Property under 20k team, Author at propertyunder50k.com

Real Estate Agents are still valued & in high demand

Certainly, nice to hear for every real estate agent, we just love them. Most of us can´t do without them. This is the conclusion of a survey recently carried out in Germany by INNOFACT AG (a market research institute).

We value their professionalism and expertise

The survey shows that most of private owners would rather hire a broker to sell their property than to market it themselves.

Almost 69 percent of them would hire a real estate agent even if they had to pay the fees themselves.

When searching for the right agent, they found, Internet research is ranked first. Naturally, a high revenue in the sale is priority for sellers during a quick and straightforward sales process.

57 percent of respondents said they want to ask a real estate agent to handle the sale. 36 percent want to try the real estate sale on their own. That applies with 44 per cent especially for the young age group from 18 to 39 years. 69 percent of those who want to hire a broker would do so even if they had to pay parts or 100 percent of the commission themselves.

“What if the property in question is far away?” they asked

The answers of those who would rather sell their real estate themselves are even more striking in this case. Suggesting a travel time of around one hour or more, 96 percent say that they would hire a real estate agent in this case. Even under the assumption that they would pay his fees, 84 percent say that they want to work with a broker.

Not a surprise

Answering about the order of the most important aspects in the property sale, owners answer:

1: As high as possible

2: As fast as possible the sale

3: As little effort as possible

So, to all real estate agents: we love you – keep up the good work.

To give an extra help for agents, try our partner website to list your real estate deals: https://www.all-real-estate.com/

The study: Online survey of INNOFACT AG on behalf of ImmobilienScout24 among 500 private property owners throughout Germany, who plan a real estate sales within the next three years. Survey period: July 2019.

Real Estate Meaning

For everybody who is not a native speaker hearing the first time the wording “real estate” might seem odd. What is the meaning of real estate?

“Real” means “existing, true” as per the Latin origin from the root “res” meaning “thing”. Some also believe it comes from another root (rex) that means royal as in the past only the royals were landowners. However, as the British don´t use the words real estate, they would rather say “property”, I find it unlikely. But who can know for sure?

According to https://www.lexico.com/en/definition/estate Estate has its origin in Middle English (in the sense ‘state or condition’) and that comes from Old French “estat” which came from Latin root “stare” meaning ‘to stand’.

Thinking of the origins of the words real estate makes total sense to describe a property.

Real Estate Meaning – what do we usually understand?

Or better, many words relate to pictures in our head. For me, if I hear real estate, I think of and nice land with green grass and a fancy house.

Many would define it as land and anything immovable on it, such as buildings. Often, it would include air rights above the land and underground rights below the land.

In the past real estate meant a lot to people. It was their livelihood. That´s where they would live and grow their food, raise livestock etc. In todays modern live things have change a bit. A family no longer need to have a big estate to support themselves. Nevertheless, real estate is still very important for us. Naturally, everybody needs a place to live.

In addition, many people work in the property sector. The real estate industry is estimated to give jobs to at least 4 million people worldwide. However, his is just an estimate as many countries have no real estate license laws.

Above all, the biggest question can only be answered by yourself.

What does real estate mean for you?

Are you thinking to buy or sell, then visit www.all-real-estate.com

Will you be at Portugal’s largest real estate show?

In October this year it will be time again for all real estate lovers to flock to Lisbon. Portugal’s largest property fair will held its 22nd edition from October 10th to 13th.

In this four-day event you can discover large commercial developments, learn about latest trends from leading real estate experts and find potential partners for your real estate business among the exhibitors.

SIL, short for “Salão Imobiliário de Portugal”, is a meeting place for real estate investors, entrepreneurs, technicians, public institutions as well as potential buyers.

You can get a ticket for 8 EUR or if you buy 4 tickets in a bundle it costs only 20 EUR.

There will also be a Competition – the annual SIL Real Estate Awards

SIL promotes Real Estate Excellence, so this can be a good opportunity to get some attention at the Largest Real Estate Show.

