12 Questions to Ask When Choosing a REALTOR®

1. How long have you been in residential real estate sales? Is it your full-time job? While experience is no guarantee of skill, real estate, like many other professions, is mostly learned on the job.

2. What designations do you hold? Designations such as GRI and CRS, which require that agents take additional, specialized real estate training, are held by only about one-quarter of real estate practitioners.

3. How many homes did you and your company sell last year?

4. How many days did it take you to sell the average home? How did that compare to the overall market?

5. How close to the initial asking prices of the homes you sold were the final sale prices?

6. What types of specific marketing systems and approaches will you use to sell my home? Look for someone who has aggressive, innovative approaches, not just someone who’s going to put a sign in the yard and hope for the best.

7. Will you represent me exclusively, or will you represent both the buyer and the seller in the transaction? While it’s usually legal to represent both parties in a transaction, it’s important to understand where the agent’s obligations lie. A good agent will explain the agency relationship to you and describe the rights of each party. It’s also possible to insist that the agent represent you exclusively.

8. Can you recommend service providers who can assist me in obtaining a mortgage, making repairs on my home, and other things I need done? Keep in mind here that agents should generally recommend more than one provider and should tell you if they receive any compensation from any provider.

9. What type of support and supervision does your brokerage office provide to you? Having resources such as in-house support staff, access to a real estate attorney, or assistance with technology can help an agent sell your home.

10. What’s your business philosophy? While there’s no right answer to this question, the response will help you assess what’s important to the agent—fast sales, service, etc.—and determine how closely the agent’s goals and business emphasis mesh with your own.

11. How will you keep me informed about the progress of my transaction? How frequently? Using what media? Again, this is not a question with a correct answer, but that one reflects your desires. Do you want updates twice a week or don’t want to be bothered unless there’s a hot prospect? Do you prefer phone, e-mail, or a personal visit?

12. Could you please give me the names and phone numbers of your three most recent clients?

8 Ways to Improve Your Credit

Credit scores, along with your overall income and debt, are a big factor in determining if you’ll qualify for a loan and what loan terms you’ll be able to qualify for.

1.      Check for and correct errors in your credit report. Mistakes happen, and you could be paying for someone else’s poor financial management.

2.      Pay down credit card bills. If possible, pay off the entire balance every month. However, transferring credit card debt from one card to another could lower your score.

3.      Don’t charge your credit cards to the maximum limit.

4.      Wait 12 months after credit difficulties to apply for a mortgage. You’re penalized less for problems after a year.

5.      Don’t purchase big-ticket items for your new home on credit cards until after the loan is approved. The amounts will add to your debt.

6.      Don’t open new credit card accounts before applying for a mortgage. Having too much available credit can lower your score.

7.      Shop for mortgage rates all at once. Too many credit applications can lower your score, but multiple inquiries from the same type of lender are counted as one inquiry if submitted over a short period of time.

8.      Avoid finance companies. Even if you pay the loan on time, the interest is high and it will probably be considered a sign of poor credit management.

10 Ways to Lower Your Homeowners Insurance Costs

1.            Raise your deductible. If you can afford to pay more toward a loss that occurs, your premiums will be lower.

2.            Buy your homeowners and auto policies from the same company. You’ll usually qualify for a discount. But make sure that the savings really yields the lowest price.

3.            Make your home less susceptible to damage. Keep roofs and drains in good repair. Retrofit your house to protect against natural disasters common to your area.

4.            Keep your home safer. Install smoke detectors, burglar alarms, and dead-bolt locks. All of these will usually qualify for a discount.

5.            Be sure you insure your house for the correct amount. Remember, you’re covering replacement cost, not market value.

6.            Ask about other discounts. For example, retirees who are home more than working people may qualify for a discount on theft insurance.

7.            Stay with the same insurer. Especially in today’s tight insurance market, your current vendor is more likely to give you a good price.

