Greater Hartford Online

I received an email yesterday from someone I showed some houses to this past summer. I didn't remember him at first, but he had some questions about a property. I reached out to the listing agent for answers, and before she responded, I got another email from the guy today. " I didn't hear from you yet," he said. "Maybe I should call <another agent>." I remembered the guy now. He ran my wife and I around in circles getting forensic information about homes he found online for a week, then disappeared after looking at 2 homes with me. He had resurfaced, wanted me to do more research, and was already threatening to sack me.

So I sacked him.

Here's the point: real estate professionals aren't waiters. We don't do free research for just anyone who rings or emails us, and like any normal person, we are a bit sketchy about people that make us jump through hoops and then then disappear. That time we put in with those people could have been better spent with more sincere clients or our family.

On the other side of the coin, consumers are suspicious about agents. Too many people have a bad agent story to tell, so they often fend for themselves before investing time and hopes into another agent who will disappoint. It's like a big game of chicken. Niether side wants to devote time or commit to someone who might let them down. Here's what I say: If you, the consumer, want heat from that stove, how about throwing in a little wood.

Here are a few things home buyers can do to ensure that they get the most from an agent.

1. Get pre-approved. I shouldn't have to explain this. The housing industry has been bent like a pipe cleaner the past 18 months. A pre approval older than 90 days is worthless, and no pre-approval disqualifies you from being taken seriously by a seller. . It takes 10 minutes to speak with a lender and get a free updated pre-approval that shows you are ready, willing and able buyers.
2. Practice monogamy. Often in New York, some buyers think that they can get a batter deal if they work with more than 1 agent or deal directly with listing agents. Both of these notions are not only false, they can be expensive mistakes. If your agent catches on to the fact that you are playing the field, he'll start hedging his bets also, because nobody wants to devote time to a buyer file that might not close because you are looking in another town with another broker. 
3. Figure out what you want. Some agents get understandably frustrated when they spend a Sunday morning looking at town homes and Tuesday evening walking through Victorian colonials with the same buyer. I can almost intuit what some buyers want after spending time with them. However, if you are too whimsical, I might get the sense that we're just unlocking doors so you can satisfy curiosity. 
4. Return our calls. Sound familiar? Do you like it when you can't reach an agent for 3 days? It is the same here. Buyers who drop out and resurface without explanation are deemed unreliable and risky. It is only fair; stay in touch.  
5. Take our advice. The reason I give people 3 lawyers, 3 home inspectors, and 3 mortgage firms is not because I get a kickback, it is because I know that your union attorney won't return calls, an Internet bank can screw you, and your uncle Mel is not a licensed home inspector. I cannot compensate for their deficiencies. I am more effective with a cooperative team.  
6. Sign a buyer representation agreement. This tells the agent "you are hired. We won't use anyone else." You risk nothing by doing this, because if someone is hired, they can be fired if they stink. Establish performance criteria, have a 3 strikes and out rule or reasonable exit clause, and the agent is now at your service. 

Doing these things will make you hold your agent to a higher standard, and ensure that you get the most from them. Never forget that agents are human, just like you. An agent assured that they have a qualified, sincere, eager client can work confidently for that client. If they take you for granted, that can be grounds for firing them. With that leverage, everybody wins. 

 

 

• J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service. 
• Read my short sale blog here. 
• J. Philip Serves Briarcliff Manor, Ossining, Croton, the River Towns, Westchester County, and the bedroom counties of New York City.
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• I'm hiring agents. 
• Agents: Subscribe to the 40 Somethings Group. Reach Phil at (914) 723-8900.

All content/images, unless noted, are the property of J. Philip Faranda & may not be used without permission

Opportunity is knocking for those considering homeownership for the first time. Historically low interest rates, lower home prices in most markets and the first-time homebuyer tax credit - part of the American Recovery and Reinvestment Act of 2009 - brought first-timers to the market in droves throughout the year.

In fact, these consumers represented about half of home sales logged during 2009, according to the National Association of REALTORS®, a significant increase from historic levels. And the favorable conditions that prompted many of these first-time buyers are likely to continue. President Obama in early November signed into law a five-month extension of the first-time homebuyer tax credit of up to $8,000, as well as a new tax credit of up to $6,500 for existing homeowners who want to purchase a home to be their primary residence (see your real estate professional and tax advisor for details). Both credits will be available through April 30, 2010.

Today's opportunities aside, here are eight time-honored reasons why those considering homeownership for the first time should make their move.

1. Pride of Ownership - Owning your own home adds to your own sense of self-esteem and personal pride. The satisfaction that comes from feeling connected to the land you occupy and the home in which you live is ages-old. 

2. Security of Tenancy - With homeownership comes stability. When renting, you never know when you may have to move because of new ownership, rent increases or other changes. As a homeowner, you decide when and if you want to move.

3. Privacy - While there are usually some limits on the access landlords have to property, almost all landlords can access your property for necessary inspections and maintenance. For many renters, this lack of privacy is a significant discomfort. Homeowners on the other hand generally have much stronger property rights and experience an increase in perceived and actual privacy.

4. Decorating - Homeowners are free to decorate, remodel and accessorize a home any way they want. Not only do you have the right to make improvements, but the value of those improvements becomes yours as well. Having your living space and exteriors just the way you want them can significantly increase your satisfaction with your living environment.

5. Financial Predictability - When you buy a home with a fixed-rate mortgage, you have more predictability over future housing costs. Because your interest rate never changes, the amount of your payment never changes. Financial planning and credit are more easily managed with a fixed-rate mortgage compared to renting.

6. Building Equity - When you own your own home, you pay rent to yourself instead of a landlord. Most homeowners pay for their purchase by obtaining a mortgage. As you pay off that mortgage, your equity builds and you gain an increasingly larger share in a valuable asset. Over time, that asset can work for you in many ways, such as home equity lines of credit. And of course, a home is a wonderful asset to pass along in an estate.

7. Investment Appreciation - There are certainly no guarantees of property value appreciation. In the long-term, however, real estate valuations almost always increase. This means that when you decide to sell your home, its value may be significantly higher than when you purchased it. The difference in value is called appreciation. You can reinvest that appreciation in other real estate or you may wish to downsize and keep the value of that appreciation for retirement or other purposes.

8. Tax Benefits - In the United States, the cost of home mortgage interest and property taxes are usually tax-deductible. Depending on your circumstances, thousands of dollars in taxes can be saved each year. These tax savings are not limited to federal taxes either. Many states and localities either base their tax system on the federal system or offer similar incentives to homeownership. Some additional benefits are designed specifically for first-time homebuyers. (See your tax advisor for additional information.

If you still have doubts, contact a real estate professional in your community. He or she can answer questions you may have about homeownership and explain the buying process to you.

Brandi Wells can be reached at 404-402-1489. Prudential Colony Realty is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

Brandi Wells ~ Prudential Colony Realty ~ 404-402-1489 Direct ~ www.BrandiWells.com