All Entries Tagged With: "Buying a home"
Why Use a REALTOR® When Selling Your Home?
A real estate agent can help you understand everything you need to know about the home selling process.
Not all real estate licensees are the same; only those who are members of the NATIONAL ASSOCIATION OF REALTORS® (NAR) are properly called REALTORS®. They proudly display the REALTOR “®” trademark on their business cards and other marketing and sales literature.
REALTORS® are committed to treat all parties to a transaction honestly. REALTORS® subscribe to a strict Code of Ethics and are expected to maintain a higher level of knowledge of the process of buying and selling real estate. An independent survey reported that 84% of home buyers would use the same REALTOR® again.
Real estate transactions are one of the biggest financial dealings of most people’s lifetime. Transactions today usually exceed $250,000. If you had a $250,000 income tax problem, would you attempt to deal with it without the help of a certified professional accountant? If you had a $250,000 legal question, would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would be wise to work with a professional REALTOR® when you are selling a home.
If you’re still not convinced of the value of a REALTOR®, here are more reasons to use one:
- When selling your home, your REALTOR® can give you up-to-date information on what is happening in the marketplace as well as the price, financing, terms and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle.
- Often, your REALTOR® can recommend repairs or cosmetic work that will significantly enhance the salability of your property.
- Your REALTOR® markets your property to other real estate agents and the public. In many markets across the country, over half of real estate sales are cooperative sales; that is, a real estate agent other than yours brings in the buyer.
Your REALTOR® acts as the marketing coordinator, distributing information about your property to other real estate agents through a Multiple Listing Service (MLS) or other cooperative marketing networks, open houses for agents, etc. The REALTOR® Code of Ethics requires REALTORS® to utilize these cooperative relationships when they benefit their clients. - Your REALTOR® will know when, where and how to advertise your property. There is a misconception that advertising sells real estate. NAR studies show that 82% of real estate sales are the result of agent contacts through previous clients, referrals, friends, family and personal contacts. When a property is marketed with the help of your REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally prescreen and accompany qualified prospects through your property.
- Your REALTOR® can help you objectively evaluate every buyer’s proposal without compromising your marketing position. This initial agreement is only the beginning of a process of appraisals, inspections and financing – and a lot of possible pitfalls. Your REALTOR® can help you write a legally binding, win-win agreement that will be more likely to make it through the process.
- Your REALTOR® can help close the sale of your home. Issues may arise between the initial sales agreement and closing (also called settlement or escrow), for example, unexpected repairs might be required to obtain financing or a title problem is discovered. The required paperwork alone is overwhelming for most sellers. Your REALTOR® is the best person to objectively help you resolve these issues and move the transaction to closing.
What You Should Know Before Buying a Home
By Joe Quirk
I read in the paper the other day that there are four years of housing inventory currently on the market. Whoa! That’s a lot of houses and that tells me that there are great opportunities for buyers. The buyer has the upper hand right now. You can take your time shopping around, learn about the neighborhoods and be choosy about the home you plan to purchase.
With that said, it is a good idea to take a few things into consideration before taking the plunge. Doing a little planning beforehand will make for a focused search and will prevent you from wasting a lot of time while conducting your search.
1. Get a copy of your credit report. The top three credit agencies are Equifax, TransUnion and Experian (formerly TRW). Reviewing your credit report before applying for a mortgage will you help you to clear up any discrepancies on your report.
2. Get your papers in order. You will need to provide documentation to your mortgage broker to qualify for a mortgage. You mortgage broker will be able to provide you with a list of records needed.
3. Get preapproved for a mortgage. Find out how much you can afford. It is one of the first questions your Realtor will need to know. It helps to eliminate the homes that are not within your price range. Your Realtor should be able to recommend a mortgage broker to you to help you prequalify for a loan. Prequalifying for a loan will also help to make the negotiation process of buying a home run smoothly. Did you know that the general rule of thumb is a mortgage equal in value between two and three times our gross income?
4. Search online. Most consumers start their search online and I highly suggest all interested buyers do that. It gives you a starting point and will help you to communicate to your Realtor® what you are looking for and, just as importantly, what you are not looking for. It makes for more meaningful communication with your Realtor® and will help your Realtor to hone in on the key points important to you.
5. Shop for neighborhoods. There are many great neighborhoods in Jupiter, Florida and the surrounding areas. Along with the price range, you will need to decide if you want to live in a gated, golf, family friendly neighborhood. Our communities page can give you some insight into the neighborhoods in the area.
6. Assess your expenses when buying a home. Don’t forget the incidental costs of purchasing a home. Some communities include homeowners fees. You’ll also want to consider the cost to maintain your home. For example, moving from a home with no pool to a new home with one will increase your water, heat and maintenance costs. Property taxes are high and should always be included in your monthly expense.
7. Prepare to bring some cash to the table. You will need a considerable amount of money to purchase a home. The typical down payment is 20% of the purchase price. Then there are the closing costs that can be about 7% of the home price.
8. Find a good Realtor®. Finding a good Realtor® is wise for a number of reasons. A Realtor who is familiar with the area and the communities within the area can consult with you on finding the right community for you. A strong knowledge of real estate laws and practices can help you through the complete buying experience from applying for a mortgage to the closing. Lastly, a Realtor® with strong negotiation skills are critical when purchasing or selling a home. You will want a Realtor® who can best represent you when negotiating the purchase of a home.
