Author: administrator

Business owners often have multiple roles to perform. From customer service to handling all
the administrative tasks, a business leader’s responsibility seems endless. Such a busy
routine and numerous responsibilities can make taking every job challenging for the owner.
In this case, as a business leader, you may want to consider an Administrative Virtual
Assistant.

This article will explore some of the most effective benefits of hiring an Administrative Virtual
Assistant. But before going into the perks of hiring these professionals, we’ll see what
exactly it is. And then, we’ll go through the benefits one by one.

What is an Administrative Virtual Assistant?

Administrative Virtual Assistant is a professional who remotely helps businesses with
administrative tasks. These individuals never collaborate physically but work like personal
assistants (PAs). Administrative VAs are often freelancers working for an agency dealing
remotely with several clients. These professionals have an hourly rate but are far less
expensive than hiring a personal assistant for administrative tasks.

Administrative Virtual Assistant has gained popularity since Covid because these VAs have
been flexible and consistent with their work. When a business hires an experienced
administrative virtual assistant, it is more likely to save as much as 78% in operating costs.
The reason behind the cost-effectiveness of hiring administrative VAs is that they only
charge for their productive time, enabling them to use their resources effectively.

Benefits Of Hiring An Administrative Virtual
Assistant

Hiring an Administrative Virtual Assistant can benefit your Business in many ways. These
professionals can save precious time, streamline administrative processes, build customer
loyalty, and perform many other tasks to help you achieve your business goals. Continue
reading for a thorough understanding of the benefits of hiring an administrative virtual
assistant.

Financial Sustainability For Your Business

When you hire a personal assistant, it can be pretty expensive for you. You’ll have to pay
monthly salaries and manage their medical insurance and other incentives. On the other

hand, Administrative Virtual Assistants are independent contractors. It means you’ll only
need to pay them for their working hours and not more than that.

As these professionals work remotely, you can hire them from any part of the world. You can
hire individuals who already possess the skills required, so you won’t have to invest in their
training. Therefore, hiring skilled administrative VAs can ensure the financial sustainability of
your Business.

Deliver High-Quality Work

Easy tasks like checking emails, managing your social media page or website, or answering
phone calls can be time-consuming. But have you ever imagined someone else working
these tasks for you? Imagine your productivity level if you had someone else to do these
easy tasks while utilizing your time on other essential things. Thus, hiring administrative
virtual assistants can enable businesses to deliver high-quality work.

Save Your Time For More Important Things

One of the most valuable benefits of adding an Administrative Virtual assistant is time-
saving. Sometimes, it gets tricky for a single person to handle all the tasks, like answering
clients and solving petty issues single-handedly.

A good option is to hire an administrative virtual assistant for numerous tasks, and the owner
can now concentrate on the growth of the Business. In addition, the company’s employees
won’t have to worry about being overloaded with work. Therefore, it is sensible for start-ups
and established businesses to hire a virtual assistant for their administrative tasks to ensure
smooth operations.

Track Your Business Progress and Identify Areas To Improve

Administrative Virtual Assistant provides you with a weekly report of your business progress.
This approach allows you to identify tasks in the information that took longer to complete and
then prioritize your tasks to achieve the most important ones on time.

There are numerous Virtual Assistant Companies, some of which have online portals. These
portals enable business owners to see what their Virtual Assistant is working on.

Build Customer Loyalty

Every Business aims to ensure customer loyalty. Therefore, every Business must interact
with their customers and build a good reputation by addressing their concerns. But, as we’ve
mentioned earlier, these petty tasks can only be handled independently, and as a business
owner, you would never want to talk to your clients in a quavering voice. Therefore, hiring an
administrative virtual assistant can help Businesses build customer loyalty.

Boost Your Productivity

An experienced Administrative Virtual Assistant can have a significantly positive impact on
the productivity of your Business. These professionals get their tasks done far quicker than
you could. In addition, hiring a VA will ease the burden of the existing employees.

Since VAs work remotely, they can save time on transportation and talk with colleagues in
the office. These professionals are only paid for the work they complete, and that’s the
reason they’re relatively more focused on their work.

Protect Your Business From Higher Risks

There comes a time in every organization when you’re unaware of the entire situation, and
you can’t predict what will happen next. Sometimes, you can indicate that the numbers are
pointing towards the growth but don’t know how it will happen.

Here, an Administrative Virtual Assistant’s role comes into play. You don’t have to hire new
employees necessarily, but a Virtual Assistant can be a perfect option for such a scenario.
Taking this step not only saves your money and time but also streamlines your business
operations.

Adapt To The Change Quickly

Administrative Virtual Assistants have flexible working hours. Unlike other permanent
employees, administrative VAs don’t work from 9-5. It doesn’t matter where your Virtual
Assistant is staying; even if you live in a different time zone, you can still utilize the skills of
your VA to operate your tasks. You can ask your VA to work for 8 hours a day. This
approach will significantly help you maximize the output and reduce the cost.

Hire The Best People Worldwide

Hiring a personal assistant for your physical office reduces your limit of hiring individuals who
live within your local area. These employees might not be a good fit for your Business, but
you still hire them to keep things going.

But if you’re willing to hire an administrative virtual assistant, you can hire these
professionals worldwide. These individuals work remotely and don’t need to live near your
office. So you have more opportunities to engage the ideal candidate for this role.

Better Work-Life Balance

Running a business can be stressful as well as challenging. If you start managing all tasks
by yourself, it might become difficult to separate your professional and personal life. You
won’t even be able to give enough time to your loved ones.

Therefore, hiring an Administrative Virtual Assistant can be significantly helpful in managing
all the micro and time-consuming tasks. This strategy allows you to focus on your business
growth and sustainability.

Frequently Asked Questions (FAQs)

 

What Is The Difference Between Administrative Virtual
Assistant and Virtual Assistant?

One of the significant differences between Administrative VA and Virtual Assistant is that
administrative virtual Assistant focuses mainly on business administrative tasks. At the same
time, Virtual Assistant tends to manage a variety of functions, including the personal needs
of their employers.

What Are The Different Types Of Virtual Assistants?

Some of the most common types of virtual Assistants include:
●  Administrative Virtual Assistant ( Schedule meetings, answer the calls and manage
communication with clients or vendors)
●  Data Entry Virtual Assistants ( Compiling and uploading data to CRM)
●  Social media Virtual Assistant ( Promoting products and services through social
media channels like Facebook, Instagram, Twitter, etc)
●  Book Keeping Virtual Assistant ( Maintaining account records)

Which Industry gets the most benefits from hiring Virtual
Assistants?

Many industries benefit from their Virtual assistants, but the healthcare industry is at the
top—virtual Assistants in the health industry schedule patient appointments and record and
file insurance claims. However, the skills these professionals possess also fit nicely into
various other Businesses like real estate.

Starting a real estate agent career can be exciting and less expensive. Getting a real estate
license is relatively more accessible than a traditional college degree. You’ll be able to
pursue your career as a real estate agent soon after passing your licensing exam. But have
you ever imagined how long does it take to get your real estate license? A simple answer is
4-6 months on average. But what are the essential factors that affect the process of a real
estate license? Read on to discover everything you need to know about how long it takes to
get a real estate license.

What Are The General Requirements For

Getting A Real Estate License?

Although the requirements for obtaining a real estate license vary from state to state, we’ll
review some of the more important and typical ones. These requirements include:

1. Age Limit:

Most states require an applicant to be at least 18 years old, while a few states have set the
age limit to 19 or 21.

2. Residency:

Another essential requirement for getting a real estate license is to be a US resident,
satisfying all residency requirements.

3. Education:

It’s essential to complete your state-required education. Most US states require applicants to
have a high school diploma or equivalent to meet the eligibility criteria for getting a real
estate license.

4. Criminal Record:

A criminal record is observed thoroughly, and you may be ineligible if you’ve been convicted
of a felony or any other crime.

5. Real Estate Licensing Exam:

You’ll need to appear for the real estate licensing exam and clear it to get your license.

How Long It Takes To Get Your Real Estate
License?

We’ve already mentioned in the beginning, on average, it takes 4-6 months to get your real
estate license, but the time required to get a real estate license is based on certain factors,
including:

Different States Have Different Policies:

Every state has set up different policies for getting a real estate license and becoming an
agent. In most states, completing your education program and passing the real estate exam
is essential for becoming a real estate agent.

You must register in an accredited real estate school to complete an education program. The
real estate school will help you provide all the information needed to pass the exam. You’ll
appear for the licensing exam once your real estate education is completed. Depending on
the state, different amounts of time are needed to obtain a real estate license. Sometimes,
you may get your real estate license soon after your studies.

Educational Requirement For Real Estate License:

Initially, you’ll be required to enroll in a pre-license course at a real estate school. During this
process, you will study several subjects, such as property law, contracts, and financing.
As a student, you’ll have to work hard to cover the essentials and practice for the licensing
exam by consistently taking sample tests. However, If you’re well prepared for the test, you’ll
likely pass it on your first attempt.

Online Vs Traditional Schooling System:

It depends on whether you want to take online or face-to-face classes. These educational
strategies provide the same education for the real estate licensing exam. Still, it depends on
your choice that might work best for you.

Online classes are flexible and easy to take, but you’ll have to stay self-motivated if you’re
willing to opt for online schools. On the other hand, physical classes can be a good option for
those who want extra guidance from their instructors. Online real estate classes can take as
little as three weeks and as much as a few months. Physical real estate classes usually take
six weeks and a little longer.

Real Estate License Exam:

After finishing your real estate schooling, You must appear for the licensing exam. The Real
Estate Licensing Exam is another essential factor to consider for how long it takes to get
your license because it will depend on how many tries it takes to pass your real estate
licensing exam. In addition, if you need to retake the exam, you’ll have to wait a few days or
even a week.

Generally, you’ll have two and a half hours to complete your exam. If you don’t pass it, most
states will provide an opportunity to retake the exam until you pass it. The eligibility
requirements differ in different states, but at least 60% is required to pass the exam in most
states.

Real Estate License Application Process:

You’ve completed your real estate schooling and passed the licensing exam well. The next
step you’ll need to take is checking your state’s commission to see whether E & O ( Errors
and Omissions) insurance is essential for you before applying for a real estate license. E & O
insurance is crucial for many people as it protects real estate agents from lawsuits and
losses caused by real estate affairs.

After deciding whether you need to secure E & O insurance, you’ll apply for the license, but
again, it all depends upon the state you’re living in. This process varies by state, and in most
of the states, you’ll be required to submit documents like your exam result, license
application, and application fee to the state’s licensing board.

