Tag Archives: agent

Help First-Time Sellers Through the Sale

Like rookie buyers, clients who are new to selling need extra hand-holding through the sales process.

Even the most steely-eyed sellers can get emotional when it’s time to list their home. It’s the place where they raised their children, gathered friends for annual holiday parties, or painstakingly executed their design vision over many years. The longer they have stayed in a home, the greater the challenges they may face getting up-to-date on the rules and regulations governing transactions. Those who have never before sold are, indeed, in uncharted territory. Here are suggestions for working with first-time sellers who may find the financial and legal complexities, as well as the emotional terrain, especially daunting.

First-time sellers who have never contended with buyer demands may not initially understand how neutralizing their home or adding small upgrades can make their property more competitive on the market. Using data to highlight comparable nearby homes and what they’re selling for is a good place to start, but make sure to explain how the data supports your argument. Andy Werner, abr, e-pro, associate broker at RE/MAX Realty Group in Gaithersburg, Md., says many first-time sellers don’t realize how minor repairs can elevate their property’s market value. Buyers typically expect a home to be in move-in condition, so sellers who choose not to upgrade could face a $10,000 to $15,000 price reduction, he says.

“I tell buyers that if you don’t fix up your house, the buyer will go around the corner and buy from someone who did—and they’ll pay $5,000 more,” Werner says. Such an explanation demonstrates market fundamentals to your clients and keeps them on track toward the closing table. The costs of modest repairs, such as repainting, installing carpet, and refinishing or replacing kitchen cabinetry, are often recouped at resale, Werner adds.

Selling After Decades of Owning

Some common seller issues become more difficult simply because of how long a first-time seller has lived in a home. Decluttering, for example, can be hard enough for someone who’s been in their home only five years. Imagine how challenging it is for sellers who have lived in a home for their entire adult life.

It’s not just emotional resistance they’re experiencing. First-timers may simply not be aware of how clearing out personal items improves the odds of a sale. Alice Chin, psa, a broker with Keller Williams Infinity in Naperville, Ill., recommends that sellers who have never dramatically decluttered their homes before do it in stages, clearing one room at a time. Slowing down the pace can ease the mental and emotional pressure involved in getting rid of personal items, she says, and once sellers see the results in one room, it can encourage them to continue working on the rest of the house. If your client needs more convincing, ask a professional home stager to weigh in, Chin says.

Patience Is a Virtue

All sellers benefit from practicing patience while waiting for the right buyer, but this is doubly true for those who are listing a vacation home in resort areas for the first time. They face different market dynamics than if they were selling a primary residence, says McKee Macdonald, a broker with Coldwell Banker Carlson Real Estate in the ski resort town of Stowe, Vt. Many of his clients who are new to selling are shocked to learn how long it can take to sell—an average of 250 days in his market. Some properties have languished for as long as five years, he says.

Therefore, first-time sellers require a higher degree of communication so they can be prepared for the realities of a niche market, Macdonald says. He explains that traditional marketing tactics such as open houses aren’t always effective because the number of skiers (who are prospective buyers) in town on weekends is unpredictable. Instead, he advises his clients to consider renting out vacation properties while they wait for a buyer. After all, selling a second home often isn’t urgent, and a seller’s motivation can change. “Some sellers say, ‘Throw it out there. If we get the price we want, great. If not, I’m still using it,’” Macdonald says.

Experienced Sellers Can Be Rookies

Even seasoned sellers can feel like newbies when market conditions have changed markedly since their last sale. A client who sold one property during a downturn may be ill-prepared for today’s tight-inventory environment and the stress of handling multiple offers. Though it’s a nice problem to have, it can still be overwhelming.

Ashleigh Fredrickson, sales associate at 8Z Real Estate in Denver, says the biggest challenge for sellers of all experience levels is determining which offers stand the best chance of holding up. In a strong seller’s market, buyers can get swept up in the heat of the moment and bid 10 percent over list price only to realize later they won’t be able to qualify for financing, she says. So it’s important to counsel sellers—particularly those who have never been in such a situation—that the highest bid isn’t necessarily the best. “You want to make sure you’re getting the most qualified buyer so that you’re not back out on the market again,” Fredrickson says.

