If you are a new and inexperienced realtor trying to get your profit margins to look more like that of Nathaniel Ploskonka, you need to know a few things first. Real estate is certainly a tough field to break into, especially for those who go in without doing the proper amount of research first. There are many pitfalls and traps that exist in the arena of real estate, which is why you should always do the proper diligence first. A little research now can save you big bucks later down the road. One way to increase your profits and avoid costly mistakes is to simply do the math.
According to Bankrate.com’s Real Estate Tips, “Too often, buyers get caught up in win-at-all-costs negotiation. They’ll stubbornly let as little as a few grand lock them out of the right house. At an interest rate of 4.5 percent, the difference between paying $200,000 and $195,000 — assuming 1.25 percent property tax and 15 percent down — is only about $25 per month on a 30-year mortgage, or about the cost of lunch for two at a fast-casual eatery, before the tip. Don’t let that ruin your chances at your dream home.”
Leave emotions out of it. Remember that real estate is a business. You don’t want to lose out on a potentially profitable property just because of a few thousand dollars. That is why if you are ever in doubt, it is best to simply sit down and do the math first. This has helped realtors like Nathaniel Ploskonka do well.