Why should I hire a Realtor?

As written in Top Ten Reasons to Hire a Realtor, there are many great reasons you want a Realtor on your side. In the end though, it all boils down to this--a contracted Realtor watches YOUR back, they work with you, not the competition. A Realtor is there for advisement, help with the paperwork and guidance through the whole process. If you have questions or run into difficulties with your transaction, having a contracted Realtor is somewhat like having a lawyer on retainer--only instead of legal work, they do real estate work! Having someone who works in the real estate industry full time can be a real asset to your realty team.

 

Found a house, now what?

1. Make an offer!

2. Get a pre-qualification letter if you haven't gotten one yet and get your financial paperwork together for a loan approval. Don't leave it to last minute.

3. Get a market report of recent Sold comparable properties to make the most and best competitive offer. If the property is exceptional, don't waste time low balling the offer, keep the offer strong and clean. This means your offer will be somewhere close to the asking price, at the asking price or just above. Short contingency time frames where possible and smaller closing requests. Good Ernest money deposit. Show the seller that you are a serious buyer, a cut above the rest, and reliable.

4. Have alternative options should you not get all the terms and requests on the first round. Determine what is most important to you for this property. What can you do without? What is your maximum offer before you bow out? Are there any deal breakers? If you know where your boundaries are there will be a chance for doubt, second guessing, regrets and avoid buyer's remorse.

5. Once your offer has been accepted, run to a calendar and write down those deadlines, due dates, your list of responsibilities, and know their consequences if you default on them. Discuss with your agent and know those dates and your responsibilites clearly.

6. Be conscious about business work days, hour changes between states, if applicable, and holidays or furlong days, as some businesses like escrow and government offices have goine to four day work weeks.

7. Last but most important, keep on top of your lender. It is your responsibility to keep abreast of the whereabouts of your loan status. You have a deadline to meet. Lenders are not keen to be lenient if you miss it. They are more likely to take directives from you, their client, than from your real estate agent. After all, you are paying them for their business. Who do you think they would likely listen to?

When do I need to get a loan?

You need a loan when you are serious about a home purchase. It isn't wise to wait until you have found your dream home to then decide on a lender. Last minute choices can cost you money and compromise negotiation, cost you your dream home. Your first stemp is to shop around for your lender, the rates, loan types, and the terms you want and possibly need. Your next step is to have time on your side: time to do research, time to discuss and ask questions, and time to ponder your options. Once you have made your choice, get a pre-approval from the lender you have picked.

A pre-approval is more than a pre-qualification. A pre-approval is the next step after a pre-qualification; it is the step that requires proof of income, assets, debts, credit report, etc. The advantage of a pre-approval is when you are competing against other homebuyers for the same property, known as a multiple offer situation. Despite an increase in housing inventory, the best properties will more than likely get multiple offers when they are priced right. You'll need to be financially prepared to have the advantage over other homebuyers. Another reason for having a pre-approval is to avoid delays which may affect closing. If you are not able to close on time you may forfeit your rate lock, especially if the rate lock deadline ends on the same day as the day of closing. So, it is important to get all your loan documents ready. If you are working on an offer for a property that is subject to bank approval, remember to account for potential delays as they almost always happen. There is a tremendous advantage to you as a homebuyer to showcase your best offer by making a positive lasting impression and to remove unnecessary stress and inconveniences from the process of buying. Buying a house can be emotionally trying, create an enjoyable experience by being prepared.

How do I increase my equity?

How do you discuss housing equity when housing prices are still sinking monthly? Much of today's house sale is about presentation and less about putting more money into remodeling. It is about doing the upkeep, the everyday necessary maintenance of repairs and clean up. It's about keeping your place clean of clutter, inside and out.

Here are some ways to help increase the equity of your property. The first is fairly straight forward--you can increase the equity of your home by simply paying more towards your principle. Second, try repairs and cosmetic fixes to areas that communicate problems, such as the siding, roof, foundation, energy leakage problems or paint. Third, if you want to remodel, carefully budget your remodel expenses into areas that will do the most good. The kitchen and bath remodel almost always give you a return on your money. They are the keystone behind the quick and profitable sale of most homes.

Fourth, people are naturally drawn to well kept yards and immaculate landscapes of cohesive neighborhoods. It communicates desirability, community, care, and worth. Help hold neighborhood activities to begin drawing the people together and creating that tangible sense of community which will change the landscape of your neighborhood. Finally, learn ways to make your home more Green. As energy prices increase so will the potential for a more profitable sale of energy efficient homes. However it is you choose to help increase the equity of your home, choose it well by thoughtfully outlining your goals and make your money work for you.

Open Houses, what are they?

Open houses are ways to advertise the availability of your house to the general public: to potential buyers and their agents and to the neighbors who may have potential buyer referrals. Sellers of otoher properties attend open houses for opportunities to get to know the competition and acquire ideas to improve their property for the market. For real estate agents, they are opportunities to obtain more businesses, more clients. It's their moment to share what they know about the area, the property, and sometimes their services.

Typically open houses take place during the weekends while some communities have theirs on a weekday. Resale properties or non-new constructions are usally held open for three hours at a time, per week. Some sellers may request for more frequent open houses but, open houses can be a waste of time if the property is overpriced.

If you do choose to hold open houses, create a positive sensory experience: sight, sound, and sense (or smell). Although tread lightly and don't overwork the nose!

How do I hire an inspector?

One of the best ways to find a good inspector is often through a family or friend referral. However, this isn't always foolproof. Make a list of qualities you want and need to have in an inspector and from this list create a set of questions to ask when interviewing for the one that best fits you. Check out this article for more information.

Broker, Realtor or Agent?

Real estate agents who belong to the National Association of Realtors are allowed to call themselves Realtor or use the associated registered trademark of REALTORS. They subscribe to a stricter code of ethics, usually better skilled, more education, and more professionalism. Both Broker and Realtor are real estate agents, but not all real estate agents or brokers are Realtors. However, all Realtors are real estate agents and all real estate agents subscribe to the State's standard code of ethics.

Brokers all have at least two years of experience, are 18 years or older, have a high school diploma or equivalent, taken 120 specialed education credit hours, and have passed the State's broker's exams. Whereas, a real estate agent does not need to have a high school diploma or 120 specialized education credits. They are only required to have 60 hours to obtain a license and 30 hours to renew their license every two years. There are three types of brokers: a designated broker (sometimes referred to as a broker owner), managing broker, and an associate broker.

A broker may be a person, a corporation or a partnership, licensed to represent the public in real estate transactions for a fee. A designated broker is a corporate officer or general partner who is authorized to act as the broker for a licensed corporation or partnership. A managing broker is an associate broker who has been delegated or hired to manage the real estate company or a branch of the company. An associate broker is a real estate agent who has met the requirements to become a broker but is affiliated with another broker's business, or where they "hang" their license with a licensed broker's business.