As a real estate agent, what do you think is the most important thing to find in a lender?
A lender is his or her own brand. The moment I see a pre-approval letter, I know many things in one instance: Whether or not the deal will close; whether or not the deal will close on time; and whether it will close without hiccups—all because of the person behind the letter. It’s about trust and doing what it takes to get the job done and going above and beyond to be sure it happens!
To do what you say you are going to do is a very important aspect in a lender, especially in this economy where at times it’s hard to get a loan through. It’s about calls, emails, follow up, action- communicating the status of the loan to all parties in the transaction is very important! Also, always be loyal to your lender!
I’m preparing to sell a home, what do inspectors look for during their inspection?
For home sales, meaning listings, typically there are two inspections done concurrently. One is the Home Inspection by a licensed contractor and the second is the Wood Destroying “Pest” Inspection which is done by a termite company. Both reports complement each other.
The property inspection provides the seller with a punch list of items that are in need of repair and items to look forward to dealing with in the future. The pest report also shows the amount of dry rot and any wood destroying organisms in the structure. Typically, many lenders actually require the Section 1 items to be clear prior to close of escrow.
I encourage my sellers to do the reports upfront because often times many repairs are done prior to getting the house on the market. In fact, the home’s condition, and thus the reports, can affect the actual value of the home. Reports ahead save time and money. In fact ALL home owners should get both a contractors and pest inspection even when they do not plan to sell. It’s a good way to keep your home in tip-top condition.
What should one consider when placing an offer on a short sale property?
Short Sales have come a long way, especially with so many on the market right now, the process has refined as the number has grown. One of the first items to consider with a short sale is how many banks are involved. There may be up to 3 different banks on any one home! Obviously the more banks there are, the more challenging it can be to close escrow. Also consider which bank(s) are involved is important as well. Each bank has its own criteria which can be a moving target during the process of trying to close the home. Always ask if the listing agent is a trained short sale specialist. There is an art to handling short sales and having a great listing agent who is qualified makes all the difference in the world. If you happen to be first time buyers, my best advice is to stay away from short sales. It’s better to go for a regular sale or perhaps a bank owned property for your first home buying experience!
What exactly is a short sale and how do I know if it’s right for me?
Short sales happen when the loans that are existing on a property do not add up to the current value of the home. When the values in the housing market dropped dramatically many people found that they owed more on their property than it was worth, which is why there are so many short sales on the market currently.
Fortunately, short sales are slowing down; however, it will still take some more time to cycle through as the market recovers. We are very lucky on the Peninsula to not have a high percentage of inventory that are short sales!
What are three things buyers or sellers can do to make the transaction smoother?
1) Choose a Realtor and be loyal to that Realtor. The relationship between the buyer and seller and their realtor is one of trust. That’s why choosing the right Realtor to work with is important. You need to be able to be honest with your agent and know that the agent understands what you’re looking for and trust that they have your best interests in mind!
2) Pre-Approval is actually the first step to home ownership. So, get pre-approved! To do this, contact your lender of choice and answer a few simple questions. This sets it up so that when you’re ready to make an offer on a home you can add a letter of pre-approval to the offer and look more attractive to a seller!
3) Accept the fact that things will change in this process. I cannot tell you how many times people have told me “I do not want a ranch home,” and guess what they end up buying…..a ranch home!! A few months ago I had active buyers who wanted a town home only and to not be in the hills. Guess what they ended up buying: An adorable home in the hills because it reminded her of her mother’s neighborhood. Things change, all the time!!
Why Should I Have A Buyer’s Agent?
For most of us, buying a home is the biggest single investment we’re likely to make – and we’re only likely to do it maybe once or twice in a lifetime. The process is, by nature, filled with checks and balances and many complex details. Traditionally, agents were legally obligated to protect the interests of the home seller. Today preferences are changing. One of these changes is that more homebuyers are choosing to have their own real estate agent, known as a buyer’s agent, to legally represent them.
A buyer’s agent represents the buyer, not the seller, and has full fiduciary duties including loyalty to you. By definition, the buyer’s agent has your best interests in mind throughout the transaction. The percentage of homebuyers with buyer representation has grown significantly in the past decade. According to a recent National Association of Realtors® survey, nearly half (46%) of home buyers used the services of a buyer’s agent last year, and four out of every five buyer’s agent agreements were in writing.
The benefits of buyer representation is the dedication of a buyer’s agent to the home buyer. The buyer’s agent and homebuyer establish a mutual agreement, known as a buyer agency agreement, that will entitle the homebuyer to, but is not limited by:
Loyalty
The real estate agent must act in the best interest of the buyer.
Disclosure
All material facts such as relationships between agent and other parties, existence of other offers, status of earnest money, seller’s financial condition, property’s true worth, commission split with other brokers, and legal effect of important contract provisions.
Confidentiality
Any discussions, facts, or information that should not be revealed to others but does not include responsibility of fairness and honesty in dealings with all parties.
Accounting in Dealings
Reporting of where any money placed in the hands of the broker is kept.
Reasonable Skill and Care
Arriving at a reasonable purchase price and advising the buyer of such, affirmatively discovering material facts and disclosing them to the buyer, investigating the material facts related to the sale. With a buyer agency, the interests of the home buyer will be represented in the purchase of the home. This scenario is different from a typical transaction where the buyer is not technically represented.
Contact Brooke at bdunbar@cashin.com.
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