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Category: Rentals

What’s available and how to get it, tailored to the special needs of renters.

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How are rental agents paid?

I just received this:

I am a student interested in the field of real estate. I understand that a real estate agent makes money on the sale of a property based upon a percentage of the final sale price. I was wondering how a real estate agent makes money on a lease of a rental property?

Thanks for the help, Jim

A landlord lists his property with a real estate agent for a number of reasons. The landlord benefits from the agent's experience and connections, but also because the agent has access to the MLS (or Multiple Listing Service) and other venues for promoting the rental property. There are many ways that a rental listing can be charged, but most usually the landlord agrees to pay a portion of the first month's rent to the listing agent.  The more the rent, the higher the commission paid.  Landlords are generally happy to pay this because a listing agent saves them time and money (as compared to ads in the paper plus dealing with calls from unqualified renters). If the renter has his own agent, the listing agent will pay a predetermined portion of the commission to the selling agent (as the renter's agent is called).  Please let me know if this helps. You, as a potential renter in {Location_Name}, need to know what you need.  Some people are simply looking for a place to eat, sleep and shower while others are looking for a lifestyle or a space that will accommodate various activities, such as working, entertaining and hobbies. Think about what the space needs to do for you and make a list of your specific requirements. For example, do you need built in kitchen appliances? Is a washer and dryer essential or is there a laundry nearby? Do you need easy access to the metro or do you need parking for a car? These are questions only you can answer. And then of course there is the all-important budget. What will your money get you and what are you prepared to sacrifice to stay within budget? Remember when you assess your requirements to differentiate between wants and needs because unfortunately you will most likely have to compromise somewhere. Your needs are the things you cannot do without and your wants are those little extras that make your life more comfortable but are not essential. Take your list of requirements and mark your wants and needs in different colors and then rank them in order of importance. Remember your needs are always more important than your wants. [Read more about rental agents] For more information or to set up an appointment call Stuart at (703)765-0300.

What do real estate agents do?

When selling property, brokers and agents arrange for title searches to verify ownership and for meetings between buyers and sellers during which they agree to the details of the transactions and in a final meeting, the new owners take possession of the property. They also may help to arrange favorable financing from a lender for the prospective buyer; often, this makes the difference between success and failure in closing a sale. In some cases, brokers and agents assume primary responsibility for closing sales; in others, lawyers or lenders do.

Duties to Sellers

Agents and brokers spend a significant amount of time looking for properties to sell. They obtain listings---agreements by owners to place properties for sale with the firm. When listing a property for sale, agents and brokers compare the listed property with similar properties that recently sold, in order to determine a competitive market price for the property. Following the sale of the property, both the agent who sold it and the agent who obtained the listing receive a portion of the commission. Thus, agents who sell a property that they themselves have listed can increase their commission. The listing firm and its agents must
  • promote the sellers' best interests
  • be loyal to the seller
  • follow the sellers' lawful instructions
  • provide the seller with all material facts that could influence your decisions
  • use reasonable skill, care and diligence, and
  • account for all monies they handle for the seller.
Once you have signed the listing agreement, the firm and its agents may not give any confidential information about you to prospective buyers or their agents without your permission so long as they represent you.

Duties to Buyers

If the real estate firm and its agents represent you, they must
  • promote the buyers' best interests
  • be loyal to the buyer
  • follow the buyers' lawful instructions
  • provide the buyer with all material facts that could influence your decisions
  • use reasonable skill, care and diligence, and
  • account for all monies handled for the buyer.
Before showing residential properties to potential buyers, agents meet with them to get an idea of the type of home the buyers would like. In this prequalifying phase, the agent determines how much the buyers can afford to spend. In addition, the agent and the buyer usually sign a loyalty contract, which states that the agent will be the only one to show houses to the buyer. An agent or broker then generates lists of properties for sale, their location and description, and available sources of financing. In some cases, agents and brokers use computers to give buyers a virtual tour of properties that interest them. Agents may meet several times with prospective buyers to discuss and visit available properties. Agents identify and emphasize the most pertinent selling points. To a young family looking for a house, for example, they may emphasize the convenient floor plan, the area's low crime rate, and the proximity to schools and shopping. To a potential investor, they may point out the tax advantages of owning a rental property and the ease of finding a renter. If bargaining over price becomes necessary, agents must follow their client's instructions carefully and may have to present counteroffers to get the best possible price. Once the buyer and seller have signed a contract, the real estate broker or agent must make sure that all special terms of the contract are met before the closing date. The agent must make sure that any legally mandated or agreed-upon inspections, such as termite and radon inspections, take place. In addition, if the seller agrees to any repairs, the broker or agent ensures they are made. Increasingly, brokers and agents are handling environmental problems as well, by making sure that the properties they sell meet environmental regulations. For example, they may be responsible for dealing with lead paint on the walls. Loan officers, attorneys, or other people handle many details, but the agent must ensure that they are carried out. Most real estate brokers and sales agents sell residential property. A small number---usually employed in large or specialized firms---sell commercial, industrial, agricultural, or other types of real estate. Every specialty requires knowledge of that particular type of property and clientele. Selling or leasing business property requires an understanding of leasing practices, business trends, and the location of the property. Agents who sell or lease industrial properties must know about the region's transportation, utilities, and labor supply. Whatever the type of property, the agent or broker must know how to meet the client's particular requirements. Brokers and agents do the same type of work, but brokers are licensed to manage their own real estate businesses. Agents must work with a broker. They usually provide their services to a licensed real estate broker on a contract basis. In return, the broker pays the agent a portion of the commission earned from the agent's sale of the property. Brokers, as independent businesspeople, often sell real estate owned by others; they also may rent or manage properties for a fee.

