Posts Tagged ‘Real Estate Agent’
Protect Your Deposit When Buying Real Estate
Real Estate Advisor asked:
When you start the process of buying a home or any type of real estate, you’ll no doubt hear the term “earnest money deposit” (EMD). So what exactly is an EMD?
An EMD becomes relevant when you are ready to make an offer on a property. In most states, your Real Estate Agent prepares the offer on your behalf. The offer usually takes the form of a written contract that is submitted to the seller by way of their agent.
In addition to the offer document, sellers typically expect an EMD. An EMD is a monetary deposit submitted via check to demonstrate to the seller that you are a serious buyer. In some regions of the country, only a photocopy of the check is submitted with the offer, and the original check is delivered to the appropriate entity if the offer is accepted. Ask your Real Estate Agent to clarify how deposits are handled in your region of the country.
The check is usually made out to an independent third- party such as a Title Company, Escrow Company, Real Estate Attorney or your Real Estate Broker. Ask your Real Estate Agent to clarify who will hold the EMD.
The amount of the EMD sellers expect varies by region. The EMD amount is based on the customs and practices for a region, but is generally from 1% to 2% of the purchase price. In a competitive market place where demand exceeds the supply of homes, some buyers may offer a higher EMD than expected to impress the seller of their intent. In determining the amount of your EMD, consult your Real Estate Agent and balance the need to demonstrate your serious intent, against the good business practice of minimizing the deposit amount.
The amount of the EMD is usually applied to reduce the purchase price of the property or to cover closing costs, as you dictate. For example, if you are purchasing a $300,000 property and you give an EMD of $3000, then the remaining balance owned at closing is $297,000 (plus closing costs). Alternatively, you may direct that the EMD be applied toward the closing costs.
Once a valid contract for purchase is created, an independent third-party usually holds the EMD until the purchase is either completed or cancelled. At this point, the money belongs jointly to both the seller and the buyer.
In cases where you make an offer that is accepted but later decide to cancel the offer, the terms specified in the contract (or state law) will dictate if, and under what circumstances, the EMD is returned to you. Be aware that you could loose your deposit if you do not not comply with the terms of your contract. Your Real Estate Agent can provide you information about how EMDs are dealt with if a contract is cancelled.
Since state law varies by region and practices can differ even within the same state, be sure to consult your Real Estate agent about the rules that apply to EMDs in your region of the country. You should also be aware that the EMD is not related to any down payment that you make toward your home loan.
La Mirada Real Estate
When you start the process of buying a home or any type of real estate, you’ll no doubt hear the term “earnest money deposit” (EMD). So what exactly is an EMD?
An EMD becomes relevant when you are ready to make an offer on a property. In most states, your Real Estate Agent prepares the offer on your behalf. The offer usually takes the form of a written contract that is submitted to the seller by way of their agent.
In addition to the offer document, sellers typically expect an EMD. An EMD is a monetary deposit submitted via check to demonstrate to the seller that you are a serious buyer. In some regions of the country, only a photocopy of the check is submitted with the offer, and the original check is delivered to the appropriate entity if the offer is accepted. Ask your Real Estate Agent to clarify how deposits are handled in your region of the country.
The check is usually made out to an independent third- party such as a Title Company, Escrow Company, Real Estate Attorney or your Real Estate Broker. Ask your Real Estate Agent to clarify who will hold the EMD.
The amount of the EMD sellers expect varies by region. The EMD amount is based on the customs and practices for a region, but is generally from 1% to 2% of the purchase price. In a competitive market place where demand exceeds the supply of homes, some buyers may offer a higher EMD than expected to impress the seller of their intent. In determining the amount of your EMD, consult your Real Estate Agent and balance the need to demonstrate your serious intent, against the good business practice of minimizing the deposit amount.
The amount of the EMD is usually applied to reduce the purchase price of the property or to cover closing costs, as you dictate. For example, if you are purchasing a $300,000 property and you give an EMD of $3000, then the remaining balance owned at closing is $297,000 (plus closing costs). Alternatively, you may direct that the EMD be applied toward the closing costs.
