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September 8, 2019

Assessed Value vs Market Value: What’s the Difference

The terms assessed value versus market value are very different however, each of these terms play an essential part in property value. Over time, you will learn how each value works towards the overall price, value, and market position of your property, but if you have questions now, you are not alone. Many people entering into a property purchase do not know, “What is assessed value mean towards the total value of my home?” And you may have other questions, too. 

Talking to the team at the office of Jeff Barchi can answer this, and other questions about the value of your property. Because there are so many different steps involved in assessing the value of a home, you can use this simple guide to assessed value vs market value to help guide you through the process. 

What is Assessed Value? 

The assessed value of a property is used primarily for tax purposes however, homebuyers, and sellers can use it to compare with the market value. The assessed value is a dollar amount assigned to a specific property to measure the applicable taxes of the property. The evaluation is used to determine the value of the property and can be used for inspections, home sales comparisons, and tax purposes along with any other use by the realtors, buyer, or homeowner. 

Also known as a property tax assessment, an assessed value is essential to the property over time. You see, when the home is sold the owner will need to know the assessed value to estimate the property tax bill. Even after the mortgage is paid off, the property taxes will remain. If you want to budget accordingly over the duration of your home mortgage, you can use the assessed value to help with the calculation.

What is Market Value? 

The value of a piece of property is more than the price per square foot. In fact, there are many factors that come together in order to create an accurate property value. Market value is the price that a property is most likely to fetch in the open market. The forces of supply and demand will always impact your property value. However, knowing the market value, and comparing it with the assessed value of the property can help you in an open market transaction. 

assessed value vs market value

Assessed Value vs Market Value

Sometimes, you need to see the terms “assessed value,” and “market value” in a side-by-side comparison. Here are the top 5 differences between assessed value versus market value:

  1. Impact of Market Fluctuations. value is resistant to market fluctuations, and thus can be used over time. In comparison, market value is impacted by fluctuations in the local market. 
  2. Usefulness/Purpose. The assessed value is used to calculate the property taxes that can be used over time for other purposes. In comparison, market value is used as a way to find the property sale price. 
  3. Factors Affecting Calculation. The assessed value is a rate decided by the municipalities. In comparison, market value is related to location, size, condition, improvements, and recent transactions including property market data. 
  4. Who Calculates It? The assessed value is calculated by a county assessor on behalf of the local municipality. In comparison, market value is usually determined by a real estate agent on behalf of a client. 
  5. Calculated Value. The assessed value is normally less than the market value based on an assessment rate decided by the local authorities. In comparison, market value is influenced by the forces of supply and demand in the current marketplace. 

It is common for people to get the terms assessed value vs market value confused when they are related to real estate valuations. Most people know that the two terms are similar, and can be used interchangeably, but you may still have questions. Understanding how the terms are different from each other is how you can make the most out of every property value, sale, and taxes. 

 

If you have additional questions about what is assessed value versus market value, call the offices of Jeff Barchi to talk to a professional REALTOR® or team member. 

 

August 28, 2019

Questions to Ask Realtor When Selling Your Home

If you have questions to ask a realtor when selling your home, you are not alone. In fact, most home sellers need to talk to a professional real estate agent about how to sell a house even before adding their home to the marketplace via the Multiple Listing Service (MLS). If you want to know how to hire a realtor, it does not have to be a difficult or tiring process because you can use this simple guide. 

Hiring a realtor to sell your home is a must for so many people. After all, who has the time to create an MLS listing for the home, call a home inspector, take offers, and process all of the paperwork themselves? If you do, you may already have experience in the real estate industry, but if you are like most people, you could use some help. 

A Simple Guide on How to Hire a Realtor

It is not rocket science… it’s real estate. But, that does not mean you can handle everything all by yourself. Reach out and find the person with this simple how to hire a realtor guide.

  • Consider experience and market knowledge
  • Ask about qualifications and certifications
  • Ensure the agent has enough time for your needs
  • Discuss compensation and understand the commission
  • Interview the agent so you know how you can handle your personality
  • Select an agent 

hiring a realtor to sell your home

FAQs for Your Realtor (before selling your house) 

If you have an idea of how you want to sell your home but still need help getting all of your ducks in a row — that is ok! Here are a few of the most frequently asked questions about buying a house. Be sure to use these five questions to ask a realtor when selling your home beforehand so that you can avoid the most common mistakes. 

