Category Archives: Real Estate

10 Marketing Skills You Should Have To Become Real Estate Agent Tips by Martin Zialcita

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Real estate is an extremely competitive industry. Real estate agents are pushing constantly to close the next sale, and ensure maximum profits. The greatest worry in a real estate agents mind is how to gain the best deals from their clients. Just like other marketing professionals, real estate agents need particular set of skills. In this post, we look at the top ten skills you must have to become the next successful real estate agent.

Real Estate Agent

#1 Communication Skills

To become a successful real estate agent, you need proper communication skills. This is because communication is the heart of everything you are going to do as a real estate agent. Therefore, we recommend that you develop proper communication skills, so that you can communicate to the property owners effectively, and lead the negotiations such that you will attract maximum profits. Consider that if you are not going to be a good communicator, you will end up losing deals to real estate agents who have well-honed communication skills. Therefore, take time and train yourself how to communicate effectively.

#2 Ability to Understand Social Cues

A real estate agent needs to be able to read body language. Remember that body language could often reveal additional information. For instance, folding of the hands could mean that the customer does not like the deal. In addition, certain facial expressions could express

dissatisfaction. Therefore, if you anticipate becoming a real estate agent, it is important you learn how to interpret various facial expressions and body language in general. While trying to discern the body language, be aware of cultural distinction, and particularly when closing international deals. You can research body language beforehand to avoid behaviors that could be misconstrued.

#3 Integrity

Integrity is an important skill in the real estate business. As a real estate agent, you need the ability to differentiate right from wrong. Therefore, when real estate agents make decisions about

which neighborhoods to promote based on skin color, religion or sex, it is a totally wrong practice. Agents need to have the integrity to tell their clients the truth about values in the marketplace and whatever changes would enhance the perceived property value.

To build a reputation, real estate agents need to provide a great service to every one of their clients. Practicing integrity makes it possible to gain positive reviews and glowing testimonials from the past customers. Therefore, if you are focusing on becoming a real estate agent, consider different ways of improving your integrity levels.

#4 Negotiation skills

Do you have proper negotiation skills? Before registering as a real estate agent, you need to make sure you have proper negotiation skills. Otherwise, you will not make money.  remember that in any real estate deal, the seller wants the highest price for the property, and the buyer wants the lowest price for a property. that does not mean real estate agents will not make money. The truth is that how much you make, depends on your ability to negotiate. Therefore, the agent’s role in the real estate deal is to link the buyer to a seller, with an aim of earning maximum amount as the commission. With proper negotiation skills, the real estate agent can attract maximum profits.

#5 Following Up

One key skill to converting leads into buyers is the ability to follow up, and respond to clients promptly. If you do not follow up, another real estate agent will follow up and close the deal. Therefore, following up is another important skills to have, if you are planning to work as a real estate agent. Remember to treat each lead with honesty and integrity. If you promise to get back to a client within a certain number of days, make sure you share the update as promised the client. The most important thing you need to remember is that you cannot close deals, if you are not good at following up.

#6 Learn To Be Passionate

Passion is what gives the real estate agent a purpose. If you combine your passion as your work, then you will be doing your best in terms of pursuing leads and even throughout the closing process. Becoming passionate about your job motivates oneself and those around you.  Besides, passion drives you into developing a better work environment, and so you can create a more loyal following.

Additional reasons why finding passion is vital include feeling good, attaining success, it becomes difficulty to quit, helps you to attain career growth, and you manage your time much better.

#7 Active Listening Skills

Active listening is a valuable technique that requires the listener to absorb, understand, respond  and retain what is being said. Therefore, when you learn to engage in active listening, you not only understand the message, but also understand their body language. Active listening skill set involves various listening techniques namely:

  • Paying attention
  • Withholding judgment
  • Reflecting what the speaker said
  • Seeking clarification
  • Summarizing
  • Sharing

Therefore, when you have proper listening skills, your customers will want to work with you , appreciate your efforts, and even refer friends and relatives to you.

