Let’s assume the day has arrived that you’d like to buy a house. Chances are you don’t have enough cash in the bank to pay for it in full. Instead, like a car, you would probably prefer to put a small amount down, and make monthly payments on the rest. This is the purpose of a mortgage loan.
A mortgage loan is procured by a buyer to pay off the seller of a piece of property in full. The buyer then owes the mortgage lender the total amount borrowed, plus interest and fees. As collateral or guarantee of payment, the lender of the mortgage holds the deed or ownership of said property, until the buyer pays the mortgage off. However, the buyer occupies the property as if it were already his or her own.
There are several types of mortgage loans available, and which is best for a particular buyer depends on his or her financial situation and long term plans. Some people plan to stay in a house for thirty years; others make short-term investments to move up the real-estate ladder. Matching the right client with the right mortgage loan requires time and energy on the part of buyer and lender both.
A few of the common terms associated with mortgage loans are closing fees, points, and the annual percentage rate (APR). These and many other fees can be negotiated. The best-looking mortgage advertisement isn’t always the cheapest due to possible hidden fees. Experts say comparing the APR of a mortgage loan can help the buyer determine which mortgage is less expensive, as law requires that all fees be included in this calculation. Often the APR of a mortgage is not advertised and the buyer must ask for this information.
If a buyer can put down 20% of the buying price in cash, mortgage interest rates will be lower and the buyer will not have to get Private Mortgage Insurance (PMI). PMI is required for buyers with little or no equity, as PMI will make mortgage payments in the event the buyer cannot. Lenders require PMI to protect their investment when a buyer puts less than 20% down, because the mortgage, with fees and interest, will initially be greater than the worth of the property. This changes when the loan has been paid down over a period of time, building up approximately 20% equity, at which point PMI (and its fees) terminates.
After PMI expires, if the holder of a mortgage misses payments, the lender can foreclose on the loan. This means the buyer has defaulted on his contract to pay the mortgage, and the lender can evict the buyer and sell the property to recoup losses. The buyer loses everything in this scenario. When this occurs, it usually happens early on. Once people build up equity in property they are more motivated to save the investment and have more options.
If a mortgage holder who has built up substantial equity is suddenly strapped for cash, he or she might consider refinancing. By refinancing the mortgage over a longer period of time, the monthly payment can decrease. Some people refinance to draw equity out of the home in the form of a cash payment, often used to make improvements on the home.
A general rule of thumb is that a mortgage payment should not exceed 28% of the total income of the qualifier(s). Qualifying for a mortgage will require an acceptable debt-to-income ratio. Credit cards, car loans and any other financial debts figure into this calculation. It is a good idea to see how much you qualify for before shopping for a home.
Mortgage loans can be fixed-rate or variable, short term or long term. The right mortgage loan will depend on many factors. Be sure to get professional advice, educate yourself thoroughly on your options, and shop around before deciding on the best mortgage plan and lender.
Tuesday, August 12, 2008
What Does a Real Estate Agent Do?
A real estate agent or realtor is a person licensed within a specific state to help people either sell their property, or to act on behalf of others to try to purchase property. The real estate agent is usually formally trained through taking real estate classes (though some have on the job training instead), and then must usually pass examinations that allow him or her to become licensed. Though you can buy property or sell your own property without an agent, there are so many laws that apply to this process, that many find employing a realtor is an easier process. Employing a real estate agent also means that your property, when you’re selling, will be listed and advertised by the company or agency for which the realtor works.
A real estate agent or realtor is a person licensed within a specific state to help people either sell their property, or to act on behalf of others to try to purchase property. The real estate agent is usually formally trained through taking real estate classes (though some have on the job training instead), and then must usually pass examinations that allow him or her to become licensed. Though you can buy property or sell your own property without an agent, there are so many laws that apply to this process, that many find employing a realtor is an easier process. Employing a real estate agent also means that your property, when you’re selling, will be listed and advertised by the company or agency for which the realtor works.
