Posts tagged: homes

The collapse of the economy began with a reality wind blowing against the sub-prime mortgage house of cards. We are all living with the results of over aggressive lending practices and over active government intervention. With all these friends who needs any enemies?

As the market realigns, property valuations have plummeted. Some of you may even be “upside down” on your mortgages. Do you buy? Do you sell? Do you ride out the tsunami? This series will go through all the major questions that we normally encounter in determining the value of a property. What are the drivers? What are the inhibitors? What you need to know to get the best value.

What is Property valuation/real estate appraisal?

The purpose of property valuation is to provide a current market based value for a property in comparison to others in its immediate vicinity. So an appraisal is time, location and geography specific. It is a comparative value – not an absolute. Second, real estate appraisals are broken into two broad categories – residential and commercial. For the purposes of these papers we will be discussing strictly residential appraisals. Residential real estate appraisers are licensed by their respective states and have different levels of license levels based on the value of loan for the property. They have to take classes and pass certification tests to gain and maintain their license status. They are also usually bounded by county because of the way Multiple Listing Services (MLS) keep and sell their records. So a good appraiser really knows their geography and what to look for.

Why does it cost so much?

Real estate appraisers are traditionally independent contractors/business people – no appraisals = no money. So while you are paying a relatively standard one time fee (e.g., $400) they have to make sure they get as many appraisals in as they can to make any profit at all. How’s that? After all they’ve got your $400. An appraiser has to cover all out of pocket expenses the same as any business person (education, health insurance, MLS fees, liability fees, business insurance, state fees – the list goes on). In addition a good appraiser may spend anywhere from 3 to 6 hours in preparation (looking for comparables, etc.), have a 45 minute or more drive time to location, 2 hours driving comparables and taking pictures and then another 1 -3 hours writing the report and then if the bank wants more info or kicks anything back they have to invest the time to answer questions, etc.

Also, is they get your request from another appraiser or from one of these new rip off government created middlemen called AMCs – they may have to split the fee. These are all just the costs of doing business. So when someone stops by for 30 to 60 minutes with a tape measure know that it’s the tip of the iceberg and you’re getting a good deal.

Do I own the appraisal?

The person/company who owns the appraisal is the person who commissioned it. So if you are looking for a house loan, your loan company “owns” the appraisal, not you because they are the commissioning agent. Even if you pay the appraiser, it makes no difference – you did not set up the transaction. Why is this important? The appraiser can’t legally give you a copy of “your” appraisal – it’s not yours. If you request an appraisal for loan purposes you may find that it’s not accepted by the bank because they didn’t request it or they don’t know the appraiser. Catch 22 – yes but not made by the appraiser so don’t shoot the messenger. There are all different kinds of appraisals (home, land, cost based, estate, chronological, etc.) and they are not interchangeable. Make sure if you are going to personally request an appraisal you know what it can be used for.

Why do I need a new Appraisal?

The market is so volatile that you may require a new appraisal every 6 -8 weeks for some lenders. In the last eight months housing values have dropped up to 40% in some areas. This means a $1 million house could be going for $600k now. This has made lenders very uneasy and they require more documentation and proof of values than before. Of course they were also the companies that caused the problem – Catch 22 for us. Refinancing has become more challenging as appraised values have gone done so rapidly that people who can manage the monthly payments are penalized because the “value” puts them underwater. For sellers it’s even more emotionally challenging as they believe their homes have a higher value in the market than they do and they get upset, the real estate agents get upset because the deal doesn’t close and the bank says the appraised value I what it is. The appraiser gets attacked for the state of the market instead the banks who created the issue.

How to determine value?

Value is determined the recent sales of similar homes within a given geographic radius. This means sales, not pending sales; people can ask what they want but banks want to know what other similar homes sold for – don’t let your real estate agent mislead you. While the process is meant to be precise, “similar” is a very ambiguous term. Are we talking square footage, age, upgrades, tile vs. marble, pool vs yard, the variables can seem limitless. This is why online value services are worthless and if you pay for them you are wasting your money. Only a live onsite inspection can see and assess value properly. Lenders understand this. Geographic area is also becoming looser. Neighborhoods can change in character so rapidly that the normal radius for a comparable is 3 miles. However because sales have been so slow, comparables are fewer and fewer. Because the lenders require 3 -5 or more valuations per property, sometimes more; appraisers are searching outside the 3 mile radius for comparables. Bottom line – if you’re looking to sell in the next 12 – 18 months don’t do any major upgrades because you probably won’t get your money back. Do what you need to please yourself and that’s it.

