Teaming up with a real estate agent and a mortgage lender will prove to be a couple of the best moves you make on your way to buying a home. This makes no difference if you are a first time home buyer or have purchased many homes throughout the years.
The real estate game plan seems to change every year. The Internet has made the competitive housing markets more competitive and the lending rules have changed more in the last few years, than in the last few decades. Other changes that take place annually occur within the real estate contract itself.
Consider this, if you purchase (or sell) one house a year, that will be approximately 15 less than an average real estate agent. A good agent like the one from Lake Norman homes for sale will sell more than that, but the point is, each transaction offers a number of variables that can get in the way of closing. And, if the contract falls apart, you will have spent several hundred to several thousand dollars on the failure of a contract to close.
With that in mind, the home buyers have a great opportunity when they hire a buyer’s agent. That is a real estate agent that will work specifically with you in the purchase of your home. Their fees are covered by the seller or the builder, so as a home buyer, their services are free. A home buyer would be absolutely foolish not to hire a buyer’s agent.
They can guide you on the entire process. This includes helping you to get more familiar with an area, as well as what you type of housing you can get for your money in that area. They will also sit by your side as they write the contract up, negotiate the deal, and then make sure the whole team is informed of the process.
That team is going to include your mortgage lender, home inspectors, repair service providers, land surveyors, title insurance people, home insurance agents, real estate attorneys and a home appraiser. Unless you know what each one of these people are going to need from you, and how to navigate through the process from contract to close, you should get yourself a real estate agent. And, again, for buyer’s, their services are free.
For the home seller, the cost runs into thousands of dollars in commission fees. There is no getting around that. Make sure to choose your home wisely, and it will have provided the cushion you need to make a profit and pay your future real estate agent’s commission fees when it is time to sell it.
The equity gain is the sweet spot. Ideally, you will purchase a house, and while you are paying down your mortgage note on it, the local market is bringing it up in value. Right in the middle of that is your equity. If you choose to purchase your home in a hot market area, the odds are very good that your value will rise faster than someone who purchased elsewhere.
For those in the hot market versus elsewhere, you will still both be paying down your mortgage rate at the same pace, but the hot market is moving your equity upwards much faster, and will deliver more cash back to you when it’s time to sell. Just keep that in mind as you decide where to place your housing dollar. It will make all the difference on your profit margin.