A real estate agent or realtor is a person licensed within a specific state to help people either sell their property, or to act on behalf of others to try to purchase property. The real estate agent is usually formally trained through taking real estate classes (though some have on the job training instead), and then must usually pass examinations that allow him or her to become licensed. Though you can buy property or sell your own property without an agent, there are so many laws that apply to this process, that many find employing a realtor is an easier process. Employing a real estate agent also means that your property, when you’re selling, will be listed and advertised by the company or agency for which the realtor works.
When you’re interested in buying property, you can choose to use one real estate agent or numerous ones. Generally people may use one realtor, who will not only look at the properties his or her agency currently is selling but will evaluate properties available through other agencies. If you find a property you like, the real estate agent helps you submit a price offer, and then continues to negotiate for a price if your initial offer is not accepted. The agent does have a vested interest in selling properties listed by his/her particular agency, since pay is often determined based on commission alone, a percentage of profits from the sale of listed properties.
If you are selling property, the real estate agent helps you determine the appropriate asking price given assessed value, and the current market. A realtor will also “show” your property, by running open houses or by bringing potential customers to look at your home. When others wish to buy your property, the realtor fields offers, conveying them to you, helps make counteroffers when prices are too low, and sets up the terms for accepting an offer. Many people both sell and buy at the same time, which means the agent is not only helping people sell their own home, but purchase a new home.
In addition to working to help customers buy and sell property, real estate agents may also manage property owned by clients or by their company. They may list properties for rent, collect rent, show available properties for rent, and oversee repairs on rented dwellings that require them. They’ll accept applications, submit applicant’s information for credit checks and help to determine the best and most reliable renter for a property. Though this technically falls under the category of property management, many realtors work in companies that not only help people buy and sell property, but also offer property management services.
Realtors often keep contacts with other professionals in the realty industry, like bank managers, home assessors, and mortgage brokers. Before you get to make an offer on a property, they may have you sit down with a broker or with a lender to determine the exact amount you’ll be able to afford to pay for a home, and what types of loans you can qualify for. This information is vital since it allows the real estate agent to look for things that are specifically in your price range, but meet the basic requirements you need, like a home having a certain number of bedrooms or being located in a specific school district.
Essentially then, as the name real estate agent implies, the agent acts on behalf of someone else, the client, in order to quickly buy or sell property of all types. Pay for this job is frequently through commission only on the sale of properties, though some trainees may receive pay while they train. Agents may work alone, for small companies, or for large ones, and they may specialize in listing certain types of property. For instance some people only sell or attempt to purchase homes for clients. Others may sell office buildings, property for development, industrial sites, or commercial buildings.
Essential steps every first-time buyer should know
If you think it's about time you bought a home instead of renting, a little homework before you start looking will increase your odds of finding the best buy for you. First, you must educate yourself about the home buying process. You can take a class or pick up books from your local library. Also be sure to read the real estate sections of your newspaper to familiarize yourself with properties and prices in your area. Consumer magazines that focus on the home can also be a good source of information.
Here are some things you will want to do:
· Separate needs from wants
What are your priorities for your next home? How important are public transportation, community facilities, on-street parking, lot size, privacy? How many bedrooms and baths will you need? Will you need a space for a home office? How important are quality neighborhood schools?
· Investigate neighborhood prices
What neighborhoods feature homes in your price range? Are there areas you may have overlooked? With the help of a trusted real estate agent, you may discover neighborhoods and home types you may not have considered. We’ll introduce you to a wide range of possibilities and help you find the home that best suits your needs.
· Determine how much house you can afford It's tough to home shop if you don't know what you can afford.
Together with a reputable lender, we can help you determine how much home you can afford and which loan program will maximize your buying power. Also, by getting pre-approved for a loan before you start looking for your first home, you'll be a better prospect in the seller's eyes.
