Advertising Tips for Real Estate Agents: The World Wide Web
December 28, 2010
There are many more ways to advertise in today’s society than existed fifty years ago. Today there is not only word of mouth and newspaper ads, but the Internet is also a major source of advertising. Approximately, three out of every four people in the United States alone own computers. That is about 75 percent of the country’s population. If you as a real estate agent are looking to expand your company and its clients, a great way to potentially reach thousands of people in a short amount of time is to utilize the resources provided by the World Wide Web.
Advertising Tip #1: Create a Website
Having your own company website is very helpful. As stated above, it is a great way to get noticed quickly. Some of the most important pieces of information to include on your site are the contact information of your company, a short bio (including how long your agency has been active), and the location your agency serves. Adding a customer feedback section to your site is also a great way to attract clients. Potential clients taking note of previous customer satisfaction are much more likely to become actual clients because they will see just how reliable your company can be compared to other companies that either have poor customer satisfaction or do not have any evidence of customer feedback whatsoever.
Appearance is just as important as the information provided on your website. If you are not familiar with web design, it would be a good idea to hire an individual or company to build your website for you, including all the information as well as a company logo and other special, unique qualities that would make your website stand out above the rest.
Advertising Tip #2: Social Networking
With each passing day, social networking becomes more popular. The ever popular Facebook started as a social networking site on which high school friends were able to stay connected after graduation, moving on to college and full-time jobs. Now Facebook has over 200,000 users young and old. It is loaded with pages that range from the everyday person’s profile to celebrity pages on which you can become “fans” of theirs to stay updated on events like book signings, new movies, new albums, or upcoming tours.
Some companies have their own Facebook pages, as well, which you can “like” to support them and spread the word about their existence. On these pages is a more general version of their websites, including contact information and “about us” sections.
As a real estate agent, you would greatly benefit having your own individual Facebook page strictly devoted to your business and connected to your company.
These are two tips that can help build you and your company’s abilities throughout the world of the web. The Internet is one of the biggest ways of advertising for individuals and companies alike, so why wait? Set up your real estate sites up right away to get more hits from devoted house hunters who are searching for new homes at the click of a button, without leaving their homes.
Three Main Types of Homeowners Insurance
December 17, 2010
Homeowners insurance contains a variety of different types of insurance. These types all have at least one thing in common, though: they are all in some way related to the home being insured. One of the main requirements for this main type of insurance is that the person under whom the insurance is held must reside in the insured house.
Liability Insurance
Liability insurance is usually part of a package deal in the homeowners insurance category. Homeowners purchase liability insurance to cover themselves in the unfortunate case that someone gets physically injured on your property. If purchased in the right package, the collection will ideally cover your land, its contents, the possibility of theft, and will provide you defense in the event of someone filing a lawsuit against you for reasons related to your home or property.
Title Insurance
Your mortgage lender will most likely require you to hold title insurance on your home. This type of insurance will cover expenses for you as the homeowner if the ownership of your property is called into question.
You may be wondering exactly what sort of situation would require such a type of insurance. Well, title insurance would come in handy if your neighbor sells his home to a couple who claim that a portion of your land is actually theirs. Having title insurance will help enforce that if the case goes to court the land in question is in fact yours as it appears on the title to your home.
Mortgage Insurance
Mortgage insurance is not mandatory to carry. In fact, you as the homeowner experience no benefits whatsoever. The only party that benefits from said insurance policy is the lender, who in this case is usually a bank. This type of insurance protects the bank in the event that you are unable to make your regular mortgage payments. So, if you are fairly confident that you will be able to make every necessary payment, be careful not to get sucked in to purchasing mortgage insurance from your lender.
And there you have it. Three types of homeowners insurance—liability, title, and mortgage insurance. Be sure to keep all of this in mind when purchasing homeowners insurance, which is always a good thing to have in case any issues should arise involving your home. Talk with your bank and real estate agents for further assistance on choosing plans that work best for you.
Insurance for Homeowners: The Basics
November 30, 2010
Homeowners insurance, also known as home insurance or hazard insurance, is something that everyone should look into which is why I put together this post providing the general information included and that which is not included in most policies.
What Determines the Cost of Homeowners Insurance?
Homeowners insurance has just one premium to cover all risks, creating what is known as an indivisible premium. The cost of this insurance compilation is typically based on how much replacing the house would cost if it were to be damaged to the point at which no one could functionally live in it.
