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

My mother died about two years ago. Her will left everything to my sister and me equally. I was living with my mom when she died of cancer, so my sister has allowed me to live in the house if I pay the property taxes and insurance. There is no mortgage. The house is worth around $400,000. Now my sister thinks we should sell the house, but I don’t want to sell, as I am very satisfied with the status quo. Can my sister force me to sell?

Yes. As a co-owner, your sister can bring a partition lawsuit to force the sale of the house. In most partition lawsuits, the judge orders the property sold with the sales proceeds divided among the titleholders. (more…)

After slipping last week, mortgage rates moved up this week better reflecting the trend borrowers can expect in the coming months. That means iron-clad mortgage rate locks and speedy loan closings should be the strategy of choice for home buyers as well as refinancing and equity-tapping home owners. Inflation was brisk in May spurred by higher housing, gasoline and energy costs. The seasonally adjusted Consumer Price Index rose 0.4 percent in May, representing a 5.2 percent annual rate. For all of 2005 the rate was only 3.4 percent.

When the fed increases the cost of money to curb inflation, short term consumer borrowing costs for credit cards, home equity loans and adjustable rate mortgages likewise take a hike. Mortgage interest rates have fallen eight times this year, but during the first 24 weeks in 2006 they’ve risen twice as often, according to Freddie Mac’s Primary Mortgage Market Survey. Last week, Freddie reported the 30-year fixed-rate mortgage (FRM) averaged 6.62 percent, down from the previous week s average of 6.67 percent. (more…)

search for : mortgage rates, home buyers, refinancing and equity-tapping home owner

Bit by bit, volunteers sow seeds for new Cobb County public garden Nowadays, it’s the eager chatter of volunteers and the constant clatter of rototillers that fill the air at what’s to become Cobb County’s first public garden. Plans for redeveloping the private garden, which the city purchased two years ago, as the Smith-Gilbert Arboretum are progressing rapidly.

Gilbert and Smith cultivated nearly 3,000 varieties of plants on the grounds of their Victorian farmhouse, complemented by their extensive collection of outdoor sculpture. After Smith died suddenly four years ago, Gilbert, a retired Buckhead periodontist, began to fear for his property’s future as developers closed in. So he offered to sell the site, along Pine Mountain Road off Cobb Parkway (U.S. 41), to the city for use as recreational space. Residents approved the $2 million purchase in a referendum, and the county is helping to shoulder the costs of converting the site to an outdoor classroom emphasizing nature, art and history. (more…)

search for : Buckhead, Cobb Parkway

North Carolina’s newest state park hasn’t even opened yet and already there’s talk of making it bigger. Lawmakers voted a little over a year ago to create a new park in the Hickory Nut Gorge area of western North Carolina. Now the state is negotiating with the owners of the private Chimney Rock Park about acquiring some of their property.

Hickory Nut Gorge is about ten miles long and goes through the Bat Cave and Chimney Rock areas. The area is home to rare plants and animals, as well as geological features including the famous cave. Gov. Mike Easley included $15 million for the park’s expansion in his budget proposal last month. “It is funding based on the legislation passed during the last session,” Easley spokesman Seth Effron said. Morse said the state is also talking with other property owners in the area. (more…)

search for : Hickory Nut Gorge, western North Carolina, Chimney Rock Park, Bat Cave, Gov. Mike Easley

The city of Pine Mountain has been asked to annex 191.2 acres off Georgia Highway 354 and to rezone it for an upper-end subdivision. West Georgia Land Group LLC of Tyrone is expected to close on purchase of the property from Granger Investment Co. of Pine Mountain at the end of June. Granger is headed by G. Harold “Hal” Northrop, who retired as president of Callaway Gardens.

The project is to be discussed by the Pine Mountain City Council June 12, but no action is expected. The annexation/rezoning is to come before the Harris County Planning Commissionat 7 p.m. June 21, said Becky Gray, county zoning technician. The commission would make a recommendation to the city council. The council is then expected to decide first on the annexation July 10, and if that is approved, to vote on rezoning the land from agricultural to single-family residential. The county planning panel also provides services to Pine Mountain. (more…)

search for : Pine Mountain, West Georgia Land Group LLC, Granger Investment Co, Callaway Gardens

If you are getting ready to move out of your longtime home and into more sunshine, you can actually gift your home to a child or friend but that gift will come with a few strings attached. In many countries around the world, once the parents die, the children simply move into the home and take over the master bedroom. While that progression still occurs in the United States, estate taxes, rising home values, job transfers, and the desire for a separate space and different environment have changed the use of the traditional family home.