· Shop for the best loan
Which type of loan is best for you? Will you be in the house several years and benefit most from a long-term fixed rate, or do you want a lower, short-term rate because you plan to move soon or expect your income to increase rapidly over the next few years? You may want to interview several lenders to learn about the many mortgages available.
· Check out interest rates
What are current local mortgage interest rates for 15-year and 30-year fixed rate mortgages, and for 1-, 3- and 5-year adjustable rate mortgages?
· Dig up your down payment
Know where your down payment cash will come from. If it's coming from stocks, go ahead and sell them. If Aunt Mabel is loaning you the money, get it in hand so you are ready to go.
· Relax and let an experienced real estate agent to help you through the process
Buying your first home can be an overwhelming experience, but, with the help of a professional real estate agent, you can easily manage the process and confidently close the deal.
Chances are you can answer a couple of these questions on your own, but you may need some assistance with others. If you do, please call or e-mail us. We can make sure you have the preliminary house-hunting information you need.
Here are some things you will want to do:
· Separate needs from wants
What are your priorities for your next home? How important are public transportation, community facilities, on-street parking, lot size, privacy? How many bedrooms and baths will you need? Will you need a space for a home office? How important are quality neighborhood schools?
· Investigate neighborhood prices
What neighborhoods feature homes in your price range? Are there areas you may have overlooked? With the help of a trusted real estate agent, you may discover neighborhoods and home types you may not have considered. We’ll introduce you to a wide range of possibilities and help you find the home that best suits your needs.
· Determine how much house you can afford It's tough to home shop if you don't know what you can afford.
Together with a reputable lender, we can help you determine how much home you can afford and which loan program will maximize your buying power. Also, by getting pre-approved for a loan before you start looking for your first home, you'll be a better prospect in the seller's eyes.
· Shop for the best loan
Which type of loan is best for you? Will you be in the house several years and benefit most from a long-term fixed rate, or do you want a lower, short-term rate because you plan to move soon or expect your income to increase rapidly over the next few years? You may want to interview several lenders to learn about the many mortgages available.
· Check out interest rates
What are current local mortgage interest rates for 15-year and 30-year fixed rate mortgages, and for 1-, 3- and 5-year adjustable rate mortgages?
· Dig up your down payment
Know where your down payment cash will come from. If it's coming from stocks, go ahead and sell them. If Aunt Mabel is loaning you the money, get it in hand so you are ready to go.
· Relax and let an experienced real estate agent to help you through the process
Buying your first home can be an overwhelming experience, but, with the help of a professional real estate agent, you can easily manage the process and confidently close the deal.
Chances are you can answer a couple of these questions on your own, but you may need some assistance with others. If you do, please call or e-mail us. We can make sure you have the preliminary house-hunting information you need.
House hunting - Buying and Selling Houses
The single most important rule in looking for a home
While many important details must be considered in choosing your first home - style, size, price, location - one thing is certain: if you will be moving again in a few years, be sure you buy with selling in mind. Chances are, the items that make your new home a comfortable fit for you will also attract buyers later on.
Some special considerations for the first-time homeowner who has resale in mind:
§ Watch for growth potential
Look for an established neighborhood that will be enhanced by future growth but not inconvenienced by it.
§ Look out for resale value
Seek a prime neighborhood where homes sell well in any market.
§ Check out location
Consider availability of all aspects of transportation; even those you may not use.
§ Research Area Schools
Check for quality public schools, whether or not you have school-age children.
§ Go for the green
Look carefully at the lot for trees and greenery to buffer winter winds or summer heat.
§ Make room for visitors
See if ample guest parking is available for you and your neighbors.
§ Ponder privacy issues
Consider how much privacy the home and lot provide.
§ Drive the commute before you buy
Check morning and afternoon drive time to work, schools, shopping, churches.