Many insurance companies will charge lower premiums in the event that your home is at a lesser risk of being damaged in some way or even destroyed. For example, your premium is likely to be much lower in the event that you live in a home next to a fire station, as you will have the fastest reaction time to a disaster such as a fire. This would mean you are less likely to experience a high amount of fire and/or smoke damage. Another reason your premium may be lower than usual would be if your home had a fire sprinkler system installed or even fire alarms, for the same reason.
How Long does Homeowners Insurance Last?
Homeowners insurance is not a permanent investment. It is meant as a specific type of term insurance. It obviously will not last forever, because there is always the possibility of your decision to move into a new home. You can, of course, renew the term when the time comes. In this case, you would pay the premium during each term.
What is Not Typically Covered in Basic Homeowners Insurance Policies?
Homeowners insurance does not usually cover the damage caused by natural disasters such as floods. However, you can purchase flood insurance to cover the damage done in the case of your home flooding. It would be wise to purchase said insurance if you live near a large body of water or in an area that has been known for significant amounts of flood damage in the not so distant past.
This insurance also does not cover damages caused by national or international warfare. Before you make the commitment to purchasing homeowners insurance, be sure to check out what the offered policy includes and how much you would need to invest in other related insurance policies for your home, such as flood insurance.
Unemployment Rates and Job Availability Influence Home Value
November 22, 2010
You may have learned this concept in high school and never thought you would hear it again, but guess what? The housing market is, just like any other market, completely based on supply and demand. All contributing factors to home value, no matter how small, lead directly back to the economic law of supply and demand. To help you better understand this idea are a few examples below that explain how your home may increase or decrease in value.
High Unemployment Rates Decrease Demand
If you do not have a job, how could you possibly afford to purchase a home? As the number of people without jobs gets higher, the number of home sales drops. In other words, the “supply” of unemployed people rises, so the “demand” for purchasing homes decreases.
People are more likely to continue living where they currently reside because it is a safety zone for them, less of a hassle. A troubling and costly investment in purchasing a new home is the fact that you know you will inevitably have to invest at least some money in repairs. According to the US Census Bureau, in 2009 approximately 43.6 million people were living in poverty. That is a 3.8 million count higher than the year before. If you do not have a job, do you really want to risk the chance of purchasing a money pit?
Job Availability Surrounding Your Home
If, on the other hand, you are looking to sell your home to make some extra money, make sure either you keep your current job or that you are already guaranteed a new one near your new residence. Your home is more likely to sell if people looking for a new home know they will be able to get a job in that area.
As a buyer, though, it is wise to have a job lined up in the area before making your final decision of whether you want to reside there. Therefore, people are more interested in purchasing homes with available job opportunities in those areas. In this case, if the “supply” of job opportunities increases in an area, then it can be assumed that the “demand” for places to live around that area will also increase, making the housing market more competitive.
For this reason, prices of homes in that area will be high, assuming that many people will be willing to pay, in some cases, as much as it takes to get a decent paying job within a specific mileage of their homes. This will lead to these new homeowners paying less for gas since they would be traveling shorter distances to and from work on a daily basis.
So as you can see, the concept of supply and demand is easily applied to the housing market for both buyers and sellers. This bit of advice regarding unemployment and job availability is something you should certainly take into consideration when even deciding whether you would like to move out of your current home in the first place.
Open Houses: The Pros and Cons
November 16, 2010
The Cons of Having an Open House
Believe it or not, open houses have not been known to help sell homes at a quicker rate. You would think that having a home on public display for a day or two would attract some interested homebuyers, right? As the seller, you would pay a real estate agent to show your home to outsiders looking to buy a home in your area. If no one comes to see your home during an open house, then the open house itself was counterproductive, a waste of time.
The Internet: The Nightmare of the Open House
These days, the Internet has made searching for homes so much easier, much more convenient for the potential buyers out there to find just what they are looking for. For this reason, the seller as well as the hired real estate agent lose personal connection with their possible customers. Looking at homes online allows the buyer to take his own tour of the home through a series of photos and a list of specifics on the rooms and measurements (i.e., square-footage) of the homes he is interested in.
