5 Things Real Estate Agents Don’t Want You to Know

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Selling real estate is one of the most expensive financial decisions most people ever make. Due to the high monetary stakes, many people look for a real estate agent to guide them through the process, but before diving in and calling just any agent, there are some things you should be aware of. Here are 5 things real estate agents don’t want you to know. 

Agents don’t want you to know: The MLS has lost its power

One of the biggest advantages to selling a property with a real estate agent is their access to the Multiple Listing Service (MLS). Before the days of the internet, the local MLS was the only location where all for sale properties were posted and the information was only available to licensed real estate agents. While the MLS system is still used today, it has been largely democratized by large listing portals like Zillow or Realtor.com. In fact, these portals tend to have direct relationships with MLS organizations meaning that the portals get property information almost as quickly as real estate agents can. If you list your property with a real estate agent, you can request that they add your property to these portals for you however if you choose to sell on your own, listing on these portals is free. 

Agents don’t want to you know: Many properties sell themselves

The real estate industry is HOT right now. Even with the financial and societal chaos caused by COVID-19, cities across the US are reporting a sellers market with a lot of competition among buyers. Many real estate agents are hardworking professionals who will do the necessary work to properly position your property for success. They take good photos, write compelling descriptions, and do additional marketing to get your property as many offers as possible, but in this market many properties will sell quickly without that professional touch. 

Agents don’t want you to know: Not every agent offers the same service

Agents don’t all offer the same service when listing a property. Some real estate agents offer professional photography and drone images as part of their basic service. Others offer staging or guidance on how to improve the curb appeal of a property. Yet others don’t offer any of these services or require additional payment or fees to cover these charges. When looking for a real estate agent to sell your property, make sure you ask exactly what services they will provide. 

Agents don’t want you to know: Beware of dual agency

No matter if you’re buying or selling real estate, you want to work with someone who has your best interests in mind. As a buyer it may seem obvious to call the phone number on the real estate listing or sign, but that’s not always the best idea. Listing agents have what’s called fiduciary duty to the sellers meaning that even if an agent is working with both the buyer and the seller in a real estate sale, all choices they make must be for the best interest of the seller. As a seller, this might seem like a good thing. You have the “in” with the agent on the other side of a deal, but this can also work against sellers. While an ethical agent wouldn’t do this, there are cases where an agent encourages a seller to accept an offer from that agent’s buyer client — even if it might not be the highest or best offer. 

Agents don’t want you to know: You can negotiate rates

Using an agent to purchase real estate costs nothing, but sellers can expect to pay an average of 6% of the sale price of the home in commission to their real estate agent. When a property is sold, a commission is paid to the listing agent (the agent who represents the property). The listing agent then pays the agent who represented the buyer as a “thank you” of sorts for bringing a buyer to the property. As a seller, you are able to negotiate the percentage of your sale price that you are willing to pay. 

Looking for an easier way to get a discount when selling real estate? While some agents and real estate brokerages offer discounted rates for discounted service, RealtyHive has created a program that negotiates with agents on your behalf to get you a discounted rate with full service. This program is available for any property almost anywhere in the US and helps sellers save thousands of dollars in real estate commissions with absolutely no cost to them. Interested in buying? Contact RealtyHive to connect with an agent who will save you money when buying your next property!

Should You Get Your Broker License?

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It’s the question that’s crossed every real estate agent’s mind at least once. Whether you’re about ready to make the jump and get your broker license or are still skeptical, we’ve weighed out the pros and cons for you. Find out if becoming a real estate broker is worth it.

Broker License Pros

You can work for yourself.

Who doesn’t want 100% of their commission? Working as an agent broker means more autonomy and not having to split your earnings, and is usually the biggest draw for agents to get their license. Not to mention, owning the listings is a pretty sweet incentive as well.

When you’re working for yourself, you can take that direction in so many different ways. You could use your license to oversee a team of agents and earn commission off their sales. You can function independently, or you could become an associate broker. Associate brokers can often leverage a higher commission and still work directly with clients.

Becoming a broker opens more career doors.

Real estate agents are pretty limited in how they can grow their career. As mentioned, becoming a broker means you can end up in a managerial or associate role. Another option is becoming a designated or principal broker, and from there you can become a broker-owner (where you own the brokerage).

Another role that’s available for brokers is property management. Property management companies are required to have a licensed broker on staff. You could work for a company or even start your own (and not have to hire a broker).

For any agent who’s feeling a bit stagnant and wants to step into a new role, getting a broker license is a solid next step. After all, you can still work with buyers and sellers, but becoming a broker takes your career into a new direction.

You could increase your salary.

Agents already know that brokers can make more money — but how much more? 

The answer varies. Unsurprisingly, states with the most expensive house prices (New York, Massachusetts, Washington, etc.) have the highest annual salaries for agents. But the median agent salary is about $49,000, according to Investopedia. By contrast, the median broker income is around $54,600.

