Tuesday, October 10, 2017

What For Sale By Owner Websites & Programs Don't Want You To Know

What For Sale By Owner Websites & Programs in Rhode Island Don't Want You To Know

By Emilio DiSpirito

For more information visit www.TheRoundTableRadio.com

  1. The owner of For Sale By Owner.com used a Realtor to sell his Manhatten Condo. 
  2. Upfront Fee's! 
    1. When working with a Realtor, more often than not, you will not pay anything upfront as Realtors get paid at the closing.
  3. Inferior Listing
    1. FSBO websites in Rhode Island limit the number of photos you can place online. Many times fewer than 10 are allowed. The RI Statewide MLS allows 40. 
    2. Often times, there is no connection to the MLS
      1. Multi Listing Service aka MLS is the website Realtors only have access to.
        1. MLS feeds to thousands of websites
        2. All of the Realtors see homes on MLS
        3. FSBO homes are hardly seen and websites have low traffic
  4. FSBO sites do not have to abide by any standards of Ethics
    1. Realtors have a strict code of ethics they are held to or will face harsh punishments by fines or dismemberment.
  5. FSBO statistics in Rhode Island & accross the Country (NAR 2015)
    1. FSBOs accounted for 8% of home sales in 2015. 
    2. The typical FSBO home sold for $185,000 compared to $240,000 for agent-assisted home sales.
  6. Most difficult tasks for For Sale By Owners in RI
    1. Getting the right price: 18%
    2. Preparing/fixing up home for sale: 13%
    3. Understanding and performing paperwork: 12%
    4. Selling within the planned length of time: 3%
    5. Having enough time to devote to all aspects of the sale: 3%
  7. Where are the buyers?
    1. 88% of all buyers used a Realtor.
      1. That's nearly 9 out of 10 buyers 
  8. Why is FSBO an awful idea?
    1. Cutting yourself short with exposure. Less exposure means home sits longer and nets less.
    2. Buyers and Realtors avoid FSBO because of uncertainty. 
    3. When working with a buyer, Realtors will be forced to do both sides of the transaction without compensation. FSBO need step by step instruction to do the sale. 
    4. FSBO are negotiating against industry professionals. Who will win? Someone who does this 365 days per year for a dozen years or someone who is selling their home?
      1. Main reason why the typical FSBO listing sold 23% less than a Realtor listing!! That is $46,000 on a $200,000 home!!!! 
        1. $200,000 less Realtor commission of 6% = $188,000 ($34,000+)
(According to NAR 2015 statistics). 

Tuesday, September 26, 2017

Selling a home fast in Rhode Island

Selling a home fast in Rhode Island 

By Emilio DiSpirito Licensed Rhode Island Realtor

Homes that sell in the first 2 weeks on market sell at or above list price on average! This is a fact!!
So.. In order to take advantage of this market and sell a home fast and highest in price, here is what the experts say you need to do! 

  1. Select the best-qualified Realtor to sell your home!! Using a Realtor to sell your home will net you 12% more than selling For Sale By Owner and will allow a true real estate professional guide you through the process while you worry about where you are going and packing! 
    1. Learn how to find the best Realtor to sell your RI home
  2. Make sure to prepare your home properly!! 
    1. Pre-List Home Inspections are vital!! Fixing the red flags and items like peeling paint, busted heating system, mold or leaking pipes will allow buyers in various programs to obtain financing and will increase your bottom line. 
    2. Declutter, depersonalize and stage your home in order to sell it!! Buyers can't see past all your "stuff"!! Show off the room space at its biggest and best by taking the advice of a professional!
  3. Understand the market we are in today! Make sure you are educated so that you are making informed decisions! 
  4. Price your home to sell. Don't list your home to sit! 
    1. According to the National Association of Realtors, homes that are priced too high for this market will sit for 17 weeks or longer and will sell at 93% of what you could have got!! 
      1. Watch 3 Reasons that will allow your home to sell for LESS (avoid these)! 
    2. Going with the Realtor who "gives you the highest price" without any REAL market data to support that advice is a trap!! 
      1. Sometimes sellers throw a price out to leave room for "negotiations"; would you rather set yourself up to have 2 to 3 buyers offer their highest and best or would you rather sit and wait for the phantom buyer to only lower your sale price months in when the hype of your home is gone?
        1. If you are 100% stuck on not taking professional advice and doing it your way, go with the best-qualified agent and ask them to list at that price. Make sure to have a strategy in place to adjust the price after the first two weeks if the home has not gone pending or received high volumes of traffic. 
        2. How emotions limit your success when selling a home
    3. KEY TAKEAWAY! Remember the first 2 weeks are the best time to net the most!! All the traffic comes in this time period!! 

