Month: December 2020

Like any other profession, there are good and bad things about what are available.  Each of the things that happen in the profession is just part of the business.  If you want to know what you are getting into, you will want to make sure that you know all sides of the coin of the profession.  This will help you to be prepared for looking into property or buying into the occupation of real estate.  

The good part of real estate is that you will be helping others to find a home.  Anyone involved in real estate will say that the largest perk of being in the profession is that you are able to help people with their living situation.  Another good benefit of being a real estate agent is that the finances are usually stable and do not come in small doses.  For those that love their jobs in real estate, they will most likely base it on these two factors.

Despite the benefits of being a real estate agent, there are also some tough parts of being involved.  One of the major frustrations is that the properties that are available will be dependent on the type of market, the neighborhood and the sales of that area.  At times, there may be an overflow of properties available, while at others, everyone will be holding onto their property.  For those involved in finding or buying real estate, this can cause a challenge in finding what you want and when you want it.  

Of course, for anyone becoming involved in real estate, other frustrations may come from the terms and the details that are used in the process as well as the process itself.  It is not uncommon to find a home, have it inspected and then not have the ability to buy the home because of the condition of the home.  There also may also be financial problems with real estate during the process of finding a home for an individual.  All of these factor into spending a lot of time looking at homes without the benefit of buying.  

Whether you are buying or selling, it will be important to know what to expect from real estate.  By factoring in the different parts of property, you will have the ability to decide what is best for you and can stay ready for the potential problems that may occur while you are going through the process.  Knowing what to expect will help you to get past half of the battle of the real estate market.

Most homebuyers elect to have a home inspection done before they close the deal on their new home.  Some mortgage companies even require that a home inspection be done before lending the money for the home’s purchase.  Did you know that it’s a good idea to have one done before selling your home too?

Home inspections are not required by law to be done by the seller.  You’re already aware that an inspection will likely be done on the behalf of the buyer.  So you’re probably wondering why you would want to have one done when selling your home.

While it sounds redundant, having your own home inspection done can help ensure that the sale of your home goes smoothly.  The inspector will thoroughly check out your home and notify you of any problem areas.  The problems can be repaired before your house goes on the market, in many cases inexpensively.  And when the time comes that a potential buyer wants to have his own inspection done, you’re a step ahead of the game.

A bad inspection can be a deal breaker for potential buyers.  It can give the impression of dishonesty on the seller’s part, even if he was unaware that problems existed.  Some problems are difficult to detect without having an inspection done, but people often assume that if someone lives in a house they should know of any problems with it.  This sort of misunderstanding could lead the buyer to back out.

If the buyer does indeed back out, you will have to put your house back on the market and start over again.  Other potential buyers will wonder why the first deal fell through and may be concerned enough that they won’t want to take a risk on your home.  Having a home inspection done and following through on its findings can help you avoid all of these headaches.

If problems are discovered during your inspection, you may not necessarily have to fix them.  But you should notify your realtor, so that potential buyers can be notified.  This is even required by law in some states.  Failure to do so could result in a lawsuit by the buyers.  If it does, it could prove to be much more expensive than it would have been to fix the problem or reduce the price.

If you do find problems that you elect not to repair, reducing the price of the home by the amount that it would take to fix the problem is customary.  Being upfront about the problem areas and the price adjustment will work to your advantage.  A home inspection is of great importance to a homebuyer.  It should also be important to the seller.  Knowing any problems that exist can help you avoid buyer cancellations and lawsuits.

Choosing a real estate agent to help you navigate the treacherous waters of purchasing a home is one of the best moves you can make. You’ll want the best – but how do you know which you want with all of the real estate agents out there clamoring for your business.

The first thing you should do before choosing a real estate agent is to chat with recent clients (if possible). You can ask the potential agent to give you a list of what they’ve sold (and listed) within the past year and be sure to include contact information.

You’ll learn what the asking versus the sales price was for each sale which is valuable when assessing their negotiating skills. You should also find out how long the agent has been in the real estate business by simply asking the agent. Five years is considered a learning curve for agents, so you may want to consider someone who has been in the business longer.

Check out a potential agent’s current listings. You can do this online by accessing the agency’s website or other sites. Determine if the agent’s past listings are like or similar to the type and price range of the home you want to purchase.

Be sure your agent is licensed by the state they’re practicing in. You can check to see if the real estate agent is licensed by contacting your state’s regulatory body. That will also reveal if the agent has any complaints or if there are disciplinary actions against her.

A real estate agent should have the right credentials – just as lawyers. Notice the lettering after the agent’s name to get more information. For example, a Senior Real Estate Specialist (SRES) indicates they’ve had training to directly assist buyers and sellers who are 50 years and older.

A Certified Residential Specialist (CRS) means they’ve had additional classes in buying and selling residential properties. If an agent is an Accredited Buyer’s Representative (ABR), you’ll know they’ve had further education in representing a home buyer’s transactions.

Mainly, an agent who is listed as a Realtor (capital R) is a member of the National Association of Realtors, who has pledged support to the Realtor’s code of ethics. Check out awards and recognitions she’s been given – especially by her peers.

The “Realtor of the Year” award is presented by the local branch of the NAR or by the state and it means a great deal and is quite an honor to be chosen by your peers. You can be assured that she’s respected and looked up to by the business.

One trick to choose an agent who knows her way around is to ask about a property in the area that has recently been put on the market or sold. If the agent immediately knows the property you’re talking about, it’s a sure thing she knows the area and the market you’re considering.

Choosing a real estate agent who’s going to carefully guide you along one of the most important and expensive journeys of your life. Even if the real estate agent doesn’t meet all of the criteria for choosing an agent, consider your gut instinct about the person. Sometimes, that’s the best rule of thumb.

