Real Estate Rentals & Broker Fees
Posted on 20. Jun, 2009 by Joshua Ferris in Blog, Industry, real estate
I’ve been handling a lot of rental transactions lately and one thing I always ask before getting started is “Have you rented a home through a broker in the past?” This seemingly innocuous question seems to drive responses from a simple “Yes” to a “No, why, do I have to pay for something?!”
As a renter myself, I know what it’s like to try to find a decent rental these days. Either they end up being overpriced or in a bad area or just don’t exist. In the suburbs especially, a good rental is very hard to find. You could rent in an apartment community but then you’re stuck with single level living and possibly less than desirable neighbors. The barrier for entry for apartments is significantly lower than, say, owning a home where you need a substantial down payment to buy the home. More often than not a homeowner will use a real estate broker to market and find a renter for their home.
The great thing about privately owned rentals is that you are more likely to find a home in a community of homeowners who take pride in ownership and want to maintain the quality of the neighborhood to improve their resale value should they need to sell. This is the key difference between apartment buildings and owning or renting a home owned privately.
This brings me to the golden egg of rentals: rentals available through real estate brokers. When a broker takes over the process of marketing the rental, finding and qualifying a tenant and, finally, getting a good tenant into the home it takes a lot of time. And money.
The issue that most first time broker rental clients seem to have is reasoning the cost of paying a broker fee to move into one of these rentals. I’m a firm believer that this is due to the fact that there is no consistency in the cost of renting through a broker. In the suburbs of New York City the tenant is expected to pay the brokers involved in a rental transaction a fee in the amount of one month’s rent in addition to other expenses associated with the initial rental. In Manhattan the tenant could be expected to pay 10% or more in commissions to obtain a rental. And then there are instances around the country where the would-be landlord pays for all broker fees.
Confusion aside, I think it should be noted that broker rentals are an option. You’re not required to find rentals through a broker but there are benefits to doing so such as:
- The homeowner is verified and brokers go through the motions of learning more about the home, marketing the property and handling the pricing and negotiations for the home. Most for rent by owner or craigslist ads aren’t going to give you the insight on pricing that a broker would. Further, with the recent increase in rental scams on sites like craigslist, finding a rental through a broker can be a more secure experience.
- A broker will sort and analyze the rentals in their MLS and then send you the homes that meet your needs.
- Rental brokers have experience with different condominium communities and may have seen the property in question in the past. This will give you greater insight into each rental and save you time when looking for your next place.
But, as I mentioned, broker rentals aren’t your only option. You can still search for rentals using more DIY methods like craigslist. We also have a list of apartment communities with no broker fees here. You won’t have the professional oversight or potential negotiation power that you would get with a real estate broker but that’s why you’re paying for the broker in the first place.
Now Is A Great Time To Buy! Buy Now!
Posted on 08. May, 2009 by Joshua Ferris in Blog, Featured, Industry, real estate
Image Credit: TheTruthAbout
I say that half jokingly ! 
I was talking to Marc Davison on Twitter about his distaste for NAR’s extreme overuse of the “Now is a great time to buy!” recently and it made me think about it. Marc’s position was that they were saying the same thing four years ago and NAR is losing credibility (what little they have) for saying it during a turbulent housing market.
I actually agree with Marc’s point 100% but NAR is right too. Four years ago it was a great time to buy because interest rates were low and homes were appreciating at an unprecedented level. It seemed like the smartest investment on earth.
Now during a depressed market it’s a great time to buy because rates are lower than they’ve ever been and prices have plunged making homes extremely affordable.
I think the issue is that using a vague statement like “Now is a great time to buy!” can be misleading. If NAR wants to regain credibility they should say WHY now is a great time to buy.
For example:
“Now is a great time to buy a new home because inventory is high and builders are offering unheard of incentives.”
“Now is a great time to buy because homes around the country are rapidly appreciating.”
Consumers are looking for authenticity at a time when corporations and industry associations are being seen as villains. Providing some dose of reality and truth in their ads as opposed to blasting an overly chummy message repeatedly is the only way NAR’s ad campaigns can begin to build credibility with consumers again.
Top 10 Reasons You're Not Being Followed Back on Twitter
Posted on 06. May, 2009 by Joshua Ferris in Blog, Featured, Industry
When you follow someone they often want to reciprocate the follow by learning more about who you are. After all, you’re interested in them and maybe they could be interested in you. Because Twitter is open to interpretation on how it should be used to your benefit I’ve picked up on the ways I think others misuse it. Here are ten reasons why people aren’t following you back on Twitter:
1. You don’t have enough updates. - Typically the first sign of a spammer, having only a few updates (especially all in one day) makes it hard for people to gauge what kind of person you are. Are you interesting? Are you worth following? One update that says “college apps” or “sunny day today” won’t convince the masses that you have something to contribute.
