Tips & Tools : REALTOR®

RealEstate.com expands to 1,200 agents, plans further growth

Bru5W — Fri, 15 May 2009 18:08:00 GMT

Real Estate Broker's Insider, Jeff Ostrowski, May 2009 issue

RealEstate.com, Realtors is the rare brokerage that closed more deals and generated more commissions in the fourth quarter of 2008 than in the fourth quarter of 2007.

The company says its closings spiked 55 percent over the year as RealEstate.com embarked on an aggressive strategy of recruiting agents and buying companies.

Launched in March 2006, RealEstate.com, Realtors now has 1,200 agents in 20 markets. It aims to continue that growth. “Our company is starting in one of the worst real estate economies in our lifetime,” says Victor Vaca, national vice president of sales at RealEstate.com.

To keep growing, RealEstate.com, a division of Charlotte-based Tree.com, has built a call center recruiting team, Vaca says. The company has bought lists of agents from multiple listing services, and its recruiters are calling agents to pitch the business model.

A primary selling point: The leads generated by the popular RealEstate.com site. In March, it ranked 20th among Hitwise’s list of the most popular real estate websites. Vaca’s pitch: “Say you’re doing 10 deals a year. Imagine doing all the deals you’re doing now, and we can feed you another five to 10 transactions a year.”

To generate leads, Vaca says, RealEstate.com is spending “a ton” on search engine marketing and search engine optimization. A typical RE/MAX agent, Vaca says, might spend $40,000 to $60,000 a year to generate online leads, RealEstate.com is doing the lead generation for them.

“We are going to fight this very expensive battle,” he says. Agents do pay for the leads. For closed transactions where the lead came from RealEstate.com, the agent pays a 35 percent “success fee.” Even so, Vaca says, it’s not all about the leads. “You don’t come here for the leads. You come here for the leadership,” Vaca says. RealEstate.com brokers train agents how to respond to leads and how to build up their repeat and referral business.

But responding to leads is a key part of the business model. A consumer who makes a request on RealEstate.com can be on the phone with the call center in seconds, and

on the line with an agent in a couple minutes, Vaca says. “We want to provide a worldclass consumer experience to the customer that’s on the phone,” he says.

Leads are doled out based on where an agent does business and also based on the agent’s success in converting leads. Vaca admits the demands of responding instantly to leads can be grueling, so agents are able to call time-out. If an agent will be out with a client or dining with her family, she can hit an online “pause” button that means leads won’t come to her for a time.

But in a slow market, agents find RealEstate.com’s lead machine a boon rather than a burden. “They love having leads delivered to their cell phones,” Vaca says. RealEstate.com has grown not only through recruiting but also through acquisitions. Its most recent deal, announced in late 2008, was for Tampa, FL-based New Homes Realty Inc., which had 200 agents and brokers.

In 2007, RealEstate.com bought Distinctive Homes and Land of Tucson, AZ, and it also took over a brokerage in Salt Lake City. RealEstate.com has kept many of the agents after mergers, in part by keeping on a manager from the acquired company. “Trying to keep that family whole is important,” Vaca says. RealEstate.com has offices from New England to Southern California, but Vaca notes that the company isn’t investing much in office space. Its Los Angeles office reaches through Central California because most of the agents work from home.

“We opened with 3,000- to 4,000-square-foot offices, but we can function with half that space or less,” Vaca says. “We have a very efficient, very scalable operation.”

Contact: Victor Vaca, RealEstate.com, Realtors, www.realestate.com.

Finding a REALTOR® to List Your Home

RE.com Tips & Tools — Mon, 16 Jul 2007 15:09:00 GMT

Asking the right questions can help you choose the right REALTOR® to sell your home.

Finding a REALTOR® to look out for your best interests can make the difference between getting a good offer and a great offer. The questions below can set you on the right path for finding your REALTOR®.

1. Are you a disclosed dual agent?

This term means the REALTOR® is allowed to act on behalf of both the person selling the home and the buyer. This can be a conflict of interest in that the price and deal may be good for one party but not the other. Hire a REALTOR® who will represent only you. That way, you may avoid some lowball offers.

2. Can you provide me with references?

Ask for at least three references from satisfied customers who have sold homes in a similar price range in your area. And don’t just get the list -- be sure to call all the names for a chat.

3. What are your professional qualifications?

Look for someone who works as a full-time REALTOR® and is a licensed real estate agent. REALTORS® are real estate professionals who belong to the National Association of REALTORS®. They subscribe to a strict code of ethics and are committed to ongoing education in the real estate industry.

4. Are repeat or referral clients a large part of your business?

A list of satisfied customers is a sign of success.

5. What’s the average length of time the homes you’ve listed have been on the market?

If it takes too long to sell, a house may be overpriced. A reasonable time frame is 90 to 120 days. Beware of agents who might deliberately give high listing prices just to sign new clients.

6. What’s the average difference between the asking and the selling price of the homes you list?

If the prices are close, the agent did a good job of setting the listing price.