Who’s on First in this process?

People who refinance a lot or were thinking about a refinance in the last 6 months often ask this. Remember in the whole real estate process – the bank has the power – no one else. The recent complaints by others and finger pointing at appraised property values is really a distraction as banks with their loan programs and compensation systems drive everything. Because the banks lent money so freely and caused the crash – they have swung 1800 away and are now hoarding cash. To justify this approach they are squeezing loan agents and appraisers for more and more documentation of value. This is especially ironic for refis – people who are already good customers but just want to take advantage of some good rates. Bear in mind that banks don’t have customers they care about for repeat business – you are a commodity. This squeeze play in the name of “making sure it doesn’t happen again” drives up appraiser and loan agent costs which cannot be flowed through to the borrower. If you’re a banker – no big deal – you’re going to get a federal bailout bonus or in the government where it’s basically “who cares it’s not my money” – these things are not important because you don’t really care about impact. BUT if you’re working for a living on $400 increments with no guarantees of where your next job is coming from – it means a lot. The other guy in the process, who used to be a silent partner is the government. They have enacted new legislation to “clean up” the valuation process when it was never broken to begin with. This has backfired into more regulation raising lending costs in the process – some of which has been passed on to the borrower. It has also stifled loan creation – so while still have money they can’t borrow because of government pressures. The psychology is beyond the normal mind to fathom. Everybody that is supposed to help likes to put more rocks in our backpacks as we go up the hill and tells us it’s for our own good.

It also produces lower quality valuations and appraisals. Example, Fannie Mae requires that all appraisals they get be from “certified” appraisers. Because the government requires banks follow suit. Now the difference between a regular appraiser and a certified appraiser is a couple of classes and taking a test. So let’s say you been an appraiser for 20 years, done thousands of honest appraisals, have an MBA and have an excellent reputation – guess what – thanks to the government your out of business until you get spend hundred to thousands more and take a test. But it’s the same job you did before. So now you get a valuation done by someone with little practical experience who happened to take a test but gets the work. That’s the answer to some of the basic questions you want to know in this market. If you’re in the middle of this process and frustrated take it out at the ballot box but don’t kick your appraiser – they’re just the messenger.

Most businesses overlook a very unique concept in marketing known as the Host/Parasite Relationship Model. This area of marketing makes everything a business accomplishes 100 percent more profitable. The Host/Parasite Relationship Models occurs when two businesses enter a joint venture for mutual gain. This essentially means two companies playing offer each other’s business for substantial profit.

The average business spends millions of dollars to connect with consumers through advertising and marketing. Most businesses want to build goodwill and develop a loyal base of consumers and prospects for its product or services. The cost of converting a new customer or prospect is immense. The host and parasitic business relationship allows parasite companies to garner new consumers and prospects by gaining endorsements and offering incentives to customers of other businesses. The parasite gains a highly targeted prospect group based off the established agreement while the host gains revenue without any costs of sales or overhead by receiving a certain percentage from parasite sales. This is a win-win for both parasite and host.

The mutual benefiting relationship between parasite and host allows different combinations of businesses that are synergistic to open vast areas of unrealized profit. For example, the parasite company can show the host company how to make money just by endorsing their company. The host makes money by endorsing another company and recoups the investments made in all business assets. The host also receives a stream of income by banking a percentage of the parasitical company’s future sales.

Consider This Scenario

A real estate agent can make money after a house is sold simply by using the host and parasitic business model. Most real estate agents miss out on a ton of opportunities to make more money after a house has been sold.

Once the escrow closes, homeowners never hear from the agent again. Real estate agents can increase their revenue by simply offering to arrange services to families new to a city or town. The agent would set the family up with every service in need and then receive a percentage of the sales from each company that sells something. The real estate agent at this point becomes the host by bringing companies to the family and getting a percentage of the profit.

The host and parasite relationship means going beyond the conventional sales and marketing routines and tapping into related products or services that costumers need, or offering products or services to other businesses customers in a related industry. The cost in targeting new clients and prospect is expensive. If the host and parasite concept is utilized effectively, a business can target other companies dealing with their type of consumers.

Honesty and Integrity

Sellers need an honest agent, one that will tell them like it is, even if it’s not the easiest to hear. This type of agent will lay out exactly what the seller can expect. From sale price to timing and more. In the end, honesty will save the sellers lots of worry.

