Getting Started in Real Estate Investing in Seven Basic Steps

Published on Mar 16, 2013

http://www.biggerpockets.com/ubg Do you want to invest in real estate, but don’t know how to get started? This video is going to walk you through the seven steps you need to understand in order to find success as you begin investing in real estate.

This video was created using information from the BiggerPockets Ultimate Beginner’s Guide to Real Estate Investing – which you can get for free at http://www.BiggerPockets.com/ubg.

What is ‘Investment Real Estate

Investment real estate is real estate that generates income or is otherwise intended for investment purposes rather than as a primary residence. It is common for investors to own multiple pieces of real estate, one of which serves as a primary residence, while the others are used to generate rental income and profits through price appreciation. The tax implications for investment real estate are often different than those for residential real estate.

BREAKING DOWN ‘Investment Real Estate’

Common examples of investment properties are apartment buildings and rental houses, in which the owners do not live in the residential units, but use them to generate ongoing rental income from tenants. Those who invest in real estate also expect to generate capital gains as property values increase over time.

Read more: Investment Real Estate Definition | Investopedia http://www.investopedia.com/terms/i/investmentrealestate.asp#ixzz4YlHGt6x5
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Understanding Mortgage REITs


Published on Dec 14, 2016
Mortgage REITs provide financing for real estate by purchasing or originating mortgages and mortgage-backed securities and earning income from the interest on these investments.

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REITs Everywhere, Everyday (2015)


Published on Mar 4, 2015
For more than 50 years, REITs have made it possible for Americans from all walks of life to invest in income-producing real estate. REITs own and finance a diverse array of property types in all 50 states as well as many countries across the globe. REITs own more than $1 trillion of real estate in the U.S. and help support nearly 1 million jobs each year through their own operations and use of their facilities. And nearly 50 million Americans invest in REITs through their 401(k) plans. In fact, you probably encounter REITs through the real estate they own and finance in a variety of ways every day.

In this educational video, a family realizes how many ways they interact with REIT-owned properties in a given day.

To learn more visit: https://www.reit.com/

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What is a REIT?


Published on Jan 11, 2013
http://www.reit.com REITs today are more vital to the economy and the investment landscape than ever before — fulfilling their essential role of providing each and every individual with the opportunity to benefit from large, diversified holdings of real estate.

Since their inception, REITs have helped the U.S. achieve important economic and social goals. When Congress created in 1960, it aimed to provide the average person with the ability to easily and effectively access investment in real estate to help secure a better future.

With U.S. REITs leading the way around the world, REIT-based real estate investment today is a well-accepted and widely recognized part of the investment landscape, bringing with it the benefits of current income and capital appreciation through long-term real estate investment.

As a result, savers, investors and retirees increasingly find the REIT approach to real estate investment playing a vital role in their investment and retirement planning, helping to advance our nation’s economic security.

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REIT Basics

Published on Jun 14, 2016

Think real estate investing takes a lot of money? Think again. REITs (Real Estate Investing Trusts) make real estate investing as simple as buying a stock. Let Instructor David Settle teach you how REITs work in this short video. This video is part of the Investools Income Investing course.

Try this course for free at https://investools.com.

Check out these videos from the Income Investing course:
Meet the Dividend Aristocrats https://youtu.be/AwwDTGum8f0
The Historical Returns of Income-Producing Investments https://youtu.be/5NdwE98PUk0

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Showing Property: The Right Questions to Ask


Uploaded on Nov 3, 2010
http://www.yourcoach.com Real estate training. In this coaching video, real estate speaker Coach Tom Ferry takes you through the right questions to ask when your showing clients a home. These questions are geared towards you closing a sale and making more money in real estate

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How Are You Engaging with Buyers

Uploaded on Jan 24, 2011

Real estate training http://www.yourcoach.com In this coaching video, real estate speaker Tom Ferry challenges you to up your game and start to engage potential and sellers in this market. These people now are much more knowledgeable consumers … so what are you doing differently to be the broker of knowledge?