7. How many properties have you listed over the past six months?

Look for a REALTOR® who typically lists one or two homes a month.

8. How many of these homes have sold?

It’s a good idea to choose a REALTOR® that sells all or most of the homes he or she lists.

9. In what areas of my city do you normally work?

If you are interested in a particular area, look for someone who knows it well. Such REALTORs® will have expertise in finding just what you want -- they will also have good contacts with other REALTORs® and will be familiar with prices in your region.

10. How much will this cost?

Most REALTORs® are paid by commission, often 4 to 6 percent of the selling price and, in most parts of the country, they are paid by the seller. However, there may be other fees and administrative costs, so ask.

11. How will you arrive at a listing price?

The REALTOR® will recommend a listing price based on an up-to-date market analysis of your area. This will focus on recently sold homes that are similar in size, style and features to yours. The accuracy of the listing price is important because you can discourage those potential buyers who have higher or lower budgets from seeing it. It’s also a good idea to specify in the listing agreement that offers will only be accepted from buyers who have been pre-approved for a loan.

12. Are you my only contact?

A team effort may help sell your home because REALTORs® often have more than one client. A REALTOR® with many listings may hire people to handle some of the administrative work, for instance. Nevertheless, your REALTOR® should be the only one to show your home, negotiate the sale and handle the transaction. If your REALTOR® is planning to be away in the near future, make sure you meet and are happy with the REALTOR® who will be filling in during that time.

13. How often will I hear from you?

A daily telephone call, fax or e-mail is not unreasonable. Some offices have software that automatically notifies you whenever someone tours your home. Your REALTOR® should let you know about every tour of your home and give you feedback from potential buyers or their agents.

14. What are your sales tactics?

There are many strategies for attracting buyers both from your area and from far away. Your REALTOR® should write up a listing of your home, perhaps with a picture, to put on the local and national Multiple Listing Service. The Internet has become very important in marketing real estate. As well, he or she will hold an open house for REALTORs®, a few public open houses on weekends, plus by-appointment tours of your home for prospective buyers. A detailed property fact sheet with specific information about your home and any improvements should also be available.

15. What will the listing agreement cover?

Most contracts name the beginning and end dates, and these should be negotiable. Giving a REALTOR® three to six months to sell your home is reasonable. REALTORs® cannot guarantee they will sell your house within a given period of time because the real estate market is often affected by factors outside his or her control.

16. What can I do to boost my selling price?

Your REALTOR® should offer advice on what you can do to make your home more attractive to potential buyers. For example, this could mean painting your bright red foyer a more subdued neutral shade, making some minor repairs or clearing out your clutter. Fresh flowers in the living room are also a nice touch, as is the smell of fresh baking in the kitchen.

Remember, the quicker you get your asking price, the sooner you can move on to your new life in your new home.

Who's Who in a Real Estate Deal

RE.com Tips & Tools — Wed, 30 May 2007 18:49:00 GMT

Realtors, lenders, appraisers and title agents can help you buy or sell a home.

If you’re buying or selling a home, you’ve probably already realized that it takes a lot of people to consummate a successful transaction, and it can be confusing to keep track of all these people and their responsibilities. This rundown of the cast of characters may help:

Real estate brokers represent home buyers and sellers in the real estate transaction. Buyers and sellers typically are represented by two different brokers; however, in some cases, one broker may represent both the buyer and the seller in what’s called a "dual agency." Brokers are sometimes referred to as "listing" or "cooperating" brokers. Listing brokers are real estate brokers who are hired to sell, or list, the home. Cooperating brokers are the real estate brokers who represent the home buyer in a real estate transaction.

Real estate salespeople act as agents of real estate brokers. Salespeople (otherwise referred to as agents) help buyers locate homes they want to purchase, help sellers locate buyers for homes they want to sell, and help buyers and sellers negotiate the terms of their deals. Salespeople also complete many of the other tasks that are necessary to close the transaction. (Similar to brokers, agents are referred to as "listing" or "buying" agents. The listing agent is the the agent who represents the seller and the buying agent is the agent that represents the buyer.)

REALTORS® are real estate brokers and salespeople who are members of the National Association of Realtors, a trade organization. Most, but not all, brokers and salespeople are REALTORS®.

Some real estate salespeople hire assistants, who create marketing brochures and flyers, place advertising, schedule home tours and perform other tasks. Assistants who specialize in organizing transaction-related documents are called transaction coordinators.

Mortgage brokers help borrowers select loan products, submit borrowers’ loan applications to lenders and complete much of the paperwork necessary for borrowers to obtain financing for their home. Mortgage brokers typically are paid by lenders.

Lenders evaluate and approve loan applications and then lend money to those qualified borrowers so they can buy and own real estate. Community banks, commercial banks, mortgage banking companies and credit unions are among the types of lenders that offer real estate loans.

Appraisers prepare reports on the value of real property for the benefit of lenders and buyers. Appraisers must be state-licensed.

