How to Choose the Right Real Estate Agent

Buying a home can be a complicated process, so having a professional real estate agent can be a real help in locating the right property at the right price. But how do you choose the right agent to work with? Here are some steps to help you choose the right person to work with.

Interview agents from several different agencies. See how long they have been working and see how successful they are. Find out if there have been complaints filed with the State Board of Realtors. Find someone you can work well with. Remember that an agent is a salesperson. If you are buying, their job is to sell to YOU. Just keep that in mind as you work with him/her, and don’t let on if you are in desperate circumstances or that you are in a big rush to buy.

Find an agent familiar with the neighborhood and the housing market where you are looking. They should know what’s available and what houses are going for in that area. Find an agent who is successful selling home in that neighborhood. Successful agents often have many homes listed, where part-time or unsuccessful agents will have only a few. Successful agents make it their business to focus on your needs and work to make it happen.

Find out what kind of customer service you will receive from an agent. Talk to people you know to find out who they have used and get references from them. Find an agent they have had a good experience with. You will want an agent who is always willing and available. Be sure phone calls are returned quickly. The agent should stay in contact with you regularly. You want an agent who is professional and assertive.

Real estate agents have access to the Multiple Listing Service (MLS) which keeps an inventory of all properties for sale by region. A good agent should be able to use the MLS to help find a home for you and should be able to match your desires such as schools, shopping areas, etc., to the property. Make sure your agent knows what you are looking for.

Be sure to read all working contracts, including the fine print, before signing with an agent. Know what is expected of you and what they will agree to do. Ask the agent to show you all the required disclosure forms so you know your rights.

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Choosing the Best "For Sale by Owner" Listing Service For Your Needs

Choosing to list a home independently rather than using a realtor can save thousands of dollars. However, failure to properly advertise a home that is listed as “For Sale by Owner,” or FSBO, can cause the home to remain on the market and not sell. FSBO homes are actively competing with homes listed by real estate agents who spend a great deal of money and time actively marketing their more popular listings. As a result these listings are prominently displayed and highly visible to potential buyers. FSBO homes can be effectively sold when effectively advertised and displayed.

Since many sellers choosing to list their home FSBO have little to no advertising experience, many websites have been created to guide homeowners through the “For Sale by Owner” process. These sites do cost money, however the expense is generally thousands less than a seller would pay to list their home through an agent.

When selecting an FSBO site it is important to carefully evaluate several important factors to insure that the money spent will actually help to sell the home. While choosing to list a home FSBO can save thousands of dollars, the money will only be saved if the home sells. Therefore, it is important to wisely consider and select the best FSBO site for your needs, even if this means spending a little more.

Prominence Matters

There are many websites available to help owners showcase their “For Sale by Owner” homes. Some are well known and highly trafficked, other companies offer much less exposure due to the fact that they are not well-known or popular sites. Selling a home is simple mathematics. When more potential buyers see a listing, more will visit for a showing. More showings will result in the possibility of more offers. Offers lead to the eventual selling of the home. It makes sense then that having many people view the home listing is critical to eventually selling the home. Choosing a well-known company with a popular site is very important.

MLS Listing Number

Obtaining an MLS listing number will insure that your home will be accessible to potential buyers and real estate agents as they perform searches. Failure to obtain an MLS listing number will result in much less visibility for your home. While an MLS number can be obtained on your own, it is wise to remember that the best FSBO sites generally include them in all of their packages. Before selecting an FSBO service, be sure that they will be able to provide this critical home selling tool.

Customer Service

Many FSBO sellers encounter questions and frustration as they attempt to market their home. The many tasks required to effectively sell a home can be daunting. This is especially true for customers with limited technological expertise. It is important to have additional help available should questions or problems arise during the selling process. Examine potential FSBO service’s customer service policies and availability. Be sure to select a company that has a policy that will coordinate with your needs and schedule.

Professional Website and Materials

It is unwise to select any FSBO service without first thoroughly examining their website and promotional materials. A professional looking website, free from grammar and spelling errors, indicates the company’s ability to effectively market your home. Find a service with an attractive website. If they include promotional materials in your package like signs and flyers, be sure that these also look professional. You are paying for every element included in a package and it is critical that these elements will be able to be used to attract potential buyers. Unprofessional materials and websites may actually repel the customers that you are trying to attract.

