In the UK bing.com advertises its search engine by someone simply asking another person a question. What then happens is the person rattles of a barrage of information that on its own makes no sense. The same is true with regard to evaluating information as it pertains to real estate.
Anyone with interest in this investment vehicle is aware of the risks involved and tends to swing to the extreme of becoming an information junkie. So much time is spent learning new information that many times it results in analysis paralysis. They have a broad spectrum of tried and tested strategies but are unable to make head or tail of it. This results in delusion and reinforcement of the belief that investing is difficult and only for those who can afford it.
Let us use an every day scenario to illustrate what the evaluation process entails and how it contributes to making decisions. If you were presented with a rotten apple would you say thank you and proceed to eat it? Ok, I heard the “are you crazy comment”! Through exposure, experience and your sense of smell you would know that something is not right and would instinctively say no thank you.
The same applies to real estate investing. Knowing what to look for and being able to identify a rotten apple real estate investment is what you need to be successful. Realizing that not all opportunities that present will fit with your criteria for that “Golden Egg” you are looking for.
The Basic principle involved in evaluating whether or not a real estate venture is worth pursuing is to consider the cost to you and the potential income you stand to gain by the end of the year. This should take into account external factors such as location. That is to say, is the area going through a boom period or it has already peaked and is on the downward trend? What are the risks associated with it as it pertains to the environment as well as economic indicators. Is it located in an area prone to forest fires, if so are you able to work around it. If the answer is no it’s a rotten apple leave it alone.
Real estate and the strength of the economy are intertwined, being able to observe the changes and understand how these changes affect the housing market is basically how you evaluate real estate.
Today’s economy doesn’t make it easy to buy or sell your house these days. Sure it is a buyers market, but sadly, banks are not so quick to lend money…at least not how they used to. And, most of the houses on the market are “short sales” so buyers might have to wait around several months before actually hearing a response from the bank…and that response may likely be “no”. Picture discovering the ideal house, putting in an offer, getting your heart set on purchasing the house only to learn several months later that the bank won’t accept your offer. Unfortunately, this is the reality when dealing with short sales. On the other hand, selling a home today is no picnic either. The fact of the matter is the supply is definitely significantly greater than the demand which will still keep prices low for a long time. Selling your home goes far beyond merely placing a “for sale” sign in your yard or putting your house in the classified ads. Therefore, whether you are buying or selling a home, having a real estate agent to help you out is important when looking for a quick and good deal.
However, with so many real estate agents out there, how does one choose the right person? Listed below are 7 points to look for when deciding on an real estate agent.
1. Conduct an Interview
The easiest way to get to know an agent is by talking to them in person. You could talk about what they think about a particular property, discuss their qualifications, ask about their previous transactions, any difficulties they’ve had with previous deals, and find out if their personality is a good fit with yours. Remember, whether you are buying or selling a home the chances are you will spend a reasonable amount of time with your Realtor so it’s better if you get along. You could also explain to the Realtor what kind of communication you expect and if he or she will be able to reciprocate that expectation.
2. Qualifications
Be sure to check out the real estate agent’s qualifications. Does the person have sufficient experience and knowledge, especially in your local area? They could have an impressive record in other places, but if they have limited knowledge in your region they won’t be any help to you at all.
3. Referrals
Ask your family and friends if they can recommend somebody. Ask them for information regarding their experience with their Realtor. Remember, nobody knows you better than your friends and family and their is no one you can trust more with their recommendation.
4. Customer Service
A real estate agent ought to be easy to contact and communicate with…especially with the technology we have nowadays. In addition, real estate agents should be working weekends. Sure everybody is allowed their days off and we all need to be able to spend time with the family, but the fact is a Realtor’s job entails working on the weekends so make sure your Realtor is willing to do so. An agent’s customer service represents how professional they are and how seriously they take the job.
5. Familiarity with the Area
This is a critical point when selecting a real estate agent. The agent that you choose should be aware of the market in the region where you are buying or selling your property. The agent should have first hand understanding of the competition in the area, the local schools and community, and of course, the price range.
6. Use of Tools and Technology
These days your real estate agent has to be able to do more than just put your home in your local Multiple Listing Service (MLS). Today’s Realtor should list your home in all the other real estate websites such as Realtor.com, Craigslist, Zillow, Trulia, Oodle and many others. Also, today’s Realtor needs to be familiar with using YouTube and other top video sites as well as social media sites like Facebook and Twitter.
7. Readiness to Hold Open Houses
Ok, the truth is a house is seldom ever sold via an open house. For this reason, it is not essential for your Realtor to do an open house every Saturday and Sunday on every weekend. Nevertheless, open houses do help remind the community that your house is for sale so an open house every few weeks is obviously a good thing.