Real Estate Investing Opportunities

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Most people feel that they don’t have enough money or are not qualified to invest in real estate, however most people are well qualified and have far enough money to make a real estate investment. Where to begin is a question of concern, but there are a few things to pay close attention to. The two main strategies in real estate investing are long and short term, and they appeal to different people. A long term hold, where you pay off your mortgage and collect interest over a long period of time, which is more reliable and consistent, and a short term buy and flip model for people interested in benefiting in today’s distressed real estate market.

Believe it or not, more millionaires were made during the great depression than any other time in history. This is because they saw opportunity where others saw nothing, and swooped up real estate properties that later gained tremendous value. Although we’re in a much better situation now than we were in the great depression, the real estate market is in a similar situation. Low property values with no signs of increased growth make it quite unattractive. However 30 years down the road, the investments that would be made today are almost certain to be good ones.

Talk to your local real estate broker about real estate investing options, and ask what they think of the situation. I can almost guarantee they will advise you to invest if you have the cash to do so.

A Whole new face for residential real estate by 2010?

A whole new face for residential real estate by 2010?
Mark Nash Realty News Online

With all the scrambling for a part of the $67 million dollar real estate commissions paid annually, new faces are entering the residential real estate business to capture their share and being rewarded for it by real estate consumers. The keepers of the old real estate business model don’t like it, and while they focus on keeping it the old way, new business models are taking market share and commissions.

Real estate trade organizations have staged an aggressive and successful campaign to keep banks out of the real estate sales business. With all the power that banks have in Washington, many consider it a matter of time before banks become strong competitors in residential real estate. They will cross merchandise mortgages and other financial products to real estate consumers.
In fighting within the real estate community over Virtual Office Websites (VOW’s) and referral fees, will keep the traditional players distracted, others hungry for commissions and referral fees will continue to capture market share and commission income slowly but consistently. Local boards and Multiple Listing Services are experiencing upheaval as memberships fracture over VOW’s and member services.

National real estate franchise management’s have released figures in the last year quoting their net profit per transaction between $135-$175. As the squeeze for profits increases look for brokerages to chase the last bastion of income and profits: the real estate sales agent’s commission. See my story from July 30, 2003 on how commissions are paid. Salaried agents will become the norm as brokerages shift from a commission to salaried compensation to boost profits. This migration in compensation will fundamentally change the real estate sales agents demographics and the brokerage business model.

As the residential real estate industry transitions for the first time in forty years, many real estate consumers yawn and look forward to a more professional consumer focused real estate experience. They look forward to fee-for-service and other options than the traditional model they are gladly being driven away from by new real estate business models that focus on the consumer as “the keeper of the information”.

This post was written by Mark Nash and originally appeared here

Realty Agents Don't Ask Don't Tell?

Realty Agents: Don’t Ask Don’t Tell? 

2005 Homebuyers and sellers plan strategy in January.

Internet empowers consumers in evolving real estate industry.

Real estate insider book equates don’t ask; don’t tell with real estate business. Seasoned writer Mark Nash wrote the easy-to-read cliff notes for property consumers based on his experience as an award winning Realtor® in Chicago. South-Western/ Thomson recently published 1001 Tips for Buying and Selling a Home by Mark Nash.

Real estate agents long the keepers of the information, are loosing their control position over consumers with seventy-five percent of home-buyers starting their search on the Internet before contacting an agent. Affirming this new consumer-centric model Nash explores all the “do’s and don’ts that would make generals in the military blush as deeply as managing brokers of real estate offices.

Visit http://www.1001realestatetips.com for a look inside this new book.

Realty Agents: Don’t Ask Don’t Tell? By Mark Nash

Real estate stories radiate from the water cooler and cocktail parties like a brush fire out of control. Like early stages of fires, real estate transactions start out manageable, but occasionally real estate consumers fan the flames because of inexperience, and some real estate agents misplace the water buckets. How can consumers be more proactive before the fire starts? By asking qualifying questions of realty agents to determine if they carry a fire extinguisher in their briefcase.

Under license law whom do you have a fiduciary responsibility to?Ask this question the first time you speak with a real estate agent. In some areas all agents have a fiduciary responsibility to the seller under license law, even if they are working with a buyer. In other areas unless you have a signed buyer representation agreement your agent under law must represent the seller. To add to the confusion, some states require agents to have a fiduciary responsibility to whom they bring to the transaction, be it the buyer or the seller.

How are you compensated?The majority of agents are independent commissioned-based contractors of the brokerage with whom they’re affiliated. Real estate commissions vary from one to ten percent and can’t be fixed under anti-trust laws. The broker through a listing agreement with a property seller is paid a commission, who compensates the buyer’s broker cooperatively. Require your agent to show you properties that offer lower than normal cooperative commissions. If you retain an agent under a buyers broker agreement, you will compensate your agent’s broker. Brokers split their commissions with their agents usually keeping 5-50 percent for the brokerage and compensating the agent with the remainder on a sliding scale based on previous sales volume. This is known as the “commission split”. Agents can only be compensated by their broker and can’t receive compensation directly from attorney’s, home inspectors or any other non-broker under the Real Estate Settlement Act.

