Category: Real Estate

Hot New-Home Trends to Watch | Realtor Magazine

There were plenty of new ideas, features, and designs of interest to the real estate community at the 2017 International Builders’ Show and the Kitchen & Bath Industry Show, both held in Orlando, Fla. last week. We were there to gather the top trends and buzzwords you need to know about now.

Modernity in Moderation

It turns out designers, home builders, and consumers have different ideas of the meaning and salability of the term “modern,” and the industry is working to bridge that gap. Seth Hart of DTJ Design in Boulder, Colo. explained how “moderated modern,”—where asymmetrical windows and color and material combinations that provide high contrast—can be used on more traditional homes to provide an updated feel without breaking the bank or turning off buyers.

“It’s not about doing wild roof forms,” Hart told attendees. “It’s all about how you create a modern design in something that still has a broad market appeal and is done affordably.”

Eric Brown, a builder representative with Artisan Homes Realty, LLC in Phoenix uses the term “comfortable contemporary” to help identify the style. “It’s going to attract baby boomers,” he predicted, noting this style offers “something that reminds them of their old home, but it’s updated.”

Another twist on this trend comes in the form of the “modern farmhouse,” which was another popular buzzword at the show. Many of the winners of the National Association of Home Builders’ 2016 Best in American Living Awards featured farmhouse sinks, reclaimed wooden beams, and barn doors layered into modern designs. Even the farmhouse elements themselves are being updated, as is evident in cleaner, more minimalist designs made of contemporary materials.

The Secret Hideaway

Don’t we all want to turn a cluttered space into a fun design novelty? Another trending term at the show this year was “the messy kitchen,” which is a hidden space away from the gleaming center island where homeowners can prep food and stow Mr. Coffee far from guests.

Wayne Visbeen, president of Visbeen Architects, told attendees he also uses this technique to hide away the “home management space.”

“I put hidden rooms in offices a lot,” he said. “I think it’s a great place to hide the junk, and people think its sexy.” He notes that hidden space doesn’t have to be huge to work well, suggesting a four-by-eight foot space would be sufficient. Also, with all the easy-to-install sliding barn and pocket doors in the consumer market now, this is a project some homeowners can undertake themselves.

Fewer Bathroom Barriers

One trend that was heavily featured in Orlando last week was the idea of an open shower, or “wet room.” Some even contained both a shower and bath in one, which designers reported saves space in master baths where homeowners don’t want to skimp on a stall shower to fit in a pretty tub.   

This is a good option to consider for anyone looking to add the element of zero-barrier entry to bathing, which is an important consideration for those with limited mobility. However, Mary Jo Peterson, a kitchen, bath, and universal design consultant in Brookfield, Conn., noted there are drawbacks.

“If I really want a hot, steamy shower, it’s hard to do in these open spaces,” she said. She also noted that it’s difficult to calculate ahead of time if the water will escape the intended area and make the whole bathroom into a “wet room.” She cautioned builders to avoid the temptation to put rain-style showers up too high, to minimize the spray’s radius.

Auto-Smart Homes

We’ve all heard the talk about how smart home devices are going to change our lives forever, but Dave Pedigo doesn’t think we’re quite there yet. Pedigo, vice president of emerging technologies at the Custom Electronic Design and Installation Association, told attendees that until we can move “away from using a mobile phone as remote control,” we won’t really have smart homes.

He said natural user interfaces, such as the voice commands consumers can use to control Amazon’s Alexa and other smart home devices, are only the first step toward creating a truly smart home that can anticipate residents’ needs ahead of time. For example, there are already sensors out there that “see” when a sleeper has gotten up at night and can automatically illuminate night lights to lead them safely to the bathroom.    

“Ultimately, we are moving toward not having to deal with technology,” Pedigo said. “You shouldn’t have to tell the lights to turn off or tell the shades to go up.”

Investment properties: What you need to know before you buy | Nooga.com

The idea of investment properties has been big in recent years. The Great Recession of 2008 in many ways created a pivotal moment in time for investors, or would-be investors, to take advantage of an abundance of lower-priced properties and highly motivated sellers. TV shows such as “Flip This House” and “Flip or Flop” have made the process look easy and appealing.

