Real Estate Education Enhances Transparency, Professionalism and Business Volume

Property broking profession lacks credibility and is always looked at with suspicion. However, the credibility of this profession can be enhanced through real estate education. A thoroughly planned system of property education can not only improve the credibility of property professionals by inculcating numerous changes in the profession but also enhance the business volume of educated and certified professionals. Suitably planned courses can teach property professionals the better, profitable and convenient way of doing real estate business. Few of the key changes that education system can bring into property market are as follows:

Transparency in transaction and business professionalism: Knowledge enhances transparency and professionalism and this is true for real estate market also. Today, several property brokers are active in the market without any structured knowledge of property sales and transaction process and therefore they are forced to provide wrong and partial information to their clients. They are not able to close the deal properly, mostly at the cost of prospective home buyers, because they have not studied how property ownership is verified, acquired, transferred and leased. In the Indian property market, there is a sub set of property advisors, who want to upgrade their knowledge and skill but are unable to do so in the absence of a system of real estate education in which they can study as well as run their business.

In this scenario, a proper system of property education and training, consisting of a network of real estate institutes offering full time, part time, evening, week end, distance and online real estate courses, could have improved the subject knowledge of professionals and in turn would have improved transparency in property transactions and professionalism in the business, especially property consulting business. A point to be mentioned here is the initiative of EduMark realty education services which offers courses for those looking for real estate jobs as well as for existing property professionals looking for professional development. EduMark is the first and only institute in India that offers full time, part time, week end, evening, distance and online courses.

Customer Service Efficiency: A knowledgeable and informed property advisor can serve his clients effectively and efficiently which in turn increases his demands in the market. Such demands increase his overall volume of business because one satisfied customer can create ten new customers. However, structured knowledge and information come only through a properly established process of education.

Subject knowledge and business volume: It is an established fact that buyers tend to prefer a knowledgeable advisor (knowledge displayed through his educational qualification) more than that of an advisor who is not well informed and knowledgeable. However, in the absence of property education system, courses and institutes, property brokers can’t display their knowledge because they can’t acquire any suitable real estate qualification and therefore potential home buyers can’t identify the best suited advisor.

Business ethics and business volume: By offering fraudulent advice, one can derive benefits in short term but it is a net loss in long term. This is very true for property brokers also. This is because, as mentioned above, one satisfied customer can create ten new customers but one dis-satisfied customer can dissuade hundreds of potential clients, so the losses are many folds. However, this fact can be explained to these property consultants only if they are inclined towards learning and there is sufficient opportunity for such learning.

Real estate jobs and cost of recruitment and training: One of the most important impacts of education in this business is on property jobs; While real estate courses offer a platform to potential candidates to start their career in real estate by taking up suitable property related jobs, it reduces the cost that employers make on the training of new employees. Those candidates who have done a property related course are already trained and ready for real estate jobs and therefore employers do not need to arrange fresh training of the such employees, which saves time and money both.

Overall, a proper devised system of education for Indian property market can enhance not only the transparency in transaction and business professionalism but also the business volume of the market players. Another advantage is the reduction in training and employee orientation cost.

How to Jump Over The Most Common Real Estate Pitfalls

Is it really smart to invest in real estate? Who can know for sure? Like any forms of investment, there are risks to consider. When the good outweighs the bad, then perhaps, putting money in real estate is a good way to start building up your investment portfolio.

How can we know which way to go? Real estate experts have identified major pitfalls to avoid if investing in real estate is what appeals to you:

Do not bank on intuition.

Intuition is defined as “hindsight”, or an inherent “inner warning”, that oftentimes does not veer towards the positive but leans on the unexplainable feeling of doom. Most people would sell their homes based on a pessimistic feeling that the real estate market will soon crash, or the long-perceived real estate bubble is beginning to burst, hence the sooner they sell their properties at prices they can still command, the better.

