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For most of us, the value of our family home, represents our single – biggest, financial asset! Therefore, wouldn’t it, make sense, to hire, someone, who might make the biggest difference, in your results, from easing the process, to getting the deal, transacted? However, since, many find this period, stressful, etc, quality teamwork, and mutual trust, are essential (what is often called, being, on the same – page)! Before hiring someone, ask yourself, why do you (or don’t you) trust that individual, and what is needed, for a real estate agent, so he EARNS that vital bond! With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, using the mnemonic approach, what this means and represents, and why it matters.

1. Empathy; emphasis; efforts; excellence; endurance: It’s wise to thoroughly, interview potential representatives, before deciding, who, to hire, as your real estate professional/ agent! During this process, consider, whether the individual, is ready, willing, and able to effectively, listen, far more than he speaks! Does he seem to be able to customize his discussion, or, does it seem, like he is using some sort of script? Only, when you hire someone with genuine empathy, will he proceed with the understanding of your, specific needs, and priorities, and place his emphasis, accordingly! Are you convinced, he will place his efforts, on proceeding, with quality, and excellence, instead of the same – old, same – old? Since, there are often, obstacles, and challenges, you should seek, someone, with the endurance, persistence, etc, to make a difference, for you!

2. Attitude; aptitude; articulate; attention; actions: Great agents possess a positive, can – do, attitude, combined with a well – developed, aptitude, and skill – set, to serve their clients! Paying keen attention to details, articulating a message, which inspires potential buyers, to seriously consider, and bid, on your house, and proceeding with the best strategic and action plans, and, proactively, taking the actions, which produce results, are essential, to earning trust, and respect!

3. Responsive; region; relevant; reliable; responsible: To earn your trust, an agent must be responsive to your specific situation, etc, and produce, reliable, responsible approaches, to achieve, the finest possibilities, and results! To do so, he must know you region/ area, in – detail, and proceed, forward, in the most relevant way!

4. Needs; neighborhood: No two people, are exactly, alike, and, thus, it’s important to address the specific client’s needs, and priorities! In addition, he should be a neighborhood – expert, so he provides the best combination of knowledge, marketing, and input!

5. System; solution; service: Examine an agent’s suggested system, and consider if it addresses, and produces a quality, viable solution, to serve your best interests! The finest agents, consistently, provide the best service, etc!

Before hiring a real estate agent, do all you can, to ensure, he EARNS your trust! That’s the best way, to protect, your enormous investment, in your house!

Life’s Experiences, Lessons learned, Classes taken, Books and Articles read, and then summarized for your viewing pleasure in the following article on Commercial Real Estate Negotiating tips

1. Don’t let contract negotiations go back and forth more than twice – the more back and forth, the harder it is to get a deal done. Round 1 and both are focused on the sale. Round 2 and the focus changes to money. When you get past Round 2 parties can begin to nitpick, start to resent each other and lose focus. Issues can then become personal.
2. Focus on completing the sale. Don’t get sidetracked by emotions, unimportant details, unforeseen challenges or difficult situations that arise.
3. Endeavor to put all contract offers and subsequent pertinent details in writing. This avoids the misunderstandings, misrepresentations and omissions that typically accompany verbal communications and lead to a breakdown in the process.
4. When you give a concession, ask for something in return. You might not always get it but the fact that you’ve given in on an issue ought to give you the standing to ask for and often times receive something in return. Just by asking and not receiving you avoid the other side continuing to ask concessions of you and your Client.
5. It’s best to not take the first offer too quickly or too easily. Wait at least a few hours. When talking about it with the other Agent don’t talk about the ease of getting the property under contract. The other side will immediately think they made a bad deal and from that point forward the closing process can become more difficult than it should be.
6. If you get to an impasse, change the focus and resolve less complicated issues. Then go back to the difficult ones. The process will go smoother and once you have worked through the easy ones, momentum will help get things finished.
7. If you aren’t sure how to reply to a request or if you know the answer but want to soften the blow, use the “limited authority” approach. “I’m not sure, let me check with my Partner”, or “Let me take a look at such and such data” so that you can better provide a more meaningful reply.
8. In order to support your position, rely on precedent. Suggest that this is the way that issues like these are typically addressed or that you’ve done such and such before with great success.
9. Ask the other side for something that isn’t critical to making the deal so that perhaps you can trade this item away for something more important to you.
10. Negotiations are a process. It doesn’t matter how quickly you want things to move, the process will move based upon the comfort level of your Client. Maintain focus, but keep in mind that the process will most likely not move as fast as you want it to.
11. Stay away from high pressure tactics including ultimatums, demands or anything that sounds final and/or threatening. Most of the time it doesn’t help and it can lead directly to emotional responses that then creates animosity.
12. Work towards a win / win. In order to have a successful negotiation, both sides need to win on some points. Give and take. Strive to achieve most of your goals understanding that the other party is trying to do the same.
13. Present all of the facts to your Client. It’s your fiduciary duty as a Realtor to apprise the Client of all related facts to the negotiations – good and bad. Don’t push for the higher dollar offer if other terms of the offer put the Client at undue risk.
14. Remember who you are negotiating with. Sooner or later you’ll be back at the table again with the same Agent. Don’t burn any bridges by transacting in a less than professional manner.

