Do I need a buyer's agent?

The answer for almost everyone is a yes! Sometimes people think they can save money by not using a Realtor. By the way not all real estate agents are Realtors. A real estate broker using the title Realtor has voluntarily joined an association that requires higher standards of education, ethics and professionalism.

In most markets sellers sign listing agreements with Realtors. Those agreements many times call for that agent to share the commission with a buyer's representative. So if you purchase the property without using a buyer's agent the full commission is paid to the selling agent. The seller' net proceeds is the same and you have not realized any savings. In most cases without the advice provided by an agent you will have paid more or made expensive mistakes.

A good buyer's agent will have assisted with finding home inspectors, lenders and closing attorneys that are competent and reasonable.  A buyer's agent will have the resources to provide comparable sale data. He or she will also have experience in negotiating price and other terms. A Realtor will provide standardized contracts that are fair, clear and that avoid pitfalls for buyers. If you buy a home that is listed, the seller will have a seasoned professional on their side. They have handled dozens or even hundreds of transactions. My fellow Realtors are very good at what they do. Going into a real estate transaction without a professorial on your side would be like stepping up to the plate at a  MLB baseball game without ever holding the bat. Unless you get hit by the pitch the outcome will be you walking back to the dugout talking to yourself.

OK, you are still determined to try to save a few dollars. Perhaps twenty per cent of real estate may be sold as a for sale by owner(FSBO). Your thinking I can get it for the fair value minus the commission. Who determines what the fair value is? Do you have the experience and files necessary to make that judgement? Do you know how to determine the heated square footage of the home? Is the seller's asking price fair? Many FSBO are priced well above fair market value. Many FSBO have been rejected by brokers because the owners insisted on prices well above the market value. This is especially true for properties bought at the peak of the market.  Do you know how to search out that information at the Register of Deeds?

Perhaps the property has hidden flaws that the seller does not want to disclose. Licensed real estate brokers are held to a much higher standard than an individual seller. Once you close on the transaction getting any relief from the seller will be very difficult. Realtors and other licensees are required to reveal any material facts that can effect the value of the home you are purchasing.

For most the purchase of their home is the largest transaction they will ever have. Can you afford a mistake? Enlist the help of a Realtor willing to represent your interest to the exclusion of all others, even his own. When purchasing real estate employ a Realtor. I believe it will save you heart ache, time and money.

Gary Barker

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Due Diligence - New Burdens on Buyer’s Agents

January 1, 2011 our world will change. Sellers, buyers and their agents will have new “Offer to Purchase and Contract” forms. Gone will be the contingencies that have added stress to everyone in a residential transaction. A lot of the members of the Neuse River Region Association of Realtors enjoyed a Continuing Education event with Bill Gallagher ( http://www.superiorschoolnc.com/ ). He taught the group assembled the features of the new contract adopted by NCAR.




The new contract will have a new feature called a “Due Diligence” period. This period resembles an option. It differs in that all of the terms of the final contract are included in one document. With an option the buyer gives notice that he will exercise his rights and contracts to close. With our new contract it will be assumed that a closing will occur. The buyer, in this new contract, will have to notify the seller if they do not plan to close. The buyer will use the diligence period to firm up a loan commitment, obtain an appraisal, perform inspections and determine if they want to proceed. The fee to compensate the buyer for this period of time will apply to the purchase price. Like an option fee it will be nonrefundable. A traditional earnest money deposit becomes “at risk” if this date passes and notice is not given for the buyer to withdraw.



This creates a new burden for Buyer’s Agents. The day of the free “look-see” is over. If the buyer determines that it is in their best interest not to complete the transaction money will be lost. If notice is given during the diligence period the loss will be limited to the “due diligence” fee and other expenses that have been prepaid. If the sale does not close after this period the earnest money will also be lost. Buyers will be unhappy if they lose significant sums of money on an incomplete deal. The competent buyer agent will attempt to assist his client to avoid a transaction that fails. The buyer will need to be educated in a variety of subjects prior to making an offer. Guiding them through the mortgage process will be key. It will be essential to have a pre approval from a lender who closes loans on time. Helping clients obtain and interpret the appropriate inspections will be important. Keeping track of the “Time is of the essence” dates will fall upon the buyers agent. Wisdom will need to be exhibited to avoid beginning a purchase on a property that will create appraisal and inspection problems.



