Search results for 'pricing your home'

Purchasing Pre-Foreclosure: Create a Win-Win Scenario

tipsandtoolsadmin — Fri, 31 Jul 2009 14:41:00 GMT

EDITOR'S NOTE: With foreclosure properties still dominating the housing landscape in the U.S., we've asked our friends at RealtyTrac® to guest author some articles to shed light on the foreclosure crisis. RealtyTrac is the most trusted source of foreclosure information in the country. We hope that the information provided here and in other articles will be beneficial to understanding, avoiding and even leveraging (as an opportunistic buyer) home foreclosures.

By James J. Saccacio, Chief Executive Officer

When it comes to buying a home from a financially-distressed homeowner, many people conjure up the image of vultures swooping in on their helpless prey. And, sadly, there are more than a few unscrupulous opportunists looking to take advantage of homeowners who find themselves in foreclosure. In these situations, the homeowner often loses everything, while the homebuyer reaps a windfall. But thanks to services like RealtyTrac, there’s an opportunity for a much more positive transaction—one in which everyone wins.

Buying a pre-foreclosure property from a homeowner in default can be a very attractive option because it has the potential to create a win-win scenario for everyone involved. In an ideal transaction, the seller is able to get out from under a defaulted mortgage without destroying his or her credit rating, the lender is saved the time and expense of foreclosing on the property, and the buyer gets a below-market price on a home.

A property enters pre-foreclosure when the lender files a default notice against the owner. You can find default notices at the local recorder’s office or through online services like RealtyTrac, which maintains the nation’s largest database of pre-foreclosure properties – updated daily.

Pre-foreclosure properties can often be purchased for prices well below market value because the owner is very motivated to sell and has a limited timeframe in which to sell. When a property is in the pre-foreclosure period, the owner still has an opportunity to pay off what is owed or to sell the property, thereby stopping the foreclosures process. If the owner doesn’t stop the foreclosure process, the property will be sold at public auction. The sensitivity associated with these sales is important to note when making offers on properties in pre-foreclosure. More so than with any other real estate sale, it’s important to present an offer that benefits all parties. Read on to find out how you can create positive outcomes all around and still score yourself a deal.

Make contact
Before you attempt to contact the owner directly, call the lender’s trustee to confirm whether the property is still destined for a foreclosure sale. The trustee will have the most current information on the property, including whether the owner has sold or reinstated the loan on the property. However, any specific questions about the property must be addressed to the owner directly.

Contacting owners in default can be uncomfortable, since they may feel a bit vulnerable, like the vultures are hovering. They are probably being contacted by a host of people including credit repair services, bill collectors and creditors. So as not to overwhelm the homeowner, it’s best to make your initial contact via the mail and explain your intentions as a private buyer who is interested in the property. Failing that, you can attempt to make contact via phone or in person. Keep in mind, however, that these more direct interactions may not be the most pleasant because you’re confronting a person with the prospect of losing his or her home.

Regardless of the mode of contact, always be respectful of owners, especially if their wishes are to not be disturbed. If this is the case, it may be an indication to wait until the property goes up for sale via public auction or to look into other pre-foreclosure purchase opportunities in the area.

Time your offer and price it accordingly
Timing your offer can be tricky. Since the pre-foreclosure period can last several months, you need to be patient when attempting to contact an owner in default. Conversely, last-minute transactions can require quick action, since there is pressure on the owner to complete a sale before the property goes to auction. It’s best to make contact as early in the process as possible and continue to do so regularly in order to gauge interest as the clock continues to tick. Make sure you stay on the seller’s radar throughout the process. Chances are that an offer that wasn’t of interest early in the process may sound quite attractive when the seller is facing an imminent foreclosure auction.

Before pricing an offer on any property, it’s wise to obtain up-to-date information on ownership of the property and the loan amount, as well as any outstanding debt or lien information. You should also assess the condition of the property by enlisting the services of a professional property inspector. Don’t rely on your own knowledge and inspection; only a professional can fully assess the condition of a home and identify repairs that will be needed. Once you purchase a property, you assume responsibility for any additional repairs that weren’t discovered before the sale, so the cost of hiring an inspector is worth every penny.

