Posts Tagged ‘Advantage’
If Realty Sites Get Personal, Take Advantage of it
March 6th, 2011
These days, probably the majority of people look to the internet first when they are considering buying a new home. It’s fun to search around on real estate web sites looking at what’s available. The more savvy buyers will know how to access the multiple listing service, but a lot will just type “wherever real estate” into a search engine and check out the top few sites. That’s why there’s so much competition amongst realty companies to get top ranking on search engines.
What a lot of people might not know is that Realtors pay to have homes listed on their sites. Sometimes they even pay per view. This is why a lot of web sites require a viewer to log in with a name and contact information. This does two things. It makes the viewer a member, and it also gives the Realtor a contact to follow up on.
A thread on a real estate forum I frequent was discussing this recently. Some Realtors were debating whether or not to block viewers who gave them fake contact information. You see, a fake email address will still allow you access to the listings displayed on their web site. It isn’t until the Realtor, or their automatic email generator, send a follow-up email that the false address is discovered. Some of the Realtors expressed frustration with this, saying it wasn’t right for people to lie about who they are, and agreed that those people shouldn’t be allowed to see their listings. Others decided it didn’t really matter, and that the mystery viewer could still be a potential customer. They allowed those who logged in with fake email addresses to continue viewing their site on the hopes that eventually that person will contact them, if they see something they like.
I realized that a lot of people probably don’t know that Realtors pay for this service. It also made me think about peoples willingness, or lack of willingness in this case, to share their personal and contact information with people they don’t know. It makes sense, in this day and age, for the average web viewer to be wary of filling their email address and name into every online form they come across. After all, they just want to see what’s for sale. They don’t care that the owner of the site is paying a bill for every house they look at, waiting for a lead.
It is important for real estate buyers and perusers to know, the sites asking for your contact information aren’t trying to scam you, and they aren’t going to sell your contact info—that would defeat their whole purpose of trying to get you as a client. What they definitely will do is provide you with the listings you are looking for. What they might do is send you an email to offer you their services. If you don’t want their help, just politely decline it. Very few Realtors will get pushy. After all, they want you to like them. Also, there just might be some free services that are worth taking advantage of, such as receiving emails about listings that suit your specific criteria as soon as they come on the market, or perhaps getting your existing house, if you have one, evaluated so you know how much equity you’ve got to work with.
Yes, Realtors make a living off of helping people buy and sell homes. That’s all the more reason to trust them to help you. So the next time you come across a real estate web site asking you to register, take advantage of it. You will gain more by being open and honest than by being shy and anonymous.
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The Realtor Advantage
March 30th, 2010
Many home buyers and sellers use the term “REALTOR®” to describe all real estate agents, but there is a big difference. REALTORS® have more training and accreditation than the average real estate agent, and can draw upon more resources to get the best deal for your real estate investment. This article outlines some of the benefits of working with a REALTOR®, so you can make the distinction next time you’re looking for professional assistance buying or selling.
REALTORS® have membership in the National Association of REALTORS® (NAR), which oversees practices and co-operative efforts between more real estate agents than any other organization in the world. NAR has more than one million members in 60 countries worldwide, and is based in Washington, DC, where it lobbies government on behalf of the real estate industry and buyers and sellers. NAR also conducts extensive research on the economic, political, and structural effects of changes in the real estate industry, and passes those findings onto its members. REALTORS® have the opportunity to network with each other and compare notes on regional industry conditions at regular NAR events, including an annual conference and expo with more than 500 exhibitors. In effect, NAR provides representation and education for its members, which enhances their real estate expertise.
Perhaps NAR’s greatest value is that it upholds a well-established code of ethics which covers every practice in real estate. NAR’s Code of Ethics is updated every year to keep pace with changes in the industry, and is followed by its members around the world. These rules help promote a common standard for real estate beyond NAR, and maintain trust between consumers and real estate professionals. In order to meet the code of ethics many REALTORS® take courses offered by the NAR’s REALTOR® University, which provide education on things like foreclosure markets, second home markets, and real estate safety.