According to ZipRecruiter, full-time real estate agents across the country make between $66,000 and $91,000 per year. Real estate brokers roughly average between $80,000 and $110,000 per year. 

While it’s tricky to narrow down exact earnings (especially in a commission-based system), one thing is clear. No matter where you are in the US, your broker license will almost certainly increase your salary.

Broker License Cons

It requires more work to get…

Becoming a real estate broker varies a lot by state. Here are some of the basic things you can expect to encounter:

  • Having some form of real estate agent experience
  • Taking a broker class
  • Passing your broker exam

As far as the variances go from state the state, it’s all over the map. In Massachusetts you need 40 hours of coursework and need 3 years of agent experience. In California, you don’t need actual agent experience as long as you graduated from college with a major or minor in real estate. In Texas, you need 900 hours of coursework!

Before even starting the journey to getting your broker license, you’ll need to spend some time figuring out your state’s requirements.

…and is typically more work overall.

Depending on the role you embark upon with your broker license, there’s a good chance you’ll end up taking on more work. More specifically, a lot of this work is administrative — organizing appointments, open houses, reviewing and writing contracts, building client databases, handling agent and client issues, etc.

Many real estate agents love the thrill of a sale and interacting with clients, and are quickly bored by administrative work. If you’re sincerely happy with helping people buy or sell homes, don’t feel like you have to become a broker — especially if you don’t think you’ll like the work involved.

Greater responsibility comes with greater risk.

As an agent, the brokerage you work for is legally and financially responsible for your transactions. When you become an agent broker, this responsibility transfers to you.

Certain broker roles carry more risk than others. For example, if you plan on managing a team of agents, know that they are your financial and legal responsibility — if something goes down, you could be held accountable.

Find an agent broker program that works for you.

If you decide to take on your broker license, you’ll want to align yourself with the best resources available. RealtyHive has a co-broker program that strives to provide just that. You can shorten the selling process, experience more calls to the listing agent, access better marketing and we hand potential buyers for your listings over to you for free. Learn about becoming a co-broker through RealtyHive, and best of luck with your license!

Is it Worth it to Buy a House With Lots of Land?

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Living on lots of land out of the country tends to make people either sigh with relief or cringe at the thought. While the city is great for some, having lots of open space, living away from the city and feeling closer to nature are solid reasons why many aspire to buy a house with lots of land.

But as we’ve checked with home security systems, upgrading your backyard and finishing a basement, now we’re here to ask the same question. Is buying a house with lots of land worth it?

Two Land-Buying Options

If you’re looking for lots of land, you’ve got two options: a house with lots of land or buying vacant land.

Some people buy vacant land for investment purposes, agriculture or to build their own house on the property. Buying vacant land for investment means you won’t have much to do with it — a definite pro. The same goes for land that you buy just to hold onto, such as for hunting purposes.

Buying a house with lots of land could mean a lot more work, depending on the condition the land is currently in and what your intentions are. Some homeowners leave the land as natural as possible, which could reduce the amount of work. 

For the sake of this article, we’ll focus on some considerations for buying a house with lots of land, but check out our vacant land listings if that’s the route you’re looking into! 

Buying a House With Lots of Land: Things to Consider

Fencing

There are a number of reasons why you might want to fence your property:

  • Keeping out trespassers
  • Creating a space for pets to roam
  • Protection from animals (deer, bears, coyotes, etc.)

If you think you’ll face any of those above issues, putting up fencing is a good decision. Keep in mind, the average cost to put up a fence is between $10 and $30 per linear foot. An average yard costs more than $2,700 on average. You’ll pay several thousand at least to fence a larger property.

The property you’re looking at might already have fencing, but if it doesn’t and you want to install it, make sure you budget in those costs.

Yard Upkeep

The more grass, the more work. Mowing, watering, fertilizing — these take a ton of time if you’re planning on doing it yourself and will cost several thousand a year if you pay someone. This isn’t counting the materials; you’ll almost certainly need to buy a riding lawn mower if you don’t already have one.

That being said, there’s a growing trend in moving away from yards. If it makes sense to leave things natural, that’s beneficial for the environment and lessens the amount of upkeep (but doesn’t eliminate). For example, you might not have a ton to worry about if you have a forest on your property, but you might want to lay some rocks as a barrier for ticks and other critters to come near your home.

Speaking of critters…

Animals

The more remote your property, the higher chance you’ll have some run-ins with animals from time to time. This is a huge draw for lots of homeowners, but there are plenty of cons that deserve consideration.

  • Insects: Properties near water can experience lots more flies and mosquitoes.
  • Deer: Adorable 95% of the time, annoying when they eat your garden.
  • Bears: Depending on where you live, you might need bear-proof trash bins and/or fencing unless you want to deal with them firsthand (you don’t).
  • Coyotes/wolves: Could go after smaller animals or prey on larger mammals, like sheep or cows.
  • Raptors: Birds of prey (eagles, hawks) will also pick off smaller animals.

