Is Buying a House a Good Investment?

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Intended Audience

Individuals looking to purchase a home for personal use or as an investment. As well, looking into conventional wisdom’s statement that buying a house is one of the best investments someone can make.

Summary Points to Take Away

  • Why a House is good investment: (1) Forced Savings Plan (2) Leverage (3) Inflation Resistant (4) Tax Free Capital Gain (5) Control over Asset.
  • Points against a House as an investment: (1) Lack of Diversification (2) Maintenance Costs (3) Historically lower returns than equities (4) Unavailable to take advantage of other opportunities (5) Limited Scope.
  • Additional points to consider if planning on purchasing property for personal use: (1) Doesn’t provide any cash flow (2) No tax shelter from interest expense (3) Can get personal joy out of investment.

Analysis

Conventional wisdom states that buying a house is one of the smartest and best investments an individual can make. This article is geared towards challenging this conclusion to see whether this statement rears any truth to it.

Why a House is a Good Investment?

Forced Savings Plan

Most individuals claim that the purchase of their personal home was the best investment they’ve ever made, which is true in most cases because it is the only investment they’ve ever made. The general public struggles with saving for retirement; thus, purchasing a house assists in that problem as it forces individuals to continuously pay down the mortgage (or lose the house in a foreclosure to the bank); therefore, allows the storing of equity for the owners. This built up equity (i.e. market value of home minus remaining mortgage) can be borrowed against during their retirement years or they can downgrad into a less expensive house in order to provide some retirement funds to the owner. If individuals take a disciplined approach to saving, then the benefit of being forced to save in order to pay for a house diminishes

Leverage

Typical real estate purchase require only a 5% deposit, while the remaining amount can be borrowed through bank debt. Few alternative investments outside of real estate can the acquirer obtain such significant leverage, which can enhance investment returns.

Example, suppose that you purchased a home for $200k, for which you made a 5% deposit down ($10k). During the next few years the house appreciates in value and you sell it for $220k (10% higher than the level you purchased it). Though the return on the house is only 10%, the return to the investor based on invested funds sunk into the home ($10k) is 200% ($20k earned over $10k investment) –  that is the power of leverage. On the negative side, more debt means higher fixed monthly mortgage payments; thus, higher risk of being able to make the monthly mortgage payments. As long as cash flow is not a concern and the mortgage payments can be met – investments should be leveraged to maximize returns to the investor. Could you imagine walking into a bank and asking for $100k to invest in equities while only putting 5% down – likely to never happen, this is a major benefit of real estate ownership.

Inflation Resistant

Real estate holds its value during inflationary periods; thus, acts as a hedge against the investors other assets that aren’t protective against inflation (ex. Currency). The asset will continue to hold its buying power (store of value), which is difficult to get outside of investing in precious metals. The reason real estate holds its value is there is the same number of houses that the increased monetary supply of dollars are chasing; thus, it’ll take more dollars to purchase the houses as the supply of houses stays stagnate while the demand rises (due to the increase in the number of dollars in everyone’s hands). This can become critical given the current economic times and numerous expansions of monetary supply across many nations, which will have the aftermath affect of higher inflation.

Capital Gain is Tax Free

In Canada, every home owner is provided with a capital gain exemption on amounts earned in excess of cost for their principal residence. Only one piece of real estate can be claimed as the principal residence per individual. For example, if you owned a home and a cottage, only one of those houses upon selling could take advantage of the principal residence exemption. No other asset class has such advantageous tax reduction characteristics. Unfortunately this is a onetime event; thus, those holding numerous pieces of real estate can only apply it to one property.

Allows for Control over the Asset

Real estate is typically an investment an individual has control over (assuming you’re the majority owner – which is typically the case) by the means of the owner has the ability to increase the value of the asset, which may not be the case in most other investment opportunities. When purchasing real estate, owners can make capital improvements to the home (ex. Finished basement, new porch, etc.), which will increase the value of the property (capital appreciation) as compared to purchasing stocks or mutual funds as assets where the owner can’t take action to increase the value of those assets (unless they’re a significant owner, greater than 20% – which is typically unlikely). The ability to control an asset adds value to the owner through what is known as a control premium, as a real estate asset may be more valuable in the hands of some individuals over others.

Why a House is a Bad Investment

Lack of Diversification

Average individual thinks the stock market is very risky while investing in real estate is more of a certainty. Purchasing equities allows the owner to conveniently hedge their risk amongst various companies in numerous industries, countries, etc. The purchase of real estate doesn’t provide the ability to diversify risk away as easily unless an investor plans on owning numerous pieces of different types of properties (ex. residential, commercial, resorts, etc) across various markets (North America, Europe, etc) – which is probably very unlikely for the average investor. Purchasing real estate prevents the diversification of risk because it’s dependent on the economic, migration, and regulation trends of the local area.

