After years of experience in the industry I have learned that it’s a really common practice for many real estate agents to not only mis-value properties during their first encounter with the owner, but also declare a fixed price for it, in hopes of trying to get your business. This goes for both rental price evaluation and sales price evaluation. You would think that, since they are professionals, they probably know about this and have the expertise needed to place a price on your home or apartment with one look. Well you would be wrong.
One very important thing to remember is that value is not a synonym of price. In general terms, the word price represents the amount of money that is asked for in order to purchase a certain something. Pretty basic right? That’s when value comes in. Value represents the actual benefit you are gaining by paying a price at the time you make a purchase. Value is that extra space you would love to have in your bedroom for a triple dresser. Or those extra square feet you need in your backyard for the vegetable garden you want to grow. Or a good view of the beach from the second floor.
And this is why stating that your property is worth a fixed amount and can only go for a certain price is plain wrong. It is wrong because even when an expert is able to assess the approximate worth of a property based its characteristics and recent history, a whole set of additional circumstances go along with that into actually defining the end value of the same property for individual potential buyers.
Maybe there’s a very specific circumstance in relation to the neighborhood surrounding the property that will give one buyer a less attractive standpoint in regards to the value of the property while at the same time, another person will actually offer an additional premium due to the fact that its really close to their workplace. In the second case, as this happens, and this new offer appears due to a single need met by this specific property, the market value begins to vary. This is basic supply and demand going into action.
For this same reason, when stating a property’s potential worth, it’s common practice to use ranges when speaking about actual pricing. This way agents take into account a variation of value that a set of different additional circumstances offer, as well as other changes in market behaviour that could very well affect the value of the property at any given time.
So, if you get to meet a new agent and he/she instantly states a fixed pricing for your property, always remember – they are either lying to you, or they have a crystal ball.
This is a reality that a lot of us don’t ever want to face. The possibility that someone may hurt us whether through abuse or threats. Realty Trust Services does not condone abuse or threats of any sort between tenants, landlords and tenants, or outside persons. WE TAKE YOUR SAFETY SERIOUSLY. Here are some steps that you can take to protect yourself.
The state of Ohio has a lot of laws that define what abuse is. They can be found online here:
Ohio Laws and Rules
The first thing that you want to do if you are getting abused is get yourself out of the situation. IMMEDIATELY contact your local police department. You have the right to be protected. There are also several different places where you can find further assistance. The National Domestic Violence Hotline is available 24 hours a day, 7 days a week. You can contact them here:
Realty Trust Services wants to make certain each of our tenants feel safe and secure at their home. It is of paramount importance that after a long day of work or taking care of the kids that you come home to a safe and secure place. YOU ARE IMPORTANT TO US.
There are a lot of laws that cover you in the case of something happening. Here are some links to help you:
There are many tools and places that you can contact in the case of domestic violence, abuse, or threats. Realty Trust Services is committed to having a safe living environment for each of it’s tenants.
Our ultimate goal is to make investment property ownership a stress-free and profitable for the property owners. There are many ways we do that, and we are always working to find new ways to meet the needs of our property owners. This is why we strongly suggest video inspections.
One of the many services we offer are video inspections. This includes a recorded walk through of the apartment prior to a new tenant moving in. It also includes a recorded work through of the apartment when the tenant moves out. Video inspections are provided when large repairs or improvements are being recommended.
We have found the use of video inspections to be positive for both us and the property owners. When a property owner decides to work with a property manager, there is a certain level of trust needed.
For example, when a manager contacts the owner to let them know about repairs needed to the property that will cost the owner money, the owner has two options:
One thing we do to lessen the potential for a bad situation and to build that trust with the owners is to do video inspections. This is good in several ways. You can see a lot more detail in a video that you can in photo. It allows us to zoom in on areas of damage while still providing perspective on where the damage is.
A video provides a better overall view of the property. This is especially helpful when comparing the condition of the property when a tenant moves to when the tenant moves out.
Limitations of video inspections
Video inspections can be limited in that it creates a sometimes long process. Particularly if you have to look through an entire video just to find one area of damage. However, we lessen that limitation by using the video inspections along with a written inspection report.
For example, if a property has exterior damage that needs to be addressed. We can provide a written report detailing the damage, repairs needed, and expected cost. We send it with a video of the damaged area. In this respect, the video will enhance the information provided in the written report.
Interior video inspections while a tenant is living there are sometimes difficult to get. However, this particular limitation can be addressed on a case-by-case basis.
Benefits of Video Inspections
By providing the video inspections along with inspection reports we are building trust between us and the property owner while getting rid of a possible awkward situation of the property owner feeling the need to ask for proof of property damage and repair estimates.
Videos are also helpful when a case goes to court. We have found that video is much more effective when a tenant needs to be evicted or taken to court and there is property damage involved. Getting a video tour of the damage has a greater emotional impact than photos. The videos can also be used to show a clearer before and after condition of the property in court.
If a deposit is withheld due to damages and the former tenant argues that they deserve all or part of their deposit back, it is the property owner’s responsibility to prove the damages were legitimate and caused by the tenant. This is when before and after videos are most useful.
Video can also be used to lease properties faster and more effectively. How to use the power of video to promote your properties will be covered in How to Use Video to Lease Your Property Faster.
Our experienced investment property management team can relieve you of the burden of managing your rental property while saving you some serious money! Call us today at (440) 220-7300 to see how we can help you!