I believe a buyers agent who does a good job will enjoy a greater loyalty from the client. It will be a tense time if the buyer decides to walk and absorb a loss. Over all I believe the new contract will cause our industry to become more professional .

by Gary Barker


Gary has been selling real estate in New Bern since 1977.

Visit my website http://www.gary-barker.com/ 

Find the Home Loan that Fits Your Needs

Understand which mortgage loan is best for you so your budget is not stretched too thin.

The basics of mortgage financing


The most important features of your mortgage loan are its term and interest rate. Mortgages typically come in 15-, 20-, 30- or 40-year lengths. The longer the term, the lower your monthly payment. However, the tradeoff for a lower payment is that the longer the life of your loan, the more interest you’ll pay.



Mortgage interest rates generally come in two flavors: fixed and adjustable. A fixed rate allows you to lock in your interest rate for the entire mortgage term. That’s attractive if you’re risk-averse, on a fixed income, or when interest rates are low.



The risks and rewards of ARMs

An adjustable-rate mortgage does just what its name implies: Its interest rate adjusts at a future date listed in the loan documents. It moves up and down according to a particular financial market index, such as Treasury bills. A 3/1 ARM will have the same interest rate for three years and then adjust every year after that; likewise a 5/1 ARM remains unchanged until the five-year mark. Typically, ARMs include a cap on how much the interest rate can increase, such as 3% at each adjustment, or 5% over the life of the loan.



Why agree to such uncertainty? ARMs can be a good choice if you expect your income to grow significantly in the coming years. The interest rate on some—but not all—ARMs can even drop if the benchmark to which they’re tied also dips. ARMs also often offer a lower interest rate than fixed-rate mortgages during the first few years of the mortgage, which means big savings for you—even if there’s only a half-point difference.



But if rates go up, your ARM payment will jump dramatically, so before you choose an ARM, answer these questions:



How much can my monthly payments increase at each adjustment?

How soon and how often can increases occur?

Can I afford the maximum increase permitted?

Do I expect my income to increase or decrease?

Am I paying down my loan balance each month, or is it staying the same or even increasing?

Do I plan to own the home for longer than the initial low-interest-rate period, or do I plan to sell before the rate adjusts?

Will I have to pay a penalty if I refinance into a lower-rate mortgage or sell my house?

What’s my goal in buying this property? Am I considering a riskier mortgage to buy a more expensive house than I can realistically afford?

Consider a government-backed mortgage loan

If you’ve saved less than the ideal downpayment of 20%, or your credit score isn’t high enough for you to qualify for a fixed-rate or ARM with a conventional lender, consider a government-backed loan from the Federal Housing Administration or Department of Veterans Affairs.



FHA offers adjustable and fixed-rate loans at reduced interest rates and with as little as 3.5% down and VA offers no-money-down loans. FHA and VA also let you use cash gifts from family members.



Before you decide on any mortgage, remember that slight variations in interest rates, loan amounts, and terms can significantly affect your monthly payment. To determine how much your monthly payment will be with various terms and loan amounts, try REALTOR.com’s online mortgage calculators.


By: G. M. Filisko


G.M. Filisko is an attorney and award-winning writer who’s opted for both fixed and adjustable-rate mortgages. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.



Visit houselogic.com for more articles like this.


© Copyright 2010 NATIONAL ASSOCIATION OF REALTORS®



Visit my website www.gary-barker.com

8 Tips for Finding Your New Home

A solid game plan can help you narrow your homebuying search to find the best home for you.




