The buyers and sellers procedure can be an arduous deal and hence an organized method is the need of the hour. DC Fawcett says that The real estate agent is a crucial individual in the deal and the way he carries out himself would be the key to a smooth and successful transaction.
Now let’ see some of the important aspects the buyers and sellers see in an agent:
- The clients want their agents to be pro-active in the sense that they provide quick replies. Whenever they call the agent he should reply immediately without creating stress to the agents. If the mode of communication is through text also the agent should tell about it beforehand itself.
- Experience is the key to a successful real estate agent. He should also be highly educated and this is gained through constant watching of the current real estate trends. The buyers want the agents to get them the appropriate home. The sellers want the agent to be industry savvy too. They want the agent to come up with a great price.
- The buyers want their agent to be involved in the transaction in a well-equipped manner. More then just handling the process they want the agents to guide them throughout the process.
- Mostly the buyers and sellers won’t look for agents who deal with only few transactions. The sellers want a proven track record from their agents and they want to sell the properties in a short span. As far as the buyers are concerned they expect their agents to show a success record of scouting homes in their desired area.
- An appropriately and well-dressed agent will also make some difference in the real estate transaction. Here professionalism is the key. Also the agent should be timely in his appointments. This will also go a long way in establishing his reputation with the clients.
- Realty agents speak on behalf of their clients and should be cognizant of what to negotiate. The agent should give results to both the buyer and seller.
- The buyers and sellers don’t only look for the agents to use traditional methods to communicate. They want their agents to be well-studied about the innovative technologies.
- The most important quality that the buyer and seller expect from their agents is honesty. This is part of the Code of Ethics set for a real estate agent. A buyer expects the agent not to hide any issues in the property and sellers want their agents to disclose information as to what may drive away the potential buyers.
What is a REIT?
A REIT (Real Estate Investment Trust) is an organization or a company which either owns or finances income-generating real estate. Investors get all types of regular income streams, diversification, and long-term capital appreciation from the REIT. These companies pay the taxable income to the shareholders by way of dividend, for which the shareholders have to pay the tax on dividend income. Dc Fawcett VREIC suggests the investors to choose the right REIT.
Risky Situation In Real Estate Profession:
Real estate is not a hazardous profession. However, there are some dangers involved in real estate. In this article, Dc Fawcett a real estate entrepreneur some dangers lurking in the real estate profession.
Beware of first time clients
Strangers are always to be feared and this is the same with new clients too. First time clients are new faces. You don’t know who they are. They may be stalkers, thieves, alcoholics, drug addicts, looters and big time criminals. So beware of them.
Open houses are dangerous
Open houses are dangerous. When an agent holds open houses, he advertises on where and when he is going to hold it. There have been several incidents occurring during such home showings.
Some have been reported in news channels. Once when an agent was holding an open house, a laptop was stolen. He was working alone and a pair came and turned his focus away. Yet another incident was: 2 agents were holding an open house when a couple walked in.
The man reeked of alcohol and both of them were blabbering. The agents sensed that something was wrong with them and immediately took some steps to prevent harm. One held a pepper spray and stood at the front door while the other walked the people into the house.
The former agent called her husband and when he came, those two intruders ran away. There was also an incident where a real estate agent was holding a home showing alone.
Then suddenly the agent saw some untidy clothes in the basement. The agent called the owner and he said that there was nobody living there. Then suddenly after sometime the owners came with the police and found a man there.
It turned out that he was living in the basement for some months without the knowledge of anybody. Such incidents show that home showings should be done alertly. Agents must call neighbors, family members and relatives to be present at the open houses lest anything happens.
If they cannot stay till the end, they must be there at least at the beginning and the end. They can alert the security guards of the home. If nobody can come from your family or friends, at least inform them about the open house. Also do an open house with a companion – a fellow agent. Inform brokers, fellow agents and others from the office.
Foreclosed or empty homes
Such homes may have previous owners refusing to vacate. They may be badly illuminated and have deadly animals coming inside. Such houses may be occupied illegally by people who specialize in doing so.
When you show homes of strangers
You may sometimes have to show the homes of people whom you don’t know. This is dangerous since you don’t know the homeowners. Even if you have just met them a couple of times and don’t know them really well, it is still a problem
Commission For Real Estate Transactions:
Commission is paid for real estate transactions. Many people don’t understand how commissions are paid. They are bothered only about the cost of the commission. In this article, Dc Fawcett a real estate investor and educator, reviews how real estate commission works and makes you comprehend commissions.
