The real estate business is a jungle where you can either make it or get swallowed. You will therefore need to know the rules of survival so that you make it.
Collaborate. Find great team members to help you pull off your overall vision. One person alone can only handle so much (and it limits your education). – Ken McElroy
Know your numbers. It is easy to get emotional about a deal, no matter how experienced you are. If you know your numbers and stick to them, it takes the emotion out of the equation. This can save your wallet, big-time. – Joshua Dorkin
Be fanatical about due diligence. Try to obtain and confirm every bit of information you can about an investment — not just the physical property but the history and potential future of revenue, operating expenses, and capital costs. – Frank Gallinelli
Be a Closer Not a Poser. It only takes a moment to tarnish your reputation. You can’t fake it till you make it. If you can’t close, don’t make an offer. – Mark Brian
Model your business after those who have already done it. There’s no need to recreate the wheel – just follow the blueprint that others have created. – Joe Fairless
Real estate is not only for investors. Everyone who participates is a stakeholder and therefore should adhere to certain rules for their own good. Buyers should not overdo things the same advice is also important for sellers.
- Buyers: Don’t overreach
A bidding war might spur you to overspend, but paying an inflated price can make it tough to resell when prices stabilize or sink. (Read 2008-2009 real estate columns as a reminder.)
A decision to pay a premium isn’t always an errant one, though, when you plan to live in the house long term. Rather than focus on overheated developments, look at comparable homes in neighboring areas with the same access to the schools and amenities that you value. Set a bid ceiling, and try to have a few other deals in the works so you’re less inclined to overbid.
- Sellers: Exercise your clout, but don’t overplay it
If you set a price from 5% to 10% above the market, you’re more apt to get an offer close to your home’s real value than if you start much higher and force your listing to go stale. However, if your home has better qualities than area comps, you have a bit more latitude.
No need to pay closing costs or offer other incentives to the buyer, especially if it means keeping your in-demand home off the real estate market. For example, a sale contingent on the buyers selling their home is reasonable but only with a contractual escape for you, often called a “kick-out” clause. That gives you the right to continue marketing your home. If a less-encumbered bid comes in, you then offer the initial buyers a set time of 48 or 72 hours to withdraw their contingency.
Sourced from: http://www.bankrate.com/finance/real-estate/tips/
If you are a seller then you should do your homework. This is in terms of pricing so that you do not under or over sell. Go with what is the average in your locality. You should also put your house for sale during the peak season.
“What Realtors® tell me over and over again, and from the analysis that I’ve seen historically, the most important thing is getting the price right,” Smoke says.
In 2016, prices are expected to increase nationally 3% year over year. Local price changes are anticipated to be more dramatic, with markets such as Stockton, CA, and Las Vegas, NV, expected to increase by 10%. But that doesn’t mean those stats are true of your town, or your neighborhood.
List during peak season
Unlike buyers, who want to minimize competition, sellers benefit from demand. Prime home-buying season begins in April and reaches its peak in June, according to realtor.com analysis of home sales. Sellers who list their home during the prime spring and summer months benefit from a larger population of buyers and potential bidding wars, which often result in higher prices and faster closings.