Real Estate 101

Real Estate 101

REAL ESTATE 101 – What every savvy homeowner should know

Real Estate Basics

  WHAT IS THE DIFFERENCE BETWEEN A BUYER’S AND SELLER’S AGENCY?

In the majority of home sale transactions there are two agents.

 

  A BUYER’S AGENT

The agent that has drove the buyer around trying to find them their perfect home.  The agent is contracted to find the buyer the best deal, help to
negotiate  the best price and represent the buyer in all forms of the transaction.

 

A SELLER’S AGENT

(Listing Agent) – The agent that lists and markets your home!

WHO PAYS THE BUYER’S AGENT?

With a standard listing the SELLER’S AGENT pays the Buyer’s agent.

The MLS is a database of all homes for sale (except for “For Sale by Owner” homes).  This database has a search engine that can find homes by almost any criteria imaginable – for example 3 bed/2 bath ranches in a certain zip code or subdivision.  It is extremely helpful for agents trying to match specific criteria for a buyer.

 

HOW DOES “DAYS ON MARKET” AFFECT A LISTING?

Days on market accumulate when you list a home with an agent.  Your home is advertised to other agents on the MLS and every day it is advertised it accumulates another “DOM” – Day On Market.  Unfortunately days on market can hurt a listing.  An agent often thinks something must be wrong if a home has been on the market a long time.  Keep in mind when you list your home that your days on market are like gold!

 

OPEN HOUSES…..DO THEY WORK?

Open houses account for fewer than 2% of all home sales.  Some would argue that out of the less than 2% many would have sold to the same buyers anyway.  Agents use open houses to solicit and prospect for new customers.

 

HOW ACCURATE ARE APPRAISALS?

Appraisals are very accurate, however, appraisals obtained for refinancing occasionally reflect what the financing company is willing to lend based on the homeowner’s credit history.  If you have good credit and you are refinancing chances are good your appraisal will be high.  A “CMA” or comparative market analysis is an alternative and uses the same techniques appraisers use in obtaining fair market value (and best of all……it’s free!)

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