The actual gain is the difference between the adjusted sales price (selling price less selling expenses) and the adjusted basis. The adjusted basis is the original cost plus capital improvements. Capital improvements are the cost of improvements having a useful life of more than one year. Examples include the new roof, dock, deck, remodeled bathroom, and finished basement. Generally, an expense is a capital improvement if it adds value to the property or extends its useful life. If these criteria are not met and the expenditure is considered necessary to maintain current usefulness, it is a maintenance cost. (more…)

search for : estate taxes, rising home values, adjusted sales price, Capital improvements

Linda Falcone, a Eugene-based RE/MAX Realtor who began her career in Phoenix 24 years ago, remembers when her life was ruled by a tyrannical pager. It would beep, and she would dash to the nearest phone – usually a phone booth where she would have to stand in stifling 100-degree heat. “It seems like the Stone Ages now,” she said Falcone said she was so relieved when mobile phones were introduced that she was the 11th person in Phoenix to buy one back in 1981. The bulky device was mounted on the floor of her car and cost $1,500, plus more than $1 a minute. These days Falcone routinely communicates with clients via cell phone and e-mail, and relies on a range of other gadgets, including a Palm Pilot and digital camera.

Buyers, too, are flocking to the Internet, to view listings and photos of houses for sale. Finding the right house, however, is only a small part of the overall buying process, said Bob Percy, principal broker at John L. Scott real estate, a Eugene realty. “There’s a lot that comes after you find a house that isn’t affected by technology,” he said, including making an offer, negotiating with the seller, overseeing inspections and closing the sale. Even though buyers are doing more of their own legwork online, most still hire a real estate agent, according to a recent survey by the California Association of Realtors. Nearly all (97 percent) of traditional buyers hired an agent; and 83 percent of Internet buyers hired an agent, the survey found. (more…)

search for : RE/MAX Realtor, mobile phone, cell phone, e-mail, Palm Pilot, digital camera, Internet

With the real estate market slower than anytime in the last three years, more realty agents and loan brokers are looking for customers in segments often forgotten by the mainstream real estate industry — minority communities. “For the longest time it wasn’t quite popular to be a minority,” said Hilda Ramirez, a director of the Santa Clara County Association of Realtors and co-founder of the Hispanic Association of Realtors and Affiliates. “But suddenly corporate America has awakened and it’s the hottest ticket in town.”

Nationally, 58 percent of Asians, 48 percent of Hispanics and 46 percent of blacks own their homes, compared with 74 percent of whites, according to 2004 data from the U.S. Census Bureau. But 60 percent of first-time U.S. home buyers in the next decade will come from these “underserved” communities, said Maria Valentin, diversity marketing director for First American Title Company, which hosted the conference. (more…)

search for : real estate market, realty agents and loan brokers, Hispanic Association of Realtors and Affiliates

Aside from getting info about whether selling prices have been trending up or down, you’ll want to ask local agents whether the inventory of unsold homes increasing, the number of weeks listings spend on the market before selling is on the rise and whether sellers are having to make price cuts and other concessions to sell.

So my advice is finish the renovation as quickly as you can (without botching it, of course) and then get that baby on the market. You’ll want to be especially careful about pricing it, though. If the market in your area is flat to soft, sticking a high price tag on the property on the theory that you can always drop the price later would be a big mistake. Houses that languish on the market because they were overpriced to begin with can be difficult sell. Buyers begin to wonder if there’s something wrong with the property. Or once they see the price being lowered, they figure they’re better off holding off to see if the price will come down further still. You’re much better off pricing the property so that it has a shot at selling within 30 days or so. (more…)

search for : unsold homes, price cuts, renovation

A successful homeowner association meetings takes thought, creativity, advance planning and funding. Too many scramble to cobble together this important event — with mediocre results. Few show up and the numbers fall short of the quorum requirements. This doesn’t need to happen. Just think what you can accomplish at this important event:

