Buyer Tips -

Buying

Why You Should Work With a REALTOR®

Not all real estate practitioners are REALTORS®. The term REALTOR® is a registered trademark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION of REALTORS® and subscribes to its strict Code of Ethics.  Here are reasons why it pays to work with a REALTOR®

You’ll have an expert to guide you through the process

Buying or selling a home usually requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multi-page settlement statements. A knowledgeable expert will help you prepare the best deal and avoid delays or costly mistakes.

Get objective information and opinions

REALTORS® can provide local community information on utilities, zoning, schools, and more. They’ll also be able to provide objective information about each property. A professional will be able to help you answer these two important questions: Will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?

Find the best property out there

Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your REALTOR® to find all listed properties.

Benefit from their negotiating experience

There are many negotiating factors, including but not limited to price, financing, terms, date of possession, and inclusion or exclusion of repairs, furnishings, or equipment. In addition, the purchase agreement should provide a time period for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.

Property marketing power

Real estate doesn’t sell due to advertising alone. In fact, a large share of real estate sales comes as the result of a practitioner’s contacts through previous clients, referrals, friends, and family. When a property is marketed with the help of a REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally prescreen and accompany qualified prospects through your property.

Real estate has its own language

If you don’t know a CMA from a PUD, you can understand why it’s important to work with a professional who is immersed in the industry and knows the real estate language.

REALTORS® have done it before

Most people buy and sell only a few homes in a lifetime, usually with quite a few years in between each purchase. And even if you’ve done it before, laws and regulations change. REALTORS®, on the other hand, handle hundreds of real estate transactions over the course of their career. Having an expert on your side is critical.

Buying and selling is emotional

A home often symbolizes family, rest, and security – it’s not just four walls and a roof. Because of this, home buying and selling can be an emotional undertaking. And for most people, a home is the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you stay focused on both the emotional and financial issues most important to you.

Ethical treatment

Every member of the NATIONAL ASSOCIATION of REALTORS® makes a commitment to adhere to a strict Code of Ethics, which is based on professionalism and protection of the public. As a customer of a REALTOR®, you can expect honest and ethical treatment in all transaction-related matters. It is mandatory for REALTORS® to take the Code of Ethics orientation and they are also required to complete a refresher course every four year.

Reasons to Own Your Home

 Tax breaks

The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.

Appreciation

Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.

Equity

Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.

Savings

Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.

Predictability

Unlike rent, your fixed-mortgage payments don’t rise over the years, so your housing costs may decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.

Freedom

The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.

Stability

Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.

Loan types to consider

Brush up on these mortgage basics to help you determine the loan that will best suit your needs:


Mortgage terms: Mortgages are generally available at 15-, 20-, or 30-year terms. In general, the longer the term, the lower the monthly payment. However, you pay more interest overall if you borrow for a longer term.


Fixed or adjustable interest rates: A fixed rate allows you to lock in a low rate for as long as you hold the mortgage and, in general, is usually a desirable choice if interest rates are low. An adjustable-rate mortgage is designed so that your loan’s interest rate will rise as market interest rates increase. ARMs usually offer a lower rate in the first years of the mortgage. ARMs also usually have a limit as to how much the interest rate can be increased and how frequently it can be increased. These types of mortgages are a desirable choice when fixed interest rates are high or when you expect your income to grow significantly in the coming years, or if you plan on living in your home for only 5 – 10 years.


Government-backed loans: These loans are sponsored by agencies such as the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA), and offer specific terms, including lower down payments, or $0 down payments, or reduced interest rates to qualified buyers.


Note: Slight variations in interest rates, loan amounts, and terms can significantly affect your monthly payment.

Tips for Buying in a Tight Market

Increase your chances of getting your dream house in a competitive housing market, and lower your chances of losing out to another buyer.

Get pre-qualified for a mortgage – You will be able to make a firm commitment to buy and your offer will be more desirable to the seller.

Stay in close contact with your real estate agent to find out about the newest listings – Be ready to see a house as soon as it goes on the market – if it’s a great home, it will go fast!

Scout out new listings yourself – Look at Web sites such as REALTOR.com, browse your local newspaper’s real estate section, and drive through the neighborhood to spot For Sale signs. If you see a home you like, write down the address and the name of the listing agent. Your real estate agent will schedule a showing.

Want to search listings on the go?

Access real-time MLS data
Get the MLS app

Tips for Buying and Selling

Be ready to decide – Spend a lot of time in advance deciding what you must have in a home, so you won’t be unsure when you have the chance to make an offer.


Bid competitively – You may not want to start out offering the absolute highest price you can afford, but don’t go too low to get a deal and risk having your offer rejected. In a tight market, you’ll lose out!


Keep contingencies to a minimum – Restrictions such as needing to sell your home before you move or wanting to delay the closing until a certain date can make your offer unappealing.


If you’re selling your house and buying another – In a tight market, you’ll probably be able to sell your house rapidly. Or talk to your lender about getting a bridge loan to cover both mortgages for a short-period.


Don’t get caught in a buying frenzy – Just because there’s competition doesn’t mean you should just buy it. And even though you want to make your offer attractive, don’t neglect inspections that help ensure that your house is sound.