Get Serious

Any business needs a certain degree of focus. The same goes for flipping homes. If you want to make money at it, it is time to get serious about it. You need to make an absolute decision that you are going to follow through no matter what life throws your way. This is probably the most important step because the only way to make money at this is to complete the process. Make a decision to be successful before you even begin.

Learn The Ropes

I can’t say enough about this step. There is no business that someone can be successful at if they don’t know what to expect. The real estate business comes with many variables, some work for you and some work against you. By having enough knowledge to know when to back out, you are half way to making a killing in this business.

Pick a location

Location, location, location if you don’t believe it, then maybe you should get out while you are ahead. You have to teach yourself how to find the best locations to invest in. There are several tactics that work well here. That doesn’t mean go out and buy property on the best side of town. It means there are instances when that is good and instances when another location would be better. You need to figure this out to make the best decisions.

Find A Realtor

This might seem like a given, but believe me it is not as easy as it sounds. You are looking for someone who wants to help you find exactly what you are looking for. You need them to seem as if they can read your mind or you will waste a lot of time searching with few results. You may even find it necessary to teach your method of making money flipping homes to get it right.

Make Connections

It never hurts to have a few people on your side. This is pretty much a given in any industry. With real estate you want to kind of develop your own little good ole boys club. It can do wonders for getting things done.

Keeping listing clients happy during a real estate downturn is no task for the faint-hearted. In fact, it’s hard work, and sometimes stressful work.

What can you do to hang on to them until things pick up again?

First, stay in touch. It’s not easy to pick up the phone and call your clients when there’s no good news, but when they keep hearing from you, they know you haven’t forgotten them, and you’re still trying to sell their house.

Start keeping a log of the things you do for each listing – everything from straightening their sign to adding new materials to their flyer box, to mailing a flyer to an out of town inquiry.

If, after a couple of weeks, you see that you haven’t done much, then find something to do for them!

Maybe you should take the time to do a new market analysis. After all, if your market is filled with repossessions and short sales, the price you told them 3 or 4 months ago may be wrong today.

It might not be good news – not news they want to hear – but your honest evaluation is something they need to see.

They may object to having their well-cared-for home compared to a repossessed home, so you need to choose your comps with care and assure them that you have indeed seen the homes you used. Point out the adjustments you’ve made for condition, if that was necessary. Also point out the similar features.

Take your time with the adjustments so you can explain them to your clients. That will assure them that the price you now see is the right one.

Once you’ve shown them your figures, have a serious talk about what they need to do. Maybe they’re fine with waiting until the market comes back up, but maybe they have a reason why they need to move soon and need to make a price adjustment. Let that be their informed decision.

If you do make a price adjustment, send out a “just reduced” message to everyone on your buyer list who might be a fit for that house.

If the price looks right, then work on improving your advertising copy and get some new photos for your virtual tour. Make it look like a different house than the one your potential buyers saw last week. If nothing else, it could cause someone to take a second look and perhaps decide they need to see it.

If your ad copy so far has been routine, talk with the sellers and learn something that you can use in your new copy. Ask them what they’ve enjoyed most about living there. Ask them what features in the house give them the most benefits. It could be relaxing on the back deck and watching the leaves change in the fall – or feeding a variety of birds in the back yard feeders. It could be the cheer and warmth of the fireplace on a cold winter’s night.

Whatever it is, paint some word pictures and add them to your copy to entice buyers. Make them want to enjoy those same comforts.

If you haven’t already done so, get out and make some contacts in the school district personnel office and visit any corporations that routinely relocate employees. Get permission to leave your flyers with them while you promise to take good care of their incoming employees.

Go to the local motels and ask if you can leave flyers for their guests. Ditto for restaurants and service stations. Any place where newcomers stop is a good place for your marketing materials.

Then, be sure to enter those activities on your log. At the end of the month, send a little report to each of your listing clients, letting them know what you’ve done on their behalf this month.

I guarantee that staying in touch and keeping them informed will give you a far better chance of hanging on to that listing than will ignoring them.

Take care to keep your listing clients happy and hold on to those listings, so you’ll be ready when the market turns around – you can do it if you communicate well.

