Can a real estate agent really help me in buying and selling property?

The answer is YES!

When you're ready to think about buying or selling your property, you need to ask yourself the following questions: Do you have the time, energy, sources of information, and contacts to do the job yourself? If you were one of the 'do-it-yourself' people, would the results be as good or better than they would be if you had professional assistance? Would it have gone smoother? Would it have given you more personal time? Would you have purchased for less, or sold for more, if a real estate agent was involved? Read the following information and learn how a real estate agent can help you understand everything you need to know about a real estate transaction.

The Buying Process

The process of buying a home or investment generally starts with determining your buying power; that is, your financial reserves plus your borrowing capacity. If you give a real estate agent some basic information about your available savings, income and current debt, they can refer you to lenders best qualified to help you. Most lenders -- banks and mortgage companies -- offer limited choices.

Finding

Once you know how much you can and want to invest, the next step is to find the properties that most nearly fit your needs. This is the time to choose a real estate licensee. When picking a real estate agent look for one who is also a REALTOR®. A REALTOR® is a member of the NATIONAL ASSOCIATION OF REALTORS®, a real estate trade association, and all members agree to abide by a 17 article Code of Ethics.

A REALTOR® has many resources to assist you in that search. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your agent to find all available properties.

Selecting

Your job is to make the final selection of the right property for you. This is when excitement and emotion run high. Your real estate agent can assist you in the selection process by providing objective information about each property. Agents who are REALTORS® have access to a variety of informational resources. REALTORS® can provide local community information on utilities, zoning. schools, etc. There are two things you'll want to know. First, will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?

Negotiating

There are a myriad of negotiating factors, including, but not limited to price, financing, terms, date of possession, and often the inclusion or exclusion of repairs and furnishings or equipment. The purchase agreement should also provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.

Due Diligence

With a negotiated agreement in hand, it is time to complete the evaluation of the property. Depending on the area and property, this could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests, just to name a few.

Your agent can assist you in finding qualified responsible professionals to do most of these investigations and provide you with written reports. You will also want to see a preliminary report on the title of the property. Title indicates ownership of property and can be mired in confusing status of past owners or rights of access. The title to most properties will have some limitations; for example, easements (access rights) for utilities. Your agent, title company or attorney can help you resolve issues that might cause problems at a later date.

Financing

As soon as you are reasonably sure the property is right for you, the process of obtaining financing begins. Your agent can help you in understanding different financing options and in identifying qualified lenders.

Closing or Settlement

Finally, there is the closing, or settlement, as it is known in different parts of the country. Every area has its own unique customs. In some areas, the title or escrow company will handle this process. In other parts of the country, an attorney does it all. Again, your real estate agent can guide you through this process and make sure everything flows together smoothly.

Selling Real Estate

Pricing
This process generally begins with a determination of a reasonable asking price. Your real estate agent can give you up-to-date information on what is happening in the marketplace and the price, financing, terms, and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle.

Marketing
The next step is a marketing plan. Often, your agent can recommend repairs or cosmetic work that will significantly enhance the salability of the property. Marketing includes the exposure of your property to other real estate agents and the public.

In many markets across the country, over 50% of real estate sales are cooperative sales; that is, a real estate agent other than yours brings in the buyer. Your agent acts as the marketing coordinator, disbursing information about your property to other real estate agents through a Multiple Listing Service or other cooperative marketing networks, open houses for agents, etc. The REALTOR® Code of Ethics requires REALTORS® to utilize these cooperative relationships when they benefit their clients.

Advertising is part of marketing.

The choice of media and frequency of advertising depends a lot on the property and specific market. For example, in some areas, newspaper advertising generates phone calls to the real estate office but statistically has minimum effectiveness in selling a specific property. Overexposure of a property in any media may give a buyer the impression the property is distressed or the seller is desperate. Your real estate agent will know when, where and how to advertise your property.