What is a real estate commission?
A real estate commission is a fees paid to the real estate agent.
How much is it and who pays it?
A real estate agent’s commission is something which has to be paid by the broker. An agent works for the broker and the fees is paid by him. The broker makes a purchase agreement with the seller who then pays the broker along with the agent’s commission.
A real estate agent’s fee is a percentage of the selling price and can be decided only when a selling transaction takes place. Now, who pays the broker’s fee? Is it the buyer or is it the seller? Well it is the seller who pays the broker’s fee.
Compensation for the real estate agent
A real estate agent is compensated anywhere between 30% to 40% of the fees that the broker receives. Top class agents receive 100%.
How is the money divided between the seller’s and the buyer’s agents?
Money for the seller’s and the buyer’s agents are decided according to a fixed agreement. Usually the percentage is equally divided. But in some cases one can get more than the other. In that case, the lawyer will do the needful. As stated before in this article, the broker pays the agent. The rest of the real estate fees are divided for marketing, office space and rentals.
Does the agent deliver as much as the fees?
When the home gets listed and then gets marketed very quickly, then the seller’s agent does not have much work. He gets commission for listing, fixing up the price and so on. This is just the basic work and he has not put in so much of efforts. The home has sold rapidly, luckily for him. But, he gets the commission as signed in the contract. On the other hand, say, a home does not get sold for a long time, even a year. Then the agent has to conduct many open houses, speak with so many buyers, keep abreast of market developments and effectively update marketing strategies. Also he has to bear the cost for advertising, signage and so on. In this case also, the agent receives the fixed commission only. So, this argument has a neutral side and you cannot decide on this.
Listing price commission
The listing price is the selling price. When the listing agreement is signed between the broker and the seller, the broker gets complete authority to market the home. When he does this, the agent of the broker brings a buyer for the seller. If the home sells, the broker gets a percentage of the list price as the commission. This is shared with the agent.
The Pros of a Real Estate Career
Reasons Why Your Home Drives Away Potential Buyers:
Your home might sit in the market for a long time. The heartening thing is that your property can sell when are ready to adapt yourself to certain things. DC Fawcett says that It is important to question yourself what makes the buyer give priority to your home compared to the various other properties that are put for sale.
Now let’s see the reasons why your home is not selling:
It can be that you are not using professional photos. Generally the home buyers will have understanding of the home through the online photos. When the photos are in poor condition viz.,not having enough lighting, then the buyers will not be inclined to purchase the home.
It may happen that the agent is not the right choice. You must confirm whether the agent possessed a marketing strategy that fetched outcomes for other sellers. The key is that the real estate agent should possess sufficient experience in getting the desire outcome. He should be well-equipped with the current market trends and will also guide you on the elements that will have impact on your property’s sale. The legitimate agent should also contact you on a regular basis and keep you informed about the development. The key is that your agent uses a marketing strategy in such a way that there is utmost exposure.
When you work on a competitive price your marketing strategy will have a great impact. How much is the buyer inclined to pay? This question is the key to understanding the worth of your home. You can have a glance at earlier similar homes that were currently sold in your vicinity. You will be deciding upon a listing price. The essence is that you should ensure to confirm the real value of your property before this step.
Another reason that drives away potential buyers is that your home doesn’t have a curb appeal. At the very instance the buyers go through your driveway they will come to a conclusion whether to go for your house. You can develop an inviting ambience by concentrating on essential aspects including planting some flowers, leveling the grasses etc. Though the interior is very important to your house the exterior is also equally important.
It might be that you are not promoting your home appropriately through advertisement tactics. You may not have the photographic acumen or the writing skills. Do the advertising in such a way that your images and writing, which will be present in the brochures etc. don’t drive the buyers away.
Staging is one essential aspect for your home. But you should do it in such a way that you don’t fail in showing some issues. You may miss the sale when a prospective buyer is ready to buy the home but eventually finds issues at the time of home inspection.
How to Safeguard Against Hazards In Real Estate:
The real estate profession is associated with certain risks. To get a deeper insight into this, read Dc Fawcett’s article on risky situations in the real estate profession. In this article, Dc Fawcett Real Estate writes a review on how to safeguard against hazards in real estate.
Tips for meeting first time clients
Sometimes first time clients may be thieves and criminals. So, you should always meet them at your office and ask them to bring their identity card. Verify the validity of the identity cards and photocopy them. Ask them to fill in forms. This is to ensure customer identification. Get their signatures on the forms. Then, introduce them to colleagues. All this should be done for safety purposes lest the customer turns out to be a fraud.
