In the world of companies like MLS 4 Owners and Redfin, the do-it-yourself buyer and/or sellers have been popping up everywhere, worse than the dandelions in my backyard! But does this direction really save you money as once thought?
Well, let’s think about it…if you were to get sued for $300,000 would you protect yourself or hire an attorney to protect you? I don’t even know if I have to ask this question, we all know the answer…you would hire the professional to protect you! So why would you not do the same with the biggest purchase in your life?
From the listing perspective…
Usually what I hear from clients that are listing their home is that they want to save money. On paper this makes sense; with a listing agent costing upwards of 3% plus you have to factor in the buyers agent for an additional 3%, your now forking over a grand total of 6% in fees? Ouch, right! Let’s look at the alternative.
Consider this, on average FSBO (For Sale By Owner) homes sell for an average of 6% less than homes listed by a real estate agent. So using an agent literally pays for itself, not to mention the legal protection that you are receiving through the negotiation process and finalizing the paperwork.
From the Buyers perspective…
Well, this is an easy one…you don’t pay for it! Remember in the previous paragraph I said that the listing agent has to factor in the buyers agent cost, yes…this is your agent if you’re the buyer. So when you buy a home using an agent, the seller is paying your agent! You’ve gotta love that.
Again, since this is no money out of your pocket for this protection, why would you not want it, however, it amazes me how many people still list and buy without an agent. It could get you into serious trouble.
Now, quick plug for me as well, the same applies to using the right mortgage broker. Do you choose to use someone that has withstood the test of time in the industry and has your best interest in mind, not to mention the best programs on the market? Or someone that sits behind a desk and gets paid whether they close your loan or not? I’ll let you decide.
If you have any additional question about the buying or selling process, feel free to send me an email. I always love to answer questions!
Also, if you can think of any other benefits of working with an agent post them on my blog. I would love to hear your prospective!
Showing posts with label Buying a home. Show all posts
Showing posts with label Buying a home. Show all posts
Friday, September 12, 2008
Friday, July 25, 2008
Is Now A Good Time to Buy a Home?
I get this question a lot from clients, “Is now a good time to buy a home, or should I wait?” Well, now more than ever is a great time to buy a home. Whether you are purchasing a home on your own or getting into a lease option, I will show you how you can take advantage of a great market!
When you buy stocks what strategy would you use to get rich, buy high and sell low or buy low and sell high? The same applies for real estate. You see, when everyone was buying homes left and right 2 years ago…it created a sellers market, meaning sellers could get almost anything they asked for on their home, this is the worst time to buy a home.
However, when homes are sitting and sellers are motivated, then the market becomes a buyers market, meaning that buyers now have the control. The control for what…well to get a deal! I will give you a recent example of a lease option that we just completed. The client that we were helping purchased a home, using a lease option, at $260,000. However the home is worth $325,000 easily, maybe even more. You see the seller was also a builder and was extremely motivated to get rid of the property.
Now when our lease option tenant qualifies for financing 2 years from now and purchases the home, even at a 10% markup ($286,000) they will have over $39,000 in equity, even if the home doesn’t appreciate a penny! So you can see that this market works for home buyers and lease option tenants alike.
So if you’re sitting on the fence and thinking that this market is something to stay away from…its time to think twice! To see what kind of deals you have available in your area, send us an email or give us a call and we would be more than happy to help you out.
When you buy stocks what strategy would you use to get rich, buy high and sell low or buy low and sell high? The same applies for real estate. You see, when everyone was buying homes left and right 2 years ago…it created a sellers market, meaning sellers could get almost anything they asked for on their home, this is the worst time to buy a home.
However, when homes are sitting and sellers are motivated, then the market becomes a buyers market, meaning that buyers now have the control. The control for what…well to get a deal! I will give you a recent example of a lease option that we just completed. The client that we were helping purchased a home, using a lease option, at $260,000. However the home is worth $325,000 easily, maybe even more. You see the seller was also a builder and was extremely motivated to get rid of the property.
Now when our lease option tenant qualifies for financing 2 years from now and purchases the home, even at a 10% markup ($286,000) they will have over $39,000 in equity, even if the home doesn’t appreciate a penny! So you can see that this market works for home buyers and lease option tenants alike.
So if you’re sitting on the fence and thinking that this market is something to stay away from…its time to think twice! To see what kind of deals you have available in your area, send us an email or give us a call and we would be more than happy to help you out.
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