Q: How Much Repair is Needed? 

A: Over time, a home will require all types of maintenance. As you prepare your home for sale, create a checklist of home repairs and updates to avoid necessary costs. 

Q: Where Will I Live? 

A: If you are preparing to move out of your house, you may also need to find a new place to call home during the same timeframe. Talk to an experienced real estate agent at the offices of Jeff Barchi to help you with the home selling process. There is also a team member able to help you get started on finding the new home of your dreams to move in to. 

Q: What is the CMA for My Home? 

A: Your realtor can give you a comparative market analysis or CMA for your home and other homes in the area. That way you can compare the details of price, square footage, layout, and even neighborhood statistics to gain valuable perspective. 

Q: Can They Afford This House? 

A: One of the most important details about buying a home is the price. You need to know that the buyers can afford your house before you begin the selling process. Have your agent verify information on buyers including what they owe on mortgages, loans, and other debts so that you avoid financial risk. 

Q: How Will You Sell My Home? 

A: Never be afraid to ask how a real estate agent plans to sell your home down to the little details. There are plenty of ways you can get involved, so have your realtor break down their plan of action before entering into the home sale process. 

Finding out the answers to all of your questions before beginning the home selling process is the best way to alleviate stress. You can stay organized by following this simple guide to hiring a realtor to sell your home. When you get settled with the one you can work with – don’t stop there. You have only started down the path to finding the perfect new home for you and a buyer for your current house. 

Call the offices of Jeff Barchi to start talking to a qualified realtor, today! 

August 21, 2019

What Does Contingent Mean When Buying or Selling Home?

Contingent is a term that you may hear in a real estate office regarding a home offer. When an offer on a home has been officially placed, and the seller accepts it, the final sale is “contingent” upon criteria. This specific list of contingencies may include clauses in the sales contract, or other criteria that typically fall under three categories. These main contingency categories are an appraisal, home inspection, and mortgage approval. 

Real estate contingencies are usually put in place to offer homebuyers a way to back out of a sale if something goes wrong during the closing process. A seller may also block out offers from other buyers until the contingent offer is settled in one way or another. 

If you are questioning, “What does contingent mean on a house for sale?” and need more information about the term and the processes it includes, read on.

What Does Contingent Mean in Real Estate? 

The word contingent has many meanings, however, in real estate, the words are usually referring to the three categories mentioned above. Here are the three most common categories of real estate contingency clauses:

  1. Appraisal

This is a type of contingency designed to protect the buyer. Used to ensure the property’s value is within a reasonable, specified amount, an appraisal contingency works as a clause in home purchasing contracts. 

If a property does not appraise for a minimum specified amount, a contract with an appraisal contingency can be terminated. Under an appraisal contingency, a home must meet the agreed-upon price, or higher than when appraised. If not, the earnest money is almost always refunded to the home buyer.

Note: No matter what type of home loan program you choose, a lender will always require an appraisal. An appraisal contingency for conventional loans typically lasts between 21-30 days, so, plan for the lag in processing.

  1. Home Inspection

Especially important for home buyers, an inspection contingency protects the right to a professional home inspection before finalizing the sale. After the earnest money has been received, if anything goes wrong, a home inspection contingency allows the buyer to negotiate the price, or halt the sale. 

Because personal safety is also a reason to include a home inspection contingency, it is a good idea to use this clause during the home buying process. Generally, it is considered a must-have clause in a home sales contract because home inspections are also a tool used to rule out potential dangers, and identify repairs before you move in. 

what does contingent mean in real estate

  1. Mortgage Approval

Home sellers beware: buyers may attempt to sign a property mortgage without having the money to back up their offer. However, with a mortgage contingency in place, the homebuyer and seller are both protected from a real estate sale gone bad.

With this contingency in place, the homebuyer will have a specific amount of time to get a loan to cover the mortgage. Once the offer is accepted, the buyer can still lawfully walk away from the sale with their down payment, but they may not be able to get a lender to commit. A mortgage approval contingency can also be waived, which is common for cash offers.  