Extras

Many different FSBO services offer a variety of packages to meet individualized needs. Each package carries different benefits and can include a variety of valuable extras. These can include signs and flyers for marketing purposes, professional photography of the home to use in creating the listing, or guarantees which offer money-back if the home is unable to sell. These extras can be valuable tools and should be considered as various companies are weighed.

Cost

Since you are choosing to sell your home FSBO, cost savings are likely an important consideration. However, it is important to consider value in addition to cost. Determine the reasons behind each company’s pricing method. Some may be more expensive but worth the additional value, while others may cost less and in turn provide much less. Weigh cost and services provided to select a company that will provide the best value.

It is impossible to compare FSBO listing services by price alone. Website prominence and visibility play an important factor in determining package pricing. More prominent companies generally charge more than their lesser known competitors, for good reason. You are paying for every aspect of an FSBO listing service and website prominence is a key factor.

Making your Decision

While choosing to list a home “For Sale by Owner” can save thousands of dollars, success is dependent on effective marketing and advertising. FSBO services can provide an effective and useful marketing element when selected wisely. A good FSBO service is worth an investment because it can help to make sure that your home actually sells.

By selecting a reputable company with a prominent website, you will be able to showcase your home to many potential buyers. Since every service is different, it is important to select the best service to increase the likelihood of selling the home. An ineffective FSBO service is a waste of money and time.

Real Estate Agents and the Internet – How to Buy and Sell Real Estate Today

Then and Now

Ten years ago, a search for real estate would have started in the office of a local real estate agent or by just driving around town. At the agent’s office, you would spend an afternoon flipping through pages of active property listings from the local Multiple Listing Service (MLS). After choosing properties of interest, you would spend many weeks touring each property until you found the right one. Finding market data to enable you to assess the asking price would take more time and a lot more driving, and you still might not be able to find all of the information you needed to get really comfortable with a fair market value.

Today, most property searches start on the Internet. A quick keyword search on Google by location will likely get you thousands of results. If you spot a property of interest on a real estate web site, you can typically view photos online and maybe even take a virtual tour. You can then check other Web sites, such as the local county assessor, to get an idea of the property’s value, see what the current owner paid for the property, check the real estate taxes, get census data, school information, and even check out what shops are within walking distance-all without leaving your house!

While the resources on the Internet are convenient and helpful, using them properly can be a challenge because of the volume of information and the difficulty in verifying its accuracy. At the time of writing, a search of “Denver real estate” returned 2,670,000 Web sites. Even a neighborhood specific search for real estate can easily return thousands of Web sites. With so many resources online how does an investor effectively use them without getting bogged down or winding up with incomplete or bad information? Believe it or not, understanding how the business of real estate works offline makes it easier to understand online real estate information and strategies.

The Business of Real Estate

Real estate is typically bought and sold either through a licensed real estate agent or directly by the owner. The vast majority is bought and sold through real estate brokers. (We use “agent” and “broker” to refer to the same professional.) This is due to their real estate knowledge and experience and, at least historically, their exclusive access to a database of active properties for sale. Access to this database of property listings provided the most efficient way to search for properties.

The MLS (and CIE)

The database of residential, land, and smaller income producing properties (including some commercial properties) is commonly referred to as a multiple listing service (MLS). In most cases, only properties listed by member real estate agents can be added to an MLS. The primary purpose of an MLS is to enable the member real estate agents to make offers of compensation to other member agents if they find a buyer for a property.

This purposes did not include enabling the direct publishing of the MLS information to the public; times change. Today, most MLS information is directly accessible to the public over the Internet in many different forms.

Commercial property listings are also displayed online but aggregated commercial property information is more elusive. Larger MLSs often operate a commercial information exchange (CIE). A CIE is similar to an MLS but the agents adding the listings to the database are not required to offer any specific type of compensation to the other members. Compensation is negotiated outside the CIE.

In most cases, for-sale-by-owner properties cannot be directly added to an MLS and CIE, which are typically maintained by REALTOR associations. The lack of a managed centralized database can make these properties more difficult to locate. Traditionally, these properties are found by driving around or looking for ads in the local newspaper’s real estate listings. A more efficient way to locate for-sale-by-owner properties is to search for a for-sale-by-owner Web site in the geographic area.