For example, assume you purchased a home in Oshawa, Ontario – which is a town extremely reliant on the large manufacturing facility of General Motors (GM). Should GM cut back on production or move their facility housing prices would fall sharply as it is the biggest employer in the area; thus, demand from individuals will decline as unemployment rises and real incomes fall. With a decline in demand and supply staying stagnate (as you typically can’t “un-build” a house once it’s constructed) the price will have to shift towards in order to align demand with supply.

Real estate doesn’t allow the investor to diversify away the specific risks in the local area as compared to purchasing equities, which allows the investor to spread risk amongst investments that perform differently during different points along the business cycle. Most individuals when purchasing real estate have all their eggs in one basket.

Maintenance Costs

Transaction and maintenance costs are significantly higher for real estate investments than stocks, mutual funds, etc. When purchasing stocks costs are typically broker commissions ($20 per transaction if using an online discount broker), while when purchasing a home it is typically 2% commission on the transaction value, significantly higher than purchasing equities.

Once you purchase shares, no further cash is required from the investor unlike real estate, which requires constant annual expenditures that continue to increase the investors cash committed towards the property, such as property taxes, insurance, utilities, maintenance and repairs of the asset, etc. These are costs that real estate investors or home purchasers don’t factor into their expected return, but play a significant role as the payment of property taxes (etc.) doesn’t contribute to the value of the property for eventual sale in the hopes of capital appreciation.

Historical Lower Returns Compared to Equities

During any 20 year period throughout history, no other asset class has outperformed equities, which includes real estate. This is from the perspective of asset vs. asset without consideration of leverage and how that may enhance returns (as discussed earlier). While it is true that over the long run real estate prices go up in value, this is typically due to inflation incurred. Recent spikes in housing prices seen in the past 10 to 15 years has been due to changing demographics, specifically the baby boomer generation (who makes up largest segment of the population in North America) go through life stages at the same time (same goes for starting a family and purchasing a home and real estate investment property). The result was a large influx in demand without a corresponding increase in supply as construction requires lead time; thus, leading to rising real estate prices.

Will this high demand continue? That’s where the argument lies. Likely there will be softness felt in overall real estate demand as baby boomers already have their homes and they’re likely to either stay put, move to retirement homes or downgrade into a smaller place in order to obtain some retirement income. Immigration will continue into North America that will prop up demand, but likely not the extent to fulfill the whole in demand left by the baby boomer generation; therefore, the future appreciation in real estate properties is likely to flatten out.

Can’t Take Advantage of Available Opportunities

The purchase of a home or real estate property requires the individual to tie up a significant portion of their net worth into the property (in a lot of cases, all of it). Having all your net worth in real estate is a risky strategy as you’ll be severely impacted by movements in real estate prices as compared to having your cash tied up into several asset classes; thus, less vulnerable to swings in any one asset class. Similar to the discussion had under the “diversification” section of this article.

With the majority of an investors net worth tied up in a real estate property, there isn’t available cash to take advantage of other opportunities that come along; thus, significant opportunity costs are involved in venturing into real estate. This should be considered before purchasing an expensive personal home or making a real estate investment.

Limited Scope

Real estate is a local good, unlike gold for example – which can be bought and sold throughout the year for the same market price. An individual looking to buy a personal home or make a real estate investment doesn’t have access to all available properties as there are physical limitations to contend with. It comes down to wanting to live where you grew up or currently work or not wanting to buy a rental property far from your home in order to reduce logistical issues. For example, if you live in Toronto, Ontario and are looking to make an investment in a rental property, you’re unlikely to consider properties in Paris, France though the opportunities may be better than those surrounding Toronto due to language and logistic issues. Equities (and etc.) are globally traded and available; thus, users can take advantage of opportunities around the world; thus, their scope is not limited to the local area of their current surroundings like real estate is.

Additional Points to consider if you’re purchasing a Home for Personal Use.

Doesn’t Provide Any Cash Flow

An asset typically provides you with cash flow, i.e. puts cash in your pocket. When purchasing a home, cash only flows out (property taxes, repairs, etc.); some would argue that if it appreciates in value then it is an asset. In this instance it is only an asset when converted into cash and if that is the case, where will you live? Likely end up buying a new house, which has also gone up in value similar to your house.  This makes it difficult to realize the value of your personal home appreciation, which acts more like a liability than an asset since it takes cash out of your pocket instead of putting some in there.

Tax Deductibility of Interest

Interest expense paid due to bank loans taken to finance investment properties is deductable against income because the investor is pursuing income and tax legislation allows deduction of any expenses incurred in the pursuit of income. This is not the case for a mortgage taken out to purchase a house for personal use as the individual is not in the pursuit of income; thus, interest expense is paid with after tax dollars, with no tax shelter provided. If those funds had been borrowed to invest in equities or mutual funds, the interest would be deductable because again that would count towards the theme of pursuing income.

