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

Rebalancing your retirement savings should be second nature (it is, right?). But it’s not just the asset side of your personal balance sheet that needs tending to.Your debt, specifically your mortgage, deserves thought from time to time.

Home-equity lines of credit were the crack cocaine of the home-improvement binge of the past few years, and it’s easy to see why. Three years ago, the minimum monthly payment on a $100,000 line of credit was just $333. But now that the prime interest rate (which is the rate most HELOCs are pegged to) has doubled to 8 percent, the minimum is $666. If you can’t pay off the HELOC, you may be able to convert it to a conventional loan. (more…)

search for : retirement savings, balance sheet, Home-equity lines of credit, HELOC

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…)

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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