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What to Look for in Your Real Estate Team

What to Look for in Your Real Estate Team | MyKCM

How do you select the members of your team who are going to help you make your dream of owning a home a reality? What should you be looking for? How do you know if you’ve found the right agent or lender?

The most important characteristic that you should be looking for in your agent is someone who is going to take the time to really educate you on the choices available to you and your ability to buy in today’s market.

As Dave Ramsey, the financial guru, advises:

“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”

Do your research. Ask your friends and family for recommendations of professionals whom they have used in the past and have had good experiences with.

Look for members of your team who will be honest and trustworthy; after all, you will be trusting them with helping you make one of the biggest financial decisions of your life.

Whether this is your first or fifth time buying a home, you want to make sure that you have an agent who is going to have the tough conversations with you, not just the easy ones. If your offer isn’t accepted by the seller, or they think that there may be something wrong with the home that you’ve fallen in love with, you would rather know what they think than make a costly mistake.

According to a Consumer Housing Trends Study, millennials have already started to prefer a more hands-on approach to their real estate experience:

“While older generations rely on real estate agents for information and expertise, millennials expect real estate agents to become trusted advisers and strategic partners.”

Look for someone to invest in your family’s future with you. You want an agent who isn’t focused on the transaction but is instead focused on helping you understand the process while helping you find your dream home.

Bottom Line

In this world of Google searches, where it seems like all the answers are just a mouse-click away, you need an agent who is going to educate you and share the information that you need to know before you even know you need it.

Buyers: How High Should You Go? Creating the perfect real estate purchase offer

How Much is Too Much?
How Much is Too Much?

Deciding how much to offer a seller for a home you’d love to own is rarely easy. Ideally, your offer price should not be above what you think the property is worth or what you can afford, but tempting enough to the seller that he can’t refuse to accept.

Arriving at that perfect offer price is harder in some markets than others, and it depends on a lot of factors that are beyond your control. For example, in buyers’ markets where there is a lot of inventory, you may find more realistic sellers who understand that they need to be flexible if they want to sell. In sellers’ markets where there are more buyers than sellers, you may have no choice but to offer more than the asking price if you hope to be the successful bidder.

The first step to arriving at an effective offer price is to find out how much properties similar to the one you’re interested in have been selling for recently. Look at the relationship between the list and sale prices of each listing. Did they sell for more or less than the asking price? How long did it take them to sell? Your real estate agent can provide you with this information. Ask for a Comparative or Competitive Market Analysis (CMA) for the listing in question.

Then ask your agent to talk to the listing agent and find out how much attention the listing is receiving. Are there any other buyers serious about writing offers? If so, you’ll have to offer more than you will if there is no other serious interest.

How much you need to offer to pique the seller’s interest will depend a lot on how long the listing has been on the market. A seller may snub a less-than-asking-price offer if the listing is new on the market. However, if the listing is weeks old and there are plenty of new listings coming on the market each week, you may be successful with an offer for less than asking.

How much a seller will negotiate usually depends on several factors: how long the property has been on the market, whether the seller is motivated (that is, he really needs rather than just wants to sell) and how realistic the seller is about the current value of his home.

HOUSE HUNTING TIP: You can save yourself a lot of time and aggravation by asking your agent to have a heart-to-heart talk with the listing agent before you make an offer, particularly if you intend to offer significantly less than the list price. If the seller is adamant about his price, and there are plenty of other similar listings on the market, devote your energies to a seller who is willing to sell at market value.

Some buyers wonder if they should pay over asking in a strong market that could lose steam over the next year as interest rates rise. That depends on how the listing is priced. If it’s priced below market value, it could attract multiple offers. If the property will suit your long-term needs, it may be reasonable to pay more than the list price as long as it’s not more than you can afford now and for the long term. You won’t lose money unless you have to sell during a down market.

Don’t be afraid to negotiate if you’re not in competition. Some motivated sellers still can’t resist trying for a higher price. Several rounds of counteroffers back and forth could bring about a successful conclusion.

THE CLOSING: But, promise yourself to walk away if the seller doesn’t see the light.

 

(Article courtesy of “ClientDirect – by By Dian Hymer)

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