Buying a new home can be an overwhelming task. There are many steps in the homebuying process and breaking it down into easy steps can make you feel more comfortable.
Choosing the right agent
Real estate agents are the best people to entrust your future house purchase with. The main reason for this is that they have access to the MLS – which has all of houses and properties that you probably would never be able to get hold of. When buying a home, it is important to choose the right one and real estate agents can help you out in this regard by providing you with the right information at the right time. They can also help you with financing your house purchase and can even offer suggestions on how to go about the entire process.
Online property search
In today’s world where almost everything is being bought online, and with the influx of real estate technology, it is easy to find listings over the Internet. This has made it extremely easy for anyone to search for a house without leaving the comfort of his or her home.
There are many real estate agents who make their living out of listing houses for sale on the Internet. If you want to get hold of a real estate agent who can help you buy a house, then the best way to do so is by searching the Internet. Once you have found a few agents, ask them for some names of houses for sale and you will be presented with a whole lot of options.
Choosing the right property
When buying a house, it is important to consider all aspects of the house. These include the location, the cost, the amenities and the school systems. You will also want to have the home inspected by a professional home inspector to insure you are not purchasing a home with major issues that you are not aware of. Here is an article on understanding the home inspection. https://www.normanhomeinspections.biz/understanding-home-inspections/
A house should complement your lifestyle. It is also important to know what kind of house you want. For instance, if you have young children, you may want to buy a house that is close to schools and day care centers.
Overall cost of ownership
The cost of buying a house is another factor to consider when you are going to enter the world of real estate. Real estate agents are experts on this matter and they can give you some useful tips as to how much a house is really worth but there are other costs. Once you own your home, in addition to simply paying the note, you will have additional expenses.
Some of the additional costs of homeownership include:
Homeowners Insurance
Flood Insurance
Yard Care
Maintenance and Upkeep
New furniture and appliances
Timing
You should also keep in mind the time frame in which you want to buy a house. Make sure you have the patience to wait for a perfect home. When you do find the right property, be sure to jump on it and get your offer in. To do that, you will need to be pre-approved with a mortgage lender. There is nothing more frustrating than finding the home of your dreams, only to have someone else who is better prepared get their offer accepted.
Buying a house is not an easy task. It requires lots of research and lots of patience. If you follow these tips, you will surely be able to find the right house for you. And you will definitely not regret your decision to buy real estate.
To recognize noticeable shifts in the real estate market, whether helping their clients buy a home or sell a home, Realtors need to continually stay abreast of changing real estate trends to know more about their clients’ changing wants and needs.
For most of “The Greatest Generation” or “baby boomers, the idea and importance of home ownership was drilled into their heads from a very young age and represented one of the cornerstones of the American Dream. However, the purchasing power of millennials alone constitutes a sea change in the market.
With both generations now effectively vying for the same Memphis homes for sale available on the market at any given time.
The Difference Between “Hipsters” and “Millennials”
Hipsters are often portrayed in film, television, and other media outlets as a feckless group of beard-growing, kombucha-drinking guys dressed for irony while populating your coffee shop with their laptops.
Millennials are simply a group where their only qualification for the age group distinction is their birth year. You can be a rich “hipster” and a “successful millennial.” The lines are truly blurred.
Courtesy of Better Homes and Gardens Real Estate
The Rise in Millenial Purchasing Power
For many Realtors, appealing to very disparent age groups competing for the same property is going to present myriad challenges in the future.
While boomers may be looking to downgrade their existing homes now that their children are fully-grown, looking for more walkable neighborhoods now that driving has become more of a chore, millennials are seeking these same $300,000 homes.
Baby Boomer buying a home
Millennials are often traveling for work more than their potentially retired elders. Consequently they, like boomers, are looking for lower maintenance properties. Many boomers no longer wish to mow the lawn of their McMansions and both groups love technology for different reasons.
Many boomers are finding “smart homes” truly make their lives easier, while millennials have grown up with constant technological innovation and can’t see “going backwards.” They are always looking for the newest tech trends and may be more tech savvy than some agents.
A More Informed Buyer
Home and Garden Television (HGTV) and other television channels devoted to the home are, by default, leading to a more educated group of buyers, regardless of their generation. Older buyers quite simply watch more television, especially when retired.
The popularity and growth of House Hunters International and its other properties, while fun to watch, have also informed viewers in a near-unprecedented manner.
Younger buyers are likely considerably more informed about the cost of renovations and even whether they might to take on the challenge of such work themselves.
A False Sense of Security
Although many that feel “more educated” about the real estate transaction, for many home buyers and sellers, they feel that they know more than they really do. This can cause people to direct their Realtor (based off of television information) to do the wrong thing.
It is an agents job to direct the client, that can become harder when the client believes they know as much as the professional. Realtors go through a ton of education and most successful Realtors are a party to many real estate transactions per year.
The Impact of Social Media and the Internet on Realtors
People are working longer hours, while also driving the growth of social media and other sites. Going out to lunch might involve a salad for a younger buyer and an opportunity to look at Instagram and other social media platforms to discuss properties or to visualize for room improvements.
They don’t want to “waste” a day of work being shown dozens of properties that they have already had a virtual walkthrough of recently. Additionally, on the other side of this coin, is the importance for Realtors to have a strong online presence of their own, especially on Facebook and Instagram.
The traditional walk-throughs are being replaced by a new generation of Realtors who will be asked about “up and coming neighborhoods” as well as neighborhoods which will see home values rising in the short and long term.
