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No one is born a real estate broker; successful real estate brokers acquire the essential skills that help them succeed in navigating the complex world of real estate transactions for their clients.

Communication is one of the most essential skills for real estate brokers. They must know how to convey important information to their clients and other concerned parties clearly and accurately. Furthermore, they require excellent listening skills to understand their clients' concerns and needs.

Another essential skill for real estate brokers is negotiation. They need excellent negotiation skills to represent their clients' interests effectively. They must demonstrate the ability to negotiate the best and most favorable terms, conditions, and prices on behalf of their clients.

Real estate brokers also need strong marketing skills to promote their properties to potential buyers effectively. Given the extensive paperwork involved in real estate brokerage services, brokers must pay great attention to detail to ensure they address every necessary aspect throughout a transaction.

​Based in Texas, Jerald Turboff leads Prime Capital Corporation and delivers residential and commercial property investment solutions. With a particular focus on the Texas market, Jerald Turboff closely follows local industry developments.

With the Houston housing market usually taking off in spring and early summer, as families look for new homes before the school year begins, this trend has not materialized in 2023. Instead, sales were at their lowest ebb since 2017, with higher interest rates keeping buyers on the sideline and others waiting for a price drop.

While the Greater Houston area did experience a 16th straight monthly home sales decline in July, the silver lining was that the decline rate reached its most gradual ebb in over a year. In addition, the sub-$100,000 housing market witnessed an increase in sales. While sales are still 8.5 percent lower year-on-year and 15.3 percent lower than in July 2019 (pre-pandemic), the market is stabilizing steadily. As consumers begin to navigate the process of purchasing a residence once again, Houston home prices remain steady. Average home values in the Houston-The Woodlands-Sugar Land area stand at $304,175, virtually unchanged from a year ago and pointing toward the potential for further growth.

​Jerald Turboff, the president of Prime Capital Corporation, began his real estate career in 1971 and is a well known and respected real estate broker, investor, and developer. Apart from providing brokerage, consulting, land warehousing and asset management services, during his career Jerald Turboff has invested in a diverse portfolio of commercial and residential real estate projects.

Commercial real estate (CRE) typically consists of buildings and other vertical improvements used for retail or various commercial enterprises. Because businesses intend to use these buildings for their physical locations, business operators (such as restaurants, dry cleaners, retail stores, medical professionals, etc.) want to take out relatively long-leases, usually lasting between three and 10 years. And for more expensive spaces, such as grocery stores and large department stores, the lease terms are even longer: 20 years and more. For building and leasing such improvements to various tenants, CRE investors and owners receive rental payments, and, with the longer lease term, there are usually periodic increases in the rental payments. In addition to rent payments, most tenants also pay common area maintenance ("CAM") costs, and their prorata share of the property's real estate taxes and insurance. Some CRE investors tend to hold their CRE for very long periods of time, and others prefer to be "merchant builders" who build a building, fill it with tenants, and then try and sell it for a profit. In today's market, the capitalization rates ("cap rates") for a seller aren't as attractive as they were just a year ago. In the Spring of 2022, Class "A" properties were often sold at 3.5 - 5.5% cap rates. Today, those same projects are being sold in the 4.5% - $6.5% range. And for older or non-Class "A" properties, the cap rates are even higher.

Residential real estate (RRE) presents different risks, challenges and benefits. RRE can be divided into two distinct categories: (i) homes built "for sale" to individual homebuyers; and (ii) homes and apartments built "for rent" to tenants. The major new homebuilders are experiencing somewhat of a Renaissance in their industry because through their mortgage subsidiaries and ability to "buy down" interest rates, they can sell homes for more attractive (i.e., lower) interest rates than those available in the marketplace. If you call Rocket Mortgage or any of the major banks that offer home loans, they'll offer rates in the 7+% range. If you buy today from a major homebuilder, they offer rates starting as low as 4.7%. As a result of this imbalance, re-sell homeowners are often finding it more difficult to sell their homes at prices they'd anticipated.

As for the apartment industry, it's experiencing some difficulties today because of: (i) the increase in bank interest rates they're being charged; and (ii) the higher cap rates their projects are experiencing upon a sale. If they started a new project in 2021 or 2022, their occupancy didn't occur as quickly as they'd anticipated; their bank interest rate has likely doubled; and their cap rate has also moved in the wrong direction. So, in many instances, they've had to hold or drop rental rates to increase occupancy; negotiate loan extensions from their banks since the ability to obtain attractive, long-term financing has declined; and/or sell their projects at lower prices than expected because of these current market conditions.

Those real estate investors and developers with "deep pockets" and the ability to wait for market conditions to improve will continue to profit from their CRE and RRE investments. However, those investors and developers who planned to get-in-and-get-out quickly, are unfortunately in for a bumpy ride for the next few years.

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Prime Capital Corporation, led by President Jerald Turboff, is a Texas real estate company focused on commercial and residential properties. Jerald Turboff and his team work in all areas of real estate in the Texas market, from brokering to consulting to asset management.

The Texas real estate market experienced exponential growth during 2015. A demand for housing increased new home construction as well as sales of existing homes. The boom directly benefited real estate-related businesses, such as construction companies, real estate brokers, and appraisers, as each made or stands to make more money than in previous years.

