Broker Tips and FAQ's

What is the difference between a real estate broker and a real estate sales person?

The difference between a real estate broker and a real estate sales person is that a salesperson must work for a broker and cannot legally represent a buyer or seller of property.

What is the difference between a real estate broker and a real estate agent?

People often refer to real estate agents, or simply "agents", meaning real estate brokers. When you interview a real estate professional, ask if he/she is a salesperson or a broker. You may not have to pay for your credit reports! You are eligible to receive a Personal Credit Report at no charge or a reduced fee if:

What/Who is a REALTOR®?

A REALTOR® is a real estate professional who is a member of the National Association of REALTORS.

If I employ a real estate broker as a buyer’s agent, will I have to pay her for her services?

No! The seller pays the commissions in a real estate transaction in most cases.

How can I find out what home are selling for in the area that I am interested in?

Ask your prospective real estate agent if she can provide you with comparative market analysis of recent sales in your neighborhood. This should contain listing and sales prices for recently sold homes: listing prices: listing dates of homes currently for sale: detailed property descriptions (such as square footage and numbers of bedrooms and baths): suggested asking prices: information on the local housing market: advertising plans: a discussion of various listing agreements: and an analysis of sale proceeds at various price points and commission levels.

How do I find out what home in my area sold for if I do not have access to an agent?

If you do not have an real estate agent, you can contact your local county tax assessor to find out what prices, homes have sold for in your area. The county tax assessor, assess the amount of taxes to be assessed on a property, by multiplying the property tax rate, times the price that the home sold for. Often real estate broker will tell you how much homes in your area were listed for and not actually what they sold for, so make sure you are aware of this important distinction between asking price and sales price.

When I view the MLS, why are prices posted as a range?

I am not sure that there is a good answer to this question. Agents will often tell you that the home is listed between, for example, between $800,000 and $900,000, and that the price range is to account for the terms of the buyers financing. But this explaination is weak. It is often good strategy to be agressive about the asking price, and try to find the sellers bottom price. Much of the money you will make on your real estate transaction comes down to negotiating the properties sale price.

How long do listing agreements usually last?

Listing agreement usually last 60 to 90 days and most consumer experts agree that a three-month listing period, or less, is best. You can renew or extend the listing agreement at that time.

What services will my listing broker perform?

Among many services, your real estate agent will often conduct open houses, help with all of the necessary paperwork and escrow proceedings, advise you on your rights in the real estate transaction, negotiate price and terms of your real estate transaction, ect. The details of their responsibilities will be explained in the contract that you will sign when you decide to have an agent represent you. When you are interviewing prospective agents, ask them for a copy of their listing contract. Often Brokers will user a typical employment contract provided by their state's department of real estate.

I have narrowed my choices down to three agents, but I am not sure how to choose wich agent to have represent me?

Once you have narrowed down your choices to a few agents, you should check the agents' certification with your state's Department of Real Estate, and make sure their license is in good standing. Many states provide this information online.

What certifications and experience should I check to see that prospective brokers have?

Find out how many years of education and experience the agents have and whether or not the broker is realtor and/or a Realtor®. Brokers have more stringent licensing requirements and responsibilities. Realtors are voluntary members of the National Association of Realtors, a trade group. Agents that have worked full time in your area, often have the best knowledge of local real estate prices.

Should I ask agents if I can contact their previous customers?

It is very valuable if you are able to contact the agent’s previous customers. Ask if he/she can provide you with names and phone numbers of past clients who have agreed to be references.

Who is a Seller's Agent?

A real estate professional becomes a Seller's Agent by entering into a listing agreement to represent the seller's interests. The Seller's Agent can provide information to assist the buyer, but they must place the interests of the seller first.

What topics should I discuss with the agents, when I interview her?

The real estate sales professionals you interview should cover the following items during the interview: Pricing your home, increasing your home's value, marketing strengths and an overview of the local standard Contract For Sale along with typical addenda and a copy for your review.

Who is a Buyer's Agent?

A real estate professional becomes the Buyer's Agent by entering into an agreement to represent the buyer. A Buyer's Agent can assist the seller, but does not represent the seller. The Buyer's Agent must place the interests of the buyer first. The types of inspections you will want to have done on the property you select

Who is a Dual Agent?

Dual agency occurs when a real estate professional represents both the seller and the buyer. It can also occur when the listing or seller's agent works for the same real estate firm as the buyer's agent. In most states, the buyer, the seller, and the agent must agree in writing for the creation of dual agency. The dual agent is required to treat the buyer and seller honestly and impartially. In dual agency, the professional's duties are more limited and there is potential for conflict of interest.

