Getting a license is perhaps the first step for your getting started in your real estate business in the right earnest. You could always get a license from a good and reputed online real estate school. You will have to undergo some mandatory training and pass an exam after which you will get a license. This is very important and you should never get started without having a license in hand.
There is a process of learning for as well as unlearning involved as far as your real estate business is concerned. You will have to learn the various rules, regulations and other aspects pertaining to real estate business. For example, how to hire and deal with a good valuer Melbourne. As far as unlearning is concerned, you have to understand the success in real estate business is a process and there are bound to be many pitfalls and challenges along the way. You should take this business as a long term proposition if you really want to make it big.
When we talk about networking, you should understand the power and reach of real estate agents. In spite of development of the internet and other technologies there is no doubt that the good old real estate agent still continues to play a very important and significant role. They are the ones who will feed you with business and hence you should not afford to move away from them at any point in time, more so when you are getting started as a real estate agent.
Once you have started growing your business and have achieved reasonable levels of success, it become important for you to have your own website and you should start making your presence strongly on the internet where the action is going to be after a couple years. In fact, even today, many of the younger generation buyers and sellers are more comfortable buying and selling properties the power and reach of the internet. Last but not the least you have to understand the importance of being polite and well behaved with your clients. They could be a very powerful source of word of mouth advertising which cannot be ignored under any circumstances.
There are hardly any individuals or other entities who would not have sought the help and services of a good valuation company at some point of time. This is because whether it purchase or sale of properties or some other types of assets or when it comes to meeting some statutory valuation reporting there is no doubt that choosing the right valuation professional becomes of paramount importance.
But the common question that comes to our mind is how to identify right valuation company in Sydney. This is too simplistic a question and answering it in the right manner would involve taking into account a number of other factors. It would be a good exercise if we laid done a few points that should be taken into consideration while choosing a valuation company. Here are a few of them:
• One should always looks for valuation companies that have been in this line of business for the past many years. Experience is perhaps the most important differentiating factor as far as a good or not-so-good valuation company is concerned.
• The next important point is to look out for companies that have a host of valuation related services that they are able to offer. It would not be right to go by what the companies advertise loudly in the various medias. It is about touch-basing with customers and then evaluating a valuation company.
• It is always advisable to look for a valuation company that is government approved and registered.
• One should always look for valuation companies that are well networked and have the latest updates in the various rules and regulations pertaining to valuations.
• While cost is certainly an important deciding factor, it may not be prudent to just go by this parameter alone when selecting a valuation company.
• Adhering to timelines, being honest and transparent and being customer focused are a few more points that should be thoroughly analyzed before zeroing in on any valuation company.
To begin with, the main purpose of any valuation report is to ensure that it shows the right value of a property that is up for sale or for the purpose of ownership transfer. What exactly is the ‘right value’. This is a common question that is asked by many persons. Since the market itself has a value which corrects itself depending on the various market dynamics should it not be taken as a the right value for a property. While the answer is yes to a great extent, the market value alone cannot be considered as the final authority as far as the price of a commercial or domestic property is concerned.
That is where the role of a property valuer counts a lot. He helps in corroborating the value that is set out as per the market guidelines. Hence, when the value more or less matches from two different and independent sources of information it certainly helps the confidence levels of the buyers and he is sure that he is paying the right price for the property.
This apart there are some more important pieces of information that are available in a good valuation report. For example, the report looks into the legal aspects of the property in some details because it is essentially the job of the real estate attorney to have a deeper look into it. There are also a lot of subjective information available in such reports. The valuer has to physically inspect the property, take measurements of the same and also have a look at the neighborhood. The quality of life, the quality of people and the infrastructure development in the locality are also important subjective information that forms a part of any good valuation report.
To begin with before becoming a real estate agent one has to be understand that this is a serious business. Success in this business does not come overnight and it takes time and effort. Unless this thought process gets deeply engrained in a person he will not be able to see high levels of success in this business. Many persons look for instant money in this business and this happens, but very rarely.
The next important step is to get into a learning mode as far as this business is concerned. This is a business of people and mastering the art of dealing with people is key to succeeding in this business. You should over a period of time be a master in networking and building relationships. This is very essential if you wish to be reasonably successful in this business. Additionally, getting a formal qualification and a license as a real estate agent are also matters that should be of paramount importance to you. This will go a long way in improving your credentials and goodwill which is so very important for achieving success in the real estate business.
Having a clear knowledge about the local real estate market, having the right information about the upcoming real estate projects, new or old buildings, apartments or commercial establishments that are up for sale are some basic details which any good real estate agent should possess. They should also understand the importance of networking with other real estate agents so that it could work to their mutual benefit.
