Real Estate

Tips for Home Buyers

Tips for Home BuyersOne of the most important steps in the process of buying a home is the final walk-through. This is where the buyer can confirm the house is in the same condition he/she has agreed to buy it in. It’s also an opportunity to ensure that the agreed upon repairs, if any, were made as specified and nothing has gone wrong with the house since he/she last looked at it.

Sometimes, home buyers do not pay enough attention to the final walk-through because they’re too excited about finally closing on a home particularly if it has taken a while to find the right home for them. This may lead to small problems once the buyer takes ownership. On the contrary, the final walk through can raise both negative and positive emotions during this last part of the home selling process.

It is smart to take the walk-through seriously and think things through. Do not see it as just checking a box. During the walk through you should open all the faucets and inspect them for leaks. Ensure that the appliances work, turn heat or/and air conditioning on and off, flush the toilet and open every window to its fullest, then close it tight and check for air leaks.

Below are some tips for home buyers to help them complete an effective and smooth walk-through.

1. Avoid a walk-through on the closing day / Tips for home buyers

A walk-through can lead to the discovery of repairs that have to be made, but that you did not know about before. If you do the walk through on the same day as the closing, you might not have enough time to have the problems resolved.

It isn’t uncommon for two walk-through’s to occur. The first walk-through identifies some problems for the buyer, and the second ensures those problems were addressed.

You can also push back the closing so that you can address the issues. However, the problem is that your lender might not have approved a delayed closing. It is better to thrash out any issues well in advance.

2. Use your cell phone to check the outlets / Tips for home buyers

Plug a phone in and out of the electrical outlets so that you can ensure that the electricity works. You want to avoid moving in your belongings, only to realize that some of the outlets do not work.

Bring your charger and phone to the walk through and test all the electrical outlets. It’s easy and quick.

3. Have an eye for junk left behind by sellers / Tips for home buyers

Sometimes, sellers may be too caught up in moving to their new home that they may forget to remove their old household junk. You should take the time to check the attic, under the deck and garage. The sellers might just assume that you want to use their old paint cans or an old propane tank..

In fact, the seller should leave the house empty for showings. Some of the left behind items, like the paint, can be toxic or may require special provisions for their disposal.

4. Ask for keys, alarm codes, garage openers and manuals / Tips for home buyers

Before completing the final walk-through, be sure to ask for working keys to all the doors, garage openers, alarm codes, and any system or appliance manuals. It is also a good idea to ask the seller for copies of receipts for any promised repairs.

5. Be emotionally prepared for a surprise / Tips for home buyers

Buyers normally fall in love with a house that is full of belongings, furniture and art. They see it as a welcoming home, and remember a warm feeling.

Fast forward to the close of escrow and you are faced with an empty house, which can feel rather hollow and cold.

Buyers are usually surprised by how they feel when they enter an empty home. Besides the emptiness that is created by the absence of furniture, some imperfections may show up – carpet stains, mildly bleached doors, holes on walls which previously covered by paintings or a television screen etc. An empty house tends to show poorly; hence you should prepare yourself mentally before the walk-through.

Becoming a first-time home buyer is a tremendous step in life. The sense of personal accomplishment, pride, satisfaction, and joy is irreplaceable. It is not without it’s challenges, though. Because of the huge number of options available to you as a potential buyer, you need to take the time to become familiar with an overview of the buying process, the terminology used, and how to best approach buying your first home.

My strong suggestion to you as a first-time home buyer would be to seek competent, professional financial guidance. It is relatively inexpensive, and could save you from making a costly mistake. Buying a home is not right for everyone. Even if it is a good choice for your financial future, you may need to take the time to save money for a down payment, or to fix any issues with your credit. Be patient, and make your preparations carefully…

Below is a list outlining the buying process. Review it to become familiar with the steps involved. Oh, and one last, very important bit of information before you get started…Everything, and I do mean everything, in real estate is negotiable. Repeat that over and over to yourself and never forget, everything is negotiable…

Pre-Qualification

After making the commitment to buy a home and getting your finances in order, it is time to speak with a professional in the mortgage business. Ask your friends and family for referrals. Take the time to ask questions and get familiar with the basic terminology used, plus to discover any pitfalls. The terms of your mortgage will have a lasting affect on your financial well-being, so make sure you fully understand what you are being offered. Ultimately, you want to become pre-qualified for a reasonable, affordable amount of money with which you can purchase a home.