1. Know thyself



Understand the type of home that suits your personality. Do you prefer a new or existing home? A ranch or a multistory home? If you’re leaning toward a fixer-upper, are you truly handy, or will you need to budget for contractors?



2. Research before you look



List the features you most want in a home and identify which are necessities and which are extras. Identify three to four neighborhoods you’d like to live in based on commute time, schools, recreation, crime, and price. Then hop onto REALTOR.com to get a feel for the homes available in your price range in your favorite neighborhoods. Use the results to prioritize your wants and needs so you can add in and weed out properties from the inventory you’d like to view.



3. Get your finances in order



Generally, lenders say you can afford a home priced two to three times your gross income. Create a budget so you know how much you’re comfortable spending each month on housing. Don’t wait until you’ve found a home and made an offer to investigate financing. Gather your financial records and meet with a lender to get a prequalification letter spelling out how much you’re eligible to borrow. The lender won’t necessarily consider the extra fees you’ll pay when you purchase or your plans to begin a family or purchase a new car, so shop in a price range you’re comfortable with. Also, presenting an offer contingent on financing will make your bid less attractive to sellers.



4. Set a moving timeline



Do you have blemishes on your credit that will take time to clear up? If you already own, have you sold your current home? If not, you’ll need to factor in the time needed to sell. If you rent, when is your lease up? Do you expect interest rates to jump anytime soon? All these factors will affect your buying, closing, and moving timelines.



5. Think long term



Your future plans may dictate the type of home you’ll buy. Are you looking for a starter house with plans to move up in a few years, or do you hope to stay in the home for five to 10 years? With a starter, you may need to adjust your expectations. If you plan to nest, be sure your priority list helps you identify a home you’ll still love years from now.



6. Work with a REALTOR®



Ask people you trust for referrals to a real estate professional they trust. Interview agents to determine which have expertise in the neighborhoods and type of homes you’re interested in. Because homebuying triggers many emotions, consider whether an agent’s style meshes with your personality. Also ask if the agent specializes in buyer representation. Unlike listing agents, whose first duty is to the seller, buyers’ reps work only for you even though they’re typically paid by the seller. Finally, check whether agents are REALTORS®, which means they’re members of the NATIONAL ASSOCIATION OF REALTORS®. NAR has been a champion of homeownership rights for more than a century.



7. Be realistic



It’s OK to be picky about the home and neighborhood you want, but don’t be close-minded, unrealistic, or blinded by minor imperfections. If you insist on living in a cul-de-sac, you may miss out on great homes on streets that are just as quiet and secluded. On the flip side, don’t be so swayed by a “wow” feature that you forget about other issues—like noise levels—that can have a big impact on your quality of life. Use your priority list to evaluate each property, remembering there’s no such thing as the perfect home.



8. Limit the opinions you solicit



It’s natural to seek reassurance when making a big financial decision. But you know that saying about too many cooks in the kitchen. If you need a second opinion, select one or two people. But remain true to your list of wants and needs so the final decision is based on criteria you’ve identified as important.


By: G. M. Filisko
G.M. Filisko is an attorney and award-winning writer who has found happiness in a brownstone in a historic Chicago neighborhood. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics
<><><><><>Visit houselogic.com for more articles like this.

© Copyright 2010 NATIONAL ASSOCIATION OF REALTORS®

Visit my website www.gary-barker.com

Property Owners Associations - Good or Evil?

I suppose the answer to the title question depends upon your view. Will you give up some personal freedom to protect your properties value? If you want to have the old Chevy sitting in the front yard on cement blocks and thirteen hounds under the porch guarding it, a POA is not for you.

One of the benefits of a POA is collective bargaining. In one subdivision that I sell the POA does all of the mowing and edging. The cost is about 40% of having a lawn service do it. Of course if you want to maintain your own equipment and provide your own labor you can do it cheaper.

Another benefit is the enforcement of restrictive covenants to help protect your interest. Covenants control the appearance and use of adjoining properties.

