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| Tips
for real estate |
| When
you are ready to think about buying or selling your property, you
need to ask yourself the following questions: |
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Do
you have the time, energy, sources of information and contacts to
do the job yourself? |
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If
you were one of the 'Do-it-yourself' people, would the results be
as good or better than they would be if you had professional
assistance? |
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Would
it have gone smoother? |
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Would
it have given you more personal time? |
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Would
you have purchased for less, or sold for more, if real
estate agent was involved? |
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Read
the following information and learn how a real estate agent can
help you understand everything you need to know about a real
estate transaction.
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Finding:
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Once
you know how much you can and want to invest, the next step is to
find the properties that most nearly fit your needs. this is the
time to choose a real estate agent. When picking a real state
agent, look for one who is a member of Bangalore Realtors
Association-India, who will be the member of FIABCI an
International Real Estate Federation headquartered at Paris and
having offices all over the world, and all members agree to abide
by a Code of Ethics. A BRAI member has many resources to assist
you in that search. Sometimes the property you are seeking
is available but not actively advertised in the market, and it
will take some investigation by an agent to find all available
properties.
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Selling
Real Estate
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| Pricing
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This
process generally begins with a determination of a reasonable
asking price. Your real estate agent can give you up-to-date
information on what is happening in the marketplace and the price,
financing, terms and condition of competing properties. These are
key factors in getting your property sold at the best price,
quickly and with minimum hassle.
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| Marketing: |
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The
next step is a marketing plan. Often, your agent can recommend
repairs or cosmetic work that will significantly enhance the
salability of the property. Marketing includes the exposure of
your property to other real estate agents and the public. In many
markets across the country, over 50% of real estate sales are
cooperative sales; that is, a real estate agent other than yours
brings in the buyer. Your agent acts as the marketing coordinator,
disbursing information about your property to other real Realtors
Association-India's Code of Ethics requires members to utilize
these cooperative relationships when they benefit their clients.
Advertising
is part of marketing. The choice of media and frequency of
advertising depend a lot on the property and specific market. For
example, in some areas, newspaper advertising generates phone
calls to the real estate office.
Overexposure
of a property in any media may give a buyer the impression the
property is distressed or the seller is desperate. Your real
estate agent will know when, where and how to advertise your
property.
Independent
studies shows that most real estate sales are the result of agent
contacts through previous clients, referrals, friends and family
and personal contacts.
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| Security: |
| When
the property is marketed with the agent help, you do not have to
allow strangers into your home. Agents will generally pre-screen
and accompany qualified prospects through your property. |
| Negotiating: |
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The
negotiation process deals with much the same issues for both
buyers and sellers, as noted above under the buying process. Your
agent can help you objectively evaluate every buyer's proposal
without compromising your marketing position. This initial
agreement is only the beginning of a process of appraisals,
inspections and financing - a lot of possible pitfalls. Your
agent with the help of an advocate can help you write a legally
binding, win-win agreement that will be more likely to make it
through the process.
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The
Buying Process |
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The
process of buying a home or investment generally starts with
determining your buying power, that is, your financial reserves
plus your borrowing capacity. If you give a real estate agent some
basic information about your available savings, income and current
debt, they can refer you to lenders best qualified to help you.
Most lenders -- banks and housing finance companies.
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| Selecting: |
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Your
job is to make the final selection of the right property for you.
This is when excitement and emotion run high. Your real estate
agent can assist you in the selection process by providing
objective information about each property. Agents who are BRAI
members have access to a variety of informational resources. BRAI
members can provide local community information on utilities,
zoning, schools etc. There are two things you'll want to know.
First, will the property provide the environment I want for a home
or investment ? Second, will the property have resale value when I
am ready to sell ?
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| Negotiating
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There
are a myriad of negotiating factors, including, but not limited to
price, financing, terms, date of possession, and often the
inclusion or exclusion of repairs and interiors. The purchase
agreement should also provide a period of time for you to complete
the appropriate authorities formalities (371) inspection and
investigations of the property before you are bound to complete
the purchase. i.e. for properties valued above Rs.25 lakhs.
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| Due
Diligence: |
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Before
negotiation, it is time to complete the evaluation of the
property. Depending on the area and property, your agent can
assist you in finding qualified responsible professional advocates
to provide you with written reports on the title of the property.
Title indicates ownership of property and can be mired in
confusing status of past owners or rights of access. The title to
most properties will have some limitations' for example, easements
(access rights) for utilities. Your advocate can help you resolve
issues that might cause problems at a later date.
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| Financing: |
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As
soon as you are reasonably sure the property is right for you, the
process of obtaining financing begins. Your agent can help you in
understanding different financing options and in identifying
financial institutes with best financial terms of payment.
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| Finalizing: |
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Finalizing
of sale deed, every area has its own unique customs. Again, your
real estate agent can guide you through this process by taking you
to an advocate and making sure the entire legal process and
everything else flows together smoothly. The required paperwork
alone is overwhelming for most sellers. Your agent is the beat
person to objectively help you resolve these issues and move the
transaction to closing of sale deed.
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| How
do real estate agents get paid ? |
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Real
estate agents or brokers are generally paid through the sales
commission paid by the seller / buyer when a transaction closes.
Agents have expenses and financial obligations just like you, so
it will be to your mutual benefit if you choose a real estate
agent and stick with that person. The agent will respect your
loyalty and respond with a sincere commitment to you.
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| Why
a member of BRAI? |
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All
real estate agents are not the same. All Bangalore Realtors
Association India members proudly display the BRAI logo on their
business card or other marketing and sales literature. BRAI
members are committed to treat all parties to a transaction
honestly. BRAI members subscribe to a strict code of ethics and
are expected to maintain a higher level of knowledge of the
process of buying and selling real estate.
Using
an agent whoa is a BRAI member.
You
be the judge !
Real
Estate transactions involve one of the biggest financial
investments most people experience in their lifetime. Transactions
today usually exceed Rs.10,00.000. If you had a Rs.10,00,00 income
tax problem, would you attempt to deal with a Chartered
Accountant? If you had a Rs.10,00,000 legal question, would you
deal with it without the help of an advocate ? Considering the
small upside cost and the large downside risk, it would be foolish
to consider a deal in real estate without the professional
assistance of a BRAI member !
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