I personally recommend speaking to at least three mortgage brokers or banks to get your best deal. Also, I would avoid having your credit run during this process until you are ready for the next step. Most good mortgage brokers should be able to estimate your buying power from a short interview.

Pre-Approval

Prior to beginning an in-depth search for a home, I would suggest going beyond pre-qualification and getting fully pre-approved. In this step, the mortgage lender will take a detailed look at your credit, finances, income, and other factors to solidify the amount of money available to you for a home. The primary difference between pre-qualification and pre-approval is you are shopping for a mortgage lender and getting educated about the loan products available during pre-qualification, but you have decided to commit to a lender and submit to the complete application process during pre-approval.

List of Needs & Wants

Make 2 lists. The first should include items you must have (i.e., the number of bedrooms you need for the size of your family, a one-story house if accessibility is a factor, etc.). The second list is your wishes, things you would like to have (pool, den, etc.) but that are not absolutely necessary. Realistically for first-time buyers, you probably will not get everything on your wish list, but it will keep you on track for what you are looking for.

Representation by a Professional

It is very important that you can communicate clearly, honestly, and openly with any person who will directly affect your decision-making process. I know it is better to work with a real estate professional because of personal experience, plus feedback I constantly receive from clients and customers, so I highly recommend carefully choosing a representative to help you complete this important transaction.

A quick word about buyer representation. In a great majority of situations (95%+), a buyer’s agent is compensated out of the seller’s equity. In plain English, this means unless your agent requires a small administration fee for services, you will not be responsible for compensating your agent at all for their services. It is very important you fully discuss this, as there are simple contracts available that will put this information in writing and help protect your interests should a dispute arise.

Also, just to anticipate and answer a question you may have on this topic, these costs are not passed back to the buyer through the sales price of the home. The reason for this is because the market, combined with a ready, willing, and able buyer sets the price for the home. The seller decides on an asking price, and may have a bottom line price, but you as the buyer ultimately decide what the home is worth. So study the market thoroughly, and make a fair offer based upon the comparable homes in the market. If the seller decides to accept your offer, you will have purchased the home at a fair price, and not one inflated to pay for the seller’s costs.

Meeting with your Real Estate Agent

Come to the first meeting with your agent with an open mind and lots of questions. You should be doing a majority of the talking and your agent listening to gather all of the information necessary to help you find your ideal home. Make sure you share your list of wants and needs, plus the information you learned from the mortgage broker. Your agent should be taking notes and reiterating accurately whatever is discussed.

I want to talk briefly about the importance of effective communication with your real estate agent. Buying a home should ultimately be a fun, rewarding, educational, exciting experience. It will not be free from challenge, though. You will at times find yourself frustrated, discouraged, and confused. This is completely normal, especially considering the magnitude of the transaction. Without knowledge of your feelings and concerns, the usefulness of your agent can be nullified. Make sure you are comfortable enough to tell them ‘no’, or to be completely honest with your needs and wants. Make sure your communication is effective by listening to what your agent says and ensuring it is what you are expressing.

Focus & Organization

In a convenient location, keep handy the items that will assist you in maximizing your home search efforts. Such items may include:

1. One or more detailed maps with your areas of interest highlighted.

2. A file of the properties that your agent has shown to you, along with ads you have cut out from the newspaper.

3. Paper and pen, for taking notes as you search.

4. A camera to help refresh your memory on individual properties, especially if you are attending a series of showings.

5. Location: It can be beneficial to look at a potential property as if you are the seller. Would a prospective buyer find it attractive based on school district, crime rate, proximity to positive (shopping, parks, freeway access) and negative (abandoned properties, garbage dump, source of noise) features of the area?

Visualize the House Empty & With Your Decor

Are the rooms laid out to fit your needs? Is there enough light? Will the home require any updating? Are the mechanicals in good shape? What about the roof? Try to keep accurate notes on both your feelings regarding the home, plus objective features that may or may not be positive. Keep in mind that it is always an option to ask the seller to gives allowances for updates or changes as part of the negotiation process, or to make the changes yourself for the right home.

Be Objective

Instead of thinking with your heart when you find a home, think with your head. Does this home really meet your needs? There are many houses on the market, so don’t make a hurried decision that you may regret later.

It is important to know your personal strengths and weakness in the home buying process. Some people love the thrill of the hunt and seeing lots of homes looking for a positive feeling, while others are just interested in the facts and objective features the home offers. Some people are a combination of the two. Whatever your style or technique happens to be when searching for your new home, you must be honest with yourself and emphasize your strengths while seeking help with your weaknesses.

