Tag Archives: RE/MAX

RELATIONSHIPS AND REAL ESTATE

A REALTOR’s® Relationships with Colleagues, Partners and Vendors Can Save a Transaction.

A REALTOR’s® job (in a nutshell) is to procure the sale of real estate between a willing buyer and seller.

We have all been part of, or witnessed, a transaction that does not go well.  Whether it is buying/leasing a car, or retaining the services of a contractor, unless the parties are successful in communicating extremely clearly, there is always a possibility for a “miscommunication”.  This can lead to wounded egos, unhappy parties, or an issue to be resolved by litigation.  Can a Relationship save a transaction?

My relationship with my network is essential to client-satisfaction.  Whether referring a client to another REALTOR® a thousand miles away, or a local lender, I have extreme confidence in my referral partners.  When you are looking for a REALTOR® to partner with, it is essential that he/she have strong relationships with their referral network.

As a Full-Time REALTOR® for over a decade, I am fortunate that I have not had anything worse than the “wounded ego” (mine) experience in my business.  Live-and-
Learn.  One of the ways I have virtually eliminated the chance of these types of “miscommunications” is by putting all important communications in writing.  Additionally, I am very selective when choosing business partners and vendors to whom I refer business.  My partners and vendors are full-time (so they aren’t distracted by another job,) professional (they conduct themselves and behave appropriately,) ethical (they don’t put anything in front of the client’s best interests,) and licensed, and insured.  Having established relationships with people of this caliber, reduces the chance a client will be unhappy with me, because of an experience they had with a referral partner.

My colleagues who are also at the top of their game usually have strong networks of referral partners that they rely on for their clients’ needs. 

There are lots of good REALTORS®, but what sets some apart is the strength of the relationships they have with their referral network.  There have been times when I have to request that a partner, or vendor, to go the “extra (ethical) mile” to help bring a transaction to the Closing Table.  Maybe it is as simple as asking my preferred moving company to squeeze in an extra moving job for a client who scheduled a move with another mover whose truck broke down, or calling North Smithfield Tree Service to remove tree limbs that the Seller couldn’t get removed and it’s the day before Closing. 

The difference between success and failure maybe the extra effort exerted as a result of a relationship between the REALTOR® and a someone in their network.   

That is why Relationships are essential in the business of Real Estate.  YES, a relationship CAN save a transaction.

Joe Luca is a full-time REALTOR® who helps buyers and sellers achieve their real estate goals.

Is NOW A Good Time To Invest In Real Estate?

Timing the market isn’t usually a fruitful endeavor…it’s certainly not rewarding. The decision to invest in rental property should be driven by objective data, not “timing”.

Some things you may want to consider:

  1. Are you personally prepared to be a landlord? “Landlording” isn’t always easy, and it isn’t usually fun. Unlike owning mutual funds, stocks and bonds, it is an active investment. You need to be engaged and committed to being a good Landlord. Unlike the aforementioned, you CAN buy an investment worth five times the amount of money you are committing to the investment by leveraging your investment with a mortgage.
  2. How much money do you have to invest? You need to have enough for a down payment and some reserves for repairs, maintenance, and vacancies.
  3. Will you live in the investment property? This can be a great way to get started if you buy a multi-family.
  4. Will you qualify for a mortgage? Mortgage products for investment properties have different guidelines than mortgages for single family properties.
  5. What are the rental rates in the neighborhoods where you would be looking to invest? Rental rates have been increasing much faster than the cost of ownership nationwide. For example: three rental units generating $3,600/month can support a lot of debt-service, taxes, insurance, and vacancy ratio of 5%. (A $375,000 mortgage with 20% down would have a PITI payment of under $3,000/month at 6.5%.)

While I can’t predict when the next “Crash” is going to occur, it doesn’t appear to be on the horizon based on the empirical data. If it is, and you buy a good property in a good neighborhood, in a desirable town, you will be shielded from the downturn much better than if you bought a property in a not-so-good neighborhood. You will be shielded even more if you are uber-selective with your tenants. Good tenants are almost worth their weight in gold if you compare them to the cost of bad tenants.

Knowledge is power so your best first step may be to have a conversation with an experienced, full-time REALTOR® to assess if investing in real estate is the right “move” for you.

The FED Raised Rates – Is It Still A Good Time To Buy/Sell A Home?

As was widely expected, The Federal Reserve raised interest rates, and indicated that they will continue to do so throughout the year.  This actually indicates that things are good in our economy… a positive sign that consumers are spending money, and prices are being pushed upward by the forces of supply and demand.  Interest rates are like a “brake system” on a train, when things start moving too fast apply the brakes, to slow the train down.  Likewise, when the economy starts to “move too fast”, prices are getting pushed higher (Inflation) so a slight increase in interest rates will temper, or slow down, these price increases.  Inflation, like our debt, diet, and data, needs to be managed so it  doesn’t become a problem.  Which was why The Fed repeatedly lowered interest rates during the depths of The Great Recession – to spur economic activity (buying stuff.)

1st Home Mortgage

What will this mean for me?  If you have a 30 year mortgage of $250,000, at a fixed interest rate of 5%, the monthly payment (not including taxes and insurances) would be about $1,342. A rate increase to 5.25% would raise your monthly payment by about $35.  Most consumers spend more than that on coffee every month.  Will that be detrimental for some consumers? Probably.  However, rising incomes, should mitigate that affect.  The US unemployment rate is 4.1%, and Full Employment is considered to be about 5%.  Many economists believe that this dynamic pushes wages higher so (theoretically) more people should be able to afford the extra $35/month.

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If you are considering Selling your house, you should act sooner and not later. Inventory is tight, so there is not much competition at this time; but more people may list their homes for sale increasing the competition. You best option is to contact a Full Time, Experienced, REALTOR® to get the answers to your questions for your situation.  Feel free to call me, Joe Luca at 401-580-9797.  All questions are welcomed and answers are free and without obligation.

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