5 Reasons To Love Using A Reltor

Why You Should List Your Home With A Realtor Rather Than Try It Yourself

Those that sell with a Realtor get 13% to 19% more for their home

Since there is so much information on the internet now-a-days some clients ask, "Why should we hire a real estate agent?" They believe that they can buy or sell a home through the Internet or regular marketing and advertising channels without representation, without a real estate agent.  The truth is only some do fine on their ​own, but many don't. 

Below are 10 reasons why you might want to consider hiring a professional real estate agent.

 Education and Experience
Even for a seasoned Real Estate agent, it is tough to keep up on knowing everything about buying and selling real estate between the legal changes, economic market changes and interest rate changes.    Henry Ford once said that when you hire people who are smarter than you are, it proves you are smarter than they are. The hardest part is trying to find the right agent for you.  You should always work with a seasoned Realtor. If you are working with someone new in the field, ask them if they are working with a season team agent.  New agents do not necessarily have the network nor the marketing ability as a seasoned agent.    So why not hire a person with more education and experience than you.


Acts As A Spam Filter
Agents take the spam out of your property showings and visits. If you're a buyer of new homes, your agent will shield you from relentless calls from builders trying to sell you something you are not interested in. If you're a seller, your agent will filter all those phone calls that lead to nowhere from lookie-loos and try to induce serious buyers to write an offer immediately.  Filtering those phone calls can also help prevent you from being scammed by people pretending to be a Real Estate Agent and buyers that are not who they say they are.


Neighborhood Knowledge
Real Estate Agents possess intimate knowledge or they know where to find the industry news about your neighborhood. They can identify comparable sales and hand these facts to you, in addition to pointing you in the direction where you can find more data on schools, crime or demographics. For example, you may know that a home down the street was on the market for $450,000, but an agent will know it had upgrades and sold at $365,000 after 75 days on the market and after a couple of different purchase agreement offers fell through.


Price Guidance
Contrary to what some people believe, agents do not select prices for sellers or buyers. However, an agent will help to guide clients to make the right choices for themselves. If a listing is at 6%, for example, an agent has a 7% vested interest in the sale, but the client has a 94% interest. Selling agents will ask buyers to weigh all the data supplied to them and to choose a price. Then based on market supply, demand and the conditions, the agent will devise a negotiation strategy. 

Market Conditions Information
Real estate agents can disclose market conditions, which will govern your selling or buying process. Many factors determine how you will proceed. Data such as the average per square foot cost of similar homes, median and average sales prices, average days on market and ratios of list-to-sold prices, among other criteria, will have a huge bearing on what you ultimately decide to do.  Studies have shown that using an agent can net you 13% to 19% more on your home over selling it yourself.

Professional Networking
Real estate agents network with other professionals, many of whom provide services that you will need to buy or sell. Due to legal liability, many agents will hesitate to recommend a certain individual or company over another, but they do know which vendors have a reputation for efficiency, competency, and competitive pricing. Agents can, however, give you a list of references with whom they have worked and provide background information to help you make a wise selection.

 Negotiation Skills and Confidentiality
Top producing agents negotiate well because, unlike most buyers and sellers, they can remove themselves from the emotional aspects of the transaction and because they are skilled. It's part of their job description. Good agents are not messengers, delivering buyer's offers to sellers and vice versa. They are professionals who are trained to present their client's case in the best light and agree to hold client information confidential from competing interests.

Handling Volumes of Paperwork
Many years ago purchase agreements were just a page or two. Today's purchase agreements run ten pages or more. That does not include the federal- and state-mandated disclosures nor disclosures dictated by local laws. Most real estate files average thicknesses from one to three inches of paper. One tiny mistake or omission could land you in court or cost you thousands!

Answer Questions After Closing
Even the smoothest transactions that close without complications can come back to haunt you. For example, taxing authorities that collect property tax assessments, doc stamps or transfer tax can fall months behind and mix up invoices, but one call to your agent can straighten out the confusion. Many questions can pop up that were overlooked in the excitement of closing. Good agents stand by ready to assist. Worthy and honest agents don't leave you in the dust to fend for yourself.