Once a valid contract for purchase is created, an independent third-party usually holds the EMD until the purchase is either completed or cancelled. At this point, the money belongs jointly to both the seller and the buyer.
In cases where you make an offer that is accepted but later decide to cancel the offer, the terms specified in the contract (or state law) will dictate if, and under what circumstances, the EMD is returned to you. Be aware that you could loose your deposit if you do not not comply with the terms of your contract. Your Real Estate Agent can provide you information about how EMDs are dealt with if a contract is cancelled.
Since state law varies by region and practices can differ even within the same state, be sure to consult your Real Estate agent about the rules that apply to EMDs in your region of the country. You should also be aware that the EMD is not related to any down payment that you make toward your home loan.
La Mirada Real Estate
Finding Your Real Estate Agent
Mark G. Estates asked:
Whenever you buy or sell real estate, you may be like millions of other people out there, in thinking that you don’t need a real estate agent. Most people who buy or sell homes, generally think that a real estate agent is a waste of money. Those who choose to buy a new home, think that real estate agents only add to the cost of purchasing the home.
What most people aren’t aware of, is the fact that real estate agents are normally paid by the seller, not by the buyer. As a buyer, you’ll get to work with a professional real estate agent without really having to pay for it yourself. The policies can vary greatly from state to state and company to company, which is why you should always check any paperwork or contracts that are provided to you to ensure this is the case. When you are interviewing agents, make certain to ask about any type of fees as well.
A lot of real estate agents out there may work with both buyers and sellers, although most specialize in working with either the buyer or the seller. If you are buying a home, make sure that the agent you choose has prior experience of working with buyers and transactions that involve no money down. This way, you can count on your agent to be there when you need him the most – especially if you don’t have a down payment.
If you are interviewing a real estate agent and he or she isn’t familiar with down payment assistance programs, you shouldn’t hire their services. Agents who aren’t familiar with these types of programs generally aren’t on the level, or they may lack the experience necessary to help you purchase the home of your dreams.
You can also make a list of real estate agents that you can interview based on referrals from friends, lenders, and even family. Lender referrals are normally a great choice as most lenders have worked with their recommendations in the past and both are already familiar with each other. Choosing a lenders referral can also prevent you from encountering any obstacles or surprises.
When you interview a real estate agent, make sure that you have the agent explain his fees. This way, you’ll know exactly how much he will be getting from the purchase. You should also find out how much experience he has in the field, and how long he has been working with real estate. You can also ask about sample contracts as well. If you are buying a home, you should make sure that the agent works with buyers. If you happen to be selling your home, then you’ll want to make sure that the agent works with sellers. Agents that are dedicated to one or the other are the best to choose, as they will have more experience than agents who work with both buyers and sellers.
Find a real estate agent is an easy task – providing you know what to look for. If you take things one step at a time and carefully make a decision, chances are that you’ll end up with an agent who has the experience you want. You should always be careful when you choose, and never rush the process. Real estate agents are easy to find, although finding one who fits your needs and has your budget in mind is a little tougher to locate. When you make that final decision, you should always choose an agent who has your best interest in mind – and isn’t just after the money.
La Mirada Real Estate
Whenever you buy or sell real estate, you may be like millions of other people out there, in thinking that you don’t need a real estate agent. Most people who buy or sell homes, generally think that a real estate agent is a waste of money. Those who choose to buy a new home, think that real estate agents only add to the cost of purchasing the home.
What most people aren’t aware of, is the fact that real estate agents are normally paid by the seller, not by the buyer. As a buyer, you’ll get to work with a professional real estate agent without really having to pay for it yourself. The policies can vary greatly from state to state and company to company, which is why you should always check any paperwork or contracts that are provided to you to ensure this is the case. When you are interviewing agents, make certain to ask about any type of fees as well.