Do you show all available properties in the market I’m interested in?You want an agent to show you all available properties listed by all companies. The problem with being shown only the agent’s or their companies listings is two fold. If you decide to purchase the agent’s listing, in most cases they will become under real estate license law a “dual agent”. State laws restrict what a dual agent can and can’t do for both sides in a transaction. Dual agency benefits the agent by doubling their commission, and offers no benefits to either the seller or buyer. When you purchase a property that is listed with an agent in your agent’s office it is known as an “in-house sale”. If you can be confident that the two in-house agents are acting in their respective clients best interest and the agents are not being awarded a bonus for selling an in-house listing, than you could proceed. Require your agent to disclose to you any property that they show you that they have an ownership interest in. Your agent should always show you For-Sale-By-Owner properties, isn’t it about your housing needs being met?

Are you a Realtor®?

Not all real estate agents are Realtors®. Industry sources report that there are 2.6 million real estate agents nationally. Only 1.1 million are Realtors® or members of the National Association of Realtors®, who are required to have ethics training which defines their obligations to clients, customers, the public and other Realtors®. Working with a Realtor® adds another option for dispute resolution should you need it.

Have you been disciplined by your licensing authority?All real estate agents are licensed in states where they sell property. Ask to see their current real estate license. Find out the name of the department in your state government who regulates real estate agents, go on-line to the website to look up information about your agent’s license status, including disciplinary actions. Most brokerages require real estate agents to have errors and omission insurance, ask your agent if they are covered under this type of policy.

How long have you worked full-time in real estate?Your home sale or purchase is one of the largest assets you own. Would you use a new or part-time accountant to fight the IRS? It takes an experienced full-time agent to be up-to-date on market inventory, documentation and property histories. Using a rookie or part-time agent is the best way to fan any real estate transaction fire.

Will I be working exclusively with you during my property sale or search?You want one person who has been with you on all aspects of the sale or a purchase of a home. You should not get passed around from one half of a real estate team to another, to a personal assistant or a back-up agent when your agent is unavailable. You are focused on your home search or sale and so should you real estate agent. Your agent should accompany you to all property showings, how else can they see your reactions to better prepare for later? If the personal assistant is assigned to do your final walk-through and didn’t attend the home inspection, they might not be prepared to assess the contractual repairs or changes in the property condition. Always ask a potential agent if they are planning to go out of town during your purchase or sell timeline.

Will you answer all my questions truthfully?The real estate market is not always hot, great or fabulous. And yes, sometimes there are better times than now to purchase a home. Real estate is like any other market that is based on supply and demand. Verify all information on a property-listing sheet. Look for disclaimers on the bottom of property feature sheets that state all information is not guaranteed. Measure room dimensions; verify square footage, taxes and assessments. Agents in most states are allowed to promote or exaggerate but not intentionally mislead or lie. Whether buying or selling ask your agent what the absorption rate is for your home parameters. This will give you an honest market indicator of what’s happening in like-kind properties. How to figure absorption rate: Example: Like kind by style, price, single-family, $200,000-$300,000, number of homes currently for sale:100, sold last 12 months: 50, 25 sold in last 6 months: 25 sold in last 3 months: 25 months of inventory available.

Looking to buy or sell real estate soon?Join the 85%* of real estate consumers nationally who will use a real estate agent in their next transaction. The Internet has been a welcome resource to consumers in a business sector that has been dramatically impacted by the Internet similar to the travel industry. The Internet has removed agents from the front line of real estate consumer’s paths and the National Association of REALTORS® has the numbers to prove it. No longer the keepers of the home information, over 75%* of all homebuyers start their search on the Internet before contacting a real estate agent.

The age of the consumer has belatedly arrived in residential real estate. Most agents work hard to qualify their clients, but the new reality is you should qualify your next real estate agent.

*2004 National Association of Realtors® Profile of Home Buyers and Sellers

This Post was written by Mark Nash and originally appeared here

Corvallis Oregon

I recently stayed in Corvallis Oregon at the Harrison House Bed & Breakfast, and I was quite impressed by my visit and the town of Corvallis.  Everyone I met was upbeat and friendly, there were places to visit and things to do everywhere, and everything seemed to have a good vibe.  I don't know if it was because of the nice weather I had, or if it was something else, but I thought Corvallis would be a great town to raise a family, go to school, start a career, or all of the above. If you're looking for a place to live or just a fresh start, I would highly recommend Corvallis. I know the state of Oregon is one of the top places to live at the moment, and I would take a look at some Corvallis Oregon real estate just to see what's available.