First-time home buyers need all the help they can get. That's not a derogatory statement; it's the absolute truth. Put yourself in their shoes for a moment. Making a decision to spend several hundred thousand Read more...
First-time home buyers need all the help they can get. That's not a derogatory statement; it's the absolute truth. Put yourself in their shoes for a moment. Making a decision to spend several hundred thousand dollars is not one that should be taken lightly. Because of this, some real estate professionals specialize in working with new buyers and have come to understand the unique challenges they face.
Whether first-time home buyers are your specialty or not, at some point in your career you're bound to deal with newer buyers. There are even continuing education real estate classes you can take to learn the intricacies of working with this unique group of buyers. If you find yourself with a client who has never purchased a home before, keep the following points in mind so you can do your very best for them from day-one until after closing:
House-hunting: You should help the buyer find the right location, type of home and price range of homes that fit their budget. This means taking into consideration what they want in terms of school district, nearby social amenities, prices, and much more. What comes naturally to you, as a real estate agent, is a brand-new universe to first-time buyers. Help them hunt for the ideal home.
Pre-approval: Explain the key difference between pre-qualification and pre-approval to your clients. The former is not nearly as important as the latter. Pre-approval will let them know what they can afford, and it will guide you as you begin to show them homes that fit their budget. It's equally important that you advise the buyers not to do anything that will change their financial situation between now and closing. They should understand that now is not a good time to buy a car or apply for other loans. Doing so can really jeopardize their chances of being approved as their debt-to-income ratio will be skewed.
Inspections: Help your new buyers choose a competent inspector. Remember, they haven't a clue about any of these issues. In a state like California this is extra important because there is no licensing or regulatory oversight of home inspectors in our state. Perhaps they know about having to get an inspection, but you can guide them to a professional with relevant experience on the kinds of homes they're looking at. It is also essential that you attend the home inspection. Your presence will give vital first-hand knowledge about any issues that come up. Plus, you can walk your buyers through the process of how to use inspection report data to negotiate their position if needed. This is one area where first-time home buyers often lose their way by hiring so-so inspectors and failing to use the report to tweak their offer.
Negotiation: Experienced real estate professionals know how to get the upper hand in a negotiation. First-time buyers often believe that the asking price is carved in stone. You need to show them how to make an offer based on what the house is really worth based on objective criteria. Many buyers report that when they purchased their first home, the real estate agent helped them get a significantly lower price than what the seller was originally asking. Use the tactics you learned in real estate school along with your real-world experience to get the best possible deal for your buyers.
Communication: You, the agent, are solely responsible for keeping the lines of communication open among the parties. All the parties look to you as the quarterback because you are essentially speaking for the very people who will ultimately come up with the funds to make the deal happen. Don't let anything slip through the cracks. Touch base with everyone on regularly. Being a reliable communicator is one of the things you sign up for when you get a real estate license.
Loose ends: Follow up on all the loose ends that crop up just before and after closing, and stay in touch with your buyers after they move in. As an agent, you know there are lots of little things that can slow things down on closing day. Do they have all the ID they'll need for the notarizations, for example? Remember, the buyers will think of you as a friend and mentor long after the deal is done. Maintaining this relationship can mean referrals and lasting relationships with people you enjoy spending time with. Think of it as long-term networking.
After you get a real estate license and work for a few years in the industry, you'll learn that some home buyers are much more experienced than others. People setting out to purchase their very first home need all the encouragement and support you can give them.
Agents learn a lot from their real estate course about different kinds of buyers, but it takes "on the ground" experience to fully comprehend the many ways you can put your knowledge to work for special first-time ones.
Call us at 888 768 5285 for more info on how to get a real estate license.
Love,
Kartik
|
If you were searching for a home in the 1950s, you essentially had to do so "the old-fashioned way" - by driving around to available properties in your area and seeing as many of them as you possibly could. Read more...
If you were searching for a home in the 1950s, you essentially had to do so "the old-fashioned way" - by driving around to available properties in your area and seeing as many of them as you possibly could. Not only was this a time-consuming process for most people, but it was also inherently ineffective. There are only so many hours in a day and you needed to be very judicious about how you spent them while on the hunt.
Then, in the early 1990s, something incredible happened: the World Wide Web was born. It's not a surprise that the prevalence of the Internet in the homes of average people (as opposed to college campuses and businesses) is directly related to the rise of real estate photography. Around that time, real estate agents realized that by including color photos on websites and listings for properties, they could generate more interest - and more leads - than ever before. Home buyers could benefit too, as now they could not only see properties in an adequate amount of detail without ever actually getting in the car, they could suddenly see homes for sale in other cities or even states.
This gave everyone involved more options than ever and thus, one of the most important real estate trends of the last quarter century was born.
Over the years, this technology has continued to advance and the visual side of the digital experience has become more crucial than ever. Now, it's not uncommon to see real estate agents buying drones so that they can capture high definition videos of a particular property from the air. All of this is in service of an essential goal for any agent: helping someone get a sense of what it might actually be like to live in a property through any means necessary.
But as is true in so many other industries, technology in real estate has never really sat still for long. Advancements like the Matterport camera have not only changed the way that agents and buyers alike think about what a listing can be... they've also essentially changed the touring process itself, both for the better and for all-time.
