Posts Tagged as Brokerage Trends

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What Every New Real Estate Agent Should Know

Don’t let being wet behind the ears in your real estate career leave you in hot water. There are a few real estate business tips every newbie should know to ensure a good start.

Planning for success
Your first year in real estate requires careful planning to avoid sidestepping key ingredients in your efforts to make your first buck. Where should you start?

• Find a brokerage
Your brokerage of choice may vary depending on your knowledge, mentoring needs, and financial expectations. Be sure to visit several before making this important decision.

• Expect the “split”
This can be as low as 60/40 when you start out and require a lot of handholding, but usually rises as you reach sales goals. Standard splits for successful agents are typically around 80/20, but can go as high as 90/10. (Don’t forget the “split” with the agent selling the home as well!)

• Come well-equipped
In addition to your license and Board of Realtors dues, you’ll also need access to MLS, a laptop, smartphone, automobile, cards, signage, and professional clothing.

A look ahead
As your real estate career matures through this first year, don’t forget to also take great pains to learn your neighborhood in depth – insider info can be key to cinching sales. Continue to hone listening skills to better understand their “want list” necessary to create that must-have vibe. Don’t let your marketing efforts slack – create a plan that includes daily goals, as well as a path to developing a strong online presence. You’ll soon find your niche, which will allow you to build that nest egg you’ve been dreaming of. And never overlook the importance of continued learning, no matter how “seasoned” you think you are – knowledge will boost your brand and your budget.

Do you have the real estate business tips you need to ensure a happy, healthy career? Set off on the path to success with Properties Online today.

Closing Costs by State

Which States Have the Highest and Lowest Closing Costs?

After would-be buyers scrounge up a down payment, secure financing, and negotiate a winning offer, many are left with sticker shock following the announcement of closing costs, a not-so-tiny detail amongst real estate trends of ever-climbing costs in property purchases.

All things being equal – closing costs are not
Overall, closing costs tend to run between 3% and 6% of purchase price. However given the cost of home appraisals, credit reports, attorney and numerous other fees, not to mention highly-variable title and homeowner’s insurance, buyers can find hundreds of dollars in difference between lenders – so regardless of state, it pays to shop around.

What states stick-it to home buyers the most?
Given a $200,000 home, a 20% down payment, and excellent credit, let’s take a look at real estate trends involving closing cost quotes from these top-5 notoriously expensive states…

• Hawaii
The highest average closing costs in the nation at $2,655. (Which in reality is infinitely more painful, as the island-state’s median listing price is in the $510,000 range.)

• New York
An average $2,560 in closing costs. (Average median home price $720,000 – yowsa!)

• North Carolina
Averaging $2,409 in closing costs. (Average median home price $144,600. Whew.)

• Delaware
Averaging $ 2,358 in closing costs. (Average median home price, $211,700. Not too shabby.)

• South Carolina
Averaging $2,322 in closing costs. (Average median home price, $139,500. A bargain!)

A helping hand
Keeping an ear out (or researching) lenders in your area (and online) with the lowest closing costs to pass on to buyers is in your best interest. Help them understand what costs include, so last minute budget-busters don’t sink sales. Also help them understand that in this market, it’s unlikely closing costs will be covered by sellers, who often have many other interested buyers.

Don’t let the latest real estate trends put a squeeze on your sales. Find the help you need to stay on top, only with Properties Online.

PART 2: Brokerage Alliances – What’s In It for You?

Big Firm Alliances
Big Firm Alliances

In our past installment on brokerage alliances, we discussed the setup and costs associated with the two existing business models, auction-house style and strategic. In this installment, we’ll look at some of the perceived benefits and drawbacks.

Should you invest in these real estate trends?

  • Maybe?
    • Many brokerages point to the powerful branding achieved with alliances.
    • The President/CEO of Sotheby’s states under his brokerage’s 10-year Reology ownership, sales volume has doubled to $15 billion in 2014.
    • BlackRock’s CEO cites the connection between art and high net worth individuals as the culprit.
    • Brown Harris Stevens Realty points to the brokerage’s Christie’s affiliation as bringing about “specific business” through provenance, thus commanding a higher price.
  • Maybe not?
    • Though brand visibility may increase, that doesn’t necessarily translate into high-dollar sales. If alliances made that big of a difference, those firms would have every listing.
    • A Sotheby’s nameplate doesn’t ensure listings are exclusive and the embodiment of luxury lifestyle. Some affiliates list trailer homes on websites.
    • Some opponents believe the marketing system takes advantage of ignorant sellers, who wrongfully anticipate higher sales prices and greater access to buyers, such as those in the foreign market, when actual access to the market, brand recognition, and true referral business is diminished.

Is the proof in the pudding?
Maybe it would be, if anyone knew the ingredients. Firms are by-and-large closed-mouthed about the business they’re gaining through affiliations. While some firms point to evidence the money is there, overall data is nebulous. While many firms advertise the relationships as a means of gaining business, they’ll decline to disclose the volume of deals garnered from them, instead pointing to continued reinvestment in the alliance as proof of success. Relationships are resources, but it’s still unclear as to whether these relationships are actually translating into what matters — commissions.

Ready to ally yourself with real estate trends that work? Find them only at Properties Online.