Offers on pre-foreclosures often resemble those for any other real estate purchase, stating that the offer is contingent upon a title search and full inspection of the property. Educate yourself on how much is owed on the property and investigate what its market value is by looking at comparable sales in the area. You can estimate the gross equity in the property by subtracting the amount in default (which is publicly available and listed on RealtyTrac) and the outstanding loan balance from the approximate market value. As long as there is some calculated equity, purchasing the property can provide you with a profit of some amount. Of course, how much profit you earn will depend on your ability to negotiate your price with the homeowner. As a rule of thumb, you should present an offer that is below total market value of the property but above the total amount of outstanding loans, liens and necessary repair costs. This enables you to purchase the property at a substantial savings, while keeping the owner, lender and any other parties satisfied.

In negotiations, be sensitive but hold your ground
Negotiations between the buyer and seller of a pre-foreclosure can be difficult, especially since the seller would typically prefer not to sell the property in the first place. Remember that you are, in essence, doing both the lender and the owner a favor by purchasing the property early in the foreclosure process, saving the lender money and time, and potentially even allowing the owner to make a profit if you pay more than they owe.

Avoid mentioning the foreclosure situation in any written communication to the owner that might be seen by others, but once you meet with the owner in person, it is completely appropriate for you to express an understanding of the situation and indicate your willingness to help stop the foreclosure process and alleviate some financial concerns. Most importantly, treat the owner with the respect and dignity they deserve.

That said, it’s just as important to stand firm on what you plan to spend, especially if you want a sale price below market value. After all, saving money is the main reason people entertain the idea of a pre-foreclosure purchase in the first place! In this market, it’s imperative to be patient and understanding of the circumstances, but ultimately diligent about getting what you really want. You may have to work a bit to motivate the homeowner to make a sale, but a bit of extra effort is completely worthwhile if it wins you the property at a savings to you.

Following these suggestions should help you identify opportunities to make the pre-foreclosure process work for you as a buyer. For more information about pre-foreclosure and foreclosure or to locate properties for sale, check out resources available online at www.realtytrac.com.

Your Thoughts From the May 8th Message

Bru5W — Wed, 13 May 2009 18:21:00 GMT

A number of folks liked my thoughts about selling tips. Below are a few of the e-mails I received with additional comments and tips...

Good morning Bruce! I love the piece. Especially the one about the Home Stager. I will definitely suggest this service to listing clients. A price range for the service would definitely be helpful. One of the tactics I love to use is showing the 'numbers, numbers, numbers' with a financial calculator. I love starting from the customer's desired monthly mortgage amount...including CMA's...explaining how to best save in out of pocket expenses such as appraisal and inspections fees by simply dealing with sellers who are realistic about the value of their home from the start. Customers really appreciate that information. This really helps to establish a sense of trust and rapport with them.

Lawrence Tyler

Capital Region

I believe the price is the most important factor too. You can have the most beautiful house in the world but, if it isn't priced right it will never sell. One of the tactics I use, after educating my sellers and getting them to list for the right price, is to hold all showings until the first open house. I find this builds a crowd and anticipation. If you have it priced right, it should sell at the open house. I eagerly await the new town square and splendid!

Ted George

New England

Good stuff Bruce. I think you’re spot on with regard to price. Price has always been 80% of the marketing of a home. No matter the location, condition, etc. if it is priced accordingly it will sell. Sellers often times gather information that is not accurate and make assumptions based on their research. The goal of any strong listing agent is to get the home priced just a hair below the competition. I’ve learned the importance of a 2-step approach in the listing process. The first step is to gather information and build rapport/trust with the homeowner. During step one you are setting the stage for step two – the actual listing presentation. When you take your time (Remember the old saying, “Fools Rush In”), do your research and then present the “Facts of Record” to the owner in black and white you raise your chances considerably in getting a well-priced listing that will sell in a short period of time and it will sell at or near full price! The key to the whole process is establishing rapport, gathering the facts, positioning yourself as the professional by doing your research and taking your time. Once you learn the process you know to get a lot of minor yeses along the way to the big yes by using trial closes. It’s really fun when you know what to say and how to say it!

Staging is almost a requirement in many markets and I personally feel that it is one of the best things an owner can do to set their home above the competition.

Michael Fuller

VP, Portland

Bruce:

Sounds good – some thoughts:

Price

In today’s market, I would suggest “price - location - incentives”.

There is a direct correlation between jobs and home prices. It can be said that “homes are where jobs go at night”.

Location

While location remains important, “Home Staging” can go a long way to differentiating one home from the others.

Incentives

A couple of obvious ways are for the seller to pay buyers closing costs or to buy-down the buyers interest rate.

I would stay away from “creative financing”. It has been used so much and in the mind of today’s consumer it is viewed as one of the reasons our economy is what it is today.