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A Powerful Mindset For Success! – Unclutter Your Mind

Published on Apr 18, 2013

Free Coaching Session: http://www.yourcoach.com/coaching-cal…

Real Estate Training with Tom Ferry http://www.yourcoach.com

In the Developing A Powerful Mindset For Success series, Tom explains how actions you take are dictated by your unconscious (or subconscious) mind. Studies have shown that on average, an 18 year-old has been negativity enforced 180,000 times! These negative enforcements hold you back on making those big decisions that promises bigger return and success. Tom talks about uncluttering your mind of worry so that you can you can be productive. What you need are systems of get

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A Powerful Mindset For Success! – Courage is Power!

Published on Apr 17, 2013

Free Coaching Session: http://www.yourcoach.com/coaching-cal…

Real Estate Training with Tom Ferry http://www.yourcoach.com

In the Developing A Powerful Mindset For Success series, Tom explains how actions you take are dictated by your unconscious (or subconscious) mind. Studies have shown that on average, an 18 year-old has been negativity enforced 180,000 times! These negative enforcements hold you back on making those big decisions that promises bigger return and success. Tom talks about the power of courage and what that one courageous action can mean for your business.

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A Powerful Mindset For Success! – Affirm-Actions!

Published on Apr 15, 2013

Tom Ferry, http://www.tomferry.com, is a real estate coach and trainer. In this video, Tom explains how actions you take are dictated by your unconscious (or subconscious) mind. Studies have shown that on average, an 18 year-old has been negativity enforced 180,000 times! Tom walks you through the steps on how to replace negative unconscious thoughts with positive ones to make those big decisions that promises bigger return and success!

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Understanding Home Buying: Things to Consider

Published on Jan 27, 2015

If you’re getting ready to buy a house, there are a few components that are really important to consider. The first is your budget. Your budget should include enough to cover both your down payment and a comfortable monthly payment. Second, you should consider the actual location of your home and make sure that it includes all the amenities you are looking for. Third, you want to find the type of home that’s going to fit both you and your family’s life styles. A common question that most first time homebuyers experience is where to start. Do you start with the real estate agent or the lender? The first step you need to take in the home buying process is talk to a mortgage company before a real estate agent. This way you can find out how much you actually qualify for, which, in turn, helps the real estate agent narrow down the options of homes to ones that are within your price range. Aside from your real estate agent, be sure to customize your search as well by looking at different websites and apps that will help you find your perfect home. For more tips and advice on buying your first home make sure you visit our website at http://www.QuickenLoans.com/Blog

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Understanding Home Appraisal Adjustments | Quicken Loans Education


Published on Aug 26, 2016
Appraisal adjustments are one method home appraisers use to help determine the fair market value of your home. An appraisal adjustment is the process of identifying recently sold homes in your area and then estimating what those homes would have sold for if they had all the same characteristics as your home. To learn more about real estate mortgage appraisals, visit
https://www.quickenloans.com/appraisal-process

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6 Easy Things You Can Do to Make Your Home Purchase Smoother

Buying a home can be an emotional, time-consuming, and complex process. There are a few things that you can do to help make the process go as smooth as possible:

1.) Check your credit. Before you apply for a home loan, regardless of your credit, it’s a smart idea to obtain a copy of your credit report from the three major credit bureaus and review the information. If there are errors or things that need to be addressed, it’s easier to address them before you have found a house, than after you have found a house and are trying to close your loan.

If you know that there are a few blemishes on your credit, let your lender know what they are, why they are there, and why you are a still good credit risk. Lenders look at your credit to determine how likely you will pay back the loan. If you had extenuating circumstances – like a loss of a job or medical bills – let them know so that they understand that it is not likely to happen again in the future.

2.) Get approved before you buy. An approval means that a lender has reviewed your credit history, verified your assets and employment, and has approved your loan before you have found a home to purchase. As long as the home appraises for at least the purchase price, the loan should close.

Getting approved also gives you an advantage over other buyers. Your firm approval makes it easier for you to negotiate on the price of a home, than a person who is not approved or is pre-qualified.