Home inspectors prepare reports about the condition of the accessible areas and major components of real property for the benefit of buyers. (Real property is defined as land and all the things that are attached to it – including your house.) Home inspectors must be licensed in some states.

Other inspectors may prepare additional reports about the structural soundness of the home, the presence of wood-destroying pests (i.e., termites), environment hazards and so on.

Closing attorneys and escrow officers make sure all of the documents and funds associated with real estate transactions are properly organized, handled and processed.

Title companies research the chain of ownership of real property and any known liens or encumbrances and then issue title insurance, which protects lenders and owners from undiscovered claims of ownership of the property.

Title officers represent title companies and also perform the functions of closing attorneys in some states.

How To Sell a House Fast!

RE.com Tips & Tools — Thu, 12 Apr 2007 21:14:00 GMT

The right marketing strategy can help you find a buyer for your home in short order.

Homeowners cite a myriad of reasons why they want to sell their home in a hurry. A job transfer, the imminent arrival of a new child, retirement, encroachment of development or changes in local zoning laws or school district boundaries may prompt a sudden decision to move. Moreover, most sellers simply would prefer to avoid the uncertainty and inconvenience of having their home on the market for many weeks or perhaps even months.

A fast sale depends first and foremost on setting an asking price that will entice a ready, willing and able buyer. But an attractive price isn't the only strategy that can lead to a quick sale. Here are some other suggestions:

Choose your REALTOR® with care
The right REALTOR® may be the most vital element in your ability to sell your home in a hurry. Interview at least three candidates and ask each of them these questions:

How would you market my home to potential buyers?
How would you position my home for the best possible offer in a short time frame?
How would you respond if my home doesn't receive a strong offer within, say, a week or 10 days?

The REALTOR® you select should be able to suggest quick and easy improvements to enhance your home's appeal, price your home to meet your objectives and accommodate local housing market conditions, and quickly execute a back-up plan if the original scheme doesn't produce the results you want.

Focus on your home's strengths
A marketing plan that emphasizes your home's unique characteristics should be a boon towards a quick sale. If you're willing to include appliances, furniture, a home warranty or other extras, the marketing effort should to feature those inducements to make your home as appealing as possible.

Hire a home inspector
A pre-sale inspection of your home can uncover problems that might derail a deal and enable you to make repairs in advance or disclose defects early on. A pre-sale inspection can also be useful for marketing your home to potential buyers.

Make cosmetic improvements
Sellers who want to spruce up their property quickly can do well to focus on the exterior front of the home, master bedroom and bathroom, and kitchen. An attractive drive-up appearance creates "curb appeal," which entices buyers into the home, while an upgraded master suite and kitchen are often priority items on home buyers' wish lists. Fresh flowers out front, new light fixtures in the bedroom and new cabinet hardware in the kitchen are examples of three projects that can be completed in just a few hours. A quick tour of comparable homes on the market can net other ideas as well.

Welcome short-notice showings
Buyers rarely purchase a home sight unseen. That means your home needs to be available for showings at all times if you want to find a buyer as quickly as possible. Be ready to take a walk, run an errand or visit your neighbors on short notice so prospective buyers will be able to tour your home at their convenience and leisure.

5 Ways to Help Your REALTOR®

RE.com Tips & Tools — Thu, 08 Mar 2007 20:14:00 GMT

Ready, willing and able home buyers get the most time and attention.

A REALTOR® can be a home buyer’s best friend. But some buyers behave in ways that are counterproductive to the REALTOR’s® efforts. Here are five ways you can help your REALTOR® help you achieve your home-buying objectives:

1. Identify your must-haves. Savvy home buyers have a clear vision of what they want and are able to differentiate between needs, which are must-have criteria, and preferences, which are desirable but not absolutely necessary. The better you define your must-haves and preferences, the better the REALTOR® will be able to locate a home that will match what you really want.

2. Disclose your top dollar. No one wants to overpay for a home, but if the REALTOR® doesn’t know how much you can afford to spend, you may waste a lot of time looking at homes you won’t want to buy. It’s okay to state that you’d prefer to spend less than your top-dollar, but don’t artificially limit your choices to a lower price range if you’re willing and able to spend more.

3. Get pre-qualified. A loan pre-qualification letter can help you demonstrate to the REALTOR® and the seller of the home you want to buy that you’re financially qualified and able to purchase the home. Even better is a pre-approval letter that says your financing is subject only to an appraisal and title report.

4. Get set. REALTORS® typically devote the most time and attention to buyers who are ready to transact. If you need to sell your current home before you purchase a new one, you can demonstrate your readiness by putting your current home on the market. If you’re a renter, be sure you have a month-to-month tenancy or be prepared to break your lease agreement. And if you’re not planning to move within the next few months, tell the REALTOR® when you expect to be ready.

5. Be honest. Giving frank feedback about homes you’ve seen on the market can help the REALTOR® understand your preferences and perhaps negotiate changes to a home to mitigate characteristics that you don’t like. For example, if you want to buy a home that has tattered carpets or an unusual paint job, the seller may be willing to update those items if you stipulate those conditions in your contract.