She suggests using a spreadsheet to help sellers analyze competing bids, taking special note of any contingencies. Your clients need to understand that a higher offer with more contingencies may not be in their best interest. “Maybe the timeline is paramount, so the seller will sacrifice a couple of thousand dollars to ensure the deal is done by a certain time,” Fredrickson says.

Above all, directness and thorough education are what every first-time seller needs, Macdonald adds. When a sale isn’t going the way a seller had imagined it would, “you need to look for strategies to offset the negatives.” But always “give sellers the honest truth, and don’t sugarcoat it,” he says.

Credit to Judith Crown
 Judith Crown is a Chicago-based freelance writer specializing in business, government, and education.
homes for rent, homes for sale,
homes for rent, homes for sale, newstarrealty.com

Save

Please follow and like us:

Help First-Time Sellers Through the Sale

Like rookie buyers, clients who are new to selling need extra hand-holding through the sales process.

Even the most steely-eyed sellers can get emotional when it’s time to list their home. It’s the place where they raised their children, gathered friends for annual holiday parties, or painstakingly executed their design vision over many years. The longer they have stayed in a home, the greater the challenges they may face getting up-to-date on the rules and regulations governing transactions. Those who have never before sold are, indeed, in uncharted territory. Here are suggestions for working with first-time sellers who may find the financial and legal complexities, as well as the emotional terrain, especially daunting.

First-time sellers who have never contended with buyer demands may not initially understand how neutralizing their home or adding small upgrades can make their property more competitive on the market. Using data to highlight comparable nearby homes and what they’re selling for is a good place to start, but make sure to explain how the data supports your argument. Andy Werner, abr, e-pro, associate broker at RE/MAX Realty Group in Gaithersburg, Md., says many first-time sellers don’t realize how minor repairs can elevate their property’s market value. Buyers typically expect a home to be in move-in condition, so sellers who choose not to upgrade could face a $10,000 to $15,000 price reduction, he says.

“I tell buyers that if you don’t fix up your house, the buyer will go around the corner and buy from someone who did—and they’ll pay $5,000 more,” Werner says. Such an explanation demonstrates market fundamentals to your clients and keeps them on track toward the closing table. The costs of modest repairs, such as repainting, installing carpet, and refinishing or replacing kitchen cabinetry, are often recouped at resale, Werner adds.

Selling After Decades of Owning

Some common seller issues become more difficult simply because of how long a first-time seller has lived in a home. Decluttering, for example, can be hard enough for someone who’s been in their home only five years. Imagine how challenging it is for sellers who have lived in a home for their entire adult life.

It’s not just emotional resistance they’re experiencing. First-timers may simply not be aware of how clearing out personal items improves the odds of a sale. Alice Chin, psa, a broker with Keller Williams Infinity in Naperville, Ill., recommends that sellers who have never dramatically decluttered their homes before do it in stages, clearing one room at a time. Slowing down the pace can ease the mental and emotional pressure involved in getting rid of personal items, she says, and once sellers see the results in one room, it can encourage them to continue working on the rest of the house. If your client needs more convincing, ask a professional home stager to weigh in, Chin says.

Patience Is a Virtue

All sellers benefit from practicing patience while waiting for the right buyer, but this is doubly true for those who are listing a vacation home in resort areas for the first time. They face different market dynamics than if they were selling a primary residence, says McKee Macdonald, a broker with Coldwell Banker Carlson Real Estate in the ski resort town of Stowe, Vt. Many of his clients who are new to selling are shocked to learn how long it can take to sell—an average of 250 days in his market. Some properties have languished for as long as five years, he says.

Therefore, first-time sellers require a higher degree of communication so they can be prepared for the realities of a niche market, Macdonald says. He explains that traditional marketing tactics such as open houses aren’t always effective because the number of skiers (who are prospective buyers) in town on weekends is unpredictable. Instead, he advises his clients to consider renting out vacation properties while they wait for a buyer. After all, selling a second home often isn’t urgent, and a seller’s motivation can change. “Some sellers say, ‘Throw it out there. If we get the price we want, great. If not, I’m still using it,’” Macdonald says.

Experienced Sellers Can Be Rookies

Even seasoned sellers can feel like newbies when market conditions have changed markedly since their last sale. A client who sold one property during a downturn may be ill-prepared for today’s tight-inventory environment and the stress of handling multiple offers. Though it’s a nice problem to have, it can still be overwhelming.