Last but not the least, good real estate agents are also good property valuers by default. This helps a lot in furthering their business interest over a period of time. Customers would always be glad to associate with a real estate agent if he or she also is a registered and government approved property valuer. Therefore, if you are an ambitious real estate agent you should also qualify as a real estate valuer by undergoing the right course. This is a lethal combination which could take your real estate agency business to big heights of success.
The primary reason for appointing a valuer when it comes to buying or selling a property is to ensure that the concerned stake holders get a clear idea about the fair market value of a property. Though the market itself throws up a value buyers in particular would like to ensure that the value in a fair representation of the actual market value. Towards this objective the role of a valuer becomes very important. Hence, when choosing a valuer you should be sure that he or she has the experience and wherewithal to give a fair representation of the value of the property.
This would require the valuer to take all facts into consideration before valuing the property. It is just not enough to have a look at the books and then come up with a valuation figure. Their job should go much beyond that. They should take the trouble of personally examining the property from many angles. The quality of the property should be looked at and the age should also be taken into account. This apart it is also incumbent on the valuer to have a look around the neighborhood and be sure that similar properties also have the same value as is evident in the market or as is found in the books of the government authorities.
Next when recruiting valuers, one should be careful about the status as an approved property appraiser. Many a times customers often overlook this fact and pay the price later. Further, a good valuer is not supposed to just restrict himself to simple valuations. He should be able to handle any types of valuations however complex they are. Valuation of property is a big subject and cannot be looked only in the narrow prism of vanilla property valuations alone. There are other types of valuations such as backdated valuations, valuations with retrospective effects, compensation valuations, mortgage security valuations, valuations pertaining to deceased properties just to name a few. Hence, they should be in a position to take up any difficult type of valuations. Adherence to time lines is another important area that should be kept in mind when one is approaching a valuer. This is because almost each and every type of valuation have specific time lines which must be met at any cost.
In fine, choosing a good valuers from amongst a crowd of them is certainly a challenging task. The best way a customer can do so is by being informed and taking as much knowledge as possible. Being in touch with the various websites that provide information pertaining to valuation is an important way of going forward in this matter.
There is no way real estate business and property valuation can be seen in two different silos. They are very closely interlinked and therefore the clamor for including property valuation as a subject is always growing. Most of the persons who are not closely associated with real estate business would not understand the importance of property valuation. Most of the buying and selling transactions would come to a grinding halt if real estate valuers where to cease work even for a few hours. Billions of worth of property loans would get stuck in the pipe line in the absence of property valuations. Many government and local authorities would be at their wits end not knowing what is the tax to be levied on properties if valuation reports were not forthcoming.
Given the above scenario it is of extreme importance to include the subject of property valuation even for real estate agents who are seeking a certificate for commencing their real estate agency business. This is something which will also go a long way in helping the real estate stakeholders too. It is expected that they have a better understanding of property valuation so that they are able to address customer queries better and be of better help and assistance to them.
In view of the above, it is felt that real estate courses all across the country will have a specific subject entirely devoted to property valuation, its importance and significance, the different types of valuations and other such important matters.
The real estate market is well and truly becoming very competitive. As we read this article, it is quite possible that quite a few investors are willing to put on the line thousands of dollars of their hard earned money in the process of “learning” the so-called tricks of making it big and successful as a real estate investor. Do we need to actually spend this kind of money just to “learn” the trade or is there any other way out? Let u try and find out the same over the next few lines.
The biggest learning point as far as being successful in the real estate market is to understand that all those who enter this trade fresh are novices. There is a lot of learning process to be gone through. It would be better for such new entrants to learn the process by being outside and being associated with some friends or relatives. This would be a less expensive option than getting it into the market without knowing anything and then burning the fingers badly. Further, while there is money to be made in the real estate market, as an investor you should know to draw a line between reality and lofty expectations. Most of the new entrants in the property market end up making a big hole in their pocket because they get in with huge expectations that are unreal and impossible.
There is no easy money anywhere and the same fact applies to real estate investment too. It would be wrong to be carried away by those highly misleading advertisements which talk about things that are unreal. Further many people think that one can become a real estate agent “gradually” after he or she has gained experience as a real estate agent. This is not true because the mindset as a real estate agent is completely different from that of a real estate investor. Hence, living under the utopian dream that you could become a successful investor once you have “learnt” the tricks of the trade as a real estate agent is untrue and too far –fetched.
At the end of the day while losing some money in the beginning as a real estate investor is quite okay, the amount of loss would be very minimal if your expectations are reasonable and not out of the world. For being successful as a real estate investor apart from being realistic in your expectations, your attitude should be good. You must be willing to work hard and learn things fast. You must learn to rub shoulders with those who have been successful in this field which perhaps is the best way to learn this business.
