4.
Relocating Out Of Town?
Relocating? Do you desire to buy a new or second home to escape the cold weather four to six months of each year? If you answered yes to these questions, relocation can be a hair-raising experience. A roller coaster of emotions from choosing the right agent, to finding the right place at the right price and terms, to securing the loan if need be, to moving in. To make matters worse, there is much misinformation and disingenuous people in real estate. For example, there is an old saying in Florida, “If you live in Florida and do not know a friend in the real estate business you don’t have any friends!” It seems as though everybody and their brother (or sister!) is an agent or has a relative who is one!
It makes sense to become completely informed before relocating or buying your new or second home or condominium. The right real estate professional who specializes in exclusive buyer representation can help you make good sound decisions.
For a full-service personal coordinator with a full-service relocaton firm at no net additional cost, go to The Relocation TRIP Kit, which specilaize in relocation services for individuals and for companies without a relocation policy covering all expenses.
1. Choose The Right Agent - An Exclusive Buyer Broker - When looking for new or resale homes and condominiums, you need an advocate for you, protecting your interests in the home search. Using an exclusive buyer broker to help you is just like using a credit card to make a purchase. It does not cost you any more and it gives you added protection for that purchase. Most consumers do not realize that all merchants pay a “commission” to their bank for all credit card transactions. It is a cost of doing business. It is just the same using an exclusive buyer broker - the fee is part of the listing commission the seller pays to sell a home through their Realtor®. Trying to go it alone by buying directly from the developer, builder, or the agent and company whose sign is in the yard will not save you money. It gives you no representation (meaning no one is protecting you), and may end up costing you much in terms of time and money! The only thing you invest with an exclusive buyer broker is your time! Would you defend yourself in court without an attorney? Why, then, make one of the most important financial transaction in your life, without someone on your side protecting you, especially when it’s at no additional charge to you!
2. Inspect, and Re-inspect - Go over the property inspection report with a fine tooth comb. Do not be afraid to re-negotiate if necessary, and do not be afraid to back out of the deal if there are significant problems the seller or builder will not correct. Make sure a professional inspector who belongs to a national inspection organization, such as NAHI or ASHI performs the inspection, and ask for references. For condo purchases be sure to review the by-laws and association fees before the closing. Do not take anything for granted inspect everything!
3. Imagine The Property Vacant - Do not be dazzled by beautiful furniture and decorating…it leaves with the owner. Conversely, a vacant home or condo will appear bigger than it is. Be sure your furnishings will fit the new floor plan. Take measurements of your furniture before going on your first showings.
4. View Several Homes and/or Condos - See at least 4 to 8 properties. Ask your agent for all available appraisal (historical) data, as well as data on all competing (available) properties. Remember that your exclusive buyer broker will show you all available properties.
5. Use Your Team - By aligning yourself with exclusive buyer broker you will have an entire team at your disposal. Use your lender, home inspector, insurance agent, and real estate attorney. Each of them should work hand in hand exclusively for your benefit.
6. Be A Detective - Check out all costs and expenses before you sign, including utilities, taxes, and insurance, maintenance, condominium and homeowner dues if applicable. Make sure all utilities are on (gas, water, and electricity) so you can inspect everything in working order. Ask many questions and be very detail conscious.
7. Do A Final Walk Through - Visit the property after all furnishings and belongings have been removed. Be sure there are no surprises (if possible before closing). Be positive the property is left exactly as you had agreed upon in the contract. Often times, things are overlooked that could have been spotted in the final walk through. Your contract should specify your right to a final walk through just before the actual closing, typically within 48 hours.
8. If It Is Not In Writing, It Does Not Exist - All promises and discussions are to be in writing. Do not make any assumptions or believe any assurances. Even the best intentions may be misinterpreted. Ask your exclusive buyer broker if he/she keeps an ongoing log, in writing, of all significant discussions, and get the seller’s written approval for all agreements, changes, and addenda. Be open, honest and up front with your team. You can be assured they are on your side, not the sellers, if the brokerage only represents buyers exclusively.