I recommend in the initial phases of the home buying process that you try to keep your time in any home you view short and focused on finding positive first impressions. There really is a difference between finding a house and discovering your new home and I believe emotion and feeling play a much greater role than some would realize. Be relaxed and aware of your emotions in this initial phase.

Once you have narrowed your choices and become comfortable with the buying process, it is time to schedule second showings and to put on your objective hat. Now you are looking at the details from an investment standpoint, a functionality perspective, and determining whether or not there are any faults that would negate the viability of the home. You may be surprised at what you find!

Make an Offer

Once all of the research is complete and you are certain you have found your new home, it is time to put together an offer. Again, the competent guidance is critical at this point. Together, you must determine a fair amount of money to offer for the home, plus you must complete an accurate, comprehensive, legally-binding Sales and Purchase Agreement. Any mistake, error, or omission at this stage can become very costly in both dollars and emotions later. If you are at all uncertain or uncomfortable, seek professional legal advice before you sign any agreement.

A word about market perceptions. Today, we hear constant talk about it being a “buyer’s market”. What does that mean to you on the buyer’s side of the transaction? I wish it meant that you could offer 15-20% below the asking price of the home and the seller would gladly accept, but that is rarely the case. Very simply, we find ourselves in a buyer’s market due to an over-supply of homes and a lack of qualified, motivated buyers. It will affect prices in most areas, but the adjustment will be more in the neighborhood of 1-3%, if anything.

That being the case, what are the advantages of being in a buyer’s market? Let me just name a few and you should be able to see many others. Besides the possibility of a reasonable savings on price, sellers are more willing to provide allowances for closing costs, updates, or other incentives to get you to purchase their home. In addition, you have a tremendous variety of homes from which to choose. Plus, fierce competition for the best homes is reduced, thus allowing you a greater chance of not paying an inflated price for the home of your dreams. When you hear talk that we are in a buyer’s market, just imagine yourself in the seller’s shoes…Most people are not going to give away their home for less than a fair market price, so look to negotiate other benefits from the deal.

Be Thorough

A few extra dollars well spent now may save you big expenses in the long run. Your real estate agent should competently guide you through this phase, but you should be aware that after you have an accepted offer, you still need to perform due diligence to ensure you are making a sound investment. Don’t forget such essentials as:

1. Having the property inspected by a professional inspector.

2. Requesting a second walk-through to take place within 24 hours of closing to ensure the home has been left in the agreed upon condition.

The journey towards owning a home is usually a long one, filled with ups and downs and lots of excitement. The final walk through is one of the last steps of what may end up being a multiple year process.

Consider the walk through well in advance and prepare for it physically, mentally and emotionally. Know what you are looking for, make a list of all the things that you need to check, and keep your feelings and emotions in mind.

Facebooktwittergoogle_pluspinterestmail
Real Estate

Real Estate Customer Relationships Perspective

It’s recognized that a company’s success is based not only on financial measures which, although important, are not indicative of customer, employee, or quality problems or opportunities. Besides costs and revenue, businesses looking for long-term profitability have to take into consideration customer relationships, employee skills and collaboration items.

Leading companies tend to focus on a balanced approach to performance measurement to assess processes and identify which of them needs improving before it turns into a serious problem. Customer relations is one of the perspectives to choose measures of key importance.

Whether a company is in the business of building, selling, servicing, or managing property, residential or commercial property managers support customer-driven business strategies that increase insight into operational performance and improve responsiveness to the unique needs of buyers, tenants, users and occupiers of real estate. Balancing customers’ needs with the portfolio makes property companies pro-active real estate organizations.

The scorecard framework of a strategic measurement and management system known as the Balanced Scorecard can be modified to this mission as well. It can help to determine which factors, in addition to financial, are critical to the long-term success of a property company. The system enables organizations to transform data into actionable information and manage performance for all strategic objectives including customer relationships.

Customer-centric objectives are aimed at bettering manage relationships throughout the customer lifecycle ? from browsing a business web site, to an interested lead, to a qualified prospect, to a customer who has placed an order, to servicing that customer and to guiding him to re-purchase.

