Types of Real Estate Sales Commission

Most real estate agents get commissions from home buyers and sellers to earn a living. Therefore, these realtors and agents usually do not have a salary at the end of a month after working with home sellers and buyers. Ideally, the expenses they incur may include:

  • Gas (fuel) used when traveling from and to the premises
  • Licensing fees
  • Advertising property for sale in magazines, or any other platform
  • Association fees
  • Work space needed in real estate agency

The commission these agents get is their only primary way of getting income to cover the cost of doing business. In most cases, when you chose to hire a real estate agent in selling your property, you sign a listing agreement document which acts as a supporting document. There are three types of listing agreement documents:

1. Exclusive right to sell listing

Here, the listing agent acts as your property representative and in the listing, you agree to pay their commission even though your property was sold by them, their efforts or somebody else’s. However, when signing this listing, you can name one individual or entity as an exception of the listing. When you exempt someone from selling your property, you are not liable to paying them any commission even if they are involved in the sale of your property. This kind of an agreement is held for a specific period as agreed between the two parties.

2. Exclusive agency listing

This type of listing makes your real estate agent your representative in selling your property. The agreement in this listing is to pay your commission to the agency through the efforts they make during the sale. This type of listing has an agreement period when the contract is held viable.The only exception of this listing is if the sale of your house is through your efforts. Here, the agency cannot be paid any commission because they did not have any efforts during the sale of the property. The period needed for the contract is agreed between the owner and the agency in writing.

3. Open listing

“In open listing, your real estate agent is your sole representative,” says John, a One Percent Realty expert in Maple Ridge, “and as a result, you agree to pay their commission if the sale of your property is as a result of their direct efforts. One advantage of using this listing is that you can use other agents as well to sell your property. The most competitive, hardworking or the one which has a large networking has the chance of getting a buyer and hence earn the commission. This is a good deal for you if you want to sell your house fast when in need of money because you can just list several agencies while still paying only one after the job is done.”

Selling property is a task which is quite demanding because it entails skills, knowledge, and experience. Hiring a realtor is a good decision because you can quickly sell your property with less hassles because real estate agents are experienced and knowledgeable in this field. Understanding the different types of sales commission is good because you can choose the most appropriate one for you. Exclusive agency listing is the most common listing with exclusive right to sell listing and open sell listing being least common.

Vital Information On Hiring A Phoenix Vacation Rental Property Management Service

property management tips

Lots of individuals that invest their money into purchasing a vacation property like to rent out their vacation property for extra income. This is especially true if a person does not use the vacation property often. However, there are few things that need to be taken care of if a person wishes to rent out their vacation property. One of the most important things that need to be take care of is finding a suitable Phoenix vacation rental property management service. This article will present vital information on hiring the right property managers for a rental property.

Because of the fact that many people that like to rent out their rental properties do not have time to manage the property and choose tenants, they often choose to hire property managers. Property managers come in a wide range of different shapes and sizes. Some are good, some are bad, while others are mediocre. It is vital that a rental property owner do everything that they can to find a rental property manager that is of the highest standard. It is vital that they choose property management that specializes in the management of vacation properties for the best possible results.

Find Out How Much Experience They Have

A very important question that needs to be asked to prospective property managers is their experience in servicing and managing rental properties. It goes without saying that a person should go with a management business like our colleagues at Red Hawk that has a large amount of experience in real estate management.Inexperienced and amateur prospective management businesses should not be considered. It is a known fact that a property management business can make or break the potential profits of a rental property. Thus, it is very important that a management business that has lots of experience is chosen for the job.

What Are Their Fees?

Once an experienced management business is found, more questioning needs to be done to find the absolute best management service. This includes questions that pertain to the fees that will be charged for the management of the rental property. Furthermore, questions the pertain to what kind of services are provided with the management service are also essential. A property owner who wishes to rent out their rental property should already have a set budget on how much they are willing to spend on management. Thus, they should only consider management services that fall into their budget. Furthermore, management businesses that do not provide essential services such as emergency plumbing for tenants should not be considered.

Ask For Regular Updates Regarding Your Property

In addition, a very telling sign of whether a property management service is to be trusted or not is whether or not they are able to provide regular updates on the property. Any management service that is confident in their abilities should easily be able to provide the property owner with photos and updates on the overall condition of the rental property.

