Who Does A Realtor Represent? The Buyer Or The Seller?

 

Good question. Do you know the answer? 

So you have been thinking about buying a new home. You want more room, you have your stuff crammed into every nook and cranny you can find and you come to the realization that you just simply need more space. Or, your kids have flown the nest and the house is cavernous at this point with rooms you really don’t use anymore and it is just more than you want to maintain at this stage in your life.

You decide to drive around a neighborhood you really like and see a home that looks good with a sign in the yard. You call the number on the sign. What you need to understand is that the Realtor you have called represents the SELLER and their main responsibility is to look out for the sellers (their clients) best interest and they will negotiate on the sellers behalf to get as close as possible to the sellers asking price. So remember, the seller’s agent works for the seller, NOT the buyer.

There are times when a seller’s agent can work with a buyer too. In this case, the selling agent becomes what is called a dual agent. Some states allow dual agency and some do not. Ohio IS a state that allows dual agency. However, in a dual agent situation the dual agency MUST be disclosed. There is a form called an Agency Disclosure Statement that, by law, must be completed in every real estate transaction. It is on this form that the agent’s role in the transaction is clearly defined and you are required to sign the form to acknowledge that you understand who the agent(s) represent in the transaction. You also need to know that in a dual agent situation, the agent CAN NOTnegotiate on behalf of either party nor can they divulge any information what so ever to either party without the permission of that party. They, in effect, become the conduit between the seller and the buyer. The buyer makes an offer and the dual agent presents that offer to the seller and then presents any counter offer the seller decides upon back to the buyer and so on until all aspects of the transaction are agreed upon.

When you are the buyer and you have found an agent you really like and want to work with, it is a good idea to sign a Buyer Agency Agreement with that agent and I say this for a couple of reasons. It lets the agent know that you are serious about buying a home. It lets them know that all the time and effort they are putting into looking for a home for you is wisely spent because they know it is information you really want and appreciate during your home search. It also gives you peace of mind knowing your agent works for YOU. When your agent is scouring listings with your must haves and needs in mind you know they are doing so on your behalf and no one else's. When your agent speaks with a selling agent about a home you are interested in, they are advocating for YOU. Lets get started and get Pre-Approved NOW! Click here!

Housing Hoedown

After rising by 28% in 2012 and 18% in 2013, the 923,000 housing starts in 2013 were the sixth lowest amount since record keeping began in 1959, with only the prior five years being worse. As for single-family starts, despite having risen by 24% in 2012 and 15% in 2013, they came in at 618,000, the fifth worst year on record, with only the prior four years being worse.

Don't get me wrong! Positive numbers are positive but what is the real truth? If the United States population grows exponential since 1959, one would think that the Housing market would too. Population in 1959 was 177m and 2013 was 315m. That is 177% growth! Was the opportunity today they same as 1959? Was the Mortgage Industry softer? I have taken numerous application over the last year and less and less have money to put down on a home. When I ask, "How much do you have to put down?", many times the answer is nothing! When I purchased my first home my wife and I put 20% down. We thought that was what you did. In today's world, people are strugling to put 3.5%, the FHA minimum which is less then the 5% for a Conventional loan.

Just wondering what the underlying truth really is. For assistance in purchasing a home, please call me at 937-550-6530.

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3 Questions to Ask Before Buying a Home

 

If you are thinking about purchasing a home right now, you are surely getting a lot of advice. Though your friends and family have your best interests at heart, they may not be fully aware of your needs and what is currently happening in real estate. Let’s look at whether or not now is actually a good time for you to buy a home. 

 There are three questions you should ask before purchasing in today’s market:

1. Why am I buying a home in the first place?

This truly is the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with finances. A study by the Joint Center for Housing Studies at Harvard University reveals that the four major reasons people buy a home have nothing to do with money:

• A good place to raise children and for them to get a good education
• A place where you and your family feel safe
• More space for you and your family
• Control of the space

What non-financial benefits will you and your family derive from owning a home? The answer to that question should be the biggest reason you decide to purchase or not.

2. Where are home values headed?

When looking at future housing values, we like the Home Price Expectation Survey. Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts and investment & market strategists about where prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.
Here is what the experts projected in the latest survey:

• Home values will appreciate by 4.3% in 2014.
• The cumulative appreciation will be 28% by 2018.
• Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of over 16.8% by 2018.

3. Where are mortgage interest rates headed?

A buyer must be concerned about more than just prices. The ‘long term cost’ of a home can be dramatically impacted by an increase in mortgage rates.
The Mortgage Bankers Association (MBA), the National Association of Realtors, Fannie Mae and Freddie Mac have all projected that mortgage interest rates will increase by approximately one full percentage over the next twelve months.

Bottom Line

Only you and your family can know for certain the right time to purchase a home. Answering these questions will help you make that decision. Need to know where to start? Click here to get started!

Springboro Branch

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Take Time To Think About What You Want Before You Start Shopping For A Home

Why is looking at homes before you’ve thought about what you want to buy dangerous? In this post I talk about the pitfalls of home shopping prior to taking the big picture into consideration.

It starts innocently enough... you pass a house in a neighborhood you like, you hear someone is selling their home, you happen to look up home prices online. Before you know it, you’re knee-deep in home shopping and open house visits. This can actually be exceedingly dangerous to your financial future. Falling in love with a home before you actually know what you want in a home is risky. To avoid the “buy first, think later” syndrome that burdens family finances, marriages, and work life, ask yourself these important questions:

• 1. How much do we want to spend each month on home expenses? There’s a tendency for people who shop first to try and “make the math work” on purchasing a home. Often this leads to stretching the home budget and ignoring crucial expenses such as maintenance and property taxes in order to “make the mortgage.” Determine a comfortable, conservative range for home expenses first.

• 2. Which neighborhoods make sense from multiple angles? You may love a neighborhood for its leafy streets and family-friendly atmosphere, but what if it adds thirty minutes to your commute? Are the schools good? What are the crime stats like? What’s the walkability score? Don’t view a neighborhood with rose-colored glasses based on a single quality you like.

• 3. What’s a priority and what’s a nice extra? You may think you want extra bedrooms for guests and a home office, but which one is more important? Rank the must haves against the “nice to haves.”

• 4. What’s our long-term ownership picture look like? Are you settling in for ten years, or do you suspect you’ll need to move in four? While you can’t predict the future, you can make some estimates. Those estimates will help you understand how much home you should buy, what kind of down-payment you’ll want to have, and what the picture might look like in terms of renovations.
• 5. When can you move vs. when would you like to move?Rental leases, selling your current home, and job and schooling factors all impact the timeline for a purchase. Wrap your head around the pragmatic timeline as best you can.

I’m more than happy to help you think these through. Contact me for a Pre-Approval and help with answering those 5 questions. Click here to get Pre-Approved!