Again, it might seem fun to get an up-close view to wildlife, but animals are wild and unpredictable. Homeowners have absolutely lost dogs or other pets to wild animals. If that’s not worth the risk, then you’ll have to rethink your space (or whether it’s worth it at all).

Functionality

Does the property you’re looking at have wetlands? Were the previous owners farmers? Any time you’re looking to buy a house with lots of land you need to think about the functionality of that space, as well as if it fits into your needs. 

If you want a grassy knoll for your kids to roam, a property with wetlands isn’t the answer. If you don’t want to deal with a farm, you probably won’t want to buy a working farm. Find a property that meets your goals instead of forcing a property to adapt — it might not work out the way you want if you go for the latter.

Tax Incentives

You can sometimes bypass property taxes by taking part in a conservation program. Some states have forestry or wetlands protection programs that incentivize land protection by offering lower tax rates. If you thought this list was only negative considerations, count this one as a win. There will still be work involved, but you get front-row access to beautiful nature and get to feel good about keeping it intact.

Freedom

Most properties sitting on 5+ acres aren’t part of an HOA. There’s a lot of freedom that can come from owning lots of land. You can build your own house on it. You can create a gorgeous vacation rental or Airbnb, or turn it into a blissfully remote venue, or, heck, even create the massive garden you’ve always dreamed of. 

Sometimes buying land offers opportunities that a traditional house and yard do not.

The Verdict

For those who want (and are able) to take on the responsibility and find it well worth the peace and tranquility, buying a house with lots of land is a good call. Those who love the idea but not the work will need to financially prepare for paying others for maintenance and upkeep, or reconsidering altogether.

Make no mistake, buying lots of land comes with lots of work. But that doesn’t mean it’s not worth it. Look through our homes for sale to find the spacious property of your dreams.

Real Estate Due Diligence

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On some deep, deep level, do you miss having homework as a kid? Didn’t you kind of love the finite nature of completing worksheets or readings, learning outside of school and getting good grades? No? Just this nerd? Erm, OK… moving on.

Doing your due diligence in real estate is basically doing your homework. You’ve got to study before the big test (or in this case, the big investment). Especially when you’re buying a foreclosure or from a private seller, there’s a lot of homework to take on to make sure your purchase is a good one.

Why is it important to do your due diligence in real estate?

Buying a house is the biggest purchase that most people make in their lifetime. For as much as you might research cars before you test drive, you’ll want to do that tenfold when it comes to buying a property.

While a real estate agent can alleviate some of the responsibilities of due diligence, it’s still crucial that you have this knowledge firsthand. Otherwise it’s like taking a test and only using a classmate’s notes without any additional studying on your end — could pan out, but not worth the risk.

Real Estate Due Diligence Checklist:

Tax History

Every state has property taxes that homeowners need to pay. If the house you’re looking to buy has unpaid property taxes, those old bills become your responsibility when you buy the house.

Luckily, it’s super easy to research property tax records:

How to Research Property Tax Records

Get the address of the property you’re looking at.

Find out by driving to the property (without trespassing) or looking online through a real estate database.

Figure out what county it’s in.

Go to the county website once you know.

Find the tax assessor’s office through the site.

Search for “property listings,” “property information” or “property database.”

Type the address into the database.

If you don’t have the exact address, the street name might work.

If the county doesn’t have online records, go to the tax assessor’s office in person with the address of the property and request the tax records in person.

Liens

Most homeowners have a voluntary lien on their property (a mortgage is most common). Some homeowners, however, have involuntary liens in which they haven’t paid property taxes or a home improvement bill.

No matter what, it’s important to find out if the property you’re looking at has a lien on it — if so, lenders won’t give you a mortgage until the property has a clear title.

Finding out about liens is very similar to finding whether there are unpaid property taxes. You have three options:

  1. Get the name of the property owner or address and search through an online county, clerk, or assessor database.
  2. Go to the county recorder, clerk, or assessor’s office (call ahead, especially in social distancing times).
  3. Work with a title representative from a title company.

Work Orders & Zoning

Sometimes the city might have a report of an issue or code violation that needs fixing, such as rickety steps or broken sidewalk. This is called a work order. If the homeowner doesn’t fix it and you buy the property without taking care of the work order, it becomes your responsibility.

When doing your due diligence, you also need to look out for any properties with zoning issues. Especially if you’re trying to buy a property that’s sat vacant for a long time, you could be at risk for purchasing a non-conforming property. Either way, check with zoning laws in the city where you’re looking to buy.

Environmental Factors

There are a couple things to be on the lookout for:

Natural disasters: Take precaution with houses on fault lines, cliffs, near places affected by hurricanes or in flood zones.