The categories are:

Sustainable Construction and Energy Efficiency

The Best Real Estate Project for

a) Commerce, Services and Logistics
b) Housing
c) Tourism.

Urban Rehabilitation

a) Housing
b) Tourism
c) Public Spaces
d) Offices
e) Commercial and Services.

You can see all information and how to enter the competition on https://imobiliario.fil.pt/

If you think, “yeah, that´s all very nice but will be too boring for my kids”, think again! The makers of the fair even thought about that. There will be a Kid’s Club, where parents can drop of their kids. They organise various play and educational activities for children aged between 3-12 years old. Knowing that the kids are having great fun and being looked after, the parents can stroll the real estate show with peace of mind.

You can find more about the Kid´s club on https://www.essential-business.pt/2019/06/04/sil-launches-sil-village-and-sil-kids-club/

Where is the real estate show?

FIL – Feira Internacional de Lisboa
Rua do Bojador, 1998-010 Lisbon, Portugal

Would be great to meet you there!

Maximum visibility for your real estate ad

You want it? You get it!

Do you need real attention for your real estate ad? Maybe even directly on our homepage? Spotlight to the rescue! This add-on is designed for maximum visibility & attention.

Your ad will be visible at the most viewed place of all our websites. Right at the top of our homepage!

However, we not just show a thumbnail, we also show an excerpt of the details text. Choose the first words wisely to arouse curiosity of as many visitors as possible.

Your advertisement is highlighted with a yellow background in all our lists (even the gallery view).

In our lists it will display 3 additional thumbnails below the main picture. This a very good way to place even more eye-catchers to attract customers. As a result, showing additional thumbnails also create a bigger list entry which also makes your ad more present.

It can make a huge difference. Simply go to your ad and click “sell quicker”.

Try it.

Feature your ad on our homepage from as little as € 9.49 / € 9.99! Further details and prices can be found at https://www.all-real-estate.com/pricing.php

We wish you every success in selling or renting your property!

The best time of the year to buy real estate

Of course, nobody can predict the future and tell you exactly when is the best time of the year to buy real estate. But there are few indicators we can analyse from past years.

Naturally, prospective buyers would see more properties for sale when the weather is nicer, and this leads to more deals during the summer months. In fact, the weather has a huge impact on the real estate market in countries all over the world.

That´s why statistically you would get better prices on real estate in the winter month as there is less demand.

But make no mistake, that´s just the statistic.

If you ask a real estate agent when is the best time of the year to buy real estate, he will tell you “NOW”. And it makes sense. If the perfect home comes up on the market, you will just go for it, right? Nobody will wait till the winter month to try to get a better deal. And that shows another thing that should be considered.

The “Where” and “What” in the real estate you like to buy.

If the “Where” is in a popular location with high demand or the “What” is a house where usually only apartments are available… then there is no time to waste to ask for the “When”.

Make sure you have your financing in order. Like this you can tell the seller that you are ready to go. Some homeowners would give a small discount for a quick sale.

This of course might be a different story if you are an investor and you don´t look for something specific. You may simply look for good real estate deals, then yes, probably the winter months will be a good time to look.

Why not have a look today on www.all-real-estate.com

Can a real estate agent have tattoos?

If you are self-employed as a real estate agent, sure you can have tattoos, you can have or dress whatever you like. The question is if it is beneficial in your business or may even draw away some possible buyers.

Although having a tattoo might be a good way to strike up a conversation and meet new prospects, keep in mind that you will deal with all sorts of clients – maybe even some who don´t like tattoos (yes, they still exist).

Having your appearance as neutral as possible will help your customers to focus on the property you are showing them.

When it comes to an agent who works for a real estate company or represents a certain brand this might be a different story.

What kind of tattoo real estate companies allow or not depends on each individual case. They may require employees who deal with customers to reflect the character of the company in their outward appearance. Important are the policies of the real estate brand, as well as the expectations of the clientele.

