You probably got into the business because you enjoyed the freedom of working for yourself — being able to create your own business model, your own hours, and your own niche. But for some, a successful career as a real estate salesperson is only the beginning. If you aspire to start your own real estate brokerage, whether it’s a highly-specialized boutique or part of a big franchise, you need to start with smart planning, thorough research, and expert follow-through.

It’s never too early to start planning. Once you set your goal to open a real estate company, begin talking to other business owners — not just in real estate — to gather ideas you can use for your business. Unless they feel that you’re going to become their competition, people are usually happy to share their stories. Ask detailed questions, such as: What has been your biggest challenge? What surprised you most about being a business owner? What advice would you give to someone who is starting her own business? (more…)

search for : business model, real estate salesperson

Real estate agents are occasionally abused and frequently taken advantage of by indecisive, disloyal, or even deceptive customers and need to draw a firm line in the sand or at least in their own minds as to how far they will be pushed. Some agents “will not show a prospect more than three homes. If they want to see more than that he refers them to a new agent who is willing to ‘play taxi’.”

From a customer service level it is a pretty selfish way to do business. First of all, the customer has an investment in the transaction too. The real estate agent may be spending money on gas and spending time setting up appointments, but the buyer has invested time in establishing a relationship with someone they hoped to work with over a period of time. To be told after viewing only a handful of houses that they will be passed on to another agent can be disappointing and will require time and effort to establish a new relationship but it could also kill the desire to continue looking. An insecure buyer, particularly a first timer, may be shaken to the core by such an attitude and made to feel that they do not understand the process or that they are not behaving appropriately. (more…)

search for : Real estate agents

The U.S. Department of Justice is grilling the real estate industry over alleged anti-competition and restraint of trade violations. The Consumer Federation of America this month raked the industry over the coals in a new report that likens industry practices to a cartel. Spring and summer typically usher in a seasonal boost in sales, but a growing number of markets are stagnant with slow sales and flat prices. The deflating market comes with increased competition from a record number of licensed real estate agents, growth in discount, online and other new types of brokerages, and gains in the FSBO (for sale by owner) sector.

Yet, smart public relations can your best friend, provided you cozy up to the type that garners trust and credibility. Commissions put bread on the table and clothes on your back, but your true value to consumers is as a knowledgeable and credible source of information. Reliable information that helps clients make crucial decisions about what could be their most valuable transaction is, well, invaluable. It also garners cost-free, word-of-mouth advertising, one of the best types of advertising you can use to grow your business. (more…)

search for : U.S. Department of Justice, FSBO, for sale by owner, public relations

Hendersonville is more than a rural crossroads depicted in those TV shows. Its Main Street, on the National Register of Historic Places since 1988, anchors a 12-block historic district now dotted with cafes and art galleries. To enliven downtown, the town has carefully cultivated an image of Monday night square dances and neighbors relaxing outdoors in rocking chairs. The North Carolina Apple Festival — a celebration of Henderson County’s cash crop complete with apple pie contests — has been running for 60 years straight.

What was first a trickle of newcomers has turned into a rush and city life is beginning to encroach: Traffic, sprawl and now the arrival of the ultimate city slicker: Donald Trump. Two large residential projects partly financed by the New York developer’s mortgage company, particularly a luxury condominium that could cast a shadow over the turn-of-the-century courthouse, has split the community. So far the project can’t go forward because city officials say it violates a height ordinance designed to protect the town’s small-town feel. The ordinance stipulates downtown residential buildings can be no higher than the base of the courthouse dome. The developer, Ed Hernando, a transplant from Miami to nearby south Asheville, has lowered the height from nine stories to seven, but is still proposing a building that would cover an entire city block, with five floors of living space and two for parking. (more…)

search for : Hendersonville, National Register of Historic Places, North Carolina Apple Festival, Henderson County, Donald Trump, Asheville

Today, fully two-thirds of all home mortgages are non fixed-rate type loans. “There are so many different products out there today,” Tuli said. “All kinds of adjustables, interest-only loans, option ARMs, 40-year fixed instead of 30-year fixed rate loans, combination loans. There is an unlimited number of products and options available. You can tailor a product to each person’s specific need.”