County/city/state lines: Things can become complicated when a property borders two places, especially if you’ll eventually need permits for renovation or building.

Flora and fauna: In California, it’s illegal to cut down a Joshua tree. The same is true with saguaros in Arizona (you need a permit on private property. This could be a problem if these plants are growing too close (or even up against or into) the property you’re hoping to buy.

Another form of due diligence is finding out if any animals migrate through or live near your property. Mountain properties are beautiful, but you might not want to deal with bears or moose. In other places, termites, mice, or even scorpions can turn out to be some unwelcome guests.

Property condition: Can the house you’re looking at currently withstand flooding? Can the roof handle a severe snowstorm? You don’t have to count out a property if the answer is “no,” just be prepared for some massive fixes.

EPA issues: Watch for leaking underground storage tanks or AC units that use Freon, as they will need replacing.

Home History

Whether you want to deal with a home’s history is up to you, but it’s typically not something you want to be surprised by. Here are some things to keep in mind with this type of due diligence:

  • A simple Google search with the address can bring up any crimes that happened there (if any exist). 
  • Hoarder houses will often have a lot to deal with, especially if they’re being sold as-is.
  • Foreclosures can come with extra repairs. If the homeowners struggled to make mortgage payments, there’s a chance they struggled to keep up with the property.
  • Older houses that haven’t been updated or renovated will need more work.
  • It’s morbid, but people die in their houses. If the idea of that bothers you, do some extra research.

Doing your due diligence in real estate is crucial (and just a tad more important than those math worksheets from the 4th grade). It’s important to do this no matter how you buy a house, but looking at properties through RealtyHive takes away a lot of the guesswork. Look through our listings to find your next home or investment property!

How to Work With a Realtor When Issues Come Up

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People hire Realtors for convenience, knowledge, industry connections and overall expertise. But what should you do when things aren’t going as planned?

While you can legally fire a Realtor in some instances, the most common issues are things that you can try to navigate on your own first. Use this blog as a guide to see how to work with a Realtor when problems come up.

“They’re not communicating as much as I’d like.”

Ideally you figure out your communication style before choosing a Realtor and look for one who can meet your needs. But if that ship has sailed, here are a few things to try.

  1. Decide on frequency. How often (or when) do you want to hear from your Realtor? 
  2. Decide on method. Do you prefer texts, calls, Google messaging or emails?
  3. Figure out why it’s important. Why do you need more communication and what do you need it for?

Once you’ve answered those questions, it’s time to talk to your Realtor. Let them know where you’re at and bring it up in a respectful manner. Consider opening with something that you appreciate about them. Ironically, yelling at a Realtor about needing more communication is not going to get you far.

“My house isn’t selling.”

There could be any number of reasons why your house isn’t selling and a Realtor isn’t the automatic root of the problem. Here are some instances of when it’s the Realtor and when it’s not.

House-related selling issuesRealtor-related selling issues
– Most expensive property in the area (and by a wide margin)
– Super custom, in a way that turns off the average buyer
– Undesirable location (ex. right next to a freeway)
– Property needs a ton of work		– Doing little to no marketing past listing in the MLS
– Not recommending (or providing) professional photography*
– Not helping with staging*
– Lack of transparency or communication

*Not required for Realtors but a service that many offer.

Hopefully your Realtor is transparent with you about what’s going on. Talk to them if that’s not the case. It’s almost a guarantee that you signed a contract with your Realtor, so you’ll have to wait for that to expire before switching to a new agent.

However, if you don’t remember signing anything that listed how long you’re in contract (or you just want to review the documents), ask your Realtor for a copy. If they don’t give it to you, call their broker and if that doesn’t work, the local Board of Realtors next.

One important detail: if a person looks at your house while you’re still under contract with your Realtor, then puts an offer in after the contract ends, you’ll still owe the Realtor commission.

“I don’t think they’re being honest with me.”

There are, sadly, a number of scenarios where Realtors put the blinders on their clients. Be on the lookout for the following and report it to the broker as a contract violation.

  • Only showing properties that can get the Realtor a higher commission. 
  • Preferentially showing their company’s listings.
  • Not telling sellers of every offer that comes in.
  • Working outside of the area that they’re licensed in.
  • Knowing about issues with a house but not telling the buyer.

“They make me uncomfortable.”

A racist joke is racist and unacceptable, period. Inappropriate comments are inappropriate. It does not matter if your Realtor was “joking,” the impact of their behavior matters more than their intent. 

For certain things that seem harmless, it’s probably in your best interest to talk to the Realtor first. If they don’t handle it well or don’t stop their behavior, talk to their broker. However, there are some situations that are flat-out unethical and violate your contract, let alone the Realtor’s license.

