Real Estate 101

Working With Your Real Estate Agent

Selecting the right real estate agent to help you buy or sell your home is essential to a smooth transaction. For the best possible experience, you should consider a professional's experience, personality and responsiveness.

Here are some tips to help you choose and work with your real estate agent.

How to choose a real estate agent

1. When it comes to choosing a real estate agent, consumers who do their homework can save thousands of dollars and experience a smooth financial and physical transition. So don't slack off - decide what is most important to you, and then find a professional who specializes in that area. Are you buying or selling a loft? A condo? A horse property? Raw land? An investment property? Perhaps cost is your main concern. Or timing. Whatever you decide, there is a RE/MAX Associate to help you.
2. Ask friends and family members for referrals.
3. If you've found the general area in which you'd like to move, do an informal survey by driving through neighborhoods and viewing yard signs. Seeing the same name pop up time after time may indicate that person is a specialist in the area.
4. If you've found the general area in which you'd like to live, do an informal survey by driving through neighborhoods and viewing for-sale signs. Seeing the same name pop up time after time may indicate that real estate agent is a specialist in the area. If you're thinking about selling, monitor the signs in your own neighborhood.
5. Pay attention to credentials. This will help you determine areas of expertise. You may be interested in these designations: ABR (Accredited Buyer Representative), CLHMS (Certified Luxury Home Marketing Specialist), CRP (Certified Relocation Professional), CRS (Certified Residential Specialist) and SRES (Seniors Real Estate Specialist). There are dozens of designations pursued for continuing education, so identify one or more that fit your needs.

What to ask in the interview

1. If selling, ask the real estate agent how he or she would establish a price. You may request a Comparative Market Analysis, also called a CMA, which shows the market value of similar homes in the area that are for sale or have recently sold.
2. If selling, ask the real estate agent how he or she would market your property.
3. Ask the real estate agent how often you should expect to hear from him or her. Know how and when you will communicate to avoid unrealistic expectations. Pay attention to office hours and whether or not you will be invited to stay in touch via a cell phone, pager or e-mail.
4. Ask how long the real estate agent has been licensed and how many buyers and sellers he or she has helped. While time is not the most important factor, it may demonstrate experience.
5. Ask about awards and designations.
6. Pay attention to the agent's listening skills. Does he or she cut you off before you've finished a sentence? There's nothing worse than looking at houses you have no interest in because the real estate agent has not listened carefully to your needs or having your home on the market too long because the wrong buyers are being targeted.
7. Ask the real estate agent what his or her fee structure is. Do they require a percentage of the sales price, do they work for a flat fee, or will they be paid another way?
8. If you are unsatisfied with prospects' plans or personalities, thank them for taking the time to meet with you, and repeat the process with another real estate agent. It is time-consuming to meet with multiple prospects, but it's worthwhile to find the right one.
   
   Once you've found the right real estate agent to represent you, hold up your end of the relationship. There are simple things you can do to help your real estate agent get you the best deal.

How to work with your real estate agent

1. If you are selling, create an information sheet that lists your home's features and best qualities, especially those that people might otherwise overlook. Give this to your real estate agent, who may be able to use the information when marketing or talking with potential purchasers.
2. When selling, talk to the real estate agent about cosmetic improvements. Your home may need fresh paint or new carpet. (Make sure you choose neutral colors.)
3. If selling, keep it clean. Eliminate cobwebs and dust. Keep the bathroom counters and mirrors wiped down. Vacuum and sweep daily during the selling process.
4. If buying, be clear about what you want. Make a list of your priorities numbered one through 10 and give it to your real estate agent. You can always revise the list, but give your real estate agent something concrete so he or she can research available listings effectively.