2. You tweet too many links. - A pet peeve of mine and many others, posting too many tweets linking to something off Twitter can give others the impression that you have nothing unique to say. People follow you on Twitter to hear what YOU have to say.
3. Your tweets are mostly inspirational quotes. – All aboard! Twitter’s 140 character limit seems ripe for quote abuse. The number of Tweeters hopping on the inspirational quote train is staggering. If I want to be inspired by a quote I’ll google inspirational quotes. Live by these words: You offer zero value if you just tweet quotes from other people.
4. You are only promoting your business and everyone can tell. - I don’t mind it when someone promotes their business on Twitter when appropriate. I selectively pimp my real estate projects, Darren Rowse tweets his blog articles and so on. But if you overdo your Twitter page with outlandish get rich blogging or SEO guru crap no one is going to listen to what you have to say. Loud backgrounds/tweets are like loud words and no one likes being yelled at. Especially when it’s a sales pitch!
5. Your username sounds like a company. - An almost instantaneous decision not to follow someone happens when I get a follow notification from someone with the username of a company. This is even more true when it’s a company I’ve never heard of or done business with. Unless you’re @mailchimp showcasing cool uses for email marketing or @comcastcares following me to help solve my cable problem I’m not likely to be interested in what your company is all about.
6. You ARE a spammer. – This really should go without saying but people aren’t stupid. We know when we see spam on Twitter (lately the GirlNameDateofBirth username types). You’re wasting your time, no one cares.
7. Your bio is empty. – This rings true with new users more than established tweeters but knowing who you are and what you’re about is a big deal to other Twitter users. Fill out your bio with truthful details about who you are and people are more likely to take an interest in you. By the way, “Follow me to learn how to make…” is not a good way to make a name for yourself on Twitter. Just sayin’.
8. Your following/follower count is unbalanced. - Nothing says self-interest more than the guy/gal following 30,000 people and being followed by 8. I don’t endorse monitoring your following/follower ratio constantly but your count also shouldn’t look like a cliff when compared.
9. You don’t have an avatar. – Another signature of spammers and shady types, no avatar makes it look like you are new to the service or have something to hide. You don’t need a Paul Wall grille shot but having an avatar matters. Go get one!
10. Your tweets are overly negative. – Much to the chagrin of pessimists everywhere, tweeting the bad side of things isn’t exactly going to brighten someone else’s day when they read your tweets. Bad stuff happens but your Dottie Downer tweets shouldn’t outnumber the funny/positive things you have to say. I’m guilty of over tweeting the negative myself so I sometimes opt not to tweet at all.
Twitter is like a giant conversation and everyone has something to contribute. Using the tips above you can increase your chances of finding and engaging other Twitter users who like what you have to offer. And yes, that’s good for business too.
Image Credit: Noël Zia Lee
Did I miss anything? Add your tips in the comments below!
Four Real Estate Video Pioneers to Watch
Posted on 30. Apr, 2009 by Joshua Ferris in Blog, Industry, new york, real estate
Real estate video, when done right, can be amazing and offer insight into a property or place that might have otherwise been lost in photos. These four real estate video pioneers from all over North America have raised the bar on what an independent agent is capable of.
1. Mike Lefebvre -- Greater Boston Area, MA Real Estate Agent
Mike Lefebvre gained national attention with his entry and subsequent win for the Century 21 video competition held in 2008. By crafting a story of intrigue while folding in the details of his listing, Lefebvre was able to sell his listing quickly. With all of the press there is no doubt Mike was busy listing many more homes after his video victory. Check out the prize winning video below:
You can see more of Mike Lefebvre‘s videos on his website. Mike is also on Twitter.
2. Robin Greenbaum -- New York, NY Real Estate Agent
I’ve touched on the price of artifice (inspired by Rob Hahn’s entry of the same name), or the cost of creating professional quality videos, in the past. For most brokerages and agents it’s next to impossible to mix professional video values with the authenticity of “amateur” video hosts. Such a limitation doesn’t exist for Robin Greenbaum who manages to successfully blend the two into a cohesive, enjoyable video tour of one of her listings. Here’s one of Robin’s listing videos that breaks the mold:
Robin can be reached on Twitter.
3. Rick & Ines Hegedus-Garcia -- Miami, FL Real Estate Team
This Miami real estate team has taken Miami’s sexy lifestyle and shared it with the world through blogging and online videos. In the video below Ines describes one of her favorite Miami restaurants and reviews their Mojitos. What’s more Miami than mojitos? The video is successful for two reasons. First, it gives home buyers a peek at the Miami lifestyle they would enjoy if they moved to the Miami area. Second, it showcases Ines’ personality and, should the viewer want to buy a home in the area, will build rapport and make them feel like they already know Ines.
Ines is reachable via Twitter.
