3 Important Factors That Affect Your Real Estate Transaction

By
Mortgage and Lending with GMH Mortgage Services LLC NMLS #126036

The real estate market is quite different from other markets and can be confusing for even the most experienced buyers and sellers. You will need the help of a real estate agent whether you are an experienced buyer or doing it for the first time.

Even with the help of an agent, you can educate yourself on some of the basic elements of a real estate transaction in order to make yourself more comfortable throughout the process.

Here are 3 things that you should be aware of before you start a real estate transaction:

Market Demand And Sales Price

There are many factors that determine the appropriate sales price at which you sell or buy a piece of property. Among them is the market demand and other recently sold homes in the immediate area that match the characteristics of your home. Real estate agents can prepare a comparative market analysis (CMA) to help you understand the recent activity in your market and the best price to list your home at.

If you’re a buyer, you can ask your agent to run a property listing report to show you all of the comparable homes that are currently listed in your area. You can even get set up on an automatic email update of any home that meets your criteria as soon as it comes on the market or there is a change in the listing price.

A professional real estate agent can be of great help when it comes to finding customers for your property. As a buyer, you can seek for the services of a real estate agent that will help you in getting a property at affordable prices.

Absorption Rate

This term is quite common among real estate agents, however a lot of consumers haven’t ever heard of it. It is the amount of time taken to sell a piece of property that is listed in a particular market based on the total housing inventory and the average monthly properties sold. The absorption rate can guide you if you are planning to make investment in a particular area or if you are planning on selling your home.

For instance, if you know the average time on the market for a home similar to yours is 90 days you can plan approximately when to list your property in order to move at a specific time. It’s important to understand that many factors determine whether a particular home sells within the average time frame, but it can be useful as a guide. A professional real estate agent is your best resource to find out the details on your local market absorption rate.

Escrow

There are many buyers and even sellers that have seen funds mishandled when making a private real estate transaction. The best way to prevent this from happening is by opening an escrow account. This account is virtually always opened with an independent third party on behalf of the buyer and seller at the beginning of the transaction.

Some escrow companies also handle the title research and title insurance elements of the real estate transaction. They hold all of the documents and money until the transaction has been completed. At the end of the transaction they balance all of the expenses and deposits and ensure that each party is compensated appropriately.

As always, working with a team of real estate professionals is the best way to navigate all of the elements of your next real estate deal.  Another primary team member and important relationship is with your trusted mortgage professional. It’s important to make a plan for where you will live after your property is sold. Getting a pre-approval is a great way to ensure a smooth transition. 

Posted by

For help or questions contact:

Joe Gonzalez

Senior Loan Consultant -  NMLS #126036
GMH Mortgage Services, LLC
625 W. Ridge Pike, Building C, Suite 100 | Conshohocken, PA  19428 | Direct: 610-355-8039 |  Cell: 610-739-6563

FHA Jumbo Loan, Mortgage King Of Prussia   FHA Jumbo Loan, Mortgage King Of Prussia   FHA Jumbo Loan, Mortgage King Of Prussia

This material is non-exclusively licensed to Joe Gonzalez and may not be copied, reproduced, or sold in any form whatsoever. Copyright ©2006-2014, Bring the Blog. All rights reserved. Terms of Service.
close

Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Fred Griffin 11/06/2018 04:57 PM
Topic:
Home Buying
Location:
Pennsylvania Montgomery County King of Prussia
Tags:
mortgages
home buying
real estate

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
749,753
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Good evening 

Thank you for sharing your information with us 

Have a great day.

11/06/2018.  

Nov 06, 2018 03:16 PM #1
Rainmaker
638,410
Bob Force (REALTOR®)
Weichert Realtor - New Colony - Mount Airy, MD
The FORCE in Maryland Real Estate

In my opinion there is a fouth.

Home Inspectors.

They can make or break a deal.  How they review the property with the buyer, especialy a first time home buyer can be scary.  A good one will take the time to discuss life expancy of devices and mot just say this is going to need to be replaced.

Nov 06, 2018 03:24 PM #2
Rainmaker
1,461,564
Jeremy K. Frost
Keller Williams Realty - Dripping Springs, TX
Associate Broker, CNE, CRS, ePro, PSA

Thank you for keeping us posted and up to date. Best of luck!

Nov 06, 2018 08:15 PM #3
Ambassador
3,652,873
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

I think that Bob Force makes a great point in Comment #2. So many buyers don't realize that a home is a highly complicated collection of structural and mechanical systems.  So many buyers, especially younger ones, look at the sexy open floor plan kitchen and are willing to anything - including leaving out an inspection contingency - to get a house.  

Nov 08, 2018 10:44 AM #4
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
252,819

Joe Gonzalez

NMLS# 134407 (610) 739-6563
Ask me a question
*
*
*
*
Spam prevention

Additional Information