Enter: The Matterport Camera
Image Source via matterport.com
Originally founded in 2011, Matterport is a company that offers premium camera solutions designed to capture, store and share three dimensional images and models. Based out of Sunnyvale, California, the company's founders say that they started their business to support any customer that relies on integrated 3D models to operate their own organizations - which is a large part of the reason why the platform has been so successful particularly in the real estate industry.
How Does the Matterport Camera Work?
The actual Matterport devices themselves can be paired with any compatible camera, or a smartphone or other mobile devices like an iPhone. Though the specifics will obviously vary depending on the model you're talking about, in general the process goes like this:
First, you use your camera and Matterport to capture HDR panoramic imagery. What makes this solution different from a standard camera, however, is that sophisticated depth information of the environment is captured at the same time.
The Matterport platform synthesizes all of that spatial data and visual imagery, essentially combining it in a way that creates a dimensionally accurate 3D digital "twin" of the environment in question.
The platform provides further tools that real estate agents can use to generate photo galleries and even virtual "walk-throughs" of a space.
The Matterport SDK can be used to integrate this content into an agent's own website or branded applications, thus making it possible to share with anyone, at any time, and from any device.
In other words, it's a way to transform standard 2D images into 3D "twins" that are spatially accurate and engaging in a way that regular photos can never be.
What Are the Benefits of the Matterport 3D Camera?
At the very least, it's a way to allow the photos of a house or other environment to "come alive," offering an experience that is far more interactive than ever before. Matterport images naturally have a bigger sense of dimension to them by design, meaning that people can get a feel for how big a room is or how tall the ceilings are without ever physically stepping foot in that place.
Over the last decade, savvy real estate agents have started to use it to make those early stages of buying a home not only more efficient for their customers, but more fun and exciting as well.
But as is true for so many other examples of state-of-the-art technology, a lot of people viewed Matterport as little more than a "fun addition" to the buying process up to this point. Yes, it's helpful to get a better sense of the way a home "feels" from the comfort of your computer chair. But for most people, it was a way to quickly disqualify a few homes from their tour list so that they can spend more time in those that remain when they scheduled their in-person tours. It was an asset to real estate professionals, to be sure - but few looked at it as something that was really going to "seal the deal" when it came to actually making a sale.
Transitioning to 3D Tours During the Coronavirus Pandemic
Until, of course, the Coronavirus pandemic hit in early 2020.
Just because roughly 60% of Americans are currently under stay-at-home orders does NOT mean those people don't need to buy a new house. A lot of people were likely already in the process of searching when the COVID-19 situation first hit, and others knew that this summer would be the one when they finally moved into the home of their dreams. Being required to stay in your home for an indefinite period of time has certainly hampered those efforts, but luckily the wonders of modern technology have been able to step up and lend a helping hand the same way they always do.
According to one recent study, Zillow in particular said that it saw a massive 191% increase in the creation of 3D home tours in one week at the end of March, 2020, when compared with the average number that were created in February. Likewise, real estate brokerage Redfin indicated that it saw a 494% increase in requests for virtual walk-throughs and agent-led video home tours, up dramatically since the beginning of March.
Truly, this is something that couldn't have come along at a better time - though even those at Matterport would have had no way of knowing that just a year ago. For so many areas in the country, people have no idea how long current social distancing requirements will stay in place. Even once stay-at-home orders are lifted and things begin to get "back to normal," it'll be difficult to find people willing to walk through what is essentially a public space for a home tour with an in-person agent for the foreseeable future.
Thanks to devices like Matterport, however, they don't have to. Virtual tours like those offered from Matterport are a perfect opportunity to show prospective clients a finished, furnished interior in a way that still keeps them as active and as engaged in the buying process as ever, all in a way that seems like it was tailor made for the current environment that we're currently living in.
Tomorrow's Technology, Available Today
In the end, it was already clear that the Matterport camera (or at the very least, something like it) was going to be the future of the real estate industry as we knew it. It's just that thanks to Coronavirus, few people likely could have predicted that the "future" would have arrived quite as quickly as it did.
Even on a basic level, Matterport tours bring with them a host of unique advantages for real estate professionals that can't be ignored. First off, they save a tremendous amount of time because customers can see a property on their laptops, phones and other devices with an incredible sense of immersion. They can instantly get a feel for what it would be like to live there without physically seeing it, thus preventing the need for agents to field constant phone calls and allowing them to focus on other aspects of their business that demand their attention.
They're also an incredible opportunity for real estate agents to cut costs, as they no longer have to spend countless hours driving back and forth to meet potential clients only to have them quickly realize that the property in question just isn't for them.
But in an age when it will be difficult to get people to feel comfortable with actually walking into a home for quite some time, Matterport tours and other 3D options are a perfect way to keep the real estate industry moving forward as efficiently and as strongly as it can. It's also something that is going to continue to get even more popular as the technology at the heart of it continues to advance.
Love,
Kartik
|
Many people who are in the market for a home consider purchasing a foreclosure for various reasons. The two most common motivating factors include getting an inexpensive place to live and purchasing so-called Read more...
