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Jim Valentine: Niche areas of real estate

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Jim Valentine on real estate

Monday, September 27, 2021

Most people are familiar with residential real estate, but there are many other niche areas of business that are emerging and requiring maintenance. To work in such a niche area requires specialized knowledge, training, and knowledge that a broker must have in order to function properly in that area.
Much like a doctor, auditor or lawyer, all of them can do the general practice tasks, ie – sell a residential property, but when it comes to the specialist areas, one should turn to a specialist.
One area that many realtors try to operate without knowledge of ownership is vacant land. There are many aspects of real estate transactions that must be considered in order to properly serve the customer. They range from floodplain issues, surveying issues, access, zoning, and soils to deed restrictions and government restrictions. To ensure that you can use the land the way you want and improve it within your planned / hoped for budget, the best thing to do is to contact a land specialist.
Many brokers encounter water rights when selling residential properties. It can be incorporated into the property one way or another, but a proper understanding of the potential uses and benefits of owning water is not always understood or explained. Some areas are developed in such a way that the water rights associated with the property cannot be delivered, i.e. surface water rights. If you have a home well, you can use up to 2 acres of water annually, but there are limits to how that water can be used for domestic use only. Can You Drill A Home Well If You Have A Lot In Nevada? In most cases, yes, but not always.
More about water, you have to know the status of water rights. Groundwater rights that have not been used for five years or more expire. Not automatically, but dependent on it. In relying on the water for your intended use, you should better understand the state’s position on the water you are buying. Is the water polluted? It could be encumbered separately from the rest of the property. In Nevada, water is a property and can be used to generate or complete a 1031 exchange. If you are dealing with water, contact a specialist or seek advice from a water law attorney or engineer.
BIA Allotment Properties are properties held in trust by the U.S. government on behalf of their Native American owners. They have mixed federal protection status while being private property. Dealing with allotment property requires very special knowledge that only a few brokers have. Be careful because you are playing in a different legal arena there.
Commercial and industrial ownership is widespread, but actually another area of ​​specialization. There are numerous excellent commercial / industrial agents in Northern Nevada, make use of them. Don’t try to give your nephew a home seller a chance if you don’t have the knowledge to guide him. This niche has its own vocabulary and standards of practice.
Note that a Nevada state business broker license is required to sell any business opportunity. Brokers can sell businesses if they are also selling the property, but if you are buying a business you should be looking at a business broker. The business of a ranch or farm is a different matter. They are complex as they involve understanding the various real estate components, including the ever-vital water rights, as well as plants, livestock, farms, pests, pests, weeds, and more. It’s a fun and challenging real estate niche, but very few are well trained and knowledgeable to properly serve their clients in the field. Get a ranch real estate agent for maximum exposure and protection.
If a broker works outside his specialty, he or she risks being punished with an ethics violation by the brokerage committee and / or sued by a party if it adversely affects them. You can always get the services of a good lawyer who is knowledgeable in the field you are working in i.e. water rights, commercial leasing, Indian law, ranching, etc.
When you’re dealing in esoteric arenas, invest a little time to find the right professional to help you and maybe a little money to find a free professional to help them such as: B. lawyer or auditor. Find out about your rights and consequences at any time.
You don’t have to be trained in every real estate area you are involved in, you just need to find the right broker to look after and protect you.
When it comes to selecting professionals to assist you with your real estate needs … experience is priceless! Jim Valentine, RE / MAX Realty Partner, 775-781-3704. Send an email to dpwtigers@hotmail.com.

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Real estate commission structures do need changing

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Earlier this month the editors of the Boston Herald called on the National Association of Realtors to amend a number of rules that they believe are anti-competitive and are designed to keep real estate commissions artificially high.

In response to the editorial, NAR President Charlie Oppler pointed out that commission rates have steadily declined in recent years. The consequence of this decline, according to Oppler, is that the commissions are fully negotiable, which suggests that agent compensation is not anti-competitive. However, a closer look at the commission data actually supports the opposite conclusion; namely, that there is substantial evidence that the current commission structure is against antitrust law.

