The holiday season might not seem ideal for your client to sell a home (or for you to take a listing, for that matter), but there are numerous advantages to listing a property during this festive time
The holiday season might not seem ideal for your client to sell a home (or for you to take a listing, for that matter), but there are numerous advantages to listing a property during this festive time of year. While this isn't a specific topic in real estate school nor discussed on the California real estate exam, I'd like to give you several convincing reasons why doing business during the holiday season is a wise decision. For some real estate agents, December can be a “slower month,” but it doesn’t have to be. Plenty of listings and sales can be had if you don’t “check out” of the business mentally.
One other thing to keep in mind, as a real estate professional, there is a 30-60 day lag on income compared to activity. This means that if you don’t sell anything in December, it will reflect poorly on your income from January through March. Similarly, if you struggle financially in December, this is a consequence of your activities in September and October.
Serious Buyers and Higher-Quality Showings Happen Over the Holidays
To start, people searching for homes during the holiday season are typically serious buyers with a specific need to purchase a property and likely quickly. You should have higher-quality showings and more motivated buyers interested in your listing. Logically, a buyer not genuinely interested in buying a property is unlikely to spend time touring various homes during the holidays with a buyer's agent. Therefore, when you put a house on the market during the holiday season, you can have a higher degree of confidence that potential buyers viewing your property are genuinely serious about making a purchase.
Less Competition and Higher Sale Prices
Less competition from other sellers typically means a higher sale price for your listing. Because inventory levels tend to be slightly lower during the holiday season, serious buyers have fewer houses to choose from, which means less competition for your listing. This can translate into a higher sale price, as your home will stand out among the limited options available.
Homes Show Better with Holiday Decorations
Houses also show better when decorated for the holidays. By working with your seller to tastefully adorn your listing, you can create an emotional connection with potential buyers, who will more easily envision themselves celebrating future holidays in your space. This might also mean you’ll have some passionate buyers willing to pay your price. Don’t be afraid to tug on the heartstrings of buyers walking through your open house around the holiday time - bake aromatic cookies in the oven or light that special holiday candle. Love does enter through the nose, after all!
Buyers Have More Time to House Hunt
Remember that there are other reasons why selling real estate during the holidays is better than any other time of the year. During the holiday season, many buyers have additional time off work, allowing them more opportunities to search for their perfect home, which could increase the number of showings your listing gets.
It's often easier for a buyer to sneak out of work during the holidays to go see your listing than at other busier times of the year.
Tax Advantages for Buyers
Also, some buyers need to purchase before the end of the year for tax reasons, making them more motivated to close on a property quickly. The reason is that buying a property before the end of the year can allow buyers to claim certain tax deductions in the current tax year. For example, mortgage interest, property taxes, and points paid on a mortgage may all be deductible expenses. Buyers can maximize these deductions and reduce their overall tax liability by closing on a property before the year-end.
Of course - tell your buyers to consult with their tax advisors to be sure.
Possible Tax Credits for First-Time Homebuyers
Tax Credits: Some jurisdictions offer tax credits to first-time homebuyers or buyers who purchase energy-efficient properties. Closing on a property before the end of the year may allow buyers to claim these credits in their current tax return, which may result in a lower tax bill or a larger refund.
Capture the Relocating Employee Market
January is a popular month for employees starting new jobs. Transferees often can't wait until spring to buy, so listing during the holiday season ensures your home is available to this motivated market segment.
Still Maintain Control Over Showings
While your home is on the market during the holiday season, you can still restrict showings during specific days to maintain your family's privacy and enjoy the festivities. Communicate with your real estate agent about your preferred showing schedule, and they can work with potential buyers to accommodate your needs while ensuring maximum exposure for your property.
Maximize Buying Power in Spring
Selling your home during the holiday season can position you as a non-contingent buyer in the spring when more houses are available at potentially lower prices. This strategy may allow your client to sell high and buy low, maximizing their buying power.
Faster Closing Process
Since the holiday season is typically a slower period for real estate transactions, lenders and other professionals involved in the closing process may have more availability. This can lead to a smoother and faster closing process, allowing your client to move into their new home sooner.
Enhanced Online Visibility
With the growing importance of online listings and virtual tours, especially during the holiday season, homes listed during this period can benefit from enhanced online visibility. Buyers are more likely to search for properties online during the holidays. A well-presented listing with professional photos and virtual tours can make a strong impression on potential buyers.
Taking a listing during the holiday season may seem unconventional, but the numerous benefits – including serious buyers, less competition, tax advantages, and more – make it an attractive option. You may have already completed our real estate school and passed the California real estate exam, now you need to be well-equipped to navigate the holiday market and achieve the best possible outcome for your seller.
So, instead of waiting for the spring season, consider taking advantage of these compelling reasons to list your client's home during the holiday season and make it a win-win situation for everyone involved.
PS - Keep working through the holidays! Your February self will thank you for it!
As always, if you are interested in taking real estate classes, visit www.adhischools.com
Love,
Kartik
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In today's fast-paced and competitive real estate market, agents must understand the wants and needs of their clients. A successful agent knows that meeting the expectations of home sellers can make all
In today's fast-paced and competitive real estate market, agents must understand the wants and needs of their clients. A successful agent knows that meeting the expectations of home sellers can make all the difference in securing a listing and closing a deal. As a result, agents must put their clients' priorities at the forefront of their business strategies. This article discusses the key factors that home sellers are looking for in an agent and how obtaining a real estate license from a reputable real estate license school can help you meet these expectations.
Assist in Competitive Pricing
Pricing a property accurately is critical in ensuring a quick sale and the best possible return on investment for the seller. Home sellers want an agent who can use their expertise and local market knowledge to determine the appropriate price point for their property. This involves analyzing comparable properties in the area, understanding current market trends, and accounting for any unique features or upgrades the home may have.
One of the most crucial aspects of a real estate agent's job is helping sellers determine the appropriate listing price for their property. This requires a deep understanding of the local market, comparable properties, and the unique features of the home in question. By guiding sellers toward a realistic and competitive listing price, agents can optimize the chances of a successful sale and maximize the seller's return on investment.
To begin, real estate agents, should conduct a comprehensive Comparative Market Analysis (CMA) to evaluate similar properties in the area that have recently sold, are currently on the market, or were withdrawn from the market without being sold. This analysis allows the agent to identify trends, gauge the competition, and determine the property's fair market value. By presenting this information to the seller, agents can help them understand how their home compares to others in the market and why a specific price range is recommended.
In addition to the CMA, agents should also consider the property's unique features, upgrades, and condition when recommending a listing price. Factors such as a recently renovated kitchen, a well-maintained garden, or energy-efficient upgrades can add value to a home and justify a higher asking price. Conversely, outdated appliances, necessary repairs, or an undesirable location may warrant a lower price. By discussing these factors with the seller, agents can help them grasp the impact of their property's specific characteristics on the listing price.
Completing a comprehensive real estate course online can help future agents develop the skills and knowledge needed to price properties accurately and communicate their findings effectively to sellers.
Market to Interested Buyers
Strategic marketing is essential in attracting the right buyers and generating interest in a property. Home sellers want an agent to showcase their property through various channels, including online listings, social media, and print advertising. A well-rounded marketing plan should include professional photography, engaging property descriptions, and targeted exposure to potential buyers.
A quality real estate license school will offer courses covering marketing strategies and techniques, enabling agents to promote their listings and generate interest from potential buyers effectively.
Determine Price-Boosting Improvements
Home sellers are often interested in making improvements that will increase their property's value. A knowledgeable agent can recommend high-ROI repair projects and renovations that will significantly impact the final sale price. Some examples of valuable improvements include:
Kitchen Remodel:
A minor kitchen remodel can yield a significant return on investment (ROI). According to the 2021 Cost vs. Value Report by Remodeling Magazine, homeowners can expect to recoup approximately 72% of the cost of a minor kitchen remodel. A minor kitchen remodel may include updating cabinet doors and drawer fronts, installing new countertops, and updating fixtures and hardware. The report also notes that an updated kitchen is one of the most important factors for homebuyers when considering a property.
Source: Remodeling Magazine - 2021 Cost vs. Value Report
Adding a Wood Deck:
Adding a wood deck to your home can increase its appeal to potential buyers and provide a good ROI. The 2021 Cost vs. Value Report states that homeowners can expect to recoup around 66% of the cost of a wood deck addition. A deck expands your home's living space and enhances its outdoor appeal, making it more attractive to potential buyers.
Source: Remodeling Magazine - 2021 Cost vs. Value Report
Updating the Entry Door:
Replacing your entry door with a new steel door can significantly improve your home's curb appeal and security while providing a high ROI. According to the 2021 Cost vs. Value Report, homeowners can expect to recoup about 65% of the steel entry door replacement cost. An attractive, secure front door can create a strong first impression on potential buyers and increase your home's overall value.
Source: Remodeling Magazine - 2021 Cost vs. Value Report
Remember that these projects' actual return on investment can vary depending on your specific location and market conditions. It's always a good idea to consult with a local real estate professional for tailored advice on the best improvements for your home.
Safeguard with Technology
In today's digital age, technology plays a significant role in protecting both agents and their clients during real estate transactions. Home sellers want an agent who can use cutting-edge technology to streamline the process and mitigate future risks, particularly regarding property disclosures. A complete or correct disclosure package can help avoid legal and financial troubles for sellers, even after closing the deal.
Reputable real estate license schools will offer courses that cover the use of technology in real estate transactions, ensuring that agents are well-versed in using digital tools to protect their clients and themselves.
Responsiveness and Advocacy
Home sellers expect their agent to be available and responsive to their needs. In the age of instant communication, clients want to know that their agent is just a phone call, text, or email away. Agents who are prompt and attentive to their client's needs can foster trust and build long-lasting relationships.
A quality real estate online course will emphasize the importance of effective communication and guide on maintaining client responsiveness.
Home sellers want an agent to advocate for their best interests throughout the transaction. This includes being honest about the property's value, representing only one party in a transaction, and disclosing potential conflicts of interest. Agents who prioritize their clients' needs and work diligently to secure the best possible outcome are more likely to earn repeat business and referrals.
Advocacy, in the context of real estate, refers to actively supporting, promoting, and defending the best interests of one's client while buying or selling a property. It involves providing expert advice, guidance, and representation to ensure the client's needs, preferences, and goals are met or exceeded in a transaction. Advocacy is a hallmark of real estate representation because it underscores the fundamental duties of a real estate agent and exemplifies their commitment to their client's success.
Here are a few reasons why advocacy is considered a hallmark of real estate representation:
1. Fiduciary responsibility: A real estate agent has a fiduciary duty to their client. This means that the agent must put the client's interests above their own and act with honesty, loyalty, and good faith. Advocacy is essential to fulfilling this fiduciary duty, as it demonstrates that the agent prioritizes their client's well-being in every aspect of the transaction.
2. Expertise and knowledge: A real estate agent's extensive knowledge of the market, property values, legal requirements, and negotiation strategies is critical to effectively advocating for their client. By leveraging this expertise, agents can provide valuable insights and advice to help their clients make informed decisions and achieve the best possible outcome in a transaction.
3. Negotiation skills: One of the most important aspects of advocacy in real estate is the ability to negotiate effectively on behalf of a client. A skilled negotiator can help secure favorable terms, such as a lower purchase or higher sale price, and ensure the client's interests are protected throughout the negotiation process.
4. Communication and problem-solving: Advocacy in real estate also involves maintaining open lines of communication with the client, as well as addressing any concerns, issues, or obstacles that may arise during the transaction. By actively listening to the client's needs and working diligently to find solutions, a real estate agent demonstrates their commitment to advocacy and exceptional client service.
5. Ethical conduct: A real estate agent's dedication to advocacy goes hand in hand with adhering to a strict code of ethics. This commitment to ethical behavior ensures that the agent will not only prioritize their client's interests but will also act fairly, honestly, and transparently throughout the process.
Advocacy is a cornerstone of real estate representation because it embodies the fundamental principles and responsibilities that agents must uphold to serve their clients effectively. Real estate agents can help clients navigate the complex world of property transactions by acting as a steadfast advocate, ensuring a successful and satisfying outcome.
In conclusion, understanding what home sellers genuinely want from their real estate agent is paramount in establishing a successful relationship and ensuring a positive outcome for both parties. By assisting with competitive pricing, strategic marketing, recommending price-boosting improvements, utilizing technology, and maintaining a strong sense of responsiveness and advocacy, agents can effectively meet the needs of their clients. Pursuing a real estate license from a reputable real estate license school and taking real estate courses online can equip agents with the skills and knowledge necessary to excel in these areas, ultimately leading to satisfied clients, successful transactions, and a thriving real estate career. By prioritizing the wants and needs of home sellers, agents can build long-lasting relationships, foster trust, and make a lasting impact on the lives of their clients.
As always, if you are interested in taking real estate license courses with our school, please reach out at www.adhischools.com or call us at 8887685285.
Love,
Kartik
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Introduction:
In the competitive world of real estate, securing a California real estate license through our online real estate school is just the beginning. Experienced professionals understand that
Introduction:
In the competitive world of real estate, securing a California real estate license through our online real estate school is just the beginning. Experienced professionals understand that passing the real estate exam is just the beginning – sometimes, it's in their best interest to walk away from a potential deal. Aspiring agents are often eager to take on any listing, assuming it's a stepping stone to success. In this article, I wanted to write about five instances when a real estate agent should consider declining a listing, illustrated by stories from industry professionals who have navigated the complexities of the California real estate market.