Real estate investing is satisfying and lucrative, when done right. It can help you diversify your investment portfolio as well as generate extra income. Many of the real estate investments don’t require you to deal directly with tenants. Also, you can purchase a property by paying only a fraction of the total price and then clearing the balance and interest over time. Here are four real estate investing options.

Rental Properties

Investing in residential rental properties can be great, especially for individuals with renovation and DIY skills, and have the fortitude to deal with tenants.

Pros

• Provides regular income
• Properties can appreciate
• You can optimize capital through leverage
• Many of the expenses are tax-deductable

Cons

• Managing tenants can be tedious
• Vacancies can reduce income
• Tenants can damage property

House Flipping

You can purchase underpriced properties that need a bit of an upgrade, renovate them inexpensively and then resell them at a profit. House flipping, however, comes with some risks. First, your estimate of repair costs must be precise, which is not a simple thing to do. Second, the longer the property is in your hands the less money you’re likely to make because you’ll be paying a mortgage without it generating income.

Pros

• Ties your capital only in the short term
• Potential quick returns

Cons

• A hot market may cool unexpectedly
• Requires deep industry knowledge

Real Estate Investment Trusts (REITs)

REITs are traded in major exchanges, similar to stocks. A REIT comes into being when a trust/corporation uses investors’ money to buy and manage income-generating properties. To maintain the REIT status, 90 percent of the taxable income of the trust/corporation must be paid out as dividends. REITs can enable you to invest in nonresidential properties, like office blocks and malls that, may not be capable of purchasing directly.

Pros

• Highly liquid because they can be traded
• They are in essence dividend-paying stocks
• The holdings are typically cash-producing long-term leases

Cons

• Doesn’t offer the leverage that’s usually available in traditional rental property investing

Online Platforms

These online platforms link investors with developers who need capital for their real estate projects, either through equity or debt.

Pros

• You have the option of investing in a single project or a diverse range of projects
• Geographic diversification

Cons

• Typically illiquid and speculative
• Management fees

Conclusion

The four real estate investment options available to investors include rental properties, house flipping, REITS, and online platforms. Ultimately, the ideal real estate investment opportunities are those that align with your investment goals.

Are you operating your own rental portfolio? Are you tired of investigating your tenants and checking them out fully to make sure you are getting solid income streams?

Are you trying to find properties where numbers work? Do you think it will be wiser to work out a deal with a professional property manager to limit the liabilities your real estate business is creating?

Are you managing forward-looking assumptions regarding bad debt, delinquencies, concessions, vacancy, rent growth, etc. all impact returns and yields?

Are you embracing technology and don’t know how to start working on your online presence?

Property investing may not be rocket science but you can be bogged down with the various challenges of the day-to-day transactions.

Real estate may be a multifaceted and dynamic industry that evolves quickly and there will always be a handful of problems in such an erratic sector you have to navigate, but dealing with these challenges is not at the top of your list of priorities.

Don’t fret.

You can delegate. You can have your peace of mind.

So you can focus on the most important stuff in your real estate business and free your time working on what you love and what you’re good at, you can delegate two important roles:

1. Lease Administration
2. Dedicated Staffing

Yeah, this the smartest way to run your property investing business nowadays.

OUTSOURCE.

