Why Use a Realtor When Purchasing a New Home From a Home Builder?

Negotiating with a Home Builder

A dirt construction is a home built from the ground up

An inventory home is a home that is already built and ready to be moved into immediately.

The ability to negotiate on your new home is going to be highly dependent on three variables:

o What type of home you are buying: dirt or inventory
o The current amount of inventory of available plans
o Your local market conditions

It is most important to remember that you are negotiating with the builder’s profit margin. Profit margin does not include a buyer’s real estate agent’s commission. This commission is already factored into the base price of the home, and will not be negotiable. The builder’s profit margin is not at risk when a home has not been constructed yet in such cases as ‘dirt’ deals. Inventory purchases, however, are at a much more likelihood of being negotiable as Dallas new home builders do not like to have inventory sitting in the subdivision, plus they will have to begin paying interest and property taxes on property they hold in their inventory.

Dormant inventory is bad for business. It gives a negative impression to visitors in the neighborhood, and is also very costly to maintain by the builders themselves while touring these homes with prospective buyers. This is why a builder’s negotiability is higher in inventory homes; they simply want to get rid of them as soon as possible.

It is important to scout neighboring subdivisions and learn the incentives and promotions each is having and use this information to your advantage. If you are using the services of Dallas real estate agents in your purchase, which you should (it is free, after all), Realtors will be happy to do this for you.

Don’t expect for a hard negotiation to take place. Usually, the best weapon in negotiating new home sales is simply to walk out and return at a later time. This strategy will be sabotaged if you have not gotten financially approved prior to visiting new home builders. You want to give the impression to the sales representative that you are ready to purchase that day. Otherwise, you leave the salesperson open to speculate on whether or not the ‘deal’ he is cutting you is really worth the time and effort. If the salesperson feels that your transaction will be very smooth, then a Realtor should have no problem negotiating your sales price down to a reasonable amount.

In the end, a real estate agent’s perspective on your transaction is invaluable in your real estate transaction.

Why a Real Estate Agent’s Assistance Helps

When you purchase a home you are probably making one of the most important investments in your life. It is important to make sure you make the most informed, intelligent decisions possible in regards to the details of your next home. Many times, this can be clouded by an emotional attachment to a home, which believe it or not, can be created instantaneously.

Have you ever walked into a home, and said the words, “Wow, I love it!” This could be referenced as an emotional attachment. You are now subconsciously wanting this home, and are usually (as long as your finances provide) willing to do whatever it takes to make your family have the same enjoyable experience as you did when walking into a lovely model home. In a Realtor’s experience, these emotional attachments cloud the mind, and usually make you make emotional decisions rather than logical ones. In real estate, this is really a bad idea.

Realtors in Dallas and Other Cities Can Help!

Realtors can guide you to finding the perfect home just for you. By using a process that is very intentional and proactive, Realtors are able to fine tune their searches in the Dallas MLS or other MLS to enable us to find the home most suited to your needs.

Once you’ve found the home of your dreams, let someone that ISN’T emotionally attached do the negotiating. In a Realtor’s experience, they will be able to get better results from a new home builder salesperson negotiation session than you, by yourself, and un-armed. Dallas real estate agents, on the other hand, come fully prepared with neighborhood selling trends and statistics, an un-emotional and un-attached attitude, and the ability to walk-away. Do yourself a favor and take use of this free service!

Did You Just Say ‘FREE’?

Absolutely! The costs of the services that Dallas Realtors provide are gladly paid for you by the builder of the home you purchase. They are ‘gladly’ paid because they brought the builder a buyer for their home and helped keep the transaction smooth and stress-free; it is as simple as that. Without Dallas real estate agents, many builders cut a very important source of business to their communities.

In fact, many Dallas new home builders embrace the service of Realtors.

With such a large transaction you are thinking about doing, it is always wise to consult with a qualified professional to make sure that all your bases are covered. Remember: Using the services of a real estate agent is free when buying a new or used home. What do you have to lose?

Hiring a Real Estate Agent or Realtor

There are many reasons why a person should consider talking with an agent or a realtor if they are doing anything related to real estate. These services are great for businesses, individuals and investors. Whether you are interested in real estate because of your business, as an investor or because you want to buy a home or apartment, you are going to need some professional assistance. Here is a look at some of the main benefits of hiring a realtor and doing business with them:

1. Convenience and Access

One of the major reasons a company would talk with a commercial realtor in Omaha is because of the continence and access associated with the transaction. When it comes to commercial real estate in any part of Nebraska, it is very tough to find the right space and negotiate the right price for a purchase or rental unless you have a commercial realtor in Omaha who can assist you in the process. Any type of business can benefit from hiring a realtor, because they are all looking for the same things in the area.

2. Negotiations and Contracts

A huge reason to go with an agent or realtor is to ensure that any legal aspect of the deal is handled with aplomb. Even if you have some experience with real estate in the past, you are not going to know enough to ensure you are keeping things above board with regards to the deal. In addition, you may need a realtor to help you see whether the other party is being completely straightforward on their side of the deal. These are things that a real estate professional knows all about, which is why hiring them before you begin the process is the best way to go.

