3 Real Estate Myths Debunked

June 13, 2010

Common REAL ESTATE MYTHS

MYTH #1 If I use a Realtor to help me find a home, I will have to pay more.
FALSE. As a buyer, a Realtor will save you time and money. Hiring a Realtor when you begin the process of searching for your new home is the best way to be sure you will get the most accurate information on the current market. Getting the most accurate information will help you avoid over paying for a home as well as saving you countless hours contemplating homes that are not even on the market anymore. Many websites are not up to date with the current inventory of homes, but your Realtor is!.
( for more information see my blog post.. With the Internet, why do I need a Realtor? )
And no where else can you get professional representation and not pay for it..That is right, the sellers of the property pay the commission to YOUR buyers agent.
I repeat, you get the benefit of a trained Real Estate Professional ,a Realtor, to help you search for homes, line up financing, tour properties, study market conditions, perform market research and THE SELLER PAYS FOR IT.!!


MYTH #2 If I list my house with a Realtor, I will not make as much as if I do it myself.
VERY FALSE. Many people want to sell their homes on their own and “save money”.  If saving money is your goal, cut back on your expenses and find a cheap hobby like bird watching. IF you want to make money, hire a Realtor to analyze, list and market your home.
Some people may have the time, money and knowledge ( and patience ) to list and sell their own home. But most do not. The typical scenario goes like this:
A homeowner wants to save the 6-7% commission he would pay a Realtor and do it himself.  Most homeowners are not objective about the real value of their home and naturally think its worth more than it really is. The market dictates the price point for the home, unfortunately, not the amount of  blood, sweat and tears the homeowner has into it. So they over price the home and it sits on the market as other properly priced homes sell around it. Then after months of interrupted dinners with people wanting to see the home, and tons of calls and questions about the home they get someone who says : I LOVE IT, I WANT IT ! Unfortunately, this person has no money and no credit…they are not pre -approved and could not buy the home at any price. All this is found out about 3 weeks after the homeowner stops running ads and has stopped trying to sell his house thinking it was sold….Back to square one and he has 5 months wasted..I could go on…HIRE A Realtor at the beginning, get it priced right, get the proper information,get it marketed right,  show the home only to qualified buyers and get it sold.


MYTH #3 Bank Foreclosures are the best way to get a property below market value.
FALSE AGAIN Many people assume that because its a bank foreclosure, it’s gotta be a steal. Not true. Bank foreclosures are sometimes very hard to get to settlement. Dealing with the bank and getting clear title can take more time than some buyers can afford. Additionally, just because the property was foreclosed on and is now up for sale, does not mean that is priced under market value. It could just as easily be priced over market value because the bank is owed way more than its worth. The person who determined the price may know nothing about the local market.
The best way to get the most accurate real estate information is to talk to a professional Realtor…..Most Realtors will be happy to answer your questions without any obligation.
Cal Williams
Realtor
Accredited Buyer Representative

http://www.CalWilliams.com
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Real Estate Questions Answered- ” How do I buy a foreclosure property? “

December 13, 2009

Today, everyone wants a foreclosure. “Where can I get a list of foreclosures? ” , ” How do I go about buying a foreclosure?”, “Will I get a STEAL on a foreclosure?”

These are some of the most asked questions in today’s economy and real estate market.

There are a ton of websites that advertise lists of foreclosed homes. Most of them require a fee to view the details of the properties. Most of these sites have outdated information, bad information and are usually a rip off. All the same information is available through your local real estate agent….FOR FREE!

I have seen several sites that claim they have properties before they hit the market. Wow, sounds great to someone looking to get a good deal on a property. The truth of the matter is what they have is a list of properties that MAY go into foreclosure or may not. If they do go into foreclosure they will eventually end up on the market, listed with a local Real Estate Agent. DO NOT PAY for lists of these properties. Find yourself a good agent that has his/her finger on the pulse of the market, knows the area and is searching the market daily for new listings. Make friends with this agent. There is no need to throw your money away when every property that goes into foreclosure ends up listed, which your agent will know about immediately and get you in to see it and make an offer, if so desired.

The process of buying one of these foreclosed properties is another blog in itself. Needless to say you need a good Realtor®  AND a good real estate attorney on your team. Your Realtor® will know how to get all your paperwork prepared and then an attorney usually helps the Realtor® negotiate with whatever bank owns the foreclosure. Usually the bank has taken over the property and does not want to own property. A good Realtor and attorney can help the bank understand this and at least get the offer considered.

Whether or not you get a great deal is another matter. Despite what most people think, just because it’s a foreclosed property that does not mean it’s a steal, or that its being sold below market value. There are several reasons properties go to foreclosure. The most common one being the owners cannot keep up with the mortgage payments and the banks exercise their right to take back the property through a foreclosure action. It depends on the current market conditions, along with several other factors, whether or not you get a “steal”. A majority of the time the property will be sold for the market value. The banks are not giving properties away, but they can be shown what the market value is. Thats where your Realtor®  comes in. He/She can prove to the banks what similar properties are selling for, thus making it more likely that your offer will be accepted.

Do not expect to low ball an offer, with no supporting documentation to the bank and get properties for less than market value just because they are ‘foreclosed’.  If you are serious about buying property, foreclosed or not, go about it the proper way. Thats not to say you cannot get a great deal. You can. But it’s not easy, and it’s not the norm. There are many good deal out there that are not foreclosures. You just have to find them.

In order to cut through all the bull, get straight, honest answers, anyone interested in foreclosed properties needs to consult a Realtor® or real estate professional. It doesn’t matter whether you are looking for an investment property or a primary residence, consult a Realtor®. It’s the smart thing to do.

Cal Williams

Straub and Associates Real Estate

Camp Hill, PA

www.CalWilliams.com


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