How to Determine What to Offer During House Transaction?

Luckily, the home you want to make an offer on will most likely fall between these two extremes. Even so, there’s always the pressure to act fast or risk losing your dream house. If you have good taste and like the home, chances are others will too—usually at the same time. Experienced agents can relate many instances when homes have sat on the market for weeks with no activity, and then suddenly several offers came in the same day.

The first preoffer step is have your agent pull up a list of all the homes that have sold in the area over the past three months. Notice what the average listing price to sales price is. In a normal market, it’s in the 2 to 5 percent range. Next, look at the average days-on-market and compare with how many days the home you’re interested in has been for sale.

A note of caution here: A home that’s been on the market for two or three months doesn’t mean it’s been sitting there with no action. There could have been offers that didn’t work out or a sale could have failed, putting it back on the market. The MLS (Multiple Listing Ser-vice) days-on-market counter is like a taxi meter; it doesn’t stop or slow down until the ride ends. So it doesn’t hurt to ask the sellers if they’ve had any deals that have fallen through. Next, looking at past sales of similar homes in the area puts you in the ballpark as to value. But, other data such as days on market, area list price to sales price ratio and why the sellers are moving help you fine tune the offer. A transfer, job loss, or some other pressure situation as well as the home’s condition are also important factors. Russ and Linda went this route when they bought their first home. Their lender pre-qualified them for a $165,000 conventional with 10 percent down. Their agent pulled up all the homes in the areas they were interested in between $160,000 and $170,000. The list totaled 27 properties.

Going down the list with their agent, they were able to quickly eliminate 16 homes from the list—homes that were on busy streets, older homes that had not been updated, and styles Russ and Linda didn’t like. This narrowed the list down to 11 homes they would go through in the next day or two.

The first five homes on the list Russ and Linda looked at were disappointing and not at all tempting. Number eight was a possibility, and the ninth home they went through clicked. It had the feel of home. It was exactly what they were looking for but priced at $167,900. Hurrying through the other two homes on the list confirmed their choice on the well-maintained multilevel on a cul-de-sac. Generally, if two or three homes on the list are possibilities, then going back through these homes a second or even a third time is the best way to narrow your choice down to one. Sometimes the hardest part of house hunting is deciding which home among two or three to write an offer on.

Once you decide on the home you can’t live without, it’s important to put together an offer fast. It’s a competitive world, and other buyers have good taste also. Russ and Linda’s agent, Andrea, swung into action and looked at what other homes had sold for in the area. She noticed that the average listing sold for 98 percent of the list price, and the days-on-market was averaging 37. These are the numbers of a warm seller’s market, and Andrea didn’t think they should go any lower.

Andrea also called the listing agent and found out that the owners were building a new home nearby and it would be finished in about six weeks. That meant pressure was on the sellers to get their home sold, so that should soften the price a little. The next step was to write up the offer and get it presented to the sellers. Russ and Linda decided to offer $163,500, about 3 percent less than the asking price and included the refrigerator in the offer. Andrea then called the listing agent and set up an appointment to present the offer to the sellers that evening.

It’s important to note that when Andrea called the listing agent to set up the appointment, she didn’t disclose the price or terms of the offer. She didn’t want it shopped or used to leverage a competing offer if there were other buyers also looking seriously at the house. As it turned out, the buyers got lucky; no competing offers had come in. The prequalified letter convinced the sellers it was a bird-inthe-hand they shouldn’t pass up, especially when their new home would be finished soon. That the owners had just talked to their builder a few moments before Andrea arrived probably pushed up the pressure a notch or two to accept the offer.

Emotional Factors Are Important in Home Buying

What a home is worth is a complex question, because no two homes are exactly alike. Appraisers rely on past sales of similar properties to establish a value. While that approach can put you in the ballpark, it usually ignores emotional factors that influence what a home ultimately sells for.

