You probably got into the business because you enjoyed the freedom of working for yourself — being able to create your own business model, your own hours, and your own niche. But for some, a successful career as a real estate salesperson is only the beginning. If you aspire to start your own real estate brokerage, whether it’s a highly-specialized boutique or part of a big franchise, you need to start with smart planning, thorough research, and expert follow-through.

It’s never too early to start planning. Once you set your goal to open a real estate company, begin talking to other business owners — not just in real estate — to gather ideas you can use for your business. Unless they feel that you’re going to become their competition, people are usually happy to share their stories. Ask detailed questions, such as: What has been your biggest challenge? What surprised you most about being a business owner? What advice would you give to someone who is starting her own business? (more…)

search for : business model, real estate salesperson

Real estate agents are occasionally abused and frequently taken advantage of by indecisive, disloyal, or even deceptive customers and need to draw a firm line in the sand or at least in their own minds as to how far they will be pushed. Some agents “will not show a prospect more than three homes. If they want to see more than that he refers them to a new agent who is willing to ‘play taxi’.”

From a customer service level it is a pretty selfish way to do business. First of all, the customer has an investment in the transaction too. The real estate agent may be spending money on gas and spending time setting up appointments, but the buyer has invested time in establishing a relationship with someone they hoped to work with over a period of time. To be told after viewing only a handful of houses that they will be passed on to another agent can be disappointing and will require time and effort to establish a new relationship but it could also kill the desire to continue looking. An insecure buyer, particularly a first timer, may be shaken to the core by such an attitude and made to feel that they do not understand the process or that they are not behaving appropriately. (more…)

search for : Real estate agents

The U.S. Department of Justice is grilling the real estate industry over alleged anti-competition and restraint of trade violations. The Consumer Federation of America this month raked the industry over the coals in a new report that likens industry practices to a cartel. Spring and summer typically usher in a seasonal boost in sales, but a growing number of markets are stagnant with slow sales and flat prices. The deflating market comes with increased competition from a record number of licensed real estate agents, growth in discount, online and other new types of brokerages, and gains in the FSBO (for sale by owner) sector.

Yet, smart public relations can your best friend, provided you cozy up to the type that garners trust and credibility. Commissions put bread on the table and clothes on your back, but your true value to consumers is as a knowledgeable and credible source of information. Reliable information that helps clients make crucial decisions about what could be their most valuable transaction is, well, invaluable. It also garners cost-free, word-of-mouth advertising, one of the best types of advertising you can use to grow your business. (more…)

search for : U.S. Department of Justice, FSBO, for sale by owner, public relations

Hendersonville is more than a rural crossroads depicted in those TV shows. Its Main Street, on the National Register of Historic Places since 1988, anchors a 12-block historic district now dotted with cafes and art galleries. To enliven downtown, the town has carefully cultivated an image of Monday night square dances and neighbors relaxing outdoors in rocking chairs. The North Carolina Apple Festival — a celebration of Henderson County’s cash crop complete with apple pie contests — has been running for 60 years straight.

What was first a trickle of newcomers has turned into a rush and city life is beginning to encroach: Traffic, sprawl and now the arrival of the ultimate city slicker: Donald Trump. Two large residential projects partly financed by the New York developer’s mortgage company, particularly a luxury condominium that could cast a shadow over the turn-of-the-century courthouse, has split the community. So far the project can’t go forward because city officials say it violates a height ordinance designed to protect the town’s small-town feel. The ordinance stipulates downtown residential buildings can be no higher than the base of the courthouse dome. The developer, Ed Hernando, a transplant from Miami to nearby south Asheville, has lowered the height from nine stories to seven, but is still proposing a building that would cover an entire city block, with five floors of living space and two for parking. (more…)

search for : Hendersonville, National Register of Historic Places, North Carolina Apple Festival, Henderson County, Donald Trump, Asheville

Today, fully two-thirds of all home mortgages are non fixed-rate type loans. “There are so many different products out there today,” Tuli said. “All kinds of adjustables, interest-only loans, option ARMs, 40-year fixed instead of 30-year fixed rate loans, combination loans. There is an unlimited number of products and options available. You can tailor a product to each person’s specific need.”

When shopping for a mortgage, it’s important to take advantage of the Truth-in-Lending Act which requires lenders to disclose their rates and fees in writing. You can then compare these disclosures. Also take advantage of the many mortgage calculators that are available online to figure out your monthly payments under different products. And most important take advantage of the Internet and other resources to educate yourself about different products, especially some of the more exotic ones. (more…)

search for : home mortgages, interest-only loans, option ARMs, Truth-in-Lending Act

A steep increase in U.S. housing rental costs has boosted core inflation in recent months and could keep pushing it up through the end of the year, according to some economists. The Labor Department said on Wednesday the Consumer Price Index for May showed prices outside food and energy increased a steep 0.3 percent for the third month in a row. Behind that gain was a 0.6 percent jump in housing rental costs, also known as “owners’ equivalent rent” or OER. It was the largest monthly increase since August 1990.

Demand for rental properties has driven up rental prices across the country, raising the government’s estimate of owners’ equivalent rent. So far this year, core consumer inflation is running at a 3.1 percent annual pace, well above last year’s 2.2 percent rate. Over the past three months, price gains have accelerated to a 3.8 percent annual rate, in large part due to higher OER readings. (more…)

search for : U.S. housing rental cost, core inflation, Consumer Price Index, rental prices

If you are a first time buyer you should have each and every one of these pieces of “boilerplate” explained to you. They are routine to your agent who has probably prepared dozens if not hundreds of offers, but don’t let her blow through them. An offer is not routine to you and it is your house, your money, and your blood pressure.

Some states have disclosure forms relating to structural inspections. There may be a leaflet informing buyers of their right to such an inspection and, of course, a form to acknowledge receipt of the leaflet. In some states an agent is prohibited from providing the name of specific inspectors, but must inform a buyer where to obtain a list of these professionals …and get signed a form that verifies he did so. In areas where Radon has been identified as a problem, either in the water or air, there are other brochures and other forms to sign to prove that the buyer has been informed of the possibility of problems. (more…)

search for : disclosure forms