Unrealistic Seller Expectations
In the context of real estate sales and listings, unrealistic seller expectations refer to situations where a property owner has unreasonable or impractical assumptions about the value or marketability of their property. These expectations may include an inflated asking price, an overly optimistic timeline for selling, or a refusal to acknowledge necessary repairs or improvements.
These expectations can make it difficult for a real estate agent to market and sell a property effectively. Potential buyers may be deterred by the high asking price or unwilling to invest in a property that requires significant work. Additionally, these expectations can lead to frustration and strained relationships between the agent and the seller, as the agent struggles to meet the seller's demands or explain the realities of the market. In some cases, it may be in the agent's best interest to decline the listing and avoid the challenges associated with unrealistic seller expectations.
Zillow's Zestimates, an automated home valuation tool, can sometimes cause unrealistic seller expectations and difficulties for property owners during the sale of their home. While Zestimates can provide a general idea of a property's value, they are generated using algorithms that may not always account for unique characteristics, recent upgrades, or current market conditions. Consequently, sellers might overestimate their home's worth based on these potentially inaccurate valuations, leading to inflated asking prices that deter potential buyers. Additionally, when property owners discover the discrepancy between the Zestimate and the actual market value of their home, they may experience disappointment and frustration, complicating the selling process for both the seller and their real estate agent.
Example: A seller, Mr. Smith, insisted that his property was worth $500,000, despite comparable homes in the area selling for around $400,000. After extensive market research, Agent Amy realized that Mr. Smith's expectations were unrealistic and that selling the property at his desired price would be nearly impossible. Instead of taking on the listing and wasting time, energy, and resources, Amy politely declined and suggested that Mr. Smith reconsider his price expectations.
Poor Property Condition
In real estate sales and listings, poor property condition refers to a property with significant defects, damages, or maintenance issues, making it less appealing to potential buyers or requiring extensive repairs or renovations. After passing the real estate exam, agents need to be aware of issues like structural problems, damaged foundations or roofs, outdated or unsafe electrical or plumbing systems, signs of water damage, mold or pest infestations, and a general lack of upkeep that results in a worn or neglected appearance. Understanding these factors is crucial for agents navigating the competitive California real estate market. It helps them decide when to decline a listing that might not be in their best interest.
Obviously, a property in poor condition can negatively impact its marketability as buyers may be hesitant to invest in a home that requires considerable time, effort, and money to bring it up to standard. In some cases, a property in poor condition may need help attracting offers or selling at a significantly lower price than comparable properties in better shape. Real estate agents may only accept listings with good property conditions if the seller is willing to address the issues or adjust the asking price accordingly. The property may be challenging to sell, potentially harming the agent's reputation.
Example: Agent Bob was excited to list a beautiful Victorian home, only to discover that the property was riddled with structural issues, including a crumbling foundation and termite damage. The sellers were unwilling to make the necessary repairs or adjust the asking price to account for these issues. Recognizing that the property would be a hard sell and could damage his professional reputation, Bob decided to walk away from the listing.
Ethical or Legal Concerns
Ethical or Legal Concerns refer to situations where an agent may encounter moral dilemmas, potential violations of the law, or breaches of professional conduct related to the property or the parties involved in the transaction.
Example: Agent Carol was approached by a seller who seemed eager to offload their property as quickly as possible. After digging, Carol learned that the home had a history of illegal activity, and the seller attempted to sell the property without disclosing this information. Carol chose not to take on the listing to protect her integrity and avoid potential legal repercussions.
Uncooperative Sellers
Uncooperative sellers are property owners unwilling or unable to work collaboratively with their real estate agent to market and sell their property effectively. Uncooperative sellers can create a range of challenges for agents, making the sales process complicated, time-consuming, and frustrating. This lack of cooperation can manifest in various ways.
First, uncooperative sellers may refuse to promptly provide the necessary documentation, such as property records, disclosures, or financial statements. This can impede the agent's ability to market the property or negotiate with potential buyers accurately. Delayed or incomplete paperwork can prolong the sales process, leading to missed opportunities and diminishing the chances of securing a successful deal.
Second, uncooperative sellers might prefer to make recommended improvements or repairs to their property. Real estate agents often suggest updates or fixes enhance the property's marketability and increase its value. However, some sellers may be unwilling to invest the time or money required to make these changes, ultimately making it more difficult for the agent to attract buyers and negotiate favorable terms.
Another manifestation of uncooperativeness is the reluctance to accommodate property showings or open houses. These events are crucial for attracting potential buyers and allowing them to view the property in person. Uncooperative sellers may cancel showings at the last minute, impose unreasonable restrictions on viewing times, or be unprepared for scheduled events, all of which can deter interested buyers and hinder sales.
Example: Agent David was excited to list a stunning luxury property but quickly realized that the sellers needed help. They were unresponsive, refused to provide the necessary documentation, and regularly canceled scheduled showings. Recognizing that the sellers' lack of cooperation would make the sales process challenging and inefficient, David decided walking away from the listing was best.
Overwhelmed Schedule
An overwhelmed schedule refers to an agent taking on too many active listings, clients, or responsibilities, resulting in an inability to dedicate adequate time, attention, and resources to each individual client or property. This can lead to diminished quality of service, reduced client satisfaction, and ultimately, a negative impact on the agent's reputation and success.
An overwhelmed schedule might require an agent to turn down a new client for several reasons:
1. Maintaining the quality of service: Real estate agents are responsible for providing exceptional service to their clients, which includes thorough communication, effective marketing strategies, and diligent representation in negotiations. Taking on too many clients can spread an agent too thin, preventing them from delivering the high level of service that clients expect and deserve.
2. Prioritizing existing clients: An agent has a fiduciary duty to act in the best interests of their current clients, and adding more clients to an already packed schedule can jeopardize their ability to fulfill that obligation. By turning down a new client, an agent can focus on existing clients, ensuring they receive the attention and care necessary for successful transactions.
3. Time management and work-life balance: Juggling many clients and listings can lead to long hours, increased stress, and potential burnout. By recognizing their limits and turning down new clients when necessary, agents can maintain a healthier work-life balance and avoid becoming overwhelmed.
4. Protecting professional reputation: An agent's success often relies on their reputation for excellent service, effective communication, and successful sales. Overextending themselves with too many clients can lead to negative experiences, harming their reputation and future business prospects. Agents can safeguard their reputation and maintain a thriving business by carefully managing their workload and declining new clients when appropriate.
Example: Agent Emma had a thriving real estate business with several active listings. When a seller approached her to list a new property, she realized that taking on another listing would spread her too thin and compromise her ability to provide exceptional service to her existing clients. Emma made the tough decision to decline the listing, prioritizing her commitment to her current clients.
Conclusion:
Knowing when to walk away from a listing is crucial for real estate agents who want to maintain a successful and ethical practice. Whether it's due to unrealistic expectations, poor property conditions, moral or legal concerns, uncooperative sellers, or an overwhelmed schedule, agents should carefully consider each potential listing and prioritize their best interests and those of their clients. By recognizing the red flags and making intelligent decisions, real estate professionals can avoid wasting time and resources on listings that don't align with their values and business goals.
For more information about real estate license courses, please visit www.adhischools.com or call us at 888 768 5285.
Love,
Kartik
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Homebuyers' expectations have evolved significantly in today's dynamic real estate market. Modern homebuyers are more informed and tech-savvy than ever, making it essential for real estate agents to adapt
Homebuyers' expectations have evolved significantly in today's dynamic real estate market. Modern homebuyers are more informed and tech-savvy than ever, making it essential for real estate agents to adapt and meet their clients' needs. This article delves into the top five qualities homebuyers seek in a real estate agent. It provides insights into how agents can develop these skills and become the trusted ally their client's desire. By understanding and prioritizing these characteristics, real estate agents can ensure a successful and satisfying experience for their clients, setting themselves apart from the competition and thriving in the ever-changing world of real estate. So, let's explore these key attributes and discover how agents can enhance their offerings and better serve the modern homebuyer.
Buyers want their agent to be available and responsive.
Homebuyers want an easily reachable agent and quick to respond to their questions and concerns. In today's fast-paced real estate market, clients appreciate agents who can provide real-time updates and accommodate their busy schedules. Enrolling in our real estate school can help agents improve their communication skills and client management techniques in courses like Real Estate Practice.
Availability and responsiveness are essential characteristics for a real estate agent working with buyers because they directly impact the client's experience and the agent's ability to secure the best possible deal for their client. In today's fast-paced and competitive real estate market, quick and effective communication is essential for a successful outcome. Here are several reasons why availability and responsiveness matter:
1. Timely Action: In a hot market, properties can sell quickly, and buyers must act quickly to secure their desired home. An available and responsive agent can quickly schedule showings, submit offers, and handle negotiations, increasing the chances of success for their clients.
2. Client Satisfaction: Clients appreciate an agent who is readily available to answer questions, provide updates, and address concerns. This level of attentiveness and support fosters trust and helps build a strong working relationship between the agent and the client.
3. Informed Decision-Making: The home-buying process can be complex; clients rely on their agent's expertise to guide them through it. A responsive agent ensures clients receive the information they need promptly, helping them make well-informed decisions.
4. Problem-Solving: Issues can arise during the home-buying process, and a responsive agent can quickly address and resolve these problems, minimizing stress and delays for the client.
5. Reputation and Referrals: Clients who have a positive experience working with an available and responsive agent are more likely to recommend them to friends and family, leading to future business opportunities.
Utimately availability and responsiveness are crucial for a real estate agent working with buyers, as they directly contribute to client satisfaction and successful transactions. By prioritizing these traits, agents can provide an exceptional experience for their clients and achieve better results in the competitive real estate market.
Buyers Want Their Agent to be Tech-Savvy
Homebuyers expect agents to be proficient with digital tools, including social media, websites, and apps, to streamline the home search process. By taking our online real estate classes, you will learn how to leverage technology effectively and provide a seamless experience for their clients.
In today's fast-paced digital world, the modern homebuyer expects a real estate agent who is tech-savvy and well-versed in using the latest tools to find properties and provide top-notch service. With the increasing reliance on technology and the internet for information, agents need to adapt and meet the needs of their clients effectively and efficiently.
A tech-savvy real estate agent understands the importance of having a robust online presence, utilizing social media platforms, and maintaining an up-to-date website with relevant content. These tools help attract potential clients and provide valuable resources for homebuyers in their search for the perfect property. In addition, a modern agent leverages cutting-edge property search tools, virtual tours, and mobile apps to streamline the home-hunting process for their clients.
Furthermore, today's homebuyers crave instant communication, and a tech-savvy agent knows how to deliver. Using text messaging, email, and other instant messaging platforms, modern agents can respond promptly to inquiries, provide real-time updates, and ensure their clients are always in the loop. This level of responsiveness builds trust, enhances client satisfaction, and fosters strong working relationships.
In essence, the modern homebuyer seeks a real estate agent who can harness the power of technology to make the home-buying process as seamless and stress-free as possible. By staying ahead of the curve and embracing technological advancements, agents can cater to contemporary clients' needs and set themselves apart from the competition, leading to a successful and thriving real estate business.
Buyers Want Their Agent To Have Local Knowledge
Homebuyers want an agent with in-depth knowledge of the area they are interested in. This expertise helps clients decide about neighborhoods, schools, and local amenities. Attending a real estate crash course can give agents valuable insights into local markets and trends, positioning them as trusted experts by passing the real estate exam.
A modern real estate agent with strong ties to the local community can offer homebuyers a unique advantage in their property search. By actively participating in community events, networking with local businesses, and staying informed about municipal developments, agents can stay ahead of changes that may impact property values or the desirability of specific neighborhoods. This local expertise allows agents to provide clients with a comprehensive understanding of the market and up-to-date information on potential investment opportunities and emerging trends. Engaging with the community enhances the agent's reputation as a knowledgeable resource. It demonstrates their genuine commitment to helping clients find the perfect home within the context of the larger community.
Buyers Want Their Agent To Have People Skills
A friendly, approachable demeanor is essential in fostering strong relationships with clients. Homebuyers want to feel comfortable discussing their needs and preferences with their agent. Developing excellent interpersonal skills through real estate education and practice can significantly enhance an agent's ability to connect with clients and understand their unique requirements.
In addition to being friendly and approachable, a modern real estate agent must possess high emotional intelligence. This involves understanding and managing their emotions and empathizing with their client's feelings and needs. Agents can better tailor their services and create a more personalized home-buying experience by being sensitive to clients' concerns and preferences. Furthermore, strong emotional intelligence can help agents calmly and professionally navigate challenging situations, such as tense negotiations or emotional setbacks. Cultivating emotional intelligence through real estate education and practice fosters trust and rapport with clients. It equips agents with the skills necessary to handle the various demands of the home-buying process with grace and competence.
Buyers Want A Partner, Not Just An Agent
More specifically, this entails guiding them from the initial property search to the closing day, ensuring the process is smooth and seamless. Clients highly value agents who prioritize their best interests, offering comprehensive support at every stage. By pursuing continuous education through real estate school and staying updated on industry trends, agents can position themselves as indispensable partners to their clients. This level of commitment enhances the client's experience and strengthens the relationship between the homebuyer and their real estate agent, leading to lasting trust and satisfaction.
By focusing on these characteristics, agents can build trust with their clients and deliver a satisfying home-buying experience. Developing these skills through real estate education is essential to becoming a successful agent in today's competitive market.