It’s not only the case when you are applying for a job at some company, even if you are willing to start on your own; you need to educate yourself on continuous basis, whether through conventional means (college, online courses) or other sources (books, magazines or articles). Getting hold of most up to date information is crucial, irrespective of your area, be it construction, appraisals, land surveying or running a real estate agency.

Real Estate & Economics:

Knowledge of economics comes handy when determining future prices or other property trends. You must have sufficient comprehension of the law of demand (buyers, owners or users in case of property) and supply (sellers, developers and agents). You should also be familiar with the economic factors that will or can affect property prices, you are supposed to know the answers to basic questions like what’s going to happen when demand of homes surpass supply or vice versa?

Real Estate Finance:

Most real estate professionals start their careers from this line of work. If you are looking to join this field, you should equip yourself with the knowledge on how mortgage works, and know-how of other commercial or non-commercial lenders as well. You must be able to guide your customers (after listening to their requirements and limitations) to the most appropriate source.

Law & Regulations:

All real estate transactions and activities have a specific set of laws and regulations set down for them. These laws cover all the major areas like buying and selling, construction, tenancy, commercial properties, quitclaim deeds, financing and foreclosures. A real estate professional should be well versed with at least the basic ones.

Marketing & IT:

Property marketing is slightly different from traditional marketing. You cannot go around marketing all “for-sale homes or properties” one by one because of the costs attached. All you can do is to work on establishing your brand name as an authentic real estate agent. Like all other sectors, internet boom has also alleviated the field of property marketing. Ignoring the cutting edge technologies this medium provides can cause serious damage to your growth. That is why good proficiency in using internet as a marketing tool is very important for anyone who is looking to excel in real estate marketing.

It’s not only the case when you are applying for a job at some company, even if you are willing to start on your own; you need to educate yourself on continuous basis, whether through conventional means (college, online courses) or other sources (books, magazines or articles). Getting hold of most up to date information is crucial, irrespective of your area, be it construction, appraisals, land surveying or running a real estate agency.

Real Estate & Economics:

Knowledge of economics comes handy when determining future prices or other property trends. You must have sufficient comprehension of the law of demand (buyers, owners or users in case of property) and supply (sellers, developers and agents). You should also be familiar with the economic factors that will or can affect property prices, you are supposed to know the answers to basic questions like what’s going to happen when demand of homes surpass supply or vice versa?

Real Estate Finance:

Most real estate professionals start their careers from this line of work. If you are looking to join this field, you should equip yourself with the knowledge on how mortgage works, and know-how of other commercial or non-commercial lenders as well. You must be able to guide your customers (after listening to their requirements and limitations) to the most appropriate source.

Law & Regulations:

All real estate transactions and activities have a specific set of laws and regulations set down for them. These laws cover all the major areas like buying and selling, construction, tenancy, commercial properties, quitclaim deeds, financing and foreclosures. A real estate professional should be well versed with at least the basic ones.

Marketing & IT:

Property marketing is slightly different from traditional marketing. You cannot go around marketing all “for-sale homes or properties” one by one because of the costs attached. All you can do is to work on establishing your brand name as an authentic real estate agent. Like all other sectors, internet boom has also alleviated the field of property marketing. Ignoring the cutting edge technologies this medium provides can cause serious damage to your growth. That is why good proficiency in using internet as a marketing tool is very important for anyone who is looking to excel in real estate marketing.

When buying or selling Atlanta Luxury Homes it is critical to have your agent develop a Competitive Market Analysis. The recent fluctuations in the Atlanta Luxury Homes market make it impossible to understand what you should pay for a new luxury home or the price at which you can successfully list your luxury home without a detailed market analysis.

For instance, in the two Atlanta zip codes that command the highest median price – 30327 and 30305, the following price fluctuations have occurred. In 30327, the Median Price hit its high in July 2008 at 1.65million. Today the Median Price for 30327 is $1.25 million or a 24% drop. And in 30305, the Median Price hit its high in October of 2007 at $900k and today stands at $700k, at 22% drop. With price fluctuations this severe occurring in the past 24 months, a CMA is a prerequisite before entering any real estate transaction.

CMA stands for “Comparative Market Analysis.”

A CMA is an excel spreadsheet prepared by your real estate consultant that provides objective data comparing the features of your property to similar properties which are on the CMA list, are pending sale, just sold, or listings that failed to sell.