A lot of real estate agents out there may work with both buyers and sellers, although most specialize in working with either the buyer or the seller. If you are buying a home, make sure that the agent you choose has prior experience of working with buyers and transactions that involve no money down. This way, you can count on your agent to be there when you need him the most – especially if you don’t have a down payment.
If you are interviewing a real estate agent and he or she isn’t familiar with down payment assistance programs, you shouldn’t hire their services. Agents who aren’t familiar with these types of programs generally aren’t on the level, or they may lack the experience necessary to help you purchase the home of your dreams.
You can also make a list of real estate agents that you can interview based on referrals from friends, lenders, and even family. Lender referrals are normally a great choice as most lenders have worked with their recommendations in the past and both are already familiar with each other. Choosing a lenders referral can also prevent you from encountering any obstacles or surprises.
When you interview a real estate agent, make sure that you have the agent explain his fees. This way, you’ll know exactly how much he will be getting from the purchase. You should also find out how much experience he has in the field, and how long he has been working with real estate. You can also ask about sample contracts as well. If you are buying a home, you should make sure that the agent works with buyers. If you happen to be selling your home, then you’ll want to make sure that the agent works with sellers. Agents that are dedicated to one or the other are the best to choose, as they will have more experience than agents who work with both buyers and sellers.
Find a real estate agent is an easy task – providing you know what to look for. If you take things one step at a time and carefully make a decision, chances are that you’ll end up with an agent who has the experience you want. You should always be careful when you choose, and never rush the process. Real estate agents are easy to find, although finding one who fits your needs and has your budget in mind is a little tougher to locate. When you make that final decision, you should always choose an agent who has your best interest in mind – and isn’t just after the money.
La Mirada Real Estate
Role Of Real Estate Agent In Vacation And Second Home Markets
Real Estate Advisor asked:
Second home sales have been increasing over the last few years with more people becoming second home owners. In 2005 alone, 40 percent of the homes sold were second homes. Demographics, all time low mortgage rates, and healthy rise in home prices have contributed to this development in the second home market. Besides these, a major factor that has helped augment the buying and selling of second homes is the real estate professional.
The National Association of Realtors conducted research on the profile of second-home owners in 2006. According to the NAR report entitled ‘2006 Profile of Second-Home Owners’, a majority of second home sales transactions are conducted using the services of real estate agents.
The statistics are remarkable; 64 % of vacation home buyers purchased their home using the services of a real estate agent by the end of 2005 – a marked increase from less than 50 % of vacation-home buyers in 2003. Also, 65 % of investment-home buyers purchased their home with the help of a real estate agent – an increase from 53 % of pre-2003. In comparison, only 14 % of vacation-home buyers and 7 % of investment-home buyers purchased directly from builders from 2003 to 2005.
The growing role of the real estate professional is evident from the following figures:
1. Of vacation home sales made, 71 % of them were second homes and 74 % of the sales were made using the services of a real estate agent.
2. Of the investment properties sold, 85 % of them were previously owned and 62 % of the sales were made using the services of a real estate agent.
The use of real estate agents in second home sales transactions varied according to the home’ location.
1. Buyers used a real estate agent more frequently while purchasing a vacation home located in a suburb/subdivision (56 %) or a rural area (57 %) than for homes in other locations.
2. About 66 % of buyers who purchased an investment property in an urban/central city area or in a suburb/subdivision, used the services of a real estate agent more frequently than those who purchased a home in other locations.
Real estate professionals continue to be the first source of information to second-home buyers (38 % of vacation-home buyers and 34 % of investment-home buyers). The real estate professional also plays a major role when second-home owners plan to buy additional properties. If you are thinking of buying a second home or vacation home, seek out the services of a real estate agent to guide you through your next home purchase.
1. The percentage of second home owners who are more likely to use a real estate agent in their next home purchase is quite high. Among vacation-home owners it is 79 % and investment-home owners 73 %.
2. Among second home owners, 65 % of vacation-home owners and 64% of investment-property owners are more likely to use a real estate agent in their next home sales.