There seem to be several types of investors in the real estate market. One type would be those who are road-worn, well-versed and who have earned their stripes from years of hard learning. These guys and gals are hardcore. They know their numbers, material costs and subcontractor costs like the backs of their hands, and it works for them … most of the time. Another type are the “Johnny-come-latelys” who have become “experts,” thanks to TV shows. Time will tell, and as my grandfather used to say, if “the cream will make it to the top.” (If you don’t know what that means, you are one of the Johnny-come-latelys.) This business of flipping houses has been around a long time, and it is not for the faint of heart or for those who “have a great idea.” 

This process is not cheap nor is it easy, despite what success stories and television shows would have you believe. That’s not to say purchasing investment properties isn’t for you; it’s just imperative to know there’s more to it than pulling together some money, buying a property, painting it, selling it for a king’s ransom and retiring on some sunny isle.

Here are some things to know before you sign on any dotted lines.

You need a formula.
The wisest investors I know have developed formulas that work for them. They’ve learned from their mistakes, and they now have a formula, a special sauce, a secret recipe. Their individual formulas will take into consideration the property price, labor and renovation costs, overhead, transaction costs, holding time, and—then and only then—profit. Profit will be, as the veterans will tell you, what’s left over. You see, the future selling price of the property is already determined; it will be defined by what the market will bear and no more. Know your numbers, know your numbers, know your numbers.

Be pessimistic.
In most aspects of life, you need to “think positive,” but that may not serve you well in this arena of investment properties. Without question, it will cost you more than you initially think, and it will certainly take you longer than you first thought and you’ll say, “Jeez, that’s not the way it looked on television.” So don’t be optimistic going in that everything will go according to plan. It never does in the construction world and it’s not going to be different with your project … Be a pessimist and be prepared; it will pay off.

Employ others.
Whether you have one investment property or 20, you need the advice of others: a great bookkeeper, a great attorney (oh, yes, you do need one … either now or later!), a great team of subcontractors (mediocre will ultimately cost you), a great real estate professional (you will be grateful for their involvement). Build yourself a great team of advisers and reap the benefits of their experience. If you plan on keeping the property in your portfolio, consider a property management company. Tenants don’t pay rent and sinks leak, and that may not be part of the investment property process you want to deal with, so get someone on your side who will. They will be worth their weight in gold bullion. You and your insurance agent need to get very close, as they will help protect all your assets as you build your kingdom. “The way of a fool is right in his own eyes, but a wise man is he who listens to counsel” … hmmmm. Build a great team by employing others.

Do your research.
It’s obvious that you need to know the neighborhood and marketplace when you’re considering an investment property, but what you need to know doesn’t stop there. You should have at least a basic understanding of construction costs: plumbing, electrical, drywall, insulation, painting, landscaping, roofing, lighting, all that and more. If all that is unfamiliar to you, you aren’t ready to jump into the deep end. Investigate pricing with your subcontractors; develop a mentoring relationship with someone who has been there and done that. If you can’t walk through a potential home and understand what it will cost to replace the knob-and-tube wiring or change out the galvanized plumbing, you still have some homework to do.

It takes more than money.
Being an investor can be rewarding, but it can be painfully expensive when it goes wrong. Cash flow is king, so have some financial margin built into your business plan. Be flexible. Don’t hesitate to pass on a project if you are not comfortable with all the numbers. Be patient. It’s a process: Plan on answering phone calls on the weekends and plan on deals falling apart. The learning curve is deep, but patience will serve you well. Jump in, hang on and forge ahead! 

3 tips to prepare to sell your home (548 words, US, UK, CAN) | News | thesnaponline.com

According to Realtor.com, spring is the busiest and best season to sell a home. While a good home can find a buyer any time of year, homeowners might find the buyers’ pool is strongest in spring and into summer. The reasons for that are many, ranging from parents wanting to move when their children are not in school to buyers wanting to move when the weather is most accommodating.

