Listing Agents and Real Estate Investors: Pros and Cons of Using an Agent to Sell Your Property

A conniving pro?

In a real estate agents' newsletter, an agent shared her secret for getting more listings. She said that when she sees a For Sale By Owner (FSBO) sign go up in a neighborhood, she immediately calls the number on the sign and tells the seller she has a client who isn't comfortable seeing the home without an agent.

In reality, the agent's "client" is actually her mother or a friend, posing as a buyer. The agent goes along and says very little, at least in the beginning. All she does is give the homeowner a business card upon arrival, and then she stays in the background, listening and observing. The bogus buyer asks all kinds of questions, and eventually the homeowner begins to feel comfortable with having the agent there.

After awhile, the owner begins asking the agent questions about the market, financing, or the many other things involved in selling a home. According to the agent, she converts a fairly large percentage of such appointments into listings, and apparently has no compunction about the deception involved in getting them.

This is an example of the biggest reason why real estate agents have traditionally gotten a bad rap. Some of them are downright dishonest. That's why some investors seem to think they should avoid using real estate agents to buy or sell properties. However, I disagree, and I'm not alone. In fact, contrary to popular belief, many of the most successful real estate investors buy and sell properties using agents. My husband and I often use agents to sell our properties. We've sold some houses ourselves, but we generally appreciate professional help, for a number of reasons, all related directly to our bottom line.

Why Professional Agents Earn their Commissions

We have several agents who call us when they find bargain properties because they know we'll call them back when that house has been fixed up and is ready to sell. Those agents can count on receiving commissions on both ends of the transaction, which gives them incentive to keep finding us properties to flip. The more they find, the more they make, and the more WE make in the end. As far as we're concerned, having reliable, honest agents help us buy and sell properties is simply sound business practice.

Another reason we like agents is because they schedule appointments, show us properties, do the negotiating, and take care of all the paperwork. Not having to deal with all those details frees us up to spend more time on the houses themselves, which is our main concern. For us, the real estate agents we work with on a regular basis are invaluable and make us far more than their commission on every transaction.

E-Books and Real Estate - a Marriage Made in Internet Heaven

E-books have become the newest weapon in the war for leads in the real estate market. The fierce competition among real estate agencies to get leads for potential buyers and sellers has moved from the streets of big and small town America to the pages of the Internet.

The Internet has proven in recent years to be the most fertile ground for finding and developing potential leads for buyers and sellers and many agencies are investing thousands of dollars in online marketing.

E-books are becoming one of the most powerful and popular ways for real estate agents to generate leads.

Many website design and development firms are urging that real estate clients offer free e-books to enhance lead generation. With an initial cost ranging from $500 to $1,000 for a typical e-book the cost-benefit analysis clearly points to the creation and use of e-books.

Some website design and development firms have actually hired writers specifically for real estate projects that can quickly write unique e-books for each client that provide value to potentials buyers and sellers and provide the real estate agency with a valid e-mail address for follow-up marketing.

E-books have ranged from topics including: How to Get Your Home Ready to Sell; The Ten Commandments of Buying a Home; First Time Homebuyers Rulebook and How to Buy Your First Home.

The key to having an effective e-book is a catchy title, valuable content and the need for someone to enter a valid e-mail address so the e-book can be delivered.

Busy real estate agents generally prefer the website design firm to create the e-book on their behalf and often partner with mortgage lenders and other real estate professionals to defray the cost of the e-book. An e-book can contain links to those professionals selected by the real estate agency.

With more home buyers and sellers turning to the Internet to both buy and sell their homes, real estate agencies must continue to invest in online marketing and e-books are one of the easiest and most cost effective ways to develop leads in the highly competitive field of real estate.

Orillia Real Estate January 2011 Residential Statistics

This article deals with the recent single family residential sale statistics for Orillia, Ontario for the month of January 2011 and compares it to January 2010. There are so many different statistics that can be manipulated in many ways to produce either positives or negatives... Basically, what I was concerned with was the activity on our local real estate board with a focus on the average sale price and the sales/listing ratio.

Once again, I am strictly looking at single family dwellings that were reported to the Orillia & District Real Estate Board. I am not taking into consideration any commercial, multi-family, or rental dwellings.

January 2011:
Listings 127
Sales 32
Listings/Sales 25%
Average Sale Price $233,031

January, statistically speaking, was quieter than a year before. From personal experience, I have been busy but my clients are taking a more cautious approach to the start of the year. The average sale price for the month, $233,031, is far off the twelve month average (February 2010 - January 2011) of $262,189. This can be attributed to the relatively small sample size of 32 sales where a few lower priced sales can trend the average sale number downward.