Ashleigh Fredrickson, sales associate at 8Z Real Estate in Denver, says the biggest challenge for sellers of all experience levels is determining which offers stand the best chance of holding up. In a strong seller’s market, buyers can get swept up in the heat of the moment and bid 10 percent over list price only to realize later they won’t be able to qualify for financing, she says. So it’s important to counsel sellers—particularly those who have never been in such a situation—that the highest bid isn’t necessarily the best. “You want to make sure you’re getting the most qualified buyer so that you’re not back out on the market again,” Fredrickson says.

She suggests using a spreadsheet to help sellers analyze competing bids, taking special note of any contingencies. Your clients need to understand that a higher offer with more contingencies may not be in their best interest. “Maybe the timeline is paramount, so the seller will sacrifice a couple of thousand dollars to ensure the deal is done by a certain time,” Fredrickson says.

Above all, directness and thorough education are what every first-time seller needs, Macdonald adds. When a sale isn’t going the way a seller had imagined it would, “you need to look for strategies to offset the negatives.” But always “give sellers the honest truth, and don’t sugarcoat it,” he says.

 

Credit to Judith Crown
Judith Crown is a Chicago-based freelance writer specializing in business, government, and education.

homes for rent, homes for sale,
homes for rent, homes for sale, newstarrealty.com
Please follow and like us:

6 things every new real estate agent should do

It’s exciting to get your real estate license! The information presented in the prelicensing class can be a bit overwhelming (and utterly useless in your marketplace), but it’s all part of the coursework. You study and stress, stress and study, then pass your state licensing exam. When you learn that you’ve passed the test, you are elated and can’t wait to get started … but you learn fairly quickly that you don’t know where to start.

So here are the six things you should do:

Real estate puzzle

1. Select a broker.

Broker selection is critical. Your broker is the one who will help you map out your path to success.

You’ll want to interview a few brokers to compare what each of them has to offer in terms of compensation, knowledge, leadership and training. It may be tempting to sign with the broker offering the highest compensation package, but the other three traits are much more important to consider. If you don’t work with a knowledgeable broker who has strong leadership skills and who offers training, then you are less likely to reach your goals because you won’t learn the skills it takes to be a successful real estate agent.

2. Do more listening.

As a new agent, you have a lot of questions about what to do and how things are done. You have thought about how you want to work and where your business will come from, and all you want to do is get started. Because you don’t know what you don’t know, talk to your broker to see whether they have a 30-day program you can follow to get your business up and running. Although you may be anxious to share your ideas, try to listen more than you talk. Your ideas could be interesting but ultimately unrealistic. Listening to advice from your broker and other successful agents in your office about how to start your business is invaluable.

3. Get the word out.

Now that you’ve become an agent, you’ll want to get the word out. One of the best ways to start is by sending those on your list a handwritten message. It can be a simple three-sentence note simply letting your friends know that you have become a real estate agent and would appreciate it if they would keep you in mind for future business. Before you say that a handwritten note wouldn’t work for your people, give it a try. Because handwritten notes are so rare, recipients absolutely love them. It’s a welcome change from the usual bills they receive in the mail!

4. Learn the neighborhoods.

Many experienced agents have a niche or are known as experts in a certain neighborhood. As a new agent, you don’t have the luxury of having a niche; you just need some business. To better serve your clients, you will need to know the majority of the neighborhoods in your market. What are the house styles, price points and amenities? Since you don’t have many (or in some cases any) clients, use this time to learn the ins and outs of as many neighborhoods and possible. This information will serve you well as you assist visitors at an open house or when answering calls when sitting on floor or desk duty.

5. Be patient.

The average real estate agent sells one or two properties their first year in the business. About 75 percent of new agents fail in that first year. It is important to understand that you are building a business, and it takes time. Every successful agent you see had to start in the same place you are starting.

Continue to work on your business every day. Be patient. As you increase your knowledge, your confidence will increase. And as you grow more confident you will want to talk to more people. That is how your business will grow.

6. Find opportunities to learn.

Understand that not everything will go your way. Your friends and family will not always work with you. You will not get a great lead every time you sit on floor or desk duty. You may have zero visitors at the open house you are working. But all of these issues that appear to be setbacks enable you to improve how you run your business. Just because you don’t get a hot lead doesn’t mean that you can’t hone your telephone skills with those who do call in. When working an open house, you had to research the neighborhood and the other listings in that neighborhood, so you learned something new. Everything you do is an opportunity to learn.