How to buy a house fast: Research first

RE.com Tips & Tools — Wed, 17 Jan 2007 20:26:00 GMT

Gathering information is crucial when you need to buy a home in a hurry.

Your employer has asked you to relocate across the country, and you’ve agreed to make the long-distance move. Now, you need to buy a home in your new community, and you need to act fast! Where should you start?

Research your destination
Use the Internet to find out as much as you possibly can about the different communities in your new locale. If you have school-aged children, you’ll probably want to make information about the local schools your top priority. You’ll also want to pinpoint your new job location and figure out how far you’ll be willing to commute to get there.

Find a REALTOR®
A savvy REALTOR® should be able to help you shop for a home that will fit your budget and meet your needs. The REALTOR® should send you information about homes on the market that you might want to consider and arrange for you to tour those homes when you make your house-hunting trip to the area. Most employers will reimburse your expenses for one or two trips before you move, so you can find a place to live.

Research for-sale homes
Shop online to find out about houses that are for-sale in your new community and identify some that might suit your needs. Your preliminary research isn’t likely to yield the exact home you’ll eventually buy, but it will help you understand your choices and communicate your needs to your REALTOR®. Send a list of the homes you like to your REALTOR®, but be open to his or her suggestions as well.

People who relocate a long distance are often surprised and dismayed when they find out how much a comparable home will cost in their new community. Don’t underestimate the differential in housing costs between different parts of the country, and be sure to get pre-approved by a lender for your new mortgage so you’ll know how much you can afford to spend.

If you expect to move again within a few years, you may want to purchase a home that could have a better resale value in the local community, even if that home doesn’t perfectly suit your needs. For example, a larger family-style home may be easier to resell than a smaller or atypical style of home.

Be as open and honest as possible with your REALTOR® since you don’t have time to tour houses that aren’t in your price range or won’t meet your needs. Holding back information about your budget, housing priorities or time constraints is especially counterproductive when you need to make such an important decision in a short timeframe.

Consider your options
If you need to sell your current home before you can purchase a new one, you may need to obtain a bridge loan to finance your purchase or you may need to rent a home for a while when you first move to your new community. And keep in mind that you may need to rent if houses are selling slowly in your current community or quickly in your new location.

Make a must-haves checklist
A checklist is a great way to focus on your housing requirements. Do you need to live in a particular school district? How many bedrooms and bathrooms would you be willing to accept? Which amenities are necessities for your lifestyle? Take your checklist, a notepad and pen, and a camera with you when embark on your house-hunting trip to your new community.

Step 3: Find the Right REALTOR®

RE.com Tips & Tools — Wed, 17 Jan 2007 16:23:00 GMT

Choosing a REALTOR® is a key decision when selling your home.

Once you have decided to list your house, your next step is to find a REALTOR®. It doesn’t need to be overwhelming if you follow the tips below.

Know the difference

Many people assume there is no difference between a real estate agent and a REALTOR®, but that is not the case. A real estate agent is someone who is licensed to buy or sell homes. A REALTOR® is a member of the National Association of REALTORS®, the nation’s largest professional real estate organization. A REALTOR® is accredited through NAR and must follow the organization’s code of conduct.

Have choices

The REALTOR® who helped sell your Aunt Jo’s house across town may not be the best person to sell your home. To find the right REALTOR® for you, you need to interview several agents and choose the one who best fits your needs and knows the area in which you are selling. RealEstate.com connects you with several REALTOR® brokerages that are experts in your area, and you choose the company you want to work with. The company’s relocation director will talk with you and personally match you with a local REALTOR® who meets your needs. You can even get a rebate incentive back in the process – saving you money when selling your home.

Interview

Once you have a list of REALTORS®, your next step is to interview them. Come up with a list of questions that you would like to ask. Have them look at your house and give you an estimated selling price and how long they think it will take to sell. Find out how familiar they are with your neighborhood and market. Also, discuss commissions. Are they willing to negotiate? Do you have to sacrifice any service for paying a lower commission?
In the end, you want to go with your instinct when choosing a REALTOR®. Someone can have the stellar recommendations, but if you feel you cannot work with that person, it won’t be a good fit. Another REALTOR® may have very little experience, but they could be very familiar with your area you might have a good feeling about him/her. Hire the REALTOR® you think you can work with best.

How to interview a listing agent

RE.com Tips & Tools — Tue, 16 Jan 2007 16:14:00 GMT

You should ask a REALTOR® some important questions before choosing them to act as your listing agent.

Perhaps your best friend asks you to co-sign a loan for the new car he’s desperate to own. Or maybe your sister won’t qualify for a mortgage on her first home unless you co-sign the loan. There’s only one thing for a good friend or devoted family member like you to do. But before you co-sign a loan for anyone, make sure you understand your obligations and risks.

Picking the right real estate agent to list your home could make the difference between selling quickly at a good profit and settling for a low-ball offer. Here are some questions you should ask to ensure you get the right person working for you.