Buyers and sellers working with REALTORS® also get an upper hand on the rest of the market, with access to more Multiple Listings Service (MLS) data. REALTORS® enable their clients to list their home on the MLS and view other homes for sale, whereas other real estate agents may not be able to provide access to this service. REALTOR® partnerships also enable buyers and sellers to view home for sale data across the nation and the world, so they can get to know the market faster.
Why Buy A REO? Real Estate Owned By Banks – Foreclosures
January 12th, 2010
An REO is real estate owned by the bank, and many investors consider an REO property to be money just waiting to happen. An REO is different from a foreclosure property in that the bank has already tried to sell it at a foreclosure auction and has had no luck getting bids. Because the property was not bid on, the bank then became the owner of the property. Naturally, the bank does not want to keep the REO any longer than possible, and this makes it a great opportunity for an investor. Not every REO is a good deal, but when you look at an REO you’ll commonly find that there is a lot of money to be made.
So, is this a foreclosure?
Technically speaking, the home was foreclosed on because the owner of the home failed to make their scheduled payments. The bank set up and went through a public auction, but there was not any bids placed on the home, so the bank ended up owing the property. Yes, the home was foreclosed on, but it is well past the foreclosure process and the bank will be anxious to get rid of the property.
Advantages of REO vs. Foreclosed Property
When you are thinking of buying an REO you have to distinct advantages that a buyer does not have with a foreclosed property. The first is that you are able to buy on your schedule, as you do not have an auction date to work with and around. You can make an offer of the home any time; you don’t have to wait for bidding to begin. Another big advantage of an REO compared to a foreclosed property is that you can inspect it before you buy, when you cannot do this with the majority of foreclosed homes that you think about purchasing. Being able to inspect the property before you buy will let you know how big of a project you will be dealing with.
Best types of REO to purchase
You might not think the type of loan the home was purchased with the first time around matters but it does. You should attempt to purchase REO’s that had a conventional loan the first time around, as you will likely get much better deals with these than you will if you look at FHA and VA loans. The federal government backs FHA and VA loans, and the government can actually buy them back if they are so inclined. Homes that had conventional loans the first time are often purchased for just a fraction of their value, meaning that they can make an investor a lot more money.
Which REO’s you should not purchase
Just because the bank owns a property does not make it a good deal. In fact, when you see that a home or property is an REO you have to wonder exactly what IS wrong with it. The house was not bid on because no one saw the worth in it. Did the home just not have enough equity? Were their IRS liens against it? Was the property just too badly damaged? You need to ask these questions. If the bank cannot answer the questions then you need to be even more skeptical. Take advantage of your right to inspect the REO so that you can see with your own eyes what may or may not be wrong, hire professionals if necessary as well.
One must also be sure that if they are purchasing an REO to fix it up and sell it, that the property is located in a desirable part of town. If the home is not located in a desirable part of town, you should really think about how wise of an investment the property may be. Perhaps location is why the property was not bid on at auction. There are three big things to consider when dealing with any type of real estate and those are location, location, location. Never let a seemingly good deal let you lose sight of how important location is for any piece of real estate that you intend to sell.
Why the bank will sell an REO cheap
Basically, a bank is not set up to deal with real estate. Sure, they give loans to people, but really, they are not equipped to buy and sell real estate. Because banks are not accustomed to dealing with real estate, it often takes them awhile to get the ball rolling so that they can repair the property, and get an agent to sell the property. What this means is that while the bank attempts to get their business together they are losing money hand over fist and the federal government often penalizes them for each and every REO that they acquire.
Because the bank is loosing so much money on each REO, they are willing to sell it fast and cheap. In fact, banks commonly sell an REO property for around 30% of its value just to be done with it. Sure, they end up losing money on the deal, but they end up losing less if they sell cheap now than they would if they kept the property for another six months while they try to pull everything together so that they can sell the property.
The great thing about working with the bank with an REO is that you aren’t buying site unseen. Because you can walk through the house and make all the inspections that you want, you can deal with them in a way that will give you the best deal, and the bank will typically be happy with any serious offer because it will get the house off of their hand and they will stop losing money.
Generally REOs are a great investment as long as you know what you are getting into. The bank simply wants to get rid of these homes, and if you find the right property and are ready to make the serious investment, it can be a great way to get off and running in the real estate business.