valuable asset of all: yourself and your abilities.
Similarly, the busy real estate agents spend a majority of their day getting, obtaining and servicing listings in their marketplace. Most of the time, this is done by pouring over the Multiple Listing Service database, otherwise known as the MLS. Most MLS databases are logical but sometimes they are not so intuitive. Only through practice running a variety of different searches can proficiency be obtained.
For example, how do you search for a single-story home, with a spa but no pool in a specific school district below $750 per square foot? This search will take the expert Realtor 1-2 minutes, whereas for a rookie this same search might take 10-15 minutes. Like most things - practice makes perfect.
If someone says to you, "I like this house we're looking at, but it would be better if it had X, Y and Z qualities," you should immediately be thinking of other properties you can show them. You can't do that without putting in the time to research what those listings actually are. Working with the MLS is a crucial part of the daily life of a real estate agent.
Don’t forget to prospect
Most importantly, a real estate agent spends an incredible amount of time collecting leads from other sources, too — either via word of mouth from past satisfied customers or from referrals in the industry. Hitting the phones or door knocking can also be a great way to get a hot tip on a property before it actually gets on the market- especially if it's one that you know would be perfect for one particular client.
That aspect alone can quickly become an omnipresent part of the job — something that you should have at the very least in the back of your mind all day, every day. It's part and parcel for what a real estate agent actually does and, in truth, that rush of getting the jump on your competitors is a large part of why people love the profession in the first place.
Get Comfortable Being Out and About
Of course, a lot of your days will also be spent showing properties which is the aspect of the job that anyone who has ever purchased a home is most familiar with. But again, it's just one small part of a much larger story. Getting your start in real estate comes with the understanding that it's more of a far-reaching profession than most expect.
The great real estate agent is part therapist, part negotiator and available to answer any questions that their clients may have.
Hoping this helps. I’m always looking to bring value to our readers. If I can help you, please reach out on Instagram @kartikspics or call the office at 888 768 5285.
Love,
Kartik
|
Frankly, Instagram has brought us a ton of new students. So many of our students enroll because they have seen social media posts from agents about how much money they make. Programs like Million Dollar
Frankly, Instagram has brought us a ton of new students. So many of our students enroll because they have seen social media posts from agents about how much money they make. Programs like Million Dollar Listing have contributed to this perception.
While some of these stories are true and many agents do make a lot of money in our business, I wanted to write a quick article about things you should know before starting a career in real estate. I wrote a few pieces of advice - I thought the title was catchy - before anyone takes the first step in entering our business.
You Are the Boss
It may seem obvious, but people who have spent the majority of their lives working for a manager or supervisor are often surprised by how much discretion they have over their daily schedule. There aren’t any wake up calls in our business. No one complains if you show up 5 minutes late - or don’t show up at all. Worse yet, if |