Can Get Personal Joy Out of It

Unlike equities and other alternative investments, the investor can’t personally use or get joy out of it as compared to purchasing a home, which the individual can live in and enjoy during the investment process. An investor who purchases shares in General Motors (GM) can’t exactly borrow and test drive cars whenever they please simply because they’re a part owner. This is a qualitative benefit that is difficult to quantify, but should be considered.

Where to go from here?

The main reason to purchase a house is to have somewhere to live and enjoy their life, don’t think of it as an investment. Buying a home isn’t a bad decision; it is the investor’s perception that may be tainted because it is important to realize that there are many arguments against a home as an investment to be considered. Don’t buy real estate property with the mindset that an individual can’t lose and that there is no better investment opportunity than to purchase a home, etc. Beware of conventional wisdom that states there is no better investment than purchasing a house.

THANKS,

SIMON GIANNAKIS

Immobilienmakler Heidelberg

Makler Heidelberg

Immobilienmakler Heidelberg

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Source by Simon Giannakis

How To Be An Expired Listings Guru (Note: This Is 100% Legal)

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The biggest mistake you can make in real estate sales is overlooking the ripest fruit.

Where is the ripest fruit in real estate sales?

Here is the list of the easiest targets for your quality, professional real estate brokerage services:

In order of COLD TO HOT prospects:

9. People hiding under random targets (cold calling, door knocking)

8. People you know (your „sphere“) (just slightly better than random)

7. People who have listed property with a competing real estate broker

6. People who promise someone they will list their property

5. People who promise you they will list their property soon

4. People who have listed, and are currently dissatisfied with their broker

3. People who, today, will drop their current broker and might look for a new one

2. People who promised to give you the listing

And the NUMBER ONE HOT PROSPECT is sort of almost a client already:

1. People who signed a listing agreement with you that is post-dated for the day their current listing agreement expires

I am sure this list could be fortified in many ways. In some of my writings on my website I let you know about some more prospects and how to get them. But for right now I want to let you in on a little-known secret.

This secret is information that most real estate salespeople would pay a lot of money to get, and I will give it to you free here.

The way to get this information is to log into the MLS system of your choice (Rappatoni, MLX, e.g.) and search the database for listings which expire within two weeks. NOT EXPIRING TODAY. That is too late.

Then, contact those sellers with a very plainly stated letter which says in BOLD CAPS: this is not a solicitation to list your property during the present time, but in the future, when NO OTHER LISTING MIGHT EXIST on your property.

Include a statement a listing agreement. Why? Because your sellers may be interested in selling their property still, if their current broker does not hold up.

Make sure you POSTDATE the listing agreement and put it in the envelope.

OK, the big question is….

…Is this ethical? Absolutely. Here is why.

From the REALTOR® Code of Ethics : Standard of Practice 16-4: REALTORS® shall not solicit a listing which is currently listed exclusively with another broker. However, if the listing broker, when asked by the REALTOR®, refuses to disclose the expiration date and nature of such listing; i.e., an exclusive right to sell, an exclusive agency, open listing, or other form of contractual agreement between the listing broker and the client, the REALTOR® may contact the owner to secure such information and may discuss the terms upon which the REALTOR® might take a future listing or, alternatively, may take a listing to become effective upon expiration of any existing exclusive listing…. – Emphasis mine

This practice is known as the Postdated Listing. It is a real contract, but its effective date is after the expiration of the current exclusive listing.

Now, there may be a problem with exclusive listings broker in this case. The broker may say, „You found my listing through the MLS and that is unethical.“ You tell that broker, „The unethical thing is for you to take a listing which is not selling. I am not protruding into your listing agreement. You may sign another, postdated listing or get the listing extended. I am not prohibiting you to do that. And if you have done a good job, your client will sign again. But let’s let the seller decide.“

Be professional, be polite, be a business person. But be competitive. Don’t sit back and wait for the expiration of the listing, or you may find that one of your competitors had the same idea but took action, and that seller will put a new sign up the very next day after the active listing expires…. And you would be too late.

Enjoy this sales tactic, and think through it properly. Also beware that you may make some enemies using this technique. But the only competitor that everyone likes is the one who lays on the ground and does nothing to challenge your business.

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Makler Heidelberg

Immobilienmakler Heidelberg

Makler Heidelberg

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Source by Brooks Hanes

For Sale By Owner Marketing Generates Mortgage Leads

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One of the best ways to generate mortgage leads is through working with home sellers

who are going it alone as For Sale By Owner or FSBO.