Many people who are in the market for a home consider purchasing a foreclosure for various reasons. The two most common motivating factors include getting an inexpensive place to live and purchasing so-called "investment properties" that can be renovated and sold for a nice profit. There's nothing inherently wrong with these concepts, and a good number of buyers do indeed find major bargains.
But like everything else in the world of real estate, there are pros and cons to purchasing a house that is in foreclosure. The best way to approach the question is to look at what it means for a property to be categorized as "foreclosed," and what the most common advantages and disadvantages are when it comes to buying foreclosed properties. Learning how to invest in real estate can be an important tool for any consumer.
What is a Foreclosure?
In the broadest terms, a property becomes a foreclosure when the original owners can no longer make the payments and the bank takes ownership and possession of the home. At that point, buyers aren't dealing with the former owners of the house. They're buying directly from the bank (different than a short sale discussed below).
Banks don't like being in the home-selling business, so they're often anxious to unload whatever houses they are holding in inventory. There are lots of reasons a home can go into foreclosure, but the inability of the original owners to honor the terms of the original note is the most common scenario.
What are the Main Advantages of Buying a Foreclosure?
Foreclosures can be attractive buys for a number of reasons:
Low price: The most common advantage for buyers is a price that could be lower than market value. In some cases, banks are willing to accept offers that are less than you would pay if the home were being sold by its original owners. As far as banks are concerned, the high level goal of selling a home is to recoup their investment. If they can do that, and if there aren't several other buyers bidding the price up, then they're usually glad to get the asset off their books and into your possession through a sale. Prices on foreclosures can be lower than market value.
Title can still be clear: If you are buying an REO from a real estate broker and there is a standard escrow you can often get title insurance on it guaranteeing that the title is free of clouds.
Financing is virtually the same: In many cases, you can still use FHA, VA or conventional financing options to purchase a foreclosure. The only difference is that you're submitting your bid to a bank rather than a person. Expect the bank to make a counter-offer if they aren't happy with your first bid.
Investment opportunities: If you don't plan to live in the house and have the funds for upgrading or repairing it, then a foreclosure can be a smart way to invest in a potentially profitable piece of real estate. Some people have slowly built up a small portfolio of homes for sale by acquiring low-cost foreclosures and having them repaired.
What are the Disadvantages of Buying a Foreclosed Home?
There's a downside to buying foreclosed homes. Here are common disadvantages:
Closing can take a long time: Depending on the reason the home went into foreclosure, it might take you several months to close on the property after you decide to buy it. If you're in a hurry, or need to use the house as your main residence, time may not be on your side.
This is more true with a short sale. A short sale is different from a bank-owned foreclosure because the seller is not the lender in a short sale. The reason that short sales can take a longer amount of time to go through is because in a short sale, the seller needs approval from their lender to sell the property for less than the amount owed on the home. This third-party approval can take time to process.
Condition is usually "as-is": This is the main disadvantage of buying a foreclosed home. The condition is often quite bad and you have to do your best to figure out how much it will cost to bring it up to par. Generally banks selling foreclosures are exempt from providing a buyer with many of the disclosures that you would otherwise get from the prior owner. That means a thorough inspection at the very least. Next, you'll need to hire one or more contractors to give you estimates for repair work. Perhaps the roof needs to be replaced or there are plumbing problems.
You'll need to be approved and have good credit: You need to check with your lender and see if you can get approved for financing on a foreclosure. That typically means you'll need at least "good" credit and perhaps much better than good. Like any real estate deal, do not venture into the foreclosure market until you get a go-ahead from your own lender.
There's a reason it's still on the market: Foreclosed properties that have been up for bids for a may have "hidden problems." Think of it this way: why have so many other potential buyers passed on the chance to buy the house? By far, the most common reason is the condition and the potential cost to repair it.
The Big Picture
The key point to keep in mind is that buying a foreclosed property can be either a very good or very bad financial move. You have to perform your own due diligence and find out what the pros and cons of a specific property are. Are extensive repairs needed? Do you have the funds to bring the house up to a high standard of quality and sell it for a profit, or live in it comfortably? Will your lender approve your application to purchase a foreclosed property? Are you ready to have the home inspected and take care of the necessary repairs? Are there unknown facts about why the property has been on the market, with no buyers, for x number of days?
Be sure to do a thorough analysis and try to get answers to all your questions. One thing that can be of great help is working with a Realtor who specializes in foreclosures. That way, you'll have the added advantage of expert advice every step of the way. What's the bottom line on buying foreclosures? If you take your time, work with a professional and do plenty of research, it's possible to find good deals. But never approach the process if you're in a rush, know nothing about the real estate market or are expecting to guarantee yourself a quick profit.
If you are interested in learning more about the real estate market or becoming a real estate agent so you can invest on your own, call us at 888-768-5285.
Love,
Kartik
|
Referrals are perhaps the most powerful tool you have for building your real estate career. While you can market heavily online and locally, there is nothing more powerful and meaningful than having an Read more...
Referrals are perhaps the most powerful tool you have for building your real estate career. While you can market heavily online and locally, there is nothing more powerful and meaningful than having an existing client recommend you to their friends and family. Consumers trust other consumers in every business. The question is, how do you encourage your clients, then, to recommend your services to others?