What is a REALTOR? Sometimes the terms real estate agent and REALTOR are used interchangeably; however, they are not the same. A REALTOR is a licensed real estate agent who is also a member of the NATIONAL ASSOCIATION OF REALTORS. REALTORS are required to comply with a strict code of ethics and conduct.

MLS and CIE property listing information was historically only available in hard copy, and as we mentioned, only directly available to real estate agents members of an MLS or CIE. About ten years ago, this valuable property information started to trickle out to the Internet. This trickle is now a flood!

One reason is that most of the 1 million or so REALTORS have Web sites, and most of those Web sites have varying amounts of the local MLS or CIE property information displayed on them. Another reason is that there are many non-real estate agent Web sites that also offer real estate information, including, for-sale-by-owner sites, foreclosure sites, regional and international listing sites, County assessor sites, and valuation and market information sites. The flood of real estate information to the Internet definitely makes the information more accessible but also more confusing and subject to misunderstanding and misuse.

Real Estate Agents

Despite the flood of real estate information on the Internet, most properties are still sold directly through real estate agents listing properties in the local MLS or CIE. However, those property listings do not stay local anymore. By its nature, the Internet is a global marketplace and local MLS and CIE listings are normally disseminated for display on many different Web sites. For example, many go to the NATIONAL ASSOCIATION OF REALTORS Web site, http://www.realtor.com, and to the local real estate agent’s Web site. In addition, the listing may be displayed on the Web site of a local newspaper. In essence, the Internet is just another form of marketing offered by today’s real estate agent, but it has a much broader reach than the old print advertising.

In addition to Internet marketing, listing agents may also help the seller establish a price, hold open houses, keep the seller informed of interested buyers and offers, negotiate the contract and help with closing. When an agent provides all of these services it is referred to as being a full service listing arrangement. While full service listing arrangements are the most common type of listing arrangement, they are not the only option anymore.

Changes in the technology behind the real estate business have caused many agents to change the way they do business. In large part, this is due to the instant access most consumers now have to property listings and other real estate information. In addition, the Internet and other technologies have automated much of the marketing and initial searching process for real estate. For example, consumers can view properties online and make inquires via email. Brokers can use automated programs to send listings to consumers that match their property criteria. So, some agents now limit the services they offer and change their fees accordingly. An agent may offer to advertise the property in the MLS but only provide limited additional services. In the future, some real estate agents may offer services in more of an ala carte fashion.

Because of the volume of real estate information on the Internet, when people hire a real estate agent today they should look at the particular services offered by the agent and the depth of their experience and knowledge in the relevant property sector. It is no longer just about access to property listing information. Buyers and sellers historically found agents by referrals from friends and family. The Internet now provides ways to directly find qualified agents or to research the biography of an agent referred to you offline. One such site, AgentWorld.com, is quickly becoming the LinkedIn or Facebook for real estate agents. On this site an agent can personalize their profile, start a blog, post photos and videos and even create a link to their web site for free. Once unique content is added to their profile page the search engines notice!

Some have argued that the Internet makes REALTORS and the MLS less relevant. We believe this will be false in the long run. It may change the role of the agent but will make knowledgeable, qualified, and professional REALTORS more relevant than ever. In fact, the number of real estate agents has risen significantly in recent years. No wonder, the Internet has made local real estate a global business. Besides, Internet or not, the simple fact remains that the purchase of real property is the largest single purchase most people make in their life (or, for many investors, the largest multiple purchases over a lifetime) and they want expert help. As for the MLS, it remains the most reliable source of real estate listing and sold information available and continues to enable efficient marketing of properties. So, what is the function of all the online real estate information?

Online real estate information is a great research tool for buyers and sellers and a marketing tool for sellers. When used properly, buyers can save time by quickly researching properties and, ultimately, make better investment decisions. Sellers can efficiently research the market and make informed decisions about hiring an agent and marketing their properties online. The next step is to know where to look online for some of the best resources.

Internet Strategies

In the sections that follow, we provide strategies and tips on how to use the Internet to locate properties for sale and research information relevant to your decision to purchase the property. There are many real estate Web sites from which to choose and although we do not mean to endorse any particular Web site, we have found the ones listed here to be good resources in most cases or to be so popular that they need mention. One way to test a Web site’s accuracy is to search for information about a property you already own.

