Commission-for-real-estate-transactions

Commission for real estate transactions – review by Dc Fawcett

Introduction

Commission is paid for real estate transactions. Many people don’t understand how commissions are paid. They are bothered only about the cost of the commission. In this article, Dc Fawcett, a real estate investor and educator, reviews how real estate commission works and makes you comprehend commissions.

What is a real estate commission?

A real estate commission is a fees paid to the real estate agent.

How much is it and who pays it?

A real estate agent’s commission is something which has to be paid by the broker. An agent works for the broker and the fees is paid by him. The broker makes a purchase agreement with the seller who then pays the broker along with the agent’s commission. A real estate agent’s fee is a percentage of the selling price and can be decided only when a selling transaction takes place. Now, who pays the broker’s fee? Is it the buyer or is it the seller? Well it is the seller who pays the broker’s fee.

Compensation for the real estate agent

A real estate agent is compensated anywhere between30% to 40% of the fees that the broker receives. Top class agents receive 100%

How is the money divided between the seller’s and the buyer’s agents?

Money for the seller’s and the buyer’s agents are decided according to a fixed agreement. Usually the percentage is equally divided. But in some cases one can get more than the other. In that case, the lawyer will do the needful. As stated before in this article, the broker pays the agent. The rest of the real estate fees are divided for marketing, office space and rentals.

Does the agent deliver as much as the fees?

When the home gets listed and then gets marketed very quickly, then the seller’s agent does not have much work. He gets commission for listing, fixing up the price and so on. This is just the basic work and he has not put in so much of efforts. The home has sold rapidly, luckily for him. But, he gets the commission as signed in the contract. On the other hand, say, a home does not get sold for a long time, even a year. Then the agent has to conduct many open houses, speak with so many buyers, keep abreast of market developments and effectively update marketing strategies. Also he has to bear the cost for advertising, signage and so on. In this case also, the agent receives the fixed commission only. So, this argument has a neutral side and you cannot decide on this.

Listing price commission

The listing price is the selling price. When the listing agreement is signed between the broker and the seller, the broker gets complete authority to market the home. When he does this, the agent of the broker brings a buyer for the seller. If the home sells, the broker gets a percentage of the list price as the commission. This is shared with the agent.

Conclusion

These are some of the basic points on how the real estate commission works as reviewed by Dc Fawcett.

 

Reasons why your home drives away potential buyers

Reasons Why Your Home Drives Away Potential Buyers – DC Fawcett

Introduction

Your home might sit in the market for a long time. The heartening thing is that your property can sell when are ready to adapt yourself to certain things. DC Fawcett says that It is important to question yourself what makes the buyer give priority to your home compared to the various other properties that are put for sale.

Now let’s see the reasons why your home is not selling:

  • It can be that you are not using professional photos. Generally the home buyers will have understanding of the home through the online photos. When the photos are in poor condition viz.,not having enough lighting, then the buyers will not be inclined to purchase the home.

  • It may happen that the agent is not the right choice. You must confirm whether the agent possessed a marketing strategy that fetched outcomes for other sellers. The key is that the real estate agent should possess sufficient experience in getting the desire outcome. He should be well-equipped with the current market trends and will also guide you on the elements that will have impact on your property’s sale. The legitimate agent should also contact you on a regular basis and keep you informed about the development. The key is that your agent uses a marketing strategy in such a way that there is utmost exposure.

  • When you work on a competitive price your marketing strategy will have a great impact. How much is the buyer inclined to pay? This question is the key to understanding the worth of your home. You can have a glance at earlier similar homes that were currently sold in your vicinity. You will be deciding upon a listing price. The essence is that you should ensure to confirm the real value of your property before this step.

  • Another reason that drives away potential buyers is that your home doesn’t have a curb appeal. At the very instance the buyers go through your driveway they will come to a conclusion whether to go for your house. You can develop an inviting ambience by concentrating on essential aspects including planting some flowers, leveling the grasses etc. Though the interior is very important to your house the exterior is also equally important.

  • It might be that you are not promoting your home appropriately through advertisement tactics. You may not have the photographic acumen or the writing skills. Do the advertising in such a way that your images and writing, which will be present in the brochures etc. don’t drive the buyers away.