To illustrate, one home that was no bigger than others in the area sold for nearly $8,000 more than what similar homes had sold for. What did this frame cottage-style house have that the others didn’t? First, it had a lot of curb appeal. The owners installed vinyl siding and a new roof and kept the lawn and flower beds in top shape. White birch trees framed the house and contrasted with a dark green manicured lawn. It was one of those small homes you drive by and immediately think of home and hearth and swear you smell fresh bread baking. Next, the inside was freshly painted in a neutral color with newer carpeting, also in a neutral color. Nothing fancy, just a fresh clean look. No House Beautiful decorating here. Walk in, and there’s nothing to distract you from imagining your pictures, your furniture, and your ideas of how the house should be decorated. It was an emotional trip that three buyers took, and they ended up competing to see whose offer would prevail. With condos and co-ops, the interior emotional appeal is even more critical, since the curb appeal and exterior of all the units are the same. The buyer must get a favorable impression of the development first. If the development passes muster, then the unit that has the most appeal is the one that will sell first.

Most experienced real estate agents agree that a home is really worth what someone is willing to pay. A home may have an expert appraisal for $200,000, but if the colors, the way it sits on the lot, or the floor plan don’t appeal to buyers, it can languish on the market and end up selling for $185,000 or less.

Many sellers don’t understand this. They get an inflated drive-by appraisal from a lender for a home equity line of credit, and a price gets imprinted in their minds. Sometimes it takes months of being buffeted by the market and rejected by dozens of buyers before they get a clue that maybe they’re overpriced.

On the flip side, a home may appraise for $185,000. But the colors flow, the decorating is superb, there are few homes for sale in the area like it, and five buyers are making offers. In this case, the selling price could easily end up at $200,000.

Getting the Best Deal

Once you’ve created a list that crystallizes your thinking on the type of home and amenities you want, the next step is narrowing down your choices by looking at condo projects and neighborhoods and going through homes and open houses. From this activity, certain neighborhoods, projects, and home styles start standing out, and your shopping becomes more focused.

It won’t be long before you walk into a house or condo and know that this is it. It has the feeling of home, and an emotional attachment develops as you walk through.
It can get both exciting and stressful when you stand in the entry and know this is the house you want. This is what you’ve been searching for. You want the home, but you also want the best deal you can get. So what do you offer? How low an offer can you make and not insult the sellers or lose the house? How can you protect yourself from problems?

How to Do Internet House Hunting?

Realtor.com is the premier Web site for finding a home. This is a realtor site that has all the homes listed in the United States. However, it doesn’t have homes for sale by owners. These you’ll have to find through classified ads and lawn signs. Many newspapers now have their classified ads on a Web site that allows you to narrow listings down by area. To access links to newspaper real estate sections in your area, go to www.newspaperlinks.com and click on your state and city. Should you find a home you want to see that is listed by a realtor, you’ll need to call the agent for an appointment. If the home turns out to be your dream home, you have two options. First, you can sign a dual agency agreement with the listing agent, by which he represents both you and the seller. In this agreement, the agent agrees to walk a fine line and not disclose anything to either party that would jeopardize their interests. If the agent is a reputable person, this can work out. You’ll have someone who can write up the paperwork and is motivated to follow the sale through to closing. Dan and Kim went the dual agent route (also known as limited agency) when they bought their home. They drove by a home that looked interesting, so they called the agent’s number on the sign to go through the house.
When they saw the inside, the home wasn’t quite what they wanted, but the realtor had another home that had just come on the market that might fit what Dan and Kim were looking for. It was on a cul-de-sac, and the neighborhood had young families with school-age kids.

Dan and Kim loved the house and decided to make an offer. Before the realtor wrote up the purchase agreement, he went over a Limited Agency Consent Agreement with them that both the buyers and sellers sign.
In this agreement, the agent agrees in writing to represent both parties and not disclose anything that would hurt either party’s bargaining position. For example, if the buyers were prequalified for $175,000 but they wanted to offer $160,000 on a house, the agent wouldn’t disclose that to the sellers. Also, the agent wouldn’t disclose that the sellers would accept less than the listed price. His job is to write up the price the buyers want to offer and present to the sellers for acceptance or a counteroffer.
In this case, Dan and Kim made an offer $2,500 less than asking price, and the sellers accepted. Both parties were happy with the result. In presenting the offer, had the agent known that the sellers would have gone for $5,000 less, he could not have disclosed this. Nor could he have disclosed that the buyers were qualified for more than they offered.

Some consumer advocates object to dual agency as being a conflict of interest. True, it has that potential, but in reality, there are some pluses:
One, the agent is motivated to do his best to put the sale together with the price and terms you offer.