Searching online also provides you with the option of “bookmarking” the sites of the homes you find most appealing so you can share the images and further details at a later date with those who are also involved in the search for your new home. According to a study performed by the National Association of Realtors, only 2% of those purchasing homes in 1995 utilized the ease of the Internet to search for homes on the market. Thirteen years later, in 2008, 77% of people who purchased homes did much of their shopping online. The Internet is the new virtual open house.
The Pros of Having an Open House
On the other hand, if you are a real estate agent, hosting an open house can benefit your business. Those who attend your open house may end up asking you about other homes you have or will list on the market in the very near future. Perhaps they are not looking for that exact home but like your presentation and are wondering if you have anything more convenient for their budget or more relevant to their style. This opens up the opportunity for you to expand your clientele and show more houses, which can in turn boost the real estate market if done properly.
So really, hosting an open house is beneficial to real estate agents but not so beneficial to homeowners looking to sell their homes. If you want to sell a home, list it on the market, and be sure to include lots of pictures and details on the world wide web where most people search for homes nowadays.
Why Invest in a Home with a Driveway?
November 10, 2010
One thing that many people do not first realize affects the value of a home is the homeowner’s parking setup. It is much more convenient to have your own driveway as opposed to parking along the street or in a designated parking garage.
Questions on Parking to Consider Before Buying a Home
There are a few questions you should take into consideration before you make the final decision on which home you plan on purchasing. It is important that you ask yourself these questions to determine whether you actually need your own driveway:
- Do I own a vehicle?
- Do I drive to work on a regular basis?
- Do I plan to have visitors often?
- Is public transportation more convenient?
Financial Costs of Parking
Before you decide to choose a home in which the only option for parking is a parking garage a distance away from your new home, take a look at these statistics. Depending upon where you are looking to live, parking arrangements may be limited. You may not have the option of owning your own driveway. You may have the option of parking along the street in front of your home, or perhaps the only option you as an automobile owner have is to keep your car in a parking garage. Unfortunately, not all parking garages are free. They often require you to register your vehicle in order to purchase a permit you must keep in your car while parked in the designated garage.
People who keep their vehicles in a parking garage often pay monthly fees. For example, it is possible for you to pay around $300 each month to house your car in a parking garage. This price is approximately 7% of the average American’s monthly income which, according to the United States Census Bureau (2009), is about $4148 for citizens younger than 65 years of age. That’s $49,777 a year, and you would be paying $3600 of that annually just to park your car somewhere away from your home where you cannot even keep watch on it.
For Americans age 65 and older the annual median household income is around $31,354, translating to approximately $2612 each month. The price of housing your vehicle in a parking garage if you are 65 or older is around 11.5% of your monthly income. If you think that cannot harm you financially too bad, remember your other monthly expenses: monthly payments for your vehicle; property and school taxes; mortgage payments; automobile, health, and possibly life insurance; electric bills; and more.
If you do not use public transportation and you own a car, it is a wise decision to purchase a home with a driveway. This way you can keep an eye on your vehicle on a regular basis, with easy access to it at all times. Though the home may cost you a bit more, it is worth it in the long run because it will not hurt your home’s value when or if you decide to sell your home years down the road.
Real Estate Help: What is a Comparative Market Analysis? (Part Two)
November 3, 2010
The previous post discussed only three examples of the content inside the real estate agent’s report on nearby homes of your home for sale, or the comparative market analysis (CMA). There are more parts than just the Active Listings, Sales Pending, and Homes Sold; so this post will inform you of two more categories included in a CMA—Homes Removed from the Housing Market and Expired Listings.
Inside a Comparative Market Analysis: Homes Removed from the Housing Market
In this section, the average price of homes taken off of the market will nearly always be higher than the average selling price found under Active Listings, or comparable sales. This is typically the reason these houses have been removed from the market. On the other hand, there are a few other reasons a listing may be canceled or withdrawn from the market, some of which are listed below.
Housing Market: Seller’s Remorse
You may be excited to sell your home as soon as possible so you are able to move in somewhere new. However, some sellers experience a pang of guilt or regret for putting their homes up for sale. Soon after the home is listed, the seller may realize that he or she does not truly want to sell the home in which they spent so many joy-filled days and built such pleasant memories. Hence the desire to take the home off the market.
Housing Market: High Priced Homes
In some cases, the reason some houses are withdrawn from the market is that the houses are priced too highly. If a home sits on the market for too long with little to no negotiation at a significantly higher price than the surrounding homes, then canceling the listing is sometimes the outcome.