Phil Souza

VP, Seattle

Good article Bruce.

I feel that you have put it right on the line. We as listing agents need to be a bit more firm, when it comes to pricing. By doing a 'complete' CMA we can show the seller what is happening, price wise, in his own neighborhood and then be able to list the home at a realistic marketable price.

Only one thing: the Home stager could be a she or he, especially in this equal opportunity job force :D)

Winifred A. Mauras

San Diego

Hi Bruce: This is good advice...One thing that I do is suggest to the homeowner that they have their own home inspection before they list the house. That way, they will know if anything major needs to be addressed, and there are no surprises when they get that eagerly anticipated offer on the house. It also gets the homebuyer moving forward toward getting the property "ready" to sell. Often, buyers will forgo the inspection once they have reviewed the inspection report. This can also shorten closing time by a week or so.

Susan B. Johnson

Seattle

So how about you? What tips do you have? Keeping topics like this open and available, allow greater participation and input. Let me know what YOU think!

Getting the most out of the tax credits...

jaylopez — Mon, 06 Apr 2009 19:49:00 GMT

Putting the tax credits to work for you...

I recently posted a blog outling the $8000 federal tax credit and the $10,000 CA new home buyer tax credit, along with a few other tips on buying a home in today's market. You can read that here:

http://activerain.com/blogsview/952768/Top-Reasons-to-Buy-a-Home-Today

I wanted to follow up with a few success stories on how we have used this information to actually close transactions. First, it is important to note that there is a lot of misinformation out there about these credits and how they work...so be sure you are getting information from a reliable source and always verify it with your tax advisor. On the surface the tax $8000 tax credit in and of itself may not be enough to get you to put pen to paper and make an offer. But in some cases when coupled with other incentives, it may be just what you need to jump off the fence. After all who can't use $8000- $18,000?

Last month we had 6 offers accepted for clients that specifically bought because of the credits. In two cases they also bought new consturction, so they qualified for the $8000 federal new home buyer credit plus the $10,000 CA new construction credit. Additionally we negotiated with the builder to add some incentives and got them to buy the client out of a lease for $5000. That totalled up to $24,000! A significant incentive to say the least.

The reality of this market and economy is that there are great deals out there! Companies are negotiating on everythig from cars to household items to homes. Don't be shy in asking for incentives or credits or closing costs. Keep in mind however that when it comes to foreclosed homes competition is fierce and people are paying over list price. Lenders are pricing these homes to move so go in with your eyes wide open, look at recent sales comparables and work with a strong agent that knows how to structure the best deal possible for you and your family. Stay tuned for my next blog on the recent auction I attended, and get the inside scoop on how they work and if they are really the place to get a killer deal on real estate.

Your Guide to Moving Up

tipsandtoolsadmin — Thu, 26 Jul 2007 19:48:00 GMT

Tips and advice for moving up into a bigger home.

Are you a homeowner planning on moving up to a bigger or more expensive home? Here’s a guide for planning the transition, with tips from real estate professionals on the RealEstate.com broker network.

Figure out how much your current home is likely to sell for.
Have your real estate professional conduct a comparative market analysis. “Be realistic about pricing the home so it moves quickly,” adds Sandy Guralnik, a broker with Coldwell Banker United in Charlotte, N.C. This will help you avoid a long gap between when you buy your new home and sell your old one.

Consider the market.
If you have only been in the home two or three years and made little or no down payment, you might not have enough equity to sell at a profit in today’s soft market. You might even owe more on the mortgage than the home is worth. On the other hand, if your home has appreciated well, it might be easier to move up to a bigger and better home.

Consider your finances.
Your overall debt picture is important if you plan to move into a larger, more expensive home. In addition to a higher mortgage, you’ll likely have higher utility, insurance and property taxes as well. If you owe money on a home equity loan, you’ll have to pay that back when you sell the home, which will eat into your profit.

Get preapproved by a reputable lender.
The lender will tell you how much money they’re willing to lend you, which will tell you how much house you can afford. Then, figure out how much you’re comfortable spending. The two numbers are not necessarily the same, says Jan Miyasato, director of corporate and client services for Prudential California Realty in Pleasanton, Calif.

Determine your long-term housing needs.
Will you be starting or expanding your family in a few years? Will the larger home be as teen-friendly as it is toddler-friendly? Is there a place for a home office if one of you eventually works from home?