Why should you outsource your real estate investing needs?

• To simplify your property investment

You can demystify your property investing if you’ve developed a system with a dedicated team to cater to specific tasks. Let property managers do what they’re good at doing. Let the auditing team do the numbers. Let the social media staff work on your online presence. Delegate specific tasks to the right people to get the best outcome possible.

• To allow you more time to focus on what you do best

Since you already have a system and a dedicated team working in the background at the jobs that they’re good at, you now have more time to focus on what you do best. You can’t be a one-man band to do everything. You have your own special skills and talents that are needed in your property investing and it will serve you well to do that.

• To give you the freedom to have a work-life balance

You don’t necessarily have to work hard on your property investing. You only need to work smart. With a sound system in place and dedicated staff, you can also enjoy and get a life.

You deserve to have a work-life balance and you need it to thrive in your business. A sound mind, body and spirit working harmoniously together is the secret to your success. You can’t work smart and not live life. You can have it both… work and live.

Be a success story in your property investing. Work smart, delegate and outsource.

Utah real estate agents are continuing to adapt to an ever-changing market. For many years, Utah has been unique for its excellent location in the west without the soaring prices of neighboring states like California. In fact, having a cheaper cost of living than California has given Utah a special economic edge. Unfortunately, Utah is also finding itself struggling with some of the same issues as the golden state, such as overpopulation and rising housing prices. Utah is, however, currently looking at a low 3.2% unemployment rate for 2017 and part of 2018.

How is overpopulation effecting Utah? Well, not having enough housing causes it to be in higher demand, and there is a real danger that overbuilding could reach the mountains and lake areas, which would mean that the number of people looking for housing would have exceeded the amount of space available. While this may be good short-term news for Utah real estate agents, it may not sit well for the state as a whole in the big picture.

If people living in Salt Lake City, Utah’s capital and largest city are forced to move farther out it could also be treacherous for the local economy. Salt Lake City homes are already experiencing steep differences: homes are selling for as little as 200,000 or as much as over one million. Salt Lake City realtors may need to focus on accommodating the number of people living in the area. One thing they can do is perhaps focus on building more multi-family units, although this is an issue that Utah real estate agents may not be able to solve on their own.

An everlasting problem in Utah and all over the country seems to be rising cost of living. Houses for sale in Salt Lake City, as well as rental units throughout the state are experiencing a higher-than-ever price. Meanwhile, with low unemployment, wages are stagnant. This presents a problem when houses for sale in Salt Lake City exceed the income of the average worker, and people begin to move farther out. If this problem becomes too extreme, Salt Lake City realtors and Utah real estate agents in general will have their work cut out for them.

Unfortunately, experts are not predicting a reversal of these trends any time soon. In fact, Salt Lake homes for sale will probably continue to become more expensive. How the wage situation will change is also debatable with no clear end in sight. Technological changes will no doubt have an effect on things; for example, the internet has become increasingly popular over the last two decades, and in more recent years, Smartphones have taken over the industry.

Now, when looking for an apartment or house, you could go on Craigslist or simply Google, “Salt Lake City homes for sale,” or “homes for sale slc” and find actual Salt Lake City homes for sale right there on the internet. Or you could type in “Utah real estate agents” and be connected to someone directly. The possibilities are endless.

Ultimately, the situation is going where the economy takes it, and a lot of this is dependent on the government and decisions they are making. However, the market for Salt Lake City homes will probably remain high. People will continue to search online for “homes for sale slc” with hopes of finding some affordable Salt Lake homes for sale.

However, with the increase in population over the past two decade, the cost of living is on the rise in major part due the cost of housing. And if real estate continues to increase, Utah real estate agents and brokers alike may find themselves in the cross-hairs if and when faced with another bursting market cycle.

Although, we have been experiencing, one of the longest, prolonged period, of low – interest rates, and, thus, what’s often, referred to, as cheap money, few individuals, seem to fully appreciate, what this means to the real estate market, and why! Very recently, the Federal Reserve, lowered interest rates, an additional 0.25%, so how might that affect, the overall market – place, and the essentials of the housing markets? With that in mind, this article will attempt to, briefly, explore, consider, examine, review, and discuss, 5 possible ways, this economic reality, will probably, affect, many aspects of this reality.