Last year, the January 2010 numbers:
Listings 143
Sales 41
Listings/Sales 29%
Average Sale Price $244,036

So, for 2011, the single family residential market for the Orillia area has had nine fewer sales, resulting of a sales/listing ratio being down 4% and an average sales price being down $11,005 from a year ago at this date.

With February being a short month, the spring market is approaching and the numbers above should see a trend upwards based on the activity that has started in the past week or so. There have already been some larger waterfront listings brought to market and once the ice breaks, there will be more and more.

In terms of in-town homes, I am getting a lot of calls from people wanting to buy a home that has the ability to provide rental income as well. People are looking at the university and college students as a way to help pay off their mortgage.

I am really excited by the opportunities that I think the Orillia real estate market will provide for 2011... will you be part of it?

Radon and Real Estate: What Buyers and Sellers Need to Know About Radon Tests and Mitigation

Radon. It's just five letters, but this little word can terrify home buyers and sellers alike. The presence of radon in a property is no laughing matter; however, neither is it the end of the world. Yes, radon is an odorless, invisible, carcinogenic gas. Yet, it doesn't have to make a home uninhabitable or drastically reduce its value. When it comes to radon and real estate there are a lot of myths and half-truths out there, so don't believe everything you hear. This is what you need to know, whether you're looking to buy or sell, about radon tests, radon mitigation, and the real estate market.

For Sellers

Start by having a radon test done before you put your house on the market. That way you won't end up surprised by results when a sale is pending. If the radon testing process turns up concentrations of more than 4 pCi/L (the EPA's recommended threshold for unsafe levels), you need to put in a radon system. This not only helps keep you and your family safe in the time you continue to live in the property, but it also removes a potential hurdle to a sale. If the test turns up a lower level of radon, you may still want to investigate putting in a radon mitigation fan as the EPA reports that there is no known safe level of radon exposure. Keep in mind that properties with the lowest levels of radon--thus the safest in terms of this gas--are the homes with abatement equipment installed.

In fact, your best bet is to approach your radon mitigation system as an asset, rather than a liability. Especially if your property is located in an area of the country that is known to have high radon levels (EPA red zones), you may even want to advertise that your home has a radon abatement system. If you take the angle that your property has this additional feature that others may not, buyers, too, will see the radon mitigation fan as a pro rather than a con.

For Buyers

It's the perfect house: spacious kitchen, updated bathrooms, plenty of bedrooms... But when they see that radon mitigation system, many prospective buyers bolt. However, there's nothing to be afraid of. As mentioned above, homes with radon abatement systems are actually SAFER than homes without. So don't just run when you see that a property has a radon system already installed. Just like you wouldn't buy any old house just because it didn't have a radon system, all things being equal, you also shouldn't nix a property just because it does!

If you're interested in a home, and it doesn't currently have radon mitigation system, you'll definitely want to have a radon test performed. In fact, many savvy buyers make a clean radon test a stipulation of the contract, creating a starting point for negotiating with the owners if abatement is necessary.

In short, whether you're buying or selling a property, it's important to have a radon test done. Radon mitigation systems can ensure that your home--and your family--is safe and sound, making them an asset rather than something to fear.

How The Federal Debt Will Affect Mortgages And Real Estate

There is a new threat to the mortgage market, which is the federal debt debacle playing out in Congress.

It all boils down to this. If the Congress cannot authorize the rise in the country's debt ceiling then the United States of America will have to default on some of its payments. The whole economy would be adversely affected and that includes the housing market. That's because a default will push up interest rates on every form of credit including mortgages. Some analysts are predicting that the interest rate increase could be as much as 1 percent.

It is said that 95 of every 100 home loans being written today are put into mortgage-backed securities that are guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. When they guarantee securities, that guarantee is coming from the U.S. federal government. The inability to raise the debt ceiling would mean that the value of these guarantees would plummet because the U.S. government would have to default on some payments.

The way the system works is that when the value of the securities drop, then the securities market would immediately demand a much larger rate premium on new mortgage backed securities to compensate for the greater risk. The results will be sharply higher interest rates charged to new borrowers.

The adverse effect on borrowing will not just be one immediate reaction by the markets. Instead, it will be spread out for years. If there is a serious and extended problem, U.S. bond holders like China will demand higher interest rates. This will ripple through all the markets and cause the further increase of interest rates in the mortgage market. Of course, this, as well as problems in other markets resulting from such a move by bond holders will slow economic growth more and the results would be higher mortgage rates, a double dip recession or -- the worst result of all -- a full scale depression.

As previously mentioned, the increase in interest rates could be as much as 1 percent. This could cause a 1 percent decrease in economic growth and the loss of 800,000 jobs a year.