Given these statistics, it is no wonder that the real estate agent plays a pivotal role in helping people buy and sell second homes. So whether you are a second-home buyer or seller, enlist the services of an agent for a smooth, hassle free real estate transaction.
La Mirada Real Estate
Second home sales have been increasing over the last few years with more people becoming second home owners. In 2005 alone, 40 percent of the homes sold were second homes. Demographics, all time low mortgage rates, and healthy rise in home prices have contributed to this development in the second home market. Besides these, a major factor that has helped augment the buying and selling of second homes is the real estate professional.
The National Association of Realtors conducted research on the profile of second-home owners in 2006. According to the NAR report entitled ‘2006 Profile of Second-Home Owners’, a majority of second home sales transactions are conducted using the services of real estate agents.
The statistics are remarkable; 64 % of vacation home buyers purchased their home using the services of a real estate agent by the end of 2005 – a marked increase from less than 50 % of vacation-home buyers in 2003. Also, 65 % of investment-home buyers purchased their home with the help of a real estate agent – an increase from 53 % of pre-2003. In comparison, only 14 % of vacation-home buyers and 7 % of investment-home buyers purchased directly from builders from 2003 to 2005.
The growing role of the real estate professional is evident from the following figures:
1. Of vacation home sales made, 71 % of them were second homes and 74 % of the sales were made using the services of a real estate agent.
2. Of the investment properties sold, 85 % of them were previously owned and 62 % of the sales were made using the services of a real estate agent.
The use of real estate agents in second home sales transactions varied according to the home’ location.
1. Buyers used a real estate agent more frequently while purchasing a vacation home located in a suburb/subdivision (56 %) or a rural area (57 %) than for homes in other locations.
2. About 66 % of buyers who purchased an investment property in an urban/central city area or in a suburb/subdivision, used the services of a real estate agent more frequently than those who purchased a home in other locations.
Real estate professionals continue to be the first source of information to second-home buyers (38 % of vacation-home buyers and 34 % of investment-home buyers). The real estate professional also plays a major role when second-home owners plan to buy additional properties. If you are thinking of buying a second home or vacation home, seek out the services of a real estate agent to guide you through your next home purchase.
1. The percentage of second home owners who are more likely to use a real estate agent in their next home purchase is quite high. Among vacation-home owners it is 79 % and investment-home owners 73 %.
2. Among second home owners, 65 % of vacation-home owners and 64% of investment-property owners are more likely to use a real estate agent in their next home sales.
Given these statistics, it is no wonder that the real estate agent plays a pivotal role in helping people buy and sell second homes. So whether you are a second-home buyer or seller, enlist the services of an agent for a smooth, hassle free real estate transaction.
La Mirada Real Estate
Real Estate Photography- Grow Business Earnings
real estate asked:
The photography which is done on Real Estate Development Company is known as real estate photography. The concept is very much popular in European and western countries/ companies. Because according to the real estate photography the market has to be established! Real estate photography is done in different ways such as in close-ups. The real which is to be marketed has to be identified first. The product is then suited by professional photographer from different angles from which the product is most likely to be a sellable hotcake. Since the real estate is govern by the products which are only shown in hypothetical manner, the real estate has to be marketed accordingly. Since, the real estate is depends upon the projected outcomes, is covered by the photography part. So, a photographer must be analyzer in nature!
The photographer must know what the product will be after its completion of project. So, the photograph and actual product should match. Real estate photography makes a difference that good photos can make in the process of house for sale.
Importance of real estate photography
Digital presentation of real estate photographs is the key to good seller in the property market. In the present property marketplace, real estate photography became the essential tool of property firms! Digital photos are becoming popular and can be readily available in the market. Digital photos make real estate photography more natural and practical. If you want to search real estate photography for your property business, then you can find many online real estate photography professional websites online. By just surfing the internet you can gather some real estate photography tips and hints. For a professional real estate agent, it is must to take well-composed and exposed real estate photographs. By trying true methods of real estate photography you can produce real estate photos without the need of buying expensive tools.