Two, it’s easier to deal with one agent, especially if the agent is a professional. The deal can go a lot smoother because the agent knows both parties in the transaction.
Three, the seller is paying the realtor fees, so you get the agent’s help for free, which is not a bad deal.

Of course, to protect you in the transaction, you’re still going to hire a home inspector to check out the house, and the offer you write up will be subject to the inspector’s report.

The second option is to not sign a dual agency agreement, but you should get your own help writing up the offer. If you’re uncomfortable with dual agency or don’t like the listing agent, getting a buyer’s agent or an attorney to write up the deal may be the best way to go. Once an offer is in writing, it’s given to the listing agent to present to the sellers for acceptance or counteroffer.

How to Shop for a Home on Your Own?

After you’ve gotten a preapproval letter from your lender, you’re good to go. Working with an agent can make house hunting much easier, and the seller normally pays the buyer’s agent. But if you feel for some reason that you don’t want work with an agent, you’ll need to line up a real estate attorney to write up the deal.

The next step is to check in the local Yellow Pages for a home inspector who is a member of the American Society of Home Inspectors (ASHI). With these resources lined up, you’re ready to check out classified ads and homes-for-sale publications.
Deciding what homes to look at from ads can be a frustrating experience. Owners as well as real estate agents often omit the address or price, forcing you to call them. The Internet is a little better, but in the end you’ll still need to call the owner for an appointment.

If you know the area and the neighborhoods you want to live in, the battle is half won. The strategy then becomes driving through the neighborhoods looking for signs that pop up. When you find one, get the phone number and call the owner to see the house.

If you are new to an area and don’t know the neighborhoods, you’ll need to do some homework. First, determine how far from work you want to commute. Second, from homes-for-sale publications, ads, and going to www.realtor.com, make a list of the neighborhoods in your price range and drive through them. This will take some time and a few tanks of gas to narrow down the list to neighborhoods you want to live in. Once you’ve done that, it then becomes a matter of scouring ads and looking for lawn signs.

Nine Things You Should Know Before You Buy a New Home

1. Builders often try to pressure you to use their lender. They want to minimize deals falling through, and controlling the financing is one way to do this. They may offer you upgrades or buy-downs to go with their financing. Of course, the best way to find out if these incentives are really free is to get a Good Faith Estimate from the builder’s lender. Compare it with estimates from a couple of other lenders, and the best deal will become obvious. You’ll often find that the teaser interest rates advertised will cost you, and you can get just as good a deal, or a better one, with another lender. If you do find a better deal than the builder is offering, get a qualifying letter from your lender. This should satisfy most builders that you’re a genuine, qualified buyer.
2. Get copies of the CC&R (covenants, conditions, and restrictions) and HOA (Homeowners Association rules). Read them over carefully, because these document will tell you what you can and can’t do with your home. For example, you might be prohibited from parking RVs (recreational vehicles) next to your home, or there may be restrictions on how and what your landscaping will be. One homebuyer had a motor home that he wanted to keep on an extended driveway next to his home. Unfortunately, he didn’t read the CC&Rs before he bought. When he started to work on his driveway extension, he found out quickly that RVs were not allowed on the home sites. This ended up costing him $35 a month at an RV storage about a mile away.
3. 3. Research the builder. Check with the Better Business Bureau and a state contractor’s board if you have one. Research not only the company but also the builder’s name. You want to know if there have been complaints filed, how many, and if the builder has gone bankrupt recently. If the company or builder has generated lots of complaints, seriously consider shopping elsewhere.
4. Walk around the community and talk to at least three new homeowners. Ask them how they like the builder and how fast problems, or complaints are handled. Especially important, find out how many items were on their punch list and how long it took the builder to take care of them. The punch list is a list of mistakes, problems, or anything the builder has to take care of that you find during final walkthrough. If the new owners all tell you the punch list is more than a dozen items and repair is slow, that’s a red flag.
5. Ask the salesperson or builder representative how close to the completion date homes are finished. If possible, get a copy of the construction schedule. If the builder is behind a month or two on projections, this may cause you problems if you have to be out of a home or rental on a certain date. This is another red flag to consider.If you find a model you absolutely love and want to put a deal together, make sure you get everything you want in writing. An oftenused saying in real estate, painfully learned and relearned, is: ‘‘If it isn’t in writing it doesn’t exist.’’ Verbal promises are nothing more than hot air, because you can’t enforce anything not in writing.
6. Get a price list of the options and upgrades. Don’t ever sign any paperwork unless you know exactly what an item costs. ‘‘To be filled in later’’ is an absolute no-no. Also, never leave the sales office without copies of all the paperwork. Too many buyers run into problems later because they didn’t get copies of addendums covering upgrades and options. Nathan and Laure found this out the hard way when they bought a home in the first phase of a new community. The salesman told them that a fireplace (a $2,500 option) was included in the model they picked out, and they took his word on it. Several weeks later, when they did a framing walk-through, they noticed the concrete and framing for a fireplace was missing.
7. As it turned out a fireplace for that model was not standard, and the salesperson who wrote up the sales contract no longer worked for the builder. You guessed it—there was nothing in the paperwork about a fireplace. Nathan and Laure had to write a check for half the option or $1,250 to get it added, with the balance due in 30 days. Obviously, they weren’t too happy about it, but there was nothing they could do without losing a sizable deposit if they backed out.
8. This can’t be stressed too strongly. Make sure you get copies of all documents and number the addendums 1/x, 2/x, etc. Missing addendums usually cause the most problems because that’s where changes and contract modifications are written.
9. Make sure you understand the paragraphs in the purchase contract about when you close. Builders often pressure you to close before the house is finished or the punch items are completed. You don’t want to close before all items are done, so deal with this up front and get it in writing on an addendum if you have to.

