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Smart Agents Add Investing and Management to Their Skill Set - 2009-09-27
Real estate sales is one of the most stressful jobs I can imagine.

First there's the buyer.  They begin their pursuit of the perfect house by demanding unrealistic prices and unavailable loan programs. And if anyone should hint that the seller is pushing back on a low offer, well, let's just wait until next year to make this purchase.

Next is the seller, who expects the agent to make a silk purse out of a sow's ear - literally. Many a seller today has largely given up on a sale anytime soon and is, more or less, testing the waters. If a buyer comes along who is willing to pay the price, then so be it. But there's not much urgency to make a sale.

And both sides of the deal expect the agents to be available 24/7 for consultations, showings, information and even personal advice.

Add to the mix a flurry of lowball deal-killing appraisals lately and the looming expiration of the very successful first-time homebuyer tax credit, and it hardly pays to stay in the real estate sales business today.

That's why the Georgia Association of Realtors has seen a dramatic loss of membership. At year end 2007, the GAR boasted 48,244 Realtors. Today, that number has dropped to 33,716, and that doesn't reflect the agents who have "parked" their license at a broker of convenience until the market improves.

Savvy agents are doing more than just twiddling their thumbs. Many are adding investing and property management to their skill sets.

There are compelling reasons to do this now:

* While the residential purchase and sale market has dwindled, the rental market has expanded. Amateur landlords are having to compete with a greater selection of rental homes than ever before, and staying occupied during a recession is more important than ever. A good property manager will minimize vacancy.

* Some owner-occupants facing tough times have decided to move in with friends or family and try to rent their house rather than go into foreclosure. Their strategy is to use the rent to help make the monthly payments, thus protecting the equity in the house.

Full service rental agents know that the key to success in today's rental market is much more than just a sign in the yard. Instead, it's knowing how to get the available rental in front of the maximum number of prospects quickly, and that means the Internet. Inexperienced owners are unlikely to produce the same rental results as an agent who has been down this road before. And finally,

* Because they are positioned to see the best deals first, many agents are dipping into personal savings to purchase rental houses at prices we have not seen in decades. Because they are in the industry, they know values, and believe we won't see these deals again, especially on bank-owned homes. They plan to rent these houses now and hold on for the recovery.
 
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Tuesday, February 28th

Being a landlord can be a rewarding experience. It can also be a difficult one if you don't have the knowledge and understanding of what the process requires.

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One of the significant annual expenses faced by any Georgia property owner is ad valorem property tax. Depending on where you live, it can be as high as three percent of the property's fair market value, and it must be paid year after year after year.

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