Because spring is such a popular time to sell a home, homeowners who want to put their homes on the market should use winter as an opportunity to prepare their homes for the prying eyes of prospective buyers. The following tips can help homeowners during the pre-selling preparation process.

1. Address the exterior of the home.

 

 

Winter can be harsh on a home’s exterior, so as winter winds down, homeowners who want to sell their homes should make an effort to address anything that might negatively affect their homes’ curb appeal. A study of homes in Greenville, S.C., from researchers at Clemson University found that the value of homes with landscapes that were upgraded from “good” to “excellent” increased by 6 to 7 percent. If it’s in the budget, hire professional landscapers to fix any problematic landscaping or address any issues that arose during the winter. Homeowners with green thumbs can tackle such projects on their own, but hiring professionals is akin to staging inside the home.

2. Conquer interior clutter.

Clutter has a way of accumulating over the winter, when people tend to spend more time indoors than they do throughout the rest of the year. Homeowners who want to put their homes on the market in spring won’t have the luxury of waiting until spring to do their “spring” cleaning, so start clearing any clutter out in winter, even resolving to make an effort to prevent its accumulation throughout winter. Just like buyers are impressed by curb appeal, they are turned off by clutter. The Appraisal Institute suggests homeowners clear clutter out of their homes before appraisers visit, and the same approach can be applied to open houses. Buyers, like appraisers, see cluttered homes as less valuable. In addition, a home full of clutter might give buyers the impression, true or not, that the home was not well maintained.

 

 

3. Eliminate odors.

A home’s inhabitants grow accustomed to odors that might be circulating throughout the house. Pet odor, for instance, might not be as strong to a home’s residents as it is to guests and prospective buyers. Because windows tend to stay closed throughout the winter, interior odors can be even stronger come late-winter than they are during the rest of the year. A thorough cleaning of the house, including vacuuming and removal of any pet hair that accumulated over the winter, can help to remove odor. In the weeks leading up to the open house, bathe pets more frequently, using a shampoo that promotes healthy skin so pet dander is not as prevalent. Open windows when the weather allows so more fresh air comes into the home.

Spring is a popular and potentially lucrative time to sell a home, and homeowners who spend winter preparing their homes for the market may reap even greater rewards.

4 questions you should always ask your mortgage lender – San Antonio Express-News

How much can I really afford?

Home buyers who seriously ask this question are showing they have a good attitude toward money. There is a big difference between the question of how much you can qualify to purchase and how much you can afford. There are mortgage program available to qualify you for a home mortgage payment of more than 35 percent of your net income. But experts recommend you purchase a home with a payment 25 percent or less of your take-home pay. In two-income families, this conservative approach allows a job loss without losing the ability to pay for the mortgage.

Carefully examine your spending habits, particularly if this is your first home. Even if you have been disciplined in saving for a down payment and paying rent on time, the new focus on your home can easily derail your enjoyment. Remember, as a homeowner, you will be responsible for costs beyond your monthly payment to the mortgage company.

What are the costs outside the mortgage payment?

As a homeowner, you are now responsible for maintenance and repair costs as well. If you have been renting in the past, these costs can be shocking. Make sure you have a reserve account set aside to properly take care of your home. Don’t go overboard with decorating and improving when you first move into the house. First, it is not a disciplined way to handle your finances. Second, it is better to dream of the future, with money in reserve, than to blow it all trying to get everything done immediately.

Can I save money if I buy a fixer-upper?

The short answer to the question is yes. But this strategy can become tragic very quickly too. One reason is fixing a home up is a relatively expensive endeavor. Even professional remodelers can underestimate the costs involved in repairing or updating a home.

If you do decide to buy a home needing work, select a home in the best possible neighborhood that appears to only need cosmetic updates. If everything is functioning properly when you move in, you might be able to live with ugly carpet or outdated kitchen appliances for a while. When you buy in the best neighborhood you can afford, you are more likely to see equity growth as your neighbor’s value affects your own home.

