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Questions to ask a Realtor or Lender before you sign anything!

Special Report: The 24 Dumbest Mistakes You Can Make When Buying or Selling

Each year, in our area, many home buyers & sellers make the same mistakes over and over again. When you add up these mistakes, they total more than a million dollars each year!

It pains me to watch these same common mistakes made over and over again, so I finally decided to do something about it — and thus this Special Report outlining the twenty four most common (and most expensive) mistakes made by home sellers & buyers each year.

Dumbest Mistake #1: Using a real estate agent instead of a Realtor

When you're looking for help buying or selling property, it's important to remember that the terms "real estate agent" and "Realtor" are not synonymous.

Realtors can provide an extra level of service, and to be a Realtor you must be a member of the National Association of Realtors (NAR). The equivalent organization in Canada is the Canadian Real Estate Association (CREA).

Both are non-profit trade organizations that promote real estate

information, education and professional standards. The National Association of Realtors also has earned a strong reputation for actively championing private property rights and working to make home ownership affordable and accessible.

The NAR and CREA members adhere to a strict code of ethics founded on the principle of providing fair and honest service to all consumers. Realtor business practices are monitored at local board levels. Arbitration and disciplinary systems are in place to address complaints from the public or board members. This local monitoring keeps Realtors directly accountable to the individual consumers they serve and therefore the consumer is more likely to find better service and accountability by using a Realtor.

Dumbest Mistake #2: Not Obtaining Written Pre-Approval For A New Home Loan For Your Next Home

Nothing is more heartbreaking than to sell your home and find your new dream home, only to find out that you can't obtain financing for the dream home.

A written pre-approval is a formal written promise by a home lender to make you a new home loan. It varies in cost and by who does it (I can do them for no charge), and sometimes this cost can be applied to your down payment when you get your new home. Do not confuse a verbal pre-qualification with a

formal written pre-approval. Verbal pre-qualifications are just that – verbal. They are not binding on the home lender. Many home buyers have received verbal pre-qualifications, only to later be denied a home loan and have their dream shattered.

Dumbest Mistake #3: Not planning your move earlier enough

Many buyers & sellers simply don't plan their move early enough and then feel totally overwhelmed at the time of moving out of the house. If you are able to move at any time of the year, don't wait until summer, the peak moving season. Consider also that the first and last few days of the month are extra busy. If you plan to sell your house, get it on the market as soon as possible. Keep a record of all expenses related to the move, some of which may be tax deductible.

Fill out the Personal Household Inventory for each room. This is important for establishing

the amount of declared valuation for the shipment and as a permanent inventory for insurance purposes. List, as nearly as possible, the year of purchase and original cost of each item. Attach any invoices or records of purchase to the completed inventory. Prepare a separate high value inventory if the shipment will contain articles of "extraordinary" value. The following list includes items that

might fall into this category:

Also, unless you have been given a binding moving estimate where a firm cost is established in advance, the exact cost of a move cannot be determined until after the shipment has been loaded on the van and weighed. The weight on which charges are based is calculated by weighing the van before and after loading. The total cost of the move will include transportation charges, any charges for declared valuation, plus charges for any extra services performed at your request. All of these charges are based on tariff rate schedules.

Dumbest Mistake #4: Using a "convenient" Realtor rather than using an experienced Realtor

There is a very big difference from a taxi cab driver and a limo driver. When working with a real estate agent, it's critical that you have full confidence in that agent's experience and education. A skilled, knowledgeable listing agent should be able to explain to you exactly why your home needs to be priced at a certain level _ compared to recent listings and sales of homes similar to yours. Experienced agents also know exactly what the current pool of buyers are looking for in relation to particular styles and price ranges of properties. A skilled agent can recommend changes that will enhance the sale ability of your home, thus increasing the price _ and/or decreasing the length of time before a sale.

