Although you should always be honest in nany real estate transaction - by saying the wrong thing, or a simple “slip of the tongue”, could cost you dearly.
You will need to choose your words carefully.
Decide how much information you are willing to give without revealing too much, or misleading, or deceiving the real estate agent or the homebuyer.
Asssuming you've checked your credit rating, found a suitable mortgage lender, been pre-qualified for a mortgage loan and started searching the MLS listings - what next?
Well, perhaps even before tackling the MLS listings you might want to find a qualified real estate agent. Start interviewing suitable candidates and decide whether you want to handle things yourself or use the services of a real estate agent.
A good real estate agent will have a thorough knowledge of the local area and will know what is available and what properties are likely to sell for. It is likely that a good real estate agent will be able to locate a home more quickly than if you searched on your own.
The other advantage of using a real estate agent is that they will understand all the paperwork and procedures involved in buying a home. The real estate agent can direct you in filling out legal documents, although if you have bought and sold properties before, you will probably know what's involved. The main thing is to be thorough, seek professional legal advice with contracts and to avoid falling into real estate traps (or legal traps).
Keep searching the MLS real estate listings yourself as it will improve your knowledge of the market and what's available. However, keep in mind that a real estate agent will often get notifications of homes for sale before those homes hit the MLS real estate listings. You could get a head start on newly listed properties before other buyers even know they are for sale.
More definitions for commonly used real estate terms and mortgage terms:
Legal description
A specific way of identifying and locating a piece of real estate that is acceptable to a court of law.
Lien
A legal claim against a piece of property or asset which is used to secure a loan and which must be paid when the property is sold. Liens can be filed by unpaid contractors or other debtors in a legal process so that they will be paid when a property is sold.
A claim can hold against an asset until all the obligations to the creditor are cleared (a general lien), or just until the obligations against that particular assets are cleared (a particular lien).
Listing
A property for sale by a Real Estate Brokerage and Agent.
Loan Origination Fee
A charge imposed by the lender, payable at closing, for processing the loan.
Lock-in
A agreement by a lender guaranteeing a specified interest rate for a specified period of time. Lock-ins have specific expiration dates, such as 30, 60 or 90 days in the future. Lock-ins are also refered to as a rate lock.
A lock-in can be a good option if interest rates are rising, but not so good if interest rates are falling.
LTV (Loan to Value)
The ratio of the amount of the mortgage as a percentage of the value of the property.
Both the real estate agent and the homebuyer know that your level of motivation will be the driving force in the home sale. They will want you to reveal how urgent the deal is and how negotiable and flexible you are with the sale of your home.
Are you desperate and willing to sell your home at any price?
Have you already made a conditional offer on another home?
Are you relocating to start a new job in a new town?
Have your family circumstances changed?
Those are the types of questions that can reveal how motivated (or desperate) you are to sell your home. They can have a big influence on the final outcome in terms of the conditions of sale and the negotiated price for your home.
That’s why it is really important to decide exactly what you are going to tell a real estate agent or a potential homebuyer. Decide exactly how motivated you are to sell, before you put your home on the market. Think of how you are going to answer each question before it gets asked.
The MLS real estate listings provide photos of homes for sale along with the listing agents' names and contact details. You can use your own agent.
When using MLS listings you will be able to focus your search criteria around your buying price range, the location you want, the number of bedrooms and bathrooms you need, and other desired features like pools, garaging, gardens, heating etc.
When you find an suitable property in the MLS listings, contact your real estate agent, or the one shown in the MLS listing, and he or she will do the rest. It's the real estate agents job to do the legwork... not yours.
When buying a home do things in the right order. Before searching the MLS real estate listings determined your credit rating and find a suitable mortgage lender. Shop around and compare rates and terms. There are numerous mortgage lenders listed in phone books, directories and on the Internet, so you do have a choice.
The main thing to remember is that you stand a much better chance of securing the home you want when you pre-qualify for your loan. So, check your credit rating, find a suitable mortgage lender, get pre-qualified and then start searching the MLS real estate listings.
If deep down you don’t expect your house to sell, then it might be a sign that you are just not prepared enough (or motivated enough) to make the sale happen.
And...if you don’t feel confident enough to sell your home yourself, then you may be better off facing reality and listing your home for sale with a real estate agent.
Thousands of people DO successfully sell their own homes (fsbo), but it does require a commitment and careful planning. If you’re not fully prepared to sell your house yourself... don’t even bother trying. Start interviewing real estate agents who could list your home for sale.
Yes, there are options available where someone with a poor credit history and a small down-payment could buy a house. Someone in this situation could possibly be considered for one of the federal mortgage schemes that are available.
One of the HUD funded housing counseling agencies would be a good place to contact for discussing the options. There may also be local government homeownership schemes depending on where the property is located.
Remember, if in doubt, always seek professional legal and financial advice when buying or selling real estate, or when arranging mortgages or loans. The signing of legally binding documents and contracts should always be taken seriously.
Although, there are other things you will need to consider when buying a property, these are some of the important points that need serious consideration:
How much do you really want the home? Are you emotionally attached to buying it?
It is usually advisable to arrange for a professional home inspection either before or shortly after you make your offer. The offer could be subject to the findings of the inspection.
How does the asking price compare with prices of similar homes in the neighborhood? The closer you are to the asking price, the more likely your offer will be accepted. If other buyers are competing to buy the property, are you prepared to increase your offer and perhaps even offer above the asking price? Again, this comes back to how much you really want the property and how much you can afford.
How long has the home been on the market? If it's been for sale for a while, then why has it not sold. Is the seller asking too much? Is there something wrong with the property? If the property has been on the market for some time without selling, then maybe the seller would accept a lower offer.
Is the property in good condition, or money need to be spent to bring the property to the standard or style you want?
How much mortgage finance will be required to purchase the property? Will you be able to meet the mortgage repayments and interest payments on the property?
Have you got the appropriate legal advice from a real estate attorney? Is the real estate contract worded correctly with the appropiate clauses included?
In most situations a real estate agent is an independent sales worker providing his or her contracted professional services to a licensed real estate broker. In return, the broker pays the real estate agent a portion of the real estate sales commission earned from each property that the real estate agent sells.
real estate brokers supervise real estate agents who may have many of the same job duties.
Before even considering listing with a MLS real estate listings service, you will want to have a good idea of the value of your current home and the value of the homes for sale in your area. It is important to track real estate values for individual properties or entire neighborhoods. Find out what to expect from the sale of your home first. Then you'll know exactly what price range to look for in the MLS listings.
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