by CRESTICO | Feb 18, 2009 | CRESTICO
In making your decision to work with an agent, there are certain questions you should ask when evaluating a potential agent.
First, you should find out (by asking him/her) whether he/she is a REALTOR®. The term "REALTOR®" is a registered collective membership mark that identifies a Real Estate professional who is a member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics (which in many cases goes beyond state law). In most areas, it is the REALTOR® who shares information on the homes he or she is marketing, through a Multiple Listing Service (MLS).
Next, get to know a little about your potential agent's license. In California, you can go to www.dre.ca.gov and do a "license check." This means you can see whether this person (a) has a license, (b) has a license in Good Standing and (c) who is the Broker that your agent is affiliated with. All of this information can be quite useful. Odds are that you do NOT want to work with someone who has a questionable past or too many open complaints or inquiries. In this day and age of rampant fraud and dishonesty, and with the mortgage crisis we are currently in, it would certainly be in your BEST interest to make sure your agent's license is CLEAN!
Next, find out about your agent's access to the Multiple Listing Service (MLS). If he/she is a Realtor® most likely, he/she has access to the MLS in your desired area. If not, you may want to ask him/her to get than access before you agree to use him/her as your agent. A good agent will go to any length to secure your satisfaction. The MLS can be quite useful in helping you to locate your dream home.
Now that you know about his/her license and all that he/she has access to, it is time to find out a little about your actual agent. Remember, this is a person you are going to be working quite closely with for an extended period of time. Many escrows are generally 30 days, and some, especially those for REOs are even longer. Remember, you do not enter escrow until after you have found a home, and sometimes it can take weeks to find the right home, so you want to make sure you are working with an agent that you are pleased with. In order to get to know your agent better, you want to ask him/her if real estate is his/her full time career. An agent who is not fully committed to his/her career, probably cannot be fully committed to your house hunt, either.
Additionally, you will want to find out if this person whom you may be considering as a potential agent, is in fact the seller's agent, as well. What does that mean? Let's say you go to an open house and there is a nice agent there who is extremely helpful and friendly. Now let's say this friendly agent asks you if you have an agent and you say "no." This person will want to be your agent. However, keep in mind, this agent is the Seller's agent, which means that he/she is the Agent who is trying to sell the home you are viewing. You will want to be careful about what kinds of confidential information you give this agent, because he/she has a fiduciary duty to his/her client (the homeowner.) So, it may be in your best interest, to find your own agent so that you can have someone purely interested in YOUR best interest, ONLY.
Finally, before making a final decision regarding an agent, you should ask the prospective agent HOW he/she plans to help you find your dream home. Ask him/her about his plans, you are entitled to know how your agent wants to go about making sure your future home has all of the things you do want and none of the things you do not want.
by CRESTICO | Feb 18, 2009 | CRESTICO
Realtor vs. Real Estate Agent: What’s the difference and How to Choose one?
Before someone can hold him or herself out as a “Real Estate Agent,” he/she must be licensed by the state in which he/she plans to work, either as an agent/salesperson or as a broker. Before a license is issued, minimum standards for education, examinations and experience, which are determined on a state by state basis, must be met. After receiving a real estate license, most agents go on to join their local board or association of REALTORS® and the NATIONAL ASSOCIATION OF REALTORS®, the world's largest professional trade association. They can then call themselves REALTORS®. An agent may still practice Real Estate without being a REALTOR®, however this means that the agent has not completed the steps in becoming a REALTOR®.
A REALTOR® is held to an even higher standard of conduct under the NAR’s Code of Ethics. In recent years, state laws have been passed setting up various duties for different types of agents. As you start working with a REALTOR®, ask for a clear explanation of your state's current regulations, so that you will know where you stand on these important matters. The term "REALTOR®" is a registered collective membership mark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics (which in many cases goes beyond state law). In most areas, it is the REALTOR® who shares information on the homes he or she is marketing, through a Multiple Listing Service (MLS). Working with a REALTOR® who belongs to an MLS will give you access to the greatest number of homes.
As a consumer, you are not bound to choosing only REALTORS® or Agents, you may work with either. There are many excellent agents that are not REALTORS®, however read on to discover some strategies in choosing the best REALTOR® or Agent for you. Real Estate Agents, whether REALTORS® or not, are bound by certain legal obligations. Traditionally, Agents must consider and weigh your interests ahead of anyone else's; maintain the confidentiality of your information; obey your lawful instructions; be responsible for reporting anything that may be useful or of consequence to you; and account for any money involved in your transaction
by CRESTICO | Feb 13, 2009 | CRESTICO
How To Choose The Best Real Estate Agent for You
The real estate industry can be a very tricky one to navigate, especially if you are a newcomer or a first time buyer. As with any other major life decision, it always helps to have guidance and expert advice. However, finding the RIGHT person to provide this for you can seem tricky. Read on for tips on how to choose the right agent and determine if he or she is the best for you.