For any additional advice on selling a RI or MA property, contact Emilio DiSpirito 401-359-2338 or email emiliodiv@gmail.com to set a consultation.

Or visit www.MyDreamHomeNow.com/sell for more information.

Sunday, September 10, 2017

How to Make $100,000 plus in Real Estate as a Realtor

How to Make $100,000 plus in Real Estate as a Realtor

From Ramen to Riches!! My Quick Guide For You!!

By Emilio DiSpirito, Realtor/Radio Show Host 

$100 Grand! It's probably the most generic amount of money the average person wishes they can earn and is more or less the bench mark in real estate which indicates the start to a successful business as a Realtor. 

When I started real estate 5 years back, there was not as much information as there is now and even with all the information out there, a lot of what we see is fairy tale bull shit. This is a quick guide and does not cover every little piece, however, you need to start somewhere, so keep reading! 

If your goal is to truly earn 6 figures in real estate, there is only one way to do it and it's to give it your all! Once you have a business that runs off referrals, it tends to get a bit easier. The first 3 to 5 years are gut wrenching yet satisfying when you hit your goals!! Chin up!! 

Side Note: If you are already in real estate and NOT earning $100,000 after 3 years.. what is going on? If you are a solo agent, try a team! Don't worry about splits as 100% of zero is still zero!!

Ready?! You better be. 

1.) Don't get advice on how to make $100,000 in real estate from someone who has not done it (that includes your broker or mentor!!) or from someone outside of the industry. Rule #1. Comprende? 

2.) Realize that you only know what you know.. and when you start real estate, you don't know squat about the subject. Be open minded and learn the following:
  • Learn How to Negotiate - Read "Secrets to Power Negotiating" by Roger Dawson. It will change your life. Right off the rip you will be negotiating higher commission splits from brokerage, team, and clients. Later on down the road when you are selling, you will bring your clients higher sales prices and organically your business will grow from kicking ass!! ;) trust me!! 
  • Skip the sales tactics and understand you are here to provide value. Read a new self-help business development book once per month. 
3.) Ditch your job and dive in!! GO FULL TIME or don't do it! 
  • It's simple. If you don't believe in you. Who will? No one. Part time agents give part time service. Horrible way to start. (Are you part time? Offended? Remeber, this blog is about how to make 6 figures). 
  • Head first - dive in, don't look back and follow the below steps.. (oh yea.. and get used to eating Ramen noodles with Taco Bell hot sauce. Sucks. But, it will motivate you to earn that filet!)
4.) Understand the numbers!!! First off - Every 97 no's will equal 3 yeses! Embrace the no's and keep going!! Let's talk about some other numbers though:
  • Let's use $250,000 as your median market sale price and multiply by 2.5% commission on seller & buyer side. You are on a 60% split. 
    • $6,250 Gross x 60% = $3,750 x 27 = $101,250
  • Focus on selling 2 homes per month (and 3 in May, June, October).
5.) I quit my job, have zero money to spend.. how do I get my leads for FREE?! 
  • Interview the top 5 Team Leaders in your area. They should supply leads and for zero upfront cost. They take their cut when you sell. Rinse and repeat. 
  • Not interested in a team? Ok do this (by the way if you are on a team you should also be doing this!):
    • DON'T DO THIS - "FARM" This is a term dinosaurs in our industry use to go randomly knock on pissed off home owners doors. Nothing really annoys people more than a real estate agent knocking on their door.. It's stupid, waste of time for what you get and your odds will suck. TARGET SELLERS WHO ARE ALREADY MOTIVATED!!
    • First off understand listings are your lifeblood in real estate. Each listing should get you another listing and 2 to 3 buyers. SO, GET LISTINGS!!
    • Set daily alerts for withdrawn listings and expired listings in MLS.
      •  Knock on the doors. These people are pissed their last agent did not sell their home and they are motivated sellers!! 
  • Call on FSBO - AKA For Sale By Owner!! (Another seller that is ready to sell!!) 
  • Ask agents in your brokerage to hold open houses in homes above the median range!! Often times buyers walking in are sellers!! Follow up with each guest and always provide value!!
    • Each guest could be a seller and buyer!! 
It's really that simple. Remember that listings are key!! Each listing will multiply your business x 3!! So how many listings will you need to sell 27 homes?! 