1. Mortgage rates, availability, etc: When overall rates fall, there is nearly always, and an immediate, or near – immediate impact, on mortgages! This translates to, lower monthly carrying charges, on a monthly basis! When it costs less, it means, buyers are able to purchase, more home, for their dollars! It means, it’s possible to proceed, with purchasing a more expensive house, and making the same payments. Often, this results in rising costs of houses, because, when more people can afford to buy, the economic concept, of Supply and Demand, kicks – in!

2. More house for your payments: Many perceive, this permits them to pay more, and, therefore, do so. They, often, fail to consider, this may, in the longer – run, when/ if, interest rates go up. the value of the particular property, might be adversely affected! One must also, consider, whether we are experiencing, a buyers, sellers, or neutral market!

3. Qualified, potential buyers: Because a major component of the financing qualification formula, used, for securing a home loan, when rates go down, and, thus, monthly installments, do, too, there many be, significantly more, qualified, potential buyers, around. This makes homeowners/ sellers, begin to be, in a more favorable position, because, it increases buyers, and, thus, tends towards a sellers market!

4. Some homeowners might list house, sooner: When prices go up, and demand is boosted, this is often accompanied by, more homeowners, deciding, it may be, a good time, to list their house! In the short – run, there may be one impact, which may be, or not, the same as the one, in the longer – term!

5. More refinancing, more overall use of credit, etc: Many homeowners decide, it’s time, to refinance their home loan, because of the lower rates, and, thus, cheaper money! It may, also, result in, fewer cash – deals, because, it makes more economic sense, to borrow funds, instead!

When rates fall, in most cases, prices rise, and so does demand! A wise consumer, whether buyer or seller, is aware of conditions, and proceeds, accordingly!

When you go to school to become a real estate agent, one of the first things you learn about is Fiduciary Duty. It is a keystone of integrity for anyone in the business, and is discussed again and again in your continuing education as an agent. It is also a basic component of the Code of Ethics to which every Realtor is bound.

But what exactly is fiduciary duty? Let’s begin with a simple acronym: CARLOAD. There are seven tenets which define fiduciary Duty:

Confidentiality-any information divulged by the client is kept in utmost confidence, and NOT SHARED with anyone. Think doctors and lawyers.

Advocacy-the agent has client’s best interests at heart, and will go to the greatest lengths to ensure the best possible outcome for them.

Reasonable care-the agent makes sure all processes are completed in a timely manner, follows up and follows through. Think of your agent as a project manager.

Loyalty-the agent acts in the best interest of the client; every decision and discussion is taken as a representative of the client.

Obedience-the agent who enters into an agreement with a client commits to perform according to their agreement. The agent acts (or doesn’t act) upon the instructions of the client (within the law, of course)

Accountability-the agent keeps the client apprised of all developments in the transaction and keeps the lines of communication open. The agent also double checks all the numbers so there are no surprises.

Disclosure-any information within the scope of the transaction is disclosed to the client. ALL offers are presented to the client, even the “lowballs”.

You will notice the term CLIENT is used throughout the preceding discussion. Anyone with an interest in buying or selling a home can be considered a customer, and an agent has a general obligation to be truthful and reasonably forthcoming to them. However, no fiduciary duty exists. A client is a customer who has entered into a representation agreement with the agent, either with a Listing Agreement or a Buyer-Broker Employment Agreement. Once this agreement is in place, the agent is officially on the client’s team, and therefore MUST act as a fiduciary.

One illustration of the value of this is in the situation of dual agency. Suppose Bob and Betty Buyer are driving down the street and see a Realtor’s sign in the yard of a home. They decide to call the number on the sign, belonging to the listing agent, Sammy Salesman. During the call, Sammy asks if they are represented by an agent, and they reply that they are not. This is an opportunity for Sammy to offer his services to Bob and Betty. This can be an issue because Sammy’s Fiduciary Duty remains with the homeowner, and it may be problematic for him to provide the same duty for the buyers without violating most or all tenets of the CARLOAD; for instance, the duty of full disclosure would conflict with the duty of confidentiality. Not illegal, but obviously a conflict of interest. Bob and Betty are certainly free to take him up on it; by so doing they would be agreeing to limited representation. A far better solution for them would have been to work with a buyer’s agent, who would work in their best interest by virtue of the Buyer-Broker Employment Agreement.

