By Dale Beaumont
Let's do a quick test!!
1. What is your hourly rate?
2. Now divide that number by 60 and what do you get?
That's the value of your time every minute. If it's more than $1.00 you're doing well. However, how would you like to increase that figure to $100, $1000 or even $10,000 per minute? Well you can, simply by learning the art of how to NEGOTIATE. As real estate investor Hans Jakobi says, "NEGOTIATION Is The Highest Paid Work You'll Ever Do!"
A new book titled: 'Secrets of Property Millionaires Exposed!' takes people up-close and personal with eleven of the country's most successful property investors, including John Fitzgerald, Hans Jakobi, Ed Chan, Dymphna Boholt, Gordon Green, Craig Turnbull and others. In a surprisingly candid way each contributor shares their own unique wealth strategy and dozens of hints and tips from their years of experience.
The following six (6) points are the author's perspective of the contributor's views on the subject of 'The Psychology of Negotiation'.
1. Understand where the money is made
All successful property investors know that the money is made when they 'buy' and not when they sell. Buying at wholesale or 15-20% below market value is like adding rocket fuel to your portfolio's growth. By buying below market value you instantly build significant equity in your investment. You can use this equity to move onto your next property faster, or perhaps to fund renovations which in turn increases the property's value even further (more equity) and enables you to receive a higher rental return (more income).
2. Know that the deal you do is the best deal for them
Remember that if you come to a deal with the vendor, it was the best deal they had on the table. So by doing a deal with them, you have in fact helped the vendor take the property off their hands and you've paid more than what others could afford to pay. By understanding this you will make a small yet significant shift in your psychology when negotiating on a property. By having the mindset that you are there to help the vendor out of their predicament you'll be less inclined to become emotionally involved in the negotiation.
3. Get to know the vendor's needs
Although it is true that in negotiation 'information is power', it is information about the vendor's needs that will help you to reach the best deal for both parties. If you can find out the real reason why the vendor is selling, you'll know how motivated they'll be to accept your low offer. What's more, by asking questions, you'll be in a better position to offer more favourable terms and conditions. So show interest and ask questions!
4. Don't act too keenly on a property
When talking on the phone or while doing a house inspection, a trained real estate agent will ask pointed questions of you to extract information which may later be used against you to lever up the price. When this happens stay neutral and even a little nonchalant. But be careful to not come across as disinterested, otherwise you wonÕt be seen as a serious contender and you'll be left out of the communication loop. So stay relaxed and cool but with your eye on the ball.
5. Never lose your cool
Keep in mind that you'll need to be communicating with the agent and vendor over the entire length of the contract, which could be up to 90 days or more. So it's imperative you stay consistent and refrain yourself from sudden outbursts if something doesn't go right. Remember if the vendor believes they have been taken advantage of or felt offended, even the smallest request by you will be seen as an opportunity to get even. It's called human nature!
6. Be prepared to walk away
Sophisticated investors understand the deal of a lifetime comes around once a week, so don't be disheartened if one slips through your fingers. Take some time to sit and think about what happened and what you can learn from the experience. Then get on your feet and keep moving, because another deal may just be waiting right around the corner.
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About the Author
Dale Beaumont is a young entrepreneur and the creator of the 'Secrets Exposed' series. Having now released over 15 best-selling business books (available in bookstores across Australia or from www.SecretsExposed.com.au). Dale has been featured in all forms of the media and has become a sought-after speaker. To discover more about Dale's books, read his blog or to download other free articles and resources, please visit: www.DaleBeaumont.com
Photo: Courtesy of www.mastercleanco.com
Negotiation: The Highest Paid Work You'll Ever Do
Who Should Hire the Real Estate Appraiser and Why?
by: John Harris
Everyone involved in the sale of real estate has a vested interest in the results of a real estate appraisal. The outcome affects the seller, the buyer, the lender, and even the realtor.
A too low valuation of the property by the appraiser could mean a seller must lower the asking price. For a lending officer, it could mean a lesser commission or none at all. A too high valuation means the buyer could be paying more than the property is worth. For the realtor, his/her commission could go higher or lower, which is based on the purchase/sell price of the real estate.