There is a misconception that advertising sells real estate. The NATIONAL ASSOCIATION OF REALTORS® studies show that 82% of real estate sales are the result of agent contacts through previous clients, referrals, friends and family, and personal contacts.

Security

When the property is marketed with the agent help, you do not have to allow strangers into your home. Agents will generally pre-screen and accompany qualified prospects through your property.

Negotiating

The negotiation process deals with much the same issues for both buyers and sellers, as noted above under the buying process. Your agent can help you objectively evaluate every buyer's proposal without compromising your marketing position. This initial agreement is only the beginning of a process of appraisals, inspections, and financing -- a lot of possible pitfalls. Your agent can help you write a legally binding, win-win agreement that will be more likely to make it through the process.

Monitoring, Renegotiating and Closing

Between the initial sales agreement and closing (or settlement), questions may arise. For example, unexpected repairs are required to obtain financing or a cloud in the title is discovered. The required paperwork alone is overwhelming for most sellers. Your agent is the best person to objectively help you resolve these issues and move the transaction to closing (or settlement).

How Do Real Estate Agents Get Paid?

Real estate agents or brokers are generally paid through the sales commission paid by the seller when a transaction closes. Agents have expenses and financial obligations just like you, so it will be to your mutual benefit if you choose a real estate agent and stick with that person. The agent will respect your loyalty and respond with a sincere commitment to you.

Why A REALTOR®?

All real estate licensees are not the same. Only real estate licensees who are members of the NATIONAL ASSOCIATION OF REALTORS® are properly called REALTORS®. They proudly display the REALTOR "®" logo on the business card or other marketing and sales literature. REALTORS® are committed to treat all parties to a transaction honestly. REALTORS® subscribe to a strict code of ethics and are expected to maintain a higher level of knowledge of the process of buying and selling real estate. An independent survey reports that 84% of home buyers would use the same REALTOR® again.

Using a REALTOR®

You Be the Judge!

Real Estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions today usually exceed $100,000. If you had a $100,000 income tax problem, would you attempt to deal with it without the help of a CPA? If you had a $100,000 legal question, would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would be foolish to consider a deal in real estate without the professional assistance of a REALTOR®!

Click Here To Meet a Real Estate Latino's Certified Real Estate Professional

Home Buying Glossary

Agent - A person acting on behalf of another, called the principal.

Appraisal - An expert judgment or estimate of the quality or value of real estate as of a given date.

Assessed Value - The valuation placed upon property by a public tax assessor as the basis for taxes.

Bill of Sale - An instrument which transfers title to personal property (chattels); a "Deed" transfers'' real property.

CC& R''s: Covenants, conditions and restrictions- A document that controls the use, requirements and restrictions of a property.

Certificate of Reasonable Value (CRV) - A document that establishes the maximum value and loan amount for a VA guaranteed mortgage.

Certificate of Title - A document signed by a title examiner or attorney stating that the seller has a good marketable and insurable title.

Closing Statement (Settlement) - The computation of financial adjustments between buyer and seller as of the day of closing a sale to determine the net amount of money which buyer must pay to seller to complete purchase of the real estate and seller''s net proceeds. Also, "settlement sheets," "HUD-1."

Commission - Payment to a real estate broker for services performed.

Condominium - A form of real estate ownership where the owner receives title to a particular unit and has a proportionate interest in certain common areas. The unit itself is generally a separately owned space whose interior surfaces (walls, floors and ceilings) serve as its boundaries.

Contingency - A condition that must be satisfied before a contract is binding. For instance, a sales agreement may be contingent upon the buyer obtaining financing.

Deed - A formal written instrument by which title to real property is transferred from one owner to another. Also, "conveyance".

Deed of Trust - Like a mortgage, a security instrument whereby real property is given as security for a debt. However, in a deed of trust there are three parties to the instrument; the borrower, the trustee, and the lender (or beneficiary).

