Use Your Tools Wisely

Many real estate professionals and organizations offer a plethora of real estate tools and listings on their websites under the guise that they are there to help a potential buyer or seller. When discussing various aspects of the home buying process with my clients, I have found that many of these these tools are actually detrimental to potential buyers. These tools over-simplify the process and actually prevent home buyers from having a full understanding of what to expect. Listed below are a few of the more deceptive real estate tools you may find during your search.

Mortgage Calculator

My least favorite tool offered on real estate websites is the mortgage calculator. There are several expenses homeowners typically incur that these calculators simply do not take into account. As such, the recommended price or payment you receive from the calculator could be vastly different from what you can truly afford or are comfortable with.

Property taxes, condo or home owner´s association fees and insurance are just a few of the possible expenses that could dramatically affect the amount of home you can afford. Speaking with a real estate agent or mortgage professional will give you a much more accurate understanding of the various costs that may be involved. This will ensure you are able to effectively create a realistic and comfortable budget for your home purchase.

Property Listings

While browsing low resolution images of the houses available in a neighborhood is sometimes fun, it´s typically not very informative. Internet home listings purposefully conceal information as they are intended to make the home buyer contact the agent to find out more information. These listings are generally provided as a means to get information from prospective buyers.

Some websites imply that this information is only available through them. Others attempt to collect contact information from you under the guise that they need your name to present the information. The truth is, they are trying to solicit you for business while pretending to offer you free information.

The unfortunate truth is, these listings rarely provide buyers with enough information. Many time there are hidden facts that only real estate agents can see. These listings are rarely complete and do not provide the true level of detail a prospective buyer would need to make an informed decision.

Discount Real Estate Companies

Some companies offer discount real estate services. Though these services may be suitable for experienced buyers and sellers, they may not be right for some. Typically these companies are able to offer their services at a lower commission because they don´t offer a full array of services.

Much like everything else in life, you get what you pay for. If you pay a real estate professional half of a typical commission, they must work with twice as many clients to generate a suitable income. Because of this, that agent can only spend half as much time with each individual client. Again, if you are a seasoned real estate buyer or seller, you may consider this adequate service for your needs. However, if you prefer to work with someone who will commit their undivided time and attention to you, you may prefer to work with a full service agent.

Short Sales & Foreclosures

As the number of foreclosures in the United States approaches an all-time high, savvy home shoppers can take advantage of the current market to find the home they desire at a reduced price.

The misconception with these types of sales, however, is that they are as simple and convenient as a typical home sale. The truth is, these types of sales can take twice as long (or more) than a traditional home sale. Instead of dealing with a single seller, you are dealing with multiple entities including the lender, the lender´s agent, the loss mitigation department, and so on. Because the nature of these sales differs from a traditional sale, it is very important you work with an agent that is experienced and well-versed in the short sale and foreclosure process. Lenders and other such entities typically require different disclosures, addenda and documents when finalizing their sale. They also usually have different financing requirements and may not accept certain types of contingencies. You need an agent who can guide you through the different requirements to make the transition as smooth and timely as possible.

When shopping foreclosed or short sale properties it is important to consider the extended time frame during your process. Buyers in need of immediate housing may not be interested in the prolonged process of buying a bank owned property or short sale.

"Part-time" Professionals

Real estate laws and regulations fluctuate often, particularly in the current climate when there has been a great deal of fraud, shoddy contracts and general incompetence. It is advisable to work with an active, full-time agent who is well acquainted with current real estate laws and procedures.