#8 Problem solving skills

Problem solving is an important skill because it gives you the mechanism for identifying things, figuring out what they are, and determining a course of action to fix the issues. Therefore, as a

real estate agent, you stand a greater chance for meeting your sales goals, satisfying customers and eventually, growing your business tremendously.

#9 Teaching Skills

Clients choose hiring you not only because of your knowledge of the market, but also because you have the ability to educate them and support them throughout the process. Therefore, it is important you learn how you can transfer knowledge effectively, and explain the same concepts repeatedly.

#10 Patience

Patience is an important skill for not only real estate agents, but also other professionals. Consider that sometimes you may be able to sell a property within a day, while under other circumstances it takes months. Therefore, you need to stay calm, but also follow up often.

Conclusion

Are you hoping to venture into real estate? You need the ten skills we have listed here, to achieve success. Therefore, begin learning these skills early enough, and embrace them throughout the career.

Best Cities For Real Estate Investment in Montenegro

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Montenegro is a small country in the center of Europe with mild climate, amiable social environment and an average European standard of living. House prices is relatively low — around 300–400 thousand euros on average in large cities. However, a cheaper option for 30–40 thousand euros can be found in villages.

Real Estate Investment

The most appealing waterfront property in Montenegro is located in the Bay of Kotor, also known as the Boka, with its charming resort towns and rich cultural heritage protected by UNESCO. One more popular location is the Budva Riviera. People come here to purchase property in Montenegro despite the fact that the population density here continues to increase. The following article will help you to understand which cities are most popular with real estate investors and why.

The best cities for rental housing in Montenegro

Resort cities are always the most popular ones. It is profitable to purchase real estate in resort cities for subsequent rental.

Locations

Budva

Budva is a real tourist hub of Montenegro with the Old Town and fortress walls, the seaside citadel of the XV century, ancient churches, and romantic winding streets with houses constructed in traditional Mediterranean architectural style.

Miniature squares attract a huge number of tourists to summer festivals. It is the most popular resort in Montenegro—in summer the population of Budva grows almost 6 times. Therefore, the first options that many foreigners consider when buying a property are apartments in Budva.

Kotor

Kotor is good for both investing and living. Nature surrounded by mountains, a luxurious bay and abundant cultural monuments which date back to the Middle Ages, that’s what attracts tourists and investors from all over the world, but mainly French, Russians, Scandinavians and Germans.

A major seaport with a daily average of 5,000 people arriving on cruise liners, it is also the cultural and historical centre of the country.

Montenegro real estate is profitable in various cities, including the area of Kotor—Prčanj, Dobrota, Stoliv.

Sveti Stefan

Sveti Stefan is rightfully considered a signature city of the coast of Montenegro. In recent years, the demand for the city’s real estate has grown significantly and its infrastructure followed suit. This place attracts those who are fond of spending their holidays on the beach. Sveti Stefan is highly popular with celebrities, thus the prices here are high—about 3–6 thousand euros per square meter.

Herceg Novi

Herceg Novi is one of the largest cities in Montenegro located near the Croatian border. Summers there are warm and dry, with almost no precipitation in the winter months—thus the climate is favourable for permanent living and recreation. When a new seaport had appeared, the city’s real estate experienced a boom in demand.

Tivat: for investing and living

Tivat is a heart of luxury housing with the most fashionable residence complex Porto Montenegro. The second popular location is the chalet village of Tivat Hills. The city is located just 7 km away from Tivat Airport.

The population of Tivat is around 10,000 people. There is a stark contrast in both prices and infrastructure—if you are interested in waterfront real estate in Montenegro and you are looking for some options in new-build properties, they can cost up to 1.5 million euros and even more. In the old areas of the city the prices are considerably lower, 80–90 thousand euros.

Bar

Bar is another main port of Montenegro. It is located near the Mount Rumija. The city is one of the sunniest European locations: the waters here get warmer up to 24-26 °C as soon as the middle of May comes. The historic district of Bar is just 4 km away from the sea.

Today, the town is rightfully recognized as an open-air museum. It was here that the first king of Montenegro was crowned. Next to the Bar, in Mirovica, there is an olive tree which is claimed to be one of the oldest trees in the world. Its age is believed to be more than 2000 years.