What are your professional qualifications for listing my home?

Look for someone who works as a full-time REALTOR® and a licensed real estate agent. REALTORS® are real estate professionals who belong to the National Association of Realtors. They subscribe to a strict code of ethics and are committed to ongoing education in the real estate industry. If your home has special features, look for an agent with experience in selling homes that are similar to yours.

What’s your track record for selling homes like mine?

How many homes have you listed over the past six months? A good REALTOR® typically lists one or two homes a month.

How many of the homes you’ve listed over the past six months have sold? It’s a good sign if a REALTOR® sells all or most of the homes he or she lists.
What’s the average length of time the homes you’ve listed have been on the market? It’s reasonable to take 90 to 120 days to sell a home. Much longer than that, and the home was probably overpriced.
What’s the average difference between the asking and the selling price of the homes you list? They should be close.
How much of your business is repeat or referral business? Successful agents have satisfied past customers and are therefore more likely to satisfy you.

Are you a disclosed dual agent?

This term means your agent is allowed to act on your behalf and simultaneously represent the person buying the house from you. To avoid this conflict of interest, hire an agent who will work for you alone. Otherwise, you could find yourself fielding low-ball offers from your agent’s other customers.

Is this the area of the city or region where you normally work?

Look for an agent who knows your area well. He or she will have a good idea of the best price you can get for your home and should have a network of other agents who are searching for homes in your region.

Do you have suggestions on ways to increase my home’s value?

A good listing agent should be able to tell you how to “stage” your home so it’s more appealing to potential buyers. Repainting in neutral tones, placing fresh flowers in the living room and home-baked cookies on the kitchen counter can speed up the sale of your home and put thousands of extra dollars in your pocket.

How often will you keep in touch with me?

Your REALTOR® should keep you regularly informed about potential buyers or real estate agents who have visited your home or expressed an interest in it, feedback from people who have viewed your home and all marketing activities. It’s not unreasonable to expect a daily telephone call, fax or e-mail with an update. Some offices have software that automatically notifies you, via e-mail or fax, every time someone tours your home.

Will I be working with you alone, or a member of your team?

An agent with many listings may hire employees to handle some aspects of the business, such as administrative work. There’s nothing wrong with a team effort to help you sell your home. But make sure that your agent is the one who will show your home, negotiate the sale and handle every other detail of the transaction. If your agent is taking a vacation in the near future, make sure you meet and are happy with the agent who will be filling in while he or she is away.

How will you price my home?

You don’t want to screen out potential buyers with an inflated price, or sell your home for less that market value. Your agent should be able to recommend a listing price based on a recent market analysis of your area that includes the recent selling price of homes similar in size, condition and amenities to yours.

How will you market my home?

An agent should list your home with the local and national Multiple Listing Service (MLS), share details of the listing with other REALTORS,® and market it on the Web. In addition, he or she should arrange an open house for real estate agents, regular open houses on weekends for the public, plus individual open houses for prospective buyers by appointment. This includes creating a detailed property fact sheet that can be passed out containing specific information on your home’s features and any home improvements you have made.

What will be included in the listing agreement?

Most contracts specify that you can work with only one listing agent. They also spell out the beginning and ending dates, which should be negotiable. It’s reasonable to allow an agent three to six months to sell your home. Agents cannot, however, provide a written guarantee that they will sell your house within that period of time. The length of time it takes to sell a home depends on many factors (such as market forces) that are out of your agent’s control.

It’s in your best interest to also specify in the listing agreement that your agent can accept offers only from buyers who have been pre-approved for a loan.

How are you paid?

Most agents are paid entirely by commission -- usually four to six percent of the selling price. And in most areas of the country, the person who is selling the house pays that commission from the proceeds of the sale. Find out whether there are any other fees, such as administrative costs.

Can you provide me with references?

A good REALTOR® should be able to provide you with references from satisfied clients who have sold homes in a similar price range in the area where you live.

Find a REALTOR® in your area to help you sell your home.

How to buy a house fast: Tour, then transact

RE.com Tips & Tools — Fri, 12 Jan 2007 20:38:00 GMT

Quick decision-making is key to a successful long-distance move.

Suppose you’ve agreed to relocate to a faraway community at the request of your employer. You’ve researched your destination, chosen a REALTOR®, identified some homes that might meet your needs, and made a checklist of your home-shopping priorities. Next, you’ll be ready for your house-hunting trip, during which you’ll tour for-sale houses, select the one that you want to purchase and try to make an attractive offer to the seller.

Be ready to act

One of the biggest challenges of buying a home in a hurry is being ready to transact when you embark on your house-hunting trip. You’ll want to know your budget, be preapproved for a mortgage, be familiar with the basics of a typical real estate transaction, and be willing to trust your Realtor’s advice about the local housing market. You won’t have time to waffle, hesitate, dilly-dally or even sleep on your decisions.

Having to act in a hurry means you might feel a heightened sense of remorse or start second-guessing yourself after you’ve made your decision. Those responses are natural and don’t necessarily mean you made a poor decision or bought the "wrong" house.