The CMA is developed in advance of listing your home for sale. This is a professional assessment of what your house is worth, but not a formal appraisal. The CMA will be employed during negotiations with buyers to demonstrate that your home is priced correctly.

To gather data for a professional CMA, your consultant (agent) will inspect your property (pricing inspection) and list the selling features that drive and support their final price recommendation. This inspection deals with readily viewable features of the home. The consultant is not going to crawl under the house, nor does the house need to be cleaned and ready for an open house. It should be in such a condition that allows the agent to make an accurate assessment of its condition and worth. If you plan to make improvements before selling, inform the consultant during the pricing inspection.

Following the pricing inspection, the consultant will collect data on properties with comparable selling features through FMLS, use their market knowledge and contacts in the field to back up the data and when the analysis is complete, review the resulting CMA spreadsheet with you.

With this information in hand you will be prepared to make a competitive offer on a home or list your home at a price that the market will bear.

Overpricing a home for sale is one of the worst things an agent and seller can do in any real estate market.

By over pricing a home for sale, many sellers believe they will have room to ‘negotiate’.  In actuality, there will be no negotiation room since buyers looking for a property will be looking within their specific price range which is usually guided by their real estate agent and mortgage lender.

Here’s an Example…

Let’s say a fully qualified buyers price range is $250,000 for a single family home (let’s exclude all wants and needs for the moment).  Their search criteria would most likely include homes in the range $230,000 to $260,000.

If the seller of a home whose comparables are priced between $230.000 and $260,000 prices their home at $300,000 (counting on this ‘negotiation’ room), buyers will not have the opportunity to view the home since it is well out of their specific price range for which they are searching!

Agents who take on these over priced listings are neither helping the seller nor themselves.  The listing will continue to sit on the market until one of several things occurs:

• The sellers adjust the price to market value – Optimum
• The property sits on the market until the market appreciates to the asking price – Could be a very long wait!
• Or the property is taken off the market – Most likely to happen if the price is not adjusted.

No matter how much advertising an agent does, if a home is over priced it is not going to sell.

I understand sellers wanting to get the most from their investment.  It’s understandable that you worked hard and want as much as you can get from the years and money you’ve been putting into your home.

Many home sellers have fallen victim to this trap for various reasons which include:

• Sellers are unaware of the current market conditions and comparable prices
• Sellers don’t believe real estate agents know what they are talking about
• Agents are willing to take listings just to have the listing no matter the price

The list goes on…

Believe me; I know it is not easy when you are told your house is appraised for $250,000 when you want $300,000.  It’s not easy for a real estate agent to tell a seller this either!

However, sellers do not set the price of home nor do real estate agents.  The market price of a home is set by what a buyer is willing to pay and a seller is willing to accept.  Let’s not forget that the price of the home will have to meet the appraisal value or the lender will not fund the loan.

So, how can you avoid this over pricing trap?

It’s easy…

First, consult with a real estate agent who will give you the facts about the price of your home as well as the comparables for other homes in your area.

Make sure the agent explains how: days on market, price and condition all effect the sale of your home.

Get an appraisal – When a home is sold a lender will not fund on the price of home that does not meet the appraised value!  While this is not a 100% guarantee of getting an asking price, at least it will give you some place to start.

Have them point out why the selected comparables are being used.

Try to detach yourself emotionally from the home you’ve built and think of it as property.  There are several reasons why someone wants to sell a home: Upgrading, downgrading and relocation to name a few.  In all of these situations, your current home will at some point be your past home and the emotional attachment will be removed.  Try to do begin to detach yourself as soon as you decide to sell.  This will help you deal with market price fluctuations as well as being able to see the property as an outsider.

How can you tell if your home is over priced?

If your home is on the market and you are not getting showings it is a clear sign that it is over priced.

In addition, if you are getting showings but no offers it is either over priced or needs improvement.

Did you know that any home priced effectively will sell in less then 30 days?  Most sellers are not aware of this as their homes are over priced to begin with.

Summary

Over pricing a home for sale may have significant financial repercussions to all parties involved:

• Sellers are disappointed when the home doesn’t sell
• Sellers will have to continue to pay the mortgage until the house does sell.  If you are relocating that could mean two mortgages!  Are you prepared to pay two mortgages?
• The listing Agent loses money on advertising
• Any showing agent loses time and money showing a home that won’t make appraisal
• Buyers lose time and money ‘negotiating’ on an over priced home when they could be making an offer on a home that is priced correctly.