How to Shop for the Projects?

The first step after you’ve got that loan commitment in hand is to make a list of the new communities in the area you’re interested in. Before you waste a lot of time driving out to them, call and find out the median price of the homes. Don’t go by the starting price in the advertising. Projects rarely have homes or even sell them at the bottom of their price range.

From the builder’s standpoint, the name of the game is to upgrade you to the maximum you can qualify for. Before that can happen, they have to get you out to the models.

It’s similar to buying a car. You may be attracted to a dealer by the low advertised price, but when you get there, you find it’s a stripped down model. The salesperson then pressures you to upgrade. New homebuilders are masters of this. By the time you get through the options and upgrades, the real price range starts about halfway up the scale. If you plan on this from the beginning, you’ll save a lot of running around. This is not to say that builders are dishonest, just that new home marketing stretches the envelope a little to get people through their projects.

Do’s and Don’ts of Buying a Fixer-Upper

• Get a list of recent home sales and statistics from a real estate broker on the area you’re interested in. Note if the values are going up or down and how long it’s taking homes to sell.
• With the help of a contractor, check out the property as much as possible and determine the fix-up costs. Get written bids on work you can’t do yourself.
• Here’s where the rubber meets the road. You have to be honest about whether you have the time and expertise for what needs to be done. Make a list of what you can do and what you’ll need to hire out. Get those bids in hand and add in the cost of the materials for what you plan to do yourself. Add that total to the cost of the home. How does the total cost compare to the projected market value when you’re finished?
• If possible, make any offers contingent on a professional home inspection. This will cost you about $300, but it’ll be worth it if it saves you from an expensive mistake. If the report comes back with surprises, you can use it to renegotiate the price to cover repair of the ‘‘surprises.’’

How to Find a Fixer-Upper?

It may by now be a cliche´, but location is the key to finding a fixer upper. Homes in good locations increase in value more quickly and hold their value when the market is down. Most importantly, you’ll be able to build equity for a down payment when you move up. The best sources for finding good deals are the classified ads, word of mouth, the Multiple Listing Service (MLS), and foreclosure sales. And you must become an expert on home values in the areas you’re interested in, so that you can move quickly when a deal from one of these sources pops up.

Networking in your area of choice, especially with knowledgeable and reputable realtors, is a great way to find out about estate sales or houses being unloaded by divorcing couples. Through their computerized MLS system, realtors can also keep you informed instantly of homes coming on the market.
Ron and Ellen bought their first home this way. They had been looking in an area near a small college for several months when a realtor they had been working with called. He was putting a three bedroom bungalow on the market later on in the day that was part of an estate settlement. The heirs wanted a quick, as-is sale and were willing to deal.