We hope we managed to clarify the question, “What does contingent mean when buying a house?” Many prospective home buyers do not know what a contingent home offer is until they ask an experienced real estate agent. Talk to a member at the offices of Jeff Barchi today, and ask any questions you have. You can discuss what contingencies may apply when making an offer on your dream home.

August 15, 2019

Is It Cheaper to Build a House or Buy It

Deciding to purchase a home is a big move, so you never want to depend on home trends. While every home trend comes and goes, it is best to know exactly what you want so that you can make the most out of the amenities available to you as a builder, or homebuyer.

If you are in the market for a new house, you may be wondering, “Is it cheaper to build a house or buy a new home?” The question is multi-dimensional as the comparison of building versus buying houses already on the market is never a simple equation. In fact, the cost of building a house vs. buying a turnkey property may be up to 6-figures different depending on the area, quality of supplies, and move-in deadline. 

Frequently Asked Questions: Building vs Buying a House 

We created this FAQ list to answer some of the most frequently asked questions about the price of a new home. However, every homebuyer is different, so consider your own personal needs, and then find out more about your options by talking to an experienced real estate professional. 

Q: Will My Home Appreciate in Value? 

A: If you build a new home, some of the current trends can die out, dating the home, and negating appreciation value. When building a new home, consider passing up trendy styles to maintain the price value of your property. If you purchase a home, research the home sale prices in the area to get an idea of the context of your purchase, and its appreciation potential over time. 

Q: What is the Average Cost of a New Home? 

A: Today, an existing single-family home costs an estimated $223,000 or $148.00 per square foot (for homes built before 1960). A new home can cost an average of $289,415 – about $66,415 more than the cost of an existing home.

Q: How Can I Save on Costs? 

A: If you are purchasing an existing home, older construction materials, appliances, and other outdated items can overtax your energy bill (an estimated $215.00 if built before the year 2000). Save on costs by updating old appliances, and if you are building your dream home, consider reducing energy costs with solar panels and eco-friendly building materials. 

There are many factors you will need to consider before purchasing building materials or making an offer on a house for sale. Some other things to keep in mind before you put your roots down as a homeowner include the cost per square foot to build a home versus the cost of a house listed for sale, construction materials, energy costs, general contracting bids, labor costs, time schedules, home maintenance, and value appreciation.  

cost of building a house vs buying

A Final Note on Location

If you want to know, “Is it cheaper to build a house or buy it?” remember that location makes a huge difference when it comes to estimating the cost of building or buying your dream home. 

Depending on which area you live in, property values will vary. Taking to a professional with experience in both areas can help you turn your dream house into a reality. Call the offices of Jeff Barchi to discuss your plans for building a new home or buying an existing house on the market. You can ask all of your questions to find out how much you can afford, where to get approval from a lender, and an accurate estimate of the cost of your dream home. 

July 21, 2019

Do I Need a Real Estate Agent to Sell My House?

Many people who call the office of Jeff Barchi ask, “Do I need a realtor to sell my home?” This and other questions will be answered after you make the call to the office. Then, you can discuss your home and the options you have for selling your home. While you can legally sell your own home, a licensed real estate agent will oversee the sale including all legal, documentation, and monetary aspects of the process. If you have a house for sale that you want to list on the market you may be wondering if you need a real estate agent. 

Why Use a Realtor to Sell Your Home?

If you are wondering if you should sell your house yourself or use a realtor, you are not alone. Millions of people wonder every day if they have the knowledge, and skills to sell their own home without any assistance from a real estate team. Homebuyers can be found everywhere! So, as a seller, you do not want to limit yourself by only placing a “For Sale By Owner” sign in your yard, and waiting for buyers to come to you. In fact, it is best to team up with real estate professionals to gain a full sale price – even though they take a commission, and fees. 

Is There a Difference? 

You may think that you can simply read the signs in the front lawn of a home for sale, call to make an offer, and process the sale of a home yourself. However, the process is not always that easy. It is not complicated to purchase a new house and turn it into your dream home, but first, you must know the difference between for sale by owner and realtor listings. 