The company may specify what its employees should wear and how they wear it. For example, they may forbid to wear jeans, sneakers, or to go without tie or jacket when meeting customers. They may also instruct employees to always remove piercings or cover tattoos when in contact with possible buyers.

One thing is certain: Large and visible tattoos are a no-go

Having a monster tattooed in your face might not be a good idea when you are trying to sell a luxury villa to some conservative clients.

As a real estate agent, you should draw attention to the property you are selling. That´s why your appearance in general – having a tattoo or not – should not be too intrusive.

5 reasons for less technology in real estate

New buildings nowadays seem like technical centres. It makes all sense as it serves both, protecting our environment and comfortable living, right?

Well… Let´s consider a few things here.

All these technical equipment didn´t pop out of nowhere. It was produced in factories. If you are concerned with the environment, make some research to see how much energy was needed or how much CO2 was produced in the making process.

With our effort to reduce energy consumption by using sophisticated technology in real estate, we have increased the cost of our construction.

Not only that. The additional costs for maintenance and service for those technologies will need to be paid for as long as the building is in use. Unfortunately, in many cases those maintenance costs exceed the amount you saved in your electricity bill.

Technology in real estate – here are five reasons to consider why less can be more

1 – High construction costs
Today, building technology is one of the biggest costs in a new construction.

2 – Short lifespan of the system
Unfortunately, many built-in technologies are less and less durable. In complex technical systems, there are many things that can break.

3 – High power consumption for unnecessary comfort
Whether timer-controlled lighting, sensors that measure the presence, automatic irrigation systems or the simple operation of complex technology chains – the “modern living” costs more electricity than some people think.

4 – Lack of workforce
At the first maintenance of the installed system, you might face a problem. No expert is available. Or maybe no one who is familiar with the complex system in your real estate. This not only leads to long waiting times for maintenance and repair, but also to increased prices for services requested.

5 – Increased electrosmog
Whether electrosmog can make you sick has not yet been scientifically clarified. Although, if a certain level of electrosmog can make you sick is still in question all agree that it is probably healthier to live with as little electrosmog as possible.

There are so many good reasons to pause and consider our approach to modern construction. We should ask ourselves how much technology we really need for comfortable living.

Keep in mind: maintenance-free systems will always save you time and money, in the construction process and beyond.

Are real estate agents paid on commission only?

The answer is: It depends.

If real estate agents are paid on commission only depends if the real estate agent is self-employed or not. If not, he would get a monthly wage from his employer plus his share in a deal when he sold something.

Being employed

Any real estate agent who does not own a business is usually an employee at a bank or at a real estate office.

This can be lucrative. Although in this case the commission is not particularly large, he receives a fixed salary each month.

The commission varies greatly with the performance of the broker. In most real estate offices the performance-related salary would be between 20 to 50 percent of the commission.

Being self-employed

An alternative to an employment with a monthly salary is being self-employment as a real estate agent.

There is no fixed income, but the commission per sale or rental is higher.

Real estate commissions are based on the price of the property. The commission for a real estate transaction is negotiable. It tends to range anywhere from 1% all the way up to 10%.

But don´t forget, as a freelance real estate agent you also have more expenses, such as costs forrunning your office and possibly paying staff. These costs will lessen your profits. In addition, self-employed need to look after their health insurance and Pay taxes (income tax, trade tax, etc.).

Real estate agents carry a high economic risk, because they are responsible for the accuracy of their statements. Basically, they work for free until they sell something. Some properties may not be sold because of unrealistic price expectations of the seller. Also, some may sell only after many months and countless viewing appointments. In addition, buyers who contact the seller directly to bypass the commission pose a commercial risk to the real estate agent.

Real Estate Investment and the Rate of Return

Once upon a time there was a gingerbread house. It was lovely decorated with lots and lots of candy…

How often we have heard it. “If something looks too good to be true, it probably is”. Unfortunately, a real estate investment is no fairy tale with a happy ever after. Especially when it comes to profit, we must be careful with promises of an unrealistic high rate of return.