8.            See if you belong to any groups—associations, alumni groups—that offer lower insurance rates.

9.            Review your policy limits and the value of your home and possessions annually. Some items depreciate and may not need as much coverage.

10.        See if there’s a government-backed insurance plan. In some high-risk areas, such as the coasts, federal or state governments may back plans to lower rates. Ask your agent.

10 Questions to Ask the Condo Board

Before you buy, contact the condo board with the following questions. In the process, you’ll learn how responsive and organized its members are. You’ll also be alerted to potential problems with the property.

1. What percentage of units is owner-occupied? What percentage is tenant-occupied?

Generally, the higher the percentage of owner-occupied units, the more marketable the units will be at resale.

2. What covenants, bylaws, and restrictions govern the property? What grandfather clauses are in place?

You may find, for instance, that those who buy a property after a certain date can’t rent out their units, but buyers who bought earlier can. Ask for a copy of the bylaws to determine if you can live within them. And have an attorney review    property docs, including the master deed, for you.

3. How much does the association keep in reserve?

Plus, find out how that money is being invested.

4. Are association assessments keeping pace with the annual rate of inflation?

Smart boards raise assessments a certain percentage each year to build reserves to fund future repairs. To determine if the assessment is reasonable, compare the rate to others in the area.

5. What does and doesn’t the assessment cover?

Does the assessment include common-area maintenance, recreational facilities, trash collection, and snow removal?

6. What special assessments have been mandated in the past five years? How much was each owner responsible for?

Some special assessments are unavoidable. But repeated, expensive assessments could be a red flag about the condition of the building or the board’s fiscal policy.

7. How much turnover occurs in the building?

This will tell you if residents are generally happy with the building. According to research by the NATIONAL ASSOCIATION OF REALTORS®, owners of condos in two-to-four unit buildings stay for a median of five years, and owners of condos in a building with five or more units stay for a median of four years.

8. Is the condo building in litigation?

This is never a good sign. If the builders or home owners are involved in a lawsuit, reserves can be depleted quickly.

9. Is the developer reputable?

Find out what other projects the developer has built and visit one if you can. Ask residents about their perceptions. Request an engineer’s report for developments that have been reconverted from other uses to determine what shape the building is in. If the roof, windows, and bricks aren’t in good repair, they become your problem once you buy.

10. Are multiple associations involved in the property?

In very large developments, umbrella associations, as well as the smaller association into which you’re buying, may require separate assessments.

Important Post-Closing Tips After the Purchase of Your New Home

1.         Your first mortgage payment slip is included in your packet provided by the title company, in case you don’t receive it from the lender by the time the payment is due.

2.         If you would like to set up automatic payments for your mortgage, do so through your bank or the mortgage company.  Be sure to verify whether or not there is a charge.  Do not sign up for any “Payment Accelerator” programs.

3.         At some point, your loan may be sold to another company.  You will receive a “Goodbye” letter from your current company and a “Hello” letter from the new company.  If you don’t receive both letters, call your original lender to verify.

4.         You will be receiving mailers regarding life insurance connected to your property.  THROW THEM AWAY!

5.         Your residential service contract information will be mailed to you within 30 days.  If you do not receive it, call your service company to request it.  The number will be in the closing packet provided by the title company.

6.         Always call your residential service contract provider before calling a  contractor.  Many common issues are covered under your policy.  The provider will not reimburse you for any expenses.

7.         Your title policy and warranty deed will be mailed to you.  Please do not confuse it with junk mail.

8.         It is recommended that you have all your locks rekeyed.  Many locksmiths will give you a discount for having all locks done at the same time.

9.         If your new home shares a community mailbox, your will need to take a copy of your signed settlement statement from closing to the nearest post office (call ahead to confirm correct location) to have the locks rekeyed and to learn which box is yours.

10.       Always call us at 512-532-5005 if you have any questions or need a referral.  Often we can answer your questions immediately and save you time and energy.