Sutomore

One more resort is Sutomore. It attracts investors interested in real estate on the beach in Montenegro. With its picturesque beaches stretching for 2.5 km and a large range of affordable housing, it is a good choice for those who prefer to spend time in calm surroundings together with the family.

Some other popular location in Montenegro

– Perast—an ancient town on the shore of the Bay of Kotor.

– Morinj with its beautiful pebble beach, clear coastal waters and abundant fruit orchards.

– Bigovo with the most beautiful bay in Montenegro, or maybe in the whole Adriatic.

– Bijela with a good ecological situation, as well as unique flora and fauna.

– Luta with its secluded restaurants and ancient palaces near the Lovćen mountain range.

– The city of Cetinje, which resembles an open-air museum with its abundance of religious and historical monuments.

– Petrovac with olive groves and pine forest on the shore of the bay.

– Lustica Bay on the Lustica Peninsula.

What should be taken into account while making a choice

If you are interested in Montenegro real estate, pay attention to the size and infrastructure of the city, its proximity to the sea and popularity with tourists — all these factors affect not only the cost, but also the comfort of your stay in the country.

It all depends on the purpose of buying a house in Montenegro—houses and apartments in Budva, Kotor and Herceg Novi are the most suitable locations for investment purposes. When choosing a property for living, stick to your preferences — there are many secluded villages and developed cities in the country, where cultural and social life is in full swing, especially during the tourist season.

Why You Should Become a Real Estate Agent

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If you don’t relish working a traditional 9-to-5 job, you might want to consider becoming a real estate agent. The number of members in the U.S. National Association of Realtors has continued to increase, reaching 1.4 million in 2019, all-time high, with more and more people discovering the benefits of this career.

Real Estate a Sensible Investment

While it may not be for everyone, it might just be the perfect career for you. Here’s why.

The Earnings Potential

Conventional job earnings rarely increase unless your boss decides to give you a raise or you get a promotion, which can sometimes take years. If you become a real estate agent, there is no limit on what you can earn. The money you make is directly tied to how much and how hard you work. For the homeowner, the cost of selling a house includes realtor commissions, so when you sell a $300,000 property, for example, you’ll typically earn around 3 percent or $9,000. Sell just one of those a month and your earnings are already over $100,000 a year. Of course, that doesn’t include expenses, which will be higher initially with costs for training, the licensing exam, business cards, and marketing. But once you’re licensed and experienced, developing a reputation that brings clients to you, you’ll have fewer expenses and greater earning potential.

More Freedom

A 9-to-5 job can make it feel like you’re chained to a desk, with little freedom, you may not even be able to take a break without asking your employer. A real estate agent is usually his or her own boss – you won’t have to worry about someone lurking over your shoulder all day. You’re essentially running your own small business. While you may have a broker to answer to, it’s not the same dynamic as employer/employee.

Plus, your “office” is mobile, most of your work can be done anywhere using a laptop or iPad and your hours will be influenced by the needs and availability of your customers. If you want to take a two-hour lunch because your brother is in town, or carve out time to go to your daughter’s play, you can. Of course, you’ll often have to work around your customers’ schedules for showings and meetings.

You’ll Get to Meet and Help Lots of People

If you enjoy meeting new people, you’ll have lots of opportunities to do it as a real estate agent. Your job will require socializing and networking, allowing you to put your interpersonal skills to work. You’ll also get to help people through one of the largest financial transactions they’ll encounter in a lifetime, something that’s exciting and stressful at the same time.

Minimal Education

If a college education is out of reach, you won’t have to worry about going into debt to get your degree. To become an agent, typically, all you’ll need is a high school diploma or GED and to pass an exam. In some states, you may have to have some training and take a pre-licensing course but it won’t be nearly as costly or take as long as it would to earn your bachelor’s degree. You may be able to become a licensed agent in just 30 days.

How Do You Sell Your Home Without Estate Agents Or Solicitors?