Love,
Kartik
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For most people, purchasing a home is one of the most significant financial decisions an individual can make in their lifetime. Given the considerable investment involved, homebuyers need to ensure that
For most people, purchasing a home is one of the most significant financial decisions an individual can make in their lifetime. Given the considerable investment involved, homebuyers need to ensure that the property they are buying is structurally sound and free from potential problems. A critical step in achieving this is getting a home inspection before closing escrow. I wanted to write an article discussing a home inspection, why buyers should get home inspections, the typical costs associated with home inspections, and the process involved.
This is especially important reading for the licensee who just passed the real estate exam and completed real estate school because this topic isn’t really tested on the state licensing exam in California.
What is a Home Inspection?
A home inspection should be a comprehensive assessment of a property's physical structure, systems, and overall condition, carried out by a qualified professional - a home inspector. The primary goal of a home inspection is to identify any existing or potential issues that may affect the value, safety, or functionality of the home. The inspection typically includes visually examining the property's foundation, roof, plumbing, electrical systems, heating and cooling systems, insulation, ventilation, and other essential components. Upon completion, the home inspector provides the buyer with a detailed report outlining their findings and recommendations for any necessary repairs or improvements.
Who Licenses Home Inspectors in California?
Despite the lack of a licensing requirement for home inspectors in California, it is still highly advisable for buyers to seek a home inspection before purchasing a property. A home inspection performed by an experienced and reputable inspector offers invaluable insights into the condition of a house and helps buyers make informed decisions about the transaction.
The absence of a licensing requirement raises concerns about the quality and reliability of home inspections in the state. Licensing home inspectors would ensure minimum competence and knowledge, thereby providing greater protection to consumers. It would also help maintain industry standards and create a more level playing field for professionals. With a formal licensing process, home inspectors would be required to undergo training, demonstrate expertise, and adhere to ethical guidelines, ultimately resulting in better service and more reliable outcomes for home buyers - but that’s not the case as of the time of this writing. Home inspection companies aren’t required to be licensed in California.
By implementing a licensing system, the state would help ensure home inspectors are held accountable for their work, promoting transparency and giving buyers peace of mind.
Despite not needed to be licensed, home buyers should still obtain a home inspection before purchasing a property.
Why Buyers Should Get Home Inspections
1. Identifying Hidden Issues: A home inspection allows buyers to uncover potential problems that may not be immediately apparent during a casual walk-through or from the seller's disclosures. This could include structural damage, water damage, mold, or outdated electrical systems, which could be costly to repair or pose safety hazards.
2. Negotiating Power: A thorough home inspection gives buyers valuable information that they can use to negotiate the purchase price or request repairs from the seller before closing. If significant problems are discovered, the buyer may be able to either renegotiate the price or request that the seller address the issues.
3. Planning for Future Expenses: The home inspection report can help buyers plan for future maintenance or repair costs. By understanding the home's current condition and its systems, buyers can better budget for necessary expenses and avoid surprises.
4. Peace of Mind: A home inspection provides buyers with confidence and reassurance, knowing they have made a well-informed decision about their purchase. It reduces the likelihood of post-purchase regrets or discovering serious issues after moving in.
Risks of Not Obtaining a Home Inspection
Safety and Health Risks
Skipping a home inspection can lead to unexpected financial burdens down the road. If a significant problem is discovered after the close of escrow the buyer may have to cover the cost of repairs or replacements out of pocket. In some cases, these expenses can be substantial, causing financial strain and potentially forcing a buyer to take out loans or tap into their savings to cover the costs. Furthermore, if the property is sold in the future, unresolved issues can decrease the resale value, resulting in a lower return on investment.
Another critical aspect of a home inspection is ensuring the safety and health of the property's occupants. Inspectors (although unlicensed) should be trained to identify potential hazards, such as mold, asbestos, radon, and lead paint, which can pose serious health risks if not addressed. Skipping a home inspection can leave a buyer exposed to these dangers, potentially resulting in long-term health consequences and expensive remediation efforts.
Typical Costs of a Home Inspection
The cost of a home inspection varies depending on the property's size, age, and location. On average, home inspections in the United States range from $400 to over $1,000 with larger or older homes potentially costing more due to the additional time and complexity involved. It is essential to remember that while a home inspection may seem like an added expense, it is a small price compared to the potential costs of unforeseen repairs or disputes with the seller.
The Home Inspection Process
The home inspection process typically begins with the buyer hiring a home inspector. On the day of the inspection, the inspector will arrive at the property and conduct a thorough examination, which may take anywhere from two to four hours, depending on the size and complexity of the home. The buyer is often encouraged to accompany the inspector during the inspection, as it provides an opportunity to ask questions and better understand the home's condition. Once the inspection is complete, the inspector should compile a detailed report, including photographs and descriptions of any issues found. The buyer can then review the report and decide whether to request repairs, renegotiate the purchase price, or proceed with the purchase as-is.
The Home Inspection As A Negotiating Tool
One of the key benefits of a home inspection is the ability to use the information gathered to negotiate with the seller. If the inspection reveals issues that need to be addressed, buyers can request that the seller make the necessary repairs or provide a credit towards the cost of fixing the problems. With a home inspection, you can take advantage of the opportunity to negotiate a better deal, potentially leaving you to cover the costs of any issues discovered after the purchase to ensure that the property is the wonderful investment you and your client believe it to be.
Love,
Kartik
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Los Angeles is currently grappling with a significant homelessness crisis, and city officials are searching for ways to address this pressing issue. One idea that went into effect recently is the so-called
Los Angeles is currently grappling with a significant homelessness crisis, and city officials are searching for ways to address this pressing issue. One idea that went into effect recently is the so-called “mansion tax”, a controversial policy that has generated considerable debate among residents. While some argue that the tax is necessary to alleviate the city's housing crisis, others contend that it unfairly punishes wealthy property owners and successful individuals. I wanted to write an article that delves into the complexities surrounding the mansion tax, exploring both the benefits of the tax in addressing homelessness and the concerns about its potential negative consequences.
Most of our real estate classes are now on Zoom and done virtually, but I taught at a couple of real estate schools on the Westside of Los Angeles for many years and several of our students wanted to break into luxury real estate and I’m curious to know what you think.
Understanding the Mansion Tax
On April 1, 2023, a so-called “mansion tax” was enacted in Los Angeles. The tax applies to property sales at or over $5,000,000, with an increased rate for sales of $10,000,000 and above.
The tax was approved by voters in November 2022 as a city-wide tax, implementing a 4% tax on properties that sell for $5 million or more and 5.5% on properties that sell for $10 million or more. The mansion tax aims to raise about $900 million yearly for affordable housing, homelessness programs, and other related initiatives. However, the tax has faced criticism from real estate brokers, developers, and property owners.
Arguments for the Mansion Tax
Proponents of the mansion tax argue that it is a much-needed source of revenue to address the affordable housing crisis and homelessness in Los Angeles. The tax is expected to generate millions of dollars earmarked for subsidized housing, housing acquisition and rehabilitation, rent assistance, and homelessness-related programs. Advocates say the tax will help bridge the gap between the rich and the poor and provide resources for those in need. A 2022 UCLA study found that the mansion tax's potential impacts on new construction would be minimal, suggesting that the tax will not significantly deter developers from building new properties in Los Angeles.
The mansion tax in Los Angeles, despite its drawbacks, offers several benefits that could potentially help address the city's homelessness problem:
1. Generating Revenue for Affordable Housing and Homelessness Programs: The mansion tax is estimated to raise about $900 million annually, which can be directed towards various initiatives focused on tackling the housing crisis and homelessness. This additional funding can support the construction and preservation of affordable housing units and provide rent assistance to those in need. It can also help fund comprehensive homelessness programs, such as emergency shelters, permanent supportive housing, mental health services, and job training programs, essential in addressing the root causes of homelessness.
2. Progressive Taxation: The mansion tax is a form of progressive taxation, as it targets high-end property sales and wealthier individuals who can afford to pay a higher tax rate. This approach can help reduce income inequality and bridge the gap between the rich and the poor. By imposing a higher tax on luxury properties, the city can allocate more resources to support vulnerable and low-income residents, often disproportionately affected by the housing crisis.
3. Encouraging Efficient Use of Land: The mansion tax might encourage more efficient land use in Los Angeles. Luxury properties often occupy large plots of land, and the mansion tax could motivate property owners to either downsize or sell their land to developers who might build more affordable housing units in its place. This could ultimately increase the overall housing supply, alleviating the pressure on the city's housing market and potentially reducing homelessness.
4. Increased Awareness and Involvement: Implementing the mansion tax has generated significant public debate, raising awareness of the homelessness crisis in Los Angeles. This increased attention could lead to greater involvement from residents, businesses, and other stakeholders in finding long-term solutions to the housing crisis. This collective effort could result in developing more effective policies, initiatives, and partnerships to address homelessness in the city.
5. Demonstrating Commitment to Social Responsibility: The mansion tax conveys that Los Angeles is committed to addressing its homelessness problem and working towards a more equitable city. By using tax revenue from luxury property sales to fund affordable housing and homelessness programs, the city demonstrates its dedication to social responsibility and the welfare of all its residents.
The mansion tax in Los Angeles presents several potential benefits that could help alleviate the city's homelessness problem. By generating additional revenue for affordable housing and homelessness programs, promoting progressive taxation, encouraging efficient land use, raising awareness, and demonstrating a commitment to social responsibility, the mansion tax might contribute to creating a more equitable city and ultimately reducing homelessness.
Arguments Against the Mansion Tax
Critics of the mansion tax argue that it may slow the number of new apartment complexes built in the city. The tax applies not only to mansions but also to apartment complexes, retail and industrial buildings, and other structures. Real estate brokers and developers, including those with real estate licenses from real estate school and those who have passed the California real estate exam, warn that the tax will disincentivize developers from building new housing.
Moreover, the tax has faced backlash from wealthy homeowners, including celebrities, who rushed to sell their properties before it went into effect. Some critics argue that the tax may depress property values and force sellers to cut prices to complete deals before the deadline. Additionally, opponents of the tax are concerned about the transparency of how the revenue will be spent, and they argue that the tax may dissuade people from moving to Los Angeles.
Higher Costs: Wealthy individuals considering purchasing a luxury property in Los Angeles might be deterred by the additional costs associated with the mansion tax. In comparison, other cities or states without such a tax might become more attractive for high-end property buyers, leading them to choose alternative locations for their investments. For example, a prospective buyer might opt for a luxury property in Miami, Florida, with no state income tax or mansion tax, making it a more financially appealing option.
Reduced Investment: Investors might also be less inclined to purchase properties in Los Angeles subject to the mansion tax, as it could potentially reduce the profit margin on their investments. This could result in a decline in the city's overall demand for luxury properties, further impacting the real estate market and potentially leading to reduced property values. Consequently, the city could experience a slowdown in real estate investments, which could negatively affect the local economy and limit available resources to address homelessness and other social issues.
Impact on Business and Talent Attraction: Businesses, particularly those in the entertainment and technology industries, often attract high-income employees and executives who might consider purchasing luxury properties. However, implementing the mansion tax could discourage some individuals from moving to Los Angeles. In turn, this could make it more difficult for the city to attract new businesses and retain existing ones and limit its ability to draw in top talent across various industries.
Celebrity Exodus: Los Angeles is known for being home to numerous celebrities who often own high-end properties. The mansion tax could potentially prompt some of these high-profile individuals to sell their properties and relocate to areas with lower taxes, as seen in the backlash from wealthy homeowners who rushed to sell their properties before the tax went into effect. This exodus could further contribute to the decline in property values and negatively impact the city's image, tourism, and the overall economy.
In conclusion, implementing Los Angeles' mansion tax has stirred a significant debate in the city's real estate market. Advocates argue the tax will generate much-needed revenue to address the city's affordable housing crisis and homelessness issues. However, opponents contend that the tax will dissuade property development, negatively impact non-luxury properties, and ultimately harm the real estate industry in Los Angeles. As real estate professionals with real estate licenses from real estate schools, and those studying for the California real estate exam, monitor the situation, the long-term implications of the mansion tax on the city's real estate market remain uncertain. Time will tell whether this tax proves to be an effective solution to Los Angeles' housing challenges or an obstacle to the city's real estate growth.
As always if you are interested in getting your real estate license, visit www.adhischools.com or click here for a real estate exam crash course. Or if you’re old school - call us at 888-768-5285.
Love,
Kartik
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1. Arrive early at the property
Most buyers are pretty excited about seeing a home in-person for the first time. Sure, they’ve probably seen more than a few pictures online but there’s nothing like
1. Arrive early at the property
Most buyers are pretty excited about seeing a home in-person for the first time. Sure, they’ve probably seen more than a few pictures online but there’s nothing like walking through a home and touching, feeling and smelling it. Taking those first steps into the house comes with hope and all the possibilities of what life might be like when they move in.
With that said, imagine you are a homebuyer and call up a real estate professional and set up an appointment to view the property.
Upon your arrival the the agent is nowhere to be found.
All sorts of red flags start firing off in your mind:
“Am I at the right address?”
“Did the Realtor get lost? Wait - how does a Realtor get lost? Aren’t they supposed to know the area?”
“If they can’t show up on time - maybe they aren’t so reliable after all!”
Basically, when you arrive late for an appointment you undermine your trustworthiness at both a conscious and subconscious level.
Showing up early demonstrates that you are able to manage your time and are able to meet basic deadlines.
Pro tip: Get there at least 15 minutes early so you can verify access and open the property up.
2. Dress the part and groom yourself properly
Dressing appropriately is one of the easiest ways to make a good first impression.