While getting pre-qualified may sound official, it is really just getting an idea of what you can afford. Its having a person plug in a few numbers that you give them – your monthly income and your monthly debt – and getting an approximate payment calculated. From the payment, the calculator can approximate the house price range that you can afford. No information is verified. Because your assets, income or credit is not verified, a prequalification has little value when purchasing a home.

3.) Find a great exclusive buyer’s agent. Traditionally real estate agents represent the sellers in a transaction. When you are not working with a buyer’s agent, they are less likely to negotiate the best price or contingencies for you.

A buyer’s agent’s job and fiduciary responsibility (meaning legal duty) is to you, the buyer. Before working with an agent, establish if they are a buyer’s agent or a seller‘s agent. After spending a lot of time with a Realtor, it’s natural to feel like you’re a team. But if they are not negotiating for you, then they are not on your team.

4.) Learn about the neighborhood. Often times the house you find may be in a neighborhood that you’re not familiar with, which is ok. It just means that you’ll have to do a little more research. If you find a house that you like, ask for a list of the neighborhood properties that sold in the last year. How does your home rank? Is it at the top of the price range? If so, it might be hard to resell. Is it average or on the low end? If so, great – as the other home prices go up in value, they will pull your home’s value up as well.

Check out the schools – are they sought after? A good school district means your neighborhood will always be valued by families which is a great reassurance to purchase, not to mention the value-add if you have school-age children.

Next, contact the police station and obtain crime statistics? Are they acceptable to you? Sometimes, if they won’t give them to you, it could be a cause for alarm.

Talk to the neighbors. The more people you talk to, the better sense you will get of who makes up the neighborhood and how they will effect your time spent in it.

Check out the location of the shopping, police and fire stations, schools, and air traffic overhead. These are all things that might affect your property value or quality of your life.

5.) Protect Yourself. Ask your Realtor for a copy of the documents you will be asked to sign if you decide to buy the house. Read them ahead of time so that you’ll understand the questions that you will be asked, the things you need to know, and the decisions you will need to make.

6.) Have reasonable expectations. There is a lot of money at stake. No house is perfect. Understanding and remembering these two statements will help diffuse the negotiation stage, the inspection stage and the closing stage.

Emotions are high for both buyers and sellers. – The seller may have loving memories and years of sweat equity in the house. Maybe they are being relocated and don’t want to go. Understanding their motivations for selling will help you appreciate their situation and predicament during these emotional times.

There is a lot of money at stake for all the parties involved (and that includes the realtors) – Just remember that market value (the value of a home) is the price that a willing buyer and a willing seller can agree to. If you can not agree on a price, ask yourself: Is there something you missed? Are there comparables that support the price that they want? Are there motivations that might factor into the price they are demanding? In the end, does it matter?

What is the house worth to you today and what do you think you can reasonably sell it for based on the amount of time you plan to spend in it? Think about the answers to those questions before you make your move.

No house is perfect – Always get an inspection. It might be a few hundred dollars, but it’s worth it. It’s the inspector’s job to find any problems with the house that could cost you thousands to repair down the road. Some inspectors have a tendency to over play the importance of their role and the items that they find. Get objective opinions that you trust before making a decision on an inspection report. Likewise, if an inspector says a foundation is cracked but its nothing to worry about – get a second opinion. Ask a handyman for an idea of how much repairs will cost and how complicated they are. The home buying process is an emotional, complex and time-consuming process, but it is worth it. Nothing compares to owning your own home in a neighborhood that you chose.

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How To Get Top Dollar In Any Market

The best chance for selling your property is within the first seven weeks. Studies show that the longer a property stays on the market, the less the seller will net. Below are 5 main factors to accomplishing this goal.

PRICING FACTOR

It is very important to price your property at a competitive marketvalue right when you list it. The market is so competitive that evenover-pricing by a few thousand dollars could mean that your house will not sell. It’s interesting, but your first offer is usually your best offer. Here are reasons for pricing your property at the market value right from the start in order to net you the most amount of money in the shortest amount of time.

An overpriced home:

• Minimizes offers • Lowers showings • Lowers agent response • Limits financing • Limits qualified buyers • Nets less for the seller

80% of the marketing is done when we decide on what price to list your home. If you are unwilling to list at current market value, you would be better off not putting it on the market at this time.

