Saturday, February 20, 2016

"I got the letter, now what?" ... Time to find a Realtor®


So now you have your pre-approval letter, you need to contact your Realtor®/agent.  Don't have one?  I see.  Don't know how to find a good one?  I see.  Let me give you some food for thought. For the purposes of this blog, the use of Agent and Realtor® are interchangeable.

There are websites out there that will tell you some of the following:

  • Find the full-time agent, part-time ones don't have your best interest at heart.  I disagree.  
  • Make sure your agent has many designations after his/her name.  I disagree.
  • Make sure your agent is a cutthroat agent.  I disagree
  • Make sure your agent has 20+ years of experience. I disagree.
Why do I disagree?  I'll explain.  While some of the above advice are not necessarily incorrect, there's more to it than just that.

Yes, while a full-time Realtor® can meet with you throughout the day, ask yourself, are you available throughout the day.  Or, do you prefer to look at homes or meet with your agent after work so  you don't have to take time off of work.  Keep in mind, looking for a home, can take several months, looking for my own house took almost a year.  Sometimes, full-time agents, don't want to work at night, because they've worked all day.  If your agent is serious about his/her business, they will work it out.   If it is apparent that this is becoming a problem, move one.  However, there are more part-time agents than you may realize.  That is, agents that have a second job.  The realities are this, many agents don't make a ton of money.  Commissions don't last long.  The commissions must have taxes taken out of them, a percentage goes to the Broker, advertising/marketing, association fees and dues, training, desk fees (the fees associated with having a space at the brokerage, business supplies (business cards, signs, lockboxes, lockbox keys, access to the MLS etc) and these are recurring fees, not one time fees.   Some of these are to be paid monthly regardless if you sell or buy a home that month.

Sure the designations after a Realtor's® name tell's a story, but not all agents will display this information on their website or business cards.  What most will do, is show you that they are a Realtor®.  For many, that's the most important one to show to the world.  We've worked hard to earn that title and Realtors® hold themselves to a higher standard.  The ABR, SRS, e-PRO, GRI, MRP and the many others, may not mean much to the general public.  However, these do mean the agent has had additional training in various fields.  The public once again doesn't always care they just want their house sold or to find a home.  That's what matters to them, so many agents don't bother to display them publicly even though they have them.

Yes, you've seen Million Dollar Listings® and other similar shows on TV, and you want that agent to represent you.  Please keep in mind you are watching a television show.  Also, as shown even on these very same shows, sometimes people don't want to work with you if you are obnoxious, mean-spirited or a flake.  It could actually harm your goal.  You want an agent that is a good negotiator and is able to work well with others.  Trust me when I tell you that it isn't always about the amount of money that is being offered that gets the offer accepted.

While experience is a plus, sometimes the newbies can be a better fit.  They are out to build their clientele, they want repeat business and referrals and are willing to go the extra mile to help you. Some of the more experienced agents can become complacent and are resistant to the new technology.  They don't text, there's not a lot of online presence for them.

Honestly, sometimes it comes down to one thing....how well do you get along with your agent. Really it doesn't matter how much experience, full-time part-time, all the designations in the world they have or if they've sold a million homes.  If you can't stand them and think they are the biggest jerk alive, the rest really doesn't matter now, does it?

When you find your Realtor®, now give them a copy of the letter, they'll need it to submit it with your offer when you find your new home.  Most, if not all agents require this letter to be with the offer.

Until next time.



Thursday, October 8, 2015

So You Want To Buy A Home...






So You Want To Buy A Home

So you've thought about it, weighed your pros and cons and thought it's time to buy your first home. Where do you start?  Let me help.

First, let's talk about your finances.  Do you need to have a downpayment of 20% of the purchase price?  No, you can buy a home for as little as 3.5% and in some cases 0%.  It depends on your circumstances, such as your credit history if you qualify for a VA loan or not.  However, that talk will be between you and your lender.  I'm not a lender, I'm a real estate agent.  I just want you to know that there are options out there and it doesn't hurt to ask.  After a conversation with a lender, it may be that you'll have to wait a little longer, or you may find out you're good to go.  Even with 0% down, or 3.5% there are other fees you'll still have to come up with, so you'll still want a little nest egg in the bank.  The other fees, for example, are the appraiser, home inspection,  or any other inspection you chose.  Your lender can go over some of these other fees that will come out of pocket, not all of these are considered closing costs. 

The Prequal/Preapproval Letter
You hear about this and you say to yourself, my credit is good, I don't need to get one of these.  Most if not all agents will require this when the offer is submitted.  If you find the home of your dreams, then is not the time to get your paperwork ready.  You should already have your paperwork in order. Why?  Someone else will and you will watch the home of your dreams (or at least like a lot) slip away to another buyer.  Remember, time is of the essence.  Right now, October 2015, the market is a little weird, interest rates are low and so is the inventory.  What that means to you, more buyers not as many homes.  Can we say multiple offers on a home or bidding war?  Once again, now is not the time to start getting your paperwork together.  You should already have this, so you can jump when you need to.  Too many times I see instructions say, EMD, POF, POC and Preapproval Letter must be submitted with offer.  I even saw one instruction say, will not submit an offer without the preapproval letter no exceptions.  Yes, it's that serious.  

Preapproval is better than the Prequal. What's the difference?  APreapproval letter is usually generated after the lender has run your credit score and has received preliminary information provided by you.  The Prequal or Prequalification Letter is usually generated on verbal information provided by you.  Honestly, I was looking online and was able to get a Prequal letter without having to prove any of the information I gave.  Sweet right?  Nope, that's why many agents are asking for the Preapproval letter nowadays.  No one, and I mean no one wants to go through escrow and a week before closing, to find out that the buyer isn't qualified for a loan.  Emotions usually run high and it's just not pretty.  Depending on the situation, the buyer could end up losing the deposit.  Told you, it's just not pretty.  Yes, sometimes even with the preapproval stuff happens but less often.  

So when you prepare to meet your agent, remember to bring a copy of your letter for your agent. He/she will want to have a copy to be prepared to submit it with your offer when the time comes.

Until the next segment:  "I got the letter, now what?" 

-Karen
Let Me Help You