Helpful tips

1. Office environment can say a lot about a business person. Are things organized or cluttered? Do the office hours make it easily accessible? Is it clean?
2. Your real estate agent is an authority you hire to help you make the right decisions, but you have the final word.
3. Hiring a Realtor will give you the best advantage. Although many practitioners work part time, RE/MAX Associates are industry professionals who can provide their complete attention and expertise. This gives you an enormous advantage.
4. Your residence is likely to be the biggest single investment you'll ever make. Buy and sell wisely.
5. Remember that home values fluctuate with the economy.

Buying a Home

1. Hire a real estate professional.
   The first step is to select a professional to help you find your dream home and fine-tune your financial expectations. Working with a buyer agent is worth consideration since he or she is legally responsible for representing the buyer's interest in a real estate transaction. Before making a decision, however, have a Realtor explain the pros and cons of using a buyer agent versus a sales or dual agent. Your RE/MAX Associate can guide you through every step to buying a home.
   
   
2. Shop for mortgage rates and terms.
   A difference of even half a percentage point can mean a huge savings over the life of a loan. For example, the difference in the monthly payment on a $100,000 mortgage at 8 percent vs. 7.5 percent is about $35 per month. Over 30 years, that's $12,600.
   
   
3. Prequalify for a loan.
   Your third step should be to get prequalified, which determines how much you can afford. It allows you to move swiftly when you find the right home, especially when there are other interested buyers. It also indicates to the seller that you are serious and really can afford to buy the property.
   
   
4. Define what you want.
   The next step is to create a realistic idea of the property you'd like to buy. What features are most important to you? Make two lists: one of the items you can't live without and one of the features you would enjoy. Refine the lists as you house hunt. It is also helpful to search online to see what is currently available on the market. Your real estate professional can then show you houses that meet your expectations.
   
   
5. Visit properties.
   Now you're ready to visit houses. Ask your RE/MAX Associate to arrange showings, and keep track of the properties you've seen.
   
   
6. Know the features that help or hurt resale.
   In some areas, a swimming pool actually detracts from a home's value and makes it harder to sell. In neighborhoods with two-car, attached garages, a single-car or detached garage may impact the home sale and future value. Your RE/MAX professional can point out features that hurt or help resale value.
   
   
7. Rate the houses you tour.
   After touring each home, write down what you liked and didn't like. Develop a rating system that will help narrow the field down. For example, pick the house you like best on day one and compare all other houses to it. When you find a better one, use the new favorite as the standard.
   
   
8. Make an offer.
   Once you've pinpointed your dream house, it's time to get serious about the financial and contractual side of the purchase. Your RE/MAX Associate will be a strong advantage since you and the seller have different goals.
   
   
9. Arrange for a home inspection.
   After your offer is accepted, set up a home inspection. It's common to find problems, including leaky roofs, cracked walls, insect infestations and foundation problems. Your real estate professional can help find a reputable inspector, and will negotiate to get you the most for your money once the inspector's report is final. If you negotiate repairs as part of the purchase, ask for a "walk through" before finalizing the paperwork. Ask your real estate expert about home protection plans, which may save you money in the near future.
   
   
10. Close.
    Before your closing date, make sure you've made all necessary deposits and completed the paperwork - including mortgage, title, homeowners insurance and any other paperwork required by local or state governments.
    
    
11. Prepare for life in your new home.
    Before rolling out the welcome mat, consider some moving basics: arranging for an alarm company, turning on electricity, water and gas, cleaning or replacing the carpet, and notifying your local post office of your new address. The best time for renovations is often before you move in.

Selling a Home

As a homeowner, you can play an important part in the timely sale of your property. When you take the following steps, you’ll help your RE/MAX Sales Associate sell your home faster, at the best possible price.

The easiest and most reliable way to improve the appeal of your home is to enlist a quality home service professional. The right professional can help you get everything in order - from repainting the kitchen to providing a thorough cleaning - so you can stay focused on more important things.