By Owner

  • Post a “For Sale by Owner” sign
  • List the home online with websites like Zillow.com 
  • Call Jeff Barchi to discuss your options

Real Estate Agent 

  • Determines the housing market
  • Establishes an appropriate asking price 
  • Lists the house on the MLS (Multiple Listing Service) 
  • Aids in processing legal paperwork and transactions 

If you are ready to list your home for sale, take a moment to understand the differences between selling the house on your own, and getting help from a qualified real estate agent. If the market in your area favors sellers you may not have trouble finding a buyer. However, if you decide to use an agent there are many reasons you should. 

man shaking hands with dealer who holding a key in hand from new building

 

3 Reasons To Use a Real Estate Agent 

  • Saves time. 

When you list your home for sale, you need to do more than just slap a “For Sale” sign in your yard. The process could be too much to take on for your own schedule. If you still ask, Do I need a realtor to sell my home? Consider the amount of time you can devote to the task. Then, ask yourself if you need the help of a professional to streamline the process.

  • Less effort. 

Getting people interested in your home takes more than a bold sign, a unique font, and an open house. There are many steps real estate agents take in order to list, sell, and close the sale on a house. You can slash the number of tasks on your to-do list by working with a real estate agent. 

  • Fewer risks & concerns. 

You may be shocked when you realize there are risks involved in real estate. Real estate documents commonly require legal considerations. A qualified agent will know all of the implications, and you will not need to worry about any paperwork associated with the closing.

Legally, you do not need a real estate agent in order to sell a house. If you want to sell your home by yourself, you can. However, there are considerations you need to make in order to make the process successful. Call the office of Jeff Barchi to talk to a qualified real estate agent about your needs today! The process of selling your home could be easier than you think.

June 28, 2019

What Is a Proof of Funds Letter for Real Estate Purchase?

Proof of funds letter is something that a home buyer needs. Regardless of how much money you have, you will need to provide a few documents in order to actually purchase a home. One of these includes proof of funds letter for any type of home buyer — even if they have enough money in cash to cover the purchase. 

Generally, buyers need to get a proof of funds letter in order to make an offer on a home so if you do not have one, you are most likely not prepared for the purchase. 

What Does a Proof of Funds in Real Estate Mean? 

Most home buyers get their proof of funds from a bank, but there are other ways to verify your liquid assets. Open credit lines, money market accounts, and other investments where your money can be withdrawn quickly can all be used in a proof of funds letter. 

If you need to transfer money for your down payment, have the money in one place before you make an offer. If you are using a variety of accounts, consolidate the money to make sure that the home buying process is a smooth one.  

How Can I Get a Proof of Funds Letter? 

A proof of funds letter includes information needed to complete an offer on your new home. 

A proof of funds letter includes:

  • The account holder’s name
  • The current balance of available funds
  • Bank letterhead 
  • Signed by a banking official

In some cases, a recent bank statement from your checking and savings account or other accounts where you keep the money is all you need. In addition to that, you may also include a short letter of your own to create a proof of funds.

Other Proof of Funds Real Estate Documents

In addition to a proof of funds letter, you need to obtain a pre-approval from a mortgage lender. If you plan to purchase a home, the proof of funds letter is a document that shows where you have the deposit money, However, it is not the only real estate document you need. If you do not have enough cash to purchase the house outright, talking to a mortgage lender about the amount of money you need for the deposit can help you know exactly what to bring to the table.  

proof of funds letter for real estate purchase

What if I Do Not Have Proof of Funds?

The request for a proof of funds letter is not always a matter of trust. In fact, if a seller went by the word of every prospective home buyer, they could lose valuable time and money. For this reason and others, the proof of funds letter is requested. 

If you cannot produce it, do not get offended. Instead, use these tips to handle a lack of proof of funds:

  1. Challenge a Trust Issue

If a seller is concerned about your ability to obtain the money, they may not let you move ahead. Challenge their trust and offer them a letter of proof of funds based on a personal, professional, or other type of reference,  and move forward with the process. 

  1. Demonstrate Your Intent

If you are lacking actual proof of funds, you can show your credibility in other ways. Demonstrate your intent to invest with a formal letter, along with a personal biography, and a cover letter if you do not have available funds. 

  1. Get Proof

Liquid assets may not be available, however, in lieu of an official proof of funds statement, you may be able to use this third option. Get proof of your investments directly from an investor, and use it as a proof of funds without liquid accessibility. 