Credit to Candy Miles-Crocker

Candy Miles-Crocker, “The Real-Life Realtor”, mentors and coaches new and experienced real estate agents to transform their business by mastering her proven systems for success. She is a firm believer in managing expectations and her goal is to elevate the perception of real estate agents among the general public through education. Candy’s unique training methods have shown agents what it takes to be successful!

NS_Blog_Web_Banner

Save

Please follow and like us:

9 Tax Deductions Every Real Estate Agent Should Know

Tax business

Closing a real estate sale requires a big investment of your time and money. Whether expenses are business, personal, or something in between can be unclear — leading to missed deductions and overpayment of taxes.

This is key knowledge regardless of who’s doing your taxes. Understanding which expenses are allowed will help you deduct with confidence and avoid overpaying on your quarterly and year-end taxes, no matter where you are in your career.

1. Vehicle Mileage or Expense

You spend your days driving between properties and appointments. How do you determine whether to go with the standard mileage deduction or track all your auto-related expenses? If you drive 10,000 miles or more per year for your real estate business, you will most likely get the greatest tax benefit by taking the standard mileage deduction.

The IRS requires you to keep a detailed log in order to claim this deduction, which includes date, time, mileage and purpose of the trip. Mileage tracking apps can streamline this process, automatically capturing trip date, length, and time of day for easy categorization.

If you are a lower mileage driver, or have especially high car payments, the actual cost method may yield a higher deduction. The two methods can be compared in more detail in this article.

2. Marketing and Advertising

To be a success and scale their business in a predictable way, most real estate professionals invest heavily in marketing and advertising. Remember that you can deduct not only the direct cost of promotions such as business cards, flyers, signs, ads, and promos but also the production costs, such as writing and design fees, whether the materials are produced by an agency or part-time hire.

Digital and online advertising costs are quickly becoming the greatest area of spending. This includes website design and hosting fees, search engine marketing, pay per click advertising, video production, and any other IT-related costs. Be sure to track all these business expenses.

3. Home Office Deduction

Do you have a dedicated area of your home for work? If so, you’re eligible for a home office deduction even if you also have office space at your broker’s office — unless you’re deducting desk fees already (see more below). Like the vehicle deduction, the home office deduction offers an option: the regular method or a simplified method. Most self-employed people find that the simplified method maximizes their deduction. However, if you have a particularly large home office, or live in a very high-cost area, the regular method — in which you track actual expenses — may yield the highest deduction.

4. Desk Fees

Whether you are hanging your license under a national franchise or with an independent broker, your desk fees are deductible. Note, however, that if you are taking a deduction for brokerage desk fees, you will not be able to claim the home office deduction.

5. Office Supplies and Equipment

Regardless of which office deduction you take, you can claim other office-related expenses, such as stationery, photocopies, and any other consumables needed to run your business. Other large purchases that can be expensed in full – or depreciated over a number of years –include furniture, fax machines, copiers, computers, or you telephone and associated bill.

If you have a dedicated landline telephone for business, you can fully deduct this expense. Increasingly, agents are using a cell phone for both business and personal use. If you do, you are eligible to deduct only the business percentage of that expense.

6. Meals and Entertainment

There are two situations in which you can deduct meals as a business expense: when you are travelling on business and when you are dining with clients or with other professionals for the purpose of conducting business or generating referral business. In either case, you can deduct 50 percent of your total expense, which includes tax and tip for the meal. In the case of business entertainment, you are allowed to take the meal deduction only if business was discussed during the meal, or immediately before or after.

In the case of events that are provided to the general public, such as a well-advertised open house, you are able to deduct 100 percent of the cost of refreshments and food.

Insurance banking

7. Fees, Licenses, Memberships and Insurance

Annual fees are a common costs of doing business and are deductible. In real estate, that means your state license renewal, professional memberships, and MLS dues. An important caveat with regard to professional memberships: The portion of your membership dues attributable to lobbying and political advocacy is not deductible.  General business insurance and Errors and Omissions (E&O) insurance are both fully deductible business expenses. Additionally, you can deduct real estate taxes necessary for your business, but not self-employment taxes.

