Investing in real estate has some ups and downs over the course of history, but it never goes out in significance. This is because no matter what the economic situation is, people always need shelter to stay at.
The house is a basic commodity that people’s needs all their lives. Many investors are taking advantage of this fact to put their money on the table and expecting for profits. So, while some people are crying over the residential real estate market slump, you study how the situation can favor your interest in the long run.
If you are thinking about investing in real estates, take note that it can be both very profitable and very risky at the same time. When the real estate market is in a good condition, the ROI is quicker and can give 20% to 40% profit. However, the investment in real estates can be a get-rich-quick scheme. Sometimes, it is better to practice holding your property until the market bounces back and favors your interest in selling the property.
The first step in real estate investment is to know the fundamentals of the market.
A better strategy is to make sure you understand these terms in residential real estate investing:
Cash Flow – How much money does the residential income property bring every month, after expenses are paid? The amount of money left from the rental payment less the mortgage plus maintenance and operational expenses is called the cash flow. I like to use a factor of about 40% of the ROI to estimate my property expenses. I use 50% of the ROI as my ballpark goal for debt service. That leaves 10% of the ROI as profit to me. If this is not what I get, I become worried.
Appreciation – Historically, most properties tend to go up in value over time. However, as we’ve seen recently, real estate can also go DOWN in value, too. Leverage (your bank loan in this case) is a double-edged sword. It can increase your rate of return if you buy in the value of the property is appreciating in that area, but it can also increase the risk of losing when your property goes down in value. The most realistic, low-risk approach is to hold your property for at least 5 years.
Do you need to sell your home? A good realtor can make a big difference. Make sure you hire someone who is experienced, hardworking and professional. Here are 8 tips for finding a good realtor:
- Get referrals. Do you have friends who recently sold their homes? Ask them about their experience and if they would hire their realtor again. If yes, get that agent’s name and contact number. Ask your family and friends for referrals.
- Making an interview with at least 3-4 agents is your opportunity to know about the candidates. Make a list of important questions before you meet. Don’t choose a realtor who will instantly tell you what the price of your property is. The agent might be trying to ‘buy’ your interest. Remember, the market determines the value of your home which cannot be influenced by your agent in any way.
- Compare the candidates: Is the best-selling agent really the best? Just because Realtor 1 sells more than Realtor 2 means that the first agent will give you better service. Sometimes the sellers who closed more deals are not really providing good service. Check their resume and work history, not entirely on their sales record.
- Hire the right agent, not a cheap agent.
You might be thinking of the right ways to save from buying a house. When the agent tells you that he is willing to work for lesser sales commission, it might entice you to hire him. However, remember that you are dealing with an expensive investment and you want to get the most out of the sale. You want to be at the winning end and receive profit in the form of home equity. Your mindset should be toward getting the right agent, not an agent who will charge lesser than other realtors in the industry.
- Check real estate websites
Surf the internet and visit real estate websites. Most of these websites feature their superstar sales agent who specializes in other property that you are looking for. You might want to contact them to help you find your dream house.
A big decision like selling your home is not an easy task in today’s market. It is challenging and you need someone that is up to the task. Hire a full-time real estate professional with a proven track record. Think twice before using a family member or friend who has not sold a house since 2005. Buying a property is the largest investment of your life so make it a business decision. It is best to hire a good real estate agent who will represent your best interest from day one.
If you are a real estate agent, you need to befriend the social media as it can help you drive your marketing on top. Most home buyers use the internet to look for their dream house. If you will establish an online presence through the social media, many home-buyers will notice your listing which can convine them to ring your phone.
Facebook, Twitter and Pinterest are three of the top social media platforms that you can use to help your marketing campaign. Here are some ways to use each of them effectively:
Facebook is the king of all social media. There are millions of Facebook users around the world which means that it makes it easier for you to reach potential clients. It also makes communication easier and faster. Here are some ways to take advantage of this site:
1.Set up a business Facebook profile; don’t use your personal profile. You want people to know that you are a professional real estate agent and using your personal account will not do any justice to prove that.
2.Post about your area. Show pictures of the great neighborhood where your listings are located. Highlight the landmarks, amenities and other good things about the neighborhood which can attract buyers.
3.Upload quality photos of the properties. Buyers want to see first pictures of the property before they will call you and make an inquiry. Make sure that the American University Park luxury real estate looks amazing in the photo.
Celebrities use Twitter to connect to their fans, maybe you should use this too. Here are ways to arouse the buyer’s interest from your Tweets:
- Tweet about staging and moving in. Give suggestions how clients can make their homes more attractive. Suggest ways to make moving in less a hassle.
- Tweet local news. Keep your followers updated about what’s going on in your neighborhood. Inspiring stories of people living in your area make people get more emotionally connected to your tweets.
- Tweet questions: create an interaction with your followers by asking relevant questions. For example: What’s the best thing about Napa Valley? #moving #newhome # Napa
Pinterest will give you an amazing opportunity to show American University Park luxury real estate listing through visuals. This media website is dedicated to connecting through images. As a realtor, you need to feed your clients with visuals because these will convince them to see your properties personally.
In today’s market it is very important good realtor to represent you. In a marketplace overflowing with opportunity, tax benefits and variable values, proven experience, integrity, market awareness and outstanding communication skills are essential. No one can ignore qualities like that. Home purchases and sales are too important to place in the charge of inexperienced, unverified realtors. Whether dealing with a commercial or residential Real estate transaction, the client should verify that the realtor is a associate in good standing with the National Association of Realtors (NAR). This membership assures the client of the realtor’s responsibility to educational programs and compliance with principles of ethical conduct and cooperation. The National Association of Realtors has been instrumental in increasing and implementing important ethical principles of conduct throughout the industry.
In addition to enrollment with the NAR, the realtor that can best locate and list for sale either residential or commercial Real estate will be a An associate of a Multiple Listing Service (MLS). The MLS is a regional marketplace that is designed to assure clients of highest exposure to existing Real estate and the cooperation of many other real estate Agencies. Whether buying or selling, clients must persist that the realtor be a member of the Realtor board. It is essential to recognize that the term realtor refers to the agency itself. Realtors, or real estate brokers, keep agents that list, sell and lease real estate, on behalf of the realtor. However, the realtor is liable for the activity and conduct of its agents, the Firm’s marketing campaign and the interaction with other cooperating Firms. Selecting a proven and trustworthy realtor can maximize the sale of a property and assure the buyer of making an informed choice.
Real estate marketing has changed dramatically in the past few years. The industry has been impacted by the advent of enhanced MLS services that have made properties obtainable for review on the internet. A recent survey showed that almost 70% of residential Real estate investors began their search Online. In today’s Market, the greatest realtors have fine-tuned internet strategies, marketing plans and communication programs that keep their agents, their listings and their clients abreast of activity as it occurs. Programs such as virtual tours and digital photography can do much to enhance the visibility of listings and can be Changed with the availability of aerial photographs, tax documents and copies of deeds and disclosure statements. Good realtors are capitalizing on the public’s Needs for internet access by creating web logs for listings, agents and related projects.
As eminent as the internet is to overall real estate marketing, it is imperative to choose a realtor with outstanding communication capabilities. There is no reason for a realtor to ignore a call or be oblivious of market activity as it happens. The finest Real estate agents understand the importance of being on top of the market at all times and are always accessible to their Buyers and sellers. With the cellphones systems, Clients will benefit from a relationship with a Real estate agent who is always at the Prepered. Traditional real estate marketing activities, like signs, brochures, flyers, business cards and even Open Houses still have value in the marketplace. Skilled realtors incorporate these principles with Buidling websites and advertising online to increase exposure and facilitate the purchase and sale process.
In the field of real estate, many agents find themselves so busy showing properties that they are unable to devote attention to the small details of their businesses. While showing properties is the primary way of selling a property, all real estate agents know the need for high quality “behind the scenes” organization. Without this aspect of a real estate agent’s business, profits will not reach their full potential. With a virtual real estate assistant, many of these smaller items are taken care of with efficient precision. Real estate agents can relax knowing that their businesses are running smoothly while they are away from their desks showing property.
In fact, with the help of a virtual real estate assistant, real estate agents will be able to show even more properties and generate more income. A virtual real estate agent will promote one of the most important aspects of business: customer service. Many real estate agents intend to send thank you cards to customers, open house attendees, holiday cards and follow-up emails to potential clients. However, their busy schedules do not allow for such add-ons that make for a prosperous business. Other customer and employee service needs that can be handled by a virtual real estate assistant are purchasing and sending closing gifts, creating and mailing Just Listed and Just Sold postcards, creating CD tours for listings and planning events for an office or team yearly meeting.
Virtual real estate assistants can also help with the organizational side of the real estate business. There are many tasks such as scheduling appointments and showings, general bookkeeping, transaction coordinating and creating an automated feedback system for showing agents that are crucial to a real estate agent. More organizational tasks that can be handled by a virtual real estate agent are updating and making changes to web sites, creating monthly Market Absorption Reports for listing appointments and creating monthly CMAs on current listings. If someone such as a qualified virtual real estate assistant is on staff, the real estate agent is free to build his or her business in other ways. Also, many real estate agents are not comfortable with the organizational side of their businesses and feel more relaxed knowing these important tasks are being attended to.
All of the above-mentioned tasks are indeed crucial to the success of a real estate agent. Therefore, a real estate agent must know that his or her virtual real estate assistant is qualified to handle these important duties. When looking for a virtual real estate assistant, it is important to discover the number of years a potential assistant has worked for top producing real estate agents. Also, if a virtual real estate assistant is going to handle event planning, he or she needs to have expertise and experience in that area as well.
Virtual real estate assistants should also have multimedia experience and training, including a working knowledge of Microsoft Office software. Other computer skills should include Adobe Photo Shop, Paint Shop Pro and web site updating. Of course, checking references is imperative when hiring a virtual real estate assistant. Knowing a real estate agent that a potential assistant has served is always a bonus.