Be the Type of Person People Will Want to Recommend
The first step in getting referrals is the most challenging. You have to go above and beyond, exceed expectations, and deliver more than what the client expects. That’s a lot to ask for, of course, but it is what helps people to remember you and want to tell the world about you and what you did for them.
At the very heart of this, you should provide excellent service to your clients:
⦁ Respond to them as soon as possible.
⦁ Find solutions to their concerns.
⦁ Work outside of the normal business hours if they need you to.
⦁ If they are worried about the cost of a repair on a home, set up a quote for them.
⦁ Provide recommendations for service providers they may need within their budget.
There are many simple things you can do to address the needs of your client. Most importantly, listen to them. See what their goals or concerns are and provide solutions.
Ask for the Recommendation
When a transaction is successful, it is always important for you to thank your customers. Yet, that is not enough. Take a few minutes and talk about how important they are to you. Ask that if they have friends or family planning to buy or sell that they take the time to recommend you.
You can also ask for your satisfied clients to also share a review of your services online. While real estate agents may find this to be a bit awkward, most consumers are more than willing to do so when they are happy with the service they received. Send them an email with a link to streamline it. Don’t be shy :) - Link them to your Yelp or other review pages.
Build Relationships in the Community
Whether through the local Chamber of Commerce, city council, religious organizations, or professional associations, the more connections you make, the more opportunities you create for referrals. The key is to get to know people who work or live within your ideal area.
When you got your real estate license, you knew the value of developing networks – it is a key component of learning to market your services. Now, work to build those relationships on an ongoing basis. You don’t necessarily have to donate money to create these opportunities or spend a lot of money on the process. Instead, focus on just getting to know people. Give people the opportunity to say to their friends, “I know a really good Realtor…”
Provide Follow-Up Service
When the home sells or the buyer moves into their home, your job is not done yet. While officially it may be, this is the perfect time to follow-up with the buyer or seller to get more insight and clarity. Perhaps a month later, send them a note. Provide a card with a few recommendations of local restaurants. You can even reach out to those restaurants and small businesses to request a coupon you can offer. You can also just send a bouquet of flowers.
If you want to create more of a personal relationship, connect with your clients with a formal email or even a lunch appointment. Ask them what they thought of the process. What could you have done better? Learn more about what their expectations and needs are going forward. Provide a few business cards, so they can recommend you to their friends.
Keep in Contact with Leads – Even Those That Don’t Buy
Some of the best referrals come months – even a year – after a client has approached you about the prospect of buying or selling a home. This is a big decision for most people. As a result, they need to be able to think about and work out the details of the transaction before they commit to the process.
Be sure to have your new inquiries provide an email so you can send them information about current market conditions, new opportunities that come up, or other services and offers that may help. Emails sent consistently and over a period of time, allow you to remain fresh in the minds of your would-be clients. When it is time for them to do their deal they are more likely to call you.
Give People Something to Remember You By
Another fantastic way to keep your image and name in front of people is by giving branded material away. Whether it is a water bottle they can use for years with your logo on it or a t-shirt, the goal is to keep your brand in front of them long term.
Imagine the client that buys a home from you having a branded hoodie from you – perhaps you gave it to them as a thank you gift. They wear it often. They receive questions about it and can tell their friends and family all about your business as a result. This is a fantastic way to get your clients to keep talking about you long after they purchase a home.
Ready to Get Started?
When you become a Realtor, value every relationship you create. Whether it is in meeting friends of friends or connecting with clients that call your office, you need to build a connection. When you really do connect with these leads, you create long-lasting opportunities for them to remember you and the services you offer. People love to share good things about those they know. You want to be one of the people they talk about in a positive manner.
If you are interested in learning more about a career in real estate and how to get a real estate license, call us at 888 768 5285.
Love,
Kartik
|
The truth is that becoming a real estate agent is a lot easier than becoming a successful one. Taking real estate classes online and passing the real estate exam is the easy part. After you get your Read more...
The truth is that becoming a real estate agent is a lot easier than becoming a successful one. Taking real estate classes online and passing the real estate exam is the easy part. After you get your real estate license, the next step is to get connected with a brokerage and jump into production as quickly as you can.
One way that newer Realtors accelerate their chances of making it in the business is by getting paired up with a mentor. There are many reasons why mentors work and can bend the learning curve for a newer agent. I wanted to share a few of these so you know that you aren’t going to be thrown to the wolves in most real estate offices. You’ll have help in the form of a mentor.
Mentors Increase Your Chances of Actually Staying in the Business
Ask any big broker and they will tell you that the biggest burden they face in their business isn’t actually getting sued by an angry client. It’s actually recruitment and retention. The burnout rate for newer agents is so high that most companies have a stated goal of hiring 5-10 new agents per month because so many new agents don’t end up making it. This in turn means that the broker has to put resources into recruitment leaving them less time to train their newer sales staff. It’s a vicious cycle.
A great mentor can give 1:1 advice to a mentee and help them work through concerns which helps retain great salespeople.
By keeping agent turnover low, the broker can build a strong network of experienced and qualified agents rather than dealing with the constant task of recruiting newer agents to replace the ones that leave.
Time Savings for The Broker
Imagine large real estate brokerages. I define a “large” real estate company as one with at least 100 agents. There is really no effective way that one man or woman can be there to answer questions, coach and train a staff that large and do it consistently.
