Real Estate Update

Posts Tagged ‘Using’

One of the most often-asked questions in the real estate world is “Do I need to use a realtor?” In Georgia, much like any other state the answer is: “Yes, if you want the best deal possible.” Many people have tried to sell their homes themselves or purchased without the aid of a realtor. There have surely been some success stories as well, but statistics also show that a large percentage of the people that do go the buy or sell yourself route end up working with a realtor in the end. Why is this? It’s simply because realtor are real estate professionals, they know their business and they know the local market and can supply services that are not attainable anywhere else.

Realtors services include several aspects of the buying and selling process that are unique to their profession. One of the most noticeable of these is the lengths they go to to market a property for sale. Perhaps the most vital tool in a realtor’s arsenal is the website. A properly maintained and optimized website is an invaluable tool in this modern age of high-technology. A huge percentage of the homes sold in the U.S. are first viewed online and some are even purchased entirely online without the buyer actually visiting the home.

In finding the right home, the experience and contacts of a realtor are unmatched. Realtors have years of experience in matching people with the homes that best suit them and their financial picture. They will be able to quickly eliminate homes that do not suit your needs and wants. Once the proper home has been found, the realtors experience really starts to shine through. The complex contracts process involved with a home sale can seem like a foreign language to those who have not dealt with it before. Realtors make the contract process easy and stress-free. Let’s look at it this way, would you allow a secretary to fix your car? Of course not you would take it to a mechanic. So why let a non-professional sell your home or guide your purchase?

Owing a home is a big part of the American dream. But not everyone is fortunate enough to become a homeowner due to delimiting factors such as insufficient income, bankruptcy, bad or no credit, loss of employment, etc. For people with such troubles, owning a home is a distant dream and some of these people resign themselves to a lifetime of renting. But such people are not without options. Rent-to-own, which is also known as a lease-purchase option, can be an excellent alternative available to some people who are currently unable to buy a home.
A rent-to-own or lease-purchase option is an agreement between a prospective home buyer and a home seller. The agreement is basically a rental contract with a right to purchase the property after a period of time (usually 1 year). When a home seller offers a lease-purchase option, what they are really offering is the option to rent the house at some monthly rate, and to lock in the sales price of the home now, even though the prospective buyer would not actually purchase the house until a later time (if at all).
Here is a hypothetical example. Let’s say the monthly rent for a home is $1700. Under a lease-purchase option, a prospective buyer would rent the home for the $1700 a month, but would also pay an additional premium (e.g., $200-$300) every month for the option to buy the home after a period of time (usually 1 year). So in this example, the total monthly rent is actually $2000, but $200-$300 of the money will be applied toward buying the house at a later time. In other words, the home seller would apply the $200-$300 extra paid every month toward the prospective buyer’s down payment at the end of the year.
The good news for prospective home buyers is that it allows them to lock in the purchase price of the home now, even though they are not purchasing the home until a later time. The bad news is that if a buyer decides not to purchase the home at the end of lease term, the seller often keeps the premium amount paid over the year, although this is usually a point of negotiation.
Prospective home buyers should know that many of the terms described above are negotiable such as how much the monthly rent will be, how much extra has to be paid every month for the option fee (if any), the length of the lease term, etc. The other issue to consider is if it makes sense to lock in a home purchase price now in markets where real estate prices are still declining.
When compared to renting, a lease-purchase can be an attractive alternative because it gives prospective buyers an opportunity to own a home before they normally would be able to. There are some advantages to a lease-purchase option such as:
1) Low or No Initial Down Payment. Many lease-purchase options do not require an initial down payment.
2) Equity Advantage. At the end of the lease term, the value of a home may have appreciated over time, which benefits the purchaser.
3) Living Experience. Prospective home buyers have the opportunity to try out a home and neighborhood before purchasing the property.
4) Leverage Advantage. With just a small investment, a prospective buyer can control a property; yet still have the option of not buying the home if market conditions don’t warrant it.
Rent-to-own or lease-purchase option can be an effective strategy to home ownership. However, there are both positive and negative aspects to this type of approach (as described above). A good real estate agent can help you navigate the complex world of rent-to-own and lease-purchase option properties.

Tightened standards on federal subprime rates have had a marked effect on the housing market. What does this mean if you want or really need to sell your home? The good news is that there is still a market out there; you just need the skills and tools to tap into it. That is where working with talented realtors comes in. That’s right, talented. In a competitive selling market the best realtors are one who are have large networks, diverse marketing skills, and are willing to try different ideas.

Most of the realtors you find will be honest, but you still need to know which side their bread is buttered on. Here are a few tips to help you get the most out of working with realtors, and the best deal on your house. And it all starts with the asking price.

Set Realistic Expectations

Most realtors hate to tell potential clients that, “No, your house won’t sell for that price.” They really want it to. But they sometimes hesitate to give you a realistic price, because sellers are most likely to hire the realtor that quotes them the best sell price. If they don’t tell you what you want to hear, they might lose your business. So seller, make it your business to ask for a market analysis, and have a realistic idea of what your house might sell for. Hit open houses in your neighborhood and look with a buyer’s eye.