Proof of funds letter for real estate purchases is simple to obtain. However, you need to know that having all of your paperwork ready will make a BIG difference in how smoothly the home buying process goes. Go ahead, and get all of your funds transferred and collected before making an offer. 

If you need any help preparing the paperwork, talk to an experienced real estate professional at the offices of Jeff Barchi. 

May 8, 2019

How Long Does it Take to Close on a House?

Many people eagerly ask, “How long does it take to close on a house?” when their home is listed for sale. However, home buyers also want to know the timeframe of the selling process for properties they are interested in. If you want to get through the process of selling your home or buying a home quickly, there are things you can do to finish in record time.

Cross the finish line of closing on a house for sale by using the tips below to speed up the process. Just be careful to be patient if the process drags on longer than you initially thought. It is normal for unexpected problems to occur, but never forget the importance of enjoying the ride. It may be a winding journey but when you finish the escrow closing, you will see it is worth it to handle the entire process with great care – no matter how long it takes.

How Much Time Does it Take to Close on a House?

On average, it can take up to 50 days to complete the home buying process. For buyers who need to establish a mortgage first, the process may also include a loan and property appraisal. Some people set out with a goal in mind in order to complete the process of home selling without wasting any precious time.

It is important to know that the time it takes to close on a house will vary for every property. You may decide to set a goal with your realtor like “sell the house in 30 days.” However, be advised that flexibility is invaluable regardless of what you have in mind when the process begins.

Once the closing portion of the home selling process is initiated, it can take as little as one week to finalize the deal. Home buyers who do not require a loan and have cash in hand may be able to move in as soon as the home inspection and other contingencies are satisfied.

Business Signing a Contract Buy

Tips to Speed Up a Closing on Your House  

If the closing process on your home seems to take an eternity, don’t worry. There are things you can do to speed up the closing process. Use these 3 tips to ensure you close the deal on time.  

  1. Resolve the Title

If you have any issues with the title, including a lien, get the issue resolved before selling the home. Before you provide the seller a copy of the title, allow time to make copies of the document before the process of home selling begins. If you have any issues during the process it will take more time to close. You can resolve title issues before you start, thus speeding through the home selling process.

  1. Handle Repairs

Home repairs should not be part of the home buyers to-do list. In fact, when you list the property for sale, your home should already be able to pass a home inspection with flying colors. Usually, home sellers make the repairs or allow buyers a tax credit in order to make the repairs and also upgrade outdated styles and fixtures at the same time.  

  1. Talk it Out

When you have questions or concerns about the closing process – just ask! It is important to stay in communication with your realtor, broker, and an attorney, along with the team at the offices of Jeff Barchi. That way, any significant changes or requirements can be met quickly. Without fully understanding the people you are working with, the home selling process can become confusing. Aim to communicate well with all members of your network for the best possible outcome.

A Note on Speeding the Homebuying Process

Other factors that can slow closing include a lack of financing, waiting for approval, appraisal disparities, lack of insurance, and other contingencies. But, you don’t have to let any of that stop you from closing quickly. Keep an eye out for these red flags of a slow sale process and, call the offices of Jeff Barchi to talk to real estate professionals who can help.

April 22, 2019

Phoenix Housing Market Predictions for 2019

Phoenix housing market predictions 2019 are looking good! While previously a crash was looming, a recent weigh-in from real estate experts reveals that in fact, the Phoenix housing market forecast is sunny. In Arizona, the market suggests home prices will even continue to rise throughout the year. With the market still cooling overall, price gains are expected.

Is the Forecast Sunny for the Phoenix Housing Market in 2019?

Phoenix is a city that recently climbed to the top ten list of the best markets for homebuyers. If you are a new homebuyer or are looking to invest in real estate to flip a profit, you are in luck! The 2019 median home value is approximately $240,000 which shows an 8.7% increase from 2018.

Research teams project that the gains will remain over the course of the year however, they are predicted to be small (around 2.4% over the next 12 months). Only time can tell how supply and demand will affect the gains in home prices, and many analysts suggest it is more likely to be somewhere between 3% and 5% for 2019.

