Top 10 Reasons to Hire a Real Estate Agent ~By Elizabeth Weintraub, About.com

With so much information readily available online, clients sometimes ask me, “Why should we hire a real estate agent?” They wonder, and rightfully so, if they couldn’t buy or sell a home through the Internet or through regular marketing and advertising channels without representation, without a a real estate agent. Some do OK, many don’t. So if you’ve wondered the same thing, here are 10 reasons why you might want to consider hiring a professional real estate agent.

1. Education & Experience-You don’t need to know everything about buying and selling real estate if you hire a real estate professional who does. Henry Ford once said that when you hire people who are smarter than you are, it proves you are smarter than they are. The trick is to find the right person. For the most part, they all cost about the same. Why not hire a person with more education and experience than you? We’re all looking for more precious time in our lives, and hiring pros gives us that time.

2. Agents are Buffers

Agents take the spam out of your property showings and visits. If you’re a buyer of new homes, your agent will whip out her sword and keep the builder’s agents at bay, preventing them from biting or nipping at your heels. If you’re a seller, your agent will filter all those phone calls that lead to nowhere from lookie loos and try to induce serious buyers to immediately write an offer.

3. Neighborhood Knowledge

Agents either possess intimate knowledge or they know where to find the industry buzz about your neighborhood. They can identify comparable sales and hand these facts to you, in addition to pointing you in the direction where you can find more data on schools, crime or demographics. For example, you may know that a home down the street was on the market for $350,000, but an agent will know it had upgrades and sold at $285,000 after 65 days on the market and after twice falling out of escrow.

4. Price Guidance

Contrary to what some people believe, agents do not select prices for sellers or buyers. However, an agent will help to guide clients to make the right choices for themselves. If a listing is at 7%, for example, an agent has a 7% vested interest in the sale, but the client has a 93% interest. Selling agents will ask buyers to weigh all the data supplied to them and to choose a price. Then based on market supply, demand and the conditions, the agent will devise a negotiation strategy.

5. Market Conditions Information

Real estate agents can disclose market conditions, which will govern your selling or buying process. Many factors determine how you will proceed. Data such as the average per square foot cost of similar homes, median and average sales prices, average days on market and ratios of list-to-sold prices, among other criteria, will have a huge bearing on what you ultimately decide to do.

6. Professional Networking

Real estate agents network with other professionals, many of whom provide services that you will need to buy or sell. Due to legal liability, many agents will hesitate to recommend a certain individual or company over another, but they do know which vendors have a reputation for efficiency, competency and competitive pricing. Agents can, however, give you a list of references with whom they have worked and provide background information to help you make a wise selection.

7. Negotiation Skills & Confidentiality

Top producing agents negotiate well because, unlike most buyers and sellers, they can remove themselves from the emotional aspects of the transaction and because they are skilled. It’s part of their job description. Good agents are not messengers, delivering buyer’s offers to sellers and vice versa. They are professionals who are trained to present their client’s case in the best light and agree to hold client information confidential from competing interests.

8. Handling Volumes of Paperwork

One-page deposit receipts were prevalent in the early 1970s. Today’s purchase agreements run 10 pages or more. That does not include the federal- and state-mandated disclosures nor disclosures dictated by local custom. Most real estate files average thicknesses from one to three inches of paper. One tiny mistake or omission could land you in court or cost you thousands. In some states, lawyers handle the disclosures, thank goodness!

9. Answer Questions After Closing

Even the smoothest transactions that close without complications can come back to haunt. For example, taxing authorities that collect property tax assessments, doc stamps or transfer tax can fall months behind and mix up invoices, but one call to your agent can straighten out the confusion. Many questions can pop up that were overlooked in the excitement of closing. Good agents stand by ready to assist. Worthy and honest agents don’t leave you in the dust to fend for yourself.

10. Develop Relationships for Future Business

The basis for an agent’s success and continued career in real estate is referrals. Few agents would survive if their livelihood was dependent on consistently drumming up new business. This emphasis gives agents strong incentives to make certain clients are happy and satisfied. It also means that an agent who stays in the business will be there for you when you need to hire an agent again. Many will periodically mail market updates to you to keep you informed and to stay in touch.

