Thursday, September 13, 2007

I Have the Internet - Why Do I Need a Realtor When I Buy a Home?

The internet is great. Never before have home buyers been so empowered. With the internet it is possible to research homes in another town, compare prices, size, features, etc. without ever speaking to a real estate professional.

If that’s the case, why should anyone ever use a Realtor to buy property? Isn’t that a waste of time? Not if making a good buying decision is the main objective. The internet can offer data but it can not interpret it. That’s the big advantage of working with a Realtor. Realtors not only know the market but they know how to interpret it.

A Realtor doesn’t just spend time working with buyers and sellers. Realtors study market trends. Which areas of town are appreciating fastest? Where are properties turning over quickly and where is inventory piling up? What features are buyers looking for that they are willing to pay more for? What features make a home dated in buyers’ eyes?

All of these are questions that Realtors research every day. With over 7000 resale properties on the market in the Naples area at any given time, and thousands more being built it is a full time job to stay on top of this ever-changing market.

Features that might be considered standard in one neighborhood could be overbuilt in another. Knowing that properties are taking longer to sell in one area than in a comparable area might make a difference in what price a buyer might want to offer. Even knowing what government or environmental regulations are new or pending can make a difference in a home’s value in the future.

Most new communities are not found on the internet through the same sources as resale homes. It makes it difficult for a prospective buyer to compare apples to apples. Realtors tour new communities on a regular basis and track their sales as well.

This market demands constant education. Seminars put on by the Naples Area Board of Realtors, the Collier County Building and Industry Association, and others are invaluable resources. Realtors work with appraisers, home inspectors, lenders, and other professionals on a regular basis. These become sources for market information as well.

Buyers can use the internet to save time and to get ideas. They can eliminate homes that do not meet their needs and explore areas that look interesting. A good realtor will not talk a customer into or out of buying a home, but will make sure it is an informed decision that results in satisfaction for years to come.


http://www.totalrealestatesolutions.com/articles/disp.cfm?aid=72&typeid=1&winpop=0&nav=1

Get Full Value with a Full Time Real Estate Professional

It probably doesn’t bother you that your waiter works part-time and is in school full time. Part-time store clerks are perfectly acceptable. On the other hand, you would probably think twice about a part-time surgeon or a part-time nuclear engineer. After all, isn’t keeping up with and refining one’s skills in a demanding field a full-time pursuit in itself? Why then should you settle for a part-time real estate professional?

Your home is probably your largest and most treasured asset. Buying and selling homes involves complicated transactions, careful marketing, skillful negotiating and a full-time professional who has the time to network effectively on your behalf.

Among the many changes in recent years that demand significant time from a real estate professional are the innovations made possible by the Internet. A savvy real estate professional today knows how-to find and market homes online and on the Internet using a variety of techniques. Not all of these are obvious to the average Internet user and some, such as area multiple listing service systems, remain exclusively available to real estate professionals. New websites are born everyday and old ones go away. Keeping up with these changes could keep an entire team of professionals busy, let alone a part-time real estate sales professional.

Changes in real estate marketing require a skillful professional as well. The advances in desktop publishing and four-color printing technology mean a wider variety of low cost and highly targeted print advertising vehicles are available to the real estate professional seeking to attract buyers and sellers on your behalf. When you list your home with a real estate professional, you want to know that they have the time to access the latest in direct marketing technology on your behalf. Not that your real estate professional creates the ads or sends all the letters that promote your property, but a cost-effective marketing campaign requires a knowledgeable decision-maker to choose the best tools from among the myriad of marketing vehicles and technologies available today.

One of the key functions of a real estate professional is to bring buyers and sellers together. While a local multiple listing service provides a real estate professional with a guide to properties currently on the market, the raw data is only the beginning of the process of putting buyers and sellers together. A real estate professional must spend a good deal of time becoming knowledgeable on the communities and neighborhoods served, developing resources to answer questions about area schools, taxes, recreational amenities and other issues. In addition, your real estate professional should spend countless hours on home tours becoming intimately familiar with the details of available properties. Peer-to-peer networking among real estate professionals is a key source of the buyers and sellers that are matched together and a key to knowing about properties before they even go on the market. To the extent part time real estate professionals have less time to dedicate to all of these tasks, they may be less well prepared to serve your needs.