Be realistic.
Most people will not be able to move up from a starter home into their dream home. It’s a long-term process that occurs over several moves, says Debbie Wong, a certified residential specialist with Prudential California Realty in San Mateo, Calif. Plus, it’s harder to qualify for a loan if the jump in monthly payments is too big, she says.

Preview properties in your target price range and location.
Look to see whether the homes match your trade-up goals.

Get your home on the market.
Moving up will go more smoothly if you are able to sell your home before trying to buy another. For one thing, many buyers are leery of contracts in which the sale is contingent on the seller finding a home. Finances also are an issue. You might be able to get a bridge loan if you’re unable to sell before you buy, but consider whether you can afford two mortgages for more than a month or two.

Determine the best time for your move.
If you want to move in the summertime, start your other preparations early enough to meet that goal.

Have the movers do it all, or tackle some of the chores yourself to save some cash?

tipsandtoolsadmin — Thu, 19 Jul 2007 19:36:00 GMT

Have the movers do it all, or tackle some of the chores yourself to save some cash.

You can make it easier on yourself by hiring professional movers. But you’ll still have some details to work out, including what level of moving services you want. To some extent, that will be determined by how much you want to pay.

When you hire professional movers, the base price usually includes just loading, transportation and unloading. You’ll have to pay extra to have the movers pack your possessions. The charge for the full packing and unpacking service generally is based on the weight of the load, according to the industry’s professional organization, the American Moving and Storage Association, and includes the cost of all but specialty cartons for things like mirrors and marble tabletops.

You can get custom packing services from professional movers if you pack some of the items yourself and unpack yourself, according to the industry group. In that case, the charge is based on the number of boxes or cartons used.

Even if you pack yourself, you’ll have to pay for boxes if you aren’t able to scrounge enough from the office and the grocery store. Consider at least buying wardrobe boxes – mini-closets with a metal bar where you can hang clothes on hangers – and dishpacks for breakable kitchen items like plates and glasses.

You’ll also need to decide whether to buy additional protection in the event your goods are damaged by the professional movers. Under the basic protection included in the cost of your move, the movers are liable for only 60 cents per pound if something is damaged. In other words, you could end up with only $60 for your broken, 100-pound couch. Full replacement-value coverage costs more, but could be a good investment.

One advantage to hiring professional movers is they can store your goods if you need to move out of one house without moving immediately into another. The charge for storage is based on the weight of the load and how long your goods are in storage.

Another option to consider is something called self-service moving. You pack all your goods, load and unload the truck, but a professional driver transports it. The price is based on the number of miles traveled and how much space your load takes up on the truck. (Long-distance full-service moves are based on weight.) As you might guess, the price is less than for a full-service move.

You can hire professional movers for long-distance or local moves, but remember that pricing is different for short-haul local moves. In that case, you might be charged by the hour rather than by weight.

Either way, hiring professional movers can at least make you feel like you’re arriving at the fancy Hollywood premier in a limo instead of an old sedan.

Customizing Your Move with Professional Movers

tipsandtoolsadmin — Thu, 19 Jul 2007 18:00:00 GMT

Have the movers do it all, or tackle some of the chores yourself to save some cash.

Amid all the excitement of buying a new home lays a decidedly less glamorous chore: moving there. It’s kind of like getting ready for a stroll down the red carpet at a Hollywood premiere and having to drive yourself there in a 15-year-old sedan. You can make it easier on yourself by hiring professional movers. But you’ll still have some details to work out, including what level of moving services you want. To some extent, that will be determined by how much you want to pay. When you hire professional movers, the base price usually includes just loading, transportation and unloading. You’ll have to pay extra to have the movers pack your possessions. The charge for the full packing and unpacking service generally is based on the weight of the load, according to the industry’s professional organization, the American Moving and Storage Association, and includes the cost of all but specialty cartons for things like mirrors and marble tabletops.

You can get custom packing services from professional movers if you pack some of the items yourself and unpack yourself, according to the industry group. In that case, the charge is based on the number of boxes or cartons used. Even if you pack yourself, you’ll have to pay for boxes if you aren’t able to scrounge enough from the office and the grocery store. Consider at least buying wardrobe boxes – mini-closets with a metal bar where you can hang clothes on hangers – and dishpacks for breakable kitchen items like plates and glasses. You’ll also need to decide whether to buy additional protection in the event your goods are damaged by the professional movers. Under the basic protection included in the cost of your move, the movers are liable for only 60 cents per pound if something is damaged. In other words, you could end up with only $60 for your broken, 100-pound couch. Full replacement-value coverage costs more, but could be a good investment.