I want to emphasize the word “appropriately” in this sentence because it doesn’t always mean a three-piece suit with a Charvet tie. Your style and your outfit should blend your style with that of your client and even the properties you are going to show. Because details matter how you appear will affect your buyer’s perception of you and the service you provide.
If you are showing beach cottages in Manhattan Beach your outfit will likely be different than if you are showing office space to a group of architects in downtown Los Angeles.
Be smart about your style and understand that how you visually present yourself will affect how your client perceives you.
Getting out of a clean car as a Realtor doesn’t hurt either.
3. Come prepared
Pulling property profiles and running comps isn’t the most exciting part of the job of being a Realtor. But remember that showing up with data in hand is one of the best things you can do to demonstrate your preparedness.
Being able to explain to your buyer why the deal is good and showing them data and comps will increase your credibility make you more trustworthy as an agent. Preparation is key whether you are meeting with a buyer client or preparing for a listing presentation to a seller.
Inevitably there will be something that goes sideways while you are in escrow - the home inspection might show more work than the buyer is mentally prepared to do or an appraisal can come in low. The more of an expert you seem to your buyer the more likely they are to take your advice.
Being perceived as an expert isn’t something that just happens. It’s a series of experiences that your client has with you that will build trust. Preparation is a critical step in building that relationship.
4. Put your phone away and appear interested
If you aren’t sure- yes it is 100 percent rude to swipe through your phone instead of being fully present with your prospect. It feels weird that I have to remind folks of this, but I have seen this time and time again in personal and business settings.
Constantly being on your phone makes your client feel unvalued - and those feelings never make for a great start for a relationship.
I get it though - you’re worried about that other escrow that is falling apart or you want to check TMZ to see if Kim Kardashian really got married again, but resist the temptation.
If you must have your phone out, the least you can do is turn the ringer off and only look at it during natural breaks in conversation.
5. Offer a firm handshake
If we can agree that COVID is over we can get to the importance of a firm handshake the first time you meet a client. The truth is that a good handshake helps to set the tone of your confidence and maybe even how trustworthy you are.
A firm handshake coupled with a smile and solid eye contact (not in a creepy way) can impart a strong first impression with your buyer. This type of introduction can help your image and set a solid foundation.
A strong and warm handshake also can subconsciously show your willingness to compromise and reach a real win-win for you and your buyer.
6. Remember to smile
Like a magnet, we are drawn to people who smile. We are also polarized and repelled by people that have negative facial expressions like frowns and grimaces.
Of course, smiling is seen as attractive and even makes folks assume you embody more positive personality traits.
Smiling more often can also have an ancillary effect of making you look youthful because studies show that the muscles we use to smile lift the face thereby making a person appear younger. I’m not suggesting that smiling is a natural form of botox but I might not be too far off. Smiling helps you look younger and psychologically makes us all feel just a little bit better.
So if you want to look more confident, youthful and give off a positive vibe try smiling a little more consciously and little more often. It might help you win over that real estate client, make you seem more relatable and even more approachable. You might even find that you get a little further along in life.
In the end - smiling suggests success.
7. Ask questions to show you are interested
I have spoken to some real estate agents who say that they don’t feel comfortable asking too many questions of a new buyer because they don’t want to appear too pushy or nosy. Some agents I have spoken with say they don’t even ask about buyer financing on the first meeting.
While these probing questions might seem a little awkward we have to ask these questions just like a doctor would to properly diagnose a patient. In the real estate world questions about financing, buyer needs and wants and timelines are critical.
I know if you have taken our real estate school online you’ve learned about the importance of asking questions of your client to better understand their needs. We talk a lot about this in our Real Estate Practice course.
It is said that the best real estate agents and salespeople keep asking questions until there are no more answers. Also keep in mind that the more questions you ask, the more emotional intelligence you build and the deeper your relationship with your client becomes.
Final thoughts
While many of the above list might be considered common sense, they are all important reminders to be present and focus on the needs of your client.
As always if you are looking to get your real estate license, we would love to talk to you! Call us at 888-768-5285!
TLDR:
1. Arrive early at the property.
2. Dress the part and groom yourself properly.
3. Come prepared.
4. Put your phone away and appear interested.
5. Offer a firm handshake.
6. Remember to smile!
7. Ask questions to show that you are interested.
Love,
Kartik
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As some of our readers have moved beyond obtaining their real estate license and passing the real estate exam, I wanted to have some content that is a little more advanced for the reader.
After you
As some of our readers have moved beyond obtaining their real estate license and passing the real estate exam, I wanted to have some content that is a little more advanced for the reader.
After you complete real estate school, you’ll end up working at a brokerage and are likely going to become a member of a local Multiple Listing Service and a member of an Association of Realtors.
As you might already know, the MLS is the Multiple Listing Service and is a database of properties for sale and also contains history of homes that were for sale and those that have sold. It’s really an invaluable tool.
Generally, most MLS systems require that any status updates to a property be reported within two business days of the status change and will result in a status violation if not changed in a timely way.
Broadly, there are two types of MLS statuses:
1. On-market
2. OFF-market
On market statuses are used on properties that the seller is actively soliciting offers on.
The off market status represents those houses that either have sold or those that the seller is not actively trying to obtain offers on.
I have written the statuses below and have used abbreviations of the statuses also. For example, the “Coming Soon” status is abbreviated by a “C” and the “Active” status is abbreviated with an “A”.
On Market Statuses
COMING SOON (C) This status would be used by a real estate professional when they have a valid listing contract on a property and there isn’t an offer accepted as yet. For this status to be used, the listing firm must have specific instructions signed by the seller to submit the listing as “Coming Soon” and not “Active” - there’s a difference.
While under this status, the agent is permitted to market and advertise the property and must include language that the property is “Coming Soon” and must include the date the property’s status will become “Active”. A key point to remember with the “Coming Soon” status is that the property must not be available for showings while the status is such.
The fact that the property is not allowed to be shown to prospective buyers while in “Coming Soon” is a big deal. There may be agents - or buyers - that see the property online and want to see it in person to get a jump start on the market. This is not permitted while it is listed as “coming soon”.
ACTIVE (A) The Active status is much less complicated than the “Coming Soon” one. The “Active” status is used when a property is On-Market and when the agent has a valid listing contract signed by the seller and no offer has been accepted as yet.
ACTIVE UNDER CONTRACT (U) Like the simple “Active” status, “Active Under Contract” is also technically an On-Market status even though the property has an accepted offer on it.
This status is used when the seller has already accepted an offer but wants the property to remain as an on-market status to collect back-up offers.
This might be a prudent status if the sale is subject to court or other third party approval as those third party approvals can sometimes be hairy and take more time than the current buyer is willing to wait.
It's important to keep in mind that even though the property is still active under contract, the seller generally does not have a right to cancel an existing escrow if they get a higher offer later making this not truly an “on-the-market” scenario.
Off-Market Statuses
HOLD (H) Unlike Coming Soon, Active or Active Under Contract, the “Hold” status is an Off-Market status. The agent would tag the property this way when a valid listing contract is in effect but due to myriad reasons the seller doesn’t want any showings. Perhaps this is due to repairs being made to the property or even an illness of an occupant and the seller might not want to show the home on a temporary basis.
WITHDRAWN STATUS (W) If the listing agent on a home is going to use a “Withdrawn” status the agent is indicating that the property is moving to an Off-Market status.
If this contract is going to be used, the property will no longer be marketed through the MLS - despite the fact that a valid listing contract exists.
In other words, the listing is being withdrawn from the MLS but no necessarily withdrawn from the market as a whole. Beware - there is potential to incur a duplicate listing violation if the seller relists with another listing agent and a Withdrawn status is still in effect.
PENDING (P) This status is also an “off-market” one. The listing agent can switch the status to Pending once an offer has been accepted.
The main difference between Active Under Contract and Pending is that when the listing is “Pending” the Seller is no longer soliciting offers through the MLS whereas while “Active Under Contact” the seller continues to solicit offers.
CANCELED (K) Canceled is a unique status as only Brokers and Office Managers have the permission to change a listing’s status to Canceled. The reason for this is that the listing contract is taken in the name of the broker and not the individual agent and as such no individual salesperson has the unilateral ability to cancel a listing.
This is an off-market status once changed to Canceled.
It’s important to note that using Withdrawn instead of Canceled will result in a status violation if tagged incorrectly.
CLOSED (S) Congratulations! If you are switching the status of your listing to “Closed” it means that your transaction has successfully completed and title has transferred from the seller to the buyer. This status is an Off-Market one and a property should be tagged as such after escrow has closed.
If you had a lease listing this could also be used after a property has been successfully leased.
EXPIRED (X) Like the “CLOSED” status, the “Expired” status is an Off-Market status and should be used when the time period of the listing has lapsed and the listing contract has, as such, expired. Most of the MLS platforms will automatically set the status to “Expired” once the time period has elapsed. At the time of the listing being input, the agent is required to specify the Date of Expiration so the system knows when to change the status to “Expired”. If the property sells before the expiration date and the agent has changed the status to “CLOSED” the MLS will not trigger an EXPIRED status after CLOSED.
Closing thoughts:
Choosing the right real estate brokerage to work for should ensure that you are trained up properly and that there are no surprises when it comes to what these MLS statuses actually mean. Some of the above are obvious, but the intricacies of when to use each one can sometimes be confusing.
Hope this helps!
As always, if you are interested in signing up for real estate school reach out to us at 888 768 5285!
Love,
Kartik
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1. Introduce yourself
Upon finishing the real estate courses at ADHI Schools, LLCmany of our students ask, "How do I pick a real estate office to work for?" Definitely a complicated question.
The
1. Introduce yourself
Upon finishing the real estate courses at ADHI Schools, LLCmany of our students ask, "How do I pick a real estate office to work for?" Definitely a complicated question.
The main thing to remember as a new agent is to pick an office that has a structured and scheduled training program. Don't be enticed by high commission splits (easier said than done - I know!) or empty promises. Learn the basics like how to fill out a contract, how to get clients and service them right.
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As a current or former student in our real estate license school you might remember my lecture from Real Estate Practice on listing presentations.I’ve placed a link to the YouTube video here if you need
As a current or former student in our real estate license school you might remember my lecture from Real Estate Practice on listing presentations.I’ve placed a link to the YouTube video here if you need a refresher or haven’t seen it yet.
While this video isn’t intended to be a real estate crash course it’s still helpful to watch as you strategize around building your seller-focused real estate business. While buyer clients are important, a scaleable real estate business is built around controlling listing inventory and that means working with sellers.
In order to obtain listings, you must become proficient at generating seller leads and making killer presentations. The high-level goal is to demonstrate you are the best Realtor for the job of selling their home.
Because of the competitive nature of the market you’ll need to have a solid listing presentation. Sellers have options when it comes to listing their home as the number of real estate agents in an area far exceeds the inventory at any given time.
I’ve put together some tips as you work with and negotiate with a potential seller.
1. Introduce yourself
Every meeting starts with an introduction. Keep in mind first impressions matter—so be sure to get this part right—and remember to smile. Be prepared to share your credentials, previous successes, and any other pertinent information demonstrating why you’re the right person to list their home.
1. Introduce yourself
Every meeting starts with an introduction. Keep in mind first impressions matter—so be sure to get this part right—and remember to smile. Have a firm handshake, make eye contact and address the seller by name.
2. Know the property
Before you arrive, make sure you’ve researched everything possible about the property and dig beyond surface-level information like bedroom and bathroom count. If you haven’t done your homework, it’ll be obvious to the seller. Make sure that your Comparative Market Analysis (CMA) is detailed, up- to-date and visually appealing.
3. Walk through the selling process
Share a clear timeline with the seller so they know what to expect. Much of this timeline will depend upon the current state of the market, so be prepared to explain any circumstances that will impact the time it’ll take from listing to contract and from contract to close.
It’s also important to also explain to the seller that buyers will generally have the right to conduct an inspection on the home while it’s in escrow.This could cause the buyer to ask for repairs or even ask for a monetary credit as a result of the inspection.
Going through several possible scenarios with the seller will help minimize surprises during the listing.
4. Explain pricing strategy
The main thing that prevents a listing from selling is an inappropriate price.Proper pricing can overcome nearly everything.Does the property have an inferior location? Price it properly.Is there an odd smell or is the home in desperate need of landscaping? Fix the price.
The professional real estate agent should have relevant comps pulled,bearing in mind the condition of the subject property, condition and location of comps,and have the communication skills to convey this information to the seller.
Be prepared and ready to explain the recommended price to the seller.It’s not uncommon for the owner to believe that their home is worth more money than your data suggests,especially in the world of Zillow. I recorded a YouTube video about this here if you need a refresher.
5. Explain pre-listing steps
As a sales technique, speak to the seller during the presentation as though you already have the listing. Educate them on what will be occurring after they sign.Assume that they are going to be listing with you.
It’s important that the seller know that the property won’t hit the market the instant you leave the presentation as there are many things that still have to happen.Photography must be arranged, marketing collateral needs to be created and copy must be written, as examples.
Giving the sellers a heads up about the process will go a long way in establishing rapport,trust and an understanding of the cadence of the process.
6. Explain marketing strategy
If your marketing strategy consists of placing the property on the MLS with one iPhone photo - this isn’t going to be enough.
Since real estate commissions easily run $10,000+ on most homes in California,it’s important to explain to the seller what the plan to sell their home is and why our commissions are as they are.
A well thought out marketing plan will help justify your fee and aid the seller in understanding where their money goes.
Include any syndication, local marketing, and online publicizing—share techniques you use that make their home stand out in a competitive marketplace.