The importance of quality representation is difficult to understate, whether you are buying or selling real estate. By having a pro in your corner, you can be assured that your best interests are being served, and the transaction will come to a successful and satisfactory conclusion.

Since, we are currently, experiencing, an historic period, regarding the ever – increasing, prices, many houses, seem to be selling, for, some people, seem to think, this is the way, the real estate market, always is, rather than considering the bigger = picture! In fact, historically, this market, often, fluctuates, sometimes, proceeding, as a sellers – market, while, at other times, as a buyers, or neutral one! Although, over time, the price of houses, has kept up with, and, even, slightly exceeded, inflation, there is no consistent trend, as to how this occurs! How long, the current conditions, will continue, and, what might, occur, next, as well as the timing of, this, is uncertain, and, of course, not guaranteed! After, over 15 years, as a Real Estate Licensed Salesperson, in the State of New York, I have seen, many different market – conditions, and, believe, in the bigger – picture, and over – time, there are, at least, 6 issues, which impact pricing. With, that in mind, this article will attempt to consider, examine, review, and discuss these, and why, they matter.

1. Supply and Demand: In the longer – run, the economic concept, of Supply and Demand, is, probably, the most relevant, single – condition, in what happens to pricing! What this means, simply, is when, the number of sellers, outweighs, the number of potential, qualified buyers, home prices, won’t, generally, move up, but when there is a lack of inventory (homes available for – sale, on market), prices rise! When, things are, in – between, we witness a neutral real estate market! Presently, the reason, we witness, such an extreme, amount of price increases, is, the aftermath of the closing of economies, etc, the lack of inventory, many buyers, etc, and a perception, apparently, indicating it is the time, for them, to act!

2. Overall economy; consumer/ job confidence: Whether, it is the actual, overall economy, and conditions, or, simply, a perception, when buyers are optimistic, prices rise, and the opposite often occurs, when they are pessimistic! In addition, the degree of consumer confidence, as well as belief in job security, etc, makes a huge difference!

3. Perceptions of buyers and sellers: When buyers perceive real estate, as offering, meaningful value and viability, it helps drive them, to offer higher prices, and, even, sometimes, creates bidding wars! However, when sellers, become greedy, and offer their houses, at far – too high, prices, it often, slows this trend!

4. Mortgage rates: When mortgage rates are low, it permits potential buyers, to get, more house, for their bucks, because, their monthly installments/ payments, are lower! The current market, is, sort – of, a Perfect Storm, of low supply, great demand, and historic – low, mortgage rates!

5. Local issues (positive and negative): Many believe, much of real estate, is, local, because local issues, whether positive or negative, often, creates, either, conditions, which make one area, more attractive, or less – so! These include: safety/ crime; conveniences; transportation; education/ schools, etc!

6. How a house compares to similar others: Qualified real estate professionals, create, fully – prepared, relevant, CMA’s or Competitive Market Analysis, which, compares, a specific property, to comparable/ similar ones, on the local market, at that time!

If, you plan to, either, purchase, or sell a home, doesn’t it make sense, to understand, the factors, involved? Will you become a more – educated homeowner, or buyer?

Role of a Real Estate lawyer

First your lawyer will send you a letter outlining what documentation he or she may need from you. Since you will likely be paying at least $1300 plus for legal services, I think it’s important that you know what your lawyer will be doing for you! Below is some detailed information on the role of a real estate lawyer and on what you need to do when working with your lawyer and securing a mortgage. Don’t wait to higher a lawyer just before you taking position of your new purchase, make sure you interview them way before your closing date.