Develop Relationships for Future Business
The basis for an agent's success and continued career in real estate is referrals. Few agents would survive if their livelihood was dependent on consistently drumming up new business. This emphasis gives agents strong incentives to make certain clients are happy and satisfied. It also means that an agent who stays in the business will be there for you when you need to hire an agent again. Many will periodically mail market updates to you to keep you informed and to stay in touch.

Abstract of Title VS Title Insurance

An abstract of title summarizes the various instruments and documents affecting the title to real property, whereas title insurance is a comprehensive indemnity contract under which a title insurance company warrants to make good a loss arising through defects in title to real estate or any liens or encumbrances thereon.

Abstract of Title
A full summary of all consecutive grants, conveyances, wills, records and judicial proceedings affecting title to a specific parcel of real estate, together with a statement of all recorded liens and encumbrances affecting the property and their present status. The person preparing the abstract of title, called an abstracter, searches the title as recorded or registered with the county recorder, county registrar, circuit court and/or other official sources. The abstracter then summarizes the various instruments affecting the property and arranges them in the chronological order of recording, starting with the original grant of title.

The abstract includes a list of public records searched and not searched in preparation of the report. In summarizing, a deed in the chain of title, the abstracter might note the recorder’s book and page number, the date of the deed, the recording date, the names of the grantor and grantee, a brief description of the property, the type of deed and any conditions or restrictions contained in the deed.

The abstract of title does not guarantee or ensure the validity of the title of the property. Rather, it is a condensed history that merely discloses those items about the property that are of public record; thus, it does not reveal such things as encroachments and forgeries. Therefore, the abstracter is usually liable only for damages caused by his or her negligence in searching the public records.

Title Insurance
A comprehensive indemnity contract under which a title insurance company warrants to make good a loss arising from defects in title to real estate or any liens or encumbrances thereon. Unlike other types of insurance, which protect a policyholder against loss from some future occurrence (such as a fire or auto accident), title insurance in effect protects a policyholder against loss from some occurrence that has already happened, such as a forged deed somewhere in the chain of title.

Needless to say, a title company will not ensure a bad title any more than a fire insurance company would insure a burning building. However, if upon investigation of the public records and all other material facts, the title company feels that it has an insurable title, it will issue a policy. A title insurance policy will protect the insured against losses arising from such title defects (“hidden risks”) as the following:

• Forged documents such as deeds, releases of dower, mortgages
• Undisclosed heirs; lack of capacity (minors)
• Mistaken legal interpretation of wills
• Misfiled documents, unauthorized acknowledgments
• Confusion arising from similarity of names
• Incorrectly given marital status; mental incompetence

In addition, and most important, the title company will agree to defend the policyholder’s title in court against any lawsuits that may arise from defects covered in the policy. A title insurance policy consists of three sections:

• The agreement to ensure the title and indemnify against loss
• A description of the estate and property being insured
• A list of conditions of and exclusions to coverage

These uninsured exclusions include such title defects as:

• Rights of parties in possession, not shown in the public records, including unrecorded easements
• Any facts that an accurate survey would reveal (e.g., encroachments)
• Taxes and assessments not yet due or payable
• Zoning and governmental restrictions
• Unpatented mining claims
• Certain water rights

Title indemnity is made as of a specific date. Except with certain policies, a one-time premium is paid, and coverage continues until the property is conveyed to a new owner (including conveyance to an insured’s wholly owned corporation). It does not run with the land. Coverage is thus limited to the tenure of the named insured, and certain of the insured’s successors by operation of law.

Most policies provide, however, that the coverage does not terminate “so long as an insured retains an estate or interest in the land, or owns an indebtedness secured by a purchase-money mortgage given by a purchaser from such insured, or so long as such insured shall have liability by reason of covenants of warranty made by such insured in any transfer or conveyance of such estate or interest.”

