Choosing a Realtor That Specializes in an Area

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Very often someone will know another person who is a Realtor and automatically assume that they want to work with them.  Never mind whether or not they are familiar with the area that you may be considering for your new home, never mind that they may not know all the important details of the locale on a first-hand basis.  What happens in those cases where the homebuyers hired Realtors from a different region?  Many times these people are stuck with homes that are not entirely what they had expected.  They do not get accurate pricing comparisons and they endure difficulties with contractors and vendors that could have been avoided had they used a local agent with connections.  Here is what you get by selecting a real estate agent who specializes in your area:

Familiarity

This may seem overrated but it is hardly an insignificant aspect of real estate.  You can work with an agent who has access to the same information that is accessible to you, but then where is the edge you get from working with an experienced Realtor?  All a far-away agent can realistically do is to assist you in the formalized process associated with buying a new property.  However, what will truly benefit you are the value added services that you get from a local agent who is loyal to the area.

Experience

Knowing intricate details of local ins and outs within the realm of real estate makes an important difference in the quality of deals that take place. As an example, some states may have newly introduced laws or regulations that must be contended with or possibly provide benefits to the buyer or seller. 

Networking

With years of experience and community interaction, real estate agents tend to develop a solid rapport with vendors, suppliers and contractors.  There is no better reference than word of mouth and hearing of proven success stories from your agent offers you peace of mind at a time when you need to focus on other aspects of your new home and the move. The preferred vendor and contractor list of most agents is usually fairly extensive, including anything from a list of General Contractors, plumbers, electricians, home inspectors, appraisers, landscapers, home stagers and more. 

Accuracy

Agents who know their respective areas very well have no trouble assessing the value of the home in terms of how they should price it for sale.  This is also critical when it comes to negotiations and if not done accurately, can completely impact the transaction negatively.  Your agent will need to be able to defend the price that has been set for the home and unless he or she has ample comparable sales data and knowledge, this can be a difficult feat.  Keep in mind that usually agents are those who specialize in a specific area so your out-of-area agent might find they are going head to head with a Realtor experienced in that area, which could backfire.

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It is critical to hire a real estate agent who not only is familiar with your area but also specializes in the vicinity.  This is highly important for a multitude of reasons but the main benefit is that you will end up getting more house for less money if you are buying and you will be able to effectively sell your home, yielding the best price – given accurate valuation tools and familiarity.  The ramifications of hiring an outside area agent can be great. 

What’s a Real Estate “Short Sale” and Why Should I Buy One?

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The best way to explain a short sale is with an example:

Assume a homeowner has an unpaid loan mortgage balance of $200,000, but the property will sell for only $175,000. The lender holding the mortgage agrees to sell the house for the $175,000 amount, which, of course, leaves it “short” of the full amount of $200,000. Thus, the name “short sale!”

Obviously, lenders don’t like short sales since they’re not in business to lose money. But such situations do occur for various reasons often related to “hardship” situations. Examples include:

• Permanent injuries


• Financial insolvency
• Job layoffs, etc.

This is a sad situation for the homeowner, but it does offer an opportunity for you to pick up a bargain. However, there are several potential downsides you should be aware of before you make an offer.

Pitfall 1: Allow time for the lender’s decision.
Once your offer is accepted by the seller, the contract will be sent to the seller’s lender for approval. This process can take anywhere from 2 to 12 months, and there’s oftentimes no way to know beforehand exactly how long the lender will take.

Pitfall 2: The lender is under no obligation to accept the short sale.
Often times, lenders will come back with a counter of a higher price, or will sometimes reject the offer outright. There is no way to know beforehand exactly what the lender is thinking. This risk can be reduced by pre-qualifying the seller and making sure he or she has a genuine hardship, and by making sure you offer close to market value.

Pitfall 3: The seller must be committed to the process.
A great deal of paperwork and commitment will be required of the seller. There have been cases where the seller does not complete everything that is necessary and causes the lender to reject the deal. Additionally, there have been cases where the seller backs out to declare bankruptcy. Make sure the seller is committed to the process before you begin!

Summary

You can pick up great bargains in the short sale market, but you have to be very knowledgeable and very patient! And, as mentioned earlier, there are risks and often times you will face disappointment. Hiring a professional realtor who has experience with the ins and outs of short sales can help reduce these risks.