Knowledge of Technology

Agents that can use technology with ease are going to be more up-to-date with the current market within the areas. They will most likely be more of an organized agent who has their business in order. This is the type of agent sellers prefer selling their homes.

Enthusiasm for Real Estate

Real Estate is a complex business. It is more than just enjoying HGTV and touring homes. Its requires knowledge of the local community, real estate trends and date along with sales and negotiating skills. The most successful agents love every aspect of Real Estate. When you have enthusiasm for the process, it will feed your clients excitement– and their trust in you. Therefore, enthusiasm is one of the most important characteristics of a great real estate agent.

Well Connected and Reputable

Agents should have a list of prospective buyers within the community and work with a well-known and well-connected real estate company. The more buyer and agents the Realtor knows the greater chance of selling the home quicker. Similarly, well-connected and reputable agents can expose the listings to potential buyers located out of state or internationally. International or out of state buyer are more likely to purchase a home from someone they know, trust and like. In other words, the size and quality of the agents’ network can greatly expand the pool of potential buyers, by putting the listing in front of out of state and international buyers. Testimonials from previous clients also influence the agents’ reputation.

Energy and Drive

To accomplish everything has needs to be done, everyday task, takes lots of energy and drive. In addition, organization. A typical day can involve meeting with buyers, doing listing presentations, putting up signage, showing homes, writing contracts, negotiating contract, attending meetings, keeping up with continuing education, and even moving around items in the home so they are out of sight for the listing pictures. Your drive and ambition, and probably your sense of humor, will keep you motivated throughout the week. Clients will note your energy and drive, just as they appreciate your enthusiasm for the business of Real Estate.

A Winning Personality

Most people expect their agents to have an outgoing personality. Do you have to be super-extroverted to be an agent? Not necessarily. However, one of the top characteristics of real estate agents is a winning personality-a personality that is pleasurable to be around.

Clients are looking for real estate agents they feel comfortable with, one that has traits that gel with their own. A personality that works with one client might not work with the other. In general, it is important to be likeable, friendly, and unafraid of putting yourself out there.

Backed by Local Date

An agent should know how to retrieve localized data and use it effectively. Local date points, including buyer demographics (who they are, where they are) and housing trends (top regions, average value of similar homes, home improvement spending etc.) can be used to price a home competitively, market appropriately, and negotiate intelligently.

Ready and Available

Real Estate is an unpredictable business, and you do not want to miss a sale or closing of a home because you were not available with someone showed interest on a property. Some agents prefer to work within a team of agents. This way, if the agent is not immediately available to respond an inquiry, another agent part of the team can take care of the interested party. Great agents are comfortable with constant communications and prompt replies to any inquiry. They are willing to communicate with phone, text, email and even after hours.

Attention to details

Top producing realtors are observant to details. They spot the smallest improvements that can make a home more marketable and desirable, take the best pictures that show case your home, create attractive MLS descriptions that stand out and make sure all the contract requirements are met in a timely matter.

Tenacity

Top producing agents do not give up easily. They will pursue every lead that shows even the slightest interest in a home. When a top agent hold an open house, they immediately contact everyone that visited the home to discuss the benefits of purchasing the home with them, this is what sellers appreciate about good agents, never give up attitude. They see it as every lead missed is a missed opportunity to sell the home and provide great service to the seller.

The Hester Prynne of literature might have worn a scarlet A to mark her past transgressions, but the house with too much wallpaper might be marked by a giant W in the minds of buyers. Wallpapering every room with pattern-intense wallpaper is a trend that goes in and out of vogue and was last popular in the U.S. in the 70s. Now, potential buyers who spurn its scarlet letter treat a home with too much of it with disdain.

Why Buyers “Hate” Wallpaper

Too much wallpaper can impact the sales price of a house, especially for the new generation of buyers who want homes that are “move in ready.” Previous buyers expected to remove unsightly wallpaper, repaint, and make minor initial improvements when they first moved in. Many buyers now regard what they don’t like as a deal breaker or as license to make a lowball offer for the inconvenience of changing a home to reflect their personal tastes.

Modern tastes tend to be more minimalist. Rooms with florals, plaids, or other prints on the walls and even the ceilings can be overwhelming and make a house look outdated. Large amounts of big flowers remind many people of their great grandmother’s house. Mirrored foils remind people of the 70s and 80s. Why wallpaper is such a big impediment to people often comes down two main factors.