When analyzing real estate commissions, it is important to recognize that the total real estate commission consists of two components: the broker’s commission and the buyer’s commission.

Because listing agents negotiate their commissions directly with sellers, there are no anti-competitive concerns with this component of total commission. However, this is not the case with the brokerage commission because the brokerage commissions do not negotiate their commissions directly with their buyers like they would in any other industry. Instead, the NAR rules stipulate that when listing the home, the seller must offer a preset, non-negotiable commission to the buyer’s agent who mediates the buyer.

This means that the buyer’s brokerage commission is not dictated by free market forces when the price of a service equals the value of the service. Instead, it is determined by how high the buyer’s commission is in the respective market. This notion of a common price exists because most sellers either from experience or from their brokerage agents know that offering a lower brokerage commission to the buyer would encourage brokers to illegally distract their customers from their offers and towards properties with higher commissions .

The declining commission data referenced by Oppler emphatically supports this characterization of real estate commissions. According to industry news site RealTrends, the average national commission rate has fallen from 5.40% in 2012 to 4.90% to 4.94% in 2020. (For simplicity we assume it is 4.90%.)

However, as explained above, we have to split the total commission into the broker’s commission and the buyer’s commission. According to a Redfin study, the average brokerage commission fell only slightly from 2.8% in 2012 to 2.7% in 2020. It can be deduced from this that the average brokerage commission fell from 2.6% to 2.2% during this period – four times the decrease in the buyer’s average brokerage commission.

It should come as no surprise that the average brokerage commission has dropped significantly over this period. First, the number of active brokers increased by 46% from nearly one million to nearly 1.5 million between 2012 and 2020. It is to be expected that this increasing competition will put pressure on commissions. Second, the average home sale price rose 23% (adjusted for inflation) over this eight year period, more than offsetting the decline in average listing commission. Finally, the increasing adoption of technological tools such as electronic signature software has helped streamline the process.

Therefore, the sharp drop in the average brokerage commission is an indication that free market forces are at play on the listing side. If this were the case on the buy side, we would expect a similar decline in the buyer’s average brokerage commission as the trends described above affect both sides of the deal. On the buy side, the decline is even more dramatic as buyers increasingly find their new homes on real estate websites like Zillow and realtor.com.

The fact that the buyer’s average brokerage fee has changed little since 2012 therefore supports the argument that the buyer’s brokerage fee is dictated by an arbitrary rate rather than free market forces.

Will Fried is a data scientist at REX.

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Fall Real Estate: Tri-Valley market shifting as 2021 comes to an end | News

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Tired homebuyers looking for a break can look forward to something in Pleasanton in 2022.

Buyer behavior changed in the second half of 2021 and is likely to continue into next year, said Tina Hand, 2021 president of the Bay East Association of Realtors.

“In general, homebuyers find less competition when they bid on real estate,” said Hand. “Many buyers are still a bit tired; they have been on the market for a long time and have been much outbid.”

She explained that historically high sales prices have taken their toll and there are simply fewer buyers in the market. Hand said buyers “are still waiting for prices to fall further despite we’ve seen price adjustments.”

The number of pending sales in Pleasanton peaked at 87 in April and then stabilized in May, June and July. Pending sales fell to 57 in August and then to 54 in September. This trend suggests a decline in buyer enthusiasm, which is also reflected in sales prices.

From August through September, the average retail price for a single family home in Pleasanton fell from $ 1.79 million to $ 1.56 million. This change was just one of the few times in 2021 that sales prices dropped month on month.

Hand said buyers are pulling out and sellers are not used to that. When asked how the sellers are reacting, Hand said: “I think they are a bit surprised that in August and early September they are not getting the prices we saw the market is shifting.”

“Sellers had received 15 or 20 multiple bids that were $ 200,000 to $ 400,000 above the asking price, and that doesn’t happen,” she said.

According to Hand, changes in the total cost of living are dampening buyer enthusiasm.

“People are starting to see fuel prices go up, food prices go up. I think that’s another factor in why people might be backing off a bit,” she added. “We have inflation going on and I think that scares people. First-time buyers in particular are a little nervous and will wait and see what happens.

