Archive for Real Estate

Should I Hire Multiple Realtors?

Should I hire multiple real estate agents when buying a home?  We run into this question a lot.  Generally, the answer is, “No, you shouldn’t.”  Working with more than one agent usually does you more harm than good.  If you’re looking in two DRASTICALLY different areas, say Seattle and Tacoma, it may make sense to work with different agents from respective areas.  But if you’re mostly looking in the same general geographic area, there’s usually no real benefit.

But my dad said you should always work with as many agents as possible!  Many people think by using multiple agents, they’ll have access to more listings.  This may have been true decades ago, before the internet was invented.  But now a days, most listings are in the MLS and therefore online, so any agent you hire should have access to all available listings.

But if I don’t have to pay my agent for their time, how can it hurt to hire several?  Some people feel that pitting multiple professionals against each other will make them work harder.  It actually tends to be the opposite.  If everyone involved knows you might buy from someone else, they may just try to make a quick sale and sell you the first thing you see.

So if I can find listings online, why should I work with an agent at all?  An agent should be doing much more than showing you homes.  They should be educating you as to whether or not the home is a good investment, structurally sound, will have good resale value, etc, etc, etc.  This is a big decision and you need to align yourself with a professional that will have your best interest at heart.

So how do I know which real estate agent to work with?  You should talk to more than one professional.  Learn which questions to ask to ensure that the person you ultimately hire is the right one for the job.  Like any industry, there are awesome people in the real estate field and lame ones.  Make sure you pick the right one.

Don’t make the biggest financial decision of your life without getting educated!  If you’d like to learn more about how to hire the best real estate agent for you, or the home buying process in general, please go to our Calendar/Reservations page and register for one of our FREE First Time Home Buyer workshops.

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Is Winter a Good Time to House Hunt?

Is winter a good time to house hunt?  Many first time home buyers ask us when the best time to search for a home is.  The honest answer is, there can be pros and cons to shopping during any time of the season.  It really comes down to your personal situation.

Will I have less competition in the winter?  Many first time home buyers don’t want to house hunt during the holidays.  So if you’re willing to undertake your search during this time, you will most likely have less buyers to compete against.

Are there any down sides to shopping in the winter?  Absolutely!  Just as many first time home buyers don’t want to buy during the holidays, many sellers also don’t want to sell during the holidays.  So even though you may have less competition, you’ll probably also have less to chose from as well.

So when should I buy?  It really depends on your situation AND your specific housing market.  You should start looking for a home, when it makes sense for you.  Also, you should be consulting with a real estate professional about YOUR SPECIFIC MARKET!  It is possible to have less buyers and more sellers in the winter in one demographic, and the exact opposite ratios at the exact same time of year in another demographic.

Don’t make the biggest financial decision of your life without getting educated!  If you’d like to gather more information about when to buy in your area, or the home buying process in general please go to our Calendar/Reservations page and register for one of our FREE First Time Home Buyer workshops.

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I Want an Ugly House for Christmas

I want to buy an ugly house.  We hear this from a lot of first time home buyers.  It’s generally an approach for people that want to be in a particular neighborhood, but are constrained by price.  So they look for an ugly house so they can get a better deal and do repairs after closing.  This can be a fantastic idea as long as you know what you’re getting into.

What do I need to know?  Even if you’re a contractor or just very handy, banks generally won’t lend money against a house that has structural issues.  Because of this, first time home buyers may want to narrow their search to only include properties that need cosmetic repairs as opposed to structural repairs.  If you’re considering a rehab loan, they have a lot of other caveats so we’ll save that discussion for another blog.

So I’ll just target cosmetic fixers then.  Hold on now, it also depends on what type of financing you’re using.  FHA can be a great option for first time home buyers.  However, they are often more stringent in regards to property condition than conventional loans.  So if you’re using an FHA loan, you could be excluded from buying cosmetic fixers with minor issues like pealing paint, or even a broken window pain.  This is why it’s imperative to align yourself with a real estate professional that understands the different types of financing guidelines.

