Real estate, as a character in a popular sitcom, is defined as finding people with their perfect home and making them comfortable. But real estate is about buying and selling houses, apartments, or any landed space for residential, commercial, or industrial use. People who ply this trade are known as realtors or real estate agents. Real estate agencies are mainly known as middlemen or women between the landlord and seller and the tenants and buyer. Gone are the olden days when if you are interested in buying or leasing a space, you walk up to the owner and conduct business with them directly, but now we have a real estate agent who helps to go through the stress of negotiation all for a fee.
Buying or selling through a real estate agency is one of their main functions. When you want to sell space, you contact good and reputable real estate to help you to get the best price value for your property. The agency goes through the trouble of getting the necessary documents for the sale or getting the property into top-notch value so the sale can be profitable. Some agencies collect part payment for consultation upfront while some after the sale has been gone, collect their cut. They would put the supposed property on the market and get the best buyer. They can also help when you are interested in buying a place, they would assess the property for sale documents to avoid any errors and this is also assessed by their real estate lawyer. If there are no issues concerning the paperwork, they also have people who would assess the supposed property and make sure you get a fair price for it. They have great negotiators who can be a little bit tricky too.
When leasing space out, the landlord contacts the real estate agency that, there is an available leasable space, then the agency assesses the place and gives the landlord as price range he could get for the place. Some real estate agencies even collect rents on the Landlord's behalf and relate it later to him or her. The renters also contact a real estate agent about their intentions to lease a particular space. This is why when there is a property for sale or to-let on a property, it is usually the real estate agent contact that is on the notice. Most times, the landlord and tenants don't even meet till the deal is almost finalized because the agency has sorted everything out. The real estate is then paid an agency fee during the agreement and everything is signed with the landlord taking a copy, the tenants, and then the agency.
Starting a real estate business can be very tricky because you must know how to talk to clients. Financial adequacy is required because you might have to use your own money first before you start making money. There could also be an instance where a person wants to sell or lease out a place but it is not up to standard and the person is not having cash ready to carry out those repairs. The agency could agree with the owner to carry out those repairs at their cost and be repaid when the deal is pulled through. Such a deal is called flipping. An agency without appropriate financial backing won't be able to flip properties. Flipping could also result in loss to the agency if the value of the place drops after the repairs have taken place, so agencies have to be careful with the properties they invest in. This is why appropriate consultation is carried out before the agency involves itself in flipping any property. Individuals could also involve in flipping. If the agency can't carry out the cost, an individual can invest the property and make profits with the flipping of the property. But this carries the same risks too.
Good customer representation also helps in the real estate business. Real estate agents must be good with interaction with people because it would be necessary when convincing people to represent them. You would never see an ill-mannered real estate agent doing well in the business because people won't want to do business with them. This applies to everyone under the agency, from the janitors to the secretary if the agency receives clients. The agents who go out must also know to interact well with customers and still be persuasive.
The location of the real estate is also important because the agency has one that is easily assessable by customers. A good location also helps in getting new clients. Real estate agencies can get new clients by taking from other agencies or by getting fresh ones. Location is also important because it helps in easing the movement of agents. When a client is been taken to see a place, he or she might get tired if the drive is too long. The location also has to be central, when a client comes to buy or lease a place, they usually have an area they would like in mind, so the office property has been close to there or the agency must have smooth means of convening the client to their properties around the area wanted by the client. In the real estate business, there is also shared commission, this is when your client comes to buy or lease a property in an area in which you don't have property so you, therefore, have to look for an agency that does and share the agency dues with the agency when the deal pulls through.
Realtors or real estate agents have one of the most exciting but volatile jobs. One moment they are in millions and the next they are in crisis because the market value has dropped, so they must have backup plans. One secret of the real estate business is that land appreciates, but property depreciates. This means that the land can rise in millions but the property on the land can lose value due to decay or wear and tear. So most times it is the value of the land that still keeps the whole value up but it's a major crisis if both are on a decline. For more on the real estate business, stay landed on ritrends.com.
📸 Philipp Birmes
Posts
0 Comments