An appraiser, who should be licensed by the state, performs the real estate appraisal. It is best to hire someone local with years of full-time experience in order to get a more accurate appraisal. The appraiser and appraisal are governed by the minimum standards, published periodically in the Uniform Standard of Professional Appraisal Practice by the Appraisal Foundation. The Foundation is chartered by Congress.
The recent real estate bubble, unfortunately, brought problems for appraisers and many involved in real estate transactions. According to Realty Times in their April 2006 issue, appraisers have been routinely asked by lenders to inflate real estate values to keep up with the ever-rising real estate market. One real estate appraiser in San Diego quit and turned in his license to the state, after being fired three consecutive times for refusing to inflate his valuations. Now, real estate appraisers across the United States are under a microscope from federal financial regulators and Congress.
The real estate appraiser may be hired by the seller to determine an accurate selling price or by the buyer to ensure the accuracy of the purchase price and mortgage; but generally, the lender does the hiring or uses their own in-house appraiser. Though buyers may assume the lender has their best interest, mortgage lenders have their own best interest at the forefront, especially some not-so-scrupulous lending officers who may be targeting a higher commission.
If I were a seller, I would hire my own real estate appraiser to ensure I was getting the most for my property. As a buyer, I would put the money out upfront to hire an independent and objective appraiser with no connection to anyone within the real estate transaction. This ensures that I do not contract for a mortgage, based on an inflated appraisal valuation, that will give me a new home with a lower or negative equity. The lender still may require a different appraiser.
If five different real estate appraisers evaluated the same property within the same timeframe and under the same conditions, it could result in five different and varying real estate valuations. Why? There is no set checklist or established value for each property feature and amenity. Though appraisals are based on prescribed standards, it is a subjective process.
If there is more than one real estate appraisal and they disagree significantly, you have options. If the value is too low for the seller, renovations may raise the value — or you can decline to sell. If the lender insists on its appraiser’s value, which disagrees with your real estate appraiser’s value, as the buyer you can look for financing elsewhere — or decline to purchase the real estate. There also is the option to bring the appraisers together to come to a common agreement on the value.
Remember, the person looking out for your best interest is yourself. Ensure the appraiser in your real estate transaction is reputable, objective with no connections to anyone in the transaction, local and experienced.
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About The Author
John Harris is an expert researcher and writer on real estate topics such as economics, credit improvement tips, home selling advice and home buying preparations. For more on San Diego Homes for Sale visit http://www.twtrealestate.com.Photo: Courtesy of www.StockXpert.com
Why Do You Need a Real Estate Appraisal?
by: John Harris
Anytime you buy or sell real estate, you need a real estate appraisal. The primary purpose is to find out exactly how much your property is worth. Banks and similar lending companies also require it, before a buyer can obtain a mortgage.
A real estate appraisal develops an “educated and trained opinion” on the value of the property. It also, in some circumstances, may ascertain the best use of the property, garnering the best selling price. For example, a long-time residential property may be in an area that has been rezoned for limited commerce, which could potentially bring in a higher sales price than marketing the real estate to potential residential buyers.
An appraiser differs from an inspector, who is looking for things that need to be corrected, repaired or replaced — things that are required by law to be completed before the property can be sold or to enhance your sale price. Though an appraiser will look at these same things, he/she is only interested in developing the value of the property.
A real estate appraisal is based on the highest and best use of real property — what use of the property will produce the highest possible value? The final appraisal must be both profitable and probable.
The real estate appraisal includes a definition of the type of value that is being developed — whether it is a market value (what most sellers need), a condemnation value, quick sale value, and so on.
The Process
The appraiser looks at each property individually, beginning with an objective inspection of the interior and exterior of the home or building, as well as driving through the surrounding neighborhood. The appraiser looks for the assets, as well as the detriments, of the property. For homes, gross living space, quality of construction, location, layout, the number of bedrooms and bathrooms, the lot size, condition of the home and land, central air conditioning, landscaping, number of fireplaces or the lack thereof, decks, pool, fencing, recent renovations, amenities provided by the surrounding neighborhood, and crime statistics of the area are all considered by the real estate appraiser.