The home was in good condition but was dated. The wallpaper had to go, and the wood trim had several layers of paint. But it was exactly what Ron and Ellen were looking for. They made an offer for about $20,000 under market value with no contingencies and a quick closing. Their offer was accepted.
The keys to success in this case were the homebuyers doing their homework on what areas to zero in on, getting their financial ducks in a row so that they could move quickly, and having a willingness to do some messy fix-up work.

In this case, they steamed off the old wallpaper and painted the walls, removed layers of old paint, and restored the wood trim. Ron and Ellen also resanded and refinished the wood floors. It was hard work, but when they were through, the result was stunning. Their next project, when they save more money, is to update the kitchen and bathrooms. That should bring the home’s value up to the neighborhood average. With the area becoming more trendy, this home will appreciate and yield a nice profit in a few years, when Ron and Ellen are ready to move up.

How to do a Reality Check before buying a House?

When you feel you’ve found the home you want, apply the following reality checks to keep your choice from becoming a disappointment. If you drive, is your home east of where you work? Having the sun at your back to and from work is preferable to having it in your face.
Drive by the home you’re interested in at night. Is the home a target for headlights at night? Do cars entering or exiting the street light up the bedroom or create an annoyance? Are there noises in the area at night that will disturb your sleep? Nearby business that you won’t notice during the day can be busy at night.
Likewise, early morning noises can create a problem. Loading docks, shipyards, and train station noise can carry quite a distance in the early morning.

Visit the home on a weekday. Commuters may use the street in front of the house for a shortcut to the freeway. Neighborhoods that are quiet on weekends may be noisy on weekdays. Is the neighborhood compatible with the lifestyle you want? Are you the type of family that likes neighbors with kids? Do you prefer a quiet street and the neighbor next door has a teenager who likes to rebuild motorcycles on weekends? The best way to find out about a neighborhood is to walk around and talk to several neighbors. If there are problems or negatives, you’ll hear about them fast.

Finally, have your agent run a computer list of what similar homes have sold for in the neighborhood for the last 6 to 12 months. Note the days they were on the market before they were sold and the gap between list price and sales price. Has this gap widened or narrowed in the past few months? How many homes in the area are rentals, and are the numbers increasing? You want to make sure the area is on the upswing. If you’re like many Americans, you’ll move in the next six years, and trying to sell a home in a declining area will not be fun or profitable. Planning an exit strategy is as important as buying.

How to Narrow Down Your Choices when Buying a House?

Go over the list you’ve worked up carefully with your agent so she can enter your preferences in the multiple-listing computer. Matching your criteria against the thousands of homes on the market will take only a few minutes. The resulting printout should contain only those homes in your price range, areas of interest, and with the amenities you selected.

How many homes do you need to look at? On the average, most buyers narrow the list down to between five and twelve homes if they know what they want. Still, it’s possible that the first, second, or third home you see could be love at first sight. In that case, it’s a good idea to accelerate the search and eliminate the rest of the homes on your list. Also have your agent update the list for any similar homes to the one you like that may have just come on the market. If the computer comes up with no comparable homes, then you’ll probably want to write an offer ASAP!

Suppose you find the perfect area but no homes are for sale? This can be due to a strong seller’s market or your timing is just off. When this happens, here are two strategies that have proven successful.

1. Have your realtor enter your preferences in the MLS (multiple listing service) computer’s prospect function. Your home specifications will be matched automatically by the computer to new listings as they come on the market each day.
2. If you’ve wondered what it’s like to be a politician, you can do like they do and either phone or knock on doors in the area you’re interested in (weekends work the best). Put together a simple flyer and leave it with everyone you talk to. When homeowners find out there’s a qualified buyer looking in the area, decisions to sell can happen quickly.

Ryan and Sue went this route when they wanted a home in a certain school district and neighborhood, but none were on the market. Being resourceful, they put together a flyer with a picture of their family and a short letter outlining why they wanted to live in the area and asking anyone who was thinking of selling to call them.

A week later, after passing out about 75 flyers, Ryan and Sue got a call from a couple about to retire who had been thinking of downsizing and moving to a warmer state. The flyer prompted the couple to decide that opportunity was knocking and now was the time to move. On inspecting the home, Ryan and Sue found it was just what they had been looking for, and a deal was put together.

