Choose a Professional REALTOR and Lender

It is very important to work with a REALTOR and Lender that you trust and that knows the local market. Did you know that the REALTOR services for homebuyers are usually free? When a seller contracts with a listing agent to sell a home, they agree on a REALTOR fee. To list the home on the Multiple Listing Service, the listing agent agrees to split the fee with the REALTOR who represents the buyers. Thus, there is no charge to you, the buyer, for REALTOR services.

It’s vital that you choose experienced professionals. Your REALTOR should be there for you, finding potential homes for you, keeping you informed of the entire process, negotiating furiously on your behalf, and answering all of your questions with competence and speed. Your REALTOR should know your market.

Be Cautious of Dual Agency

When an agent represents both the buyer and the seller it is called DUAL AGENCY. The laws change with dual agency. When agents represent only one party, they are, by law, required to negotiate to the best of their ability on behalf of their client. However, the law changes with dual agency. Basically, the agent is required to “do no wrong”. The agent must remain confidential with both clients. The agents acts more as a mediator than a negotiator.

Sell First, Buy Next

Imagine this. You find your dream lake home and submit an offer on your terms: you want the seller to reduce the price and wait until you sell your current home. The seller points out the risk that, while he’s waiting for you, he’ll have to pass up another buyer who doesn’t need to sell a house. Having no other buyers now, he agrees to accept a contingency but only if you make it a full price offer with a kickout clause.

This basically states that if he receives another offer on the house while he’s waiting. he’ll deliver a notice to you giving you as little as 24 hours to remove contingency from your offer, or lose the home to the other buyer. To minimize your risk of being “kicked out” you have to offer your home for sale below it’s market value.

You can save significant money and avoid incredible stress by simply selling your current home before purchasing your next home. Some strategies:

Identify possible homes and locations without falling in love with a particular home. Feel confident that you will not have trouble finding the right home before putting your current home on the market.

If you find a buyer for your current home, make the sale “subject to seller finding suitable housing”. This buys you some time to find a new home without assuming any obligation to sell your current home.

Get Pre-Approved Not Just Pre-Qualified

Most lenders can “pre-qualify” you for a mortgage over the phone. They will ask you about your income, debts, assets, and credit history. Based on this information, they can give you an estimate of how much home you will qualify for. None of the information is verified. Most agents and sellers realize that a “pre-qualification” is meaningless when it comes to real “loan approval”.

A pre-approval letter can help you get the winning bid on a home with multiple offers.

For cash buyers, it is important that you get a letter from your bank or other financial institution that states that the funds needed for your closing will be available.

Contact Wanda Richards for more information about buying a Vinton Home!