There are certain states where the exam results are announced immediately after taking the
test, and you’ll be given a temporary license to start your career as a real estate agent. On
the other hand, most of the states need you to wait for the exam result, send your
application, and wait until your license is sent to the broker.

We’ve discussed some important factors that decide how long it takes to get your real estate
license. So it depends on the state you’re living in and its policies regarding real estate
license, time duration of your real estate schooling, and your licensing exam. All these
factors collectively decide how long it will take to become a real estate agent.

Frequently Asked Questions (FAQs)

 

What Is The Easiest State To Get A Real Estate License In?

The Easiest States to get a real estate license are North Carolina and other states like
Massachusetts, Alaska, and Mississippi. If you meet the basic requirements, like 18 years of
age and passing the licensing course, you can easily qualify for a real estate license and
start your career as a real estate agent in these states.

Can You Be A Real Estate Agent In More Than One State?

Yes, it is possible, but each state has a requirement that must be fulfilled. First, you’ll need to
check if the additional state has a reciprocal agreement with your state. Let’s take the
example of Colorada; this state provides partial real estate reciprocity for all the other states.
It means if you’ve already got your license in any other state, you can still become licensed
in Colorado, but you’ll need to pass only Colorado’s portion of the real estate exam.

What States Have The Hardest Real Estate Exam?

Colorado and Texas are two states of America that have the most challenging exams for
getting a real estate license. Applicants from these two states must study hard and undergo
the examination process to get their real estate licenses.

You might have observed two kinds of people in your surroundings: people who earn a
paycheck every few weeks in exchange for their work and services, called active income.
Another group of people who make a steady income and grow their wealth without doing
anything is passive income, which is considered the key to financial stability. Similar is the
case in the real estate industry, as it is also divided into active and passive real estate
investing.

In this article, we’ll learn about the basics of passive real estate investing, the differences
between active and passive investing and some of the different ways to start passive real
estate investing. So, let’s begin with passive real estate investing.

What Is Passive Real Estate Investing?

Passive real estate investing refers to the income generated from real estate holdings
without actively working or taking management responsibilities on your shoulders. This is an
excellent opportunity for those commercial investors more interested in getting their money
every few weeks without having to do anything.

Passive real estate investing enables investors to complete their daily property management
tasks without being personally involved while still receiving their cash flow. Investors only
have to transfer the necessary capital to the sponsors, and they’ll be responsible for
providing their services and executing your business plan.

What’s The Difference Between Active And
Passive Real Estate Investing?

Active and passive real estate investing differs based on the amount of time and effort
required to put into your real estate investment strategy. Suppose you want to invest in real
estate, but you need to be able to make an effort and take your management
responsibilities; then passive real estate investing might be a good option for you. But on the
other hand, active real estate investment requires you to manage your daily tasks
independently.

For example, if you’re willing to buy a rental property but want passive income from your
property. In that case, you must hire a property management company to look after your
property. You won’t have to deal with management tasks or collecting rent from tenants
because your property management company is responsible for handling all of that work.
That’s what we call passive real estate investing.

Things are the opposite with active real estate investing; there is no property management
company. Such investors need to handle everything from start to finish, including finding
suitable tenants, researching properties, bidding on and managing them. So, both types of

real estate investment have their benefits and drawbacks, and it’s up to you to decide which
one is right for you.

5 Ways To Begin Passive Real Estate Investing

Here are the five most effective ways to begin passive real estate investing.

1. Real Estate Crowdfunding

Real estate crowdfunding has gained popularity in recent years as it’s the simplest
way to begin with passive real estate investing. Crowdfunding sites or platforms pool
money together from different investors to buy commercial or residential properties
that generate income. This investment strategy allows investors (Shareholders) to
earn rental income and earn an appreciation price on the property when it is sold.

Real estate crowdfunding is a passive investment because property management
companies work with their network of managers to search for and manage tenants.
However, it is essential to note that crowdfunding platforms can vary depending on
how hands-off you can be with your investment.

2. Passive Airbnb Business

Passive Airbnb business can be an excellent side hustle in real estate that allows
significant cash flow without doing any work. This business is simple and easy to
understand. You’ll have to acquire an Airbnb rental in a pleasant and attractive
market. Next, consider installing a remote management system and hiring a rental
manager to manage different tasks.

Airbnb Business makes it easier for investors to manage their listings and
communicate with renters using its application. This strategy is highly implemented in
states like California, Arizona and Florida.

3. Real Estate Investment Trust (REIT)

Real Estate Investment Trusts are another passive real estate investing strategy that
is quite similar to crowdfunding. It’s a real estate company that buys and manages
income-generating real estate. There are certain legal conditions that apply to REITs,
such as paying out at least 90% of taxable income to the investors in the form of
dividends.

Many kinds of REITs are based on different industries, including health and retail. In
addition, there are also commercial and residential REITs that can generate a
passive income over time. You can start investing in REITs by using your online

broker to consider publicly traded REITs. Some REITs aren’t publicly traded, but you
can contact individual brokers to invest in non-traded REITs.

When you invest in Real Estate Investment Trusts, you’ll regularly receive dividends.
REITs are very liquid, as you can easily buy and sell shares on the stock market. It is
also a low-risk investment because REITs are very fluid. It means that investors can
always cash out their positions if they want to.

4. Real Estate Syndication

Real estate syndication is a passive investment where investors pool their resources
to invest in considerable projects, mainly commercial properties. This approach
enables investors to acquire properties and participate in real estate investing even if
they do not have the financial capacity to buy that property on their own.

Syndications are just like limited liability companies (LLCs), which allow investors to
become entity members. The lead investor or sponsor within the company is
responsible for all the management tasks, while investors provide the capital required
for the venture.

5. Real Estate Funds

Real estate funds are considered a broader form of mutual funds that provide value
through appreciation. It takes longer than that of REITs, and the shares of mutual
funds are traded and highly liquid. Real estate funds can be a good investment
opportunity for individuals who need more money for traditional real estate investing
and are just looking to start with it.

Pros And Cons Of Passive Real Estate Investing

Passive real estate investing has both benefits and drawbacks. Let’s review some of this
investing strategy’s significant pros and cons.

PROS

Portfolio Diversification

Passive real estate investing enables investors to gain exposure to different properties and
eventually provide an opportunity to diversify their portfolio.

Low Risk Involved

It involves low risk as you’ll not be liable. You don’t have to do any management tasks;
therefore, you’re not responsible for whatever problem arises on the property.

No Landlord Responsibilities

Another benefit of passive real estate investing is that passive investors only need to provide
capital investment, and the company takes care of the rest. It means you won’t have to
engage in the maintenance and operational processes of the property.

Saves Time

You don’t have to appear for daily decision-making meetings and details of property
management. With passive real estate investing, you can focus on other essential things.

CONS

Higher Fees

Passive investors need to pay management fees to the companies, which is slightly higher.
However, the costs vary depending on their investment strategy.

Slightly Lower Returns

Returns on passive real estate investing are lower than on active real estate investing.
However, considering the lack of involvement, many investors still prefer passive real estate
investing even if they get lower returns.

Less Control Over Real Estate Investment

Active investors often need more control over their investments. However, it depends on the
nature of the investment strategy; some investors may not be able to select a specific asset,
while others might have the authority to choose their desired investments.

Frequently Asked Questions (FAQs)

Is Passive Real Estate Investing Cheaper?

Passive investing is cheaper in the sense that investors pay for software rather than paying
a real estate professional who charges high fees. Therefore, passive investing has a lower
expense ratio in comparison to the high expense of active investing.

What Is Passive LLC Real Estate Investing?

LLC stands for Limited Liability Companies, which lets business owners limit their liability
in a situation of business failure. Investors often create LLCs to buy properties and determine
the potential for one property loss to hurt their investments.

How Much Money Is Required To Start Investing In Real
Estate?

The amount of money required to invest in real estate depends on the investments you’re
willing to get involved in. There are numerous ways to get started with real estate investment
but buying a share in REITs can be affordable and beneficial for most investors. Multiple
REIT types depend on the industry, such as retailers and the health industry. In addition, you
can also consider commercial and residential REITs that can generate a good amount of
passive income over time.

Investing in real estate is an excellent opportunity to help you diversify your portfolio and
provide you with a stream of passive income. There are numerous ways to begin making
money by investing in real estate, and this could not only be your side hustle, but it can
eventually become your primary source of income over time.

Real estate investment makes you the owner of a tangible asset that can generate regular
rental income and capital appreciation, which can be significantly helpful in achieving your
financial goals. But as a beginner, if you want higher returns from real estate investment, it is
essential to identify the property’s location, type, and price that suits your investment goals.
While investing in real estate, it is necessary to consider that your expected return on
investment is sufficient enough to justify the risk you’ve taken. In addition, you’ll also need to
consider the usual cost of owning a real estate, which may include utility bills, taxes,
insurance, and periodic maintenance.

Most investors need to figure out where and when to start investing in real estate. As a
beginner, you’ll learn how investing in real estate can make you money and different ways to
begin investing. So, let’s get started with it!

How Does Real Estate Investment Make

Money For You?

If you’re new to the world of real estate and have little to no experience, then these
strategies can be helpful for you to use as your starting point. These strategies include:

1. Real Estate Investment Trusts

REIT is a popular and easy start to real estate investing for beginners. This strategy involves
investing in the value of real estate without making a purchase, repairing, or selling the
property. REITs allow individuals to invest in large-scale, income-producing real estate.

The REIT does not aim to develop and resell a property to earn revenue. Instead, it buys
and develops properties to make them part of its investment portfolio. REIT may be the
easiest way for beginners to start as there are no mortgages to arrange, no tenants, and no
maintenance, and you’ll have a good income stream.

2. Renting Out A Room In Your House

Renting out a room in your house can be significantly helpful for beginners to kick-start their
real estate journey. Consider renting out a room or a portion of your home to get started with
it. Now, you can make two types of contracts while renting out a room: Long-term rental
agreements, which can provide a steady stream of income, and short-term rental contracts,
which means your monthly payment may fluctuate depending upon buyers’ interest. This
investment strategy can be more effective if you’re living in an area that engages tourists
because you already own a property there, and all you’ve to do is rent out a room or portion
of your house to them.

3. Real Estate Property Wholesaling

Real estate wholesaling is a unique strategy, and it’s considered to be one of the fastest
ways for beginners to get started in real estate. According to this strategy, you’ll need to
secure a property under a market value and assign an end buyer to buy the contract. As a
wholesaler, you will not own a property; you’ll make money by adding a fee to the final
agreement.

