Top 7 Reasons to Use a Buyer’s Agent in a Real Estate Transaction
Posted on 23. Jul, 2008 by Eric Bramlett in Home Buying Guide
Purchasing a home is a big step, and a big decision. The average person spends around 1/3 of their income on their home. The home that you choose has a big impact on your life, and can have a big impact on your finances, as well. It always surprises me when Buyers attempt to “go at it alone” because of the possibility of mistakes. A good Buyer’s Agent is invaluable to a Buyer, and can be the difference between a wonderful transaction, and a nightmare.
- Full Access to the MLSThe Multiple Listing Service (MLS) is a powerful tool that only Realtors have access to. When listing agents market a home for sale, they typically allow any Realtor to present the home to potential buyers, and to present contracts for purchase. The MLS is a database of all homes listed by Realtors, and represents roughly 99% of the homes for sale in any given market. As technology advances, so does the MLS. It has evolved into an extremely powerful search engine that allows your buyer’s agent to enter in search criteria, and returns only homes that match those specific parameters. Buyers can find a lot of this information online through IDX feeds available on many websites, but this information is a “watered down” version of the MLS because the IDX search engines aren’t quite as powerful, and don’t return as detailed profiles as the MLS.
- Maximize Your TimeWhile driving neighborhoods is an excellent idea to help you decide which locations you prefer, it’s not a very efficient way to find your new home. Gas is expensive, and your time is valuable. Your Buyer’s Agent will listen to your needs, make fantastic suggestions based on your likes & dislikes, and provide you with a list of homes that ALL match your wants & needs. Your Buyer’s Agent has helped MANY new homebuyers through MANY purchases, and will help you better organize your search & decision making process – saving you valuable time.
- RepresentationListing Agents enter into legally binding agreements that require them to ALWAYS act in the best interest of the seller. They are the seller’s “coach” and will make sure that their clients’ best interests are looked after. Luckily, your Buyer’s Agent is there to make sure YOUR best interests are accounted for. With your expert Buyer’s Agent in your corner, you can rest assured that you’re on, at least, even ground with the home seller. A football team would be at a pretty significant disadvantage without a coach – just as you would be without a Buyer’s Agent.
- Negotiating PowerThe MLS maintains a record of, not only all homes listed by Realtors in a given market, but also the sales price of those homes. Your Buyer’s Agent will run a Comparative Market Analysis (CMA) to determine a prospective home’s Fair Market Value (FMV). In simpler terms, your Realtor will look at similar homes in the same neighborhood that have sold recently. This way, you will know whether or not the seller has their home priced fairly. If the home is priced over Fair Market Value, your Buyer’s Agent can present your “under asking price” offer with plenty of firepower – and a greater chance that the offer will be accepted.
- ExperienceThe average person buys 3-5 homes in their lifetime. A good Buyer’s Agent will assist in 3-5 home purchases every month. What might seem complicated and intimidating to you is fairly common and familiar to your Realtor. Your Buyer’s Agent will know what to expect, and will know when to alert you if anything out of the ordinary occurs.
- Industry ContactsIt takes a lot of people to close a real estate transaction – Buyer’s Agent, Listing Agent, Loan Officer, Inspector, Appraiser, Insurance Agent, General Contractors, and sometimes more! A good agent will come with a strong closing team that has performed in the past, and will continue to perform. A transaction is only as strong as its weakest link – with your strong Buyer’s Agent & their closing team, you can rest assured that you will have plenty of support.
- Piece of MindIf you are like most people, your home is the largest purchase you will ever make. The average person spends around 1/3 of their total monthly income on their home. This is a big decision and you don’t want to go at it alone. When you use a trusted Buyer’s Agent, you know that your best interests are accounted for, and that you can feel confident in your purchase.
Eric Bramlett is the Broker and co-owner of One Source Realty in Austin Texas. Visit Eric’s Lake Austin Real Estate Guide, visit his Austin Real Estate company’s website, & his Downtown Austin Condo Guide. He has seen considerable success in real estate, and looks forward to many more years in the business. Eric currently invests, renovates, and develops real estate in the Greater Austin Texas Market. He spends his time working with select clients, helps his new agents get started in their real estate careers, helps his experienced agents progress their careers to the next level, & when he has time…he takes his dogs to the lake.