Housing Market: Home Maintenance 
Another reason a home may appear in a CMA under cancelations may be that after the seller finds a buyer and forms the contract, the home is inspected and the buyer discovers that a significant number of repairs is required. If this is the case, the buyer had asked the seller to pay for the repairs, but the seller refused.
Inside a Comparative Market Analysis: Expired Listings
Expired listings are in the same predicament as homes withdrawn from the market. The homes were once in the Active Listings category, but they may have been too highly priced. They may also need more repairs than the seller is willing to commit to at that time. However, houses under Expired Listings can also be listed under Active Listings, the main difference being the selling agent; so technically those houses are back on the market.
So there you have it—the main categories and their descriptions that are almost always found in a comparative market analysis put together by your real estate agent. Don’t forget to do your research and find out what real estate company and agent work best for you!
Real Estate Help: What is a Comparative Market Analysis? (Part One)
October 30, 2010
Comparative Market Analysis: Definition
A comparative market analysis, or CMA, is a report or guide performed before putting your home up for sale with an undetermined length that real estate agents put together on home sales. The homes listed in this report are located within a specific range of the home you are looking to sell. Some real estate agents often offer this service for free to inform you of your home’s value. However, it is best not to use the agent for just that. If you are going to hire an agent to put a CMA together, keep him or her on board during your entire sale process. Real estate agents can greatly benefit your overall goal to sell your home.
Comparative Market Analysis: Content
What does a real estate agent include in a CMA? The content of a CMA includes but is not limited to the following:
Inside a Comparative Market Analysis: Active Listings
Active Listings are included by the real estate agent in a CMA to inform the person selling his home of other homes for sale at that time and their prices. This set of listings is not a good way to determine the market value of homes in your area, though. Why? This is because this section of the report only supplies the asking price. When selling their homes, most people ask for more than they actually receive in the end, when the sale comes to a close. This section should be strictly used to view your competition at the time you decide to sell your home.
Inside a Comparative Market Analysis: Sales Pending
A CMA also contains a listing of pending sales in your area. These types of sales are ones that were once under “Active Listings” but that buyers have under contracts. These sales have not yet come to an official close, which means that they cannot be used to determine the final sale prices of the homes. The most beneficial aspect of knowing that there are pending sales in your area is that you know the market has not completely shut down, that in the mess of the current economy you know it is possible to sell a home.
Inside a Comparative Market Analysis: Homes Sold
Your most accurate comparable sale prices are those of the homes that have sold on the market within the last six months. Knowing these prices will help the appraiser of your home to determine the potential market value of your home, bringing you closer to knowing the price at which you are willing to list your home on the market. The appraiser will also look at the available price listings of the pending sales in your area, if they are listed in the CMA.
These are just three of the many keys included in a properly constructed Comparative Market Analysis. Further content will be covered more in-depth in the near future. Be sure to keep in mind that real estate agents are the biggest helpers when it comes to selling your home. Trying to sell your home on your own is nothing but a hassle. It is incredibly time consuming and a highly frustrating process!
Add Variety to Your Home: Different Floors
October 20, 2010
Though it may not seem like it at first, what types of flooring you have in your home can play a significant roll in how quickly your house sells. These days, many people are looking for more naturalistic appearances and convenience when purchasing a home, and types of flooring can enhance a room’s appeal.
An Ancient, Chic Look: Ceramic Tile Floors
Ceramic tile floors produce a natural feel with their earthy tones and visually accurate patterns. These tiles created from the earth’s clay are perfect for any kitchen floor. Their easy upkeep is an additional benefit to these authentic additions to any kitchen. Just be sure to wipe up any spills when they are first made, so the liquid doesn’t dry and create a sticky mess. Evidence of the use of ceramic tiles appears all the way back to the Ancient Greek and Roman times. Some things just never go out of style!
Countrify Your Home: Hardwood Flooring
Adding a hardwood floor to any room instantly creates a country-like look. It is like being in a cabin out in the middle of nowhere, even though you may live in a small community or within the suburbs. These types of floors are easy to spruce up in any home just by adding a rug in the doorway or under a dining room table, for instance. The presence of wooden floors in a home provides a warm, welcoming comfort as well as that outdoorsy feeling. There are many types of hardwood flooring. Make sure if you’re interested in remodeling a room to add a hardwood floor, you take into consideration how dark of a wood you’re looking for. Also, be sure the wood is treated properly to help prevent stains from occurring. The better you treat your floor, cleaning it on a regular basis, the longer it will last.