Due-On-Sale Clause - An acceleration clause that requires full payment of a mortgage or deed of trust when the secured property changes ownership.

Earnest Money - The portion of the down payment delivered to the seller or escrow agent by the purchaser with a written offer as evidence of good faith.

Equity - The interest or value which owner has in real estate over and above the debts against it. (Sales Price - Mortgage Balance - Equity).

Escrow- A procedure in which a third party acts as a stakeholder for both the buyer and the seller, carrying out both parties'' instructions and assumes responsibility for handling all of the paperwork and distribution of funds.

Federal National Mortgage Association (FNMA) - Popularly known as Fannie Mae. A privately owned corporation created by Congress to support the secondary mortgage market. It purchases and sells residential mortgages insured by FHA or guaranteed by the VA, as well as conventional home mortgages.

Fee Simple - An estate in which the owner has unrestricted power to dispose of the property as he wishes, including leaving by will or inheritance. It is the greatest interest a person can have in real estate.

Fixture - What was formerly personal property, which is now permanently attached to real property and goes with the property when it is sold.

Graduated Payment Mortgage - A residential mortgage with monthly payments that start at a low level and increase at a predetermined rate.

Hazard Insurance - Protects against damages caused to property by fire, windstorms, and other common hazards.

Home Inspection Report - A qualified inspector''s report on a property''s overall condition. The report usually includes an evaluation of both the structure and mechanical systems.

Home Warranty Plan - Protection against failure of mechanical systems within the property. Usually includes plumbing, electrical, heating systems and installed appliances.

Joint Tenancy - An equal undivided ownership of property by two or more persons. Upon the death of any owner, the survivors take the decedent''s interest in the property.

Lien - A legal hold or claim on property as security for a debt or charge.

Listing Contract - Between a home owner (as principal) and a licensed real estate broker (as agent) by which the broker is employed to market the real estate within a given time for which service the owner agrees to pay a commission. Also, "listing agreement".

Loan Commitment - A written promise to make a loan for a specified amount on specified terms.

Loan-To-Value Ratio - The relationship between the amount of the mortgage and the appraised value of the property, expressed as a percentage of the appraised value.

Market Value - The highest price which a buyer, ready, willing and able but not compelled to buy, would pay, and the lowest price a seller, ready, willing and able but, not compelled to sell, would accept. Basis for "listing price'', or "asking price".

Mortgage - A lien or claim against real property given by the buyer to the lender as security for money borrowed.

Mortgage Life Insurance - A type of term life insurance often bought by mortgagors. The coverage decreases as the mortgage balance declines. If the borrower dies while the policy is in force, the debt is automatically covered by insurance proceeds.

Mortgage Note - A written agreement to repay a loan. The agreement is secured by a mortgage, serves as proof of indebtedness, and states the manner in which it shall be paid. Also, "deed of trust note."

Negative Amortization - Negative amortization occurs when monthly payments fail to cover the interest cost. The interest that isn''t covered is added to the unpaid principal balance, which means that even after several payments you could owe more than you did at the beginning of the loan. Negative amortization can occur when an ARM has a payment cap that results in monthly payments that aren''t high enough to cover the interest.

Origination Fee - A fee or charge for work involved in evaluating, preparing, and submitting a proposed mortgage loan. The fee is limited to 1 percent of FHA and VA loans.

PITI - Principal, interest, taxes and insurance.

Planned Unit Development (PUD) - A zoning designation for property developed at the same or slightly greater overall density than conventional development, sometimes with improvements clustered between open, common areas. Uses may be residential, commercial or industrial.

Point - An amount equal to 1 percent of the principal amount of the investment or note. The lender assesses loan discount points at closing to increase the yield on the mortgage to a position competitive with other types of investments.

Prepayment Penalty - A fee charged to a mortgagor who pays a loan before it is due. Not allowed for FHA or VA loans.