Good online companies offer stunning real estate photography for both interactive and print use as well as three hundred sixty degree Panoramic virtual tour images, video production, multimedia presentations and image management. It is an important for you those great photographic images for marketing your position. Blur photos of real estates are never acceptable. To take better images of your real estates you should choose real estate photography. Over the past few years there are dramatic changes happened with introduction of digital camera has brought to the Real Estate photography industry. With such latest technology, a real estate photography transfer images to a web page on the internet, and flyers printed all within minutes. Nowadays, listings are quickly available to other real estate firms and purchasers worldwide who have access to a computer.
La Mirada Real Estate
The photography which is done on Real Estate Development Company is known as real estate photography. The concept is very much popular in European and western countries/ companies. Because according to the real estate photography the market has to be established! Real estate photography is done in different ways such as in close-ups. The real which is to be marketed has to be identified first. The product is then suited by professional photographer from different angles from which the product is most likely to be a sellable hotcake. Since the real estate is govern by the products which are only shown in hypothetical manner, the real estate has to be marketed accordingly. Since, the real estate is depends upon the projected outcomes, is covered by the photography part. So, a photographer must be analyzer in nature!
The photographer must know what the product will be after its completion of project. So, the photograph and actual product should match. Real estate photography makes a difference that good photos can make in the process of house for sale.
Importance of real estate photography
Digital presentation of real estate photographs is the key to good seller in the property market. In the present property marketplace, real estate photography became the essential tool of property firms! Digital photos are becoming popular and can be readily available in the market. Digital photos make real estate photography more natural and practical. If you want to search real estate photography for your property business, then you can find many online real estate photography professional websites online. By just surfing the internet you can gather some real estate photography tips and hints. For a professional real estate agent, it is must to take well-composed and exposed real estate photographs. By trying true methods of real estate photography you can produce real estate photos without the need of buying expensive tools.
Good online companies offer stunning real estate photography for both interactive and print use as well as three hundred sixty degree Panoramic virtual tour images, video production, multimedia presentations and image management. It is an important for you those great photographic images for marketing your position. Blur photos of real estates are never acceptable. To take better images of your real estates you should choose real estate photography. Over the past few years there are dramatic changes happened with introduction of digital camera has brought to the Real Estate photography industry. With such latest technology, a real estate photography transfer images to a web page on the internet, and flyers printed all within minutes. Nowadays, listings are quickly available to other real estate firms and purchasers worldwide who have access to a computer.
La Mirada Real Estate
Prime Time to Purchase Real Estate in Phoenix Arizona
Maureen Karpinski asked:
Prime Time to Purchase Real Estate in Phoenix Arizona
Although foreclosure isn’t desired by anyone, the state of the economy has recently made it much easier for people all over the country to purchase real estate at enormously discounted prices, including Phoenix Arizona. There are many bargains now available, so contact your Phoenix realtor now to learn what is available if you are looking to purchase a home.
Prices for Phoenix real estate are lower than many have seen in over a decade. This makes it the perfect time for home buyers to get a house at deep discounts. Foreclosures have made the properties available plentiful, and they are priced to sell.
Homes that are almost new as well as older homes in historic neighborhoods can be bought at a deal. While it is the perfect opportunity to purchase a home in the Phoenix Arizona area, there are still a few pitfalls. These include repair costs on older homes and bidding wars.. However, if you plan on purchasing a home to stay in, the time has never been better.
If you are an investor or first time buyer, now is the perfect time to contact a Phoenix real estate agent to learn what is available to you. Most of the deals that are available are properties that are on the brink of going in to foreclosure or have been taken back by lenders.
There are some details you will want to consider when purchasing real estate. If your intention is to purchase for resale, check to see if there are other foreclosures that may threaten your desired resale price, or if there are numerous empty homes that may become foreclosures. Your Phoenix realtor can help you determine what properties are the most desirous if your intent is to resell.