Living space is calculated by measuring the outside of the home. It does not include such areas as the garage, porches, sheds, and so on. Basements are generally calculated separately from the living space. The contributory value of basements is determined by the local market, government regulation, if it is finished or not (and the quality of the finish), and so on.
The real estate appraiser usually only considers permanent buildings within his/her appraisal. Fixtures that can be relocated, such as above ground pools and sheds, are not included in the appraisal.
If you are the real estate seller, you should point out any features, amenities or improvements of your home that are not readily discernable.
Next, the real estate appraiser analyzes the available market data for your area and the surrounding neighborhood, including current and historical comparable sales, current offers for comparable homes, pending sales, and proposed improvements. The appraiser gathers data from a variety of sources, as well as his/her own personal knowledge of the local market. The appraiser then compares your real estate to the broader market.
Each real estate appraiser has his/her own process of analyzing, collecting and reconciling the needed appraisal data. If you get five different appraisals for your real estate, you may receive five different appraisal opinions. They should, however, all be within a similar value range, if they are completed within the same timeframe and under the same conditions.
Though the real estate appraisal is not for public consumption, it may be shared with all parties concerned. For instance, a buyer has offered $150,000 for a home, but the buyer-side, commissioned appraisal value is only $146,000. Sharing this appraisal with the seller means that the owner can do needed improvements to bring the price up or offer the real estate to the buyer for the appraisal amount.
For the highest appraisal possible, real estate sellers should have an inspection and appraisal done before putting the property on the market. First, the inspection in order to make any needed repairs or renovations. Then, get the appraisal to ensure you are getting the most for your real estate.
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About The Author
John Harris is an expert researcher and writer on real estate topics such as economics, credit improvement tips, home selling advice and home buying preparations. For more on San Diego Homes for Sale visit http://www.twtrealestate.com.Photo: Courtesy of www.RealEstateDiggers.com
Make The Most Out Of Your Catalogue Real Estate With These Tips
by: Janice Jenkins
More than your pictures and illustrations in your catalog, your catalog copy is one of the most significant elements in your marketing collateral.
Copywriting is basically an art form that lets you communicate your message to convince your target readers to do your bidding. And this is not an easy task. Mastering the art of persuasion involves creating descriptive copy that allows your audience to see, feel, taste, hear, and smell your products through your words.
As your target readers don’t experience all these activities in your catalog in reality, you need to provide the sensory experience through your text. Your words should be able to fill that gap between your prospective clients and your product.
It’s not a new concept actually – copywriting as a sensory activity. If you think about it, it’s always part of having to convince your target readers to see your products the way you see them.
And mere words just don’t work. You need effective descriptions to make your audience really understand your product. Effective descriptions are what draw your clients to the situation even if they are not there.
For your real estate catalogs, you don’t just write how many units you have in your condominium, or how many rooms and bathrooms each unit has. Your descriptive copy should be able to use words that actually transport your client from his dreary place to a place where the breeze is blowing in his cheeks and the warm sun waking him up in the morning.
Can you feel the cool breeze kissing your cheeks? Can you smell the newly cut grass from your lawn? Does it paint a pretty picture for you?
How about “sun-dappled terraces”, “authentic hand woven hammock that cradles you while you sleep”, “sunning in your tree-shaded veranda”…these are examples of how you can infuse your catalogs with effective descriptions to make your real estate business more appealing.
I can’t say it enough. Writing descriptive words that appeal to the senses is essential to having an effective custom catalog for your business.
Your clients can’t see, feel, hear, smell or even taste what you have. The next best thing is to provide them a clear illustration that will attract their senses so that they’ll want to purchase from you.
When you write your custom catalog copy, choose the most suitable feeling and focus on those senses. If you’re into real estate then obviously you need to target on the sights and feelings.
The main thing here is to help your readers see, feel, hear, smell, and taste your product that is not there in front of them. Let them experience what you yourself have experienced with your product. When you have great copywriting for your catalogs, then that’s the time that you will truly get the most out of your real estate catalogs.
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About The Author
Janice JenkinsFor comments and inquiries about the article visit: http://www.printplace.com/printing/booklets.aspx
Photo: Courtesy of www.EdmontonRealEstateBlog.com