As your real estate closing or settlement date approaches, there are various things you must do to ensure the transaction closes smoothly and on time. As escrow requirements differ from location to location, understanding what needs to be done and preparing accordingly is the key to a stress-free closing.

• Keep a close eye on the loan process. Check in with your loan officer frequently until you are satisfied everything they need has been submitted and the loan will fund on time.
• Review your settlement statement or HUD-1 form a few days before closing. Check the line items to make sure you are getting credit for your deposits and other items agreed upon.
• Thoroughly review the preliminary title report to confirm the exact legal description, and note any encumbrances, liens or other items that may have been discovered.
• Inspect the property a few days prior to closing to make sure all agreed-upon repairs have been finished and any personal property that was not negotiated in the sales contract has been removed.
• Make sure someone has contacted the utility companies to transfer them into your name on closing day.
• Contact your insurance company to make any required changes. This is usually required and handled by the lender, but it’s up to you to make sure the policy is adequate.
• Bring a certified check to cover closing costs and two forms of identification.
• Get copies of the settlement statement, mortgage or deed of trust, truth-in-lending statement, sales contract, appraisals, inspections and disclosures. In addition, get the keys, gate codes and garage remotes.
• Get answers to all your questions. Don’t proceed if you don’t understand something, get answers.

The reason you want to review these items before closing day is to give the seller, escrow, realtor, whoever, time to remedy any mistakes or complete any agreed-upon conditions. By being proactive, you can make certain you’ll have a smooth closing.

1.  Find the agent that is right for you!  Homebuying is not only a big financial commitment, but an emotional one. It is critical that the agent you choose is both skilled and a good fit with your personality.

2.  Remember, there’s no “right” time to buy, any more than there’s a right time to sell.  If you find a home now, don’t try to second guess the interest rates or the housing market by waiting.  Changes don’t usually occur fast enough to make that much difference in price, and a good home won’t stay on the market long!

3.  Factor in maintenance and repair costs in your post-home buying budget.  Even if you buy a new home, there will be some costs.  Don’t leave yourself short and let your home deteriorate.

4.  Accept that a little buyer’s remorse is inevitable and will probably pass.  Buying a home, especially for the first time, is a big commitment, but it also yields big benefits.

5.  Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated an average of 5.4 percent annually from 1998 to 2002, a home’s most important role is as a comfortable, safe place to live.

6.  Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision, but too many ideas will make it much harder to make that decision.

7.  Accept that no house is ever perfect.  Focus in on the things that are the most important to you and let the minor ones go.

8.  Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra low price may lose you the home you love.

9.  Remember your home doesn’t exist in a vacuum.  Don’t get so caught up in the physical aspects of the house itself-room size, kitchen- that you forget such issues as amenities, noise level, etc. that have a big impact on what it’s like to live in your new home.

10.  Don’t wait until you’ve found a home and made an offer to get approved for a mortgage, investigate insurance availability, and consider a schedule for moving.  Providing an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.

GOVERNMENT TAX INCENTIVES:

If you’re thinking about upgrading your doors, windows, or skylights, the federal government will pay 30% of the product cost up to $1,500.00.  Not free money you say?  Well, if you were already thinking about making your home more efficient to save money, it sure is!  All in all, there’s a lot of free money out there, you just have to do a little looking to find it.  LET ME HELP YOU!

FREE MONEY:

Say “free money” to most people and they think of late night infomercials packed with crazy schemes.  But the truth is, there are many real- legitimate- ways to find free money.  From the $8,000.00 government tax credit for first time home buyers to online deal finders like retailmenot.com that let you search the best deals in one place, there’s actually a lot of free money out there waiting to be found.

ONLINE DEAL FINDERS: There are tons of deals out there on and off the internet.  But how is anybody expected to find them all?  Websites like retailmenot.com  will find deals and coupons and deliver them right to your computer screen.  All you have to do is enter the item you are looking for (or your favorite store if you’re just looking) and it pulls any available deals for that item all onto one page-coupons, coupon codes, rebates, etc.  all there for your shopping pleasure.  Sure you have to spend a little to get a little, but it’s still free money if you were just about to pay full retail.

