Saturday, December 23, 2017
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5 Things Real Estate Agents Wish Buyers Wouldn't Do
The relationship you have with your real estate agent can set the tone for the entire home buying process. Your agent is supposed to help you find a property you can afford and work with the seller to negotiate the details of the purchase. But problems could arise if you’re on different wavelengths. If you want everything to run smoothly, here are five bad habits to steer clear of.

1. Being Too Nit Picky

Buying a home is a big financial commitment. And even if you want to get the best possible deal, you’ll need to pick your battles. If you’re trying to force the seller to agree to a minor contingency, you could lose sight of the big picture. And you could eventually lose the home you want altogether if the seller decides to find a buyer who’s less difficult to work with.

2. Not Keeping an Open Mind

5 Things Real Estate Agents Wish Buyers Wouldn't Do
When you meet with an agent for the first time, they’re going to want to know what you’re looking for in a home. They’ll use the feedback you give them to scout properties you might like and arrange for you to view them in person.
Ultimately, you can only buy one home. But that doesn’t mean you should dismiss properties at first glance just because they’re not perfect. If you’re overly critical of your agent’s choices or you refuse to look at the properties that don’t measure up, you could both end up frustrated.

3. Dragging Your Feet

The housing market is chugging along pretty steadily these days and home sales are moving at a fairly rapid pace. If you’re in a highly competitive market, hemming and hawing over whether to make a move on a particular property isn’t something you can afford to do. If you wait to put in an offer and the seller has other interested buyers, you could end up in a bidding war.

4. Undercutting the Asking Price

5 Things Real Estate Agents Wish Buyers Wouldn't Do
There’s nothing wrong with trying to get a good deal on a home, but it’s best to avoid shortchanging the seller. If you want a price that’s too low, the seller may be tempted to cut ties with you.
Real estate agents are trained to understand pricing trends and home values. So if they’re suggesting that you offer or counteroffer a certain amount, it’s a good idea to take their advice into consideration. Consider how you would feel if the tables were turned. If you were the seller, would you accept your low offer? If not, it might be time to make some adjustments.

5. Not Handling Your Responsibilities

As a homebuyer, you’re responsible for providing your lender with the paperwork he or she needs so that you can get access to financing. If you’re taking forever to turn in your forms or you’re postponing the appraisal, your actions could prevent the seller from moving forward. A delay could be particularly problematic if the seller wants to complete the home sale by a certain date.

The Takeaway

It’s important to make sure that you and your real estate agent are on the same page. If you know each other’s expectations, it’ll be easier to avoid bumping heads.

Why Own a Real Estate Investment?

Two of the most likely reasons are:

  • To rent the real estate and produce positive cash flow.
  • To resell the real estate for a profit.
There are lots of people out there giving late night TV shows and selling expensive courses that will guarantee to make you rich and famous. Some of their promoters are now in jail, some who aren’t, deserve to be. So here are some simple aids that won’t cost you a dime.
First of all, you make your money when you buy, not when you sell. So finding the motivated seller who is willing to offer you a good deal in exchange for a quick sale is the single most important factor to your real estate investment success.
Surprise, surprise, most owners of real estate want to sell it for full fair market value. In fact many owners are so proud of their real estate they want you to pay MORE than fair market value. Most real estate sellers don’t want to give you a 30% discount on fair market value.  But this is what you need if you intend to fix up and resell the real estate for a profit.
Let’s be clear on this. If you can buy a house for $70,000 that would be worth $100,000 if it was fixed up, but it will cost $30,000 to fix it up, you’re paying market value, NOT getting a bargain. You need to buy this house for $45,000 or keep looking.View our Online Calculator to evaluate that real estate “bargain” in real terms (also available as a FREE Spreadsheet Download).
You need to factor in things like the real cost of fixing it up, the closing costs when you buy, the closing costs when you sell, the cost of money while you are fixing it up from the day you buy it to the day you sell it, any pre-payment penalties on the money you have borrowed etc.
If you intend to keep and rent out the property then you can pay a little more. But don’t forget, even with current interest rates you have vacancy, property taxes, insurance, repairs and maintenance to pay for before you get to positive cash flow. View our Online Calculator to evaluate that real estate “bargain” over the next ten years (also available as a FREE Spreadsheet Download).
Don’t spend hundreds or thousands of dollars on some real estate “get rich quick” seminar or course pitched by some late night TV smoothie, check out our Books on Real Estate Investment.