First of all, many buyers have no vision and have a hard time imagining what a room would like without the wallpaper or with different paint. Even more than paint color, wallpaper is a reflection of personal taste. Real estate agents suggest that sellers make their homes more neutral to help buyers in seeing themselves in the space; even then, the result does not appeal to everyone.

Second, the older the wallpaper is, the more likelihood there is that removing it will be difficult. Some dry, strippable wallpaper from 20 or 30 years ago may come right off, but this is not always true, especially if the built-in glue was reinforced with paste. Other types of wallpaper bond to the wall, which makes removal challenging.

Does Wallpaper Impact The Ability To Sell A Home?

Some Realtors® note that whatever wallpaper is in place seldom meets the taste of a new buyer. Based on this, paint is safer. As a seller, should you remove the wallpaper in your house before you put it on the market? As you refurbish rooms, should you add new paper? The common wisdom is that you should be careful in your use of wallpaper when your main purpose is to sell your home. If you can, take it down.

Wallpaper can add a dramatic look to a room when used in moderation. Adding an accent wall of wallpaper that is coordinated to the paint color can make a room pop. Many interior designers recommend this technique. In cases where walls are in less than perfect condition, wallpapering with solid or textured paper can enhance the appearance of the room. Just make sure to select strippable paper.

Even if you’re selling, you can take advantage of the benefits of wallpaper. You just have to remember that you are preparing your home for someone else, not exercising your taste to make your home how you want it. When you move into your new home, you will once again have the freedom to craft your space for you and your family.

Evaluate Property Values

To help you decide on the amount of money to offer, find out what the property values are in a given area. There are plenty of locations where you can purchase condo sales. The prices can vary depending on the neighbourhood, square footage, and overall location. Those closest to the downtown area where there are shops and restaurants cost more.

As you compare the property values, you can get a ballpark figure of what they are selling for. You don’t want to offer too little or your request will likely be denied. You don’t want to offer too much though or you can pay more than you really had to. It is always a good idea to try to negotiate with the seller. You don’t have to give them their asking price.

If they decline your offer, you can decide to increase it or not. Think about your budget and stick to what you can afford. Don’t get into a competition where you have to have it for emotional reasons. You need to look for condo sales opportunities you will be able to afford month after month.

Financing
Getting the money to buy one doesn’t have to be complicated. It is a good idea to look into financing early on though. Make sure your credit report has accurate details so you aren’t blindsided in this department. Focus on paying down debt and avoiding incurring any new debt as you go through the condo sales process.

If you incur new debt, it can lower your credit score and make it harder for you to get a good loan. You need the amount to be reasonable so you can buy the condo you really want. You also want the interest rate to be as low as possible. This is going to influence your monthly payment. With high interest, you also pay considerably more over the life of the loan.

What is Available?
You have several options when it comes to condo sales. You may have to fill out an application to get approved for one based on a background check too. Look online for listings including photos and videos of the property. Look for signs about them for sale and even locations where they are still being built. It is possible to buy before it is completed!

You can work with a qualified real estate agent too. They stay on top of the various condo sales in the area. They can help you to find the location, price range, and set up you really want. They can also help you to navigate thought the price offering stages and all of the final paper work once you secure the deal! This is a much better option than trying to figure it out.

The reputation of the real estate agency should be very important to you. This information can help you to get your hands on what you want before someone else does. Due to the high demand for condos in this area, you can’t drag your feet. You need to be on top of the new listings as they become available.

Demanding consumers

“Internet buyers tend to be better informed on market conditions and better prepared to act on the home they want when they start working with a realtor. Luckily for realtors, these changes don’t necessarily hurt, as long as they are able to adjust to the new relationship and realize that the new-style buyers value speed and efficiency over guidance when finding a home.”

– E-marketer, Internet Home Buyers Changing the House Rules

Thanks to the Internet and other technological innovations, more real estate information is freely available than ever before. As a result, consumers are demanding new choices, improved services, faster transactions and lower prices. According to a recent NAR survey, the number of sellers stating that they didn’t want to pay a sales commission fee rose from 46 percent in 2003 to 61 percent in 2004. In 2004, 23 percent of Florida home sellers opted to sell independently without an agent, up from 14 percent in 2003 and nearly double the 14 percent national average, according to Planet Realtor.

