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How Does Real Estate Company Work?

Establishing a Real Estate Company:

The basic requirements and criteria for setting up a real estate company may vary according to the state. There must be a broker in all cases. Whether the company is a corporation or single ownership, the owner must be licensed real estate dealer. Some states require every branch office to have a full-time broker to manage it. In some states, the broker of the head office can also be the broker of the branch office. Each state has separate laws that regulate advertising, escrow deposits, and telemarketing. Especially escrow deposits are closely monitored and regulated.

When real estate agents are hired, they are signed up with a deal of commission split. Commission split means when a commission is paid to a real estate company, and the commission is split between the brokerage and the agent. Some usual splits are 50/50, 60/40, 70/30. The split may vary according to the brokerage or the agent.

https://hbr.org/2012/08/take-ownership-of-your-actions

Listing Agent:

Listing agent is the individual who meets with a mortgage holder who is interested in selling their home. This individual works for a real estate brokerage. This individual is then employed by the sellers to sell the home. The sellers marked an agreement which clarified the measure of cash they would pay this listing agent’s business to offer their home. This agreement is known as a listing agreement.

Listing financier – All real estate agents work for a brokerage. Each brokerage has an authorized land representative who is accountable for the real estate agents working at that company. Each land specialist you meet will work for a business like one of those mentioned. The financier that utilizes the listing specialist is the listing business.

Buyer’s agent:

This agent deals with a person who is in need to buy a home. These agents show a potential home based on the needs of the buyers. The houses that the agent shows to the buyer are listed for sale either by listing agents or by the owners themselves.

Managing the Real Estate Business:

There is a wide range of managing tasks that are the core of a successful real estate business. A list of those tasks are mentioned below,

  • Real Estate Company should keep up with regional and local market happenings and industry news.
  • Research and update on active, sold, and pending listings.
  • Appointment arrangements and planning meetings, and showings
  • Manages paperwork, agreements, and records with proper state agencies

Common Investment Mistakes that most People Make

People tend to make one or the other mistake as far as investing decisions are concerned. The break rules and principles that might lead to disastrous results that the investor might not expect. Errors are common, but there are always means to avoid them. So here are some of the common mistakes that people make as far as investing decisions are concerned. Have a look at it and never commit these mistakes when you are investing.

Common Investment Mistakes

The wrong strategy used in pooling funds:

The crux in investing activity lies in how well you can manage your manage your funds and reap benefits. So it is imperative that you knock the right door for pooling funds. When you are pooling funds, you have to have an eye on factors like interest, the period of loan, repayment factors, your repayment capacity and so on. Never make an investment before analyzing all these factors.

Method of analyzing the returns:

Different people follow different strategies in analyzing their returns. You cannot expect to become rich or earn a lot of returns from the investments that you have made at the earliest. There is always a sleeping period for every investment, and it is the period during which the investment multiplies. Expecting to earn a lot of profits right from the minute you invest is not the right way of looking at an investment.

Acquiring a property manager:

As far as acquiring a property manager is concerned, there are two types of mistakes that people commonly make here. They either do not hire a professional when it requires, or fail to hire a professional when it is mandatory. In both cases, the person is making a mistake. If a property manager’s role is essential then look out for a professional’s help or in case if you cannot afford it, it is better that you avoid it.

Wrong Property:

This is the worst of all mistakes that you are making. You cannot buy a property before making a proper analysis. There are a lot of factors that help you decide what your type of investment is. Consider all those factors before buying a house. If you are investing in the wrong property, you are making an irreversible mistake as you will not only face loses when you invest but also when you sell them.

You can invest at any age:

There is always one common misconception as far as investment activities are concerned. Most people believe that investments can be made, only when you are financially sound and have good sources that you can utilize to invest. This is the reason why people with a lot of potential in real estate trade begin their career very late or at times give up on the idea of making investments. Of course, money is important, but what is more important is the way in which you are handling it. So if you are good at financial management, age is never a restriction.

 

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