Oral agreements will not stick

If you are either buying or selling a house and you have a great handshake deal, do not think that there is any guarantee. I have seen many people say "well my word is good enough" well your word MAY BE good enough but as far as money goes many people will reneg on a deal if they think that they are not getting the best one.

Always have a deal signed by both properties and really if you are not using a realtor at the very least get a real estate contract at the local Staples or Office Depot to get a good contract signed and head straight oover to a lawyer to have everything validated.

6 more home buyer tips

While buying a home is without a doubt an exciting endeavor in some cases home buyers overlook things until after it’s too late, creating a sense of buyer’s remorse that can be time consuming and expensive to correct. By learning about the most common and biggest mistakes, other buyers have made; however, you can make sure you do not fall into an expensive trap when you set about purchasing your next home.

1. Some buyers, particularly first time home buyers, have a tendency to change their financial status prior to closing on the sale of their home. It is always important to keep in mind that just because you qualified for a mortgage several weeks ago you very well might not if you make any type of major purchase just before closing. This means you should avoid buying anything on credit after you have made your loan application. In particular, avoid purchasing expensive major items such as electronics or computers, furniture for the new home, gardening equipment, refrigerators and other appliances and especially automobiles. Even a small change in your credit ratio could cause your loan application to be denied.

2. The second most common mistake made by many home buyers is simply purchasing the wrong home. This is because home buyers can frequently get so caught up in the excitement of the buying process or the ‘look’ of a home that they may fail to get proper consideration to what they really need in a home. Overlooking critical features in a home can easily result in purchasing a home that becomes difficult to live in and with later on.

3. One of the most common mistakes buyers make is withholding information from their real estate agents and real estate lawyers. Reasons for this tend to include believing that some information simply isn’t important enough to mention as well as a fear of how they might come across to others if they do bring up concerns. It is important to keep in mind when you are purchasing a home that the professionals that you work with are just that-they are experienced professionals who have handled a number of transaction. There is a good chance that there isn’t much they haven’t already heard. Remember that their job is to represent your best interests. They cannot do that if they do not have all of the information. The best way to bring about a smooth transaction is for everyone to be up front.

4. When considering the purchase of a home it is also critically important to consider how much house you can realistically afford. Remember that just because you can qualify to purchase a home in a particular price range doesn’t necessarily mean you can really afford. Besides that mortgage payment you will also have other expenses including insurance, home maintenance and possibly home owner’s or association dues as well.

5. Buying a home without a professional inspection is also another critical mistake. If you are financing the purchase of your home a professional inspection is usually required; however, if you are not financing the purchase or if the seller has agreed to finance it you won’t be required to have a professional inspection completed. Even if this is the case, it is always recommended to have an inspection completed anyway by a professional who might spot something you overlooked. This gives you the opportunity to ask the seller to make necessary repairs as well as possibly renegotiate terms of the sale as well.

6. Buyers also frequently make the mistake of simply not looking at enough homes. This results in not knowing enough about what’s currently on the market; which can cause you to miss out on a better home. Only after you have looked at several homes should you begin narrowing it down. At that point it is important to re-visit each home at least once and view them again with fresh eyes. You may find that a home you previously thought was ideal has hidden problems. Taking a look at several homes allows you to make a much better educated decision and ultimately find a home that is best suited for you and your needs. A compulsive purchase while shopping around for a home could end up being not only one that you will regret but also extremely expensive as well.

By taking the time to learn from the mistakes of others you can avoid making some of the most common errors when you begin the home purchasing process.

Andrew owns a Home Buying Guide website that provides many home buying tips. You can visit his website at: http://www.buy-and-sell-house-fast.com/home-buying-guide.shtml

Buying seized properties

I have always been intrigued by the money that people can make with all of those no money down type deals but as we all know they are incredibly hard to come by. The trouble with no money down is that there are not that many people out there that are willing to sell you their house far enough below market value that you are taking over the mortgage without having to put money into the deal.