Principal - This word has several meanings:
a) to denote the most important;
b) a capital sum lent on interest;
c) one who appoints an agent to act on their behalf;
d) either party to a contract.

Private Mortgage Insurance (PMI) - Insurance written by a private company protecting the lender against loss if the borrower defaults on the mortgage. Prorate - To allocate between seller and buyer their proportionate share of an obligation paid or due. For example a prorate on real property taxes, fire insurance, or condominium fee.

Purchase Agreement - A written document in which the purchaser agrees to buy certain real estate and the seller agrees to sell under stated terms and conditions. Also called a sales contract, earnest money contract, or agreement for sale.

Realtor - A real estate broker or associate active in a local real estate board affiliated with the National Association of Realtors¿.

Regulation Z - The set of rules governing consumer lending issued by the Federal Reserve Board of Governors in accordance with the Consumer Protection act.

Survey - A map or plat made by a licensed surveyor showing the results of measuring the land with its elevations, improvements, boundaries, and its relationship to surrounding tracts of land. A survey is often required by the lender to assure a building is actually sited on the land according to its legal description.

Tenancy in Common - A type of joint ownership of property by two or more persons with no right of survivorship.

Title Insurance - Protects lenders and homeowners against loss of their interest in property due to legal defects in title.

Title Search or Examination - A check of the title records, generally at the local courthouse, to make sure the buyer is purchasing a house from the legal owner and there are no liens, overdue special assessments, or other claims.

Transfer tax - State tax, local tax (where applicable) and tax stamps (in some areas) required by law when title passes from one owner to another.

For More Tips&Questions go to RealEstateLatino.com

Questions You Should Ask Your Lender When Shopping For a Loan


1.Are both fixed-rate and adjustable mortgage loans available?

2.What is the interest rate?

3.How long can I "lock-in" the financing at the current interest rate?

4.Is a float down lock available in case rates drop after I have locked in?

5.What are the other fees a lender may charge me in conjunction with my loan?

6.Are funds for a second mortgage available?

7.On adjustable loans, how often will the interest rate be adjusted?

8.Is there a maximum limit on each rate change?

9.How often will the monthly payment be adjusted?

10.Is there a ceiling on payment adjustments?

11.Can the term of the loan be extended?

12.What is the maximum rate that can be charged over the life of the loan?

13.Is there any potential for negative amortization?

14.Is there a pre-payment penalty clause? This involves extra charges for paying off the loan before maturity. About 80% of all loans in the United States are paid off early.

15.What is the "grace" period?

16.How late can a monthly payment be made before a late charge is assessed?

17.What will happen if a payment is missed?

18.If you sell your house, will the new buyer (if he/she qualifies) be able to assume your mortgage at the same interest rate?

19.Do you have to pay "points" to get your new mortgage?

20.Usually lenders charge points for the cost of giving you a mortgage loan. A "point" is 1% of the loan.

21.Will the lender require mortgage insurance?

22.Is the loan serviced locally or is the servicing sold? Ask for a written "good faith deposit".

More Tips and Advice At RealEstateLatino.com

Senate approves home tax credit extension

The move by Senate Majority Leader Harry Reid would give buyers until Sept. 30 to complete their purchases and qualify for tax credits of up to $8,000.

Under the current terms, buyers had until April 30 to get a signed sales contract and until June 30 to complete the sale.

The proposal would only allow people who already have signed contracts to finish at the later date. About 180,000 homebuyers who already signed purchase agreements would otherwise miss the deadline.

Prevent Damage from Carpenter Ants

Carpenter ants damage wood by hollowing it out for nesting. Unlike termites, wood damaged by carpenter ants does not contain mud-like debris. Instead, carpenter ant nests have a smooth, sandpapered appearance. Carpenter ants typically establish colonies in a moist environment, but will nest in dry wood. Moist areas around windows, leaky roof and chimneys, bathtubs and sinks, and exterior areas that are in contact with soil are a prime breeding ground.