Renter expectations

Stuart NesbittOne of the most important roles as a realtor is to set expectations for rental clients with regards to
  • Availability
  • Budget
  • Turn-around
  • Space
Some of the biggest shocks to renters include:
  • Having pets drastically reduces what's available.  Large pets narrow the selection even further
  • Expecting a landlord to keep a rental vacant for over a month greatly reduces your chance of getting the unit
  • Short term leases (less than a year) cost a landlord substantially, both due to lost income from vacancy and the cost of restoring and finding a new renter
  • If you've looked at a half a dozen units and everything is way off the mark, then things are very unlikely to improve.
As a realtor it's important to convey this information.  As a renter it's important that your realize that ignoring your realtor's advice will quickly land you without a realtor.  No one likes to be ignored, but more importantly your realtor doesn't want to waste your time and the realtor's time chasing possibilities that will never happen.

Rental Hunting

Rental hunting can be very daunting for some potential renters. Often the variety of options available to these renters is a source of overwhelming frustration for the renters. With so many appealing options it can be difficult to choose just one. However, there are some tips which can help to ease the process of rental hunting. The process of finding the perfect rental can be broken down into three simple steps.
  1. The first step is to set a budget.
  2. Talk to an agent who will research all available options.
  3. Your agent can help you comparison shop to determine which option is the best.
Did you know that a rental agent costs the renter nothing?  Learn more about rental agents.

60% of Single-Family Renters Plan to Buy Within 5 Years

houses
Port Potomac is a great neighborhood with easy access to Quantico, Rt. 1 and the Mark Train
Renters of single-family homes are twenty-five percent more likely than apartment tenants to stay in their current homes fives years or longer, according to a new survey by Opinion Research Corporation. The finding suggests that “demand for single-family homes, the fastest growing rental category, will be more stable than multi-family demand,” according to the survey findings. Renters also say they plan to become home owners one day, particularly among single-family tenants. Sixty percent of single-family renters and 44 percent of apartment renters say they plan to become home owners within the next five years. “The near term interest in becoming home owners among single-family tenants reflects the new roles single-family rentals are fulfilling as a stepping stone to home ownership for first-time buyers and as a sanctuary for large numbers of families displaced by foreclosures but who plan to buy again when they can afford to do so,” according to the survey results. The survey also found that single-family renters make more money and are twice as likely to have children as apartment renters, according to the survey. The survey found that the median income of a single-family renter is $75,000 to $100,000 compared to $50,000-$75,000 for apartment dwellers. Single-family renters also tend to be older, with the majority aged 35 to 44, compared to 14 to 34 among apartment dwellers. Source: Opinion Research Corporation

Let a Real Estate Agent Help You Buy or Sell Your Condo

When buying or selling a condo in Alexandria, VA, the role of a real estate agent plays an important part during the process and the closing of a sale. As a seller, your real estate agent –
  • Help you in analyzing its fair market value
  • Help prepare the condo for selling quality
  • List your condo to get it out in the market efficiently
  • Negotiate in pricing with potential buyers
  • Complete your sales agreement and finally close the sale smoothly
As a buyer, your real estate agent can –
  • Help you decide what is better for you, renting or owning
  • Assist in preapproval in mortgage
  • Locating, viewing and selecting the right condo
  • Help you in analyzing its fair market value
  • Help prepare the condo for selling quality
  • List your condo to get it out in the market efficiently
Get your dream condo with a real estate agent’s help. Contact Nesbitt Realty http://nesbittrealty.com 1451 Belle Haven Rd. #222 Alexandria VA 22307 LICENSED IN VIRGINIA 703 765 0300 888 783 6391 (fax)