Introduction To Real Estate

real estate introduction

Imagine this scenario. On a sunny afternoon in Bel Air, an energetic crowd gathers on the vast grounds of a high-end luxury estate.  A loud and eager banter between an auctioneer, a group of bidders and bidder’s assistants fill the air.

For several minutes the auctioneer asks for the next highest bid, and the bidders respond enthusiastically. All of a sudden, the bidders became silent. The most senior bidder holds his breath in anticipation of winning the auction. The auctioneer calls for one more bid but gets no response. In a loud and clear voice, he hollers to the audience, “fair warning, last chance!”.  The auctioneer pauses for a moment then exclaims, “this luxury estate has just been sold to the highest bidder!”.

In less than 10 minutes,  another multimillion-dollar estate has changed hands. Successful real estate auctions like the one described above are happening all over North America and the Caribbean islands.

houses for sale in calabasas auctions have been steadily on the rise. Growing inventories and fading buyer confidence have partly driven Their increasing popularity.

Properties that could usually sell in weeks using traditional methods are now languishing on the market. Unable to attract buyers even as sellers have significantly lowered their prices. Many people have been saying that the real estate boom is over, but savvy buyers and sellers have been raking in the profits from real estate auctions.

Real estate auctions work in up or down markets, without regards to trends or market cycles. Real estate auctions provide an open and transparent process for buyers and sellers.

Adequately conducted real estate auctions attract ready and willing buyers and motivate them to act immediately. The auction method removes the “wait and see” attitude which only serve to depress real estate values further. Buyers are always concerned about overpaying. With auctions, they can see what others are willing to pay.

When market demand is high, and inventories are low, real estate auctions can deliver selling prices well above what a seller would get during private negotiations. In a hot seller’s market, many property owners use traditional real estate methods.

They negotiate with one buyer at a time. Leaving thousands of dollars of equity on the table. During up markets, real estate auctions are the best way to establish the top market price.

Evaluating Your Real Estate for Auction

Not every property or seller is a good candidate for auctions. First of all, sellers must be ready to sell now for the current market value. A real estate auction will not fix problems caused by a decrease in the market value of your property. If you owe more than what a willing buyer would pay for your property, be prepared to come to closing with your checkbook.

Properties that do well in real estate auctions have a high uniqueness factor. Ask yourself, what makes my feature different from other properties on the market? Maybe, you own a resort property or a high-end luxury home. Commercial properties and land do very well at auctions for they thrive on uniqueness.

If your property is just like everyone else, the best thing you can do is offer the most competitive price. More importantly, sellers must be reasonable about setting a minimum bid.

A seller must look at the lowest and most current comps. Price their property slightly more economical to generate the interest and urgency necessary for a successful real estate auction.

Once the auction begins and qualified bidders start competing against each other, you can sit back and enjoy as a bidding war ensues.

Locate a Qualified Real Estate Auctioneer

Start by checking with the National Auctioneers Association. The best real estate auctioneers belong to this organization. These real estate auctioneers are well trained and adhere to a standard and observe a strict code of ethics.

Many realtors attend the annual International Auctioneers Conference where the latest techniques and innovations in the real estate auction industry are presented. Find out if the company you’re considering is a full-time real estate auction firm.

Many real estate agents are getting auction licenses yet have no experience with the auction method of marketing. Conducting a successful real estate auction is nothing like a traditional real estate deal. Decide to go with a real estate auction pro.

Profitable Investments in Real Estate

The real estate market is one where a profitable investment is always to be found; somewhere amidst the foreclosure lists or lying dormant on a real estate agent’s desk. This guide aims to give you the background necessary to allow you to find profitable investment real estate.

The first key to profiting from real estate is to find a highly motivated and urgent seller. The idea is that to negotiate a lower price on a piece of real estate requires the seller to want to sell their house quickly or desperately. If you are talking to an unmotivated seller on the telephone then it will soon be very clear that you are not going to get a discounted price on this real estate. If the seller is unmotivated then you will be unable to negotiate a lucrative deal.

One counterintuitive aspect of real estate investment is that you normally make a profit when you buy real estate and not when you sell it. This means that, while there is often little you can do to increase the value of real estate; sellers are human and are often willing to negotiate their price. Saving money while buying real estate is the key to selling homes for a profit in the real estate market.

With that in mind, your first step is to develop a list of real estate properties that you are considering investing in. You are going to need to view around ten pieces of real estate before you careful choose which one will be your chosen investment.

One useful technique for sourcing profitable real estate properties is to interview real estate agents; the people that profit from real estate on a daily basis. Interviewing a real estate agent and finding out if they own any investment real estate they would be very useful. Remember, they will be more than willing to be interviewed because you are offering them your regular custom.

Real estate agents understand the market “inside out” and can be an excellent source of investment properties with low prices because others have not seen or understood the potential of them. After you create a good relationship with some local real estate agents you will typically receive a phone call every time they notice a good property reach their desk. Remember, they receive a lot in return for this relationship because the more real estate that they sell the more commission that they earn.

Another very useful method for sourcing great real estate deals is the use of foreclosure lists. All you have to do is to search Google for “foreclosure lists” in your local area. Typically, you will have to pay a subscription fee to access this but it is definitely worth the cost.

In order to profit from foreclosure lists easily and quickly, follow these steps:

-Firstly, buy the daily foreclosure list for your area and flip through the pages.

-Select the only the real estate that has been on the list for less than thirty days.

-Highlight the real estate that is within your budget.

-Look particularly for real estate that is located in nice surroundings or desirable neighbourhoods and only select properties that are within fifty miles from where you live.

-Using the internet, access the local tax records and obtain the tax value of this particular piece of real estate.

-Also, search for the real estate in question on meritrealty.org. This website is also designed to give clues as to the value of real estate.

Once you have picked a few potential properties then ask your real estate agent to take you for a viewing. If you are happy with this real estate then hire a real estate property surveyor to make sure that the house is structurally sound. This step is necessary to ensure the value of your investment. After this point you will be in a position to make an offer on this real estate and to attempt to “buy low” in order to “sell high”.