Brad's Real Estate Blog

Why you need a Buyer's agent before starting the home buying process.

I am asked this question frequently and there are many articles written about the role of a buyers agent I wanted to write about what I do personally when I represent a buyer in their home finding process and purchase.

I believe there is a real need to explain the role of buyers agency to a prospective home buyer, especially if this is their first purchase.   Below is the timeline during most typical home purchase transactions and what I as a buyers agent do for my buyer clients.   I believe if a potential home buyer understands the benefits buyer agency gives to them then the answer to the question "Do I need a buyers agent?" will be a resounding "Yes, of course!"

First, we set up a meeting (face to face if possible, via phone & email if you are relocating and out of state).   We will discuss your current living arrangements: Are you leasing/renting?  If so, when is your lease up?  Are you able to go month to month on your lease if need be?  (In Arizona homes are available for you to move in to the day of closing, other homes the sellers will need and ask for occupancy after closing.  We will also discuss what happens during that occupancy and how you are compensated for your time without living in it.)

At this meeting we will also discuss general finances, your "comfort" payment versus your pre-approval amount and typical cash needed to start the process. (Good faith deposit money, money required for closing, home inspection fees, etc.)  If you need references to a mortgage lender I will provide you with several so that you may interview them personally and feel confident in the mortgage product that best suits your needs and unique financial picture.

We'll also discuss how property taxes vary with each home and how the total property tax bill will change with new ownership, how it affects your mortgage payment and the ways in which it could possible affect which homes you would be comfortable viewing.

My favorite part of the "get to know you" meeting is having you draw up your wish list, want list and must have list.  This is a wonderful way for all of us to narrow down the homes we view and it is also fun to watch that list change after viewing some homes and the different price ranges. 

When you are finally comfortable we will begin the viewing process.  I will make all the necessary appointments for us to view the homes together, with emphasis put on YOUR schedule making it almost unnecessary for you to have to take time off work to view any homes.

When you have finally found the home that shouts out "This is it!" is when I begin the art of negotiation.  In todays market, especially in Cochise county, the home prices are so varied that a buyer can feel overwhelmed with "What offer would be insulting?" or "Am I offering too much?" By the time I have finished analyzing the area, the recent home sales (sold prices, not asking price!)  the condition of the home and all the variables you will be well educated and able to confidently make an offer on the home.  I will also be "armed" with as much information possible to present to the sellers on your behalf the wisdom and reasoning behind the offer that you have written.

As you can see, this process can be quite lengthy.  Along with all of the above as your buyers agent you will be thoroughly informed as to what to expect during the processing part of your mortgage, the closing process, when to obtain your homeowners insurance, waiting out the appraisal and underwriting, and all that takes place from the time your offer is accepted until the home if finally and officially yours!

Throughout the entire home buying process I am with you as your partner.   As your buyers agent I will be there at your home inspection, follow up with your mortgage lender regularly, answer all of your questions to the best of my ability and above all else, represent YOU throughout the transaction and afterwards.  Yes, I said afterwards.   You do not stop being my concern when the transaction is finished and you are in your new home.  In fact, I love to be invited to the house warming parties!

If you are a considering purchasing a home in Sierra Vista or the Cochise County area please feel free to give me a call and I would be happy to talk to you about the role of a buyers agent and how important I feel we are to protect your interests.

This morning I am reading the latest real esate news as I do every morning before I head out and I see an article called "Dumping the Real-Estate Agent Can Spur Home Sale" by John F. Wasik.  (http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_wasik&sid=apd_.pfBYc6Q)

These types of articles are so full of @%*&!!! Please forgive me, but I am mad as hell and need to speak out. It really bothers me when we are discounted like used car salesman. I don't see these media outlets reccomending people represent themselves in court or to operate on themselves. Real estate is a huge investment and involves in many cases hundreds of thousands of dollars. There's a lot at stake financially when someone buys or sells a home. A good or bad outcome can affect their net worth, as well as their sense well being.

Would you invest in the stock market without advise and educating yourself? Not if your smart and want to see your money again.