And Web-enabled consumers are demanding a high digital IQ when working with real estate professionals. In addition to being well-versed on their own industry-specific technology, real estate professionals now are expected to utilize laptops, mobile phones, digital cameras, personal digital assistants and global positioning systems to keep pace with Internet buyers and sellers.

Downward pressure

“If consumers are going to do their own home-shopping online, they expect to save some money, just as they would for using the self-service lane. That’s why they are susceptible to online discount brokers and the new affinity companies that are promoting lower commissions if only the consumers will use their agents. These business models promote the idea to consumers that they ought to be paying less money in commissions.”

Realty Times Columnist Blanche Evans

Traditional real estate commissions, typically around six percent of a home’s selling price, are facing downward pressure from consumers and competition. Some consumers claim traditional real estate commissions don’t reflect:

– Today’s home prices. Years ago, when median-priced homes sold for $25,000, real estate commissions were typically five percent, or $1,250. Today, with South Florida median home prices around $300,000, the cost of a six percent full-service real estate commission becomes $18,000. Some brokers even charge additional fees to cover administrative costs. When you consider that today’s average homeowner sells a home every five to seven years, real estate commissions can dramatically impact your personal savings and net worth.

– Owner equity. When selling properties, most homeowners calculate the cost of selling as a portion of sales price, though the commissions are paid out of owner equity. (Equity is the difference between the value of your property and amount of mortgages owed.) Consider this example: You decide to sell a property for $250,000 in which you hold 10 percent equity, or $25,000. After paying a six percent commission of $15,000, you are left with $10,000 before any applicable closing costs. In this example, the $15,000 commission is six percent of the selling price, but 60 percent of the $25,000 equity.

– Services performed. Under today’s commission structure, selling a $100,000 house at six percent typically costs $6,000, while selling a $500,000 house costs $30,000. Does selling the more expensive home really require five times more effort? Your cost is the same whether the agent spends one hour or 100 hours marketing your home. This is one reason many real estate consumers find fee-for-service real estate so appealing.

Developing alternatives

“Consumers want what they want, when they want it and will gravitate to the most cost-effective source to obtain it. Why? Because our “one-size-fits-all” approach to working with sellers and buyers is archaic and won’t allow consumers to access various segments of help they need in a timely fashion. That’s why .com Web start-ups are finding a receptive audience in real estate consumers and why for-sale-by-owners are burgeoning.”

Julie Garton-Good, Author of “Real Estate a la Carte: Selecting the Services You Need, Paying What They’re Worth”

Until recently, you have had few practical alternatives to the traditional full-service, full-commission real estate transaction with a broker. Most sellers paid a single commission fee for a full range of real estate services, whether they needed them or not. Now traditional real estate agencies face the challenge of identifying new services that have value to today’s sophisticated online and empowered consumers.

One result is an “unbundling” of traditional one-size-fits-all real estate services for consumers who want more control over real estate transactions and their associated costs. If you’re willing to take on some tasks traditionally performed by agents and brokers, you could receive lower transaction costs. You might benefit from the following emerging alternatives:

Fee-for-services

“Consumers want assistance from real estate professionals, but don’t want to pay for it in the form of traditional commissions,” says a la Carte real estate Pioneer Julie Garton-Good. Garton-Good has been preaching the fee-for-services gospel for more than 20 years. As the name implies, you can choose which tasks you feel comfortable performing and hire qualified real estate professionals to do the rest. Many traditional real estate brokerages are beginning to offer a more menu-based service plan. For example, you may not mind listing your home and holding open houses, but you may want assistance with contracts and closings.

One-stop shopping

In response to dwindling margins and the rising costs of technology and lead generation, some real estate companies are attempting to combine traditional and Web-based services to provide consumers a single source for all their real estate needs. One-stop shopping sites generally provide or partner with lenders, insurers, title companies, real estate attorneys and others to facilitate all aspects of buying and selling. In addition, some sites are adding home-improvement and related services to stay in touch with consumers between buying and selling transactions.

Web-based discounters

Although many Web-based real estate companies flamed out in the dotcom era, scores of new companies have emerged to take their place. By offering targeted services such as flat-fee MLS listings, buyer rebates and AVM tools, these sites are appealing to independent buyers and sellers who prefer to take a more active role in transactions. In addition to listings, some sites also offer how-to articles and advice for those who choose to go it alone.

