Monday, April 13, 2015

Forcing Buyer to Use Seller's Title Co. Is a NO NO!!!



Forcing Buyer to Use
Seller's Title Co. Is a
NO NO!!!

Sometimes us Realtor's make transactions so much harder than they need to be.  Working as a Buyer's Agent, it is my duty to make sure my Buyer's rights are not taken away.

After looking at a few homes my Buyer's decided on a home and their offer was accepted.  Included with the disclosures was an addendum, the Seller insisted the Buyer must use their title company.  If the title company was going to provide an incentive for my client to "want" to use them, then my client would consider it was my response on the addendum.  Seller who is also the listing agent crossed it out and advised either the Buyer's use his title company or no deal!!!

Clearly, the Seller/Listing Agent wasn't familiar with Title 17-607 which states a real estate Agent cannot require a Buyer as a condition of settlement to use a specific settlement company, title insurance company, escrow company, mortgage lender, or title lawyer.  The penalty if found guilty is a misdemeanor, up to $5,000 fine and up to one year in prison. 

I don't know about anyone else, but that is just not worth it to me.  The Seller/Listing Agent said he wanted to use his title company because it was more convenient for him and doesn't understand why there was an issue.  I had to in several email communications remind the Seller/Listing Agent of the Buyer's right to choose the title company.  He did not back down until I sent a copy of the title which included the fine and jail time.  I guess that made him think if it were worth it too!

Tabitha  Rector-Richardson
Broker, REALTOR®


(443) 415-4215 cell
(410) 363-1535 x101 office

Friday, April 10, 2015

Some Agents Are So Inconsiderate!



Some Agents Are So Inconsiderate!

Most of us Agents are all trying to help people with their real estate needs while earning a living doing so.  With that said, many of us try to plan our days to be the most productive possible.  

An Agent contacted me wanted to schedule an appointment to show my listing. After advising her on how to schedule the appointment, she said she is old fashioned and does know how to do it "that" way.  As Realtor's we should know by now the industry is constantly changing with new technology, laws, policies, etc.  However, I wrote down her information so I could provide the showing instructions.  When I told her the property was on a Sentrilock lockbox (electronic), she said she does not have access to those boxes because she couldn't afford to pay the fee's.  

Trying to be considerate, I offered to meet the Agent at the property so I could let her in to show it to her client.  She said she had other houses to show but she should be at the house around 4pm.  I told her it will take me 30 minutes to get to the property so give me a call when she was leaving her area to get there.  She was also going to be 30 minutes away.  Long story short, since I did not hear from the Agent I decided to give her a call at 3:40pm and she said, "oh I meant to call you, we are going to see your listing tomorrow.  Can't you just put a combo lockbox on the property?"  

Even though I wanted to say NO, I told her I would put a combination lockbox on the property so she could show it.  The Agent advised she would show the property the next morning between 10-11am.  The next morning, I drove to the property so I could put the combination lockbox on so the Agent could show the home between 10-11am that day.  After I put the lockbox on, I called her to let her know but the Agent did not answer.  When she called me back she said, "Oh I didn't know who this was that called, but I'm not going to show your property today instead we are going on Sunday!"  

I was really upset at this point!  How inconsiderate of her to take my time for granted!  I was trying to be accommodating to help her because she did not have the property tools needed to do "her" job effectively.   Unfortunately I couldn't tell her what I really thought of her actions because it wouldn't be in the best interest of my client. But I'm thankful to be able to have Activerain to let out my frustrations  :-)  

Here are a few professional courtesies worth mentioning for those who may not possess these qualities:


  • If you are meeting an Agent at a property, call if you will be late or need to cancel the appointment ASAP.
  • Keep a professional demeanor at all times even when you really don't want to.
  • Promise only what you can deliver to your clients and fellow
    Agents.

If we can all work together more effectively, everyone wins!

Tabitha  Rector-Richardson
Broker, REALTOR®


(443) 415-4215 cell
(410) 363-1535 x101 office

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Friday, April 3, 2015

You Could've Had a BIGGER Tax Refund if You Owned a House!





Buying a house is part of the "American Dream," however some people don't see the advantages of owning a home in America.  Some of the reasons I've heard for not becoming a homeowner are I'm scared the market will drop again, I don't want to be responsible for repairs, I don't have the down payment money or I want to wait until I get married.
Although someone may feel these are valid reasons not to purchase a home, there are many advantages to being a homeowner.  The major reason is the tax benefit you get each year.  Before we discuss some of the benefits, let's delve into the reasons some people choose not to buy.

#1 I am scared the market with drop out again
The real estate market is cyclical.  If you review the history of the U.S. home values index you will see it goes up and down throughout time.  During WWI/II and the Great Depression, the market experienced a decline and in the 70's and 80's there was a boom.  The peak we had leading up until 2006 was unprecedented, however safeguards have been put in place to stop predatory lending and protect the consumers.  Currently, interest rates are still at record lows and the market seems to be in a healthy state.