The sharp increase in sales leaves some people wondering if this boom is a bubble that will burst, as seen during the recent recession. While analysts are somewhat divided on the future path of the Texas real estate market, many prognosticators do not view the demand as a bubble waiting to burst. However, most opine that growth may slow across the board or even flat-line in some areas. Still, investing in the Texas real estate market may be both a good long-term and short-term financial decision.

Jerald Turboff is a Texas real estate executive and consultant. Jerald Turboff established Prime Capital Corporation, a company that brokers both residential and commercial real estate transactions in Texas.

Considered by many the hottest real estate market in the country, Texas has seen record growth in home prices and sales in recent years. The prices for homes in some areas have grown by up to 10 percent while the total number of homes sold in some areas has increased as much as 50 percent. Although exceptional in many ways, the growth is explainable.

In recent years, oil prices have steadily increased, resulting in high gas prices around the nation. As the chief domestic suppliers of oil, Texas oil companies and associated businesses have experienced increased production and revenues. According to the Railroad Commission of Texas, from 2009 to 2014, the amount of oil produced in Texas virtually tripled. At the same time that prices for crude oil swelled, the Texas economy experienced a surge, which enabled the growth of the real estate industry. 

For more than 25 years, Jerald Turboff has served as the president of Prime Capital Corporation, a real estate brokerage based in Houston. Jerald Turboff has primarily focused on commercial and residential transactions in Texas.

According to a report from the Real Estate Center at Texas A&M University, recent data from the Multiple Listing Service (MLS) indicates that home sales in Texas were 7 percent higher in August 2015 compared to the same month in 2014. The data also showed a more than 7 percent year-over-year increase in the median Texas home price.

In the September 2015 report, the Real Estate Center stated that 29,685 homes sold in Texas in August, which is nearly 1,900 more than the previous year. The report also showed that home sales and prices increased or remained steady year-over-year in all of the state’s major cities, with Dallas and Fort Worth displaying the most improvement.

While home sales in Texas declined from July 2015 to August 2015, the Real Estate Center noted that the decrease in sales is due to the normal seasonal slowdown. The Real Estate Center’s chief economist Dr. Jim Gaines explained that the Texas market remains strong overall, although demand has waned in areas impacted by the energy sector slowdown and low oil prices. 

When purchasing a property, it is important to not let emotions dominate the decision. Buying property is a huge commitment, so take the time to do a careful evaluation before signing on the dotted line.

1. Location. Make sure the property is in a part of town that is safe, close to work, near shopping centers, amenities and schools, and easy to access.

2. Get to know the area. Talk to neighboring property owners to get to find out what they may know about the property or area that the seller did not mention.

3. Visit at different times of the day. Traffic and area activity have a significant impact on a property's value and viability.

4. Look at the improvements and determine their age and condition to see if they need to be replaced. Examine the ceilings and walls for signs of water damage, mold, or other negative affects of age or disrepair. Walk all around the property and examine it from every angle to make sure it's suitable for your purpose and not a property that will end up needing more repairs than its worth.

About the Author
Jerald Turboff is currently President of Prime Capital Corporation, a real estate brokerage and investment firm in Houston, Texas. Turboff collaborates with clients and partners to negotiate transactions for both commercial and residential real estate.                             

Texas is home to some of the nation’s most affordable housing, according to new real estate research. The state ranked in the top 10 in housing affordability in a recent national survey that looked at home prices across the United States. Only eight states, Nebraska, Iowa, Georgia, Kansas, North Dakota, South Dakota, Mississippi, and Oklahoma, rated ahead of the Lone Star State. The state’s average list price for a four-bedroom, two-bathroom home stands at $186,144.

Within Texas, several cities rated high in affordability, including Terrell, which ranked 17th. Six other communities—Garland, Alvarado, Kaufman, Hartland, Duncanville, and Lancaster—rated among the nation’s 100 most affordable. The large cities of Dallas and Houston ranked 585 and 613, respectively.

The national study compared the average price of four-bedroom, two-bathroom homes for sale in 2,500 markets in the United States.

About Jerald Turboff: The President of Prime Capital Corporation, Jerald Turboff has spent more than four decades in the Texas real estate industry.                             

A real estate professional of more than two decades, Jerald Turboff leads Houston-based Prime Capital Corporation. As the company’s president, Jerald Turboff brokers commercial and residential transactions throughout the state.

Similar to a real estate agent, a broker possesses expertise in property sales and contract negotiations. However, a broker has completed real estate education beyond what is required of an agent. This prepares him or her to take the broker’s license exam. Upon successful completion of the assessment, a broker can launch his or her own business and hire agents to work therein.

All Texas brokers must be at least 18 years old and possess four years of experience as a licensed sales agent. Each must have completed 270 hours of qualifying real estate courses pertaining to law of agency, principles of real estate, and promulgated contract forms, among others. Additionally, the Texas Real Estate Commission (TREC) requires 30 hours of real estate brokerage courses. Submission of an application and fingerprints are necessary to receive approval to take the exam through Pearson VUE. Applicants must pass the examination within one year of their application’s filing with TREC.