For those whose interest lies in fixing up older or damaged homes, there is a huge market available. In fact, homes that are priced under $100,000 and have the most physical damage are where you will find the real deals. Homes that have extensive damage offer better discounts to buyers.
The economy isn’t good for anyone, but it can be the perfect time to buy if you are in the market for a family home or invest in real estate for resale purposes. The time has never been better to get the most for your money where real estate is concerned. If you are interested in learning more about the housing market, contact your Phoenix realtor.
La Mirada Real Estate
Prime Time to Purchase Real Estate in Phoenix Arizona
Although foreclosure isn’t desired by anyone, the state of the economy has recently made it much easier for people all over the country to purchase real estate at enormously discounted prices, including Phoenix Arizona. There are many bargains now available, so contact your Phoenix realtor now to learn what is available if you are looking to purchase a home.
Prices for Phoenix real estate are lower than many have seen in over a decade. This makes it the perfect time for home buyers to get a house at deep discounts. Foreclosures have made the properties available plentiful, and they are priced to sell.
Homes that are almost new as well as older homes in historic neighborhoods can be bought at a deal. While it is the perfect opportunity to purchase a home in the Phoenix Arizona area, there are still a few pitfalls. These include repair costs on older homes and bidding wars.. However, if you plan on purchasing a home to stay in, the time has never been better.
If you are an investor or first time buyer, now is the perfect time to contact a Phoenix real estate agent to learn what is available to you. Most of the deals that are available are properties that are on the brink of going in to foreclosure or have been taken back by lenders.
There are some details you will want to consider when purchasing real estate. If your intention is to purchase for resale, check to see if there are other foreclosures that may threaten your desired resale price, or if there are numerous empty homes that may become foreclosures. Your Phoenix realtor can help you determine what properties are the most desirous if your intent is to resell.
For those whose interest lies in fixing up older or damaged homes, there is a huge market available. In fact, homes that are priced under $100,000 and have the most physical damage are where you will find the real deals. Homes that have extensive damage offer better discounts to buyers.
The economy isn’t good for anyone, but it can be the perfect time to buy if you are in the market for a family home or invest in real estate for resale purposes. The time has never been better to get the most for your money where real estate is concerned. If you are interested in learning more about the housing market, contact your Phoenix realtor.
La Mirada Real Estate
7 Reasons to Use a Real Estate Agent
Escapeso Austin Real Estate asked:
Some people choose to use a real estate agent and some people choose to go it alone. One thing I have noticed over the years is that a number of seasoned investors looking in a new city will seek out a good agent while novice investors will frequently go it alone. I have even had a number of successful real estate agents seek out my help when they are moving to our city. Why do some of these seasoned investors choose to work with an agent? Below is a list of 7 benefits of using an agent.
1. Understand potential restrictions of the property. I recently heard a story from a friend at the city development office in Austin Texas. A couple had saved up for their retirement. They wanted to retire and live out in the hill country. They went to the foreclosure auctions. At the auction they purchased a lot for 500,000. It had great views and they were going to build their dream house on it. They had researched the lot before the auction and found it was zoned SFR which means a single family residence can be built on it. After purchasing the lot they started plans to build their retirement house. At this time they discovered the lot was in the 25 year floodplain. My friend at the city development office explained that the lot could not be built on and was basically worthless.
2. Know about new developments that might affect a properties value. A good realtor will know of proposed new developments that might affect different properties in which a buyer is interested. Whether these developments are positive or negative can be valuable information when weighing different housing options.
3. Find potential problems with a property. It is always a good idea to have a home inspector look at a potential house. However, a Realtor is a good first line of defense to see if a house has inherent problems. A Realtor that can know about common problems, such as foundation or electrical, that affect a particular neighborhood.
4. Understand contracts specifics. Whenever you buy or sell a house you are entering into a large personal transaction. It helps to have someone on your side that deals with these types of transactions on a daily basis. A Realtor can help you understand contracts and can explain what is typical for your area. The most common pitfall into which I see unrepresented buyers fall is to become involved in an atypical contract that is not to their benefit. For instance a seller will sign an offer that has an option period that is 4 times longer than what is typical. A buyer might put in offers on multiple properties with long option periods. The buyer will wait and see if the market appreciates. If the market has appreciated the buyer buys the house at now and undervalued price. If the market has gone down the buyer walks away.