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Selling your home is often a case of expense after expense after expense, and we can completely sympathise –few people like spending money that they don’t have to. So is it possible to sell your home without using solicitors or estate agents?

Here’s a quick rundown of how you could do just that!

Sell Your Home

Eliminating Estate Agents

If you want to eliminate estate agents, you could just advertise your home locally. Of course, in a world where most people’s first resort is Zoopla or Rightmove, you may struggle if you don’t advertise online. As a result, it could pay to use an online-only agent that simply lists your properties on those sites, and they typically start at around £100 to £200. You cannot directly upload properties to Zoopla or Rightmove, as that requires a long-term subscription, and you would end up paying substantially more (£500 per month or so) for those subscriptions.

Regardless, if you do decide to advertise your house in the local papers then the first thing you’ll need to do is to tidy your home extensively, and then take well-lit photos of each room. It’s a good idea to open the curtains and have all the lights on when you take these photos, and position yourself in a suitable corner so that you get the widest possible angle. Don’t forget to include the garden, the front of the house and the back of the house. If you have any outbuildings, include those.

Next, arrange for an energy performance certificate. If the property has had an EPC assessment in the past 10 years, you can reuse the EPC, but otherwise you will have to spend between £50 and £120 to get a new one. An energy specialist will come into the house, take a load of measurements and produce the certificate.

Finally, talk price. This can be a sticking point, of course, as you want to maximise your price, and the buyer wants to minimise it. Choose a price that is 10% above the actual value, as it gives you an opportunity to reduce it as necessary.

You will also have to include a contact number so that people can talk to you regarding viewings. Naturally, if you miss one, you could lose a potential sale, so it’s essential that people can contact you at almost any time of the day. Don’t forget that you will have to show them around at a time that’s convenient for them and then follow up on any offers.

Once you have accepted an offer, you next move onto the legal side.

Squishing Solicitors

Now, we could cheat a little and say instruct a conveyancer, as they are not technically solicitors. However, we’ve made the assumption that you want to lower your costs as much as possible, and conveyancers are definitely not free. So, here’s what you need to do.

First, you need get your title deeds from the Land Registry. These are the documents that tell you what you own and all the conditions that affect the property. Then, you need to fill out forms TA6, TA10 and TA13 and create a contract of sale. If you have a mortgage, you need to create a settlement figure and then organise the final accounts, prepare the final settlement and pay off the remainder of the mortgage. You’ll also have to receive the house deposit, approve the deed of transfer, handover the deeds and finally send the outstanding balance to the account of your choice.

Here’s the sticking point, though: Many solicitors will not deal with a seller who doesn’t have legal representation. This is because the solicitor cannot automatically trust the documentation as there are no guarantees backing it and no insurance, and it results in extra work for them. It also means that you are personally liable for any mistakes within the documentation, and again, you don’t have any insurance backing you up. Finally, you may not be able to handle the mortgage agreement on your own, as a lot of mortgage providers require an undertaking to be created – this is a formal agreement between legal professionals to pay off the mortgage using the proceeds.

Now, we absolutely understand why you want to eliminate estate agents and solicitors from the house-buying process, as all that commission can add up toa lot. However, if you really want to save money but still have the convenience of support when you need it, use a hybrid estate agent with a fixed fee, and use a conveyancer to cover yourself. If you do everything by yourself, it’s possible that you could end up in a serious legal tangle.

How to Secure Property Development Finance

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Property development can be an exciting venture, but it’s important to remember that it’s not a hobby: it’s a business. Approach it with a mind to making money, otherwise you’ll have trouble in convincing others that you mean business and possibly fail in securing the finance necessary to fund your development.

Secure Property Development Finance

Putting Together a Business Plan

A solid business plan is the cornerstone of any successful property development; it will serve as your manual on making the project profitable, and is absolutely vital in securing property development finance from any lender.

Having a proper business plan in place can help clarify the project in your mind and keep you grounded in your excitement. It should detail all your findings, including every scenario that could impact the sale of the property, and it should highlight all associated costs and pitfalls.

