Why Using A Realtor Is Important Whether You Are Buying Or Selling

Approximately 85 percent of home sellers use a real estate

professional to sell their homes. But did you know that buyers who are represented are also more likely to have a successful transaction?

Getting a purchase closed in today's market is complex. Buyers face many more hurdles including stricter financing and a confusing marketplace of listed homes, for-sale-by-owner homes, foreclosures and short sales.

Your area may be in a buyer's market with lots of inventory available and falling prices, or you may be in a seller's market with homes selling out from under you before you can write an offer. Either way, you'll be better off navigating the market with an experienced guide.

To take advantage of today's near-record low interest rates, attractive inventory levels, and price rollbacks from decade highs, you need a sales professional to help you close the deal.

A good real estate professional understands the current market. He or she has house-by-house neighborhood experience and help you obtain the right house at the best price and terms. Professionals share their knowledge of homes coming on to the market, through the multiple listings service and through networking.

You can search for homes online, but do you know about the homes coming onto the market? Your real estate professional will tell others about you to make sure you learn about upcoming homes for sale before they hit the online sites. Many homes are bought and sold this way, without a sign ever going into the yard.

Real estate professionals work primarily on commission. If the deal of the century is about to come on the market, who do you think your agent will tell? The buyer who thinks he'll get a better deal by working every agent, or the buyer who is loyal?

Here are some tips on how to work with your own agent:

If you want great service, show appreciation and commitment. 

• Get prequalified with a lender by sharing your financial records so you know exactly how much home you can buy.

• Work with only one agent. If it's customary in your area, sign a buyer's representation agreement.

• Stay in contact. If you want to look at open houses or builder homes, invite your agent to come along. If she's not available, show your loyalty by telling the salespeople you meet that you are already represented.

• Don't hide pertinent information from your agent, or she will be in the dark about key issues that could impact your transaction negatively.

• Once you find the house you want, the work really begins. You'll need help navigating negotiations, loan approval, seller's disclosures, inspections, repairs, and much more. Your agent will share your risk, and will make sure you go into any home purchase with your eyes wide open.

Take advantage of the greatest homebuying resource available - a real estate professional.

Tips for Buying a Home With Cash

Cash is king. If you are flush with cash and ready to make a deal, sometimes it’s easier to get acceptance on a lower offer in a competitive situation. Because cash buyers get to skip over the treacherous loan qualification process, cash deals are considered a “sure thing” and therefore more attractive to sellers.

Here are some tips for home buying with cash.

1. Leverage your position to the max. Because cash buyers get to skip over the loan qualification process, cash deals are more attractive to sellers in many cases. Take advantage of this position and ask for terms such as a closing timeline, home repairs, cash allowances, or a homeowner’s warranty. You can even ask sellers to cover closing costs as a cash deal contingency.

2. Work with a real estate broker or lawyer experienced in closing cash deals. This tip could save you money and prevent legal hassles down the line. You want someone on your side with experience and perspective on this kind of deal within your market. Even cash deals can hit snags and you want to ensure that you have all of your legal bases covered and that you have clear title on the property when the transaction is complete.

3. Make sure that buying a home with cash is right for you financially. Before you plow all of your cash into purchasing a residence, you want to carefully consider all of your investment options. By choosing a different financial instrument with a rate of return higher than the cost of mortgage interest, you may be able to make more on your money than a mortgage costs in interest. Before you tie your cash up in a home, be sure to have plenty of additional money stashed for emergencies and other needs. Also, do your due diligence and look for investments that could make you more than a mortgage would cost you (if you’re eligible for a mortgage).

4. Give yourself an out with a “right to inspect.” Because you’ll have generally less information about the property prior to close, you definitely want to provide yourself with an easy out should the home end up being a lemon. While a home inspection may add a few days to the closing cycle, it is worth it if you’re buying a home with cash. If you’re feeling especially gutsy and the property has been on the market for a while or the seller seems desperate to close, ask him or her to pay for the inspection. Take advantage of your position! Remember, cash is king.

5. Estimate sale AND post-sale costs. Buying a home with cash can save a pretty penny on the cost of a transaction – and on mortgage interest over the lifetime of a loan. Cash buyers are able to avoid loan origination fees, the cost of a property appraisal, some closing costs and other lender imposed fees. Although you save a lot of money upfront, the transaction can end up costing you in the end. You’ll make a purchase decision with less information – which could mean a lower valuation or higher taxes than anticipated down the line. It also might end up costing you in terms of unexpected home improvement costs or survey and title issues. You also may be getting less house for your money by forgoing a mortgage.

6. Understand the benefits of holding a mortgage that you may be sacrificing. In addition to the tax benefits that you’ll be walking away from, mortgages for primary and secondary residences can provide a high-quality installment loan for your credit report. This type of “good debt” can make it easier to borrow money or get favorable rates on other financial products such as credit cards.

7. Ask your agent to check the “appraisal contingency” box on the purchase agreementand have the home appraised. Although the appraisal may cost a few hundred dollars, an appraisal is the only way to ensure that you are purchasing the home at its true current market value.