Category Archives: Real Estate

Beginner’s Guide to Real Estate Investing: Getting Started and Building Wealth

Real estate is one of today’s most popular and potentially profitable options if you’re looking for a great investment opportunity. With the right strategy, you can build wealth and financial security by investing in properties that increase in value over time. But for beginners, getting started in real estate investing can be intimidating. There’s a lot of information to learn and plenty of risks involved.

With the right approach and some good advice, you can minimize your risks and make smart decisions that will pave the way to a successful future of real estate investing. In this blog post, Brandon Gilkey provides an overview of the basics and helps you start your journey to building wealth through real estate.

Understand The Market And Choose Your Niche Carefully

Before investing in real estate, it’s essential to do your research and learn about the market in your area. You’ll need to understand the types of properties available, the average prices, and the current trends in the market. It’s also important to choose a niche that you’re comfortable with. For example, you could focus on residential or commercial properties or specialize in a particular property type, such as multi-family units, vacation homes, or fixer-uppers. Once you’ve identified your niche, it’s easier to search for suitable properties and make informed buying decisions.

Set Realistic Goals And Create A Plan

Before jumping into investing, setting realistic goals and creating a plan to help you achieve them is important. Consider how much time and money you will invest and your desired return on investment (ROI). From there, you can create a plan that outlines your strategy for finding and buying properties, managing them, and selling them if needed. Having a contingency plan is also important if things don’t go as planned.

Find The Right Financing Option For Your Needs

When investing in real estate, you’ll likely need to secure financing from a lender. Many options exist, including traditional banks, mortgage brokers, and online lenders. Each option has pros and cons, so it’s important to do your homework and compare your options before deciding. Keep in mind that the interest rate and terms of your loan will affect your overall investment, so choose wisely.

Conduct Thorough Due Diligence

Before committing to buying any property, conducting thorough due diligence is important to ensure you’re making a good investment. This includes researching the property’s history, past owners, and any issues or repairs that must be addressed. You should also inspect the property thoroughly to ensure it’s in good condition and meets your needs. A good rule of thumb is to have a professional inspection to identify potential issues before making an offer.

Network And Build Relationships

Networking and building relationships with other investors, real estate agents, and professionals in the industry are essential for success in real estate investing. Attend industry events and join investment groups online or in person. Build a team of professionals that you can trust, including real estate agents, property managers, lawyers, and accountants. This will help you stay up-to-date with market trends and make smarter investment decisions.

In addition to these tips, it’s important to continue educating yourself on real estate investing and staying current with industry news and trends. As with any investment, risks are always involved, but by researching, setting realistic goals, and building a solid team, you can increase your chances of success in real estate investing. So don’t be afraid to take the first steps and start building your wealth through real estate today! Remember, staying determined, informed, and open to learning from successes and failures is the key.

Conclusion

As you can see, real estate investing can be a smart and lucrative investment option for anyone looking to build wealth and financial security. With the right approach and careful planning, you can minimize risks and make profitable investments that will pay dividends for years. Remember to do your research, set realistic goals and expectations, choose the right financing option, conduct thorough due diligence, and build a network of trusted professionals to help guide you along the way.

Jean Danhong Chen Shares How The Housing Market In California Has Changed During The Covid-19 Pandemic

Covid-19 has hit businesses hard. Consequently, many people have lost their jobs, and worse, others have succumbed to depression. Moreover, there are those who, for different reasons, desired to move to California. But due to the COVID-19 pandemic, they have had to halt their migration plans.

What’s more, most of them have dreaded the housing market since Coronavirus seems to deteriorate the market.

That’s why Jean Danhong Chen, shares ways the housing market in California has changed during the COVID 19 pandemic. You can make informed decisions regardless of whether you’re a real estate investor, a home seller, a home buyer, or just someone with great interest in the housing industry.

A Drop in Buyers’ Interest

Immediately the government announced the COVID-19 pandemic attack in California; realtors canceled their open houses. Consequently, 50% of agents reported a drop in buyers’ interest in their properties. More than half of reactors said to have buyers who backed out from their home-buying plans for fear of COVID 19 pandemic. Additionally, 45% of the realtors had sellers who backed out from selling their property.

The shutdown of Non-Essential Businesses

The government shutdown any business deemed as non-essential. As such, the real estate business wasn’t seized. But the government allowed some real estate transactions to continue. Such transactions included home buying, residential leasing, title research, and renting.

Shelter-in-place Orders

As Jean D. Chen reports, the shelter-in-place orders vastly contributed to the freezing of California’s housing market. What’s more, though the government allowed financial institutions to continue their operations, many people were afraid of taking loans to buy homes. Furthermore, the shutdown of around 80% of the country fueled the fear in people. As a result, the country experienced a 30% fall in mortgage application in the last quarter of march 2020.

The Good News

For many states, the home sales bounced back in June. And realtors and landlords were super excited. What’s more, the sales price to list price ratio was 99.5% in the same month (June). So, home sellers were selling their homes at prices close to the listing price.

More Handy Stats

In that same month of June, home sellers sold their homes at around $626,160. Moreover, single-family home prices rose by 6.5 percent from May (2020). The month to month sales increased by about 68.55% while the California condo prices rose by 4.6%. This seemed a slow recovery for the housing market.

Buyer activity Increased!

Some financial institutions lowered their mortgage rates like never before. As a result, many people took advantage of the low mortgage rates, and they bought houses. Consequently, realtors reported an increase in buyer activity.

More of the Rebound

To get a more vivid picture of the housing market’s state of pre-COVID-19, let’s have a glimpse of the market performance as in February (in 2020). In February, the housing market experienced a 6.6% rise. As a result, the home sales jumped above 400,000 benchmarks. This was a remarkable and rare occurrence; it marked the completion of an eight consecutive months year-over-year home sales increase.

Home Sales

All major regions of California experienced an increase in home sales. However, Southern California experienced a drop of -12.2 percent while Central valley experienced the smallest drop of -1.5 percent. But generally, the median prices of homes in all the major regions of California increased drastically. And to some extent, this showed that the homes were affordable for many residents, as Jean Danhong Chen reports.

The Housing Supplies

Housing suppliers decided to play safe. Consequently, the housing supply across the state declined. All countries in the region experienced a housing supply drop of at least 30 percent, with Southern California getting the most significant drop.

Over to You

Probably, you have noted that by June, the home prices were affordable for many. And this is a “voila!” moment for all folks who desired to migrate into California, but they were afraid of the shaky housing market.

But now you got these handy stats on your hands. Apart from the immigration-related constraints, what else stands on your way to making your desired big move—acquiring a home or investing in the housing market?

5 Ways To Really Profit From Your Real Estate Investments

Most of us have spent our time looking for a better way of making money, including exploring the options open to us in the real estate market. There are many ways for an individual to make their mark on the real estate market, including the decision to flip a house or to invest in a Real Estate Investment Trust. Making a profit in the real estate market can be a tough ask but David Ebrahimzadeh believes there are options open to every potential investor to explore their options for profiting from real estate.

1. Real Estate Investment Trust

This is an option that should be explored by every individual who is looking for the best way of making a real estate investment without having a large number of funds in hand. Instead of spending all your funds looking for a small, fixer-upper to invest in to start your real estate business, you can look to be repaid in dividends by investing in a Real Estate Investment Trust. One of the bonuses of investing in a REIT is the ability to choose the type of property you wish to invest in. Each REIT has a specified goal of investing in multi-family properties, hotels, or commercial properties. Even the smallest investment in a REIT can pay major dividends with 90 percent of profits returned to investors each year, according to Business Insider.

2. Flipping Properties

When you are looking to make a real profit from the real estate markets you should look into flipping properties. David Ebrahimzadeh sees the decision to start flipping houses as a more complex and stressful option than a Real Estate Investment Trust. However, Ebrahimzadeh explains the rewards in the form of profits are extremely high if the flip is completed correctly. Investopedia explains the major profits that are available can be found in doing a large amount of the renovation work yourself. By having some construction skills or the ability to lead a crew of workers through the required renovation in a short time you will maximize your profits.

3. Long-Term Residential Rentals

When you are looking to take a long-term approach to make a profit in the real estate markets you can invest in a residential property for the long-term. The first step to take is to find a residential property in a desirable location that is sought after by renters. If you can secure a long-term rental agreement you will be able to turn a profit that will last for several years. Entrepreneur explains the most important aspect of securing a long-term rental agreement is to find the perfect property and price your rental in the correct price range to ensure your property stays inhabited for years to come.

4. Contract Flipping

This is a little more difficult for you than the traditional home flipping the majority of us are aware of. Instead of flipping a property, you can simply find a buyer who is underwater with their payments and put them together with a motivated buyer. As a way of sourcing a home without having to take part in the tricky issue of sourcing funding or going through any form of escrow program. Instead, you are simply acting as an agent who brings together the buyer and seller with contracts providing you with a fee for bringing these two parties together.

5. Vacation Rentals

Most of us have heard the stories of people who have purchased vacation rentals and made a fortune from them. There are many reasons why vacation rentals have become so popular, but the rise of Airbnb has played a major role in this development. The initial investment you will need for this kind of real estate property is larger than you may imagine but profits are also high. The COVID-19 pandemic has shown the vacation rentals market is volatile with a range of potential problems but in normal times the profits available are large.

There are options in the real estate markets for any individual to explore from those with a large investment fund to those with limited options. Flipping houses remains the most popular option for most real estate investors to explore. Other markets can be equally as profitable with the use of Real Estate Investment Trusts being a high return option guaranteed each year.

5 Savvy Exterior Home Improvement Ideas to Increase the Value of Your Home

You will want to make sure that you get as much money as you possibly can whenever you sell your home. This is why you want to do everything you can to update the features on the exterior of your house. There are dozens of ideas out there that can help you accomplish this goal. Fortunately, we put together a list of five that Jason McLaughlan has provided for us. Let’s take a look at some of these ideas and how they can improve your home’s value.

Changing The Exterior Lights

Changing the lights on the outside of your home can help improve its look. There are dozens of lights out there that you can choose from to accomplish this. This means that you have an almost unlimited amount of options available at your disposal to accomplish this. Fortunately, changing the exterior lights is fairly simple when compared to the other projects.

Improve The Landscape

Many people don’t always get a chance to improve the landscape around their home. While they do normally keep up with lawn maintenance, there is so much more to be done that can improve your house’s value. Landscaping projects require more than one person to perform. However, these can greatly improve your house’s value if you do it right.

Painting

One of the most visually appealing things that you can do for your home is to provide a fresh coat of paint. There are plenty of guides out there that can help you find the best color scheme for your home. This will help improve its look from the outside and will greatly improve the value of it.

Pressure Washing

Grime can build upon the exterior of your home over the course of time. It is normally brought on by rain and other elements. However, you will most certainly want to pressure wash this gunk off of your home whenever you decide to sell it. This will greatly improve the value of your home and may end up helping your house sell faster. You can either hire a professional pressure washing company or can rent a pressure washer for a day to do it yourself.

Replace The Doors

Your front door makes an important first impression upon new guests whenever they enter your home. This is why you want to get the very best front door for your house whenever you decide to sell. Spending some extra money to replace the door can go a long way whenever it comes to boosting your house’s value. It is the first thing that realtors and potential homebuyers will see whenever they visit your home.

Improving Your Home’s Value

Fencing expert Jason McLaughlan knows the importance of improving the value of your home. However, it is in your best interest to improve your home over the course of time. Do not burden yourself by updating all the features that we have listed at once. This will cause you to become overly stressed with the process.

Fortunately, the exterior projects that we have provided are fairly simple when compared to other large scale renovations. This means that these are the easiest way to optimize the visuals of your house. Take your time to find the best resources available to complete the style that you want for the house. You will thank yourself for it in the future.

9 Ways To Transform Your Bachelor Pad Into A Home

Bachelors like to decorate their pads in a simple way. Most don’t like having pillows, fancy decors or even accessories in their spaces. There are different ways that a bachelor pad can look sophisticated and even comfortable. When you are in doubt, look for some advice. JMD Furniture would like to recommend the following design trends for bachelors to try out.

Decide on a theme

A decor theme is very important because it sets the mood of the entire room. If you pick a masculine theme, depending on the specific theme you choose, it can bring in some style and design. The theme will also call for the use of the right color preferences.

Choose a color palette

Go for a color palette that has accent color options. You need to go for colors that will make your pad look bigger, comfortable, and fits your personality. If you have smaller spaces, use light colors to make it bigger. You also need to consider having a contrast wall that complements the rest of your room.

Decorate the walls

You can use some artwork pieces on the walls. Go for something that reflects your general interest in hobbies. Go for a mature piece that is impressive and one that strikes a conversation. If your hobby is cycling, go for a canvas cycling-[piece of wall decor that has supporting accessories.

Add lighting

If you have rooms that don’t have a ceiling light, place a lamp. You can use different kinds of light sources instead of light bulbs. For instance, you can go for LED lights to provide white light which usually resembles the natural light. The beauty of light bulbs is that they are energy efficient and they last approximately 20 years.

Create a focal point

Make your wall or a fireplace the focal point of your room. The focal point should have different colors with an accessory, a piece of art, or something that is a conversational starter. To get an even cleaner look, JMD Furniture recommends using the services of a professional interior designer.

Change your furniture

Bachelors have a couple of things in common, and second-hand furniture that does not match is one of them. Although the furniture makers don’t need to be the same, it is a great idea to match the color and the design of your furniture. You also need to go for furniture that fits your space.

Add extra storage

Bachelors need additional storage. You need to have something to store your extra stuff which will also play as an extra sit. For this, you need to go for extra storage benches and cubes. An extra seat that is comfortable is excellent when you have friends over and still want to store some clutter out of your space. You can also have extra storage in your dining table by using wooden benches that have seat pads with storage underneath.

Organize the closets

Men are not good at organization, especially when it comes to bedroom closets. The closet is usually a pile of everything and anything. To some extent, you will find clothes on the floor, and within a short time, it gets hard to differentiate between clean and dirty clothes.

For your wardrobe, use wooden hangers. Women actually get more impressed with a man who has an organized closet.

Create an entertainment space

If you have a space that is purely meant for entertainment, it can prevent overcrowding, spills, and also seclude your private space. In your entertainment space, store things like a mini-fridge, liquor bottles, and mixers. You can also store an ice bucket and a variety of glasses.

4 Ways Architects Are Changing Sonoma’s Landscape

Sonoma is the classic county of California that is known for its winemaking population. Sonoma is also popular for its fine art galleries and colonial-era types of architecture. One of the most popular landmarks located in this county is the Sonoma Plaza. Around this plaza are the 19th-century adobe-style buildings made of sturdy bricks and classical architecture. The plaza also features the Mission San Francisco Solano and Sonoma Barracks, which was previously used in the Mexican military escapades.

Understanding this deep history of Sonoma, Brian Setentich believes that there are reasons why this specific region in California is changing its landscape:

The proliferation of wine tours – aside from Napa Valley, Sonoma Valley is also known for its wine tours. Therefore, a lot of people go through the area and would want to see more of these types of activities in Sonoma.
Increased tourism over the years – historical tours, wine tasting, and city tours are popular for tourists in Sonoma. As the growing industry continues to succeed, there is an increased need for accommodations in the area.
Maintenance of old architecture – as times and seasons change, there is a need to maintain, yet preserve the distinct architectural details in Sonoma.

What are the different ways that architects are changing Sonoma Valley’s landscape? In this post, Brian Setencich highlights these four main influences of architects in Sonoma.

4 Ways Architects Are Changing Sonoma’s Landscape

Architects are preserving historical sites in a modern way

Brian Setencich stated that this might seem like an oxymoron, but architects are on the works to preserve the historical sites located in Sonoma such as the Sonoma Plaza. An example to be seen is their design in the garden landscaping and interior of the said establishment. Although the buildings are said to be two centuries old, its interiors were refurbished to improve its integrity. Classical chandeliers were placed, but modern lighting fixtures were also installed. Additionally, the interior was preserved to have its original design but build with sturdier materials.

Architects are helping to make new establishments in Sonoma

Sonoma isn’t just about historical sites and traditional views. It’s also about the whole tourist experience. At present, architects have worked with restaurant owners to build the newest restaurants in the area such as Jacob’s Restaurant, Mi Ranchito, or Gerard’s Paella. These restaurants are thematic, which means a lot of time and effort was put into thought with the designs of these places to match the whole look and feel of Sonoma County. Architects are doing a great job with integrating the modern along with the classical landscapes of the region.

Architects are designing wineries in Sonoma

The wineries are not small places to try out the different varieties of wine available in Sonoma Valley, they have also become a destination for tourists to visit. Almost every winery in Sonoma was structurally designed by architects to stand out, like the photos seen in some of the magazines and blogs on the internet. Aside from the houses, the wineries are also made with fabulous-looking patios and gardens that are pleasing to the eye.

Architects are building new homes in Sonoma County

The region is not just available for tourists, but also for people who want to start a new life. At present, there are homes available in Santa Rosa, Rohnert Park, and Cotati which were built by architects to suit the lifestyle of the potential residents. Most of the new homes located in Sonoma country have adopted a modern look, such as those located in the University District. There are also modern-looking commons that are available for aspiring homeowners who want to stay in Petaluma.

Architects are not only builders but also game-changers. They can change the face of a place for the next generation, which shows the history of its people. As architects continue to change other landscapes, Sonoma County is a good example of how these professionals have touched the tourism, real estate, and historical scene.

5 Seminars All Real Estate Agents Should Attend

It can be mindblowing that even with how profitable real estate business is, there are rarely formal schools which teach you the principles of real estate investment. In fact, a lot of real estate agents and investors claim to be self-taught, which is built upon years of experiences, failures, and eventually victories.

However, it is interesting to note that the industry is continuously growing, and there are more professionals who are willing to dedicate time to teach aspiring real estate agents and entrepreneurs the tricks and trades of the business. According to Luis Enrique Coll, a real estate expert, there are several benefits in attending these types of seminars:

Seminars give you an overview if you are a total newbie. If you are new to this type of business, you will understand basic terminology, how fundamentals of closing in a sale, and the skills you need to succeed.
Seminars can also be a great way to update your present knowledge and skills. If you are a seasoned real estate agent, you may not be aware of the various technological advances that the industry has already leaped in. Seminars give you an update on the latest and best practices in the real estate world.
Seminars also help you network with other real estate investors. Some people in seminars are looking for opportunities to invest in a property. Through seminars, you can find these potential clients and partnerships as you build connections for your business.

Given the vital use of seminars for real estate entrepreneurs, what are the best ones to attend to? Luis Enrique Collhighlights the most comprehensive and valuable seminars based on his experience.

5 Seminars All Real Estate Agents Should Attend

1. Real Estate Investment Network

Real Estate Investment Network was founded in 1992 by former CREW magazine columnist Don Campbell. It is recognized as one of the most trusted real estate investment education companies worldwide. It leads in terms of analysis, research, and resource for people who want to get ahead in the real estate industry.

Real Estate Investment Network is a member-based company, with presently 2,700 members who can access a wealth of information, products, and services they can use to grow their real estate business. Some of these include webinars, educational materials, workshops, and access to conferences which are held regularly.

2. Fortune Builders Real Estate Investing Seminars

Another valuable seminar is called the Fortune Builders, which is a workshop that lasts for three days. It is an ideal way to start learning about the fundamentals of real estate investing. It is also a good deal for beginners as it only costs $197 for two people.

Previous people who attended the seminar reported that the experience was proved to be very educational and has given them a great opportunity to network with other seminar attendees. This seminar is ideal for the beginner real estate agent who wants to make an impact on his or her business.

3. The Investor Forum

The Investor Forum has featured several successful speakers who already experienced success in the real estate business. Additionally, they have provided networking opportunities for many commercial and residential real estate entrepreneurs.

The Investor Forum is highly recommended because it features two days of interactive workshops with high-profile keynote speakers. There are also three different types of registration, and attendees have the option of picking those topics they prefer to attend to.

4. REALTOR Broker Summit

REALTOR is one of the most prominent companies when it comes to real estate agents and investors. This is an annual summit that the company holds in Nashville to talk about all things related to the business. As a real estate agent, you are also provided with networking opportunities if you have properties along the southern states.

REALTOR Broker summit is also holding training, coaching classes, and other workshops to help real estate agents become better leaders in their business. They also present the future of mortgage and housing markets, providing an abundance of useful information for real estate entrepreneurs to hone their craft.

5. Inman Connect San Francisco and New York

Inman Connect conferences are known to be held in two big cities–New York and San Francisco. The real estate market in these two major cities is at an all-time high, which all the more attracts investors and provides great opportunities for real estate agents.

Inman Connect conferences contain several comprehensive seminars on how to market real estate, how to close sales, and the latest technology applications needed to succeed in the business.

Working as a real estate agent can be a rewarding experience. Expand your skills and grab opportunities as you attend these great seminars for your professional and business growth.

The Benefits of Embracing AI in the Real Estate Industry

Real estate goes back as far as we can remember; and Andrew Charlton insists that “as long as houses have existed, there are people who helped others fill the properties up.” We are not sure if there were real estate agents in the pre-historic times, but we won’t be shocked if it gets discovered, there has to have existed someone who discovered caves and helped other humans settle in. Although it is an ancient profession, real estate is always changing, and one of the biggest changes we are seeing is happening as we speak.

Technology has brought in a new wave of developing chatbots using artificial intelligence to improve the real estate industry. Artificial Intelligence has brought in tremendous improvements in the industry of real estate, and there are several ways in which AI benefits this industry.

Chatbots provide a support service for brokers and real estate agents

The busiest people in the real estate industry are real estate agents and brokers. It is easy for them to get lost in customer requests and support, and that makes them miss to focus on their jobs. To fix this problem, a chatbot that has artificial intelligence capabilities offers the clients the needed support and allows the real estate agents to focus on their jobs.

For it to work, someone has to connect with the chatbot, and the chatbot will ask the customer on the property that he or she is trying to get. The person will respond and then the chatbot will ask some followup questions to find the ideal property. The chatbot which has access to the database will cross-reference the information in the database very fast and send some suggestions to the customer.

Once the customer is interested, the details are sent to the broker or the real estate agent. Now, the broker or the agent has qualified the lead. He or she will know what the customer wants and is able to fill a piece of property with that information. The broker or agent might show the potential client more properties, or a walkthrough might be set up. Either way, the broker or agent will focus on the real aspects of the business, thanks to the chatbot which assists in qualifying leads.

They store vasts amounts of data

It is very tough to remember a conversation that happened with a particular customer when the client calls back and starts off from where they left. You will need a brief about the precious conversation in order to remember the person. In some cases, you will get digging into the files as the client is speaking. When you remember the conversation, you get lost because you can’t remember what the client was saying.

To avoid this problem, you can use a chatbot; chatbot stores each clients information every time an interaction is taken, the client can pick up where they left off when a message is sent to them from a client.

This is a great way to improve customer support and to close deals easily. When the chatbot asks the client if they are still looking for a rental in San Fransisco, the customer is more inclined to respond positively. In real estate business, a positive response usually leads to the sale of a property.

AI works to provide up to date and accurate information

There is a great deal of pressure for people in the real estate industry. There is constant information update, and if brokers are not updated as regularly as possible, they will provide inaccurate information about potential buyers and renters.

Since a chatbot is a specialized software, it is connected to different property and MLS databases, which allows them to provide renters with current information without bothering checking for updates. The brokers will access the recommendations of the chatbot, and build on that information. This makes it easier for agents to have a starting point because they know they have accurate information which gives them great confidence.

It helps clients who prefer to use messages

Most people prefer to use messages over calls in making conversations. In the pasts, in-person visits and voice calls were the best ways to interact. Now, people are able to chat easily with chatbots as they stay put in their comfort zones.

Chatbots work the same way Short Messages Service works. People send messages and get feedback from their messaging apps, and they do not have to dial any number. In fact, people don’t even get to interact with a real human until the point they want to tour a property.

Andrew Charlton knows that as much as chatbots are present, there are still people who enjoy the traditional form of communication. People can also pick up the phone and converse with a real agent. When the real estate agency offers both options, they can easily serve a large customer base in a great manner.

How Blockchain Technology Threatens the Middle Man in Real Estate

The automated workforce has been a thing ever since the first digital computer, which was known as ENIAC, came out in 1946. Long assembly lines have slowly been replaced by hefty machines that increase productivity and almost every step of the manufacturing process is now streamlined. Following this trend, it seems that blockchain is moving towards replacing a lot of middlemen from various industries. One of those is the complex world of real estate.

What is blockchain technology?

In the words of an expert on blockchain technology, Mark Polelle, this invention operates in form of a simple ledger that records transactions. What sets it apart, however, is the fact that it is a decentralized system where all the registered users will be able to witness the new blocks of transactions added to the network. Blockchain first gained momentum when Bitcoin started booming a few years ago. In 2017, with the unprecedented rise of cryptocurrencies, experts from various industries started asking questions that pertain to possible usage of blockchain in other fields. It did not take long for many individuals to find potential applicability to healthcare and even military. More importantly, some have noticed that the so-called “real estate middleman” is severely threatened by these developments.

Who is the real estate middleman?

Anyone who ever had to purchase or sell a home may probably be familiar with this concept. Essentially, real estate does not function in a way that allows people to simply gather their capital and purchase or sell a property. With complex paperwork and lot of offers to go through, most individuals hire real estate agents. These relationships tend to be contingency-based as the agent will only get paid after the property is sold. Commonly, their fees range anywhere from 3 to 6 percent of the cumulative selling price. Considering how high the cost of some homes is, that flat fee can turn into a semi-annual payment of an average working family.

Enter Blockchain

Although it is impossible to predict how fast these changes will affect the real estate, blockchain’s ledger of transactions could cut out the middleman and reduce costs significantly. The simple explanation to this can be given in a single word – access. As described in one of the most recent reports by Deloitte, one of the four biggest accounting firms in the world, what allows real estate agents to charge high fees is their input based on historical data. Meaning, they have access to thousands of previous transactions, records of sales in the area, complex algorithms to calculate potential selling prices, and more. With blockchain technology, everyone who is registered to the network would be able to gain this insight as all of the aforementioned information would be available to them. Thus, accessibility would completely undermine the bottom line of real estate agents’ function.

Real Scenario

An easy way to explain this is to describe what is a very common scenario in the real world. Consider, for example, a married couple that is attempting to sell a 3-bedroom house on the outskirts of Houston, Texas. Upon doing some research, they decide to hire a real estate agent that will help them find customers and set a proper selling price. After accepting the engagement, the real estate agent discloses that he will charge them 5 percent of the selling price. A few weeks later, this middleman finds the buyer who will pay $300,000. After agreeing to sell, the married couple now owes the real estate agent $15,000. With blockchain, these sellers could have researched the market on their own. That would have helped them set a selling price based on the same data that the agent utilized. Moreover, blockchain could have made it easy to connect with potential buyers. Final result? They would have saved $15,000 and a lot of time that it takes to hire an agent.

How realistic are these changes?

As noted by Mark Polelle, predicting anything related to such a volatile field is impossible. After all, blockchain technology has only been in the mainstream media for a little over a year. Most of the upcoming changes will be closely related to the way that cryptocurrencies are doing. Meaning, as long as Bitcoin is making headlines, one can expect blockchain technology to closely follow. Furthermore, if there is a sudden downturn that causes all of the crypto companies to go out of business, which is highly unlikely, blockchain technology will equally suffer. Nevertheless, many real estate agents who are stressing over the new technology that may undermine their services are in the right to do so. The only thing that may give them a peace of mind is the fact that, even if everything described here was to happen, these changes will need at least a few years to take effect.

Embracing the Benefits of Virtual Reality In The Real Estate Industry

The real estate industry has undergone many changes over the years that have allowed companies to get better ways of dealing with the challenges present in the market. Among technologies that have come up to transform the industry is virtual reality, which was first introduced in 2010. All the way from the design process to the presentation stages, virtual reality is aiding the real estate industry to access an easier way to deal with the challenges that come up while developing a project. The technology is designed to offer convenience to both the developer and clients, so you will find it easier to engage the market when you capitalize on harnessing the benefits of this technology.

Give clients the full picture

It is not easy to sell property that is not developed or one that is mid-developed as there are many technicalities involved that one must work around. Even the most experienced agents will find it challenging to release such property to the market, and it could take a long time to get the first buyer, which is not a good sign for the business. If your focus is selling as much as possible, you need to focus on offering buyers a good way to see how the property would look once completed, and nothing plays this role better than virtual reality.

With virtual reality software like Renders 3D Quick, you are able to give buyers a virtual presentation that allows them to understand the different parts of the project that they would like to view. Giving them, a clear picture will make decision making easier, and most of the time the inclusion of unique features fascinates them.

Allow long-distance clients to see features

Another beauty about virtual reality that you will enjoy is the fact that you can show your project to clients based many miles away. At the comfort of their offices or homes, they are able to access details about the project and they can do virtual tours through the various parts of the home they need to know about. Most clients will respond positively when they conduct virtual tours as this allows them to have a picture of what is available, and to make the tours more inclusive you can allow virtual customization that will give the client a chance to make changes and additions to the property in a bid to mold it into what they would like to have.

Virtual staging

One of the processes in real estate that is time-consuming is property staging, which is simplified when one uses virtual reality. Hiring a professional stager comes at a cost and this cost varies from one professional to the other. Additionally, the costs can accumulate to unmanageable levels if the property is left in the market longer. However, virtual reality gives customers a chance to see for themselves the furniture and amenities included in the home, so you will not need to hire anyone to make this possible as the technology takes care of everything.