1. Market Mastery – the agent understands the nuances of the local real estate market - It is also advisable that they have access to national and international offices so they can advise you on trends occurring in other markets.

2. MLS Mastery – the agent is extremely familiar with the local  MLS and therefore can make pricing recommendations based on data that is complete, relevant and accurate.

3. Contract (and Disclosure) Mastery – the agent understands and can explain each and every provision in the contracts and disclosures that you will be asked to sign, and ensures that you understand how each provision affect you.

4. Pricing Expertise – related to #1, the agent understands the nuances of the specific market area(s) that you buying or selling in, and how various features and amenities (or lack thereof) affect the market value of the properties there.

5. Photography Skills (or willingness to hire a photographer) – the agent understands the importance of having great photos online and is willing to invest the time and money to either take great photos him or herself, or hire someone to do it.

6. Basic Understanding of Home Construction, Repair and Local Architecture – while you don’t need to expect your agent to be a licensed contractor, you should expect them to understand basic issues of home construction and repairs so they can speak intelligently about issues that may arise during the transaction. This knowledge will enhance their credibility tremendously.

7. Good Problem-Solving and Negotiating Skills – the agent doesn’t fall apart and go drama-queen (or king) when the going gets a little rocky(and usually they will). They stay calm and focused, and tackle the problem head-on. They are skilled, confident negotiators. They are always negotiating on your behalf.

8. A Great Team - the agent has a great team. If you need a referral to the best lender, inspector, handyman, house-cleaner, structural contractor, roofer or painter in town, the  agent knows who that is and will set you up.

9. Great Systems in Place to Track Transactions - the agent has detailed checklists and follow-ups in place so that things don’t slip through the cracks or get forgotten when they get busy or distracted.

Remember, a real estate transaction can not only be an expensive transaction, but also very emotional. It is important that you surround yourself with the best team as possible.

Chances are your home will be your largest investment and emotions over such a large and personal purchase can often cloud good business decisions.

If you follow these 10 suggestions, and with the help of the right real estate agent, you’ll make a good business decision that you should be happy and proud of for years to come.

1.Align Yourself With a Knowledgeable Real Estate Agent- By aligning yourself with the right real estate agent, you’ll have an entire team working for you. your first home is one of the most important business decisions you will make and  it should not be trusted to someone that”dabbles” in the market.  Remember to have an agent to represent you doesn’t cost the buyer anything. Top real estate agents have lenders, title companies, inspectors, and processors – an entire group of trained people to make the whole buying experience simple and easy for you.

2.  Location, Location, Location-Remember you are buying a neighborhood not just a home. Pick something you want to grow into. Make sure the area is somewhere you will want to be in several years to come. If you are planning on having kids, consider schools. If you dont like to travel, consider a location that is in close proximity to stores, doctors and entertainment. Statistics show in Northwest Indiana first time home buyers stay in their homes 41/2 to 5 years on average. Your real estate agent can help you project what an ideal  resale scenario will be for your home.

3. Don’t Overextend Yourself- Sit down with your real estate agent and honestly discuss your income level and living expenses. Take into account future considerations like: children, add-ons, amenities or fix-ups. Your dream home is certainly worth a sacrifice but don’t mortgage your entire future. When you find the perfect house that costs a little more than you can really afford, it’s easy to think that you will just suck it up and find the money. Reality is often far less kind.

4. Imagine the Property Vacant- Your furnishings and decorations will be the ones filling this new residence. Don’t be swayed by beautiful furniture.. or decor… it leaves with the owner. Don’t worry about that bright purple paint on the wall, it can easily be changed.

5. View Several Homes- See at least 3-5 properties. Don’t move on the first property you see but… don’t move too slowly either. With your agent’s help, you’ll be able to view enough (but not too many)  properties to get a good overall perspective of the market.

6. Inspect, Inspect and Inspect- Never waive the inspection and pay close attention to the inspection period deadline. Pick your own insector or one recommended by your agent. Go over the inspection report carefully. Make sure the report was done by a respected professional. make sure you read over home owner association covenants and restrictions, for  condo purchases, go over the by-laws, and association fees. Don’t take anything for granted… inspect everything!

