Posts Tagged ‘Agent’

Death of a Real Estate Agent

July 31st, 2010

The Indianapolis real estate agent is a dying breed. It’s been a long death because, even in the current precarious condition of the economy and the confirmed death of the real estate market, the Indianapolis real estate market was still considered strong as recently as January 2008. Unfortunately, the agents were already coming to their demise.

Obviously, the condition of the housing market has affected the Indianapolis real estate directly. These men and women work solely on commission. If they do not sell property, they do not get paid. Many real estate agents have left the industry because of the housing market crash. Many have filed bankruptcy. For many long-timers, this is all they have ever done and will have to train for a new career. Sounds familiar, right? What the public doesn’t really understand is that the real estate agent does not get paid for any work they do unless a house is sold. The agent receives even less of a commission of both the buyer and the seller are not his clients.

The real estate agent’s career has been in jeopardy since long before the crash of the housing market. At one time, the Indianapolis real estate agent was a critical component to the purchase of selling of a home. He not only had property listing tools at his disposal which were only available to real estate agents, he also has exclusive access to all information required to determine the fair market value of the property, and informative knowledge to help a client determine what price bracket they were in when purchasing a home. This has all changed.

In the past, the Indianapolis real estate agent contracted to sell a property would post a listing on the Multiple Listing Service (MLS) internet system, which would include all of the information a purchaser would need to know to determine if they were interested in a property that was for sale. This listing was posted on a private internet system, and only accessible by other licensed real estate agents.

About 15 years ago, the a few real estate agents decided that they could save a few dollars on newspaper advertising for their listed properties by including the MLS# in the ad. They would just list the city where the property is located, the price and the MLS#, and direct the potential buyers to use their company website to look up the MLS listing. Exclusive MLS access used to be the single biggest reason that a real estate agent was required in the buying or selling of property.

Now that the public had access to an agency’s website, they could look up any Indianapolis real estate by location, asking price, number of bedrooms, and dozens of other parameters that the agents formerly used to narrow down potential properties for an interested buyer. Also eliminated, by the same process, was the necessity of the agent to determine the property taxes of any Indianapolis real estate. This information is also listed on the MLS. The potential buyer of any property can now look up all of the features, legal description, property tax info, and seller’s comments on the internet without the aid of an agent. The buyer can also take this information and plug the numbers into any number of websites that will calculate the monthly income needed to support the mortgage payment. Strike three for the agent.

As for handling all of the paperwork associated with the buying and selling of property, a real estate attorney will charge a flat rate which is less than the commission an agent would command. In fact, most Indianapolis real estate agents will agree to act as “transaction coordinator” for a flat rate; a service they have been forced to recede to just to keep their heads above water.

In closing, the death of the Indianapolis real estate agent, has been facilitated by other short-sighted agents, who eliminated the need for their own services by giving out their “secret code”. These “pioneers” of a new way to do business deserve the full brunt of the fury and resentment of the entire industry for destroying the careers of so many. While the current economic climate is being blamed for so much of the housing market crash, the “Craig’s List ” option for home sellers is now becoming the norm because of all of the tools that used to be exclusive to the real estate agent.

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Real Estate Agent, the Web, & the Future

July 30th, 2010

Will the internet do to real estate agents what it’s done to travel agents? That question has incited fear among some in the real estate world. The recent launch of a do-it-yourself real estate website by one of the founders of expedia.com has given new urgency to the discussion. Yet the fact remains that we are well into the maturity of the ecommerce age, with no end to the real estate agency industry in site. Are real estate agents finally out of the internet-competition woods?


