While cap rate is a good starting point, I like to also take a long-term view and consider potential appreciation of a property. Cap rate takes into account the return on YOUR money invested while appreciation on a leveraged investment (you’re probably only putting 25–30% down so you’re using 75–70% of a lender’s money) over […]
Author: Michael Lee.
As a former university professor my goal is to make sure that my clients are the best-educated home buyers and sellers on the planet. I have been blessed to be a real estate professional for over forty years helping thousands of clients to reach their goals whether it is buying their first home or selling investment property.
Can I save money by not using a buyer’s agent?
Your question really should be, “Is it worth it not to use a buyer’s agent”? First, recognize that, in the United States, the seller usually pays the commission to both the listing and selling brokers. If a buyer want to buy a property without an agent the listing agent usually keeps both commissions because they […]
Is becoming a Realtor a good career choice?
It depends. Becoming a real estate professional is NOT a good career choice if you: Want or need a steady and predictable income. Are not comfortable with talking with strangers every single day to get clients. Cannot handle rejection which is a big part of getting the few clients that you will work with. Don’t […]
Should you go to an open house without a Realtor?
I’m not sure when we’re ever going to get back to holding open houses again due to COVID–19 but when we do there’s no problem in going to one without your agent. Just don’t talk with the listing agent at the property because what you say could give away some of your negotiating leverage. If […]
Should you buy or sell your home first?
If you have the financial means to buy your next home without having to sell your current one it doesn’t matter in which order you do it. However, if you do have to sell your present property before buying another there are several considerations: If you’re in a sellers’ market you’re better off selling your […]
How do I write a winning offer in a seller’s market?
You need to find an experienced agent to represent you who knows how to build a trusting relationship with the listing agent, minimize contract contingencies, finds out how many offers are likely to come in and makes sure you one of the top one or two offers. Then helps you respond effectively to any counter-offer […]
A couple purchased our home for over asking & had a large down payment so appraisal was waved according to buyers. But we have no paperwork yet. Does our realtor get paperwork stating such? It’s been 2 days.
There is a law in the United States called the “Statute of Frauds” which requires certain types of contracts to be executed in writing, including the sale of land. If someone made an offer on your property there should be a written record of it and you are entitled to a copy. Ask you agent […]
I’m considering buying a house with a transformer box in the front yard. Will there be a problem in resale on a future date?
Anything that detracts from the home will hurt its value, especially if it’s in the front yard where everyone can see it. In addition, a transformer box will make some people concerned about the possibility of electric and magnetic fields which some believe can cause cancer. However, if you can purchase the house at the […]
How do I become a successful broker who sells houses? It’s my dream job.
See if you can shadow one or more successful local agents for a few weeks. What you’ll quickly discover is that selling real estate is a whole lot harder and pays a whole lot less money than most people think. Job shadowing lets you see past the glamorized television stereotypes into the real day-to-day work […]
Can a real estate agent create a contract in which if the first buyer’s contract to buy the house fails, the back-up buyer can buy the house?
Yes, it’s called a Back-up Offer Addendum. As a listing agent, I always like having at least one back-up offer to keep the primary buyer moving forward because they know if they push back too hard on repairs or other contingencies there’s somebody else ready to buy the property. Having a back-up offer in place […]