Creating a Wants and Needs List before Buying a House

You start by asking yourself the following questions:

1. How far are you willing to drive or spend time commuting? That will determine the radius of your search area.
2. How far away are the schools, and is busing required? If you’re interested in a certain school, verify the boundaries with the school district, because they can change yearly.
3. What style of home are you interested in and why?
4. What type of floor plan will be the most compatible with your lifestyle?
5. How close do you need to be to shopping, houses of worship, and recreational facilities?

Make a Shopping List for your Dream House

Before you hit the road looking at homes, you must take the next step—a crucial one—and work up a checklist of what’s important to you in a home.
It’s helpful to divide your list into ‘‘must have’’ and ‘‘like to have’’ amenities. This won’t be easy and may take some soul searching, but the more time you spend crystallizing your thinking, the easier and shorter the search.
For instance, Randy and Jennifer looked at dozens of houses and spent a big chunk of their Saturdays driving by open houses. Whenever they walked through a home she liked, he didn’t. What got Randy excited, Jennifer balked on. It had the trappings of a power play—if she couldn’t get her kitchen island and crafts room he wasn’t going to get his garage.

The real problem was that Randy and Jennifer had never sat down and worked out their priorities—the important things they both wanted in a home in the order of their importance. They just started looking at homes, assuming that everything would fall into place, that their tastes and dreams would mesh into a cute cottage with a white picket fence. Reality, unfortunately, is usually much different. However, once Randy and Jennifer—with a little prodding—met with an experienced agent who was able to get them talking about their ideas together, it started coming together. They were able to work out compromises and establish a workable plan. They did this with a wants and needs list.

Basics on Home Buyer Agency

Buyer agency forms vary from state to state, but the basics are similar and cover the following:

• Any agent representing a homebuyer must have a written agency agreement defining the scope of the agency.
  
• Buyer’s agents act solely on behalf of the buyer and owe the buyer their loyalty.
• All information between agent and buyer that would weaken the buyer’s bargaining position is to be kept confidential.
  
• The buyer’s agency accounts for all earnest money deposits in the trust account.
• An obligation exists to disclose to the seller and other agents on initial contact that a buyer’s agency exists.

Of course, this agency agreement does not permit the agent to misrepresent the buyer’s financial condition or ability to perform when presenting an offer.

In those cases when an agent represents both buyer and seller it’s called dual or limited agency. There is some controversy with dual agency, and in some areas brokers feel the potential liability is great enough to avoid it. But, the majority of brokers will work with you, and usually both sides are happy with the results. Most problems associated with dual agency have been the agent’s failure to properly disclose that he was working for both parties.

State real estate regulators consider failure to disclose one of the cardinal sins. As with other agency agreements, dual or limited agency paperwork will vary from state to state, but the common framework is: (1) an agent who represents both buyer and seller must have a written agreement with both parties consenting to and defining the scope of the limited agency, and (2) because an agent who acts for both buyer and seller is in a contradictory position, the agent must be neutral and cannot disclose any information that will harm either side’s bargaining position.

An emerging concept called transaction brokerage is gaining momentum across the country. A transaction broker works with the consumer without establishing an agency relationship. The agent in effect becomes a facilitator working with a buyer or seller to put the deal together. It is hoped that the facilitator option will limit liability for the agent and the seller as well as give consumers a choice of how they want to be represented.

From the consumer’s point of view, putting the agents under the spotlight to disclose whom they represent is a plus. It discourages misrepresentation and allows a homebuyer to legally tap into the expertise of the agent.

All About Home Buyer’s Agency

The first thing an agent will likely talk to you about is buyer agency and ask you to sign a buyer’s agency agreement. This can be either an exclusive or nonexclusive agreement.

Exclusive agency means you agree to work with that agent only for an agreed on period of time. For example, if you happen to drop in on an open house and fall in love with it, you’re bound by the contract to get back to your agent to write up an offer. The advantage of an exclusive agreement is the agent will be motivated to work harder for you, knowing his efforts won’t be wasted. Still, it’s a good idea to have in writing that you can cancel the agreement any time by giving written notice. You’ll still be bound to that agent for any properties he has previously shown you. But, you won’t be locked in to an agent who’s not doing a good job. Before you sign an agency agreement, make sure the time frame for the agent getting a commission if you buy a home he shows you is not more than 60 days. Some agents like to write in six months, but that’s excessive. If an agent is doing a good job for you, then this paragraph won’t be a problem.