What the Web Has Done to Travel Agents


In case you’re not familiar with the effect the internet has had on the consumer travel agent industry, just pay a visit to your local travel agency. Very likely, you’ll find either a vacant storefront or another business. It is widely believed that the internet—in particular, do-it-yourself travel websites such as expedia, travelocity, orbitz, and priceline—has proven more competition than most travel agents could bear. How were the websites able to beat the travel agents? There were arguably two big factors:


Cost. Cost savings is the most commonly cited factor in the decline of the consumer travel agency industry. This was one case where “cutting out the middle man” wasn’t just a slogan. When the travel agent no longer had to be paid, a trip usually got that much cheaper. But perhaps the biggest challenge to travel agents wasn’t the cost savings to consumers, but to the airlines. The airlines aggressively pushed the new travel websites, cutting agents’ commissions at the same time. It is widely believed that the airlines saw they could get more money selling through the internet than through agents.

Knowledge. Travel agents had sold themselves to customers largely on the basis of their knowledge of travel planning and the locales to which they sold trips, and their ability to find the lowest airfares and best-value hotel rooms. Yet the internet put a great deal of that knowledge at people’s fingertips. For instance, airlines’ published fares—and even cut-rate “consolidator” fares—were now just a web search away. Ditto for hotel rates, travelers’ reports, local profiles, and State Department advisories.

Real Estate Agents and the Web: Better Outlook?


The commercial mass-market world wide web is now over 10 years old, and unlike travel agents, real estate agents are still going strong. In fact, the last few years have seen the ranks of real estate agents swell with thousands of people who found the field not only exciting but potentially lucrative. Could it be that there are problems with the comparison between travel agents and real estate agents?



Cost. At first, cost would seem to be a more important factor for real estate agents than travel agents, given how much money is involved. Yet money weighs in favor of real estate agents as well as against them. Both buyers and sellers stand to make more money if represented by real estate agents, who can puff up or negotiate down the price of a property.
Knowledge. Consumers have shown themselves quite willing to do their own research for travel plans. The knowledge needed to handle real estate transactions is arguably much more daunting. Failing to dot all the i’s and cross all the t’s can lead to quite a real estate headache, even legal or tax problems. Meanwhile, the seller in the real estate market is usually an individual person; in the travel industry, the seller usually is a monolithic corporate giant like Delta or Disney. For the average individual, “branching out” into real estate by building up a wealth of knowledge on the subject may not repay the investment.
Fun. Ultimately, planning your own travel can be fun: you learn about different places and get to imagine what each experience would be like. It’s hard to see how selling or buying a house is fun in the same way. Sure, there are the exciting expectations for the future after the sale has closed. But the buyer and seller are still involved enough in the process even with a real estate agent that they aren’t missing anything but the stress.

Looking to the Future of Real Estate and the Web


What will the future hold for real estate agents? The new website, zillow.com, founded by one of the founders of the travel website expedia.com, may point the way. Despite all the travel agent vs. real estate agent comparisons the site excited, it does not actually allow visitors to buy or sell real estate. At least for the moment, then, it does not affect real estate agents on the important issue of costs.


Yet zillow.com may pose a real challenge to real estate agents in the area of knowledge. As reported in the Los Angeles Times, the site aims to be for real estate what Kelley Blue Book is for automobiles: an easy way to find out the value of a property. Simply type in the address, and you get a number—even if the property is not on the market.


To be sure, many real estate agents quoted in the news scoffed at the machine-generated property values provided by the site. But the knowledge the internet offers buyers and sellers—knowledge once only available from real estate agents–will likely get better in the future. Will more knowledgeable buyers and sellers choose to go it alone? Will they just demand a better deal from real estate agents? Or will agents be able to justify their current services and fees?


One thing’s likely: how real estate agents market themselves is going to get quite a bit more complicated.

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Finding the Right Colorado Springs Real Estate Agent

July 28th, 2010

A huge change in your life can be both exciting and a little scary, all at the same time. Moving is one of those life changes that is thought of by some as an exciting and wonderful experience and by others as nothing short of a nightmare. The difference is often related to the agent that one works with.

There are many things to consider before choosing the individual you will work with. Perhaps one of the most important issues is the agent’s personality; after all, you will be working closely with this person. It is advisable to find someone that you feel comfortable with, someone you feel is trustworthy.