  • Staging is one essential aspect for your home. But you should do it in such a way that you don’t fail in showing some issues. You may miss the sale when a prospective buyer is ready to buy the home but eventually finds issues at the time of home inspection.

 

Conclusion

Dc Fawcett  is proficient in the virtual real estate investing market and is the founder of the Virtual Real Estate Investing Club. He has sufficient experience in the field of real estate. One could get to know more about real estate through his free videos.

Brace up for purchase in 2017-dc fawcett

Brace Up For Purchase In 2017 – DC Fawcett

Introduction

Finding a suitable home for you to live in could be the most complicated process, and there should be a meticulous approach towards the process of purchasing a home.  There are several criteria which should be taken into account such that the home buying process is made easier.  DC Fawcett says You need to emotionally brace up when purchasing a home and it needs much assistance from experts. Also, the formalities are like a maze through which a realty agent would guide you through. Make sure that you have all the necessary money in hand before you go out for purchasing of a home.

Now let’s see some points for purchasing a home in 2017.

  • There are a few fortunate people who can make the entire payment in cash. But for the others, financing comes to the aid. But, you need to furnish a decent credit to avail the mortgage.  Your ability to furnish a good credit score makes it possible for you to avail a mortgage.  When you cannot furnish a decent credit score, you might be turned down the mortgage.

  • When you avail of more loans, there is every possibility that the debt outweighs the credit. There are lucrative mortgages which would come up, and you should not miss it just because you have severe debt damaging your credit score.

  • You can get a fine picture of how much you can afford through the process of mortgage pre-approval. Just see to it that your pick of property caters to your budget.  Being conscious of every penny that you spend, you can ignore the properties that are beyond your affordability. Thus, you can avail of the option to purchase a property in the community that best suits your financial stand.

  • For the first time buyers, there is no inkling of a doubt that, for the financing to be done, a mortgage lender has to be approached for consultation. You need to come to terms with the money you can afford and then get into the process of buying a home. You need to have a sound knowledge of the market in the vicinity.  You know your priorities better when you work with a realty agent.

  • Always there is a prevalent uncertainty about the value of the houses, but when you make an informed decision to purchase a home, you are happily in the home thereafter.

  • The price you have to pay for financing the home buying generally exceeds the home’s actual value. Be versatile regarding the mortgage alternatives and other expenditures.

  • The house may be offered for a certain price for which much care is given. The proposal to purchase a home involves both the cost and the terms.  The terms require much additional amount to be shelled out in certain instances.

  • Retaining a property without insurance is one of the most foolish things that one could do. The insurance acts as a shield during untoward incidents that affect and damage the property.

  • The closing process comes with different terminologies as Settlement or Escrow. It is no more manual in most of the places, and there is increasing computerization of the process.

  • The process of home purchase requires you to be financially sound. Following the steps that are listed above will make things easy for you to purchase a home.  A bitter surprise should not spring on you, and you need to take every measure to see to it that you clear the process in a hassle-free manner.

Conclusion

DC Fawcett is a real estate expert and you can get to know about the various aspects of real estate through his free videos too.

Listing an Income Property (Aspects to be considered)

Listing An Income Property (Aspects To Be Considered) – DC Fawcett

Introduction

Investment in an income property is no easy job. It requires lot of time, dedication, to achieve success in this deal. With the greater variations of stock market the public are more attracted towards making investment in real estate. You can earn a lot of profit through rentals and getting the appropriate rental property requires you to do the necessary homework diligently. DC Fawcett says that You have to have an appropriate investment plan before getting deep into the process.

  • You would have contemplated on listing your income property for the purpose of selling it off. In this process, your investment portfolio will not have it. Here then, you have to ensure its overall performance since possessing the property. You can ask questions including whether the tenants don’t default their payments etc.

  • When you sell off the property you will be making profit. Here then you should be ready to expend money on capital gains tax on this specific profit. The taxes will have an effect on your profit. However you will be provided with some other alternatives for the deferring of the taxes. Here the income from the sale will not go to your bank account. On the contrary it will set aside as an escrow. In the meantime you would be scouting for different investment properties.

  • You may be having your tenants living in the property. Here then you can carry out with the sale in few other methods. Once the term of lease expires you can implement the sale, given that the tenant goes out.

  • It’s prudent to carry off the listing process when the tenant is residing in the property.

