The question is why is there such a variance in what one agent charges over another agent? The reason for this is the amount of service they provide to you for their commission.
What some people don’t realize is that the commission isn’t paid by the buyer. So a Real Estate Agents services are free to the buyer. You can have a agent represent you in a transaction for free. What most sellers don’t understand is that not just your agent gets a cut of the commission. The listing agent gets only a portion, and the company he works for get a portion. Then the buyers agent and his company get a cut also.
So why does one company charge so much more than another? The difference is usually the amount of service you get. When you pay your agent. 2.7% of that usually goes to the buyers agent the company that they work for. Now if an agent will offer a buyers agent 2.7% for one home and the home next to it is selling for the exactly same price but is only offering 1% to the buyers agent, what home is the agent more likely to want to show and present in a more favorable light to their buyer?
That doesn’t mean all agents think this way. But there are agents that are not willing to even show that other home. This can effect how fast you sell your home, even in a hot market. It also will effect how much money the listing agent is willing to put toward advertising your home, or even having an open house.
My best advise is you usually get what you pay for, and if it sounds to good to be true it usually is. What you end up saving in commission you will usually lose in price.
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
Todd@IFoundYourNewHome.com
Sunday, April 30, 2006
Sunday, April 23, 2006
How to Make Your Investment Property Work for You
Do you own an investment property? Do you ever worry about how you are going to make money with that property? Most investors think the only way to make money is the rent. This is just not the truth! If you have a real estate agent that is telling you this property will make you money for years to come is doing you a disservice. YOU can make up to 19% on your investment property without ANY money out of pocket!
Most owners of rental property only look at the money they bring in each month. This is not the way to look at rental property. It is just one of the four ways a rental property can make you money. The four parts are: debt service, cash flow before taxes, taxable income and appreciation.
If you take your present investment property and purchase a new property, with only the equity that you have built in your current property you could do this year in and year out with NO out of pocket expenses. With the help of the right real estate agent you could buy a duplex that could not only put money in your pocket each month, it could also pay for the mortgage, be a great tax write off and with the appreciation could earn you 19% or more on your original investment! That original investment was paid for you by the equity in your present rental property. This 19% can also be earned EVERY YEAR and I will gladly sit down with you and show you how this can be done.
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
YourLifetimeAgent@Yahoo.com
Most owners of rental property only look at the money they bring in each month. This is not the way to look at rental property. It is just one of the four ways a rental property can make you money. The four parts are: debt service, cash flow before taxes, taxable income and appreciation.
If you take your present investment property and purchase a new property, with only the equity that you have built in your current property you could do this year in and year out with NO out of pocket expenses. With the help of the right real estate agent you could buy a duplex that could not only put money in your pocket each month, it could also pay for the mortgage, be a great tax write off and with the appreciation could earn you 19% or more on your original investment! That original investment was paid for you by the equity in your present rental property. This 19% can also be earned EVERY YEAR and I will gladly sit down with you and show you how this can be done.
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
YourLifetimeAgent@Yahoo.com
Sunday, April 16, 2006
How To Make More From Your Rental Property
Do you own a rental property? Or are you thinking of owning one? Ever worry about how to increase your profits without losing renters? You can make more money every month without raising the rent! Now your thinking about it, aren’t you? Let me give you just a few suggestions that may help increase your profit each month without losing those renters.
Do you have a washer and dryer hookup? Most renters don’t have the money to buy a washer and dryer, so they end up driving to the local coin-op. How about contract with a local coin-op to install them in each of your units and split the profit? It is a win-win for everyone involved. With this suggestion there is also a benefit that most owners of rental property haven’t thought about, that I suggest to all my income property owners. By offering this service, you have it written in to the rental contract that you will enter the home once a month and collect the change from the machine. By doing this you can also do a visual inspection of the unit every month. This will help keep illegal activity to a minimum if not stop it all together.
