How Do Real Estate Agents Get Paid?

In many lines of work or professions employees get paid by the hour and may get some work performance incentive bonuses as well.  Many sales people on the other hand may make a small hourly wage but rely more on commissions that are earned upon closing of the sale.  Other sales people are strictly commission based which means they only bring in a paycheck upon the closing of the sale.  A majority of real estate agents in the US are paid on a commission only basis which means until they help a client buy or sell a home they do not earn any pay.  This article looks in depth at the ways how and how much real estate agents get paid when representing clients.

Some Of The Not So Common Ways Real Estate Agents Get Paid

There are some companies who pay their real estate agents on an hourly basis.  Companies that primarily deal with leasing of property have more incentive to pay their real estate agent employees on an hourly basis since more of that job entails showing vacant rental units to prospective tenants and screening them for suitability.  These agents usually work directly for a company whose primary business is the managing of rental units.  

There are other real estate companies who pay agents on an hourly basis to handle things like showings and listing appointments.  While not very common these types of real estate companies are exploring different business models of serving their clients.  Whether these business models survive the long term is a topic for another discussion but one possible result of hourly real estate agents is they don’t have as great of an incentive to learn the full depths...

Who Pays For Pest Control Treatment?

Pest control treatment can be either a one-off thing that does not cost much overall or something that is expensive and requires multiple treatments due to the type of pests involved.  This article explores who should be paying for pest control treatment.  In the case of a home for sale or in the case of a landlord/tenant matter the answer of who pays for pest control treatment will vary.

When A Home Is For Sale

In the case of a home up for sale the most common pest treatment that is called for after a home inspection has been conducted is treatment for wood damaging insects (WDI).  Termites are one of the more common WDI, live in the ground and will find their way into homes where they will make a meal of any wood products they come into contact with.  Wood support beams, basement joists, framing 2x4s and more all make a great place for termites since they like to eat dead wood which is what is found in many homes.  Treatment for termites can be relatively expensive (compared to other type of insect treatments) though it is a one-time treatment that should last for a couple of years.  Subsequent treatment may be required or the homeowner may want to consider installing termite bait stations which can keep them away from the house.

If termite damage is discovered during an inspection the home buyer can request the home seller to pay for treatment to stop further infestation in the home.  Sometimes the treatment of the termites will be required by the lender in order for them to approve the mortgage loan as the lender does not want to finance a home that may fall apart due to termite damage.  Generally in these cases the seller will be the one paying for the treatment.  If...

7 Great Tips For Getting Your Luxury Home Sold

Luxury homes are targeted at a different buyer’s market when it comes time to get listed for sale.  Luxury home buyers in general can be savvier and understand the implications of finance in terms of what they will be paying for a house.  Just because a luxury home buyer can afford to pay more for a home does not mean they are willing to overpay for a home.  Luxury home sellers need to be positioning their home to sell and this article focuses on the top means to help get a luxury home sold quickly.

Set The Right Stage

If a luxury home already has great up to date furniture and has been recently updated with new carpet and fresh paint it may be good to go.  On the other hand more homeowners keep their home in a shape that is suitable for their needs.  When putting any home on the market the homeowner must consider the needs of the typical buyer who will be interested in their home.  As a result a neutral stage does best in the buyer’s mind since they can envision themselves in the home that much easier.  A neutral stage means a de-personalized home, neutral paint colors, and neutral flooring selection.  Luxury homeowners should be removing items like family photographs, trophies and other things that make a home look unique to the homeowner and allow buyers to focus on the home itself.

Staging includes making sure furniture looks nice and excess or old furniture should be moved to storage so buyers can see the actual size of a room rather than get distracted by the furniture.  Luxury homeowners need to declutter their closets as well so that the buyers can see how much space the closets do have.  Furniture should be made to make a room look inviting and sometimes the...

Understanding Risk When Investing In Real Estate

More investors are considering real estate when it comes to investing their hard earned money.  Some investors are looking for a better return on investment through higher yields as compared to other investment vehicles or they think real estate is a great and easy way to invest based on investment seminars or real estate investment websites where everyone is sharing their success stories.  Investing in real estate can be a great way to own some land and build long term wealth.  The caveat though is real estate investing is more costly than other investments (buying stocks) and if not done properly can quickly lead to an investor feeling financial pain due to mistakes made.  This article will explore some of the different types of real estate investment risks there are so potential investors can make fully informed decisions.

Risks With Buy and Hold Investing

One of the most common real estate investing method is the buy and hold method where investors purchase real estate with the goal of long term appreciation in value of their investment and receiving regular income from renting out the property.  With this type of investment investors will either purchase turnkey rentals (ready to rent out) or look for the value add opportunity where work must be done to the building in order to boost rents.  Buy and hold rental investments can include office space, residential space, commercial retail space, and warehouse space.

Legal Violations With Residential Real Estate

Higher risk comes from residential rentals due to the fact...