 

Credit Tips and FAQs

Establish checking and savings accounts.

Lenders see these accounts as signs of stability. Opening checking and savings account is also one of the few things you can do as a minor to start building a financial history.

How do I get the best possible credit score?

To get the best credit score, you need a mix of different credit types including revolving accounts (credit cards, lines of credit) and installment accounts (auto loans, personal loans, mortgages).

What are the two most important things that affect my credit?

Whether you pay your bills on time and how much of your available credit you actually use.

How much of my available credit should I use?

You don't want to max out any of your credit cards, or even get close. Keeping your credit use to less than 30% of your credit limits will help you get the best possible credit score.

Do I need to have credit cards to have a good credit score?

You don't need to carry a balance on a credit card to have a good credit score. Paying your bill off in full is one of the best ways to build your credit. Your ability to pay your credit card debt responsibly will be available for you to view on your credit reports. Opening many credit accounts in a short period of time can make you look like a risky customer. You should probably keep your credit card usage between three and five.

How can I get good credit quickly?

One of the fastest ways to establish a credit history is by being added to a credit card as an authorized or joint user or by getting someone to co-sign a loan with you. Having a co-signer can allow you to qualify for credit card limits and loans you might not otherwise get. The loan will show up on your credit report and, if you pay it off responsibly, will help boost your credit score. You may not be able to piggyback of someone's credit. Some credit issuers won't report authorized users to the credit bureaus, particularly if the user is not married to the original card holder. The person who is adding you as an authorized user should call the issuer and ask how (or if) your status as a user will be reported.

Should I apply for credit while I am a college student?

As a college student, you are more likely to get a credit card than many other people. Lenders are willing to take risks with you that they won't once you graduate.

What should I look for in a credit card?

You should exercise some caution. Look for a card(s) with a low or no application or annual fee and low interest rates. You'll want to screen your card issuer carefully. Some credit companies charge outrageous application or annual fees and punitively high interest rates.

What if I can't get a credit card?

You can apply for a secured credit card, if you can't get a regular credit card. These require you to deposit money with a lender; your credit limit is usually equal to the deposit.

How can a credit union help?

If you are a member of a credit union, you might inquire if they have secured cards. You can also check Bankrate.com to see a list of secured credit card issuers.

What should I look for in a secured card?

Try to find a secured card with no application fee, no annual fee, and that converts to a regular, unsecured credit card after 12 to 18 months of on-time payments.

Does my credit card company send records of my payments to the three credit reporting bureaus?

You want your credit card company to report to all three credit bureaus, so you can quickly build your credit score. If your credit card company only reports to one bureau, then you won’t build your credit score a quickly.

Should I get a finance company card?

Gas companies and department stores that issue charge cards often use finance companies, rather than major banks, to handle the transactions. These cards don't do not have as much power over your credit score as bank cards (Visa, MasterCard, Discover, etc.), but they are usually easier to receive. One or two of these cards is enough. If you get many more, you could case your credit score to go down.

Should I get an installment loan?

To get the best credit score, you need a mix of different credit types including revolving accounts (credit cards, lines of credit) and installment accounts (auto loans, personal loans, mortgages).

How often is my credit updated?

For a credit score to be generated, you have to have had credit for at least six months, with at least one of your accounts updated in the past six months. Using your cards regularly should ensure that your report is updated regularly.

What are some of the mistake that I should look for once I have recieved my credit reports?

Somebody else information could be mixed in with your report, either through a credit bureau mistake or because of identity theft.

How can I help my children build a good credit history?

There are not many things that a minor can do to buid credit, except open a checking account. While you can’t get a credit card in your own name until you are 18, many banks will let minors open an account. A minor can also open a joint account with an adult.

What are the advantages to opening a joint account?

If your mother or father makes you an authorized user of his credit card, his history with that account can be imported to your credit bureau file, giving you an instant credit record. If he has handled the account well, that reflects well on you. But if he hasn't, his mistakes would also become yours. Any late payments or other problems could make it harder for you to get future credit than if you would have established your own history without help.

How will late payment affect my credit score?
If you do not pay your bills on time, you will loose points on your credit score. Set up automatic payments or reminder systems so that you don’t pay any bills late. Paying all your bills off in full is the best way to keep your finances in shape and build your credit at the same time.

Additional Tips and FAQs

Where can I find additional information of housing prices, and where are the affordable markets located? One good source of information is the National Association of Realtors' quarterly report on the median sales price of single-family homes in 147 of the nation's biggest metro areas. The report for the third quarter was released on Nov. 15. (Another is the federal government’s Office of Federal Housing Enterprise Oversight, which measures gains in 265 metro areas).