Take your time

Even savvy and experienced home buyers can become exhausted and overwhelmed if they try to tour a dozen houses in one day. Limit yourself to no more than, say, half-a-dozen properties on each day of your trip, and be sure to allow plenty of time before you leave town to decide which home you want to buy and make an offer. If you’re house-hunting with your spouse, stow your temper and bring along plenty of patience.

If you find a house that fits your budget and meets your needs, it’s okay to forgo your tour of other properties and focus on that house. Don’t keep looking just because there are more possibilities on your list.

On the flip side, if you don’t find any houses that meet your needs, you might want to rent a home when you first move to your new community. Remember, it’s easier to exit a temporary rental than it is to sell a property that wasn’t suitable for your needs.

If no one house is the obvious choice, but you still want to choose among a number of possibilities, focus on your priorities and your must-haves checklist: Is a certain school district a requirement? Which properties are closest to your workplace or convenient transportation routes? Which house would best suit your lifestyle? If you plan to relocate again within a few years, you might want to consider the likely resale value of the properties as well.

Make a strong offer

Make an attractive offer for the house you’ve selected because if the seller doesn’t accept your offer, you won’t have time to start over and negotiate another deal. Offer a fair price, avoid unnecessary contingencies and don’t nitpick over defects you can repair after you’ve bought your new home.

Buying your first home

RE.com Tips & Tools — Fri, 12 Jan 2007 20:37:00 GMT

Understanding all that is involved can help you through the purchase of your first home.

Buying a first home can feel intimidating. However, by understanding the process, you can have a great experience buying your first home.

1. Begin the loan process.
One of the first steps in buying a home is finding out how much you can afford. Lenders call this prequalification, because they determine roughly for how much of a mortgage you qualify. To get prequalified, you contact a lender and provide basic financial information, such as your credit history, income, assets, etc. The lender then determines roughly how much of a loan you are qualified for. You can also get prequalified through LendingTree. Prequalification is not binding, however. The next step is to get preapproved, which occurs when the lender verifies your financial information. By getting prequalified and preapproved, you are in a better position to shop for your first home.

2. Find a REALTOR®.
Once the mortgage process is started, you are now ready to contact a REALTOR®. They can help you to find the right community and the home that best meets your needs. To find the best REALTOR® to help you buy your first home, get recommendations from people you know, or you can Find a REALTOR® through LendingTree®.

3. Find your home.
Now that you have a REALTOR®, the next step is to start your property search. Allow plenty of time to look at as many homes as you can so you can find the perfect first home. When you find the house you would like to buy, the next step is to make an offer. Your REALTOR® assists with the paperwork and helps you make an offer that the seller may accept.

4. Get a home inspection.
Once the owner accepts your offer, you now have a contract on your first home. But the process isn’t over yet. You must arrange a home inspection to make sure there are no problems with the house. The inspector will provide you with a list of potential problems that you can ask the seller to fix. You and the seller then negotiate on what needs to be fixed before closing on your first home.

5. Moving arrangements.
The next step is to make moving arrangements. Whether you are moving yourself or hiring a moving company, you should set this up in advance. If you plan to move yourself, get boxes and rent a moving truck to transport your possessions to your first home. If you plan to hire movers, call them well in advance so that they can be scheduled for the day that you need them to move into your first home.

6. Arrange homeowner’s insurance.
You need to have homeowner’s insurance on your first home. Start by calling your insurance agent. Your agent will ask you questions regarding your home, such as the address, square footage, type of roof, number of bathrooms, etc. The agent gives you a quote and then coordinates with your lender. At closing, you pay the premium as part of your closing costs.

7. Packing.
Now it is time to start packing! A great way to get started is to go one room at a time. Start with a room that is used the least in your current residence and start packing there. This is also a great opportunity to get rid of anything that you no longer want. You don’t want to move anything that you do not need, so if there is something that needs to be thrown away or donated, now is the time to do that.

8. Address change and utilities.
You will want your mail to arrive at your first home, so don’t forget to change your address with the post office. This can now be conveniently done online. Also, it is necessary to have the water, electricity, gas, cable, etc. turned on in time for your move-in day.

9. Walk-through.
Prior to possessing your first home, you have a walk-through. This is a chance for you to make sure that everything from the inspection was fixed. It is also a chance to see that your first home is in move-in condition.

10. Closing and move.
The final step in the process of buying your first home is closing and then actually moving in. At closing, you sign the papers from the lender and any others that the state requires that make the home yours. You will also have to pay closing costs. Once the paperwork is done and your check is signed, you can move your possessions in to your first home. After weeks of preparation, the house is now yours.

Finding a home: What to look for

RE.com Tips & Tools — Fri, 12 Jan 2007 18:07:00 GMT

There are steps to follow for finding a home.

Finding a home is an exciting time. With a little preparation you can make it a rewarding experience. Following are steps that you can take when finding a home.

