6 Questions To Ask Before Hiring A Real Estate Agent

It's important to interview an agent before hiring one - in an interview you can find out their record for buying and selling homes, find out what area they're most comfortable and familiar working in, and if they'll be a good fit overall for your needs. 

Here are 6 questions to ask each and every real estate agent you interview:

1. What advertising and marketing plans do you have for my home? Will you list my home online and in print? (Agents should recommend that you list your home for sale in local newspapers and on popular online listing sites such as Zillow, Trulia, and Realbird). In other words, how will you make sure that my home is sold in a timely manner and for a good price?
   
   
2. What is your personal track record and reputation in the real estate world? It’s important for agents you’re interviewing to bring evidence of their success in selling and/or buying homes (depending on their specialty). Additionally, the agent should bring a reference list that gives you contact information for previous clients.
   
   
3. How many homes have you sold/bought in my area? It is very important that agents be familiar with the area that they’re working in so that they can provide you with an accurate and reasonable estimate for your listing price and can give you a timeline for selling your home.
   
   
4. When your listings sell, how close is the selling price to the asking price (on average)?
   
   
5. How long does it take for your listings to sell, on average?
   
   
6. Are you currently working with other buyers/sellers? If the agent is working with both buyers and sellers, this could increase your chances of selling your home quickly, as the agent may be able to pair you up with another client.
   
   
7. If I’m unhappy with the work you are doing, what are my options? It is important to think ahead and plan for all possible scenarios. Make sure that the agent you hire is willing to take the time and effort to make sure that you get what you want.

By asking and evaluating the responses that agents have to these questions, you will be able to determine whether or not the agent is a good fit for you and whether or not he/she will be able to find you the home you want.

4 Important Reasons To Use A Real Estate Agent

 

 

 

Buying or selling a home is a major financial and emotional undertaking. Find out the importance of having a real estate professional by your side to help you through the process.

1. Better Access / More Convenience

A real estate agent’s full-time job is to act as a liaison between buyers and sellers. This means that he or she will have easy access to all other properties listed by other agents. Both the buyer’s and seller’s agent work full time as real estate agents and they know what needs to be done to get a deal together. For example, if you are looking to buy a home, a real estate agent will track down homes that meet your criteria, get in touch with sellers’ agents and make appointments for you to view the homes. If you are buying on your own, you will have to play this telephone tag yourself. This may be especially difficult if you’re shopping for homes that are for sale by owner.

Similarly, if you are looking to sell your home yourself, you will have to solicit calls from interested parties, answer questions and make appointments. Keep in mind that potential buyers are likely to move on if you tend to be busy or don’t respond quickly enough. Alternatively, you may find yourself making an appointment and rushing home, only to find that no one shows up.

2. Negotiating Is Tricky Business

Because of the emotional value often wrapped up in a home, negotiating a dollar value for it can be tricky business. As a buyer, you may despise a home’s wood-paneled walls, shag carpet and lurid orange kitchen, but expressing this the seller could be dangerous. If you are working with an agent, you can express your dislike for the current owner’s decorating skills to your agent without hurting anyone’s feelings. For all you know, the owner’s late mother may have lovingly chosen the décor. Your real estate agent can convey your concerns to the sellers’ agent. Acting as a messenger, the agent may be in a better position to negotiate a discount without ruffling the homeowner’s feathers.

A real estate agent can stay strong during negotiations and keep buyers from arguing a price too much or buyers from getting upset. Putting a price tag on a home is a difficult task and having an objective third party there to help with the process is always a good idea.

3. Contracts Can Be Hard To Handle

If you decide to buy or sell a home, the offer to purchase contract is there to protect you and ensure that you are able to back out of the deal if certain conditions aren’t met. For example, if you plan to buy a home with a mortgage but you fail to make financing one of the conditions of the sale–and you aren’t approved for the mortgage–you can lose your deposit on the home and could even be sued by the seller for failing to fulfill your end of the contract.

An experienced real estate agent deals with the same contracts and conditions on a regular basis, and is familiar with which conditions should be used, when they can safely be removed and how to use the contract to protect you, whether you’re buying or selling your home.

4. Real Estate Agents Are On Your Side

Real estate agents are there to help you - whether to help you find your perfect home or see you through a sale. We want to see you get the home that you want for the best price.

Working alone, however, puts you at a bigger risk of dealing with buyers or sellers who could possibly stand to gain more by lying. While we would all like to think that no one would lie about a home’s substandard condition or any other defect, there’s always that possibility.