There are two major types of title insurance, the owner’s policy, and the mortgagee’s or lender’s policy. An owner’s policy is issued for the benefit of the owner, the owner’s heirs and devisees or, in the case of a corporation, its successors by dissolution, merger or consolidation; but the policy is not assignable. For an added premium, title companies will issue an extended coverage owner’s policy for certain properties to cover possible title defects excluded from standard coverage. Such title defects may include the rights of parties in possession, questions of a survey and unrecorded liens.

A lender’s policy is issued for the benefit of a mortgage lender and any future holder of the loan. It protects the lender against the same defects as an owner under an owner’s policy (plus additional defects), but the insurer’s liability is limited to the mortgage loan balance as of the date of the claim. In other words, liability under a lender’s policy reduces with each mortgage payment and is voided when the loan is completely paid off and released. Because of this reduced liability, a lender’s policy usually costs less than an owner’s policy. Under a mortgagee policy, the loss payable is automatically transferred to the holder of the mortgage. Upon foreclosure and purchase by the mortgagee, the policy automatically becomes an owner’s policy, insuring the mortgagee against loss or damage arising out of matters existing before the effective date of the policy. In addition to these policies, title companies also issue policies to cover the leasehold interests of a lessee, a lender under a leasehold mortgage or a vendee under a contract for deed.

In the event of a loss under a mortgagee’s policy, the insurer pays the mortgagee the balance due on loan, and the owner is thereby relieved from making further payments. However, the owner still stands to lose the property and the investment. For this reason, it is sound practice to obtain an owner’s policy where the lender is already requiring a mortgagee’s policy; there is usually only a slight additional premium to issue both policies simultaneously. Some areas, by custom, require that both policies be purchased.

Local practice and custom usually dictate which party to a transaction buys what type of policy. As an example, a seller may pay for the owner’s policy, guaranteeing the title, whereas the buyer may pay for a lender’s policy, protecting the mortgagee’s interest in the real estate. Title insurance may be required by custom, even where the title is registered in the Torrens system, to protect against items not shown on the transfer certificate of title (unrecorded liens, such as federal tax liens).

The Federal National Mortgage Association and Federal Home Loan Mortgage Corporation also recognize the importance of title insurance, and they require it on every loan they buy.

Title insurance premiums vary throughout the country, but their costs reflect the two basic title insurance considerations— the cost of title examination and cost of risk insurance. The average cost is approximately 0.5 percent of the cost of the property. It takes a week for the policy to be issued, much less than the time it would take to prepare an abstract of title. If the same title company has recently issued a policy on the same property, then it may give a discount called a reissue rate.

Note that, if an insured property appreciates in value (as when an expensive improvement is made), it is good practice to increase the amount of title insurance to cover possible increased losses. Newer policies have an “inflation guard” endorsement to cover appreciation.

Why young adults aren't buying homes

High student loan debt is one main culprit for the lower rate of homeownership over the past decade, a new study from the Federal

Reserve shows.

Homeownership of all Americans has fallen 4 percentage points from its peak of 69 percent in 2005. It has dropped the most—from 45 percent to 36 percent—among those 24 to 32 years old.

“In surveys, young adults commonly report that their student loan debts are preventing them from buying a home,” Fed researchers Alvaro Mezza, Daniel Ringo, and Kamila Sommer write in the paper. “Our estimates suggest that increases in student loan debt are an important factor in explaining their lowered homeownership rates, but not the central cause of the decline.”

The Fed’s paper did not identify the other causes for the decline in the homeownership rate among younger adults. Researchers attributed about 20 percent of the drop in the rate to high student loans.

Every increase of $1,000 in debt contributed to a 1- to 2-percentage-point drop in homeownership, the study finds. Researchers note that this equates to about 400,000 people who otherwise would have expected to own homes but have not because of their student loan debt.