Your Real Estate lawyer should advise you what expenses you’re likely to incur with respect to the closing procedures, including:

Land Transfer Tax

disbursements

legal fees

property tax

If you’ve bought a new home from a builder, the Real Estate lawyer can give you an educated estimate as to how much you should budget for “hidden charges” such as:

Ontario New Home Warranty Enrolment Fee

Hydro and Water meter installation charges

Fencing charges

Grading Deposit charges

many others

If all the conditions in the Agreement have been met and the Offer is firm, the lawyer proceeds to investigate the title to the property. Initials searches include:

utility searches

property tax searches

building, zoning and planning searches

registered title searches

Letters are sent by your lawyer:

to all municipal or regional utility departments to confirm that there are no arrears or outstanding charges

to ensure there are no conditional sales contracts, easements or unregistered agreements, liens

to discover other encumbrances affecting the property or equipment being left by the Seller

Easements are a big issue and cases are always being written up in the newspapers and real estate journals, about buyers who didn’t realize they weren’t allowed to put up fencing or create a parking space because the property survey they were working from didn’t actually show the City’s rights to access the property. Your lawyer’s job is to make sure all this is disclosed to you. Your lawyer will also advise the utility departments of your name and the scheduled closing date, and request that final meter readings be done on the closing date so the final bills can be sent to the Seller.

A Tax Certificate is requested by your solicitor to verify the amount of the current year’s taxes and to ask about any arrears and outstanding charges for taxes. Your lawyer will also write to the Building and Zoning Department to get the full particulars of zoning by-laws and restrictions and permitted uses (so you’ll know if you’re allowed to operate a business from your home or build a huge deck, for example). It’s important that you send your lawyer a copy of the survey for the property as soon as possible – if the Seller has a survey, I’ll get it for you if it’s not already included in the offer documents. If no survey exists, tell your lawyer so he/she can advise how your interests can be protected through Title Insurance.

A Search of Title to the property is begun in the Land Registry Office to make sure the Seller is the true owner of the property, has the right to sell you the property, and that the property is not subject to any encumbrances, encroachments, easements, liens, agreements or mortgages that were not disclosed in the Agreement or Purchase and Sale. You may have heard of fraud cases where people’s homes were sold out from under them by con artists who had no title to the land! This is where your lawyer really earns his fees. This search has to be completed prior to the Requisition Date (title search date) shown on your Agreement of Purchase and Sale.

Other important functions of your lawyer include:

Carry out a search of Executions in the appropriate Sheriff’s Office to ensure that there are no executions against the prior owners of the property that would affect your title.

Prepare and deliver a letter to the Seller’s lawyer requesting that any items revealed in the initial searches be dealt with on or before closing.

Review the contents of the Mortgage Commitment letter your bank will prepare when you arrange your financing, and consult with you about the results of signing it.

Advise you of any closing-day costs related to mortgage financing when your financial institution provides you with a final Mortgage Commitment Letter.

If your lawyer is also acting on behalf of the financial institution (it often happens), he/she will prepare all necessary documentation for the mortgage and submit this package to the financial institution for approval prior to closing:

– Certify title of the property to the financial institution on closing.

– Advise you about any government programs designed to assist home buyers that would apply to you, including Land Transfer Tax Rebate programs, Ontario Home Ownership Savings Plans, RRSP plans, and CMHC 5% Down Payment information.

– Let your insurance broker know the name, address, phone number and fax number of both your lawyer and of the financial institution providing your mortgage. Your lawyer needs a letter confirming that insurance coverage is in place effective on closing – this is super important because the bank will not advance the $ to close your purchase until they know that you have property insurance.

While Ohio real estate law does not require you to have a real estate lawyer, there are certain instances in which having a lawyer may be a good idea. When buying a property that has any common interest developments, it may be difficult for the average consumer to discern between parts of the property that are for one’s exclusive use versus parts that are for community use. Common interest developments, such as condominiums, may have ongoing litigation that may have an adverse effect on the future value of the property. A real estate lawyer can explain what the possible outcomes of ongoing litigation may be, so you can make an informed choice about whether you want to invest in the property. A real estate lawyer can also help ensure that the title to a property is good before a buyer closes on a sale.

Try and find a lawyer who is recommended by someone you trust, such as a friend or family member. Never choose a real estate lawyer simply based on the recommendation of your real estate agent. However, you may be able to find a lawyer who is also a licensed realtor.

You should ensure that the lawyer specializes in real estate law by checking with state and local bar associations and realtors’ associations. The American College of Real Estate Lawyers (ACREL) website provides links to members by state, and has many members from Ohio.

Most lawyers will answer preliminary questions for free. Make a list of your questions and use this list to help you find a lawyer who you think will represent your interests in a competent and ethical manner. Before making a final decision, ask what the lawyer’s charges are. Some real estate lawyers will work on for a fixed fee in more straightforward cases.