Finding an agent is not a difficult task, however finding a GOOD agent amongst the many agents you hear about can be a little trickier. A good place to start is with your immediate social circle. Begin by asking for recommendations from people who recently sold and/or bought a home in your area or call a realty office and the manager to recommend an agent who specializes in your type of property and community.
Once you have an agent, get to know him or her a little better, establish a trusting and honest relationship with this person, since you will be counting on him or her a lot during this process. Next, put together some information about your property, highlighting the features and best qualities, especially those that may not be obvious at first glance. Doing this with your agent will help him or her to write the best listing for your home. If you are buying, work with your agent to establish a list of qualities and features you will be seeking in a home. This way, your agent can select the most appropriate listings for you to view.
When talking to your agent, ask him or her how he/she would establish a price and what his/her plan would be for marketing your home. Ask about his/her strategies and networks and contacts. For Buyers, ask about the agent’s past experiences in the area or with the type of home you are seeking. All of this information will help you to determine whether your agent will be able to provide you the level of service and customer care that you will need.
If you are unsatisfied with the agent's plan or personality, thank the agent for taking the time to meet with you, and repeat the process with another agent. Do not "settle" for an agent. Seek out the BEST agent for you. Your agent should be pleased to work with and for you and you should not feel like you are imposing on him/her. Remember, your agent will need you to be a satisfied customer because in our industry, business grows the best through word of mouth. So make sure you have an agent that will leave a lasting and positive impression on you and anyone you may refer him/her to!
Once you are pleased with your agent and have made a final selection, make a commitment. Commit yourself to this agent and that agent will commit to you. Relationships are the most valuable commodity in this industry and sometimes they take work. Your agent is a person just like you and will do his/her best to make you happy as long as you communicate your needs to him/her clearly.
by CRESTICO | Feb 12, 2009 | CRESTICO
Foreclosure Moratorium: Good Thing or Bad Thing?
Today, the news reported that foreclosure figures were down for the month of January. The Riverside and San Bernardino areas of California have been some of the hardest hit areas when it comes to struggling homeowners and foreclosures. Record numbers of defaults and foreclosures have been reported. Press Enterprise reported that there were 17,629 foreclosure-related actions in Riverside and San Bernardino counties in January, according to a report released by RealtyTrac, an Irvine-based firm that markets properties online. That is 8 percent less than December in the two Inland counties but about 40 percent more than January 2008. Recently, mortgage giants, Freddie Mac and Fannie Mae imposed a moratorium on foreclosures, effectively barring lenders from foreclosing on any properties.
Although this may sound like a good thing, it may not be. Stopping foreclosures with a moratorium, may not be the answer to our mortgage crisis. Even though the numbers of foreclosures have been reduced, this reduction may not necessarily lead to the solution of the crisis because moratoriums often add costs to the foreclosure process and leave servicers and borrowers with effectively "bigger" bills to pay. Additionally, moratoriums result in impediments on statutorily required actions like sending breach letters, notices of default, and debt accelerations.
Not allowing foreclosures to take place does not save homes where the property has been abandoned, converted and is not profitable, damaged, subject to code violations, and where borrowers may have sufficient income to pay their loans but choose not to because of the moratorium. Delaying foreclosure in these aforementioned cases will not only result in higher costs for servicers and borrowers but will also lead to the deterioration of the properties.
Furthermore, one definite side effect of moratoriums is an increase in the number of delinquencies and defaults. A moratorium essentially motivates the faltering borrower to stop making payments. Borrowers who were once stretching, working more hours, adjusting their lifestyles and even liquidating assets to make their mortgage payments to avoid foreclosure now have no motivation to pay their mortgages. Also, these borrowers will then face an increased risk of never being able to recover from their situations. As more penalties and fees are incurred and increased motivation is provided to stay delinquent, the chances for recovery become increasingly reduced.
Another unintended side effect is the undue pressure that will be put on the servicing companies of these loans. The cost to continue to advance principal, interest, tax and insurances payments during the time that borrowers are not paying will cause severe financial hardships for these companies, especially since they do not own the loans, but merely service them.