Lay Out the Welcome Mat. Make the attendees feel welcome and comfortable. Make sure there is adequate heat or air conditioning. Plan periodic breaks if the meeting is long. It will allow the participants to socialize and refresh their perspective on the business at hand. Let Them Eat Cake. Serve food and beverages following the meeting so there is a reason to conclude the business meeting and to encourage attendees to stick around. This is a positive way to end the meeting and leave a good taste in their mouths (literally!). Draw for a Prize. Make returning proxies and attending the meeting fun by including a drawing for, say, a Dinner for Two certificate. Add the names of those that return proxies and also those that actually attend the meeting. That way, those that return their proxy get two chances to win if they show up. Either way, you’ve encouraged members to help satisfy quorum requirements. (more…)

search for : homeowner association meeting

Real estate agents would say that the more you tell them, the better they can negotiate on your behalf. However, the degree of trust you have with an agent may depend upon their legal obligation. Agents working for buyers have three possible choices: They can represent the buyer exclusively, called single agency, or represent the seller exclusively, called subagency, or represent both the buyer and seller in a dualagency situation.

In a traditional relationship, real estate agents and brokers have a fiduciary relationship to the seller. Be aware that the seller pays the commission of both brokers, not just the one who lists and shows the property, but also to the sub-broker, who brings the ready, willing and able buyer to the table. It most cases you will have 2 broker’s splitting the commission. Dual agency exists if two agents working for the same broker represent the buyer and seller in a transaction. A potential conflict of interest is created if the listing agent has advance knowledge of another buyer’s offer. Therefore, the law states that a dual agent shall not disclose to the buyer that the seller will accept less than the list price, or disclose to the seller that the buyer will pay more than the offer price, without express written permission. Many times it makes sense to “assign” someone in your office one side of the transaction, thus assures there is no conflict of interest. (more…)

search for : Real estate agent, dualagency, real estate agent, broker, fiduciary relationship

Fannie Mae is a government-sponsored enterprise, as are Ginnie Mae and Freddie Mac. The Federal National Mortgage Association (FNMA or Fannie Mae), Government National Mortgage Association (GNMA or Ginnie Mae) and Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac) are all “secondary market lenders.” Fannie and Freddie subsidize the real estate mortgage market by buying mortgage loans originated by banks and other lending institutions. They also package mortgages and sell them to insurance companies, pension funds, and other financial institutions as mortgage-backed securities.

Fannie Mae was created by Congress in 1938 as a government agency to buy mortgages from lenders, creating a secondary market for loans insured by the FHA. Congress had created the Federal Housing Administration in 1934 to prop up real estate by providing governmental mortgage insurance for lenders. The federal government has also created the Government National Mortgage Association, GNMA or Ginnie Mae, to provide subsidized loans. A bank can originate a below-market loan to a low-income borrower, and then sell it to Ginnie Mae at full market value; the government pays the difference. (more…)

search for : Fannie Mae, Ginnie Mae, Freddie Mac, Federal National Mortgage Association, Government National Mortgage Association, Federal Home Loan Mortgage Corporation

USA Today reports that the National Association of Realtors is forecasting a 5.3 percent increase in rents this year, which is about double last year’s increase. The paper reports it would be the largest increase in rents since 2000, when the Internet boom and a white hot job market sent lots of young adults out of college looking for places to live. The last six years have seen a boom in new home construction, though, along with low mortgage rates, which helped many former renters move into their own homes, and helped keep rent increases more modest.

Rising rents is one of the factors in the higher-than-expected jump in consumer prices in the April reading from the Labor Department. In addition to making home purchases less affordable, the recent housing boom led many investors to convert apartment buildings to condominiums to try to cash in on the rise in real estate prices. One out of three apartment buildings sold last year were converted into condos for sale, the paper reports, and that took 191,400 apartments off the market, according to the Realtors. In addition, the newspaper reports the number of new apartment buildings under construction is down this year. (more…)

search for : National Association of Realtors, Internet, new home construction, real estate prices, apartment

The cold, clear water of LeConte Creek cascades over moss-covered boulders, lingers momentarily in small pools skirted by dense rhododendron and then rushes on through the hemlock, poplar, birch and maple forest. It’s here and in a handful of other streams in the Great Smoky Mountains National Park that the brook trout _ the only trout native to the eastern United States and more specifically to the southern Appalachians _ is making a comeback.