  • Discrimination: If a Realtor shows any hint of discrimination towards you or another group of people, talk to their brokerage immediately. There is a horrific history of racism in real estate, any Realtor continuing in this vein does not deserve their job.
  • Sexual assault: Verbal harrassment, inappropriate touching or anything of the like is intolerable and should be reported ASAP.

Make things easier with RealtyHive.

Whether you’re buying or selling, our tried and true, time-limited event process helps everyone who comes to the table. You can select a real estate agent to help you buy a home through Cashifyd (and get cashback at closing), sellers don’t pay for marketing unless their property sells — the list of benefits goes on. Avoid uncomfortable Realtor situations and work with RealtyHive instead.

Real Estate Expectations vs. Reality

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Oh, to be a starry-eyed newcomer to the real estate game. Where you think you’ve found the perfect house, only to learn about some skeletons in its closet (sometimes literally). Where you put in an offer, convinced that this house is the one, only to have your offer rejected. Where you were sure your house would sell in two weeks and now you’re past the two-month mark.

No one likes going into a situation unprepared, so we’ve compiled some essential real estate tips for those times when expectations don’t line up with reality.

Misleading Description

“Charming cabin in the woods” sounds great, until you show up to the property and it looks like the most recent “Saw” film was shot here. 

Just like a salesperson, homeowners trying to sell will do what they can to amp up their property. Descriptions are made to captivate buyers so it’s up to the buyers to see through the charades. A few examples:

  • “Quaint” — might be too small
  • “Old Victorian home with lots of history” — might need lots of repairs, require more upkeep
  • “Off the grid” or “secluded” — probably lacking access to anything from nearby restaurants and stores to decent internet service
  • “Lots of potential” — it’s a fixer upper
  • “Close to the action” — might be near a busy road, noisy

Misleading Photos

If you’ve ever eaten a microwave dinner, you know a thing or two about misleading photos. Photos won’t show the pet hair that’s embedded into the carpet or the leak in the ceiling that appears after a torrential thunderstorm.

While it’s true that staging photos are often trying to highlight the good and push the bad to the back of the closet, there are also times where you, the buyer, have to look with a critical eye. For example, photos of a private driveway in fall with the leaves changing are beautiful, but these photos don’t show the nightmare of plowing in winter. 

Another thing to keep in mind: some photos are fake. Graphic design and digital renderings have become life-like. If you’re just going by photos alone you might find that the house you’re looking at doesn’t even exist yet.

Timeline

It’s a huge jump to go from renting to being ready to buy. In that excitement, it’s easy to forget that buying a house isn’t like buying a car — the latter can happen in a matter of hours and the former can take months. The same is true with selling a house — it won’t happen as quickly as putting your bike up for sale on Craigslist.

In both instances, patience and strategy are key. First-time buyers might benefit from working with a real estate agent (sellers could too). Sellers need to have proper marketing and a good platform to list on. Buyers need to keep in mind that their offer might not get accepted, especially in a competitive market. Both parties need to recognize that real estate very rarely works on a perfect timeline.

Closing

FSBO sellers usually don’t realize the amount of deadlines and contract obligations they’ll need to deal with. You might think saving money from selling FSBO is worth it, but a lot of people don’t realize how involved the closing process is.

The same goes for buyers. The last thing you want is to show up to a closing without a lawyer or real estate agent present. Houses are massive investments and not having someone to walk you through the paperwork and process could hurt you in the end.

Costs

First-time buyers often have the expectation that the listing price is what they’re going to pay. There are a lot of unexpected closing fees that end up surprising buyers. Expect to pay anywhere between 2 and 5% of the listing price for closing — and plan on paying in full.

Killer Deals

A “killer deal” house is often not what it seems. True, there are times when you can absolutely snag a deal, but it’s extremely rare to come across a low-priced home that needs no additional work. 

Here are a few things to do before jumping on that killer deal:

  • Walk through the house. Take pictures, ask questions, even bring a tennis ball to lay on the ground — if it consistently rolls in one direction, this could indicate an uneven foundation.
    Some property investors are all about the deals and purchase things site-unseen. This is extremely risky for first-time buyers or for people wanting to live in the home they purchase right away.
  • Get a home inspection. This is also something that property investors sometimes pass on but skipping an inspection is not a good real estate tip for beginners.
    Additionally, make sure you include contingencies regarding this inspection in your offer.
  • Do the math. Calculate all the estimated repair costs and weigh out if this house is still a “killer deal.”

If all this info has led to beads of sweat dripping down your face, don’t worry (and don’t feel bad). Real estate is a complex, highly nuanced industry and even the experts still have things to learn. 

The way you can make this easier is by listing with an all-inclusive platform like RealtyHive. We have a network of agents from you to choose from (and with Cashifyd, you can even get cashback at closing) and countless properties available, all over the world. For sellers, our time-limited events and marketing tactics are designed to shorten your time on the market. Buy or list with RealtyHive today!