In choosing measures for customer relationships perspective companies dealing with residential property try to develop strategies that meet customers’ real estate requirements. They enhance the customers’ knowledge needed for effective decision making providing them with information on the company’s policies, procedures and regulations. Considering customers the driving force of business, property companies try to obtain customers’ feedback to learn about their changing needs and improve the real estate services.

Services which are performed when it comes to renting, buying or selling properties for clients, include ensuring terms and conditions of purchase agreements, acting as an intermediary in negotiations between buyers and sellers, coordinating appointments to show homes to prospective buyers, generating lists of properties that are compatible with buyers’ needs and financial resources, participation in listing services and others. Improving the factors that lead to satisfied and active customers conditions successful business activities and procedures and higher level of performance accordingly.

Special programs implemented by many real estate industry leaders as supplemental measure in evaluating operating performance, facilitate strategic relationships with the customers from the initial point of contact through to the closing of the transaction. Thus, Customer Relationship Management (CRM) empowers companies to manage customer relationship management process with dashboard view, lead management, marketing campaigns, advanced forecasting, contact management, opportunity management, etc.

Constant reevaluation of performance measures should be balanced with the need to improve usefulness of the metrics with regard to Customer Relationships Perspective. That can result in higher productivity of business and maximization of revenue.

Facebooktwittergoogle_pluspinterestmail
Real Estate

Real Estate Management Solutions For Insightful Business

With the continuing advancement in technology and in particular cloud based systems, property developers and real estate agents now find it easy to maintain their tasks and engage with their clients. With increased competition in the industry, it has become vital to remain ahead of the competition and engage with your clients. Today, real estate software has eased the burden of controlling a business’s internal operations and engagement of customers is now more focused and streamlined. In fact, it is now possible for agents and developers to grow and cultivate strong customer relationships using CRM’s and lead nurturing programs.

No doubt, the newest facet connecting collaborative software technology has revolutionised the way real estate business is done. The use of software programs and software applications by property buyers and sellers has greatly enhanced over the years. This has truly sparked a race for more insightful and meaningful software solutions for better business management. Indeed, software technology has emerged as an intuitive and potent tool for real estate service providers to offer their services in an efficient fashion. In fact, through value-added customised software applications that automate sales and communication processes, agents and developers are able to share vital property information through their website to service major customer databases.

Property developers and agents are utilising strong problem-solving online property software as a perfect marketing and promotional tool. They are generating their brand awareness through such game-changing software products and programs like lead nurturing. Now, they can easily serve the rising demands of their customers, make data more available to them, record and respond to their online queries, create leads and increase sales conversions. On the other hand, they can ideally organise their office operations and can make business-critical decisions easily. Moreover, industry specialists are also capitalising on the core capacities of the software applications whether they are lead nurturing software solutions, event management software applications or property management software solutions.

However, businesses are using collaborative and empowering software solutions as per their business needs. Suppose a business needed to develop healthy relationship with the current customers, it would use a specialised CRM for their real estate software solution. The specialised tools also have tons of amazing and innovative features for greater levels of precision and business control. Modern and customised software applications are far more intuitive and data savvy. Collectively, these applications can address the most critical business issues easily, ranging from forecasting, reporting, lead generation to business planning, maintaining business focus and increasing sales.

So, if you in the real estate business and passionately looking to have a competitive edge while managing your resources efficiently, implement intelligent and responsible real estate management software solutions for seamless transactions and efficiency.

Facebooktwittergoogle_pluspinterestmail
Real Estate

How to Get Into Investment Real Estate

Over the past few months, I’ve been looking at getting into the real estate development business. I live in Colorado, but because the market here has only been so-so, I’ve also kept my eyes and ears open for opportunities elsewhere. My colleague who’s in real estate development recently recommended looking at the Oklahoma City real estate market, but I have few connections in Oklahoma and don’t have enough time to be traveling back and forth looking at potential opportunities.

That’s when she enlightened me to the many online real estate services that can help with all the things that a real estate agent can, the only difference being the cost savings from transacting everything from home. I took her advice and searched for a few of these services online, and in a mere matter of hours, I had become a relative expert on Oklahoma City real estate. The tools available online are surprisingly easy to use, even for a Luddite like myself, and I can’t imagine how much I’m saving by not needing to physically travel to another state.

So, if you’re like me and you want the insiders scoop on real estate markets, without the pain and headache of going there yourself, I would highly recommend spending a few minutes and seeing what your options are online. The services are robust, and you’re able to procure traditional agent services if you’re inclined to do so. Basically, it’s a win-win situation… and myself? I’m now the proud owner of two properties in the Oklahoma City real estate market, and I got everything for the price and the terms that I wanted. Give it a try for yourself; I’m sure you’ll be happy with the results.

