How to Find a Real Estate Agent

1.  Search Online for Agents

The best place to find an agent is on line, and if you’re reading this then you already know that. So what are you looking for in an agent?

• Web Savvy – Having a web savvy agent is very important today as over 90% of all buyers initially see their homes online. Finding a good real estate agent/broker is essential to enjoying a painless real estate transaction. The saying is “20% of the agents do 80% of the business,” and it is true.
  NOTE: There are plenty of websites that will refer agents to you but that is no assurance of quality. The agents they refer are those who have paid the website owners a fee to be listed in their directory. A better bet is to look for Agents who are experienced; you will find this in plain view on their websites. Also look for customer reviews and testimonials.

• If you are a buyer, you want to work with a Buyers Agent, this way you know your interests are protected in the transaction. Likewise if you are a seller, you want to work with a Sellers Agent, someone that is experienced in representing the seller. Not all agents are experts in working with buyers or sellers. Dual Agents, are agents that work for both the buyer and the seller on the same transaction. (Almost always this agent will tend to spin things one way or the other)

• Ask the agent if they are a full time agent and how long they have been working full time. It is not that newer or part time agents aren’t capable; it just is a factor you should use in making an informed decision. Many “experienced” agents are not always the best choice either. Especially if they haven’t kept up with technology.

• Be sure that your agent is knowledgeable. Ask questions about things you have learned through your new-found interest in real estate. If they don’t know more than you (after all, this is their livelihood) go on to seasoned agent.

• Try to find an agent who goes above and beyond their responsibilities. Look for signs that the agent is busy. A hard-working, go-getter of an agent is good. Be careful, sometimes they can be too busy and unorganized. Theoretically a real estate agent can only effectively work with about half-dozen buyers and a dozen sellers at any given time to properly give the time needed to a client.

• Does the agent have an assistant(s)? An agent who can focus on your needs and desires, instead of the paperwork, can be really helpful.

• If you are a first time homebuyer… Find a 1st Time Buyers Agent-Their experience should be able to guide you through the complexities of the process, including lender info that you will have to provide and what the loan process will entail is as well as what the steps are from contract to close, making it seem effortless on your part.

• A good agent can recommend service providers who can assist in obtaining a mortgage, home inspections, pest control and someone to make repairs on a home.

• Keep in mind here that a real estate agent should generally recommend more than one provider and shouldn’t receive any compensation (ethical issues tend to arise when this happens).

• Video has become an important component to marketing high end properties. The agent should be able to show you an example of their video marketing. If the video was not made professionally or doesn’t have a good quality then it could be a warning sign.

2.  Referrals

Most real estate agents stay in business because satisfied clients refer them to friends, family, neighbors and coworkers. You could contact an agent that a friend or relative worked with. If this agent produced positive results for them, there’s a good chance they will do the same for you.

•  Ask the people around you who they have used and ask them to describe their experience.

• Successful agents make customer satisfaction their number one priority and put their customers’ needs before their own.

3. What is a Designation and does it Make a Difference

The designations are the letters that follow under the Realtor’s name like a “degree.” They acknowledge to the community the areas of specialized training that the agent has. These designations don’t just get handed out; the agent only gets awarded a designation from the National Association of Realtors (NAR) upon completion of the required courses. The acronym under the agent’s name signifies specialized training in an area that makes the agent more qualified for the specialized job. Most designations have requirements after the designation is issued that must be met.

•  The number of designations shows the commitment that the agent has to expanding their knowledge, skills and proficiency in order to better serve the client.

• An agent that is committed to education and performing their job to the best of their ability, will provide clients with more choices and opportunities than agents with fewer designations.

4.  REALTORS® and Real Estate Agents

All Realtors® are licensed to sell real estate as an agent or a broker but not all real estate agents are Realtors®. Only Realtors® can display the Realtor® logo. Realtors® belong to the National Association of Realtors and pledge to follow the Code of Ethics, a comprehensive list containing 17 articles and underlying standards of practice, which establish levels of conduct that are higher than ordinary business practices or those required by law. Less than half of all licensees are Realtors®. So the question remains, how can you find a good real estate agent?

