REAL ESTATE TIPS
Real Estate Tips For Buyer and Sellers
Tips For Choosing A Real Estate Agent
It is important that you choose the right real estate agent when you are buying or selling a home.
Below we have listed five tips for choosing the best real estate agent.
1. Research
Literally do some legwork. Take a stroll or get in your car and drive around your local neighborhood and check out the for-sale signs. Notice if one company dominates the market and what fliers or other marketing materials are available. The most important thing do SOLD signs go up after days, weeks, or not at all? Thus you will get a feel for which real estate agent does the best job in your area.
Another good idea is to visit open houses to view other homes on the market. This is a great way to see the real estate agent in action, and meet them in a casual setting.
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Are they friendly, informative and professional?
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How do they respond to other people coming to the open house?
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2. Interview Multiple Real Estate Agents
A home purchase or sale is the biggest financial transaction you will enter into during your life so it is important that you spend sufficient time to interview at least three agents before deciding whom to hire. You want to find someone who has great knowledge of your area and expertise in the buying/selling process, that is, familiarity with all the technicalities such as title, appraisals, financing, negotiation, inspections, etc. Above all else, you need to ensure that you feel comfortable having this person guide you through an overwhelming and stressful process.
3. Check Out Ratings and Reviews
While a personal referral to a real estate agent is the best, the next best thing is to look at online ratings and reviews for the agent. It is invaluable to get feedback from other people who have dealt with a particular agent and how they rated their service.
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4. Set Communication Expectations
An important part of the process is the communication between your chosen real estate agent and yourself. The most common complaints from buyers and sellers are about the agent’s lack of communication. Make sure you’re on the same page from the beginning. Establish how the agent will keep you informed and how often you expect to hear from them. If you prefer email but the agent is most responsive to phone calls, you may not be a good fit for each other. It doesn’t matter how fantastic your agent is if your communication styles clash.
5. Ask the Right Questions
There are many questions that you can ask during the interview process. Separate the best real estate agents from the rest by asking the following questions and getting the answers that best suit you:
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How many deals did you complete last year?
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How many of those deals were in the area I am interested in?
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How will you prioritize and strategize for my needs?
If you are purchasing a home then establish how the agent will search for homes for you, how many homes you can expect to see before finding the right one, who will come up with pricing, and how multiple offers are handled.
If you are selling your home ask how the agent will market your home both on and off-line, how many photos are typically posted with a listing, what kind of photo equipment will be used (for high quality photos), where your home will be advertised and how often? Finally, can this real estate agent tell you what current buyers are looking for in a home these days?
Use this guide and ask these questions to make sure you have the right real estate agent helping you
with one of the most important decisions in your life.
How Smart First Time
Home Owners Find Their Dream Home
Starting Out
When searching for your first home, it will be very exciting but can also be challenging. You need to decide where you want to buy, the type of home you want and how much you have to spend. Take your time to make these decisions.
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Mortgage Pre-approval
It is a great idea to get in place the amount you can borrow from your lender and have their approval before setting out looking for your ideal California home. Having your loan pre-approved gives you the confidence to house hunt and speeds up the process when you make an offer on a California home.
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Choosing Your Location
As you move away from the area, house prices tend to get lower so the first thing you will want to decide is the area you want to live in. That said you also need to take into account the distance from where your employment is in regards to traveling to and from work.
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Type of Property
You will want to choose the type of real estate property that suits both your style and needs.
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Property Size
You need to decide how many bedrooms you need to accommodate yourself and your family, but this may differ from what you want. Also, consider things like garden space and a garage etc. These are likely to increase the cost of your home so you need to be ruthless in your decision making especially if you are on a tight budget. Other things to consider when choosing your perfect home are things like amenities and the general state of repair of the home.
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House Hunting
Once you have made the decision on which area and what type of house you want to buy you can now start house hunting. It is a good idea to visit open homes you are interested in and to talk with as many real estate agents as you can and ask them questions. It’s important to remain objective when viewing the properties and not get swept up in the moment. Remember, some flaws may be hidden! Take a trusted friend along so you can enjoy the benefits of two opinions. But remember, this is your home, not theirs, so listen to their advice and opinions cautiously.
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Finding a property
Contact as many real estate agents as you can and give them the details of the type of home you are looking for, the area you want to live in and the amount you can afford to pay. They will have a catalog of homes, and their listings will often be displayed on the front window as well as on their website. Take a look and view them, and ask to be contacted if any new properties come onto the market.
Online search
As well as real estate agents, you should also look online and search for appropriate properties there.Also, sign yourself up for the email alerts that notify you as soon as new properties become available.
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Newspapers
The property section is a lift out so you can easily keep the listings with you.usually look through the property listings that appear in your local newspapers and cut out properties that you like you can then contact the relevant real estate agent to arrange a viewing.
Tax Benefits Of Real Estate In California
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There are tax incentives for both personal residences and rental properties in California. This is one of the many advantages of investing in California real estate as either a homeowner or a real estate investor. The tax advantages of owning real estate in California are one aspect of investing that transcends market conditions.
Mortgage Interest Deductions advantages of Real Estate in California
For homeowners in California, you can get a tax break on any interest payments you make on your home loan mortgage. You are able to claim all interest you pay on your mortgage as a tax deduction. If you pay 28 percent tax and you purchase a $700,000 home in California with a 20 percent down payment and have a $560,000 mortgage at 5 percent, your mortgage interest deduction during your first year of home ownership will be just under $8,000 ($28,000 in interest times .28). There are limits on the amount of interest that can be deducted from your tax and an income threshold beyond which deductions are not allowed, but the vast majority of California homeowners never reach these limitations.
Tax Benefits of Real Estate in California
For California real estate investors who own rental property, depreciation is a significant tax benefit. Depreciation is a deduction of the cost of buildings and capital improvements to buildings over their lifetimes. You use the figures provided by the IRS which determines the useful life of various classes of buildings and improvements in order to determine the tax break for depreciation. For example, if you purchase a California home for rental worth $1,000,000, you can deduct $36,363 from the building’s income each year for 27.5 years. ($1,000,000 divided by 27.5 years.) It is possible via depreciation to make an actual cash profit on your rental income but shows a paper loss for tax purposes. In some instances, you can carry over excess depreciation to reduce the tax liability of your employment income.
Tax Exempt Profits advantages of Real Estate in California
As a California homeowner you are entitled to an exemption of $250,000 (if you are single) or $500,000 (if you are married) of profit in your home when you sell it. To qualify for this exemption you must live in your house at least two of the prior five years before the sale. You are able to get this exemption once every two years.
Tax Deferment advantages of Real Estate in California
When you sell your California rental property, you may take advantage of IRS code No. 1031 and put the profits into a new real estate property in California, tax-free. The 1031 exchange can be used over and over, theoretically resulting in a permanent avoidance of tax on your profits. You may also do a 1031 exchange and then refinance the new building, taking your profit out as equity, tax-free.
With these advantages in owning real estate in California, why contact the best realtor to fully explain these beneficial benefits.
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