Control carpenter ants by destroying their nests, and eliminating conditions that encourage colonies to nest. Often, ants found inside the home may actually nest outdoors. Old stumps, untreated landscaping timber, and dead or dying trees are common nesting grounds. Before the ants move indoors as colonies expand, remove potential nesting areas near the house.

Routine household maintenance will go a long way in preventing carpenter ant infestation. Follow these tips to reduce the likelihood of infestation:

-Ants are attracted to moist wood. Repair roof and plumbing leaks, leaky chimney flashing, overflowing gutters and all other water infiltration problems to avoid creating a tempting nesting area.

-Trim trees and bushes that touch a home's roofing and siding.

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Your Money Bus is coming to Jacksonville

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your financial future.

Get free professional advice, no strings attached.
Your Money Bus will be in town soon. Just bring your questions and concerns for a one-on-one consultation with a volunteer independent financial planner.

You can ask about budgeting, saving,reducing debt, investing and more. And, you'll receive a complimentary toolkit with articles,workbooks and interactive tools to help you plan for your future. The bus will be stopping at:


Free Advice Event
Gateway WorkSource Center
(in Gateway Town Center)
5000-2 Norwood Avenue
Jacksonville, FL 32208
February 19th - 9:00-5:00 p.m.
February 20th - 9:00-1:00 p.m.


To make an appointment

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What to ASK when meeting with your potential lender

The following are some good questions to discuss with your lender when applying for a home loan. If you go into the interview with your lender with the aptitude that you are hiring a services rather that the loan officer is doing you a favor, you might be able to get the best deal for your mortgage.

1.Are both fixed-rate and adjustable mortgage loans available?
2.What is the interest rate?
3.How long can I "lock-in" the financing at the current interest rate?
4.Is a float down lock available in case rates drop after I have locked in?
5.What are the other fees a lender may charge me in conjunction with my loan?
6.Are funds for a second mortgage available?
7.On adjustable loans, how often will the interest rate be adjusted?
8.Is there a maximum limit on each rate change?
9.How often will the monthly payment be adjusted?
10.Is there a ceiling on payment adjustments?
11.Can the term of the loan be extended?
12.What is the maximum rate that can be charged over the life of the loan?
13.Is there any potential for negative amortization?
14.Is there a pre-payment penalty clause? This involves extra charges for paying off the loan before maturity. About 80% of all loans in the United States are paid off early.
15.What is the "grace" period?
16.How late can a monthly payment be made before a late charge is assessed?
17.What will happen if a payment is missed?
18.If you sell your house, will the new buyer (if he/she qualifies) be able to assume your mortgage at the same interest rate?
19.Do you have to pay "points" to get your new mortgage?
20.Usually lenders charge points for the cost of giving you a mortgage loan. A "point" is 1% of the loan.
21.Will the lender require mortgage insurance?
22.Is the loan serviced locally or is the servicing sold? Ask for a written "good faith deposit".

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Popular Home Loan Programs For First Home Buyers

There are many times of financing options available to home buyers. Here are some of the most common mortgage products on the current real estate market: For more information or to apply for a mortgage visit. www.realestatelatino.com

Fixed Rate Mortgage
The interest rate on a fixed rate mortgage stays the same throughout the term of the loan, usually 15 or 30 years. This means the principal interest portion of your payment remains the same. Payments are stable but initial rates tend to be higher than adjustable rate loans and often cannot be assumed by a subsequent buyer.

FHA Loan
FHA does not lend money or make a loan; rather, it insures loans. The down payment can be as low as 3.5%. Either buyer or seller may pay discount points. FHA charges a 2.25% up front Mortgage Insurance Premium (or as little as 2% for a first time home buyer) that can be financed in the mortgage amount or paid in cash (no premium is required for condominiums). The borrower must also pay an annual Mortgage Insurance Premium or .5%, which is collected monthly.