FREE MONEY WEBSITES AT A GLANCE
federalhousingtaxcredit.com
retailmenot.com
edmunds.com
bankofamerica.com/promos/jump/ktc

GOOD LUCK!

For our own peace of mind in today’s uncertain economic times, we feel it is important to do what we can to prepare for life’s unforeseen circumstances.  Did you realize that the Personal Savings Rate in 2009 is at it’s highest point in the decade?  Americans are putting more money into their savings for retirement and unexpected events like unemployment and other emergencies.  We have come up with 7 easy tips for growing your own savings.  Give it a try, you will be surprised what you can achieve!

During difficult economic times, it’s easy to neglect your savings.  Regardless of the state of the economy, paying yourself is always a must.  Here are the seven tips for growing your savings.

1.  Establish an emergency savings account.  In they event of an emergency, having money set aside will prevent you from dipping into your retirement or long term savings.  A general rule of thump is to set aside money equal to two or more months’ worth of living                                     expenses.

2.  Save money for your long term goals. Saving becomes easier when you have a goal to work toward.  If your employer matches a portion of your retirement contribution, you are passing up free money if you don’t take advantage.

3.  Make savings automatic. A portion of every paycheck should go directly into your savings account.  Your bank can set up an automatic payment for you.

4.  Start small if necessary.   Even if you can’t afford to put a lot toward your savings right away, starting small will still establish a savings routine.

5.  Comparison shop for the best rates.  Search for the best savings rates available.  A high yield savings account can double your interest.

6.  Turn a payment into savings.   If you have recently paid off a credit card or loan, add that amount to your monthly savings amount.

7.  Save your windfall.  If you receive an inheritance, a tax refund or a bonus at work, you do not have to spend it just because you have it.  Money set aside now will reward you later- and with interest!

If you are trying to sell your home now or in the future, here are a few tips on how to prepare your home for an open house.  Remember what they say about first impressions!

1)  Clean your house really well.  If need be, hire a cleaning service.  A spotless, clean home shows off a home better than anything.

2)  Mow your lawn and make sure the yard looks great.

3)  Park your cars away from the front of the house or driveway.

4)  Lock up all of your valuables, jewelry and money.  Although your real estate professional will be on site during the open house, it will provide fewer temptations.

5)  Turn on all of the lights, even in the daytime.  Incandescent lights add sparkle.

6)  Send your pets to a neighbors house or take them outside.  If that’s not possible, crate them to one room and let your agent know where tofind them.

7)  Visit friends or run some errands.  It’s awkward for prospective buyers to look in your closets and freely express their opinions with you there.

1.  Buy new towels for the bathroom

2.  Upgrade outdoor lighting

3.  Install new doorknobs and cabinet handles

4.  Make a centerpiece for your dining room table

5.  Buy A new mailbox

6.  Polish or replace your house numbers

7.  Place fresh flowers or houseplants around your home.

8.  Buy color coordinated pillows for the sofa and bed

9.  Replace your work doormat

10. Set out subtle potpourri or scented candles.

Foreclosure is such a scary topic, yet part of so many peoples lives today.  If you or someone you know may be facing a possible foreclosure with a mortgage read the information below.  I receive information on this quite frequently, so if you need further assistance, please give me a call.

Foreclosure processes are different in every state. If you are worried about making your mortgage payments, then you should learn about your state’s foreclosure laws and processes.. Differences among states range from the notices that must be posted or mailed, redemption periods, and the scheduling and notices issued regarding the auctioning of the property.

In general, mortgage companies start foreclosure processes about 3-6 months after the first missed mortgage payment. Late fees are charged after 10-15 days, however most mortgage companies recognize that homeowners may be facing short-term financial hardships. It is extremely important you stay in contact with your lender within the first month after missing a payment.