Buying or selling a home ranks high on the list of the most stress-provoking events one can experience, up there with the death of a loved one and divorce. Buying or Selling a home is more work than you might think, which is why four out of five homes sold annually in the U.S. are sold through a real estate agent. The consumer is often called upon to make important and difficult choices during the process. There are a lot of factors involved in buying or selling a home. Do you Understanding the Complexities of the Transaction:

• Interest rates could jump unexpectedly. What should you do? How does this effect your deal?
• An inspector might uncover a defect that you were unaware of, what should you do?
• The termite inspection reveals a problem. How do you handle this situation?
• Purchase contracts? Get good faith estimates? Addendums? Contingencies? Do you understand the paperwork you are looking at?
• What about timelines? Inspection periods? Appraisals?
• What about unpaid liens or special assessments?
• How about property disclosures? 
• What about CC&R's? How can they effect a sale? 
• Real estate transactions are governed by federal statutes, as well as state statutory laws. Do you understand these laws?

While there are countless other intricacies that may apply to the typical transaction, the above list alone clearly demonstrates what few outside of the real estate profession realize: that the path to successfully buying or selling real estate today contains numerous steps, many of which are mined with obstacles large enough to cause the transaction to fail. 

We provide a valuable service for our clients and we have fiduciary responsibility to protect our clients. We are professionals who want to provide the best service possible while protecting our clients in one of the most expensive transactions of their lives. This should not be done alone and without effective representation.

OK..... I am glad I got that off my chest.

Brad Snyder, REALTOR

Are you getting ready to buy a home? It can be both a very exciting and a very terrifying experience. The majority of first time homebuyers have so many questions to ask, but they are unsure of who to ask. Who can a first time homebuyer trust and what can they do to insure a smooth homebuying experience? 

The first time homebuyers occupies a very large percentage of the real estate market. In a quickly changing real estate market, rising interest rates and tightened lending guidelines first time homebuyers can be even more confused than ever about buying their first home. The good news for you is that I am going to touch on a few of the common mistakes to avoid when you are buying your first home. I hope these tips provide some assistance with the homebuying process and hopefully help to insure a more enjoyable homebuying experience.

Buying More Home Than You Can Afford -  This is one of the single most common mistakes that a first time homebuyer can make. The lender may approve you for so much of a mortgage that you just had to take advantage of the full pre-approved amount. You and your spouse need to sit down together, before you even begin looking at houses or getting pre-approved by mortgage professionals, and figure out a very detailed and accurate budget. Figure out everything, including vacation money, holiday spending money, investment money, savings account funds, etc. Whatever is left over is the amount that you have left for a monthly mortgage payment. Remember you want to try and be able to maintain a similar lifestyle owning a home as you are living now. A mortgage lender is going to approve you for a mortgage based on how much money you make compared to how much debt you have on your credit report. A mortgage company does not care about how much money you invest each month, how much money you spend on your cell phone bill, how much money you pay a relative for a family member loan, how much your utilities are, how much you need to pay for food each and every month, how many vacations you go on each year, etc... These items do not show up on a credit report and unfortunately are not normally factored into your qualifying ratios. Therefore, you may end up being approved for a mortgage that is much more expensive than you might feel comfortable paying on. Do not get caught in the trap of buying more home than you can afford and live comfortably. Remember, just because you are approved for more does not mean you need to buy a home for this maximum amount!

Buying A Home With Your Heart and Not Your Head - You must be patient when looking to buy your first home. Your first home can be a starter home and does not need to be a "castle." Do not allow yourselves to become to emotionally attached to a home and stretch yourself to thin by buying with your heart. Do not allow yourself to buy a home that has a lot of what you want but little of what you really need. What I mean by this is to not allow yourself to sacrifice a 2nd bathroom even though you have 2 teenage daughters for a hot tub that you want. Be smart about buying your home and make sure it has everything that you need in a home and you can always add what you want in the future.

Not Getting A Home Inspection - While saving the cost of a couple hundred dollars may sound like a good idea when you are realizing how expensive it can be to buy a home, do not get cheap and avoid paying for a home inspection. Especially if the home is a little older, the couple hundred dollars spent on a home inspection can save you thousands and maybe even tens of thousands of dollars or more in the long run. Many first time homebuyers try to "cut corners" in terms of the costs of buying a home, but a home inspection is not usually one of the areas that you want to try to cut costs at. 

Therefore, as a first time homebuyer, make sure you buy a home that is within your budget and not your lenders budget. Buy a home that has everything that you need it to have and do not skip the items you need for amenities that are simply desired, but not necessary. Finally, get your home inspected, especially if the home is slightly older as this can possibly save you many thousands of dollars in the long run. Follow these 3 helpful homebuying tips for first time homebuyers and you will be that much more prepared to buy your first home.