What happens if you live in a subdivision with a POA and a neighbor violates the covenants? Once notified the board of directors of the POA will pursue the matter for your benefit. If it becomes necessary they will spend POA funds to hire an attorney to seek relief from the courts.

Suppose you live in a subdivision with restrictive covenants but without a property owner’s association. Enforcement will fall to an owner who decides the violation damages his interest sufficiently to require action. You will experience the stress of confronting your neighbor. Should you need to go to court the attorney will ask you to write a big check. Most won’t do that. Once restrictions are allowed to be violated without challenge they become almost impossible to enforce later. An active Property Owners Association can help continued enforcement of covenants.

Before purchasing check to see if the subdivision has a POA and the fees it charges. You need to determine if the Association’s goals and values line up with yours. If there isn’t association you need to weigh the risk and cost of enforcing covenants on your own. What freedoms will you sacrifice to protect the very large investment your home represents?

Property Owners Associations - Good or Evil? Only you can decide.

Visit my website http://www.gary-barker.com/

Negotiate your best house buy

• 

  Negotiate Your Best House Buy

  Keep your emotions in check and your eyes on the goal, and you’ll pay less when purchasing a home. Read

Visit houselogic.com for more articles like this.

Copyright 2010 NATIONAL ASSOCIATION OF REALTORS®

Visit my website www.gary-barker.com

Why Move Up Now?

Should I move up to a better home now?
Now is the time. While most properties have decreased in value, consider this scenario. You live in a home that was worth $150,000. and is now worth $135,000. You will notice that $15,000 of equity was lost. Now consider the home in which you might wish to live. It use to be worth $250,000. Now it has a value of $225,000. It has moved downward $25,000. If purchased you have benefited by $10,000. Eventually when property values recover your benefit will be $25,000 while if you stayed your recovery will be $15,000.

How would it work?
You may be thinking, that may be fine, but will my home sell? The answer is yes. Homes sell, even today, if priced correctly and advertised properly. The services of a highly skilled Realtor is required. This means pricing your home where it will attract the attention of a buyer. Does this mean that I have to sell at $135,00? Yes but the good news is you don't have to accept an offer that is to low. Once you have accepted an offer you can go shopping. There are plenty of motivated sellers of properties. Your Realtor Buyer's Agent will help you to get a fantastic buy on a home that you will enjoy.

What if the market doesn't recover?
I don't believe this. Which home would you enjoy living in for the next 10 years? Most people can get a mortgage at a lower interest rate for a new purchase than the one they currently have. Would you prefer to pay a lower interest rate long term? I believe that we will experience inflation at some period in the future. Inflation devalues the dollar. The only way the country can pay back its debt is to inflate the value of new products and services by deflated the value of the dollar. If this thesis holds true, your dollars value will decrease and your home value will increase.

Don't wait. Now is the time.

Visit my website www.gary-barker.com

Great Deals after a Hot Summer

Interest rates are the lowest in years. Seller's are ready to accept your offer. Check out the Neuse River Region Association of Realtors MLS search engine on my website. Gary Barker Real Estate will help you to learn about our market and put together a team to make sure you get a great deal. Our Website has great area information. Call us to set up an appointment to begin your search. 252 635 1100

Home Buyers Tips

• 

  Negotiate Your Best House Buy

  Keep your emotions in check and your eyes on the goal, and you’ll pay less when purchasing a home. Read
• 

  Keep Your Home Purchase on Track

  You’ve found your dream home. Make sure missteps don’t prevent a successful closing. Read
• 

  7 Homeowner Tax Advantages

  When you’re evaluating how much home you can afford, make sure you factor in the tax advantages of homeownership. Read
• 

  7 Steps to Take Before You Buy a Home

  By doing your homework before you buy, you’ll feel more content about your new home. Read

Visit houselogic.com for more articles like this.

Copyright 2010 NATIONAL ASSOCIATION OF REALTORS®