Make some calls and ask some questions. See how available they are, how quickly they call back and check out web sites. Ask the REALTOR® to come for an interview. Your chosen REALTOR® should have enough training or experience to give you proper guidance and above average negotiating skills. A REALTOR®'s presentation should show research. Suggested higher prices might be tempting but if wrong, could impede your chances of a quick sale. The multiple listing service (MLS) is used by everybody and prospective buyers search this data base for homes and prices so the price is important. All companies, large or small, have access to the same information on the MLS data base. Ask those whom you interview what their marketing plan is and what sets them apart from others.
Professional leasing agents save you time and money. Ask fellow business people to recommend a commercial real estate agent who helped them. A real estate agent who specializes in commercial leasing will have knowledge of the local market and can help you find the right space that fits your budget and your time frame. That agent can represent you, the tenant, and guide you through the process that may not be totally familiar. Fees are paid by the landlords.
There are several factors to consider here. Some of the most important are:
1) Your location. If you live far from your property, the expense of management may outweigh the cost of travel and your own time.
2) Your availability. If you work full time or have other engagements, you may not have time for your rental.
3) Your income vs. expense. Can you afford management? Your property should bring enough income to cover costs as well as management fees.
4) Your experience. How do you handle complaints, maintenance issues, collecting money? Inexperience may cost you more than management. Considering these 4 factors should help answer your question.
You really should think about IF you want to find your dream house before your current house sells. You could find the perfect house and unless you are in a financial position to own more than one property, the house of your dreams could sell to someone else before your current property sells. The fear of being "homeless" makes us think we have to find our next home before we sell ours. Once you get an accepted offer on your current property, your REALTOR® will guide you and help you find your new home. Ideally, you should have a Plan B. You may find a suitable property right away, maybe you should rent or move in with friends or family until you find that home that is "the one". Moving is a big step, just do it one step at a time.
First, let’s address what a CMA ( Comparative Market Analysis ) is. Licensed REALTORS® have access to data concerning any properties that have been listed, sold and/or expired via the MLS® system. When a property owner wishes to sell, professionals will access this information to give you an OPINION of value based on this data. This is NOT an “Appraisal”, this is just our professional opinion. Contrary to popular belief, this is a FREE service. Many REALTORS® will use this as a marketing strategy by offering you this as a FREE service if you call them. Very crafty on their part but be aware that this is a NO CHARGE service. With technology at our fingertips, we can actually do this analysis WITH you so you can see how the process works. Happy Summer everyone!
Most salespeople will ask you to be qualified for financing prior to selecting homes that may be of interest. This establishes the price range that you could reasonably expect to get financed. Start with the bank where you are currently established. You may choose a mortgage broker who will seek lower rates or better deals. The letter showing approval should be from the actual lender as well as the broker. Approval may be indicated but with conditions attached if the broker or banker does not take a full application including a credit check or verifying employment or income. We recommend that you do not count on your full capacity to repay. Leave a margin. It is a lot more fun to own a home you can afford without worry.
Both types of REALTOR® receive their basic certification from the same body. The differences are a matter of additional training, usually through an on-the-job mentorship program. Residential REALTORS® sell houses. Commercial REALTORS® deal with commercial and investment properties of all types. They have a unique contact base, skill set and experience and work in a market different from residential REALTORS®. They are better equipped to bring a deal to a successful closing. Look for a commercial REALTOR® with knowledge, experience and reputation in their local market to look after your best interests
Done right, investors stand to reap big rewards over the long haul. To simplify, we will consider only the financial perspective here in 2 key factors. Cash flow and equity. Cash flow is crucial to monthly operations at the property and is where you should see fairly immediate returns. It is important to ensure the property’s income covers costs and then some. A prudent investor will bank a portion of these funds to hold as a reserve for when significant expenses arise at the property (they will).
The equity in the property is the difference between what the property is worth and what you owe against it. You can gain equity in your property by appreciation (rise in market value over time), by paying down your mortgage or immediately by investing in a property that is undervalued, under-rented or where the opportunity exists to do upgrades (sweat equity). In short, look for positive monthly cash flow, likely equity growth over time and the opportunity to earn additional equity on the short term. Call me anytime to discuss!
Open houses are very hit and miss. While stats say that 3% of homes sell because of open houses, I really feel that a serious buyer will call their REALTOR® and make an appointment for a private viewing. Our selling market can be very discouraging at times and with so much of a REALTORS® job "behind the scene", a seller wants to see their REALTOR® at work. Definitely follow the advise of your REALTOR® as to whether they feel your property would benefit from an open house. On the other hand, when in a market with so many homes for sale, we really have to try anything to get your house sold, so I also would never say not to do open houses. Yours may be one of that lucky 3%. Open houses are also a tool a REALTOR® uses to pick up buyers for other properties.
