Real Estate private sale is where a seller does not appoint a broker to sell his property but directly sells it themselves. By going for this option, brokerage cost and other commissions are saved in the process. The seller gains some valuable money this way.Private selling is picking up in many countries. It is up to 15% in some countries like USA, Canada and UK, while it is as low of 2% in Australia. Real estate industry is encouraging private selling in many countries. While in Australia the real estate owners are still lamenting private selling of properties as they tend to lose valuable business.While going for a property sale, always evaluate your property through a professional evaluator. Some of these facilities are found online. Never overprice or under price your property, while selecting the real estate private sale option. It is recommended to seek help from professionals or other related websites, to fix a price for your property. You may even discuss with neighbours who have sold out recently about the going rate or consult the state department for the current price of the property in a particular area.Overpricing your property might land you in trouble, as they a rare to be sold. A property in the market for a long time also causes unnecessary suspicion. It is best to settle the deal as early as possible without being greedy.Once the decision on price is taken, it is advised you either put a sale board or place your property for sale on a good property website. This way you could attract customer sitting at home. Always keep a small buffer for negotiation. Never a property is bought without negotiating. This buffer avoids you from suffering a loss.There are local newspapers which offer real estate private sale option, where you can post an advertisement and sell your property. Though reputed news papers do not allow advertisements free of cost as they are professional agencies.Internet is a hot commodity to for real estate private sale. All you have to do is put up a ‘for sale’ board and wait for the responses from the prospective buyers. Generally, the response is very attractive when compared with real estate agents. Ultimately, the seller saves thousands on commission and other expenses, which he may have to shell out while selling through an agent.Property sites are increasing in number and it has opened the flood gates to real estate private sale. Many property sites are offering free advertisement section for sellers. This technique increases the seller base. These free advertisement facilities are not offered to professional real estate agencies.There are some real estate agencies that go for percentage base commissions. Small time property sellers definitely cannot afford such exorbitant fee. Such charges of course could be borne by large property sellers or buyer. Individuals are free to choose their mode of selling. Nobody can force a seller into the hands of a real estate agent. The seller decides what is best for their situation. Real estate agents can opt for bigger customers who have no time to settle their property.There are two views to a buyer; some buyers feel that the agent is a better intermediary while discussing price issue as they give you honest feedbacks. Certain buyers prefer owner to agents as they wish to deal with the seller directly to avoid tricks played by some agents.A major disadvantage of a real estate private sale is that the buyer is well aware that the seller is saving money through the deal by private sale and may want to share the profit of the sale too. It is sensible of the owner to lower the price for the sake of the buyer as he is anyway going to profit from direct selling.The instant your property is sold you can move on with your life, instead of an unsold asset sitting on the head as priority. The ultimate aim is to sell the house without making any loss and not look for immense profits in the transaction. Never sit on a property for a longer duration as you make lose buyers. Clinch the deal as early as possible using the private selling as an alternative to real estate agents.
IntroductionAs a Real Estate Professional, Investor, Instructor, and Coach, there is one thing that continues to challenge me, why aren’t more Real Estate Agents and Brokers focusing on making successful Real Estate Investors their clients? The following article will try to highlight this opportunity and offer some suggestions on how to align yourself with Investors and grow your business.Why Work With Investors?- Investors are much more focused on the types of property they will purchase than end users, if it meets their investment criteria, they will usually buy it. You will not show them every house in town and still not get an offer!- Unlike the end user who may only be looking for a new home every 3-7 years or longer, active Investors typically will buy multiple properties each year or even per month! If you do a good job for them, they will continue to come back over and over again which means to you a potentially endless commission income stream. In addition, they typically have a significant network of other Investors they could align you with.- Most Investors will be presenting all cash offers on the properties they are interested in, so any mortgaging issues are not a concern- You can leverage off of their experience if you want to consider investing for yourself- Regardless of the economic conditions, successful Real Estate Investors, are busy in each of the four market cycles. Aligning yourself to Investors can provide you with a model that will sustain you during difficult times and provide explosive results during good times.How Can Real Estate Professionals Prepare to Work with Real Estate Investors?This is an area where many RE Professionals can use some improvement. Savvy and successful Investors do not have the time or desire to work with anyone who doesn’t understand their business model and in speaking with thousands of Investors coupled with my over 30 years of investment experience, this is a big problem. Here are a few things to consider as you prepare yourself to work with Investors- Generate a Business Plan that will help create the foundation of your journey. You may want to consider aligning yourself with Coaches and Mentors to help guide you through this process- Consider becoming a Buyer’s Agent and Buyers Agent Certified, this is a critical item for many Investors; they want to make sure they have someone on their team who will be able to negotiate outstanding offers on their behalf- Get your skills honed, you need to take stock on your current skill set and determine where the shortfall may be. Once the skill deficiency has been identified, you should implement an action plan to mitigate it. There are many options available to you for your skill development plans. What Will You Need From Your Investors? The following is a high level checklist of what you should expect from your Investors- Proof of Funds. Like your retail buyers, you would never start showing them properties until you have verified they are qualified borrowers. You should handle Investors the same way. In addition to the standard pre-qualification or pre-approval documents, since many Investors will be paying cash, you will need to get a bank statement or other documents showing where the capital is coming from. Be cautious on any capital source like a 401K Loan in process because there is no guarantee that there will be an approval.Request their investment goals and strategies and should include the following:
Is this a Flip, Wholesale, or Hold property
Try to get information on their past experience
To better support their short and long-term acquisition goals, request their Business Plan
When will they be ready to purchase
How will they be purchasing it (cash, in an LLC, etc)
Targeted investment areas
Criteria for the property and structure
Minimum number of bedrooms and baths
Amount of rehabilitation work they are willing to doGetting Compensation From All Angles When working with RE Investors, your compensation stream can come from a number of sources as follows:- With a Flip Investor, you can earn a commission on both the front end as well as on the back end from the retail or wholesale buyer. You may also be able to get the listing for sale from the person looking to buy the Flip property!- With a Hold Investor, you can earn a sales commission on the purchase as well as a rental commission every time the property turns over with a new Tenant. In addition, where applicable by law, you can also provide property management services, talk about a great business model!- Don’t forget about referrals or commission splitting. As with many successful Real Estate Investors, they may eventually decide to explore investment options outside of your area. By connecting your client to other Real Estate Professionals, you can earn considerable referral fees or commission splits in either handing your client over to them or work as a team. Make sure to discuss these arrangements in advance with your Broker and ensure compliance to any applicable real estate laws.What Will Real Estate Investors Typically Need From You?
Constant monitoring of the market for properties that match your client’s criteria. This will include new listings as well as any price changes.
Comparative Market Analysis performed
Current rent rates
Your experience and guidance in special housing programs (like Section 8)
The potential market price and turn over time on a property after it has been renovated. This is essential because most Investors will work from this number and work backwards to determine their Maximum Allowable Offer (referred to as MAO).How Do I Meet Real Estate Investors?- Attend real estate and home shows- Speak with your Real Estate Broker- Respond to ads placed by Investors- Call on all “We Buy Houses” signs- Attend social and professional business meetings- Using your local MLS database service, track the people who are buying investment properties and do a search on them and make contact.- Join local Real Estate Investors Associations and clubs (you can see many options by conducting an internet search) – Join internet social groups”Wishing you the very best in your path to success and happiness”Carl Schiovone, President”Inaction breeds doubt and fear. Action breeds confidence and courage. If you want to conquer fear, do not sit home and think about it. Go out and get busy. ” Dale Carnegie”He who fears being conquered is sure of defeat.” Napoleon