Specifically, you should detail the area of the development, why you feel it’s worth investing in, the supply and demand of properties currently on the market in the area, current housing prices, and land registry figures (information pertaining to the schools, employers and transport in the area).

Your business plan should detail every aspect of the development, from start to finish; it’s your strongest weapon in securing finance and should therefore be easy to read and understand, and provide an accurate vision of the projected profit margins.

Crunching Numbers and Assessing Profit Margins

No matter how much you want the project to work, you’ll be doing yourself a great disservice if you manipulate the numbers in order to secure property development financing. If the numbers aren’t feasible, you’ll be the one who suffers, landing yourself with huge debts and with a monstrous, unfinished project on your hands.

To this end, thoroughly research the viability of the project, crunching all the necessary numbers and realising the pros and cons that go into such an endeavour. It’s imperative that you figure out if there’s a good risk to reward ratio, and whether or not it’s truly worth taking the financial risk.

When costing out the project, there are numerous things to consider: quotes for labour and materials; buying and selling prices; legal costs; loan interest rates; profit margins; and your own living costs if you intend to work on the project full time.

Securing Property Development Finance

Mortgage brokers and banks specialising in property development are your best bet for securing the appropriate finance required to complete the project. High street banks also offer commercial loans for business projects, although they can be harder to borrow from. The first step is to set-up a meeting with the bank manager and have him or her go over your business plan. 

Friends and family with significant savings are also potential lenders, although it’s important to treat the situation strictly as a business venture in order to keep friendships intact. For your part, you should offer good interest rates or a share of the profits. 

Joint ventures are another route to securing finance: by teaming up with someone else in the business of developing property, you can pool your money together and split associated costs; the risks and rewards are shared. If you’re new to property development, partnering with an experienced, successful developer will improve your chances of securing financing as some lenders may be apprehensive, or won’t give loans at all to new property developers. 

However you decide to pursue financing, you must be sure to present a solid business plan with projected profit margins and costs; no one is likely to invest in your development otherwise.

Financing Fees and Criteria

Lenders have strict criteria when it comes to financing property development as it is a high risk, high reward endeavour. They will want to see a real financial commitment from you, to prove you are serious about the project, so you will almost certainly need to own the plot of land outright.

 If you are successful in securing a loan from a commercial bank you can expect to be hit with a number of fees, including: a set-up fee; an exit fee; introducer fees; survey and legal fees; and in some cases, a percentage of the facility. Your lender will most likely loan 50-60% of the development costs, paid out in 4-5 stage payments – each payment being paid out after a site inspection.

If you’re serious about pursuing a career in property development then you must treat every property as a different enterprise. You must be sure to carry out the steps outlined above thoroughly, for each separate project, to ensure it will be worth your time, effort and money.

Is Real Estate a Sensible Investment For the Future?

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Investing in real estate is said to be one of the most important investments that you can make. For many people, they are keen to invest their money into a ‘safe bet’. Some investors are keen to have a more diversified portfolio. As such, this means that they seek to invest their coffers into property. However, is this as safe a bet as many realtors would have you believe? For many, they are unsure as to whether real estate is a safe investment.

Real Estate a Sensible Investment

It’s all about being in the know. Let’s find out more about investments via the real estate route.

Planning for the Future

As an investment strategy, opting for real estate can be a savvy move to make. Of course, if you can afford to buy property or second properties, you can ensure that you see an ROI. But, there are some things that you need to consider. In order to maximize your ROI, you need to invest earlier in your life. So, if you are nearing retirement, investing in real estate and houses would not be a financially sensible route to take. However, if you are in your late forties, you can see a definite ROI by the time you come to retire. As with any investment product, you need to play the long game. If you want quick cash, real estate is not for you.

A Safer Pension Plan?

Pension plans come in many different forms. As such real estate can be a safe pension plan, if you invest early. But, investing later in life is not a savvy move to make. If you want to maximize your profit, investing early is wise. But, it’s not all plain sailing. You need to do some research. When it comes to real estate, having a working knowledge of housing markets and stock exchanges is vital. After all, this is not something that you can go into blind. Make sure that you do your research of the neighborhood and predicted forecasts of the housing market in that region. Look at yap and coming areas as opposed to established neighborhoods for a more profitable venture.