CLEAN FACTOR

Most people are turned off by even the smallest amount of uncleanness or odor when buying a home. Sellers lose thousands of dollars because they do not adequately clean. If your house is squeaky clean, you will be able to sell your home faster and net hundreds, if not thousands of dollars more. If you are planning on moving, why not get rid of that old junk now so that your house will appear larger? Make more space.

Odors must be eliminated especially if you have dogs, cats, or young children in diapers or if you are a smoker. You may not notice the smell, but the buyers do! Most agents have a difficult time communicating to their sellers about odor. If you employ an agent to get the
most amount of money for you, please don’t take offense if he must confront you about odor problems.

ACCESS FACTOR

Top selling agents will not show your home if both the Key and access are not readily available. They do not have time to run around town all day picking up and dropping off keys. They want to sell homes! The greatest way to show a house is to have a key! When your home is being shown, please do the following:

• Keep all lights on • Keep all drapes and shutters open • Keep all doors unlocked • Leave soft music playing • Take a short walk with your children and pets • Let the buyer be at ease and let the agents do their job

PAINT & CARPET FACTOR

Paint is your best improvement investment for getting a greater return on your money. Paint makes the whole house smell clean and neat. If your house has chipped paint, exposed wood, or the paint looks faded, it is time to paint. If your carpet is worn, dirty, outdated, or an unusual color, you may need to seriously consider replacing it. Many houses do not sell because of this problem. Don’t think that buyers have more money than you have to replace carpet. They don’t. They simply buy elsewhere.

FRONT YARD FACTOR

Your front yard immediately reflects the inside condition of your house to the buyer. People enjoy their yards. Make certain that the trees are trimmed so the house can be seen from the street. Have the grass mowed, trimmed and edged. Walkways should be swept. Debris cleared away. Remove parked cars. This all adds to curb appeal. If a buyer doesn’t like the outside, they may not stop to see the inside.

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Common Selling Mistakes

MISTAKE #1 — PLACING THE WRONG PRICE ON YOUR PROPERTY

Every seller obviously wants to get the most money for his or her product. Ironically, the best way to do this is NOT to list your product at an excessively high price! A high listing price will cause some prospective buyers to lose interest before even seeing your property. Also, it may lead other buyers to expect more than what you have to offer. As a result, overpriced properties tend to take an unusually long time to sell, and they end up being sold at a lower price.

MISTAKE #2 — MISTAKING RE-FINANCE APPRAISALS FOR THE MARKET VALUE

Unfortunately, a re-finance appraisal may have been stated at an untruthfully high price. Often, lenders estimate the value of your property to be higher than it actually is in order to encourage re-financing. The market value of your home could actually be lower. Your best bet is to ask your realtor for the most recent information regarding property sales in your community. This will give you an up-to-date and factually accurate estimate of your property value.

MISTAKE #3 — FAILING TO “SHOWCASE”

In spite of how frequently this mistake is addressed and how simple it is to avoid, its prevalence is still widespread. When attempting to sell your home to prospective buyers, do not forget to make your home look as pleasant as possible. Make necessary repairs. Clean. Make sure everything functions and looks presentable. A poorly kept home in need of repairs will surely lower the selling price of your property and will even turn away some buyers.

MISTAKE #4 – TRYING TO “HARD SELL” WHILE SHOWING

Buying a house is always an emotional and difficult decision. As a result, you should try to allow prospective buyers to comfortably examine your property. Don’t try haggling or forcefully selling. Instead, be friendly and hospitable. A good idea would be to point out any subtle amenities and be receptive to questions.

MISTAKE #5 – TRYING TO SELL TO LOOKERS

A prospective buyer who shows interest because of a “for sale” sign he saw may not really be interested in your property. Often buyers who do not come through a realtor are a good 6-9 months away from buying, and they are more interested in seeing what is out there than in actually making a purchase. They may still have to sell their house, or may not be able to afford a house yet. They may still even be unsure as to whether or not they want to relocate. Your realtor should be able to distinguish realistic potential buyers from mere lookers. Realtors should usually find out a prospective buyer’s savings, credit rating, and purchasing power in general. If your realtor fails to find out this pertinent information, you should do some investigating and questioning on your own. This will help you avoid wasting valuable time marketing towards the wrong people. If you have to do this work yourself, consider finding a new realtor.