In real estate, you’ll have to create and maximize the possibilities, and the key to real estate
wholesaling is creating a list of potential buyers. To find your potential buyers, you’ll need to
run a lead generation campaign, which involves marketing your business through social
media, emails, or direct mail and then making a list of interested investors. The list must
include all the essential information, such as the buyer’s name, contact details, permanent
address, etc.

4. Online Real Estate Platforms

Online real estate platforms help borrowers to connect with investors. Here, borrowers are
developers who post projects and deals for which they need financing. Investors can then
finance these projects through equity or debt. In this way, investors can get the benefits of
real estate investing without dealing with ownership, and developers can get the money they
need for their deals and projects. In addition, investors get their income monthly or quarterly,
and they can invest in separate projects and a portfolio of projects.

It is important to note that financing real estate can be just as risky as a direct investment in
real estate. Therefore, it is essential to do your homework before taking any step.

5. Investing In Rental Properties

When investing in rental properties, the first thing you’ll need to make sure is that you can
handle a landlord’s responsibility. It is a great way to secure a fixed monthly income;
eventually, you’ll enjoy earning income consistently. If this strategy is implemented well, let’s
say you’ve bought a suitable property at the right time; you can even pay for your mortgage
and repair expenses with your income.

Some rental property owners prefer their rental income to be active, and some want this
income stream to be passive. Those who wish their rental income to be passive can contract
out their duties to property managers, and property owners who want to do everything
themselves can take responsibility for maintenance, repair, and other tasks to cut costs and
maximize their income.

6. Real Estate Crowdfunding

Real estate crowdfunding is a digital form of investing in real estate. In this form of real
estate investment, investors pool their funds to invest in a large commercial or residential
property. Numerous online real estate platforms provide this opportunity to investors.
Although capital investment is still required in this type of investment, it will be significantly
less than the amount you need to purchase a property on your own.

It is essential to consider the management fee and the lock-in period for your investment in
this type of real estate investment. However, if you need to gain the skills or want to manage
your property, then it would be wise to have minimal input into management.

7. Consider House Flipping

House flipping is considered one of the most common and active forms of real estate
investing. This type of real estate investing requires experience in renovation and marketing
skills. So, there may be better options than house flipping for beginners, but it can offer
significant returns once it’s started following an effective strategy. Real estate investing
involves buying and selling undervalued properties in six months or less to earn a profit. The
goal is to get properties that require renovation and sell them at higher prices after fixing
them.

8. BRRRR Strategy

The BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy is similar to house flipping, but
a difference here is that in the BRRRR method, instead of selling the property, you rent it
out. When you rent out your renovated property and don’t sell it, how will you finance your
next purchase and rehab it? That’s simple: you’ll need to refinance the existing home and
fund the next project, and this process continues. In this way, you can build up your rental
property’s portfolio. However, this strategy requires skills in house flipping and landlord, so if
you’re a beginner, talk to the expert and understand BRRRR strategy thoroughly to secure a
safe position.

Frequently Asked Questions (FAQs)

 

What Is The Most Profitable Real Estate To Invest in?

Commercial properties are considered the most popular and profitable real estate due to
their higher potential for cash flow. The most common benefits of investing in commercial
properties are higher income, lower vacancy rates, and longer leases.

Is Real Estate The Riskiest Investment?

Traditionally, real estate is considered a safe and savvy investment as investors may enjoy
passive income, higher income, tax benefits, and diversification, but it can be risky.
However, as a real estate investor, you can limit your risks by conducting a thorough real
estate market analysis.

What Is A Disadvantage Of Real Estate Investment?

One of the most common disadvantages of real estate investment is that acquiring new
property takes very long, with lots of legal formalities, and tends to have high transactional
costs.

Finding excellent and experienced people in any industry is crucial to success, and similar
goes with real estate. Having a talented real estate agent on your team can provide you with
a competitive edge and prove to be significantly helpful for long-term growth. Real estate
agents stay active and committed to building networks, maintaining good relationships with
them, and ending up costing transactions with them. Companies may find it easier to satisfy
their clients with these professionals.

The problem is that good and experienced real estate agents are challenging to find
because they’re mainly employed. Most of them won’t be interested in moving a brokerage
because they’re either happy where they are or want to avoid taking risks.

To overcome the recruitment issue of these agents, we’ll have to design effective strategies
that benefit both real estate agents and the company hiring them. In this article, we’ll figure
out how to recruit a real estate agent and the process to follow when recruiting a real estate
agent.

Factors To Consider Before Taking Out The
Process Of Recruitment

The best real estate agents often have the same habits, and the following three factors are
similar among them:

They Build Their Network

Real estate agents think differently. They are more focused on the future, and that’s the
reason they build good relationships with existing and new clients.

They Maintain Good Relationship With The Client

Building a good relationship with clients isn’t only to close transactions but also to build trust,
which will be significantly helpful in the future.

They Work Hard To Close Sales

A professional real estate agent creates a strategy and works accordingly. These
professionals are hardworking, focusing on closing sales and maintaining good relationships
with the client.
These are some of the essential factors that need to be considered before recruiting real
estate agents because they’ll help you identify a talented and experienced agent.

Real Estate Recruitment Strategies

Here are ten real estate agent recruitment strategies you’ll need to follow while completing
the recruitment process.

1. Create A Clear And Concise Job Description

Creating a clear and detailed job description is crucial whether you’re looking for a
new real estate agent or an experienced one. The message needs to be conveyed
straightforwardly to let the agents know the company’s objectives and what they’re
offering. Avoid unnecessary cliches that might confuse the agent’s mind.

2. Utilize Your Network

Networking plays a crucial role in the real estate industry. You can use your networks
and your network’s networks to let the majority of people know that you’re looking for
a real estate agent. Recruitment is a continuous process in the real estate industry,
even if you don’t need it. If you wait until you have a vacancy, it could result in a
challenging situation in the future. A good rule of thumb is attending more
professional events, talking to people, and keeping a record of their contact
information. In this way, you can contact agents when you have a vacancy.

3. Build A Strong Brand Identity

A strong and famous brand can be why most agents would want to choose you. A
recognized brand can help real estate agents build trust with potential clients without
working hard for it. However, if you’re not a recognized brand and just starting, it may
be hard to compete with the existing established brands for talented and experienced
agents.

There are some ways you can follow to convince agents if you need a stronger brand
and are just starting as a real estate firm. You’ll need to implement marketing
strategies to promote your company. This step will help show your agents that you’re
active on different social media channels.

4. Encourage Your Agents To Develop Their Brand

Encouraging your agents to develop their brand is considered one of the most
effective strategies when recruiting real estate agents. This strategy can be
implemented by sharing your branding plan with these agents. You’ll explain in the
interview process how you can help agents market themselves.

5. Use Your Marketing Techniques

The same marketing tactics you’ve been using to bring buyers and sellers can be
used to find real estate agents. You’ll need to build your social media accounts, send
emails, and create landing pages to reach out to real estate agents. It’s simple: you
can make an effective marketing strategy for your recruitment process and stick to it.
This process takes time, but by leveraging these marketing techniques, you’ll get
better at it over time, and later on, this marketing campaign for recruitment processes
will turn into a marketing campaign for buyers and sellers.

6. Attend Real Estate Events

As a real estate firm, attending various real estate-related networking events to build
your team is essential. It would help if you had a clear mindset during these events
that you would expand your team and gather information about agents. Once you
collect the contact information of these agents, you’ll have to approach them and
express what you’re looking for.

7. Be A Leader And Set Your Vision

Top real estate agents can be significantly helpful for real estate firms when paired
with the right senior members of your team. When you bring these agents and your
senior professionals close to each other, it allows everyone to learn from each other.
Your best agents will share their knowledge with the new agents, while new agents
can teach more unique marketing strategies to the seasoned professionals.

You’ll have to introduce a strong mentorship program where everyone learns from
one another. This approach can help engage more real estate agents with your firm.

8. Be Honest And Upfront

Being honest and transparent is essential in real estate and across all industries.
When recruiting for real estate agents, it’s necessary to focus on what you know
you’ll be able to deliver, and you should be honest about what you can’t. This
strategy seems simple, but it is the only way your recruitment process will help you
find real estate agents who will stick with you for a long time.

9. Provide Training And Mentorship

New real estate agents are looking for training and mentorship, which is extremely
valuable for their careers and provides them with different opportunities for growth
over time. By providing training and mentorship, your company will ensure that it is
focused on improvements and can deliver excellence in the future. This strategy will
make a difference because only some real estate firms provide training and
mentorship. Therefore, you can increase the possibility of finding real estate agents
by offering training and mentorships within your firm.

10. Offer the Latest Real Estate Software And Tools

To differentiate yourself from your competitors in the real estate industry, offering
your agent the latest real estate technology is essential. For example, Customer
Relationship Management (CRM) is a software that helps business professionals
maintain good relations with their customers and ensure their satisfaction. These
advanced tools will help agents with their work and show potential recruits that you’re
serious about their careers and can go the extra mile to provide the required tools.

Along with CRM, many other approaches, such as marketing, accounting, and data-
keeping, are used in the Real estate industry. If you’ve invested in technology, it will
be helpful in recruitment processes because it shows that you’re working towards
streamlined workflows, eliminating redundancies, and reducing errors.

If implemented correctly, these ten strategies can help you find talented agents and make
your real estate firm a solid and competitive brand.

Frequently Asked Questions (FAQs)

 

How Do You Attract Real Estate Agents To Your Team?

You can attract real estate agents to your team by providing precise and concise job
descriptions. It would help if you made it simple by specifying what you’re looking for and
what would be the exact role that needs to be filled. The aim and objectives of your company

have to be mentioned, and it is essential to avoid unnecessary cliches because they can
confuse the agent’s mind.

What Are Real Estate Agent’s Looking For In Real Estate
Team?

You might be surprised, but many real estate agents are looking for something other than
higher commissions. Instead, these professional prefers those teams or brokerage where
they can build their career and their brand.

What Do People Want Most In Real Estate Agents?

The most attractive real estate agents are those active on social media and can find
properties in the most accessible and effective ways. In addition, they have local knowledge
of their neighborhood, buyers feel comfortable with them, and most importantly, they’re
partners, not just real estate agents.

The advancement in technology has created opportunities for different industries to grow
faster than usual. Real estate is one of them, as this industry has already embraced
technology tools to engage with potential clients. In today’s world, people spend a significant
amount of time on social media. Such an excessive use of social media provides
opportunities for realtors to find potential clients quickly and effectively. Therefore, real
estate professionals need to stay active on social media platforms and keep sharing
valuable content to get the most out of these social networking channels.