The best first step in home buying
Before you start looking at homes for sale, be sure you do some "homework." Here are some of the questions for which you'll need answers:
· Check out interest rates What are current local mortgage interest rates for 15-year and 30-year fixed rate mortgages, and for 1-, 3- and 5-year adjustable rate mortgages?
· Shop for the best loan Which type of loan is best for you? Will you be in the house several years and benefit most from a long-term fixed rate, or do you want a lower, short-term rate because you plan to move soon or expect your income to increase rapidly over the next few years?
· Determine how much house you can afford How much of a mortgage can you qualify for? The loan amount plus your down payment tells you how much house you can afford.
· Investigate neighborhood prices What neighborhoods feature homes in your price range?
· Separate needs from wants What are your priorities for your next home? How important are public transportation, community facilities, on-street parking, lot size, privacy? How many bedrooms and baths will you need? Will you need a space for a home office? How important are quality neighborhood schools?
Chances are you can answer a couple of these questions on your own, but you may need some assistance with the others. If you do, please call or e-mail us. We can make sure you have the preliminary house-hunting information you need.
Step 2
Who represents whom in the home-buying process
Your purchase offer looks good to the sellers. They are ready to accept it, but you are using a buyer's agent (also called buyer's broker). You know that sellers pay their agent, but what about yours?
What is a buyers agent?
A buyer's agent is retained by a buyer to look out for the buyer's interests and to negotiate the best price from the buyer's point of view. Just as the agent who lists the seller's home owes the seller complete loyalty, the buyer's agent owes the buyer the same degree of loyalty.
Who pays the fee of the buyers agent?
Sellers generally indicate on the listing agreement whether the seller is willing to pay the buyer's agent. Most sellers choose to work with a broker who splits the commission with a buyer's agent even though that agent does not represent the seller's interests. This, of course, maximizes the number of potential buyers for the home. Because the listing broker is already prepared to share the commission with a seller's agent who produces a buyer, most sellers don't mind when their broker, instead, shares the commission with a buyer's agent.
What are some tips every home buyer should know to get started?
If you think it's about time you bought a home instead of renting, a little homework before you start looking will increase your odds of finding the best buy for you. Here's how:
Dig up your down payment
Know where your down payment cash will come from. If it's coming from stocks, go ahead and sell them. If Aunt Jessie is loaning the money, get it in hand so you are ready to go.
Nail down your financing
It's tough to home shop if you don't know what you can afford. Together with a reputable lender, we can help you determine how much home you can afford and which loan program will maximize your buying power. By getting pre-approved for a loan, you'll be a better prospect in the seller's eyes.
Take your time
Don't jump at the first home you see. Let us introduce you to different areas and home types to see what suits your needs the best.
Do your homework
Once you've found the home you want, ask us to run a competitive market analysis of other homes that have recently sold, so you'll be able to make a sensible offer to purchase.
Enjoy!
With expert assistance and a positive attitude, home shopping can be fun and rewarding.
While many important details must be considered in choosing your first home - style, size, price, location - one thing is certain: if you will be moving again in a few years, be sure you buy with selling in mind. Chances are, the items that make your new home a comfortable fit for you will also attract buyers later on.
Some special considerations for the first-time homeowner who has resale in mind:
§ Watch for growth potential
Look for an established neighborhood that will be enhanced by future growth but not inconvenienced by it.
§ Look out for resale value
Seek a prime neighborhood where homes sell well in any market.
§ Check out location
Consider availability of all aspects of transportation; even those you may not use.
§ Research Area Schools
Check for quality public schools, whether or not you have school-age children.
§ Go for the green
Look carefully at the lot for trees and greenery to buffer winter winds or summer heat.
§ Make room for visitors
See if ample guest parking is available for you and your neighbors.
§ Ponder privacy issues
Consider how much privacy the home and lot provide.
§ Drive the commute before you buy
Check morning and afternoon drive time to work, schools, shopping, churches.
