The initial stage of purchasing a home can often seem the most daunting, as one is unsure of where to begin. A team of well-informed professionals can make the journey smoother, guiding you towards the perfect, long-term housing solution. Your real estate agent and mortgage lender should be knowledgeable, responsive, and committed to meeting your specific desires and necessities.
Begin with a Lender Understanding what you can afford is the first step towards realizing your dream home. As such, connecting with a lender should be your first move. By determining your budget range early on, you can save time and potentially, money. Also, having a pre-approval letter from a lender enhances your negotiation strength when offering bids, especially in larger cities and active markets. If your lender, like CrossCountry Mortgage, is local, they may provide a list of recommended real estate agents. If not, consider seeking advice from friends, family, or social media connections.
Real Estate Agents vs Realtors It's essential to distinguish between real estate agents and Realtors when seeking representation. These terms are often used synonymously, but they have specific qualifications. A real estate agent is a licensed professional who facilitates property transactions, often focusing on either listing or buying. A Realtor, conversely, is a real estate agent who is an active member of the National Association of Realtors (NAR) and adheres to a rigorous Code of Ethics. This adherence reassures buyers that the agent prioritizes their best interests.
The Right Questions to Ask Once you've identified potential agents that meet your preliminary criteria, consider conducting interviews to assess their approach, attitude, and readiness to serve your interests. Here are some essential questions to guide your discussion:
Tenure: How long have you been in the business? A novice agent might have more time to concentrate on your deal, but experience often breeds wisdom. A veteran agent will likely have encountered various challenges and know how to navigate them.
References: Can you provide a list of references? Long-standing agents usually have a robust list of references, but this doesn't preclude excellent service from a newcomer! Asking for references can lead the agent to discuss their customer service and past successes.
Workload: How many clients are you currently representing? Is the agent capable of dedicating the necessary time and mental energy to your home buying or selling process? You don't want to be overlooked amidst a sea of clients.
Experience: Have you sold homes in my current neighborhood or at my target listing price? A seasoned agent will have substantial knowledge about the advantages of your local area.
Strategy: What is your intended strategy to buy/sell my house? It's essential to understand your agent's commitment to finding a home that suits your needs as a buyer. As a seller, knowing their average listing-to-sales price ratio can be insightful. Ensure their selling strategy aligns with your financial goals; if not, reconsideration may be necessary.
Communication: How frequently will you update me? Open and regular communication is vital in the fast-paced housing market. An effective agent provides timely updates and clear explanations of the process stages.
Promotion: What marketing tools will you use to sell my home? With the influx of new generations of homebuyers, social media has become an increasingly popular platform. Is your agent equipped to promote your home across all relevant channels? If not, what other communication methods do they use?
Cost: How much do you charge? The fees of real estate agents are typically negotiable, generally ranging between 1% and 6% of the purchase price to represent one party in a transaction. The total percentage can vary; remember, top agents might charge more for their premium services.
- Trust Your Instincts Ultimately, it's crucial to choose an agent you trust and believe will be in your corner. However, always remember to:
- Scrutinize your contract
- Verify any references provided
- Take ample time to evaluate all options
Ready to embark on the home buying journey? Let us assist you! Contact a Mortgage Advisor today to commence the pre-approval process with CrossCountry Mortgage.
Unsure if something will affect your loan approval process?
Let us know your concerns as soon as possible and we will answer your questions!