The key to FSBO marketing is creating partnerships with home sellers. Since almost

every buyer needs a mortgage, you provide a necessary service that will enable

a seller’s home to be sold. Real estate agents traditionally refer buyers to loan

officers during the home-selling process, but with FSBOs, there is no agent. That

means the seller assumes the role of referring buyers to loan officers and that’s

where you come in.

Most sellers are not very familiar with the process of selling real estate and won’t know that they should require interested buyers to be pre-qualified prior to accepting an offer. Helping sellers understand that you can save them oodles of time by pre-qualifying their potential buyers is a literal gold mine. You could also prepare a flyer on a variety of loan types and payments for a mortgage on that seller’s home. FSBOs want to sell their home and, therefore, they will give your business card to everyone that comes through. That means fresh mortgage leads for you, whether for this property or another one.

The most effective way to secure relationships with for-sale-by-owner sellers

is to offer more than pre-qualification services. FSBOs need marketing help like

a free ad on a for-sale-by-owner website and promotion to buyer lists. They also

need sample contracts and disclosures, industry contacts like title companies

and appraisers, yard signs, and even home flyers. These items can be bundled together

into a „for-sale-by-owner kit,“ which can be offered to sellers in exchange

for the opportunity to pre-qualify all buyers showing interest in the home.

You can use a variety of sources to locate FSBOs in your area, including:

  • Local Newspapers
  • Yard Signs
  • Paid service that scours websites and newspapers every day

Some of the popular methods of contacting FSBO sellers are:

  • Phone
  • Direct Mail
  • Door Hangers
  • Web Links

Most FSBO sellers will be very enthusiastic about the services you can offer them and will gladly refer buyers to you. Additionally, the sellers themselves will most likely need a loan to purchase their next home, and, having established a professional relationship of trust with them, you put yourself in a great position to provide that loan. That’s another mortgage lead.

Immobilienmakler Heidelberg

Makler Heidelberg

Immobilienmakler Heidelberg

Makler Heidelberg

Immobilienmakler Heidelberg
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Source by Nate Garin

Improve Your Chances of Selling Your Home With Staging Tips

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Consumers today have the powerful merit of declining prices, giving the opportunity for them to afford to be choosy. As a consequence, sellers need to use every tool possible in order to attract the notice of selective buyers. Home staging has increasingly evolved into one of those tools that many sellers are using to reinforce their homes in a difficult competitive market. The targetof staging is to help increase the acknowledged worth of the home while at the same time making an atmosphere in which buyers can envision themselves actually living in the home. When selling a home it is critical for sellers to understand the moment they place their home on the market, it becomes a product instead of a home.

What do buyers look for most in this market? According to most stagers, buyers today are on the lookout for a home that is pristine. This suggests the outward as well as the inside.

there are many straightforward things that sellers can do on the outside of the home to make it more attractive and stand out to buyers. These steps include cleaning up around the home, cutting the lawn and freshening up the landscaping. Even some apparently little improvements can actually make a difference when selling a home. For instance, replacing the mailbox, adding new door knockers and applying fresh paint can have a strong impact.

Sellers should bear in mind the importance of making a first impression when it comes to tempting buyers. You just get one opportunity to make that first impression and it has to count.
It should be utterly immaculate. Roughly 90% of all house buyers now begin their search for a home on the internet. In fact, many prospective buyers become first curious about a home because they saw pictures of it online . This is very important especially in the Boise homes for sale market.

This means that if you are selling your house, you need to have about two dozen good pictures available online . There’s a direct link between having a sufficient number of footage of the home and basically selling it.

To help in promoting that concept, sellers should remove any private effects from the home such as photographs or any items that express the vendor’s personality or style. The best thing to bear in mind is that when you’re preparing a home to sell, less is always better.

While your eclectic style may appeal to you, keep in mind that it may not be quite so attractive to everybody.
Shockingly, this could make a massive difference in whether a home sells or not. Buyers must be able to see that they can fit their own stuff into the space for storing available in the home.
Keep an eye on the loo lids to be sure they remain closed, be certain the beds are always made, remove the washing from sight and take care that the dishes are cleaned and put away.
odors may also be a potential problem. To handle this problem ; air out the home continually. An offensive odour can actually drive buyers away. It could also help to place fresh flowers in the home or bake fresh cookies just before a showing.

Staging a home actually cannot guarantee a sell, but it can definitely help to convert disinclined buyers into interested buyers.
.

Immobilienmakler Heidelberg

Makler Heidelberg

Immobilienmakler Heidelberg

Makler Heidelberg

Immobilienmakler Heidelberg
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Source by Ben Paul

Property Management Advice – 7 Ways to Organize You Must Know to Rent Your Places Faster

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I can not tell you how many times in the beginning of my property management career a prospective tenant called and caught me unprepared. I quickly learned I saved 5 to 10 hours a week and rented more houses by being well prepared. Here are my best tips.