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Top 7 Steps to Find Your Home With the Least Amount of Stress
Posted on 16. Jul, 2008 by Eric Bramlett in Home Buying Guide
Purchasing your new home is very exciting, but can also be a bit intimidating. If you make a decision hastily, you run the risk of buyer’s remorse. However, if you don’t organize your search well, it can drag on much too long – which can cause just as much stress. A systematic approach will ensure that you are able to make a sound decision in a reasonable amount of time. Follow these steps, and you will find a great home, with confidence & ease!
- Get Pre-Qualified & Choose Your Top Monthly Payment.
Pre-qualification is one of the most important steps in the home buying process. It still amazes me how many buyers want to skip this process and immediately begin looking at houses – and how many Realtors are willing to work this way! Pre-qualification is what gives you buying power and allows you to make an offer on your dream home when you’ve found it.
More importantly, pre-qualification will let you know how much that home will REALLY cost you – in monthly payments. A $150,000 or $300,000 home doesn’t mean a lot to most buyers – but $1200 per month and $2500 per month are tangibles that everyone can understand. After your lender pre-qualifies you, ask them for a “payment table” that shows you a rough estimate of TOTAL monthly payments based on purchase price. Pick your payment, and you know how much you can spend on your home! - Use a Realtor!
Most people buy 3-5 homes in their lifetime. A good Realtor will have helped many people into their homes throughout their career – and will have been through the process many, many times. There are not many home buying situations that your Realtor won’t have seen – and if you run into one, your Realtor can refer to his office, and a wealth of knowledge. Additionally, your Realtor will have access to the MLS, which gives him a database of 99% of the homes for sale in your given area. Good Realtors don’t sell, they simply listen to their buyers, and present the options that they feel most suit their needs. - Make a list of your “Must Haves.”
Many buyers claim that they “will know” when they “walk into the one.” If you begin looking at houses without “doing your homework” this will not be the case. Start your search by making a list of your “must haves,” or qualities that are a “deal killer” if the home doesn’t fit. These are typically price, neighborhood, size, 1 or 2 stories, etc… Sometimes, you will have very strong opinions about seemingly minor details – but these aren’t minor to you, if they’re on your “must have” list. - Make a list of your “Wants.”
After you’ve identified what you “must have” in your new home, it’s time to make a list of what you want. Your “wants” are what you would like to have – but could possibly live without. These can include paint color, type of appliances, exterior façade, etc… While it would be nice to find a home with all of your “wants,” you will be happy as long as the home has a good number of these attributes. - Choose your favorite neighborhood(s).
“Location, location, location” is the cardinal rule when shopping for your home. The reasoning is simple – you can always upgrade your home, but once you’ve closed, you have no control over location. Think about how close you would like to live to work, what school districts you think are favorable, & how near you want to be to recreational activities. Look at your “zone” & identify the neighborhoods that are within your price range. Of these, choose your favorites – and you’re halfway to choosing your new home! - View Every Available Home That Matches Your Criteria – And Take Notes.
After you have identified your “must haves,” “wants,” & neighborhood(s), you have one fun step left in the process: Touring every home that matches your criteria! Your Realtor will run a search for every home that matches your search criteria, and you simply choose which homes you would like to tour. Your search results will hopefully return a good number of properties, so make sure and take notes while viewing. Write down what you like & dislike about each home – it will help you with the decision making process. - Review your list & choose!
After identifying what you want in a home and where you would like to live, it’s very normal to fall in love with a home when you walk into it. However, if this doesn’t happen to you – don’t worry! You’ve carefully identified your likes & dislikes, you’ve identified the most appealing locations, and you’ve taken good notes! Simply review your list, weigh the pro’s & con’s of each, and make a sound decision. You have exercised “due diligence” & you can feel confident in your choice.
Eric Bramlett currently manages his Steiner Ranch Austin Guide, his Round Rock Real Estate company’s website, & his Downtown Austin Condos Guide.
