Is the Real Estate Bubble Going to Burst? » estate agent

Real Estate Commission – A Corrupting Influence

admin — Wed, 16 Dec 2009 17:11:20 +0000

Author: Peter Merickabr
Source: articleage.combr
br
Real estate commission is the way in which real estate agents are paid for the services they provide. They receive a percentage of the price received for the property. Effectively, the real estate agent requires the seller of a property (the vendor) to sign over to the real estate agent a part of the property being sold.
Another way of looking at it is to say that the real estate agent, through the wording of the listing contract, effectively has his name added to the title deed of the vendors property, so that the real estate agent becomes a part-owner of the property. When the property sells, the real estate agent receives a payment that represents his share in the vendors property.
Most readers will be aware of the arguments in favour of real estate sale commissions, so I wont discuss those here. My focus is on the ways in which the sale process can be skewed against all parties involved, when the motivation to win a commission takes precedence over more important considerations.
Commission is a winner-takes-all, loser gets nothing situation. This increases the pressure on the real estate agent to secure a sale. Time is also a problem. If the real estate agent cannot secure a sale within a time acceptable to the vendor, the vendor may take the property off the market, or away from the real estate agents agency. This will result in a total loss for the real estate agent.
Finally, the vendor becomes an obstacle between the real estate agent and his commission goal. In order to receive payment for his share of the vendors property, the real estate agent must receive an offer to purchase within the available time, but the offer must be accepted by the vendor. If the vendor decides that the offer is not acceptable, then the real estate agent loses.
In order to win the gambling game that is real estate sales, the real estate agent may decide to tip the odds in his favour - and there are numerous ways in which this can be done.
At the listing stage the real estate agent may use improper means to win the listing contract. These include over-quoting on valuation, and offering dodgy sales figures.
During the sale process the real estate agent may be tempted to tell potential purchasers things that are untrue. I have seen many sale contracts with clauses designed to protect real estate agents against the consequences of false statements. Known as porkies clauses, they invariably state that the purchaser acknowledges that any information provided to the purchaser by the real estate agent is provided on the understanding that the purchaser will not be relying on it for any purpose.
When a purchaser has submitted an offer, and the purchaser cannot be convinced to increase her offer, the real estate agent may be tempted to pressure the vendor into accepting what would otherwise be unacceptable. Observations, such as the market has softened or the market has spoken to us are used by real estate agents to convince vendors that the real estate agents high estimation of value can no longer be relied upon, and that the vendor should now accept what the vendor believes is an unacceptably low offer.
For some years now, I have been arguing that real estate services should be provided on a fee-for-service basis.
I will explore the replacement of real estate sale commissions with a fee-for-service structure further in future articles.
Melbourne Lawyer Peter Mericka B.A., LL.B is a real estate lawyer and consumer advocate. He is a former police detective, with experience in areas of criminal investigation and police internal investigations. Peter is the Director of Lawyers Real Estate, a law firm that sells real estate and offers conveyancing services. He also instructs in real estate conveyancing at the Leo Cussen Institute, Melbourne, and edits the http://www.AustralianRealEstateBlog.com.au.br
br
br
br