But to know if something looks too good to be true, we first need to know what is a realistic rate of return for a real estate investment? And how is it calculated?

The rate of return shows how much profit in percent is made per year in relation to the money spend. Like this it is possible to compare one real estate investment to another or even compare it to other types of investments.

When a percentage value is mentioned as a return on real estate, a serious investor should first ask what return is meant. A distinction is made between gross and net return (or some also call it “cap rate” meaning Capitalization rate).

The gross return covers purchase costs and additional purchase costs, but not ongoing expenses such as administration and maintenance costs or taxes.

It is calculated like this
annual income divided by purchase price x 100 = gross return in %

The net Return includes the current expenses except taxes, so the net return is always lower than the gross return.

It is calculated like this
annual income minus all expenses divided by purchase price x 100 = Net return in %

These are just the very basic types of return – of course there are others, more complex (price return, money-weighted return, time-weighted return…).

Let´s see an example.

You bought a house for 150,000 EUR and you rent it out for 700 EUR a month. Your expenses for the house are 2,000 EUR per year.

This means that your gross return is 5,6 %.
(700 EUR x 12 month) / 150,000 EUR x 100 = 5,6 %

Your net return on the other hand is only 4,26 %.
[(700 EUR x 12 month) – 2,000 EUR] / 150,000 EUR x 100 = 4,26 %

As a result, to get a good idea of your profit it is always better to look at the net return.

What is an average rate of return?

Depending on your country and the type of real estate (residential or commercial) your average rate of return would probably be something between 4% and 10%. Of course, the bigger the rate the better. But again, if the rate of return is very high in a real estate investment you must be cautious. Also look out for the wording “possible” or “potential” yield of …. Meaning you will need to do something to achieve that – maybe even investing more money.

So, if the rate of return in a real estate investment looks too good to be true maybe take a closer look at the tenant of this nice “gingerbread house” or bite marks on the walls….

Real Estate Investment through renovation

It sounds simple: You take the plunge and buy a reasonably priced real estate with small “faults” that are easy to fix and without much effort.

To be successful in Real Estate Investment through renovation you make sure that the building is in a not-too-bad condition. It´s vital to make your research! The least you need to fix, the more you can save. Then it’s time to plan, what needs to be done to create a good layout, make it a charming, attractive property that you can rent and make money from?

You should pay particular attention to those things that attract potential tenants: Maybe a modern open plan kitchen, a gorgeous bathroom and a nice garden…

So far you have to invest money, otherwise you cannot earn anything.

After you finished the renovation of your real estate, you now have two options, depending on your financial needs.

If your goal is to raise a sum of money all at once, then look for a buyer for the house.

Coming up with the asking price is simple: your invested money and the targeted profit make up the purchase price at which you resell the property.

If you rather like to have a regular income from your real estate, then rent it out. Like this you have a guaranteed steady income over a longer period.

If you are experiencing financial difficulties, you always have your real estate and you can sell it anytime to make a larger amount of money.

The only question is: Is real estate investment through renovation not too risky?

The starting point is simple: the cheaper the renovation can be made, the higher the earning potential. Of course, handy people have an advantage here. If you can do a lot yourself, the costs are reduced.

Be balanced. You should not overestimate yourself and certainly not underestimate. With time and commitment, you can work out much yourself. In addition, the Internet is full of information and DIY tutorials.

Of course, you must invest time, but working on a house is fun and, above all, it’s a paid hobby.

Conclusion for Real Estate Investment through renovation

You must be aware that it will take a lot of patience and commitment.

Maybe you don´t find the right tenant straight away. But sooner or later that will be the case. Every entrepreneur, and one such is you if you want to make money, must take some risk. The chance that it will pay is high.

In summary, it can be said that investing money is never easy. However, investing in slightly older properties is a good way to invest your money.

Look around, if you have found the ideal house, go for it!

Here you can find some renovation projects from our site.