Imperiled from Georgia to Maine by decades of pollution, poor land management and competition from nonnative brown and rainbow cousins, “brookies” are regaining a foothold in the country’s most visited national park on the Tennessee-North Carolina line. For the first time in 30 years, catching and keeping brook trout became legal again in the Smokies under an experimental program begun in April. The announcement came just days before a coalition of conservation groups, the U.S. Fish and Wildlife Service, the U.S. Geological Survey and fish and game departments in 17 states announced an Eastern Brook Trout Joint Venture to restore brook trout habitat. (more…)

search for : rhododendron, Great Smoky Mountains National Park, Appalachians, Georgia to Maine, brookies, Tennessee-North Carolina, U.S. Fish and Wildlife Service, U.S. Geological Survey, Eastern Brook Trout Joint Venture

Mortgage rates row above 6% Housing prices continue to climb, and mortgage rates are on the rise. That’s double trouble for people looking to buy a home. In the past three years, the monthly cost of buying a typical house in the Richmond area shot 72 percent higher, thanks to the higher rates and prices. Monthly payments are 34 percent higher than just one year ago. And that doesn’t include escalating real.

Compared with just one year ago, your income would have to go up 20 percent to afford the same house. And not many people are seeing those kind of salary increases. If you bought an average-priced house — $179,036 — in the Richmond area in May 2003, you could expect to pay about $1,004 a month, excluding taxes and insurance. A year ago, the payment jumped to $1,288, based on a $221,493 house, the average price. Today, it would be $1,729, with the average climbing to $268,161. That’s using a 30-year, fixed-rate mortgage to finance the total purchase price. For the sake of making a clean comparison, assume no down payment. (more…)

search for : mortgage rates, Monthly payments, salary increase, taxes and insurance

To impress first-time buyers in today’s dynamic real estate marketplace, you have to work harder than ever before. They’re self-educated about market trends, use the Web to narrow their search before they call you, and have received no shortage of homebuying advice from family and friends. As savvy as they are, this new breed still benefits greatly from your expertise — if you can deliver it in the right way. By tuning into their needs and making the homebuying process as stress-free as possible, you’ll be the one they contact when they’re ready for their next move, and the move after that, and the move after that.

When asked what they want most from their real estate practitioner, first-time buyers say they need help finding the right home, negotiating price, handling paperwork, determining what comparable homes are selling for, and arranging financing. A hefty 79 percent use the Web as part of their home search. Because they rely so heavily on the Internet to research the market, today’s first-time home buyers tend to be very informed on housing styles, prices, loan programs, and neighborhoods. They use this data to narrow their search, sort of like window shopping. (more…)

search for : real estate market, homebuying advice, real estate, financing, Internet

Wildlife officials in five Southeastern states say the Florida panther is unlikely to find a home outside the Sunshine State because of public angst and a lack of wide, roadless spaces. The U.S. Fish and Wildlife Service roiled debate in January when the agency made public a recovery plan that called for reintroducing the predator to its old tromping grounds. Paul Souza, Fish and Wildlife’s deputy regional director in Vero Beach, acknowledges it will be tough selling people on the idea of accepting panthers into their midst. “We know this is one of the most complex conservation questions in the country and in the world,” Souza said.

Today, there are about 80 panthers left, making it one of the most endangered species on the planet. With the exception of a handful of males in Central Florida, all of them are squeezed into the marshes south of the Caloosahatchee River — and running out of room fast. “South Florida is simply not big enough to have the species delisted,” said Chris Belden, a Fish and Wildlife biologist. “It would be impossible to recover the panther without reintroduction.” To move panthers from the “endangered” to “threatened” list, the recovery plan calls for the creation of two populations with at least 240 individuals. Scientists estimate that each population will require a relatively unfragmented habitat that is 8,000 to 12,000 square miles, or roughly the size of Massachusetts. (more…)

search for : Southeastern states, Florida panther, U.S. Fish and Wildlife Service, conservation question, Caloosahatchee River