Tradition + technology + turbulence = opportunities

So, given the trends, changes and ongoing industry evolution, what can independent buyers, sellers and investors expect in this new era of real estate?

o The Web and other technologies will continue to evolve and transform the $1.3 trillion real-estate industry. Technology will continue to reduce the time, expense and complexity of manual processes, and increasingly sophisticated search and valuation tools will play a more strategic role.

o Free and low-cost real estate resources will continue to be available and even multiply on the Web. In real estate, knowledge truly is power. Consumers will try to use their power to gain more control of the real estate process and subsequently expect to be compensated in the form of reduced and fee-for-service commissions.

o The role of traditional real estate brokerages will evolve as Web-enabled consumers become more knowledgeable. This likely will trigger some restructuring and consolidation of traditional brokerages, but will also drive the development of innovative new practices targeting online and empowered consumers. Real estate professionals will focus more on promoting their local knowledge and industry expertise, while consumers will perform some buying and selling tasks on their own.

o Traditional real estate commissions and profitability levels will continue to face downward pressure from various sources. The future will be profitable for brokerages that are able to extend their core expertise of neighborhood and industry knowledge into flexible new consumer-centric offerings.

o The traditional high-touch, full-service real estate agency is evolving, not disappearing. Real estate professionals who provide exceptional service and value to their customers will always be in demand.

You now can find more real estate knowledge, tools and resources on the Web than ever before, enabling you to buy and sell with increased confidence. For real estate professionals, reinventing the industry means making hard decisions, changing processes and managing new opportunities. But for consumers, reinvention in real estate is a winner, hands-down.

Learn more at http://www.homekeys.net

What could you, as a real estate agent, learn from the conman who sold the Eiffel Tower twice?

Back in the good old days (the 1920s) there was a man named Victor Lustig who was a smooth-tongued criminal that went from one con to another, always looking for a way to separate people from their money.

He was involved in many scams throughout his career. But the scam that would make him famous throughout history involved the Eiffel Tower.

In 1925 Lustig, who was always looking for a new con, was in Paris and happened to noticed an article in the newspaper describing how the French government was having a hard time maintaining the Eiffel Tower. Being the consummate conman that he was, an idea popped into this mind. Why not sell the Eiffel Tower?

The first thing he did was have a counterfeiter create official government stationary and personally “appointed” himself to the prestigious position of Deputy Director General of the Ministère de Postes et Télégraphes. Then, letters were sent out on the official looking letterhead to five different scrap iron dealers; they were purposely vague and simply invited them to discuss a possible government contract.

When everyone arrived for the meeting, and after entertaining the men for a bit, Lustig made the surprise announcement that the government was indeed scrapping the Eiffel Tower.

He noted that the tower had been built in 1889 and was never intended to be a permanent structure, which everyone knew was true. He mentioned how the government could no longer afford the upkeep, something that the men had already read about in the paper. The paper had mentioned that the Eiffel Tower was in great need of repair, the cost was very prohibitive, and there was a brief comment that the government was actually exploring the idea that it might be cheaper to rip it down than to repair it. He was careful to stress that this was a very controversial decision on the government’s part, so the men had to keep quiet regarding the tower’s demise or risk public outcry.

Lustig then arranged to take each man on a tour of the tower to establish rapport, determine their emotions and select his “mark”. After interviewing each scrap iron dealer he selected a man named André Poisson and worked his sales magic.

After the sale was complete, Lustig immediately left for Austria. He made no attempt to hide and lived the life of luxury at Poisson’s expense. Each day, Lustig checked the Paris newspapers for news of his con, but it was never reported in any of the papers. He concluded that Poisson was too embarrassed about falling for the con and had decided to eat his loss. Knowing he was in the clear Lustig headed back to Paris a year later and pulled the same exact scam again.

Yes, you read it correctly, Lustig sold the Eiffel Tower a second time! But he wasn’t as lucky that time around. His mark went to the police and the story exploded in the press. Lustig was forced to leave Europe and head to the United States. There would be no third sale of the tower.

What does this conman have to do with you as a Real Estate Agent? Well, a lot actually. While selling the Eiffel Tower Lustig used specific techniques that Natural Born Sales people use; sales techniques that you should be using too.

Con-men and natural salespeople have exactly the same abilities. However, there is one significant difference between the two and that is intent. Con-men use these techniques of psychology to harm people in a win/lose proposition. The conman wins and the person they are working with loses… sometimes everything.

