How To Get Buyers To Pay More

get buyers to pay more

Here are three easy ways to get buyers to pay more for your property.

These tips work in both a hot real estate market and cold real estate market, and for both commercial real estate and residential properties.

First Impressions Count

Experienced negotiators understand that first impressions are lasting impressions.  Once people have made a subliminal decision, it’s very difficult to get them to change their minds.

That’s why making a positive first impression is key to get buyers to pay more for what you’re selling.

In real estate that’s also known as curb appeal.  Well kept landscaping, no litter, and if you’re selling commercial real estate no vagrants hanging around the property.

You’re going for what’s known as the ‘Wow Factor’ when prospective buyers pull up the curb.

No Deferred Maintenance

Deferred maintenance items are things that need to be fixed or repaired but haven’t been.

Items like peeling paint, a loose shingle, or a small graffiti mark on the fence can be innocent enough.

But they can also make a buyer wonder why they haven’t been taken care of – especially if you’re selling your property.  Even worse, deferred maintenance that a buyer can see will also make the buyer think about things that can’t be seen.

Take a loose roof shingle for example.

A loose shingle means that water can get into the inside of the roof, which means dampness and potential mold issues.  Which in turn means potential health issues for the occupant and unknown legal issues for the new property owner.

Get Buyers To Pay More With A Good Story

Another key to getting buyers to pay more is by having a good story to tell.

As a seller you’ll need to be honest with yourself about the problems with your property.  Look at your real estate from a potential buyer’s point of view.

This doesn’t mean you need to apologize.  But it does mean you should foresee as many potential objections or questions as possible, and know ahead of time what your answers are going to be.

A smooth, practiced response goes a long way to convincing a potential buyer that they’re making the right decision to purchase the real estate that you’re selling.

Should You Sell Real Estate Full Time?

sell real estate full time

Many people consider giving up their day job to sell real estate full time.

Getting that first or second sale isn’t that difficult.  But what is difficult is working in the real estate business full time.

Here are a few things that will help you decide if it’s a good idea for you to sell real estate full time.

Have A Real Estate Business Plan

Putting together a realistic real estate business plan will help you decide whether or not selling real estate full time is right for you.

When putting your business plan together for your new real estate career, remember that it’s always better to be safe than sorry.

Be overly pessimistic about your projected income and expenses for the first several years.  Many business planning experts suggest that after you have what you think is a conservative business plan you should cut the revenues in half and double the expenses!

If You Sell Real Estate Full Time, Treat It Like A Business

Realize that business – just like nature – does not move in a straight line.

One very successful quarter or year doesn’t mean that the trend is your friend.  Smart real estate entrepreneurs know that there are always peaks & valleys . . . and some valleys can be deep for a very long time.

Consider Having A Real Estate Business Partner

Some people like having a business partner while others prefer to go it alone.  Having a partner or a mentor is one way to achieve a good work/life balance in real estate.

Advantages to having a business partner are the sharing of risk and having access to extra start-up capital.

If you have a real estate business partner, just be sure to clearly define the responsibilities of each person involved.  This will help to avoid conflict down the line.

How To Make Your Real Estate Business Plan Better

real estate business plan

Having a real estate business plan – or a property management business plan  is crucial if you want to succeed in the business of real estate.

That’s because real estate is about much more than just buying & selling, leasing & managing.

Here are the top two ways to make your real estate business plan better.

Rainmakers Should Make Rain Not Train

Some real estate brokers are rainmakers.  They’re the ones who bring in the majority of the business and are great in dealing with clients.

If that’s the case, bring in a partner or key employee to recruit, train and manage the newly-hired real estate agents.

New agents will be attracted by the broker-rainmaker’s outstanding success stories.  But new real estate agents usually lack experience, skill or motivation.

They won’t be able to perform  and produce without having a lot of hands-on guidance – at least to begin with.  The broker-rainmaker won’t be able to give new agents the attention they deserve because they’re out there making rain and bringing in new business.

A Great Real Estate Business Plan Is Niche Specific

Focusing on a specific asset class for your real estate business is much easier than trying to be all things to all people.

A real estate asset class isn’t just commercial or residential real estate.  A asset class is a specific category – or niche – within those sectors.

If you have a residential real estate brokerage, concentrating on specific zip codes or neighborhoods is one example of a niche.  Another is focusing on a certain product type such as small multifamily or fix-n-flips.

Commercial real estate brokers could identify high-tech industrial property, medical office buildings, or STEM tenants as their niche.  Or they could concentrate on finding replacement property for 1031 tax deferred exchanges.

Five Tips For New Real Estate Agents

tips for new real estate agents

Whether you work in residential or commercial real estate, it an be tough getting started in the business.  Here are five great tips for new real estate agents just starting out.

Proven Tips For New Real Estate Agents

One of the most important tips for new real estate agents is to start part-time.

That doesn’t mean putting less effort into your new real estate career.  What it does mean is to make sure you have enough income coming in while you’re ramping up your new business.

The last thing you want to do is to run out of money just before the big dollar real estate sales commissions start flowing in.

Focus On One Area

The second most important tip for new real estate agents is to focus on a single area to work in.

This could mean a specific neighborhood, zip code, or even a single building in your city.  It just depends on what real estate market you are working in.

Focus On One Product Type

In real estate there are different product types or asset classes.  Single family, multi family, free standing commercial, and multi tenant retail buildings are a few examples.

The third most important tip for a new real estate agent just starting out is to focus on a single type of real estate.  Then, become an expert in that asset class for your chosen marketing area.

Do What Fits Your Personality

Most brand new agents fresh out of real estate school begin by selling resale homes.  But that’s not always the smartest choice.

Understandably new real estate agents make this choice because there is more inventory in the resale market than in any other segment.

But selling homes may not be the best fit for your personality.  Other areas of real estate include new home construction, land, commercial, and property management.

Real Estate Is A Business

Just as investing in real estate is a business, so is deciding to work as a real estate agent.

It’s important to have a business plan, and to track all of your income and expenses.  Successful real estate agents also know that it is critical to always underestimate the cash coming in, and to always have money in the bank.

After that, marketing your new real estate business is a key factor to success.

Social media sites such as LinkedIn, and writing and publishing real estate books are two of the many ways new agents can market themselves in the competitive real estate industry.