3. Finding the Perfect Space

Finding the right retail space in Omaha is not easy. Not only are you looking for something that is located in an enticing location, but you also want something that is proper value for money. There are two reasons why you may be interested in retail space in Omaha. You could be interested for investment purposes, or you may need the space for your own shop or store. If you are an investor, a realtor can help you properly assess the advantages and disadvantages of putting your money in a particular space. If you are someone who needs the space for your own business, the real estate agent can help you negotiate the deal and get you a proper price on a valuable space.

For anyone who is serious about putting their money in the real estate market, there is no way to emerge with a “win” unless you deal with a realtor. They are the experts on real estate, and they have the man-power to help you with the process. The various teams at a realtor’s office can help you with different aspects of the buying, selling and investing process as it pertains to real estate.

What You Can Expect To Pay A Playa Del Carmen Realtor

Paying someone else for a job, even if they have done a good job, is never something to look forward too. The same is true with Playa del Carmen Realtors. Some consider real estate agent fees to be a necessary evil. Some simply cannot spare the time and resource to sell their home, or buy their home on their own. Most Realtors work hard for their commission; still it is difficult to see thousands of dollars leave your hands and enter the pockets of your Realtor.

Most real estate agents are paid through a commission plan that most often ends up being a percentage of the selling/purchase price of the home. Percentages for the commission rate will vary from real estate agency to real estate agency, but most neighboring agents will have comparable rates. A common Realtor fee is 5-7% of the selling price.

Once you do the math you will realize that 5-7% is a lot of money (enough in fact to drive people to do their own buying and selling despite the difficulty). However, it may console you to know that the Realtor is not the recipient of the entire commission amount. After you pay your Playa del Carmen Realtor the agreed upon percentage, the Realtor must then split their earnings with the agency they work for. If there were other brokers involved in the purchase or sale than these brokers will also get a cut of the sale. The agency that the broker splits his commission with (usually paying out 50%) is compensated for the real estate agent’s work space, marketing, support and other resources needed to help in the sale.

Although it is possible to find fees that are lower than 5% in Playa del Carmen, it may be difficult especially in markets with a lot of real estate business and little competition between agencies (no competition means little incentive to be priced competitively). Some agencies are open to negotiating prices. Below are two suggestions for lowering your Realtor fees.

1. Agents who do not have to give as much money to the agencies that they work for have more flexibility in negotiating price with you. When a Realtor works for a company that requires 50% of the commission it puts the Realtor in a difficult position to have to compromise the small percentage that she is actually going to end up with. Some real estate agents are only required to pay 15% to their agencies. These are the types of Realtors that are more likely to give you some kind of discounted price.

2. There are Realtor services that you can opt out of in order to save money. Marketing methods such as newspaper advertisements are rarely what ends up selling a house. Telling your agent that you are not interested in such low yield expenses saves the agency money that they can then pass on to you.

If you are still unhappy with what you can expect to pay a Playa del Carmen Realtor consider all of the costs that you would be incurring had you chosen not to employ a Realtor. Remember that when you sell your home on your own you are responsible for paying for all forms of advertising, you pay to get your home listed with a service, you pay for legal council, you pay for copies, office supplies and documentation. You sacrifice money and time that could be saved had you not needed to spend so much time selling your property or looking for a new property. Consider the time lost working and the time lost with family and friends because you are responsible for being present at open houses, meeting with potential buyers, inspector reviews, etc. If you do not follow all of the laws and file the appropriate documents you could also be facing having to pay a great deal of money in a lawsuit. All of the costs add up fast.

How to Choose a Realtor – 7 Questions to Ask Your Real Estate Agent

Buying or selling real estate is probably the most significant transaction you’ll ever make in your life. That’s why it’s important to choose the best Realtor to help you achieve this goal. But before you hire the services of a real estate agent, there are important factors to consider.

Many people have the perception that all real estate agents are the same. Some sign with the first one that comes along. Unfortunately, they realize later on that they should have been more selective before signing an agreement. To guide you in choosing the best Realtor for your needs, below are seven questions to ask your prospective real estate agent.

1) What is your experience in real estate?

The first thing you need to ask a real estate agent is how long they’ve been in the real estate business. It doesn’t mean that you cannot enlist the services of newly licensed real estate agents. Just keep in mind that those who have years of experience under their belts are probably more knowledgeable on what to do, from listing to closing. Aside from the number of years in the business, ask them what segment of real estate they focus on – residential, commercial, luxury, etc. Find out if he/she is primarily a listing agent or a buyer’s agent (or both). Familiarity with the market is also essential, so ask what geographic areas the agent usually covers. You can even dig deeper by asking if the agent has received any awards for outstanding performance.

2) How many and what types of properties have you listed and sold in the past year?