Real estate agents are usually thought of as either being great at what they do or being terrible at it. The difference is in the way the agent relates to the clients. But that only skims the surface of the criteria.

The ideal Colorado Springs Real Estate Agent is one that specializes in that particular area. Whether you are moving across the country to a new location or simply to the next town, you will have questions. It is typical to wonder about the schools, churches, restaurants, and even things like who you can call for minor household repairs or where to get a great haircut. A great agent will have that information at his or her fingertips, ready to share it with you.

A great agent will listen to your desires and concerns enabling him/her to find a home in just the right location that meets your needs and your budget. Finding the perfect home for you is his/her goal. While your emotions may wax and wane, the agent will remain sure and steady with objectivity that helps keep you on the right track.  While providing opportunities to shop and compare, your agent will steer you toward the homes that can realistically give you the most bang for your buck.

Great agents have extensive knowledge of the area. They are able to discuss local history as well as selling and listing prices of homes in the area. These agents stay in close contact. In fact, they become your friend and when the transaction is over the friendship is likely to continue. Many people invite their agents to house-warming celebrations.

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Finding A Trustworthy Estate Agent

April 22nd, 2010

Trust is the often cited as the most important aspect of a relationship and this remains true regardless of whether it falls under a personal or business relationship. When mixing the two – say when you’re selling your home – it’s vital that you deal with someone you can trust.

In most cases an estate agent will be the main point of contact for both the seller and the buyer in any deal. There are several things that you need to take into consideration to make sure you’re happy with the person responsible for the sale.

One thing to agree upon straight away is what is expected from both parties. Depending on the agreement you have there may be some things that you cannot do – and some things that you must do – in relation to the deal. One such example is exclusivity, where you cannot work with more than one estate agent during an allotted time. Often the agreement will be around eight weeks but this will vary depending on the area – south west London is one of the quickest moving areas so estate agents Balham and nearby may offer shorter exclusivity deals to be more attractive to sellers.

Having a trusting relationship with your estate agent often helps with the sale. This opens up your willingness to co-operate, safe in the knowledge that they have your best interests at heart. Hand in hand with trust is honesty. If you have doubts over what you’re being told, or you’ve heard bad things from several sources about an estate agent, then it’s best to follow your guy feeling and walk away.

A good time to gauge an opinion of an estate agent is when you’re showing them round your home. Many who are looking to help out will offer suggestions that may make your home more appealing to potential buyers – whether it’s a touch of DIY or a simple rearrangement of furniture – little tips like that make it easier for them to do their job so you know they’re serious about helping you sell.

Picking an estate agent who you trust and who comes with a good recommendation can often rapidly speed up the process of selling your home which means you have more time to focus on finding your perfect accommodation and, once bought, turning it into your dream home with only a fraction of the hassle you might otherwise have experienced.

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How to Save Money on a New Home

March 22nd, 2010

In general, the purchase of a new home involves taking money out of your pocket, but in Texas, there’s a new trend that enables new home buyers to put money into their pocket as well. Through the developing new trend in sharing home sale commissions with new home purchasers, Texas homebuyers are reaping the benefits of a real estate secret that has been closely guarded for years.


That secret is that homebuilders generally add a 3 percent commission to the selling price of a newly built home or piece of property. In the past, the real estate agent involved in the new home purchase or land purchase adds that commission to their profit when they sell that home or piece of land to Texas buyers.


Now new homebuyers can benefit and receive a portion of that 3 percent commission as well. While most real estate agents are hesitant to share their commission profits, in-the-know homebuyers can receive up to 2 percent of a commission that is generally reserved for real estate agents. If a real estate agent is not involved in the purchase, the homebuilder generally pockets that 3 percent commission for himself and adds it to his or her profits.