7. Remember to listen
You want to build a relationship of trust with clients.Talk to them about why they’re selling their home and ask what their future plans are understanding their needs will help you better serve them.
Also remember to include all family members in the discussion. Often times a real estate professional might only speak to one spouse, falsely believing that they are the decision maker when the decision to list might be one made jointly by both owners.
God gave us two ears and one mouth-remember to use them run that ratio
8. Dress for success
Non-verbal cues like body language,grooming and how we dress can say a lot more than verbal communication can. There is little doubt that in a post-COVID world the business climate has moved away from suits, ties and pantyhose in favor of a more relaxed attire.
Depending on your market,how you dress might vary,but generally, business casual is probably appropriate.
One last tip: While the world is a bit more casual it’s better to be overdressed than underdressed so choose your wardrobe carefully.
9. Leverage the power of reviews
If you (or your company) have testimonials or online reviews from previous clients, bring them to the listing presentation.
People are more inclined to trust others who have experienced success with their agents.
These nine tips should help you put your best foot forward when making listing presentations.
It all starts with the right real estate school so choose wisely. I’d love to help you get started in our great business. Call me at 888 768 5285 and I or a member of my team can get you started.
Love,
Kartik
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Home design is an ever-evolving field that reflects our changing lifestyles, needs, and preferences while shaping the aesthetics and functionality of our living spaces. Keeping an eye on emerging design
Home design is an ever-evolving field that reflects our changing lifestyles, needs, and preferences while shaping the aesthetics and functionality of our living spaces. Keeping an eye on emerging design trends is crucial for homeowners, designers, and enthusiasts alike. It helps them stay up-to-date with the latest innovations and styles, ensuring their homes remain comfortable and visually appealing.
Trends in home design ebb and flow over time, influenced by various factors such as technological advancements, shifting cultural values, and even global events. Exploring new design trends that inspire and redefine our living environments is essential, fostering spaces that cater to our evolving needs and preferences while simultaneously promoting a harmonious balance between form and function.
In the competitive world of real estate, it is essential for professionals looking to become a Realtor or obtain their real estate license to stay ahead of the curve by keeping up with the latest trends in home design. A thorough understanding of current design preferences enables agents better to advise their clients on property improvements and market expectations, maximizing the property's appeal and value. Moreover, staying informed about home design trends establishes the agent as an expert, instilling confidence in their clients and setting them apart from the competition. As they prepare for their real estate license exam, aspiring agents should consider incorporating home design trends into their studies to ensure a comprehensive understanding of the industry and enhance their professional expertise.
Patterned Hardwood Floors
Patterned hardwood floors have emerged as a leading design trend in the real estate industry, redefining contemporary living spaces with artistic and visually appealing aesthetics. Known for their intricate designs, patterned hardwood floors provide a unique focal point that elevates the overall interior design. The popularity of this flooring option can be attributed to its ability to create a sense of luxury and sophistication while offering practical benefits over traditional carpeting.
One significant advantage of hardwood floors over carpet in general is their durability. Hardwood floors are resistant to wear and tear and can be refinished multiple times, prolonging their lifespan and maintaining their appearance for years. Conversely, carpets tend to wear down and accumulate dirt, allergens, and stains, requiring more frequent replacement. Furthermore, hardwood floors provide a more hygienic living environment as they do not harbor allergens and are easier to clean and maintain.
As homeowners and designers embrace the resurgence of patterned hardwood floors, certain wood types have become increasingly popular in real estate design. With its warm tones and distinctive grain patterns, oak is a favorite choice for creating striking floor designs, such as herringbone and chevron. Walnut, renowned for its rich and deep color, offers a luxurious and sophisticated touch, making it ideal for creating eye-catching patterns like parquet or basketweave.
Another trending wood type is reclaimed wood, which contributes to a unique and rustic aesthetic and promotes sustainability by repurposing previously used materials. Bamboo is gaining popularity for those seeking an eco-friendly option thanks to its fast growth rate and inherent strength. Finally, exotic woods like Brazilian cherry, teak, and tigerwood are also making waves in the real estate design world, offering a range of stunning patterns and natural colors that will make a statement.
Patterned hardwood floors are a popular design trend in real estate, offering many benefits over carpeted floors. They deliver an unparalleled aesthetic appeal, durability, and easy maintenance, making them a sought-after choice for modern living spaces. With various wood types, homeowners and designers can create personalized and visually captivating flooring designs that cater to individual tastes and preferences.
Black Accents
The rise in popularity of black accents in real estate design can be attributed to several factors, including their versatility, timelessness, and ability to create visual interest. Black accents have become a sought-after design choice in contemporary interiors, as they effortlessly complement a wide range of color schemes and styles, adding depth and sophistication to any space.
One reason black accents are a good design choice is their ability to serve as a visual anchor, providing balance and contrast in a room. When used strategically, black elements can accentuate specific features or areas, drawing the eye and emphasizing the overall design. Furthermore, black accents can add a touch of elegance and refinement to a space, making it feel more polished and complete. Their neutral nature allows them to seamlessly blend with various color palettes, from minimalist monochromatic schemes to more vibrant and bold designs.
Incorporating black accents in interior design can be achieved in numerous ways, depending on the desired impact and personal preferences. Consider using black hardware on cabinetry, door handles, or light fixtures for subtle and understated black elements. This approach adds a touch of sophistication without overwhelming the space. To create a more dramatic effect, opt for statement pieces like a black accent wall, a large piece of black furniture, or bold black-and-white artwork. These elements will draw attention and create a stunning visual contrast.
Another effective way to incorporate black accents is through textiles and accessories. Black throw pillows, rugs, or curtains can add depth and richness to a room while allowing play with textures and patterns. For a cohesive and harmonious design, consider using black accents in multiple areas of the space, tying together different elements and creating a unified look.
Black accents have risen in popularity in real estate design due to their versatility, timelessness, and ability to elevate a space. They can be used in various ways to create visual interest and provide balance and contrast in a room. By incorporating black accents in different forms, homeowners and designers can achieve a stylish and sophisticated interior that appeals to a wide range of tastes.
Light Colored Floors
The growing popularity of light-colored flooring in real estate design can be attributed to its ability to create a sense of openness, its versatility in complementing various design styles, and the trend toward minimalist and Scandinavian-inspired interiors. Light-colored floors have become a favored choice among homeowners and designers alike for enhancing and brightening any living space.
One of the main reasons light-colored flooring is a good design choice is its ability to make a room appear larger and more open. Light floors reflect natural light, allowing it to bounce around the room and create a bright and welcoming atmosphere. This effect is especially advantageous in smaller spaces, where maximizing the perception of square footage is essential. Additionally, light-colored floors provide a neutral base that seamlessly blends with different color schemes and design styles, making them a versatile choice for various interiors.
Depending on the desired aesthetic and functionality, incorporating light-colored flooring in interior design can be achieved with various materials and finishes. Light hardwoods, such as white oak, maple, or ash, are popular choices for their natural beauty, durability, and warmth they bring to a space. Light-colored laminates and luxury vinyl tiles offer more budget-friendly and low-maintenance alternatives while still delivering a visually appealing look. For a more contemporary or industrial feel, polished concrete or light-colored tile flooring can create a sleek and modern foundation for the room's design.
When using light-colored flooring, it is vital to consider the balance and contrast with other elements in the room. Pairing light floors with darker or more colorful furniture and accents can create a striking visual contrast and ensure that individual pieces stand out. Alternatively, combining light floors with soft, neutral furnishings can create a serene and calming environment, perfect for spaces meant for relaxation and rejuvenation.
Versatile Spaces/Home Offices
The increasing prevalence of remote work and flexible working arrangements has led to a surge in demand for functional and versatile workspaces within the home. This trend has prompted homeowners and designers to create multipurpose spaces catering to work and leisure needs, ensuring that the home remains adaptable and efficient even as lifestyles and work arrangements evolve.
A dedicated work area at home is conducive to maintaining productivity, providing a space where individuals can focus on tasks without the distractions of everyday household activities. Moreover, a well-designed home office can promote a healthier work-life balance, enabling individuals to separate their work responsibilities from their personal lives more effectively. I recorded a YouTube video explaining how to balance working from home that you can watch here.
However, the need for a dedicated home office may diminish as work situations change and employees return to the office, either full-time or in a hybrid capacity. In such cases, it is beneficial to design a space that can serve multiple purposes, allowing homeowners to maximize the functionality and utility of their living areas. A room that functions as an office today can easily be transformed into a lounge, a display room, a guest room, or any other purpose the homeowner desires.
To create a versatile workspace that can accommodate various needs, it is essential to select furniture and decor that are flexible and multifunctional. For instance, investing in a desk that can double as a console table or a fold-out wall-mounted desk that can be easily tucked away when not in use, can provide valuable workspace without compromising the room's potential for other uses. Similarly, incorporating modular storage solutions, such as bookshelves or cabinets with adjustable shelves, allows easy reconfiguration to suit the room's changing functions.
In terms of decor, it is crucial to choose elements that complement both the office setting and the alternative uses of the space. Neutral color schemes, versatile lighting options, and adaptable decorative accents can help to create a cohesive and harmonious design that seamlessly transitions between different functions.
In conclusion, the growing trend of incorporating a multipurpose work area at home is driven by the need for flexibility, efficiency, and adaptability in response to changing work arrangements. By carefully selecting furniture, storage solutions, and decor that cater to various uses, homeowners can create a space that serves their work needs and contributes to a comfortable and dynamic living environment.
Biophilic design
Biophilic design can be traced back to the 1980s when biologist Edward O. Wilson introduced the term 'biophilia' to describe the innate human affinity for nature and living organisms.
However, integrating biophilic elements in architecture and interior design has gained significant momentum in recent years, particularly as environmental awareness and the desire for healthier living spaces continue to rise.
The growing popularity of biophilic design can be attributed to the increasing recognition of its physical and psychological benefits. Biophilic design helps reduce stress, improve cognitive function, and promote overall well-being by incorporating natural elements into the built environment. Furthermore, as urbanization expands and people spend more time indoors, the desire to reconnect with nature becomes more pronounced, making biophilic design a sought-after solution to bridge the gap between indoor and outdoor living.
To effectively incorporate biophilic design into homes, designers can consider the following tips:
1. Introduce greenery: Adding indoor plants, vertical gardens, or green walls enhances the aesthetic appeal of a space and purifies the air, and creates a calming atmosphere.
2. Maximize natural light: Prioritize large windows, skylights, and open floor plans to allow natural light to flood the living space, boosting mood and energy levels.
3. Use natural materials: Incorporate materials like wood, stone, or cork in flooring, furniture, and decorative accents to evoke a sense of connection to the natural world.
4. Embrace natural colors and patterns: Utilize earthy tones, such as greens, browns, and blues, or organic patterns inspired by nature to create a visually soothing environment.
5. Incorporate water features: The sound and sight of water can induce a sense of tranquility and relaxation. Consider adding a small indoor fountain, aquarium, or water wall to your design.
6. Opt for organic shapes and textures: Choose furniture and decor items with soft, rounded edges or irregular shapes that mimic the fluidity and unpredictability of nature.
7. Create a seamless indoor-outdoor connection: Blur the boundaries between the interior and exterior spaces by integrating elements like large sliding doors, outdoor living areas, or balconies that encourage interaction with the natural environment.
The biophilic design trend has gained traction due to the increasing desire for a connection with nature and its numerous physical and psychological benefits. Designers can easily incorporate biophilic elements into homes by prioritizing natural materials, colors, light, and greenery. This creates a living space that promotes well-being and fosters a deeper connection to the natural world.
Hope these design trends help. If you’re interested in learning about starting a career in real estate visit www.adhischools.com or call us at 888 768 5285.
Love,
Kartik
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As a real estate agent, your clients may ask you for tips in order to keep the home you just sold them safe. It's important to take safety seriously, and for many buyers this may mean more than
As a real estate agent, your clients may ask you for tips in order to keep the home you just sold them safe. It's important to take safety seriously, and for many buyers this may mean more than simply locking doors at night.
There are some best practices around safety that should be top of mind as you help buyers with after sale service.
Recommend Your Clients Change All the Locks When They Move In
In all likelihood, lots of people have touched the keys to the home before you closed escrow. From other agents, appraisers, termite companies and vendors you don't know who might have a current key. So for obvious reasons, buyers should change the locks right at the close or certainly before they move in and start remodeling.
While changing locks isn’t something that we necessarily teach in real estate school it is a basic thing that should be done.
Conceal Alarm System Wiring
Many clients elect to install an alarm system after the property closes. During the install it’s important to remind the buyers to hide all the wiring thereby greatly lowering the risk of someone cutting it to disable the alarm. Taking the time to hide wiring is much safer, even if it costs a little more for installation.
In all likelihood, if the buyer is using a professional installation company they will hide wires for the client but in the event the client buys a wired system on Amazon or something, they might need to be reminded to conceal them.
Landscape With Safety in Mind
Remind the buyer that when they landscape their new home make sure to keep entryways clear. Large bushes right up against the house, especially near the doors, are prime places for criminals to hide.
Tell Your Clients - Get To Know Neighbors
Neighbors tend to look out for properties in the neighborhood and while your buyer doesn’t have to become best friends with others in your neighborhood it's a good idea to be on (at least) speaking terms with as many of them as possible.
Light Up Any Dark Areas
If there are big pockets of darkness around the home it's generally worth the cost to put up some lights. Most people who break into homes and commit similar types of crimes do so when there's an easy opportunity for them. If the home is well lit criminals are less likely to see it as a good target.
