So I was talking to this realtor…
about a property her client was interested in renting. She asked me what the comission was for leasing the property. I asked her what she meant and she was direct in saying, ‘how much do I get paid when my client signs a lease?’
I continued the questioning because I thought it would be interesting to hear the greed drip through the phone. She said usually the comission is ‘one half of first month’s rent’. Since we charge less for our own leasing fee, I had to tell her we do not have a commission to offer. That was the last I heard from her.
Now I don’t expect people to work for free, but some questions came to mind. What if this property was the absolute perfect one for her client? How much would that be worth? If a realtor located a property for a client, it was the ideal place, the client loved it and it improved the client’s life, wouldn’t they rave to all of their friends and family about the realtor?
The realtor might have received 10 referrals from that one prospect and maybe 10 more from each of the new referrals. Maybe 100 commissions were thrown away in a chase to get paid, rather than putting the client first.
At Sun Rock, we give before we get. The purpose of this blog is to give quality information to real estate investors. By doing this we have earned well-educated and informed clients for life. This is the difference between chasing a paycheck every month and building a successful business.
Not saying all realtors act like this, but anyone who does, Sun Rock Property Management does not want to do business with.
For quality property management in Lakewood Ranch, Florida, contact Sun Rock Property Management now.
What Happens in Florida, Will Happen Everywhere Else
Want to know what will happen in the U.S. Real Estate Market? Watch Florida.
Jim Cramer says Florida is the template for where the US housing market is headed.
Florida real estate lead the way during the boom and the bust, and will lead the way in a recovery. Look to Florida to find out what will happen next.
For pre-purchase investment consulting and expert property management, contact Sun Rock Property Management. We manage your investment in Bradenton, Sarasota and Lakewood Ranch, Florida.
Is Your Property Manager a Realtor?
Most property management companies are run by Realtors. They can manage your property, or sell it, or whatever. Too bad for you the Realtor can make a lot more money in a lot less time if they throw your property on the MLS, have a buyer come along, and get a 4% commission instead of managing it.
The mindset of a realtor is not the same as a real estate investor. Realtors are salespeople, helping people buy and sell their homes regardless of capital gain or loss. Investors are seeking high returns on their money, generating cashflow and building wealth. During the boom and bust of the mid 2000’s, many realtors got burned thinking they were investors just because they were in the real estate business.
Usually a Realtor will get into the property management business, thinking it is easy and will generate a little extra income. The result is a domination of Real Estate Agencies, who also do property management. Would you hire an electrician who does a little plumbing on the side to fix your sink? No, you would hire a plumber.
The lack of focus and priority among these companies makes finding a good property management company hard. Sun Rock Property Management was developed by real estate investors to offer an alternative to the realtor/property management companies.
Property Management is all we do.
For focused, efficient management with a personal commitment to you, contact Sun Rock Property Management.
If Mortgage Rates went up….
If mortgage rates went up, the dollar would be worth more. Money would be more expensive to borrow, therefore more scarce and valuable. You would have more purchasing power with the money you already have and earn a higher return on savings. Banks would have more money to lend, because they could entice customers with high CD, IRA and savings rates. The higher rates would curb inflation, causing the price of everything to go down, including real estate.
Higher mortgage rates will further depreciate America’s housing market. If you are selling a home for $100k and the average mortgage rate is 5%, the buyer’s payment on a 30 year fixed mortgage is $536 per month. If the mortgage rate went up to 8%, how much of an offer could the buyer make and still keep their monthly payment at $536?
Answer: $73k. Buyers in the market for your property can now only offer 73% of the price when rates were 3% lower. Your home just depreciated 27%.
Are we at the bottom? Not even close.
On April 1st Federal Reserve is not continuing its investment, which means that mortgage rates are about to increase. Experts believe home prices will drop 5 to 10 percent. – realestate.com
Rates have been kept artificially low for the past 9 years, creating a boom and then propping up a bust.
Perhaps rates should really be at 15-20% to make up for all the money that has been printed and spent.
Either rates will stay low and the whole thing will go into a death spiral or at some point market forces will push rates up. When that happens, expect your home to be worth less, and maybe the market bottom will be in sight.
For professional property management in Lakewood Ranch, FL, contact Sun Rock Property Management
Best Home Trader
One of Sun Rock Property Management’s more tech-savvy friends has recently launched a website to list your home for sale.
The idea of Best Home Trader is to get maximum exposure of your listing online at the best price. By posting your listing you can get to the top of search engines and reach potential buyers nationwide. Listings can be created with a lot of detail and the site is user-friendly.
Viewing current listings or posting your own can be done now at Best Home Trader.
Sun Rock Property Management offers focused, efficient property management with a personal commitment to our owners.