For this reason, a well thought out mentorship program is an easy way to save the broker time and hassle. By leveraging mentors, newer agents with questions can look to their mentor for help as opposed to hunting down an already stretched-too-thin broker/owner. This frees the broker up to only answer those high-level questions that stump even the best of mentors.
Additionally, mentors also play a vital role in reducing the “on-the-job” training necessary for newer agents working on their first escrow. In effect, the mentor can act as a ‘project-based’ sounding board for help on a deal-by-deal basis. This will allow the broker to invest more time working on higher level training rather than putting out deal specific fires.
Mentors Offer Encouragement and Act as a Cheerleader
Great mentors should help us see those things that we would not otherwise recognize. For newer agents this means that their mentor is able to realize what you are capable of achieving and will put you on the track to realize your potential.
This is especially true in the real estate business where there are several ups and downs in the course of a day and that every deal is on life support at some point in the escrow process.
Helping a newer agent manage their emotions and keep their eye on the finish line is a critical aspect of the business.
A great mentor can give a boost to the confidence that a newer agent needs.
Mentors Have Experience That They Can Pass On
Every veteran real estate agent has had a buyer buy from someone else or a seller who didn’t give them the listing. Understanding how to navigate these emotional ups and downs is critical.
A mentor who is transparent about their experience has likely been where you are, and has made the same mistakes you might have made or are about to make.
A good mentor will share their own mistakes, so they aren’t repeated by a newer agent.
Before you get a real estate mentor, I’m guessing that you need to sign up for online real estate classes. Please call me at 888 768 5285 and I would be happy to discuss your career and help you get started in our great business of listing and selling real estate.
Love,
Kartik
|
Whether you are a brand-new real estate agent trying to launch a career or are a seasoned agent looking to increase production I wanted to write a quick article for you. The below is a list of some of Read more...
Whether you are a brand-new real estate agent trying to launch a career or are a seasoned agent looking to increase production I wanted to write a quick article for you. The below is a list of some of the common traits I have observed in successful real estate agents.
Whether you are considering enrolling in a real estate class or are about to take a crash course to prepare for the real estate license exam the below list should prove useful
1. Manage Your Energy Level
Being able to run at a high level for a sustained period is critical to your success as a Realtor. It isn’t enough to just say “Work smarter and not harder.” You have to do both. Managing your energy level throughout the day is critical so you can work as hard as possible and continue to push.
The reason that this is so important is because many real estate agents and other outside salespeople tend to eat poorly, work long hours and lack consistent exercise.
The highest producing real estate people consciously try and escape this trap. How do they do this?
A consistent eating schedule of things that (for the most part) fuel their energy long-term - meaning plenty of vegetables, fruit and water. This also means a consistent program of vigorous exercise for at least 30 minutes a day on a ritualistic basis.
2. Focus on Improving One Area at A Time
There is a famous proverb that says “If you chase two rabbits, you will catch neither.”
The best businesspeople attack and focus on one target at a time, reach it and move to the next goal.
The secret is to cut up each goal into bite sized pieces that you can accomplish in short bursts so that you can rapidly move on to reaching the next one.
For example, if your goal is to have a better listing presentation, you might cut the entire presentation into 1/3 pieces.
The first third might be the verbal presentation itself.
The second third might be the physical presentation and other collateral material.
The final step might be objection handling practice.
The best agents don’t move on to tweaking their physical presentation until their verbal presentation is right.
Breaking the broad goal of “I want to have a better listing presentation” into pieces like this will result in the broader goal being achieved but in a shorter period of time.
3. Start with Baby Steps, Then Accelerate
It’s an interesting thing when I talk to newer real estate agents about their goals. I will often ask students why they want to get into real estate and what they plan on getting out of the course and their new career. Often they will say things like “I want to be rich!” Or “I want to make $250,000 my first year!”
I never want to crush someone’s dream or tell them that the thing they seem to want so badly isn’t possible. I think back to when I was a young 20 year old starting out in the business and if someone told me that my goals were unrealistic I would have dismissed them as being too negative and pessimistic.
With that being said, setting goals just for the sake of sounding overly ambitious can be dangerous and not useful.
The best businesspeople set rational and attainable goals with specific deadlines.
In the context of real estate sales this process might involve initially calculating how much you need to live on a monthly basis. Next, determine your average sales price in your area and the average commission per deal. Finally, ask yourself how many deals you need to do to achieve that income amount.
Example:
Average sales price = $600,000
Average commission = 2.5%
Average commission= $15,000
My expenses = $7,000 per month
Needed income = $84,000 per year
I need to sell 6 homes per year to survive.
My goal = 6 homes per year
Once you have proven that doing 6 deals a year is possible, you can then set loftier goals.
Remember that being great doesn’t happen by accident and a process must be followed. I would encourage you at this early stage of your real estate career to adopt habits and set goals that give you the greatest chance of success in a highly competitive industry.
Love,
Kartik
|
First time homebuyers are a fulfilling market for the real estate agent. You're helping people move from spending money on rent that they'll never recoup to investing that same money into a property they Read more...