Set a Safety Routine
It's a good idea for all of us to get in the habit of safety to properly protect our home and its contents. Simple steps like a nightly check of all the doors and windows, along with setting a schedule for checking things like smoke alarms, outside lights, and the alarm system.
By following some simple safety precautions your clients can feel secure in your space, reduce theft and get more enjoyment out of their new home.
Love,
Kartik
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The California real estate market has been remarkable in recent years, with a severe inventory shortage and historically low mortgage rates fueling one of the strongest housing markets in generations.
The California real estate market has been remarkable in recent years, with a severe inventory shortage and historically low mortgage rates fueling one of the strongest housing markets in generations. As a result, navigating this hot sellers' market can be challenging for homebuyers, and as a real estate agent, it's your responsibility to help them avoid common mistakes. To further your real estate education, consider enrolling in a real estate school or taking online real estate classes. Remember to check out real estate exam prep resources as well.
One of the most critical errors homebuyers make in a hot market is hesitation. Properties sell rapidly, often before they're officially listed, and bidding wars can erupt within hours. Prepare your clients for this reality by emphasizing the importance of making fast, decisive (but not impulsive) choices. Additionally, if you're considering entering the real estate industry and are wondering how to get your real estate license, we have plenty of resources are available to help.
Set an appropriate budget from the beginning
Another common pitfall is failing to search for homes within a client's budget. Although market activity has inflated home values, homebuyers must stick to a realistic price range. Encourage your clients to establish a maximum budget early on and remind them to stay within those limits when searching for comparable properties.
When embarking on the journey of purchasing a home, it's essential to establish a budget before you begin your search. Setting a budget beforehand allows you to make informed decisions and avoid financial strain, ensuring a smoother and more enjoyable home-buying experience.
One of the primary reasons for setting a budget first is the ability to narrow your focus on properties that fall within your financial means. This targeted approach saves time and energy, as you will only waste valuable resources viewing homes within your reach. Furthermore, by understanding your budget constraints, you can identify homes with the most desirable features within your price range, ultimately leading to greater satisfaction with your final choice.
Additionally, having a predetermined budget in place helps prevent emotional decision-making. When you encounter a dream home beyond your financial capacity, it can be tempting to stretch your budget and make an impulsive offer. However, overextending your finances can result in long-term consequences, such as difficulty meeting mortgage payments or sacrificing other financial goals. By committing to a budget from the outset, you can resist the allure of unaffordable properties and maintain a disciplined approach throughout the home-buying process.
Finally, setting a budget before house hunting gives you a strong negotiating position. With a clear understanding of your financial limits, you can confidently make offers and negotiate with sellers, knowing you are making a well-informed decision. This confidence can enhance your credibility in the eyes of sellers and potentially lead to more favorable negotiation outcomes. In conclusion, establishing a budget before looking for homes is the right strategy for prospective homebuyers. By focusing on properties within your means, avoiding emotional decisions, and strengthening your negotiating position, you can ensure a successful and satisfying home-buying experience.
Don’t Act Out Of Impulse
The urgency of a hot market can also lead to impulsive decisions, with clients quickly making offers on dream homes they can't truly afford. As a real estate agent, it's your job to help clients maintain perspective and make informed choices, even in the face of rapid market movements.
As a Realtor, it is crucial to guide clients through the home-buying process and help them avoid making impulsive decisions. While the excitement and anticipation of purchasing a new home can be overwhelming, it is essential to consider the long-term implications of such a significant investment. Impulsive decisions can result in unforeseen challenges and financial strain, ultimately detracting from the client's satisfaction with their new home.
One of the primary risks of impulsive decision-making is the potential to overlook crucial details about a property. In haste to secure a seemingly perfect home, clients may need to pay more attention to thorough inspections, research on the neighborhood, or a careful review of the property's history. Failing to consider these factors can lead to unexpected issues, such as costly repairs, disputes with neighbors, or declining property values. By encouraging clients to take a measured approach to their home search, they are more likely to make a well-informed decision and enjoy long-lasting satisfaction with their investment.
Moreover, impulsive decisions can lead to financial strain and compromise a client's financial health. When clients become enamored with a home beyond their budget, they may be tempted to stretch their finances and make a hasty offer. Overextending financially can result in difficulty meeting mortgage payments, an increased risk of foreclosure, or sacrificing other critical financial goals, such as retirement planning or saving for a child's education. By guiding clients to remain focused on their predetermined budget and carefully evaluating each property, they can avoid financial pitfalls and ensure a successful, stable homeownership experience.
Don’t Skip the Home Inspection
Another common mistake is forgoing a professional home inspection. A thorough inspection can reveal critical issues with a property, such as structural problems, outdated electrical systems, or potential safety hazards. Skipping this step can lead to costly repairs and unexpected problems after moving in. Homebuyers should always invest in a reputable home inspector to ensure they make an informed decision and protect themselves from potential financial pitfalls.
Keep Additional Expenses In Mind
Many homebuyers focus solely on the purchase price of a home and need to account for the myriad of other expenses associated with homeownership. These include property taxes, homeowners insurance, maintenance costs, and homeowners association (HOA) fees. Neglecting to consider these expenses can lead to financial strain and may result in buyers purchasing a home they cannot truly afford. Homebuyers must research and budget for all related expenses before making an offer on a property.
Ultimately, both you and your clients want the best possible outcome. Guiding someone through the largest purchase of their life is a rewarding and fulfilling experience as a real estate agent. If you're considering entering the industry, visit ADHI Schools to get started on your real estate pre-licensing courses and take the quiz:Should I become a real estate agent?
Love,
Kartik
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As a real estate agent, you will inevitably encounter clients needing more time to buy a home. These long-term buyers may be waiting for a job transfer, building their savings, or improving their credit.
As a real estate agent, you will inevitably encounter clients needing more time to buy a home. These long-term buyers may be waiting for a job transfer, building their savings, or improving their credit. Regardless, your role as their real estate advisor remains essential. Here are some tips to help you guide long-term buyers and ensure their future success in purchasing a home. Additionally, consider enhancing your skills and knowledge through a real estate school, online real estate classes, and real estate exam prep to serve your clients better.
Caution Against Large Purchases
Buyers must exercise financial prudence when buying a home, and realtors play a vital role in guiding them through this process. One essential piece of advice that realtors should offer long-term buyers is to postpone any significant purchases that could negatively impact their credit.
Encouraging clients to prioritize their home purchase over buying a new car or financing expensive furniture can make a considerable difference in their home-buying journey.
Large purchases can increase a buyer's debt-to-income ratio, lower their credit score, and affect their mortgage approval chances. Additionally, these financial decisions might signal to mortgage lenders a need for more financial discipline, raising concerns about the buyer's ability to handle mortgage payments.
Warren Buffet's concept of delayed gratification offers valuable insight into why buyers should delay these expensive purchases. Delayed gratification is the ability to resist the temptation of an immediate pleasure in the hope of obtaining a more valuable and long-lasting reward in the long term. By practicing delayed gratification, buyers can prioritize their long-term goal of homeownership over short-term desires for material possessions.
The ability to delay gratification is linked to many positive outcomes, including academic success, physical health, psychological health, and social competence. This skill is closely related to patience, impulse control, self-control, and willpower, all of which are crucial in home-buying.
By advising clients to embrace the concept of delayed gratification, realtors can help them focus on the long-term benefits of homeownership. As they resist the temptation of immediate rewards, buyers can work towards securing their dream home, ultimately reaping the rewards of their patience and financial discipline. By incorporating this perspective into the home-buying process, realtors can better guide their clients toward a successful and rewarding home purchase.
Promote Timely Bill Payments
Stress the importance of paying bills on time, as missed payments can harm their credit and delay home-buying. If they're at risk of missing a payment, suggest they contact their creditors to work out a solution.
TLDR - Pay bills on time or early.
Discourage Large Bank Transactions
Remind your clients to avoid large withdrawals or unsourced deposits to their bank accounts, as mortgage lenders scrutinize financial history thoroughly. Unusual transactions can lead to mortgage application denial.
When purchasing a home, buyers must be mindful of their financial transactions, as mortgage lenders pay close attention to their financial history. Large withdrawals or unsourced deposits can raise questions and potentially jeopardize the approval of a mortgage application. Understanding the impact of such transactions and why avoiding them is vital during the home-buying process is essential.
Mortgage lenders evaluate an applicant's financial stability and ability to repay the loan by analyzing their income, expenses, credit history, and existing debts. Unusual transactions, such as significant withdrawals or unsourced deposits, can raise red flags and suggest potential financial issues or undisclosed liabilities. Lenders may perceive these transactions as signs of financial mismanagement or an attempt to conceal relevant financial information, leading to doubts about the applicant's creditworthiness.
Moreover, mortgage underwriters must verify the source of funds used for the down payment, closing costs, and reserves. Unexplained or unsourced deposits can complicate this process, as they need clarity regarding the origin of the funds. This lack of transparency may lead lenders to question the legality or legitimacy of the funds, which can ultimately result in a mortgage application denial.
Maintaining transparency and consistency in financial transactions is crucial when applying for a mortgage. Buyers should avoid large withdrawals or unsourced deposits to their bank accounts during the home-buying process, as these unusual transactions can raise concerns for mortgage lenders and jeopardize the approval of their mortgage application. By keeping their financial activities clear and well-documented, buyers can increase their chances of securing a mortgage and successfully purchasing their dream home.
Warn Against New Credit Applications
Instruct your clients not to apply for new credit, including credit cards and financing large purchases. Also, ask about recurring payment plans, such as the iPhone Upgrade Program, which may perform "soft pull" credit checks that could negatively impact their credit score. New credit applications can impact your credit score for several reasons, and it's crucial for people in the process of buying a home to avoid applying for new credit during this time. Here's why:
Hard Inquiries: When you apply for new credit, lenders perform a "hard inquiry" on your credit report to assess your creditworthiness. Each hard inquiry can lower your credit score by a few points, and multiple inquiries within a short period can have a more significant impact. A lower credit score may result in less favorable loan terms or even denial of your mortgage application.
Debt-to-Income Ratio: Applying for new credit can increase your overall debt and raise your debt-to-income (DTI) ratio. Mortgage lenders consider your DTI ratio when determining your loan repayment ability. A high DTI ratio may lead to higher interest rates or disqualification from certain mortgage programs, making it more challenging to secure a mortgage for your desired home.
New Credit Accounts: Opening new credit accounts, such as credit cards or personal loans, can affect your credit score in several ways. Firstly, it reduces your average account age, which can lower your credit score. Secondly, it can impact your credit utilization ratio – the percentage of available credit you're using – another factor lenders consider when evaluating your mortgage application.
Financial Instability: Mortgage lenders prefer financially stable applicants with responsible credit behavior. Applying for new credit during the home-buying process can signal financial instability or the inability to manage existing debts, which may raise red flags for lenders.
To ensure a smoother home-buying process and increase the chances of securing a mortgage with favorable terms, it's essential to avoid applying for new credit during this time. Instead, focus on maintaining a healthy credit score, paying bills on time, and keeping your debt-to-income ratio low.
Maintain Regular Communication
As a real estate agent working with long-term buyers, maintaining regular communication throughout their home-buying journey is critical to your professional success. By keeping in touch with your clients, you demonstrate your commitment to their needs and ensure that you remain their go-to expert when they're finally ready to make a purchase.
Regular communication helps build trust and rapport with your clients, which is essential for fostering a strong, lasting professional relationship. By staying in touch and providing valuable information, you show your clients that you are genuinely invested in their long-term goals and ready to support them at every step. This proactive approach to client communication allows you to anticipate their needs and provide guidance on any potential challenges they might face during the home-buying process, ultimately making their experience smoother and more enjoyable.
Additionally, consistent communication keeps your clients informed about the latest market trends, new listings, and potential opportunities that align with their preferences and budget. By providing regular updates, you ensure that your clients remain well-informed and prepared to make educated decisions when the right opportunity presents itself. This level of attentiveness can set you apart from other agents, who may not prioritize long-term clients similarly.
In conclusion, maintaining regular communication with your long-term buyers is essential for securing your position as their trusted real estate advisor. By staying in touch and providing valuable guidance throughout their waiting period, you demonstrate your dedication to their success and ensure that you remain top of mind when they're ready to buy. In a competitive industry, this level of client care can make all the difference in securing future business and building a reputation for exceptional service.
Remember, not all clients will be ready to purchase a home immediately. By following these tips and investing in your education through a real estate school, online real estate classes, and learning how to get a real estate license, you can better serve long-term buyers and improve your chances of converting them into successful homeowners in the future.
Love,
Kartik
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As we move deeper into 2021, home design trends are predicted to be rather bold and personalized. This makes sense after the nation has been spending so much time at home. More and more people are
As we move deeper into 2021, home design trends are predicted to be rather bold and personalized. This makes sense after the nation has been spending so much time at home. More and more people are becoming attuned to their daily surroundings, noticing the nuances that add character and taking joy in some of the simpler pleasures. We'll look at what's on its way out and what everyone is making room for.
Interior Design Trends Going Away in 2021
Modern farmhouses, white kitchens, fast furniture, and single-use spaces look like they're soon going to be a thing of the past. The modern farmhouse look, with its barn doors and somewhat impractical sinks, was becoming far too ubiquitous for people's tastes. While it might work in the country, it's just not natural for an NYC apartment.