  • You will be listing a residential property but listing an investment property has different scope. Primarily the audience is not the same for these both. So the key is to do a market research and market it appropriately. Come to a conclusion as to the right method to reach the potential buyer and in the process you can obtain the highest bid.

  • There will be a marketing description that is needed for your income property. So while advertising it can encompass gross annual rents, nature of zoning etc.

  • You should analyze all the advantages and disadvantages of selling your income property. This you should do after deciding on whether it is a good choice to sell. Later you can consult a real estate agent who is experienced in the real estate industry and who has worked with selling large number of investment properties. The real estate agent should be a legitimate one and your association will obtain the best price in the market. With the right mindset and tactics you can market your investment property in an efficient manner. You will be getting a profit out of this and you can channel it into your subsequent financially efficient investment.

Dc Fawcett is the founder of Virtual Real Estate Investing Club. Through this you will explore what’s favorable in the current real estate investing market.

Suggestions-for-purchasing-a-second-home-to-rent

Suggestions for purchasing a second home to rent – DC Fawcett

At the present juncture, the interest rates are very low.  So, this is the apt time to take into account putting the investment in rental property.  If the huge portion of the monthly cost for ownership, which is of course the mortgage payment, could be frozen for 30 years while there is a gradual increase in the rent, there is an escalation in the resale value of the property.  All along, you enjoy the income and benefits with regard to the tax.  That is the best accomplishment or suggestions that you could make.

But, there are some ifs which we need to consider.  It mostly is related to the investment property itself, rather than the issues regarding finance and tax.  Those rates of interest for a 30 year fixed mortgage are presently in the 3.5 – 4.0 range.  DC Fawcett says But, it has not been that much less in the past four decades.  And of course, the tax code is in the favor of home ownership and investment.

Consider the advantages in the tax:

  • Taxes, interest, insurance and other expenditures could be deducted against the property income. Losses could be deducted against the other source of income.

  • There is another tax deduction that comes in the form of depreciation. It is actually an allowance for damages, which is usually more than 27.5 years.

  • Rental properties could be disposed and the developments could lead to purchase of another rental property without payment of capital gains taxes.

Take into account variety of properties:

  • If one arrives at a decision to put investment in a rental property, he or she could do it in a variety of way.

  • A rental unit in the present residence or on property that exists.

  • Raising an apartment in an existing multi-residence apartment house or cooperative.

  • A residence or complex in a community that you would like to retire to.

  • A residence or apartment in the vicinity where children are going for college and this is a viable alternative to student housing.

  • Having a vacation home besides a lake, beach or ski slope where it could be used in two weeks of a year without going for a compromise on tax advantages.

 

Do not miss out the fact that you will turn into a landlord

Every one of the above listed factors has its own pros and cons.  Some people do not prefer turning into a landlord.  Management of a property and the occupants needs ample time and effort.  One can do the minor repairs all by himself.  If one is going to purchase a dual family residence in a developing neighborhood, for instance, residing in one unit and putting the other to rent, one could pinpoint the own expenditure of shelter (home expenditures joined with rental income and a fine depreciation on the rental unit) making a free approach or surpassing it within a couple of years.

Do the Homework on real estate

Making a fine research through the rental property should be as arduous as purchasing a residence to live in.  You must know the specific criterion in the market, the zoning laws and the existing trends and types of the vicinity.  Look out for something like a waterside, or nearness to a college or an older house in a particular community.

While doing the necessary arithmetic, take into account the fact that tenant paying substantial money has the privilege to anticipate immediate reply to any problem be it huge or not noteworthy. Those residents who know that they are paying less will not be that much demanding.  If the aspect of managing the rentals is intimidating, your broker in real estate could refer you to a property manager or a caretaker.  Also, online search will get you specific property managers.  But, one should be aware that getting a property manager will consume a huge amount of money.

Conclusion:

Putting money into real estate might not be the right choice for everybody. But, if you have a long term investment goal, and patience for the inherent risks, the advantages are truly considerable.

Dc Fawcett, the owner of the Virtual Real Estate Investing Club, has blogs through which you can draw a fine idea regarding purchasing a second home that could be rented.  Dc Fawcett invests into various virtual markets and is a master of wholesaling, rehabbing, and cash flow investing. His blogs are valuable in the sense that he could give a fine idea in the buying scenario.