Never Forget the Importance of Interest Rates
The expectation that interest rates will continue to trend upwards presents a new set of challenges and objections to Realtors. Know the name of the Chairman/Chairwoman of the Federal Reserve and learn how to use their comments to your advantage.
It’s always helpful to have a basic understanding of economics, which gives a great deal of insight into future markets and how things can change. As they say, “the only constant is change”, so stay on top of your knowledge and try to be as comprehensive as you can in this ever-evolving real estate market.
For more information about real estate, to buy or sell a home, waterfront properties or for general real estate questions, contact your local trusted Realtor today.
For New Real Estate Agents: How to Choose a Broker
If you just passed your real estate licensing exam, congratulations! The next step is deciding which real estate brokerage company you want to work with. There are quite a few choices. There are large real estate franchise companies, smaller, local boutique companies and individually owned brokerage firms.
There are also new real estate franchises that are leveraging different business models such as discount real estate and larger brokers that buy ownership in local brokers such as EXP. There are quite a few things to consider to find the right fit for you.
Training Programs
The first question you should ask the brokerage companies that you are interviewing is what kind of training program they have. Ask them who does the training. They may have their experienced real estate agents do the training, they may host classes offered by the local Realtor® association and they may require you to attend classes at the local Realtor® association office.
Its important that a real estate brokers training may not count towards your continuing education (CE) requirements as they may not be teaching an accredited class like specific real estate schools would. They also may not be licensed real estate instructors.
You will need training on listing homes, working with buyers and tenants, writing listing agreements and contracts, how to use the multiple listing service, how to do open houses and so much more.
Ask the brokerage companies if they have a training schedule to show you. Some companies even have mentor programs where you shadow other agents to their listing appointments, while they are showing homes to buyers, holding open houses and the like.
You want to make sure there will always be someone available to answer your questions. You will have a lot of questions. If you are working with clients and don’t know the answer to their questions, it’s best to tell them you’ll get back to them after you get the answer for them. Real estate managing brokers are legally responsible for your actions. Don’t be surprised if they have required and mandatory training. In fact, you should worry if they don’t.
Option To Be Part of a Team
Real estate agents are responsible for generating their own business. It’s best to start by telling everyone you know that you are a real estate agent. Tell your family members, friends and sphere of influence.
Some brokerage companies have teams of agents that work together and are comprised of buyers agents, listing agents, licensed and unlicensed assistants, marketing personnel and more. Sometimes there are openings and opportunities to be placed on a team. This may assist you in getting some business.
They may have buyers, sellers or tenants that need help. They may have open house opportunities for you.
What Size Company is the Right Fit
You will also have to decide whether you want to work for a large real estate franchise brokerage, a local, boutique real estate company or a small, individually owned brokerage firm. It is a matter of personal choice.
Larger companies will have national, and perhaps international, websites and advertising. They may have annual conventions. Local boutique firms may have a few offices and a wonderful local reputation.
A brokerage owned by an individual, perhaps a family member or friend, may have lower fees. The size and type of company you choose depends on your expectations and comfort level.
Commission Structure
Another extremely important question to ask the brokerage companies you are interviewing is what their commission structure is. When you work for a brokerage company you split your commission with them.
Some companies start you out with a 50%/50% split when you are a new broker. This is because you need more help and training. As you start to sell more properties and are more experienced, most brokerage companies will pay you 60% and keep 40%. Some will even offer 70%/30% or 80%/20% for more experienced real estate agents. Some brokerage companies have a sliding scale where they increase your percentage the more you sell.
Sometimes you can cap out and receive 100% of your sales commission if you sell a certain amount and the company receives a certain amount of money from you.
Local, State and National Realtor® Associations
It’s important to ask brokerage companies if they are members of your local, state and national Realtor® associations. There are many benefits of being a member of these associations. This is especially true when you are a new real estate agent.
They have training and classes that are very beneficial. They have perks like discounts on cars, insurance, office supplies, computers and more. They provide free marketing templates.
You will receive access to all of the state and local contracts and forms. Feel free to search the advantages of belonging to the National Association of Realtors®. Choose a brokerage company that encourages or requires memberships.
Start-Up Fees and Office Fees
It’s important to know what start-up, monthly and annual fees you will be required to pay at your brokerage office. Some have start-up fees to get you necessities like business cards, lockboxes, and signs. Some charge their agents advertising fees so they can advertise in real estate magazines or on websites.
Some have copy fees that you will pay if you make copies or print anything at the office. Just be sure you know what to expect up front. Some larger real estate franchises may have more fees, such as royalty fees, that are divided up among the agents in the office.
Errors and Omission Insurance
It is vital that you have errors and omissions insurance coverage. Most brokerages have a policy that covers all real estate agents in their office. Be sure you know what the coverage is, as well.
Sometimes there are additional policy riders for offices whose agents practice commercial real estate or property management. You will want to make sure that you are covered.
Local Multiple Listing Service Member
You definitely want to ensure that the brokerage company you join is a member of the local multiple listing service (MLS.) Being a member will give you access to all listings, from all companies, that are in the MLS. Your listings will be exposed to and available for all local members to see, as well. It is important to be a member. Your clients will greatly benefit if you are a member of your local MLS.
After interviewing a few companies and gathering information you will need to decide which real estate brokerage firm to join. If you’ve narrowed it down to a couple that offers what you are looking for, choose the one that feels the most right.
Trust your instincts and imagine what it would be like working there. You should feel positive and excited about their culture. Real estate is a very rewarding career.