Perhaps more surprising for 2021 is that open floor plans also seem to be going out of style. As people turned their homes into makeshift schools, gyms, and home offices, there was a certain drawback to having so many undefined spaces in the home. Instead, people are starting to see more advantages to walled-off rooms that can be used for a variety of activities throughout the week.
2021 Predictions for Home Interior Design Trends
Here's what's likely to dominate the interiors of the most fashionable homes this year. Don’t forget to keep these in mind when hosting an open house this year.
Self-Expression
In a world of strip malls and housing developments, plenty of homeowners long to do something a bit more daring. The pandemic has only intensified this need for creativity, with more people viewing the empty space as a fun challenge rather than a daunting threat. So whether a person drags out old souvenirs from past trips or clears out a space for a more minimal interpretation, more decisions will have a larger purpose for the homeowner.
Post-Modernism
Post-modernism doesn't always have the best of connotations, sometimes prompting us to think of horrifying photos from the 1970s of busy rooms in all the wrong colors. But there's been a comeback in this movement as we round its 50th anniversary. Essentially an adverse reaction to the bare spaces of modernism, post-modernism is debuting new materials and ornaments for this year. It's a fun trend that can breathe a little life into an old room.
Industrial Styling
If even the latest twists in post-modernism don't suit your tastes, you might consider industrial styling as an alternative. The stonework, metal elements, and neutral colors have some of the same principles as minimalism or modernism, yet incorporate more details to explore in the home. This blend of styles is most often recommended for multi-purpose spaces with high ceilings. (It's a great way to pay homage to talented craftsmen in your area too.)
Black Kitchens
White kitchens were once the rage for luxury kitchens, but as with any song that's been played too long, they're starting to wear out their welcome. Now, people are looking for sleek black countertops, cabinets, and lighting as a way to distinguish the living room from the kitchen. If you have an open floorplan, this is especially recommended if you're not planning to build any walls. Of course, don't necessarily expect this trend to replace the beloved Carrara marble just yet though.
I’m also starting to see a lot of brass and copper tones set against these darker colors.
Sustainability
This one has clearly been on the rise for a while, but worth noting for 2021. This design trend goes hand-in-hand with transparency. People are looking for brands that aren't afraid to share how their products are made and how they treat their employees Rather than giving people vague promises, this year's customers will be looking for companies that highlight diversity in their staff and how the company is doing its part to protect the Earth.
Natural Shapes
Few things in life are picture-perfect. (The edges of a flower petal would be difficult to measure with a straight ruler.) Maybe that's why we're starting to see wavy shapes nearly everywhere. These more organic choices are thought to remind us of nature and stimulate our creativity. When we've been so cooped up at home, it makes sense that we're all gravitating toward this particular form of expression — whether they're found on a table, painting, or pillow,
More Plaster
On a more practical note, plaster could see more of a resurgence this year. For years, drywall has been the favorite. It's easy and fast to install, plus it offers a clean and uniform surface for the owner to decorate. On the other hand, plaster has to be layered over wood, presenting logistical challenges that don't always end well. But there's also a depth to plaster, one that offers more texture and (you guessed it) personality to the room. If you're interested in this one, experts recommend coating a drywall with a thin layer of plaster to see how it looks (and avoid demolition cost).
So there you have it, an educated guess as to what's to come. Considering the unpredictability of 2020 though, anything can happen with home design. It will all come down to how different design elements speak to the homeowners and what promotes functionality for all of the home's residents.
Love,
Kartik
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Regardless of the type of business you're running or even the industry that you're operating in, marketing is all about getting the right message in front of the right person at exactly the right time.
Regardless of the type of business you're running or even the industry that you're operating in, marketing is all about getting the right message in front of the right person at exactly the right time. This is especially true with regards to the real estate industry, where listings need to do everything they can to differentiate themselves from every other house available on the market in an effort to move as quickly as possible.
Once you've put in the hard work of collecting all information about the property you're trying to sell, taking stunning photographs and putting together that perfect listing, you then need to pull out all the stops to make sure that people actually see it. Therefore, if you really want to craft the perfect marketing campaign to make sure your listing moves quickly, there are a number of factors you'll want to take into consideration.
1. Take Full Advantage of the MLS
The first step you should take when marketing a new real estate listing involves using a multiple listing service, also commonly referred to as an MLS, to get the word out about your property. This is a database built by cooperating real estate brokers to provide data about homes for sale in a particular area. This lets agents see each other's listings of properties for sale, commission and agent details, all in the name of connecting buyers to sellers as efficiently as possible.
Important Note: The MLS and Zillow are not equal
Note that an MLS and a site like Zillow are NOT the same thing and should never be treated as such. That's not to say that sites like Zillow won't be effective for getting the word out about your property, because they will be. Buyers can visit Zillow on their own and see great information and pictures of homes currently for sale, all without ever leaving their computer chairs, but also direct them to use www.realtor.com. This provides access to the MLS database on a user side.
2. Get Active on Social Media - Connect with Your Audience
Another important step you'll want to take involves harnessing the full power of social media sites to your advantage. Sites like Facebook, Instagram and even Twitter don't just connect you to countless potential buyers - you can also use social media to target your efforts to specific geographic areas and even towards precise demographics to help get your message in front of as many of the RIGHT potential clients as you can. Be sure to include an overview of the property and as many of your standout photos as possible. Even if someone sees your information on Facebook and isn't ready to buy a home, they may know someone who is - thus allowing them to share the post and get people to contact you as well.
3. Send Emails to Past and Current Clients
Along the same lines, you should also send out email blasts to both current and past clients, as well as to all real estate contacts you've established. Again, you never know who is ready to buy a home and you shouldn't write anybody off at any point. By making people aware of the property, you could end up motivating someone who was "thinking of maybe moving in the next year or so" to get excited about doing so sooner rather than later.
4. Send Postcards to Your Real Estate Farm
Finally, be sure to send postcards to farm the area to drum up as much attention for the listing as possible. In real estate, farming is when you pick a particular geographic area and establish yourself as the local market authority. By bringing this new listing to everyone's attention, you'll likely increase the chances of selling it as quickly as you can. If nothing else, this is a way to stay in contact with those current and past clients to show them how active you are in their community.
So from that perspective, it's killing two birds with one stone, so to speak. You're not only selling your listing quickly, but you're further cementing yourself as the authority that people in the area can trust.
Love,
Kartik
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The ongoing COVID-19 pandemic has changed just about every industry you can think of dramatically over the last year, but that's especially true in the world of real estate.
Gone are the days where
The ongoing COVID-19 pandemic has changed just about every industry you can think of dramatically over the last year, but that's especially true in the world of real estate.
Gone are the days where you could comfortably hold massive open houses on a Saturday or Sunday afternoon, gathering everyone together in a confined space to try to drum up as much attention as possible. Thanks to COVID-19, you'd be hard pressed to find anyone enthusiastic about drawing that many people together - to the point where some might not feel comfortable stepping into a stranger's home at all.
However, all hope is not lost. As savvy real estate professionals have shown, it is entirely possible to manage a successful listing during COVID-19. You just have to keep a few key things in mind to help people stay as safe as possible before, during and after the period in which your listing goes live.
Be Prepared and Purchase Personal Protection Products: Hand Sanitizer, Face Masks and More
At a bare minimum, real estate agents should purchase general hygiene and other personal protection products when both pulling together the information needed for a listing, as well as when showing off the home at a later date.
This means bringing along hand sanitizer with at least 60% alcohol, for example. Likewise, face masks and other coverings should be worn for all in-person activities. Experts also agree that you should bring along plastic bags for the disposal of all personal protective equipment and related items that you have brought onto a property.
Best Practices to Follow if an Inspection is Needed
When it comes to the listing appointments themselves, keep in mind that any initial listing interviews need to take place remotely for the foreseeable future. If any type of inspection needs to be done of the property to guarantee accurate pricing or to assess safety issues, you should keep all of the following best practices in mind:
Limit the number of people who will be present for the in-person listing appointment as much as possible. Generally speaking, there should be no more than three people: the agent and the two parties involved in the sale of the home, if applicable.
Anyone who lives in the home but who is not directly related to the sale should be asked to leave until the appointment has been completed. If that isn't possible, adequate social distancing rules (staying at least six feet apart at all times) should be followed.
Anyone who is going to be at the listing appointment should be prepared to complete a verbal health screening prior to it beginning.
All people at the listing appointment need to use hand sanitizer and wear face masks.
How to Hold an Open House During COVID-19
With regards to actually showing off the property to potential buyers once the listing has gone live, it is recommended that you encourage the use of virtual showings whenever possible. Yes, this is a significant change from the way things are typically done. But to look on the bright side, virtual showings could attract the attention of a wider range of potential buyers who may not have otherwise been able to see the property. This is especially true for any buyer who may be out of state but who can't travel right now for obvious reasons.
Finally, all showings must be held by appointment only and you should schedule at least 30 minutes in between showings for proper sanitization of the environment.
If possible, you may want to consider limiting potential showings to only people who have been pre-approved by a mortgage lender. Or, you could do so for people who demonstrate that they have the money and/or financing available to actually buy the property. Doing so isn't just a great way to maximize the use of your time - it can also help significantly cut down on the risk by making sure that you're only showing to people who are actually interested buyers in the first place.
Love,
Kartik
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In any real estate transaction, there are closing costs that are to be paid by both the buyer and the seller, and it's important to remember that these can vary from state to state and transaction to transaction.
In any real estate transaction, there are closing costs that are to be paid by both the buyer and the seller, and it's important to remember that these can vary from state to state and transaction to transaction.
I wanted to give you a quick run down from both a buyer and a seller perspective for California.
Typical Closing Costs Paid by the Seller
Let’s start with closing costs that are typically paid by the seller. A back of the envelope estimate would reveal that it would cost most sellers between 6 and 8 percent of the sales price to sell their home. The majority of the this is going to be wrapped up in real estate commissions as the seller generally pays between 4 and 6 percent of the sales price to sell it. The other 1 to 3 percent may be in other closing costs like back property taxes that are owed by the seller that will have to be paid at the close of escrow.
Even if the property taxes are not delinquent, these taxes are a seller responsibility until the escrow closes. For example, if the transaction were to close on April 10th, the property taxes up until April 10th would the responsibility of the seller. Anything after that date would be passed to the buyer side of the closing. Sellers will also have to pay their share of escrow fees and any back homeowner association dues until the date that the escrow closes.
The seller will also pay for any repairs that the buyer successfully negotiates during the escrow process. A home inspection, for example, might reveal that a roof is leaking and instead of the seller fixing the roof, the buyer may ask for a $7,000 credit to fix the roof in lieu of the actual repair. This would be deducted from the seller's proceeds at the close of escrow.
The industry standard in California is also that the seller will pay for a title insurance policy protecting the buyer.
Common Closing Costs Paid by the Buyer
As it relates to the buyer, a quick estimate of their costs would reveal a range between 1-3 percent of the sales price, with most of this is going to go to fees charged by the lender.
A lender may charge a fee, known as a point that is equal to one percent of the loan amount. The point could be categorized as either a discount point or an origination point. The difference between the two is that a discount point is a point paid to the lender to lower the interest rate on the loan. An origination point, on the other hand, is a fee that is paid to the lender to compensate them for actually doing the loan.
Generally, buyers will also pay the lender a credit report fee and are also responsible for their share of prorated property taxes. Generally, buyers will also pay for a title insurance policy covering the lender. This is different than the owner's title insurance policy that I described above that the seller paid for to protect the buyer.
What this means is that there’s two policies of title insurance in connection with a real estate transaction on which there is a loan. First, there is an owner’s policy to protect the buyer as well as a lender policy covering the lender. Buyers will also pay for their share of any escrow fees which are negotiable in California.
Speaking of escrow fees, it’s important to note that there’s usually a base escrow fee of between $200 and $400 and then the escrow fees themselves are often $2-$3 per thousand per side. Larger real estate transactions of several million dollars might have a lower per thousand escrow fee. It's also helpful to remember that many of these fees are negotiable. Certainly real estate commissions are negotiable but an often overlooked point is escrow fees can also be negotiated with the escrow holder.
How to Calculate Closing Costs – A Simple Example
As an example on a $600,000 purchase the base escrow fee might be:
$300
+
$2/$1,000 = 600 x $2 = $1,200
$1,200 + $300 base fee = $1,500 for each side of the deal.
Buyers also generally pay for an appraisal on the property as required by their lender and a home inspection and other inspections as part of their due diligence.
Before you get your real estate license in California, it's important to familiarize yourself at some level with the typical closing costs, so you can properly inform your client. Often, real estate agents will produce something called a net sheet which estimates the costs to complete a transaction. Your broker should train you on how to properly fill these out so you can demonstrate that you're as informed as possible.
Love,
Kartik
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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
"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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For most real estate agents, a cornerstone of their business is conducting successful open houses. Because of this, I wanted to write a quick article about how to have a successful one.
Open houses
For most real estate agents, a cornerstone of their business is conducting successful open houses. Because of this, I wanted to write a quick article about how to have a successful one.
Open houses are a good way to get business because it's a marketing tool that is completely free. An open house is akin to a popup retail store without actually having to pay rent. Think about it - You’re able to set up shop and have potential buyers and sellers meet you, give you their information and walk through a property that you or your company are representing. It's a great way to get business without spending any money.
There are a few things that we can do to maximize our efforts conducting open houses and making sure that we have a positive return on our time.
Tip 1: Make sure you are choosing the right property to hold open
This means the property should be easy to find as well as be priced properly. When I say easy to find, I mean that a great listing at the top of a mountain might be a good listing to have, but it might not be such a great listing to do an open house on. If it takes two GPS systems and a satellite to find the open houses, it's probably not the one that's going to get a lot of traffic.