Checking the nonexclusive option means you are not bound to that agent, but you must use him on any properties he has shown you. You can sign a nonexclusive agreement with as many agents as you want. But that can be counterproductive, because none will take you seriously. It’s best to go exclusively with one agent you like who can do a good job for you. Remember, loyalty is a two-way street.

How to Narrow Down the List when Buying a House?

Finding a good realtor is like finding a good lender. You talk to at least three agents before you commit. If you know someone who has bought a home recently and was happy with the agent, then add that agent to the list. Other excellent sources are mortgage lenders and title people. They know who the good agents are because they work with them on a daily basis and are aware of how good a job they’re doing for their clients.
After you’ve put together a short list of three or four agents, give them a call, and chat about their expertise in the area you’re interested in. Set up an appointment with those you feel most comfortable with. If you eliminate one or two with your phone call, that’s fine. You’ve saved some time.
Don’t automatically assume that the area superstar agent will be your best choice. She may be so busy that you end up working with an assistant most of the time. A newer agent who knows the area well, doesn’t have a lot of clients, and is willing to work with you can be a good choice. Make sure the agent has a computer and is multiplelisting fluent.
Another important attribute you’re looking for is an agent who will listen to what you want, who takes the time up front to understand your needs and not try to sell what she wants you to buy. If an agent shows you homes out of your price range and area or pressures you to buy a home you don’t feel comfortable with, get another agent fast. This one doesn’t have your best interests at heart. Finally, make sure the agent you choose has a cell phone and is easy to contact. Fast communication is important. With current technology there’s no excuse for an agent not getting back to you within an hour or two of when you leave a message. If you get voice mail every time you call and she is slow to get back to you, seriously consider getting another agent.

How to Find and Work with an Agent?

Realtors are professionals you hire to help you handle important events in your life, namely, buying and selling a home. And like mortgage lenders, home inspectors, and brain surgeons, you want the best. Someone who can be objective, whose expertise you can tap into, who has the experience to get you out of the problems that are bound to come up without costing you a fortune.
Too many homeowners go with Aunt Susan, Uncle Harry, Cousin Joe, or a neighbor who just got his real estate license. The last thing you want to do is entrust one of the most important things in your life to an amateur. You’re talking about hundreds of thousands of dollars, your family’s happiness, and future well-being. If you don’t get a good professional, then you’ll feel the pain most when they make a mess of things and you have to pay the big bucks.
A typical example is when Aaron and Randi decided to buy their first home; they called Randi’s Aunt Wendy, who had just gotten her real estate license, to find them a home. The first thing they did was pile inWendy’s car and start looking at homes. They looked at $90,000 to $250,000 homes from one end of the county to the other. At first it was fun, but then it got frustrating. They were making zero progress toward finding a home. Wendy was clueless. She thought that if she showed enough homes, they might get lucky and find one that worked. Finally, out of desperation, Wendy asked her new broker to assign an experienced agent to help out.
With professional help, things improved quickly. Aaron and Randi met with a lender and got a prequalified letter and were able to zero in on homes they could afford. Within a few days, they made an offer on a cute three-year-old ranch with a big yard.
Fortunately, this situation worked out and the damage was limited to a couple of weeks of spinning wheels and a little frustration. In the end, the buyers found a home and Wendy learned a few hard lessons about working with clients.

Don’t Forget the Schools When Buying a House

One of the big contributors to how desirable an area is are the schools. An area that has a reputation for good schools will have homebuyers actively seeking homes there. Realtors will advertise that their listings fall within certain school boundaries, knowing that will attract serious homebuyers.
When you can find a good area with desirable schools, you’ve got a powerful combination for rapid home appreciation. In a seller’s market, these homes will appreciate faster and for more money and hold their value better in a down market. You can go to www.schoolmatch.com and key in data for the schools in your
area of interest to find out how they are rated. However, this is only one tool. You’ll also need to talk to parents in the neighborhood to get a realistic picture.
The bottom line is to go for the best location you can afford. A bigger house in a less desirable area is not as good a deal as a smaller home in a better area. In addition, always factor in the school system; it influences an area’s desirability and value. Even if the dog and/or cat are all the family you’ll ever have, it’s still wise to buy in a good school district. Resale is easier and more profitable if the area has a reputation for good schools.