We already know the importance of social networking platforms for the real estate industry,
but what are those platforms that realtors are using for marketing purposes? Numerous apps
and channels can be beneficial for real estate marketing. Still, in this article, we’ll explore
some of the most popular and commonly used social networking platforms that enable
realtors to engage with potential clients.

1. Facebook

Facebook is considered to be one of the oldest and most popular social networking platform
s, with a large pool of users. This platform is famous for advertisements, and it serves as a
massive marketplace for not only real estate but many other industries as well. Real estate
professionals have been effectively using Facebook advertisements, which allows them to
target audiences in their desired locations.

Facebook is a well-established networking platform that serves as a marketplace for the real
estate industry. According to a recent report, Facebook has more than 2.9 billion monthly
active users. Considering such a large number of active monthly users, Facebook is the best
social networking channel for real estate agents. There are many ways in which real estate
agents can maximize their marketing efforts, such as listing properties on the Facebook
marketplace to attract new leads and running Facebook ads and advertising campaigns to
target their potential clients. Another effective way for real estate marketing is publishing
Facebook social media posts where real estate professionals can promote open houses,
listings, and referrals.

2. Instagram

Instagram is a social networking platform famous for its visualization. But how is it useful for
real estate agents to generate leads? Instagram allows real estate professionals to
communicate with their clients through high-quality and engaging property images. The
feature of Instagram advertisements is beneficial in promoting new real estate listings or
open houses.

The active users per month of Instagram are comparatively less than Facebook, but they’re
more than 1.3 billion in 2023. This networking platform allows real estate businesses to
promote their success stories, customer testimonials, and reviews using the report feature in
the app or website. Real estate agents can use Instagram effectively by becoming an expert
and influencers for their audience by posting valuable content and by focusing on user
engagement.

3. Youtube

There is no doubt that YouTube is one of the best social media platforms for users. When it
comes to real estate marketing, YouTube can be significantly helpful in showing off your
properties in the form of videos since YouTube videos often rank high in Google searches.

YouTube welcomes videos of all lengths, but short videos of around two minutes are more
likely to go viral. There are many ideas on how real estate agents can use YouTube to get
the most out of it. A virtual tour of the property, client reviews, and making a short video of
the surroundings can help real estate agents engage more clients through YouTube. In
addition, the 3D rendered videos are doing great on YouTube, and it is an effective way to
attract more clients by displaying a clear and 3D view of the property.

4. LinkedIn

LinkedIn is different from other social networking platforms. It’s more about networking rather
than advertisements. LinkedIn can be significantly helpful for real estate agents in
connecting with other real estate professionals such as appraisers, inspectors, property
management companies, and many more. Job hunters often use this networking channel,
but agents can also use it for building connections.

There is an option of creating and joining groups on LinkedIn, which is a great way to
connect with others in your particular industry. Real estate professionals usually ask
questions or answer the questions of others, which results in more engagement and
increases the opportunity of being hired by potential clients. In addition, creating a
professional profile page and posting valuable content can help improve the conversion rate
of visitors.

5. Tiktok

Video marketing is increasingly gaining popularity, and it is eventually going to take the video
content industry to new heights. TikTok can help real estate professionals in building their
brands and engaging with more customers. The users are immensely diversified in TikTok,
ranging from young adults to middle-aged people, and such a more comprehensive
audience creates a potential market for real estate agents in TikTok.

TikTok is famous for showing content based on the interest of the user, which creates a
personalized experience. This feature is helpful for realtors to reach a wider audience
interested in buying a property.

Real estate agents can use TikTok by creating a short video content of the property to
showcase the features of a house and give your audience a better idea of what they’re going
to sell. Another method real estate agents can use to engage users on TikTok is by showing
their business, telling their success stories, and positive feedback from previous clients.

6. Pinterest

Pinterest is one of the most popular visual platforms. This platform encourages high-quality
graphics, which may include listings as well as images related to the content you’re
publishing. Pinterest is included among the best real estate social networking platforms
because this channel is popular for home decor, which can help real estate agents find
people who are dreaming about their future homes.

Local boards on Pinterest can be effective in connecting real estate professionals to their
community. Real estate agents can use local boards on Pinterest to publish their local
listings and provide information about nearby places like restaurants and parks to establish
trust. Another feature of interest that needs to be considered is joining group boards that are
relevant to the real estate industry. This feature is going to give real estate agents the
potential to increase their reach.

7. Twitter

Twitter isn’t considered to be one of the best marketing channels because it is used to either
stay up-to-date or share personal opinions. This platform is mainly about the latest news and
trends, but users can still carry out marketing practices on it.

Real estate agents can create a post and use relevant hashtags to reach their target
viewers. Another strategy these agents can follow is keeping their positions opinion-based or
newsworthy, for example, sharing mortgage trends in the market. Additionally, these
professionals can ask a question or state a strong opinion on Twitter to engage the targeted
audience.

 

Benefits Of Social Networking Platforms For

Real Estate

The real estate market is highly competitive. It requires real estate businesses to ensure
their online presence in order to reach an audience. Social networking provides many
opportunities and benefits to real estate businesses, which include:

Wider Reach

One of the main objectives and benefits of social networking is its reach to a broader
audience. When a social media platform is managed strategically, it can reach thousands of
potential customers. And as the marketing campaign or advertisement of real estate
businesses reaches more audience the chances of getting more clients increases.

Brand Awareness

Social networking channels can help real estate agents build their brand and position
themselves as an expert in real estate. These professionals can share valuable content by
using their knowledge of real estate and attract potential clients from targetted areas.

Cost-Effective Marketing

When social media marketing is compared to traditional marketing methods, we see a huge
difference. Social media is a more cost-effective and more reliable method for marketing.
Real estate agents can reach particular demographics and engage with the target audience
with meager and affordable costs.

Increase Revenue

As we’ve already discussed, real estate agents reach out to a broader audience and engage
with targeted users with the help of social networking platforms. This approach significantly
increases the revenue of these professionals because now they’ve more opportunities and
clients to deal with. In addition, sharing valuable content on social media channels enables
real estate agents to gain the trust of their audience and eventually make them their potential
clients.

Network Building

Social networking platforms offer various opportunities for building networks worldwide. It
has enabled real estate businesses to connect with their clients, reconnect with their past

clients, invite new clients, and keep themselves updated on recent market trends. Social
media channels help real estate businesses to join industry-related groups, connect with
people, and share and gain more ideas. This strategy is significantly helpful for real estate
agents to create referrals and partnerships through networking.

We’ve discussed some of the best and most used social networking platforms in this article.
These platforms are different from one another, considering their marketing and networking
features, but all of them are significantly helpful for the real estate industry. Facebook and
Instagram are the most effective social networking channels for real estate because these
platforms have billions of monthly visitors. Similarly, other platforms like YouTube, TikTok,
and LinkedIn can be effective when it is used following a well-designed strategy. These
social networking platforms are beneficial in many ways for real estate. They can build your
personal brand, be cost-effective, and be helpful in network building.

Frequently Asked Questions (FAQs)

 

Which social networking platform is best for real estate
marketing?

Facebook and Instagram are considered to be the most effective social networking platforms
for real estate marketing due to the huge amount of traffic on these platforms.

What social media should realtors have?

Realtors need to have the most effective social media accounts, which are Facebook and
Instagram. TikTok is increasingly gaining popularity recently, so it would be wise to include
this platform in the list as well.

What type of marketing is best for real estate?

Real estate businesses can do marketing on social media in many ways. The most effective
way is creating an optimized website where real estate services are being offered. In
addition, setting up a social media presence on different channels can have good results as
well.

You might have noticed a property with a messy outlook and old-fashioned structure near
your home town. If yes, you would have also wanted to buy that property for a small price.
Well, that’s normal; you’re not alone. Every real estate investor is wondering about the same
situation, and they’re more likely to go for skip tracing to find out the owner of a home or
property before making a purchase offer. But before getting into more details, it’s essential to
understand what skip tracing is in real estate and how it works. In this article, we’ll provide
detailed information on Skip tracing. So, let’s get started with it!

What Is Real Estate Skip Tracing?

Real Estate Skip Tracing is tracking down and finding home or property owners. This
process is essential for real estate investors willing to purchase an income property that still
needs to be listed in the market. Therefore, real estate skip tracing is an effective way to
land off-market deals.

These absentee or missing property owners are often ready to sell their property. Still, they
either don’t want to go through the process of putting their property on the market or are
unwilling to work with real estate agents. Considering the current situation, such property
owners are likelier to have other business activities or urgent and important matters to deal
with. This scenario creates an excellent opportunity for real estate investors to make a
profitable deal for both sides.

How To Do Skip Tracing In Real Estate?

Skip tracing is a concept that comes from police investigations. It is a legal term that can be
applied in real estate for lead generation. As a real estate investor, you can carry out the
skip tracing process by yourself or hire a professional skip tracer to do the job for you. These
professionals either have access to different software for tracing, or they might approach
their private referrals to get the required data. However, if you’re willing to skip-trace a
property owner, follow the following steps to ensure an effective skip-tracing process.

Step 1: Reaching Out Through A Phone Number Or Email

Address

As a real estate investor, the first step you need to take is to pick up your phone and try to
reach out to the property owner through a phone call or email. If the property owner answers

the phone or email, you have what you need and won’t have to continue the more intensive
skip-tracing strategies.

Step 2: Tracing The Mail Address

However, if the owner needs to respond to your phone calls and emails, another step is to
check the mailing address. The owner may not be at the property address, but they may be
at the mailing address.

Step 3: Reaching Out Through Delivery Services

Now you’ve figured out that the owner is at the mailing address but they’re still not
answering, the next step is to try delivery services like FedEx and UPS. Most people will
respond to such delivery services as there is a different intent behind these delivery services
that engage people’s attention.

Step 4: Checking Other Addresses Associated With The
Property Owner

Do you still need to reach out to the property owner? There’s another step to get in touch
with that owner. You’ll have to start looking for all the addresses of the property’s owner.

Step 5: Searching The Property Owner On Social Media
Channels

Social Media is one of the most effective tools in finding the people you want to get in touch
with. Now you’ll have to search for the property’s owner on Facebook, Linkedin, Twitter,
Instagram and many other platforms. However, if you don’t contact the owner through social
media platforms, you can search for people with connections with the owner. They might be
friends, neighbours or relatives. You can request them and politely ask about the property
owner.