Moreover, many analysts are saying that it won't be just the higher interest rates that would be impacting the U.S. economy. As this crisis plays out stocks, bonds and the dollar itself could plummet and all of this will continue to buffet the mortgage market. as it affects everyone's ability to borrow money regardless the reason.

Furthermore, analysts say that the default could freeze the short term lending markets. Treasuries and other government-backed debt are used as collateral for loans and the value of these securities will be plummeting because rating agencies will downgrade U.S. debt. So lenders could demand that borrowers must provide more collateral which could force consumers to sell other investments. Analysts say that this could cause a selling cycle that would spread chaos across markets much like the Lehman Brothers collapse did in 2008.

The issue is not just the federal deficit and debt. The repercussions of a U.S. government default will ripple through every nook and cranny of the U.S. economy affecting everything including mortgage interest rates.

The housing market has taken enough of a hit already due to the Great Recession, the record rate of foreclosures, the plummeting value of homes and the reluctance of buyers to take the plunge and buy a home. It certainly doesn't need more problems caused by a small group in the U.S. Congress who demand that "It is our way or the highway!"

New US President and Real Estate

With a new President of the United States only days away from being sworn into office, are we bound to see a light at the end of the recession tunnel? Things are bad across the United States, but will a new leader truly make a difference in the world of personal finance and real estate? We can all hope the promises of the new leader end up boosting the economy and bringing back the powerful economical reign the United States has come to love.

With a new President comes much of the excitement a child feels with a new toy. That excitement is enough to make people believe in the practices, rules and regulations that the leader preaches will turnaround our financial world. Along with that novelty, comes the fact that the current President of the United States is facing approval ratings lower than anyone every thought possible.

Is a Turnaround Out of the Question?

Some people, including the President Elect, believe the state of the financial crisis is bad enough that a change needs to be made today in order to save the United States from years of recession. Not unlike the months before President Bill Clinton took office, the United States economy is in a slump and needs a boost. It took President Clinton four years to change the slump and four more years to gain the total trust of the United States people. Unlike that time in history, today people are looking for change and President Elect Obama may be the change the people need.

How Will The President Elect Change Real Estate?

The real estate market is directly related to the financial well-being of the people of the United States. If there is money flowing in the economy people are more likely to invest in a home of their own or investment real estate. When the media, friends and family are facing harsh economic times, lost jobs and reduced pay, the money is just not there to invest. And, even if the money is available, the savings rate in the United States is on the rise because people are saving that money in wait for the final financial shoe to drop.

The entire real estate community and agents across the United States stand together in hopes that the President Elect will be able to make good on many of the promises responsible for his election. A new day is on the horizon and we all can only cross our fingers that President Elect Obama understands what the American people and the real estate community need to climb out of the recession and become the financial leaders we once were as a nation.

Key Biscayne Homes: Community Location, Exclusive Luxury Living, And Real Estate Value

Out of the many luxury real estate options found within Miami today, it seems that a vast majority of wealthy individuals are inclined to purchase Key Biscayne homes due to the fact that they are located in one of the most celebrated tropical paradise settings within the entire region.

The Community Location

Most property buyers within Miami consider their options based on the community's location since the region is one of the finest places within the United States. With its fabulous weather conditions, sunny skies, and exceptional natural beauty, people are particularly drawn to communities which are able to showcase all of these features in the most opulence areas possible.

Key Biscayne is among the prime exclusive communities which provide people with a fabulous selection of luxury homes which are situated upon a secluded island off the coast of Miami Beach. Over the decades, the community has been a preference among high-profile individuals who are looking to get away from the turbulence of everyday living in order to indulge in the elegance of living within a community situated along the Atlantic coast of Miami, Florida.

Exclusive Luxury Living

Aside from the natural beauty that is showcased from the island, the fact that people can easily look forward to exclusive luxury living is definitely among the main reasons why wealthy individuals are drawn to today's selection of fabulous Key Biscayne homes. If you look forward to living within a peaceful, private tropical island community that is known to live up to its own rules and regulations which aim to provide the best quality of living for all its residents and guests, Key Biscayne will definitely prove to be the best community for you.

Another amazing feature that comes with the exclusive community is Crandon Park's Tennis Center which has become the host of the Sony Ericsson Open Tournament that people from all over the world look forward to annually. People who are particularly fond of tennis will absolutely love being able to live within Key Biscayne homes that are found within such close range to the finest tennis courts within the United States today.

Real Estate Value

As of July 2012, the median sales price for Key Biscayne homes was $822,500 which marks a rise in value of 1.2 percent from the previous quarter. On an annual basis, the increase in value is 1.7 percent. The average listing price for Key Biscayne homes for the second week of August 2012 was $2,152,621.

If you would like to learn more about your available options on the property market, you are encouraged to contact a professional real estate for more information.