To avoid the ‘Overpriced’ trap in the future, do your homework and use a professional real estate agent.  We are here to help you in every way we can.  We are on your side and want you to get the most out of the sale of your home.

When considering the sale of your home privately, it is important to understand the process. Many sellers are put off by the prospect of selling their home privately because they feel as though it might be too complicated and they lack the skills and resources to handle it effectively.

This is simply not the case; however. Selling your home without a broker does not have to be complicated. Understanding the requirements of the process will help you to achieve a favorable outcome; however, your ability to market and present your home to prospective buyers is truly the key to a successful sale. In order to realize that successful outcome, the following steps are typically observed:

1. A value must be obtained for the home in order to set a sales price that is reasonable.

2. The home must be placed on the market for sale and marketed and advertised.

3. A real estate purchase and sale agreement, real estate disclosure forms and lead hazard for must be prepared for presentation to the buyer. Depending on your local area, other documents and forms may be required as well.

4. After an offer has been made and accepted on the home, a deposit or down payment is typically paid to the seller by the buyer.

5. The buyer then begins the process of obtaining financing in order to fund the purchase price. In some circumstances, the buyer may be required to obtain a title search and/or survey. This may be required by the lender. The buyer and/or the lender may also require the purchase of a title insurance policy for the property.

6. A deed is prepared by the seller and it is then signed, witnessed and notarized in order for the property to be transferred to the buyer.

7. The closing takes place. During this meeting the buyer and/or the lender provides the remainder of the purchase price to the seller. The seller then pays off any liens and mortgages on the property and the deed is provided to the buyer. The buyer then files the deed with the appropriate recording office in the parish or county in which the property is located in order for the property to be transferred to the buyer’s name.

When planning the sale of your home it is generally a good idea to speak with an attorney who specializes in real estate transactions as soon as you decide to sell. Selling your home involves making sure you abide by a number of regulations and laws and you will want to make sure you do not unintentionally violate any of these laws.

Are you ready to make your first income property purchase and not sure how to find an agent or what to expect? If so, you’ll want to read my tips on choosing the right agent for you!

If you’ve been thinking about investing in real estate, now is a great time. Interest rates are at historic lows, and prices around the country have fallen to 2002 levels in many places. The questions is how do you find a Real Estate agent, and what should you expect?

First, a great place to find an agent is through referrals. Either from friends, colleagues or other professionals, someone who has worked with the person in the past and can vouch for their integrity and responsiveness. After all, this person will be representing you in one of the biggest investments of your life, so you’ll want to make sure they are trustworthy and put your interests first. Another great option is to visit local Open Houses in your area, and speak with the agents working them. This will give you a feel of how busy they are based on the number of homes they have listed for sale, and it will also give you a chance to speak with the agent in an informal setting to find out how knowledgeable and personable they are.

Once you’ve identified a potential candidate, you’ll want to interview them either in person or on the phone. Ask them how long they’ve been in the business, what type of product they specialize in – SFR’s or income property – what areas they work and for the names of 2-3 satisfied clients you can speak with. And remember, first impressions go along way. Make sure they are on time and have strong follow up. After all, if they can’t get it right with you, how well will they do representing you to another agent?

Once you’ve selected an agent, you’ll want to give him clear parameters of what you’re looking for. Is this your first investment? How much do you have to invest? How far from your home are you willing to consider? And of course, what is a comfortable price range for you?

And remember, Real Estate is like most other service businesses, where the old adage holds true….”20% of the agents do 80% of the business”. So spend time before get you started finding the right agent for you.

Are you ready to invest in income property but not sure what level of service to expect from your real estate agent?

Investing in income property can be a stressful experience, but remember, your real estate agent is there to help you every step of the way. As a Buyer, your agent will be compensated by the Seller at the close of escrow. What this means is that while she works for you, she’ll be paid by the Seller for her services. Fees typically average 2-2.5% of the purchase price, so on a $500,000 purchase, your agent will earn between $10,000-$12,500. Some of this money will go to her brokerage firm and to cover costs, but remember that your agent is being well paid for her job. So take advantage of her services to the fullest to ensure the smoothest and most enjoyable experience.