How about a rent to own situation? This is a great profit center for a lot of owners! The main reason this is such a great deal for investment property owners is that most rent to own buyers can not get regular financing through a bank or lending institution. But by offering them a chance to purchase with a NON-REFUNDABLE deposit you can charge them a higher rent and about 70% the time after just a few years they change their minds and move on. You get the deposit and also the benefit of higher rents for the time they were there.
Always think outside the box when it comes to getting more from your rental properties. There are always ways to make more money that do not involve charging more rent. Ask your Realtor about ideas they may use or have heard being used on other rental properties in the area.
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
YourLifetimeAgent@Yahoo.com
Do you have a washer and dryer hookup? Most renters don’t have the money to buy a washer and dryer, so they end up driving to the local coin-op. How about contract with a local coin-op to install them in each of your units and split the profit? It is a win-win for everyone involved. With this suggestion there is also a benefit that most owners of rental property haven’t thought about, that I suggest to all my income property owners. By offering this service, you have it written in to the rental contract that you will enter the home once a month and collect the change from the machine. By doing this you can also do a visual inspection of the unit every month. This will help keep illegal activity to a minimum if not stop it all together.
How about a rent to own situation? This is a great profit center for a lot of owners! The main reason this is such a great deal for investment property owners is that most rent to own buyers can not get regular financing through a bank or lending institution. But by offering them a chance to purchase with a NON-REFUNDABLE deposit you can charge them a higher rent and about 70% the time after just a few years they change their minds and move on. You get the deposit and also the benefit of higher rents for the time they were there.
Always think outside the box when it comes to getting more from your rental properties. There are always ways to make more money that do not involve charging more rent. Ask your Realtor about ideas they may use or have heard being used on other rental properties in the area.
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
YourLifetimeAgent@Yahoo.com
Sunday, April 09, 2006
Finding the Right Fixer Upper for You
Ever thought about buying a fixer upper and then selling it to make a profit? If you answered yes to this question you are just like thousands of others before you. Not all of them made money, but others have made thousands. What is the difference? Why did one person make money and the other lose it?
The reason one person can make thousands on a fixer upper and one loses thousands is the way they planned it out. The person who lost thousands usually sees what they thinks is a great deal, buys it, spends $30,000 fixing it up, and then puts it back on the market for $45,000 more than they bought it for. That is great if the homes in the area are selling for that price. Now lets look at the person making thousands of dollars, they start at the price they can sell the home for! Let us say he can sell a home in an area for $250,000, he will then take that price subtract the price of closing, selling and fixing it up and add $10,000 for profit. Now let us say that is the same $45,000 the person who will lose thousands thought he would sell the home for. Now that means they cannot buy a home for more than $205,000. This will get him the price he wants when he goes to sell. The first buyer might lose money because the neighborhood prices may not be able to justify a $45,000 price increase.
Real Estate is not game for the faint at heart! It is something that if done right and with the right Real Estate agent can make you very rich. But if you don’t plan ahead and have an agent that will help you do the math beforehand, it can end up being a very costly life lesson.
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
YourLifetimeAgent@Yahoo.com
The reason one person can make thousands on a fixer upper and one loses thousands is the way they planned it out. The person who lost thousands usually sees what they thinks is a great deal, buys it, spends $30,000 fixing it up, and then puts it back on the market for $45,000 more than they bought it for. That is great if the homes in the area are selling for that price. Now lets look at the person making thousands of dollars, they start at the price they can sell the home for! Let us say he can sell a home in an area for $250,000, he will then take that price subtract the price of closing, selling and fixing it up and add $10,000 for profit. Now let us say that is the same $45,000 the person who will lose thousands thought he would sell the home for. Now that means they cannot buy a home for more than $205,000. This will get him the price he wants when he goes to sell. The first buyer might lose money because the neighborhood prices may not be able to justify a $45,000 price increase.
Real Estate is not game for the faint at heart! It is something that if done right and with the right Real Estate agent can make you very rich. But if you don’t plan ahead and have an agent that will help you do the math beforehand, it can end up being a very costly life lesson.
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
YourLifetimeAgent@Yahoo.com
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