If you’ve started looking into getting a home loan, you’ve probably already discovered that there are a number of decisions to be made. One of the biggest ones is whether to get a fixed rate home loan or to go with a variable rate home loan. Here are some of the questions that you might have about a fixed rate home loan:

1) What is a fixed rate home loan?

It basically is what it sounds like it is. With a fixed rate home loan, the interest rate on your loan does not fluctuate. This means that the market and economy might change but the interest rate that you locked in at with your fixed rate home loan remains the same.

2) What are the pros and cons of a fixed rate home loan?

At the outset, fixed rate home loans usually have a higher interest rate than those being offered by variable rate home loans. Those individuals who aren’t able to pay higher monthly payments on their loan may find that the variable interest rates give them better payment options initially. However, since variable interest rates go up and down, there are times when the fixed rate home loan rates would be cheaper.

Individuals who are able to do well with budgeting and planning often find that the benefits of having a fixed rate home loan payment outweigh the benefits of a lower initial interest rate. This is because the amount of the payment on a fixed rate home loan can always be anticipated, allowing for budgeting. Variable rate loans vary enough to make this planning difficult for some people.

3) Is it possible to adjust the rate on my fixed rate home loan?

What most people want to know when they ask this question is whether it is possible to get a fixed rate loan and then lower that rate when the market changes and lower interest rates become available. The answer is yes, and no. It is possible to refinance your home in order to obtain a lower interest rate at the time that it is being offered. However, there are usually fees associated with changing your fixed rate home loan. These fees almost always outweigh the costs saved on trying to get the lower rate, so it’s not often done.

4) How long will it take to pay back my fixed rate home loan?

The term of repayment on your fixed rate home loan depends upon the amount of time that you need to repay the loan as determined by your lender. Fixed rate home loans are almost always either fifteen year loans or thirty years loans, with the latter being more common for most buyers.

That sums up the basic questions that most people have about getting a fixed rate home loan. Basically, if you want to have a stable monthly payment throughout the duration of your home loan, then you should get a fixed rate loan. If you would rather take your chances on playing the market with a variable interest rate in the hopes of paying a lower loan rate, well, that choice is up to you.

I'm Brad Snyder and I am a REALTOR® in Arizona. That means I sell real estate. A life-long love of beautiful land and architecturally interesting homes grew into a career in real estate. What I do is sometimes quite complicated.  But the reason I do it is really quite simple.  Everything I do is centered on helping my clients in every way possibly in the pursuit of the American dream of home ownership!

As a REALTOR®, I Pledge ...

TO protect the individual right of real estate ownership and widen the opportunity to enjoy it;

• TO be honorable and honest in all dealings;
• TO seek better to represent my clients by building my knowledge and competence;
• TO act fairly towards all in the spirit of the Golden Rule;
• TO serve well my community, and through it my country;
• TO observe the REALTORS® Code of Ethics and conform my conduct to its lofty ideals.

To accomplish those goals I must be honest with people, even if it means I loose the listing or the sale. I must be willing to walk-away from business that doesn't feel right or where I feel I cannot help.  If I'm not the right agent - I will acknowledge it! I believe that long term success in real estate begins with a true desire to help people make the informed decisions about their purchase or sale.

Twice in the last week I have encouraged potential sellers not sell.  Their situations dictated that there just were not enough compelling reasons to go through all the efforts of preparing a home for sale, dealing with showings, locating a new home, negotiating the price on the old and new homes, dealing with inspections on both homes, and moving.

This was due to the current housing market softness that has lead to flat prices.  In one situation the sellers would need to bring nearly $20,000 to closing because they had refinanced their home recently with an "aggressive" appraisal.  In the other situation the sellers had also recently refinanced and while they would have some money after closing, it wasn't enough to put towards another purchase.

My thinking on the matter is pretty simple. If I pay my clients the courtesy of being honest and direct with them, they will know they're being treated with respect and integrity.

So, while I'm talking myself out of some significant commissions, I'm doing the right thing for them, and they are very appreciative for it!  After all, I have to be able to sleep at night knowing I did the right thing for my clients and prospects.

That is what is truly important. That is why I love real estate.

Make it a Great Day!!

Brad Snyder