First time homebuyers are a fulfilling market for the real estate agent. You're helping people move from spending money on rent that they'll never recoup to investing that same money into a property they actually own. This is a huge leap for most people and, as their agent, you get to help them find a starter home, or even their dream house.
All of this is empowering and inspirational. The problem is that many agents find it difficult to convert renters into buyers. People often rent because they don't feel financially stable enough to own a home. There may be a plethora of obstacles in their way, from salary to down payment to a lifestyle that means more mobility.
The reality is that many people can afford to buy and most would agree that buying would be beneficial for them financially. As their real estate agent, your goal is to educate potential buyers - But first you have to find them.
What Demographics Are Included in the First Time Home Buying Market?
There are different segments of first-time home buyers. Often real estate agents zone in on the ones who have already expressed interested in buying a home. This is an easier demographic to market to because they're already looking for your services. You don't need to educate them on why buying could be beneficial for them because they've already come to that conclusion.
The second hidden demographic are renters who haven't considered buying yet. Renters are often thought of as folks who haven't yet saved enough money to buy. That's not the whole of this demographic, though. There are those who aren’t in a position to buy right away, for certain. But every demographic is accounted for here for various reasons. Some prefer the mobility that renting allows as they are able to move more frequently with less hassle. Some simply prefer the location and amenities available in rental space in their locations.
First time home buyers may not be what you would think without researching, as well. For instance, single women make up a surprisingly high percentage of new homeowners.
When you're considering how to reach first time homeowners, there are a number of channels you can use to capture them. You'll also find that your geographic location will give you more information to help you target your market.
For many homebuyers in California rents have been rising so quickly and consistently that home ownership becomes more and more appealing with every rental increase notice. Remember that your buyers don’t necessarily need 20 percent down like in the olden days. There are many programs that offer down payment options of 0-5% making homeownership possible for more people.
How to Market to Renters to Help Convert Them to Home Buyers
For the renters who have already decided that they want to purchase a home, the marketing campaigns should be tailored more for sales than education, though value based content can still be used here. These future buyers can be considered warm leads because they already have an interest in purchasing.
To reach renters who have not already committed to buying a property, real estate agents sometimes need to use more creative solutions in order to educate and convince this market. The good news is that many renters would prefer to be homeowners. They often believe they can't afford it but in many cases they simply need more education about the buying process.
Educate Prospective Buyers on the Affordability of Buying
There are a number of ways to do this but the reality is that many would be buyers don't even research the idea of buying property because they mistakenly believe they can't afford it. Many of them can and should consider buying rather than renting. They also often believe that their monthly mortgage payment would be higher than their current rent, but that's often not the case, either.
Here are some ways you can reach these renters with more information that can help them to see buying as a good alternative for them:
Online Campaigns. You can use your social media channels and newsletters to help educate renters on the financial realities of buying. This can include statistics and personal stories showcasing the benefits to owning a home over renting.
Value Packed Blog and YouTube Posts. Use your website blog to host informative pieces that can be helpful for renters looking to buy. This can include tips on saving for the down payment for a home and information on finding the right property to fit your budget and lifestyle.
Articles in Local Publications. If renters aren't currently looking to buy a property, they may never visit your blog or pay attention to any of your campaigns. But articles in local publications have a broader reach. This might include town newsletters, local papers, and magazines.
Personal Outreach. Hosting webinars and classes about home buying can be a great way to educate first time buyers.
You'll find that many would be buyers are simply misinformed about the process. Helping to educate them on the benefits of home ownership can be an excellent way to reach this fantastic market
I wanted to write a blog about this because many of our real estate school students start out working with buyers and many of these are first time homebuyers. Having a solid plan of action to target and convert this market segment can prove profitable to the newer real estate agent.
If you are interested in taking real estate classes call us at 888 768 5285 or visit us at www.adhischools.com
Love,
Kartik
|
While historic homes don’t make up the bulk of sales for most Realtors, there are some agents who specialize in historic home sales. Still, this doesn't mean that you shouldn't venture into this great Read more...
While historic homes don’t make up the bulk of sales for most Realtors, there are some agents who specialize in historic home sales. Still, this doesn't mean that you shouldn't venture into this great market, or that you should defer to a local agent that has more experience with historic properties.
Historic homes can be an amazing acquisition for the right buyer. But there are some things specific to these types of properties that you should be aware of in order to best serve your clients.
Why Historic Homes Can Be an Amazing Purchase
Historic homes and properties within historic districts have amazing features that many buyers prize. For the home buyer who loves classic architecture or enjoys the history behind their residence, no new construction could ever compare. You may have a client who just falls in love with a historic property or you may have a client who is specifically looking for something with historic significance.
Each geographic location has their own historical homes that bring some flavor of past residents to life. The amazing thing with many historic homes is that they've gone through numerous generations and the history of each family is often present in the home itself. You can see this through additions made to the original architecture and a layering of the original design with more modern elements added over time.
The architectural and historic appeal is often the biggest benefit that your clients might be looking at in making their decision. But there are some other benefits that might be available that you should research and point out when applicable.
6 Things to Keep in Mind When Buying Historic Property
While many home buyers fall in love with the romance and history of historic properties, there are some things to consider which are unique to these types of property. Unlike new construction or homes built in recent years, historic homes have some quirks that can at times be costly to maintain. They've weathered many seasons and, depending on the local weather and type of construction, they may be in need of some extra TLC in regular maintenance.