Why Not Linoleum Flooring
Linoleum flooring is an option; however, it is not the best. If you can, avoid installing linoleum. Though it is very easy to clean and reasonably cheap, it is not incredibly durable. Unlike ceramic tile and hardwood floors, linoleum can rip. You may be shaking your head in disbelief, but I can tell you from personal experience that if you have rowdy dogs, you do not want linoleum floors.
Why Choose Carpet
Carpeting is ideal for living rooms, dens, studies, and often bedrooms. It gives the room a more relaxing aura, cushioning your feet after a long day at work. With carpet, though, you must take particularly good care of your floors. Also, depending upon the color of the carpet, stains appear more easily on this type of floor compared to ceramic tile and hardwood floors. If you have young children, it is best to avoid purchasing light colored carpet. Many drinks will leave stains that are fairly difficult to remove. Typical stain removers can become expensive investments after a while. Steam-cleaning your carpet can also be costly. Darker colors, like a forest green or dark blue, are more likely to hide some blotches left over from drinks or other liquid substances.
When deciding on what type of floor works best for whatever room you are looking to remodel, be sure to take all of this into consideration. Build your home to suit you as well as potential buyers whenever you prepare to sell your home.
Remodeling Your Home’s Crawl Space
September 28, 2010
Crawl spaces can have a variety of purposes. Some people would be surprised to know that they can be used as storage areas in the home, while others would not have expected crawl spaces to be used to easily access plumbing and electric throughout the bottom of the house. Here are some tips to spice up that ugly and dirty crawl space you so often forget about.
Insulating Your Crawl Space
When insulating your crawl space located in the basement, it is important to remember NOT to apply insulation to the ceiling of the crawl space. This will change the heating patterns of the room above. It will not get as warm as necessary in the winter. Instead of insulating your ceiling, it would be best if you insulated the exterior walls, or the walls that are not adjacent to other rooms in your house. This will prevent the buildup of moisture, which will then lead to less pests. You can visit this site for instructions on how to properly insulate your basement crawl space yourself so you don’t have to hire a company to install the insulation for you.
Dehumidifiers and Vapor Retarders for a Damp Crawl Space
If you’re looking to keep your crawl space strictly for accessing electric and plumbing, you’re more likely to have a welcoming environment for pests like mice, an infestation of bugs, and an increased likelihood of the formation of mold and mildew. How would you prevent these dilemmas? Well, you can purchase a dehumidifier specially designed for crawl spaces. The dehumidifier would make sure the air remains less attractive to insects especially. It uses a specific condensation pump accompanied by a hose in order to make sure the unwanted moisture is released elsewhere. If you’re not interested in purchasing a crawl space dehumidifier, then you could invest in a vapor retarder which stops the ground’s moisture from seeping into your crawl space.
Crawl Space as Storage
Some people use their crawl spaces to store belongings they rarely use, basically in place of or in addition to their attic. Keeping it neat enough to store things isn’t that difficult. It can be remodeled by a professional most likely at a fairly low cost. Adding enough light is important, as well. Installing a dehumidifier would still be a helpful addition. Just keep it lit and clean to prevent pests. If you explain that your crawl space is designed just for extra storage to prospective buyers when you go to sell your home, those who wouldn’t even think of using it as storage will be more intrigued. Some of us tend to collect unnecessary trinkets and other things that we’ll most likely never use again, but we get them for the sole purpose of knowing we own them. The more storage space you have available, the more likely you are to sell your home.
Convert Your Crawl Space
Instead of leaving it as a plumbing/electric access area or storage unit, if it’s large enough you could convert your crawl space into a fairly small room to use as an office or workshop! Doing this will save you money because you wouldn’t have to invest in new materials to put an addition on your home for this extra room. It will also increase your home’s value because you’re creating another useful room for the potential homeowner. It’s a great way to increase the value of your home while saving money that you could then use to improve another area of your home.
Attic Crawl Space
Some attics have a smaller room with a ceiling so low that most people would need to stay in a crouched position to occupy it. It is often also referred to as a crawl space and often known to be used as a storage unit. This area can also be improved by performing the above suggestions to convert it into a tiny room of its own, perhaps a small bedroom.