SIDE NOTE: Don't give advice to clients you would not take. Also, don't count your commission until the property closes! Focus less on the money and more on doing whats right and the productiviy of it all and the money will come. 

Leave your comments below and Subscribe to our YouTube for weekly content!! 

How to select a listing agent to sell your home

How to select a listing agent to sell your home

By Emilio DiSpirito, Realtor (Questions? emiliodiv@gmail.com)

When selling your home, if you do not have a direct referral from a friend or family who has used a specific Realtor, what do you do to find the best-qualified agent to sell your home?

In this blog we will uncover the best tips to find, interview and select the right agent to assist you in getting the highest sales price in the least amount of time! Please feel free to leave any comments that you feel can help our readers!

Rather watch the video? Click above and subscribe to our YouTube Channel for Great Weekly Content!

Finding & Scheduling Realtors to Interview

Tip #1 Interview 3 agents!

Tip #2 Where to find agents?

  • Do you continually see the same team/agent on signs in your area? Start there!
  • Google "Realtor Reviews "Rhode Island" (or your states name spelled out!)
    • Skip over the ads as they will lead you to sites that randomly connect you with agents.
    • Skim through reviews to make sure they are from actual clients and not colleagues, friends, and family. Make sure agent has many reviews. 
Tip # 3 Contact the 3 agents you have selected via phone call. If they do not pick up, leave a message. 
  • This will show you how responsive the agent is! Keep in mind you want a Realtor who sells a lot of homes and they may be with clients. Give them half a day on initial contact before giving up on them! 
Tip # 4 Pick one or two days and scatter your interviews. Give each agent at least 2.5 hours to walk through the home with you and to go over market numbers and strategy. 

What to look for and ask real estate agent during the interview 

Tip # 5 Be observant! Look for signs that this agent has your best interest!
  • Does agent listen during the walk through of the home or are they doing all the talking?
  • Is agent making comments about the home? Asking questions about why you chose the home?
    • If so, this agent is connecting the dots to understand why you purchased the property so he/she knows how to sell it to buyers. 
    • If not, do not disqualify agent, as they may have a different process. Ask them if that new heating system or new roof will add value to the home. See if they stutter or if they answer it directly. Stutter may indicate that the agent has low experience. 
Tip # 6 Don't be shy! This is a business transaction and you have 1 goal! To get the home sold at the highest price within a reasonable time period!
  • Ask the agent where they rank in the state or county. If they can't answer, have them run numbers and send you a report. If they do not know how.. You may want to think before using a Realtor that does not know how to use the MLS (Multi Listings Service - software Realtors use to advertise your home to the world). 
    • Ranking report should look something like Exhibit A
  • Ask if the agent is FULL TIME!! A part time agent will not be able to field all the calls, invest the proper money or time in the marketing. The service, support, and experience will indeed be sub par compared to a seasoned full-time Realtor.
  • Ask if the Realtor is part of a team or a solo agent.
    • With nearly 200 steps in the transaction, you want someone who has the support staff that can handle all the moving parts!

Tip# 7 Marketing - Ask agent for a list of exactly what they will do for marketing. Ask if there are any upfront charges to retain their services. 