Is 2019 the Year for Homebuyers in Phoenix?

The Phoenix housing market is always fluctuating, but 2019 is still fresh. The year could include some of these reasons why it’s a good year for homebuyers in Phoenix.

  • Historically, mortgage rates are still some of the lowest ever seen and remain hovering. In mid-January, the average rate for a 30-year fixed mortgage was 4.45%. However, rates are not expected to stay this low all year.
  • The Phoenix housing market inventory is growing, so there are more properties than ever. This makes it an ideal time to enter the real estate market for new homebuyers and investors alike.
  • Loan limitations have been increasing in the Phoenix housing market for some time, however, Federal housing officials are continuing to notice increased limits for both, VA and FHA loans.
  • Record low unemployment rates promote a stable US economy. With rising job opportunities, the Phoenix housing market also has improved over the years, allowing homebuyers to see more purchasing confidence.

Other Factors Affecting the Phoenix Housing Market

keys to new home

There has been a steady upward trend in the Phoenix housing market after 2012. With a drop in 2009, the recovery simply continued after the housing collapsed and then, from 2012 on, Phoenix real estate has only continued to rise in median home value.

Here are other factors that affect the Phoenix housing market so you can make an accurate investment in real estate for 2019.

  • Increase in Supply

In Spring 2018, the Phoenix housing market dropped, reaching a dangerous low of only a 2-month supply of homes for sale. The levels recently improved, however, a “balanced” real estate market offers between 5 – 6 months of homes for sale.

Conditions have recently improved, but, the Phoenix real estate market only offers about 3.5-months supply of homes. If 2019 continues to move in this direction, 2019 inventory growth could be a deciding factor for Phoenix homebuyers.

  • More Homebuyers

The city of Phoenix is the 11th largest metropolitan area in the country by population. With about 4.7 million residents, it continues to grow in population, employment, and housing opportunities. Population growth is just one factor, and according to the Bureau of Labor Statistics, the unemployment rate for the Phoenix metropolitan area was recorded down to 3.9% at the end of 2018.

But, younger residents are finding places to work, and thus, boosting the overall housing marketplace. Attracting older residents also increases homebuyers in the Phoenix housing market, stabilizing the economy over other areas in the country.

The general consensus among economists and real estate analysts is favorable for the 2019 Phoenix housing market. While it is still a seller’s market, homebuyers in Phoenix can look forward to taking advantage of an increase in homes for sale and a balanced forecast. Call the office of Jeff Barchi to talk to real estate professionals who can help you make the homebuying process enjoyable and lucrative in 2019.

March 22, 2019

How to Find Distressed Real Estate Properties?

Distressed real estate flipping is one of the best ways to make money in a short amount of time. Reliable, and considered to be a somewhat affordable investment opportunity for regular people, this DIY real estate project isn’t always easy. The process of how to find distressed real estate properties and turning them into cash can be done, but you need to know the five-step process.

If you want to know how to find distressed properties, it is important to follow this simple five-step process. Then, call the office of Jeff Barchi to discuss other ways to locate privately listed properties.

How To Find Distressed Properties (in 5 steps!)

One of the hardest parts about flipping houses is finding the right properties. Use this list to learn how to find distressed real estate properties with ease.

  1. Create a Budget

One of the worst mistakes investors make when they try DIY property flipping is understating the total cost. In order to avoid potential pitfalls, create a budget that includes wiggle room for unexpected problems. When creating your budget, factor in your current credit score, the long-term growth potential of investments along with expenses associated with property acquisition.

  1. Online Search

Perform an internet search that includes public MLS listings. Also known as the Multiple Listing Service, an MLS database provides information on houses for sale. This search can also be customized to include advanced options, so tell your real estate agent about any specific terms to include, such as bank-owned, REO, government-owned, delinquent mortgage, foreclosure, and others.

  1. Location

The marketplace contains a lot of data that you can use to evaluate the sale price after you flip a distressed property. The location is a #1 research priority when attempting to know which renovations should be done first. You may find that curb appeal is a better investment choice than updating interior aspects like kitchen backdrops or bathroom tile. Look for properties based on neighborhood zones, address, and highest sale price in the area.