Ultimately, while the words sound like they hold the answer to the current crisis we are facing, one must look deeper into the proposed "solution" and truly reveal the impact that this "solution" will have on our society and economy. To further distress already distressed parties, in my opinion, would not present a solution to our crisis. While a moratorium is a good first step, it is only beneficial if we use the time to seek and find other answers to our problems that would result in actual positive results.
by CRESTICO | Feb 11, 2009 | CRESTICO
Real Estate is an industry thought by many to be highly lucrative and high-paying. But have you ever wondered HOW exactly your agent will be paid? You are often approached by agents trying to convince you to list your home with them, or allow them to show you some nice homes to buy. Read more to find out how your agent will be compensated and from where. As a prospective homebuyer, it would be in your best interest to understand this compensation process.
The standard compensation structure for Real Estate Agents is that he/she will be paid commission, based on the selling price of the property you are interested in. While commission rates are not standardized, the process in which they are disbursed is consistent. When a seller signs a listing agreement, that contract is with a brokerage firm. All fees must pass through that brokerage firm. Typically, the seller’s and the buyer’s agent will be paid by the listing broker after the transaction closes. When a property is listed for sale, the seller’s contract spells out the commission rate that will be awarded to a buyer’s agent.
Often, many people often try to avoid using real estate professionals so that they may avoid paying commission fees. However, I would warn against this because of some of the potential pitfalls. Unrepresented sellers (for-sale-by-owner properties) often do not have enough information about how to price the home, and sometimes try to raise the price instead of paying a real estate commission. Also, as an unrepresented buyer, it will be much more challenging and difficult for you to determine if the asking price is reasonable and whether or not you are overpaying. Real estate agents have developed insights that go well beyond simply evaluating data through the Multiple Listing Service (MLS). And if you are overpaying, it will create further complications in securing financing, because of potential lender requirements.
Real estate professionals play a vital role in helping you achieve the dream of owning your own home. Beginning with helping you tour and select properties and then guiding you during the negotiation phase and finally seeing it through inspections, financing and closing, the services your Agent will provide you are priceless. This is especially true in today’s market, where alternative buying opportunities, including short sales and REOs make it even more difficult to navigate the choppy waters of the home buying market alone.
by CRESTICO | Feb 10, 2009 | CRESTICO
You’ve started the process. You made the decision to purchase a home, perhaps even your first one! Now that you have found the one you want, what’s next? Your agent will help you, read more for some tips and insight as to how the process works. First, you need to make an Offer. What that is, is basically an expression of your desire to purchase the property and at what price you are willing to do so. Your offer will be the first step in the negotiation process. Just like any other offer you make, it would be highly helpful to take the other party (in this case, the seller) and his/her expectations into consideration when making your offer. The seller has set an asking price for the property, but remember this is not set in stone! Often, you as a buyer, can save lots of money just by starting with the right offer price.
Often, when writing an offer, there will be lots of contingencies involved. Contingencies are basically built-in protections to make sure that your risks are being limited and you are being afforded the most protection possible. Your offer will include information such as: the price you are willing to pay as well as other details that are involved in the negotiation process such as down payment and financing information, inspection information and timetables on the method and manner that you will be receiving legal and physical ownership of the property. Other information included will be whether personal property is included in the purchase, terms of cancellation, any repairs you want performed, which professional services will be used, and how to settle disputes should they occur. Here, we will focus on the topic of Contingencies to give you a better idea of what they are and how they work.
Although in most transactions there may be slight challenges, most will go quite smoothly. However, we want you to be prepared and anticipate potential problems so that if something does go wrong, you will be in a position to cancel the contract without incurring any penalties. These protections are called "contingencies" and should be included when you offer to buy a home.
Often, a buyer will not be making a full cash offer on a property, that is, offering one lump sum as payment in full. As a result, that buyer will seek and need financing to complete the purchase. Obtaining suitable financing can be made a contingency as well. Buyers often do this to protect themselves, should they be unable to secure financing. Another contingency that buyers should consider is that the property should appraise for at least what the buyer agreed to pay for it. Inspections will be performed and reports will be provided before such contingencies are lifted.
Sometimes, a buyer will agree to purchase a home while in the process of selling the home he/she is currently living in. Often, even though an offer has been accepted on the buyer’s current home, the buyer and his/her potential buyer may still be involved in escrow, making that transaction a “pending” sale that has not “closed” yet. As such, a buyer would want to make that closing a “contingency” on the offer he/she is making; so that should something go wrong and that sale not close, the buyer would not be forced into a situation where he/she would be responsible for two mortgage payments each month.
Ultimately, contingencies protect buyers just in case they find themselves in positions where they become unable to perform or choose not to perform on a promise to buy a home. Without contingencies, a buyer may find himself/herself forfeiting his/her earnest money deposit.