Working with a real estate agent gives you peace of mind knowing that there is always someone on your side throughout the process of buying or selling a home. Buying or selling is a difficult task and it’s a great feeling knowing your agent will always be there for you!

In the end it truly pays to have a professional on your side. Having someone with all the knowhow and experience necessary to deal with the confusing housing market can be priceless! To learn more about the importance of a real estate agent, go here.

 

Does Buying Green Mean Buying Smart?

 

 

Looking to the future, 68% of builders surveyed by National Association Home Builders said that the new homes they expect to build in 2015 will include even more green features and technology, based on increasing home buyer demand.

From 2012 to 2015, builders predict consumer demand will continue to increase for green features that include:

• High performance, multi-paned windows with low-E (low energy conducting) glass
• And windows with an insulating layer of inert gases between panes of glass
• Engineered wood beams, joists and trusses
• More efficient heating, ventilation and cooling (HVAC) systems
• Increased demand for water-saving features such as dual-flush toilets and low-flow faucets

According to The Environmental Protection Agency (EPA), which oversees the Energy Star program, more than 1 million Energy Star Certified homes have been built by 8,500 participating builders since the program was launched. Last year, the EPA estimates that owners of Energy Star Certified new homes saved a collective $270 million in energy costs and reduced greenhouse gases by an amount produced by 370,000 vehicles.

What does that translate to for owners of Energy Star homes?

The EPA says homeowners in hot and humid climates can expect to save $700 per year in utility costs.

Even if you only plan to live in your house for five years, such savings add up quickly. Over time, your savings on maintenance and energy can mean thousands of dollars you retain.

Come time to sell, a newer, more energy-efficient home is typically worth more than an older house that lacks such energy-saving features. Cost savings while you own your new home plus probable higher value at resale are an unbeatable combination.

Given that value proposition, let’s take a look at what it takes for a new home to earn Energy Star certification:

6 Musts for an Energy Star Certified New Home

1. High-Performance Insulation and Air Sealants.
2. High-Performance Windows.
3. Tightly-Sealed Ductwork and Tight Construction Standards.
4. High Efficiency Heating and Cooling Systems.
5. Energy Efficient Kitchen Appliances, Lighting and Water Heaters.
6. Expert, Independent Verification by Home Energy Raters.

Building science and technologies have made huge strides in recent years. According to the U.S. Department of Energy, a typical new home built today is 30 percent more energy efficient than a home built just 5 years ago–and no comparison to homes that are 10, 15 or 20 years old or more.

Today’s new homes are more energy efficient and less expensive to operate. They also provide better indoor air quality and year-round, draft-free comfort. With better HVAC, problems common in older homes (such as moisture condensation on windows, peeling paint or even mold) have been greatly reduced or eliminated.

Higher indoor air quality also means less dust and pollen that can trigger allergy and breathing problems, especially in children. If saving thousands of dollars in costs over the life of your new home isn’t sufficient incentive, you can feel comfortable knowing that you and your family will breathe easier in a new home as well. For more information about green homes, visit www.realtor.com.

 

Who Pays Closing Costs?

Closing costs are a mix of fees from the lender, title company, real estate agent, etc. Depending on your situation, what is included in your list of closing costs might be different. In some cases you can add these fees into your purchase offer, asking the seller to pay some if not all of your closing costs. Talk to your real estate agent about how this will work in your specific situation.

When purchasing a home, there are many costs you might not be prepared for...

• Home Inspection
• Appraisal
• Loan Application Fee
• Down Payment
• Closing Costs
• Moving Fees
• New Furniture
• Paint and Updates to the new home

The list goes on, right? So what costs can be covered by someone else? In most real estate markets, closing costs are part of the negotiation process. When you write an offer, you might be able to negotiate part or all of your closing costs to be paid for by the seller. How? It just depends on the situation, the terms of the offer, the amount you are asking for, etc.

So do sellers always pay closing costs for the buyer?

No, not always. But what it typically comes down to is the bottom line number. This means the seller takes your offer and all of the conditions, plugs it into a formula that will tell them what they will net or in some cases what the will owe. If that number is where they need to be and you asked them to pay for your closing costs, you might get them paid for by the seller. Again, it just depends on the situation, the market, the seller, your offer, etc.

So, now what?