You could understand the various challenges and opportunities associated with real estate development by many ways. You could be an onlooker from a distance and try to gather information on this fascinating business opportunity. Alternately if you are ambitious with an entrepreneurship bent of mind you could try to test the water and understand more about real estate development by being inside it rather than being outside it. However, you must understand one fact quite well. Becoming successful in this business is no child’s play. It takes a lot of hard work, experience, commitment and learning the tricks of the trade. Some bit of good fortune may also be required but as the saying goes “fortune favors only the brave” you should be courageous and willing to take the rough with the smooth. Here are a few important factors that should be borne in mind while choosing a real estate company.
It is important to have a clear idea about the location where you wish to start the real estate project. There are a number of reasons why location is of paramount importance. It could help you to survive and grow even in times of trouble and turmoil. On the other hand, thought you may save a few thousand dollars by building a real estate project in a desolate location, you could end up blocking your investments because of absence of customers. So, even if it calls for waiting a bit, you should never compromise on the location where you are building these projects as a real estate promoter and developer.
The next important point is to clearly identify your financial strengths and weaknesses. You should have a very clear and precise budget in mind. Though overshooting the budget by a few basis points is quite acceptable, starting a project without exactly knowing what you wish to spend would be a wrong way to get into the whole thing. Your competitors might do things that could instigate you to go overboard in your budgets. If you have decided with a budget, you should stick to it come what may.
Understanding your customer very well is extremely important. This helps you to segment your market better. Segmentation is very important because the real estate market is huge. Unless you know which types and segments of customers you are targeting you will firing empty bullets in the air. If needed you should take help from a professional to segment a customer on various parameters and only then get into the act.
Valuation is not merely about valuing of properties and real estates. It is a much bigger subject and many recent changes to rules and regulations have brought many radical changes as far as the whole concept of valuations is concerned. It would therefore be interesting to have a look at the various types of valuations that could be clubbed under the banner of any good valuer.
While there is no doubt that typical property valuation continues to be the biggest component of business for any valuation company, certain new changes to management of retirement benefits have redefined the entire concept of valuation. Today, it is possible for individuals to manage their own superannuation funds instead of handing it over to trusts and other such societies to manage the same. However, this facility comes with a rider. The individuals who are managing their own superannuation are required under the law to regularly submit a valuation report of the funds that are available in these superannuation accounts. The reports are to be submitted only by recognized and approved third party valuer. Hence, this is something new as far as valuations are concerned.
There are other types of valuations which also do not strictly deal with real estate. Asset register valuations are a type of valuation that offers huge potential for valuation companies. However this is a special type of valuation of assets of a company. It cannot be done by those who are experienced in performing real estate valuations alone. Professionals who would like to go in for asset register valuations should have a good knowledge of accounting and book keeping formalities. They should also be in a position to differentiate between different classes of accounts.
Apart from the above there are a number of other types of valuations ranging from back-dated and retrospective valuations to determination of fair rent for both determination and review purposes.
There is no doubt that valuation is a big subject and each and every day, valuations worthmillions of dollars take place in the country. Many of us often try and restrict valuations to properties alone. However, this is not right. There are quite a few other assets that also fall under the domain of valuations apart from valuing of properties and real estates. Though the number of players in this field of quite a few, only a very few scale high levels of success. The reasons for so many players falling by the wayside could be attributed to quite a few things. It would be interesting to find out what exactly it takes for companies to become successful in the field of valuation.
To begin with having the right knowledge in the field of valuation is extremely important. We have to bear in mind that valuation is a highly dynamic subject and what is relevant today may not be so after a few years or perhaps or even a few months. It is therefore extremely important for us to understand the importance and significance of regular updating of the knowledge base.
The next important factor that is also very crucial is to understand the need to incorporate almost any type of valuation in the company’s product or service basket. If any company is restricting itself only to valuation of properties and other such immovable assets, the chances of its growing and reaching the next higher levels of success are quite remote. Today customers expect valuation companies to offer them all the services under one roof and hence this is something that should always be taken care of.
The next important factor that defines the success of otherwise of a valuation company is its ability to deliver services to customers as per the time lines set by them. For example, there could many situations where you could find reports of valuations reports being sought for within few hours after the request being raised. This is particularly true in the case of mortgage security valuations. Hence, companies who wish to be successful in this business must have the right infrastructure, people and wherewithal to handle such requests which at times might even seem very unrealistic and unreasonable.
Trained manpower having the right experience and expertise in this subject matter is also of paramount importance. The employees should be a good mix of both youth and experience and they should be totally committed to their jobs. The onus on keeping the employees happy rests with the employers those who are keen or growing to higher levels of success.
