The Buyer- Driving Tips- Because you are Driving

If I show a client a house, I get a call from the Listing Agent ASAP. All the Sellers want the Buyers. So if you are Buying, be prepared and enjoy this moment in the sun. From the AZ
Republic (edited by me):

1. Get preapproved for your loan. Get your money in order so that when you low ball the Seller that's trying to make $100k in only 6 months, they will know your offer is solid and there will be no finance problems.

2. It is always something! Even though there are plenty of homes out there, the resale market rarely has that perfect house for you. Know what you can do without, and if your married, know what you can put up with that your sig other has to have.

3. Often, the neighborhood is just as important as the house. Decide on area A and then scan that area for your dream home. If it is not there, then go to area B and look. If you still can't find the home of your dreams, reference tip # 2 and be patient, something will come up. Nervous and in a hurry should not be in your vocabulary right now.

4. Hire an Agent!! and hire one that listens to you and tell them what you want!

5. Get to know the value of your neighborhood. Go back a few years and see what the prices were and figure 10% a year from when the home was built. Ignore May 04 to Sep 05.

6. Use strategy. Find out what you can about the seller and their situation. Definitely know what they paid for the home and know why they are moving. If they have two mortgages, they need to sell. Use the sellers desired closing date in your offer if you can.

7. Don't be afraid to low-ball!! Again, the seller is more than likely going to make money, just not a gazillion from little ole you. Make everything good for the seller: the close date, fair in closing costs, home warranty purchase but make the price yours!

8. You have to buy right and not expect more than 3-5% over the next few years. Look at history and realize that the spike of last summer will have to blend in with the overall graph of home prices. In 10 years, homes are going to be more expensive than they are now, but that is pure economics and inflation. Things have to catch up with where they are now. Do I think implosion, no but a person that bought 2 years ago is not going to be able to double his price now. Some have the savvy buyer will not let it happen with a proper offer.

Have fun and be prepared, patient and smart.

Finding a Real Estate Agent

Interview more than one Agent!!

If you are buying, hire an Agent!!

If nothing else, do these things. Overall, any agent can sell your house. Just because an agent or "Team" has more signs around does not mean they are any smarter at selling. It generally means they hustle for more business than others. In fact, it could be a downfall in service if an agent has numerous listings or buyers demanding their attention. Find someone you like and think you can work with.

Don't let an agent "buy" your listing. What this means is do not go for the agent that comes in and declares that they can get a price way out of line with what the market is doing. They know that if they can get you to hire them, then they have the business and eventually the price will adjust to the market. Make sure the comparative sales are shown to you and are current and applicable to your house.

If you hire a friend or family, discuss the potential negative experiences. What if you don't like working with them after all? Discuss a "no fault" clause. If you decide to go another direction, it is nothing personal. If this is going to be a problem, find someone else. There is an agent on every corner these days.

Discuss how the agent is going to market your home and be realistic about your expectations. There is really only so much an agent can do to sell your home. They will not stand on the corner and wave signs, an Open House is more for the agent than the seller and office tours are more fluff than function. Ask about pictures, virtual tours, realtor.com enhanced listings and print advertising.

Finally, and most importantly, ask about commission. Will the agent pay any closing costs for you? Will the agent buy a home warranty for you if required? Everything is negotiable and should be addressed. If you are selling and buying within the same area, use the same agent and make sure your commissions are reduced. Do not let the agent get the full commission on both ends of the deal. It is your money and you are not asking anyone to perform brain surgery on you. People do this without an agent all of the time. If you do not ask, you will not receive!

Linda Cavanaugh's dilemma

My fair city has a crisis at hand. It seems our Mayor hired a consultant for the city and then his Realtor wife helped find her a house and earned a $12,000.00 commission.

As always, there is more to the story but that is a nut shell and to me an obvious conflict of interest. Sorry Linda, I am sure you are a good Realtor but in this case you needed to work for free or let someone else help the consultant. There are plenty of Realtors with time on their hands. Ideally, when serving the Public one has to be above it all and in this case, Jim is not and neither are you. Do not be greedy! I am sure you get enough clients, due to your husband's position, with no conflict of interest. Be content with those until his term expires.

Everything is Negotiable!

I am back from vacation in San Diego. Unfortunately, we were there during the heat wave so instead of 40 degrees cooler we had to suffer through only a 30 degree temperature drop. And it was humid. But it is still a great place to complain about the heat!

On to business. Greg Swann writes in todays Republic that last week he established that a buyer pays for everything in a home purchase transaction. I think this is a matter of perspective and since I did not see last weeks article, I will maintain that stance.

A used car transaction: price is $10,000 and the buyer pays full price. All of the money in the transaction is the buyers which becomes the sellers the second the deal is executed. As part of the deal, the seller stipulated that 3% would be paid to a car dealer if they brought him a buyer, which in this case occurred. So the seller gets 10k the second the deal closes and at second number 2, pays a car dealer $300 for bringing in the buyer. To me that was the sellers money.

If the price had been written, $9,700.00 with no car dealer and $10,000.00 with a dealer then a better case could be made that it is the buyers money paying everything.

I certainly agree that the buyer is bringing all of the money to the transition, but at some point it becomes the sellers and then at some point the money is shared with the Realtors. The seller is bringing product to the table and this has to be acknowledged.

Splitting hairs- yes!!

One thing I do agree with is that everything in a deal is negotiable. If you are buying, request some of the commission be put back in your pocket at escrow. See what the commission split is and go from there. 1% is a good place to start. Work this deal with your Realtor. Just as sellers should interview agents, so should buyers.

Ask for the stars and hope for the moon.