Why You Should Work With a REALTOR®

Not all real estate practitioners are REALTORS®. The term REALTOR® is a registered trademark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION of REALTORS® and subscribes to its strict Code of Ethics. Here are five reasons why it pays to work with a REALTOR®.

1. You’ll have an expert to guide you through the process. Buying or selling a home usually requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multi-page settlement statements. A knowledgeable expert will help you prepare the best deal, and avoid delays or costly mistakes.
2. Get objective information and opinions. REALTORS® can provide local community information on utilities, zoning, schools, and more. They’ll also be able to provide objective information about each property. A professional will be able to help you answer these two important questions: Will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?
3. Find the best property out there. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your REALTOR® to find all available properties.
4. Benefit from their negotiating experience. There are many negotiating factors, including but not limited to price, financing, terms, date of possession, and inclusion or exclusion of repairs, furnishings, or equipment. In addition, the purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.
5. Property marketing power. Real estate doesn’t sell due to advertising alone. In fact, a large share of real estate sales comes as the result of a practitioner’s contacts through previous clients, referrals, friends, and family. When a property is marketed with the help of a REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally prescreen and accompany qualified prospects through your property.
6. Real estate has its own language. If you don’t know a CMA from a PUD, you can understand why it’s important to work with a professional who is immersed in the industry and knows the real estate language.
7. REALTORS® have done it before. Most people buy and sell only a few homes in a lifetime, usually with quite a few years in between each purchase. And even if you’ve done it before, laws and regulations change. REALTORS®, on the other hand, handle hundreds of real estate transactions over the course of their career. Having an expert on your side is critical.
8. Buying and selling is emotional. A home often symbolizes family, rest, and security — it’s not just four walls and a roof. Because of this, home buying and selling can be an emotional undertaking. And for most people, a home is the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you stay focused on both the emotional and financial issues most important to you.
9. Ethical treatment. Every member of the NATIONAL ASSOCIATION of REALTORS® makes a commitment to adhere to a strict Code of Ethics, which is based on professionalism and protection of the public. As a customer of a REALTOR®, you can expect honest and ethical treatment in all transaction-related matters. It is mandatory for REALTORS® to take the Code of Ethics orientation and they are also required to complete a refresher course every four years.

Reposted from:  http://realtormag.realtor.org/sales-and-marketing/handouts-for-customers/for-buyers/why-you-should-work-realtor

7 Things to Always Do Before Buying a Home

There's no better time to clean up your credit score or kick your credit card habits.

Maybe you’ve decided to take the plunge and buy your first home, or you’re already a homeowner and are ready to move into a new place. Whatever reason prompted the move, here are seven things you need to do before buying a home.

1. Clean up your credit score. Your credit score will be reviewed by lenders, and it plays an important role in determining how much house you can buy. If you know you won’t be moving into a new house for at least six to eight months, you have plenty of time to do some legwork to clean up your credit. Order your free credit report from Equifax, TransUnion or Experian, and make sure it is free of any mistakes. If you do find an error, contact creditors to make sure everything is up-to-date, and have them send corrections to the credit bureaus as soon as possible.

2. Kick the credit card habit. Another step to cleaning up your credit history? Make sure you aren’t buried under credit card debt. Take steps to stop credit card spending, and consider using a balance-transfer credit card to reduce your debt load faster. Improving your credit will give your credit score a boost, and that will make you more attractive to lenders. A bonus? Kicking the credit card habit can help you get a handle on your finances so making mortgage payments isn’t overwhelming.

3. Hash out monthly payments. If credit card and loan payments make up a big percentage of your monthly payments, you may reduce your chances of getting an attractive mortgage loan offer. Taking steps to lower monthly payments can put you in a better financial position for a mortgage and also reduce some of the stress of making that mortgage payment each month.

4. Define exactly what you want. Your home is one of the biggest purchases you will ever make, and you need to have a clear idea of exactly what you are looking for before you begin the search. While you should get preapproved early in the process, don’t wait for the preapproval offer to narrow down the search. You need to determine what the non-negotiables are for your future home and what you are willing to compromise on. Take the time to list what features, floor plans and style of home you are most interested in; what type of neighborhood you want to live in; and other key details. A comprehensive list of wants and must-haves can make it easier to shop for a home and compare different properties during the search.

5. Get preapproved. It’s exciting to start the homebuying process by visiting open houses, but it’s a good idea to have a preapproval letter in your pocket before you set foot in your dream home. Your preapproval letter will tell you how much you can really afford and make it easier to narrow down your search. Having that preapproval letter will also give you some negotiating power when you start working with sellers – you’ll have a greater chance of having an offer accepted when you have a letter stating that you are in a financial position to buy the home.

6. Commit to a savings plan. When you start thinking about moving, take the time to reorganize your budget and put together a savings plan for the down payment, closing costs and moving costs. Putting yourself in a position to make a larger down payment can save you money on mortgage payments in the long run and make you more attractive to the lender. Also, if you’re a first-time homebuyer, don’t overlook down payment assistance programs, if they exist in your area.

7. Set your own budget parameters. Even though you may be preapproved for a certain amount, there’s no rule that says you can’t set your own budget that’s less than your preapproval amount. Doing so can give you more confidence with your finances and may free up more money for discretionary expenses. Whether you want to have more money to travel or prefer to live with a higher disposable income, adjust your budget limits to suit your lifestyle.

Reposted from:  http://money.usnews.com/money/blogs/my-money/2014/06/25/7-things-to-always-do-before-buying-a-home