Talk to your real estate agent about closing cost. When you go to write an offer make sure you think about closing costs. Do you want that to be something that is negotiated in? Having more money in your pocket after purchasing a home can be great to update, decorate, and fix things in your new home.

If you have any questions please don’t hesitate to contact me. I am happy to answer any questions you may have.

How To Win The Multiple-Offer Bidding War

The real estate market is picking up here in Ohio! We are seeing homes sell quickly and for top dollar. When the market is this hot we see many multiple offer situations.  Low inventory with high demand will do that!  For the seller, that is great news! For the buyer, you have to make sure you are prepared to go into a multiple offer bidding war. It is best to talk to your real estate agent, but here are a few tips for you...

1. Is your offer attractive?

You don’t know what the other buyers are offering, if they have any contingencies, if they are paying cash, or if they are asking for closing costs. Try to make your offer as attractive as possible without breaking the bank or leaving yourself without room for inspections or ample time for closing. This could simply mean offering more and asking for less. Your real estate agent can advise you on this.

2. Are you pre-approved?

This is a must when purchasing any home. Even if it is not a bidding war, having a pre-approval letter is something the seller will ask for before accepting any offer. With mortgage underwriters cracking down on loans these days, it is very important to get pre-approved.

3. Is the price right?

Typically when it comes to a multiple offer situation, the listing agent will let each buyer know they need to bring their highest and best offer to the table. Keep in mind this might mean something different for each buyer. Do not over stretch yourself financially just to win a bidding war. Make an offer based on your highest and best purchase price. Highest and best also includes the bottom line. The listing agent will plug in the amount of your offer along with any closing costs or things you are asking for within the contract to show the seller what they will net at closing. Whichever offer presents the highest and best under the most favorable terms typically wins.

It is not uncommon to see a multiple offer situation. It just depends on the house, the real estate market, and the demand. Talk to your real estate agent about competing in a multiple offer bidding war. Remember, do not over stretch yourself just to win the war. Make sure it makes sense for you and your situation.

10 Things You Need To Know Before Buying A Home

Thinking about buying a home? Check out these important tips to help you get started...

1. Do some research

Sounds obvious right? But so many buyers go into it blind. Although there are many professionals that will help you along the way, you will only help yourself if you do a little research before and during your home buying process.

So what kind of research? Use the internet to...

• Search for neighborhoods
• Research home styles
• what you might like or dislike in your next home
• school districts
• neighborhood features
• different activities in these areas

2. Have an idea of what you are looking for

After you do some research, make 3 lists...

List 1: What you HAVE to have

This is everything you can not live without. For example, if you have 3 children you might HAVE to have a 4 bedroom home.

List 2: What you would LOVE to have

These things are not necessarily a deal breaker, but would be nice to have. For example, an inground pool or a finished basement with a movie theatre.

List 3: What you DO NOT want

This means if a home has anything of these features, you will not purchase the home. For example, right next to the freeway or train tracks or maybe it has a pool and you don’t want the hassle.

Having these lists will not only make your life easier, but it will allow your real estate agent to show you the homes that best fit your wants and needs. Even the most experienced real estate agents are not mind readers, show them and tell them what you want so they can help you find the perfect home.

3. The Cost

There is more to buying a home than just the purchase price. Closing Costs, Inspections, Appraisal, Moving Fees, Homeowners Association, Homeowners Insurance, and other fees are often a surprise to unprepared buyers.

Closing Costs - Before you get the keys to your new home, a title company needs to complete a few tasks. Tasks like making sure the title is free and clear of all liens, order a survey of the property, record the new deed, and more. Closing costs depend on the terms of your purchase, the state and area you live in, etc.

Inspections - After your offer is accepted, typically you have a negotiated inspection period where you can inspect the property for any damage or repairs needed. Typically a Home Inspection, Pest Inspection, and Radon Test are completed. After the general Home Inspection you might have a specialist inspect specific elements that need further investigation such as the foundation, lead base paint, etc. Inspections can run you $250 and up, just depending on what inspections you have done. We highly recommend you have a home inspection before purchasing any property!

Appraisal - Even though your real estate agent will pull comparables of the property before you write the offer, after the offer is accepted an appraiser is hired by the bank to determine the properties value.

Moving Fees - Seem obvious, right? Obvious but often forgotten, make sure you factor in expenses for a moving truck, taking off work, hiring painters or getting new carpet. Give yourself an estimated budget and plan to save that chunk of money for your moving expenses.

