Top Tips for Real Estate Professionals
A new season brings with it new properties to buy and sell as well as taking control of your work finances. Although the current market has recently retreated from its recent hot streak there is still some optimism in the air. With mortgage rates remaining at historic lows, the economy getting a boost and unemployment declining last year, there are a number of reasons to believe that home buying will begin to heat up again.
We think Millennials are one of the more difficult to understand but increasingly important demographics for the housing market. The purchasing power of millennials continues to increases and this new class of buyer could help significantly with the current 10% decline in the housing market. The unemployment rate for millennials has fallen by 5.4% and is on track for a larger decrease in 2016 (1 footer). Also, according to a consumer affairs report “85% of buyers who plan to purchase in the next year intend to buy in the spring or summer of 2016” (2 footer). That means it’s time to get your houses ready for the prime listing season this year (April – July) and make sure you’re maximizing your take home pay as an agent or broker.
The current real estate agent on average has 100 listings (realtor.com). Now, that’s a lot of ground to cover and savvy time and location management can make a significant difference to your quality of life. This can become cumbersome once you are ready for tax season and you are trying to scramble to get every deduction possible back.
Here are some best practices tips for real estate that can help this year be the best yet for you:
Track Your Miles
- People are always surprised by how much those miles are worth and every 1,000 miles is worth $535 as a business related expense. Make sure to use an expense tracking app or detailed paper mileage log so you have the proper documentation in the event of an audit.
Record Every Receipt
- Make sure you know what counts as a business related expense and be sure to record everything. It’s probably time to say goodbye to your old system of envelopes or ziplock bags for receipts and start using your smartphone. Make sure to think through non-obvious categories such as your cell-phone bill or subscriptions to professional journals.
Keep Track of Your Listings
- Keep a list of all the details per property is very important for you and your clients. Download the Real Estate Holdings form to start recording all the details about your property.
Export Your Data For Your Taxes
- Take control of your taxes early this year. Make sure you use a tool to track and export your data to ensure you have all your deductibles logged and you can make life easier for your accountant.
Many realtors under report their miles because they forget to properly document them. Everlance users are recording $3,500+ a year in deductions due to catching all their business related miles correctly. The app is 100% free and you can try it yourself here: Visit our Website
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- Photo Credit: Unspalsh – CC0