If you are considering a home needing fixing because you are short on money and the home needs immediate attention, the answer quickly flips to a resounding NO. Too many optimistic people have experienced disaster with a “money pit” swallowing up their savings and they are left with a totally unlivable and unmarketable property. It is a bad scenario.

Why should I buy instead of rent?

When you pay rent, your monthly check goes to a landlord and you are left with nothing more than a place to live for a short period of time. The landlord controls how you enjoy the property too. When values go up in the community, your rent gets bigger and all the additional profit belongs to someone else. When you own, you get both tangible and intangible enjoyment including the growth of your equity and sizable tax advantages.

You have to do these things in the right order when buying a home – The Orange County Register

When you’re buying a home, it is crucial to get the sequence right for the best outcome. Here are three groups of events and how you want to time the activities for the best results.

 

Inspections and appraisal: You definitely want to review the sellers’ disclosures and the termite report before you schedule your home inspection or appraisal.

 

This can be difficult if the sellers haven’t completed their disclosure package or done the termite inspection before they accept your offer, so urge your agent to get these to you as soon as possible.

You will want to know if there are any red flags – like a previous slab leak, roof leak, or fire damage that’s been repaired – before you pay for the home inspection. Knowing about these up front can help you check the insurability right away, and will give you some items to focus on when you do schedule the home inspection.

You want to complete the home inspection before you pay for the appraisal in case any more red flags pop up, and you can negotiate with the sellers on repairs that concern you or cancel the purchase if the sellers declines to remedy the issues to your satisfaction.

Buyer’s funds to close and loan funds: Your funds to close (down payment and closing costs that you owe less the amount of your initial deposit) have to arrive before the lender will send in its money.

These funds are best wired in the morning a day or two before you sign your loan documents. That way you can be sure you are not holding up the closing, because your lender will not fund your loan if your part has not been received.

There are plenty of other things that can hold up a closing, but getting your money in will ensure that you’ve done your part to make sure your loan will fund in a timely manner.

Appliances, furniture, and flooring: If you are getting a loan to buy your house, do not buy even a toaster oven before the purchase is recorded and closed, which happens after your funds get wired and the lender sends in the money from your loan.

You’ll have to wait for the new washer and dryer, the new dining room furniture, and your new hard wood floors until the deal is all done, so that nothing changes in your financial world. This would also extend to quitting your job, adopting a child, or committing a felony.

Pulling the trigger on any of these events before your purchase is complete can have devastating consequences. And some will have devastating consequences regardless of when you pull the trigger. Follow the right steps in the right order, insulate your finances from any changes, and keep your record clean.

Real Estate Tips 13 Jan 2017

 

It is harder for buyers to get their offers accepted in a seller’s market. Yajnesh Rai of Team Yaj – Keller Williams Realty shares a series of tips for buyers on Radio De Hotties’ Pam Pam Show. Here are tip number 3 & 4

 

3.     Connecting with the seller – Find out through MLS, seller’s agent, your agent, looking at pictures or the way home is decorated, about the sellers and what they may like or dislike. Write and personalized (handwritten is better), with one or two nice pictures of you and your family, doing things that may click with the sellers. Also writing about something to them based on your research. It is best to keep away from discussing finances, politics or religion in this letter. Several times we have our offer accepted which was not necessarily the top offer but the seller felt good about the buyers from the letter.

 

4.     Make a list of Must Haves and Nice to Haves – Must haves are things in a homes that you cannot live without and Nice to haves are… just that. Have a clarity of what is nice to have and what is must have and being in-sync between/among the buying party helps a lot during decision making. When there is seller’s market and it is becoming harder to get properties that you like at the right price, it becomes necessary to discount some of the nice to haves to get a property that will work for your family. And having a clarity upfront save a lot of time and effort and money along the way.

 

 

More tips to be shared on the Pam Pam show and on this blog.

If you or anyone else you know that is looking to buy their first home, an investment property or sell their home, please reach out to me via either contact method.

