Buying or selling a home can be a complicated process. No matter how much experience you have buying/selling homes; there are several aspects of the transaction that are simply best left to the professionals. Below are the top 5 reasons for why it is in your best interest to hire a real estate agent.
From Keeping Current Matters:
1. What do you do with all this paperwork?
Each state has different regulations regarding the contracts required for a successful sale, and these regulations are constantly changing. A true Real Estate Professional is an expert in their market and can guide you through the stacks of paperwork necessary to make your dream a reality.
2. Ok, so you found your dream house, now what?
According to the Orlando Regional REALTOR Association, there are over 230 possible actions that need to take place during every successful real estate transaction. Don’t you want someone who has been there before, who knows what these actions are to make sure that you acquire your dream.
3. Are you a good negotiator?
So maybe you’re not convinced that you need an agent to sell your home. However, after looking at the list of parties that you need to be prepared to negotiate with, you’ll realize the value in selecting a Real Estate Professional. From the buyer (who wants the best deal possible), to the home inspection companies, to the appraiser, there are at least 11 different people that you will have to be knowledgeable with and answer to, during the process.
4. What is the home you’re buying/selling really worth?
It is important for your home to be priced correctly from the start to attract the right buyers and shorten the time that it’s on the market. You need someone who is not emotionally connected to your home to give you the truth as to your home’s value. According to the National Association of REALTORS, “the typical FSBO home sold for $208,700 compared to $235,000 among agent-assisted home sales.”
Get the most out of your transaction by hiring a professional.
5. Do you know what’s really going on in the market?
There is so much information out there on the news and the internet about home sales, prices, mortgage rates; how do you know what’s going on specifically in your area? Who do you turn to in order to competitively price your home correctly at the beginning of the selling process? How do you know what to offer on your dream home without paying too much, or offending the seller with a low-ball offer?
Dave Ramsey, the financial guru advises:
“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”
Hiring an agent who has their finger on the pulse of the market will make your buying/selling experience an educated one. You need someone who is going to tell you the truth, not just what they think you want to hear.
With economic unrest in Greece -as well as other parts of Europe- there has been no shortage of talk about whether or not the U.S. could be facing another financial crisis. Others look to the rising values in the housing market, and speculate on if we are already in the middle of another housing bubble.
From Keeping Current Matters:
What actually is a price bubble?
Here is the definition according to Jack M. Guttentag, Professor of Finance Emeritus at the Wharton School of the University of Pennsylvania:
“A price bubble is a rise in price based on the expectation that the price will rise. Sooner or later something happens to erode confidence in continued price increases, at which point the bubble bursts and prices drop. What makes it a price bubble is that the cause of the price increase is an expectation that the price will increase, which sooner or later must reverse itself.”
Does Professor Guttentag believe we are in another housing bubble?
In a recent article, he explained:
“My view is that we are a long way from another house price bubble. Home buyers, lenders, investors and regulators now understand that a nationwide decline in house prices is possible — because we recently lived through one.”
When putting your house on the market, it is vital to have it shown in its best possible light. The key however, is figuring out how to achieve this without breaking the bank. Consumer Reports provides the following agenda, for finding that perfect balance.
- Freshen up the bath: $300-$1,000
- Paint the rooms- selectively: $100 (DIY)-$1,000 (Pro)
- Clean up, clear out; smells and clutter: $0 (DIY)-$2,500 (Pro)
- Enhance the exterior: $150-$7,500
- Spruce up the kitchen: $300-$5,000
For complete descriptions on each, as well as potential returns, check out the following link from Consumer Reports here.
There are some people who delay their transition in to eventual home-ownership, because they feel uncomfortable taking on the obligation of having a mortgage. However it is important to realize that whether you own or rent a home, you are paying someones mortgage. As the Joint Center for Housing Studies at Harvard University explains:
“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return.
That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”
Not only does home-ownership offer the pride and security that has been sought after in this country for so long; it also makes up for the majority of typical Americans net worth, in the form of home equity. Check out the graphic below to see which components make up net worth; for the average established family in the U.S.
Are you looking to buy a home; but are concerned about your FICO score in terms of loan approval? Check out the graphic below from Ellie Mae, with the average FICO scores for both FHA and Conventional loan approval.