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Top 7 New Home Buying Mistakes
Posted on 27. Jun, 2008 by Joshua Ferris in Home Buying Guide, Orange County, Rockland County
Buying a new home is great! You get to choose where your home will be built, add a sunroom here, third garage bay there and before you know it you are moving into your dream home. With all the options to choose from it is very easy to overlook crucial elements to your new home buying experience that could cost you greatly in both time and money.
Choosing upgrades with the lowest ROI or too many upgrades, period. – This is truly the most common mistake made by new home buyers who don’t consider the resale value of their home in the future. When buying a new home be sure to stick with the essential upgrades like two sinks in the master bathroom, high quality cabinetry and above all else, top quality padding under the carpeted areas.
Not examining your lot choice thoroughly enough. - A recent United Feature Syndicate by Lew Sichelman highlights some very important aspects to choosing a lot for your new home to be built on. Among them are: terrain, noting that people psychologically feel more secure looking down at the street rather than up, location and lot shape which can affect your surroundings including the possibility of facing the rear of a neighbor’s home.
Finding communities first, vitals second. - When you are buying a home you have to shop differently than you would if you were buying a car or shopping for clothes. To save yourself much heartache and frustration, be sure to hammer out your lifestyle requirements before even searching for a community to build a home in. For example, if you commute to New York City and have school age children you would want to find a school district that you approve of in an area with multiple mass transit options (train, bus, highway) and then locate new home communities within close proximity to both.
Overlooking the “inspection” clause in builder contracts. - A dirty little secret in the new home industry is the fact that some builders, national builders included, send out contracts with a clause stating that they don’t allow home inspections by an independent, third party home inspector until after you close on and own the home. They offer to do a walkthrough of the home with you before you close but chances are, unless you are a licensed home inspector with many years of experience, you won’t notice any red flags beyond the superficial.
Not using a buyer agent. - When looking for a new home, be sure to find a buyer agent who specializes in new homes. There are numerous important steps when buying a new home that a new home buyer agent will be prepared to work with such as price negotiation, lot choice, researching future development around the community and the pros and cons of building materials your builder will use in the construction of your new home. At present, the buyer agent’s services are paid for out of the builder’s marketing budget.
Using the builder endorsed financing company out of convenience. - Many large builders have their own in-house financing company and they often offer incentives on their products by tying in the use of the incentives to financing through their in-house lender. In some instances you will find that the builder’s in-house lender financing and incentives will cost you more money in the long run than if you had financed your purchase through an outside lender. Rule of thumb: Always check your financing options with the builder’s in-house lender, a mortgage broker and a loan officer for a direct lender before committing.
Believing everything you read in advertisements. – If it looks too good to be true, it probably is. Always verify everything you read in real estate advertisements including newspaper ads and the community’s standard features list. Aside from the obvious typographical errors that occur I have also seen blatant false advertising. For example, I have seen new home community literature advertising the community’s short “less than an hour” drive to New York City despite the fact that it would take at least 90 minutes on a good day from that community.
Buying a new home is a wonderful, dazzling experience that will cater to your every need. By using reasonable care and professional guidance you will enjoy many great years in your new home and reap substantial rewards from your diligent buying efforts when selling your home in the future.
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Top 7 New Home Buying Incentives
Posted on 26. Jun, 2008 by Joshua Ferris in Home Buying Guide, Orange County, Rockland County
After the real estate market hit a steady decline in mid 2006, home builders turned to incentives as a way to attract home buyers to their communities and to help differentiate themselves from the competition. When you start looking for a new home be sure to compare builder incentives as much as the communities themselves.
To help you choose, I have created a list of the top 7 new home buying incentives you should look out for:
Military or Civil Service Incentive - As a thank you to the individuals who serve in the military or are veterans of the military in addition to firefighters, police officers, EMTs and hospital staff, national home builder K. Hovnanian is offering $5,000 off the asking price of their homes, for a limited time, to people in these fields. Other large builders also offer similar incentives to teachers and civil service positions.
Lower Asking Price on “Spec Homes” - Depending on your moving situation, this is the golden egg of builder incentives. Most new home builders will construct a set number of homes in their community as “spec” homes or homes built on speculation that people will purchase the homes and move in quickly.