Being registered and having the approval for the government authorities as a valuer is also of extreme importance. This certainly adds power reputation and goodwill and such valuations companies will be better placed to handle customers and even government authorities better. Last but not the least, today’s customers are very particular about the price that they pay for the services. While they expect full value for money, they are not ready to compromise on the quality of valuation reports that are submitted to them by such companies. Hence, while it is not all about being competitive in pricing, companies have to ensure that they are able to offer reasonably good value and affordable prices. This will enable them to become more inclusive as far as different segments of customers are concerned. They will be able to garner a bigger size of the overall market share.
Having a good website with 24/7 online and telephonic help is an important component which helps to separate the grain from the chaff as far as being pro-active to customers’ requirements is concerned.
Seeing success in the real estate market is easier said than done. Every day at least a few companies or individuals get started in this business. However, the dropouts and failures are quite high. Only 2 out 10 builders and promoters are able to see the light at the end of the tunnel even after two years. This is because of a number of factors. Those who want to see success in this business need to be patient and persevering.
They should also be able to get access to financing that is competitive and has a long term maturity and repayment period. However, such funds are not easy to come by. We have been able to create a niche in this market, because we have been able to place ourselves properly in the highly competitive housing market. It would be wrong to state that we are only into commercial projects. We also have a lot of very successful residential projects to showcase to our customers. Further, we have a total picture of the market as it is likely to be five to seven years down the line. This is again possible because we always keep a close watch on the current trends and based on this we try and come out with a reasonably accurate picture of the future.
We are also very reputed and experienced in this field and therefore when it comes to arrangement of low cost funds, we have a number of bankers and financial institutions who are ready with their lending teams right at our doorsteps. Our overall rating and creditworthiness is quite envious and hence we do not have much of a problem getting loans almost each and every major banks or financial institutions that one can think of.
We have bifurcated our activities very clearly between commercial projects and domestic projects. This avoids confusion and overlapping of functions. We are also manned by an excellent team of professionals with rich experience. Many of them have been with us for the past many years. Further we are one of the very few property builders and promoters who have their own valuation teams. So, if there is any need for valuation or any commercial or domestic property for any reason, it makes sense to contact us.
Whenever we take up any building project, however big or small it is, there are quite a few things we keep in mind. We start looking for customers only when the entire land acquisition process is over. We arrange for all commercial lending from banks and financial institutions both for ourselves and also our prospective customers. Hence, we are sure that any project that is in the drawing board stage would not take much time to fructify once the final decision to construct the same has been completed.
We also have the ways and means by which we are able to generate funds for repaying the borrowings that we have taken from lenders. We have a big team to look out for renting options for such projects in case they are not sold off. Hence, in fine whether it is outright purchase or for rent purposes, we are there to help our customers at each and every step.
Competition in the real estate and property markets, particular when it is for commercial purposes is seeing intense competition all around. This has resulted in the financial institutions and banks becoming extremely aggressive. This is leading to a reduction in the lending rates and at time it looks ridiculously low. Commercial property developers who are into real estate business are not much worried about the ways and means to raise funds for such big and highly capital intensive commercial projects and buildings.
We are a reputed player in this field and hence are able to take advantage of the improved liquidity that is available in the system now. Compared to the trouble and travails that we had to undergo for raising funds for financing our commercial property projects, today we find the going easy. However, it would be wrong to mention here that banks are becoming aggressive to the point of indiscretion. They are very particular about their lending terms and conditions. We have not been able to face any problems in raising such funds. This is primarily because of our excellent rating with almost all the major banks and financial institutions. When the credit team of the various banks and financial institutions sit and make a valuation of our assets and liabilities they certainly will have no major reason for worry or concern.
This is because of our strong fundamentals and the number of projects that we have completed successfully. Looking at the various trends available from the ground level, we organize and reorganize ourselves. Hence whether it single commercial buildings or big apartments, there is no denying the fact that we stand in a better wicket compared to many other projects that have been built on such commercial lending from banks and financial institutions.
Our vast experience in the real estate market is standing us in good stead as banks and financial institutions are more open and ready to lend for various projects. We also are confident of selling these projects outright or find customers on rent for the same. The rentals that we are confident of getting from these projects will more than take care of the funds we need for servicing the loans that we may have taken from the banks and financial institutions.
Another big reason why the lenders continue to repose their faith on us is our reporting system to the banks. The periodical requirements of reports from banks are adhered to very strictly. Further, whenever we are a bit strong on the cash-flows, we try and retire a part of the debt so that our overall liabilities come down significantly.
Given our successful and fulfilling experience in the commercial property market we are now foraying into the residential property markets. We are confident that our basic fundamentals being what they are, we will be able to create a big impact in this field too. We already have completed a few projects quite successfully and we would like to build on these strengths and experiences and take matters forward.
In find given the positive environment that is now prevalent today, the future looks quite bright for us both in the short term and longer perspectives.