Archive for January, 2007
Working With MORE Than One Real Estate Agent….
January 30th, 2007 Down to Business, The Good 4 Comments
You’re under no legal obligation to use only one real estate agent (unless you’ve signed an Exclusive Buyer Listing Agreement).
Some people like to do this because:
1. They want to look at a number of areas.
2. They haven’t found the “right” real estate agent .
3. They want to keep their options open.
Tips if you’re going to do this:
1. Tell the realtor that you’re working with other agents as well.
2. Also tell them if they want to show you a property that you’ve already seen it with another real estate agent . It saves you- and them- time and effort.
The Real Deal: Most realtors hate this. They want to work with you exclusively, and they may either choose not to work with you, or put your needs on a lower priority scale.
Why? Because:
a.) their time available is usually limited
b.) their chances of completing a transaction with you (in other words, getting paid) is much lower than with a client who is faithfully working with them.
Other Must READ Info:
What is an Exclusive Buyer Listing Agreement?
January 30th, 2007 Columbus Buyer Info, Down to Business, The Good 4 Comments
This is a legal document in real estate (a contract) between you and your real estate agent, for a specified period of time, that commits you to your real estate agent, and your real estate agent to you.
Basically, it says that if you buy a house, your real estate agent will get paid.
• What’s the advantage to me to sign this Exclusive Buyer Listing Agreement?
• Well, for starters, you’ll be at the top of your realtor’s list of people to work with. Top of the list and top priority.
• Your real estate agent will be ready and anxious to get things done for you.
• Your agent knows you’re committed, you’re going to be loyal to him/her, and you’re ready to buy.
That means your agent will get paid, who can then pay the electric bill and buy groceries- wonderful incentives to work harder. (Remember, folks, we real estate agents do this to make a living!)
Other MUST Read Info:
Do I HAVE to sign an Exclusive Buyer Listing Agreement?
January 30th, 2007 Down to Business, The Good 2 Comments
No. You are under NO obligation to sign any documents you’re not sure about.
Some real estate agents choose this approach. They want to be sure they “own” you before they put in work and effort.
You also have a choice. You can choose to say “No, thank you” and look for a realtor who will work with you.
The only time you should choose to sign an Exclusive Buyer Listing Agreement is when you think “Yippee! This is the real estate agent for me!” and you want to be that agent’s top priority.
Other MUST Read Links:
What Is A Consumer Agency Guide in Ohio?
January 30th, 2007 Columbus Buyer Info, Down to Business, The Good 1 Comment
“
Why did a real estate agent want me to sign for a ‘Agency Guide?’ What’s this all about?”
What your real estate agent asked you to sign for was the Consumer Guide to Agency Relationships:
It is a state law in
The Real Deal: This was designed for your protection as a buyer. The Guide describes the different types of agency (how realtors represent clients) and also how the brokerage does business (the brokerage is the company whom the real estate agent works for).
In the past, there were problems where buyers misunderstood that the real estate agent was representing the seller, and would tell the real estate agent personal information that they shouldn’t have.
The state wanted to correct this problem and make sure the buyer’s rights were protected.
It’s important to know the following:
1. This is not a contract; you are under no obligation to anyone or anything by signing you have received it.
2. The purpose of your signature is simply to prove to the State of
3. Real estate agents are required by law to present these to buyers; you can choose to sign them or refuse to sign them. If you refuse to sign, we will simply note that you refused on our copy. (However, before you complete the purchase of a home this will need to be signed.) Signing this document makes your realtor’s job a lot easier.
An Annoying Question Realtors Ask
January 30th, 2007 Columbus Buyer Info, Columbus Seller Info, Down to Business No Comments
Why do realtors always say to me “Are you working with an agent?” It’s none of their business.
Two reasons. One is business ethics- we don’t want to “steal” clients from other agents.
The other reason is they are trying to find out if there is a whisper of a chance that they might actually get paid from working with you…. if you are working with another agent, working with you is only a “labor of love.”
Here’s a BIG real estate secret most people don’t know– Real estate agents spend most of their time working for free. In fact, we are often paying a lot of expenses to be able to “work for free!”
The Real Deal: Most real estate agents are straight commission people. The only time we receive money for our work is when a real estate transaction closes.
That’s it.
The rest of the time we’re working for free.
Of course, since we’re living in a real world with bills to pay, we are motivated to work for free as smart as possible. Spending hours and hours working for a person who already has a real estate agent may not be the best choice towards eventually bringing dollars in the door.
So, actually, it is their business when realtors ask that common question (at least, they hope….).
How Do Real Estate Commissions Work?
January 30th, 2007 Columbus Buyer Info, Columbus Seller Info, Down to Business 4 Comments
Commissions are paid by the seller, not the buyer.
The commission amount can vary; enforcing a set amount is known as “price-fixing” and is illegal.
A common commission rate in the
Using a 6% commission as an example, 3% is the common percentage that goes to the buyer’s agent; the remaining 3% goes to the selling agent.
Actually, these amounts go to the agent’s broker. If you were at a closing, you’d notice that the final commission check would not be in your agent’s name, but in their company’s name (i.e., Keller Williams).