It’s one of the most important questions you should ask a real estate agent. The number of properties he or she has listed and sold in the past year is a valuable indicator how good a real estate professional is in getting the job done. Take note that this question consists of two parts: properties listed and properties sold. Agents may demonstrate their ability to list homes; however, the more important thing is the sales part – the ability to close deals. If they have many properties listed and sold in the past year, it shows that whatever strategy the agent is using, it’s certainly working.

3) What was the average sales price for the properties you’ve sold over the last year?

Asking this will give you an idea in what kind of market the agent specializes. Find out if the real estate professional has experience selling properties in the price range you’re listing at. If a majority of properties sold falls on the low-end market segment, it might take longer for the agent to sell if yours is a higher-end home. Although agents can sell any property regardless of price range, it’s likely that they will have better success in the market and price segments in which they have the most experience.

4) What is your average sale to list price ratio?

The sale to list price ratio (sometimes called the sale-to-list or list-to-sale ratio) is the final sales price divided by the listing price, expressed as a percentage. If it is 100%, it means the sales price was equal to the list price. You can view this ratio in two ways. A skilled listing agent can negotiate sales prices that are equal or close to the list price, and sometimes even greater in a very competitive market. So ideally, listing agents should have sale to list price ratios closer to 100%. On the other side of the coin, a good buyer’s agent can often negotiate a sales price that is lower than the list price. Therefore, buyer’s agent ratios ideally should be lower than 99%.

5) What marketing strategies will you use?

Deciding on what strategies to use can spell the difference between success and failure. A poor marketing strategy will diminish the chances for success. Do your own due diligence by asking how the agent will sell your property. There are lots of options – staging, open houses, joint marketing, print advertising, and of course, online marketing. Whatever approaches are used, they should be designed to bring in the highest number of qualified potential buyers. Higher end properties can also often benefit from professional staging. In any case, your agent should advise you on how to best prepare the property to make it the most attractive to potential buyers.

6) Can you give me some references?

Reputation is important in this line of business. Whether you’re buying or selling a property, you should ask for references (past clients). If possible, call a few and ask them about their experiences with the agent. Were they pleased with the service provided? Also ask if they are in any way related to the agent. A list of references made up of friends or relatives generally won’t provide an objective assessment of the agent’s qualifications.

7) Do you offer any type of guarantee, and will you let me out of my contract early if I am not satisfied with your service?

You can’t say with certainty how things will go, even if you did your due diligence. For this reason, you should ensure that you’re prepared for any eventuality. If you sign a contract and later find that you’re not satisfied with the service, will the agent allow you to cancel the agreement? If things don’t work out the way they’re supposed to, you should have the freedom to choose another agent who can deliver better results.

As you can see, there are many things to consider when choosing a real estate agent. Finding and interviewing Realtors can be a very time-consuming and laborious task. However, now armed with these seven questions, you are on your way in choosing the best Realtor for your needs.

Why You Should Hire a Realtor

There is so much information out there, especially with the internet. Many people may think getting a real estate agent is not really a requirement. There are some people who choose to sell their homes through the internet using advertising channels as well as regular channels. As much as this works for some people, some fail miserably without representation. There are many reasons why you need a real estate agent working with you and they include:

Experience and education

When you choose a professional realtor, you will not have to know all there is to know about selling and buying in real estate. Finding the right person is a must. They will know more about how to negotiate and at the end of the day, you will get the best price regardless of whether you are buying or selling.

An agent will cushion you

When it comes to property showings, there is lots of spam involved. When you are buying a new home, the agent will keep the agents at bay and therefore you will not be lied to or misled. The agent will filter phone calls if you are selling. He or she will try as much as possible to get someone who is seriously making an offer.

Knowledge of the surrounding areas

Agents have a great knowledge, especially when it comes to neighborhoods. They can give you detailed information about an area that you are interested in. This is the only way you can make comparisons and decide on where to invest. You can inquire about schools, demographics, or even crime. If they don’t know too much about a place, they know the best places where they can get the buzz from.

Guidance on price

Many people think that an agent sets the property price, but this is far from it. An agent usually guides the clients to make good choices. When the listing is at say 7 percent, then the agent has got 7 percent interest in the sale while the client stands at 93 percent. The selling agents usually ask buyers to consider all the data that has been supplied and then settle on a price. Based on the conditions and demands, the agent now has the task of coming up with a strategy for negotiation.

The market conditions

A real estate agent is the best person who can tell you how the market is like currently. This governs the whole buying and selling process. There are many factors that will determine what to do next. Criteria like average market days, average and median prices, costs of same homes, and ratios of the listed to the sold prices are used to determine what needs to be done.

Networking

The agents are often connected to other people on a professional level. Such people provide all the services needed. There is a legal liability that keeps an agent from recommending someone or a company over others. However, they are aware of the reputation of the vendors in terms of pricing, competency, and efficiency.

The agents can offer you some references, especially when it involves people that they have already worked with.