Frequent question: How does the golden rule work in real estate practice?

How does the golden rule works in real estate practice?

Practice the “Golden Rule” with respect to everyone at all times—your clients, other agents, other agents’ clients and the general public. Always treat everyone the way you would want to be treated. Make your enemy your friend.

What is the golden formula in real estate?

In case you haven’t heard of the so-called Golden Rule in house flipping, the 70% Rule states that your offer on a property should be no greater than 70% of the After Repair Value (ARV) minus the estimated repairs. For example, let’s say you’ve got a property with the following: ARV = $350,000. Repairs = $60,000.

What is the code of ethics Golden Rule?

been handed down through the centuries, embodied in the Golden Rule, “Whatsoever ye would that others should do to you, do ye even so to them.

What is code of ethics in real estate?

The NAR Code of Ethics sets the standard for Realtor business practices. Its 17 articles provide standards for conduct with clients and customers, the public, and other Realtors. … In practice, Realtors are required to abide by the Code of Ethics as a way of doing business.

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What are the three major sections in the Code of Ethics?

The Code of Ethics is divided into three major sections, “Duties to Clients and Customers,” “Duties to the Public,” and “Duties to REALTORS.”

Who does the Code of Ethics protect?

The code of ethics protects the buying and selling public. The code of ethics is divided into three major sections: duties to clients and customers, duties to the public, and duties to Realtors. Under no circumstances may a Realtor talk to, negotiate or discuss real estate matters with the client of another Realtor.

How do I calculate ARV?

The after repair value formula is:

  1. ARV = Property’s Current Value + Value of Renovations.
  2. Maximum Purchase Target = ARV x 70% – Estimated Repair Costs.
  3. Maximum Purchase Target = $200,000 x 70% – $30,000.
  4. Maximum Purchase Target = $110,000.

What is a good ARV?

The 70% rule is a guideline in the real estate investing business that states no bid price at the beginning of a project should exceed 70% of the ARV minus estimated repair costs. This is a rule of thumb that real estate investors should follow which will allow them to make a 30% return on their investment (ROI).

What does the Bible say about the Golden Rule?

In the King James Version of the Bible the text reads: Therefore all things whatsoever ye would that men should do to you: do ye even so to them: for this is the law and the prophets.