These real estate agents will receive only a portion of that 3% amount.
Depending on the brokerage they work for, they will get a “commission split,” which could be 50/50 %, 60/40%, 70/30%, or 80/20%, with part of this percentage going to their company the broker.
There are some realtors who get 100% of the 3% commission. These realtors pay for all their business expenses, with significant monthly fees that go to their broker.
The Real Deal: So…. the bottom line is- your real estate agent isn’t getting rich with all of the listed commission, and retiring to
Other MUST Read Links:
Real Estate Financing Basics
January 30th, 2007 Columbus Buyer Info, Columbus Seller Info, The Good 2 Comments
Definitions of basic types of real estate loans available to homeowners:
Conventional- 60% of loans are this type. Usually the term is for 30 years at a fixed rate (the payment remains the same). Taxes and Insurance are often included in the payment by the bank (they are escrowed).
FHA- Lower down payment needed, more flexible regarding credit.
VA- Available to veterans
Adjustable-Rate Mortgage- Interest rate starts out lower, then after a period of time the interest rate and payments can increase or decrease.
Buydown Plan- Points (extra fees) are paid to the lender up front to reduce the interest rate, either permanently or for a few years.
An example is a 3-2-1 buydown: Payments are subsidized for three years: 3% the 1st year, 2% the 2nd year, 1% the 3rd year, and normal payments from year 4 on.
There are 2 kinds of Insurance to be aware of:
Homeowners- to protect the house
Private Mortgage Insurance (if less than 20% down payment has been made)- this insurance protects the lender against default on a loan by the buyer.
Other MUST Read Links:
Purchase Contract Basics
Credit Score Basics
The Best Way to Search and Work With A Realtor
January 30th, 2007 Columbus Buyer Info, The Good No Comments
I’ve got a realtor that I’m working with, but I want to go out and search on my own.
What’s the best way to do this?
1. Ask your real estate agent for 10-15 of her business cards. Carry a few with you to give out as you’re searching.
2. At open houses, give the attending realtor one of your agent’s cards. Signing a guest register is optional; you can sign your agent’s name if you choose.
3. If you want to consider a new build and visit a model home, tell the sales associate you’re working with a real estate agent and also tell them you want to register yourself and your agent.
(NOTE: There are many advantages to using a realtor when building a home, but some builders are very fussy and have particular rules about the way your real estate agent gets registered- be sure to ask about their process.)
4. If you find an interesting listing on the Internet, get the address or Multiple Listing number and email your realtor- she/he can get you all the information you wish.
5. If you wish to see a listing and your agent is unavailable, you have the choice of calling the listing agent and scheduling a showing appointment with him/her. Tell the real estate agent who your agent is, and give your agent’s card to him/her when you meet.
(NOTE: Remember, this agent is working for the seller. At the showing, be careful not to reveal any personal information that could benefit the seller; this agent will tell the seller anything that is to their advantage. If the home has potential, plan on scheduling a second showing appointment with your real estate agent attending with you.)
6. If you see a For Sale By Owner (FSBO) that you’re interested in, get the phone number and address- call your agent and share this information. She/he can arrange for a showing for both of you to go to together. (Most FSBO’s are willing to pay the 3% co-op fee to a buyer’s real estate agent.)
Your realtor will advise you on pricing, get information on comparable sold properties, look out for your interests, write and negotiate a contract, arrange all inspections, mediate any differences, assist with financing and attend your closing- all the same things we perform with standard listed homes.
Reasons to Use a Realtor to Build a New Home
January 30th, 2007 The Good 1 Comment
What are the reasons to use a realtor if I build a new home?
1. It doesn’t cost you any more money than if you didn’t.
With the exception of a very few builders who refuse to cooperate with real estate agents, most builders have a general fund that is used for marketing/advertising and real estate commissions.
The builder pays the fee-not you. Your realtor’s commission is paid out of this fund.
2. Your real estate agent is there to represent your interests.
Remember, the builder’s sales rep is representing the builder’s interests, not yours. Real estate agents have to disclose to you who we represent- that’s the law. Builders are not bound by any such legal requirements.
3. Your realtor can give you important advice on home design, features, lot selection, and amenities that will affect both your final price and the potential resale value of your home. Think of your real estate agent as a third set of eyes.
More questions on building a new home? Click here for answers.
Why Your Realtor Won’t Share Information
January 30th, 2007 Down to Business No Comments
When I asked my realtor to tell me what were the best schools and neighborhoods, she wouldn’t tell me. Why?
There’s a one-word answer- LIABILITY. A few other words could apply: lawsuits, discrimination, license revocation… the list goes on and on.
As a parent, I understand your desire to have a great neighborhood and a good school for your children. As a realtor, I understand that opinions of what makes a good neighborhood and school system are both personal and subjective.
A good realtor will assist you by advising you on communities that match your family’s interests (does your family like urban or suburban surroundings? Do you need easy access to parks, bicycle trails, or the shopping mall?) and by sharing available information on school systems (reports, magazine reviews, school web sites, etc.).
Realtors can provide information; it’s up to you to make choices.