Buyers seeking highly attractive properties can lose out on a real estate opportunity in a matter of hours if their property search is handled haphazardly. Sellers hoping to attract a buyer would be disappointed to know that a potential buyer saw another home before theirs simply because their real estate professional was unable to show the home at a convenient time.

One of the most critical roles played by your real estate professional is in the negotiation phase. Negotiations over the terms of a home purchase contract can be extremely sensitive. A real estate professional needs to be available to respond quickly and turnaround offers and counteroffers at any time.

No doubt, there are many capable real estate professionals who for a variety of reasons are only available on a part-time basis. Nevertheless, it is important to ask your real estate professional whether or not they are full-time professionals and what hours they are available.

With so much at stake, the answer to the question: ‘full-time or part-time?” could definitely make a difference in the choice of the right real estate professional for your needs. A full-time real estate professional stands ready to deliver full value in response to your home buying and selling needs.


http://www.totalrealestatesolutions.com/articles/disp.cfm?aid=71&typeid=1&winpop=0&nav=1

Real Estate Reading Room [Home Buying]

Buying your first home? Here’s what you need to know

You’ve made the decision to make one of the largest investments you’ll ever make in your life-buying your first home. You’re excited, but at the same time anxious. Some of the questions you may be asking are: Will I be able to afford the home of my dreams? Do I have enough money for a down payment? Can I get a home inspected before I make an offer?

Rest assured, you are not alone. According to the 2000 National Association of REALTORS® Profile of Home Buyers and Sellers, first-time homebuyers accounted for 40 percent of the homes purchased in 1999. The homebuying process can be overwhelming, but if you go into it prepared, your first purchase can be a good experience. Here are some things to consider before making the plunge.

Getting a mortgage - Fear of being rejected for a home loan is one of the main concerns for first-time homebuyers. To lessen the stress, you may want to get pre-approved for a loan before looking at prospective homes. This will not only help you feel more confident, it will also give you an advantage when there are multiple offers for a specific home. The fact that your loan has already been approved is of great value to the seller: because it shortens the purchase process and there is less of a chance that the buyer will back out of the sale.

Mortgage Payments - The costs involved in the purchase of a home can be overwhelming to first-time buyers. However, with the help of a real estate professional, you can calculate out how much they you be able to pay each month in mortgage payments, and from there, what prospective homes offer a feasible payment plan.

Down-Payment - The down-payment amount varies depending on the value of the home you choose and your mortgage lender. And in some cases, first-time home buyers can purchase a home with no money down. Although it varies from state to state, most offer government-funded programs for first-time buyers that help people buy a home with no down-payment. Your real estate professional will be able to explain the different options available to you.

Closing Costs - First-time buyers often forget to consider the closing costs when making an offer on a home. Paying closing fees of up to 10 percent of the home sale amount is not unusual. Add that to the down-payment and you’ll have quite a sum to raise before the final papers can be signed. However, a smart first-time buyer takes this into account before making an offer, and with some professional help, the costs can be estimated in advance.

Making offers - Don’t feel pressured into making an offer on the first home you see. This is a common mistake of many first-time homebuyers. Make sure you view different homes to get a feel for the marketplace. When you do decide on a home to make a bid on, work with your real estate professional to get all of your questions answered first before making an offer. But don’t wait too long to make an offer. The longer you wait, the greater the chance other prospective buyers may place offers, making it harder for you to negotiate a good deal.

Condition of the Home - Buying a “problem” home is another fear of first-timers. A home that needs major repairs can become a costly venture. And, unless the asking price is adjusted to reflect the hidden repairs needed, chances are the home is not worth as much as the seller is asking for it. To avoid unfortunate surprises, your real estate professional may advise you to hire a home inspector before making a serious offer. That way, you know what you are getting into.

Above all, remember that there are no silly questions. Make sure you understand and are comfortable with every aspect of the transaction. Your real estate professional can be an invaluable asset in helping you make educated decisions so that your first-home purchase is a rewarding experience.


http://www.totalrealestatesolutions.com/articles/disp.cfm?aid=70&typeid=1&winpop=0&nav=1

Five Powerful Buying Strategies

In a perfect world, it would be easy to always be objective and make rational decisions based on sound information. In reality, emotions and timing often have a big effect. Sometimes the best you can do is try to set the stage so that you minimize the subjective influences.

Give yourself power and control. Don't find yourself in the position of "having" to buy and doing so in haste.