Step 6: Reaching Out To The Neighbors And Relatives Of the
Property Owner

Reaching out to the neighbours and relatives is the next step if the strategy of contacting the
homeowner needs to be revised. You’ll have to request the owner’s neighbours to help you
get some information about the owner. However, if you can contact the owner’s relatives,
you can inform them that you’re interested in the property, and it is essential to meet with the
owner.

Step 7. Hire A Private Investigator

When you’ve done everything you could to find the homeowner, and you’re unable to get in
touch with them, then hiring a private investigator might be the best option. These
professionals can access specialized skip-tracing services only available to authorized
people. These skip-tracing services allow investigators to access credit reports and other
databases that might help reveal various addresses or connections. This information is
significantly helpful in reaching out to the property’s owner.

What Are The Pros And Cons Of Skip Tracing?

 

Pros Of Skip Tracing

Here are some of the most common reasons why you should include skip tracing in your real
estate investing strategy:

Unveils Hidden Opportunities

Real estate skip tracing provides opportunities to a large group of property sellers and
distressed homeowners. As a real estate investor, you’ll identify distressed properties and
meet their owners who are eager to sell. In this way, you’ll be able to gain an edge over your
competitors and emerge as a successful real estate investor over the period.

Skip Tracing Gives You An Edge In The Competition

Skip tracing is essential in real estate as it puts you one step ahead of the competitors. Most
real estate investors aren’t willing to pay for skip tracing services, and if you are ready to pay
for such services, you’ll be able to explore some exceptional deals.

Re-Engagement With The Leads

Some of the real estate leads vanish, and you won’t be able to get in touch with them. But
skip tracing allows investors to re-engage through conversations and building relationships.
This strategy is more likely to increase the opportunities of closing the deals.

Time Saving And Efficient

Real estate skip tracing can save a lot of time. As an investor, you won’t have to manually
search or drive in pursuit of distressed properties. Instead, you can focus on more important
matters that require your attention.

Automated Marketing

Skip tracing results and data from some solid software enable investors to automate their
marketing process. As an investor, you’ll need to gather the information of multiple
properties during skip tracing. And then you’re all reading to start an automated marketing
campaign. You can automate emails, text messages, or voicemails.

Cons Of Skip Tracing

While real estate skip tracing can be beneficial in many ways, there are a few limitations
investors need to consider.

Expensive

Real estate skip tracing can be expensive because whether your investigator has found the
desired information or not, you’ll pay for skip tracing services. However, it happens rarely
that an investigator gives you nothing regarding your desired information about the property.

Angry And Confused Reaction From Homeowners

During skip tracing, real estate investors often encounter property owners who are either
angry or confused about how you got their personal information. Therefore, as an investor,
you’ll have to deal with such situations, and with your concerns, you’ll have to try to solve
their problems as well.

No Sale Guarantee

No sale guarantee is one of the significant drawbacks of skip tracing. Reaching out to the
homeowner through skip tracing doesn’t mean the deal is done. Skip tracing will help you
initiate your conversation with the homeowner, but many other factors play an essential role
in securing a successful transaction.

Frequently Asked Questions (FAQs)

Is Skip Tracing Legal?

Skip tracing is legal as long as you don’t break any law. This means it is legal if you don’t
violate any laws while taking the measures to get the desired information. On the other hand,
if you’re forcing someone to get the information or stealing documents for that purpose, then
it will be considered a crime.

How Much Does Real Estate Skip Tracing Cost?

The expenses of real estate skip tracing vary depending on the services you choose for your
work. Hiring private investigators can cost you more as compared to using online tools. If
you’re willing to go for online services, there are various options to choose from; some online
services offer free trials, and some require instant payment. However, it would be better to
research and compare different skip-tracing services and select the one that best suits your
needs and budget.

How Long Does A Skip Trace Take To Gather The Desired
Information?

The Skip tracing period varies from investor to investor, depending on how important and
urgent it is to find the owner. So, there’s no exact period for skip tracers to gather the
information. There are many instances where skip tracers have found the homeowner within
two days, but some of these professionals also take up to one month to finish their work.
In conclusion, real estate investors need opportunities to get the best deals in the market
and skip tracing is one way that has enabled investors to get one step ahead in the
competition. Skip drawing connects investors with potential clients and provides detailed
information about distressed properties, which can lead towards a successful transaction.

 

Real Estate business involves a lot of tasks. It’s not only about finding new homebuyers and
sellers but also managing clients, handling the paperwork, transactional activities, and many
other things that also need to be considered. Now, these tasks can be a lot to be handled on
your own, and this is where a real estate virtual assistant can be significantly handy for your
business.
In this article, we’ll explore real estate virtual assistants and types based on the tasks
assigned to them. In addition, we’ll discuss the role of a real estate virtual assistant in detail.

What Is A Real Estate Virtual Assistant?

A real estate virtual assistant is a professional in the real estate industry who assists real
estate agents and brokers in managing their tasks. These professionals work remotely, and
they’re capable of using advanced communication tools to guide and collaborate with clients
effectively. Real estate virtual assistants handle standard business operations such as lead
generation, cold calling, finance tracking, database management, and website development.
We’ll go through the main role of a real estate virtual assistant in a while, but first, let’s
discover the four types of these professionals.

Four Types Of Real Estate Virtual Assistant

Administrative Virtual Real Estate Assistant

Administrative Virtual Real Estate Assistants are the professionals who manage the
administrative work. They are experts in office management, data entry, scheduling, and
back-office activities like bookkeeping.

Marketing Virtual Real Estate Assistant

This real estate professional assists in creating and executing marketing strategies on
different channels like search, email, and social media. They are experts in creating quality
content and helping real estate businesses to engage more clients over time. Marketing
virtual real estate assistants work with virtual sales assistants to provide the best results.

Customer Support Virtual Real Estate Assistant

Customer support virtual Real estate Assistants fall in the category of customer services.
They handle calls and emails from clients to ensure an overall pleasant experience. These

real estate professionals guide customers through sales processes, respond to their queries,
and gather feedback to highlight the flaws and strengthen the current ongoing system in the
organization.

Sales Real Estate Virtual Real Estate Assistant

These professionals are contractors who help real estate businesses to enhance their sales
process through different approaches. They are experts in reaching out to their clients via
cold calls and email, and they’re more likely to close better deals.

Role Of Real Estate Virtual Assistant

Market Research

Market Research is a tool that allows real estate virtual assistants to find areas where real
estate services are required. It is a starting point where the process of finding new clients
begins. Market research involves website analysis, social media research, and Google
trends. For example, real estate virtual assistants can use website analysis to identify
websites that have been visited more often by people who live in areas where you're looking
for clients and what type of content is more engaging to those potential clients. This strategy
helps them tailor marketing strategies according to the requirements of the clients.

Social Media Marketing

Social Media is considered to be one of the most popular marketing channels in 2023.
However, real estate virtual assistants need to design underlying strategies to govern their
efforts on social media. Suppose there needs to be proper research and thought. In that
case, these professionals will need help understanding their potential customers, and
eventually, the money spent will be wasted, and the risks associated with it might hurt the
overall business. So, it’s important to craft an effective strategy for social media marketing
and make efforts to implement it in a timely manner.

Now, to set up a social media marketing strategy, real estate virtual assistants will consider
social media channels on platforms where the majority of real estate clients exist. They need
to create and share engaging images of the properties on specific social media platforms.
They’ll have to optimize the content for different screen sizes to support other devices like
mobile phones and discover trending topics related to real estate and hashtags to reach
relevant users.

Setting Up Appointments

Realtors find it challenging to schedule appointments as it can be time-consuming and
require a lot of effort. The realtors have a lot of work to deal with, and scheduling
appointments is an extra burden on them. Therefore, real estate virtual assistants can assist
in such crucial situations. Their expertise includes managing monthly calendars and booking
meetings with prospects, appointments with buyers and sellers, and keeping a record to
avoid meeting overlaps.

Email And Live Chat Support

Email and live chat support are essential in any real estate business. A virtual assistant
helps real estate businesses by responding to emails and chats from clients, answering
different questions about properties, and keeping a follow-up on leads and their inquiries. In
addition, these professionals create and share newsletters, and they're required to provide
reports on the email campaigns.

Website Management

Websites are created to drive business, and it is challenging to compete with existing
authority websites in the real estate industry. Real estate Virtual assistants need to ensure
the best user experience for clients by managing a website in the best possible way. They’ll
have to consider the speed of the website, accessibility, proper navigation setup, and
optimization for Google searches.

However, these targets are only possible to achieve with a virtual assistant who is an expert
in these techniques. They need to be professional in planning and development. They must
have technical skills to install, customize, and maintain the proper functioning of a real estate
website.

Management Of Expenses

Real Estate Virtual Assistants are required to keep a record of all the expenses, bills,
payrolls, and reimbursements and make sure that everything is well organized. However,
some realtors manage this task by themselves, but a good option is to hire a virtual assistant
and focus more on other activities related to your business.

Benefits Of Having A Real Estate Virtual Assistant

Virtual Assistants can be of great benefit when it comes to the real estate business. They
can help you improve your productivity, provide better customer service, and save money in
the long run. These professionals ease the burden of realtors by performing time-consuming
tasks like scheduling, data entry, and social media management.

Here are some of the benefits of having a real estate virtual assistant for your real estate
business which include:

Productivity Is Improved

The real estate business requires continuous effort, which is challenging to be handled by
real estate professionals themselves. There are a lot of tasks that need to be performed, but
it doesn’t mean you’ve to do it alone. For example, making phone calls, updating databases,
and sending emails are time-consuming tasks, but they can be managed remotely. This is
where the virtual assistant provides benefits by allowing realtors to concentrate on more
important tasks to grow their business.

Better Time Management

Another benefit of having a real estate virtual assistant is to save time. As we’ve already
mentioned, these professionals ease the burden of work on realtors and provide them with
some extra time and a relaxed schedule where they can focus on more important aspects of
their business. Therefore, it is a good option to leave the burden of such small tasks to your
virtual assistant and take some rest because good rest means good business, too.

Flexibility

Real estate virtual assistants are flexible in their work, and that’s what engages most of the
realtors in the market. Virtual Assistants provide services online, so they’re available anytime
for your tasks. Realtors can outsource the tasks they want to be done by virtual assistants to
save time as well as money.

Customer Satisfaction

Customer Satisfaction is extremely beneficial for the real estate business. But, the number of
customer feedback increases over time, and eventually, it becomes impossible for realtors to
manage the feedback by themselves. Hiring a virtual assistant won’t only save time but will
also consider the overall customer experience and satisfaction.