VA Loan
The VA does not lend money; it guarantees a portion of the loan so that lenders who originate the loan feel comfortable with their risk. Qualified veterans can obtain loans with no down payment (Click Here For Local VA Mortgage Limit). VA-guaranteed loans can be combined with second mortgages and are assumable upon qualifying by any future buyer.

HomePath® Renovation Mortgage Financing, a Great Opportunity for a Home Buyers

By Bill Arce.
Fannie Mae offers buyers an opportunity to purchase their primary home in need of renovation to include the rehab cost in the home loan. This special financing is available if purchase a Fannie Mae home, make sure your real estate agent and lender are aware of this program.

This program is available only on homes you make your primary residence and offers these benefits:

•Financing to fund both your purchase and light renovation
•Low down payment and flexible mortgage terms (fixed-rate or adjustable-rate)
•Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit, state or local government, or employer
•No mortgage insurance*
•HomePath Renovation Mortgage financing is available from several lenders, make sure to ask for a bilingual representative.

More Free Tips and Advise @ www.RealEstateLatino.com

$8,000.00 Federal Tax Credit-What You Need To Know

The First-Time Homebuyer Federal Income Tax Credit-What You Need To Know

View more documents from RealEstateLatino.com.

The First Time Home buyers Tax Credit of $8000 can be used as a down payment

Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, said that the Federal Housing Administration is going to permit its lenders to allow homeowners to use the $8,000 tax credit as a down payment.

Marketing the tax credit to the Latino community can be a great way to generate new leads. Here are some ideas of what you can do to attract potential homebuyers.

First: I would include a bilingual version of the tax credit program on my website homepage. As everything that has anything to do with government, this program is not exempt of red tape and confusion. So why not prepare a short tax credit fact sheet in English and Spanish for your visitors. DO NOT forget to make easy for them to ask you questions about the program, that why you will be able to generate and later convert leads into prospective.

Second: Create a bilingual flyer highlighting FAQ about the program and blast Wal-Marts, local business, homeownership fairs and apartment complexes. Make sure to refer readers to your website for more information and leave your cell number and email for easy contact.

Lastly: I will blast the information online at the local level. Create a bilingual Google pay-per-click campaign targeting first time homebuyers in your town. Use keyword like “tax credit program” “first time home buyer” “government assistance”. Utilized the free services of Craiglist.org, post a new ad every couple days in the real estate and finance section of your home town, this will help you drive traffic to your website. Write a blog, if you have not done so; create a blog by using some free platform like Blogger.com and wordpress.com

Just keep in mind that if your strategy is educate and inform potential leads, they will appreciate and eventually would love the opportunity to work with you and find a home together.

Using First-Time Homebuyer Tax Credits

The American Recovery and Reinvestment Act of 2009 (Recovery Act) provides for as much as an $8000 tax credit to qualified first-time homebuyers. FHA supports this important initiative to promote homeownership…

To read this mortgagee letter & any attachments in their entirety, please visit: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/ view the 2009 letters & click on the letter of your choice. Mortgagee Letters from previous years can be found on the same page.

Q: What is the status of AmeriDream's lawsuit vs. HUD and the agency's proposed rule that will eliminate down payment assistance?

A: There have been two significant events with regard to HUD’s proposed rule.

First, HUD voluntarily agreed to defer the effectiveness of the Regulation, as to AmeriDream only based upon the agreed to court schedule.

Second, the judge presiding over this litigation issued an injunction preventing the regulation from taking effect and stated that AmeriDream's arguments that the Regulation violates the APA are, "substantially likely to succeed on the merits."

As the Gold Standard for down payment assistance, AmeriDream remains committed to continue to fight the HUD Rule and to continue its mission to help individuals and families that are in need of a DPA program. AmeriDream also remains committed to keeping you aware of the latest news and information regarding the HUD Rule on DPA. www.ameridream.org.

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