Time is as valuable as money – both are rare, expensive and precious. When talking about property transactions, landed property brokers or agents function as the mediator or negotiator. Whether you’re selling or buying your property, these professionals make sure that you get the best deal around, which actually transforms into a wise investment. However, real estate transactions are no cakewalk. Most of the people take a drastic step, which eventually proves unfavorable for them. Now, this is exactly where the role of a realty agent for residential comes in.

With the constant growth in the world economy, scores of people are looking forward to property investment; this, in turn, causes a huge demand in the real estate market. Nowadays, investors are thinking beyond big towns and cities. As a matter of fact, they’re expecting massive prospects in the rural and suburban areas of the town. Property dealing is a complicated task, especially for those who any experience in this kind of dealing. When buying or trading a property, one needs to take a few vital factors into consideration. Fortunately, you can seek help of realty experts who hold a lot of experience in this field. When looking for an efficient and reliable property broker, consider keeping these following points in mind.

Settle on your specific requirements

When looking for an expert housing agent, reflect upon the kind of services you need. Are you looking for a new house in the same district that you live in? Do you consider property relocation? Whereas some agents concentrate on new property dealings, others prefer second-hand real estate transactions. Regardless of the type of services you need, make sure that you appoint an efficient and reliable housing agent. On the other hand, if you’re contemplating official property dealings, hire a real estate agent for commercial. Remember, knowledge, skill and ability matter a lot.

Get an idea about the market

Today, you’ll come across a range of property brokers in the market. Although most of them are authentic and trustworthy, some fake professionals exist in the market as well. Always seek help of a property consultant who has sound experience in real estate dealing. Any extra reward or certificate is just an incentive. As a matter of fact, this works as a kind of guarantee for potential customers.

The World Wide Web is also an excellent place to start your research work. Here, you’ll get all the necessary details on these property brokers and the types of projects handled by them. Again, there are many review websites to get views and feedbacks about them.

Investing in real estate is often considered a great method to maximize return on investment. While the initial cost of acquiring property is high, this form on investment can have higher than average payouts for the owner compared to say, business or stock. Also, the risk factor is usually low with real estate compared to business or stock, both of which are highly volatile. The only hurdle some real estate owners face is the issue of selling their realty at true market value within a reasonable amount of time.

Conventional methods of selling real estate involve listing the asset on the market, and carrying out some marketing efforts to spread the word about it. This method is often not proactive enough and if the asset fails to catch anyone’s attention in the first few months, the risk of the listing going stale increases exponentially. So, what alternative do realty owners have besides using the conventional method of selling realty?

A realty auction is a unique and highly effective way of selling realty because of its dynamic characteristics. Firstly, the auction process utilizes accelerated marketing, which means that your asset is advertised on all forms of media for 6 straight weeks. This creates a buzz in the market because firstly the word auction itself is a magnet that attracts investors and secondly, buyers conceive that they will have a profitable transaction through an auction.

An auction can also in most cases close within 45-60 days, so there is no need to wait for months or even years to sell real estate successfully. Since a realty auction brings only qualified buyers to the table, they have the required funds available to close the sale within a short time frame. Whereas with selling real estate conventionally, buyers may commit to a property, but there is usually no screening process to qualify them as buyers. So the deal can end up being unsuccessful because of lack of funds.

Mostly importantly, selling your property via realty is an affordable endeavor. While reputable companies do charge a certain percentage (usually 1%) of the total asset value, this amount is used for marketing purposes only and pays off in the long run. At the end of the day, a property owner wants to sell their property in a timely manner and more importantly, receive true market value for their asset. So paying 1% of the asset value for marketing purposes is a wiser decision than paying a much higher percentage in holding costs, such as maintenance, taxes etc.

So for those who are looking to sell their property at an opportunistic price, and within a reasonable time frame, auction is their solution to selling real estate.

The cost of hiring a property management company to handle investment properties is significantly less than most property owners believe. Investment property owners who manage their own property with the idea that property management costs are too much might be mistaken as to the actual real costs. Additionally, a large percentage of property owners do not take advantage of all of the tax strategies available to them. For example, if a property owner manages their investment portfolio out of their home office there may be some business related items they are not expensing. Interest in all forms including mortgage interest, equity lines of credit interest, and any business loan interest are all expenses which are typically deductible. Losses like casualties, disasters, and thefts are expenses which properly accounted for are deductible. The most overlooked deduction is depreciation on investment properties, and for real estate professionals as defined by IRC 179, an investment property owner can supercharge their depreciation deductions. To maximize one’s return on investment each property owner should educate themselves about tax strategies, and thoroughly evaluate their entire tax planning roadmap with a tax attorney or competent certified public accountant.

Combined Tax Bracket Percentage Determines the True Cost of an Expense in Your Investment Property Business

First of all a property owner must fully understand this basic concept. If their annual income from all of their activities placed them into the combined, federal, state, and local tax bracket of 50%, then their ordinary and necessary business expenses are in actuality fifty cents ($.50) for every one dollar ($1.00) spent. It’s simple to think about it this way: If a one dollar ($1.00) is spent on advertising then that one dollar ($1.00) is legally expensed. If a person is in the 50% combined tax bracket then they have actually only spent fifty cents ($.50). This is because the one dollar ($1.00) they spent actually reduces their taxable income by one dollar, thus, reducing their tax liability by fifty cents ($.50). So each ordinary and necessary expense is truly only 50% of the actual cost.