A skilled, knowledgeable Buyers agent should be able to explain to you exactly what homes in your desired neighborhood have been selling , should take care in educating you as to the process of buying a home and aiding you in finding the best home loan for you needs. They should have a systemized way of getting you to see the homes you want to see. I have developed an Exclusive Home Finder Service that allow you to get information on homes, in the areas you want & in the way you want it - email, fax, postal mail, and telephone. If you would like to learn how my Home Finder Service works - just call my Home & Loan Finder Hotline at 883-3421, 24 hours a day, and enter ext. 2013.

It is important to find someone who has your best goals, needs & interests at heart and that is often very hard to find in both the Real Estate & Mortgage Industry. Most Realtors & Lenders spend 80% if their time looking for new business by placing ads, door knocking & holding weekend open houses. I have chose, instead , to work by referral only and on a Consultant basis. In exchange for high-level of service & devotion to you, I rely on you to refer me to your business associates, family & friends. This way I can focus 100% on your needs & not on where my future business is coming from.

As your Real Estate & Mortgage Consultant for life, my total focus is on fulfilling all of your real estate needs, 100% of my time & energy is devoted to providing world-class real estate & mortgage services & added value for you. My goal is to build strong lifetime relationships with my clients, one person at a time. I want to be your "Real Estate & Mortgage Consultant For Life." If you haven’t been referred to me, that’s OK. I welcome you as our Client & promise you will receive a level of service that is not offered anywhere else.

Home Buyers

Dumbest Mistake #5: Not knowing how much they can afford before they make an offer.

The easiest way to avoid this mistake is to get pre-approved for a mortgage by a lender so you know in advance exactly how much you can afford. Please keep in mind that Sellers are aware that such certificates are WORTHLESS, and here's why! None of the information has been verified! Unknown problems can surface for example: recorded judgments, child support payments due, glitches on the credit report (due to any number of reasons both accurately and inaccurately), down payment funds that have not been in the clients' bank account long enough, etc.

So the way to make a strong offer today is to get "pre-approved". This happens AFTER all information has been checked and verified. You are actually APPROVED for the loan and the only loose end is the appraisal on the property. This process takes anywhere from a few days to a few weeks depending on your situation.

It's VERY POWERFUL and a weapon we recommend all of our clients have in their negotiating arsenal. If you would like to listen to a free recorded message on the 5 Most Powerful Buying Strategies- Call our Home & Loan Finder Hotline at 883-3421 and key in ext. 5123.

Dumbest Mistake #6: Not realizing in advance who the real estate agent represents.

Most people think that the agent they are working with is working for them. But unless they are working as your buyer representative, they represent the seller. Make sure in advance what their policy is on Agency. My policy is to treat all Buyer Contacts as Prospective Buyer Clients, but this is very rare in our industry. Most agents kind of hap-hazardously dance around agency. Especially the agents that have them home listed for sale. Be very careful to disclose anything that could harm your negotiating position if you decide to buy the home. When the Seller lists his home, he usually consents to pay the fees of a Buyer’s Agent - so get the representation you deserve. It does not cost you a dime! If you would like to listen to a free recorded message on Buyer Agency 5223- Call our Home & Loan Finder Hotline at 883-3421 and key in ext.

Dumbest Mistake #7: Not realizing that the wrong mortgage can cost thousands of dollars in needless interest and taxes.

A good suggestion is to heck with your accountant before you make your final decision on which mortgage you are going to choose. Your CPA will be able to tell you what the long-term effects will be on your income. Make sure that your Bank or Mortgage Broker sits down and explains the mortgage process to you and what loans there are available to you. If you would like more information - Call our Home & Loan Finder Hotline & key in ext. 3003 to hear a free recorded message on our Exclusive, No-Obligation Home Loan Finder Service.

Dumbest Mistake #8: Not discovering hidden defects before they buy a home.

One of the most expensive mistakes is also one of the easiest to avoid, by having a professional pre-purchase home inspection. Don’t Forget about health and safety issues. You can hope that the Realtor is up front and discloses to you any problems with the property. The problems are going to be discovered anyway. A decade ago, health and safety issues were rarely a part of the typical real estate transaction. Today, however, it's common for inspections relating to health, safety, and even environmental concerns to be a part of most sales contracts. Moreover, in many states, the seller must disclose to the buyer any knowledge of existing property problems. In many cases, these issues have been or can be factored into the home's listing price.