The best first step in home buying
Before you start looking at homes for sale, be sure you do some "homework." Here are some of the questions for which you'll need answers:
· Check out interest rates What are current local mortgage interest rates for 15-year and 30-year fixed rate mortgages, and for 1-, 3- and 5-year adjustable rate mortgages?
· Shop for the best loan Which type of loan is best for you? Will you be in the house several years and benefit most from a long-term fixed rate, or do you want a lower, short-term rate because you plan to move soon or expect your income to increase rapidly over the next few years?
· Determine how much house you can afford How much of a mortgage can you qualify for? The loan amount plus your down payment tells you how much house you can afford.
· Investigate neighborhood prices What neighborhoods feature homes in your price range?
· Separate needs from wants What are your priorities for your next home? How important are public transportation, community facilities, on-street parking, lot size, privacy? How many bedrooms and baths will you need? Will you need a space for a home office? How important are quality neighborhood schools?
Chances are you can answer a couple of these questions on your own, but you may need some assistance with the others. If you do, please call or e-mail us. We can make sure you have the preliminary house-hunting information you need.
Step 2
Who represents whom in the home-buying process
Your purchase offer looks good to the sellers. They are ready to accept it, but you are using a buyer's agent (also called buyer's broker). You know that sellers pay their agent, but what about yours?
What is a buyers agent?
A buyer's agent is retained by a buyer to look out for the buyer's interests and to negotiate the best price from the buyer's point of view. Just as the agent who lists the seller's home owes the seller complete loyalty, the buyer's agent owes the buyer the same degree of loyalty.
Who pays the fee of the buyers agent?
Sellers generally indicate on the listing agreement whether the seller is willing to pay the buyer's agent. Most sellers choose to work with a broker who splits the commission with a buyer's agent even though that agent does not represent the seller's interests. This, of course, maximizes the number of potential buyers for the home. Because the listing broker is already prepared to share the commission with a seller's agent who produces a buyer, most sellers don't mind when their broker, instead, shares the commission with a buyer's agent.
What are some tips every home buyer should know to get started?
If you think it's about time you bought a home instead of renting, a little homework before you start looking will increase your odds of finding the best buy for you. Here's how:
Dig up your down payment
Know where your down payment cash will come from. If it's coming from stocks, go ahead and sell them. If Aunt Jessie is loaning the money, get it in hand so you are ready to go.
Nail down your financing
It's tough to home shop if you don't know what you can afford. Together with a reputable lender, we can help you determine how much home you can afford and which loan program will maximize your buying power. By getting pre-approved for a loan, you'll be a better prospect in the seller's eyes.
Take your time
Don't jump at the first home you see. Let us introduce you to different areas and home types to see what suits your needs the best.
Do your homework
Once you've found the home you want, ask us to run a competitive market analysis of other homes that have recently sold, so you'll be able to make a sensible offer to purchase.
Enjoy!
With expert assistance and a positive attitude, home shopping can be fun and rewarding.
Friday, August 8, 2008
How To Find A Reliable Real Estate Agency
Finding a reliable real estate agency could be quite stresful but it pays to have one handle yoour deal, not just any one. If you are interested in purchasing or selling some property or land, you would most probably have to go and visit a real estate agency. A real estate agency is a body comprised of real estate agents who act as legal middlemen to settle deals regarding realty or property. For most deals regarding property and realty, you would generally have to either consult a real estate agent to negotiate a deal for you with the plot owner.
What is an Agency?
An agency is an area of commercial law, which deals with contractual and quasi-contractual tripartite set of relationships when an Agent is authorized to act on behalf. The real estate agency therefore acts as a law abiding group of agents who act as mediators between people who want to buy realty and people who want to sell it. This branch of law partitions and standardizes the relationships between:
What is an Agency?