Most likely, the worse case scenario never happens. Panic paralyzes the mind from thinking logically through a situation, thus, past experiences are forgotten. When real estate prices do slide, they don’t happen overnight. Unlike stock market positioning where prices can nose-dive drastically, real estate values may only suffer a decline, but not a total burn-out. Those who sell their homes with the prospect of making a profit on it while they still can, and purchase another, when real estate prices slide are heading towards being homeless, or into rental homes themselves.

Look at the odds: selling your home will displace your family for a while, it will cost you your agent’s commission, new mortgage rates may even be higher than the previous ones you were paying, the inconvenience of moving and leaving a familiar neighborhood, including other attendant costs. In the end, your calculator will register a deficit rather than profit!

Keep a discerning mind; do not believe everything you read.

That value of real estate properties will always go up is more of an illusion, rather than fact. This line of thought is dangerous as it wafts “speculative” investing – a financial stratagem that can be potentially profitable but very risky. This can imperil your good investment approaches. Real estate agents are moved by the prospect of earning commissions, naturally, they will outsell one another by sales pitches that can close the deal.

Quandary with Rentals.

Purchasing properties with the prospect of renting them out is sound, however when this is done during an economic slump, this may jeopardize your investment.

When real estate foreclosures are high, some investors take it as a good sign for renting out properties. Some may experience demand, but oftentimes people move away when they lose jobs. By the law of supply and demand, when there are few renters, rents will plunge.

Avoid risky loans like a plague!

Mortgage loans come in many options, can be all attractive, but caution should be exercised. As in all things, not everything that sparkles is gold.

Interest-Only Mortgages don’t demand payment of the principal while other mortgage options may require regular payment of the principal, or no payment at all during the early years. But interest rates can increase monthly and the increase can cut deeper on your mortgage. If sufficient payment is not made, your total mortgage loan will cost you more than what you home originally costs.

Keep your investment straight and you have more to keep.

Funding your other investment portfolios with the equity on your home is risky. Same is true with financing second or third mortgages on a property. In the event of payment defaults, equity on such property shall satisfy the loan taken from the first mortgage lender; and any remaining amount, shall be used to satisfy obligations with the subsequent lenders. This, however, rarely happens.

Study. Probe. Evaluate. Do not speculate.

Real Estate Investment is flourishing – a sign that it is a profitable venture. No wonder, real estate industry remains a formidable choice among those who want to get a crack on the fortune pie. Having identified the common pitfalls in real estate investing will narrow down the margin of those who ventured but lost, and jumpstart the prospects of those who want to make it big.

Helen L. Erickson

Sarasota Real Estate

How To Apply For Business Education Real Estate Grants

Applying for business education real estate grants can help you pay for courses and certification as a real estate agent.

A Reality Check

The truth is, getting certified in real estate can be more costly than you have imagined. It’s not clear to many people that depending on what type of real estate license they want to apply for, testing can vary greatly in cost. That’s where business education real estate grants come in to help pay your education bills.

The other reality is that most people who want to begin a real estate career are transitioning from other careers, and want to keep their jobs while making the change. To help pay the additional costs of education, a real estate education grant can help greatly.

The smart thing is to realize you’ll have to lose money before you make money, so be prepared for this. You want to plan ahead to have enough to cover your bills and additional expenses that will surely come up before you sell your first property. In this respect, business education real estate grants can help take the stress off while you build your clientele and business.

There are a lot of places where you can apply for business education real estate grants.

Real estate companies, business schools, and online programs all have information about grants on their web sites. You can approach the financial aid office of the school you will be attending. Make sure you ask for all scholarships and grants that you can apply for, so as to increase your chances to receive aid.

The attractive thing about business education real estate grants is that they do not have to be repaid. You can use the money to cover all your educational needs. This can include major living expenses such as room and board.

A Successful Real Estate Business

If you so decide to open your own real estate office, you will need money for rent and start up equipment, and that’s where business education real estate grants can helpfully come in. Starting a new business can be more costly than originally imagined . Once you have been licensed, you will be able to start your own real estate agency. Having enough money to tide through the start up phase will allow you to focus on selling real estate and building a successful business that will continue to grow.