MISTAKE #6 — BEING IGNORANT OF YOUR RIGHTS & RESPONSIBILITIES

It is extremely important that you are well-informed of the details in your real estate contract. Real estate contracts are legally binding documents, and they can often be complex and confusing. Not being aware of the terms in your contract could cost you thousands for repairs and inspections. Know what your are responsible for before signing the contract. Can the property be sold “as is”? How will deed restrictions and local zoning laws affect your transaction? Not knowing the answers to these kind of questions could end up costing you a considerable amount of money.

MISTAKE #7 – SIGNING A CONTRACT WITH NO ESCAPE

Hopefully you will have taken the time to choose the best realtor for you. But sometimes, as we all know, circumstances change. Perhaps you misjudged your realtor, or perhaps the realtor has other priorities on his or her mind. In any case, you should have the right to fire your agent. Also, you should have the right to select another agent of your choosing. Many real estate companies will simply replace an agent with another one, without consulting you. Be sure to have control over your situation before signing a real estate contract.

MISTAKE #8 – LIMITING THE MARKETING AND ADVERTISING OF THE PROPERTY

There are two obvious marketing tools that nearly every seller uses: open houses and classified ads. Unfortunately, these two tools are rather ineffective. Less than 1% of homes are sold at open houses, and less than 3% are sold because of classified ads. In fact, realtors often use open houses to attract future prospects, not to sell the house. Your realtor should employ a wide variety of marketing techniques. Your realtor should also be committed to selling your property; he or she should be available for every phone call from a prospective buyer. Most calls are received, and open houses are scheduled, during business hours, so make sure that your realtor is working on selling your home during these hours. Chances are that you have a job, too, so you may not be able to get in touch will many potential buyers.

MISTAKE #9 – CHOOSING THE WRONG REALTOR®

Selling your home could be the most important financial transaction in your lifetime. As a result, it is extremely important that you select the realtor that is best for you. Experienced real estate agents often cost as much as brand new agents. Chances are that the experienced agent will be able to bring you a higher price in less time and with fewer hassles. Take your time when selecting a real estate agent. Interview several agents; ask them key questions. If you want to make your selling experience the best it can be, it is crucial that you select the best agent for you.

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Tom Ferry – Blueprint for Real Estate Success Video

BombBomb attended Tom Ferry‘s Blueprint event in Orlando, Florida. Included above is the opening to the event, in which he lays out:- closing 72 more transactions in the next 12 months- reasons for past failures and limitations- setting 3 top goals for the next 12 months- competition, domination, and confidence- why you need a blueprint, foundation, and adjustments to get there- how one small adjustment used over and over produces a huge change in end results- ideas to fill the gaps between here and there (getting into tougher mindset, developing a plan and goals worth fighting for, taking back control of your time, using better technology, having a team, developing better skills, and making real estate fun again

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A TRUE AGENT is one who provides 100% loyalty to his/her clients 100% of the time.

“A TRUE AGENT is one who provides 100% loyalty to his/her clients 100% of the time. No dual agency; no “designated agency”, no “transaction brokerage;” no “Chinese walls;” no weasel clauses!” International Real Estate Directory “ Agency and True Agents” 1995 http://www.ired.com/trueagent/

Source: Buyers Agents, Buyer Brokers, Buying a Home

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EBAs don’t work for listing brokers

Unlike traditional agents, EBAs don’t work for listing brokers

, so they avoid the risk of dual agency — when one broker represents both parties. EBAs are still paid by the seller, but they can promise to represent your interests exclusively throughout the transaction and help you negotiate the lowest price. Kiplinger. “Hire your own agent.” June 7 2011 http://www.kiplinger.com/magazine/archives/2007/03/buyers.html

Source: Buyers Agents, Buyer Brokers, Buying a Home

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Buyer Representation

 If you want representation, work with a buyer broker.