1. Make the Most of that First Impression
   A well-manicured lawn, neatly trimmed shrubs and a clutter-free porch welcome prospects. So does a freshly painted – or at least freshly scrubbed – front door. If it’s autumn, rake the leaves. If it’s winter, shovel the walkways. The fewer obstacles between prospects and the true appeal of your home, the better.
2. Invest a Few Hours for Future Dividends
   Here’s your chance to clean up in real estate. Clean up the living room, the bathroom, the kitchen. If your woodwork is scuffed or the paint is fading, consider some minor redecoration. Fresh wallpaper adds charm and value to your property. If you’re worried about time, hire professional cleaners or painters to get your house ready. Remember, prospects would rather see how great your home really looks than hear how great it could look "with a little work."
3. Check Faucets and Bulbs
   Dripping water rattles the nerves, discolors sinks, and suggests faulty or worn-out plumbing. Burned out bulbs or faulty wiring leave prospects in the dark. Don’t let little problems detract from what’s right with your home.
4. Don’t Shut Out a Sale
   If cabinets or closet doors stick in your home, you can be sure they will also stick in a prospect’s mind. Don’t try to explain away sticky situations when you can easily plane them away. A little effort on your part can smooth the way toward a closing.
5. Think Safety
   Homeowners learn to live with all kinds of self-set booby traps: roller skates on the stairs, festooned extension cords, slippery throw rugs and low hanging overhead lights. Make your residence as non-perilous as possible for uninitiated visitors.
6. Make Room for Space
   Remember, potential buyers are looking for more than just comfortable living space. They’re looking for storage space, too. Make sure your attic and basement are clean and free of unnecessary items.
7. Consider Your Closets
   The better organized a closet, the larger it appears. Now’s the time to box up those unwanted clothes and donate them to charity.
8. Make Your Bathroom Sparkle
   Bathrooms sell homes, so let them shine. Check and repair damaged or unsightly caulking in the tubs and showers. For added allure, display your best towels, mats, and shower curtains.
9. Create Dream Bedrooms
   Wake up prospects to the cozy comforts of your bedrooms. For a spacious look, get rid of excess furniture. Colorful bedspreads and fresh curtains are a must.
10. Open up in the Daytime
    Let the sun shine in! Pull back your curtains and drapes so prospects can see how bright and cheery your home is.
11. Lighten up at Night
    Turn on the excitement by turning on all your lights - both inside and outside - when showing your home in the evening. Lights add color and warmth, and make prospects feel welcome.
12. Avoid Crowd Scenes
    Potential buyers often feel like intruders when they enter a home filled with people. Rather than giving your house the attention it deserves, they're likely to hurry through. Keep the company present to a minimum.
13. Watch Your Pets
    Dogs and cats are great companions, but not when you're showing your home. Pets have a talent for getting underfoot. So do everybody a favor: Keep Kitty and Spot outside, or at least out of the way.
14. Think Volume
    Rock-and-roll will never die. But it might kill a real estate transaction. When it's time to show your home, it's time to turn down the stereo or TV.
15. Relax
    Be friendly, but don't try to force conversation. Prospects want to view your home with a minimum of distraction.
16. Don't Apologize
    No matter how humble your abode, never apologize for its shortcomings. If a prospect volunteers a derogatory comment about your home's appearance, let your experienced RE/MAX Associate handle the situation.
17. Keep a Low Profile
    Nobody knows your home as well as you do. But RE/MAX Sales Associates know buyers - what they need and what they want. Your RE/MAX Associate will have an easier time articulating the virtues of your home if you stay in the background.
18. Don't Turn Your Home into a Second-Hand Store
    When prospects come to view your home, don't distract them with offers to sell those furnishings you no longer need. You may lose the biggest sale of all.
19. Defer to Experience - It's the Experience®
    When prospects want to talk price, terms, or other real estate matters, let them speak to an expert - your RE/MAX Sales Associate.
20. Help Your Agent
    Your RE/MAX Associate will have an easier time selling your home if showings are scheduled through his or her office. You'll appreciate the results!