Boston Real Estate – Choosing the Right Boston Real Estate Agent

admin — Sat, 12 Dec 2009 16:58:52 +0000

Author: Jay Rooneybr
Source: articleage.combr
br
As a successful Boston real estate agent, it always puzzled me how and why some people choose particular Boston real estate agents to sell their homes. For most of us, a real estate purchase is the single largest investment we will ever make in our lives. Still, when it comes time to capitalize on this investment many home sellers are much too casual and have very low standards for the person they choose to handle the sale of their property.
I can cite many examples of poor decision making when it comes to home-sellers choosing a real estate agent, but there is one example from my experience that really boggled my mind.
I received a call from a woman about six months ago who asked me to do a Comparable Market Analysis (CMA) of her Boston Condo. (I gladly obliged and confirmed a time to meet with her and to tour her property.) The CMA process typically entails an initial tour of the subject property, comprehensive market research to produce a report, and an in-depth, in-person listing presentation. After meeting the client, viewing the property, doing the necessary research and presenting my report, I was certain that this woman would list her property with me. She disclosed to me that she had interviewed five other Boston realtors and that she was by far most impressed with my presentation and me. She cited my track record selling Boston real estate and Boston condos, my knowledge of the Boston real estate market, and my professionalism as the reasons she viewed me as the most qualified real estate agent to sell her home. She also disclosed to me that my service charge was identical to the five other agents she interviewed so price wasnt an objection I would have to overcome.
After giving her forty-eight hours to review her options (I of course sent her a thank you card for considering my services), I followed up with a phone call to see if she had any outstanding questions. To my surprise she told me that she had decided to list her property with a friend, who is also her hairdresser, and sells real estate part-time in a suburb of Boston. My initial shock came from the fact that she decided to list her property with an out-of-town broker, someone who had very little knowledge of the Boston real estate market. But what really blew me away was her decision to list her property with a friend, who not only had very little total real estate experience, but who works part-time in real estate and had never sold a property before! Her exact words were: She is a very nice person and I would like to help her jumpstart her real estate career.
At this point she had already made her decision and the last thing I was going to do was to disqualify her friend as a competent real estate agent, so I wished her the best of luck and told her that I would try my best to cooperate with her friend to sell the unit. She thanked me and recognized my professionalism. What I really wanted to ask her was this: If I told you that you had $150,000 to invest, (which is approximately what she stood to profit from the sale of her home), and your friend, who is also your hairdresser, called you and told you that she just started selling stocks part-time and she wanted you to invest your money with her, would you do it?
Fortunately, most of the people I have actually posed this question to have thought about it and answered no. Unfortunately, there are too many people who do not think about their real estate investment in these terms and are essentially answering yes! For some unknown reason many people are much too casual when it comes time to sell their real estate investment, when if fact, most people look to the equity they have in their homes to pay for important things like major home improvements and educational expenses while they own their home.
It turns out, the woman I used in the example above ended up calling me in a panic after her property sat on the market for six months, overpriced by almost 10%. She had to sell the property within 60 days of calling me as she had been carrying two mortgages for four months and was running out of money. I ended up selling the property three weeks later for a reduced price because the property had become stale in the eyes of buyers in the market and she had very little bargaining power when it came to negotiating price.
You must have high expectations when choosing your Boston real estate agent and must truly think of your real estate investment as the largest single investment you will ever make in your life. The following is a list of 25 questions that you must ask all of the realtors you interview before choosing one to sell your Boston home:
1. Are you a licensed sales person/broker in the state of Massachusetts?
2. Do you have a licensed broker in your office?
3. How long have you been selling real estate?
4. Do you strictly work as a sellers agent?
5. Do you have buyers agents working in your office?
6. Will you offer compensation to sub-agents, buyer agents, or facilitators, or all?
7. What is my liability if you offer compensation to and welcome sub-agents and he or she misrepresents my property?
8. Will you ever allow a buyer or another agent to enter my home without you being present?
9. Is selling real estate your full-time job?
10. How much real estate have you sold in my neighborhood in the past year?
11. Can you provide 5 references of people you have sold for in the last year?
12. How many listings do you currently have under contract?
13. What is the average days on market for all of your listings over the past year?
14. What is the average ratio of asking price to sales price for the last 10 properties you have listed?
15. What differentiates you and your company from your competition?
16. How will you arrive at an appropriate suggested asking price for my home?
17. How and where will you market my property?
18. What is your service fee?
19. What services are included in your fee?
20. What is the length of your listing contract?
21. Is your contract an exclusive listing contract?
22. Are your real estate forms in compliance with the laws in Massachusetts?
23. What professional real estate organizations do you and your company belong to?
24. What is the state of the Boston real estate market? Is this a good time to sell?
25. What properties would I be directly competing with if I put my property on the market today?
Rooney Real Estate is a full service residential real estate company servicing South Boston, the South Boston Seaport, and Dorchester for more than twenty years. In 2003 Rooney Real Estate was recognized by LINK, the Listings Information Network, as the top real estate firm in South Boston, MA, in total sales revenue. On May 10, 2005, MLS (Multiple Listing Service) listed Rooney Real Estate as the top firm in South Boston, MA, in total sales and total dollar volume thus far in 2005. Rooney Real Estate also has an unparalleled record of giving back to the youth sports leagues and non-profit organizations in the communities they service.
Call 1-866 ROON DOG, or visit www.rooney-re.com for more information.
Jay Rooney is a Vice President and a licensed Sales Agent at Rooney Real Estate, Inc., in Boston, Massachusetts. He is currently regarded is one of the top listing and selling real estate agents in Massachusetts and has won numerous awards for his real estate achievements. Email Jay at jay@rooney-re.com with questions about this article and for all of your Boston real estate needs. More information about Jay can be found at http://www.rooney-re.combr
br
br
br

Why You Need a Real Estate Agent: What your Agent should do for you

admin — Sat, 28 Nov 2009 17:02:09 +0000

Author: Alex Petersonbr
Source: articleage.combr
br
A real estate agent can either be a buyers agent or a sellers or listing agent, depending on their clients need. Although a single agent may list property for sale and also work with buyers, each role will be a little different. To understand why you need a real estate agent and what your agent should do for you, lets take a look at each agent type.