They are legally obligated to represent your interests in any negotiations with sellers. Consumer Federation of America. Changes in Real Estate Agent Representation. P.4 http://www.consumerfed.org/pdfs/realestagn.pdf

Source: Buyers Agents, Buyer Brokers, Buying a Home

#BuyerRepresentation

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Buyer Broker Provides a Buyer With Greater Legal Protection

Sellers’ agents and dual agents do not and cannot by law give a buyer the same degree of loyalty as an agent who acts on behalf of a buyer. … A buyer who relies on the seller’s agent or on dual agency does not receive the same degree of legal protection as that afforded by an agent acting solely on behalf of the buyer. Realty times “Oklahoma Supreme Court slams real estate commission” dated 9/24/1999

https://www.nar.realtor/legal-case-summaries/snider-v-oklahoma-real-estate-commission-oklahoma-supreme-court-reverses-real-estate-commission

Source: Buyers Agents, Buyer Brokers, Buying a Home

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exclusive buyer’s agent’, who will be working for you. U.S. Department of Housing & Urban Development

It is your responsibility to search for an agent who will represent your interests in the real estate transaction. If you want someone to represent only your interests, consider hiring an ‘exclusive buyer’s agent‘, who will be working for you. U.S. Department of Housing & Urban Development, “Shopping for Your Home Loan: HUD’s Settlement Cost Booklet.” Rev. Dec. 2009. P. 6 http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_12164.pdf

Source: Buyers Agents, Buyer Brokers, Buying a Home

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Have you heard: Know before you buy

 Home truths: Know before you buy BUYER BEWARE  Even in a favorable market, house hunters should be cautious.You can’t get more direct than this e-mail we received from Maria Rosenfeld of Miami: “I’m a first-time home buyer and need help on getting started. I don’t know how to buy a home. What are the steps I need to follow?

”Even if you’ve been in the real-estate game before, today’s market is confounding. An estimated 1.1 million homes are in foreclosure, the most since 1979. And it’s not just subprime mortgages that are a problem; the default rate for borrowers who qualified for prime loans is climbing as well.

“Buying, selling, remodeling” offers advice for consumers who face a variety of scenarios in today’s fragile housing market. Sellers are obviously in a tough position. And we’ve been hearing how great it is to be a buyer right now and how it may be a good idea for investors to pick up a house or two while prices are low. I turned to our finance editors at Consumer Reports, our finance advocates at Consumers Union, and experts at other consumer groups for their advice. They had strong words of caution.A home is to live in. For most people, seeing real estate as an investment that will surely appreciate is risky business.

For one thing, while prices are already down in many parts of the country, they might go lower. So the cheap house you buy now could still sink in value. And while we’ve become accustomed to 6 or 7 percent returns on real estate, historically prices have just kept pace with or barely exceeded inflation. It’s probably wise to buy a home you want to live in rather than an investment with four walls.Choose your mortgage (and your broker) carefully.

The mortgage broker may be more focused on selling you a mortgage than on getting you the best deal—that’s your job. Find out what you can afford and the best terms for you; up to half of borrowers who took a subprime loan would have qualified for a conventional mortgage with better terms. Start by going to www.bankrate.com or www.hsh.com for worksheets.

Don’t count on refinancing out of a bad loan; falling home values could prevent that.Search on your own terms. Once you have a clear idea of your budget, your hunt should be easier. Consider an exclusive buyer-broker who will represent only you, not the sellers. Nonexclusive real-estate agents tend to show you their own listings first, since they won’t have to share the commission if they represent both the buyer and the seller.

Then they’ll probably show you their firm’s listings, since they stand to gain from those sales as well. It can help to search online first and target some homes that might be right for you, no matter who has the listing.

Source: Have you heard: Know before you buy

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Why Use an Exclusive Buyer agent, Buyers Broker

First Steps

What Is A Real Estate Agent?

What Is An Exclusive Buyer’s Agent?

Why Use An Exclusive Buyer’s Agent?

