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Why choose an Agent/Realtor?
You Be The Judge!
Real Estate transactions involve one of the biggest financial investments
most people experience in their lifetime. Transactions today usually
exceed $100,000. If you had a $100,000 income tax problem, would you
attempt to deal with it without the help of a C.P.A.? If you had a
$100,000 legal question, would you deal with it without the help of
an attorney? Considering the small upside cost and the large downside
risk, it would be foolish to consider a deal in real estate without
the professional assistance of a REALTOR!
How do Real Estate Agents get paid?
Real Estate Agents or Brokers are generally paid through the sales commission
paid by the seller when a transaction closes. Agents have expenses and financial
obligations just like everyone. They usually pay for their own advertising,
travel expenses, and supplies necessary to help you. It would be to your mutual
benefit if you choose a real estate agent and stick with that person. The agent
will respect your loyalty and respond with a sincere commitment to you. Remember
they don't get paid until their job is done and you are a satisfied customer.
The Buying Process
Buying a home can be one of life's most exciting experiences and one of the
most challenging. The more prepared you are at the outset, the less overwhelming
and chaotic the buying process will be. The process generally starts with determining
your buying power: that is, your financial reserves plus your borrowing capacity.
If you give your real estate agent some basic information about your available
savings, income and current debt, they can refer you to lenders best qualified
to help you. Your Name has a fun worksheet you can fill out.
Finding the right house for you (This is the fun part!)
Once you know how much you can and want to invest, the next step is to find
the home that most nearly fits your needs. This is a good time to get together
with your real estate agent and go over the details. Your Name has a special form
you can fill out called "Your Wish Lists". This will determine where
to start looking. Sometimes the property you are seeking is available but not
actively advertised in the market, and it will take some investigation by your
agent to find all the available properties.
Pricing
This process generally begins with a determination of a reasonable asking price.
Your Name can give you up-to-date information on what is happening in the marketplace
and the price, financing, terms, and condition of competing properties. These
are the key factors in getting your property at the best price, quickly and
with minimum hassle.
Making an Offer
Oral promises are not legally enforceable when it comes to the sale of real
estate. Therefore, you need to enter into a written contract. After the offer
is drawn up and signed, your REALTOR will usually present it to the seller.
The purchase offer you submit, if accepted as it stands, will become a binding
sales contract.
Counter Offer
Each time either party makes any change in the terms of the contract, the other
side is free to accept or reject if, or counter again. The document becomes
a binding contract only when one party finally signs an unconditional acceptance
of the other side's proposal.
Can you withdraw an offer?
In most cases the answer is yes, right up until the moment it is accepted,
or even, in some cases, if you haven't yet been notified of acceptance. If
you do want to revoke your offer, be sure to do so only after consulting a
lawyer who is experienced in real estate matters. You don't want to lose your
earnest money deposit, or find yourself being sued for damages the seller may
have suffered by relying on your actions.
What is earnest money?
This is a deposit that you give when making an offer on a house. A seller is
understandably suspicious of a written offer that is not accompanied by a cash
deposit to show "good faith". A REALTOR usually holds the deposit,
the amount of which varies from community to community. This will become part
of your down payment.
Need Negotiating Tips?
There are a myriad of negotiating factors, including but not limited to
price, financing, terms, date of possession, and often the inclusion or exclusion
of repairs and furnishings or equipment. The purchase agreement should also
provide a period of time for you to complete appropriate inspections of the
property before you are bound to complete the purchase.
Closing or Settlement
Finally, there is the "closing" or "settlement". The
title or escrow company will handle this process. Your Name can guide you through
this process and make sure everything flows together smoothly. Remember the
final down payment on your home is required to be paid by cashiers check. Don't
get caught without it or the deal won't close when you expect it to.
Moving and Income Tax
Many of your moving expenses qualify as income tax deductions - if your
move is closely related to a job transfer or your job is at leas 50 miles further
from your new home than the old one was. Check with your Tax Advisor!
Information supplied with the permission of Old Republic Title Company.
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