Facebooktwittergoogle_pluspinterestmail
Real Estate

Prospecting For Real Estate Agents

Real estate agents should not stop seeking for consumers or prospective buyers who would deal business with them. If you have been an agent for quite some time, you should understand that prospecting could be an interesting, hard, but rewarding activity. In general, prospecting is a term used to denote a real estate agent’s measures to attract and persuade prospective clients.

To do prospecting, you basically need to get as many clients and convince them to finally buy a property from you. In doing so, you have to establish important and opportunistic ties with consumers or people who would be most likely to hire you for real estate services or buy any of your properties for sale. In general, you should understand that just about one in every 300 people you get ties with and talk to would actually lead to a final real estate transaction. That is why you should strive to keep on meeting more.

Prospecting should be an important part of your everyday routine as long as you stay in the profession. It could be hard for beginners, but could also be much of a breeze if you have successfully been into the business for quite some time. You should realize that as you strive to establish more contacts, you would find yourself eventually doing less effort because clients would start coming to you. To further help you, here are some of the most effective and tested prospecting strategies to adapt.

Find ‘For Sale By Owners’ properties and try convincing the sellers to do business with you. You should always consider the fact that more than 85% of such home sellers end up giving up their efforts to sell on their own and instead hire real estate agents. You should be there when they decide to do so.

Call expired property listings. Most clients in these lists have been frustrated and disappointed with their agents. You should strive harder to convince them you are smarter and much more capable than their former real estate agents.

Go door-to-door. This could be considered a desperate attempt to do real estate business but through time, many agents could attest it works. You could also regularly call previous clients as they may again need your services and buy any property from you. It would not harm to maintain a good friendly relationship with clients even if your deals and transactions have already been completed. In the future, they simply need to make dealings again and you should still be their agent.

Send out small gifts and holiday cards bearing your name as well as your contact information. This is a tried and tested marketing strategy and still works even up to this day. Make sure your gift or card is truly presentable.

Maintain a social network and constantly ask how they are doing. You might directly ask them every once in a while if they are in need of a property or a real estate agent service. You could also organize parties for this purpose. Your own neighborhood could also be a good place to seek prospective clients.

Put up a regular (monthly or quarterly) newsletter and distribute it for free. Do not forget to emphasize your name, your contact number, and your real estate services. You could make this a good bulletin where people could post news about weddings, banquets, honors, and other pertinent information like selling prices of properties. In other words, make such newsletters as interesting and helpful as possible.

Facebooktwittergoogle_pluspinterestmail
Real Estate

Selecting The Right Real Estate Brokerage Firm

Whether purchasing your first home or selling your property for money, it is strongly advised to seek the help of real estate experts from a real estate brokerage firm. They may add cost to your budget, but having professional advice at your service will eventually help you save time, effort and money.

To find the right real estate brokerage firm, one should first have a list of companies to get to know their backgrounds and records on buying or selling properties, depending on what you need. Ask friends or relatives who have recently been in a real estate transaction for referrals and start your brokerage firm shopping from there.

When choosing a real estate brokerage firm, it is best to get those who have a positive reputation locally where your property is than a nationally known firm. This is because the former knows your market well and is more likely to give you the best possible deal for buying or selling your property.

If possible, choose a firm who has specializes in only selling or buying, not in both. A brokerage firm who deals with both buyers and sellers is sure to have conflict of interest that may become a problem in terms of getting the best possible benefits for you property. However, if that is the case, you can always get a different agent than the buyer or seller, even if they are from the same firm.

In this age of online technology, it is also an advantage to choose a firm knowledgeable in online marketing. Most buyers and sellers look online for possible property transaction and a brokerage firm with a strong online presence will be make transactions faster.

A firm with connections to other real estate services such as attorneys and lenders is also beneficial for both buyers and sellers. This will allow you to find other possible services much faster than having a separate search for each.

Once you have chosen your firm, look for an agent who has recently worked with your price range and has a good track record in closing a transaction. Get to know him or her personally and find out if he is trustworthy and reliable.

In the real estate market, working with a brokerage firm is not mandatory; you can still work on your own if you want to. But working with a professional will help you maximize your properties profit with a fast closing transaction.

Facebooktwittergoogle_pluspinterestmail