Seller FAQs: Rentbacks, Exclusive Listing Contracts & More

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You’ve got questions about selling your house, we’ve got answers. Sift through some commonly asked seller questions (and feel free to comment with any additional questions you might have!).

How do I sell my home?

To sell your home, first decide if you want a real estate agent or to sell on your own (FSBO). A real estate agent takes care of practically everything for you but costs money, FSBO could save you some money (not a guarantee) but it’s more work.

If you opt for FSBO and decide not to find an agent, you’ll need to research selling prices in your area, find paperwork that’s specific to your state, stage your home, take photos and find a listing platform. Don’t let this one-sentence blurb fool you — it’s a lot of work.

What are the benefits of working with a real estate agent?

Agents can get your property into the local MLS and have a lot of connections. They know of people who are looking to buy, they work with other agents — their network alone can make a massive difference.

Agents are also good at setting your listing price by pulling comps to see recent, local selling prices. They’ll help you with closing paperwork, which is notoriously complicated. In a lot of ways, the right agent could actually get you more money for your property through their industry knowledge and connections — you could get a better deal than if you were to sell on your own.

What if the contract with my agent expires before my house sells?

You can look into renewing your contract, but there’s a good chance you’ll want to let it run its course if your house didn’t sell while working with them.

One thing to keep in mind: there’s a good chance you might still owe them commission even after their contract expires. Every contract has a commission protection period, so if a person looked at your house, then waited until the contract expired to put in an offer, they (as the buyer) would be a named exception. In this instance, the agent would still get commission.

If someone completely new and different comes in to look after the agent contract expires, the agent won’t get commission.

Can I hire more than one real estate agent?

Unless the real estate agents are working as a team, you usually can’t hire more than one. However, this depends on where your property is that you’re selling:

  • Exclusive listing contracts: In the US, only one agent can present the property for sale.
  • Non-exclusive listing contracts: Found around the world but pretty typical in the Caribbean and Central America. Many agents present your international property for sale, the only agent or person who gets paid is the one who brings the buyer.
    This is also sometimes called a non-exclusive listing agreement.

How do I make sure my house sells?

Other than making your home look desirable, every seller needs to provide the proper real estate marketing to amp up exposure. DIY marketing is a lot to take on, but it can work for some sellers. 

If you want to save yourself the hassle (or if your home isn’t selling), work with a company that lists your property AND provides marketing. RealtyHive offers both and when you list with us, you won’t pay for marketing until your house sells.

How do I set the right selling price for my house?

An agent will help you find out how much your house is worth, but if you’re selling your house on your own then here are some things you’ll need to consider:

  • Comparable sales (comps)
  • Home appraisal
  • Property renovations, upgrades, or unique/valuable characteristics
  • Tax appraisals

If you’re not sure about finding an agent, list with RealtyHive. We offer equity checks to get the right property price for your home before putting it in a time-limited event.

When is a bad time to sell my property?

A common real estate myth is that it’s a bad idea to list your property in the fall or winter, but there’s really not a bad season. In fact, selling in the “off season” can actually narrow down the competition.

One thing to pay attention to is market rates. If you don’t have to sell your property (ex. you aren’t moving) you should keep an eye on the current housing rate. Biting the bullet and listing when mortgage interest rates are low can work in your favor; selling when a city is on the verge of booming can become a regret.

What happens if my property sells before I’m ready?

Try to coordinate your buying and selling. If you sell first and don’t have a new house bought yet, you’ll want to look into renting and putting stuff into storage until you close on a new place. If you bought a house but your current one isn’t selling, keep in mind that you’ll have to manage two mortgage payments until your current place sells.

The other option is a rent-back, which we’ll get into just below.

What is a rent-back?

Rent-backs allow you to stay in your home even after it sells, until a specific date, on the condition that you pay rent to the new home owners. It’s basically like renting the home you had previously owned. 

In order to make this happen, you need to see if the new owners are open to it (they might say no because they might be in the same predicament of needing a place to live). If they agree, a security deposit will be set up and you’ll essentially lease your place from the new owners.

Hopefully we were able to answer some pertinent seller questions, but if you’re still looking for some, sift through our blog for further resources or ask us in the comments!

5 Things to Know About REITs

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Think back to the last time you played Monopoly. You probably bought a bunch of different properties, made some money anytime someone landed on your space and hopefully only got into a brief shouting match with your sibling.

Real estate investment trusts or REITs are somewhat similar (without the shouting). They’re different from real estate trusts because they’re actually a form of investing, similar to stocks. Take a look at the top 5 things to know about this type of trust (and how you could even turn a profit from it).

#1 Virtually anyone can invest in REITs.

A REIT is “a company that owns, operates or finances income-producing real estate,” according to Nareit. Just like you would invest in another industry or purchase stocks through a mutual fund or ETF, you can do the same with a REIT. Many people use their 401k to invest in this type of stock.

