Realtors and Real Estate Agent Resources
Let’s face it at some time in our life we are going to want to buy a home. That being said, there are thousands of places we can go to get information. This is possible because of the internet and its abundance of information. Family and friends can be a great resource. It comes down to what you want and need for your own personal concerns. Real estate purchases can be a big move in your life. It’s best to find out the best way to buy a home. Here are some home buying tips to consider.
You need to know where you would like to buy the home. This is important because you don’t want to just pick any place that looks great to the eye. Sit down and think about the neighborhood, schools near by and traveling to local stores. Take it a step further and investigate the kind of neighborhood you might be living in. Many people are surprised that a high price living area can have the same about of criminal activity as a lower income area. Read reports of what has happened in the area in the last six months. This gives you a great idea of the area and whether or not if it’s safe for your family. It’s never a good thing to learn that beautiful location you had your sights on has a sewer problem destroying the local water. Do your due diligence so you can avoid situations like this. It’s devastating to move in a house and now you are constantly burglarized. Don’t depend on the real estate agent to tell you if the crime is bad, try investigating for yourself.
Make a list of the possible type of homes that catch your eye. Do you want a duplex, a pool or a basement? Should your selection be a luxury home or something in between? The only way you can answer these questions is to talk it over with your family. Find out what everyone else would like to see in their new home. It makes a difference because no one wants to be unhappy there isn’t a deck in the backyard, find the best real estate agents. Try to call a meeting with all family members and hear what they would like to see. Kids can surprise you by sharing things that have bothered them in the current house that you overlooked. You also want to find the type of home that fits with your budget. You are the one that is going to finance it, so why get something bigger that you can’t afford?
Like every home lining the block, it costs money. You have to figure out how you are going to pay for the home. Are you using family money, the bank or hard cash? What’s the best choice and what fits with your needs? Don’t let the cost of a home scare you away from possibly being able to afford it. Once you know the type and where it should be located, you will have a good idea of how much you’ll need to spend. Look at your budget and see how the cost of buying a home is going to damage your salary. You may have to consider financing a home. Whatever you come up with, you need to do as much research as you can to find the best way to pay for the home. For more information on real estate agents visit https://nestfindrrealestateagents.blogspot.com/
Home buying is always exciting when looking around at all of the open houses in the community. As you try to nail down how to afford the home, you also have to think about how long are you going to live there. Is the home going to be for you, who is single with no kids? Will the house have an entire family of eight? Most single people tend to move a bit more than a large family. You need to know if you are looking to plant yourself there for 5 or the next 10 years. Today, people seem to be hopping all over the place going from home to home. Years ago, many bought homes and stayed in them for nearly 30 years. You need to think about how long you intend on staying in the home even if you sign a 15 year mortgage. You might find yourself living in the home for five years and renting out the rest because you received a new job. Anything can change the course of living in a newly bought home.
Buying a home doesn’t have to be difficult. You need to think about you and your families needs. What does everyone want? Are you addressing all of their needs? Home buying also depends on where it will be located. Families with small kids want to be near schools and grocery shops. No one wants to be so far out that it can take an hour to get to the emergency room. Drill down on what type of home suits your needs. Is it going to be a duplex or do you really need three garages? Avoid settling on a home you hate once you have moved. Think about how long you plan to stay in the home. Are you a new single who is still job hunting? Consider these questions as it’s not unusual to find yourself moving out after a year or so.
How much money can you earn during the first year that you are in real estate? It is difficult to know for sure. There are many factors that influence that amount of real estate income you earn. How well you are able to manage your time, the number of agents you are competing with, the industry’s overall state, and your local market all factor into your bottom line.
As numerous agents will tell you, your first year in real estate can be quite challenging. And although some agents are able to make good money early on, most do not. Thoroughly understanding your overall financial picture and getting prepared for what is ahead – is the best thing you can do to be successful during the first year that you sell real estate. The following guidelines can be used to develop a solid financial plan for the upcoming year.
Set realistic financial goals for yourself during your initial year in real estate. Determine the amount of income you are going to need for supporting yourself, and then set a financial goal. Just make sure you are realistic. Speak with other local agents about the amount of money they earned during their first year – and also what it took for them to be able to reach this number. Analyze the local market and do some research. Although it is possible you can earn much more than your initial goal, it is best to not set yourself up to fail – or assume you can earn more than you actually will. Many agents need to work another job as they are building up their business, so as you are starting your new real estate career, make sure to keep this mind. However, that doesn’t mean you can’t succeed.
Understand what your employment status is
The IRS website states that most agents are affiliated as independent contractors with their brokers instead of as employees. In fact, a majority of real estate professionals runs their businesses as sole proprietorships. So what does this mean? That you are not an employee, and you have not formed a partnership with anybody or incorporated your business.
Like most agents, you are probably considered to be “a statutory non-employee” or “self-employed,” since the amount of money that you earn is based on your sales instead of how many hours you work. This results in you having federal tax obligations, which includes both employment and income taxes as well as other obligations that are covered by employers for most American professionals, including:
Retirement, dental, and health benefits
Fees for continuing education, dues, and licensing
Postage costs, advertising, marketing, and office expenses
The full share of Medicare and Social Security taxes
The same local, state, and federal incomes taxes as other workers
It is recommended by financial experts that you set 35% of your income aside for covering these costs. Although certain tax credits and deduction will offset some of these expenses, the 35% range should be able to keep you safe from winding up with a big unexpected tax bill at the end of the year.
As you are establishing your financial goals, be sure to factor this percentage in. For example, if your goal for the first year is to net $50,000 then you will need to gross $67,500.
Also, keep in mind that self-employed professionals who are planning on owing over $1,000 in federal taxes are required to pay them in advance in quarterly installment. Late penalties will be inflicted by the IRS if you wait until the due date of your yearly tax return.
Record and calculate your business deductions
Now let’s discuss some of the more positive parts of running your own business. Although it is true that you will incur extra expenses that regular employees don’t have many of them will count as tax deductions in April on Tax Day. The following are some deductible expenses:
Mileage and other vehicle expenses
Entertainment and meals
Mortgage, rent, and utilities (if you have your own “home office” that meets the IRS definition)
Education and licensing fees
Professional membership fees
Health insurance premiums
Other one-time business start-up expenses
In order for expenses to be deductible, they must meet the IRS official definition; they must be associated directly with our real estate obligation; must be paid for by you, and not the broker or a third party; and be documented with a computer log, written files, or receipts.
It is essential for you to be very organized to make sure you are able to account for all of the expenses you claim in case the IRS has any questions. Contacting a certified tax professional is always a good idea in order to obtain more detailed information. You can also go to the IRS website to get details that are specific to self-employed professionals and real estate professionals.
Develop a plan for meeting your real estate goals
After you have created your yearly financial goal that factors in your tax deductions and obligations use the PALs method for coming up with a plan for how you will reach your goal:
Prospects: How many prospects you need to contact to get one appointment.
Appointments: How many appointments it takes in order to get a signed listing agreement with a seller or buyer.
Listings: Listing agreements are what results in complete sales, and commission dollars in turn.
Sales: How many deals you close.
Speak to your broker to determine this information based on the local market conditions. Then, enter them into your financial worksheet. You can then set real-world, measurable tasks by the month, week, and day to make sure you achieve your yearly financial goal. Basically, your plan should tell you what you need to go – at what time – in order to continue to progress towards your goal.
This all may appear to be a bit overwhelming – or even downright frightening. However, just take the time to plan ahead of time, set your goals, and then develop a plan for reaching your goals. If you do this it will significantly increase your chances of succeeding during your initial year of selling real estate.