Importance of Listed Price in Real Estate

There are a lot of things that you need to understand when it comes to the realty market, but a lot of people are not aware of these things, and this is the reason why they are having problems when investing. If you really want to be successful when investing in real estate, you need to be sure that you are familiar with the terms that are commonly used in it. In this article, we will not only be discussing the things that you need to know about the listed price, but also the importance of this term when buying your own property.

If you are already familiar with the realty market, you know that the listed price means nothing. It is simply placed there as an invitation for people to place their offers. For example, I have a property and would like to get offers from a lot of people; I can simply place $1 as its listed price, but of course, I would never sell a property for $1. It is only there to attract buyers and to be able to start a transaction. As a buyer, you are not required to place an offer close to the listed price. It is not even the price where you will be starting your offer.

The reason why a listed price is important is because this will give your buyers the idea of what they can expect from the property. If you are planning to sell your real estate property, you can place it listed for sale by estimating the total value of your property. You can seek for the help of a real estate agent or a realtor to have a rough estimate of its value. From here, you will be receiving offers, which could either be higher or lower than your listed price. Everything is fine from here, because you can reject all offers, even if it is higher than your listed price, for as long as the terms do not meet your requirements.

A listed price is very important in every transaction, but you can never use it to determine the amount that you will be receiving from your property. There are a lot of people who think that having their property listed for sale would mean that they are going to accept an offer that is better than what they have listed, but you still have the final call.

As I have mentioned in my example above, I can place a real estate property listed for sale for only $1, but I can close a deal worth hundreds of thousands of dollars. It all depends on how you are going to present your property, and whether or not the property will be tempting for buyers. Always remember that the real estate market is very open, and you don't have to accept a deal if you think that it won't be advantageous for you. Asking your real estate agent will also be beneficial, especially when trying to determine the value of your property.

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Property Listing Syndication for Property Management and Real Estate Companies

Let's say you are a property management company dealing in individual residential units and multifamily community rentals and asset management. Your property managers and leasing agents manage over 3,000 units and 400+ are available for rent. Your admins, agents and/or managers are spending hours every week manually uploading their listings to MLS, Rentals.com, Apartments.com, Zillow.com, Google Base, Truli, Hotpads.com and dozens more (or worse they don't do this at all). This is time consuming and inefficient in your mind, as you would like to see the property managers driving business, growing your inventory and keeping their owners and tenants happy. This is a common scenario and I am going to talk a little bit about how you can work toward reducing the number of touch-points when marketing and advertising listings. This applies to standard real estate brokerages as well, so real estate agents and brokers, this is for you too!

The first step is to identify where in the setup of a new listing into your systems (Yardi Voyarger, Propertyware, In-house system for listing management) you would like to have as your "source" for all listing information, such as the property description, marketing title, address, photos and all other associated information. This is important because it will determine whether you will need to hire a developer to integrate with those systems. Some of them provide built-in ability to pull this type of information out, while others do not without very expensive support from the vendor.

Step two is to decide which real estate websites you think are most effective for your listings. For rental listings I recommend the following websites to syndicate to (automatically send your listings):

Syndication

Unpaid Syndication Partners (free):

Yahoo Real Estate
Googlebase
Zillow
Trulia
Oodle
Military.com
Walmart Classifieds
BackPage.com
Local.com
Lycos Classified
Rented Spaces (AOL)
MySpace classifies
CLRSearch
HotPads
Vast.com
Enormo
RentBits
Yakaz
Layar
Aloqa
Trovit
Twitter - Hotpads
Twitter - Your house account
Facebook - Oodle
Facebook - Your house account

Paid Syndication Partners:

RentalHomesPlus.com
Rentals.com

In order to be able to automate your rental listings I recommend using one of three primary technologies (although not the only method):

1. HTTP DATA POST
2. XML POST
3. Third party syndication

HTTP Data Post and XML Posts both require a developer or consultant to build the system out for you. There are some advantages of these first two options that #3 "third party syndication" cannot do, such as allow you to have aggregated reporting and tracking for all leads. In the case of option #3, I recommend using Realbird.com - a real estate agent/broker targeted site that allows you to manually upload your listings and syndicate to many of the sites I listed above for $89/year. Because this does require a manual upload and management of the listings (expired, etc...) it leaves something to be desired in the way of efficiency, but will be the least expensive from a hard cost standpoint. After you factor in time of your employees to manage the inventory you may be surprised how much it is costing you and your staff.

Using HTTP Data Posts or XML to pull your listing data from your management software to your company's website, then syndicating it from there is the ideal method. It allows you to integrate with CRM or leads management software to track all calls, email and other touch-points across your own websites and other websites you don't own! I will have an entire blog post about leads management sometime next week, so keep an eye out for that.

Unfortunately there's no do-it-yourself guide to listing syndication, but it is absolutely possible with the right consultant driving the project. Plan to spend anywhere from $10,000 - $50,000 depending on the complexity and nature of the project. This should give you some idea of how to budget. The investment is well worth it long term especially when you factor in integration with leads management.

Listing Your Commercial Property With a Commercial Real Estate Agent

Before you list your property it's important to consider asking price and who will market your property. You should also determine how and where to market your commercial property before making any decisions or signing any contracts. Here are some things to consider as you get your commercial property ready to sell.

Initially, many commercial property owners think selling their property by owner will save them the commission expense. Unfortunately, selling your commercial property by owner may not get you the highest possible purchase price because you are limiting the ways in which you can market your property. Many property owners selling by owner may place a "For Sale" sign on their property and list it on a few online listing services. But had they listed it with an agent, the owner could have taken advantage of the number of other paid listing services only agents have access to as well as organizations real estate agents have memberships, giving them contacts that increase the commercial property owners possibility of a sale. When your commercial property has more exposure, it will not only sell faster but has a better chance of selling for a higher price.

Another benefit of hiring an agent is that they field phone calls from potential buyers who may or may not be qualified to buy your commercial property. Real Estate agents can screen pre-qualified buyers and market your property. Agents are also a great buffer during the due diligence period and the time leading up to closing. They ease the burden on the commercial property owner by communicating on their behalf with the purchaser, lender, title company and attorney.

When it comes to commission, agents are typically paid a percentage (between 3% and 10%) of the selling price. Before you sign a listing agreement it's important to know that all commissions are negotiable. The type of property, its location and how sellable it is all play a role in determining commission percentage. For example, a strip mall that's mostly empty in an economically depressed part of town would be considered hard to sell. So a higher commission on such a property provides the agent a better incentive. The higher the commission, the more favorably a real estate agent will present it to potential buyers.

When you get ready to hire a real estate broker to represent your commercial property, it's essential that you hire a commercial real estate agent rather than a residential agent as commercial and residential properties are two totally different products requiring different approaches to marketing. Good commercial real estate agents know the current market trends and use this to market your property to the most suitable clients. Commercial properties need multi-page marketing brochures that provide buyers with pricing, demographics, NOI calculations, CAP rates, rent rolls, traffic counts, income & expense statements, topography maps, site plans, property and aerial pictures, PIP lists and other items. With such precise information, potential buyers are more likely to make an offer. Knowing how to calculate an appropriate asking price for your commercial property based on its location, current economy and market trends is very important and is a good commercial real estate agent's area of expertise. Experienced commercial real estate agents protect the interests of the party they represent when closing commercial real estate transactions which are much more in-depth and challenging than residential transactions. Finally, experienced commercial real estate agents have established contacts in commercial lending that can help speed along the closing process.