Buy to Let?

The buy to let market is booming in the US at the moment. With fewer people being able to obtain mortgages, it’s vital that you consider the buy to let market as an investment. It can ensure that your mortgage is paid without you having to spend a great deal of cash in the process. Do make sure that you have a competitive edge when it comes to the buy to let market. Having a furnished pad within a city centre is a great way to boost your chances of renting quickly and successfully. Hiring movers can ensure that you have all of the key kit in place without causing damage to the property.

Don’t Forget to Look Overseas

Many people think that they have to invest in their own country. But this is not the case. If you want to see a viable investment, investing in overseas properties as holiday homes can be a great way to ensure that you are maximizing your earning potential. Do be sure to do your research on property laws before you commit.

Why the New Mortgage Rules are not all Bad News for Canadian Investors

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Earlier this year on July 9th, Finance Minister, Jim Flaherty announced new changes to the mortgage rules. The new measures included shortened amortization periods (30 to 25 years), lowering the maximum amount Canadians could borrow against their home when refinancing (85 to 80 percent), fixing the maximum gross debt service ratio (39 percent) and limiting government backed insured mortgages on homes over $1 million. The main objectives for these changes were to stabilize the housing market and reduce the increasing homeowner debt throughout Canada. After the announcement, many homeowners and property investors were left wondering how these changes were going to affect their investments. Below is an examination of how the new mortgage rules truly affect Canadian real estate investors.

New Mortgage Rules

New Mortgage Rules will only affect CMHC Insured Mortgages

First of all it is interesting to note that the majority of Canadians will actually not be affected by these mortgage changes. This is because the new mortgage rules only apply to CMHC insured mortgages and non-bank lenders who use CMHC rules on conventional mortgages. The truth is that the majority of Canadian real estate investors are not taking out CMHC insured mortgages, in fact, only a mere 11% of all Canadian mortgages were insured by CMHC in 2011! There are still a number of 30+ year amortizations (not backed by CMHC) that are available for Canadians.

New Mortgage Rules will benefit the Rental Market

Although there is much concern and speculation surrounding the new mortgage rules, the new changes are actually great news for the rental market. With less people being able to afford a property, more people will be looking to rent, leading to an increase demand for rental property and an upward pressure on rental rates to increase.

Vacancy rates will also go down and real estate investors will enjoy an increase demand of renters. With more people renting, investors can get a steady supply of income from their investment properties. Rental duration is also set to increase, as an increasing amount of renters will be forced to rent longer while they save for a bigger down payment.

New Mortgage Rules will reduce homeowner debt

Lowering the maximum amount Canadians can borrow when refinancing is often left out of the conversation when it comes to the new mortgage rules. Capping financing at 80%, down from 85%, will mostly affect first-time homebuyers and buyers looking to upgrade their current homes. These individuals may no longer be able to afford the more expensive properties, and instead, will have to choose properties that are more within their price range. This will restrict and hopefully reduce the growing homeowner debt problem in Canada.

New Mortgage Rules will increase Canadian Home Prices

The new mortgage rules will have an impact on overall Canadian home prices, especially on its affordability. It is important to note that homebuyers and investors don’t judge what they can afford based on the price of the house, but rather on the monthly payments. With a shortened amortization period of 5 years, monthly payments will increase by roughly 1%. This puts pressure on housing prices to come down in order to balance out the rise in monthly payments. The 5- year change on the amortization period will require (roughly) a 10% decrease in market prices. Below is an example of this:

Say the price of a home is $400,000. Monthly payments on a 30-year amortization will be $1,910. With a 25-year amortization however, monthly expenses will jump to $2,110, an 11% increase in monthly payments. A couple that could afford a mortgage of $1,910 might not be able to afford the new monthly payments of $2,110. Therefore, in order for the monthly payments to stay at $1,910, the price of the house needs to come down by 10%, to $360,000.