According to the Consumer Federation of America,
when interviewing real estate agents or buyer brokers to buy a home,
“Make certain at least one is a Buyer Broker that works exclusively with buyers.”
The CFA recommends asking the following seven important questions:
1. Will you (the agent) represent my interests only or those of the seller?
2. Do you or your brokerage represent any sellers or builders?
3. Do you have full access to the Multiple Listing Service?
4. Will you show me for sale by owner properties?
5. Can you give me the names of several current and former clients?
6. What experience do you have as an agent and Buyer-Broker? What other designations or credentials do you have?
7. Does your commission amount vary? What about bonuses, inducements, or rebates (kickbacks)? Do you give them back to me the buyer? (After all, the buyer is paying for it!)
No matter where you are moving to nationwide, please contact our office.
There is never any cost for our relocation or referral service!
5.
Read This Report Before You Sign Anything!
The right or wrong decision when signing your home mortgage can mean thousands of dollar's difference in interest paid. There are very important considerations to evaluate before you commit to a mortgage and promissory note. For many of us, our mortgage payment is the most important financial decision we will ever make. It makes sense to know as much as possible about the financing of your home. Take the time to investigate all of your options!
Typically, the excitement of the new home purchase reduces the mortgage to not much more than an afterthought. What you read here could save you hundreds or even thousands of dollars. Your Exclusive Buyer Broker professional has established relationships with the top lenders in your area. By aligning yourself with a true Exclusive Buyer Broker, you insure that all the financial steps are taken care of properly and economically.
1. Consider Lenders Recommended By Your Agent - Lenders are often more flexible with buyers of agents that have done business with them previously. The lenders and your Exclusive Buyer Broker work effectively together, and may make a difference in helping you find the right lender to qualify for financing if you are “tight on the ratios”. Your Exclusive Buyer Broker will assist finding the most economical financing possible. The right financing can save you thousands of dollars over the life of your loan!
2. Do Not Attempt Paperwork Alone - All the paperwork required to obtain financing for a home could be quite intimidating and frustrating for a homebuyer. Make sure you have your lender help you with all the paperwork. Get help from your Exclusive Buyer Broker. Their expertise will help alleviate the stress and it will prove to be invaluable before you sign your mortgage.
3. Look at All Financing Options - Make sure you see at least 4 loan programs for your home purchase. Lenders have at least 10 programs and should work with you and your exclusive buyer broker on deciding what is best for your circumstances. Evaluate all your options. After all it is your money - not theirs!
4. Demand Service - Most of the time there is little difference between a bank, savings and loan, or mortgage brokers when it comes to the competitiveness of their loan rates. The difference is in the service they provide. It is their job to serve you! You want to get the loan approved and move into your new home as quickly as possible. Do not overlook the fact that you are the one spending the money and they are the ones who should cater to your needs. Do not let the process become so intimidating that you lose that understanding.
5. Stay in Complete Touch - You should receive a written report from your lender about every step. This will insure that no details are overlooked and there will be no surprises. Your purchase contract may call for an “opinion letter” to be sent to the sellers. Make sure your lender and Exclusive Buyer Broker follows through for you.
6. Negotiate a Flexible Loan - Do not just accept the terms they lay down in front of you. Lenders are in the business of loaning money and they want your business. Make sure you examine every option available to you. If you negotiate a variable rate loan, many lenders have the ability to move you into a fixed loan if rates start rising. Make sure that you understand whether this is an option in the loan terms you are considering.
7. Do Not Give Up If The Underwriter Says No – Being turned down for a loan is not always a final decision. Going to a higher authority can sometimes get you the loan, but do so with the assistance and compliance of your lender and exclusive buyer broker. Many time’s special circumstances when explained properly to the person in charge, will win you the loan.