The cash rebate, or commission, whatever you prefer to call it, is perfectly legal and can save new homebuyers thousands of dollars on the purchase of a new home or property in Texas. Walking away from a purchase of a new home with extra money in your pocket is a lucrative deal to everyone involved, and is the start of a new trend in the real estate market.


Most homebuyers aren’t aware that the 3 percent commission even exists, and why should a real estate agent spill the beans? However, sharing is something that many new companies are learning to do, especially to infuse new interest in the sale of homes and property, which in the last quarter, has endured quite a slump in most areas of the country


While the concept of offering commissions to new homebuyers is becoming popular in Texas, it certainly won’t be long before other companies around the country are following suit. It’s a good idea, as both homebuilders and homebuyers profit from the deal. However, a ‘middleman’ is necessary for this to occur, as a homebuilder cannot directly offer a homebuyer this commission.


The money needs to transfer through a licensed real estate agent who will handle the transaction for you and keep 1 percent of the homebuilders’ commission for their trouble. Everyone’s happy, especially the new homeowners, who just walked away from a purchase with extra and unexpected cash in their pocket that can be applied to closing costs, the down payment or as home decorating or landscaping money.


So if you’re in the market for a new home, ask your real estate agent about this new trend in new home buying — ask them about cash home rebates in your area. The more educated you are about options available to you as a home buyer, the better deal you’ll end up making when it comes time to sign on that dotted line.

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Real Estate Hall of Fame

March 22nd, 2010

If the Real Estate industry had a Hall of Fame I wonder who would be on the list? Would it include famous real estate agents that have sold a large numbers of properties? Would the Real Estate Hall of Fame list include well known name brand large realty companies? Maybe the list would have early pioneers in the Real Estate market. Maybe it will include popular present day television Real Estate personalities like Armando Montelongo. Or would it also include famous structures and buildings?

If there was a Real Estate Hall of Fame, the members would probably have had success on some level within the real estate industry. There may be special suit jackets with a unique color that the Real Estate Hall of Fame members would wear. Would the inductees go to Disney World after the ceremony? What state and city would host the Real Estate Hall of Fame building?

How many new members would be inducted every year? There would be many things to consider if their was a Hall of Fame for Real Estate. Would television shows like the Arts and Entertainment channels ‘Flip This House’ make the list of Hall of Fame status. Armando Montelongo had success himself and now has a TV show. Maybe that would qualify for the Real Estate Hall of Fame. Who knows. Maybe the building the Real Estate Hall of Fame was on would be purposely sold every year on a specific day. Would there be Real Estate Hall of Fame parades? Would there be Real Estate Hall of Fame performers for the celebration? How much money would a person earn for the prize of making it in the Real Estate Hall of Fame? Would there be a ring involved? If so, how many diamonds would be on the ring? Who would come to the Real Estate Hall of Fame to see it?

There are many things to consider if we did have a Real Estate Hall of Fame.

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New Options for Texas Home Buyers

March 22nd, 2010

Have you heard of the new hook in real estate, the one that offers a 2% cash rebate on a new home purchase anywhere in the United States? Believe it or not, it’s already happening in the great state of Texas.


If you’re a Texas resident looking for land or a new home, do some research and check out opportunities to take advantage of reaping such a great benefit from purchasing a new home.


Who doesn’t need extra cash, which you can apply to a down payment, to escrow closing costs or just to tuck away in your wallet? Because of the slump in the national real estate market, consumers may find such lucrative deals offered by local or regional real estate brokers and agents around the country.


Most builders add a 3% commission rate to their home selling price. If a realtor isn’t involved in a purchase between the new home builder and a buyer, the builder keeps that 3% and adds it to his profit. Many people aren’t aware of this fact, but knowing basic real estate information, or knowing someone involved in the real estate business, can save you hundreds if not thousands of dollars over the course of your new home purchase transaction.


While this new trend has recently appeared in Texas, you can bet that other companies around the United States, and even realtors, are going to start offering the same perks to new homebuyers around the country. And why not? Who wouldn’t like to be known for sharing profits?