7. Do All Your Research-Check out all your costs and expenses before you sign: utilities, taxes, insurance, maintenance and homeowner dues, if applicable. Make sure all utilities are on (gas, electricity, and water), so you can inspect everything in working order. Ask lots of questions and be very detail conscious.

8. Do a Final Walk-Through- Visit the property after all the furnishings have been moved out to be sure there are no surprises. Be absolutely positive the property was left exactly as you had agreed upon in the contract. Many times, things are unintentionally overlooked that could have been spotted in a final walk-through.

9. Plan For Flexibility- With today’s “tighter” lending practices, closing dates are not written in stone. Allow for contingencies and have a back-up plan. If you or the sellers need a little more time to conclude the final arrangements, don’t let these delays upset or frustrate you. remember it will all be closed and over with soon and you will be able to enjoy your new home.

10. Get It In Writing- All promises and discussions are to be in writing. Don’t make any assumptions or believe anything not in writing. If you have a questions about something as simple as a fixture or curtain rod or specific decoration,,, put it in writing. Even the best intentions can be misinterpreted. Have your real estate agent  get the seller’s written approval for all agreements.

10. Ask Questions- DO NOT avoid asking questions. If there is anything you don’t understand or feel uncomfortable with ASK, ASK, ASK!  You may have a  fear of looking stupid or immature, this can drive many first-time home buyers into making really poor decisions.

If you have done your research and aligned yourself with a top real estate professional the process of first time home buying should go from stressful to exciting.

Newbies to the market worry about the cost of buying, the process itself, and of course what it will mean for them to be a homeowner. Owning a home is typically the biggest financial responsibility a person will undertake. It starts with the cost of a downpayment and closing costs and continues with a monthly mortgage payment and annual maintenance and repairs.

Today’s market, however, brings new worries to the table. The economy is on the brink of a renewed recession. Fewer buyers can qualify for a home mortgage, especially since many lenders want at least 20 percent down. Plus, unemployment rates have remained consistently above 9 percent.

What do first-time buyers really need to know about today’s market? Here are some things to consider.

Interest rates are at historic lows, with 30-year fixed rates between 4 and 5 percent! This is incredible. Imagine the difference between an interest rate of 4 percent and one at 13 percent. For a $100,000 with 20 percent down, you’ll find a payment near $568 a month. For the exact same home at 13 percent you’ll see a monthly payment of just over $1,000.

Home prices fell after the bubble burst, leaving affordability rates at generational highs. This means there are great deals to be had. In addition, there are a large number of foreclosure and short sale properties available, sometimes at even more savings.

This means prices are low and interest rates keep them that way. You will still need a downpayment, however. This is now expected to be at least 20 percent of the total cost of the home.

It’s not all silver linings, though. Home values are still falling. It is of paramount importance that if you’re in the market to buy, you must research your own local market trends. Are home values plummeting? Are they holding steady? Many times the housing market is directly linked to the health of the jobs market. What is the state of employment in your community?

There are reasons to buy other than just making a sound financial investment. If you plan on remaining in your home for many years to come, then now is a good time to buy regardless of pricing fluctuations. The social benefits still remain strong and your home will be an investment over the long-term.

Be sure to think long and hard about the true cost of homeownership and if it’s right for you. This is not a time to get into a financial situation you can’t handle. Is your job steady? Do you have an emergency fund in addition to your downpayment amount?

Hiring a knowledgeable real estate professional can be an excellent first step on your way to finding the right home for you. They can help answer all of your questions about the process. There’s no reason to go into this process blindly. Let them guide you.

Buying a house is a big decision, but don’t let scary headlines deter you. There are great deals to be had in today’s market.

Published: September 21, 2011 by Realty Times.com, by Carla Hill

http://realtytimes.com/rtpages/20110921_buyers.htm#.TnoqLGdgt68.email

“With consumer revolving debt balances declining nationwide and home values flat, some homeowners are considering paying off their mortgages early,” said Gallegos. “For people who are staying put in their home for some time, paying a mortgage off before the end of its term has benefits. Obviously, making extra payments eliminates the loan debt faster. This in turn dramatically lowers the total interest paid over the life of the mortgage.”