1) Application Forms

A property manager should carry at least 50 blank rental applications with him at all times. Quite often, you will find yourself listing a new rental house and have no applications to place in the kitchen. You want to have applications in the house so you are not always running to your car during a showing.

The property management company should also have the rental application saved on the computer in a format that can be emailed to your clients quickly. You do not want to limit yourself to just faxing or having them pick up the form from you. This is very quick and painless.

2) At least 10 Copies of Blank Leases

Quite often, you will approve a tenant and need to meet with them to sign the lease. On your way out of the office at the end of the day, you completely forget to print out and bring the copies of the lease. Even the most organized person gets side tracked. Having the blank lease in your car ensures you never show up empty handed.

3) Key Tags

You should carry a small box of key tags so you can label keys you receive from new listings/property owners. In the past, I would constantly forget which keys belong to which properties and have to throw them out. This means the rental could not be rented until I could get a maintenance guy out there to change the locks. With just a little extra discipline and tagging the key as soon as you receive it, you save yourself a bunch of aggravation.

4) Digital Camera

You should keep your digital camera in the car as much as possible to ensure you are ready for new listings. Half the time, new property owners have cleaned their property and it is ready to go. By having the camera ready you can simply snap all the pictures you need to advertise the rental on MLS or Craigslist.

5) Property Management Agreements

Just like the lease, you should keep 10 copies of your management agreement in your car. This will make preparing for a listing appointment much easier and less stressful. If you bring your camera, business cards, and the management agreement, you have everything you need to sign up the new owner. You also want to have the agreement in email format to quickly send to the owners over the Internet.

6) Pens and Business Cards

It is embarrassing to not have either one on a listing or leasing appointment. Professionalism is found in the details.

7) Organizer to Carry Everything

You can buy an organizer at Office Depot or Staples that can store all the items listed above. Some people prefer a briefcase but I personally use a black plastic box with hanging folders. Use whatever suits you but just have it all in one place in your car

Note: A prepared property manager will create an automatic task in Outlook or a Day Planner to refill all the items once a month. Getting organized is useless for your property management company, if you do not have a follow-up system to ensure you stay organized.

Immobilienmakler Heidelberg

Makler Heidelberg

Immobilienmakler Heidelberg

Makler Heidelberg

Immobilienmakler Heidelberg
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Source by David Lowrey

4 Key Considerations In Preparing A Professional Comparative Market Analysis (CMA)

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As a Licensed Real Estate Salesperson, for more than a decade, I have been asked countless times, why a homeowner is better off using a real estate professional, rather than trying to sell his home, on his own (FSBO). While there are numerous answers to this question, one of the most essential, is how one determines the best listing price, to offer for the property. Homeowners, often because of their emotional connection, while at other times, either, because of lack of specific, relevant knowledge in this field, or greed, may become their own worst enemy, because they either ask too little, or more often, too much. Doing either of these generally negatively impacts the eventual selling price. Let’s, therefore, consider 4 key considerations, which goes into effectively preparing a Comparative Market Analysis (CMA).

1. Look/ examine carefully; analyze thoroughly; consider the strengths/ weaknesses: This process must be done professionally, and consistently! Look at listing prices, but do so, more to see how listing either too high or too low, impacts the eventual sales price! The analysis must look at the actual price similar homes sold at, in the past few months. This period, especially in today’s market, must be a relatively short one! Also consider the specific property’s strengths and weaknesses, and other factor which might either make it more or less valuable than others. Also, know your competition (houses currently on market).

2. Houses sold last 3 – 6 months: What was the original listing price and what did it sell for? What style of house, and what condition, were the selected houses? How long was it listed on the market, before selling, and why? (Time on Market = T.O.M.)

3. Expired listings: Why did the homes, which did not sell (expired), end up that way? Was the undesired result, because of the listing price, market – place, or conditions, or for some other reason? It is important to know, how significant, knowledge must be, in every component of this evaluation/ examination!

4. Houses on market: When comparing the target property, to others currently for sale, on the market, do not merely look at pricing, but also consider/ evaluate features, location, etc. How does the specific house compare, objectively? Is it a better or less desirable location? How does the property lot compare (flat/ usable versus hilly), size, usable size, condition, curb appeal, etc?

Don’t merely compare, but do so, with knowledge and professional guidance! Since, for most people, their home is their most valuable asset, doesn’t it make sense to do so?