4. Kye Grace -- Vancouver Real Estate Specialist
Kye Grace set a new innovation milestone in real estate video with his 72 hour open house. Grace was able to garner international media attention, exposure for his listing (which sold shortly after the open house) and establish himself as an internet marketing specialist. In addition to the 72 hour open house, Kye is also well known for his popular Propertyegg.tv online show where Kye and special guests discuss real estate related topics.
Catch the latest news from Kye Grace by following him on Twitter.
If you’re new to real estate video or don’t know where to begin you could start by checking out how each of the pioneers above are carving their own path in the field. Don’t be afraid to go out there and experiment with different show formats, video hosting styles and topics. As you can see above, each video has its own standout features that make them fun to watch.
Are there other real estate video pioneers you would like to see mentioned? Leave me a comment below or get in touch with me on Twitter and I’ll gladly update the list.
8 of the Most Stunning (and Expensive) Penthouses in America
Posted on 11. Feb, 2009 by Joshua Ferris in Blog, Featured, Industry, new york, real estate
The world is full of creatively designed homes but it’s not until you’re on top of the world, literally, that you see what creative design is truly capable of. The idea of living at the pinnacle of skyscrapers embodies the power, prestige and opulence that most of us only begin to dream of.
Have a look at our list of the eight most stunning (and expensive) penthouses in America below:
1. 15 Central Park West Penthouse – New York, New York
It should come as no surprise that the most expensive penthouse on our list, coming in at $47.5 million, is located in New York City with uninterrupted views of Central Park. This penthouse features 14 foot ceilings and over 5,200 sqft of living space. To sweeten the deal, you also get a 1,222 sqft ground floor suite with private street access for the owner’s staff offices.
Learn more about the 15 Central Park West Penthouse.
2. Apogee Penthouse – Miami, Florida
When you live in South Beach living in a penthouse just isn’t enough. Along comes the Apogee Penthouse to blow competing penthouses out of the water with 6,583 sqft of living space and over 11,000 sqft of outdoor living space. On the roof of the penthouse there is a private pool area with 360-degree views of Miami and the ocean. Asking price rings in at $22 million.
3. Luxuria Penthouse – Boca Raton, Florida
The Luxuria Penthouse is one of 24 homes in a ten-story building along the Boca Raton coastline. The above photo showcases the grand lobby with its art covered walls, golden staircases and gravity defying water wall as the centerpiece of it all.
007′s will be right at home with the building’s state of the art security system which features thumbprint recognition technology that leads to resident-only elevator lobbies while luxophiles won’t have to lift a finger to do nearly anything as the building also offers an on-site concierge and 24 hour valet service. The Luxuria Penthouse checks in at a cool $12.5 million.
4. Mandarin Oriental Penthouse – Boston, Massachusetts
Listed as five-star living with full hotel services, valet service and 180-degree views overlooking Fenway Park, the Back Bay, Charles River to Cambridge and the Zakim Bridge, the Mandarin Oriental Penthouse encompasses 5,100 sq.ft. of living space. The developer of the Mandarin Oriental is asking $9.95 million for the penthouse.
5. 2999 Kalakaua Ave Penthouse - Honolulu, Hawaii
2999 Kalakaua‘s tropical setting is the perfect spot for penthouse views of the ocean. This newly renovated 3,445 sqft three bedroom penthouse overlooks the Pacific Ocean and Diamond Head State Monument offering panoramic views of nature. Current asking price: $5.2 million.
6. 100 Seagrove Lane Penthouse – Saratoga, Florida
Another stunning entry from Florida, the penthouse at 100 Seagrove comes with a rooftop garden overlooking the Gulf of Mexico and private elevator access to a two car garage. There are only twelve homes in the entire building making it a very private retreat. On the market for $4.25 million.
7. Endeavour Penthouse – Seabrook, Texas
The Endeavour Penthouse includes numerous outdoor spaces including a 500 sq.ft. balcony overlooking Clear Lake and a 1,200 sq.ft. roof top terrace. The penthouse for fitness buffs, the Endeavour Penthouse also comes with an infinity pool, resistance pool, hot tub and outdoor kitchen. Asking $3.6 Million.
8. 2211 E Camelback Road Penthouse – Phoenix, Arizona
This building is most well known for being the residence of Senator John McCain and his family though they do not live in the penthouse. 2211 E. Camelback Rd’s penthouse features a master bedroom that is over twenty-two feet long, views of Phoenix and access to the building’s ultra-luxury amenities like its roof-top pool, spa, concierge and 24 hour valet service. Oh, and you get free Starbucks coffee Monday through Friday.
How much will it cost you to live atop the same building as the McCains? A mere $3.45 million.
Each of the eight penthouses above offer unique characteristics while offering what is quickly becoming the platinum standard of ultra luxury living with services 24 hour valet, state of the art security systems that utilize fingerprint recognition technology, concierge, private resident-only lobbies, hotel amenities and roof top retreats.