The Ideal Buying or Selling Experience

Buying or selling a house is a very stressful job. There are lots of things to do. Things that need to be considered. In the Philippines, the buying or selling process is very straightforward. If you are a buyer, you look for a house for sale, communicate with the seller, negotiate for the price, if both parties agreed, seller will give the keys to the buyer and the title, in return, buyer will give the money or check to the seller.

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In the US, it is different. Buyer searches for a property through various portals or listing sites. Then when he gets pre-approved for a loan or once he has obtained proof of funds, buyer needs an agent to represent him. Usually, seller’s agent and buyer’s agent will communicate. There will be exchange of offers and counter offers till both parties agree. If both agree, escrow phase begins. Then escrow closes once a new deed is recorded in the buyer’s name. On the seller’s perspective, the seller signs an exclusivity agreement after contacting an agent. Title search, property inspection and CMA report will be provided by the seller. Afterwards, the agent of the seller lists the property on the MLS and other listing sites. Then the agent of the buyer will communicate with the seller’s agent. If both parties agree, they will enter the escrow phase and same procedure will happen.

It is complicated, but if you will look at it, it makes a lot of sense. Having an agent is much better as they will be the one to do all the transactions for you. Question is, how can the buying or selling process be ideal? Here are some things that you need to ponder.

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For the buyer, you need to determine how much you can truly afford. Do not get a house that is beyond your means. You need to be pre-approved and decide which mortgage suits you the most. It is best if you will use fixed rate. You also need to think if you can pay your monthly mortgage in the long run. You can do it by computing for your monthly costs, tax, insurance estimates, HOA fees and maintenance cost. In that way, you will have an idea on how you can budget your money. Lastly, before looking for a house, make sure you know what you want. Looking for a house takes a long time especially if you don’t know what you want.

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On the seller’s side, the ideal process begins in the first part of the process. If you decide to sell your house, make sure that the house is free from repairs. Don’t wait for the inspection day wherein the buyer will go back to you and ask you to repair the damaged or broken part of your house. Remember, prevention is better than cure. Make sure you order a home warranty. It will be frustrating on the buyer’s end if he finds out that one of the appliances is not working a couple of days after moving in. He’s not gonna be happy shelling out a large amount of money if you can prevent it by getting a home warranty. Lastly, make sure that the selling price matches the worth of your property. If it’s overpriced, the transaction might be prolonged because, most likely, buyer will make a lot of demands.

If you follow these tips, for sure the stress when buying or selling a house will be minimized.

Benefits of Purchasing a Home Warranty

What is home warranty? Do we really need to purchase one? This is one of the talk about issues whether you are selling or buying a house. Do we really need to get one? What are the benefits of having one? This blog will give you a clear idea on why it is very important to get one whether you are a buyer or a seller.

First, let us define home warranty. According to hmsnational.com, home warranty is ‘covers the repair or replacement of the most frequent occurring breakdowns of home systems and appliances. Well, it is like a protection. You would want your home systems and appliances to be insured when your air conditioner , dishwasher or microwave stops working. Just remember, buying a home is a big investment, and maintaining can be expensive.

Again, keep in mind that when you are buying or selling a home, a home warranty is an excellent investment. Don’t ever think that it is just an additional cost as it will really be useful in the future, more than you ever know. What are the benefits for sellers?

Make your home a preferred home. According to Gallup Poll, eight out of ten buyers prefer to buy a home covered by a home warranty plan. When a buyer just purchased a house, then suddenly he found out that the stove is not working, it would be a headache on the buyer’s end as he would need to shell out a big amount of money. Nobody wants that to happen.

You can attract first-time buyers. That’s right! First-time buyers would love to save a lot of money from high cost of repairing or replacing systems or appliances.

You can make your home stand out from other listings. Buyers would surely notice sellers who offer home warranty. A nice house and price are factors, but having a home warranty will make the buyers more interested with sellers got one.

There is no post-sale worries. As a seller, you may be able to sell the house to a potential buyer, but as a seller, you need to think about the future. Think of what will happen to the buyer if one of appliances becomes broken. The buyer will shed out a lot of money and it will be stressful on his or her end. Think not only about the money.

What about the benefits for the buyers and current homeowners?

You can save a lot of money. Like what they say, prevention is better than cure. Yes, you will shed out money on getting a home warranty, but it is much more expensive when some of the appliances needs to be replaced. Think about it.

Complete protection. Usually, home warranty companies provide complete service. They will repair or replace covered systems and appliances no matter the age, make or model. Cool isn’t it?

If you think about it, home warranty is beneficial for both buyers and sellers. It may not be beneficial at the time of purchase, but usually, in the future, it is very important especially if the appliances are too old already. Always think of home warranty as an investment.

How to Find a High-Quality Real Estate Agent

Looking for a real estate agent is not that difficult, but looking for a high-quality real estate agent is a different story. A real estate agent should be someone whom the client is really comfortable with. There are several things to be considered for a real estate agent to be of high-quality.

To get a real estate agent, you need to ask around. Ask your friends, neighbors or relatives if they know someone who is reliable and has a good reputation for being a real estate agent. A referral from the people who you know of is a sign that the agent is really good on what he does. You can also attend open houses to get to know some of the real estate agent. Talk to them and gauge them if he or she will fit in to your criteria. Do your research. Check if they have a good reputation and if they are really capable.

When you are talking to a real estate agent, you have to ask questions. You have need to know if the real estate agent has an active license. Of course, you need to know if the agent is legit and is not a bogus one. You would want someone who really knows what he’s doing, who can provide you insight and ideas on how to sell or buy a property. If they don’t have a license, then don’t deal with them. You can also ask if real estate is his full-time career, how much of their business comes from referrals or if they live in the area or not. In that way, you are aware of his background. You can also ask if he or she is a member of MLS or Multiple Listing Service. It is better if the agent is a member because he or she has access to all the listings in the area, including pictures and descriptions.

While talking to them, you should take down notes. You can’t remember all the information that the agent would give you. It is best to note everything and compare the information that you got from other real estate agents. Pick the agent that suits your need.

You should also consider what type of agent they are. There are two types of agents, buyer’s agent and seller’s agent. If you are going to sell your property, you need a seller’s agent, if you are buying a property, you need buyer’s agent. Don’t pick an agent who represents both sides. You need someone who is loyal and honest to you. There are agents who do both, so be careful as you don’t know what their real intentions are. Your selling or buying price must be strictly confidential between you and the agent only.

Choosing the right real estate agent when buying or selling a property is a must to be successful. They represent you during negotiations. It is critical for you to get a high-quality agent so you will feel confident in every step of the way.