Finding Real Estate for Sale

Despite the widely available access to real estate listings, many believe that MLS databases continue to offer the most complete and accurate source of real estate information. Most MLSs now distribute content to other Web sites (primarily operated by real estate agents). An excellent starting point for MLS originated content is the national NAR Web site, realtor.com, which is also the most popular web site for searching real estate listings. Virtually all local and regional MLSs have an agreement with realtor.com to display much of their active listing inventory.

Some local and regional MLS systems also have a publicly accessible Web site. However, to get complete information you will most likely still need to find a qualified local REALTOR. Many local real estate agents will also provide their customers (via email) new listings that are input into the MLS that match their predefined criteria. This can be very helpful to a busy buyer.

There are also many Web sites that display both real estate agent listed and for-sale-by-owner properties. Some of the more popular Web sites include zillow.com and trulia.com. These sites offer other services too. For example, zillow.com is best known for its instantaneous property valuation function and trulia.com for providing historical information. Another source of properties for sale is the state, regional, and local Web sites associated with brokerage companies; for example, remax.com or prudential.com. Search engines like yahoo.com and classified advertising sites like craigslist.com also have a large number of active real estate listings.

One key difference between these sites is how much information you can access anonymously. For example, at trulia.com you can shop anonymously up to a point but then you will need to click through to the agent’s Web site for more information. Many new real estate search engines allow you to sift through listings without having to fill out a form. The best strategy is to browse a few of the sites listed above to find geographic areas or price ranges that are interesting. Once you get serious about a property, then that is the time to find a qualified REALTOR of your choice to conduct a complete search in the local MLS.

It also never hurts to search the old-fashioned way by driving through the neighborhoods that interest you. There is no substitute for physically, not virtually, walking the block when you are making a serious investment decision. In this sense, real estate is still a very local business and standing in front of the property can lead to a much different decision than viewing a Web page printout.

Valuing Real Estate

As we mentioned, one of the most popular real estate tools is zillow.com’s instant property valuation. Just type in an address and in and you get a property value. It even charts the price ups and downs, and shows the last date sold (including price) and the property taxes. There are other sites that provide similar tools such as housevalues.com and homegain.com. Unfortunately, many people use these estimated values alone to justify sales prices, offers and counteroffers. However, these are only rough estimates based on a formula that incorporates the local county sales information. These estimates can swing wildly over a short period of time and do not appear to always track actual market changes, which are normally more gradual. In addition, these estimates do not automatically take into account property remodels or renovations or other property specific or local changes. This is not to say these sites are not useful. In fact, they are great starting points and can provide a good ball-park value in many cases.

When it comes to getting a more accurate value for a particular property, there are other strategies that are more trustworthy. One is to go directly to your county’s Web site. More often than not the county assessor’s area of the Web site provides sales and tax information for all properties in the county. If you want to research a particular property or compare sales prices of comparable properties, the local assessor’s sites are really helpful. When you visit a county’s Web site you are getting information straight from the source. Most counties today publish property information on their Web sites. Many times you cannot only see the price a previous owner paid, but the assessed value, property taxes, and maps. Some county assessors are now adding a market and property valuation tools too.

Given the importance of valuation to investing, we are also going to remind you of the two most important (non-Internet) valuation methods: real estate agents and appraisers. Working with a local REALTOR is an accurate and efficient way to get value information for a property. While one of the primary purposes of the MLS is to market the active property listings of its members, the system also collects sales information for those listings. REALTOR members can pull this sales information and produce comparable market analyses (sometimes called CMAs) that provide an excellent snapshot of a particular property’s value for the market in a particular area.

Finally, the most accurate way to value a property is by having a certified appraiser produce an appraisal. An appraiser will typically review both the sold information in the MLS system as well as county information and then analyze the information to produce a valuation for the property based on one or more approved methods of valuation. These methods of valuation can include a comparison of similar properties adjusted for differences between the properties, determine the cost to replace the property, or, with an income producing property, determine a value based on the income generated from the property.