Immobilienmakler Heidelberg

Makler Heidelberg

Immobilienmakler Heidelberg

Makler Heidelberg

Immobilienmakler Heidelberg
Der Immoblienmakler für Heidelberg Mannheim und Karlsruhe
Wir verkaufen für Verkäufer zu 100% kostenfrei
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Source by Richard Brody

How to Write a Home Sale Ad

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Many people are choosing to sell their homes without a Realtor these days, a plan that can save you some serious money. Of course, your house has to actually sell before you can consider that strategy effective. Below are some tips and tricks for writing an ad that generates interesting in your house and, hopefully, leads to a sale.

o    Consider your ad options. Not very long ago, a real estate ad had only one purpose: to appear in your local newspaper. And while newspapers are still a great option, modern technology calls for a more far-reaching marketing strategy. The best place to start is by asking yourself where you would look if you were in the market to buy a home. The answer, for most people, is the Internet. It’s ideal becase you don’t need to leave your house to browse the selection, and it’s ready whenever homebuyers are. These are the same reasons you want your ad to be online, and there are plenty of for sale by owner (FSBO) websites that will be happy to run your ad. Newspapers, of course, are a tried-and-true option that shouldn’t be discounted, even with the Internet’s prominence. If you’re outside a major metropolitan area, make sure that your ad appears in your local paper, as well as a large daily in nearby cities; you never know when someone will want to move out of the city and into a more rural location.

o    Set the scene. It only takes a few words for homebuyers to grab the nearest phone and beg to see your home-or for those same homebuyers to turn the page without giving your house a second thought. Include basics such as the style (ranch, two story, etc.) and the number of bedrooms and bathrooms, but you also want to include descriptive phrases that help people imagine themselves living there. Make it easy on readers by spoon-feeding them gems like, „Spacious kitchen that opens into a great room-perfect for entertaining“ or „Remodeled master bathroom that recreates your favorite spa.“

o    Put a positive spin on things. It’s not okay to lie, but it is okay to make your house sound as charming as possible. If it’s not move-in ready, say something like, „Ready to be fixed up into the home of your dreams.“ And if you live in a neighborhood that has a less-than-desirable reputation-maybe it’s known for older houses without much space-be sure to convey how your house is different. Describe how your house sits on a big lot or the fact that you have an oversized garage that can be used as a workshop. Give homebuyers a reason to change their minds about the neighborhood.  

o    Create a winning headline. It’s the first thing people will read, so it has to grab them. Pick out the absolute best feature or characteristic of your house and make that the headline: „Upscale family living at a great price“ or „Sprawling country retreat with orchards,“ for example.

o    Include a photo (or two). While fabulous copy can create an attractive mental picture, there’s no substitute for an actual photo. When you have plenty of space-website ads and flyers, for example-include multiple photos of the inside and outside of your home. When you only have room for one photo, it should be the outside of the home, preferably taken on a sunny day. No matter what angle or space you’re photographing, the number one rule is „clean and tidy.“ Clear out all clutter before snapping a picture, and be sure the area is spic and span.

o    It’s all about the price. It’s astounding how many home sellers omit the asking price in their ad. Whether by accident or intent, it’s a mistake. It doesn’t matter how much someone loves your house, if it’s $100,000 over their budget, you’ve wasted your time and theirs because there’s no way they’ll be making an offer. Letting people know up front how much the house costs is both efficient and courteous. You don’t have time to field 20 calls a day from people inquiring about the cost, only to have them slam the phone down upon hearing it. You want to take phone calls from people who know the price, are comfortable with the ballpark, and want to set up an appointment to see it.

o    Keep it short and sweet. The paragraphs, that is. The best way to lose someone’s attention is to cram a lot of info into rambling paragraphs. Bullets are a great way to separate facts into easily digestible bites. 

Immobilienmakler Heidelberg

Makler Heidelberg

Immobilienmakler Heidelberg

Makler Heidelberg

Immobilienmakler Heidelberg
Der Immoblienmakler für Heidelberg Mannheim und Karlsruhe
Wir verkaufen für Verkäufer zu 100% kostenfrei
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Source by Jason Kay

Real Estate Leads – How To Get Free Real Estate Agent Leads

Kostenlose Immobilienbewertung

Real estate leads are vital to any agent or brokers business. Home sale and home buyer leads have always been an important part of keeping a real estate business moving forward. With the advent of the internet and more than 80-percent of home buyers going on-line to look for their next home, internet leads are one of the most important marketing avenues realtors and brokers need to be using to increase their listings and income.

What many real estate agents don’t know is that there are a handful of real estate lead generation companies that generate the majority of leads on the internet. In fact they generate so many leads that they don’t have enough real estate professionals to sell them to. In order to help the home buyer or seller who went to the businesses website the lead generation companies have been giving the leads away for free, at least no up-front cost.

To get the free leads the real estate agent has to agree to pay a referral for any closed translation. The reason many agents don’t know about these leads is because only one or two of the large on-line lead generation companies offer this free referral service because it requires them to have a licensed broker within the company.