One advantage to hiring professional movers is they can store your goods if you need to move out of one house without moving immediately into another. The charge for storage is based on the weight of the load and how long your goods are in storage. Another option to consider is something called self-service moving. You pack all your goods, load and unload the truck, but a professional driver transports it. The price is based on the number of miles traveled and how much space your load takes up on the truck. (Long-distance full-service moves are based on weight.) As you might guess, the price is less than for a full-service move.

You can hire professional movers for long-distance or local moves, but remember that pricing is different for short-haul local moves. In that case, you might be charged by the hour rather than by weight. Either way, hiring professional movers can at least make you feel like you’re arriving at the fancy Hollywood premier in a limo instead of an old sedan.

How Do I Price My Home?

tipsandtoolsadmin — Tue, 06 Feb 2007 16:03:00 GMT

About to put your home on the market? Here are the factors you should consider when determining how much to list it for.

The ten main factors that influence the value of your home are:

1. Interest rates: The lower the interest rates, the more buyers can afford to pay.

2. Supply and demand: Are ’for sale’ signs springing up all around the neighborhood? If there are a number of homes similar to yours on the market, consider them your competition. What can you do to set your home apart and make it desirable for a majority of potential buyers? On the other hand, a small number for sale can result in competing bids that send prices up.

3. Economy: Is the economy improving or sliding? This will affect buyers’ confidence in their ability to manage debt.

4. Location: Are you in a desirable neighborhood, with key services such as schools, doctors, and shopping nearby? Are there factors that make your neighborhood less desirable, such as environmental issues or traffic problems?

5. Condition: Have you updated features and kept up with repairs? Is the house clean? Does your house make a good first impression? (This is called "curb appeal.") How much can you reasonably do to fix it up for sale?

6. Timing: Do you need to sell quickly or can you choose your time?

7. Size: Will your home appeal to a growing family or to those who are downsizing?

8. Amenities: Does it include features that are popular, such as low-maintenance landscaping or granite counter tops?

9. Terms: How flexible are you with respect to the sale? What’s excluded? If you are downsizing and have substantial equity, have you considered offering financing? Carrying financing can make your home very appealing and help you sell for the maximum price.

10. Attitude: How committed are you to selling now?

To determine your home’s value:

Research the housing market in your area. Browse the Internet, local newspaper ads and free ’For Sale’ publications. Visit open houses in your neighborhood to get a general idea of the current market.
Get a comparative market analysis (CMA) from a REALTOR®. A CMA compares homes that are currently available and those that have sold in your neighborhood in the past year. The more similar the features -- square footage, number of rooms, lot size, etc. -- and the more recent the data, the more accurately it reflects the current market. Don’t confuse listing price with sold price -- the most important factor in the CMA. REALTORs® usually do CMAs for home sellers at no charge.
Have your home appraised. An appraisal estimates your home’s market value. A lender will require an appraisal to finance a prospective buyer. For residential properties, a professional appraiser will either compare your home to similar properties that have sold in the area or, for new properties, estimate how much it would cost to replace the existing structure if it were destroyed.

To maximize your home’s value:

Eliminate clutter and clean. The more you can clean your home and keep it tidy, the easier it will be to show, and the more buyers who will see it at its best.
Paint and repair. First impressions count. Improve the appearance of your home with a coat of fresh paint. Take the time to fix any dripping taps, broken tiles or cracked widow panes.
Consider hiring a home stager. A professional home stager can help you enhance the selling potential of your home by showing you how to arrange your home to appeal to buyers. Whether it’s rearranging furniture, minimizing belongings, lending you accessories or renting furniture, they work with you to show off your home’s best features. Many will also coordinate hiring professionals to do cleaning, painting and minor repairs.

What’s the right price?

Generally, aim for your list price to be within 2.5 to 5 percent of what you expect the selling price to be. Pricing strategies vary with the market. If it’s sluggish, price lower. If it’s active, price close to your expected selling price to stimulate competing offers.

Remember, your home is easiest to sell when it’s first listed. During the first couple of weeks, you’ll get a flurry of interest on the part of agents eager to preview it for their clients. If you price it too high and they can’t sell it, your home may linger on the market and become old news. Prospective buyers may think you’re becoming desperate and lower their offers. As a result, you could end up having to accept less than you normally would have received.