The Case For Buyer Agents

How Do I Find An Exclusive Buyer’s Agent?

National Assocation Of Exclusive Buyer Agents

Property Financing

Legal

Property Type

FAQ

Real estate glossary

 

Learn About Different Types of Buyer Agents

An Exclusive Buyer’s Agent or EBA is someone who is an expert in the buy-side of a real estate transaction.  Just as you would see a cardiologist for your heart or would hire an electrician to wire your home, an EBA is a specialist in the real estate industry.  Most NAEBA member EBAs have years of experience and have learned to strongly negotiate on a buyer’s behalf, what to look for when viewing a property, and how to overcome obstacles that a buyer may face along the way.

 

Exclusive Buyer’s Agents give buyers their undivided loyalty.  Most real estate agents and buyer’s agents work in traditional brokerages that take listings.  Because of that, they have an inventory that they must sell. In addition, if that brokerage brings both the buyer and the seller into the transaction, they get to keep the entire commission, making the transaction more profitable. These can be strong incentives to steer a buyer to one of their own listings.  It also means that their buyer loses many of the benefits of hiring a real estate agent including negotiating on his behalf as well as the agent’s ability to point out reasons why the buyer might not want to purchase that particular property.  Since Exclusive Buyer’s Agents must work in a brokerage that only works with buyers and never takes listings, a buyer can rest assured that the EBA will remain on their side throughout the entire transaction, getting the buyer the lowest price and the best terms possible.

via Why Use an Exclusive Buyer agent, Buyers Broker.

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Exclusive Buyer Agency

National Association of Exclusive Buyer Agents Standards of Practice

Principles That Buyers Can Count On

The National Association of Exclusive Buyer Agents is an independent alliance of real estate professionals who provide client-level services and whose real estate companies do not accept seller-property listings. We, the members of this Association, set forth the following principles as the minimum professional standards which will guide us in serving our Buyer-Clients. An Exclusive Buyer Agency relationship requires that we operate according to these fundamental commitments. The essence of Exclusive Buyer Agency practice is undivided loyalty to our Buyer-Clients. We recognize that it is our duty as real estate professionals to serve our clients with fidelity to these Standards of Practice. We also pledge to adhere to the Code of Ethics established by this Association.

A. SERVICES PROVIDED IN THE INITIAL COUNSELING INTERVIEW PHASE

Standard A(1): A Buyer Agent will disclose that he/she is a Buyer Agent and define his/her agency relationship to a prospective Buyer-Client. A Buyer Agent will explain how different agency relationships may affect the level and type of service a

Buyer-Client may receive from a real estate agent.

Standard A(2): Before entering into an agreement with a Buyer-Client, a Buyer Agent will determine if any conflict of interest may exist on his/her own part or that of a Buyer-Client. If a conflict should occur, a Buyer Agent should be precluded from representing a Buyer-Client, who should have the option of seeking representation elsewhere.

Standard A(3): A Buyer Agent will provide a copy of these professional Standards and answer any questions a Buyer-Client may have about them.

Standard A(4): A Buyer Agent will enter into a written Agency Agreement with his/her Buyer-Client. The agreement will include beginning and ending dates, the service fee structure and payment method, and the responsibilities of both parties.

Standard A(5): A Buyer Agent will make him/herself available to his/her Buyer-Client in a timely manner.

Standard A(6): A Buyer Agent will pledge absolute confidentiality to a Buyer-Client when representing him/her, thereby protecting that Buyer-Client’s ability to negotiate all aspects of the transaction.

Standard A(7): A Buyer Agent will counsel a Buyer-Client regarding his/her financial qualifications and will assist that Buyer-Client in seeking and working with mortgage lenders. A Buyer Agent will not steer his/her Buyer-Client to any one lender but instead will assist him/her in evaluating interest rates and closing costs.

 

B. SERVICES PROVIDED IN THE GENERAL PROPERTY SEARCH PHASE

Standard B(1): A Buyer Agent will discuss objectives and preferences in property styles, age, floor plans, and so forth with a Buyer-Client, then develop from this information a target property profile for him/her.