When shopping for a mortgage, it’s important to take advantage of the Truth-in-Lending Act which requires lenders to disclose their rates and fees in writing. You can then compare these disclosures. Also take advantage of the many mortgage calculators that are available online to figure out your monthly payments under different products. And most important take advantage of the Internet and other resources to educate yourself about different products, especially some of the more exotic ones. (more…)

search for : home mortgages, interest-only loans, option ARMs, Truth-in-Lending Act

A steep increase in U.S. housing rental costs has boosted core inflation in recent months and could keep pushing it up through the end of the year, according to some economists. The Labor Department said on Wednesday the Consumer Price Index for May showed prices outside food and energy increased a steep 0.3 percent for the third month in a row. Behind that gain was a 0.6 percent jump in housing rental costs, also known as “owners’ equivalent rent” or OER. It was the largest monthly increase since August 1990.

Demand for rental properties has driven up rental prices across the country, raising the government’s estimate of owners’ equivalent rent. So far this year, core consumer inflation is running at a 3.1 percent annual pace, well above last year’s 2.2 percent rate. Over the past three months, price gains have accelerated to a 3.8 percent annual rate, in large part due to higher OER readings. (more…)

search for : U.S. housing rental cost, core inflation, Consumer Price Index, rental prices

A few counties, New Hanover among them, require new wells to be tested for unfriendly bacteria. But no tests are required when houses change hands. And the state has all but ignored drinking water safety. Educated and possibly even embarrassed by newspaper stories that pointed out the state’s neglect of elementary public health, Gov. Mike Easley and his administration are pushing legislation that would require new wells to meet state construction standards and then be tested.

Though the Senate voted to give the governor the $1.1 million he requested to help counties enforce state well construction standards, it rejected his request for $1.3 million to hire 19 people to inspect public water systems. Most of that money would have come from increasing fees on such systems. The fees haven’t been raised since 1992, but apparently local officials squealed loudly enough to squelch that idea. (more…)

search for : New Hanover, unfriendly bacteria, drinking water safety

My mother died about two years ago. Her will left everything to my sister and me equally. I was living with my mom when she died of cancer, so my sister has allowed me to live in the house if I pay the property taxes and insurance. There is no mortgage. The house is worth around $400,000. Now my sister thinks we should sell the house, but I don’t want to sell, as I am very satisfied with the status quo. Can my sister force me to sell?

Yes. As a co-owner, your sister can bring a partition lawsuit to force the sale of the house. In most partition lawsuits, the judge orders the property sold with the sales proceeds divided among the titleholders. (more…)

After slipping last week, mortgage rates moved up this week better reflecting the trend borrowers can expect in the coming months. That means iron-clad mortgage rate locks and speedy loan closings should be the strategy of choice for home buyers as well as refinancing and equity-tapping home owners. Inflation was brisk in May spurred by higher housing, gasoline and energy costs. The seasonally adjusted Consumer Price Index rose 0.4 percent in May, representing a 5.2 percent annual rate. For all of 2005 the rate was only 3.4 percent.

When the fed increases the cost of money to curb inflation, short term consumer borrowing costs for credit cards, home equity loans and adjustable rate mortgages likewise take a hike. Mortgage interest rates have fallen eight times this year, but during the first 24 weeks in 2006 they’ve risen twice as often, according to Freddie Mac’s Primary Mortgage Market Survey. Last week, Freddie reported the 30-year fixed-rate mortgage (FRM) averaged 6.62 percent, down from the previous week s average of 6.67 percent. (more…)

search for : mortgage rates, home buyers, refinancing and equity-tapping home owner

Q. We recently sold a modest home for $88,000 that we lived in when first married, for eight years and then rented it for 20 years. We are wondering if we should buy another rental or another home, since we are 59 and 60 years old, and wish to avoid paying a lot of capital gains tax … the house was fully depreciated.

A. You may have some unintended tax consequences depending on your desired course of action. First, in order to qualify for a tax deferred exchange, you needed to make arrangements with a third party intermediary prior to the sale of the property. Consequently, it is too late to defer the taxes on the gain by using a 1031 tax deferred exchange. (more…)

search for : capital gains tax, tax deferred exchange

North Carolina’s newest state park hasn’t even opened yet and already there’s talk of making it bigger. Lawmakers voted a little over a year ago to create a new park in the Hickory Nut Gorge area of western North Carolina. Now the state is negotiating with the owners of the private Chimney Rock Park about acquiring some of their property.

Hickory Nut Gorge is about ten miles long and goes through the Bat Cave and Chimney Rock areas. The area is home to rare plants and animals, as well as geological features including the famous cave. Gov. Mike Easley included $15 million for the park’s expansion in his budget proposal last month. “It is funding based on the legislation passed during the last session,” Easley spokesman Seth Effron said. Morse said the state is also talking with other property owners in the area. (more…)

search for : Hickory Nut Gorge, western North Carolina, Chimney Rock Park, Bat Cave, Gov. Mike Easley

For years, as a NASCAR owner, Richard Childress was at the top of the list. With legendary Dale Earnhardt at the wheel, Childress earned six Cup championships. Then the unthinkable happened. Now, with Kevin Harvick, Jeff Burton and rookie Clint Bowyer, Childress is back in the hunt for NASCAR glory, gunning for the kind of trophy no single shot can provide.