#2 REIT investing is pretty solid in the long run…

While any investment comes with risks, REITs are pretty solid. Investopedia describes them as “one of the best-performing asset classes… Between 1990 and 2010, the index’s average annual return was 9.9%, second only to mid-cap stocks.”

#3 …but it’s anything but steady.

Bonds, CDs, a regular old FDIC-backed savings account — REITs are nothing like these. Expect drastic rises and falls and it’s not something you want to “get rich quick” from. REIT investing is often recommended to diversify your portfolio.

#4 There are 5 types of REITs you can invest in.

You have five options with where to invest your money. 

Residential: These REITs cover apartment complexes and manufactured houses, most often found in big cities where renting is common.

Retail: This goes towards malls or other shopping centers. This specific type of REIT generates income from renting out spaces to retailers. 

Office: Just as it sounds, this type of REIT deals with commercial office spaces.

Healthcare: Hospitals, nursing facilities, retirement homes, clinics, or other medical centers.

Mortgage: Freddie Mac and Fannie Mae are two of the most well-known mortgages that this type of REIT goes towards.

Just like you weigh out your options in Monopoly for the best property to buy, you want to do the same for REIT investing. For example, retail and office investing might not be the safest choice in the middle of a recession and subsequent high unemployment. However, you can also buy a mutual fund or ETF that does all the research and investing for you.

#5 You can invest both individually and internationally.

As globalization continues, international REITs continue to grow in popularity (though it’s good to note that this is more recent, so we don’t have much data for long-term success). You can also invest through a mutual fund, like a stock. Vanguard actually offers an index fund.

One thing to keep in mind: non-traded REITs have a lower return than publicly traded ones. Again, it pays to do your research (or find a professional who can). 

It’s not Monopoly, but it could make a real-life difference in your finances. REIT investing, like owning rental properties, commercial properties or vacation rentals, is another way to continue growing your portfolio.

What Is a Real Estate Trust?

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Trust issues — we’ve all got ‘em. But hopefully not when it comes to real estate trusts, because that would create a massive problem with your property and potentially, even where you live.

A real estate trust establishes who gets your property and how they get it. This blog will hopefully clear up at least some of the trust issues you’re facing (real estate, that is). For the other trust issues, well, reading a few Brené Brown books is probably a good start.

Who sets up a real estate trust?

Anyone can set up a real estate trust, but most people do this when they’re older. Homeowners with a high net worth also tend to set up a trust, regardless of age.

Trusts are not the same as wills, but they do function in the same sense. Real estate trusts, like wills, determine who gets your property. This can either happen after you die, or a living trust that gives ownership to someone of your choosing while you’re alive. 

A good example of this is if a homeowner is diagnosed with Alzheimer’s and has a house in their name. By setting up a living trust for their partner or other loved one, they give control over to that person who can make decisions when they (the homeowner) no longer can.

What’s the difference between a real estate trust and a will?

Many people think that if they have a will set up, they’re set and don’t need an additional trust. This isn’t always the case. Here are some of the crucial differences between the two:

WillTrust
– Usually for smaller assets, like your parents’ wedding china
– Asset distribution goes through the court system
– Available for anyone to view		– Usually for costlier assets, like a house or rental property
– Asset distribution is already lined out (no court time needed)
– Private

Real estate trusts make it easier to deal with high-end assets.

Houses, vacation homes, rental properties — a trust makes it easier to deal with costlier assets. If you just leave your home in a will, whomever inherits the home will have to go to probate court in order to sell.

Probate court is not only a massive hassle, it’s expensive. It can take months or even years to settle an estate through probate court; trusts cut that time down to just a few weeks. Trusts settle the issue beforehand, making it much easier (and less costly) for the benefactor(s).

Real estate trusts are also cherished for their privacy. Everyone has heard will horror stories — feelings of resentment and jealousy are all too common. Trusts only tell those who are receiving something what they’re receiving; other information is kept private.

Real estate trusts make it easier to split things up.

If there are ever stipulations in how you want to split up assets then a trust is a good way to go. Here are some examples:

I’ll give to…

  • My alma mater, as long as they remain an HBC (Historically Black College).
  • My children once they reach the age of 40.
  • My kids, but not their father.

These are qualifiers that you can’t set up in a will alone; you need a trust.

Is there any instance where I should just stick to a will?

If you don’t have any massive assets or have a straightforward plan worked out with your family regarding your property after you die, a will is just fine. Just keep in mind that if there’s even the slightest chance they want to sell the house they inherited, it will become much more difficult if you only have a will and not a trust.

What is a revocable trust?

There are two types of real estate trusts: revocable and irrevocable.

A revocable trust ensures that, while living, you keep your property and can make changes. It’s still in your name and you’re still responsible for estate taxes. 