 

Thank You, Yajnesh Rai – “Yaj”

Team Yaj, Keller Williams Silicon Valley

Real Estate Consultant, Broker Associate, CNE

 

2110 S Bascom Ave, #101, Campbell, CA

408-547-7845 | www.YajneshRai.com

www.Facebook.com/YRConsultant

CalBRE# 01924991

 

Where Land Surpasses Property Values | Realtor Magazine

In some markets, the land is more valuable than the home that stands on it.

Case in point, in San Francisco’s Sunset District, a fire destroyed a home for sale leaving it inhabitable. Despite that, last February, the home sold quickly for just under $1 million. Seven months later, the home was transformed into a four-bedroom home and sold for $1.77 million.

In San Francisco, land is a premium, and buyers often pay more for the land than the home is actually worth.

“Over time, the physical structure usually depreciates in value, while land appreciates,” realtor.com® notes in a recent article. “That’s because the property is in limited supply. Developers can stack more homes onto lots by building high-rises, but they can’t produce more land. And that’s why the value of land naturally goes up when population growth creates more demand.”

Lincoln Institute of Land Policy data provides a snapshot of the 10 housing markets where land comprises more than half of a home’s total value. The majority of the cities are in California, where buildable land tends to be scarcer. For example, in San Francisco, the average home value was $1.35 million in 2016. But about $1.09 million of that was attributed to the cost of the land, or 81 percent of the total price, the study found. On the other hand, in St. Louis, Mo., land is only about 10 percent of a home’s total value. 

Here are the cities where land costs exceeds property values by the highest amounts:

1. San Francisco, Calif.: 81%
2. San Jose, Calif.: 77%
3. Santa Ana, Calif.: 76%
4. Oakland, Calif.: 71%
5. Los Angeles, Calif.: 71%
6. San Diego, Calif.: 66%
7. Boston, Mass.: 60%
8. Miami, Fla.: 54%
9. Seattle, Wash.: 53%
10. Portland, Ore.: 51%

Rising Home Values Can Boost Your Mortgage Refinance – NerdWallet

Rising mortgage rates are cutting the flow of mortgage refinances to a trickle. By now, many people who could have benefited from a lower rate have done so. However, if you’re thinking about refinancing but are hesitating because of interest rates, there’s something else to consider that can make a mortgage refinance worthwhile: rising property values.

Home prices are on the rise

Home prices were up 7.1% year-over-year in November, according to a national report just issued by real estate analytics firm CoreLogic.

“Home prices continue to march higher, with home prices in 27 states above their pre-crisis peak levels,” Anand Nallathambi, president and CEO of CoreLogic, said in a release. “Nationally, the CoreLogic Home Price Index remains 4% below its April 2006 peak but should surpass that peak by the end of 2017.”

You may finally be able to tap home equity

Even though mortgage rates are moving higher, appreciation in your home might let you make a mortgage move that you might not have been eligible for previously. Here’s how higher home values can affect your mortgage refinance opportunities:

A cash-out refinance. If you’ve weighed a lower mortgage rate against loan costs and decided a refinance seems to be a toss-up, this could be the tiebreaker: a cash-out refinance. Tapping some of your home’s value in a cash-out refi can let you make improvements to your home and property. That adds value to your home in the long term.

Refinance away mortgage insurance. As home prices have climbed, fewer American homeowners are underwater or face “negative equity” — owing more on a home than its market value. In the past five years, more than 10 million households have risen above negative equity. In December, Zillow research found that fewer than 5.3 million homeowners with a mortgage are underwater. That’s down from a 2012 peak of more than 15.7 million homeowners.

Rising home equity allows another refinance opportunity: removing mortgage insurance.

“If someone has an FHA loan, for example, they are paying between 0.85% and 1.35% for mortgage insurance,” says Joe Parsons, branch manager at Caliber Home Loans in Dublin, California. Having home equity of 20% or more will often allow a lender to drop the mortgage insurance requirement when refinancing from a Federal Housing Administration loan to a conventional loan, he says. Home equity is the market value of the home minus the amount owed.

Don’t forget about HELOCs

A home equity line of credit can provide the same access to your home’s equity as a home equity loan but with the added benefit of allowing draws against your credit line as needed. When you use a HELOC for the right reasons, this can be a wealth-building strategy.