Once these homes are finished the builder won’t want to sit on a large inventory of homes so they will offer spec homes with predetermined upgrades included at a lower asking price than if you were to build the home from scratch and add those upgrades.
Incentives Tied to Builder’s Mortgage Company – Builders and on-site sales representatives enjoy working with their established banking relationships because they feel it will make the mortgage process easier and less stressful for everyone than if you were to use an outside lender. In this scenario I’ve seen builders offer to pay closing costs and up to one year of Homeowner’s Association fees for buyers who purchase using their mortgage company.
Lot Premium Reductions - Like a rare platinum ring, highly desirable lots tend to come with a premium attached. Builders often place premiums ranging from a few thousand to nearly $100,000 on the most desirable lots in the community. Lot premiums are not set in stone and under the right circumstances can be negotiated much like everything else.
Reduced Option Prices – With the average new home buyer spending about 10% of their purchase price on upgrades you should look to get the most bang for your buck with the limited budget you have set for options. When evaluating the standard features list for a community, check into the cost for all of the options you would want in the home and see if the builder is providing special pricing on select options.
Standard Features… and then some! – To make homes more appealing than the standard features list will allow, builders are now including previously optional home upgrades like granite countertops, expanded suites, swimming pools and sun rooms as an incentive to buy in their community.
“Free Gifts” with Home Purchase - Sometimes it takes more than granite countertops and hardwood floors to make a home stand out. Some builders are going the extra mile and including in-home luxuries like plasma screen tvs and offering car leases to draw in prospective buyers. For soon to be commuters, a two year lease on a new car might be the perfect way to help ease into life in the suburbs.
When you are ready to start looking for a new home your best bet is to get in touch with us as we specialize in new home communities. We will help you cross shop communities and serve as a third party to help advise on the best deals and the potential pitfalls of incentives. Because incentives vary greatly, you will need to weigh the pros and cons of each community before making a final decision on the home that’s right for you.
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Buy a Home
Posted on 26. Jun, 2008 by Joshua Ferris in Rockland County
Buying a home should be a refreshing, enjoyable experience that changes your life for the better. Whether it’s your first or fifth, here are three common steps you should take as you prepare to purchase a home.
1) Narrow Down Your Search Area – Examine your search area and locate towns, villages and cities that compliment your lifestyle. Cover all the bases — Food shopping, gyms, child care, transit to work, recreation etc. Once you have decided on an area you would like to live in, proceed to step two.
2) Contact a Lender for a Pre-Approval – You’ll want to get pre-approved prior to looking for homes so that your agent can provide you with an accurate idea of what homes are available to you in the neighborhood of your choice. This step is crucial and you’re only setting yourself up for heartache in the future if you look first and get financing later.
3) Find an Agent that Meets YOUR Needs – Step three is also the most important step because everyone is different and REALTORs are not created equally. When looking for an agent, consider the type of home and neighborhood you would like to be in. Also consider the methods of contact you prefer. For example, if you’re looking for a townhouse in Meadow Glen at Monroe and you prefer to work with your agent by email rather than phone, you’ll want an agent who has represented many buyers in the community and is net savvy.
Is Joshua Ferris the right agent for you?
Joshua Ferris, the Associate Broker behind HouseMeetsOwner.com, works almost exclusively with clients searching for townhouses or new homes in the Orange and Rockland County New York area. With more than four years of experience working exclusively as a buyer agent, Josh knows the area, real estate conditions, and the best ways to get a great deal on your next home.
How does he keep in touch?
Josh’s preferred methods of contact are primarily email and phone though he freely text messages clients who prefer that method instead. Emails are responded to within a few hours, though sometimes faster but phone is still the easiest way to contact Josh immediately. He can be reached toll free: 1-888-218-8468.
We might be a good fit but what if I would rather rent a home instead?
There’s a world of possibilities out there and this might be one of them. If you would rather rent a home in Orange or Rockland County please visit our Lease a Home page for more information on how renting a home through a broker works.
If you would like to start looking for homes for sale in Orange & Rockland County New York, please contact Josh below and he’ll be in touch shortly.