Posts Tagged ‘Realtors’

What about Working with Real Estate Investors?

Have you ever considered working with the “real estate investor” niche? With real estate information easily obtained online and real estate offices on every corner of the street, when you specialize in this niche, investors will seek you out for your expertise and advice.

Here’s the thing about working with real estate investors—you will usually get ongoing referrals and repeat business, instead of the vanilla, residential real estate transactions where your clients may move every 7 years or so.

So what do you need to know?

• A complete understanding of all aspects of real estate investing.

• Real estate investing has its own “language” – Return on investment. Rate of return. Depreciation. Income to payment ratios.

• Real estate investments are treated differently by the IRS. While you may not be a CPA, learn how the IRS treats investment real estate. How depreciation works. Capital gains taxes. How taxes are paid when a property is sold.

• Join a real estate investment club. Do a Google search and see if there are any in your area; they usually meet to exchange tips and provide education resources to their members.

• Talk with lenders. Find out what types of mortgages are available to investors. The down payment required. Estimated closing costs. The minimum credit score. What it takes to get qualified.

• Finally, walk the talk—invest in real estate yourself.

8 Things Real Estate Agents can do to help with the Appraisal Process

I recently read an article written by an appraiser who said, “Realtors have more control working with an appraiser—more than they think they do. Spending time providing information UP FRONT will reduce the time spent on the back end trying to deal with an appraisal that comes under the sales contract price.”

I’m sharing some of the appraiser’s tips with you.

1. Provide Photos – In addition to the photos of the home that may be on your website, email the photos to the appraiser to review ahead of time. Include additional photos that may not have been posted online. Include a description of EACH photo.

2. Provide a list of recent improvements – And if you can attach the receipts for the work completed or the cost of the improvement, it’s an extra bonus.

3. Provide an Information Packet – If the home is vacant, the appraiser may not even call you to set up an appointment. Leave a folder marked APPRAISER INFORMATION. And if they do call, tell them about the packet and where it’s located.

4. Provide Insider Information – If you have information about the neighborhood that they may not know about, provide that info to the appraiser. For example, maybe a new school has been approved by the city and will be built nearby within the next few years. If you know the reason the buyers have chosen that home, include that info too. Let them know if there were multiple offers on the property, too.

5. Call the appraiser back—immediately—Appraisers typically schedule their trips within certain areas to reduce travel time. When they call, it usually means they have already done some preliminary work and are ready to do the physical inspection.

6. Provide Comps – While appraisers do their own research, it helps to BRACKET comps and supply them with what you used to establish the price. Provide sales that have sold BOTH below and above the sales price. List why each is superior or inferior. Do not rely on “per square foot price.” If known, also include seller-paid concessions.

7. Double Check the Square Footage – Appraisers must also measure the living areas, and if it’s substantially different, it creates a “red flag” and the appraiser may be looking for other things that may be inaccurate.

8. Don’t ever say these sentences –
“You should have no problems appraising this home…”
• “We need a good appraisal on this one…”
• “Let me know if you think the appraisal will come in low so I can get you additional info.”

20 Magic Questions to Ask Buyers & Sellers

It’s inherent that some salespeople do all the talking – but seldom ask enough questions. The right questions can really work magic.

Here are 20 magic questions to ask when starting to work with clients.

1. What is your main objective when buying a home?
2. What game plan do you have in mind?
3. What is the biggest problem you currently face?
4. What are you doing now to help solve the problem?
5. What other ideas do you have about the home you want to buy?
6. Who else is involved in the decision?
7. What do you like most about the idea of owning a home?
8. What is your biggest fear when it comes to owning a home?
9. If you could have any house that you wanted, what would it look like?
10. Why are you motivated to buy a home now?
11. What has been your previous experience?
12. How would you feel if you did not buy a home?
13. What is your budget?
14. What financing alternatives have you considered?
15. How would buying a home benefit you personally?
16. How can I help you with the home buying process?
17. Is there anything that is keeping you from buying a home?
18. What do you see as the next step?
19. Are you working with a deadline?
20. In a perfect world, what would you like me to take care of for you?

Not all questions may apply, but consider creating a “form” listing all the questions to prompt you to ask them. How about sending out an email version to prospects that call you? Or sending out the form with your promo packet?

Word of caution: Don’t take the answers at “face value”. Sometimes the answer prompts another question. For example, the answer might be that I want to be near a school because my children are in sports! How near? 2 blocks? A mile? Within a 5 minute driving distance? The questions open the door for more dialogue and building trust.

If you are working with many different clients, you can’t remember everything. The added benefit is that it gives you a record of exactly what they say they wanted. If they have changed their mind, you can go back to the form and record the changes.