An agency is an area of commercial law, which deals with contractual and quasi-contractual tripartite set of relationships when an Agent is authorized to act on behalf. The real estate agency therefore acts as a law abiding group of agents who act as mediators between people who want to buy realty and people who want to sell it. This branch of law partitions and standardizes the relationships between:
Agents and Principals (i.e. the agent who is the person of the agency and the principals who are the people who authorize the agent to act on their behalf to create the relationship between them and the third party)
Agents and the third parties (i.e. the third parties are the group of people with whom the agents deal with on the Principal's behalf)Principals and Third Parties (this occurs when the agents purport to deal on their behalf)
Choice of Real Estate Agency
With the growing realty market, there are an increased number of real estate agencies to choose from. Most are good, but you should be on the outlook to find a great real estate agency. After all the good real estate agents might be able to get you a good deal, but the great ones could end up saving thousands of dollars of your expenses. You should look out for the following characteristics within a good real estate agency:
Trustworthiness:
The real estate agency must be trust worthy to begin with. Most great real estate agents have a large client base so that you can get testimonials and opinions from previous clients. Recommended real estate agencies from your friends could be a great way to start as well. After all, when considering property, trust is an essential need.
Professionalism:
You would want to look for a highly professional real estate agency and not some side business run by someone. Real estate agencies generally run with the help of real estate agents, and getting a good professional agent for your pursuance of property is necessary to get the best deal.
Experience:
In the field of realty, the more experienced the real estate agency is, the better deals it is going to be able to get you. Experience is therefore a must.
Choosing a good real estate agency could be vital in buying property. A real estate agency could save you a lot of money which you could then utilize to decorate or upgrade your property, or even just save the extra money for something else. A real estate agency will guide you and help you obtain the best price for the property for which it is valued.
How To Find A Reliable Real Estate Agency
If you are interested in purchasing or selling some property or land, you would most probably have to go and visit a real estate agency. A real estate agency is a body comprised of real estate agents who act as legal middlemen to settle deals regarding realty or property. For most deals regarding property and realty, you would generally have to either consult a real estate agent to negotiate a deal for you with the plot owner.
What is an Agency?
An agency is an area of commercial law, which deals with contractual and quasi-contractual tripartite set of relationships when an Agent is authorized to act on behalf. The real estate agency therefore acts as a law abiding group of agents who act as mediators between people who want to buy realty and people who want to sell it. This branch of law partitions and standardizes the relationships between:Agents and Principals (i.e. the agent who is the person of the agency and the principals who are the people who authorize the agent to act on their behalf to create the relationship between them and the third party)Agents and the third parties (i.e. the third parties are the group of people with whom the agents deal with on the Principal's behalf)Principals and Third Parties (this occurs when the agents purport to deal on their behalf)Choice of Real Estate AgencyWith the growing realty market, there are an increased number of real estate agencies to choose from. Most are good, but you should be on the outlook to find a great real estate agency. After all the good real estate agents might be able to get you a good deal, but the great ones could end up saving thousands of dollars of your expenses. You should look out for the following characteristics within a good real estate agency:Trustworthiness: The real estate agency must be trust worthy to begin with. Most great real estate agents have a large client base so that you can get testimonials and opinions from previous clients. Recommended real estate agencies from your friends could be a great way to start as well. After all, when considering property, trust is an essential need.Professionalism: You would want to look for a highly professional real estate agency and not some side business run by someone. Real estate agencies generally run with the help of real estate agents, and getting a good professional agent for your pursuance of property is necessary to get the best deal.Experience: In the field of realty, the more experienced the real estate agency is, the better deals it is going to be able to get you. Experience is therefore a must.Choosing a good real estate agency could be vital in buying property. A real estate agency could save you a lot of money which you could then utilize to decorate or upgrade your property, or even just save the extra money for something else. A real estate agency will guide you and help you obtain the best price for the property for which it is valued.
What is an Agency?