Here are some things to make sure that your clients are aware of when purchasing a historic home:
1. Does the Property Include Elements Besides the Home?
Some historic properties are larger than a typical home lot and may include other structures which may also be historical in nature. They also often include great gems in landscaping, such as very large, beautiful trees, carefully planned gardens and hedges, greenhouses, gazebos, and even ponds.
2. Is There A Mass Appeal to this Home's History?
In cases where the property of someone with great local or national significance or where the architect was someone of note, the home might be used for touring or parts of the property might be useful to rent for events. If you're not interested in opening up your private residence in this manner, you might still find this a major perk just to own a home of this value and showcase it for your own purposes.
3. Possible Tax Incentives and Funding
In many areas, there are available funds and lower interest loans available for people who buy historical homes and wish to renovate them. These loans do come with some strings attached. The renovations often need to be done to certain specifications in order to maintain the home's integrity as a historic place.
4. Higher Than Average Renovation Costs
Each property is different. If your client is looking at a historic home that has already been completely renovated, they may not need to worry over renovation costs. However, in a case where there is major renovation work, it can often be more costly than renovating a newer home. This is because you'll often need to replace pieces that are no longer made or commonly used in newer construction. To maintain the historic significance, you may need to hire specialty contractors or preservationists to work on the home, which can be way higher in cost than a do it yourself project.
5. There May Be Restrictions
In many places, there are restrictions on the types of changes you can make to a historic property. This might include rigid restrictions on the outside aesthetic, such as paint color schemes and landscaping. It also might mean that you're prohibited from enhancing the property with new additions. It's important that buyers know these parameters in advance because they may need to live in a home where the architecture and design is less convenient for today's lifestyle than it was for the generation who built it. In most cases, those historic differences will add to the charm of the place.
6. More Likely to Have Hazards Than Newer Properties
Older properties were often built with materials that are no longer in use because they were found to be hazardous, such as asbestos. They also may be more prone to issues like mold because of the age of the home itself. It's important to have the home thoroughly inspected by a professional before purchasing. They can tell you if there are any issues in advance.
Historic homes provide a wonderful glimpse into past generations and can often be a dream residence for the right buyer. If you want more information about the historic properties in your area, contact the National Register of Historic Places.
As always, the first place to start your real estate journey is with a great online real estate course like ours. Call us today at 888 768 5285 if we can be of service.
Love,
Kartik
|
When you're in sales, the first impression can be the gateway to success. For real estate agents, it's the first step down a long and potentially lucrative path. The good news is that working on your first Read more...
When you're in sales, the first impression can be the gateway to success. For real estate agents, it's the first step down a long and potentially lucrative path. The good news is that working on your first impression will serve not just your career, but every other relationship you have in life. I wanted to write a blog post to take you through what a solid first impression looks like, how it helps you better relate to your clients, and what their takeaway will mean for your bottom line.
How to Create a Great First Impression
1. The Basics
Most of making a good first impression is common sense. However, just because it's easy to understand, doesn't mean it's easy to do. Even natural extroverts have to continually practice their manners and mannerisms before they get it right.
Smile: Nearly half of all Americans say that the smile is the most memorable feature after meeting someone new. A fresh-faced smile sends a signal to people that you're happy to work with them and you're ready to get the work done.
Focus: When it comes to meeting new clients, the nervousness of making a good first impression can be enough to force your head down. Eye contact is both polite and helps forge an instant connection with clients.
Listen: Anyone who's ever dealt with a salesperson knows how frustrating it can be to feel as though your words are going straight into the wind. Active listening means paying attention, asking questions, and responding to the clients' real concerns.
2. Dig a Little Deeper
A first impression is more than just following the basics. Picture the guy with the comically huge grin plastered on his face, the woman with off putting eye contact, or the agent who effusively responds to every statement as if it's the most fascinating thing they've ever heard. In the strictest sense of the word, they're smiling, listening, and focusing, but they still aren't leaving the right impression.
To really master the directions, you need to practice sincerity with each step. Express genuine emotion when appropriate, but remember that subtlety can also go a long way. Give a small grin when meeting people and save the teeth for the last minute. Follow-up on client statements that are vague or need further information. Blink normally when making eye contact and don't be afraid of looking down for a second if the conversation is getting too intense.
3. Practice Makes Perfect
Practicing your first impression doesn't necessarily mean going to your local bar and talking to endless strangers. It can be as simple as setting up role-playing with people you already know and trust. Have them provide honest feedback and constructive criticism about the sincerity of your smile, the volume of your voice, and the firmness of your handshake. These comments can go a long way if you're trying to understand how other people see you during their first interaction.
When you're shaking someone's hand, look into their eyes and strike a balance between death grip and limp. Use the first name as quickly as possible during the conversation so you're less likely to forget their names halfway through. Make sure that you’re annunciating your words and the volume of your voice is appropriate for the context of the environment.
4. Do Your Prep Work
Once you've taken care of some of the more subjective aspects of the first impression, you should have a much easier time addressing the more practical work of meeting someone. Being prepared can be as simple as getting to a meeting early or donning a sports coat or blazer to make your outfit just a touch more professional.