Video by Red Hawk PM a top Phoenix property management company to choose from

Ultimately, a lot of research and effort is required by a property owner in order to find a high quality Phoenix rental property management service. As mentioned above, the quality of a property management service can greatly influence whether or not a rented out property will be successful or not. Thus a property owner should do as much research and questioning as possible to find a management service that he or she can trust.

How To Hire A Property Management Company For Your Rentals

rental property management for condos and houses

Despite the many pitfalls related to real estate in the last few years, it is still one of the best investments around. But buying real estate as an investment often requires holding the property and renting it. This leads naturally to the need to manage the property.

As buyers and investors, our ambitions and passions lay in the finding and negotiating for the property. Most investors hate having to deal with tenants, maintenance and other such issues. Here we will discuss the ins and outs of hiring a rental property management company to deal with those issues the owners would rather not deal with.

Hire an Individual or Company?

To hire someone, or a company to manage your properties you will want to know what exactly it is you want. If you hire someone with little or no property management skills then they will not have any system for managing or reporting expenses or issues. In this case you would need to provide a system for them.

“A company that is paid to handle many properties will have systems in place to provide you with monthly reports on repairs, expenses and other such items.” states Joe Adams of Ascent Real Estate in Vancouver. “In some cases this type of management company may also have relationships with suppliers and they may even have an in-house maintenance crew for repairs.”

Things To Consider

Deciding which type of manager or company you want, you will have to determine how much hands on you want to have. The budget you have to pay for such a service will also factor into which way you go, as well.

You will definitely want to make an appointment to interview with them. You do not want to trade one headache for another. If you hire a person or a company that is not suitable for you and your personality it will be as miserable as having to do everything yourself.

If you are a smaller investors and have only a few apartments or properties to manage, then you might consider hiring an individual and creating a system for handling the issues that come up as well as how you want them reported to you. You will need to give them a way of keeping track of all cost and you will likely need to develop relationships with suppliers and so forth.

In this situation it might also be good if the manager can take care of most maintenance issues. Because you are small, it might be too costly to hire one person to manage and another to perform maintenance. If you are willing to do a thorough interviewing process to pick a good candidate, and you are willing and able to develop your own system that you teach to them, then this can work well.

If not, you will want to get a company. They will cost more, but they will have everything in place. This includes a maintenance crew, relationships with suppliers and a complete system to report any and all issues and expenses.

If you do go with a company, be sure to interview them just as you would an individual because property management is something you need to handle long term and this means who you have doing it on your behalf needs to fit your needs and personality.

The Top Real Estate Tips For 2015

There are several things a home owner can do in order to sell a home quickly without having to come down with the price. These top real estate tips for 2015 should help you get the price you want in addition to making the sale take place much sooner than you think.

Make Your Home Presentable

The first and most important tip is to make the house presentable. Whether you choose to start from the outside or inside, make sure the first impression is a lasting impression. This includes the landscaping. Remember that the garden frames the house and sets the atmosphere. It doesn’t matter how beautiful the house looks on the inside, if the garden looks run down then the potential buyer is going to have doubts.

phoenix and tucson real estate

Bathroom Renovations Deliver The Best Return On Investment

Fixing all the small problems and doing the necessary renovations are fundamentals for getting the price you want within an acceptable amount of time. In fact, certain renovations can actually let you increase the price, especially renovations done to the bathroom. If there are problems that you didn’t fix then let the buyer know about them.

Pick The Right Season To Sell Fast

Believe it or not, there are specific times during the year when the house market is booming, so try to get everything done before the optimal season in your area starts. It’s also recommended that you use a female real estate agent, because it has been concluded that they typically sell a home quicker with higher prices.

De-Clutter Your Home

Another thing you want to consider is to remove as much of your furniture as possible. The rooms will automatically appear bigger and the potential buyer will be able to imagine living there with more ease. Take down personal items and photos and only keep the basics. It’s also important to give all the rooms a sense of purpose. Assuming that you have a room you use for storage or is simply empty, turn it into something useful.

Keep It Clean

Last but not least, make yourself available to show the house at all times. In other words, always keep it clean so that when potential buyers show up unexpected you don’t have to turn them away.

These top real estate tips have been working for years and they will continue to be effective during 2015. Make the effort and fix up all the small things, make your garden alluring, remove personal items, keep it clean and be ready for anything. That’s how you sell a house quicker than putting up the “for sale” sign.