The monthly price changes from August to September are surprising, but do not yet indicate a major shift in home sales prices. The average sale price for a home in Pleasanton in 2020 was just over $ 1.25 million. From January to August 2021, the average retail price was more than $ 1.6 million.

Hand said: “There is talk of a ‘housing bubble’ but the factors are just not there; this is not 2008. What happened then will not happen in 2021.”

Looking ahead, Hand said buyers should be positive with potentially more options. “More inventory in the market will help home buyers moving up or down or first-time home buyers – whatever the case.”

When asked when the 2022 real estate season will start, Hand predicted, “I bet it will start in late December or mid-January. that will make a difference in both residential and commercial real estate. “

Editor’s Note: David Stark is the public affairs and communications director for the Bay East Association of Realtors, based in Pleasanton.

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Shaq Sells Florida Mansion For 60% Less Than He Originally Sought

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After three years, five agents, and several price cuts, the NBA legend is Shaquille O’Neal has finally made a sale of its longstanding Florida property.

A deal for the huge estate known as Shaq-apulco was sealed for $ 11 million. That was 33% less than the last April list price of $ 16.5 million.

In 2018, Shaqs Spread hit the market in Windermere, FL for a whopping $ 28 million. Months later, the price was lowered to $ 22 million.

The waterfront retreat returned to the market in 2020 with a new marketing strategy and a new price of $ 19.5 million before being dropped again earlier this year.

Ultimately, the property was sold for 60 percent of the original, soaring asking price.

O’Neal realtor Benjamin Hillman of Premier Sotheby’s International Realty explained what made buyers decide and said through a representative, “It was the amenities and expansive lakeside setting that did it.”

He did not want to comment on the selling price.

The huge mansion, which the athlete bought for $ 3.95 million in 1993, has been modified down to the smallest detail. That turned out to be a certain hurdle for buyers.

New listing agent, new strategy

Hillman, the fifth agent to oversee the listing, spoke to us back in April about his revamped sales strategy. His goal: a lot less Shaq.

“I watched this house for over three years and they all walked down the same street, from Shaq, Shaq, Shaq,” Hillman told us about the strategy of previous agents. “But I want to take him out of the picture. I asked that any Shaq items that could be moved be moved. “

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This was a challenge given the “S” branding throughout the 31,000-square-foot interior, sports field, and oversized, custom-made furniture tailored to fit the 7-foot-1-inch star.

However, Hillman really managed to clear out a lot of Shaq’s belongings. In addition, the interior walls were painted white and many rooms were newly staged.

As the photos illustrate, references to Shaq remain: the diesel truck mural, the cinema decorated with Superman, and a similarly branded motor show. The “S” is even engraved in a glass shower door. The indoor basketball court still has Shaq’s name on the hardwood.

Trophy home

Unsurprisingly, Shaqs Spread has everything a superstar could need. The spacious interior offers breathtaking perks anchored by a 1,170 square foot two story great room with a marble fireplace and glass walls.

For entertainment, the manor house offers a cigar room, an aquarium room, a home theater, a games room, a dance studio, an office and a wine bar.

The master suite includes a 900 square meter sleeping area, two bathrooms and four closets.

Luxurious landscape

Despite its highly adapted furnishings, the property offers elements that every luxury buyer will appreciate. The 4 acre area overlooks Lake Butler and offers 700 feet of lakefront.

In addition, the royal residence is in the gated golf club community of Isleworth.

The resort-like facility is certainly a selling point. There is a 25m long and 4.5m deep pool with a custom rock waterfall. A summer kitchen, tiki-style cabana, and hot tub are also part of the package.

A covered boat dock with seating area is equipped with an electric boat lift.

O’Neal, 49, has long since left this huge mansion.

After a 19-year career, he retired from the NBA in 2011. He spends more time in Atlanta, where he works as an analyst for Inside the NBA on TNT.

Benjamin Hillman with Premier Sotheby’s International Realty represented O’Neal. Rob Rahter, a broker partner and specialist in luxury real estate for the Stockworth Realty Group, represented the buyer.

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