Absolutely without any doubt! It may sound like cliche but you really do only have "One chance to make a first impression". Potential buyers need to be able to visualize your house as their HOME. The minute your house goes on the market you need to consider it as no longer YOUR home, but someone else's therefore it needs to be properly staged and de personalized. An experienced professional should be more than capable of providing educated advice. Overlooking this critical first step could cost you a sale!
You most certainly can and sometimes you should. However, if you are lucky enough to get someone who works hard for you and gains your trust, it may be in your best interest to stick with that person. Most salespeople work hard for loyal clients and will go the extra mile for you. That can result in seeing more houses, getting a better mortgage rate, getting a reasonably priced lawyer and assistance with changes connected with your move.
It is true, most buyers come from the Internet. Including the MLS®, it is great exposure for your property, an invaluable tool for the public as well as REALTORS®. Initially, a great deal of time is spent gathering details about your property. This data is vital to the selling process. Once a buyer surfaces, the real value of your REALTOR'® becomes obvious. While it's true that REALTORS® are trained professionals and expert negotiators, their truly exceptional attribute is their ability to manage a very complex transaction and deal with every detail from start to finish. You may think your REALTOR® should be busier trying to sell your property but keep in mind, a REALTORS® job doesn't end until your deal is closed. That's how they make the grocery money.
For both your peace of mind and to ensure you are properly protecting your assets, it is important to have someone monitoring your property when away. The first step is to make a call to your insurance company to ensure you understand their requirements. Many insurance companies have different guidelines and will require monitoring at different intervals, usually more frequently during the winter months. A trusted friend or family can help with this but you may want to consider professional help to ensure nothing is missed and the interval between visits is maintained. They will also be trained how to respond to emergency situations such as a burst pipe and should be able to provide additional services you will require during an extended absence such as snow removal, lawn care and yard maintenance, cleaning, etc.
A pre-approval uses your income and expenses to determine how much you can afford to pay for your new home. Your credit rating is not checked at this time. This step should be completed before you start your new home search.
A ‘pre-approval’ does not mean that you are guaranteed a mortgage. It simply checks to see how much of a mortgage you can afford.
An actual mortgage approval uses your pre-approval information but goes further and checks your credit rating. This step is done after you have an accepted offer on your chosen property.
In our existing market and with the advancements of technology, pricing your property properly is CRITICAL. An experienced REALTOR® will do their research and based on their opinion, will suggest a list price. Most homeowners (myself included) feel that their property is actually worth a higher price than the market will allow so be aware of this potential error that could cost you a sale. Many properties can take weeks and even months to sell right now and you may need to lower your price in order to attract perspective buyers. If you have NO viewings or an abundance of viewings and NO offers, chances are your asking price is too high. Ask for updates and advice along the way!
By law we are not allowed to have a standard commission rate, however, generally speaking between 4% and 6% are the quotes you will get. Some offer less than that, and some relate the fee to the size of the deal. It is up to the salesperson to explain to you why he/she charges a higher rate than others. I have found that if one gets a good result in a timely manner that most clients are happy to pay whatever the agreed amount is. Commercial sales and leasing rates are different and can fluctuate wildly. Once again, it relates to the level of service.
Finding a tenant can be a challenge in today's market. You may want to try to find a tenant on your own by street signage and advertising, in print and on the Internet, or you may want the help of a professional leasing agent. If you don't want to list your property with a commercial agent, sometimes just making them aware that your space is available is a good enough place to start. You can establish what their fee would be in the event they find a tenant for you. If you opt to list your property, they take over the marketing of your space which can save you a lot of time, energy and frustration. They will also look after negotiating the offer to lease as well as all the details necessary for the new tenant. Commercial leasing agents deal with leasing prospects on a daily basis so they are more likely to come across a potential tenant for your space.
If your property is a multi-unit, it is best to have it full of tenants and receiving maximum rent when selling. Given the buyer will be purchasing it as an income property, the value is largely determined by the rental income.
If you have a single family home or duplex, the buyer may intend to move in to the house. In this case it is important to consider your existing tenants and their needs. The buyer will still be obligated to honour the terms of their lease.
If you are aware you will be selling within the next year, you may want to consider month-to-month leases. This will give you the flexibility to end a lease agreement with 30 days’ notice to the tenant, should your buyer want to move in immediately upon close.