With an irrevocable trust, nothing can change once it’s set (unless the named inheritor chooses to do so). Similar to the living trust example, a homeowner might set up an irrevocable trust if they have a worsening health condition. The homeowner who set this up will no longer own the house, but won’t have to pay taxes on it, either.

As another example, a person looking to reduce estate taxes or simply donate some of their estate might set up an irrevocable trust as well.

How do you set up a real estate trust?

  1. Figure out what you want to go into the trust, who gets it, and when (while you’re alive? or after your death?).
  2. Determine the amount of time you want this to last (some states have rules for how long trusts can exist).
  3. Choose a trustee — in a revocable living trust, you can be your own trustee. Otherwise you’ll choose someone you trust, who has solid financial management and decision-making skills.
  4. Find a financial planner or estate lawyer to carry this out.

I’ve inherited a property through a real estate trust. Can I sell it?

As long as there are no stipulations prohibiting you from selling, the answer is yes. Feel free to read up on the RealtyHive selling process to see if listing in a time-limited event is a good option for you.

Places to List Your Rental Property (Other Than Airbnb)

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Like Kleenex and Bandaid, “Airbnb” is so popular that the site has turned into a noun. It’s great to have Airbnb as an option for listing your vacation rental property — it’s even better when you have multiple sites and platforms to choose from.

There’s nothing wrong with using Airbnb, but variety is the spice of life. Check out these rental property platforms and see what else is out there — you might just find a better way to maximize your revenue.

HomeAway

HomeAway was actually created 3 years before Airbnb. It was bought by the Expedia group in 2015 whereas Airbnb has continually maintained its independent status.

HomeAway might be a better place to list your vacation rental property due to their hosting fees. Airbnb takes 3% commission out of every reservation — for a one-night $150 listing, their commission is $4.50. HomeAway has two payment options:

  1. Hosts pay an annual $499 subscription
  2. HomeAway takes 8% commission for any reservation made

If you had a $150/night vacation rental that was occupied even for 150 days per year (less than half the year) and opted for Airbnb’s pay structure, you’d pay $675 in commission/fees. With the annual subscription from HomeAway, you’d save $176 with the same setup.

At a certain point, HomeAway’s pay structure becomes more lucrative than Airbnb. That Airbn-being said (I had to), HomeAway is far less known and popular. Even if the pay structure seems better, you won’t save money if your rental property is ultimately ignored.

VRBO

VRBO is probably just below Airbnb in terms of popularity. There’s a chance it might even surpass Airbnb at some point, largely because of the difference in guest service fees.

Anyone who’s booked with Airbnb has felt the initial glee of finding such a cheap vacation rental, only to see that number exponentially increase by the time of checkout. Service fees for Airbnb are sometimes as high as 20% — not counting taxes. Conversely, VRBO is usually between 6-12%. Something that’s more affordable for guests has a lot more potential for finding people to rent out your property.

VRBO was also acquired by Expedia and has the same two payment options as HomeAway.

Home2Go

Home2Go is basically a compilation of the major rental property listing sites. It’s beneficial for people looking to book a rental property because it pulls from Airbnb and VRBO simultaneously, among others. While you can list with Home2Go specifically, you can save yourself the extra step by listing with one of the bigger platforms — it will still likely show up on Home2Go. 

Booking.com

We’ll be upfront: Booking.com is one of the most expensive options for property owners. You’ll have to pay 15% in fees. We bring it up because from a guest standpoint, Booking.com is the least expensive option.

Booking.com has a staggering $0 guest service fee. While still not nearly as known as Airbnb, this could change — especially as more guests tire of paying exorbitant surcharges through Airbnb. Booking.com is a platform to keep in mind. Even if your prices are higher, it might, at some point, not make a difference if more users switch to their platform.

Vacasa

Vacasa has been around since 2009 and serves as a vacation property management company. They cover bookings, housekeeping — a very helpful service in the rental industry — and customer service. These extras make Vacasa one of the more expensive sites in terms of commissions (usually charging between 20 and 40%).

Some things to note: Vacasa was subject to a $3 million lawsuit several years ago from a property owner who felt she was charged fees never stated in her rental agreement. With the pandemic-based halt on travel, Vacasa also recently received over $100 million from a tech investor who similarly bailed out Airbnb.

Other information on Vacasa is somewhat hard to find, especially compared to other platforms mentioned in this article. Reviews from property owners seem to be mixed.

Evolve

Evolve is the middleman between rental property owners and vacation platforms. They market your property for you, offering lucrative services like free professional photography and listing optimization. They take 10% of booking fees (though it’s unclear from their site as to whether this includes fees from Airbnb and the like).

It’s fantastic to research and dream about how you can best generate revenue from a vacation rental property. But the first step to making that happen isn’t signing up with Airbnb, VRBO, HomeAway or the like — it’s to buy a property from RealtyHive! Find the perfect cabin, waterfront villa or beachside condo by searching through our listings.