Safety tips for open houses
Open houses are dangerous since the agent has advertised about it. They may have unknown people, stalkers, thieves, criminals and other trouble makers coming inside the house. So, some safety tips for open houses include
- Don’t conduct an open house alone. Two at a time will mean less trouble making.
- Conceal cash and other valuable items also.
- When someone walks in ask for their names and also some identification proofs. People who cannot provide you with false names are less harmful.
- Trust your instincts. You will know when things are not going right.
- Inform your colleagues, relatives and friends about the open house. Even better ask them to be present during the open house. If they cannot stay through the entire thing, ask them to be present in the beginning and towards the end.
Safety tips for foreclosed homes
When you enter foreclosed homes, it is unsafe to enter alone. Enter with friends, relatives or co-workers. Don’t pick up fight with trespassers. When you see a trespasser, alert the law enforcement authorities or the police immediately. Don’t visit homes at night. It is safe to do it during the day time. Always inform your colleagues, relatives and friends where you are going, where you are, whom you are with and when you will come back.
The cons of a Real Estate Career
Provocative or shock marketing
Some realtors use this to target clients. With this, they can use advertisements which violate normal standards to attract their clients. But this is not really necessary in real estate and it is generally used while marketing for casinos, contraceptives, wine, undergarments, Aids and so on. But when realtors do this, they become a target themselves. So, safety tips for these include . Don’t use shock marketing You have to be extra cautious while using provocative marketing since criminals go through such agent’s profiles and hack their bank lockers, accounts and other personal information. They may also target valuables and other items such as furniture, properties in the realtor’s house and cash.
Tips to Help a Home Buyer Triumph in a multiple offer situation:
Most of the time, there will arise a situation wherein there will be multiple offers for a home. This is really great from the seller’s point of view but it is not good from the buyer’s perspective. Buyers feel insecure when the homes they are targeting gain a pool of offers. Then they have to employ various ways to stay on top of the competition. Dc Fawcett, a real estate investor, who shares his knowledge on real estate in his blog. Virtual real estate investing club gives guidelines or Tips to help home buyers to gain an edge in a multiple offer ball game.
Tips to help home buyers by Dc Fawcett Real Estate
Make sure that you have a secure source of finance
Sellers tend to select you as the new owner based on your finance source. If you don’t have a strong financial source. Sellers will not make the offer to you since they may incur a loss.
Make an advance home inspection
Sellers offer homes more readily, if the offer does not contain the “subject to an inspection” clause.
Gauge the competition
Work with your realtor to evaluate the competition. Find out how many people are involved in the race. Are you contesting against a single family or are multiple families involved?
Decide on the price firmly
Establish the price firmly. Tell yourself that you want to pay only this much for the home. You will not regret later on, if you end up losing your home by a few thousands even. You can make a bully offer. A bully offer is something when you make the offer to the seller before the laid down date. In this way, the seller will consider your offer above all others. But, bully offers are associated with risks. Sellers will quote higher if you are in a rush. Sometimes sellers will not be impressed by your hurried approach and so on.
Make a huge down payment
Paying huge sums of money in advance will portray your strength to the seller. He will make the offer with a lot of confidence. Making huge down payments will expedite things with you money lender as well. He will issue a mortgage with ease and without doubt.
Good faith deposit
Make a huge good faith deposit. This deposit is separate from the purchase amount. The larger the deposit, the higher the likelihood that the seller will make the offer to you. The deposit indicates your seriousness in buying the home.
Make sure to get everything in writing
Don’t make any oral agreements. Have everything written and signed in paper form.
A real estate transaction has lots of intricacies and it takes place with a huge chunk of money. These are the things that stress the buyers and sellers. The buyers and sellers expect the agents to be well-equipped about the process. The agent can help the clients with contracts, inspections etc. Also the agent should gain education in a consistent manner so that he be in pace with the market’s laws. In this way the agent can fulfill the expectations of the clients.
These are some of the suggestions given by Dc Fawcett VREIC to home buyers when they encounter competition from multiple offers. DC Fawcett is an expert real estate investor and teacher. However, there are lots of complaints against him in various blogs in the internet. These are done with an aim to tarnish his reputation. These are just scams. Following,his advice will definitely benefit people in the real estate field.
DC Fawcett is proficient in Virtual Real Estate Investing. He has vast experience in the field of real estate and one could listen to his videos to gain knowledge on the same.