He lives on a sprawling Clemmons, N.C., estate that backs to the Yadkin River. His daily routine includes hours of hands-on supervision in Welcome at the Richard Childress Racing shop, which he’s expanded to a 14-building campus on 35 acres. And his passion extends to his majestic winery in Lexington, styled in the fashion of the great wineries of Napa Valley and Italy. Childress, 60, also owns a 700-acre ranch in Montana and a home in Florida. He maintains four aircraft to fly his NASCAR teams from track to track and has amassed collections of classic cars, antique weapons and artwork that would give Smithsonian curators goose bumps. (more…)

search for : NASCAR, Richard Childress, Dale Earnhardt, Kevin Harvick, Jeff Burton, Clint Bowyer, Clemmons, N.C., Yadkin River, Richard Childress Racing shop, Napa Valley, Smithsonian

Malone Bay – Lake Lots on W. Kerr Scott Dam & Reservoir. 18 Lots – 14 are Lakefront and meet private dock requirements.

Gated community with Lots ranging from 2.3+- acres to 6.8+- acres on the Hwy 421 side of the lake just off South Minton Road, Wilkesboro, NC 28697 (more…)

search for : Malone Bay, Lake Lot, W. Kerr Scott Dam & Reservoir, Lakefront, private dock, Gated community, acre, Hwy 421, South Minton Road, Wilkesboro, 28697

Linda Falcone, a Eugene-based RE/MAX Realtor who began her career in Phoenix 24 years ago, remembers when her life was ruled by a tyrannical pager. It would beep, and she would dash to the nearest phone – usually a phone booth where she would have to stand in stifling 100-degree heat. “It seems like the Stone Ages now,” she said Falcone said she was so relieved when mobile phones were introduced that she was the 11th person in Phoenix to buy one back in 1981. The bulky device was mounted on the floor of her car and cost $1,500, plus more than $1 a minute. These days Falcone routinely communicates with clients via cell phone and e-mail, and relies on a range of other gadgets, including a Palm Pilot and digital camera.

Buyers, too, are flocking to the Internet, to view listings and photos of houses for sale. Finding the right house, however, is only a small part of the overall buying process, said Bob Percy, principal broker at John L. Scott real estate, a Eugene realty. “There’s a lot that comes after you find a house that isn’t affected by technology,” he said, including making an offer, negotiating with the seller, overseeing inspections and closing the sale. Even though buyers are doing more of their own legwork online, most still hire a real estate agent, according to a recent survey by the California Association of Realtors. Nearly all (97 percent) of traditional buyers hired an agent; and 83 percent of Internet buyers hired an agent, the survey found. (more…)

search for : RE/MAX Realtor, mobile phone, cell phone, e-mail, Palm Pilot, digital camera, Internet

With the real estate market slower than anytime in the last three years, more realty agents and loan brokers are looking for customers in segments often forgotten by the mainstream real estate industry — minority communities. “For the longest time it wasn’t quite popular to be a minority,” said Hilda Ramirez, a director of the Santa Clara County Association of Realtors and co-founder of the Hispanic Association of Realtors and Affiliates. “But suddenly corporate America has awakened and it’s the hottest ticket in town.”

Nationally, 58 percent of Asians, 48 percent of Hispanics and 46 percent of blacks own their homes, compared with 74 percent of whites, according to 2004 data from the U.S. Census Bureau. But 60 percent of first-time U.S. home buyers in the next decade will come from these “underserved” communities, said Maria Valentin, diversity marketing director for First American Title Company, which hosted the conference. (more…)

search for : real estate market, realty agents and loan brokers, Hispanic Association of Realtors and Affiliates

A Ginn Company representative gave local business leaders an update on the largest development in county history during the Boone Area Chamber of Commerce’s “Wake Up Watauga” Friday and heard some criticism from a few audience members. Doug Miller, regional president for the Ginn Company, said 5,400 acres of the 6,200-acre Laurelmor development were in Watauga County and predicted the development would boost the county property tax base while adding little impact on public services. Miller also fielded questions from those who were concerned about the development’s impact on the rest of the county’s property values.