5. Misperception of a benefit of going it alone. Buyers frequently think that by not using a buyers agent they will get a better deal from the seller. In most situation the listing agent asks for 6 percent from the seller. If a buyer comes with an agent the listing agent splits the 6 percent with the buyers agent. If an unrepresented buyer comes the listing agent keeps the whole 6 percent. On the selling side, For Sale By Owners (FSBO) often think they are saving alot of money by avoiding a listing agent. Nationally, FSBO homes sell for 14 percent less than agent listed homes in the same neighborhoods. In addition alot of FSBO’s still end up having a buyers agents involved. There is also money spent on advertising. Since an agent has experience marketing homes the agent often can spend money more effectively on advertising. Agents often know which advertising sources produce the most potential buyers.
6. Save time when looking for listings. Looking for listings without an agent can take up large chunks of time. When looking with an agent you can see several homes in a few hours. When going it alone you have to call the listing agent for each house and wait at the house for the agent to arrive and open up the house. In addition agents often know houses which are not listed or may have already identified potential problems with a particular house of interest.
7. Insure Security. When a home is listed with a broker, agents coming to the house have to usually log in. This allows the listing agent to keep a record of every party coming into the house. Since their business is on the line, agents are more likely to protect the house from damage or theft. For a variety of reasons, it is generally not a good idea to have random people you do not know come into your house. Often sellers simply have a phone number, but that phone could be their house, a friend’s house, a pay phone, or even a stolen phone.
Searching for a home can be stressful and difficult but it can also be fun. Whether you choose to look for a home on your own or with a Realtor its a good idea to be a extremely careful when you seek out your dream home.
La Mirada Real Estate
Some people choose to use a real estate agent and some people choose to go it alone. One thing I have noticed over the years is that a number of seasoned investors looking in a new city will seek out a good agent while novice investors will frequently go it alone. I have even had a number of successful real estate agents seek out my help when they are moving to our city. Why do some of these seasoned investors choose to work with an agent? Below is a list of 7 benefits of using an agent.
1. Understand potential restrictions of the property. I recently heard a story from a friend at the city development office in Austin Texas. A couple had saved up for their retirement. They wanted to retire and live out in the hill country. They went to the foreclosure auctions. At the auction they purchased a lot for 500,000. It had great views and they were going to build their dream house on it. They had researched the lot before the auction and found it was zoned SFR which means a single family residence can be built on it. After purchasing the lot they started plans to build their retirement house. At this time they discovered the lot was in the 25 year floodplain. My friend at the city development office explained that the lot could not be built on and was basically worthless.
2. Know about new developments that might affect a properties value. A good realtor will know of proposed new developments that might affect different properties in which a buyer is interested. Whether these developments are positive or negative can be valuable information when weighing different housing options.
3. Find potential problems with a property. It is always a good idea to have a home inspector look at a potential house. However, a Realtor is a good first line of defense to see if a house has inherent problems. A Realtor that can know about common problems, such as foundation or electrical, that affect a particular neighborhood.
4. Understand contracts specifics. Whenever you buy or sell a house you are entering into a large personal transaction. It helps to have someone on your side that deals with these types of transactions on a daily basis. A Realtor can help you understand contracts and can explain what is typical for your area. The most common pitfall into which I see unrepresented buyers fall is to become involved in an atypical contract that is not to their benefit. For instance a seller will sign an offer that has an option period that is 4 times longer than what is typical. A buyer might put in offers on multiple properties with long option periods. The buyer will wait and see if the market appreciates. If the market has appreciated the buyer buys the house at now and undervalued price. If the market has gone down the buyer walks away.