Tip # 8 Pricing - It's simple. Every home has a fair market value. Going with the agent "with the best price" and without any data supporting that price is the most ignorant thing you can do for yourself and your wallet. Homes that are overpriced get much less traffic and sell for less. "What about wiggle room for negotiations?" - Well.. would you rather have 17 buyers see your home or 2? Which one do you think will allow your home to sell for a higher price? It's a fact that homes listed at or slightly above/below (depending on area and local market conditions) of fair market value, will indeed sell at or above list price in the first 2 weeks on market on national average. 

For more information, please feel free to leave a comment below or email me direct emiliodiv@gmail.com!! Thanks! 

Tuesday, August 8, 2017

How Much Money Do Realtors Make?

How Much Money Do Realtors Make?

By Emilio DiSpirito, Realtor

Watch the video to quickly learn how much Realtors and Real Estate Agents actually make!

Often times the general public will view Realtors as making money hands over fist!! Turn on the TV, see agents pull up in fancy cars, in the best attire and show million dollar homes... Hmmm.. not sure how that fits in with reality when according to Salary.com, the average Realtor in Rhode Island and Massachusettes earns a whopping income of $43,000!! 

$43,000 a year.. aka $827 per week! But Wait!!! Do Realtors get benefits? Are they employees? How many hours a week does a Realtor work? How do Realtors get paid when a transaction falls apart? Glad you asked! 

The answer to all of the questions below is NO!
  • Realtors are considered Self-Employed and pay their own income and social security taxes!
    • Realtors pay their own social security tax which is 12.4% 
    • Now we are at $37,668
    • Lets factor in $5226 in Federal income taxes
      • Realtor is down to (not including any deductions) $32,442
    • How about State Taxes? 
      • Realtor is now down $1612 in Rhode Island
        • $30,830 
      • Realtor is now down $2193 in Massachusettes
        • $30,249
    • How about Health Insurance?! 
So when we deduct taxes and health insurance, your average Realtor is making $25,353! Per year!!! This amount does not include business expenses, brokerage fee's, gas, car payments, car insurance, mortgage or anything else associated with being able to live!!

So basically less taxes and health insurance only, the average Realtor makes $487..56 per 60 hour work week. Aka $8.13 per hour!!!

Isn't minimum wage $9.60 per hour in RI and $11.00 an hour in MA?

  • Realtors make -$1.47 per hour less than Rhode Island minimum wage
  • Realtors make $2.87 less per hour than Massachusettes minimum wage
Imagine that a highly trained and experienced real estate agent makes less than a high school student flipping a hamburger or folding clothes on a retail display.. insane!! 

Want a job in real estate? Haha Comment Below and SUBSCRIBE to our YouTube here -->>>

*Speak with a local accountant for details on taxes, etc. 

Tuesday, August 1, 2017

Hidden Costs of Home Ownership the Media Won't Tell You

Hidden Costs of Home Ownership the Mainstream Media Won't Talk About

By Emilio DiSpirito, Realtor & Host of The Round Table Real Estate Simplified www.TheRoundTableRadio.com

The American Dream of home ownership is alive and well!! It seems like everyone you know if off buying a home! Here are an estimated list of 7 hidden costs of home ownership that you may not have thought of!! Buckle down and budget accordingly!!

  • Home Inspections, Appraisal, and Closing Costs (Median home $249,900)

      • Mechanical, Structural & Pest Inspection Estimated Cost $400 to $600 
      • Septic Inspection $150 to $200
      • Well Inspection 
        • Flow Test $150 to $200
        • Water Quality Test $100 to $150
        • Radon Water Test $100 to $150
      • Radon Inspection $150 to $200
      • Total Estimated Home Inspection Costs? $0 to $1500

    • Appraisal cost $450 to $600

    • Closing costs associated with buying a home
      • Title insurance 
        • Lenders title insurance $600 to $800
        • Owners title insurance policy $800 to $1000
      • Attorney fee for preparation of documents $900 to $1200
      • Recording Fees for Town $175
      • Homeowners Insurance $1400
      • Escrow for Property Taxes $1125
      • Fuel Adjustments (oil and or propane)
      • Mortgage Fees
        • Processing fee $1000
        • Pre paid interest $20
        • Flood Certification fee $7
        • Credit Report $50
    • TOTAL: $6482 to $8832