Homeowners Association - If the home you are purchasing has a Homeowners Association, make sure you know what the fees are and if they yearly or monthly? Make sure you check to see if there are any transfer fees or “new owner” fees. Sometimes there might be a transfer fee from one owner to the next.

Homeowners Insurance - This is obtained before closing, but it is an expense you need to have on your list. Talk to your insurance agent and get quotes from several companies to find the best fit for you.

4. Build a move in fund

Okay, you have found the perfect home and it’s time to start decorating! But you just spent a good chunk of your savings on your down payment, inspections, closings costs, celebrating at an expensive restaurant, and you don’t have much money left. Don’t let this be you! Make sure you budget and save a good amount to help you hire a moving crew, paint, buy furniture, and for those unexpected things that could happen after moving in.

5. What a Loan Pre-Approval gets you

Typically when you write an offer on a home, you will present your loan pre-approval letter. This means you have spoke with a lender and they have ran your credit score and information to determine that you are pre-approved for a home loan. You will not be fully approved until a loan application is filed and processed. This does not happen until your offer has been accepted on a home and you go into contract.

So what will a pre-approval get you? You will be able to learn about your options when it comes to choosing a loan and how much money you need to bring out of pocket. This is your time to do some research to make insure that you choose the right loan for you.

6. Know the programs (203k, OHFA)

Are you a first time home buyer? Do you want to get a loan that will help you rehab your next home? Are you a resident fresh out of college, in debt with school loans?  Whatever your situation, make sure you know your options. When it comes to buying a home, hire a lender and a real estate agent who know how to help you with your unique situation.

HUD 203(b) loan - FHA will provide 97% of financing, and most closing costs can be  included in the loan. Contact a lender for details and restrictions.

HUD 203k loan - Offers a solution for a typical fixer-upper where you can roll costs of fixing up a home into your loan. Contact a lender for details and restrictions.

“Doctor” loan - If you are graduating medical school, chances are you have a lot of school loan debt. To lenders, debt like this will never let you buy a home. However, with this “Doctor” loan program, you can still buy a home! Contact a lender for details and restrictions.

OHFA - A program offered in Ohio to help First Time Home Buyers. You must be a first time home buyer and meet certain criteria. It offers down payment assistance opportunities and more. Contact a lender for details and restrictions.

7. Foreclosures and Short Sales

When buying a home, you will likely come across a Short Sale or a Foreclosure (Bank Owned, REO).

Foreclosure - A home that is owned by the bank after the previous owner stopped making payments. These properties are typically listed at or under market value based on the the selling price of other homes in the area and the condition of the home. Foreclosure do not take as long as short sales and are almost always sold at an ‘as-is’ condition. You can still have an inspection but the bank will typically not make any repairs.

Short Sale - A home that is in or close to foreclosure, and the homeowner is trying to sell the home to a new owner for less than they owe on the property. This is where the term “Short” sale comes from. Typically a short sale can take up to 6-12 months to close. This is a long process because the homeowner is negotiating with the bank to take a loss of the property in order to avoid foreclosure.

You can get a great deal on some foreclosure and short sales, but make sure you are aware of the timelines and the terms.

8. School districts

Whether school districts are important to you or not, this is a huge resale point. Take school district rankings into consideration when searching and purchasing your next home.  You can go to the Ohio Department of Education’s website, www.ode.state.oh.us to get the most recent score and evaluations of every school district in the state. Living in a great school district can make the area more appealing to more buyers. Living in an area with a low scoring school district may or may not deter buyers. Talk to you real estate agent to get  the details.

9. Know who is representing you

Anytime you start working with a real estate agent in Ohio they will present you with an agency relationship document called a “Consumer Guide”. This document explains what Buyer’s Agent, Seller’s Agent, Dual Agency, and more mean to you during the home buying process. Make sure you understand these terms and how they affect you. Having a real estate agent representing you means they are looking out for your best interests and have a fiduciary duty to you and only you.

10. Understanding Market value

When it comes to purchasing a home, your real estate agent will help you determine the market value of the home. In other words, what the home is worth in today’s market. Market value is constantly changing. What your home is worth today may not be the same a year from now. You can see what the market value of a home is by pulling what is called a “comparable market analysis”. This is where the sale price of comparable homes are pulled and compared to the home of interest. This should be done by your real estate agent before you write an offer on a home. The true value of your home is determined by an appraiser. The appraisal is ordered after you go into contract on a home during the loan process.