Bill Yeager
Regional Vice President, Realty Services

7 tips to sell your home

tipsandtoolsadmin — Tue, 16 Jan 2007 15:23:00 GMT

Price, condition, competition, access -- these and other factors can mean the difference between a speedy sale and no sale.

You’re set to buy a new home, but you can’t go ahead with your plans until you find a ready buyer for the home you currently own. With more homes on the market today, how can you make sure yours will outshine the competition? Here are some suggestions:

1. Price. Real estate agents emphasize the importance of pricing your home "to sell," which means at the market price, not a higher speculative price that you merely hope to receive. Market-level pricing is especially important when the supply of comparable for-sale homes in your area exceeds the demand to buy those homes.

2. Condition. Homes that are in great shape typically sell more readily than comparable homes that are in need of repairs or that have out-dated décor. If you’re looking for a quick sale, clean out your clutter, pack up your personal items, neutralize any unusual colors and make any necessary repairs before you put your home on the market.

3. Feedback. Some real estate agents will pass along feedback they’ve received from prospective buyers who’ve seen your home. A specific complaint from one or two individuals might not be material since no home will ever appeal to every buyer. However, a number of similar criticisms from multiple buyers might merit consideration.

4. Competition. If you’re able to figure out why other homes on the market sold before yours did, you might be able to use that information to make your home more attractive to buyers. Tip: Open houses are a great way to check out other homes on the market in your neighborhood.

5. Marketing. Don’t underestimate the importance of Web sites in selling your home. Ask your real estate agent for a list of Web sites on which information about your home will appear. Make sure the information is correct and presents the best features of your home. Photos are important too.

6. Showings. Very few buyers will purchase a home they’ve never stepped inside, and some real estate agents will bypass a home that’s too difficult to show. If you severely limit the days and times when your home is accessible, you may also severely limit the number of people who might choose to buy it.

7. Bonus. Real estate agents disagree on the wisdom of buy-side bonuses, which are extra payments or gifts that reward the agent who finds a buyer for your house. Some agents believe bonuses are effective while others suggest your money would be better spent in additional spiffying-up of your home. Ask your agent for advice.

Get the facts at open houses

tipsandtoolsadmin — Fri, 12 Jan 2007 16:50:00 GMT

Savvy home shoppers use these events to research for-sale homes and real estate agents.

Home buyers all too often walk out of an open house simply because they didn’t like the home, but without taking advantage of this prime opportunity to pick up useful information that might aid their search for a home.

Questions to ask at open houses

Open houses rarely result in the sale of the home that’s being held open. Rather, these events are a popular way for real estate agents to prospect for more business. Consequently, many open-house agents are very willing to share helpful information about other homes on the market.

Questions you might want to ask include:

What are the most attractive features of this house?
What’s the rationale for the asking pricing?
What other houses have sold recently in this area?
What was attractive about those houses?
What were the asking and selling prices?
What other houses are on the market?
What are the attractive features and asking prices of those houses?
What other houses might be coming on the market?

Take digital or Polaroid photos of each house and make notes of what you liked or didn’t like about it, so you’ll later be able to remember and compare all the houses you’ve seen. Collect the real estate agents’ business cards and note on the back of each card whether or not the agent was helpful.

Watch out for ringers

A crowded open house can seem like a bizarre cocktail party sans the alcoholic beverages as visitors mill about and inspect the premises. At times, you’ll overhear other visitors make comments about the house. If you overhear a comment about a specific defect, investigate further. But otherwise, take these comments lightly since other people’s opinions are likely to differ from yours and you won’t know whether those people are serious buyers, curious neighbors, sales agents, or even friends or relatives of the seller. Ringers are highly unusual, but you don’t want to be the victim of one nonetheless.

Choose an agent with care

When you speak with an open-house agent, don’t disclose how much you want to spend to buy a home, how soon you want to move or other details of your personal situation. One risk of such disclosures is that you might find yourself at a disadvantage if that same agent also represents the seller of another house you later decide you want to buy. Another risk is that you could unwittingly create an unwanted agency relationship with that agent. Agency laws vary by state, yet there’s no reason not to err on the side of caution rather than disclose too much about your personal situation.

If you feel comfortable with an agent you meet at an open house, you might want to ask that agent to help you shop for a home. Choose an agent who is ready, willing and able to meet your individual needs, and never sign a contract or disclosure form that you haven’t read or don’t fully understand.

Tips on Using a REALTOR® to Find a Home

tipsandtoolsadmin — 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.