Can’t I just reduce my price later? Well, you certainly can, but buyers almost always take that to mean that there is something wrong with the house. Having reasonable expectations, and being in the appropriate price range is much more likely to work to your advantage.

Also, remember that no matter how devoted realtors are the sale of your house doesn’t have nearly the impact on their lives as it does on yours. In fact, having a sign in your front yard can be good for a realtor’s business whether your house sells quickly or not. Now that doesn’t mean that realtors will try to drag their feet- of course not. But you still need to be aware of what’s being done to sell your house.

Marketing in a Slow Market

Find out before you even sign on with your realtor what marketing and advertising methods will be used to sell your house. Print ads, virtual tours, open houses, signage, direct mail postcards, and fliers are all viable options. But don’t assume that they will all be used immediately, or at all. And keep asking as you move along the process. Of course, a lot of print advertising methods are pricey. A veteran realtor will have a good idea of what to use when. But you need to be involved. If what your realtor’s methods don’t seem to be generating much interest, talk about trying something new. Remember, your realtor’s job is to help you get the most out of this investment.

The Internet is often used for browsing new properties, especially when there is distance involved. Statistics tell us that 80% of all home buyers will start their search for a new home by browsing the Internet. While looking at the Internet gives a general feel for areas and prices, for obvious reasons, at some point you will need to involve a realtor.

In today’s market, one of the key requirements to being a skillful realtor is familiarity with the Internet. This not only speeds up the property finding, it also means that the computer can do the compilations for you, and you can get the perfect home without getting out of your chair!

Once you have chosen the area you wish to live in, then choosing the right real estate agent for you will be your first priority when buying a new home. The emphasis here is on ‘choosing the right real estate agent for you’. This is because it is not difficult to find an efficient and willing realtor, but the ideal is to find one that is suited to your personality

If you are a ‘let’s get this show on the road’ type of person, then you will want an up and at’em type of realtor. One who is slower and very precise may drive you up the wall! You also need to feel that the realtor that you choose knows exactly what you are looking for in a home and will not waste your time (or their own time) offering you property that is unsuitable. This will only happen if you communicate accurately to your realtor exactly what you really want.

If you are looking at vacation property, there is often a ready made realtor who knows everything you need to know about the property involved. This is often the case with vacation homes and beach front properties that have been built to attract investors wishing to buy second homes. Often these are large blocks of condos with recreational facilities included.

If you are the type of buyer that says ‘when I see it, I will know it’, then the Internet, with all its choices of homes to buy is invaluable.

One of the questions to ask a realtor, is how familiar they are on the Internet. Make sure they can contact you by email and that they can turn up the MLS listings for you to look at. Sit with your realtor and get the virtual tour on a couple of homes.

Often, realtors will actually state in their profiles that they are internet proficient. This may often mean that they may know more about market trends and economic indicators in the business world as well as having all the realty facts at their fingertips,

If you want to save time, money and frustration, then take the time to find a realtor that knows exactly what you want and who knows exactly where to find it on the Internet.

Is it possible to go out and buy a home on your own without the assistance of a professional realtor? Sure. But it’s not a good idea. Using a realtor to help in buying your home will make the entire process easier and will help to make sure that you get the best deal on your own and that all of the legal issues involved in home buying are taken care. Still not convinced? Just take a look at some of the basic benefits of using a realtor to help you buy your home:

· A realtor can significantly narrow down the home buying process by helping you to determine exactly what your needs and desires are for the new home.

· A realtor is more capable than you are of negotiating on the price of the home.

· Home buyers rarely pay out-of-pocket fees for the help of a realtor. Therefore you’re getting professional advice and a better deal on your new home without any costs.

· If you are going to be purchasing a new home in a city that you are unfamiliar with or in a neighborhood that you don’t know a lot about, a realtor can provide you with important information about neighborhood demographics and things like schools in the area.

· Realtors are able to access the right people for making a good value assessment of your home so that you know if you’re paying a fair price.

· Realtors have access to online listings of homes that you yourself may not have ready access to, making it possible for the realtor to find a home for you to buy that you wouldn’t have found on your own.

· There are a lot of details to buying a home and you probably aren’t familiar with them, especially if this is your first time as a home buyer. The realtor can help you through every step of the process so that you understand what is going on and don’t get cheated anywhere along the way.

· You’ll know that the I’s have been dotted and the T’s have been crossed so legal concerns about the home buying transaction won’t have to worry you.

· Your realtor will remain calm even when you aren’t. Many good home deals have gotten bungled because of the heat of emotions that can rise up during this important purchase. Realtors help make sure that these emotions stay in their office and don’t cause problems with your buying deal.

The benefits to using a realtor are obvious. And what it really boils down to is that buying a home is not something that you’re trained to do, so it makes sense to work with a professional who is trained. While there are certainly many areas of life that can be quickly learned and approached with the do-it-yourself mentality, home buying isn’t one of them. There are just too many legal details involved and too much (like your money and your home) at stake. When it comes down to it, the choice about using a realtor is up to you. But since there’s little to no cost and a whole lot of benefits, it is definitely the smart thing to do.