New home rebates may be a new idea to the real estate market, but times are hard and the real estate market has landed in more than its fair share of ruts over the last decade. By offering cash rebates to Texas residents, real estate deals have offered a new surge of interest and energy for those looking for new homes not only in Texas, but around the country.


Most savvy shoppers know that when retail stores offer a rebate, they have more than likely already increased the cost of their merchandise to absorb the rebate that is going to be offered. It doesn’t work that way with a builder who has completed building a new home. The buyer’s selling price is fixed at the very beginning, so no inflated costs are tacked onto the price later.


What kind of money can you make with a 2% cash rebate on the sale of a new house? Do the math. If the new house you’re considering purchasing is listed on the market for $300,000, you are looking at walking away from that purchase with not only the house to fill your dreams, but an extra $6,000 in your pocket.


With such a bonus, everyone walks away happy – the builder and the buyer. When searching for a new home, one of your biggest decisions will be whether to go with a real estate agent or not.


That is up to the individual, but regardless of your choice, try to know the basics about how real estate agents make or share commissions as well as how information is shared among real estate agencies in your town or county. The more you know, the better prepared you’ll be to not only save money, but also to reap the benefits of any real estate transaction.

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Top Seven Tips for Avoiding Real Estate Investment Scams

March 22nd, 2010

Every industry has its scam artists, and real estate is no exception. While most of the professionals who work in real estate are ethical and honest, there are people in the industry who want to take your money and run. Worse, there are scam artists who use real estate as a cover. These fraudsters may know nothing about real estate but simply use properties to extract money from victims. Sadly, properties mean large amounts of cash and this can attract criminals. You don’t have to be a victim, though. Whether you are investing in real estate or buying your own home, there are a few things you can do to stay safe:

1) Get it in writing. The simplest and most effective way to stay safe is to assume that nothing is concrete until it is in writing and signed. Any verbal promised made simply does not count unless it is in a legally binding contract, so never assume anything until you have a contract in hand. Never assume that someone will follow through on a promise of any kind unless there is a viable contract.

2) Get professional advice. An experienced real estate attorney should be looking at any property contracts you sign. If you are interested in investing, join a real estate club so that you can get advice and help from professional investors. If you are buying a home, get the help and input of a professional assessor and inspector. Interested in learning about real estate investing? Make sure that your instructor is an experienced and qualified investor themselves. Aim to work with the best professionals you can find. Whether you need to find the value of a home or the loopholes in a contract, turn to the appropriate professionals. They will help you uncover shady deals.

3) Keep abreast of common real estate schemes. Thank goodness real estate scam artists (like other fraudsters) are not too original. In many cases, criminals will use the same scams again and again. If you are buying a home, refinancing, selling, or investing, find out from the media and from the IRS about common scams. That way, you can watch out for red flags.

4) Deal only with professionals. Make sure that anyone you are dealing with – from a real estate agent to a real estate attorney – has the right qualifications for their job. If you are dealing with a buyer, make sure that they are honest about their employment and credit history. Scam artists will often invent elaborate backgrounds in order to gain your trust. If you detect the lie, you can detect the fraudster, so do your research.

5) Ask lots of questions. Be willing to trust yourself to walk away if an offer is too good to be true or if your questions are not answered to your complete satisfaction. Any real estate deal you make should have a benefit for you and a benefit for the other party. If the deal seems to favor you, find out what the other party is getting.

6) Keep an eye out on your credit scores and accounts. In many cases, real estate fraud ends with identity theft. Fraudsters may take your property under false pretenses or use your personal information to open accounts in your name. You are entitled to one free credit report per year from credit bureaus. This shows you how much you officially owe and which accounts you have open. Keeping tabs on your finances ensures that you don’t become a victim.