Now that you have your mind around that concept if a property manager is charging you $200/month to manage their single-family residence rental property the actual (end of year) cost to the owner is only $100/month because the property management fees are an ordinary and necessary business expense and fully deductible. Now consider that 50% reduction in your perceived cost and maybe property management doesn’t seem so expensive anymore. Add to that the impact on your time, energy, effort you spend managing that property. Add to that the gasoline expense necessary to drive by that property once or twice a month. Finally, add to that the comfort of knowing a professional property manager could in fact be taking care of your property and you wouldn’t have to have all of these expenses, time, energy and effort and maybe, just maybe, you would reconsider using a property manager going forward because you now realize that they really aren’t that expensive for the services they provide.

Home Office Deductions are Tricky, but can be Legitimate

If a home office is used 100% for ordinary and necessary business reasons then there is no reason a person shouldn’t be taking advantage of expensing the home office square footage, the equipment, the materials, the supplies and any utilities paid to help operate the office. The problem lies when the home office is used for personal reasons because it is difficult to prove what percentage of the home office is actually an ordinary and necessary business expense. There are many Internal Revenue decisions on this vary issue, and each one shows the difficulty in achieving the correct balance between business and personal expense, and more importantly, being able to prove it in an audit. If you are considering running your property management business out of your home office be careful. Although there are a lot of legitimate expenses which are clearly available to you, there are several that are not.

Interest Expense is Sometime Overlooked

When you are evaluating your interest expenses do not forget to expense any interest from your home equity line of credit as this can be easily overlooked. Also, if you have a small business loan that interest is deductible as well.

Disaster, Theft Losses are Deductible

In the event that a loss occurred during your business cycle those expenses are deductible provided you had a good record of the items that were lost. There would almost always be an offset as well for any insurance reimbursements, but the point here is that losses must be fully evaluated while you are preparing your tax strategies.

Depreciation and the Real Estate Professional Internal Revenue Code

When planned correctly the “non-cash” expense of depreciating one’s rental property can be the difference in paying taxes or realizing the benefit of a tax-loss. Most residential investment properties are depreciated over 27.5 year period. Commercial property is depreciated over 39 years. However, if a person were to be classified as a “Real Estate Professional” pursuant to Internal Revenue Code 179, then the benefits of owning investment property become much greater. Without going into great detail a real estate professional’s own personal property portfolio is treated differently than a typical investor. If this is enticing enough one should investigate the benefits of this little known exception in the IRC and real estate industry.

Contact a Competent Tax Attorney or Certified Public Account to Review All of Your Current Tax Strategies and any Planning Going Forward with Your Investment Properties

The information contained in this article is by no means tax advice, but merely some ideas to contemplate the next time you consider your tax situation. Every person who owns a rental property business should consider tax planning and tax strategies with a competent professional specializing in tax. There are numerous legal ways to take full advantage of tax laws and your professional status within the property management context, however these decisions need to be considered carefully with a tax professional.

More often than not, a real estate analyst is portrayed in bad light. Many will tell you how these brokers take a large chunk of the commission without really doing much for your benefit. This is not true. A good real estate analyst does more than simply show buyers homes and houses around the neighborhood. Using their experience and contacts, they help you secure the best available opportunities when it comes to property investments. Acting as the intermediary between the buyer and seller, they help navigate the process of property buying with ease.

Analyst, not Agent!

We often use the terms analyst and agent synonymously when it comes to the buying and selling of properties. We believe both the persons to be the same. However, this is not the case. A real estate agent shows clients available homes; those that meet their requirements in expectations and budget. They appraise property, help obtain financing, represent the parties at a settlement and finally reach a price agreement. These are the job roles of an agent not an analyst.

A real estate analyst is a crucial link in property transactions, but their focus is on finance and investments alone. The job duties are explained in greater detail below.

A Day in the Life of Real Estate Analyst

Real estate private equity has become one of the most lucrative investment options today. A real analyst functions as a consultant and advises people on their investment portfolios. They research the market and provide the necessary information professionals need when it comes to make real estate investments.

An analyst literally has his pulse on the movements of the market. Once on the job, they compile statistical data and analyze it. They arrange the information under categories such as location, property type, lease rates and prices. This analysis support is used in the marketing, acquisition, leasing and financing of properties. He keeps a track of economic and demographic trends and market indicators to provide recommendation on new acquisitions.

Appraising property is also another significant aspect of property investments. Like every professional who knows his job best, a real estate agent can ball park a figure the moment he steps through the door. Their knowledge of the current pricing trends helps them tell whether a property is underpriced or overpriced. They also appraise properties on the basis of the locality in which it is situated. A real analyst goes one step ahead. His assessment of the local and national market enables him to establish a current valuation of a property as well as determine how a property portfolio purchased for investment purposes will perform in the future.

Real estate agents and brokers also act as the link between buyers and other professionals such as appraisers, mortgage companies, lawyers and insurance agents. They also help obtain finance by evaluating the client’s credit ability. They negotiate mortgage and leasing contracts and also help co-ordinate loans.

Looking For a Real Estate Analyst

If you want to get the best value for your money, you should work with an individual or company that places your interest before everything else. Working with licensed professionals also creates for accountability and credibility.