There is one possible hitch: HELOCs usually have adjustable interest rates — something to consider in a rising-interest-rate environment.

Your monthly payment may increase regardless of your refinance rate

Refinancing is often an effort to reduce the interest rate, the loan term or the monthly payment. But despite your best efforts, in a market of rising home values, you may see your monthly payment increase. That can happen when you put property taxes and insurance premiums in escrow and prorate the annual costs into your monthly payment. With a higher home value, both may go up.

FHA Opens Door To Homeownership For More Borrowers

·        The FHA will reduce the annual mortgage insurance premium most FHA borrowers pay by a quarter of a percentage point starting January 27.

Low- to moderate-income homebuyers will get a boost in 2017, with the Federal Housing Administration (FHA) set to cut mortgage insurance premiums later this month.

The move will “will mean a whole lot more responsible borrowers are suddenly eligible to purchase a home through FHA,” said National Association of Realtors President William E. Brown in a statement.

Annual premiums going down

The FHA will reduce the annual mortgage insurance premium most FHA borrowers pay by a quarter of a percentage point starting January 27. Annual premiums will drop to 0.6 percent from 0.85 percent, according to NAR.

“Every time we cut the cost of mortgage insurance it means more borrowers meet the debt-to-income ratio required to purchase a home,” said Brown, explaining why the move should lead more aspiring homebuyers to pull the trigger.

 

The rate cut means new borrowers who take out mortgages insured by the FHA will save an average of $500 this year, according to HUD.

The action “comes at the right time for consumers who are facing higher credit costs as mortgage interest rates are increasing,” according to Julián Castro, the U.S. Housing and Urban Development (HUD) Secretary, which oversees the FHA.

Why this is good news

The FHA makes it possible for banks to lend to borrowers who might not qualify for conventional mortgages, serving as a wellspring of credit for those buyers.

FHA borrowers pay both an insurance premium to the FHA and higher interest rates in return for a mortgage that requires as little as a 3.5 percent down payment.

“FHA mortgage products exist to serve an important mission: providing homeownership opportunities to creditworthy borrowers who are overlooked by conventional lenders,” said NAR President William E. Brown in a statement.

“The high cost of mortgage insurance has unfortunately put those opportunities out of reach for many young, first-time- and lower-income borrowers. Now, we have a real opportunity to get back on track.”

“After four straight years of growth and with sufficient reserves on hand to meet future claims, it’s time for FHA to pass along some modest savings to working families,” Castro said in a statement.

“This is a fiscally responsible measure to price our mortgage insurance in a way that protects our insurance fund while preserving the dream of homeownership for credit-qualified borrowers.”

Can FHA afford to do it?

The health of the FHA’s Mutual Mortgage Insurance Fund (MKIF) has improved for four straight years, gaining $44 billion in value sine 2012, according to HUD. The fund pays FHA lenders when borrowers default on FHA-insured mortgages.

An independent analysis found that the fund’s capital ratio now stands at 2.32 percent of all insurance in force — the second consecutive year since 2008 that the FHA’s reserve ratio exceeded the mandatory 2o percent threshold, HUD said.

The FHA started insuring a much larger share of purchase mortgages to help fill a credit void after the mortgage meltdown.

Losses largely stemming from loans the FHA made from 2007 to 2009 forced the agency to take a bailout of $1.7 billion in 2013 to ensure it had enough reserves to cover anticipated losses on the loans it insured.

“We’ve carefully weighed the risks associated with lower premiums with our historic mission to provide safe and sustainable mortgage financing to responsible homebuyers,” said Ed Golding, principal deputy assistant secretary for HUD’s office of housing, in a statement.

 

5 reasons you should use a Realtor

You have just made your new year’s resolution and decided that it’s time to buy or sell. You pull onto the internet superhighway on your iPhone, smartphone, iPad, laptop or computer to check out all the new listings before you start touring all the open houses.