An agency is an area of commercial law, which deals with contractual and quasi-contractual tripartite set of relationships when an Agent is authorized to act on behalf. The real estate agency therefore acts as a law abiding group of agents who act as mediators between people who want to buy realty and people who want to sell it. This branch of law partitions and standardizes the relationships between:Agents and Principals (i.e. the agent who is the person of the agency and the principals who are the people who authorize the agent to act on their behalf to create the relationship between them and the third party)Agents and the third parties (i.e. the third parties are the group of people with whom the agents deal with on the Principal's behalf)Principals and Third Parties (this occurs when the agents purport to deal on their behalf)Choice of Real Estate AgencyWith the growing realty market, there are an increased number of real estate agencies to choose from. Most are good, but you should be on the outlook to find a great real estate agency. After all the good real estate agents might be able to get you a good deal, but the great ones could end up saving thousands of dollars of your expenses. You should look out for the following characteristics within a good real estate agency:Trustworthiness: The real estate agency must be trust worthy to begin with. Most great real estate agents have a large client base so that you can get testimonials and opinions from previous clients. Recommended real estate agencies from your friends could be a great way to start as well. After all, when considering property, trust is an essential need.Professionalism: You would want to look for a highly professional real estate agency and not some side business run by someone. Real estate agencies generally run with the help of real estate agents, and getting a good professional agent for your pursuance of property is necessary to get the best deal.Experience: In the field of realty, the more experienced the real estate agency is, the better deals it is going to be able to get you. Experience is therefore a must.Choosing a good real estate agency could be vital in buying property. A real estate agency could save you a lot of money which you could then utilize to decorate or upgrade your property, or even just save the extra money for something else. A real estate agency will guide you and help you obtain the best price for the property for which it is valued.
Report: When it comes to finding a commercial real estate broker
When it comes to finding a commercial real estate broker, the old adage 'know thyself' holds true. It's not only about finding the broker with the right skills and qualifications. It's also crucial to know exactly what it is you have in mind. 'The single most important thing at the outset is being honest with yourself and adequately identifying and clarifying exactly what you're looking for,' said Randall Walker, president of the Society of Industrial and Office Realtors. All too often buyers or tenants approach real estate brokers without a clear idea of what kind of building or space will fit their needs, Walker said. They may sit down at the table with grandiose plans that they can't afford, or they might want to set up shop in a part of town for which their business isn't suited."
When tenants look for a commercial real estate broker they really should look for someone who can advise beyond the bricks and mortar, says Jim Elcock, executive vice president at Colliers Meredith & Grew in Boston.“Companies need a trusted adviser who is not necessarily transaction-motivated,” he said, but rather “someone who can serve the role of a fiduciary, who understands the client’s business, can evaluate the marketplace and help the client get its real estate plan in concert with its business plan.”“Companies absolutely need someone who knows more than just real estate,” agreed John Carroll III, senior vice president who covers the suburban commercial real estate market for Colliers Meredith & Grew.Despite the gloomy reports about an economic recession, Boston’s commercial real estate market is faring well.
When tenants look for a commercial real estate broker they really should look for someone who can advise beyond the bricks and mortar, says Jim Elcock, executive vice president at Colliers Meredith & Grew in Boston.“Companies need a trusted adviser who is not necessarily transaction-motivated,” he said, but rather “someone who can serve the role of a fiduciary, who understands the client’s business, can evaluate the marketplace and help the client get its real estate plan in concert with its business plan.”“Companies absolutely need someone who knows more than just real estate,” agreed John Carroll III, senior vice president who covers the suburban commercial real estate market for Colliers Meredith & Grew.Despite the gloomy reports about an economic recession, Boston’s commercial real estate market is faring well.
Thursday, August 7, 2008
In trying times, real estate agents willing to cut commission - Baltimore Business Journal:
When it comes to residential real estate these days, it seems everything's subject to negotiation.
That includes the real estate broker's cut on the deal, according to a report issued Monday by Consumer Reports. Based on a recent survey of home sellers, 46 percent of people trying to sell their homes through agents tried to negotiate a lower commission rate. Of those home sellers, 71 percent succeeded in getting the real estate agent to take less.