“This finding has implications well beyond homeownership, as credit scores impact consumers’ access to and cost of nearly all kinds of credit, including auto loans and credit cards,” the researchers noted in the report. “While investing in postsecondary education continues to yield, on average, positive and substantial returns, burdensome student loan debt levels may be lessening these benefits.”

The National Association of REALTORS® has also conducted studies showing the impact student debt is having on delaying homeownership. A 2017 NAR study found that student debt delayed homeownership by about seven years. It also had an impact on the rest of young adults’ lives, such as holding millennials back from making financial decisions and reaching personal milestones, such as changing careers, continuing their education, marrying, or even having children.

What’s the Real Impact of the Government Shutdown on Real Estate?

Is the government shutdown impacting the real estate market? It depends which part you’re looking at.

“A National Realtor Association survey of 2,211 members found 75 percent had no impact to their contract signings or closings. However, 11 percent did report an impact on current clients and 11 percent on potential clients,” said the National Association of Realtors. Among those impacted by the shutdown, 17 percent had a closing delay because of a USDA loan.”

The most impacted areas of the market surround:

Buyer uncertainty
Consumer confidence is always a topic of conversation when it comes to real estate, and with rising interest rates and a roller coaster stock market, a government shutdown only makes the issues that much stickier. According to the NAR study, “The most common impact, at 25 percent, was the buyer decided not to buy due to general economic uncertainty, though they were not a federal government employee.”

Loan approvals/Closing delays
Whether or not your loan and/or closing is impacted by the government shutdown largely depends on the type of loan you are getting. If you're getting a Federal Housing Administration or Department of Veterans Affairs loan, it's likely you can expect delays in the underwriting process, and it's possible your closing date will be pushed back as well.

HUD has said that while new FHA loans will be endorsed during the shutdown, “Some delays with FHA processing may occur due to short staffing.” In addition, new Home Equity Conversion Mortgages (HECM), more commonly referred to as reverse mortgages, are on hold for now.

While the White House has insisted that the Internal Revenue Service (IRS) process tax refunds during the shutdown, it’s made no such mandate in regards to helping consumers who need info because they’re buying a home. That means that buyers won’t be able to requests tax return transcripts, which may be required by lenders, thereby delaying the purchasing process.

Want to Get the Most Money from The Sale of Your Home? Use These 2 Tips!

Every homeowner wants to make sure they maximize their financial reward when selling their home. But how do you guarantee that you receive the maximum value for your house?

Here are two keys to ensure that you get the highest price possible.

1. Price it a LITTLE LOW 

This may seem counterintuitive, but let’s look at this concept for a moment. Many homeowners think that pricing their homes a little OVER market value will leave them with room for negotiation. In actuality, this just dramatically lessens the demand for your house (see chart below).

Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price it so that demand for the home is maximized. By doing this, the seller will not be fighting with a buyer over the price but will instead have multiple buyers fighting with each other over the house.

HGTV gives this advice:

“First impressions are everything when selling your home. Studies have shown that the first two weeks on the market are the most crucial to your success. During these initial days, your home will be exposed to all active buyers.

If your price is perceived as too high, you will quickly lose this initial audience and find yourself relying only on the trickle of new buyers entering the market each day. Markets are dynamic, and your price has an expiration date. You have one chance to grab attention. Make sure your pricing helps you stand out on the shelf — in a positive way.

2. Use a Real Estate Professional

This, too, may seem counterintuitive. The seller may believe that he or she will make more money without having to pay a real estate commission, but studies have shown that homes typically sell for more money when handled by a real estate professional.

Research by the National Association of Realtors in their 2018 Profile of Home Buyers and Sellers revealed that,

“the median selling price for all FSBO homes was $200,000 last year. However, homes that were sold with the assistance of an agent had a median selling price of $264,900 – nearly $65,000 more for the typical home sale.”

Bottom Line

Price your house at or slightly below the current market value and hire a professional. This will guarantee that you maximize the money you get for your house.

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