As the First Time Home Buyer tax credit comes to an end, it seems as though home buyers are taking longer to find a home that suits their needs. One may call it an issue of supply and demand, however, most are calling it “My Realtor sucks!”
Just like early 2007, real estate was booming at an astronomical pace. Mortgage and real estate firms were opening their doors faster than they could imagine because there was an oversupply of qualified buyers (via SubPrime) and an oversupply of sellers cashing out on their home’s appreciation. This “oversupply” basically gave any Realtor enough business to make it a full time career, however, do you remember what happened after the market collapsed? Yup, ghost town baby!
So with the extended tax credit enticing more buyers to buy and more sellers to sell, we are having more Realtors enter the market like before.
What to Look For
If you are in the market to buy a home, or any product for that matter, it is very important to interview who you are hiring to represent your best interests. Here’s a couple of good questions to ask the Realtor you are wanting to help you find your dream home:
- How long have you been a Realtor?
- Are you full time or part-time?
- How is your current work load?
- What are you specialized in? (if they say everything, not a good sign)
- How long are you seeing homes on the market in “x” area?
- What’s your best and worst attribute?
These are just a couple things to ask, but remember, its an interview, so feel free to fire away! It is crucial that you work with someone that is good at what they do. You would think this goes without saying, but so many people work with “Uncle Bobs sister’s uncle’s FedEx guy” just because a family or a friend referred them.
A referral is great because it usually means they have done a great job for someone, but that doesn’t necessarily mean they will do a good job for you and your specific situation. Just like people shop loan officers, you should shop Realtors as well. Would you hire a Foreclosure Expert to find you a luxury home? Most likely not.
An Added Cost You May Not Be Aware Of
Choosing the wrong Realtor can definitely cost your more than you expect if you’re not careful. Finding a home is one thing, but determining your needs and negotiating the terms is where these folks earn their money. Anyone can plug away at a sales price, area, and send you a list of homes (whoop-dee-freakin-doo), however narrowing that search down to what’s specifically in YOUR interests, and getting it to you at the price you want to pay is where a rookie Realtor will fail, and an expert will excel.
Most buyers see the $8,000 Tax Credit at the end of the tunnel, but it blinds them way too soon. They don’t take into consideration what they can LOSE if they are not working with an experienced Real Estate Team (Realtor and loan officer).
You have:
- Earnest Money
- Option Fees
- Appraisals
- Inspections
- Termite Reports
This stuff can add up really quick, and if there’s a glitch in negotiations, time lines, or financing, you might as well put some rosy red lipstick on and kiss that money goodbye!
Remember, there’s no reason to settle for less than the best when you have more than enough selection out there right now!
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