Standard B(2): Based upon the target property profile, a Buyer Agent and his/her Buyer-Client will determine the appropriate level of property preview services to be provided.

Standard B(3): With a Buyer-Client’s target property profile in mind, a Buyer Agent will search the real estate market, including properties for sale by owners and builders, to locate properties to show that Buyer-Client.

 

C. SERVICES PROVIDED IN THE PROPERTY SELECTION/CONTRACT OFFER PHASE

Standard C(1): A Buyer Agent will discuss and evaluate the properties viewed with his/her Buyer-Client, comparing each property shown with the target property profile.

Standard C(2): Before preparing an offer to purchase, a Buyer Agent will inform a Buyer-Client about any defects or problems he/she has observed or in any way discovered regarding the target property.

Standard C(3): Before preparing a contract offer on behalf of his/her Buyer-Client, a Buyer Agent will prepare a comparative market analysis, including explanations and documentation, to determine the target property’s market value. A Buyer

Agent will not prepare an offer to purchase a property he/she has not seen.

Standard C(4): Before a Buyer-Client signs an offer to purchase, a Buyer Agent will provide that Buyer-Client with an estimate of closing costs and, whenever possible, with the truth-in-lending estimate provided by the mortgage company.

Standard C(5): A Buyer Agent will counsel his/her Buyer-Client and explain the choices available in completing a real estate contract. This real estate counseling is based upon a Buyer Agent’s experience in negotiation and real estate business decisions and is not legal advice. Legal matters should be identified and a Buyer-Client advised to seek legal counsel where appropriate.

Standard C(6): Whenever possible, a Buyer Agent will prepare the contract offer on a form which has been designed to protect a Buyer-Client’s interest. A Buyer Agent will provide proper disclosures regarding agency representation and other matters as required by law.

Standard C(7): A Buyer Agent will develop contract negotiation strategies with his/her Buyer-Client, establishing pre-set limits on key points of negotiation when that Buyer-Client wishes to do so. A Buyer Agent will actively negotiate only on behalf of his/her Buyer-Client.

Standard C(8): Before submitting a contract offer to a Seller, a Buyer Agent will counsel his/her Buyer-Client regarding the time requirements specified in the contract and will encourage that Buyer-Client to have professional inspectors inspect the property if the contract is accepted.

D. SERVICES PROVIDED IN THE ESCROW-TO-CLOSING PHASE

Standard D(1): A Buyer Agent will counsel a Buyer-Client regarding the types of home inspectors, the suggested criteria for selecting home inspectors, and the comparative costs of inspection services. A Buyer-Client will select real estate inspectors. A Buyer Agent will encourage his/her Buyer-Client to be present during inspections.

Standard D(2): A Buyer Agent will notify a Seller or a Seller’s Agent in writing of inspectors’ findings and of corrections/repairs mandated by a Buyer-Client. A Buyer Agent will specify a Buyer-Client’s desire to proceed or cancel the purchase contract whenever such notification is required.

Standard D(3): A Buyer Agent will maintain contact with a Buyer-Client’s title company and mortgage company to make sure that his/her Buyer-Client’s interests are being protected.

Standard D(4): A Buyer Agent will review a settlement statement with his/her Buyer-Client at or before closing, if possible.

Standard D(5): A Buyer Agent will accompany a Buyer-Client on a property walk-through before closing.

Standard D(6): A Buyer Agent will attend a closing with a Buyer-Client. A Buyer Agent should be prepared to support his/her Buyer-Client’s position at closing.

Standard D(7): A Buyer Agent will keep records of transactions for a reasonable period of time and will provide this information to a Buyer-Client on request.

These Standards of Practice establish obligations that include all those consistent with the “Common Law of Agency” and are considered to be client-level, not customer-level, services. These obligations are, in many instances, higher than those mandated by law. If there is any case where the law requires a greater obligation than these Standards of Practice, then the requirements of the law must be followed. It is the duty of each individual Exclusive Buyer Agent to make himself or herself aware of the laws which may affect him or her.

via Exclusive Buyer Agency.

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