Posts by CSchulz:
Thorough Respectful Understanding Strategic Thoughtful (TRUST)
March 8th, 2011
Have you ever wondered if your Buyer’s Agent is really working towards getting you the best price or if they are more concerned about make a high commission? Or ever wondered if your Listing Agent is encouraging you to take a lesser offer just to get the sale? Have you ever considered not working with a Real Estate Agent because you think they drive up the purchase cost or charge too much to list your property? If you answered “yes” to any of these questions you are not alone. I could go on and on about how Real Estate Agents get paid and the commissions we make, but that is a post for another time. For now we will focus on the reasons to put your faith and trust in your Agent.
Why wouldn’t a Buyer’s Agent try to convince you to offer more money in order to “up” their commission? Because the main goal and objective of your Buyer’s Agent is to get you the best possible deal on the house you want to purchase. At the end of the negotiation process if you feel as though you paid too much for your new house then the result is not what your Agent is striving for. If you are not pleased with the outcome of your purchase it is unlikely you will recommend your agent to others. In addition, when the time eventually comes for you to sell the house you will be less likely to consider your Buyer’s Agent as your Listing Agent if you did not feel they were trustworthy. Ideally, when the time comes for you to move on, you would re-hire your Buyer’s Agent as your Listing Agent in order to utilize the first-hand knowledge they have of your property as a resource for marketing and selling.
Will your Listing Agent encourage you to take an offer that is less than you should when selling your house? Absolutely not. Your Listing Agent will be familiar with the current market and will use that familiarity to guide you towards an offer that is in line with the market and which you find appealing. This is not to say your Agent might not suggest the benefits of accepting an offer which may include a lower purchase price IF there are other aspects of the offer that would be highly beneficial to you. If you find you disagree with suggestions or recommendations made by your Agent it is important have an open discussion about your concerns. When you walk away from the closing table your agent does not want you to feel dissatisfied or disappointment regarding the sale of your house. Again, the best possible “end game” and the main object of your Real Estate Agent are for you to be pleased with the end result of your transaction.
What it all boils down to is in a commission based business it is essential for Real Estate Agents to put the needs of their clients ahead of all else. Agents work one deal at a time, but in order to continue to grow their business it is imperative the outcome of each purchase or sale be positive for their client. Without referrals and return customers an Agent’s business will not grow and thrive. So, while some people believe a Real Estate Agent is only concerned with how much money they can make on a particular deal, this could not be further from the truth. Your Agent will never pressure you into a transaction that will leave you unhappy. To do so would simply be bad business.
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It’s Time to Get Pre-Approved!
March 1st, 2011
Did you know that being pre-approved can strengthen your Offer to Purchase? Think about it. If you are selling your home and receive an offer with an accompanying pre-approval letter from a lender wouldn’t you have more confidence in the offer making it to closing? As a seller, wouldn’t you look more positively on an offer from a pre-approved buyer than one who is conceivably hoping *fingers crossed* they can get a mortgage to purchase your house? Of course you would.
What does this mean for buyers? Getting pre-approved for a mortgage should be one of your first steps in the home buying process. If you are not sure which lender to work with, talk to your Buyer’s Agent, friends, co-workers or relatives. Chances are someone can point you in the right direction.
Before you begin looking at houses it is essential to know how much you can afford. Occasionally buyers avoid meeting with a lender in the beginning because they worry about being told their budget has to be smaller than they would like. Of course it can be disappointing to learn you must to cut back on the amenities or scale down the size in order to buy. However, identifying what you can afford will prove invaluable.
Knowing how much you can spend before you begin your search will avoid time wasted touring houses you do not have the funds to purchase. Additionally, having a handle on how much mortgage you can afford will allow your Buyer’s Agent to launch a search which will target and hopefully pinpoint the right house for you. Once you locate the ideal property and are ready to submit an offer having a pre-approval letter from your lender will add strength and credibility to your offer.
Essentially, you will save time and possible heartache by talking with a lender early in the home buying process. Once you are pre-approved your Buyer’s Agent will be better equipped to locate a property and negotiate the purchase of your new home. And there will be many less bumps in the road to homeownership if you know what you can afford from the start. So, if you are considering buying a home, NOW is the perfect time to get pre-approved!
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Full Financial Disclosure is Crucial in Home Buying
February 22nd, 2011
Are you worried about being totally honest with your agent regarding how much you can spend on your new home? Well let me assure you it is absolutely vital to be completely truthful with your Buyer’s Agent about how much home you can afford. In order for your agent to successfully provide the exceptional real estate services you deserve you must be straightforward and candid about your financial situation.
Your agent is working for you to locate and negotiate the best possible contract for the purchase of your new home. While your agent is searching listings to locate the houses most likely to meet your needs they will narrow the search field based on the features each property has to offer. “Price” is just as important as “three bedrooms”, “attached garage”, “corner lot”, or any other search criteria your agent will use when searching the MLS (Multiple Listing Service).
By overstating the amount you can afford you run the risk of touring and falling in love with a house you are not capable of purchasing. If you understate the amount you can afford, to avoid paying a premium price for a property, you might miss out on the perfect home because your agent ruled it out based on price. Under no circumstances will an agent concede to a higher purchase price based on their knowledge of your financial standing.
Finances can be an uncomfortable topic to discuss and people are often fearful that full disclosure may perhaps result in a “bad deal”, but nothing could be further from the truth. Your Buyer’s Agent will keep your financial information confidential and will negotiate to the utmost of their ability. Knowing your financial situation will never weaken the negotiation strategy. Full disclosure is the only way to guarantee your Buyer’s Agent is armed with the pertinent information essential to locate and negotiate the purchase of your new home!
Determine Your Housing Needs Before You Begin Searching
August 31st, 2010
How can I determine my housing needs before I begin the search?
The answer to this question, like most, will differ from person to person, family to family. Buying a home is a personal and individualized process, but there are a few things that should generally be considered by all potential home buyers.
Once you have determined the amount of house you can afford, then you need to start figuring out what your needs are and how they fit into your financial parameters. Some things to consider would be: number of bedrooms, garage size, location and even floor plan.
In my opinion it is vital to consider not only your current lifestyle and family situation, but also keep in mind your plans and goals in upcoming years. For example, it would be wise to consider how long you plan to stay in the house before you are going to be ready to re-sell it. Additionally it is important to keep physical limitations in mind.
Where will the laundry be located in the house? Can you carry laundry to and from that location with easy on a regular basis? You own two cars, will you have enough room in a two car garage for your cars and all the other items that tend to accumulate in the garage? You currently live in a two bedroom apartment and there is plenty of room, will a two bedroom house still suffice if you grow your family in the next couple of years? These are just a few of the many scenarios you might want to consider when figuring out what your housing needs are.
Your personal understanding of your needs and short term goals, coupled with the knowledge and expertise of your Buyer’s Agent should simplify the process of determining the specifics of your housing needs.
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