8. Professional Development and Travel

Given rapid industry change, continuing education is a great way to stay competitive. It’s also a requirement in most states. Many real estate professionals pursue professional development through classes, trade shows, conferences, or coaching. If you need to travel to attend an event or meet with a coach you may be able to deduct those transportation and/or accommodation costs.

9. Software and Business Tools

Any software needed to run your business is fully deductible – including lead generation subscription services such as customer-relationship management (CRM) software. Products such as QuickBooks Self-Employed not only help you automatically track your expenses and mileage, but may be fully deducted as well.

 

Credit to QuickBooks Self-Employed

QuickBooks Self-Employed helps real estate professionals like you keep more of what you earn. Categorize business expenses with a single swipe and let our mobile app track your mileage while you drive. When it’s time to file your taxes, QuickBooks Self-Employed integrates seamlessly with TurboTax and your accountant. With your business income and expenses in one place, you’ll always know where your business stands.

NS_Blog_Web_Banner

Please follow and like us:

Improve Your Way to the Top

blog2

In King of the Mountain, if you aren’t fighting hard, you aren’t really playing. And if you aren’t playing, you’re losing. In this children’s game, where the goal is to push whoever is occupying the high ground out of the way and take his or her spot at the top of the mountain, the only person whose success doesn’t depend on improving in position is the king.

But maintaining the status quo doesn’t benefit anyone besides the king. And even the king can’t just cruise along — when everyone else’s full energy is directed toward taking you down, you won’t last long if you aren’t constantly defending your territory. If you want your brokerage to end up on top, you have to make sure your sales associates are playing to win.

What percentage of agents on your team are sincerely playing to improve rather than playing to cruise? The answer is a telling indicator of your team’s potential. People who are cruising stick with what they’ve always done. They’re content with where they are. In contrast, those playing to improve constantly ask themselves “What can I do to get better?” They’re focused not on maintaining but on looking for the next opportunity and stepping into it. Just as King of the Mountain players can’t depose the monarch of the moment without stepping up their game, a team in cruise control is in no position to grow and reach new heights.

If you’re leading a team that has an abundance of cruisers, it’s time to shift to a new gear. Make it your 2016 goal to change people’s mindsets so that at least 80 percent of your team is operating in “improvement” mode at any given time. You won’t hit that target overnight, but you’ll start seeing rapid and sustainable improvement by making the following three adjustments to your team’s culture.

Build a Culture That Rewards Going For It

Too often, team cultures promote the “safe play”—put in your time, don’t rock the boat, follow the script, and, after x years, you’ll be in line for a payout. But you didn’t get into real estate to play it safe. Such a culture stifles innovation and puts your team in prime position to get lapped by the competition. Shake things up by finding ways to publicly praise your outside-the-box thinkers and doers. Make sure agents understand that the way it’s been done before probably isn’t some magic formula that’ll always work. Empower them to bring you any idea they’re willing to own — and to pitch the ones you approve to colleagues.

Challenge People to Set Big Goals

Use every coaching opportunity you have, whether a formal performance evaluation or a hallway high-five on a big sale, to lead your team members to dream boldly about what’s next. Let them know you’re pleased when they hit a home run, but don’t let them milk previous successes. You’re leading a team of people who have chosen a career in sales, so it’s safe to assume they’re okay with competition. Use that fact to snowball individual aspirations and successes into teamwide goals and big-time wins.

Only Add Team Members Who Raise the Bar

Building a team that’s fully on board with what you’re working toward is never more important than when you bring on someone new. Only hire people who will raise the bar. Think of each hire as an opportunity to add a piece you don’t have yet, and you’ll stimulate everyone to step up.

These three enhancements to your team’s culture aren’t rocket science, but they require a strong commitment to continuous improvement that starts with you. The results you’ll see aren’t hard to interpret, either. Your team should be either on top of the mountain or striving to get there. And either way, the fight to improve continues.

 

Credit to Jason Forrest

Jason Forrest is a sales trainer; management coach; member of the National Speakers Association’s Million Dollar Speakers Group; and author of three books, including his latest, Leadership Sales Coaching. One of Training magazine’s Top Young Trainers of 2012, Jason is an expert at creating high-performance sales cultures through complete training programs. He incorporates experiential learning to increase sales, implement cultural accountability, and transform companies into sales organizations. Learn more at

Please follow and like us: