Real Estate Agents

The Why, What and How of the Entrepreneur’s Business Plan

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Over the past three weeks, with the aid of technology, I had the privilege to kick off the annual United Real Estate business planning workshops with hundreds of real estate agents from across the U.S. in attendance.  It is very satisfying to aid so many entrepreneurial individuals in understanding that freedom in business and in life is having the ability to do what you are supposed to do.  The essence of a successful plan goes beyond spreadsheets and a mission statement.  Everyone is familiar with the celebrated success stories of the start-up entrepreneur’s technology business that quickly made them rich.  We are also aware that most businesses don’t succeed past 5 years and the odds are stacked against the individual start-up. A lot of factors make up the difference between succeeding and failing in business. However, all successful entrepreneurs have a common theme to their planning process. They recognize they are not just building a business, they are creating a lifestyle.

While the projected sales numbers and profits that make up the forecast and budget of a business plan are in everyone’s game plan for success, the individuals who breakout from their competition have more than just a strategy and spreadsheets.  What successful entrepreneurs recognize is that when you open a business, particularly a real estate business, you can’t easily separate the business from you, the individual. The Why, What and How of building a plan is not just about your business, it’s also about your life story and it all starts with answering with definitive knowledge and having very specific answers to these three questions. The answers combine passion with knowledge and precise action plans that justify the hours you work, and put to ease the initial uncertainty that is part of owning your own business.

The Why – To grow a business you have to do things that are at first uncomfortable. To build new success habits you must know what you have to look forward to in the future in order to stay motivated in the present.  You have to ask yourself not only why potential customers should do business with you, but why you are personally in business. If you are like most entrepreneurs you left the certainty of a paycheck for the freedom of being your own boss.  The freedom of working for yourself also brings with it uncertainty. Your Why to take on this risk and then insure your success has to be really big. You are not just looking at what your life is today but what it can be in 5 years and also in 20 years. Done correctly, answering your Why will set the goals for your business.

The What – After you understand your true Why, then, and only then, are you ready to move to the What. Following this path greatly increases the likelihood that you will succeed. You must have a rock solid reason as to why you are going to keep striving and pushing past the setbacks that are inherently part of building a business. Goals tell us what to get, not what to do. The best sales people set goals that are not just about the outcome, but the process to get to the outcome. It is here you answer the universal equation of success for all entrepreneurs. What is the market opportunity for your business?

Total number of potential clients * conversion rate + past customers + referrals = Income

The How – The dream is known, the goal is set. It’s time to lay out your strategy on what methods you are going to deploy to reach your potential clients. The key to executing this part of your plan is knowledge and commitment.  You need to know how to reach your customers, how to communicate with them, how to stay in touch with them, and how to sell to them. To be successful as an entrepreneur you will have to commit to performing these activities for a very long time.  This requires you to continually invest in building your potential client list and also developing your personal skills. The business environment will always be changing and you have to adapt to utilize new technologies and adapt to new trends to modernize your business. Becoming a market expert will not be enough, you will also have to learn how to develop the invisible traits of determination, persistence, grit and personal accountability.

Building a business that will support the lifestyle you desire is a skill to be mastered, not just pursued. A great question to ask yourself is, have you spent more money on Starbucks this year or on your personal development? After all, true freedom is reached when you realize you are empowered to do what you are supposed to do to create your ideal life, not just what you want to do. To learn more about how to implement a plan to raise your income in real estate and improve your lifestyle, join us at the 2017 United Real Estate Convention.

All the best!

United Real Estate

How the Three C’s of Selling Will Boost Your Income

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The sales profession is one of the largest occupational groups in the United States. It is estimated that over 15 million people work in sales related jobs.  In the real estate industry there are currently over 1.2 million Realtors. Across all industries, sales is a very competitive occupation, and one that allows the top performers to be highly compensated.

Being in sales is very similar to running your own business and in commission based sales occupations, such as working as a real estate agent, you are in-fact running your own business.  In any entrepreneurial role you must have daily habits that will ensure you manage your time effectively.  Moving past the general sales training that is made available to all individuals in a selling occupation, there are certain skills that top performers have developed that have made them excel. Here are the three “C’s” that are not taught in sales training courses and make up the intrinsic skills that separate the top 5% of sales performers from their counterparts.

Caring – All successful sales people have come to understand that they should listen to their potential clients more and speak less when they are meeting with them.  This becomes the formula for any successful sales person in both Business to Business sales and Business to Consumer sales. It is the basis for being a highly paid advisor as opposed to a sales rep. Not only do the top sales people ask more questions of their potential clients, they listen better.  Their listening skills are superior to others who just hear but don’t really understand the needs of their buyers. The top sales people have empathy for their potential clients and are able to understand the buyer’s problems or their unmet goals.  They relate to their feelings in a way that allows them to become trusted with helping the buyer reach a new level of satisfaction by guiding them to solve their problems with the solutions they have to offer.

Candor – A top sales person will focus initially on the buyers needs and not on the services they are offering. When the buyer realizes the seller cares about their problems and why those problems matter, the sales person becomes a trusted advisor.  A trusted advisor, in comparison to someone who is just selling a product, earns the right to be straight forward and honest with the potential buyer. Top sales professionals not only ask more questions than their counterparts, they also ask better questions. More developed questions stimulate thought by the buyer of what their unmet needs or desires truly are. The top sales pros do not worry about losing rapport with a buyer, as they have established trust. When you care about your profession and develop a trusted relationship with your buyer, the ability to ask them difficult questions about why they are doing things in a certain way is earned. This honest dialogue is respected by the buyer.  The odds that the buyer will choose your services or product over a competitors greatly favors the sales person who has the ability to have candid conversations with potential buyers.

Competence – Most sales professionals know how their products or services function and how they can fit a buyer’s needs.  The difference between top sales people and others is the top performers know how their services or products solve the specific problems of the buyer they are working with today. Top sales people are not generalists, they are experts in their field. This means they know more about the future of an individual buyer’s business or investments than their client does. In order to gain this expertise, the top sales professionals spend the time necessary to study their industry and work on developing their own personal skills. This gives them more experience, which allows the top sales person to express that knowledge using a question based methodology, therefore putting the buyer’s needs at the forefront.

To boost your income and separate yourself from your competition, it is not enough to commit to only completing your company’s standard sales training or your industries continuing education requirements. The key to long lasting sales success is mastering the three C’s of selling. Be certain to commit yourself to continued learning opportunities. To learn more about boosting your income in real estate to a new level, join us at the 2017 Unitedpalooza.

All the best!

United Real Estate

How the Happiness Advantage Can Break the 80/20 Rule and Lead You to Success

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Across the United States, entrepreneurs are planning for the New Year.  2017 will be upon us in less than 60 days, and we know there will be changes in elected officials with different agendas on the national and local level. The economy may get better, it may not. We can take the predictions from the experts with a grain of salt and arrive at the safe conclusion that they are all right, and they are all wrong. Large nations and large corporations are complicated. The people who run these institutions were created as complex beings, but ones who were designed to succeed.

What everyone should have learned over the past twenty years is that industries will change, careers will change, technology will change, and to have success in life and business, you will have to make changes along the way to grow. Very few predicted the extent of the Internet boom in the late 1990’s and subsequent crash in 2001, which was then followed by the attacks on 9/11.  The steady housing growth post the dot.com crash, followed by the housing boom that defied historical growth patterns ended up turning into a severe recession by year end 2007. Regardless of the changes, there will be companies and individuals who will thrive.

As individuals, we have control over how our lives and careers will turn out. Accepting these truths is good progress. Having a process to follow for success will turn progress into a great life. Having success in your personal and professional life in 2017, just like past economic times, will be a matter of choice. You decide that it is important to have a dream and take the right action to achieve the dream. This requires performing the tasks of proper goal setting, planning, and developing certain personal traits including faith and determination. You also must decide to have personal accountability be a part of your daily life.

We are at a critical time right now where many young people are discouraged about their prospects for long-term success. With all that we have learned about success, most of us need a new map to help us stay on the correct path to succeeding. Take for instance, the tested 80-20 rule that originated in economics after an observation by an Italian economist named Vilfredo Pareto who correctly correlated in 1906 the fact that 20% percent of the population controlled 80% of the wealth. This theory became known as the “Pareto Principle” and was later observed to hold true in other aspects of life, starting in the business world where companies noticed that 20% of their customers accounted for 80% of their profits. It was later taken into further detail with the notion that 20% of sales people accounted for 80% of the sales for any given company. This 80-20 rule in sales has proven to be occurring despite the decades of research and significant investment companies made in time and money for general sales and personal development training to make their sales people productive. When you currently speak to businesses and economic leaders about this basic principle they all overwhelmingly point to the 80-20 rule moving to a 90-10 rule when it comes to the percentage of people who make the majority of the income, have the majority of the wealth, and in breaking it down further the smaller percentage of people who now in their everyday life are succeeding. It has always been difficult to break out of the 80-20 rule, and in the new connected economy, it has gotten even harder. We are at a point in time where half the people working are dissatisfied with their careers, and also at a time where half the businesses which open, end up failing. These statistics don’t include living an abundant and full life.

The question is, how do you find the most relevant information that will help you break out of the patterns that are keeping you from reaching a new level of success? The world is a crowded place with a lot of messaging. However, science and the understanding of the specific human needs we all have to meet to obtain fulfillment have come a long way. You just have to fight through the noise and the distractions to find the correct path.

One breakthrough study demonstrating how work performance can be increased came from a Harvard Psychologist who specializes in Positive Psychology and developing positive mindsets.  In his book The Happiness Advantage, Shawn Achor changed traditional thinking. We believe we should work hard in order to be happy, but he postulated that we are thinking about it backwards.  In a fast-moving and very funny Ted talk, he argues that, actually, happiness inspires us to be more productive. Take a few minutes to unwind from the election and enjoy the motivating, empowering truth behind the science that proves we are in control of our future. Click Here! 

To borrow from United Real Estate’s convention keynote speaker Mel Robbins, “What consumes your mind, controls your life.” As you put your plan together for 2017, know that you have within you the ability to create the business, career and life you want.  Starting with the right mindset is a good place to begin. To learn more about how attending the United convention can help you achieve your goals in 2017 please visit our Convention page.

All the best!

United Real Estate

If You Give, You Begin To Live

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One of the founding values of United Real Estate is to be a positive contributor to the communities we live in. In order to do so, we must give back. United Real Estate is a company that has been rapidly expanding through franchising across the United States for only three years, while obtaining more than triple digit growth in agent count and transactions each year.  It would be easy to say we are “too busy” to make certain that important cultural aspects of giving back are occurring inside the company, but that is not the case.  I am always proud to see United Real Estate offices and agents volunteering to make the world a better place.  I am always happy to give a like on Facebook or shout-out to any and all who make the time to improve a community or make an individual’s life better.

Individuals search for personal fulfillment in a variety of different ways. Some are positive, but some actions unfortunately lead to negative habits that instead work to the detriment of what the individuals are searching for – happiness. There are plenty of articles, graphs, quotes and lists that can be easily searched and found on the Internet of how successful people behave to reach fulfillment. However, even with an abundance of information available at our finger tips, a recent Harris Poll concluded only 1 in 3 Americans consider themselves to be “very happy”.  I truly believe we were created to do good, and in order to reach our full potential and be happy; we need to address and fill two advanced human needs. The first is our need to grow.  In order to reach the state of being happy, we need to continuously develop and expand our dreams. Second, is the need to contribute. Understanding the world is not just “about me”, it’s “about we” which allows us to contribute to something bigger than ourselves, something worthwhile. It produces a true, visible change of things being better because we gave beyond ourselves.

Through the dedication of our employees, we have reached a new milestone in supporting our corporate charity, Autism Speaks. By redesigning our internal processes, every United agent can now voluntarily contribute to Autism Speaks at each closing, either a specific amount or a percentage of commission earned!  Together, as a United family and community, we can help a charitable organization that is making massive positive changes to the individuals diagnosed on the Autism Spectrum. To learn more read our press release.

I also believe there is a greater chance, than just a hope, that more than 1 in 3 Americans will become very happy. While millennials are known as being experts in digital communication, they are also unknowingly geared to do well by positively contributing to their communities. In the book Meet the Millennials, the author noted giving back and being civically engaged are the millennials highest priorities. This is a great step towards fulfillment when you realize it is tough to feel bad about yourself when doing good for others. It’s also an important factor for prospective employers and businesses that are wanting to sell to this generation. Millennials absolutely expect their employer to give back and contribute. As a customer, they expect the company will live up to those same set of values, as well.

One prime successful example of the power of donating a portion per transaction is seen through the generous contributions by the Dave Mathews Band. Through its Bama Works Fund charitable foundation, the band has raised and donated over $40 million to benefit the people living in the Central Virginia area, as well as internationally.  The band was able to generate this by setting up a per ticket sale, per album sale, per download sale and directing a portion of each sale to charity, as well as from fans who wholeheartedly support these causes making direct online donations. This has undoubtedly made a huge impact.

It is with great enthusiasm that I look forward to the major positive impact our fast growing network at United Real Estate will make to the individuals and families who are living with Autism.  It is estimated that it takes $60,000 a year to effectively support someone diagnosed on the Autism Spectrum Disorder.  At United Real Estate, we are now closing over 12,000 transactions a year, and that number is about to double!  Our collective contributions at each closing will do more than just fulfill a guiding principle. It will change lives.

Let me also give a shout out to the Dave Mathews Band and pay respect to them for giving back. It’s a verse from a complex song, and I see the positive in the lyrics, “If you give, you begin to live. You get the world, you get the world.” The path to fulfillment will include growth and contribution. May this inspire you to start or continue your journey!

On behalf of everyone at United Real Estate, thank you, for not just being part of our company, but for being active in supporting the communities we all live in. Happiness is not guaranteed, and giving should not be mandated, but should be heartfelt.  The reward is waiting for you.

All the best!

United Real Estate

Are First-Time Homebuyers Back and Here to Stay?

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There were many positive headlines this month from various news outlets highlighting the continued growth in total number of real estate sales and growth in home prices. Aiding this growth is the percentage of potential buyers that will make up the next generation to influence the real estate industry and the economy – Generation Y, or the Millennials. The month of September was another solid month for real estate closings, according to the National Association of Realtors sales were up 2.8% over previous year with a total of 484K existing homes sold during the month. What drove the increase was the return of first-time homebuyers to a respectful level of 34% of all buyers being first-time purchasers during September, which is a level that has not been seen in over four years.

The three primary generations that made up over 90% of home purchases this year were the Baby Boomers, Generation X, and the Millennials.  The generation segments coincide with an explosion of growth in population after World War II, from 2.8 million annual U.S. births prior to the boom, to averaging over 4 million births for the period classified as the Boomer generation. The birth decline did not begin again until 1963, when the next demographic generation, Generation X, saw a decline in population growth through new births for a period that lasted until 1977.  Now, the Millennial generation has entered the prime years for buying a home and how they educate themselves about homeownership is very important to understand as they outnumber the amount of Baby Boomers with a total estimated population of over 83 million and are far more diverse than previous generations.

Millennials currently compose 35% of all homebuyers and I safely predict, from the stand point of the total number of them that percentage will increase in 2017 and beyond.  According to a recent survey published by Realtor.com, first-time buyers have increased to 52% of prospective buyers planning to buy a home in 2017.  This is up from 33% of prospective buyers that were first-time purchases when the company conducted the same survey the previous year. So, what makes this next generation of home owners different from previous generations but yet the same?

I am part of Generation X, which means I grew up with access to a computer in a classroom but the majority of learning took place from textbooks, and communication was in person or via the phone. Society and the media describes the Millennials as enthusiastic, tech-savvy, entrepreneurial and opportunistic – all good things!  Now for the negative labels: lazy, unproductive, and self-obsessed. I like the generation behind me, and hasn’t the label of being self-absorbed been a common description for everyone who is still growing up?

The ironic thing is those are the very similar descriptions that were placed on my generation.  We were the slacker generation because of the different music style, referred to as grunge or alternative rock, which was popular in the 1990’s. However, as a demographic group, Generation X became very independent and went to college at a higher percentage rate than the Baby Boomers before them.  We all age and mature, but the emotional needs of people that drive their behaviors remains the same.

So what will be different with the Millennials that will affect the housing market? They are delaying or eliminating marriage, but that is nothing new, as the average age of marriage and percentage of unmarried households has been going up since 1960. What is dramatically new is the way of communication. Since the introduction of the iPhone in 2007, people have been able to be connected online through a mobile device 24/7.  It has always been a critical skill in business to know how to communicate effectively with your customer. As the Millennials will continue to dominate home sale purchases, communicating effectively and expediently with them will all be about how well agents tap into technology to market and respond to them. While personal referrals are critical for an agent’s success to grow their business, the latest surveys conducted by Zillow showed that 29% of Millennials found their agent online, bypassing the personal referral process. I expect that number will increase, and the number of first-time homebuyers will continue to grow.

How do you communicate effectively with this population demographic?  It actually starts before they contact you, as they begin to research the market long before they speak with a Realtor. For starters, you need to have a mobile strategy, a video strategy, and be easily found online with your agent brand visible to them in multiple online formats. In targeting this group, just like with any marketing campaign, you should focus on the buyer’s interests.  I like what the Minneapolis Association of Realtors is doing with its first ever campaign targeting first-time homebuyers. They are creating humorous 30-second videos that will be available on social media.  You can see their ads at MatchMakersForHomes.com. This makes sense, as the Millennials consume information more and more through brief video segments.

To learn more about building your business, be sure to join the many Baby Boomers, Generation X’s, and Millennials who are all part of United Real Estate and register to attend the United Convention! Go to: Unitedpalooza.com.

CAN YOU DEFINE FREEDOM?

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Freedom is a symbol of the American dream. The hope of freedom has attracted millions of people from across the world to come to America.  The idea that freedom has always been promised to people in the United States may be comforting, but certainly not factual. There is a checkered history of freedom in America being interpreted to be meaningful to an inclusive group while excluding others. As I travel and meet with people across the U.S., I am more interested in how they define freedom for their lives, as opposed to having a debate on the historical timeline of freedom in this country. After all, shouldn’t we know what freedom looks like and means to ourselves as individuals?

A common question I ask people I meet is “Can you give me a definition of freedom?” The reaction to this question usually brings the look of bewilderment and a quiet awkward silence.  When I give an approving nod and a look of assurance to those that I posed the question to, I often times get a response that typically falls into one of two categories.  Either 1) to have enough money to never work again, or, 2) to do whatever I want.

Both of those answers sadden me a little bit, as I believe we have a built in need to contribute. Most successful people who gain true fulfillment do so by the contributions they make in their career or business, that then afford them the opportunity to give back to their community and family.  The other reason, often stated as doing “whatever I want” is the leftover rebellion of teenage years and the desire to not have anyone tell them what to do.  With either response, the individual may be missing the fundamental truth that is associated with the pursuit of happiness.

At the 2016 United® Convention in New Orleans, we first introduced the Webster dictionary of freedom: The absence of necessity, coercion, or constraint in choice or action. However, as with most things in life, obtaining freedom is more complex than that simple definition in the dictionary.

Find Your Freedom® is United Real Estate trademarked recruiting slogan for real estate agents to work in a modern, relevant brokerage that allows an agent to grow their business, their income, their satisfaction in work and in life. What our slogan expresses is the reality that having freedom is not the ability to do whatever you want to do, but rather freedom is the ability to do what you are supposed to do! And in real estate that means investing in yourself to improve your business knowledge, while having the resources and training available to generate clients to meet your business goals. This is the dream of living life absent of necessity. To reach this level, it is critical to know what steps to take, and how to take them. In addition, this journey requires help and support.

At the 2017 United Convention March 2-4 in Austin, Texas, we are going to give you the knowledge to do what you are supposed to do to have the best year in your business and happiness in your life. Our special guest is one of the most dynamic speakers you will ever see. Mel Robbins energized the United audience last year, and she will spend more time with us this year to assist and push all attendees to do what they should be doing to gain success and fulfillment.

To learn more about Mel and her message, you can view a brief video clip here

To find out more about the 2017 convention, go to Unitedpalooza.com.

Have You Become Afraid of Risk?

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It’s impossible, said pride.  It’s risky, said experience. It’s pointless, said reason.  Give it a try, whispered the Heart. The month of June is traditionally the top month for closed transactions in the real estate industry.  As the school year ends, families are moving into their new homes to fit the lifestyle they are seeking for the next period of their life.  It is also a time where graduates of all ages and school levels are faced with making decisions that will affect their future. In 2016 getting into the school they desire or launch their career will be dramatically affected by the number and the quality of people they are connected to.

As an entrepreneurial agent, how successful you will be in building the business you want will also be determined by the amount of people you are connected with.  How many potential customers are you connecting with that think of you first when they think about real estate?  Unlike a typical individual who is managing a budget, as an entrepreneur you are managing a profit and loss statement.  As an entrepreneur, you must perform daily and your scorecard for year end is whether or not you made more money. Unlike an employee annual performance review, the result is always crystal clear.  You connected with more potential customers and you either made more money or you did not.

Unfortunately, too many people either seek a short cut to achieve their biggest goals and choose a path that takes the least amount of effort, while others never take a risk or fully commit to their business venture. Entrepreneurs make progress a priority. They strive to take action to improve their ability to attract new customers every day. Successful agents know if they don’t act on their idea to reach out to a new FSBO, an expired listing, immediately and continuously follow up on buyer leads, and meet someone new and friend them on Facebook, another agent will and they will lose the customer.  Often sales people will not reach out of their comfort zone because of a fear of failing. The fear of failing becomes too risky and they stay in the status quo. Successful entrepreneurs look at risk with a completely different point of view.

“Entrepreneurs may fear failure, but they are more afraid of what life would be like if they don’t follow through.” – Tony Robbins

The thought of not reaching your goal as an entrepreneur is a more frightening idea to contemplate than failing.  Successful people know they will fail, but they also know they have to make another call, see another potential client. They know each interaction with a potential customer both positive and negative will be a learning experience that will challenge them to improve their skill set to improve their experience for their next potential customers.

When I was 17 years old, I drove across the country with $300 in cash, no cell phone or credit card, to spend two weeks touring the coast of California staying in cheap motels and camping out.  As I retell that story now, I am often told I was crazy and that was too risky.  Granted some youthful risk taking is misguided, however, to be a successful entrepreneur you are going to have to take risks.  If you have the right service or product along with commitment, those risks you take will dramatically change your life for the better.  All you have to do is decide to take that giant action to realize your biggest dreams and get started.

Best wishes for a wonderful summer listening to your heart and taking the risk that will allow it to help build your business!

United Takes New Orleans

  • Get ready for the 2016 Convention

    Get ready for the 2016 Convention

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Its official, we’re heading to New Orleans for our 2016 convention. Even though it might seem like the 2015 convention just wrapped up, we’re already planning for next year.

With our dedicated agents, brokers and industry experts all in attendance, our conventions are always a great success.  The convention is a fantastic opportunity to uncover new ideas, learn tactics for advancing your business and gain amazing insights from industry experts. The agents and brokers in attendance are able to set new goals, build connections with a powerful network of industry experts and build momentum for the coming year.

Haven’t been before? Here’s what you need to know:

Who

United Real Estate agents, staff, vendors and strategic partners are all invited to join us for our 2016 Convention. We use this as a time to recognize past accomplishments as well as gear up for the future.

What

Our annual convention is an opportunity to learn from educational speakers, mingle with United executives and be recognized for past years’ accomplishments.

When

The convention will be held February 19-21, 2015.

Where

To make the event even more enoyable, we’re hosting it at the Hilton New Orleans Riverside located along the Mississippi River and at the edge of the French Quarter.

Interested in learning more? Contact our support team at 855-441-6288 or eventteam@unitedrealestate.com. They’d be happy to help.

What is EMS Express?

Our newest project coordinator, Kyle Yancik explains our newest offering:

United agents, are you looking for an easy and timely marketing service for your next listing? If you are, our new marketing service EMS Express is right for you. EMS Express is a low-cost, semi-automated option for simple and timely marketing services. EMS Express is for United Real Estate and United Country agents that already know what marketing materials they want to use for their project and don’t need a full marketing campaign. EMS Express is easy for you to use with template marketing materials ranging from postcards and brochures to media buying.

Meet the EMS team.

Meet the EMS team.

Developing marketing materials is streamlined – giving you better results, in a shorter amount of time. You receive professional looking marketing materials from
our in-house marketing firm, ultimately helping your client and you buy and sell properties faster. Take advantage of EMS Express today for your next project.
To see all the marketing materials EMS Express covers and to start your next marketing project visit http://www.enhancedmarketing.net/shop/.

Meanwhile, if you have needs that fall outside of EMS Express our full-service marketing campaigns encompass a variety of online and offline marketing media. Our dedicated team of marketers will customize a campaign to meet you and your clients’ needs.

To start your marketing project, complete our creative brief at enhancedmarketing.net/creativebrief/ and start working with your dedicated Project Manager today.  If you’re a United agent, it’s – Lauren Aleshire, if you’re with another sector of our company, we’ll assign you another project manager to help you through the process. From $30,000 full marketing campaigns to $200 postcards – we can handle us. Give us a call and we’ll help you achieve your marketing goals.

10 Real Estate Terms You Need to Know

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When it comes to buying and selling homes, part of walking the walk is talking the talk. After all, it will be difficult to search for and land your dream home or sell your current home if you aren’t quite sure what all the terms mean.

Below, we’re going to detail 10 of the most important real estate terms you’ll encounter as you look to buy or sell your home. And by learning them all, you’ll have the tools you’ll need to go through either process with confidence.

  1. Buyer’s Agent vs. Listing Agent

In any home-related deal, there are two agents: the buyer’s agent, who represents the buyer, and the listing agent, who represents the seller. Both will get a percentage of the final sale price of the home as their commission, meaning that you don’t pay your realtor regardless of whether you’re buying or selling.

  1. Fixed Rate vs. Adjustable Rate Mortgages

Many individuals, including you, might need a mortgage to purchase a home. Fixed rate mortgages have a fixed interest rate for the entire loan (which is generally about 30 years) whereas adjustable rate mortgages have variable rates (which are generally 5, 7, or 10 years).

  1. Pre-Approval Letter

If a buyer needs a mortgage, it’s important to seek pre-approval from the bank to determine how much they’ll lend. This will determine which properties buyers can consider and show sellers whether or not a buyer is qualified.

  1. Listings

Homes that are on the market are commonly known as “listings.” Listings will provide vital information about a property such as the price, number of bedrooms and bathrooms, square footage, and other details.

  1. Inspections

After making an offer, it’s essential that a buyer gets an inspection on the home they’re interested in. An inspector will evaluate potential issues like plumbing, electric, heating, appliances, the foundation, and more.

  1. Appraisal

Lenders require property appraisals to determine the home’s value. Typically, appraisals are based on the sale prices of homes that have sold in the area as well as the current condition of the property.

  1. Contingencies

Contingencies are included in offers on a home and specify conditions that must be met in order for the deal to get through. Of course, there are other contingencies as well, including:

  • Financing Contingency – Demonstrates a buyer’s loan approval.
  • Inspection Contingency – Demonstrates inspection results.
  • Appraisal Contingency – Demonstrates the appraised value in comparison to what you’re willing to pay.
  1. Offers

Offers are often made by agents or attorneys to show sellers the potential offers being made by buyers on a property. It’s common for sellers to counter an offer as well.

  1. Closing Costs

There are several fees that come with purchasing a home, commonly known as closing costs. Often, closing costs total 2 to 5% of the purchase price of the home (not including a down payment).

  1. Title Insurance

Once a seller has accepted an offer, buyers should receive a home title report that shows whether or not the seller has rights to the title and there are no liens on a home.

Looking for Assistance in Buying or Selling Your Home?

An agent is an indispensable resource when it comes to buying and selling homes.

And, when you’re looking for more than just terms to negotiate on your dream home or obtain an offer on your current home, United Real Estate can help. Contact us today to get started!