Determine which housing type best suits your needs

When finding a home, it is important to understand the different housing types that are available to you. The basic choices are condominium, townhouse, and single family home. What suits you best depends on your lifestyle and life situation. If you are single or a young couple without the time or desire for much home maintenance, then a condominium may be your best choice. A townhouse may provide a bit more space and a little more privacy, since usually no one will be living above or below you. If you have a family or prefer a home with a yard, a single family home may be preferable.

Know what you can afford

It helps to know how much house you can afford when finding a home. A very easy way to do this is through getting prequalified with a lender. By contacting a lender and providing some financial information, the lender can let you know how much of a mortgage loan for which you can qualify, which gives you a price range to begin your search. You can get prequalified for a mortgage through LendingTree®.

Understand what is important to you

Do you want to live close to work? Would you like to be within walking distance of schools? Is accessibility to public transportation important to you? When finding a home, you need to decide what you want to have in close proximity. Do you want to be near restaurants and shopping, or would you prefer a home with more solitude? Evaluate your personal preferences and your needs. Look for neighborhoods that meet those criteria.

Find a good REALTOR®

A REALTOR® can be a great asset when finding a home. They help you in your search and represent you during the actual home purchase. By using a friend’s recommendation or a program such as LendingTree Find A REALTOR®, you can partner with someone who can be a great resource in finding a home.

Think of your future

Be sure to keep in mind your future needs when finding a home. Perhaps you are a young couple that plans to have kids soon. The home that you seek should be large enough for that. Something as simple as an additional pet can be a factor in finding a home for you. Whether your family plans to grow larger or you are about to become empty nesters, the home that you find should suit you.

By taking time to prepare before your search, you can have a successful experience in finding a home.

Ask an expert: Seller backing out of contract

RE.com Tips & Tools — Fri, 12 Jan 2007 16:15:00 GMT

Q: What happens if you’ve made an offer on a home and the seller suddenly decides not to sell?

A: In the case of most real estate deals, once you and the seller have signed a contract, neither party can back out without consequences. There are some contracts, however, that have clauses that allow a seller (or buyer) to cancel if certain conditions are not met.

Most conditions in a real estate contract are designed to protect the buyer. For example, you may make an offer conditional upon being approved for a mortgage, or pending a home inspection. If your financing falls through, or the inspector finds a termite infestation, these clauses allow you to get out of the deal without penalty.

Sellers may include similar “escape clauses” in the contract. In situations where a house is part of an estate sale, for example, the contract might state that the deal must be approved by other family members. If you accept this condition when you sign, the seller is able to back out if the condition isn’t met.

When a seller attempts to back out of a contract without such conditions, however, a buyer may be able to sue for financial damages. The buyer may even be able to get the court to order the seller to fulfill the terms of the contract. (The seller’s real estate agent, too, may be able to sue for his or her commission.) The specific consequences will depend upon the terms of the contract and the state you live in, but, in general, a seller is not entitled to renege because of a change of heart.

Buying a home is stressful enough without worrying about taking the seller to court. That’s why you should work with your agent and a real estate lawyer before you sign the contract, to make sure it does not allow the seller to back out for arbitrary reasons. If you do find yourself in this situation after the fact, contact a real estate lawyer immediately to determine your options.

Bill Yeager
Regional Vice President, Realty Sales

What to Ask When Choosing a Buyer's Agent

RE.com Tips & Tools — Thu, 11 Jan 2007 19:15:00 GMT

Knowing what to ask is vital when searching for the ideal person to help you find a home

A good buyer’s agent works to meet your needs and wants. Use these to help you find the agent that’s right for you.

Which do you prefer to work with -- buyers or sellers -- and why?
Do you work full time as an agent? If not, why not?
How many buyers are you presently working with? Are you busy?
How long have you been a real estate agent?
Are you well-acquainted with the area where I plan to look for a home?
What is the average house price for the area over the past year?
Is the average price of the homes you deal with significantly above or below my budget?
How many sales have you been involved with in the past year?
Can you give me three references of buyers you have worked with?
Do you arrange the appraisal, inspection and house insurance?
Do you handle the closing?
Do you have any professional designations, such as GRI (Graduate of the REALTORS® Institute) or CRS (Certified Residential Specialist)?

Questions to Ask a REALTOR®

RE.com Tips & Tools — Thu, 11 Jan 2007 19:13:00 GMT

It's important to ask the right questions when searching for a REALTOR® to help you find the perfect home

Don’t settle for just any REALTOR® to help you find your next home. You may end up wasting thousands of dollars and spending hours looking at homes that aren’t suitable for you. Ask the following questions to help you find the REALTOR® that’s right for you:

Are you a REALTOR®?

A serious home search calls for a serious REALTOR®. That means hiring a licensed agent who is a REALTOR®, an agent who subscribes to a strict code of ethics and ongoing education as a member of the National Association of REALTORS.® You should make sure your interviewee is a full-time REALTOR® (versus a part-timer who may not be able to provide the time you require) who can introduce you to home appraisers, home inspectors and lawyers. Stay away from disclosed dual agents (allowed to simultaneously represent both the buyer and seller). You’re better off hiring a REALTOR® you know is looking out solely for your best interests.