But not everyone gains from paying off the mortgage early. Gallegos suggested consumers take these factors into consideration before launching any accelerated payment process:

1. Are all other needs under control? For anyone, paying off credit card debt and contributing the maximum to a retirement plan are goals that should beat out paying off the mortgage early. Those planning to retire soon might find it appealing to eliminate the mortgage. “It’s most important, in that situation, to be sure you will have enough cash to fund your retirement,” said Gallegos. Consumers should ask: Can they afford to pay more each month? Do they have an emergency fund that could cover six months’ living expenses? If not, rest content with paying the mortgage as scheduled until these safeguards are in place.
2. Is a move coming up? Homeowners who might sell soon would do better to put extra cash in a fund for a new-home down payment. “The market is still a bit wobbly in most locales,” Gallegos said. “And lenders are demanding higher down payments than in recent years. If you plan to relocate soon, hang on to your cash for the move.”
3. Check for prepayment penalties. Most mortgage loans do not have a prepayment penalty. But those that do present heavy charges for paying the balance off early. Review the Truth in Lending disclosure to find out.
4. The earlier, the better. Making extra payments earlier in the life of the mortgage makes a bigger difference in the amount of interest the bank collects over the years.
5. Analyze the mortgage interest deduction. Homeowners who itemize deductions reap tax benefits from paying mortgage interest. Naturally, paying a smaller amount of interest results in a lower total itemized deduction amount. (To find out the potential savings, multiply the mortgage interest paid by the applicable tax bracket). The difference could be thousands of dollars annually, so plan accordingly.
6. What else could be done with the money? Find the rate of return for a paid-off mortgage with an online mortgage tax-deduction calculator. Then compare it to potential earnings on investments. Most people would fare better by investing the money instead of paying the loan, especially when considering the interest saved over time. Those who can pay the mortgage off early might do well to do so and then invest what had been spent on monthly payments in a savings or retirement vehicle.

People who decide an accelerated payment schedule is right for them have several options to choose from, Gallegos said.

• Pay off any excess debt, and then add any available income to the mortgage payment. This is simple to do if the statement has a line for “additional principal.” If not, check with the lender to find their preferred method-and confirm there is no prepayment penalty.
• Some mortgage companies offer biweekly payment plans. These plans usually involve a set-up fee as well as a monthly charge. Traditionally, mortgage payments are made monthly, with 12 payments per year. A biweekly payment plan has the borrower pay half of a regular mortgage payment every two weeks-equating to 26 half-payments over a year. Without adding much to the monthly budget, a homeowner making a biweekly mortgage payment is effectively making one extra mortgage payment per year.
• Simply pay half the mortgage biweekly. Caution: Some mortgage companies will return a check that is less than the amount of the bill or received at an odd time. Others may charge a prepayment penalty. Check the lender’s policies carefully.
• Divide the monthly mortgage payment by 12. Then add that amount each month to the regular monthly payment (write it on the “Additional Principal” line of the statement). Doing this every month will result in an extra month’s payment each year.

“Paying off a mortgage can be a great relief. On the other hand, with mortgage debt, you’re paying to own your own home, with beneficial tax deductions,” said Gallegos. “Either option can be a good one. Consider your complete financial picture before choosing the right path to homeownership.”

Copyright© 2011 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

Sponsored By Buying a home? These eight tips can help make your house-hunting experience positive and rewarding. By Marcie Geffner

2. Develop your home wish list. Then, prioritize the features on your list. 

3. Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.

4. Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment? Ideally, you should have 20 percent of the purchase price saved as a down payment. Also, don’t forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees — average between 2 and 7 percent of the home price.

5. Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.

6. Determine your mortgage qualifications. How large of mortgage do you qualify for? Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you.

7. Get preapproved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.

8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you’ve saved to buy your fist home without paying a penalty for early withdrawal.

9. Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.

10. Contact a REALTOR®. Find an experienced REALTOR® who can help guide you through the process.

 

http://www.realtor.org/rmosales_and_marketing/handoutsforcustomers/handouts/buyer11