On the other hand, the Natural Born Salespeople use the same techniques to help people in a win/win proposition, helping their clients obtain their dream and buy a home, while becoming the top 10% of real estate agents doing it.

They are both experts at using psychology.

They are both experts at using the client’s emotions to sell.

They are both experts at using and gaining rapport.

They are both experts at finding out what the client’s unconscious mind wants.

They are both experts at finding out what emotions are driving that person and using those emotions to make a sale.

The difficulty comes when you try and get a natural born sales person to teach you to sell like them, and they can’t. They can’t because most natural born sales people have absolutely no idea how they do what they do. It comes naturally to them and they don’t even have to think about what to do to make a sale. This is why many top sales people make the worst trainers. They can’t teach what they do.

Now for the good news. These psychological sales techniques can be learned and mastered, and once mastered can propel you to the top.

For example, one psychology of sales principle is that people buy based on emotion and justify with logic. I am pretty sure you are even familiar with this principle, but do you know how to use it to make sales?

Imagine if you knew exactly how the principle worked, you could use it to help your clients while becoming a better agent yourself.

One of many natural skills, sales professionals and con men use, is to listen and ask questions until they understand exactly what the person wants, not only consciously, but more importantly unconsciously. This is one of the biggest mistakes many, if not most, real estate salespeople make, they listen but they don’t really understand.

In a sales situation, and even in everyday conversation, people use “Code Words”. For example a client might tell you that they are looking for a house with a view. The word “view” is a code word. You might think you know what it means but you really don’t. You understand what “view” means to you but not what it means to your client.. The Natural Salesperson instinctively knows they don’t know what “view” means and are able to extract the real meaning from the client.

Not too long ago this happened to a brand new agent I was working with. I was teaching her about code words. She seemed a bit confused at first and then suddenly you could see the light came on in her head. She told me that over the last couple months she had been working with a couple looking for a home. She had asked them what they wanted and they told her a house with a view. With that in mind she kept taking them around and showing houses with views. The agent happened to live in the Great North West where there are killer views of the mountains, valleys, and rivers, so there was a lot to pick from. But no matter what she showed them the wife was never happy.

One day while showing them a houses, they passed a neighborhood and noticed a sign leading to a house that had just that day gone on the market. They decided to call the listing agent and were able to go see it that day. While going through the house the wife commented on what a great view the house had and the agent was shocked because the house was completely surrounded by trees, and there was no view! The agent, while looking out the window at all the trees, asked what she meant and the wife said, “I can’t see any cars”.

For months the agent had tried to find a house that had, what the agent considered, a view, but it was never what the wife considered a view, and the agent was clueless. By “view” the wife meant she wanted to be able to look out the windows and not see any of her husband’s cars, equipment or tools… that’s what a good view meant to her.

Maybe if you understood code words and the other techniques used by the Natural born Salesperson you’d be able to sell the Eiffel Tower too. And if you could sell the Eiffel tower a couple times when it wasn’t even for sale think of how many houses you could sell that are.

Oh and as for our conman Lustig, he ended up dying in Alcatraz prison (where he was sent after being convicted of a counterfeiting scheme) and his death certificate listed his occupation as salesman.

Not all people are interested in buying homes as a means of living in them. They may want to buy homes as investments that they can make profits off of in the long term. If you are looking to sell your home you should think about what property investment buyers can do. You should be aware of the three types of these buyers when checking them out.

The cash property buyer is the first of these buyers to check out. This is a buyer that works in that the buyer will purchase a home or other type of property at a certain cash value. This is a value that will be below or under the properties current market value. This type of buyer is generally someone that is simply looking to get a good long term return on the home.

In most cases a cash property buyer should be able to take over your home without any real serious delays. This comes from how the buyer will have funds ready through various sources including profits from prior home sales. As a result the transaction should not take too long thanks to the money being readily available for handling the expense of the entire process.

The second buyer that you should check out is the buy to let investor. This is an investor that arranges a mortgage on a property so that the investor can buy the property and then rent it out.

A buy to let investor will have to use a larger deposit for a home when getting one. This comes from how the investor is going to have to arrange the mortgage that is involved with the transaction. As a result a deposit of more than fifteen percent will be required for this buyer in order to get a transaction to work. In recent years the credit crisis has forced these investors to have deposits of twenty-five percent or more ready primarily as a means of making sure that the investor is a legitimate one. Because of these factors many of these investors are going to be looking into some properties that are less expensive.