Dumbest Mistake #9: Not knowing how much credit can affect their ability to buy or refinance a home.

Before you buy a home, many of the clouds on your credit history can be cleared up or even eliminated. Your mortgage professional can help you review and prepare your credit file in advance. If you would like to see how easy it is to get pre-approved for a loan, Call me at 883-3421, 24 hours a day and key in zero to leave a message for me and I will return your call within 48 hours & we can set up a time to meet and talk about your needs, goals and desires with your new home and loan purchase.

Home Sellers

Dumbest Mistake #10: Basing their asking price on needs or emotion rather than market value.

Many times, people make their pricing decisions based on how much they paid or invested into their home. This can be an expensive mistake.

Dumbest Mistake #11: Not knowing how to price your home to sell

Perhaps the most challenging aspect of selling a home is listing it at the correct price. It's one of several areas where the assistance of a skilled real estate agent can more than pay for itself. Listing the home too high can be as bad as too low. If the listing price is too high, you'll miss out on a percentage of buyer looking in the price range where your home should be. This is the flaw in thinking that you'll always have the opportunity to accept a lower offer. Chances are the offers won't even come in, because the buyers who would be most interested in your home have been scared off by the price and aren't even taking the time to look. By the time the price is corrected, you've already lost exposure to a large group of potential buyers. The listing price becomes even trickier to set when prices are quickly rising or falling. It's critical to be aware of where and how fast the market is moving _ both when setting the price and when negotiating an offer. Again, an experienced, well-trained agent is always in touch with market trends _ often even to a greater extent than appraisers, who typically focus on what a property is worth if sold as is, right now. 

***Keep this statistic in mind: On the average, buyers are comparing your home to fifteen to twenty other homes.

Dumbest Mistake #12: Failing to "showcase" their home.

First impressions are the most important. Experience shows that for every $100 in repairs that your home needs, a buyer will deduct $300_$500 from their offer. Thoroughly clean and prepare your home before you put it on the market if you want top dollar.

Dumbest Mistake #13: Complacent marketing when selling a home

When selling your home there are no guarantees that the ultimate buyer of your home will have simply walked through the front door. In many cases you may have to bring your home to the buyer. Effective marketing will help ensure that your property receives maximum exposure to attract a ready, willing and able buyer in the shortest period of time. Ask your Realtor to list for you all of the ways he/she intends to market your home and on what timeline.

Dumbest Mistake #14: Signing A Long-Term Listing Without A Written,

Specific, Performance Guaranty with no way out.

Many times, an agent has good intentions about marketing your house, but circumstances can change. Other real estate agents are taught by their brokers to take any listing for any price, in an effort to begin to "control the inventory." These agents seem genuine at first, but you never hear from them again.

Always protect yourself by making sure that you receive a written promise stating that you can cancel the listing, without charge, if specific written performance details are not adhered to by the broker.

Sellers who don't heed this advice sometimes wind up tying their home up for months on end, with absolutely no activity. Always protect yourself by getting a guaranty of specific performance with the right to cancel. I offer what I call an "Easy Exit" listing agreement, which gives you the right to cancel any time, for any reason whatsoever. That's how sure I am that you'll always be ecstatically happy with my services.

Dumbest Mistake #15: Choosing the wrong agent or choosing them for the wrong reasons.

Many homeowners list their home with the agent who works for the biggest company or has the most signs up around town. You need to choose the agent with the best marketing plan and track record to sell your home. Many agents only have a Marketing Plan that consists of the "4 P’s" - the Put up a sign, Put your home in the MLS, Place an ad and then Pray someone else will sell it. I have a very detailed marketing plan that is launched in phases and I have a very systematic approach to the way I do business, if you would like to learn more about the way I work or some of my unique marketing strategies, please call me at 883-3421, 24 hours a day and key in zero to leave a message for me and I will return your call within 48 hours & we can set up a time to meet and talk about your needs, goals and desires with selling your home.