How can I estimate a selling price for my home, based on price-per-square-foot?
You can calculate the cost per square foot of your home compared to the house selling prices in your area (divide list price by square footage of live-able space). If your house has more features or other desirable qualities, you may want to set a slightly higher house selling price. Your real estate agent or a licensed home appraiser will be able to help you price your home, but it pays off to do your own research.

Do I need a real estate lawyers when I buy a new home?

Even though it's an additional expense, it may be wise to hire a lawyer. An experienced real estate lawyer can help you evaluate complicated offers (those with a variety of conditions), act as an escrow agent to hold the down payment, evaluate complex mortgages and/or leases with options to buy, review contracts and handle your home's closing process. They can also tell you what things, by law, you must disclose to buyers prior to a sale and can also help you avoid inadvertently discriminating against any potential buyers. If you are selling or buying a home with out a real estate agent, you may save a lot of money and problems later on, by consulting a real estate laywer.

What should I do to help market my home?

Un-clutter your home! Remove bikes, garbage cans and parked cars. Think of furniture as
props and the room a stage. Move things around if you have to. Also, take lots of house photos. Keep the interior and the exterior as neat as possible.

Should I have lawn signs?

Lawn signs are one the most important marketing tools for home sellers. They attract attention to your home. Directional signs also help direct buyers to your property, especially if you do not live on a busy street.

Should I have open houses?

Open houses are a good way to attract buyers to your home. Your real estate agent should conduct on or two open houses. Other agents will come to your open house with prospective buyers, and to familiarize themselves with your property.

What repairs should I make before I put my home on the market?

There are many things that you can do to your home to help increase the sales price. And there are also many renovations that you may actually have a negative return on. Consult with your agent. If your home is ready to move in, and does not need any work, you will probably gat a better price.

What should I do to get my home ready?

Once you have your home ready to show to prospective buyers, ask a friend or neighbor to walk through your house like a buyer would. Get their opinion on how it "shows.”

How can the MLS (Multiple Listing Service)

The MLS can help you market your home, particularly to real estate agents who may know of buyers seeking a property like yours. The MLS is a directory used by real estate agents to announce to other agents that they have a home for sale. If a real estate agent finds you a buyer after seeing your home on the MLS, you usually pay that agent a 2.5% to 3% commission, however all commissions are negotiable.

How do sales negotiations work?

When a home buyer makes an offer you usually have three days to decide, cancel or amend the offer. Contract law varies from state to state, but typically a contract has to be delivered to the seller, and he has to sign and return the contract to the prospective buyer , in order to have a valid contract. Your states real estate department can provide you with standard contracts. Read the contracts carefully, and consult with your agent and/or attorney.

Should I make a counter offer?

Negotiating is part of the home selling process and most sales involve counter offers. Review counter offers with your agent and/or attorney.

Does the buyer have a right to have my home inspected?

Standard real estate contracts give the prospective home buyer the right to inspect your property. You might be required to make major repairs to appliances, plumbing, heating and the electrical system, or the buyer may cancel the sale contract. The inspection will also include the property's roof, as well as a termite inspection. In some states, house sellers must provide proof that the home is termite free.

If I am selling my home, should I have an inspection done before I put it on the market?

If you are concerned about how your home will do in an inspection, order an inspection yourself before a potential buyer has one done. You will be able to address the problems before a buyer has an inspection done.

When will the buyer submit his application to the mortgage lender?

Once the inspections are complete, the buyer typically submits his application to a mortgage lender. You will save time in the escrow process if your buyer pre qualifies.

What will the mortgage lender do during escrow?

The mortgage lender will order an appraisal of the home to make sure the buyer is not paying more than the house is worth. The escrow company may also order a surveyor to make sure that the property boundaries are laid out properly. And a title search will be done to determine if there are any liens or encumbrances against your property. Making sure these tasks occur, are the responsibility of the buyer, their agent and/or attorney.

When should I call the utilities to let them know when I will move out of my home?

After a closing date has been agreed to, you should contact your utility providers and advise them of your final billing date.

What will occur on the day of the closing?
On the day of the closing, the home's buyer will do a "walk through" of the property to make sure all agreed repairs are completed and that the home is in the same condition as when the buyer made her offer.

How many days will closing escrow take?

Closings escrow usually takes 30 - 45 days from the date you signed the sales contract.

Who will accompany me at the closing?

Depending on what state you reside in, you may close with an attorney, or with a title company.

What will occur at the closing?

At the closing, all monies will be collected, any existing loans or liens will be paid, the deed will be transferred, and insurance will be issued insuring a free and clear title. The home seller will receive the proceeds from the sale of her home in one to two business days after the closing.

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