Cost-effective and money-saving

When realtors go for full-time employees, that is going to cost them a significant amount of
money. It is a good option for small and medium-sized real estate businesses to hire virtual
assistants, which is a cost-effective solution. These professionals often charge an hourly
rate, which can be more affordable as compared to hiring a full-time employee. In addition,
real estate virtual assistants can work remotely, and you are not required to provide any
office space to them.

The Future Of Real Estate VA’s

In the digital world, remote jobs are gaining popularity and becoming more prevalent.
Considering such circumstances, the future of real estate virtual assistants looks promising.
The demand for virtual assistants is expected to grow over time for real estate professionals
as they gradually recognize the benefits of outsourcing. In addition, the ever-evolving
technological advancement can significantly help Virtual assistants by providing improved
communication tools and automation devices. Therefore, real estate virtual assistants are
going to play a vital role in the real estate industry in the near future.

In conclusion, real estate virtual assistants provide numerous services to real estate
businesses. They assist other real estate professionals in administrative operations,
marketing, customer support, and sales. This approach is beneficial to realtors in the sense
that it enables them to focus on core business activities. The real estate virtual assistants
can enhance productivity, manage time effectively, entertain customers, and they’re flexible
in their work. Therefore, it is important to find the right real estate virtual assistant for your
business and enjoy a relaxed and comfortable daily schedule to make more productive
decisions for your business.

Real Estate Investment Trusts (REITs) allow investors to put their money in commercial
properties without actually buying and managing those properties by the investors
themselves. In this article, we’ll cover all the main aspects of REITs including what it is and
how it works. Further, we’re going to discuss its types, pros and cons and why should you be
investing in REIT. So let’s get started with it!

What Is A Real Estate Investment
Trust?

Real Estate Investment Trusts are like mutual funds that own or finance income-generating
real estate. This income-generating real estate includes warehouses, apartments, malls,
hotels, and self-storage facilities. REITs are similar to purchasing a stock and owning a
share but here the investment needs to be in real estate properties. It offers regular income
streams, capital appreciation, and diversification to the investors.

REITs buy real estate projects with the money invested by individuals and institutions. Each
shareholder of a REIT scheme earns a share of the generated income through selling or
renting the real estate property. And unlike other investment companies, REITs don’t resell
the purchased property but they develop real estate properties to operate them as part of
their portfolio.

How Do REIT’s Work?

REITs were created to provide opportunities for all individuals to benefit from investing in
income-generating real estate. The investors of REIT are allowed to own or finance
properties in the same way everyone invests in other industries, through buying a stock. The
shareholders of a REIT earn a share of the income generated through investments in real
estate without going out to buy and develop a property.

The REIT industry is diversified which offers many benefits to the investors. It is classified
into two categories: Equity REITs and mREITs. Equity REITs own property types that
include offices, hotels, shopping centers, apartments, and many more. On the other hand,
mREIT or Mortgage REIT owns both residential and commercial properties. Equity REITs
derive most of their revenue by renting out their properties while mREITs benefit from
interest earned on their mortgage investments.

Congress established a specific set of rules for REITs to operate. A REIT is an entity that is
designed on the model of mutual funds and it is treated by the Internal Revenue Code as a
corporation. The IRS implements rules for an entity to be qualified as a REIT which include:

●   75 percent of the income generated by the corporation needs to be coming from real
estate as rent, interest, or from sales of real estate properties.
●   95 percent of income from the corporation must be passive.
●   The assets of the corporation must have at least 75 percent of real estate assets.
●   90 percent of taxable income must be distributed among shareholders annually as
taxable dividends.

The REIT and rules created have evolved to meet the requirements of real estate industries
in the modern world. However, they have remained true to the mission laid out by Congress.
The aim is to make the benefits of income-generating real estate accessible to anyone and
that’s how it works.

What Are The Types Of REIT?

Real Estate Investment Trusts are divided into three categories by investment holdings:

Equality REITs

Equity REITs finances and manages income-generating properties. They operate more like
a landlord. They mainly focus on collecting rent checks and reinvesting into the property.
Thus, the revenues come primarily through rents and they’re not intended to resell the
purchased property.

Mortgage REITs

Mortgage REITs or mREITs provide financing for income-generating properties by buying or
originating mortgages and mortgage-backed securities. mREITs earn income from the
interest generated from investments. For example, when a person takes out a mortgage on
a house, mREIT might purchase that mortgage from the original lender and receive the
monthly payments while generating revenue through interest income.

Hybrid REITs

Hybrid REITs follow the investment strategies of both equity and mortgage REITs. These
REITs own and manage real estate properties as well as commercial property mortgages.
Real Estate Investment Trusts are divided into three types by trading status:

Publicly Traded REITs

Publicly Traded REITs are traded on an exchanges. These REITs can be bought using an
ordinary brokerage account. Publicly traded REITs offer the most liquid stock, which means

investors can buy and sell REITs much faster. According to the National Association of Real
Estate Investment Trusts, there are 200+ publicly traded REITs on the market.

Publicly Non-Traded REITs

Publicly non-traded REITs are registered with the Securities and Exchange Commission
(SEC) but they’re not available on National Stock Exchanges. These REITs can be
purchased from a broker participating in public non-traded offerings. This type of REIT is
highly illiquid because they aren’t publicly traded.

Private REITs

Private REITs are not SEC-registered and they’re unlisted as well, which makes it harder to
value and trade them. Such limitations on Private REITs make them less attractive to
investors.

Pros And Cons Of Investing In REITs

 

REIT Pros

Portfolio Diversification:

Investment in REITs ensures the diversification of the real estate portfolio. This type of
investment offers diversification away from all other traditional stock market investments.
Investors can even further diversify their portfolio within REITs by focusing on particular real
estate assets such as office REITs, retail REITs, and Healthcare REITs. In addition,
investment in REITs can also diversify your portfolio geographically. They allow investors to
buy properties in different cities, states, and countries.

Higher Returns:

Investors are always looking for opportunities that can provide them with maximum results.
REITs are a good option for investors as they can allow their wealth to grow through steady
capital appreciation over time.

Passive Income:

Investors after making the initial investment don’t have to do anything else to earn a return
on their investment. The REITs do not need investors to manage the properties they own,
rather they hire property management firms and deal with the contractors.

Liquidity:

It takes a while when you’re selling or buying a property. But REITs are exceptional liquid
investments. You can buy and sell REITs much faster which makes them appealing to it
appealing potential investors.

No Corporate Tax:

REITs can claim special tax treatment as long as they abide by the rules set by the IRS. The
REITs are not taxed on the entity level but the income is passed through to the shareholders
and they are taxed at the individual level. This not only helps in avoiding double taxation but
also drives higher returns for investors.

Easy To Get:

REITs are easy to invest in and they’re available to almost any investor either it be large or
small as long as they have a brokerage account and a sufficient amount of money to buy at
least one share of publicly traded REIT.

 

REIT Cons

Tax On Dividends:

Remember to note that the dividends are often taxed at a significantly higher rate. These
dividends are taxed as ordinary income.

High Potential Fees:

The non-traded REITs can charge investors with a high up-front fee. These REITs are more
likely to have annual management fees and it is very much possible that the management
team takes a percentage of profits in the form of promoted interest.

Sensitive To Interet Rates:

REITs can be very sensitive to changes in interest rates. The higher interest rate might pose
trouble for REITs prices. The sensitivity to interest of REITs is because the value of trust is
tied to the treasury yield, so in case the yield increases the value of REIT is more likely to
decrease.

Trends Can Affect Value:

Trends can affect REITs. For example, if someone invests in REIT with a portfolio of
garments shop in a mall then they could see their investment going rapidly down if the mall
or garments fall out of trend.

Should I Invest In REIT?

REITs are the best options for investors who have just entered into real estate or those who
want to have stable cash flows from properties that are well-diversified. REITs, not all but
most of them are non-traded which means they don’t have to list their shares on an
exchange. Considering the above facts, most of the REITs are more likely to be illiquid and
investors will have to wait for the REIT to liquidate which normally happens after 5 5-year
period. Therefore, REITs won’t be a good option if you need liquidity. However, if you’re
looking to add large-scale real estate properties to your portfolio then REITs are a great
option for you.

Conclusion

In conclusion, Investment in Real Estate Investment Trusts favors investors who are willing
to diversify their portfolios. Such investors won’t only get higher returns on their investments
but their income is more likely to be passive. In addition, REITs are easy to get, investors
with small or large investments are eligible as long as they have a brokerage account and
enough money to buy at least one share of a publicly traded REIT. Real Estate Investment
Trusts are divided into types by investment holding and by trading status. Investors can
select any type depending on the amount of cash they have and their personal preferences.
However, investors need to thoroughly go through the downsides of REITs and adopt the
strategy that is useful in tackling the downsides of REITs.

When we think of selling a property, we always wonder about its value in the local market.
This approach requires effort, and certain factors must be considered while finding your
property’s worth. In this scenario, an Appraisal is a great way to analyze the local market
and get detailed information about the recent sales in the neighborhood.

This article will discover an appraisal and how it works in real estate. We’ll go through the
complete process of property appraisals and important factors that need to be considered.
So, let’s dive deep into it and discuss Appraisals in detail.

What Is Appraisal In Real  Estate?

Appraisal is the estimated price of a property in a market at the current time. This process is
carried out by running a Comparative Market Analysis (CMA). Similar properties in the
neighborhood that sold within 90 days play an important role in determining the net worth of
your property. You’re living in an area where few sales took place. Then, the method of
Comparative Market Analysis will need to be more efficient to fetch accurate data. In this
scenario, real estate agents may extend the comparison search period. So, there is flexibility
in search periods of neighboring properties, and those 90-day periods can extend up to 6 or
12 months, depending on your local market conditions.

What’s The Purpose Of Appraisal In
Real Estate?

As we’ve already mentioned, the main purpose of appraisal is to figure out the estimated
value of your property, but there are other purposes. The appraisal also helps determine
how much value renovation of your property can add to its net worth. In addition, appraisals
are essential to identify ways to add value to your property before selling. Appraisal can help
you determine your property’s selling points and the approach towards this strategy to sell
your property at a a high price. However, it’s just an estimate with no legal standings, and
most real estate agencies offer this as a free service.

What’s Involved In A Property
Appraisal?

Real estate appraisals involve many factors that will help determine your property’s
estimated market value. Some of the most important factors involved are:

Location:

Location matters, and real estate agents emphasize it. An agent will look at the streets your
property is in, and the local amenities are of great importance as well. Public transport and
school catchment areas are thoroughly considered. However, if your property is far from
everything, that doesn’t mean it will be sold cheaper. Sometimes, buyers look for a property
with a peaceful and quieter surroundings.