One other option is to buy property that has been seized by banks and other lenders. There is an active market for seized property and one of the maxims that you need to remember is that banks and other lenders are not in the real estate sales business so they are not as savvy at selling and often lose some money on the deal just to get our of property ownership.

I have run across a website that has lots of seized real estate properties. The trouble is that there is a cost for access to the site. Seized Real Estate.com has a lifetime membership of $39.95 and if you know anything about my attitude on buying memberships then you know that I think that any way that you can automate your systems for cheap is a great investment of your time and money.

So check out this site if you are looking at finding cheap real estate and stay aware of the fact that lending institutions hate to be holing onto properties for any length of time.

8 home sellers tips from the National Association of Realtors

Sure they have a vested interest in having you use a Realtor but the National Association of Realtors have these great tips to think about to get you home sold. Most of them are good tips and a few are to use a Realtor.

1. Know your home’s value.
Beware of companies offering to buy your home to save you the “hassle” of putting it on the market – these companies often profit at the seller’s expense. Ask several Realtors® in your area for a comparative market analysis, or CMA. These real estate professionals will analyze recent sales and market conditions to provide a realistic assessment of your home’s value, and can suggest strategies for the best sale.

2. Protect yourself and your home.
Don’t allow random passersby into your home unescorted. A serious buyer will be working with a real estate professional or should be willing to contact your agent to schedule an appointment. Lock valuables away before an open house – the agent on site will be monitoring traffic, but it’s impossible to be everywhere at all times.

3. Understand the purchase contract.
A Realtor can help evaluate purchase offers and advise you on counteroffers and contract acceptance. It is important to know how contingencies such as appraisal, financing and inspections will affect the transaction, and understand their implications for you as the seller. Remember, a high price offer is worthless if the buyer never makes it to the settlement table.

4. Hire the right real estate professional for the job.
Relying on the experience of a real estate agent makes financial sense. An NAR survey of recent home buyers and sellers found that the median home price for sellers who use a real estate agent is 16 percent higher than a home sold directly by an owner; $230,000 vs. $198,200.

NAR encourages innovation and competition, and recommends that home sellers interview at least three Realtors® to evaluate their qualifications and fit. Examine each professional’s level of experience and service, ask for referrals and talk to past clients. Don’t make an agent’s commission the sole deciding factor – you wouldn’t put your life in the hands of a doctor because he or she had the lowest fee; why would you want to do that with your largest financial investment?

HOW TO CHOOSE A REAL ESTATE PROFESSIONAL
The recent real estate boom has encouraged an explosion of real estate licensees. But getting a license and succeeding as a professional in the industry are two very different things. To find a true real estate professional – one who will represent your interests and provide valuable insight and advice regarding what is likely your biggest investment – follow these steps.

5. Do your research.
Drive around your neighborhood or the area you’d like to live in, and make note of the active real estate agents in the area. Call local brokerages for agent recommendations, and specify whether you are buying or selling a home.

6. Ask trusted friends and relatives for referrals.
According to the 2005 National Association of Realtors® Profile of Home Buyers and Sellers, 44 percent of all recent buyers were referred to their real estate agent through a friend, neighbor, or relative.

7. Interview at least three agents.
Ask each about their business approach and philosophy (do they offer full service, or will you have to assume some responsibilities in the transaction); experience; designations and advanced training; and referral network (home inspectors, lenders, contractors, etc.). Home sellers should also ask about the number of homes sold in the past year, length of time on market, average sales price in relation to asking price, and the agent’s marketing plan.

8. Make sure your agent is a Realtor.
A Realtor is a licensed real estate professional who is a member of the National Association of Realtors and subscribes to its strict Code of Ethics, which obligates Realtors® to be honest with all parties involved in a transaction, whether it is the buyer, seller, or cooperating agent.

Through membership in NAR’s affiliated institutes, societies, and councils, Realtors® devote themselves to continuous study of the most recent trends in their fields to stay abreast of industry developments in their specialized areas and better address industry issues.

A real estate licensee has passed an exam; Realtors are real professionals.