1 - Work out the finances first. Paying cash? Getting a mortgage? Find out what you can afford and check out all your various options.

Meet with whatever experts you need to in order to have all your facts - a lender, your tax advisor, etc. Knowing exactly what you want to spend and can spend will eliminate time spent looking at properties you can't have.

Not only that, when you find the right property you can make a "clean" offer without a financing contingency. Sellers are more likely to respond favorably to clean offers.

2 - Unless you really want to own two properties, sell first. Then buy. First of all, the property you want will probably not take a contingency offer. So unless you are prepared to own both (and you have to plan for a worst case scenario) you are wasting your time with the offer.

Second, if you are emotionally attached to what you want to buy you won't be as objective on selling your home. You may take less than it's worth so that you don't lose the other home. There's nothing wrong with that as long as you understand the financial implications.

3 - Use a realtor who knows the market. That may sound too simple in this age of the internet, when buyers have access to the same data the agent has. The difference is the ability to interpret that data.

Full-time realtors do more than show homes and write contracts. They study market trends and observe area fluctuations. You are thinking about your needs now. But your agent is thinking about both now and in the future when you are ready to sell again and looking for your future resale opportunities.

In addition, the internet is an increasingly non-objective source of information. Many websites do not display all the properties that are for sale in a given area because of contractual conflicts. And most new communities are not listed at all in any search vehicle. A professional realtor should be able to show you all the homes that fit your needs.

4 - Wait till your toes curl. In other words, don't get pressured into making a decision. When you find the right home you will know it (your toes will curl or the little hairs on the back of your neck will stand up).

That doesn't mean look at 200 homes before you make a decision. Sometimes it's the first home you see. But don't let an agent, a seller, or a spouse, push you into something you don't feel good about.

5 - You can't have it all. Decide what is most important in your next home and put it into perspective. If it's location, or price, or view, or square footage, or school districts, or amenities, or whatever.

Remember that some things can be changed. Floors, kitchens, landscaping, etc. are all changeable. So if they are not perfect, they can be. But location, view, amenities, etc. are there forever.

No matter what your budget, the good fairy of real estate did not go - poof! There it is. It simply doesn't happen. Everyone has to make compromises. So decide what truly matters to you and put that at the top of your list. Give in on what doesn't matter as much.

Follow these guidelines and you'll get the home you desire.


http://www.totalrealestatesolutions.com/articles/disp.cfm?aid=68&typeid=1&winpop=0&nav=1

Buying Pre-Construction? Here’s Why A Real Estate Professional Should Represent You

It might not seem necessary to involve a real estate professional in a transaction where a buyer can deal directly with a builder. Think again! A real estate professional representing the buyer’s interests, can guide you along the right path, smooth the rough places and help ensure you make a decision you can live with (and in) for many years. Here’s how:

* Just as a real estate professional calls on experience and knowledge of an area to help buyers locate pre-owned homes in a community, he or she can also direct buyers interested in newly built homes to developments and communities that match client specifications.
* An agent can suggest builders based on their reputation for delivering a high-quality product, responding quickly to issues, and being financially sound.
* An agent may be familiar with how a builder prices his products and where there may be room to negotiate price or upgrades.
* Without agent representation, you are one buyer purchasing only one home. But an agent can significantly impact a builder’s bottom line by providing a steady supply of customers. The agent’s leverage may work in your favor at the negotiating table. [Note: The builder may require your agent to accompany you on your first visit to the site. Check with the builder.]
* When relocating to a new area, agents can be particularly valuable resources. In addition to providing local area information regarding schools, day care or elder care services, public transportation, proposed development, and so on, once construction is under way, an agent can periodically stop by the work site, supply you with progress reports, and photograph or videotape phases of the construction.
* An agent can assist you as you face hundreds of design choices and consider which upgrades could potentially add value to the home when it comes time to sell.
* An agent can accompany you at the site while you okay the plumbing and electrical locations prior to drywalling, as well as on the walk-through or builder orientation.
*

By now, you should be convinced of a real estate professional’s value as you search for and purchase a newly built home. Still, here’s one more great reason to work with an agent-the builder pays the agent’s commission. You enjoy individual attention and support at no cost to you. What a great way to start life in a new home!


http://www.totalrealestatesolutions.com/articles/disp.cfm?aid=67&typeid=1&winpop=0&nav=1