About 1,500 single-family homes and up to 400 condominium units will be built on the site. He said he expected about half of the resort’s residents to be there at any given time during the year, and said the amenities were designed to be family-oriented since many of the residents would have grandchildren. Miller said trails left from logging in the 1920s through the 1940s would be used as hiking trails and that 64 miles of streams would have erosion protection and buffers. Miller said a 17-member crew had been hired to oversee stream protection and erosion control. He said the project would have central water and wastewater systems, with the wastewater used on the planned golf course and other common green areas. (more…)

search for : Boone Area Chamber of Commerce, Ginn Company, Laurelmor development, Watauga County, property values, 1, 500 single-family homes, 400 condominium units

A faulty or even fake appraisal is said to be at the basis of every fraudulent mortgage transaction. But not every appraiser is at fault, or at least willingly so. James Blaydes of Blaydes & Associates, a Peru, Ill., appraisal firm says that in many cases, appraisers can’t stand up to pressure put on them by mortgage brokers. Either they “hit the numbers” as instructed, he said at the Mortgage Bankers Association’s National Fraud Issues Conference in Chicago recently, or they are blackballed.

Speaking for the Appraisal Institute, which has been calling on lawmakers to address mortgage fraud since 1981, when the problem was believed to be in its infancy, the Illinois appraiser said there are plenty of ways to fudge a valuation besides packing the final number. Among other things, appraisers can ignore the best comparables, or use properties in better neighborhoods as comps, he said. They also can mis-describe a property, such as labeling a commercial building as single-family. Or they can fail to mention physical problems. But appraisers aren’t the only ones who commit such flagrant fouls, Blaydes told the conference. Sometimes loan brokers do their own dirty work. (more…)

search for : appraisal, fraudulent mortgage transaction, mortgage broker, Mortgage Bankers Association, valuation

Real estate agents would say that the more you tell them, the better they can negotiate on your behalf. However, the degree of trust you have with an agent may depend upon their legal obligation. Agents working for buyers have three possible choices: They can represent the buyer exclusively, called single agency, or represent the seller exclusively, called subagency, or represent both the buyer and seller in a dualagency situation.

In a traditional relationship, real estate agents and brokers have a fiduciary relationship to the seller. Be aware that the seller pays the commission of both brokers, not just the one who lists and shows the property, but also to the sub-broker, who brings the ready, willing and able buyer to the table. It most cases you will have 2 broker’s splitting the commission. Dual agency exists if two agents working for the same broker represent the buyer and seller in a transaction. A potential conflict of interest is created if the listing agent has advance knowledge of another buyer’s offer. Therefore, the law states that a dual agent shall not disclose to the buyer that the seller will accept less than the list price, or disclose to the seller that the buyer will pay more than the offer price, without express written permission. Many times it makes sense to “assign” someone in your office one side of the transaction, thus assures there is no conflict of interest. (more…)

search for : Real estate agent, dualagency, real estate agent, broker, fiduciary relationship

Fannie Mae is a government-sponsored enterprise, as are Ginnie Mae and Freddie Mac. The Federal National Mortgage Association (FNMA or Fannie Mae), Government National Mortgage Association (GNMA or Ginnie Mae) and Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac) are all “secondary market lenders.” Fannie and Freddie subsidize the real estate mortgage market by buying mortgage loans originated by banks and other lending institutions. They also package mortgages and sell them to insurance companies, pension funds, and other financial institutions as mortgage-backed securities.

Fannie Mae was created by Congress in 1938 as a government agency to buy mortgages from lenders, creating a secondary market for loans insured by the FHA. Congress had created the Federal Housing Administration in 1934 to prop up real estate by providing governmental mortgage insurance for lenders. The federal government has also created the Government National Mortgage Association, GNMA or Ginnie Mae, to provide subsidized loans. A bank can originate a below-market loan to a low-income borrower, and then sell it to Ginnie Mae at full market value; the government pays the difference. (more…)

search for : Fannie Mae, Ginnie Mae, Freddie Mac, Federal National Mortgage Association, Government National Mortgage Association, Federal Home Loan Mortgage Corporation

USA Today reports that the National Association of Realtors is forecasting a 5.3 percent increase in rents this year, which is about double last year’s increase. The paper reports it would be the largest increase in rents since 2000, when the Internet boom and a white hot job market sent lots of young adults out of college looking for places to live. The last six years have seen a boom in new home construction, though, along with low mortgage rates, which helped many former renters move into their own homes, and helped keep rent increases more modest.