• The best agent for you doesn’t necessarily work at the largest brokerage, close the most transactions or make the most money. The best agent for you is an experienced professional who will listen to you, conduct them self in an ethical manner and will know the market.

5.  A few things you should know, once you’ve found your Agent:

• Don’t expect an agent to call you instantly when you leave a message, but do expect a call back within 24 hours or a reasonable amount of time depending upon the situation.

• Don’t call your real estate agent after hours, past 9 pm or so. They have a life too.

• This is your most important transaction of your life; a seasoned real estate agent does this everyday and understands the many problems that arise during the process. Try to keep the big picture in mind.

• Your house/or the house you are buying is a commodity. Supply and demand within a neighborhood play an important role in pricing and timing of a sale. Try not to become overly emotionally involved in the purchase/sale of the property.

 

 

Originally Posted at: Lafayette Real Estate News

 

   

     The social media giant, Facebook, can help your business generate leads and turn them into customers. It is one of the most cost effect tools for inbound marketing, especially for small business owners. Creating a profile and posting updates just isn’t enough to turn fans into paying clients.  Facebook’s ability to create effective landing pages, analytics, and target marketing is a great indicator of where to improve your marketing and raise your conversion rate.

 

THE FIRST STEP

Building a fan base is the first step in employing social media as a driving force for your business. Your soon to be followers have to be aware of you before they can start engaging with you. The best way to build a good fan base is by connecting with people that are related to your specific industry. If they are not, they will not be very likely to engage with your page. It may be beneficial to add your Facebook page to postcards, emails, or newsletters with a message for the recipients to like it. Use your existing fan base by integrating comments and publishing them to your wall so they show up on your newsfeed. This will ensure that posts from your fans will be seen by their friends who haven’t liked you yet.

 

LOOK AT ME

Once you have you fan base built, you must get their attention so you can generate more traffic. Most of your Facebook fans are not currently buyers or sellers with intent, so we have to maintain their attention in order to become their trusted source in the future. Facebook is now giving an increased weight to video on their site. This places a larger importance on tying your page to YouTube and Google+. Then, you win all the way around! Especially if you are effortlessly hooked together, like me. Contest and events have also been proven to make consumers more enticed.

 

PROSPECTING

Now that we have a database of potential consumers, it is time start prospecting and convert those fans into potential clients. If you have already established an opt-in or personal connection, then this part is easy. You can simply start messaging or communicating with them! If you have not, you may want to consider an opt-in page or contest to acquire direct contact with your fans. Continue posting relevant content and begin encouraging feedback so that it can become a two way connection.

 

 

COVERT AND CLOSE THE DEAL

The more communication you foster between yourself and your fans, the easier this will become. Client testimonials, post of praise, and other content that supports their decision to choose you will seal the deal even quicker. Continuing to grow your fan base is also somewhat correlated with greater conversion rate. Subtly announcing transactions and tagging clients with their permission also helps to tip the scales in your favor. It is especially invaluable when the client interacts with you on the post!

 

THE NEW BREED OF REFERRALS

It is simply to attain recurring business from the clients we have now found via Facebook. Through increased fan activity, we can acquire the attention of our fans’ friends and make them possible referrals in the future. By keeping in touch with your fans through the techniques mentioned above, you can get a referral from their network who they may have never met!

 

 

     Facebook offers many tools that fit in these parts of the sales cycle, including paid ads and one of their new methods, Facebook Pap to get generate more clients. Maintaining a strong presence through continuous interaction, as well as improving your page with metrics analysis, will help you turn those fans into clients without breaking a sweat. 