How do you get most of your customers?

While all REALTORS® advertise, the better ones get the bulk of their business from referrals or repeat customers. So ask for customer references (see below for more on reference checks).

Do you specialize in a specific area?

Look for a REALTOR® who focuses on the area in which you want to buy. He/she will be more informed on local property prices, schools, transportation and other services, and will know how quickly neighborhood properties tend to get snapped up. If your REALTOR® is up-to-speed on the area, he/she will have the background needed to negotiate a good price, in keeping with recent sales.

How do you communicate with your clients?

At the onset, your REALTOR® should spend an hour or two with you to get a good feel for what you’re looking for. Taking you on a drive around the neighborhood is always a good idea.
You want a REALTOR® who speaks your language. For some buyers, that means sending daily e-mails or phone calls. For others, it may mean calling only when new listings or price reductions occur. Whatever your preference, your REALTOR® should take the time to find out what works best for you from the get-go.
Find out how long it takes your REALTOR® to return calls or e-mails. Anything longer than by the end of the day could mean the difference between buying and losing your dream home.
If your REALTOR® shows you a home that isn’t suitable for you, it’s his/her job to find out why, in order to avoid similar viewings.
It’s also the REALTOR’s® job to stay in touch with you on a regular basis. Even if there aren’t any suitable properties on the market, a good REALTOR® will call you at least once a week to stay in touch and communicate market trends.

Do you work alone or do you have a team?

A growing number of busy REALTORS® are building teams of employees to help handle various aspects of their business. While a team approach can sometimes be beneficial, you want to ensure that the REALTOR® you hire is the one finding and showing you properties, presenting and negotiating your offer, and reviewing the final contract with you. Is your REALTOR® going on vacation? Ask to meet with the replacement to ensure they know what you are looking for.

What is your commission?

Typically REALTORS® receive a commission of four to six percent of the selling price, depending on things like the type of property, its value and the rate negotiated by the seller. In most areas, the commission is built into the selling price so you will not have to pay your REALTOR® directly. However, it is a good idea to ask if the REALTOR® charges administrative fees or other costs.

Where will you start your search?

All good REALTORS® subscribe to the Multiple Listing Service (MLS) for direct access to a wide range of listings in their neighborhood and across the country. REALTORS® may also want to direct you to their corporate websites to take you on “virtual tours” of prospective properties online.

Do you have references?

Make sure you get a few references from satisfied clients who have bought homes in your price range in the area where you want to move. Find out what they liked about the REALTOR® -- and what they didn’t.

Tips on Using a REALTOR® to Find a Home

RE.com Tips & Tools — Thu, 11 Jan 2007 19:07:00 GMT

The better you and your REALTOR® work together, the sooner you will find your perfect home

Now that you’re ready to buy a home, here’s what you need to know about working with a REALTOR®:

Work exclusively with one REALTOR.®

Once you’ve found a REALTOR® you like who specializes in the area you’re interested in, commit to him or her. Otherwise, you’ll waste time explaining your priorities to several REALTORS® and potentially end up viewing the same house more than once. Note: most good REALTORS® will request that you sign an exclusivity agreement before agreeing to represent you.

Do some digging.

Research various areas and construction styles to narrow down what you’re looking for. Also, make sure all the documentation and financing you will need to close a deal are in order.

State your case.

Educate your REALTOR® on your specific needs and wants. It’s a good idea to provide a list of features you absolutely must have, and a separate list of items that you do not want. For instance, if you need at least three bedrooms for you and your children, there’s no point in your REALTOR® showing you one-bedroom listings. At the same time, if you hate corner homes, say so -- you’ll save you and your REALTOR® a lot of time and frustration in the long run.

Keep the lines open.

Communicate with your REALTOR® regularly. Keep him/her up-to-date on what you liked and didn’t like about every property you see. If your needs, preferences or budget change, let your REALTOR® know so the search parameters can be adjusted.

Be considerate.

Treat your REALTOR® how you expect to be treated. Call or e-mail if you’re going to be late for a showing or appointment. Your REALTOR® will be able to adjust his/her schedule, and still be willing to give you time in the future.

Be realistic.

Everyone likes to dream, but you need to be realistic. If you can only afford a one-bedroom condo, then don’t waste time looking at a million-dollar penthouse. If you don’t know what you can afford, ask your REALTOR® who should be very familiar with current market pricing and be able to show you homes within your reach. Your REALTOR® may also suggest you get pre-qualified for a mortgage so you’re prepared to move quickly when you do find the right house.

Trust your REALTOR’s® judgment.

That mediocre bungalow your REALTOR® wants to show you may not be what you envisioned as your home, but if your REALTOR® wants to show it to you, give him/her the benefit of the doubt. Your REALTOR® may know something you don’t -- maybe with a minor renovation, it could turn into the home you always wanted.