#2 I Don't Want to Be Responsible For Repairs
When you purchase a home,  you are able to also purchase a home warranty that will cover you in the event disaster strikes.  Home warranty's are very affordable and can be purchased for as little as $300-500 per year.  Also, if you stay on track with maintaining your home and it's systems you can avoid some repairs caused by negligence.

#3 I Don't Have the Down Payment Money
If you are a first-time homebuyer, there are many programs available that will assist you with grant funding to purchase your new home.  Based on the type of loan you get, you are able to receive up to 6% of the sales price as gift funds towards your purchase.  As soon as you've made the decision to become a homeowner, begin to save money to build your house fund.  

#4 I Want to Wait Until I Get Married
It may be ideal to get married and then buy a house, but it is not the only option.  If owning a home now will be beneficial to you, once you get married you can sell your home and use the money from the sale of your house towards the down payment of your next house.  Or  you can rent out your house and earn passive income. 
 
BENEFITS

Tax Deductions
Most people can find reasons for why they don't want to do something, so let's find a few reasons why buying a house is a GOOD investment.  When you buy a house, some of the money used for your closing cost are tax deductible.  Also, each month you pay your mortgage, you are paying principle and interest.  The interest portion of your payment is tax deductible.  

Build Equity And Wealth Over Time
By making your regular monthly payments, it decreases the amount you owe on your home, therefore increasing the equity in your home.  Equity is the difference between the amount you own on the home and the market value.  If you pay off your house, your home becomes an asset.  In recent time, many people found themselves in an upside down situation where they owed more than the house was worth.  

Fixed Monthly Payments
Another advantage is your payment amount (Principle & Interest) never changes.  Most people get a 30 year fixed mortgage to have equal payments.  You never have to worry about your landlord raising your rental rate every year. 


Pride of Ownership
You've carved out your piece of the American dream.  When you own your home, you can make renovations to your home without having to consult with a landlord.  You can paint your walls any color you want, knock down or build a wall and decorate however you want.

In the end, people have many reasons why they should or shouldn't buy a house but there are many benefits to owning a home.  It is best to review your financial situation with your lender to determine how much buying power you have and if this is the right time for you. 

Tabitha  Rector-Richardson
Broker, REALTOR®


(443) 415-4215 cell
(410) 363-1535 x101 office

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Friday, March 27, 2015

Buyer's vs Seller's Market... What's the difference?



Buyer's vs Seller's Market
What's the difference?



Most consumers do not know the difference between a Buyer's market and a Seller's market, however they should!  There are various benefits and disadvantages for Buyer's and Seller's in both market conditions.  The principle of supply and demand will determines which market we are in at any given time. 
 
Buyer's Market

Let's start with a Buyer's Market.  Most consumers seeking to purchase a home would want to be in this situation.  This means the supply of homes are higher than there are Buyers.  As a Buyer, you have a better bargaining position because there isn't as much competition from other Buyers wanting to purchase.  When you submit your offer on a home, it is less likely there will be other offers on the same property unless it is priced below market, is the cream of the crop of the inventory or it just came on the market.

The demand for houses are down and the supply of houses are up.

The disadvantage for a Seller is their homes may sit on the market for a longer period of time while waiting for a qualified Buyer.  If you are listing your home during a Buyer's Market, a Seller should make sure their home is in the best showing condition to entice Buyers.

Some tactics Sellers can use to encourage Buyer's to want their home are by offering more money to help the Buyer pay for closing cost, paying all of the Buyers closing costs, buying down the Buyers interest rates for their mortgage and offering to include a home warranty, etc.  

Seller's Market

At this present time, we are in a Seller's market in my local area.  A Seller's market means there are more Buyer's looking to purchase a home than there are houses listed for sale.  

The demand for houses are up and the supply of houses are down.

If you are a Seller, this is the ideal market for you. This means the chances of getting multiple offers on your home are higher.  Because of this demand, you may get closer or exceed your asking price for the sale of your home. 
If you are a Buyer searching for a house in a Seller's market, be prepared to make a decision quickly if you see a house you like.  Many houses are going under contract within the first week of being listed.  This means many Buyers are offering their highest and best offer upon submitting their FIRST offer.  A Seller can be more selective in the offer they chose and not have to give up too much in order to sell their home.

So before you start your home buying/selling process, make sure you understand the market you are in.  By knowing your market, it will help you determine what type of offer you will submit and how much time you have to get your offer in if you are a Buyer or how much you will list your home for and what type of incentive you are willing to give the Buyer if you are the Seller.

Happy House Hunting!


Tabitha  Rector-Richardson
Broker, REALTOR®


(443) 415-4215 cell
(410) 363-1535 x101
office