Starting any business these days is a brave move. But if you are persistent and determined to succeed, and above all, if you have found the right niche, your efforts will pay off. Maybe you haven’t thought about it but investing in the senior housing industry can be a lucrative venture.
Probably one of the most significant reasons is that the demand for senior housing is higher than the supply. This type of real estate doesn’t attract as much competition as other real estate types. But people are getting old and still need a place to live.
Many investors are put off by the high cost of building senior housing facilities. So, you can try to tap into this market by investing in mixed-income senior communities. This type of housing is more affordable for lower-income residents but can be profitable for the property owner.
To start with this endeavor, you should consider the needs of the senior population in your community and determine the profit you can expect. Then, you could use help from skilled senior housing real estate brokers familiar with the market and overall housing values in the area. So, take some time to research your options and hire the best agent.
1. Ask for Recommendations
One of the best ways to select the right real estate agent for your needs is to ask close people to recommend a broker they’ve worked with. Brokers can be found through referrals, but you need to be specific about looking for an expert in the senior housing niche.
2. Do Online Research
The chance that you know someone who has worked with a senior housing real estate broker is small, so it is good to expand your search to the Internet. With a simple search, you can find names of brokers operating in your (or any desired) area. Then, use the Internet to check their websites, reputation, and customer reviews.
Check whether the online presentations of the selected brokers appear convincing and professional. Sites without important details on broker experience and expertise and contact data (such as a physical address or phone number) are mostly scams. So don’t leave personal information there at any cost.
Do your best to find brokers’ reviews. They should be written by previous clients who were or were not satisfied with the cooperation. Look for reasons for good and bad feedback. These will help you make a shortlist of senior housing brokers that you will check further. You can also look for complaints against a real estate agent through the Better Business Bureau website.
3. Background Check
While a real estate agent may claim to be an expert, that doesn’t mean they’re necessarily good at what they do. They must have experience with clients like you, so do some background checks on shortlisted senior real estate brokers.
Depending on the agent’s preferred methods of communication, you can do that by e-mail, phone, or in person. By doing that, you can determine whether senior housing brokers are licensed in your state. It means they underwent proper training to work in the real estate industry and met additional licensing requirements.
As seen in the source below, working with unlicensed agents comes with certain restrictions:
https://www.thebalancesmb.com/un-licensed-real-estate-assistant-2866992
4. Prepare for the Interview
After finding out about the brokers’ experience in the senior housing niche, write down a list of desired features and price ranges. Once you’ve done that, schedule an interview with each potential real estate agent and determine whether they match your needs.
When hiring a real estate broker, a great question is whether or not they understand your goals and values. Every brokerage has different values, processes, and operations. If you feel that you are not in sync with an agent’s beliefs, ask follow-up questions to find out if they suggest a better fit. So you should ask about how your agent’s marketing plan will maximize your opportunity.
Lastly, you should be able to communicate on a personal level with the agents. During the interview, you should be able to tell if they are only interested in making a commission. Make sure you choose someone who cares about their clients and is motivated to help you achieve your goals.
5. Discuss Fees
While you should consider the reputation and experience of each broker, you can also look at how much commission the real estate agent earns. The standard real estate commission rate is 6%, divided between the selling agent and the buyer’s agent.
Ask for a cost estimate, and make sure you ask about any expenses related to sales. Ensure you’re familiar with staging or any hidden costs you will incur. Also, you can always try to negotiate these fees with your broker. Find some negotiation tips on this link.
If you’re interested in the senior housing business, you must find reliable brokers to help you with that. With their experience and expertise, you achieve your business goals and make your senior clients happy.