The third option to see among property investment buyers is a developer. A developer works to investor in properties with the intention of reselling or refurbishing them in cases where there is a potential to get some good profits off of them in the long term. This comes from how the developer can work to convert the property into a variety of different things. These can include such options as flats to let or retail stores. As long as there is a potential to earn money off of the investment the developer will be interested in buying it up from its previous owner.

Although these three options are great ones for you to see you should be aware that in many cases a buyer will make an attempt to renegotiate the price of the property you are selling. This is especially in cases where you are close to getting your contract exchanged with the buyer. This is done primarily as a means of getting more money off of a property. Be aware of this when getting your property sold.

The three types of property investment buyers listed here are all good buyers to think about when selling your home. You can work with cash property buyers, buy to let investors or developers. Either option will help you to earn money from your home and to get your property sold off with ease. Be aware of all benefits and risks that can be involved though.

There are times when a real estate lawyer is extremely helpful in managing your property ownership. Although many realty transactions are handled through listing agents, there are occasions when these representatives’ knowledge base just is not adequate. Realtors typically attend training for less than a year, while attorneys are required to attend law school for four years post-college. The extensive training of an attorney gives them the ability to advise clients on an array of subjects.

Contracts are complicated documents, to say the least. The language in a realty contract must be gone over with a fine-tooth comb. Even if an individual carefully reads every word, some of the language can be quite confusing. For one thing, these documents are written in legal-speak, which is not something the average citizen has experience with. Furthermore, property sales are not only complex financial maneuvers, but also often involve emotional upheaval. When people buy or sell their homes, it can tug at their heartstrings. It is easy to miss something in a heavy legal document when you are purchasing your dream house or selling a beloved home. A real estate lawyer is a level head who can help clients navigate the bumpy waters of acquiring or releasing a “home sweet home.”

Property boundary disputes are another area where having a seasoned real estate lawyer on your team is a major plus. Imagine you buy a cabin in the woods. With no fences or close neighbors, you may be under the impression that you are king or queen of the forest, that is, until a neighbor shows up claiming he has inherited the piece of land right behind your house. When conflicting claims arise regarding boundary lines, it is necessary to have a land survey performed, records checked, and a knowledgeable attorney on speed-dial.

Tenants and landlords also need guidance in the vast sea of property negotiations. Both the landlord and tenant have certain rights, and these rights vary from state to state. For example, in some states, a landlord must give 48 hours notice before entering the property, or a 5-day notice if eviction seems imminent because of unpaid rent. A renter has the right to privacy in his or her rental space, provided certain stipulations are met. Sometimes misunderstandings occur and it takes a trained legal mind to effectively sort everything out. When a person’s home is involved, whether the residence is owned, leased, or rented, contractual language must be followed to the letter of the law.

When a real estate lawyer goes to school, he or she learns about leases, purchases, and sales of property. Lessons also are taught on zoning, tenancy agreements, eminent domain, and mortgages. In addition to classroom academics, attorneys gain valuable experience by clerking in law offices and spending time in courtrooms. When push comes to shove in the world of property, wouldn’t you rather seek guidance from a professional who has trained for years rather than none?

The Boston Condo Market has been on a mega rebound over the past few weeks. Downtown inventory rates have dropped significantly and prices are still climbing. Many Boston condos that we have been tracking over the past few weeks have went under agreement at full or over asking price showing the stability & possible frenzy in the 2007 Boston real estate market.

Last week we all read about the real estate frenzy going on in Manhattan right now. Is it the buyers who have been waiting for the bubble to burst over the past 18 months and now are faced to purchase now or rent for another year? Is it the low interest rates that are still active in our marketplace? What is causing this new renewal of the Boston real estate market?

New condo developments in Boston are also on the hot seat. With even more projects coming up this shows the lack of luxury condo properties or full service condos. We are glad to see more of this type of condo property being built as it is the wave of the future. The Back Bay, Beacon Hill, Brighton Allston, Charlestown, Chinatown, Fenway, Leather District, Midtown, North End, Seaport, South Boston, South End, Waterfront and the West End in Boston are all hot and downtown Boston will continue to boom.

Not surprising, some immediate suburbs like Brookline, Newton, Medford & Quincy are also picking up on this trend. Traditionally these markets don’t cater to the full service young professional, however, we are seeing all new types of luxury condominium properties popping up around the skirts of Boston also.