Rising rents is one of the factors in the higher-than-expected jump in consumer prices in the April reading from the Labor Department. In addition to making home purchases less affordable, the recent housing boom led many investors to convert apartment buildings to condominiums to try to cash in on the rise in real estate prices. One out of three apartment buildings sold last year were converted into condos for sale, the paper reports, and that took 191,400 apartments off the market, according to the Realtors. In addition, the newspaper reports the number of new apartment buildings under construction is down this year. (more…)

search for : National Association of Realtors, Internet, new home construction, real estate prices, apartment

The cold, clear water of LeConte Creek cascades over moss-covered boulders, lingers momentarily in small pools skirted by dense rhododendron and then rushes on through the hemlock, poplar, birch and maple forest. It’s here and in a handful of other streams in the Great Smoky Mountains National Park that the brook trout _ the only trout native to the eastern United States and more specifically to the southern Appalachians _ is making a comeback.

Imperiled from Georgia to Maine by decades of pollution, poor land management and competition from nonnative brown and rainbow cousins, “brookies” are regaining a foothold in the country’s most visited national park on the Tennessee-North Carolina line. For the first time in 30 years, catching and keeping brook trout became legal again in the Smokies under an experimental program begun in April. The announcement came just days before a coalition of conservation groups, the U.S. Fish and Wildlife Service, the U.S. Geological Survey and fish and game departments in 17 states announced an Eastern Brook Trout Joint Venture to restore brook trout habitat. (more…)

search for : rhododendron, Great Smoky Mountains National Park, Appalachians, Georgia to Maine, brookies, Tennessee-North Carolina, U.S. Fish and Wildlife Service, U.S. Geological Survey, Eastern Brook Trout Joint Venture

Mortgage rates row above 6% Housing prices continue to climb, and mortgage rates are on the rise. That’s double trouble for people looking to buy a home. In the past three years, the monthly cost of buying a typical house in the Richmond area shot 72 percent higher, thanks to the higher rates and prices. Monthly payments are 34 percent higher than just one year ago. And that doesn’t include escalating real.

Compared with just one year ago, your income would have to go up 20 percent to afford the same house. And not many people are seeing those kind of salary increases. If you bought an average-priced house — $179,036 — in the Richmond area in May 2003, you could expect to pay about $1,004 a month, excluding taxes and insurance. A year ago, the payment jumped to $1,288, based on a $221,493 house, the average price. Today, it would be $1,729, with the average climbing to $268,161. That’s using a 30-year, fixed-rate mortgage to finance the total purchase price. For the sake of making a clean comparison, assume no down payment. (more…)

search for : mortgage rates, Monthly payments, salary increase, taxes and insurance

To impress first-time buyers in today’s dynamic real estate marketplace, you have to work harder than ever before. They’re self-educated about market trends, use the Web to narrow their search before they call you, and have received no shortage of homebuying advice from family and friends. As savvy as they are, this new breed still benefits greatly from your expertise — if you can deliver it in the right way. By tuning into their needs and making the homebuying process as stress-free as possible, you’ll be the one they contact when they’re ready for their next move, and the move after that, and the move after that.

When asked what they want most from their real estate practitioner, first-time buyers say they need help finding the right home, negotiating price, handling paperwork, determining what comparable homes are selling for, and arranging financing. A hefty 79 percent use the Web as part of their home search. Because they rely so heavily on the Internet to research the market, today’s first-time home buyers tend to be very informed on housing styles, prices, loan programs, and neighborhoods. They use this data to narrow their search, sort of like window shopping. (more…)

search for : real estate market, homebuying advice, real estate, financing, Internet

Baby Boomers have a higher rate of homeownership than the national average and one out of four own more than one property, according to a new study of the largest generation in U.S. history commissioned by the National Association of Realtors®. Initial results were released at NAR’s Midyear Legislative Meetings & Trade Expo last week. The comprehensive study of nearly 2,000 Americans born between 1946 and 1964, conducted for NAR by Harris Interactive®, also shows boomers are optimistic about the future, but many are not adequately prepared for retirement.

Nearly eight in 10 Boomers own their own homes and almost nine out of 10 have owned at some point in their lives; 96 percent believe owning a home is a good financial investment – evidenced by their actions. According to the U.S. Census Bureau, the overall rate of home ownership is 69 percent. For the portion of Baby Boomers who have never owned a home, 85 percent cited financial reasons but 38 percent simply didn’t want the responsibility of homeownership. One-quarter of respondents own one or more other kinds of real estate in addition to a primary residence: 13 percent own land, 8 percent own rental property, 7 percent a vacation home or seasonally occupied property, 2 percent commercial real estate and 3 percent some other kind of real estate. (more…)

search for : Baby Boomers, homeownership, National Association of Realtors®, U.S. Census Bureau, commercial real estate, real estate