Size Of The Property:

An Appraisal involves the property size, which a real estate agent measures. It includes the
size of the structure on the land, the size of the block, and other spaces within the property.
For example, an agent will visit the property to see how large the living room is or how wide
the house’s lawn is. In addition, the agent will also look at the outside area to check whether
there is a parking area and how much area it covers in a house. Then, the agent will
compare these size measurements with other properties in your area.

Number Of Bedrooms:

A higher number of bedrooms means a higher price for the property. Well, it’s not only about
the number of bedrooms in a house; the real estate agent will also consider the size of the
bedrooms. They may consider that an attractive view or any other engaging thing about the
rooms can significantly impact the property’s market value.

Required Improvements:

Every property needs some improvement, but some imperfections need to be improved.
Real estate agents are experts in analyzing property to suggest what needs to be improved.
Depending upon the property’s condition, these improvements may vary from simple paint to
reconstructing the entire block. These efforts you make can make a world of difference to the
price before and after renovation.

Fixtures And Fittings:

When you’re selling a property, it doesn’t mean you’re selling everything along with it. For
example, light fittings do not necessarily need to be included. The agent will look at the
fixtures and fittings and ensure whether they will be included in the sale price.

Structure Of The Property:

Better structures get you more money; it’s as simple as that. A buyer is more likely to
request a building report; if it’s not in a strong condition, the report will show the results.

However, your property doesn’t need to be in perfect and modern condition but needs to be
built better.

Ease Of Access To The Property:

Ease of access to the property means access to the front door, access to a car, and utilities.
Most people often ignore this factor, but a potential client will always consider ease of
access a major factor.

Planning And Restrictions In The Area:

The real estate agent will look at the area near your property to see if there are any
restrictions in planning in your particular block. This factor is also going to have a significant
impact on the market value of your property.

Market Conditions:

The market condition will always dictate the value of your property. An agent will observe
your area’s market conditions and recent sales to get an idea of your property’s price.

Overall Presentation Of The Property:

The property you sell needs to attract buyers with its exceptional presentation. The overall
presentation of the property can be enhanced using rented furniture or other ideas you may
have.

The Complete Process Of Property
Appraisal

The process of property appraisal involves four steps, including:

Step 1: Booking Your Property Appraisal

Property Appraisals are more likely to be free. A real estate agent in your local area can be
the best person who will give you a better understanding of your property’s value.

Step 2: State Of Your Property

You don’t necessarily need to prepare your home for an appraisal. Real estate agents are
experts and are more interested in the number of bedrooms, size, and the property’s overall
structure.

Step 3: A Property Visit Of  An Agent

A real estate agent visiting your property will ask a few questions. And you don’t need to be
afraid to say what’s on your mind. You’ll need to be honest and mention all the renovation
needed and what you’ve done to maintain the house in good condition. You may also ask
questions from your agent, such as how they will plan on marketing your property. So, The
conversation between you and your agent needs to be smooth and comfortable.

Step 4: Appraisal Figure And Supporting Documents

Your real estate agent will visit your property again at a price they believe suits the market. It
will also include supporting documents, such as sales of comparable nearby properties
within the last 90 days and a summary of market trends.

Why Should You Get A Property
Appraisal?

Remember that appraisal is not always about selling a property. It can also be about
determining the worth of your property in the current market. An Appraisal can help you
figure out the estimated price after you’ve renovated the property and now want to check the
worth of your property in the market. Similarly, if you are willing to upsize or downsize your
house considering your family requirements, then you’ll also want to know the worth of your
property after doing that. Some of the main factors that require you to get an appraisal
include:

Family Requirement:

When planning to start a family, your needs will change over time. You’ll need more space in
the house. Then, you’ll have to plan for upsizing your property and an appraisal to know the
worth of your updated house. On the other hand, if you don’t need a family home anymore,
the same approach is followed here as well.

Financial Reasons:

The change in financial condition is one of the most common reasons many people decide to
sell their property. When you don’t have enough investment to improve your property, getting
an appraisal is a good option to get an idea of your property’s worth in its current state.

Location Changes:

Certain factors engage you in an appraisal of your property. For example, you have a job
miles away from your house and can’t be there on time. In this scenario, considering an
appraisal for your property is the best option.

 

Final Thoughts:

The good thing is that appraisal isn’t just about estimating the property’s worth and selling it;
it is done for many reasons. It is done to know the worth of renovated property and for tax
purposes when valuing charitable donations and other reasons. Still, the most familiar form
of appraisal is for a property. In addition, it is significantly important to consider the factors
involved in property appraisals. Your real estate agent will focus more on the structure,
number of bedrooms, and ease of access to the property. And all of the factors explained
are of great importance in deciding the worth of your property.

Have you ever wondered how important marketing is in real estate? If not, that what real
estate marketing companies do to generate more business by effectively marketing their
services. Top real estate marketing companies in the United States help agents and brokers
find potential clients by selling their services and brands. These marketing companies use
tools like email marketing, websites, client relationship management (CRM), and social
media to accelerate and automate marketing efforts.

We’ve researched and evaluated dozens of real estate marketing companies in the United
States based on their price points, comparison of their features, and customer reviews.

In this article, we’ll go through top real estate marketing companies doing exceptionally well
and generating more business through their marketing services in the United States.

1. Forestar Group, Inc.

Forestar Group Inc. is a real estate marketing company based in Arlington, Texas. This
marketing firm focuses on residential lot developments and operates in 52 markets and 20
states.

This company held 73,000 lots and delivered 12900+ residential lots as of June 30, 2023.
Additionally, Forestar Group Inc. is a majority-owned subsidiary of D.R. Horton, considered
the largest homebuilder firm by volume in the USA.

This real estate marketing company aims to develop and expand its marketing services to
become a nationwide developer. Considering its proven track record, potential alliances, and
regional diversification, the company is well set to achieve its goals shortly.

Company’s CEO: Daniel C. Bartok

Number of Employees: 309

Financial Results (2022)

● Revenue: $1.3 billion
● Net income: $245 million
● Earnings per share: $4.30
● Dividends per share: $1.20

2. Century 21

Century 21 is an American real estate marketing company established in 1971. In California,
this Company was founded by two real estate agents, Art Bartlett and Marsh Fisher. Century
21 owns a vast network of offices worldwide—approximately 14,000 franchised broker
offices in over 80 countries, including 147,000 salespersons.

The Company aims to provide independent brokers and real estate agents the ability to
utilize their skills and achieve the best possible results in this competitive market. Century 21
achieved one of its milestones in 2016 by receiving An award for having satisfied first-time
and repeated home sellers and buyers.

Company’s CEO: Michael Miedler

Number of Employees: 147,000

Financial Results (2022)
● Revenue: $6.2 billion
● Net income: $1.2 billion
● Revenue growth: 10%

3. Landsea Homes Corporation

Landsea Homes Corporation is a real estate marketing company based in Dallas, Texas. It
is a publicly traded residential homebuilder intended to build quality and sustainable
communities in some of the most demanded areas in the United States. This firm has
developed its portfolio in New York City, New Jersey, Boston, Arizona, Texas, Los Angeles,
and California.

This real estate marketing company owns a portfolio of about 15,000 residences within 14
states of the USA. The properties sold by this firm typically cost between $200,000 and
$500,000.

Landsea Homes Corporation has achieved a magnificent milestone. Recently, the company
was named the 2022 winner of the prestigious Builder of the Year award. This award was
presented by BUILDER magazine and is considered a sign of recognition of a historical year
of transformation.

Company’s CEO: Shawn Yu

Number of Employees: 2,500

Financial results (2022)
● Revenue: $1.5 billion
● Net income: $80 million
● Assets under management: $2.5 billion

4. American Realty Investors, Inc.

American Realty Investors, Inc. is a real estate investment trust based in Texas. Established
in 1970, the company owns, manages, and develops commercial and premium multifamily
properties.

It has a portfolio of around 29,000 multifamily units and 7.2 million square feet of commercial
properties. The states where this company holds its properties include Texas, Georgia,
Mississippi, Florida, North Carolina, South Carolina, Virginia, and Tennessee.

American Realty Investors, Inc. provides services to tenants ranging from individuals to
families to companies to governmental organizations. This significant company growth
turned out to be another step towards its milestones. The firm was listed as a publicly traded
corporation with the ticker "ARL" by the New York Stock Exchange. This real estate
marketing company is considered a leading REIT in the southern United States and is in an
excellent position to achieve its goals in the coming years.

Company’s CEO: Scott G. Peters

Number of Employees: 500

Financial Results (2022)
● Revenue: $470 million
● Net income: $100 million
● Assets under management: $3.5 billion

5. CTO Realty Growth, Inc.

CTO Realty Growth, Inc. is a publicly traded real estate trust headquartered in Winter Park,
Florida. This company was established in 2012, and over time, it has managed to hold a
portfolio of premium retail properties in higher-growth places.

This marketing company’s portfolio is over 3.4 million square feet of retail space leased to
different tenants, including stores on local and national levels. CTO Realty Growth, Inc. has
properties in eleven states of the USA, including Texas, New York, Florida, and California.

CTO Realty Growth, Inc. can be a good option for investors looking for the US retail real
estate industry. This company has shown significant growth in the past decade and will do
well in the future.

Company’s CEO: Michael P. Turner

Number of Employees: 50

Financial Results (2022)
● Revenue: $193.3 million
● Net income: $49.6 million
● Assets under management: $1.6 billion

6. RE/MAX

RE/MAX is a privately held real estate marketing company based in Denver, Colorado. This
is a worldwide real estate franchise business launched by Dave liniger and Gail Gardner. By
the end of 2023, it might have over 140,000 agents spread over more than 100 countries
and territories.

This marketing firm aims to provide innovative marketing strategies and training. Besides its
creative ideas, this company also offers a variety of goods and services to its

representatives, including a buyers and sellers database, training and educational programs,
marketing assistance, and professional liability insurance.
THE COMPANY HAS A BRIGHT FUTURE, considering RE/MAX's solid innovation and
customer satisfaction track record.

Company’s CEO: Adam Contos

Number of Employees: 15,000

Financial Results (2022)
● Revenue: $10.06 million
● Net income: $468 million
● Assets under management: $8.3 billion

7. Coldwell Banker

Coldwell Banker is a real estate marketing company headquartered in Madison and New
Jersey. The firm was established in 1906 in San Francisco, and since then, it has created
about 3,000 offices across 49 different countries and territories.