  1. Spend Time

It is never a waste of time to talk to other people in the real estate industry. This may include agents, brokers, community members, and more. You can learn from everyone you meet within the real estate community, and ideally, you will be able to build a supportive network that can sharpen your negotiating skills as well as flipping strategies.

NOTE: Never underestimate the value of a large network including neighbors, friends, advertisers, contractors, and other workers.   

Talking with real estate agent

 

  1. Make an Offer

Once you have done all of the leg work and spoken to a qualified professional about your goals, you can make an offer. Each property that you decide to purchase for a low price, make an investment, and flip for a profit, may also have competition.

So, make sure you know what the limits of your budget are and always set money aside to use during the negotiation process. Generally, market experts recommend at least 20% padding within your investment budget.

Finding Motivated Sellers of Distressed Properties

If you are able to locate properties publicly on the MLS, you may be able to find investment opportunities alone. However, you may not realize how many other distressed properties are available offline. Ask about properties with delinquent taxes and mortgage payments along with homes sold out of probate and government-owned property.

Remember that flipping houses for profit is not always a win for investors. Many times, a property can shock you with the cost of unexpected problems like plumbing leaks, electrical explosions, crumbling foundation, and many other things. Talking to a team member from the office of Jeff Barchi can help you avoid the most common mistakes investors make. Follow this process of how to find distressed real estate properties and turn an impressive profit.

March 12, 2019

5 Signs of a Bad Real Estate Agent

Signs of a bad realtor are not always obvious. In fact, you might be shocked to think about how many red flags your realtor is showing you. It could even be happening right under your nose while you are missing it. Look for these 5 signs of a bad real estate agent.

There could be all types of other signals that the real estate agent you choose is letting you down, so don’t ignore them. Pay attention to these initial red flags pointing out that you need a new real estate agent, and if you have a gut feeling, maybe it’s time to kick your current agent to the curb.

Five Signs of Unsuitable Real Estate Agent

  1. No Web Presence

Any successful real estate agent has an internet presence. Today, most people have a smartphone and are able to browse MLS listings anywhere they go. For that reason, signs of a bad realtor include a lack of web presence, a low-quality website, no photographs or low-quality images, and unavailable MLS listings.

Real estate photography is also a clear indicator of a low- quality website. If you don’t see professional photographs on the real estate agent’s website, you need to find someone else, especially if they are taken with a cell phone.

  1. Self-Involved

When you meet with your real estate agent in person as a new home buyer, or even a seasoned real estate investor, you may notice that your agent is self-involved. While selling property is somewhat glamorous, the focus of the process should always be on you: the buyer.

There is plenty of paperwork for the real estate agent to complete, however, if it seems like you are waiting for someone who seems busy, arrogant, or unable to listen, it is a red flag. Other signs showing you need to look for a new agent include a hidden agenda, wondering if they are telling the truth, feeling coerced, noticing the agent is overly eager, and other bad vibes.

  1. Inspection Attendance

A good real estate agent will be there when you have a home inspection. If possible, they will also be available any other time you need them, whether it is over the phone, in person, or while they are in the office.

If your agent is not able to be there during home inspections, it could be something to worry about. An inspector can give you a report of what needs to be repaired or updated before a property sale. If your real estate agent is unavailable in person for a home inspection, it is one of the signs of dealing with a bad real estate agent.

Inspection Attendance

  1. Funny Money

If you notice any type of under-the-table payments — it is a sign that you need to head for the door. Do not stay with a real estate agent who does not offer you complete transparency. It is too late to discover that the real estate agent is paying other agents commission, is taking cash for listings, hiding listings, or doing other underhanded things, after signing the contract.

  1. It Feels Like Work

Let’s be honest … please. The homebuying process is supposed to be an enjoyable one. There is a lot of preparation and hard work that goes with selling a property, and any real estate agent who makes you feel like the process is too tiring and is transferring his/her negative energy, needs to go. If you are working with a true professional, they will also make you feel comfortable as if their job is actually just a lifestyle that they love to share with you.

If you notice that the person you are currently working with shows any of these five signs of a bad real estate agent – leave them. Ditch the office you are working with and call the office of Jeff Barchi. You can get rid of a low-quality agent and start working with someone who makes you feel comfortable and cared for. Reach out to us, today!

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