If the bank won’t loan me the money, then I’ll just find another house.  It’s usually true that if the bank won’t give you a loan (depending on how the contract’s written), you can exit the contract and retrieve your earnest money.  However, there are some upfront costs involved like paying for a home inspection and ordering the appraisal, that have to be paid regardless of whether or not the loan closes.  This amount is generally some where between $1200-1500!  You don’t want to have to pay this money up front unless you’re pretty confident you can get the loan.

Don’t make the biggest financial decision of your life without getting educated!  If you’d like more information on buying a fixer, or the home buying process in general, please go to our Calendar/Reservations page and sign up for one of our FREE First Time Home Buyer workshops.

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How Do I Choose a Real Estate Agent?

          

How do I choose a real estate agent?  There are many things to consider when choosing a real estate agent to represent you in a home purchase.  Just a few of your criteria should be financial, structural, area and market knowledge.  Many people think they can represent themselves when buying a home, but this can be a risky strategy especially for first time home buyers.

Isn’t my lender the one that needs a financial background?  Yes, of course your lender should have a strong grasp on the different loan programs available to first time home buyers.  However, your lender isn’t in the car with you every time you view a property.  So it is imperative for your real estate agent to also understand the intricacies of the loan your utilizing.  If they don’t confirm this info before showing you property, it’s time to find a new agent.

But it’s the home inspector that assess the structural integrity of the property, right?  For sure.  No matter how much your agent knows about construction, every first time home buyer should always hire a third party inspector to assess the property.  However, if your agent at least has a basic understanding of construction, they should be able to steer you away from the really poorly constructed properties, so you don’t keep wasting money on hiring an inspector.

What’s area knowledge mean?  It’s often helpful to hire an agent that has a familiarity with the demographic that you are considering purchasing in.  The more they know about the area, the more they’ll be able to guide you in the right direction.  I.E. good school districts, etc.

So what about market knowledge?  The real estate market is forever changing.  Is this a buyers market, or sellers market?  Can I negotiate this price?  Will I have competition for this home?  These questions will be best answered by a FULL TIME real estate agent.  For an agent to have a strong understanding of the market, they have to do a consistent level of business.  We understand that everyone knows a real estate agent, but please make sure the one you hire will be able to represent you to the level that you deserve!

Don’t make the biggest financial decision of your life without getting educated!  This is just the tip of the ice berg.  If you’d like to find out more about hiring a real estate agent or the home buying process in general, please go to your Calendar/Reservations page and sign up for one of our FREE First Time Home Buyer workshops.

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When Will We See More Listings?

          

When will we see more listings in the Greater Seattle area?  This has been a major question on many first time home buyers minds.  In the housing market decline many home owners lost enough of their equity position that they ended up under water, or owing more on their mortgage than the house was worth.  This often prevents them from selling.

Is this still the case with many home owners?  This equation is definitely changing due to all the appreciation we have seen in the Greater Seattle area.  Depending on the demographic that you’re looking at, many areas values are about where they were in 2006.  If prices continue to rise we may get to 2007 levels at the end of 2013 or early 2014.

Will this cause more home owners to list?  This definitely could be the case.  Many economists speculate that there are a lot of home owners that either bought or did a cash out refi in 2006-2007, that would really like to sell but won’t be able to until values reach these prior year levels.

Should first time home buyers wait until there’s more available inventory to buy?  That really depends on your specific situation.  If you wait for more inventory, it’s quite likely home values and interest rates will continue to rise.  However, if you currently have room to afford more house and aren’t concerned with being priced out of the market, waiting might help you find a home that better fits your needs.

Don’t make the biggest financial decision of your life without getting educated!  If you’d like to find out more about todays current housing market or the home buying process in general, please go to our Calendar/Reservations page and register for one of our FREE First Time Home Buyer workshops.

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