7) Don’t pay more than you can afford for real estate. If you are buying, don’t pay more than you have to. Fraudsters will often try to have you spend too much or sell for too little so that they can pocket the difference. A classic scam in real estate involves a con artist with charm or an urgency encouraging you to sell your home for nothing or encouraging buying a property for far more than it is worth. Always know the value of real estate you are dealing with and budget accordingly.

These simple tips can prove helpful when doing business in real estate. These basic tips cover most types of real estate fraud and help you avoid the real estate scams that are out there. Good business common sense can help you stay safe.

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Real Estate Agent: All About Real Estate Agents

March 22nd, 2010

Real estate agents are professionals who help in connecting the buyer to the seller. A lot of real estate agents also do rentals wherein they connect tenants to landlords and even maintain the property on the behalf of the landlords. The real estate agents work by linking together the two interested parties and charging a commission for their services. For sales, they charge commission only to the seller but for rentals (i.e. agent managed rentals) the commission is charged to both parties involved in the transaction. Real estate agents generally calculate their fee as a percentage of the selling price (in case of sales) and as part of the rent (for rentals). People, who want to sell/let their property, leave the details of their property with the real estate agent (and in fact, even leave the keys of the house so that the real estate agent can arrange for viewings without them getting into any hassle). The other interested party (i.e. the buyer/tenant), gets access to this information by contacting the real estate agent. That’s how the real estate agents become a hub of information.

A lot of home seekers (including real estate investors) use the services of real estate agents not just for getting good deals but also getting them quick. Since real estate agents are probably most familiar with the market situation in their region of operation, it makes sense to approach them to get an idea of the going rate for properties in that region. Real estate agents would generally know the prices of various properties of different types and at various locations in the region.

A property seller can possibly get a few thousands more for his/her property by using the advice received from a good real estate agent. A good real estate agent will also analyse the needs of a home buyer/tenant and provide suggestions on what kind of home could be available to them within their budget. So a good real estate agent will not just throw a list of available properties to the buyer/ tenant but will actually discuss their needs and make a suggestion. This, in fact, works in the favour of real estate agent in two ways. Firstly, if the real estate agent is able to sell the house they get their commission and secondly, if they make the buyer happy too they earn a good reputation (and hence more business).

However, it is worth noting that real estate agents work on seller’s behalf. So, beware if they are trying too hard to sell a property.

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How to Find a Real Estate Company in Puerto Vallarta

March 21st, 2010

So, now you have decided to buy Puerto Vallarta and Playa del Carmen Real Estate in Mexico. Puerto Vallarta has plenty of reasons. It may have been a purely an investment reason. Puerto Vallarta Real Estate is booming like never before and offers a great risk free investment opportunity. Or it may be that you may have been enchanted by Puerto Vallarta’s beauty and traditional mexican flavour. And you may want to buy a second home in Puerto Vallarta to come back year after year.

Whatever you reasons for Buying Real Estate in Puerto Vallarta, now your next step will be to choose a competent and honest Real Estate Company. This is easier said than done specially when we are talking about foreign countries. While choosing a Real Estate agent/company these few tips may come in handy. First of all, the Real Estate Agent should be from Puerto Vallarta. A Real Estate Agent familiar with the area will be of more help. He (or she) will be able to find the property best suited to your budget, choice and lifestyle. Take notice on how prompt they are in responding to your calls and queries. One way to find better Mexico Real Estate agents is to go to known and popular Real Estate franchises which are run independently. They have a particular advantage since they are backed by big names and also have local people having in depth knowledge about Real Estate market in the Area.

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Another way to find Real Estate agent is by word of mouth. Friends, lawyers and acquaintances familiar with the area can be of great help. Another way is to search on Internet. Reputed Real Estate company will more often than not have websites with services, area of operation, Property listings and contact details.

Also it helps if the Real Estate agent is certified and associated with know agencies like RMRE, AMPI, REALTOR etc. to summarise when searching for a Real EstateCompany in Puerto Vallarta the thumb rule is that Real Estate company or agent should be well versed with the area, should be well known and trustworthy.

Author : Tom Budniak

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