Saturday, June 28, 2008 Member Sign In !     
HOME
HOME | CONTACT US | SITE MAP  
HOME
ABOUT US
CONTACT US
FAQ
ADVANCE SEARCH
 
Real Estate Articles >> REAL ESTATE BROKERS
real estate agents and your money By scopeo XML

Deciding to find and buy a property either residential or commercial or is one of the most important decisions a person could make. In particular if you are buying a residential property for your personal use, your future home it becomes a striking decision.  It combines your personal hopes and dreams with wanting what's best for you and your family, owning real estate, owning your personal home! It means making changes. That's why it's in your best interest to choose an experienced real estate agent who listens to and understands your needs, real estate agents who understand the life changes that buying a house bring, and work in the area where you want to live and purchase real estate.
Real estate brokers and agents are people that work in the real estate business. They can assist real estate buyers and sellers with their needs, whether it’s a house, condo or any other type of real estate property. A real estate broker is a party who acts as an intermediary between sellers and buyers of real estate and attempts to find sellers who wish to sell and buyers who wish to buy.
Offer a Reasonable Earnest Money. You cannot present an offer with a $50 earnest money and expect a real estate agent to take you seriously. If you are concerned with losing your earnest money, consider using a real estate promissory note. In the US, real estate brokers and their salespersons (commonly called "real estate agents") assist sellers in marketing their property and selling it for the highest possible price under the best terms. When acting as a Buyer's agent with a signed agreement (or, in many cases, verbal agreement), they assist buyers by helping them purchase property for the best possible price under the best terms. Without a signed agreement, brokers may assist buyers in the acquisition of property but still represent the seller and the seller's interests.
 
Offer a Short Closing Date. Another way to get a real estate agent to take you seriously is to offer a fast closing. Nothing makes real estate agents salivate more than the thought of a commission check in ten days. If the real estate agent has another offer presented to him, he will usually advise his client to take the offer with a larger earnest money and faster close than an offer which is higher in price.
While some people may refer to any licensed real estate agent as a real estate broker, a licensed real estate agent is a professional who has obtained either a real estate salesperson's license or a real estate broker's license.
Insist on Presenting Creative Offers in Person. If you present a creative offer to a real estate agent, it will not be represented to the real estate owner in the same enthusiastic fashion. As stated above, real estate agents do not like creative offers - they like conventional offers from solid real estate buyers. If you want the real estate owner to hear all of the great benefits of your offer, insist on presenting the offer in person.
Real estate agents are in the game to make money, just like anyone else in any other business.
In consideration of the brokerage successfully finding a satisfactory buyer for the property, a broker anticipates receiving a commission for the services the brokerage has provided. In North America a commission in the 5% to 7% range is considered "standard" for residential real estate and is typically paid by the seller at the closing of the transaction. Commissions are negotiable between seller and broker. The commission could also be paid as flat fee or some combination of flat fee and percentage, particularly in the case of lower-priced properties, vacant lots, or other unusual real estate.
If you can offer the real estate agent an incentive to make money out of the transaction, you will get his cooperation. If you present an offer which does not permit enough cash to come out of the deal to pay the real estate agent, why would he cooperate with you? If you present a lease/option offer on a listed real estate property, how will the agent receive a commission? You need to find a way for the real estate agent to get paid, even if you pay him out of your own pocket.
Do Your Own Comps. Sometimes you will get the opposite of an uncooperative real estate agent - an overzealous real estate agent. Be suspicious of a real estate agent who tells you what a deal you are getting on a real estate property. If it is such a good deal, why didn’t he buy it? Don’t take his word as to the value. Ask for a printout of comparable sales (not listed real estate properties). If a comparable sale shows the same square footage as the house you are looking at, take a drive by and see if it is accurate. Do your own assessment of real estate value.
Don’t waste your time filling out a contract offer until you have preliminary approval. Most real estate agents are not this formal and will take any offer in writing to the seller. Simply summarize your offer in writing and fax it to the listing real estate agent. Once you have an oral approval, then take the time to fill out a contract and an earnest money check. Another real estate buying resource is a buyer's broker. Unlike the typical real estate agent, buyer's brokers work exclusively the real estate buyer. The buyer's broker can be paid directly by the buyer, or can be given a portion of the commission earned by the real estate property seller's agent. The payment arrangement is usually determined up front when you are negotiating with the real estate buyer's broker.


About the Author

Home | About Us | Contact Us | Site Map | Privacy Statement