Sure, you have been watching HGTV and you’re thinking, “This real estate thing is easy.” You think you can do a really good job at finding a home or even selling your home yourself. You may be thinking any info you might need is all online, right? Quite the opposite, in fact.

Whether you’re a homebuyer or seller, we know that you think you may be able to do this on your own. It is advisable that you should leave this to the real estate professionals. This will more than likely be the biggest financial decision you ever make in your entire lifetime. You should always be represented by a professional Realtor if you want to get it right.

Here’s 5 reasons why you should utilize a Realtor:

 

1. Realtors have lots of professional experience, resources and other specialized services that can’t be matched by online websites/services.

The real estate language is a language all on its own. It’s full of abbreviations, acronyms, slang and jargon. Your Realtor is fluent in this language. Not to mention that buying or selling a home requires endless forms, reports, disclosures and other required and technical documents. Realtors have the knowledge to help you prepare and guide you through a killer deal – while avoiding all the pitfalls, delays or costly mistakes that can seriously damage you financially in the end.

2. Realtors have hyper-drive access beyond the internet.

The internet can be very ideal. You can find practically anything on the internet. With online real estate listing sites, you can find up-to-date home listings on your own, any time you want, right? Realtors have more access to even more properties. Sometimes properties are available but not “actively advertised” or simply upcoming listings that only a licensed Realtor would know about. A Realtor can help you find those hidden gems. A large portion of real estate sales occur even before hitting the MLS (multiple listing service) or going online. This is simply because customers are actively searching with agents who typically know exactly what that buyer wants before it hits the open market. Also, an experienced local Realtor is going to know the search area way better than you ever could. Have your eye on a particular neighborhood but it’s just out of your price range? Your Realtor is equipped to know the “in’s and out’s” of every neighborhood. Only a Realtor can direct you toward a home in your price range that you may have overlooked or didn’t find on some online website.

3. Never negotiate against yourself, experienced Realtors are well-versed in this skill set.

Any time you are listing or buying a home, you’re going to be confronted with negotiations. You do not want to be negotiating against yourself. In today’s housing climate the market is really heating up, the negotiation process is definitely going to require an extremely skilled negotiator. You should be expecting lots of competition, bidding wars, all-cash buyers who often write non-contingent offers. You will definitely want a professional with a strong skill set in negotiating on your side to represent your best interest. And it’s not always just about how much money you end up netting or spending in commission fees. A Realtor can draft a purchase agreement that outlines all the time for appraisals, inspections, contingencies, underwriting approval with or without conditions, and anything else that’s crucial to your particular needs.

4. Experienced Realtors are well connected in the community.

 

 

 

Not all Realtors will know everything, but an experienced Realtor will make it their mission to know just about everyone who can possibly achieve the goals required in the process of buying or selling a home, such as banks, lenders, mortgage brokers, escrow and title officers, appraisers, surveyors, real estate attorneys, home inspectors, contractors, home stagers, interior designers, marketing and advertising resources. Realtors have these connections and you should be taking advantage of them.

5. Realtors are your guidance counselor/data analyst/therapist/skilled negotiator and so much more.

Realtors are experienced and knowledgeable in a lot of different areas. A good Realtor invests thousands of dollars and time to advertise and market your home. They spend a lot of time researching properties and constantly driving around, checking out new and old listings for you. They also keep an eye out for properties that may fail and come back on the market. These are properties that you most likely would have overlooked if you had been representing yourself. When marketing a listing, they spend their own money on marketing and advertising and making a campaign that suits your home. They’re constantly researching comparable sales to make sure that they have the most current sales and trends in the marketplace.
If you are buying a home utilizing a Realtor for your search, representation actually costs you nothing. The seller pays the commission, which is negotiated between the listing firm and the seller at the time the listing is taken. If you’re not represented by your own agent, the listing agent gets the entire commission, so you might as well call on a professional to work for you since you gain all of this knowledgeable experience free of charge to you, the buyer. Not to mention, that the best of the very best are working for their clients at all hours of the day and night, seven days a week.

Just remember that this is the biggest financial decision in your lifetime, and guiding you through it is what experienced Realtors do best.