Vol. V Issue 1 January 2011
From The Editor
Happy New Year to you, your friends, and family! May you be blessed with a healthy and prosperous 2011!
In the last issue of Real Estate News You Can Use we talked about the three mistakes that Sellers ought to avoid. In this first issue for 2011 we’ll focus on three mistakes Buyers ought to avoid to help maximize their buying power. When Buyers pay attention to these three issues they will be in the Green!
This issue marks the beginning of the 5th year of Real Estate News You Can Use, the first agent written real estate e-letter in New Orleans. Its purpose is to help Buyers and Sellers know more about the Buying and Selling process to maximize their dollars spent and gained. My hope is that you will save some of your hard earned money because you learned something helpful in this news letter.
If you have a question, or need assistance, with buying or listing a property, send me an email at:middieomalley@yahoo.com.
Or call me at 504-579-4717, and I’ll be happy to assist.
Buyers! Three Costly Mistakes To Avoid!
My friend Dennis Vicars from Southwest Mortgage sent item #1 to me today. It’s so important that we avoid fear because it stops us from doing things we should do when the opportunity is ripe. I’ve added items #2 and #3 because they are equally important. Buyers, if you paid attention to just these three points, you will have a much better buying experience and maximize your buying power. And that what it’s all about!
#1 Don’t Fear Rising Mortgage Rates
The most invoked argument against higher mortgage rates is that they lower the home affordability index. It’s a legitimate argument, to be sure, in that mortgage interest is a significant cost of home ownership.
But there are other factors to consider: Rising rates spur people to action, something we’ve been saying for the past six months that is showing some validity. Campbell/Inside Mortgage Finance surveyed 3,000 real estate agents nationwide on homebuyer activity and found a jump in first-time homebuyer purchases in November over October. The principal reason for the jump was nervousness over rates going higher still, which motivated many fence sitters to act.
It is also worth noting – again – that higher interest rates reflect an improving economy and greater economic activity, which are, in turn, indicative of higher employment and higher wage rates. So even though the interest-expense component of the home affordability index might rise, it will be offset by more employment and rising incomes, which means more people can afford a higher-cost home. That’s not such a bad thing.
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#2 Hire an ABR Certified Agent With Negotiating Skills
In all too many instances Buyers are not aware of what an ABR® certified agent can do for them. And many Buyers don’t even know they exist!! Here’s just a few reasons why a Buyer benefits from hiring an ABR® certified agent…They truly focus on Buyers needs, they are trained to write better contracts, they can direct buyers to the best lenders, and they know what to do when a problem comes up. The hot set up is when you hire an ABR® certified agent who has also has negotiating skills. Think about this combination of skills before you sign up an agent who can’t make these claims. It’s your money, why not make the best use of it? For more info about ABR® agents, take a look at this link: http://rebac.net/abr_designation.cfm Don’t forget to ask any potential agent, “Do you hold an ABR® certification, and have you been to negotiating school. Put them right on the spot, ask them those questions. Your money deserves that you do!
There are a whole range of services that ABR certified agents can offer in a much better fashion than your average real estate agent. And less than 15% of all agents, nation wide hold this rating! It’s all about an agent making an effort to offer better service to their valued clients. If an agent knows more, they can do more, and if they can do more for you, they can save you money! Hire an advocate, someone who stands up for you, someone who knows what they are doing. Buyers, hire yourself and ABR certified agent with negotiating skills! You will be delighted you did!
#3
Find Out About The Money Before You Go Shopping!
An ABR certified agent will make sure that you go to a lender before you begin looking for a home, but if you don’t hire an ABR® certified agent you might be on your own and perhaps you’ll want to go shopping before you find out about how much you can afford. Bad idea.
Get thee to a lender before you look at homes! This is incredibly important because if you call an agent about a home minus a pre-qualification or pre-approval letter from a lender, professionals will not take you seriously. Further, there are many sellers who will not entertain an offer minus one of these letters attached to an offer!
Lastly, if you don’t know how much you can spend and go looking for a home, you just might fall in love with one of them. But when you find out that you can’t afford that home it causes nothing but heartache! First, Find Out About The Money Before You Go Shopping! Your ABR® certified agent can help put you in contact with a good and ethical lender.