We’ve learned a few things about the real estate market over the years, and there are a few things that we hope to instill in every client.
(Plus, be sure to read our original post on 5 Things Your Realtor Wishes You Knew)
1. If you’re buying a home, be sure to get your own buyer’s agent. If you call the number on the “For Sale” sign, you’ll be directed to the listing agent — who is working exclusively for the seller! In fact, it’s the listing agent’s job to get as much money possible for the seller, so you can bet that he or she won’t have your best interests at heart. Instead, give us a call to be introduced to a local agent who would be happy to represent you! (Bonus: Getting a buyer’s agent won’t cost you a thing! It’s the seller’s responsibility to pay for both agents.)
2. If you’re selling your home, it pays to price it correctly….from the very beginning. If only we had a dollar for every time we heard a client say “I’m in no rush, so let’s start out about $10,000 above market value and we can always reduce the price later”. It’s not a bad thought when you’re selling a your beloved college bike, a vintage sewing machine, or even a car. But unfortunately, time is of the essence when it comes to selling homes, and the longer your home is on the market, the less desirable it becomes. Ultimately, if your home has been on the market for longer than a month, buyers are more likely to submit low offers because they know that nobody else has been interested. This means that you’re less likely to get fair market value. Trust us on this one!
3. There is a difference between a preapproval and a prequalification – a big difference! A prequalification is simply the first step between a buyer and a lender to provide an estimate their budget. It’s a simple telephone call where the buyer verbally explains their debt and income. A preapproval, on the other hand, requires verification of the buyer’s debt, income, assets, and credit score. It’s essentially a tentative mortgage approval, and a much better indicator of whether or not a buyer will be able to purchase a home. If you’re selling your home, be sure that any offers include a preapproval!