Haggling, the nonprofit Consumers Union publication noted, didn't mean home sellers were getting less from their agents or were less satisfied with the outcome. Sellers who paid commission rates of 3 percent or lower were just as satisfied with their broker's performance as those who paid 6 percent or more, the report noted.
Despite the nationwide slump in residential real estate sales, 86 percent of Consumer Reports' readers who put their homes on the market made a sale, while only 8 percent gave up and took their homes off the market.
Agents with large brokerage firms scored just as well as independent brokers when it came to customer satisfaction, but the magazine recommends home sellers base their choice of agents on factors that include personal recommendations.
The magazine recommends home sellers price their homes realistically, and drop their asking price between 4 percent to 6 percent if they don't receive an offer within four to six weeks.
That includes the real estate broker's cut on the deal, according to a report issued Monday by Consumer Reports. Based on a recent survey of home sellers, 46 percent of people trying to sell their homes through agents tried to negotiate a lower commission rate. Of those home sellers, 71 percent succeeded in getting the real estate agent to take less.
Haggling, the nonprofit Consumers Union publication noted, didn't mean home sellers were getting less from their agents or were less satisfied with the outcome. Sellers who paid commission rates of 3 percent or lower were just as satisfied with their broker's performance as those who paid 6 percent or more, the report noted.
Despite the nationwide slump in residential real estate sales, 86 percent of Consumer Reports' readers who put their homes on the market made a sale, while only 8 percent gave up and took their homes off the market.
Agents with large brokerage firms scored just as well as independent brokers when it came to customer satisfaction, but the magazine recommends home sellers base their choice of agents on factors that include personal recommendations.
The magazine recommends home sellers price their homes realistically, and drop their asking price between 4 percent to 6 percent if they don't receive an offer within four to six weeks.
In good times and bad times; "these days" and other days; Real Estate Agents have negotiated commissions. It is stated on the contract. Commissions are negotiable.
Some who own a real estate company with offices in Dallas and Austin are most times puzzled by sellers who are so focused on what they are paying and not when they are closing and what they are netting.
However, selling a home in a slowing (Buyers) real estate market offers more challenges to get the home sold for a REALTOR® and a homeowner. This is a time when you want a very skilled REALTOR® giving you and you're home their complete attention. If you are a homeowner that needs to sell my recommendation is to first focus on finding the best REALTOR® and then be sure that REALTOR® has incentive to give you their undivided attention and expertise. REALTORS® are humans and they will respond to incentive like most people. This is not to say a homeowner will not get the best service when paying their REALTOR® a lower commission, but who wants to take a chance on one of their largest investments in order to save a few bucks.
Some who own a real estate company with offices in Dallas and Austin are most times puzzled by sellers who are so focused on what they are paying and not when they are closing and what they are netting.
However, selling a home in a slowing (Buyers) real estate market offers more challenges to get the home sold for a REALTOR® and a homeowner. This is a time when you want a very skilled REALTOR® giving you and you're home their complete attention. If you are a homeowner that needs to sell my recommendation is to first focus on finding the best REALTOR® and then be sure that REALTOR® has incentive to give you their undivided attention and expertise. REALTORS® are humans and they will respond to incentive like most people. This is not to say a homeowner will not get the best service when paying their REALTOR® a lower commission, but who wants to take a chance on one of their largest investments in order to save a few bucks.
Egele speaks
"I have seen the opposite to be true. I am a local real estate broker, and it seems that when times are slow sellers are more willing to pay full commissions. They just need to get the home sold.When times are good and listings sell in a week it is harder to justify the full commission. Right now homes are sitting and we have been turning down listings that we didn’t think we could sell within 3 months. We have not had sellers asking for discounted commissions, but if they did we would pass because there is no shortage of sellers right now".
Daniel J. Sernovitz, Baltimore Business Journal
Daniel J. Sernovitz, Baltimore Business Journal
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