Coldwell Banker is one of the world’s largest and most efficient real estate companies. It has
a market share of almost 5% in the USA. This company is famous for its well-known brand, a
vast network of agents, and satisfactory customer service.

This marketing company mainly focuses on home sales, rent services, property
management, and business sales. This firm aims to make things easier for buyers and
sellers by providing different tools and information to help navigate the real estate market.
Cordwell Banker is a good option for clients who need a real estate agent. This company's
extensive network of seasoned real estate agents can help clients find an ideal home or sell
a property at a profitable price.

Company’s CEO: Kamini Lane

Number of Employees: 10,000+

Financial Results (2022)
● Revenue: $79.0 million
● Net income: $468 million
● Assets under management: $10.5 billion

8. Indus Realty Trust Inc

INDUS Realty Trust, Inc. is a real estate marketing company based in New York. This
marketing company mainly focuses on acquiring, developing, and managing industrial and
logistics properties in high-growth markets. This marketing firm was established in 1970 as
Griffin Land & Development Corporation, but recently, in 2021, the company changed its
name to INDUS Realty Trust, Inc.

INDUS Realty Trust, Inc. built its reputation in the United States by providing sustainable and
quality services. It is listed as a publicly traded corporation by the Nasdaq Stock Exchange.
The company's impressive performance enabled it to hold a portfolio of around 6.1 million
square feet with industrial and logistic facilities in Connecticut, Pennsylvania, North Carolina,
and Florida. This marketing firm provides services to various tenants, including
manufacturers, e-commerce retailers, and third-party logistics companies.

Considering the industrial and logistics real estate market, Indus Realty Trust, Inc. might be
a good choice for investors. This firm is consistently performing well and offering quality
services to its potential clients, and it is in an excellent position to continue its progress in the
years to come.

Company’s CEO: Michael Gamzon

Number of Employees: 30

Financial Results (2022)
● Revenue: $44.3 million
● Net income: $10.8 million
● Assets under management: $868 million

9. Harbor Custom Development, Inc.

Harbor Custom Developmenet, Inc. is a real estate marketing company that aims to develop
multifamily communities and residential properties in metro regions. This marketing firm is
concerned about the development cycle of the property, including infrastructure, land
acquisition, home building, apartment constructions, real estate marketing, and sales of
different residential properties in Western Washington.

The Company’s strategy is designed to benefit its clients in many ways. For example, Harbor
Custom Development, Inc. has developed a business strategy to develop land considering
population growth, geo-economic forces, and entitlement restrictions. This Company prefers
properties with scenic views and easy access to transport facilities, making it one of the
USA’s most influential real estate marketing companies.

Company’s CEO: Sterling Griffin
Number of Employees: 41
Financial Results (2022)
● Revenue: $77.2 million
● Net loss: $16.9 million
● Assets under management: $236 million

These are some of the top real estate marketing companies in the United States. They have
different goals and objectives; some of them operate within a country, and some of these
companies have spread their network worldwide. Considering a client’s requirement, one
might select a real estate marketing company that best suits their requirements in a
particular area in the United States.

Estimating the value of a house you’re looking to sell or buy can be challenging. A property’s
worth depends upon various factors while calculating the home’s entire value. Here
Comparative Market Analysis (CMA) comes into play and helps brokers and real estate
agents to meet their client’s requirements.

In this article, we’ll discuss what a Comparative Market Analysis is and how to perform it in 5
steps. In addition, we’ll also go through the differences between CMA and Appraisal. The
data included in the CMA report and the benefits that are provided by such information in
real estate are explained as well. So let’s dive into the Comparative Market Analysis and
learn how it works.

What is Comparative Market Analysis (CMA)?

A Comparative Market Analysis is considered to be one of the most effective methods that
real estate agents apply to figure out the value of a particular property. The property is
compared to other similar properties that have been sold recently in a nearby location.

Determining the worth of a property can be difficult considering multiple factors such as
location, age, condition, square footage, and many more factors that affect the worth of the
property.

Real estate agents create CMA reports for sellers to help them set prices for their houses
and it also helps buyers to make an offer. A Comparative Market Analysis makes it easier for
sellers to select the best listing prices for their properties. Here, the best doesn’t mean the
price of the property would be high but it means it would be an average price, not so much
high nor too low. Similarly, for buyers, CMA can help whether a house has a fair value and
set a competitive offer that is appealing to the seller on the other hand.

What is included in a CMA report?

Comparative Market Analysis performed by real estate agents and brokers requires a report
that will have all the important findings in it. Although there’s no standardized CMA report
however it’s important to include some specific details such as:

Description of the property:

A description of the property needs to be included in the CMA report that specifies elevation,
floor plan, and number of bedrooms as well as bathrooms in the property.

Address of the property:

A detailed address of the property and up to five comparables is required in the CMA report.

Square footage:

The square footage of each property is in a list that is intended to be compared.

The sales price of comparables:

The sales price of each comparable needs to be mentioned as well in the CMA report.

Adjusted sold price:

The information on the adjusted sold price per square foot of each comparable is added in
the CMA report.

Property’s price range:

A reasonable price range set for the property is mentioned in the CMA report.

Comparative Market Analysis VS Appraisal

There are two methods of finding the worth of the property, CMA and Appraisal. Both these
methods share many similarities but there are a few key differences in what approach they
adopt to arrive at the listing price of the property.

A CMA is performed by real estate agents with the help of information available to them on
the MLS (Multiple Listing Service). So, sellers on their own won’t be able to conduct a CMA
since among many other factors, access to the MLS is only exclusive to real estate agents.
A CMA compares the property to other neighboring properties that have been recently sold.
The data used in CMA is typically from the past three to six months.

On the other hand, Appraisal is carried out by a licensed appraiser. This appraisal is carried
out on behalf of the bank. The bank orders an appraisal of the property once a buyer applies

for a loan to purchase the property. Unlike real estate agents, bank appraisers have no
personal interest in selling the home. The only goal of the appraisers is to visit the property
determine the fair market value of the property and ensure that the bank isn’t lending more
money to the buyer of the property.

How to do a CMA in 5 steps?

Here’s a 5 steps guide on how to do CMA. It’s not only about comparing the prices of
recently sold properties but CMA involves the following basic steps which include:

Do a Neighbourhood Evaluation:

Neighborhood evaluation is an essential step in CMA. Real estate agents need to consider
the general quality of the neighborhood. They need to highlight the facilities available to
people in that specific area. Considering attractive blocks, amenities, and schools might
have a positive impact on the price of the property.

Review Property Details:

A real estate agent will visit the home to gather information. Some of the most important
information about the property that needs to be collected is the home’s size, age, condition,
construction, landscaping, layouts, and upgrades.

Find Comparables:

Another step real estate agents have to take is to find up to five comparable homes in the
neighborhood that have recently sold. For accurate CMA the comparable homes need to be
within one mile of the property. These agents have to focus on similar houses in terms of
square footage, bedrooms, bathrooms, and type of construction of these comparables. They
also need to pay attention to when these comparable houses were sold.

Adjust for differences:

In this step, a real estate agent will have to adjust for differences between the home and
each comparable house in the neighborhood. For example, if a comparable house has an
extra bedroom then in this case real estate agent would have to deduct an amount from the
comparable house for that extra bedroom for adjustment of differences.

Determine the sold price per square foot:

In this last step, the adjusted price of each comparable house is divided by its square
footage to find out the sold price per square foot. Another thing real estate agents need to do
is to add the sold price per square foot of all the comparable houses and divide by the total
number of comparables to get the average. In the end, this average is multiplied by the
square feet of the home to estimate its price.

Benefits of CMA for Real estate

Comparative Market Analysis provides significant benefits to real estate owners as well as
sellers and buyers. Some of the main advantages of CMA include:

Becoming Knowledgeable:

A Comparative Market Analysis makes it easier to make decisions. This is because CMA
provides knowledge about the listing prices, main selling features, types of houses, and the
duration in which other properties are staying and selling in the neighborhood. All pieces of
information make you knowledgeable and make it easier for you to make a decision.

Highlighting Profitable Areas:

CMA helps real estate agents find areas that are more likely to be popular and profitable in
the near future. Similarly, properties that are declining over time are also determined through
this process. This allows real estate agents to focus on more profitable areas.

Discover The Trends:

CMA is considered to be one of the most basic tools for determining the trends in real estate.
Real estate agents always need to be a couple of steps ahead of their competitors and CMA
is a great option to help them in exceeding their competitors. For example, let's suppose
two-story houses are selling much quicker than the single ones then real estate agents
would want to focus more on two-story houses.

Quick Selling:

A property in the market should sell faster because the more it remains in the market the
more difficult it becomes to sell it. Now, here CMA comes into play and provides the main
selling features of the properties that have sold in the neighborhood. These features would
help real estate agents to sell the property faster.

 

These are the main benefits of CMA in Real estate. Additionally, there are many more
advantages of this Method such as making leads while examining the neighboring properties
and getting knowledge about the recent prices in the market.

Conclusion

In conclusion, Comparative Market Analysis provides real estate with an opportunity to
gather information from neighboring recently sold houses and highlight the most profitable
features of the house that help them to sell it faster. However, depending on the market the
final price of the house might need to be tweaked slightly. For example, if the market is high
then prices are expected to be slightly higher than usual. On the other hand, if there are
many similar properties on the market the price needs to come down slightly to be
competitive.

FAQ’s

 

What is CMA in Real Estate?

A CMA is an estimate of a property’s price which is used by real estate agents to help sellers
set listing prices and buyers make competitive offers in the market. This analysis usually
considers the size, location, construction type, condition, style, and many other price-
defining factors.

Can I do my own CMA?

Yes, you can but in order to conduct your own Comparative Market Analysis you’ll have to
gather information about your house and recently sold houses in neighborhoods having
similar features. In the next step, you’ll be collecting data from different real estate sales
websites and making adjustments for differences between comparable houses and your
property. Then you’ll have to consider current market trends and estimate the price of your
property accordingly. However, it’s advisable to hire a real estate agent who’s more
experienced and has access to detailed information and market expertise.

Who can Prepare CMA?

A Comparative Market Analysis is prepared by real estate agents, appraisers, or brokers.
Their aim is to help sellers set listing prices and buyers understand the fair market value of
the house they’re interested in buying. These professionals are good at preparing CMA
because they have access to databases containing information about recently sold
properties, current listings, and other market details that are essential for the preparation of
Comparative Market Analysis.