If you are deciding to move into a home, it is more than getting on the right grounds.  More important than any part of the real estate business are the investments and finances that are a part of the process.  If you are looking at any type of property, you will want to invest some of your time to become familiar with the financial options that are available to you.  

The first set of terms you will want to familiarize yourself with is with loans.  There are several types of loans and arrangements of loans that are available.  If you don’t get the right one, you can end up paying more than you want or need with a specific type of investment.  You will want to know how the loans are divided, exactly what you will be paying on, and how this will affect your investment in the real estate.  

After this, you will want to look into your own finances in order to see how they will balance with the loans.  If you have other loans, such as car loans or student loans, it will be important to factor this into what you will be paying with your home loan.  You will also want to check on things such as your credit report and your financial plan.  Your history of finances and your present situation makes a large difference in what you are able to pay on a property.  

If you aren’t finding something that fits exactly right, it will simply be a matter of changing the rules a little.  Even though you will mostly be looking at the ways you will be spending money and how this will change your lifestyle, you can also look at ways to deduct the money back off of your investment.  There are options for deductions off of taxes and investment deals if you need to pinch pennies for other types of needs.  

More than being able to pay thousands of dollars every month is the need to make sure you are getting into the right deal.  Understanding and evaluating your situation and seeing how it will fit into a loan plan will make a large difference in the type of investment you make.  Before putting your money somewhere else, you should always make sure that it is a place worthwhile to you.

A good real estate agent can help walk you through the appraisal process, but you can also go through it on your own if you plan to sell your home yourself. The cost of a typical home appraisal will depend on the state that you live in. 

In some areas, an appraisal is more expensive than in other areas. An appraisal is done by a licensed professional. While some homeowners do hire an appraiser at times other than when buying or selling a home, it’s typically only reserved for when a home goes on the market. However, there are times when the homeowner is looking to refinance the home to lower the mortgage or take out a loan against the equity – so then an appraisal has to be done. A home price set by a homeowner doesn’t always accurately reflect the true value. The kind of shape that a house is in can make the asking price correct if it’s been well cared for. A house that’s in need of repairs doesn’t always match the asking price and an appraiser can determine this. This professional takes into consideration where the home is located, what upgrades have been done and the kind of neighborhood and values of the surrounding homes. The purpose of this is because it prevents potential buyers from paying more for the home than its true value. An individual buyer doesn’t want to get upside down in a home price any more than a bank or mortgage company does. The appraiser knows the parameters for correctly determining your home’s values. He also knows what the state’s laws are concerning the process. He’ll come out to your house with documentation that he’ll have to fill out. He’ll be looking at how many bedrooms and bathrooms your home has. He’ll also measure the square footage of your home to make sure it’s accurately described. He’ll look at the outside of your home and check things like the exterior walls, the shape of the windows and the roof. He’ll look at porches and decks and see if there are any extras that add to the home’s value. Inside the home, he’ll check to make sure that everything’s in working order. He’ll run the faucets, flush the toilets and check under cabinets for leaks. He’ll mark anything that needs to be fixed. He’ll check the appliances, the electricity, the heating and air unit and go up into the attic. He’ll check the garage as well. He’ll provide photographs of your home to back up his analysis of the appraised value. Getting an appraisal done can help make sure that both parties in a sale are aware of any potential issues. 

Some homeowners pay for an appraisal before they ever put the home on the market so they’ll know what needs to be taken care of first. Sometimes homeowners are upset when the report comes back more unfavorably than they anticipated. But the appraiser can help protect you from selling a home with potential hazards just as much as it can protect you from underselling.

The housing market can be pretty competitive as well as expensive for both a seller and a buyer. Though most real estate transactions are handled by real estate agents and the money for the sale is loaned to the buyer by a financial institution, there are plenty of cases where the owner finances the sale. 

Whether that’s right or wrong for you will depend on your circumstances. When you do owner financing, you’re acting in place of the lending institution. You’ll get a promissory note from the buyer and, like the bank, you reserve the right to take back your home if the buyer doesn’t pay as promised. 

You can offer a variety of loans from an assumable mortgage to a lease option or a junior mortgage. You have to have a contract that spells out all the details of the promissory note. 

The promissory note should have the date when payments are due, the amount of the payment and the interest rate. How you set up that note for payment on your home depends on what you and the buyer agree on. Some of these notes are for a shorter time span than others. Some sellers think that if a buyer is seeking owner financing, it means he can’t get bank approval because he can’t afford it. But that’s not always the case. Sometimes you can have investors who want to buy another property but the bank is too leery about their debt ratio. It doesn’t mean the potential buyer is a risk. 

There are both pros and cons to offering owner financing. By doing so, you can eliminate expensive closing costs. You can also often find a buyer faster. When you list your home for sale yourself and you have a buyer who needs financing and can’t or doesn’t want it from a financial institution, then you can often get a better price on your home. 

Another benefit for offering financing is if you want to move yourself or you have to relocate and you need the money that the buyer has to pay as the down payment. 

If you want to get out from under a mortgage payment, offering owner financing can often make a sale happen faster. This is because part of the hold up in a conventional sale can be when the potential buyer has to try to secure financing. Sometimes people have been through a hard time and they’ve recovered financially, but their credit rating hasn’t – so traditional lenders won’t touch them even though they can afford to buy the home. 

Other benefits to financing it yourself include receiving the payment every month. There are some drawbacks, however, that you need to know. If the buyer doesn’t pay, then you have to foreclose on the home. 

Sometimes people walk away from a property and then you have to reassume the mortgage costs as well as fix up any possible damage that was done by the owners.