As the First Time Home Buyer tax credit comes to an end, it seems as
though home buyers are taking longer to find a home that suits their
needs. One may call it an issue of supply and demand, however, most are
calling it â€œMy Realtor sucks!â€
Just like early 2007, real estate was booming at an astronomical
pace. Mortgage and real estate firms were opening their doors faster
than they could imagine because there was an oversupply of qualified
buyers (via SubPrime) andÂ an oversupply of sellers cashing out on their
homeâ€™s appreciation. This â€œoversupplyâ€ basically gave any Realtor
enough business to make it a full time career, however, do you remember
what happened after the market collapsed? Yup, ghost town baby!
So with the extended tax credit enticing more buyers to buy and more
sellers to sell, we are having more Realtors enter the market like
What to Look For
If you are in the market to buy a home, or any product for that
matter, it is very important to interview who you are hiring to
represent your best interests. Hereâ€™s a couple of good questions to ask
the Realtor you are wanting to help you find your dream home:
- How long have you been a Realtor?
- Are you full time or part-time?
- How is your current work load?
- What are you specialized in? (if they say everything, not a good
- How long are you seeing homes on the market in â€œxâ€ area?
- Whatâ€™s your best and worst attribute?
These are just a couple things to ask, but remember, its an
interview, so feel free to fire away! It is crucial that you work with
someone that is good at what they do. You would think this goes without
saying, but so many people work with â€œUncle Bobs sisterâ€™s uncleâ€™s FedEx
guyâ€ just because a family or a friend referred them.
A referral is great because it usually means they have done a great
job for someone, but that doesnâ€™t necessarily mean they will do a good
job for you and your specific situation. Just like people shop loan
officers, you should shop Realtors as well. Would you hire a Foreclosure
Expert to find you a luxury home? Most likely not.
An Added Cost You May Not Be Aware Of
Choosing the wrong Realtor can definitely cost your more than you
expect if youâ€™re not careful. Finding a home is one thing, but
determining your needs and negotiating the terms is where these folks
earn their money. Anyone can plug away at a sales price, area, and send
you a list of homes (whoop-dee-freakin-doo), however narrowing that
search down to whatâ€™s specifically in YOUR interests, and getting it to
you at the price you want to pay is where a rookie Realtor will fail,
and an expert will excel.
Most buyers see the $8,000 Tax Credit at the end of the tunnel, but
it blinds them way too soon. They donâ€™t take into consideration what
they can LOSE if they are not working with an experienced Real Estate
Team (Realtor and loan officer).
- Earnest Money
- Option Fees
- Termite Reports
This stuff can add up really quick, and if thereâ€™s a glitch in
negotiations, time lines, or financing, you might as well put some rosy
red lipstick on and kiss that money goodbye!
Remember, thereâ€™s no reason to settle for less than the best when you
have more than enough selection out there right now!