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Consumers today have an inadequate level of understanding about the process, opportunities and risks facing them in real estate transactions, and they need to be able to identify a real estate agent that they can rely on for relevant, factual information...as opposed to the constant stream of negative real estate information they are exposed to from national media.
Buyers and sellers alike also need to know that while friends and relatives are well meaning, their advice is usually just based on opinions, not facts.
Our industry has changed dramatically over the past few years. The mortgage loan approval has tightened up. There are short sales (selling a property for less than owed) that is a very involved process and quite frustrating process for both buyers and sellers.
Then there are foreclosures (some damaged, some not) but banks are not "traditional" sellers and they just want to move these homes in "as-is" condition, putting the burden on the buyer to make an offer with eyes wide open, making private home inspections extremely important in these transactions. I did have one bank foreclosure that was in really bad shape write into the offer that while they would allow the buyer to do a home inspection, but it would not be a reason to withdraw their offer and it was a plain and simple "as-is condition" offer!
In January of this year, roughly 43 out of 100 properties sold are distressed sales.
A knowledgeable, experienced agent is critical today more than ever.
Sellers should not pick an agent just because they were offered a lower fee. Putting the house on the MLS is the easy part. The real work comes in when the offer comes, and if there are problems an agent who reduced their fee might not have the knowledge to work through the transaction. Plus, they might feel it is not worth their time because they agreed to work for less. This is not to say that all agents that reduce their fees are not competent, just that sellers need to consider more than fees when interviewing agents.
A common mistake buyers are making today is thinking that foreclosures and other distressed properties are desperate sales and that they can make a low offer. The media has the public thinking that banks will take anything to unload these properties. I can't speak for the nation, but here in Macomb County, MI, this could not be further from the truth.
There are a number of buyers looking at these properties, and most likely there will be more than one offer on a foreclosed house. The bank prices these properties for a quick sale and contrary to what the media and public thinks, the house sells for higher than asking price! If an agent tells you there is more than one offer....believe them!! Mortgages and financing type also affect both buyers and sellers. Gone are the days of "creative" financing, but there are still many factors involved with different types of loans that are available today. FHA, VA, and MSHDA loans still allow for minimum down payments, but these types of loans also may require that either the buyer or seller do repairs. Then, there are "re-hab" loans which allow for the cost of repairs to be added to the buyer's loan amount to give money after closing to complete repairs.
With all the choices, options, and complexities involved in today's real estate, it is extremely important for both buyers and sellers to have the right agent on their side.
Please give me a call and I'd be happy to provide you no obligation consultation. You can reach me at 586-438-3038.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.