Before you meet with clients, it helps to know as much as possible about what they're looking for. Even if it's as simple as knowing they want a duplex rather than a single-family. The art of sales can get complicated, so it helps to hit the ground running.
5. Express Yourself
As tempting as it can be to remain neutral during your meeting, blandness will ultimately not help you be memorable. The truth is that even the most successful real estate agent may turn off a client or two with their personality, but it's ultimately better than being seen as forgettable. You can still be polite and respectful while expressing your personal opinions.
To stay on topic and to maximize the first few seconds with a client, some agents may give a short elevator speech where they emphasize their particular brand. So whether you're a bulldog in negotiations or the master of the short escrow, letting clients know upfront can be a good way to stand out.
Unlike most traditional sales, successfully navigating a property sale can take months or longer. If you hope to maintain your reputation and relationship with your clients for that long, you need to get off on the right foot. Use these tips to stand out from the crowd, so you're the one who ends up growing customer base.
This may be a slightly different blog post than I normally write, but so many of our real estate school students express their nervousness in meeting clients early in their careers. Hope this helps.
If you are interested in taking online real estate courses please visit our website or call us at 888 768 5285.
Love,
Kartik
|
Changing careers and becoming a Realtor is a major step in anyone's life. As such, a real estate agent has to budget for pre- and post-licensing expenses as accurately as possible. But it isn’t only Read more...
Changing careers and becoming a Realtor is a major step in anyone's life. As such, a real estate agent has to budget for pre- and post-licensing expenses as accurately as possible. But it isn’t only real estate agents who have to account for these sorts of expenses. Most professional service providers like accountants and attorneys are just a few of the similar models that budding real estate agents can look at as a model.
.h2head{text-transform:none;color:grey;font-weight:500;margin-top:40px;}
.bull1{margin-left:50px;}
.bull2{margin-left:50px;}
.bull3{padding-right:20px; padding-left:20px;}
.bull4{padding-right:15px;padding-left:20px;}
.bull5{padding-right:15px; padding-left:20px;}
.bull6{padding-right:20px; padding-left:20px;}
@media(max-width:800px){
.bull1{margin:auto 0;}
.bull2{margin:auto 0;}
.bull3{padding-left:-0px;}
.bull4{padding-left:-0px;}
.bull5{padding-left:-0px;}
.bull6{padding-left:-0px;}
}
Real Estate School Cost
Before becoming a Realtor, prospective agents have to pay for real estate license classes in order to sit for the state examination. Real estate courses aren't free and as such you should budget the cost of real estate school into your plans.
ADHI Schools’ real estate license courses: $150-$499
Real Estate Exam Fees
In addition to the cost of the licensing courses at a state approved real estate school, there are exam and license fees to consider as well. Also, remember that this article is written and published in March of 2020. These fees can change over time. You are encouraged to check our website or call us at 888 768 5285 to ensure that you are looking at the most recent set of fees.
State examination: $60
4 year real estate license: $245
Criminal background/Livescan fee: $80
Real Estate Broker Fees
Once you complete all these pre-license costs, the broker you decide to associate with will determine the next set of costs. When shopping for a place to hang your hat in the early days of your real estate career, be sure to find out about:
Desk fees, if any, that you will have to remit to the broker. These are fees that the broker charges whether or not you actually sell anything.
The commission split you have to pay to the broker.Most brokers will take some portion of the commission you pay to them from every transaction that you close.
What day-to-day expenses, if any, the brokerage will cover.
How and if the brokerage will help you get leads.
Ongoing Costs: Marketing Expenses, Continuing Education, Travel
All the factors listed above should play a part in your decision about which broker to choose after you get your real estate license. Remember, there's much more to your upfront expenses than real estate courses and tuition for real estate license school. Note that, like most other business professionals and entrepreneurs, you will have some expenses even before getting a license. After that, there will be other costs, only some of which should be considered "upfront" in nature. A few, like ongoing marketing expenses, continuing education costs and travel expenses should be put into the "ongoing" category since they need not be paid before you earn your first commissions.
Realtor Membership Dues
Don’t forget that to join professional associations like the National and California Association of Realtors will also set you back over $1,000 annually in California. This will cover your access to the Multiple Listing Service, the contract generation software and an eKey that will allow you to open homes with lockboxes.
Marketing Fees
As an active real estate agent, you will also likely have ongoing marketing fees of at least $1,000 or more per year: This category includes necessary items for getting your name out there, like business cards, flyers, advertising, signs, websites and similar items.
Keep in mind that your broker might cover some of the above expenses for you. That's why it is essential that you discuss all the details of expense coverage, desk fees and commission splits with your prospective broker. Those factors will have a profound effect on what comes out of your pocket as opposed to what someone else will pay once you decide to become a Realtor.
Now That You Know the Cost, It’s Time to Start Your Career
Starting your new real estate career with eyes wide open is helpful. I wanted to write a blog post specifically about this as I know that the newer real estate licensee will likely have many of these questions.
If you haven’t taken the first step to become a real estate agent, enroll in our real estate license courses today! Check out our real estate success stories for inspiration! Call me at 888 768 5285 if we can be helpful.
Love,
Kartik
|
