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 Read more...
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
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"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 Read more...
"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
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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 Read more...
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
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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 Read more...
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
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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 Read more...
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
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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 Read more...
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
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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, Read more...
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
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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 Read more...
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
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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. Read more...
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
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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. Read more...
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
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