Buyers Real Estate Agent

When youre ready to buy a home, getting help from a real estate agent will expedite your search. Your buyers agent represents your interest during the entire real estate transaction and will work hard to make sure you get the best bang for your mortgage buck.

Your realtor is an absolute asset when it comes to researching available homes for sale. She should have geographic knowledge and neighborhood familiarity, along with school information and other insider info. He will also have a network of related professionals to assist you in completing your real estate transaction, including mortgage lenders, title companies and inspectors.

When you are ready to make an offer on a home, your realtor will generate the paperwork to present to the seller and will negotiate on your behalf until you are either satisfied with the terms of the sale or are ready to continue looking.

Once your offer is accepted, your real estate agent will help navigate each step in the closing process. If you werent pre-qualified for a home loan, she will also work with you to gather the necessary elements to obtain a mortgage.

In short, your buyers agent will walk you through each step of the buying process while handling more details that you could ever imagine.

Sellers Real Estate Agent

When youre ready to sell your home, finding a listing agent is the first step toward success. Your listing agent will evaluate the market and help you price your home accordingly. He will also make suggestions for improving the exterior and interior of your home to make it more appealing and saleable.

Your agent will list your home for sale on the Multiple Listing Service and get the word out about your home to other agents. She may hold an open house for other agents and host events to attract potential buyers. Like a buyers agent, your sellers agent should have neighborhood familiarity, school information and other insider info to share with prospects.

While marketing and selling your home, your realtor will accentuate the positive aspects of your property and downplay its shortcomings. He will ceaselessly show your home and stay in constant communication with you. And when an offer is made on your home, your realtor will provide experienced advice on whether to take the offer, submit a counter-offer or reject the offer completely.

When a legitimate offer is made on your home, your real estate agent will show her true value by negotiating every detail to your advantage. At this point, you should have enough faith in your agent to trust his recommendations regarding the close of your sale. And then, put the paperwork in your realtors hands.

Although some homeowners do put their house on the market for sale by owner, paying the associated fees to have a professional realtor handle your sale makes a lot of sense in todays competitive market.

The Bottom Line on Real Estate Agents

As you can see, the role of a buyers agent and a sellers agent are distinctly different, yet their paths intersect with each real estate transaction. Whether you are buying or selling, a professional real estate agent will be your ally from start to finish.
ZipRealty, Inc. ZipRealty provides www.ziprealty.comhome buyers and sellers with an innovative real estate solution. By using the efficiencies of the Internet, ZipRealty has streamlined the real estate process and is able to pass significant savings on to home buyers and sellers.br
br
br
br

Luxury Homes Can Sell – But You Need a Great Real Estate Agent

admin — Fri, 27 Nov 2009 17:01:23 +0000

Author: Julia Vakulenkobr
Source: ezinearticles.combr
br
People are looking for the next great deal and when that buyer is talking about spending millions instead of thousands, the stakes and the rules change dramatically. Despite the fact that much of the real estate market has faltered over the last few years, there are home buyers out there that have been shielded from the recession. These home buyers can walk into a real estate agency and ask for a listing of million dollar homes - will you have that listing?

The interesting thing about luxury real estate is the price point and the variable separation between the luxury real estate market and the traditional real estate market. Home buyers will money to spend do not want to know the true cost of ownership or the fact that the local water bill is slightly higher than the surrounding area. They want to supply their Realtors with a list of needs and have a home available when they are ready to buy.

On the flip side is the seller that is trying to sell off a million dollar home. Luxury homes is all about patience even when the seller is hard pressed to get rid of the home. Again, when people have money, they know they have the buying power to choose the piece of luxury real estate they want, rather than a piece they need. Sellers have to make sure their homes are the BEST of the best and in optimal condition in order to sell fast and sell first.

When trying to sell a luxury home, the open houses and word of mouth recruiting that may work for a less expensive home is not going to cut it. There are less buyers with the buying power to land a mortgage for a luxury home and that means extra work for the real estate agent. In addition to the open houses, the agent needs to publish the home all over the Internet, in local newspapers, on the front page of their website and in print magazines. These listings need to be refreshed often and must include a huge list of pictures showing off the BEST parts of the luxury home.

You can sell a luxury home even when the rest of the world isnt buying and while the work and labor will be hard, the commission is well worth the time.

br
br
pJulia Vakulenko is a licensed broker associate with Tampa4U.com Realty. She has one of the hardest working a target=_new href=http://www.tampa4u.com/ rel=nofollowTampa Real Estate/a team in Florida specializing in a target=_new href=http://condos.tampa4u.com/ rel=nofollowTampa Condos/a./pbr
br