Having the property priced right is also important. The more fairly a property is priced, the more interest it will garner and the more traffic you're likely to have at your open house.
Tip 2: Check out other homes in the area
It's pretty likely that on a sunny weekend your house is going to have a ton of competition from other agents looking to attract buyers. For this reason, it's important to understand what the competition is. If a buyer comes into your open house and asks you about the house around the corner, an easy way to establish your credibility as a real estate agent is to be familiar with all the homes in the area. For example, it would be nice to say something like, "Yes. I've seen that property. It's a four bedroom, three bathroom for $800,000. Ours is also a four bedroom, three bathroom for $780,000 and has an upgraded kitchen." This is a great way to show a buyer that you know the market well and that your product offering is superior to any alternative.
Tip 3: Make sure you market the open house properly
This means lots of signs, lots of exposure on social media, inputting it in the MLS and advertising it on other websites. You may even want to consider dropping flyers on the doorsteps of some of the neighbors, inviting them to an open house. Consider sending mail to downstream markets that might have buyers for the house you're holding open. For example, if you're holding a house open for $800,000, it would be great to send a postcard a couple of weeks before your open house to a $600,000 neighborhood. The marketing piece will inquire whether those $600,000 owners might want to list their house and upgrade to your listing.
Remember that the more traffic you have, the more lead opportunities you are going to get to pick up other buyers and listings for the open house and even other homes.
Tip 4: Follow up strong on walk in leads
The last step to a productive open house comes after the open house is completed. You'll want to follow up strong on all the leads that walk through your open house that day. This does not mean calling them two days later or even the next day. As an agent, if I hold an open house from 1:00 PM to 4:00 PM, at 4:00 PM I'll go take down all my signs, come back in the home, make sure it's clean and presentable. Next, I'll leave a handwritten note to the seller of the house I just held open.
It might say something like, "Dear Mr. and Mrs. Seller, thank you for sneaking away for a few hours so I could conduct the open house. We had 22 people come through and I'm going to follow up with them aggressively. Thank you again for sneaking away for a few hours." Put yourself in the shoes of the seller - I would want to know how much traffic walked through my home and an update from the agent will help accomplish that.
Before I leave the open house and lock up, I’ll make phone calls to all 22 of those people, thanking them for coming and asking them for any feedback they might have on the property. The reason I don't want to wait until the next day is that I know that my competitors are making those same calls later. I want to be top of mind and I want to be the first person those buyers think of when considering buying or selling a home. Following up quickly and aggressively is something that will help achieve that desired outcome.
Remember that holding open house is still a great way to meet potential buyers and sellers while exposing your listing to potential clients. Open houses also please the seller of the home because it indicates marketing activity. The internet will never replace face-to-face contact and holding open house is a great way to capitalize on a time honored tradition.
Best of all, it's free.
Good luck with your open houses.
Love,
Kartik
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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
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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First-time home buyers need all the help they can get. That's not a derogatory statement; it's the absolute truth. Put yourself in their shoes for a moment. Making a decision to spend several hundred thousand
First-time home buyers need all the help they can get. That's not a derogatory statement; it's the absolute truth. Put yourself in their shoes for a moment. Making a decision to spend several hundred thousand dollars is not one that should be taken lightly. Because of this, some real estate professionals specialize in working with new buyers and have come to understand the unique challenges they face.
Whether first-time home buyers are your specialty or not, at some point in your career you're bound to deal with newer buyers. There are even continuing education real estate classes you can take to learn the intricacies of working with this unique group of buyers. If you find yourself with a client who has never purchased a home before, keep the following points in mind so you can do your very best for them from day-one until after closing:
House-hunting: You should help the buyer find the right location, type of home and price range of homes that fit their budget. This means taking into consideration what they want in terms of school district, nearby social amenities, prices, and much more. What comes naturally to you, as a real estate agent, is a brand-new universe to first-time buyers. Help them hunt for the ideal home.
Pre-approval: Explain the key difference between pre-qualification and pre-approval to your clients. The former is not nearly as important as the latter. Pre-approval will let them know what they can afford, and it will guide you as you begin to show them homes that fit their budget. It's equally important that you advise the buyers not to do anything that will change their financial situation between now and closing. They should understand that now is not a good time to buy a car or apply for other loans. Doing so can really jeopardize their chances of being approved as their debt-to-income ratio will be skewed.
Inspections: Help your new buyers choose a competent inspector. Remember, they haven't a clue about any of these issues. In a state like California this is extra important because there is no licensing or regulatory oversight of home inspectors in our state. Perhaps they know about having to get an inspection, but you can guide them to a professional with relevant experience on the kinds of homes they're looking at. It is also essential that you attend the home inspection. Your presence will give vital first-hand knowledge about any issues that come up. Plus, you can walk your buyers through the process of how to use inspection report data to negotiate their position if needed. This is one area where first-time home buyers often lose their way by hiring so-so inspectors and failing to use the report to tweak their offer.
Negotiation: Experienced real estate professionals know how to get the upper hand in a negotiation. First-time buyers often believe that the asking price is carved in stone. You need to show them how to make an offer based on what the house is really worth based on objective criteria. Many buyers report that when they purchased their first home, the real estate agent helped them get a significantly lower price than what the seller was originally asking. Use the tactics you learned in real estate school along with your real-world experience to get the best possible deal for your buyers.
Communication: You, the agent, are solely responsible for keeping the lines of communication open among the parties. All the parties look to you as the quarterback because you are essentially speaking for the very people who will ultimately come up with the funds to make the deal happen. Don't let anything slip through the cracks. Touch base with everyone on regularly. Being a reliable communicator is one of the things you sign up for when you get a real estate license.
Loose ends: Follow up on all the loose ends that crop up just before and after closing, and stay in touch with your buyers after they move in. As an agent, you know there are lots of little things that can slow things down on closing day. Do they have all the ID they'll need for the notarizations, for example? Remember, the buyers will think of you as a friend and mentor long after the deal is done. Maintaining this relationship can mean referrals and lasting relationships with people you enjoy spending time with. Think of it as long-term networking.
After you get a real estate license and work for a few years in the industry, you'll learn that some home buyers are much more experienced than others. People setting out to purchase their very first home need all the encouragement and support you can give them.
Agents learn a lot from their real estate course about different kinds of buyers, but it takes "on the ground" experience to fully comprehend the many ways you can put your knowledge to work for special first-time ones.
Call us at 888 768 5285 for more info on how to get a real estate license.
Love,
Kartik
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The truth is that becoming a real estate agent is a lot easier than becoming a successful one. Taking real estate classes online and passing the real estate exam is the easy part. After you get your
The truth is that becoming a real estate agent is a lot easier than becoming a successful one. Taking real estate classes online and passing the real estate exam is the easy part. After you get your real estate license, the next step is to get connected with a brokerage and jump into production as quickly as you can.
One way that newer Realtors accelerate their chances of making it in the business is by getting paired up with a mentor. There are many reasons why mentors work and can bend the learning curve for a newer agent. I wanted to share a few of these so you know that you aren’t going to be thrown to the wolves in most real estate offices. You’ll have help in the form of a mentor.
Mentors Increase Your Chances of Actually Staying in the Business
Ask any big broker and they will tell you that the biggest burden they face in their business isn’t actually getting sued by an angry client. It’s actually recruitment and retention. The burnout rate for newer agents is so high that most companies have a stated goal of hiring 5-10 new agents per month because so many new agents don’t end up making it. This in turn means that the broker has to put resources into recruitment leaving them less time to train their newer sales staff. It’s a vicious cycle.
A great mentor can give 1:1 advice to a mentee and help them work through concerns which helps retain great salespeople.
By keeping agent turnover low, the broker can build a strong network of experienced and qualified agents rather than dealing with the constant task of recruiting newer agents to replace the ones that leave.
Time Savings for The Broker
Imagine large real estate brokerages. I define a “large” real estate company as one with at least 100 agents. There is really no effective way that one man or woman can be there to answer questions, coach and train a staff that large and do it consistently.
For this reason, a well thought out mentorship program is an easy way to save the broker time and hassle. By leveraging mentors, newer agents with questions can look to their mentor for help as opposed to hunting down an already stretched-too-thin broker/owner. This frees the broker up to only answer those high-level questions that stump even the best of mentors.
Additionally, mentors also play a vital role in reducing the “on-the-job” training necessary for newer agents working on their first escrow. In effect, the mentor can act as a ‘project-based’ sounding board for help on a deal-by-deal basis. This will allow the broker to invest more time working on higher level training rather than putting out deal specific fires.
Mentors Offer Encouragement and Act as a Cheerleader
Great mentors should help us see those things that we would not otherwise recognize. For newer agents this means that their mentor is able to realize what you are capable of achieving and will put you on the track to realize your potential.
This is especially true in the real estate business where there are several ups and downs in the course of a day and that every deal is on life support at some point in the escrow process.
Helping a newer agent manage their emotions and keep their eye on the finish line is a critical aspect of the business.
A great mentor can give a boost to the confidence that a newer agent needs.
Mentors Have Experience That They Can Pass On
Every veteran real estate agent has had a buyer buy from someone else or a seller who didn’t give them the listing. Understanding how to navigate these emotional ups and downs is critical.
A mentor who is transparent about their experience has likely been where you are, and has made the same mistakes you might have made or are about to make.
A good mentor will share their own mistakes, so they aren’t repeated by a newer agent.
Before you get a real estate mentor, I’m guessing that you need to sign up for online real estate classes. Please call me at 888 768 5285 and I would be happy to discuss your career and help you get started in our great business of listing and selling real estate.
Love,
Kartik
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While historic homes don’t make up the bulk of sales for most Realtors, there are some agents who specialize in historic home sales. Still, this doesn't mean that you shouldn't venture into this great
While historic homes don’t make up the bulk of sales for most Realtors, there are some agents who specialize in historic home sales. Still, this doesn't mean that you shouldn't venture into this great market, or that you should defer to a local agent that has more experience with historic properties.
Historic homes can be an amazing acquisition for the right buyer. But there are some things specific to these types of properties that you should be aware of in order to best serve your clients.
Why Historic Homes Can Be an Amazing Purchase
Historic homes and properties within historic districts have amazing features that many buyers prize. For the home buyer who loves classic architecture or enjoys the history behind their residence, no new construction could ever compare. You may have a client who just falls in love with a historic property or you may have a client who is specifically looking for something with historic significance.
Each geographic location has their own historical homes that bring some flavor of past residents to life. The amazing thing with many historic homes is that they've gone through numerous generations and the history of each family is often present in the home itself. You can see this through additions made to the original architecture and a layering of the original design with more modern elements added over time.
The architectural and historic appeal is often the biggest benefit that your clients might be looking at in making their decision. But there are some other benefits that might be available that you should research and point out when applicable.
6 Things to Keep in Mind When Buying Historic Property
While many home buyers fall in love with the romance and history of historic properties, there are some things to consider which are unique to these types of property. Unlike new construction or homes built in recent years, historic homes have some quirks that can at times be costly to maintain. They've weathered many seasons and, depending on the local weather and type of construction, they may be in need of some extra TLC in regular maintenance.
Here are some things to make sure that your clients are aware of when purchasing a historic home:
1. Does the Property Include Elements Besides the Home?
Some historic properties are larger than a typical home lot and may include other structures which may also be historical in nature. They also often include great gems in landscaping, such as very large, beautiful trees, carefully planned gardens and hedges, greenhouses, gazebos, and even ponds.
2. Is There A Mass Appeal to this Home's History?
In cases where the property of someone with great local or national significance or where the architect was someone of note, the home might be used for touring or parts of the property might be useful to rent for events. If you're not interested in opening up your private residence in this manner, you might still find this a major perk just to own a home of this value and showcase it for your own purposes.
3. Possible Tax Incentives and Funding
In many areas, there are available funds and lower interest loans available for people who buy historical homes and wish to renovate them. These loans do come with some strings attached. The renovations often need to be done to certain specifications in order to maintain the home's integrity as a historic place.
4. Higher Than Average Renovation Costs
Each property is different. If your client is looking at a historic home that has already been completely renovated, they may not need to worry over renovation costs. However, in a case where there is major renovation work, it can often be more costly than renovating a newer home. This is because you'll often need to replace pieces that are no longer made or commonly used in newer construction. To maintain the historic significance, you may need to hire specialty contractors or preservationists to work on the home, which can be way higher in cost than a do it yourself project.
5. There May Be Restrictions
In many places, there are restrictions on the types of changes you can make to a historic property. This might include rigid restrictions on the outside aesthetic, such as paint color schemes and landscaping. It also might mean that you're prohibited from enhancing the property with new additions. It's important that buyers know these parameters in advance because they may need to live in a home where the architecture and design is less convenient for today's lifestyle than it was for the generation who built it. In most cases, those historic differences will add to the charm of the place.
6. More Likely to Have Hazards Than Newer Properties
Older properties were often built with materials that are no longer in use because they were found to be hazardous, such as asbestos. They also may be more prone to issues like mold because of the age of the home itself. It's important to have the home thoroughly inspected by a professional before purchasing. They can tell you if there are any issues in advance.
Historic homes provide a wonderful glimpse into past generations and can often be a dream residence for the right buyer. If you want more information about the historic properties in your area, contact the National Register of Historic Places.
As always, the first place to start your real estate journey is with a great online real estate course like ours. Call us today at 888 768 5285 if we can be of service.
Love,
Kartik
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