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A February 16, 2009 article from Realty Times begins:
“First time buyers will get an improved, higher, non-repayable version of last year’s repayable $7,500 tax credit under Congress’s massive $789 billion economic stimulus package.
That in turn should lead to 500,000 additional home sales this year …
Only real estate professionals who are members of the NATIONAL ASSOCIATION OF REALTORS® (NAR) can call themselves REALTORS®. All REALTORS® adhere to NAR’s strict Code of Ethics, which is based on professionalism and protection of the public. That’s why all real estate licensees are NOT the same.
Dedicated to serving America’s property owners at both local and national levels, the NATIONAL ASSOCIATION OF REALTORS®, The Voice for Real Estate®, is the largest professional association at over one million members strong. So, whether you’re buying or selling a home–it pays to work with a REALTOR®. Look for the REALTOR® logo when choosing your real estate agent.
Buyer’s Agent Smoothes Sometimes Bumpy Road to Foreclosure Purchase
By Rick Sharga, Vice President of Marketing for RealtyTrac
Whether it’s the first time or the tenth, buying a home can be both an exhilarating and overwhelming experience. As with any major purchase, there’s a significant amount of pressure to make the right decisions about such matters as where and what to buy, and ultimately how much to spend. How can you make sure you get the best deal possible on a property that suits your needs, or find exactly the right property to fit your budget and your lifestyle? Increasingly, many homebuyers are doing this by secure the representation of a Buyer’s Agent.
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Most people hire a real estate agent to sell their home, but overlook the importance of having an agent when buying a property. While in some cases it’s possible to negotiate your purchase through the seller’s representative, make no mistake: these seller’s representatives are charged with making the sale and negotiating the best deal for their clients — the sellers! With that in mind, it’s best to secure your own representation as a buyer, in order to minimize potential conflicts, and make sure your interests are represented.
In the more complex foreclosures market, a Buyer’s Agent can be even more valuable. The agent can help you negotiate with the owner before a property comes on the market and can also act as a buffer during the negotiating process to make sure you’ve completed all the necessary steps before closing. Done right, it’s like having your own personal tour guide to help you find your way through the foreclosure buying process.
For buyers looking to uncover substantial bargains in real estate, the foreclosures market does offer a treasure trove of opportunities. Foreclosure properties are some of the best opportunities in real estate today with savings of 10-30 percent below market value. Some properties offer savings of up to 50 percent or more! But like any investment offering a high return, there are sometimes higher risks involved in buying a foreclosure than in buying more traditional real estate. One of the ways to maximize the value while minimizing the risk is to work with Buyers Agents who specialize in this market, with specific experience navigating the twists and turns that come with purchasing a foreclosure.
“If you’re in the market for a foreclosure property, you should really take some time to look for an agent with actual foreclosure transaction experience,” explains James J. Saccacio, chief executive officer at RealtyTrac, the leading online foreclosure marketplace. “The nuances of this market make it a different animal from conventional real estate, so buyers owe it to themselves to secure a seasoned agent who’s familiar with the foreclosures process, and has knowledge of local, regional and state laws.”
RealtyTrac’s National Agent Network connects prospective buyers of foreclosure properties with local agents who specialize in foreclosures. Homebuyers can go to www.realtytrac.com to identify and research potential home purchases, as well as to find all the tools and professional resources they need to help them close the deal.
Of course, it’s also important to consider the agent’s knowledge of the area where you wish to purchase property, their ability to close a deal, and their access to other professionals such as attorneys, lenders, and title companies. It’s often a good idea to interview two or three agents to ask about their credentials and to test out chemistry, just as you would when selecting any valued business partner. Ask for references from previous buyers to see what people who have been in your shoes have to say about the agent’s credentials and demeanor. Ultimately, your agent should make you feel confident that they know how to steer you correctly through the foreclosure buying process.
Here are some questions to ask a prospective buyer’s agent if you’re buying a foreclosure:
Once you’ve selected an agent, you’ll need to set up some ground rules for how you want to work together, such as times you are available to view homes, expectations regarding the agent previewing properties on your behalf, and courtesies expected by both parties.
Keep in mind that even the most intuitive agents are not mind readers. You need to make your preferences, priorities and spending limits clear up front, so neither party wastes valuable time looking at properties that don’t meet your needs.
Finally a word about etiquette: While you don’t necessarily have to commit to working exclusively with a single agent (unless you’ve signed an exclusive agreement with them), it’s most proper to ultimately extend your loyalty to an agent who spends a significant amount of effort helping you find a property. Remember, real estate agents work on commission, so the time they spend working on your behalf amounts to nothing if you don’t ultimately make a purchase through them. If for some reason, you find that your needs are not being met by a particular agent, it’s best to set the record straight early in the process, either to correct the problem or to retain alternate representation.
Working with a Buyers Agent can often result in a net savings on property purchases—whether traditional resale homes or foreclosure properties, and can also help inexperienced home buyers from making costly mistakes in negotiations, contract terms and property research.
Some people think that signing on a broker to help them buy real estate is unnecessary. They can get the assistance needed from any realtor free and without obligation. Some people wonder: Why pay for something you can get for free; why obligate yourself? Some skeptics even think it’s just a tactic real estate agents use to try to secure an opportunity to earn a commission.
Here are a few facts -
#1 - A buyer very rarely pays for the service of a Buyer’s Agent. At Realty Dynamics we’ve never asked to be paid by a buyer client. Call us; we’d be glad to give you the details. #2 - A buyer cannot get the services available under a Buyer’s Agency from any realtor ever! The heart of a buyer’s agency relationship is that the agent represents the buyer. Without a Buyer’s Agent relationship, you can get assistance, but not representation. #3 - With a Buyer’s Agent there is no obligation to buy, only an agreement to having a knowledgeable broker working for you.
There is a BIG difference and when making a BIG purchase, we hope you’ll take the time to learn about this valuable option for buyers.
Click Here for a Printable Explaination About Buyer’s Agency
Click here for a related post on Buyer’s Agency from RealtyTrack.com
Copyright © 2008 Gohlke & Associates, LLC - All rights reserved
That’s right! If you buy a first home worth $200,000 and put 10% down, then get a mortgage at 6% interest, with mortgage insurance and typical monthly property tax escrow, your total monthly payment will be about $1,450. If you left a $950 per month rental unit to do that, it would cost your $200 a month more - right?
Sure, we we’re told in school that $1,450 - $950 = $500, but that was math, not “real estate math”! When you use “real estate math” then $1,450 - $950 really does equal about $200 (plus or minus a nickel). Here’s why - with “real estate math” three things change the formula:
First, some of the money you give to the bank each month actually goes right back into your “other pocket”, if you will - it goes toward reducing your debt. More money saved - less money owed; it’s pretty much the same thing.
Second, with a home you get to take your property taxes and mortgage interest as deductions when you do your income tax return. The exact amount of tax savings is a question for your tax preparer, but its a big reason why home ownership has always been the thing to do - put another way, Uncle Sam actually can be a nice guy when it comes to taxes, honest!
Third, although right now real estate prices in Wisconsin are pretty flat (ok, maybe even a little down in places), overall, historically property values go up on average something like about 3% a year.
Call us if you’d like to know more. We like to help 1st time home buyers. This is an unusually great time to buy your 1st home.
Copyright © 2008 Gohlke & Associates, LLC - All rights reserved