Why you need to use a Real Estate Agent in Today's Housing Market

Would you buy a car without asking about it's benefits, price, terms, condition, warranty, etc..?Real Estate is one of the largest investments most people will ever make in their lifetime, why choose to act alone?

Let's say you are in the market for a new home; your moving, you need a larger house to accommodate your growing family, your leaving leaving the nest, or you just want to make a good investment. Whatever your motiavtion is for purchasing a new home...hire a real esytate agent to help you with the process...they do this for a living!

I encourage you to interview several agents before selecting one you find has "your" best interest in mind (if they have commission breath....go to the next one). They should conduct a proper and thorough buyers consultation, offer names and numbers to various lendors in the area (if you are not working with one already) and dig deep into the "must haves" in your new home.

Once the lender as given the "All Clear" or Pre-Qualified you for a new home, the real estate agent with then have a purchase price range stay within. I want to make sure that you understand the definition of being pre-qualified and it's benefits. Let's say you pre-qulify for a $140,000 home (average sales price for Lubbock, Tx), don't go looking for a $140,000 home...you may become "house poor". When more the 1/3 of your income goes toward your mortgage payment, you are house poor. You will not have enough money to live a fullfilling life. The Pre-qulification letter from the lender will give the sellers a feeling of security when you make an offer on their house. Essentially, they will look at you more as a cash buyer rather than someone off the street just looking around at houses for sale (this is a common occurence with For Sale by Owners).

Once you have decided on a price range for your new home purchase. Your real estate agent will locate several houses that meet your "must haves" in your price range. You will then tour these houses and decide whether or not to make an offer on each home. Your real estate agent will quickly identify the strengths and weaknesses of each home and more than likely a compromise will take place on one of your "must haves", It is extremely rare that you will find the perfect home. If you get 90-95% of your "must haves" in a home, make an offer! Also, don't be alarmed if the first house you loiok at is the "One". Your real estate agent may have done his/her homework and found the perfect house...it happens more often than you think!

Once the offer is negotiated, between the buyer and the seller, you will then need to be prepaired to write two checks and come up with a down payment. You need neeed to write a check to the seller for the Option Fee (usually around $100-$150) which they will cash immediately. This allows you ten days to have the property inspected and ask for repairs. You will also need to write a check for Earnest Money estimated at around $1,000 or 1% of the sales price. This will also be cashed immediately and placed into an escrow account to be credited at closing. Your down payment amount varies, FHA loans require 3.5%, conventional loans are hirer ranging from 10% and up. If you can afford a larger down payment, I would recommend it, then you might be able to avoid having mortgage insurance which could save you few hundred dollars to your monthly mortgage payment.

There are a number of hurdles to jump when buying a home and processing all the paperwork. Let your real estate agent help you, that is what they do for a living! It is just too risky not to have a professional guide you through this process. Good luck in your home search...