So, what should you expect from your agent? First, once your agent has your search parameters, she will set you up to receive daily updates from your local MLS or other services. This will allow you to see all the new listings that come on the market in your price and criteria range. Most clients like to drive properties on their own, and only bring their agent with them once they’ve identified a property they’re interested in. However, don’t be afraid to ask your agent to spend more time with you at first to help you figure out what works and doesn’t work for you. And, if you’re unsure of the exact geographic location you’d like to settle in, ask your agent to drive you around to show you more about the local neighborhoods, schools, and amenities. This is a great way for you to familiarize yourself with the area and available options.

Once you’ve found a property, your agent will be the one preparing the contracts and negotiating them on your behalf. Ask her to explain everything to you and make sure you understand what you’re signing. She’ll also walk you through the property inspection and all disclosures you’ll have to sign as well as help you with the loan process. If you don’t already have a mortgage broker, ask your agent for a couple of referrals she’s successfully worked with in the past.

Buying an income property can be a long process, taking 45-60 days or more, depending on how quickly your search goes. Once you’ve found the property, be prepared for an intensive 2-3 week process while you do your property inspection and work with your lender. If at any point during the process you feel uncomfortable, take a step back. Remember, making an investment can be challenging, but it should also be fun and as exciting as you’re on your way to securing your financial future.

Attractions: Tampa’s wide array of museums, theaters, and other attractions makes it THE city to live in. Tampa features Busch Gardens Tampa Bay AND Adventure Island, a water park located just down the road from Busch Gardens. Both parks are great places for families, couples, singles, or those of us who just want to relax for a day and have fun. Busch Gardens even offers discounted season passes for the price of ONE admission if you are a Florida resident. (How awesome is that?) Tampa is also home to the Museum of Science & Industry which houses Florida’s ONLY IMAX dome theatre and planetarium. In addition to these great places, Tampa has a large aquarium, art galleries, and great sports teams – making it an incredible city rich with entertainment, education, and culture.

Neighborhoods: Although it is a large city with a population of over 304,000 people, it’s neighborhoods and communities that lie within the city limits give Tampa a very small town feel. Some notable communities include: Downtown Tampa, Davis Islands, Ybor City, and Sulphur Springs.

Downtown Tampa: the central business district and chief financial district of the city. This area is home to the Tampa Bay Performing Arts Center and the University of Tampa.

Davis Islands: the Davis Islands district is made up of TWO islands in Hillsborough County, Florida which are in very close proximity to downtown Tampa making the islands a very popular place to live. The islands house NUMEROUS parks and fishing inlets making this a very popular place to reside for families and fishing enthusiasts. .

Ybor City: This historic neighborhood and district is home to numerous museums, festivals, and other outdoor activities. This neighborhood is actually famous for its cigar museum and cigar festival. Cigar enthusiasts from all over the world travel to this district every year for the Tampa Cigar Heritage Festival held in November.

Sulphur Springs: this small tight-knit community has a population of a little over 6,000 people and features many different community gatherings and parties. Sulphur Springs is actually famous for the Sulphur Springs water tower which was erected 1927.

The Real Estate Market: Okay, so now we know why Tampa is a great place to live, but what does it’s real estate market look like? Here are some recent statistics (SOURCE: Trulia.com):

The median sales price for homes in Tampa FL for Feb 09 to Apr 09 was $138,000. This represents a decline of 7.7%, or $11,500, compared to the prior quarter and a decrease of 28.2% compared to the prior year. Sales prices have depreciated 3.5% over the last 5 years in Tampa. The average listing price for Tampa homes for sale on Trulia was $334,255 for the week ending Apr 29, which represents a decline of 0.7%, or $2,456, compared to the prior week and a decline of 0.3%, or $1,113, compared to the week ending Apr 08. Average price per square foot for Tampa FL was $94, a decrease of 33.3% compared to the same period last year.

Although these numbers are down from previous years, they have been on the rise in recent months, in addition to being higher than the national average (as we know, home sales and prices are down all over the country). What these statistics DO mean, however, is that the Tampa market is the epitome of a buyer’s market. For example, the average mortgage rate for a 30-year fixed mortgage, right now, is a little under 5% – which is an INCREDIBLE rate saving YOU lots of money in the long run.