Dumbest Mistake #16: Not knowing all of their legal rights and obligations.

Real estate law is complex. The contract that you will sign when selling your home is legally binding. Small items that are neglected in a contract can wind up costing you thousands of dollars. You need to consult a knowledgeable, professional who understands the in’s and out’s of a real estate transaction.

Dumbest Mistake #17: "Hard Selling" During Showings

People buy homes on emotion, not logic. Buying a home is always an emotional decision. People like to get a feel for a house to see if it is comfortable for them. It's difficult for them to get comfortable in a home if you follow them around, telling them all of the things that you've done to the house and pointing out every improvement that you've made. It may even have the opposite effect that you want to accomplish by making the prospective buyer feel that they are intruding into your private space.

Resist the temptation to talk to the buyer the entire time that they are in your home. Let them discover the home on their own. I recommend tasteful signs to point out hidden features that they might miss. Another good idea is to have a photo album on the kitchen counter with photos of the home during other seasons.

Dumbest Mistake #18: Taking for granted the "curb appeal" of your home

When you're preparing your house for sale, remember the importance of first impressions. A buyer's first impression can make or break whether they even want to go inside for a look. It is estimated that more than half of all houses are sold before the buyers even get out of their cars. With that in mind, be sure to stand outside of your home and take a realistic "fresh look" and then ask yourself what can be done to make the "curb appeal" improve. Also ask your Realtor's opinion as to how to improve the curb appeal. It could make a huge difference in your final sales price.

Dumbest Mistake #19: Failing To Prepare Your Home For The Buyer's Eye

Buyers look for homes, not houses. Buying a home is an emotional decision and they end up buying the home that makes them most comfortable. It's what I call the "Ah-ha" effect. I've watched dozens of times as buyers have walked in through the front door and gasped "Ah-ha," and immediately fall in love with the house.

Owners who fail to make necessary repairs, who don't spruce up the house inside and out, who don't do all the little things that make a house show like a million bucks will suffer from lower offers and longer market time.

Think about it this way: if you were selling a car, wouldn't you wash it and maybe even give it an extra good cleaning inside and out to get the highest possible price? That's because a buyer looking at your used car is purchasing on emotion, just like someone looking at your home

Dumbest Mistake #20: Forgetting what you would want to see if you were the buyer of your home

Remember that although people can be different in personality, they tend to be the same when it comes to expectations at someone else's expense. In other words, a prospective buyer would probably like to see a perfect home from top to bottom, inside and out, when it comes to your home. Try to do as many of the following items as possible to improve the likelihood of an expedient home sale:

Dumbest Mistake #21: Mistaking "Lookers" For Buyers

If you're selling your home yourself, you'll always get more activity than if your home is listed with a real estate broker. If you open your front door to everyone who walks down the street and sees your sign, you may be spinning your wheels. I recommend that you ask buyers a few questions first to make sure they are qualified before wasting a lot of time with them.

A qualified buyer is one who is ready, willing and able to purchase your home if it fits his needs. Over the years, I've found that many people who look at For Sale By Owners are curiosity seekers, nosy neighbors, and people with poor credit hoping to get you to help them with the financing.

Other buyers may be qualified, but they're six months to two years away from being ready. They don't want to bother a real estate agent yet, so they call and look at For Sale By Owner homes to get a feel for what's available. Many of these folks have a home to sell first, or they need to save money for the down payment, or they may need to work on their credit rating. When everything else is finally in place, that's when they seriously begin their search for homes working with a real estate agent.

I always "screen" buyers to make sure they are qualified before showing them homes. I won't show a buyer a home unless I know he can afford the house, how much he has to put down, how good his credit is, how much he can pay each month, and how much money he will realistically walk away with when he sells his present home. Those are just a few of the questions that I recommend that you ask prospects before you show them your home. I've learned the hard way to ask questions before you waste a lot of time working with a buyer who may be unqualified or just looking for decorating ideas. There are many people who think going to look at homes on the weekend is fun and consider it a hobby- it is of the utmost importance to quick qualify these people. They may not be in your home for the right reasons (i.e.: checking out what you may own). So please put away your valuables while you or we are trying to market your home.

