Applying Core Real Estate Skills Business: Product Knowledge Know about a range of property types. Keep up to date on new properties, recreational facilities, and potential investment properties. Business: Financing Know second-home financing, down payment and underwriting standards, 1031 exchanges, trusts, investments, and ownership options. Business: Investment Knowledge Help clients understand and evaluate investment potential and provide a neutral sounding board for decision making. Business: Technology Use Use technology to communicate and market services and properties to customers. Safeguard client and customer data. Business: Negotiation Know how to conduct long-distance negotiations and work with “gate keepers” and negotiators who are not the decision makers. Interpersonal: Communication Develop a style and methods for a range of clients and distance communications, ability to interpret nonverbal signals, and communications. Interpersonal: Patience Be patient! It may take several to complete a transaction. Purchase of a second home is always optional. Interpersonal: Customer Service Extend service beyond the transaction. Provide support for clients and customers. Interpersonal: Mindset Adopt an “ambassador” mindset. Know about local issues and trends as well as market demographics. Interpersonal: Community Activities Get involved with tourist councils. Influence community issues impacting visitors and investors. Risk Management: Regulatory Knowledge Know about environmental issues and property use restrictions. Risk Management: Representation Familiarize clients and customers with state and local practices and agency relationships. Risk Management: Tax Issues Know about tax issues affecting investment and second homes. Marketing: Outreach methods to reach customers in other locales and countries. Know how to market the area, properties, and unique and high-end homes. Marketing: Presentation Skills Adapt presentations to the property, market, area, and client expectations, and personal appearance to the resort area. Marketing: Networking Develop a referral network beyond local area. Maintain a local network of specialized service providers. distance cultural
How Does Your Market Compare? What motivates buyers in your market? What are they looking for? Investment Lifestyle Life Stage Rental income Value appreciation potential Part-time use Shared ownership with friends or family members Renters are attracted by the same interests and features as buyers Enjoy interests and hobbies Snowbirds Refuge from life Relaxation Luxury properties Urban pied à terre Splitters—dividing time between an urban home and a getaway, working from any location Retirement or Spend time with family—children and grandchildren Housing for a college student What interests and activities are popular in your market? Hunting Fishing—fly fishing, deep sea, fresh water, ice sports, sailing, boating Golf Tennis Skiing and winter sports Bird and wildlife watching Climbing, hiking, biking Horseback riding Wilderness Sports teams Theme parks Gaming Gardening, viticulture What types of properties are prevalent in your market? Single-family homes Condos Cabins and cottages Time shares and fractionals Destination Resort complexes Farms and ranchettes Recreational ranches
10 Annual Property Operating Data Property Name Location Type of Property Purchase Price Size of Property Sq. Plus Acquisition Costs Plus Loan Fees/Costs Purpose of Analysis Less Mortgages Equals Initial Investment Assessed/Appraised Values Balance Pmt Pmts/Yr Interest Amort. Period Land 1st mortgage 12 ______ ______ Personal Property 2nd mortgage 12 ______ ______ Adjusted Basis as of _________ $/SQ FT or Unit % of GOI ALL FIGURES ARE ANNUAL Comments/Footnotes Potential Rental Income (PRI) Less Vacancy & Cr. Losses (__% of PRI) EFFECTIVE RENTAL INCOME Plus: Income (collectable) GROSS OPERATING INCOME OPERATING EXPENSES Real Estate Taxes Personal Property Taxes Property Insurance Off-Site Management Payroll Expenses/Benefits Taxes/Worker’s Compensation Repairs and Maintenance Utilities: ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ 15 ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___
program Websites NATIONAL ASSOCIATION OF REALTORS® www.Realtor.org NATIONAL ASSOCIATION OF REALTORS® Resort and Second Homes www.Realtor.org/Resort NATIONAL ASSOCIATION OF REALTORS Research www.Realtor.org/research-and-statistics Realtors Property Resource® www.narrpr.com http://blog.narrpr.com/blog American Red Cross www.redcross.org Federal Emergency Management Administration (FEMA) www.fema.org Flood Insurance Program Flood Insurance Reform Act 2012 Flood Maps Flood Smart www.floodsmart.gov IRS www.irs.gov U.S. Army Corp of Engineers www.lrd.usace.army.mil U.S. Fish and Wildlife Service www.fws.gov