Originally Posted at: Lafayette Real Estate News

 

 

 

 

 

 

Fifteen Will Get You Three

Freddie Mac chief economist, Frank Nothaft, says that affordability, stability and flexibility are the three reasons home buyers overwhelmingly choose a 30 year term.  However, for those who can afford a higher payment, there are three additional reasons to choose a 15 year term: save interest, build equity and retire the debt sooner.

First-time buyers have a higher tendency to use a minimum down payment and are very concerned with affordable payments.  It is understandable that the majority of these buyers select 30 year, fixed-rate mortgages.

Consider a $200,000 mortgage at 30 year and 15 year terms with recent mortgage rates at 4.2% and 3.31% respectively. The payment is $433.15 less on the 30 year term but the interest rate being charged is higher.  The total interest paid by the borrower if each of the loans was retired would be almost three times more for the 30 year term.

Another interesting thing about the 15 years mortgage is that more of the payment is going to principal than interest from the very first payment.  It would take over 13 years on the 30 year mortgage for the principal to exceed the interest allocation.

Some people might suggest getting a 30 year loan and making the payments as if they were on a 15 year loan.  That would certainly accelerate amortization and save interest. The real challenge is the discipline to actually make the payments on a consistent basis if you don’t have to.  Many experts cite that one of the benefits of home ownership is a forced savings that occurs due to the amortization that is not necessarily done by renters.

Originally Posted at: Lafayette Real Estate News

Make Good Offers Better

It’s disappointing, frustrating and sometimes, discouraging when you lose a home you want to buy.

One of the hardest lessons for today’s buyers is that writing an offer doesn’t mean that you’ll get the home or even a counter-offer.  The low inventory affecting many of the housing markets requires a different strategy to give you the best chance to get the home you want.

1. Make your best offer initially; you may not get a chance to accept a counter.
2. Submit a written pre-approval letter from the lender.
3. Increase earnest money above what is considered normal.
4. Make a larger down payment.
5. Eliminate unnecessary contingencies.
6. Don’t ask for personal property not included in the listing agreement.
7. Pay your own customary closing costs.
8. Shorten the inspection period.
9. Buy the home “as is” subject to inspections which still allows you to get your earnest money back if the inspections are unacceptable but doesn’t require the seller to make repairs.
10. Write the seller a hand-written, personal letter telling them why you want their home; include a picture of your family.
11. Offer to use the seller’s or listing agent’s preferred title company.
12. If you can pay cash, do so and arrange financing after closing.  Be prepared to show proof of available funds.
13. Schedule the closing as soon as possible but let the seller know you can be flexible.
14. Once you decide on a home, act with expedience.
15. Ask your real estate professional if they have any other suggestions.

Think of making an offer like applying for a job. You want to make your best impression and show why you are the best choice.  You won’t always know that there are multiple offers.  Approach the process like the competition is doing their best to get the home.

Originally Posted at: Lafayette Real Estate News

 

 

Another Source for a Down Payment

Most taxpayers know that they will pay a 10% penalty if they withdraw funds from their IRA before they turn 59.5 years old.  There is an exception for first-time home buyers that allows a penalty-free withdrawal of up to $10,000 per person if they haven’t owned a home in the previous two years.

This would allow a married couple who each have an IRA to withdraw a lifetime maximum of $10,000 each, penalty-free for a home purchase.

In many cases, the money would be used for a down payment or closing costs.   However, some buyers might consider this source to increase their down payment so they could qualify for a loan without mortgage insurance.

If the taxpayer qualifies for the penalty-free withdrawal, there may still be taxes due.  Contributions to traditional IRAs are made with before-tax dollars and the tax is paid when the funds are withdrawn.  Since Roth IRAs are made with after-tax dollars, there is no tax due when the funds are withdrawn.

Another interesting fact about this provision is that the taxpayer making the withdrawal can help a qualified relative which includes children, grandchildren, parents and grandparents.

Homebuyers who are considering using IRA funds for a home purchase should get expert advice from their tax professional concerning their individual situation.

Originally Posted at: Lafayette Real Estate News