5. Misperception of a benefit of going it alone. Buyers frequently think that by not using a buyers agent they will get a better deal from the seller. In most situation the listing agent asks for 6 percent from the seller. If a buyer comes with an agent the listing agent splits the 6 percent with the buyers agent. If an unrepresented buyer comes the listing agent keeps the whole 6 percent. On the selling side, For Sale By Owners (FSBO) often think they are saving alot of money by avoiding a listing agent. Nationally, FSBO homes sell for 14 percent less than agent listed homes in the same neighborhoods. In addition alot of FSBO’s still end up having a buyers agents involved. There is also money spent on advertising. Since an agent has experience marketing homes the agent often can spend money more effectively on advertising. Agents often know which advertising sources produce the most potential buyers.
6. Save time when looking for listings. Looking for listings without an agent can take up large chunks of time. When looking with an agent you can see several homes in a few hours. When going it alone you have to call the listing agent for each house and wait at the house for the agent to arrive and open up the house. In addition agents often know houses which are not listed or may have already identified potential problems with a particular house of interest.
7. Insure Security. When a home is listed with a broker, agents coming to the house have to usually log in. This allows the listing agent to keep a record of every party coming into the house. Since their business is on the line, agents are more likely to protect the house from damage or theft. For a variety of reasons, it is generally not a good idea to have random people you do not know come into your house. Often sellers simply have a phone number, but that phone could be their house, a friend’s house, a pay phone, or even a stolen phone.
Searching for a home can be stressful and difficult but it can also be fun. Whether you choose to look for a home on your own or with a Realtor its a good idea to be a extremely careful when you seek out your dream home.
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Are you looking to buy some fabulous La Mirada real estate? If you are, you should make sure to take the right precautions to hire the right La Mirada real estate agent. Hiring a good agent is not only imporant for writing contracts and making offers, but it is important to have someone that you can trust, and find you the right house for you.
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Buying a house is the most important financial decision that you are your family is going to make, this is why trust is such a factor in choosing a good agent for your La Mirada real estate. Its hard enough to find a house to buy, but you need to make sure that your first decision is choosing a good agent. So what things should you look for in a good agent?
Reputation is the first place to start.
So real estate agents have the reputation of being sharks, or hard to work with. These types of agents you want to stay clear from. You want to make sure you have someone who is really familiar with the area, and knows the whole buying process like the back of their hand. Having good communication and people skills is a must for a real estate agent, they need to know how to handle people and take care of them. Make sure your agent has a reputation for being honest. The other things that you need can be learned, but finding one that is honest can be a difficult thing.
Communication skills are probably the most important item. You want to be informed of every step along the way, and make sure they do not assume that you know everything about real estate. The real estate process can be like a roller coaster, with so many ups and downs, you never know what direction the deal is going. Having someone on your side that does the right things, and can easily get a hold of is important. If you are spending more time speaking to their assistant than you are talking to them, you have some problems with your agent.
How to Select a Real Estate Agent
Word of mouth is usually the best and most reliable source of information regarding any particular real estate agent. This type of information is reliable in that it has not been “spun” by the agent and the source of the information has no particular motivation one way or the other, except to relate his or her experiences.
Be sure to interview more than one agent. Prior to conducting an agent interview, make a list of items that are important to you. These items might include proximity to freeways or commuter rail lines, style of home, age of home, proximity to schools, local tax rates, or any other number of items which may or may not be “deal breakers” in your mind. Additionally, you may be interested to find out whether or not the real estate agent has support staff which will assist in the handling of various aspects of transactions. Additionally, making a list of these priorities will assist your agent in finding the perfect home for your family.
Ask the real estate agent you are considering for referrals to other real estate agents for you to interview. An agent that is secure in his or her quality of service and reputation will have no hesitation to provide you with the names of competing agents for you to consider. An agent that provides this information to you is likely an agent with whom you would want to do business.
Make sure that when you decide to embark on your journey for the perfect La Mirada real estate, you need to make sure have taken all of these factors into consideration and have chosen the right person to get you into the home of your dreams.