8. Do Not Wait For The “Bottom of the Market” - The odds of you hitting the bottom of the market are about like the odds of you hitting the state lotto! You will almost never hit the bottom of a market. Trying to time the decision exactly right is often costly. It usually causes a person or family to miss out on the opportunity to purchase a very nice property. You are better off simply negotiating the best rate and terms you can at the time you find a property. If interest rates go down, you can refinance. This is a much better approach because you will not miss the property you have spent so much time locating.
9. Honesty Is The Best Policy With Your Lender - Your lender wants to help you with your loan. The only time they are paid is when you are approved and the loan “closes.” The more information (good or bad) you provide your lender, the easier it will be for them to get an approval. It helps them present the loan in the best light, because they will find out everything credit wise eventually. This in turn helps the loan get the highest approval rating.
10. Become Completely Educated - Pick your lender's brain. Lenders will teach you all about your various options, even if you have not found the right property yet. They will be very patient with you while you are looking, especially if you have aligned yourself with the right agent. They understand all the up-front work will pay off in future business. Your Exclusive Buyer Broker will then continue to recommend clients to the courteous and service minded lender on down the line.
11. Get Pre Approved. Lenders will provide you with a letter of pre-approval. The money goes for a mortgage credit report, which you would pay anyway once you applied for financing. By getting pre approved, and not just pre qualified, you know exactly what financial parameters to stay within. Your exclusive buyer broker and lender will consult with you and help you get approved for the loan that best fits your needs. Getting pre approved for a loan is easier than you might have thought and you may be able to get a larger loan than you expected. Remember that being pre approved is the same as being a “cash” buyer, which could save you money in negotiating a lower price or giving you a competitive advantage over competing buyers.
According to the Consumer Federation of America,
when interviewing real estate agents or buyer brokers to buy a home, “Make certain at least one is a Buyer Broker that works exclusively with buyers.”
Thank you for taking the time to read this report! There is no cost for our relocation or referral services. Take the time now to learn more at one of our consumer workshops or at a personalized buyer workshop.
Talk with your Buyer's Resource agent to find a suitable lender to provide a mortgage pre-approval.
6.
Buyer Brokerage:
Changing the face of real estate
by Andrew Show
Much has been said about buyer brokerage and the profound changes that have occurred as a result of it in our profession. Many continue to believe that it is the consumer who has, and still is, demanding representation in the biggest financial transaction of their life.
The benefits to the consumer are obvious. It is very easy to explain what we do, and that our relationship with our clients will not change. There have been massive attempts nationally and statewide to change common law. Despite the new agency law, the home buying consumer understands the inherent real or potential conflicts of interest on in house transactions. This is why as an exclusive buyer broker I will not change my practice. I believe the change in law December 13, 1996 will actually help all exclusive buyer brokers in recruiting agents, in agent production, and in brokerage profitability. I also feel that a listing company that represents sellers exclusively would have a tremendous marketing advantage over other traditional listing companies. The first major seller brokerage to do so could further erode the market share of the competition.
The common misconception among agents is that if you only work with buyers you'll loose half or more of your income potential. In reality, being an exclusive buyer broker makes it easy to distinguish oneself in a very crowded agent market and to have a marketing advantage over traditional agents. All of our clients are under agency contract, just as a seller would be on the ‘listing’ side. Further, clients are financially pre-approved which means our agents work with motivated buyers.
If you set ‘agency law’ aside for a moment, consider this. Your brokerage most likely earns referral fees from other brokerages outside your service area, right? Your brokerage most likely pays referral fees to other brokerages outside their service area, right? The only difference is that we also earn fees for referring our clients who have homes to sell inside our service area! With the consent of our clients our agents can earn almost half what they would have normally earned and not spend any time, effort, or money other than setting up the referral. This is additional non-energy income for the agent.
Agent costs are considerably reduced
both in monetary terms and in time as well.
Agent costs are considerably reduced both in monetary terms and in time as well. Since we enjoy such a high success rate we can work with less clients to achieve the same dollar production, this in turn means more free time for family and other activities. Exclusive agents work smarter, not harder.
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