These business leads are very helpful for a realtor starting in the business or a broker who has multiple agents under them. Also, agents who want to increase their marketing and number of closings each month can use these leads to increase their business. Typically the lead generation company wants 1 to 2 years of experience representing home buyers or home sellers but if they don’t have any agents in your area then they will most likely take any agent. For home seller leads it is helpful if the agents have a network of investors who can buy houses fast. Many home sellers who go on-line and complete home seller forms need to sell a home quickly for many reasons. Some have large amounts of equity which allows them to sell price their home for a quick sale. Others are behind on their mortgage and would love to have an investor buy their home so they don’t lose it to foreclosure.

If you are a broker or realtor and looking to increase your business I suggest signing up with one of the lead generation companies who offers a no cost real estate referral program. Typically these companies do not charge you any sign-up fee, monthly fees or cancellation fees, just a fee for closed transactions.

Immobilienmakler Heidelberg

Makler Heidelberg

Immobilienmakler Heidelberg

Makler Heidelberg

Immobilienmakler Heidelberg
Der Immoblienmakler für Heidelberg Mannheim und Karlsruhe
Wir verkaufen für Verkäufer zu 100% kostenfrei
Schnell, zuverlässig und kompetent


Source by Shaun Greer

Mortgage Brokers – Turn FSBOs Into Referral Goldmines With This Awesome Phone Script

Kostenlose Immobilienbewertung

Even with the housing marketing as crappy as it is, converting for sale by owners (FSBOs or also known as „fizzbos“) into referral sources is still an effective marketing strategy. Don’t make the mistake of thinking that you are only going for the opportunity to help that fizzbo get a purchase loan for his new home. The real goal is to develop a relationship with the homeowner so that you prequalify all of the potential buyer prospects interested in their home that’s for sale. Using a phone script will make this even easier.

Drive around your area and search for all the homes being sold „For Sale by Owner.“ And if your area is like mine, there should be plenty of them. When you find one, write down the address, phone number, and sales price if it’s available (if they have a flyer, even better).

Once you have collected several addresses and phone numbers, it’s time to make the phone calls. Because FSBOs are heavily targeted by real estate agents, the homeowner will probably be very resistant to your phone call. You have to break through that resistance as soon as possible. And the best way to do this is to tell them early that you are not trying to get their money. Once they know that none of their money is at risk, they’ll be much more open to talking to you. Here’s the script to use:

FSBO: Hello?

You: Hi. Are you selling the beautiful home on 15 Oak Street?

FSBO: Yes I am. Who am I speaking to?

You: My name is Ken Johnson from ABC Mortgage and I was wondering what your sales price is on the home? Oh, and what’s your name by the way?

At this point, the fizzbo will be a little taken aback. His resistance is still high because he knows you are from a mortgage company, but you haven’t said anything yet to make him hang up on you.

FSBO: Well, my name is Bob and I’m wanting to get $200,000 for it. Now, why are you calling me?

You: Bob, I can hear the agitation in your voice, and I can probably guess why its there. Since you placed that for sale sign in your yard, you are most likely getting bombarded with calls from real estate agents wanting you to list your home with them. I can promise you that I’m not calling about that.

FSBO: Really? Then why are you calling?

You: I want to create a win-win partnership with you. One in that you sell your home quicker and with much less stress, and you don’t have to pay me a single penny.

FSBO: Well, I could use any help selling this house faster. But what’s in it for you?

You: Typically, during the time a house is listed for sale, it gets interest from dozens of potential buyers. Almost all of the prospects will not buy that particular home. But they still want to buy a home and probably need financing to make it happen. It is those buyer prospects that I want to get business from.

FSBO: Ok, I see. But how will you help me then?

You: I’m glad you asked that. Did you know that when it comes to selling a home „fore sale by owner“, most of the transactions never get completed? Were you aware of that?

FSBO: No, I wasn’t. Why is that?

You: The number one reason that those transactions never get to the closing table is because the financing was not properly established by the buyers. So they will go look at homes that they just can’t afford (because they haven’t been prequalified by a mortgage professional) and then go making offers. This results in a lot of wasted time (and plenty of stress) for the homeowner.

FSBO: So you’ll help me by prequalifying the buyers interested in my home?

You: Exactly! By allowing me to prequalify them (at absolutely no cost to you), you will only have to deal with those prospects who are financially able to purchase your home. Besides weeding out all of those buyers who can’t buy your home anyway, the process of prequalifying eliminates those prospects who are just „lookers.“ You know, the ones who are always driving around looking at houses for sale, but never intend to buy them.

FSBO: Wow. So you’ll do that prequalifying for me, and I don’t have to pay you anything?

You: Nope. Not a single cent. I will make my commission from the buyers side. Does this win-win situation sound like a good idea to you?