Dumbest Mistake #22: Not First Obtaining A Qualified Bank Appraisal And Commitment For Financing From A Home Lender

How would you feel if your home sold for $106,000, only to find out from the bank appraiser after the buyer made an offer, that it was worth $116,000? In today's real estate market, this happens more often than you think. Your home will have to be appraised by a state or federally licensed lender sooner or later. Sooner can result in several extra thousands of dollars in your pocket

Bonus: A qualified bank appraisal is a tremendous marketing tool for your home, because buyers are afraid of paying too much for a house. That's why they often make low offers. I have appraisers that will do these inexpensively and you will find they are worth your money every time.

Think about it.

Much of the real estate advice that you've received in your life has been, "make a low offer." Without an appraisal, you're just guessing as to the value of your home _and when you get an offer, you'll be guessing as to whether or not the offer is fair or not fair. Just going on a gut hunch has cost many sellers thousands of dollars, by emotionally reacting to a low offer.

A certified bank appraisal gives you a point of reference, a "benchmark" of value on which to base your decisions. More importantly, a professional appraisal helps you sell your home for full price, because the buyer can see that the price was realistically established by an uninterested but qualified, competent third party.

Dumbest Mistake #23: Making It Hard For Qualified Buyers To Obtain Information

The two marketing tools that consumers think REALTORS® use to sell homes (open houses and classified ads) are actually not very effective at all. Surprisingly, less than one percent of all homes are sold at an open house. As a matter of fact, real estate agents use open houses to attract potential prospects, and very seldom actually sell the home itself.

Furthermore, dozens of advertising studies show that less than three percent of people purchase their home as a result of calling on a classified ad. The few people who do call on classified ads and don't obtain the information on the first call (perhaps they get an answering machine or a child) never bother to return the call.

I recommend that you use a 24_hour real estate hotline dedicated specifically to your house, so that buyers can obtain information on your house 24_hours a day.

Another marketing technique that I use that you may find helpful is to distribute flyers throughout the neighborhood and surrounding areas, where homeowners may be interested in moving up to your home. I also use a weekly tour of my homes for sale & advertise the home in a monthly newsletter that goes out to over 250 people.

When marketing your home, don't just think that a classified ad will find the right buyer. It takes effort and persistence, but effort and persistence usually do pay off in the long run.

Dumbest Mistake # 24: Not Using A Written Purchase Agreement

Many sellers think their home is sold, only to find out weeks or even months later that the buyer was not able to obtain a home loan. Other sellers find out too late that dozens of items such as surveys, title insurance contingencies, assessments, tax prorations, pest inspections, structural inspections, and a host of other details can come back to haunt them if not properly addressed right at the very beginning. It's not uncommon to see a buyer willing to terminate a transaction only to have a seller cave in and capitulate and absorb the expense of an item that realistically should have been a buyer's expense to begin with, had it been written into the purchase agreement.

I have several forms of purchase agreements in my office, and would be happy to provide you with copies of any or all of them. They're free just for the asking.

The above recommendations come from years of experience in the real estate industry during buyers' markets, sellers' markets, high interest rates and low interest rates. In any economy, however, the listed recommendations apply in all situations. Follow these guidelines and you will substantially reduce the often stressful and sometimes expensive mistakes made by hundred of home buyers & sellers in our area each year.

This information is provided to you as a free service from Teresa Snyder’s Home & Loan Finder Hotline in hopes to aid you down the right path with real estate & mortgages. If you have questions or concerns about either real estate or home loans, email or call her Home & Loan Finder Hotline at 883-3421 and please press 0 to leave a message for Teresa and she will return your call within 48 hours. Please pick your personal return call time of either 11 am to Noon to 6 to 7 pm.

Email: Consultant@homeandloanfinder.com

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