Archive for November, 2010
Real estate involves more than just buying and selling homes or commercial property. Depending on whether a person is a real estate agent or real estate broker, their responsibilities can change.
Real estate agents are primarily involved in the buying and selling of homes or commercial property. They help clients wanting to sell a home decide what a good asking price is based on appraisals, the current housing market, and other things. They also help with advertising, as well as handle the showing of the property.
Depending on a state’s requirements, a real estate agent may only be able to deal with homes or buildings, and not vacant land. A real estate broker, however, can show or deal with both land and structures.
Once a prospective buyer enters into a contract on a home or property, the real estate broker conducts title searches, and performs other functions to ensure that the real estate in question is being sold legitimately. Brokers also work with buyers to complete the home buying process as much as possible before the final paperwork is signed.
Real estate agents and brokers may work for a company or they may be independent agents or brokers. Independent agents and brokers can show homes or property for a number of companies, rather than having to limit themselves to only those which are being handled by their companies. This can be an advantage for both the agent and broker and buyer, as they have the opportunity to view more properties than they might otherwise have.
Good real estate agents and brokers conduct business with the buyer or seller in mind, or they should. Yes, they earn a commission on every sale, but their main interest should be making sure an agreement is reached that will be benefit all parties involved.
Basically, the housing market is a term for the number of homes being bought and sold within a specific time period. The numbers are taken from homes that are bought directly from the homeowner or sold directly by the homeowner as well as from those that were purchased or sold through real estate agents, brokers, or other professionals.
Sometimes, you will hear the phrase, “It’s a buyer’s market,” or “it’s a seller’s market.” If it’s a buyer’s market, this means that it’s either a good time to buy a home because prices or interest rates are low, there is an abundance of houses to choose from and buyers have a lot of negotiation room. If it’s a seller’s market, it means that there may not be as many properties available, at least at the price the seller is offering, and the seller pretty much “holds all the cards.” Housing prices typically run higher when it is a seller’s market.
The housing market fluctuates, just like the stock market, and the fluctuations are caused by the same thing: the economy. If the economy is good and things are going well, this reflects in the housing market. If things are not so good, then the housing market will reflect this also.
Keeping up with the housing market is wise, but remember that it involves a lot more than just home prices and interest rates. It can also involve the amount of equity that a home can earn, mortgage terms, and other things that are involved with home ownership.
If you want to buy a home or sell your home, you might want to study the trends over a few months, rather than make any decision based on the latest information. By doing this, you will have a better understanding of the housing market picture. A Realtor can help you study trends and make the ultimate decision.
Many people considering investing in real estate to use as rental property think it’s a relatively simple way to make money. They imagine that once they buy the real estate, they’ll find tenants, have them sign a lease and then sit back collecting rental checks every month. However, this isn?t the case since there are many rules and regulations involved with renting property that the owner must be aware of before he leases it.
First, while investing in real estate to rent to tenants is an excellent way to make money, it’s important to know that the regulations surrounding rental property vary from state to state and can be complex. There are issues involving how much notice you must give a tenant before entering the property, what constitutes a late rent payment, and how much notice a tenant must be given before they face eviction. Unfortunately, in today’s economic climate, concerns over late rent payments and possible eviction are very valid.
There are also simpler, but still important, rules regarding issues such as what stays in the house once the tenants vacate, whether or not pets are allowed and how clean tenants must keep the property. After these rules are decided upon, they must be enforced in the event that a tenant that does not follow the rules and regulations agreed upon in the lease.
When property owners are unsure of the rules and regulations to enforce and the laws regarding rental property in their area, they may want to contact an expert. A little preparation and education before actually renting the property can mean the difference between making huge profits and losing money. Experts in property management can help. They can inform property owners of countless rental issues and also help enforce the rules and regulations of the rental agreement, making the real estate investment a profitable one.