FSBO: Yes it does. What’s the next step?

Once you have the FSBO onboard, everything else will be cake. Each FSBO relationship that you establish should be able to provide you with several buyer prospects. Having a few FSBO partnerships will generate a steady stream of purchase mortgage leads. And because the time to maintain them is minimal (its basically just prequalifying prospects once you have your partnership created), you can have a number of ongoing partnerships going on simultaneously. Just remember to come across as not wanting to get any of their money, and they will be much more willing to work with you.

Immobilienmakler Heidelberg

Makler Heidelberg

Immobilienmakler Heidelberg

Makler Heidelberg

Immobilienmakler Heidelberg
Der Immoblienmakler für Heidelberg Mannheim und Karlsruhe
Wir verkaufen für Verkäufer zu 100% kostenfrei
Schnell, zuverlässig und kompetent


Source by Joseph Pahl

Für Verkauf durch Owner Marketing generiert Hypothek führt

Kostenlose Immobilienbewertung

ist eine der besten Möglichkeiten, um die Hypothek Leads zu generieren durch die Zusammenarbeit mit Hauptverkäufer
, die es allein für Verkauf durch Owner oder FSBO gehen.

Der Schlüssel zum FSBO Marketing schafft Partnerschaften mit Hauptverkäufer. Da fast
jeder Käufer braucht eine Hypothek, Sie bieten einen notwendigen Service, die es ermöglichen
des Verkäufers Heimat verkauft werden. Immobilienmakler finden Sie traditionell Käufer um Darlehen
Offiziere während des Prozesses Haus verkaufen, aber mit FSBOs, gibt es kein Agent. Das
bedeutet der Verkäufer übernimmt die Rolle des Kreditsachbearbeiter Käufer auf und das ist
wo Sie Zoll

kommen, die meisten Verkäufer sind nicht sehr vertraut mit dem Prozess der Verkauf von Immobilien und wissen nicht, dass sie sollten Kaufinteressenten vorqualifizierten vor der Annahme eines Angebots benötigen. Verkäufer verstehen, dass Sie sie Unmengen an Zeit sparen können, durch Pre-qualifying ihre potenziellen Käufern zu helfen ist eine wörtliche Goldmine. Sie könnten auch einen Flyer auf einer Vielzahl von Kreditarten und Zahlungen für eine Hypothek auf Haus des Verkäufers vorbereiten. FSBOs wollen ihr Haus verkaufen und daher geben sie Ihre Visitenkarte für jeden, der kommt durch. Das bedeutet, dass frische Hypothek für Sie, ob für diese Eigenschaft oder einen anderen Namen führt.

Der effektivste Weg, Beziehungen mit for-Sale-durch-Owner Verkäufer
zu sichern ist mehr als eine Vorqualifizierung Dienstleistungen anzubieten. FSBOs marketing-Unterstützung wie
benötigen eine kostenlose Anzeige auf einem für-Verkauf-durchinhaber Website und Beförderung zum Käufer Listen. Sie müssen auch
Musterverträge und Offenlegungen, Branchenkontakte wie Versicherungsgesellschaften für Rechtsmängelhaftung
und Gutachter, Hof Zeichen und sogar Heim Flyer. Diese Elemente können gebündelt zusammen
in ein „für-Verkauf-durchinhaber Kit“, die zu den Verkäufern angeboten werden können im Austausch
für die Möglichkeit, alle Käufer, die Ihr Interesse an der Heimat vorqualifizieren.

Können Sie eine Vielzahl von Quellen FSBOs in Ihrer Nähe finden einschließlich:

  • Lokalzeitungen
  • Yardzeichen
  • kostenpflichtiger Service, die Websites und Zeitungen jeden Tag

einige der beliebtesten Methoden durchforstet der Kontaktaufnahme mit FSBO Verkäufer sind:

  • Telefon
  • Direct Mail
  • Türhänger
  • Web-Links

die meisten FSBO Verkäufer werden sehr begeistert über die Dienstleistungen, die Sie ihnen bieten können und wird gerne Käufer Sie bezeichnet. Darüber hinaus die Verkäufer selbst benötigen wahrscheinlich ein Darlehen an ihre nächste Haus zu kaufen, und eine professionelle Beziehung des Vertrauens mit ihnen festgestellt, Sie versetzen Sie sich in einer hervorragenden Position, das Darlehen zu gewähren. Das ist eine weitere Hypothek führen.

Immobilienmakler Heidelberg

Makler Heidelberg

Immobilienmakler Heidelberg

Makler Heidelberg

Immobilienmakler Heidelberg
Der Immoblienmakler für Heidelberg Mannheim und Karlsruhe
Wir verkaufen für Verkäufer zu 100% kostenfrei
Schnell, zuverlässig und kompetent


Source by Nate Garin

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