  • Packing, Storing, Moving! (For average 1500 sq ft home)
    • Boxes, tape, packing supplies $20 to $350
    • Monthly storage unit $0 to $200
    • Moving
      • Professional moving company $2000
      • Uhaul Tuck $200
        • Pizza & Beer for everyone $75
    • Total: $295 to $2550
  • Sewage Costs

    • Septic pump $250 every 2 years
    • or Sewer Bill Quarterly $200 ($800 per year)
      • Sewer Assessment?
  • Water Costs
    • Water Treatment for wells?
  • Lawn Care & Yard Maintenance 
    • $500 to $2000 per year
  • Basic Home Maintenance $1200 per year
  • The Internet $1080 per year
  • Utilities (Heat & Electric) $2500 per year
  • Pest Control $100 to $1200 per year
  • Other Total: $6680 to $8780
Items that can affect your equity position:
  • Surrounding area land. Could it be developed into anything? Commercial or Low or High-End Residential High Rise?
  • Being the biggest and best home in the neighborhood.
Homeowner bills may vary and there may be less or more than what was mentioned above. It's vital to understand the cost of home ownership and to plan accordingly to maintain your personal savings, a life of fun and a healthy life!

For more information on buying or selling real estate visit www.TheRoundTableRadio.com

Thursday, April 20, 2017

Automated Home Values, Assessed Value, Fair Market Values and Appraisals... Which One Matters?

Zestimates and automated valuations, are they accurate?

By Emilio DiSpirito
401-359-2338 Top Rhode Island Realtor

The Zestimate is an algorithm designed by Zillow, a consumer real estate search portal, that was created to give homeowners and buyers automated valuations on real estate. Often times, you will see for sale by owner listings on Zillow with the exact same number as this computer generated amount.

I have to say, it is still in nearly all cases far from accurate. I do believe one-day technology will come to a point where online values will be more accurate. For the foreseeable future, this will not be a credible source.

There is ONLY one number that sellers should be concerned with and that is the appraised value of their home! An appraisal is the best measure of what a home is worth and is performed by a licensed appraiser who aside from pulling comparable recent solds in the local market, picks homes on dozens of other parameters such as condition, layout, amenities, specific location which includes lot and surroundings, finishes, etc.

When looking to list your home for sale, I do not recommend always hiring an appraiser. Appraisals, and rightfully so, can cost between $350 and $600 for most residential applications. Consulting with a Realtor who has extensive market knowledge and area sales is the absolute best practice for finding not only what your home is worth today, but your homes projected value and what it may sell for "tomorrow". Nearly all real estate agents will provide this as a complimentary service, in efforts to assist homeowners in exploring if now is the proper time to sell.

Other types of home valuations:

  • Assessed Value - Is the estimated home value of your property when compared to comparable sales in your municipality. This value is then multiplied by the "mil rate" in which the town sets in order to run many aspects of the town such as local government expenses, schools, libraries, police, fire, etc. Assessed value in a seller's market is often lower, as the values trail a year or 2 behind the market. 
    • A great idea when having a Realtor price your property is to see where the median home sale is percentage wise of the median assessed value in your area!! It's a great way to cross-check your home's fair market value in many cases!! 
  • Fair Market Value - Is the value set by the market. There is no argument to be had that comparable sales, local market conditions, overall home and site condition, as well as supply and demand, will set this value. Pricing your home at or just a hair above (1% to 3% depending on demand), will allow your property to sell in a faster timeframe as well as higher in price. 
    • Properties that sit on the market will sell for less. Buyers either know its overpriced or begin to wonder what is wrong with the property. 
  • "Here Say Pricing" - When a contractor, neighbor, friend that purchased a year ago or someone outside of the industry gives you unqualified information on housing prices. Do not base your decision on placing an offer on a home or price to list a home by what the mailman says. You will lose. 

Sellers in Rhode Island & Massachusetts can click my website and a top local agent from my team will assist you in getting your homes fair market value. www.MyDreamHomeNow.com/sell

For more information, catch my show each Sunday at 10 am on Newsradio 920! www.TheRoundTableRadio.com