Delving into real estate is far from passive work and if you are just starting out and thinking about buying your first home or first investment property, consider hiring a real estate broker to make your life easier. A real estate broker acts as an advocate on your behalf to score you a better deal on the house and area of choice. Why, you might ask? Simply because he/she has the right expertise in the real estate business and can cut your time in half in finding the property of your dreams. Now, it is no secret there is no such thing as a free lunch, but hiring a real estate broker is definitely worth the money you put it.
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What Is a Real Estate Broker?
In real estate terms, a broker is a licensed professional who has taken all required real estate classes, passed the real estate licensing exam, and stepped it up a notch by furthering his/her qualification by getting his/her real estate broker license. Brokers’ level of knowledge and expertise qualifies them to work independently. With this advanced degree, brokers can work on their on and/or have real estate agents work for them. In real estate, there is no uniformity across the States and brokers are obliged to get their license in the state in which they intend to work.
Duties of a Real Estate Broker
1. Sell real estate owned by others
2. Be acquainted with real estate procedures and contract terms
3. Compare a real estate property to similar properties recently sold to determine competitive market price
4. Act as an intermediary between buyers and sellers and be responsible for closing a good deal on the real estate property in question
5. Be responsible for regularly listing properties for sale, i.e., Multiple Listing Service (MLS)
6. Stay updated with economic and housing market news
7. Acquire and maintain knowledge of real estate laws, income tax regulations, and available financing options for different types of mortgages, etc.
8. Monitor the work of loan officers, real estate attorneys, and others to ensure due diligence
9. Arrange financing means for property purchases
10. Appraise and assess property values
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The Advantages of Hiring a Real Estate Broker
1. Local Expertise
Hiring a real estate broker can add valuable knowledge and insight in finding great investment properties reaping the highest return on investment. Since real estate brokers are experts on what they do, they easily find positive cash flow properties in an efficient time manner and at a competitive market price. With the right communication and trust, real estate investors and brokers can reap the benefits of building a long term relationship and a winning team. Moreover, brokers are better suited to assess the type of investment property for each investor, taking into account the financial resources and the market conditions. Whether you are thinking about buying a condo or a single family home, a real estate broker is better qualified to direct you to the right investment opportunities for high returns in the long term. In a nutshell, an experienced real estate broker knows which investment will offer the highest value and ROI for investors.
2. Access to Homes and Market Conditions
A real estate broker is better equipped to find investors the right investment property at the right time in a given location. As previously mentioned, real estate agents and brokers have exclusive access to MLS for all real estate listings. If you are a novice investor and/or are just kick starting your real estate career, it is highly recommended you get professional advice to help you make the best investment decisions to grow your business and achieve the highest return on investment. Savvy real estate brokers know the best opportunities for real estate investing and which real estate markets to invest in given the time and market conditions. Brokers and other real estate professionals use Mashvisor to decipher the best investment opportunities existing in the country right now. They also love the rental property calculator and real estate predictive analytics to find lucrative traditional and Airbnb properties anywhere in a matter of minutes.
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3. Competitive Pricing
Real estate agents and brokers have a better sense of what a home is truly worth and are better equipped to get a competitive price on the house. They can streamline the process in finding you what you are looking for in a short period of time, while at the same time factoring in the current market conditions. It is highly likely you get a better deal on the house with a professional by your side as opposed to doing it all on your own.
4. Networking Power
A savvy real estate broker has honed down on the art of negotiation and communication skills. With a professional on your side, you can be rest assured you will be reaping the highest value on any investment property, whether you are selling your home or buying a new rental property. A real estate broker acts as a mediator and an advocate to score you the best deals for your real estate investing business.
With any real estate transaction, there is a volume of legal and paperwork involved to solidify the agreement. Purchase agreements are not a two-page contract; on the contrary, they involve lots of paperwork and contract terms that a professional real estate broker is better at handling. If this is your first real estate transaction, hire a real estate professional to ensure the contract and other legal matters are in check.
Selling and buying investment properties without a real estate broker or a real estate agent is a challenge if you are not immersed in real estate investing yet. Make sure you find a professional who will act in your best interest and bring you profitable investment properties to grow your real estate business.