The Neighborhood

There are many ways the Internet can help you get the scoop on a particular neighborhood. For example, census data can be found at census.gov. You can also check out the neighborhood scoop at sites like outside.in or review local blogs. A blog is a Web site where people discuss topics by posting and responding to messages. Start by looking at placeblogger.com and kcnn.org/citymediasites.com for a directory of blogs. Trulia.com has a “Heat Map” that shows how hot or cold each neighborhood is based on prices, sales, or popularity among the sites users.

Schools

When it comes to selling residential property or rental properties that cater to families, the quality of the area school district makes a huge difference. There are many Web sites devoted to school information. Check out greatschools.net or schoolmatters.com. Most local school districts also have their own Web site. These sites contain a variety of information about the public schools and the school district, including its district demographics, test scores, and parent reviews.

Finding the Right Real Estate Agent

A recent addition to the Internet boom in real estate information is Web sites that let real estate agents market their expertise and local knowledge by displaying their professional profiles and socially networking with blogs. You can search to find an agent with a particular expertise, geographic area of specialization, or an agent offering specific services. The web site AgentWorld.com lets users quickly and easily find an agent with the right expertise using keyword searches and clean and simple agent profiles. AgentWorld.com also enables agents to post personalized blogs, photos and videos to help consumers find the best agent for their needs. Plus, many agent profiles include a direct link to the agent’s web site where you will likely find the local MLS listings.

Maps and Other Tools

The Internet has made mapping and locating properties much easier. To get an aerial view or satellite image of a property or neighborhood, go to maps.live.com or maps.google.com or visit walkscore.com to see how walk-able a particular property is. These sites can give you an idea of the neighborhood characteristics and the types of entertainment, restaurants, and other facilities that are within walking distance of the property. Maps.Live.com provides a view at an angle so you can see the sides of houses and Maps.Google even gives you a 360 degree street-level view for certain neighborhoods. If you have not tried one of these satellite map Web sites, you really should if only for amusement.

Final Thoughts on Internet Strategies

The Internet is a very effective research and marketing tool for real estate investors but is not a replacement for a knowledgeable experienced real estate professional. The Internet can save you time and money by enabling quick and easy property research and marketing options. Sites like AgentWorld.com also help you efficiently find a REALTOR who fits your buying or selling needs.

Always remember, when it comes to Internet strategies for real estate: More knowledge is better. You need to use the Internet to build your knowledge base on a target property or to find a real estate agent with expertise you need. However, the big caution here is that the Internet should not replace human judgment and perspective, expert advice or physical due diligence-keys to successful investing.

FSBO Jargon – The Language of the FSBO Seller

When you decide to sell your home without a real estate agent, you enter the world of the FSBO sellers. As with any new experience, you need to understand some of the basic language.

Selling your home on your own makes a lot of sense from a financial perspective. Even though the real estate market has cooled off considerably, home prices are still pumped up compared to historical references. At 6 percent, the commission of a real estate agent can add up to a lot of money. On a $500,000 home, we are talking about a whopping $30,000, which can really eat into the equity you have built up over the years.

If you make the decision to go FSBO, you need to understand a few things. You are essentially taking the oars of the boat and doing all the rowing yourself. This means you need to understand both the concepts involved and the language used during the real estate process. Here are some tips.

FSBO – This term is short for “For Sale By Owner”. It is important to understand that it is used as a noun in the real estate industry. Simply put, you are a FSBO. Agents helping buyers will refer to you and your property by this term. Selling agents will also contact you frequently to try to convert you from a FSBO to a listing client, to wit, they want you to hire them.

FFMLS – This term refers to Flat Fee Multiple Listing Service. Many people that consider selling their home with an agent worry that they will not be able to list their property in the multiple listing service for the area. In the past, the “MLS” was a list controlled solely by agents and realtors. These days, there are ways to access it without using a real estate agent. You can pay a Flat Fee for your listing, thus the name.

CMA – This term refers to a Comparable Market Analysis. It is essentially a breakdown of homes in your neighborhood. Information includes things such as the listing prices of homes, valuations and so on. As a FSBO seller, you can obtain a CMA by just contacting a real estate agent. They use these reports as lead generators and give them out for free. Tell them you are a FSBO and they will still give you one. The eternal hope of the agent, of course, is that you will fail as a FSBO and hire them.

Obviously, there are many terms that arise in the real estate world. Most apply whether or not you are using an agent to promote your property. The above represent a couple you need to know as a FSBO.