After 30 days, the borrower is in default, and the foreclosure processes begin to accelerate. If you do not call the bank and ignore the calls of your lender, then the foreclosure process will begin much earlier. At any time during the process, talk to your lender or a housing counselor about the different alternatives and solutions that may exist.

Three types of foreclosures may be initiated at this time: judicial, power of sale, and strict foreclosure. All types of foreclosure require public notices to be issued and all parties to be notified regarding the proceedings. Once properties are sold through an auction, families have a small amount of time to find a new place to live and move out before the sheriff issues an eviction.

Judicial Foreclosure. All states allow this type of foreclosure, and some require it. The lender files suit with the judicial system, and the borrower will receive a note in the mail demanding payment. The borrower then has only 30 days to respond with a payment in order to avoid foreclosure. If a payment is not made after a certain time period, the mortgaged property then is sold through an auction to the highest bidder, carried out by a local court or sheriff’s office.

Power of Sale. This type of foreclosure, also known as statutory foreclosure, is allowed by many states if the mortgage includes a power of sale clause. After a homeowner has defaulted on mortgage payments, the lender sends out notices demanding payments. Once an established waiting period has passed, the mortgage company rather than local courts or sheriff’s office carries out a public auction. Non-judicial foreclosure auctions are often more expedient, though they may be subject to judicial review to ensure the legality of the proceedings.

Strict Foreclosure. A small number of states allow this type of foreclosure. In strict foreclosure proceedings, the lender files a lawsuit on homeowner that has defaulted. If the borrower cannot pay the mortgage within a specific timeline ordered by the court, the property goes directly back to the mortgage holder. Generally, strict foreclosures take place only when the debt amount is greater than the value of the property.

Following is some information on the First Time Home Buyer Tax Credit that we have received several questions about.  I hope you will find it helpful for yourself or someone you know who might be interested.

The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000.00 for qualified first- time home buyers purchasing a principal residence on or after 1-1-2009 and before 12-1-2009.
The following questions and answers provide some basic information about the tax credit.  Please contact me in the event you have further questions.

1.  What is the definition of a first-time home buyer?   The law defines “first-time home buyer as a buyer who has not owned a residence during the three year period prior to the purchase.  For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.

2.  How is the amount of the tax credit determined?  The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.

3.  Who is eligible to claim the tax credit?  First-time buyers purchasing any kind of home are eligible for the tax credit.  To qualify for the tax credit, the purchase must occur after 1-1-2009 and before 12-1-2009.  For the purposes of the tax credit, the purchase date is the date the closing occurs and the title of the property transfers to the home owner.

4.  Are there any income limits for claiming the tax credit?  Yes, the income limit for single taxpayers is $75,000; the limit for married taxpayers filing a joint return is $150,000.  The tax credit is reduced for buyers with a                             modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return.  The phaseout for the tax credit program is equal to $20,000.  That is,  the tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGI’s between these amounts.

5.  If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?  Possibly.  It depends on your income.  Partial credits of less than $8,000 are available for some taxpayers whose MAGI exceeds the phaseout limits.

6. Is a tax credit the same as a tax deduction?   No.  A tax credit is a dollar for dollar reduction in what the taxpayer owes.  That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000  tax credit would owe nothing to the IRS.

7.  I read that the tax credit is “refundable”, What does that mean?  The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset.  Typically this involves the government sending the taxpayer a check for a portion or even all of the the amount of the refundable tax credit.

8.  Instead of buying a home from a new home builder, I hired a contractor to construct a home on a lot that I already own.  Do I still qualify for the tax credit?  Yes.  For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been “purchased” on the date the  owner first occupies the house.  In this situation, the date of first occupancy must be on or after 1-1-2009 and before 12-1-2009

9.  What types of homes will qualify for the tax credit?  Any home that will be used as a principal residence will qualify for the credit.  This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes, also known as mobile homes and houseboats.  The definition of principal residence is identical to the one used to determine whether you may qualify $250,000-$500,000 capital gain tax exclusion for principal residence.

10.  For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?  Yes.  If the applicable income phaseout would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.

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